The company that owns Hooters Hotel and Casino in Las Vegas released their earnings report in August 2006, and it showed that a Hooters Hotel and Casino can do well in Las Vegas. Hooters opened in February 2006 in Las Vegas, and comparing the results of the previous hotel casino at the location, the San Remo Hotel, to the Hooters Hotel, there are some strong contrasts.

In a comparison of the first full quarter of Hooters operations to last year's (the quarter ending June 30th), Hooters casino revenue more than doubled to $6.8 million, the hotel revenue nearly doubled to $6.4 million and the food revenue, which Hooters is famous for, increased over three times, to $6.4 million. Hooters showed over a $10 million increase in revenue.

Hooters isn't on easy street just yet. The company showed a loss of $4 million in the quarter ending June 30, 2006. Adding back depreciation of $1.7 million, the company shows negative cash flow of at least $2.3 million, not counting any capital expenditures or principal repayments. Management believes that its cash situation is adequate with a $15 million line of credit that has barely been touched.

Hooters expenses were up in the quarter, with administrative expense at $5.8 million versus $2 million in the prior quarter; a good portion of the additional expense is advertising. However, the hotel, which has 696 rooms, had only a 73.9% occupancy which was less than the 85.5% from the prior year. Hooters has room for improvement, but if the revenue figures are any indication, Las Vegas likes Hooters.

John Laub is the Chairman of the CEO-CFO Group.

1. "155 East Tropicana Announces Second Quarter Financial Results." Company press release. Business Wire. August 14, 2006.