Reserve operator’s earnings up sharply

Monday, May 15, 2000 | 10:43 a.m.

Ameristar Casinos Inc. of Las Vegas today reported net income of $2.8 million or 14 cents per share for the quarter ending March 31 -- beating analyst expectations by 11 cents per share.

In the year-ago quarter, the company lost $113,000, or 1 cent per share. Revenues for the March 2000 quarter rose 17 percent, to $81.7 million, while cash flow increased 46 percent to $18.3 million.

Ameristar's profitable quarter was caused by big gains at its casinos in Iowa and Mississippi -- and came despite continued losses at the Reserve in Henderson.

The Reserve's revenues rose 16 percent for the quarter, Ameristar said, but the property still posted an operating loss of $500,000. Still, the loss was an improvement from the $1.9 million operating loss posted in the year-ago quarter. Ameristar said it will continue to attempt to improve the Reserve's performance through "enhanced revenues and cost controls."

Ameristar's property in Council Bluffs, Iowa, posted 27 percent growth in revenues for the quarter, to $32.1 million. Ameristar said this growth was the result of the casino's expansion, stepped up marketing efforts and an upgrade of the casino's slot inventory. Revenues at Ameristar's property in Vicksburg, Miss., rose 8 percent to $20.7 million, due to an expanded casino and the addition of 300 slots.

Ameristar's two casinos in Jackpot, Nev. -- Cactus Pete's Resort Casino and The Horseshu Hotel & Casino -- recorded an 11 percent increase in revenues, to $14.5 million.