Ameristar profit up on coinless slots

Tuesday, Feb. 3, 2004 | 10:54 a.m.

SUN STAFF AND WIRE REPORTS

Fourth-quarter net income for Ameristar Casinos Inc. of Las Vegas nearly doubled from a year ago, with the company implementing coinless slot technology and using more efficient, targeted marketing programs.

The company also projected first-quarter earnings below Wall Street's estimate and full-year earnings roughly in line with the analysts' average estimate.

The company said Monday it earned $9.55 million, or 35 cents a share, in the fourth quarter, up from $5.05 million, or 19 cents a share, a year ago. Earnings for the latest period benefited by 3 cents a share for sales and use tax refunds.

Earnings for the latest period beat a Thomson First Call estimate by a penny.

Revenue rose 8.5 percent to $197.1 million from $181.6 million a year ago.

Ameristar expects first-quarter earnings of 40 cents to 44 cents a share, operating income of $33 million to $35 million, and earnings before interest, taxes, depreciation and amortization of $50 million to $52 million.

Analysts surveyed by Thomson First Call expect, on average, earnings of 48 cents a share for the period.

In the year-ago first quarter, the gaming and entertainment company earned 44 cents a share, on revenue of $188.5 million. Operating income was $35 million and EBITDA came in at $50 million.

For the full year, the company expects earnings of $1.94 to $2.16 a share, operating income of $144 million to $154 million, and EBITDA of $215 million to $225 million.

Wall Street puts earnings for the year at $1.98 a share.

For full-year 2003, operating income and EBITDA reached record levels of $139.9 million and $203.5 million, respectively. The company reported earnings of $1.76 a share for the year.

Ameristar owns five properties in Missouri, Iowa and Mississippi. It has a sixth hotel-casino in the Northern Nevada town of Jackpot.