SEARCH NEWS:

 

Ameristar Casinos Updates Guidance

LAS VEGAS – (PRESS RELEASE) -- Ameristar Casinos, Inc. (Nasdaq: ASCA) today updated its financial guidance for the third quarter and full year 2005.

Based upon our preliminary results of operations to date, we have revised our previously issued third quarter financial guidance and currently estimate operating income of $39.0 million to $40.0 million (decreased from prior guidance of $42.0 million to $44.0 million), EBITDA of $60.5 million to $61.5 million (decreased from prior guidance of $64.0 million to $66.0 million) and diluted earnings per share of $0.26 to $0.28 (decreased from prior guidance of $0.30 to $0.32). Our revised guidance gives effect to $21.5 million of anticipated depreciation expense and $15.0 million of anticipated interest expense. Our previously issued guidance anticipated $22.0 million of depreciation expense and $15.0 million of interest expense.

We have also revised our financial guidance for the full year 2005. We currently estimate operating income of $162.0 million to $164.0 million (decreased from prior guidance of $171.0 million to $179.0 million), EBITDA of $247.0 million to $249.0 million (decreased from prior guidance of $254.0 million to $262.0 million) and diluted earnings per share of $1.08 to $1.11 (decreased from prior guidance of $1.17 to $1.26 on a post-stock split basis). We currently anticipate $85.0 million of depreciation expense and $60.4 million of interest expense for the full year 2005, versus previously issued guidance of $83 million of depreciation expense and $62 million of interest expense.

The expected reduction in our financial results for the third quarter and full year 2005 is mostly attributable to greater than anticipated construction disruption related to the casino expansion project currently underway at our Mountain High property in Black Hawk, Colorado. Mountain High was also adversely affected for most of the third quarter of 2005 by the temporary closure of a principal highway connecting Black Hawk and Denver. Additionally, a more competitive environment in the St. Louis market has resulted in increased promotional spending at our St. Charles property.

In addition to the factors mentioned above, our revised annual guidance reflects a significant increase in Company-wide health benefit costs during the first six months of 2005.

< Gaming News