Foxwoods' revenues fell by 71% in quarter that ended June 30
Mashantucket — Foxwoods Resort Casino’s net revenues were down by 71% in the quarter that ended June 30, a three-month period in which the Mashantucket Pequot-owned casino was closed for two months.
The stark statistic is contained in Foxwoods’ latest quarterly report, posted last week on the website of the Electronic Municipal Markets Access system. Covering April, May and June — the third quarter of Foxwoods’ 2020 fiscal year — the report details the extent of the losses the casino incurred after shutting down due to the coronavirus pandemic.
Foxwoods, which closed March 17, partially reopened to the public June 1. Initially, many of the casino’s restaurants, hotel rooms and other amenities remained closed.
Net revenues in the quarter totaled $55.7 million, down from $192.7 million in the same period the previous year. Gaming revenues were $48.2 million, down from $159.2 million, a 69.7% decline. Nongaming revenues were $9.6 million, down from $51.2 million, a decline of 81.2%.
The revenue declines were partially offset by a 57.9% reduction in operating expenses, a savings of $96.6 million.
Payroll costs in the quarter were down $38.7 million, or 56.6%, from last year. On a year-to-date basis, Foxwoods employed the equivalent of 1,565 fewer full-time employees, a workforce reduction of 35.9%.
In June, the Mashantuckets took steps to increase liquidity, proposing a $20 million line of credit and entering into an agreement with the tribe’s bank lender to extend until Dec. 31 the maturity of a loan that had been due to mature June 30.
Moody’s Investors Service, the credit-rating agency, announced July 31 that it had appended a “limited default” designation to the tribe’s debt, saying it “considered the maturity extension to be a missed payment with respect to the principal amortization.”
About $257 million of the original $275 million loan was outstanding as of June 30, according to Moody’s.
“Moody’s believes that Mashantucket would not have been able to repay the ... loan in its entirety on June 30 given that present cash flows, while positive, plus available cash balances are not sufficient to meet all of the Mashantuckets’ debt service obligations,” the agency said.
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