Riverboat company’s earnings climb

Tuesday, Aug. 2, 2005 | 11:11 a.m.

One of the key players in the riverboat gaming industry has reported improved second-quarter earnings.

Alton, Ill.-based Argosy Gaming Co. today announced earnings of $21.7 million, 73 cents a share, on revenue of $270.9 million, compared with $18.6 million, 63 cents a share, on revenue of $254.6 million for the same quarter a year ago.

Argosy is in the process of being acquired by Penn National Gaming Inc., Wyomissing, Pa., which would make the combined company the third-largest casino operator in the nation with revenue of more than $2 billion a year. The $2.2 billion deal is expected to close in the third quarter.

Argosy operates riverboat casinos in Alton, serving the St. Louis market; Riverside, Mo., serving the Kansas City area; Baton Rouge, La.; Sioux City, Iowa; Lawrenceburg, Ind., serving Cincinnati and Dayton, Ohio; and Joliet, Ill., near Chicago.

The company's second quarter earnings were aided by an agreement with the City of Lawrenceburg in which the company promised to invest in that property in exchange for a $5 million annual reduction in payments to the city for 10 years.