Reserve casino operations improve for Ameristar

Thursday, March 9, 2000 | 11:10 a.m.

Las Vegas-based Ameristar Casinos Inc. reported a narrowed loss for the quarter ending Dec. 31, as the company continued making progress in improving operations at its Reserve hotel-casino in Henderson.

Ameristar reported a loss of $748,000, or 4 cents per share, compared to a loss of $2.5 million, or 12 cents per share, in the year-ago period. The company reported fourth-quarter revenue of $76.4 million, up 14 percent, and cash flow of $11.6 million, an increase of 22 percent.

The Reserve's fourth-quarter operating loss was $1.2 million, a marked improvement over the loss of $4 million recorded in the year-ago period. Revenues rose 24 percent at the Reserve, to $14 million, while cash flow was $709,000. In the year-ago quarter, the Reserve recorded negative cash flow of $1.8 million.

Ameristar attributed improving results at the Reserve to its marketing plan, which includes a direct-mail marketing campaign and a "cash back" feature at the Reserve's slot club.

"The company is continuing to seek further operating improvements at the Reserve through enhanced revenues and cost controls," Ameristar said today. The Reserve opened in February 1998.

The remainder of the company's properties -- located in Jackpot, Nev., Vicksburg, Miss., and Council Bluffs, Iowa -- all recorded profitable quarters. The strongest performer in the Ameristar portfolio during the quarter was Ameristar Council Bluffs, which recorded operating income of $5 million, a 5 percent increase, and net revenues of $29.7 million, up 18 percent.

For all of 1999, Ameristar posted net income of $205,000, or 1 cent per share, a significant improvement over the loss of $12.7 million, or 62 cents per share, for 1998. Revenues rose 14 percent, to $247.4 million.

During the year, the Reserve posted an operating loss of $7.1 million, compared to a loss of $16.1 million in 1998. Net revenues rose 21 percent to $52.8 million.

The strongest income increase for the year was posted in Council Bluffs, where net income rose 20 percent to $20.7 million. Ameristar said the strong increase was the result of a $26 million expansion to the riverboat, which was completed in November.