Riviera Reports Lower First Quarter Results

Riviera Holdings Corporation has reported financial results for the three-month period ended March 31, 2008. For the first quarter, company’s net revenue was $48 million, a decrease of $4 million, or 8 percent, from the first quarter of 2007.

Decreases in gaming, rooms, and food and beverage revenues were partially offset by increases in entertainment and other revenues. Income from operations was $6.7 million for the first quarter of 2008, a decrease of $2.2 million from the first quarter of 2007.

Adjusted EBITDA was $10.3 million in the first quarter of 2008 compared with $12.5 million in the first quarter of 2007, a decrease of 17 percent. This decrease is attributable primarily to lower revenues, which were partially offset by reductions in payroll and market costs.

The company reported a net loss for the first quarter of 2008 of $5.8 million, or 47 cents per share, compared to net income of $2.6 million or 20 cents per diluted share a year ago.

The net loss for the first quarter of 2008 is attributable to effects of accounting associated with the interest rate swap agreement entered into by the company when it refinanced its $215 million debt in July 2007.

Non-cash charges of $8.3 million were booked in the first quarter 2008 for the accounting effects of the swap agreement. The company had no swap costs in the 2007 period. As of March 31, Riviera Holdings had $28.8 million of cash, in addition to a $20 million revolver.

The decrease in the market is attributable to several factors, most notably the ban on smoking in Colorado casinos, which went into effect Jan. 1, 2008. Weather conditions, the deteriorating economy and high gas prices also contributed to the decline.