Charges hurt Ameristar profits in third quarter

Wednesday, Oct. 30, 2002 | 11:17 a.m.

Ameristar Casinos Inc. of Las Vegas on Tuesday reported higher revenues for the third quarter thanks to its growing Missouri operations. But as previously disclosed, profits fell as costs rose.

Ameristar reported a quarterly profit of $7.4 million, down 34.5 percent from the year-ago quarter. Earnings per share of 28 cents were down from 49 cents during the 2001 period. Before special charges, earnings per share for the 2002 quarter were 43 cents.

Cash flow, or EBITDA, improved 7.4 percent to $45 million.

Revenue of $187.3 million increased 20.2 percent as Ameristar opened a larger replacement casino at St. Charles, Mo., in the big St. Louis market.

Ameristar reported some $6 million of non-recurring charges associated with preopening expenses of $4.9 million for the St. Charles boat and a $1.1 million impairment loss from the pending sale of certain gaming equipment.

The growth in revenue and cash flow was driven primarily by increased revenues at the expanded Ameristar St. Charles casino, which opened Aug. 6, as well as continued strong operating results at the Company's Council Bluffs, Iowa, and Vicksburg, Miss., properties.

The company's net income in the third quarter 2002 was hurt by an increase in the base of depreciable assets and the reduction of capitalized interest following the opening of the St. Charles operation, the preopening expenses and initial operating inefficiencies at St. Charles.