Financial figures for the third quarter of this year show big losses for the Atlantic City Hilton Casino Resort, which is trying to restructure its debt and hasn't made a loan payment in nearly a year and a half, and the Resorts Atlantic City, which is trying to hold on for three more weeks until new owners take over.
The numbers released by the state Casino Control
The lone ray of sunshine in the report was proof that non-gambling revenues continue to rise at the casinos.
For the first nine months of the year, they were up 9.8 percent, led by a 20.8 percent increase in the amount of cash generated from the sale of hotel rooms.
"While earnings have been hurt by lower gaming revenues, there are clear signs of strength in these results," said Linda Kassekert, the commission's chairwoman. "People are spending more money on rooms, meals and entertainment."
But not enough, apparently. Gross operating profits at the city's 11 casinos fell by 24.3 percent in the third quarter to $209.8 million, compared to $277 million for the same period last year.
Net revenues fell by 7.5 percent for the period to $1.03 billion.
The numbers were particularly ugly for the Hilton, which stopped paying its bank loans in July 2009 and says it has been trying to work out a deal with its lenders since then. As of the end of September, the casino had skipped $39.3 million worth of payments, including interest.
The Hilton reported $4.7 million in gross operating losses in the quarter compared to gross operating profits of $888,000 a year ago.
The news was also bad for Resorts, the nation's first casino to open outside Nevada. It is due to be taken over by Dennis Gomes, a veteran casino industry executive, and New York real estate developer Morris Bailey in early December for the cut-rate price of $35 million - by far the lowest price ever paid for an Atlantic City casino.
Resorts reported a gross operating loss of $2.9 million for the quarter compared to a gross operating profit of $706,000 a year ago.
The new owners are terminating all employees when they take over and requiring anyone who wants to stay to reapply for their jobs, but at lower salaries.
Trump Marina earned just $247,000 in gross operating profits, down 96.2 percent from the same period last year. Its sister property, Trump Plaza Hotel Casino, also saw a big profit plunge, down 85.3 percent to $927,000.
The Borgata Hotel Casino & Spa led the industry with gross operating profits of $55.9 million, a 19.6 percent decrease. Harrah's Resort Atlantic City reported gross operating profits of $45.8 million, a 5.5 percent decline from a year earlier.
Caesars Atlantic City reported $28.9 million in gross operating profits, down 16.4 percent from a year earlier, the Trump Taj Mahal Casino Resort earned $27.7 million in gross operating profits in the quarter, a 20.6 percent decline, and Bally's Atlantic City earned $24.9 million in gross operating profits, 32.2 percent less than in the same period a year ago.
The Showboat Casino Hotel reported $18.8 million in gross operating profits, a decline of 10 percent compared to the same period last year, while the Tropicana Casino and Resort, which just received a new one-year license this month, reported an 18.7 percent decline in gross operating profits to $14.3 million.
Gross operating profit represents earnings before interest, taxes, depreciation, amortization and charges from affiliates.
For the first nine months of the year, gross operating profits for the 11 casinos were down 23.6 percent to $472.5 million.
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