River Rock able to cover capex, working capital with cash; still exploring refinancing options

By Jennifer Lanning Drey

Portland, Ore., Aug. 17 - River Rock Entertainment Authority believes it will have cash to cover its currently planned capital expenditures and working capital needs but continues to explore options for refinancing its senior notes due in November 2011, Joseph Callahan, River Rock's chief financial officer, said Tuesday.

"We have remained in contact with various financial institutions regarding the maturing debt and are actively exploring all options to refinance those senior notes," Callahan said during the company's second-quarter earnings conference call.

River Rock had unrestricted cash of $36 million at June 30.

The company posted second-quarter net revenues of $32.4 million, up from net revenues of $30.8 million for the same period of 2009. Callahan said the company believes the year-over-year increase was a result of the completion of its renovation project.

"We are very pleased with our second-quarter revenue performance. It represents the third quarter in a row that we have reported an improved revenue number over the prior-year period," he said.

River Rock reported second-quarter EBITDA of $15.4 million, up from $14.0 million of EBITDA in the second quarter of 2009.

Net cash provided by operating activities at June 30 was $30.7 million.

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

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