River Rock: cash still expected to cover existing obligations, plans

By Jennifer Lanning Drey

Portland, Ore., Nov. 16 - River Rock Entertainment Authority continues to believe that its current cash balances and operating cash flows will be sufficient to meet its existing debt obligations, current planned operational capital expenditures and working capital needs, Joseph Callahan, chief financial officer of River Rock, said Monday during the company's third-quarter earnings conference call.

River Rock ended the third quarter with $35.6 million of cash on hand, net of restricted cash, he said.

Net cash provided by operating activities at Sept. 30 totaled $39.9 million.

For the third quarter, River Rock posted net revenues of $29.7 million, down from $32.3 million in the same period of 2008. The decline was driven by the adverse impact of the economic slowdown on the gaming and entertainment sector, Callahan said.

Third-quarter EBITDA was $13.2 million, compared to EBITDA of $14.7 million in the comparable prior-year period.

"Even though the economy continues to remain challenging, we believe that we have managed our operations well in the third quarter and have a lot of new and exciting things going on on the property," Scott Garawitz, chief executive officer of River Rock, said during the call.

The company remained focused on cost containment during the third quarter and its previously announced renovation project at the casino, he said.

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

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