Ameristar Casinos earnings double

Friday, Feb. 4, 2005 | 10:54 a.m.

Increased profitability across properties owned by Ameristar Casinos Inc., as well as the company's acquisition of a casino in Colorado boosted earnings by 51 percent in the fourth quarter.

The Las Vegas-based company, which doesn't own any casinos in town after selling The Reserve, now the Fiesta Henderson, reported profit of $14.5 million in the fourth quarter compared with profit of $9.5 million for the same period a year ago.

The full year of 2004 was the most prosperous in company history, with growth in all key areas including revenue, operating income, profit and earnings per share, Chief Executive Craig Neilsen said in a statement.

Each of the company's casinos led in market share for the year, he said.

Revenue rose 9 percent to $214.7 million. That figure includes promotional costs of $39.4 million in the fourth quarter.

Earnings per share were 52 cents in the fourth quarter compared with 36 cents a year ago. Analysts expected the company to earn 45 cents per share in the fourth quarter.

The company said it expects to earn from 58 cents to 63 cents per share in the first quarter. Analysts are expecting about 58 cents per share. For the full year, the company should earn from $2.34 to $2.51 per share, officials said.

Earnings before interest, taxes, depreciation and amortization -- a key performance indicator for casinos -- rose 18 percent to $8.8 million.

Ameristar, which owns casinos in Colorado, Iowa, Mississippi and Missouri, purchased the Mountain High casino in Black Hawk, Colo. for about $119.5 million in December.

Shares rose $2.90 per share to $47.53 in midday trading today.