Monarch Casino & Resort Inc. continued to tighten down on the operating costs of the casino at the Atlantis in Reno during the third quarter, but the cuts weren't enough to keep up with declining revenues.
The Reno-based company, which also is in the process of buying a Colorado casino, last week reported earnings of $11,279 for the third quarter.
This compares with net income of $2.66 million a year earlier.
The net was hit, however, by a non-cash charge of $3.5 million associated with Monarch's demolition of the Adventure Inn, an aging motel property just north of the Atlantis property on the west side of Virginia Street.
The company said revenues from its casino which account for about 55 percent of the revenues at Atlantis declined to $24.1 million in the third quarter from $26 million a year earlier.
The $250,000 in reductions in operating costs at the casino year-over-year weren't enough to keep pace with the falling revenue.
John Farahi, co-chairman and chief executive of Monarch, said the casino revenues were hit by the weak regional and national economy as well as a lower-than-average win percentage.
Revenue in the company's food and beverage operations were up by about $476,000 from a year earlier, and hotel revenues were essentially flat.
The company said margins in food operations weakened a little during the third quarter because of rising costs of ingredients.
Food and beverage accounts for roughly 25 percent of the revenues of the Atlantis, and the hotel accounts for about 14 percent.
In late September, Monarch said it struck a deal to buy the Riviera Black Hawk casino in Blackhawk, Colo. That $76 million deal is expected to close in the second quarter of next year.
Monarch said it paid $437,000 in professional fees during the third quarter in connection with the acquisition.
But the company said it offset that cost by tightening its marketing expenses and reducing its bad-debt expenses.
