Wednesday, gaming and entertainment company Ameristar Casinos Inc. (ASCA) said its third quarter profit improved slightly from a year ago on lower expenses, notwithstanding the decline in revenues. However, adjusted earnings per share dipped from last year, yet matching Street estimate.
The Las Vegas, Nevada-based Ameristar's third-quarter net income increased slightly to $14.46 million from $14.33 million last year. However, third-quarter earnings per share remained flat at $0.25.
Excluding items, adjusted earnings per share declined to $0.27 from $0.34 in the prior year. On average, twelve analysts polled by Thomson Reuters expected earnings per share of $0.27 for the quarter. Analysts' estimate typically excludes one-time items.
Quarterly net revenues slipped 6.8% to $299.43 million from $321.40 million in the comparable period. Revenues fell short of analysts' estimate of $316.69 million for the quarter.
Ameristar said its revenues decline year-on-year mostly as a result of recessionary market pressures. Casino revenues slipped to $311.14 million from $329.84 million a year ago, while food and beverage revenues decreased to $31.2 million from $39.64 million a year ago. Revenues from rooms declined to $16.6 million from $15.9 million last year. Promotional allowances, which are deducted from total revenues, decreased to $67.7 million from $74.1 million a year ago.
Operating expenses for the quarter decreased to $248.47 million from $275.16 million in the previous year. For the third quarter, the company generated operating income of $51.0 million, compared to $46.2 million in the same period in 2008.
Year-to-date, the company reported net income of $58.64 million or $1.01 per share, compared to a loss of $29.58 million or $0.52 per share in the corresponding period last year. Adjusted earnings per share rose to $1.11 from $0.98 a year ago. Nine-month net revenues declined to $924.2 million from $974.3 million a year ago.
For the full year 2009, the company now expects capital spending between $157 million and $159 million.
ASCA is trading at $16.01, up $0.64 or 4.03%, on a volume of about 316 thousand shares.
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