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Majestic Star Casino posts $1.94 million third-quarter operating loss
By Caroline Salls
Pittsburgh, Dec. 3 - The Majestic Star Casino LLC reported a $1.94 million operating loss for the quarter ended Sept. 30 on $74.83 million in net operating revenues, according to a company news release.
In comparison, the company posted a $36.43 million operating loss for the quarter ended Sept. 30, 2008 on $82.67 million in net operating revenues.
The net loss for the three months ended Sept. 30 was $19.39 million, narrowing from the $52.2 million net loss posted for the three months ended Sept. 30, 2008.
Meanwhile, Majestic Star reported $8.48 million of operating income for the nine months ended Sept. 30 on $232 million in net operating revenues, compared with a $21.42 million operating loss for the nine months ended Sept. 30, 2008 on $257.01 million in net operating revenues.
The net loss for the first three quarters of this year was $42.96 million, improved from the $67.76 million net loss for the same period of 2008.
According to the release, the company's consolidated net operating and casino revenues were negatively impacted by the economic recession and increased competition in its markets, which reduced gambling activity.
As of Sept. 30, Majestic Star had $71.9 million of unrestricted cash and cash equivalents, largely resulting from the company's failure to make interest payments on its senior secured notes and senior notes and not paying down outstanding amounts on its senior secured credit facility.
Majestic Star, a Las Vegas-based owner and operator of casino hotels, filed for bankruptcy on Nov. 23 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-14136.
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