Cash flow, net income up for quarter

Wednesday, April 24, 2002 | 10:55 a.m.

Ameristar Casinos Inc. of Las Vegas on Tuesday reported strong increases in net income, revenue and cash flow for the quarter ended March 31.

The Las Vegas-based riverboat casino operator posted net income of $15.4 million, or 57 cents per share, up 295 percent over the year-ago quarter. Analysts had expected to the company to earn 52 cents per share.

Revenue rose 12 percent to $170.1 million, while cash flow increased 27 percent to $45.5 million.

With the exception of its Kansas City, Mo., casino, Ameristar's casinos showed powerful gains during the quarter. The leader was Council Bluffs, Iowa, which saw cash flow increase 65 percent to $12.3 million. Ameristar's Vicksburg, Miss., casino saw cash flow rise 61 percent to $8.9 million, while Ameristar's St. Charles, Mo., casino posted cash flow of $12.4 million, up 22 percent. In Jackpot, Nev., cash flow increased 28 percent to $3.6 million.

The gains in Iowa and Mississippi were attributed to recently completed renovation projects. Construction on these projects disrupted results in the year-ago quarter, the company said.

The Kansas City boat was the only laggard during the quarter, as cash flow fell 3 percent to $15.1 million.

Cash flow drops in quarter for privately held firm

The parent company of the Hard Rock Hotel & Casino reported a 6 percent drop in cash flow for the quarter ended March 31, as increased marketing expenses cut into earnings.

Hard Rock Hotel Inc. reported cash flow of $7.9 million, down from $8.4 million in the year-ago quarter. As Hard Rock is privately held, cash flow is a closely followed indicator of its financial performance.

Hard Rock attributed the decline to increased marketing expenses from the production of a national advertising campaign, as well as the hosting of Howard Stern's radio show for three days in February.

"We believe that the marketing expenditures this past quarter will more than pay for themselves through increased awareness of the property, which will translate into additional future revenues," Hard Rock Chairman and Chief Executive Peter Morton said.

Net income, however, rose 25 percent to $1.5 million, boosted primarily by an $833,000 drop in interest expenses.

Revenues rose 1 percent to $31.3 million. Casino volume, table game hold and hotel occupancy all rose during the quarter, but were offset by lower slot hold and lower room rates.

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