"In the third quarter, Ameristar once again demonstrated its ability to produce solid financial results during challenging economic conditions," said Gordon Kanofsky, Ameristar's Chief Executive Officer. "This has been particularly evident at our Black Hawk property, where favorable regulatory reform spurred third quarter year-over-year net revenue growth of 24.2% that, combined with our cost controls put in place over the past year, drove a 58.3% improvement in Adjusted EBITDA and a 7.9 percentage-point increase in the related margin. Additionally, we are pleased by the overwhelmingly positive guest reaction to our new Black Hawk hotel and spa, which offers resort destination amenities and services that are unprecedented in the greater Denver gaming market. The synergy created between the September 29 opening of the hotel and the casino's recently introduced 24-hour operations, increased bet limits and expanded table games has resulted in a substantial improvement in Ameristar Black Hawk's net revenues and an even more substantial improvement in Adjusted EBITDA."

Third Quarter 2009 Results Net revenue decreased 6.8%, from $321.4 million in the prior-year quarter to $299.4 million in the third quarter of 2009, mostly as a result of recessionary market pressures. For the third quarter of 2009, we generated operating income of $51.0 million, compared to $46.2 million in the same period in 2008. Adjusted EBITDA for the third quarter of 2009 decreased 2.1% to $79.3 million, compared to $81.0 million in the 2008 third quarter. However, Adjusted EBITDA margin increased 1.3 percentage points to 26.5%, compared to 25.2% in the third quarter of 2008.

"Favorable regulatory changes affecting three of our properties and the effective implementation of our cost initiatives enabled five of our locations -- Black Hawk, Kansas City, St. Charles, Jackpot and Council Bluffs -- to report Adjusted EBITDA margin growth when compared to the prior-year third quarter," Kanofsky said. "East Chicago maintained its Adjusted EBITDA margin, in spite of the more challenging competitive conditions in that market. Vicksburg was the only Ameristar property that reported a decline in Adjusted EBITDA margin. We believe this property has been negatively impacted by the entry of a new competitor into that market in October 2008 and higher fixed costs for the expanded facility."

For the three months ended September 30, 2009 and 2008, our effective tax rate was 33.2% and 44.7%, respectively. The decrease in the tax rate was mostly due to the permanent reversal of certain contingent tax liabilities and the absence in 2009 of non-deductible costs we incurred in 2008 associated with Missouri and Colorado ballot initiatives. For the third quarter of 2009, the Company's net income of $14.5 million, or $0.25 per diluted share, was relatively unchanged year over year. Savings realized from our leaner cost structure were offset by higher borrowing costs resulting from the Company's debt restructuring to address upcoming maturities under our senior credit facility, which is described below. Additionally, net income and diluted EPS for the third quarter of 2009 were favorably impacted by the decrease in the tax rate from the previously mentioned reversal of contingent tax liabilities. Adjusted EPS was $0.27 for the quarter ended September 30, 2009, compared to $0.34 for the 2008 third quarter.

Additional Financial Information

Debt. We are currently addressing the outstanding balance of our revolving credit facility by requesting the lenders to extend the maturity date from November 2010 to August 2012. We expect to secure extensions on the vast majority of the principal outstanding under the revolving credit facility. Any balance that is not extended is expected to be retired timely through free cash flow. The maturity date extension will require us to pay upfront fees and a higher interest rate on the extended portion of the revolving loans.

At September 30, 2009, the face amount of our outstanding debt was $1.68 billion. Net repayments in the third quarter of 2009 totaled $1.2 million. At September 30, 2009, our total leverage and senior leverage ratios (each as defined in the senior credit facility) were required to be no more than 6.00:1 and 5.75:1, respectively. As of that date, our total leverage ratio and senior leverage ratio were each 4.91:1.

Interest Expense. For the third quarter of 2009, net interest expense was $30.1 million, compared to $19.0 million in the prior-year third quarter. The increase was due mostly to higher interest rate add-ons resulting from a March 2009 amendment to the senior credit facility and the May 2009 issuance of our 9-1/4% senior unsecured notes due in 2014. Capitalized interest increased from $1.6 million for the third quarter of 2008 to $4.2 million in the 2009 third quarter, due mostly to increased construction in progress associated with the Black Hawk hotel and a higher weighted-average borrowing rate.

Stock-Based Compensation. For the quarter ended September 30, 2009, stock-based compensation expense was $4.1 million, compared to $2.2 million in the prior-year third quarter.

Capital Expenditures. For the third quarter of 2009, capital expenditures were $33.3 million, including $15.3 million for the Black Hawk hotel construction.

Dividends. During the third quarter of 2009, our Board of Directors declared two dividends, each in the amount of $0.105 per share, which we paid on July 27 and October 6.

Outlook

"Over the last 12 months, we have substantially reduced operating costs and believe we can sustain these savings," Kanofsky said. "The enhanced flexibility built into our operating structure over the last year has enabled us to maximize margins without adversely affecting the guest experience. At Ameristar Black Hawk, this operating structure has helped maximize Adjusted EBITDA from net revenues that have risen significantly following the regulatory enhancements and the hotel opening. We are confident that we are well-positioned for efficient profitability growth in our other markets when our revenue trends improve with the regional economies.

"As a result of the opening of the Black Hawk hotel, we anticipate decreases in capital spending and capitalized interest and increases in promotional spending, depreciation and free cash flow," Kanofsky added. "We believe the utilization of the free cash flow to repay debt will also result in increased profitability and a further strengthening of our balance sheet."

For the full year 2009, the Company currently expects:

-- depreciation to range from $106 million to $107 million.

-- interest expense, net of capitalized interest, to be between $106 million and $107 million, including non-cash interest expense of approximately $8.2 million.

-- the combined state and federal income tax rate to be in the range of 41% to 42%.

-- capital spending of $157 million to $159 million.

-- capitalized interest of $9.0 million to $9.3 million.

-- non-cash stock-based compensation expense of $12.8 million to $13.3 million.

Conference Call Information We will hold a conference call to discuss our third quarter results on Wednesday, November 4, 2009 at 11 a.m. EST. The call may be accessed live by dialing (888) 694-4728 toll-free domestically, or (973) 582-2745, and referencing conference ID number 36216401. Conference call participants are requested to dial in at least five minutes early to ensure a prompt start. Interested parties wishing to listen to the conference call and view corresponding informative slides on the Internet may do so live at our web site -- www.ameristar.com -- by clicking on "About Us/Investor Relations" and selecting the "Webcasts and Events" link. A copy of the slides will be available in the corresponding "Earnings Releases" section one-half hour before the conference call. In addition, the call will be recorded and can be replayed from November 4, 2009 at 2:30 p.m. EST until November 18, 2009 at 11:59 p.m. EST. To listen to the replay, call toll-free domestically (800) 642-1687, or (706) 645-9291, and reference the conference ID number above.

Forward-Looking Information This 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," "should" 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, 2008, and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

On a monthly basis, gaming regulatory authorities in certain states in which we operate publish gross gaming revenue and/or certain other financial information for the gaming facilities that operate within their respective jurisdictions. Because various factors in addition to our gross gaming revenue (including 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.

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 leading positions in the markets in which it operates. Founded in 1954 in Jackpot, Nev., Ameristar has been a public company since November 1993. The Company has a portfolio of eight casinos in seven markets: Ameristar Casino Resort Spa St. Charles (greater St. Louis); Ameristar Casino Hotel East Chicago (Chicagoland area); Ameristar Casino Hotel Kansas City; Ameristar Casino Hotel Council Bluffs (Omaha, Neb., and southwestern Iowa); Ameristar Casino Hotel Vicksburg (Jackson, Miss., and Monroe, La.); Ameristar Casino Resort Spa Black Hawk (Denver metropolitan area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nev.