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Par-A-Dice Parent Company Reports 75% Revenue Drop in 2Q

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Tim Shelley / Peoria Public Radio
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The Par-A-Dice Hotel and Casino's parent company sustained a 75 percent year-over-year revenue plummet in the second quarter due to the COVID-19 pandemic.Revenues were $209 million in the second quarter this year, compared to $846 million over the same period last year. Those losses caused by the extended shutdowns forced the company to make some major cutbacks at its 29 properties in 10 different states, including Illinois.

CEO Keith Smith said many cuts will remain permanent even as the country gradually reopens.

"We understand this is a fluid environment, and that we will need to adapt as necessary. But we will not simply return to the old way of doing business," Smith told investors Tuesday on an earnings call. "We have created a more efficient, highly-focused, higher margin of business, and we plan to keep that philosophy in place even after this crisis is over."

The East Peoria casino laid off more than a quarter of its 700-strong workforce earlier this month.

Smith said the company also will use the opportunity to sunset some less-profitable aspects of the business as it regears toward sports and digital gaming.

"We think largely that many of these costs will stay out of the business, and that we won't have to bring them back in, whether that be in the form of labor, or be it in the form of not bringing back all the amenities. You know, buffets are a great example," he said.

Every property is generating positive cash flow since reopening, however.

Chief Financial Officer Josh Hirsberg said the company is trying to build in new discipline after the closure.

"We're starting from a clean sheet of paper, really, from being closed," Hirsberg said. "So as we incrementally add amenities or incrementally add marketing, we have a much clearer picture of the actual impact on profitability. And we can make those decision as to whether we want to go to that next step or even pull back."

The Par-A-Dice Casino reopened July 1 after closing in March due to the pandemic. It is one of the Peoria area's larger employers.

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