Join        Login             Stock Quote

Ameristar Casinos (ASCA) 4Q Earnings Drop 83.5 Pct, Miss Estimates

 February 07, 2013 12:10 PM

(By Balaseshan) Ameristar Casinos Inc. (NASDAQ: ASCA) reported a 83.5% drop in quarterly earnings due to lower casino revenue, higher impairment expenses of fixed assets and a rise in interest expense. Results missed Street's expectations.

Earnings for the fourth quarter were $1.22 million or $0.04 per share, down from $7.38 million or $0.22 per share in the previous year quarter.

Adjusted earnings per share (EPS) rose to $0.32 from $0.21. The improvement was mostly attributable to a lower effective income tax rate and a reduction in non-cash stock-based compensation expense.

Net revenue decreased 2.5% to $288.83 million, due to lower casino revenue. The company said new competition in Kansas City and a more challenging competitive environment in the Chicago land market adversely impacted the quarterly results.

[Related -Merger Arbitrage Mondays – June 3, 2013]

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.38 per share on revenue of $291.14 million for the fourth quarter.

Net revenues for Kansas City and East Chicago decreased 8.1% and 3.7%, respectively, representing 88.1% of the consolidated net revenue decline from last year.

The Jackpot properties had a year-over-year net revenue decline of 5.8%, mostly as a result of lower than expected slot hold. The year-over-year variances in net revenues at the other four properties were relatively modest, with declines at Council Bluffs and Vicksburg and increases at Black Hawk and St. Charles, the company noted.

[Related -Stocks Tumble Amid 'Cliff' Impasse; Research In Motion (RIMM) Slumps]

On Feb. 6, the company's board declared a cash dividend of $0.125 per share, payable on March 15 to stockholders of record on Feb. 28.

Looking ahead into the first quarter, the company now expects depreciation of $24.5 million to $25.5 million, interest expense, net of capitalized interest, of $28.5 million to $29.5 million, and the combined state and federal income tax rate to be in the range of 40% to 42%.

The company projects first-quarter capital spending of $49.0 million to $54.0 million, including about $15.0 million for maintenance capital expenditures and $36.0 million related to Lake Charles design and construction costs. Non-cash stock-based compensation expense is anticipated to be $3.6 million to $4.1 million.

On December 21, 2012, Ameristar Casinos has agreed to be acquired by Pinnacle Entertainment Inc. (NYSE: PNK) for $26.50 per share in cash or a total enterprise value of $2.8 billion, including debt of $1.9 billion and cash on hand of $116 million as of September 30, 2012. The deal is now expected to close in the second or third quarter of 2013.

ASCA is trading up 0.32% at $26.40 on Thursday. The stock has been trading between $15.04 and $27.18 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageGermany Is On The Rebound - Time To Buy?

Based on this year's 17% spike in the Stoxx Europe 600 Index, it seems investors have found a home in read on...

article imageIs Drought Risk In The American West An Economic Threat?

The historic and ongoing drought in California is getting harder to ignore in terms of its potential impact read on...

article imageFunds Behaving Badly

Discipline is still the key to read on...

article imageGenuine Parts Co. (GPC): This Company's Raised Dividends For 59 Years

There are 253 million cars and trucks driving along U.S. roads. And the average age of those automobiles is read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.