-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MR+2vJEJNA5vTOhZqbF0PjhdvnTUp9kY1n4KbuzfUCoOe4N5FJWr4swb9BuexkIC 5L5lCCgLrCOBKF/IjHI8ug== 0000950124-06-006117.txt : 20061025 0000950124-06-006117.hdr.sgml : 20061025 20061025160248 ACCESSION NUMBER: 0000950124-06-006117 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20061025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061025 DATE AS OF CHANGE: 20061025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERISTAR CASINOS INC CENTRAL INDEX KEY: 0000912145 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 880304799 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22494 FILM NUMBER: 061162965 BUSINESS ADDRESS: STREET 1: 3773 HOWARD HUGHES PKWY STREET 2: SUITE 490 SOUTH CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7025677000 MAIL ADDRESS: STREET 1: 3773 HOWARD HUGHES PKWY STREET 2: SUITE 490 SOUTH CITY: LAS VEGAS STATE: NV ZIP: 89109 8-K 1 v24413e8vk.htm FORM 8-K e8vk
Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of Report (Date of Earliest Event Reported):   October 25, 2006

Ameristar Casinos, Inc.


(Exact name of registrant as specified in its charter)
         
Nevada   000-22494   880304799

 
 
 
 
 
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)
     
3773 Howard Hughes Parkway, Suite 490S,
Las Vegas, Nevada
  89169


 
 
 
(Address of principal executive offices)   (Zip Code)
     
Registrant’s telephone number, including area code:   (702) 567-7000

Not Applicable


Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 


TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURES
Exhibit Index
EXHIBIT 99.1


Table of Contents

Item 2.02. Results of Operations and Financial Condition.

On October 25, 2006, Ameristar Casinos, Inc. issued a press release announcing its financial results for the third quarter of 2006. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. Each of the exhibits listed below is incorporated herein in its entirety.

     
Exhibit   Description
99.1
  October 25, 2006 Press Release of the Registrant announcing financial results for the third quarter of 2006.

 


Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Ameristar Casinos, Inc.
 
 
October 25, 2006   By:   /s/ Peter C. Walsh    
    Name:   Peter C. Walsh   
    Title:   Senior Vice President and General Counsel   
 

 


Table of Contents

Exhibit Index

     
Exhibit No.
  Description
99.1
  October 25, 2006 Press Release of the Registrant announcing financial results for the third quarter of 2006.

 

EX-99.1 2 v24413exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
(AMERISTAR CASINOS LOGO)
CONTACT:
Tom Steinbauer
Senior Vice President of Finance, Chief Financial Officer
Ameristar Casinos, Inc.
(702) 567-7000
AMERISTAR CASINOS REPORTS ACROSS THE BOARD
RECORD THIRD QUARTER 2006 FINANCIAL RESULTS
Las Vegas, Nevada, October 25, 2006–Ameristar Casinos, Inc. (Nasdaq-GS: ASCA) today announced 2006 third quarter financial results, which set all-time quarterly records for EBITDA, net income and diluted earnings per share and third quarter records for consolidated net revenues and operating income.
Highlights
    Third quarter consolidated net revenues of $253.6 million, an increase of $15.0 million, or 6.3%, over the third quarter of 2005.
 
    Third quarter consolidated operating income of $46.3 million, an increase of $5.8 million, or 14.3%, from the prior-year third quarter.
 
    Third quarter consolidated EBITDA (a non-GAAP financial measure that is defined and reconciled with operating income below) of $69.6 million, representing an increase of $7.8 million, or 12.6%, from the third quarter of 2005. 2006 third quarter operating income and EBITDA were adversely impacted by

 


 

AMERISTAR FINANCIAL RESULTS
ADD ONE
      $2.5 million of stock-based compensation expense. No such expense was recognized in 2005.
 
    Third quarter diluted earnings per share of $0.37, compared to $0.28 for the third quarter of 2005. Stock-based compensation expense negatively impacted diluted earnings per share in the third quarter of 2006 by $0.03. Analysts’ latest consensus estimate for the third quarter of 2006, as reported by Thomson First Call, was $0.35. Our most recently issued earnings guidance for the third quarter of 2006 indicated a range of diluted earnings per share of $0.35 to $0.36, an increase from our original earnings guidance for the quarter of $0.27 to $0.29 per share.
 
    On August 15, 2006, our Board of Directors declared a quarterly cash dividend of $0.09375 per share, which was paid to stockholders of record as of August 30, 2006.
 
    On July 24, 2006, our Board of Directors approved the repurchase from time to time of up to 2.8 million shares of Ameristar common stock, representing approximately 5% of our outstanding common stock. During the third quarter of 2006, we repurchased approximately 0.4 million shares of common stock at a total cost of approximately $8.0 million under the stock repurchase program.
 
    On July 28, 2006, we hired John Boushy as President. Before joining Ameristar, Mr. Boushy served as Executive VP of Project Development, Design and Construction for Harrah’s Entertainment. Previously, he was responsible for the successful integration of Caesars into Harrah’s, while serving as its Chief Integration Officer.

 


 

AMERISTAR FINANCIAL RESULTS
ADD TWO
    With his proven leadership acumen, Mr. Boushy is responsible for overseeing operations, finance, human resources, marketing, information technology, food and beverage, administration, communications and entertainment. He is also focusing on continuing to leverage the Ameristar brand, while participating in the Company’s pursuit of development opportunities as we consider growth through acquisitions, building new properties and expansion.
     Craig H. Neilsen, Chairman and CEO, stated: “We are very pleased with our record-setting third quarter financial performance. Our financial results reflect the strength of our operating strategies and our ability to continue to grow the Ameristar brand by providing the most complete entertainment experience for our guests while successfully managing costs. To date, we have improved margins without sacrificing our commitment to guest service, as evidenced by our recent guest satisfaction scores. We expect to continue the successful application of our cost management strategies for the foreseeable future.”
Third Quarter Summary
Consolidated Selected Quarterly Financial Data
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
                                 
    Three Months              
    Ended September 30,              
    2006     2005     $ Change     % Change  
Gross revenues
  $ 303,526     $ 286,834     $ 16,692       5.8 %
Promotional allowances
    49,948       48,243       1,705       3.5 %
 
                         
Net revenues
  $ 253,578     $ 238,591     $ 14,987       6.3 %
 
                       
 
                               
Operating income
  $ 46,253     $ 40,479     $ 5,774       14.3 %
 
                       
 
                               
Net income
  $ 21,085     $ 16,100     $ 4,985       31.0 %
 
                       
 
                               
Diluted earnings per share
  $ 0.37     $ 0.28     $ 0.09       32.1 %
 
                       
 
                               
EBITDA
  $ 69,582     $ 61,798     $ 7,784       12.6 %
 
                       

 


 

AMERISTAR FINANCIAL RESULTS
ADD THREE
     Our record quarterly financial results were largely driven by the following four factors:
    Ameristar Black Hawk achieved all-time record financial results in every key performance measure during the third quarter of 2006. Our Black Hawk property has experienced significant growth in business volume and strong improvement in financial performance since its rebranding on April 1, 2006. We anticipate continued market share growth in the Denver gaming market as the property gains further momentum from the recently completed capital improvements and from the hotel, which we expect to be completed in December 2008. The Black Hawk property’s financial results also benefited from reduced construction disruption following the completion of the initial phase of our expansion activities in the first quarter of 2006. Additionally, Ameristar Black Hawk was adversely affected during most of the third quarter of 2005 by the temporary closure of a principal highway connecting Black Hawk and Denver.
 
    Our Vicksburg property surpassed our expectations in the third quarter of 2006 with growth in all key financial performance indicators as we continue to benefit from reduced Mississippi Gulf Coast gaming capacity caused by Hurricane Katrina. We anticipate the increase in the property’s business volume to diminish in the fourth quarter of 2006 now that a year has elapsed and several Gulf Coast casinos have reopened.

 


 

AMERISTAR FINANCIAL RESULTS
ADD FOUR
    Ameristar Council Bluffs’ third quarter 2006 financial performance exceeded our expectations in the face of enhanced competition from the March 2006 major expansion and rebranding of a nearby land-based casino, which has increased its promotional spending since the rebranding. Recent trends indicate a partial recovery of our market share. Ameristar Council Bluffs’ EBITDA and the related margin have increased $3.7 million and 5.5 percentage points, respectively, compared to the second quarter of 2006.
 
    We have successfully modified our cost structure to optimize operating income, EBITDA and margins through the implementation of cost-containment initiatives. During the third quarter of 2006, we began to see the positive impact from our efforts to utilize promotional allowances more efficiently. Our promotional allowances decreased as a percentage of gaming revenues compared to the prior-year third quarter, and we expect this trend to continue in the fourth quarter. In addition to more effective promotional spending, we are continuing to achieve further efficiencies through improved labor management practices. The successful application of these strategies was most notably evident at our St. Charles property where revenues declined from the prior-year third quarter while our margins and EBITDA improved.

 


 

AMERISTAR FINANCIAL RESULTS
ADD FIVE
Financial Results
     The increase in consolidated net revenues for the third quarter of 2006 was primarily attributable to increases over the prior-year third quarter of 101.8% at Ameristar Black Hawk and 11.2% at Ameristar Vicksburg.
     Consolidated casino revenues for the third quarter of 2006 increased $13.4 million over the 2005 third quarter, principally due to an $11.1 million (102.8%) increase in slot revenues at Ameristar Black Hawk, which now features an additional 600 slot machines on its expanded casino floor. We further believe consolidated casino revenues increased in part as a result of the continued successful implementation of our targeted marketing programs, as evidenced by an overall 7.0% increase in rated play at our properties from the third quarter of 2005.
     Consolidated operating income and EBITDA were adversely affected by the $2.5 million in stock-based compensation expense we were required to recognize in the third quarter of 2006 as described above. Consolidated operating income was also impacted by a $2.0 million (9.4%) increase in depreciation and amortization expense over the third quarter of 2005, primarily due to $1.5 million in depreciation expense from the capital improvements placed in service as part of the Ameristar Black Hawk expansion.
     Interest expense for the 2006 third quarter decreased $2.5 million from the third quarter of 2005. The decline was due primarily to a reduced average interest rate resulting from the November 2005 refinancing of our senior secured credit facility and the February 2006 redemption of our senior subordinated notes with borrowings under the new credit facility at a substantially lower interest rate. Capitalized interest for the

 


 

AMERISTAR FINANCIAL RESULTS
ADD SIX
quarter ended September 30, 2006 totaled $2.2 million, representing an increase of 37.9% over the prior-year third quarter.
     During the third quarter of 2006, corporate expense increased $0.9 million, or 7.2%, compared to the 2005 third quarter. The increase is attributable to the recognition in the 2006 period of $1.8 million of stock-based compensation expense at the corporate level (the remaining $0.7 million of this expense was recognized at our various properties). The prior-year third quarter’s financial results reflect a $1.0 million charge in connection with the discontinued pursuit of a casino license in Philadelphia, Pennsylvania.
Building for Future Growth
     Capital expenditures for the 2006 third quarter totaled $63.2 million. These expenditures were mostly funded with cash from operations and, to a lesser extent, with the borrowings under our revolving loan facility. Capital expenditures during the third quarter included $26.1 million related to our expansion activities at Ameristar St. Charles described below, $12.0 million for capital improvement projects at Ameristar Black Hawk, $5.5 million for the acquisition of slot machines and $2.3 million for the construction of a new parking garage at Ameristar Vicksburg.

 


 

AMERISTAR FINANCIAL RESULTS
ADD SEVEN


     Construction continues to progress on schedule at Ameristar St. Charles on our 400-room, all-suite hotel with an indoor/outdoor swimming pool and a 7,000 square-foot full-service spa, and an additional 2,000-space parking garage. The 20,000 square feet of new meeting and conference facilities were completed and opened in the third quarter. The completion dates are projected to be the first quarter of 2007 for the initial 1,400 spaces of the parking garage and the fourth quarter of 2007 for the hotel and the remainder of the garage. We believe these planned improvements will allow us to further enhance our competitive position in the St. Louis market.
     The construction of the hotel at Ameristar Black Hawk also remains on track. The 33-story tower’s 536 well-appointed, oversized rooms will feature upscale furnishings and amenities. The tower will include a meeting center that will feature a main ballroom, a junior ballroom, break-out rooms, pre-function space, a business center and a boardroom. The tower will also have Black Hawk’s only swimming pool and indoor and outdoor spas. Once completed, Ameristar Black Hawk will offer destination resort amenities and services never before seen in the Denver gaming market.
     In Vicksburg, we have completed 65 percent of the garage, ordered steel for the casino expansion and plan to start casino foundation work in November 2006. Construction on the casino expansion, which will add 800 gaming positions to the property, a VIP club, retail and a parking garage, will be completed in the fourth quarter of 2007. These improvements will help to alleviate long-standing capacity constraints and improve convenience of access, which we believe will allow us to increase our market dominance in Vicksburg.

 


 

AMERISTAR FINANCIAL RESULTS
ADD EIGHT


     In addition to our internal capital expenditure projects, we continue to aggressively pursue external expansion opportunities in an attempt to further broaden our overall distribution channels and increase scale that can support our long-term growth plans. We are focusing primarily on the potential acquisition of existing cash flow producing casino-entertainment properties in the United States that can be improved through the implementation of our development and operational expertise. We also selectively consider new development opportunities in existing and emerging domestic and some international markets. Longer term, we contemplate larger scale development projects in major national and international markets.
Outlook
     Based on our preliminary results of operations in October 2006 and our outlook for the remainder of the quarter, we currently estimate operating income of $35 million to $37 million, EBITDA of $58 million to $60 million (given anticipated depreciation expense of $23 million), interest expense of $13 million and diluted earnings per share of $0.24 to $0.26 for the fourth quarter of 2006.
     The above estimates of operating income, EBITDA and diluted earnings per share give effect to the recognition of stock-based compensation expense, which we anticipate will result in additional after-tax expense of $2.0 million and adversely impact diluted earnings per share by $0.03 for the fourth quarter of 2006.
     We are revising our financial guidance for the full year 2006. We currently estimate operating income of $164 million to $166 million (increased from our most recent guidance of $154 million to $160 million), EBITDA of $257 million to $259 million (increased from our most recent guidance of $248 million to $254 million) and diluted earnings per share of $0.97 to $0.99 (increased from our most recent guidance of $0.86 to $0.92). We currently anticipate $94 million of depreciation expense, $51 million of interest expense and $10 million of stock-based compensation expense for the full year 2006.
     Gaming regulatory authorities in Iowa, Mississippi and Missouri currently publish, on a monthly basis, gross gaming revenue, market share and other financial information with respect to the gaming facilities, including Ameristar’s, that operate within their respective jurisdictions. Because various factors in addition to our gross gaming revenue (including changes in operating costs, promotional allowances and corporate and other expenses) influence our operating income, EBITDA and diluted earnings per share, such reported information, as it relates to Ameristar, may not accurately reflect the results of our operations for such periods or for future periods.

 


 

AMERISTAR FINANCIAL RESULTS
ADD NINE
Conference Call
     We will hold a conference call to discuss our third quarter results and guidance for the fourth quarter at 5:00 p.m. Eastern Time on October 25, 2006. The call can be accessed live by calling (800) 310-6649. It can be replayed until November 2, 2006 at 3:00 a.m. Eastern Time by calling (888) 203-1112 and using the access code number 4000547. Interested parties wanting to listen to the live conference call on the Internet may do so on our web site – www.ameristar.com – in “About Ameristar/Investor Relations” under the “Quarterly Results Conference Calls” section.
Forward-Looking Information
     This press release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as “believes,” “estimates,” “anticipates,” “intends,” “expects,” “plans,” “is confident that” or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2005 and “Item 2. Management’s Discussion and Analysis of

 


 

AMERISTAR FINANCIAL RESULTS
ADD TEN
Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2006.
About Ameristar
     Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and entertainment company known for its premier properties characterized by innovative architecture, state-of-the-art casino floors and superior dining, lodging and entertainment offerings. Ameristar’s focus on the total entertainment experience and the highest quality guest service has earned it a leading market share position in each of the markets in which it operates. Founded in 1954 in Jackpot, Nevada, Ameristar has been a public company since November 1993. The company has a portfolio of seven casinos in six markets: Ameristar St. Charles (greater St. Louis); Ameristar Kansas City; Ameristar Council Bluffs (Omaha, Nebraska and southwestern Iowa); Ameristar Vicksburg (Jackson, Mississippi and Monroe, Louisiana); Ameristar Black Hawk (Denver metropolitan area); and Cactus Petes and the Horseshu in Jackpot, Nevada (Idaho and the Pacific Northwest).
###
Visit Ameristar Casinos’ web site at www.ameristar.com
(which shall not be deemed to be incorporated in or a part of this news release).

 


 

AMERISTAR FINANCIAL RESULTS
ADD ELEVEN
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
                                 
    Three Months     Nine Months  
    Ended September 30,     Ended September 30,  
    2006     2005     2006     2005  
REVENUES:
                               
Casino
  $ 254,724     $ 241,287     $ 765,923     $ 725,346  
Food and beverage
    33,478       32,023       100,027       92,818  
Rooms
    7,521       6,804       21,364       18,762  
Other
    7,803       6,720       22,065       18,657  
 
                       
 
    303,526       286,834       909,379       855,583  
Less: Promotional allowances
    49,948       48,243       153,123       138,018  
 
                       
Net revenues
    253,578       238,591       756,256       717,565  
 
                               
OPERATING EXPENSES:
                               
Casino
    109,858       106,885       333,575       320,439  
Food and beverage
    17,219       16,554       51,398       48,665  
Rooms
    1,630       1,653       5,004       4,913  
Other
    5,162       4,405       14,768       12,192  
Selling, general and administrative
    50,068       47,153       151,807       138,671  
Depreciation and amortization
    23,329       21,319       69,859       63,011  
Impairment loss on assets held for sale
    59       143       350       683  
 
                       
Total operating expenses
    207,325       198,112       626,761       588,574  
 
                               
Income from operations
    46,253       40,479       129,495       128,991  
 
                               
OTHER INCOME (EXPENSE):
                               
Interest income
    739       184       2,115       532  
Interest expense, net
    (12,373 )     (14,850 )     (38,140 )     (45,321 )
Loss on early retirement of debt
                (26,264 )     (184 )
Net (loss) gain on disposition of assets
    (8 )     (407 )     113       (1,545 )
 
                       
 
                               
INCOME BEFORE INCOME TAX PROVISION
    34,611       25,406       67,319       82,473  
Income tax provision
    13,526       9,306       25,586       30,491  
 
                       
NET INCOME
  $ 21,085     $ 16,100     $ 41,733     $ 51,982  
 
                       
 
                               
EARNINGS PER SHARE:
                               
Basic
  $ 0.38     $ 0.29     $ 0.74     $ 0.94  
 
                       
Diluted
  $ 0.37     $ 0.28     $ 0.73     $ 0.91  
 
                       
 
                               
CASH DIVIDENDS DECLARED PER SHARE
  $ 0.09     $ 0.08     $ 0.28     $ 0.23  
 
                       
 
                               
WEIGHTED AVERAGE SHARES OUTSTANDING:
                               
Basic
    56,157       55,825       56,153       55,582  
 
                       
Diluted
    57,184       57,232       57,177       57,139  
 
                       

 


 

AMERISTAR FINANCIAL RESULTS
ADD TWELVE
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
                                 
    Three Months     Nine Months  
    Ended September 30,     Ended September 30,  
    2006     2005     2006     2005  
Consolidated cash flow information
                               
Net cash provided by operating activities
  $ 55,073     $ 40,338     $ 138,408     $ 152,749  
Net cash used in investing activities
    (57,603 )     (45,450 )     (166,387 )     (125,319 )
Net cash provided by (used in) financing activities
    5,887       4,815       36,582       (31,177 )
 
                               
Net revenues
                               
Ameristar St. Charles
  $ 70,974     $ 71,367     $ 216,125     $ 215,527  
Ameristar Kansas City
    62,350       62,127       189,549       185,701  
Ameristar Council Bluffs
    46,420       46,956       137,365       140,580  
Ameristar Vicksburg
    32,825       29,516       103,182       88,160  
Jackpot Properties
    18,667       17,553       52,018       48,421  
Ameristar Black Hawk
    22,342       11,072       58,017       39,176  
 
                       
Consolidated net revenues
  $ 253,578     $ 238,591     $ 756,256     $ 717,565  
 
                       
 
                               
Operating income (loss)
                               
Ameristar St. Charles
  $ 16,253     $ 15,157     $ 49,838     $ 49,197  
Ameristar Kansas City
    11,745       12,439       35,676       38,648  
Ameristar Council Bluffs
    14,222       15,151       37,586       43,045  
Ameristar Vicksburg
    9,923       8,040       32,821       24,924  
Jackpot Properties
    3,963       3,909       10,150       8,839  
Ameristar Black Hawk
    3,825       (1,454 )     5,384       1,555  
Corporate and other
    (13,678 )     (12,763 )     (41,960 )     (37,217 )
 
                       
Consolidated operating income
  $ 46,253     $ 40,479     $ 129,495     $ 128,991  
 
                       
 
                               
EBITDA (1)
                               
Ameristar St. Charles
  $ 22,904     $ 21,786     $ 69,660     $ 68,829  
Ameristar Kansas City
    17,032       17,673       52,342       54,084  
Ameristar Council Bluffs
    17,571       18,216       47,459       52,050  
Ameristar Vicksburg
    12,879       10,977       41,955       33,799  
Jackpot Properties
    5,043       4,906       13,392       12,058  
Ameristar Black Hawk
    7,008       202       14,037       6,001  
Corporate and other
    (12,855 )     (11,962 )     (39,491 )     (34,819 )
 
                       
Consolidated EBITDA
  $ 69,582     $ 61,798     $ 199,354     $ 192,002  
 
                       

 


 

AMERISTAR FINANCIAL RESULTS
ADD THIRTEEN
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA – CONTINUED
(Dollars in Thousands)
(Unaudited)
                                 
    Three Months   Nine Months
    Ended September 30,   Ended September 30,
    2006   2005   2006   2005
Operating income margins (2)
                               
Ameristar St. Charles
    22.9 %     21.2 %     23.1 %     22.8 %
Ameristar Kansas City
    18.8 %     20.0 %     18.8 %     20.8 %
Ameristar Council Bluffs
    30.6 %     32.3 %     27.4 %     30.6 %
Ameristar Vicksburg
    30.2 %     27.2 %     31.8 %     28.3 %
Jackpot Properties
    21.2 %     22.3 %     19.5 %     18.3 %
Ameristar Black Hawk
    17.1 %     (13.1 %)     9.3 %     4.0 %
Consolidated operating income margin
    18.2 %     17.0 %     17.1 %     18.0 %
 
                               
EBITDA margins (1)
                               
Ameristar St. Charles
    32.3 %     30.5 %     32.2 %     31.9 %
Ameristar Kansas City
    27.3 %     28.4 %     27.6 %     29.1 %
Ameristar Council Bluffs
    37.9 %     38.8 %     34.5 %     37.0 %
Ameristar Vicksburg
    39.2 %     37.2 %     40.7 %     38.3 %
Jackpot Properties
    27.0 %     27.9 %     25.7 %     24.9 %
Ameristar Black Hawk
    31.4 %     1.8 %     24.2 %     15.3 %
Consolidated EBITDA margin
    27.4 %     25.9 %     26.4 %     26.8 %
 
(1)   EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA is presented solely as a supplemental disclosure because management believes that it is a widely used measure of operating performance in the gaming industry and a principal basis for the valuation of gaming companies. Our credit agreement also requires the use of EBITDA as a measure of compliance with our principal debt covenants. In addition, management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of our operating properties’ performance, including the evaluation of operating personnel. EBITDA margin is EBITDA as a percentage of net revenues. EBITDA should not be construed as an alternative to income from operations (as determined in accordance with GAAP) as an indicator of our operating performance, as an alternative to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. It should also be noted that not all gaming companies that report EBITDA calculate EBITDA in the same manner as we do.
 
(2)   Operating income margin is operating income (loss) as a percentage of net revenues.

 


 

AMERISTAR FINANCIAL RESULTS
ADD FOURTEEN
RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
(Dollars in Thousands)
(Unaudited)
     The following table sets forth a reconciliation of operating income (loss), a GAAP financial measure, to EBITDA, a non-GAAP financial measure.
                                 
    Three Months     Nine Months  
    Ended September 30,     Ended September 30,  
    2006     2005     2006     2005  
Ameristar St. Charles:
                               
Operating income
  $ 16,253     $ 15,157     $ 49,838     $ 49,197  
Depreciation and amortization
    6,651       6,629       19,822       19,632  
 
                       
EBITDA
  $ 22,904     $ 21,786     $ 69,660     $ 68,829  
 
                       
 
                               
Ameristar Kansas City:
                               
Operating income
  $ 11,745     $ 12,439     $ 35,676     $ 38,648  
Depreciation and amortization
    5,287       5,234       16,666       15,436  
 
                       
EBITDA
  $ 17,032     $ 17,673     $ 52,342     $ 54,084  
 
                       
 
                               
Ameristar Council Bluffs:
                               
Operating income
  $ 14,222     $ 15,151     $ 37,586     $ 43,045  
Depreciation and amortization
    3,349       3,065       9,873       9,005  
 
                       
EBITDA
  $ 17,571     $ 18,216     $ 47,459     $ 52,050  
 
                       
 
                               
Ameristar Vicksburg:
                               
Operating income
  $ 9,923     $ 8,040     $ 32,821     $ 24,924  
Depreciation and amortization
    2,956       2,937       9,134       8,875  
 
                       
EBITDA
  $ 12,879     $ 10,977     $ 41,955     $ 33,799  
 
                       
 
                               
Jackpot Properties:
                               
Operating income
  $ 3,963     $ 3,909     $ 10,150     $ 8,839  
Depreciation and amortization
    1,080       997       3,242       3,219  
 
                       
EBITDA
  $ 5,043     $ 4,906     $ 13,392     $ 12,058  
 
                       
 
                               
Ameristar Black Hawk:
                               
Operating income (loss)
  $ 3,825     $ (1,454 )   $ 5,384     $ 1,555  
Depreciation and amortization
    3,183       1,656       8,653       4,446  
 
                       
EBITDA
  $ 7,008     $ 202     $ 14,037     $ 6,001  
 
                       
 
                               
Corporate and other:
                               
Operating loss
  $ (13,678 )   $ (12,763 )   $ (41,960 )   $ (37,217 )
Depreciation and amortization
    823       801       2,469       2,398  
 
                       
EBITDA
  $ (12,855 )   $ (11,962 )   $ (39,491 )   $ (34,819 )
 
                       
 
                               
Consolidated:
                               
Operating income
  $ 46,253     $ 40,479     $ 129,495     $ 128,991  
Depreciation and amortization
    23,329       21,319       69,859       63,011  
 
                       
EBITDA
  $ 69,582     $ 61,798     $ 199,354     $ 192,002  
 
                       
###

 

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