Profit improves for Icahn’s Vegas casinos

Monday, April 26, 2004 | 10:44 a.m.

Investor Carl Icahn on Friday reported higher revenue and cash flow for his three-property collection of Las Vegas casinos in 2003.

Icahn's American Casino & Entertainment Properties LLC (ACEP), a subsidiary of his American Real Estate Partners (AREP), announced the results for the Stratosphere and the two Arizona Charlie's hotel-casinos.

Net revenue for the year ended Dec. 31 amounted to $262.8 million for the the three properties, an increase of $12.8 million, or 5.1 percent, from 2002.

Combined annual EBITDA (cash flow) for 2003 was $45.5 million, compared with $31.7 million in 2002.

"Our year-end results exceeded our expectations. We attribute this to enhanced customer flow at all three of the casino/hotels. Strong local and improved national economies, diligent expense controls, expanded and improved facilities and enhanced targeting of our respective markets were the key drivers of our results," said Richard Brown, ACEP's president and chief executive.

AREP estimates that, for the three months ended March 31, ACEP's combined net revenue will be approximately $75 million compared to combined net revenue of $66 million for the three months ended March 31, 2003.

For the three months ended March 31, ACEP's combined EBITDA is estimated to be approximately $20.8 million compared to combined EBITDA of $12.3 million for the three months ended March 31, 2003.

"Our first-quarter results easily surpassed our budgeted numbers and we are pleased with our performance to date, especially since all three casino/hotels are EBITDA positive," Brown said in a statement.