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Ameristar Casinos Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:
10qk

10qk

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Ameristar Casinos Inc. (ASCA) filed Quarterly Report for the period ended 2010-06-30.

Ameristar Casinos Inc. has a market cap of $864.64 million; its shares were traded at around $14.94 with a P/E ratio of 21.65 and P/S ratio of 0.71. The dividend yield of Ameristar Casinos Inc. stocks is 2.81%.ASCA is in the portfolios of Private Capital of Private Capital Management, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
This is the annual revenues and earnings per share of ASCA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ASCA.


Highlight of Business Operations:

Consolidated net revenues for the quarter ended June 30, 2010 decreased $15.9 million, or 5.1%, from the second quarter of 2009. The decrease in consolidated net revenues was primarily attributable to the weak economy, the bridge closure in East Chicago and increased competition that opened in the first quarter of 2010 in our St. Charles market. Second quarter 2010 net revenues declined on a year-over-year basis at six of our seven gaming locations while Ameristar Black Hawk’s net revenues increased by $16.9 million, or 81.7%, when compared to second quarter 2009. Ameristar Black Hawk’s net revenue increase is due to the opening of the new hotel on September 29, 2009 and the implementation of the beneficial regulatory reform on July 2, 2009.

For the six months ended June 30, 2010, consolidated net revenues decreased $29.1 million, or 4.7%, from the corresponding 2009 period. During the first six months of 2010, net revenues declined from the corresponding 2009 period by 21.4% at Ameristar East Chicago, 10.2% at Ameristar St. Charles, 7.4% at Ameristar Kansas City, 6.2% at Ameristar Vicksburg, 5.9% at Ameristar Council Bluffs and 1.2% at our Jackpot properties. We believe the weak economic conditions, the bridge closure in East Chicago, the increased competition in our St. Charles market, unusually low table games hold percentages and inclement weather conditions adversely impacted financial results throughout the first half of 2010. The decline in net revenues at our properties was partially mitigated by the performance of Ameristar Black Hawk. Our Black Hawk property’s net revenues increased by $33.4 million, or 81.4%, for the first six months of 2010 when compared to the corresponding 2009 period. The increase is attributable to the opening of the new hotel and implementation of the beneficial regulatory reform as noted above.

In the second quarter of 2010, consolidated operating income decreased $61.6 million, or 110.8%, from the second quarter of 2009, primarily as a result of the non-cash impairment charge of $56.0 million recorded in the second quarter of 2010 that eliminates the remaining net book value of goodwill associated with the acquisition of the East Chicago property and reduces the carrying value of the property’s gaming license to $12.6 million. Ameristar St. Charles’ operating income decreased by $2.9 million, or 17.5%, when compared to second quarter 2009. This is mainly the result of the new competitor entering the St. Charles market in the first quarter of 2010. The improved performance of Ameristar Black Hawk tempered the year-over-year decline in the second quarter 2010 consolidated operating income. Ameristar Black Hawk’s operating income increased by $7.2 million, or 358.7%, when compared to second quarter 2009 due to the benefit of the new hotel and regulatory reform described above. Also, during the second quarter of 2010, operating income increased from the corresponding 2009 period by 5.2% at Ameristar Vicksburg and 3.6% at Ameristar Council Bluffs, indicating these properties are continuing to operate efficiently despite slight declines in net revenues.

For the six months ended June 30, 2010, our operating income was $46.8 million, compared to $124.9 million for the corresponding 2009 period. The decrease is primarily attributable to the $56.0 million non-cash impairment charge recorded in the second quarter of 2010 and the new competition entering the St. Charles market. Ameristar Black Hawk’s operating income increased by $11.0 million, or 186.6%, due to the factors mentioned above.

For the quarter ended June 30, 2010, consolidated interest expense, net of amounts capitalized, increased $8.5 million (33.0%) from the 2009 second quarter. Year to date, consolidated interest expense, net of amounts capitalized, increased $26.0 million (61.1%) from the first six months of 2009. The increase is due primarily to higher interest rate add-ons resulting from the senior credit facility amendment, increased interest expense from the issuance of the senior unsecured notes and the incremental interest incurred on the portion of the revolving

For the three months ended June 30, 2010, we recognized a consolidated net loss of $24.9 million, compared to net income of $14.3 million for the quarter ended June 30, 2009. Diluted loss per share was $0.43 in the quarter ended June 30, 2010, compared to diluted earnings per share of $0.25 in the corresponding prior-year quarter. For the six months ended June 30, 2010 and 2009, we reported a net loss of $14.2 million and net income of $44.2 million, respectively. The decrease is primarily due to the $56.0 million East Chicago impairment charge. Diluted loss per share was $0.25 for the first six months of 2010, compared to diluted earnings per share of $0.76 in the corresponding prior-year period. The impairment charge adversely affected diluted earnings per share by $0.56 for the six months ended June 30, 2010.

Read the The complete Report

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