I found 7 Big Corps based in the State of Nevada. I am defining these Big Corps as ones that had more than $200 mil in Core Pretax Earnings or Losses in either of the most recent two years: 2010 and 2009.
On an overall basis, these 7 Nevada Big Corps generated Total Core Pretax Income in 2010 of $284 mil, which was a turnaround from the Total Core Pretax Loss in 2009 of $(716) mil.
On the downside, the Core Pretax Losses of both Caesars Entertainment and MGM Resorts grew in 2010.
But on the upside, both Las Vegas Sands and Wynn Resorts had dramatic earnings improvements in 2010, driven by their strong operations in Macau.
Below here are the individual current earnings for these Nevada 7 largest publicly-held Corps, as was disclosed in either their most recent annual Fiscal Year Ended (FYE) 2010 earnings releases or in their most recent SEC annual report filings.
Nevada 7 Largest Publicly-Held Corps Most Recent Annual Core Pretax Earnings (PTI)
..............................................................................Increase
.......................................FYE......PTI(L)..PTI(L)....(Decrease)...
Nevada Big Corp............2010......2010....2009....Amount...%.
...................................................(millions of dollars)....
Las Vegas Sands(1)...........Dec…....856.....(204)....1,060....520%
Wynn Resorts, Ltd(2).......Dec…....407........23........384...1670%
Intl Game Technology(3)..Sep…....377......297.........80......27%
NV Energy........................Dec…....341......258..........83......32%
Amerco(4).......................Mar…....259........57........202....354%
MGM Resorts(5)...............Dec…...(741)....(317).....(424)..(134)%
Caesars Entertainment(6).Dec….(1,215)...(830).....(385)...(46)%
Total All 7 NV Big Corps................284.....(716)....1,000....140%
(1) Las Vegas Sands 2009 PTI excludes Asset Impairment Charges.
(2) Wynn Resorts PTI in both years exclude Gains and Losses on Debt Extinguishment.
(3) International Game Technology PTI in both years exclude Asset Impairment Charges.
(4) Amerco PTI in both years is for the 12 months ended December.
(5) MGM Resorts Reported PTL in 2010 of $(2,216) excludes:
…..Investment in City Center Impairment Charge of $1,313
…..City Center Residential Impairment Charge of $166
…..Investment in Borgata Impairment Charge of $128
…..Gain on Debt Extinguishment of $(132)
…..= Core PTL in 2010 of $(741)
…..MGM Resorts Reported PTL in 2009 of $(2,013) excludes:
…….Investment in City Center Impairment Charge of $956
…….Atlantic City Renaissance Point Impairment Charge of $548
…….City Center Residential Impairment Charge of $203
…….M Resort Note Impairment of $176
…….Gain on Sale of Treasure Island of $(187)
…….= Core PTL in 2009 of $(317)
(6) Caesars Entertainment, formerly called Harrahs Entertainment, PTL in both years exclude both Gains on Debt Extinguishment and Intangible Asset Impairment Charges.
It is pretty clear that Nevada's economy is highly dependent on California visitors. Thus, California's Big Corp substantial earnings improvement in 2010 should eventually bode well for Nevada. However, to substantially help spur Nevada's economy, California's very high unemployment and underemployment rates must drop significantly.
I think there are two things that the US Government could do to really help Nevada's severely depressed economy.
First, an effective US government program is needed to get the greedy huge Financial Institutions to write down underwater home mortgages. If their accounting is proper, these Financial Institutions should have already reflected the economic loss of these underwater mortgages on their books. Thus, there should be no significant earnings charge to them for taking such an action.
Based on their incredible, nearly miraculous, earnings turnaround in 2010, driven by wise US Government, including Fed, initiatives, I don't think it is too much to ask, and yes even require, these large Financial Institutions to help severely hurt citizens, who are underwater on their home mortgages. And I think the US Government should consider providing some temporary tax incentives, which can be easily designed to have no CBO-scored cost to the US Government over a ten-year scoring period, to incentivize Big Financial Corps to write down these principal balances of underwater home mortgages, both on first mortgages and on second mortgages.
And second, a Refundable Business Energy Tax Credit on Commercial Building Green Retrofit Upgrades should be really beneficial to Nevada businesses, as well as spurring job growth in the Nevada Construction Industry.
