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IN BUSINESS THE ECONOMY PRIMM PROPERTIES PROFITABLE FOR NEW HERBST GAMING LLC By Steve Green senior staff writer Herbst Gaming LLC reported a profit in its first quarter as a standalone company. The company, a lender-led group that took over the assets of the bankrupt Herbst Gaming Inc. late last year, said in its quarterly financial report it THE ECONOMY ‘PASSION PIT’ HELPS STANCH BLEEDING AT RIVIERA By Steve Green senior staff writer Riviera Holdings Corp., operator of casinos in Las Vegas and Black Hawk, Colo., reported a smaller first quarter loss as expenses fell. The company, emerging from bankruptcy under the ownership of new investors led by hotelier Barry Sternlicht, said that for the quarter ended March 31 it lost $2.2 million vs. a loss in the year-ago quarter of $4.5 million. Net revenue came in at $30.8 million, unchanged from a year ago. Riviera reported no interest expense on its debt in the 2011 quarter vs. $3.9 million in the 2010 quarter. With some $276 million in debt and other liabilities expected to be extinguished in the bankruptcy, the company in the first quarter didn’t make payments on that debt. At the Riviera, net revenue of $20.8 million was up 1.3 percent. Casino revenue of $9 million increased 3 percent, thanks to the opening of the “Crazy Girls Passion Pit” featuring go- go dancers entertaining table games players, the company said. Room revenue of $9.3 million increased 10.2 percent because of the average daily room rate increasing from $55.69 to $62.40. Occupancy fell slightly to 81.4 percent. Despite these improvements, food and beverage revenue was off 2.2 percent while entertainment revenue fell 11 percent as fewer shows were offered. As for the outlook, Riviera Holdings said: “We believe that due to a number of factors affecting consumers ... the company may continue to experience lower than expected hotel occupancy rates and casino volumes.” | 23 MAY 2011 | It takes more than good luck to build a dynasty, but ® China Bistro had a great menu and experienced counsel in Lewis and Roca to grow from one restaurant in Scottsdale to 193 nationwide. LAS VEGAS RENO PHOENIX TUCSON ALBUQUERQUE SILICON VALLEy LRLAW.COM Re: Reinvent Asian From: 1 location To: 39 states earned $3.9 million on net revenue of $158.8 million in the first quarter. That compares with a profit of $8 million on net revenue of $159 million in the year-ago quarter by the predecessor company. The numbers aren’t directly comparable since Herbst Gaming Inc.—in bankruptcy—didn’t pay $32.5 million in interest it was obligated to pay. The new company had interest expenses of about $8.8 million this quarter. The new Herbst Gaming LLC said its biggest revenue generator, its complex of three resorts in Primm, posted gross revenue of $51.4 million in the 2011 quarter, up from $48.2 million. Hotel occupancy at Primm was 51.6 percent, up from 42.3 percent. The average daily rate was $38.36, down from $39.46. The company’s slot route in Nevada generated gross revenue of $46 million, down from $48.7 million. 13