River Rock says current cash position sufficient to fund debt obligations, planned spending

By Jennifer Lanning Drey

Portland, Ore., Nov. 17 - River Rock Entertainment Authority's chief financial officer said current cash balances and operating cash flows are expected to provide the company with sufficient resources to meet its existing debt obligations and planned operational and capital expenditures, including construction in progress and working capital needs.

The company ended the third quarter with $52.6 million of cash on hand, including restricted cash, Joseph Callahan, River Rock's CFO, reported during its third-quarter earnings conference call.

River Rock made a $7.6 million payment during the quarter to reimburse costs paid by the tribe related to a proposed master planned development. Following the close of the quarter, River Rock reimbursed the tribe an additional $13.5 million.

Going forward, such costs are expected to diminish, Callahan said.

During the call, River Rock's chief executive officer Shawn Smyth said the company remains excited about plans to build the master planned resort but recognizes the realities of the current financing environment, which make it difficult to complete financing on acceptable terms.

River Rock reported third-quarter EBITDA of $14.7 million, compared with EBITDA of $16.9 million for the third quarter of 2007.

Smyth said the quarter was challenging but the company believes it managed well by staying focused on driving customers to its facilities and managing costs.

River Rock Entertainment is a Geyserville, Calif., casino operator controlled by the Dry Creek Rancheria Band of Pomo Indians.

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