# Casino Operator Expands, Closes Third Las Vegas Regional Real Estate Deal This Year

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Barrick Gaming expanded Southern Nevada's portfolio on Wednesday to acquire Golden Nugget Loughlin from Foster Financial Group for $31 million.

The deal, which is expected to be signed by the two companies in the first quarter of 2005, requires approval from state and federal regulators. The deal includes working capital at the end of the sale, giving Barrick the right to use the name Golden Nugget for up to two years.

Stephen Crystal, co-founder and president of Barrick Gaming, said his company plans to retain Golden Nugget Laughlin's current employees and will not be fired. The 300-room hotel casino has around 1,000 employees.

Golden Nugget Loughlin is Barrick's third major Southern Nevada acquisition this year. In March, the company bought Jackie Gaughan's four main downtown hotel casinos, the Plaza, and the seven-acre Las Vegas Club, the Western Hotel, and the Gold Spike, for $82 million. Last month, the company bought Queen of Hearts and the Nevada Hotel Casino for $7.1 million. [동행복권파워볼](https://www.homeplate.kr)

On Wednesday's conference call, when Foster Financial Group reported third-quarter earnings, Foster Financial Chairman and CEO Tim Foster said finance had decided to sell Golden Nugget Loughlin.

"During the quarter, we received several unwanted and attractive offers to purchase Loughlin properties," Foster said. "A careful analysis revealed differences in the return on capital reinvestment on the two hotel casino properties. The return on Las Vegas properties was higher and will certainly continue to be so."

Meanwhile, Foster said the company would use the proceeds from Golden Nugget Loughlin to repay and reduce its debt. In a statement, Foster Financial said it expected some profit from the sale but gave no details.

Barrick's Crystal said his company sees similarities between Loughlin and Las Vegas purchases. He said both markets attract value-seeking customers, both are ripe for consolidation, and both have untapped potential.

"Both markets have been criticized for not being growth markets, but in fact both are showing that they are in recent growth mode," Crystal said. "Loughlin will grow over time into a place where communities and people will retire."

Crystal said she expects to rebrand the property before the end of the two-year copyright period.

"We don't want to rely on (Golden Nugget) names for a long time," he said, "and we hope to rebrand as soon as it becomes practical."

Meanwhile, Foster Financial reported a sharp decline in net losses and cash flow for the third quarter that ended Sept. 30, when it was hit by a low rate of table game holdings.

The company said in a statement that it posted a net loss of $8.7 million in the quarter ended Sept. 30, compared with a net loss of $900,000 a year earlier. The amounts reflect acquisitions and related financial transactions at Golden Nugget Las Vegas and Golden Nugget Laflin Casino, as if they occurred in early 2003.

On Jan. 23, Foster Financial completed the acquisition of a property comprising a purchase price of $213.7 million (adjusted to $215.2 million for working capital and other adjustments at the closing date) and a transaction fee of about $3.5 million.

In addition, Foster Financial said it formed negative cash flows in the third quarter, defined as earnings before interest, taxes, depreciation and amortization, compared with $6.7 million in positive cash flows in the year-ago period.

Proforma consolidated revenue increased 6.8% to $60.9 million from $57 million.

Despite the results, Foster remained optimistic. On a conference call, he said other key business metrics, including share and daily average ratio, rose in the quarter. Slot handle and table game declines also rose, he said.