CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Related Links
Related News

Gaming News

 

American Casino & Entertainment Properties reports 2015 Q3 financial results

16 November 2015

(PRESS RELEASE) -- American Casino & Entertainment Properties LLC (ACEP) has reported financial results for the third quarter, which ended on Sept. 30, 2015.

Third quarter consolidated net revenues were $93.7 million in 2015 compared to $87.9 million in 2014, an increase of 6.6%. ACEP reported a third quarter net loss of $6.7 million for 2015 compared to net income of $600,000 in 2014. Adjusted EBITDA increased 25.5% to $18.7 million in the third quarter of 2015 compared to $14.9 million in the third quarter of 2014. Adjusted EBITDA margin increased to 20.0% compared to 17.0% in 2014.

The increase in consolidated net revenues was driven by increased slot and table games revenue, higher occupancy, increased average daily rates and higher food and beverage covers. ACEP has reported year over year increases in net revenue in each of the last seven quarters, and year over year increases in adjusted EBITDA in six out of seven quarters. Net loss for the third quarter of 2015 was negatively impacted by a $13.6 million loss on debt redemption related to the early redemption of the remaining aggregate principal amount of our first lien term loans and second lien term loans, of which approximately $7.8 million was non-cash.

On July 7, 2015, ACEP entered into a credit and guaranty agreement in an aggregate principal amount of $310.0 million, consisting of $295.0 million of term loans and a $15.0 million revolving facility. The proceeds of the term loans were used, together with cash on hand of approximately $17.4 million, to repay in full the company's existing obligations under the 2013 credit agreements. ACEP expects to reduce cash paid for interest by approximately $7.0 million in the first 12 months.

Stratosphere Casino Hotel and Tower

Stratosphere Casino, Resort & Tower's third quarter net revenues increased 11.4% in 2015 compared to 2014. Hotel revenue increased 20.5% in 2015 compared to 2014, due to a 7.0% increase in occupancy and a 11.5% increase in average daily room rates. Casino revenues increased 8.0% due primarily to increased slot and table games revenue. Food and beverage revenues increased 9.2% due to increased food and beverage covers. Tower revenue fell 1.8% due primarily to decreased average revenue per tower guest and decreased SkyJump admissions. Stratosphere increased adjusted EBITDA 57.0% and adjusted EBITDA margin increased 5.8% during the third quarter of 2015 compared to 2014.

Arizona Charlie's casinos: Arizona Charlie's Boulder and Arizona Charlie's Decatur

The Arizona Charlie's Casinos' third quarter net revenues were unchanged in 2015 as compared to 2014. Casino revenues decreased 2.7% due to lower slot coin-in, race and sports hold and bingo hold. Hotel revenues increased 28.0% due to increased occupancy and higher average daily room rates and food and beverage revenues increased 2.2% due to increased average check per cover. Due to increased expenses, adjusted EBITDA decreased 20.4% and adjusted EBITDA margin decreased 2.3% at the Arizona Charlie's properties during the third quarter of 2015 as compared to the third quarter of 2014.

Aquarius Casino Resort

Aquarius Casino Resorts' third quarter net revenues increased 4.5% in 2015 compared to 2014. Hotel revenue increased 6.0% in 2015 as occupancy increased to 57.0% in 2015 compared to 55.7% in 2014. Casino revenue increased 3.3% due to increased slot and table revenue. Food and beverage revenue increased 8.0% due to a higher average check per cover. Adjusted EBITDA increased 18.8% and adjusted EBITDA margin increased 3.5% in the third quarter of 2015 as compared to the third quarter of 2014.

Financial statistics as of Sept. 30, 2015

• Cash: $69.6 million
• Unrestricted cash: $61.3 million
• Consolidated total debt: $295.2 million
• Consolidated capital expenditures for the four fiscal quarters that ended September 30, 2015: $16.7 million

Conference call information

ACEP will hold its third quarter 2015 earnings conference call on Monday, Nov. 16, at 1 p.m. Pacific Time (2 p.m. Mountain, 3 p.m. Central, 4 p.m. Eastern). To attend, dial 888-505-4375 (US/Canada toll-free). The pass code is 141467.

A recording of the call will be available on the American Casino & Entertainment Properties LLC website's investor relations page.

< Gaming News