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Hurricane Harvey hits Ardent in Texas

Trevor Chappell  |  31 Aug 2017Text size  Decrease  Increase  |  

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MELBOURNE - [AAP] Ardent Leisure's (ASX: AAD) bowling and games centres in Texas have taken a battering from Hurricane Harvey.

The theme park and entertainment centre company says five of its Main Event bowling and games centres in Houston had been damaged as the storm--said to be worse than 2005's Katrina--barrelled into the US state.

Ardent says the centres have been closed and it is assessing the damage.

Three centres are expected to re-open within seven days, a fourth should re-open in around two months but the fifth is more extensively damaged and it is not known when its doors will be opened again.

Another three Main Event centres outside of Houston are being assessed but it is though any damage will be minor.

"This represents the current preliminary assessment of the Main Event team who are managing the situation on the ground, but remains subject to change based on further evaluation work and changes in prevailing weather and environmental conditions," Ardent said in a statement on Thursday.

Insurance should cover any costs and loss of earnings, it said.

Main Event also was helping its employees affected by the hurricane.

Ardent Leisure now has 38 Main Event centres in 14 US states--after opening 10 in the 2016/17 financial year--16 of them in Texas.

Ardent Leisure shares were steady at $1.93 at 1053 AEST.

Meanwhile, Ardent reported a net loss of $62.6 million for fiscal 2017, down from a profit of $42.4 million in the prior year.

The group's bottom line was significantly affected by the closure of the group's Dreamworld theme park on the Gold Coast for 45 days following an accident on the Thunder River Rapids ride that killed four people in October 2016.

Revenue from continuing operations for the year to June 30 fell 4.4 per cent to $498 million, and core earnings dropped by 82 per cent to $11.3 million.

The company declared a final distribution of 1 cent per security, down from 5.5 cents a year earlier.

Ardent foreshadowed the result in an update of its performance and strategy on August 11.

At the time, Ardent described the performance of its Main Event business as disappointing.

 

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