Ameristar says fourth quarter results signal market recovery
Las Vegas-based Ameristar Casinos grew revenues and net income in the fourth quarter, a continued sign that regional gaming operations are recovering quicker than destination markets.
Ameristar, which doesn't operate a casino in Las Vegas but has two small casinos near the Nevada-Idaho border community of Jackpot, said Wednesday its net income was $10.9 million, or 18 cents a share, in the three-month period ended Dec. 31. A year earlier, the company recorded a net loss of $63.3 million, or $1.10 a share.
Analysts polled by Thomson Reuters expected the company to earn 16 cents a share.
Revenue at Ameristar's eight casinos in seven regional markets grew 1 percent to $294.1 million.
"We believe the fourth quarter reflected signs of market stabilization in many of our markets that, together with the strength of our operating strategies, lays the foundation for our return to growth," Ameristar Chief Executive Officer Gordon Kanofsky said in a statement.
Wells Fargo Securities gaming analyst Carlo Santarelli said Ameristar benefited from "better-than-expected results" at its casinos in Iowa, Colorado and Indiana.
Ameristar told investors its continues to see signs of market stabilization and expects the trend to continue through the 2011.
"We find these comments to be positive and in line with other regional operator comments," JP Morgan gaming analyst Joe Greff told investors.
Talks of a potential buyout pf Ameristar have circulated since the 2006 death of company founder Craig Neilsen. His more than 50 percent stake in the company went to a foundation that focuses on spinal cord research.
Ameristar announced last August that its board of directors was exploring a potential sale. In December the company said it halted the process.
Ameristar shares rose 39 cents, or 2.43 percent, Wednesday to close at $16.44 on the New York Stock Exchange.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
