VEGAS INC Coverage
A new Indian casino consulting deal lifted third quarter revenue for Cannery Casino Resorts LLC of Las Vegas.
A financial report filed this week shows revenue for the company of $135.6 million for the quarter ended Sept. 30 was up from $134.3 million in the year-ago quarter.
Still, the company’s net quarterly loss widened from $2 million to $2.5 million.
Cannery owns or manages three casinos in the Las Vegas area along with a casino in Washington County, Pa.
An affiliate of Cannery investor Oaktree Capital Management L.P. of Los Angeles this week reported Cannery’s results.
The Oaktree affiliate said that on April 1, Cannery entered into a consulting agreement with the Jackson Rancheria of Me-Wuk Indians in California, which has the Jackson Rancheria Casino & Hotel in Jackson, Calif.
That’s in Amador County southeast of Sacramento.
The increase in Cannery revenue for the third quarter was primarily due to consulting fees received by Cannery, the Oaktree affiliate said.
Under the Me-Wuk deal, Cannery receives a monthly consulting fee and an annual incentive fee that is calculated on a percentage of incremental increase of EBITDA (earnings before interest, taxes, depreciation and amortization).
Other than the consulting revenue, Cannery’s casino revenue in Nevada and Pennsylvania was relatively unchanged during the quarter, the Oaktree affiliate said.
The wider loss was blamed on higher income tax expenses.