Finances improve for LV’s Ameristar

Monday, Feb. 18, 2002 | 10:38 a.m.

Ameristar Casinos Inc. of Las Vegas reported a substantial increase in net income for the quarter ending Dec. 31.

The company, an operator of casinos in Iowa, Missouri, Mississippi and Nevada, reported net income of $9.2 million, or 40 cents per share. This compares to a net loss of $5.7 million, or 28 cents per share, in the year-ago quarter.

Analysts had expected the company to earn 36 cents per share.

Revenues rose 82 percent to $160.1 million, while cash flow increased 145 percent to $38.5 million.

The increases were largely the result of Ameristar's buyout of casinos in Kansas City and St. Charles, Mo., from Station Casinos Inc. in December 2000. The Kansas City casino produced $12.7 million in cash flow for the quarter -- 18 percent higher than the year-ago quarter -- while the St. Charles riverboat posted a 138 percent increase in cash flow, to $11.6 million.

Ameristar also produced better results at its casinos in Mississippi and Iowa. The company's casino in Council Bluffs, Iowa, generated $10.8 million in cash flow, up 33 percent, the result of a recent renovation and mild winter weather. Ameristar's casino in Vicksburg, Miss., posted cash flow of $5.8 million, an increase of 9 percent, due to a property renovation and growth in the Vicksburg gaming market.

The laggards for Ameristar were its two casinos in Jackpot, Nev., which saw cash flow decline 23 percent to $2.3 million. Ameristar blamed this on a weak economy in southern Idaho and poor winter weather.

Separately, Ameristar projected it would report net income of 43 cents to 45 cents per share in the quarter ending March 31, an increase of 39 percent to 45 percent over the year-ago quarter. Analysts had been projecting the company would earn 45 cents in its first quarter.

Ameristar said its cash flow for the quarter should reach $40 million to $41 million, up 12 to 15 percent.