Ameristar Casinos Inc. (ASCA, Financial) filed Quarterly Report for the period ended 2010-03-31.
Ameristar Casinos Inc. has a market cap of $1.06 billion; its shares were traded at around $18.4 with a P/E ratio of 21.15 and P/S ratio of 0.87. The dividend yield of Ameristar Casinos Inc. stocks is 2.28%.ASCA is in the portfolios of Private Capital of Private Capital Management, George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
For the three months ended March 31, 2010, consolidated net income decreased $19.2 million, or 64.3%, from the first quarter of 2009. The decrease is primarily attributable to the decline in net revenues and the increase in interest expense described above. Diluted earnings per share were $0.18 for the first quarter of 2010, compared to $0.52 in the corresponding 2009 period, based on diluted common shares of 58.9 million and 57.6 million for the quarters ended March 31, 2010 and 2009, respectively.
During the first quarter of 2010, net debt repayments totaled $36.2 million, including a $35.0 million repayment of a portion of the principal balance outstanding under the revolving credit facility. After taking into consideration the repayments, we have $124.0 million due in November 2010, with approximately $100 million available for borrowing under the extended portion of the revolving credit facility. We intend to repay all 2010 debt maturities with cash from operations and availability under the extended portion of the revolving credit
All mandatory principal repayments have been made through March 31, 2010. As of March 31, 2010, the amount of the revolving loan facility available for borrowing was $125.6 million, after giving effect to $4.4 million of outstanding letters of credit.
Our interest expense has increased significantly as a result of the senior credit facility amendment, senior notes issuance and extension of our revolving loan facility that took place in 2009. For the first quarter of 2010, consolidated net interest expense increased by $17.5 million compared to prior-year first quarter. Additionally, capitalized interest decreased from $2.2 million for the first quarter of 2009 to $0.3 million in the 2010 first quarter, due to the completion of the Ameristar Black Hawk hotel. As a result of our 2009 debt restructuring efforts and the anticipated decrease in capitalized interest, we expect a significant increase in interest expense compared to the prior year.
Assuming we choose not to replace any portion of these swaps upon their expiration on July 19, 2010, we would be exposed to interest rate risk such that an increase, after such date, in LIBOR of 0.5%, 1.0% and 1.5% would result in an increase to annualized interest expense under our senior credit facility (and a decrease to pre-tax earnings) of approximately $5.0 million, $10.0 million and $15.0 million, respectively. However, the net effect of the expiration of the swaps by their terms at such date, together with an increase in LIBOR of 0.5%, 1.0% and 1.5% from its March 31, 2010 level immediately after the expiration of the swaps, would be an annual decrease to interest expense (and increase to pre-tax earnings) of $22.7 million, $17.7 million and $12.7 million, respectively.
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Ameristar Casinos Inc. has a market cap of $1.06 billion; its shares were traded at around $18.4 with a P/E ratio of 21.15 and P/S ratio of 0.87. The dividend yield of Ameristar Casinos Inc. stocks is 2.28%.ASCA is in the portfolios of Private Capital of Private Capital Management, George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
For the three months ended March 31, 2010, corporate expense increased $4.2 million, due mostly to increases in stock-based compensation expense of $1.6 million, deferred compensation expense of $1.1 million and health benefits expense of $0.7 million compared to the first quarter of 2009.For the three months ended March 31, 2010, consolidated net income decreased $19.2 million, or 64.3%, from the first quarter of 2009. The decrease is primarily attributable to the decline in net revenues and the increase in interest expense described above. Diluted earnings per share were $0.18 for the first quarter of 2010, compared to $0.52 in the corresponding 2009 period, based on diluted common shares of 58.9 million and 57.6 million for the quarters ended March 31, 2010 and 2009, respectively.
During the first quarter of 2010, net debt repayments totaled $36.2 million, including a $35.0 million repayment of a portion of the principal balance outstanding under the revolving credit facility. After taking into consideration the repayments, we have $124.0 million due in November 2010, with approximately $100 million available for borrowing under the extended portion of the revolving credit facility. We intend to repay all 2010 debt maturities with cash from operations and availability under the extended portion of the revolving credit
All mandatory principal repayments have been made through March 31, 2010. As of March 31, 2010, the amount of the revolving loan facility available for borrowing was $125.6 million, after giving effect to $4.4 million of outstanding letters of credit.
Our interest expense has increased significantly as a result of the senior credit facility amendment, senior notes issuance and extension of our revolving loan facility that took place in 2009. For the first quarter of 2010, consolidated net interest expense increased by $17.5 million compared to prior-year first quarter. Additionally, capitalized interest decreased from $2.2 million for the first quarter of 2009 to $0.3 million in the 2010 first quarter, due to the completion of the Ameristar Black Hawk hotel. As a result of our 2009 debt restructuring efforts and the anticipated decrease in capitalized interest, we expect a significant increase in interest expense compared to the prior year.
Assuming we choose not to replace any portion of these swaps upon their expiration on July 19, 2010, we would be exposed to interest rate risk such that an increase, after such date, in LIBOR of 0.5%, 1.0% and 1.5% would result in an increase to annualized interest expense under our senior credit facility (and a decrease to pre-tax earnings) of approximately $5.0 million, $10.0 million and $15.0 million, respectively. However, the net effect of the expiration of the swaps by their terms at such date, together with an increase in LIBOR of 0.5%, 1.0% and 1.5% from its March 31, 2010 level immediately after the expiration of the swaps, would be an annual decrease to interest expense (and increase to pre-tax earnings) of $22.7 million, $17.7 million and $12.7 million, respectively.
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