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Ameristar Casinos Posts Record Results

LAS VEGAS-The locally based casino operator with no properties here turns in second quarter results that are well above analyst estimates and announces a plan to buy back up to 2.8 million shares over the next three years.

By Brian K. Miller | Updated on July 27, 2006

LAS VEGAS-Ameristar Casinos Inc., posted strong record results this week. The locally based casino operator with no local casinos on Wednesday revealed earnings of $18 million, or $0.32 per share, 30% higher than analyst estimates of $0.24 per share and 8.3% better than the same period in 2005 despite $0.02 per share in stock options expense that didn’t occur last year.

Net revenue, meanwhile, was up only 3.2% to $246.6 million, in large part due to the performance of its recently renovated and rebranded Ameristar Black Hawk (formerly Mountain High Casino) property in Colorado. EBITDA rose 0.7% to $63.5 million, including the $2.1 million of stock option compensation expense.

In a separate announcement Wednesday, Ameristar announced a plan to repurchase up to 2.8 million shares of the company’s common stock–5% of its outstanding common stock–over the next three years. “We believe that our stock at its current price level represents an attractive investment for the Company,” said chairman/CEO Craig Neilsen.

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