Ameristar Casinos expects big quarter

Tuesday, April 4, 2000 | 11 a.m.

Ameristar Casinos Inc. of Las Vegas said Monday it expects to post net income of 14 cents per share for the quarter ending March 31, easily beating analyst expectations. The announcement boosted Ameristar's stock by 50 cents to $4.13 Monday.

In the year-ago quarter, Ameristar recorded a loss of 1 cent per share. The consensus estimate for the first quarter of this year was a profit of 3 cents per share.

Ameristar attributed the strong quarter to improved performance at all of the company's properties, including The Reserve hotel-casino in Henderson and two smaller casinos in Jackpot, Nev. The company spent 1999 making capital improvements to its properties, particularly its hotel-casinos in Vicksburg, Miss., and Council Bluffs, Iowa.

Cash flow for the quarter is expected to reach $18 million, up 45 percent from the year-ago period. Cash flow improvements at each property will range from 19 to 53 percent, the company said, and cash flow and income improvements are expected to continue through year end.

Separately, Ameristar said it received a commitment for a $265 million revolving line of credit from Wells Fargo Bank, doubling the company's available credit. The company said the line will provide a "substantial portion of the financing" for a planned hotel-casino in South St. Louis County, Mo. The property will include a 150-room hotel and a 70,000-square-foot casino.