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Arnold M. Knightly

American Casino profits rise

31 March 2008

LAS VEGAS, Nevada -- American Casino & Entertainment Properties on Thursday reported higher profits and revenue in 2007 compared with a tear earlier.

In a filing with the Securities and Exchange Commission, the company said net income increased 50.6 percent to $38.6 million in 2007 from $25.6 million in 2006 and net revenue increased 15.2 percent to $444.2 million from $385.7 million in 2006.

The increases were driven by revenues from the Aquarius, which was bought from Harrah's Entertainment for $114 million in May 2006.

The 1,907-room hotel, formerly the Flamingo Laughlin, is the largest in that city.

The company also owns the Stratosphere, Arizona Charlie's Boulder and Arizona Charlie's Decatur.

Cash flow from operations increased 15.7 percent to $73.4 million in 2007 from $63.5 million the previous year. Casino revenues, which account for 55 percent of the company's revenues for the year, increased 20 percent to $265.1 million from $220.8 million in 2006.

Hotel revenue rose 16.7 percent to $88.2 million from $75.6 million, and food and beverage increased 9 percent to $91.2 million from $83.7 million.

When the Aquarius' effect to the bottom line is removed, the three remaining properties posted a 2.7 percent increase in net revenues in 2007 driven by 7.5 percent increase in casino revenues.

American Casino was bought last month for $1.3 billion by an affiliate of Goldman Sachs, Whitehall Street Real Estate Funds. The company was a gaming subsidiary controlled by billionaire financier Carl Icahn.