Herbst gaming 2008

Our average floating rate on debt incurred under the senior credit facility was 9. As disclosed in the Form K, the Company is currently in default under its amended Credit Agreement.

The amounts outstanding under the amended Credit Agreement have been reclassified as current liabilities in the accompanying balance sheet as of March 31, Under the terms of the subordination, payment may be resumed on the earlier of the date upon which such events of default are cured or waived and days after the date on which the payment blockage notices were received, unless the amended Credit Agreement debt has been accelerated. The amounts outstanding under the Subordinated Notes have been reclassified as current liabilities in the accompanying balance sheet as of March 31, A copy of the Forbearance Agreement is filed as Exhibit We continue our evaluation of financial and strategic alternatives, which may include a recapitalization, refinancing, restructuring or reorganization of the our obligations or a sale of some or all of our businesses.

We and our advisors are actively working toward such a transaction that would address the decline in our operating results and our capital structure, including our outstanding indebtedness. We cannot assure you that we will be successful in undertaking any such alternative in the near term.

We cannot assure you that we would be successful in completing a refinancing or restructuring, if necessary. If we were unable to do so, we may be required to seek protection under Chapter 11 of the U.

Bankruptcy Code. In addition, the Forbearance Agreement provides, among other things, for the following:. The effectiveness of the Forbearance Agreement is conditioned upon, among other things, receipt of any required approval from the Iowa Gaming and Racing Commission.

Long-term debt is expected to mature as follows dollars in thousands :. The Company operates through two business segments: slot route operations and casino operations. The slot route operations involve the installation, operation and service of slot machines at strategic, high traffic non-casino locations such as grocery stores, drug stores, convenience stores, bars and restaurants.

Casino operations are broken into geographic segments: casinos located in Nevada and casinos located in other states. Jo Frontier Casino in St. Joseph, Missouri. These segment results are regularly provided to the Office of the Chief Executive Officer of the Company, the members of which are the chief operating decision-makers of the Company.

Net revenues, income from operations, depreciation and amortization and EBITDA as defined in footnote 2 below for these segments are as follows dollars in thousands :. Slot route operations. Casino operations:. Other states. Total net revenues.

Income from segment operations excluding general and administrative expense. Total income from segment operations. Total income from operations. Other expenses. Total depreciation and amortization. Other and corporate 1. Interest expense, net of capitalized interest. Net income loss. The jury verdict was delivered in connection with an action brought by the family of an individual that alleged that ETT had negligently retained and negligently supervised a temporary employee who in stole a truck from ETT and, while drunk, hit and killed the individual.

The Company believes the award of compensatory and punitive damages against ETT, the liability of ETT and the amount thereof, is not supportable in either law or in fact and plans to vigorously pursue all appropriate post-trial and other remedies, including exercising its right to appeal. Based on a review of the legal opinions and facts available to the Company at this time, the Company has not reserved for this lawsuit.

This lawsuit is currently on appeal. Nevada Use Tax Refund Claims. Based on our review of the Petition and Amicus Curiae brief, the Department is attempting to establish a position that supports denial of the refund claims filed by us and other operators of Nevada casinos.

For periods subsequent to March , we will continue recording an accrual for sales or use tax on complimentary and employee meals at our Nevada casino properties, as the outcome regarding this decision by the Nevada Supreme Court is uncertain at this time. ITEM 2. We are a diversified gaming company that focuses on two business lines: slot route operations and casino operations. If it cannot refinance or restructure, the company said it may be required to seek Chapter 11 bankruptcy protection.

Gaming Control Board Chairman Dennis Neilander said state gambling regulators have monitored Herbst financial issues in recent months. Neilander recalled that the Aladdin resort on the Las Vegas Strip and Fitzgeralds hotel-casino in Reno operated in the past under bankruptcy protection. Be the first to know Get local news delivered to your inbox! Sign up!

Already a Subscriber? Sign in. Terms of Service Privacy Policy. Back to homepage. Casino operations are broken into geographic segments: casinos located in Nevada and casinos located in other states. Income from segment operations is presented inclusive of impairment losses for each respective segment.

In prior periods, impairment losses were included in other expenses but are reclassified here to conform to the current period presentation. Net revenues, income from operations, depreciation and amortization and EBITDA as defined in footnote 1 below for these segments are as follows dollars in thousands :.

Three Months Ended September 30,. Nine months Ended September 30,. Net revenues. Slot route operations. Casino operations:.

Other states. Total net revenues. Income from segment operations. Total income loss from segment operations. General and administrative.

Restructuring costs. Total income loss from operations. Depreciation and amortization. Other expenses. Total depreciation and amortization. Other and corporate. Interest expense, net of capitalized interest.

Loss on impairment of assets. Increase in value of derivative instruments. Net income loss. Segment EBITDA, a non-GAAP measure, is used by management to measure segment profits and losses and consists of income from segment operations plus depreciation and amortization and non-cash impairment charges and is calculated before allocation of overhead and change in value of derivative instruments.

The Company rents space for certain slot machine route operations in convenience stores owned by Terrible Herbst, Inc. This agreement expires on December 31, but may be extended at the option of the Company for one additional term of five years at certain increased license fees in accordance with the terms of the agreement. The jury verdict was delivered in connection with an action brought by the family of an individual that alleged that ETT had negligently retained and negligently supervised a temporary employee who in stole a truck from ETT and, while drunk, hit and killed the individual.

The Company believes the award of compensatory and punitive damages against ETT, the liability of ETT and the amount thereof, is not supportable in either law or in fact and plans to vigorously pursue all appropriate post-trial and other remedies, including exercising its right to appeal. Based on a review of the legal opinions and facts available to the Company at this time, the Company has not reserved for this lawsuit.

This lawsuit is currently on appeal. Based on the denial of the petition, as of January 1, , the Company will no longer accrue for these taxes in the current tax year but due to the uncertainty regarding the method for reimbursement to the Company of taxes paid to date, we will not record any gain from previous tax years until the tax refund is realized. Notify me of new comments via email. Notify me of new posts via email. Skip to content. Share this: Twitter Facebook Reddit.

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