Reno Gazette-Journal from Reno, Nevada • Page 21

Business Wednesday. November 23, 1994 Reno Gazette-Journal GAMING Disney posts record earnings, Pokier joins board Commercial wins approval to buy Stockmen's in Elko Sidney Poitier will serve out the term that had been held by the late Disney President Frank G. Wells, who died in a helicopter crash in April The term runs out in February. BURBANK, Calif. Despite lingering problems with its theme parks, Walt Disney Co.

on Tuesday posted record profits of $225.9 million for its fourth quarter and $1.1 billion in the fiscal year thanks to the box-office smash "The Lion King," vidcocas-sctte sales of its animated hits and continuing demand for its merchandise. In a separate announcement, Disney named Oscar-winning actor and director Sidney Poitier to its board. Poitier will serve out the term that had been held by the late Disney President Frank G. Wells, who died in a helicopter crash in April. The term runs out in February.

Disney's results in the quarter ended Sept. 30 matched or exceeded most estimates by analysts, some of whom turned much more bullish on its stock Monday after the results were announced. Smith Barney analyst Jill S. Krutick upgraded her recommendation on Disney's stock to "buy" from "neutral," saying she was encouraged in part by what she believes is a bottoming out in the decline in theme park attendance. Shares in the Burbank-based company closed at 43, up in New York Stock Exchange trading on Tuesday.

"We've been a long-time bear on Disney, and have changed to a much more positive stance," Krutick said. The more bullish come despite nine months of executive suite turmoil for the cpirnpany, marked by the dcaln CWells and the bitter departuitof studio chief Jeffrey Katzenbg riieta rift with Chairman MichadJJ.Eisner. Disney's overair results are clearly improUjrAn a year ago when the company was hammered by losses frdqiti'troubled Euro Disney thiflpark near Paris. A yeacagCPQisney lost $77.7 million irijourth quarter and earned a profim only $299.8 million because of Euro Disney. This year, revenue climbed 24 percent in the quarter, to $2.7 billion, and rose 18 percent for the year, to $8.5 billion.

Operating income jumped 14 percent to $1.97 bil lion. Filmed entertainment, which Katzcnberg oversaw, continued to drive the company's results, with operating income soaring 98 percent to 1 88.5 million in the quarter and 38 percent for the year to $856.1 million. Revenue soared 30 percent to $4.79 billion for the year. In addition to "The Lion King." Disney's biggest box-office hit ever, the company enjoyed substantial profits from vidcocassctte sales of "Aladdin" and "The Return of Jafar." But Euro Disney continues to lose money for Disney, which now owns 40 percent of the park. Disney said that the financially restructured theme park cost the company $57.5 million in losses in the quarter, and $1 10.4 million in losses for the year.

Disney also said it took an unspecified write-off stemming from development costs related to the now-abandoned site of its controversial Disney'a America historic theme park in Virginia. Overall, operating income for various creditors. Simon owns an electrical and plumbing service that works with convention organizers in Las Vegas. He ran the service in Orange, before moving to Nevada. The commission also approved plans by Jackpot Enterprises to operate 95 slots at a new 75-room motel in Jackpot, the Holiday Inn Express.

The venture is the fifth casino operation for the corporation. The commission also ap-, proved Joe G. Maloof and Co. to operate a hotel-casino in North Las Vegas the first such facility for the community. The Fiesta hotel-casino will include 100 hotel rooms, 608 slots, 14 table games and a bingo hall.

It's due to open Dec. 14. The Fiesta is the 12th hotel venture for the Maloof company, which started in Las Vegas, N.M., in the 1890s. CARSON CITY (AP) Investors who took over the Commercial hotel-casino in Elko earlier this year won approval Tuesday from the state Gaming Commission to acquire Stockmen's Motor Hotel in Elko. The commission authorized Jack and Marcy Simon of Full House Inc.

to buy the club from owner Dan Bilbao whose family has run the club since the mid-1950s. The Simons and Commercial general manager Peter Lusich III were approved to operate seven blackjack games, a craps table, roulette wheel, keno game, 187 slots and a sports pool at Stockmen's. The Simons had been approved last March to take over the Commercial from Mary El-lis-Hogan in what amounted mainly to an assumption of about $1.4 million in mortgage debt and other debts owed to Disney's theme parks fell 18 percent in the quarter to $155.3 million and dropped 8 percent for the year to $684.1 million, due in part to a drop in the number of foreign tourists visiting Walt Disney World in Florida. Los Angeles Times itd OSflS ft, rf 'If JI fill Principal "Triple" Secured Principal and interest paid monthly No CommissionsFees deducted "This community is room poor," he said. And that lack of room availability has led some big conventions to different venues.

The Outdoor Retailer trade show is moving to Salt Lake City next year, he said, which translates to a loss of nearly $10 million for Reno. However, there is light at the end of the room-shortage tunnel for Houghton. With a growing convention market bursting at the seams by Houghton's account and a 3-percent growth rate in Reno, Farahi said, "The Clarion is in a perfect position to draw on that growth. Our intentions are to rapidly expand on both sides of the street." shops instead of at the hotel. Farahi agreed that some conventioneers, especially professionals, aren't known for dropping a lot of money at the tables, but conferences for entrepreneurs can mean good casino business.

They are innate risk-takers, he explained, and more likely to risk money in a casino. But the Peppermill may change its perception of conventions in the near future, Zamarin said, after building its new tower. The tower will add 450 rooms to the hotel, allowing much more flexibility to book conventions, he said. Any news of more rooms is good news to Houghton. rates for its proximity to the convention center, which is a notion Farahi embraces.

At the Peppermill, higher room rates can't necessarily offset the loss in gaming revenue. Zamarin said it is a risky proposition for the Peppermill to commit a block of 500 rooms for a convention, which it recently did, when its total room count is 632. During the recent convention, he said, the hotel found itself having to turn away its regular customers and high rollers, who are its "bread and butter." He also attributed the loss in gaming revenue to the fact that conventioneers spend most of their time at meetings and work Clarion From page 10B to be used for conventioneers is mostly a local perception. "San Francisco is considered the great convention city with Moscone Center" easily in reach of downtown hotels, he said. But the time its takes to get across San Francisco from a hotel to the center is the same as it takes to get from one end of Reno to the other, he explained.

"Here you get on the freeway for a novelty," Houghton said. But he conceded that a hotel such as the Clarion is in a good position to charge premium room We have been fulfilling our investors comfort zones for 4 years. Call today for free brochure. No obligation i HW HUM Airlines jJGv-msj WAjfef1L v' 5j Wv -w -jy whirl lMofei7 'I From page 10B United Airlines is selling some seats on Los Angeles-San Francisco flights for $9.97 one-way and is donating the proceeds to charities for the homeless. On flights between Washington, New York or Boston, Delta will give $50 discounts to passengers who bring nonperishable food that will be donated to charities.

During some of the most slack travel holiday days. Southwest Airlines is offering $25 vone-way fares. Trips must be taken between 4 p.m. Thanksgiving Day and midnight Friday. Reno Air is offering some half-off fares during the same period.

Northwest Airlines hopes to use the traditional first day of Christmas shopping to boost travel on Friday. The airline is offering roundtrip fares of $59 to 1 59 for day trips between 50 cities, including Reno, and the Mall of America, a huge shopping center near Northwest's main airport in Minneapolis. The Air Transport Association, a Washington-based industry group, estimates the airlines will carry 11.13 million people between Nov. 20 and the Monday after Thanksgiving. That's 2.9 percent higher than last year.

Baltimore-Washington International Airport added 1,400 parking spaces just before the holidays. Passenger traffic has increased 40 percent since Southwest and other airlines started offering cheap flights from the airport, overburdening the 1 lots at the airport. Amtrak is adding 60 trains to its Northeast corridor tracks to handle a quarter of a million passengers during Thanksgiving weekend. The railroad plans to use all its equipment and borrow cars from commuter railroads to meet the demand. Staff and wire reports Airport offers shuttle service To accommodate an expected record number of travelers during the Thanksgiving holiday weekend, RenoTahoe International Airport will operate a shuttle service between the airport's daily parking lot and the terminal building today.

Shuttles will run from 10 a.m. until midnight, carrying arriving and departing passengers from marked areas every seven to 10 minutes. If parking lots fill to capacity, the airport will provide additional parking areas. Airport officials recommend travelers contact their airlines regarding flight schedules and allow ample time when departing for the airport. Historically, holidays are the busiest times of the year at the airport with extra congestion in parking lots.

To avoid unnecessary delay, airport officials suggest travelers allow extra driving time and arrive at the airport early to process tickets and baggage. Staff reports What would you buy with your share? A new boat? New furniture? A lifetime membership in the American Polka Society? No matter what you do with it, we're giving away $10,000 a day, every day through the month of November. RENO HILTON We do it bigger. 1-800-RENO-FUN Complete ruin miUble it the Club Migtc Ticket ind Proinution Center. Management reserves ill rights..