Exhibit 99.1
![(AMERISTAR CASINOS LOGO)](https://capedge.com/proxy/8-K/0000950124-07-000591/v26851v2685100.gif)
CONTACT:
Tom Steinbauer
Senior Vice President of Finance, Chief Financial Officer
Ameristar Casinos, Inc.
(702) 567-7000
Senior Vice President of Finance, Chief Financial Officer
Ameristar Casinos, Inc.
(702) 567-7000
AMERISTAR CASINOS REPORTS RECORD FOURTH QUARTER
AND ANNUAL 2006 FINANCIAL RESULTS
AND ANNUAL 2006 FINANCIAL RESULTS
Las Vegas, Nevada, February 1, 2007–Ameristar Casinos, Inc. (Nasdaq-GS: ASCA) today announced record fourth quarter and annual 2006 financial results.
Highlights
• | All-time records for fourth quarter consolidated net revenues, operating income, EBITDA, net income and diluted earnings per share1 | ||
• | Fifth consecutive year of record annual consolidated net revenues, operating income and EBITDA, as well as net income and diluted earnings per share after adjustment for loss on early retirement of debt1 | ||
• | Fourth quarter EBITDA increased 6.4% to $66.1 million | ||
• | Fourth quarter diluted earnings per share grew 24.0% to $0.31 | ||
• | 2006 adjusted diluted earnings per share grew 15.5% to $1.34 | ||
• | Exceeded diluted earnings per share guidance for the quarter and year by $0.05 |
1 | EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that are reconciled to GAAP financial measures in the tables at the end of this release. |
John Boushy, CEO and President, stated: “2006 was the most prosperous year in our company’s history. Our record fourth quarter performance was achieved while the entire Ameristar team mourned the loss of our founder, Chairman and CEO, Craig H. Neilsen. He leaves us a tremendous legacy and a strong foundation for future growth.
“Over the next three to five years, our goal is to double our EBITDA. We intend to grow through our continued commitment to being the most profitable operator in our markets along with high-quality investments that produce attractive incremental returns at existing properties. Additionally, we expect to capture strong, unmet demand for the Ameristar experience by aggressively pursuing acquisition opportunities in new locations that diversify our revenue base and increase our profitability.
“Our record fourth quarter and annual financial results are a testament to our ability to profitably grow the Ameristar brand by providing the highest quality facilities in our markets and the most complete entertainment experience for our guests. The dedication of our 7,200 team members to constantly deliver excellent guest experiences is truly inspiring. Our commitment to quality clearly differentiates us from our competition.”
2
Consolidated Selected Quarterly and Annual Financial Data
(Amounts in Millions, Except Per Share Data)
(Unaudited)
(Amounts in Millions, Except Per Share Data)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2006 | 2005 | Change | 2006 | 2005 | Change | |||||||||||||||||||
Gross revenues | $ | 287.8 | $ | 295.9 | (2.7 | %) | $ | 1,197.2 | $ | 1,151.5 | 4.0 | % | ||||||||||||
Promotional allowances | (43.7 | ) | (52.1 | ) | (16.1 | %) | (196.9 | ) | (190.1 | ) | 3.5 | % | ||||||||||||
Net revenues | $ | 244.1 | $ | 243.8 | 0.1 | % | $ | 1,000.3 | $ | 961.4 | 4.1 | % | ||||||||||||
Operating income | $ | 42.0 | $ | 39.7 | 5.8 | % | $ | 171.5 | $ | 168.7 | 1.7 | % | ||||||||||||
Net income | $ | 17.8 | $ | 14.3 | 24.7 | % | $ | 59.6 | $ | 66.3 | (10.1 | %) | ||||||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.25 | 24.0 | % | $ | 1.04 | $ | 1.16 | (10.3 | %) | ||||||||||||
EBITDA | $ | 66.1 | $ | 62.1 | 6.4 | % | $ | 265.4 | $ | 254.1 | 4.5 | % | ||||||||||||
Fourth Quarter Summary
Ameristar’s record quarterly financial results were largely driven by the following three factors:
• | In 2006, Ameristar Black Hawk achieved record fourth quarter financial results in every key performance measure. Our Black Hawk property experienced significant growth in business volume and strong improvement in financial performance since its rebranding on April 1, 2006. The property’s financial results also benefited from the absence of construction disruption that adversely impacted performance for the fourth quarter of 2005. | ||
• | Ameristar Vicksburg’s 2006 fourth quarter business volumes and financial performance surpassed all quarterly results prior to Hurricane Katrina. This exceptional performance was achieved despite the reopening of several Gulf Coast casinos during 2006. The decline in our Vicksburg property’s 2006 fourth quarter performance from the prior-year fourth quarter resulted from the |
3
substantial increase in our business volumes during the 2005 fourth quarter when virtually all Mississippi Gulf Coast casinos were closed in the aftermath of the hurricane. | |||
• | Our record consolidated fourth quarter financial results reflect our success in maximizing profitability. We continued to see the positive impact from our efforts to utilize promotional allowances and labor more efficiently. Promotional allowances decreased at all our properties as a percentage of gaming revenues, and we expect this trend to continue in 2007. |
Building for Future Growth
Capital expenditures for the 2006 fourth quarter totaled $76.0 million. These expenditures were mostly funded with cash from operations and, to a lesser extent, with borrowings under our revolving loan facility. Capital expenditures during the fourth quarter included $31.7 million related to the expansion at Ameristar St. Charles described below, $11.4 million for capital improvement projects at Ameristar Black Hawk, $7.7 million for the acquisition of slot machines and $3.1 million related to our expansion at Ameristar Vicksburg.
Construction continues to progress at Ameristar St. Charles on our 400-room, all-suite hotel with an indoor/outdoor swimming pool and a 7,000 square-foot full-service spa, and an additional 2,000-space parking garage. The hotel is designed to surpass four-diamond quality standards and we believe it will be the premier hotel in greater St. Louis. The total cost of these projects and the recently completed conference facilities is expected to be $265.0 million, representing an increase of $25.0 million over the original budget. The revised cost estimate is mostly attributable to upgraded design and
4
finishes intended to enhance the guest experience, greater-than-anticipated site preparation costs and an increase in the cost of materials. The completion dates are projected to be the first quarter of 2007 for the initial 1,000 spaces of the parking garage and December 2007 for the hotel and the remainder of the project. We believe these new amenities will allow us to further enhance our competitive position in the St. Louis market.
The construction of the four-diamond-quality hotel is progressing at Ameristar Black Hawk. The 33-story tower’s 536 well-appointed, oversized rooms will feature upscale furnishings and amenities. The tower will include a versatile meeting and ballroom center and will also have Black Hawk’s only full-service spa, an enclosed rooftop swimming pool and indoor/outdoor whirlpool facilities. Once completed, Ameristar Black Hawk will offer destination resort amenities and services that we believe are unprecedented in the Denver gaming market. The hotel’s completion date has been delayed until the second quarter of 2009, primarily due to unforeseen site conditions and inclement weather. The cost of the hotel is expected to be $220.0 million, representing an increase of $40.0 million over the previous budget. The revised cost estimate is mostly attributable to an increase in materials costs, the unforeseen site conditions and upgraded finishes and amenities designed to enhance the guest experience.
We are continuing to progress with a casino and parking expansion project at Ameristar Vicksburg. Construction on the casino expansion, which will add 800 gaming positions, a VIP club, retail space and a parking garage to the property, is now expected to be completed
5
by mid-2008 due to complexities associated with dry-docking the vessel. We believe these improvements will help to alleviate long-standing capacity constraints, provide more convenient access and increase our long-time market dominance in Vicksburg. The cost of the casino expansion project is expected to be $95.0 million. In addition to the Vicksburg projects noted above, we will soon commence a $12 million renovation of the hotel.
The Black Hawk and Vicksburg projects may experience additional delays and/or cost increases due to unforeseeable site conditions and complexities associated with dry-docking the vessel, respectively.
In addition to internal capital expenditure projects, we continue to aggressively pursue external expansion opportunities to broaden our overall distribution and increase scale and diversification. In the near term, we are focusing on the potential acquisition of existing casino-entertainment properties that can be improved through the implementation of our development and operational expertise. We will also consider new development opportunities in existing and emerging domestic and select international markets. Longer term, we contemplate large development projects in major national markets.
Outlook
Based on our preliminary results of operations in January 2007 and our outlook for the remainder of the quarter, we currently estimate operating income of $44 million to $46 million, EBITDA of $68 million to $70 million (based upon anticipated depreciation expense of $24 million), interest expense of $12 million and diluted earnings per share of $0.34 to $0.36 for the first quarter of 2007.
For the year ending December 31, 2007, we currently estimate operating income of $176 million to $184 million, EBITDA of $272 million to $280 million (based upon anticipated depreciation expense of $96 million), interest expense of $45 million and diluted earnings per share of $1.41 to $1.49.
6
These estimates take into account anticipated construction disruption at Black Hawk, Vicksburg and St. Charles associated with the projects described above as we position them for future growth. Additionally, the estimates of operating income, EBITDA and diluted earnings per share include projected stock-based compensation expense (on an after-tax basis) of $1.7 million for the first quarter of 2007 and $6.9 million for the full year 2007, which we expect to adversely impact diluted earnings per share by $0.03 and $0.12 for the first quarter and full year 2007, respectively.
Conference Call
We will hold a conference call to discuss our fourth quarter results and guidance for the first quarter and full year 2007 at 5:00 p.m. Eastern Time on February 1, 2007. The call can be accessed live by dialing (800) 310-6649. It can be replayed until February 9, 2007 at 3:00 a.m. Eastern Time by dialing (888) 203-1112 and using the access code number 4306024. Interested parties wishing to listen to the live conference call and view informative slides on the Internet may do so on our web site –www.ameristar.com – in “About Ameristar/Investor Relations” under the “Quarterly Results Conference Calls” section.
Forward-Looking Information
This press release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as “believes,” “estimates,” “anticipates,” “intends,” “expects,” “plans,” “is confident that” or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It
7
is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2005 and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.
On a monthly basis, gaming regulatory authorities in Iowa, Mississippi and Missouri currently publish gross gaming revenue and certain other financial information for the gaming facilities that operate within their respective jurisdictions. Because various factors in addition to our gross gaming revenue (including operating costs, promotional allowances and corporate and other expenses) influence our operating income, EBITDA and diluted earnings per share, such reported information, as it relates to Ameristar, may not accurately reflect the results of our operations for such periods or for future periods.
About Ameristar
Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and entertainment company known for its premier properties characterized by innovative architecture, state-of-the-art casino floors and superior dining, lodging and entertainment offerings. Ameristar’s focus on the total entertainment experience and the highest quality guest service has earned it a leading market share position in each of the markets in which it
8
operates. Founded in 1954 in Jackpot, Nevada, Ameristar has been a public company since November 1993. The company has a portfolio of seven casinos in six markets: Ameristar St. Charles (greater St. Louis); Ameristar Kansas City; Ameristar Council Bluffs (Omaha, Nebraska and southwestern Iowa); Ameristar Vicksburg (Jackson, Mississippi and Monroe, Louisiana); Ameristar Black Hawk (Denver metropolitan area); and Cactus Petes and the Horseshu in Jackpot, Nevada (Idaho and the Pacific Northwest).
###
Visit Ameristar Casinos’ web site atwww.ameristar.com
(which shall not be deemed to be incorporated in or a part of this news release).
(which shall not be deemed to be incorporated in or a part of this news release).
9
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
Three Months | Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
REVENUES: | ||||||||||||||||
Casino | $ | 242,389 | $ | 248,832 | $ | 1,008,311 | $ | 974,178 | ||||||||
Food and beverage | 31,768 | 33,099 | 131,795 | 125,918 | ||||||||||||
Rooms | 6,608 | 6,593 | 27,972 | 25,355 | ||||||||||||
Other | 7,016 | 7,384 | 29,082 | 26,041 | ||||||||||||
287,781 | 295,908 | 1,197,160 | 1,151,492 | |||||||||||||
Less: Promotional allowances | 43,738 | 52,117 | 196,862 | 190,134 | ||||||||||||
Net revenues | 244,043 | 243,791 | 1,000,298 | 961,358 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Casino | 105,526 | 110,662 | 439,101 | 431,101 | ||||||||||||
Food and beverage | 17,346 | 17,634 | 68,744 | 66,299 | ||||||||||||
Rooms | 1,776 | 1,540 | 6,780 | 6,454 | ||||||||||||
Other | 3,981 | 4,312 | 18,749 | 16,503 | ||||||||||||
Selling, general and administrative | 48,781 | 47,379 | 200,588 | 186,050 | ||||||||||||
Depreciation and amortization | 24,031 | 22,355 | 93,889 | 85,366 | ||||||||||||
Impairment loss on assets held for sale | 581 | 186 | 931 | 869 | ||||||||||||
Total operating expenses | 202,022 | 204,068 | 828,782 | 792,642 | ||||||||||||
Income from operations | 42,021 | 39,723 | 171,516 | 168,716 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income | 631 | 298 | 2,746 | 830 | ||||||||||||
Interest expense, net | (12,151 | ) | (15,592 | ) | (50,291 | ) | (60,913 | ) | ||||||||
Loss on early retirement of debt | — | (1,890 | ) | (26,264 | ) | (2,074 | ) | |||||||||
Net gain (loss) on disposition of assets | 570 | (110 | ) | 683 | (1,655 | ) | ||||||||||
INCOME BEFORE INCOME TAX PROVISION | 31,071 | 22,429 | 98,390 | 104,904 | ||||||||||||
Income tax provision | 13,238 | 8,129 | 38,825 | 38,619 | ||||||||||||
NET INCOME | $ | 17,833 | $ | 14,300 | $ | 59,565 | $ | 66,285 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.26 | $ | 1.06 | $ | 1.19 | ||||||||
Diluted | $ | 0.31 | $ | 0.25 | $ | 1.04 | $ | 1.16 | ||||||||
CASH DIVIDENDS DECLARED PER SHARE | $ | 0.09 | $ | 0.08 | $ | 0.38 | $ | 0.31 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Basic | 56,227 | 55,906 | 56,155 | 55,664 | ||||||||||||
Diluted | 57,538 | 57,061 | 57,327 | 57,127 | ||||||||||||
10
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
Three Months | Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Consolidated cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 30,640 | $ | 44,710 | $ | 169,048 | $ | 197,459 | ||||||||
Net cash used in investing activities | (71,294 | ) | (50,530 | ) | (237,681 | ) | (175,849 | ) | ||||||||
Net cash provided by (used in) financing activities | 26,556 | 29,189 | 63,138 | (1,988 | ) | |||||||||||
Net revenues | ||||||||||||||||
Ameristar St. Charles | $ | 68,716 | $ | 70,500 | $ | 284,841 | $ | 286,028 | ||||||||
Ameristar Kansas City | 63,442 | 61,885 | 252,991 | 247,586 | ||||||||||||
Ameristar Council Bluffs | 44,476 | 45,787 | 181,840 | 186,367 | ||||||||||||
Ameristar Vicksburg | 32,053 | 37,929 | 135,236 | 126,089 | ||||||||||||
Jackpot Properties | 16,680 | 15,518 | 68,698 | 63,939 | ||||||||||||
Ameristar Black Hawk | 18,676 | 12,172 | 76,692 | 51,349 | ||||||||||||
Consolidated net revenues | $ | 244,043 | $ | 243,791 | $ | 1,000,298 | $ | 961,358 | ||||||||
Operating income (loss) (1) | ||||||||||||||||
Ameristar St. Charles | $ | 15,005 | $ | 14,070 | $ | 64,842 | $ | 63,268 | ||||||||
Ameristar Kansas City | 11,949 | 9,577 | 47,625 | 48,226 | ||||||||||||
Ameristar Council Bluffs | 13,364 | 13,406 | 50,950 | 56,452 | ||||||||||||
Ameristar Vicksburg | 10,809 | 13,887 | 43,630 | 38,812 | ||||||||||||
Jackpot Properties | 2,662 | 2,012 | 12,812 | 10,851 | ||||||||||||
Ameristar Black Hawk | 2,170 | (1,250 | ) | 7,555 | 304 | |||||||||||
Corporate and other | (13,938 | ) | (11,979 | ) | (55,898 | ) | (49,197 | ) | ||||||||
Consolidated operating income | $ | 42,021 | $ | 39,723 | $ | 171,516 | $ | 168,716 | ||||||||
EBITDA (1) (2) | ||||||||||||||||
Ameristar St. Charles | $ | 21,833 | $ | 20,680 | $ | 91,493 | $ | 89,510 | ||||||||
Ameristar Kansas City | 17,667 | 15,150 | 70,009 | 69,235 | ||||||||||||
Ameristar Council Bluffs | 16,743 | 16,588 | 64,201 | 68,638 | ||||||||||||
Ameristar Vicksburg | 13,832 | 16,896 | 55,788 | 50,696 | ||||||||||||
Jackpot Properties | 3,817 | 3,152 | 17,209 | 15,209 | ||||||||||||
Ameristar Black Hawk | 5,214 | 698 | 19,251 | 6,699 | ||||||||||||
Corporate and other | (13,054 | ) | (11,086 | ) | (52,546 | ) | (45,905 | ) | ||||||||
Consolidated EBITDA | $ | 66,052 | $ | 62,078 | $ | 265,405 | $ | 254,082 | ||||||||
11
AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA – CONTINUED
(Dollars in Thousands)
(Unaudited)
SUMMARY CONSOLIDATED FINANCIAL DATA – CONTINUED
(Dollars in Thousands)
(Unaudited)
Three Months | Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Operating income margins (1) (3) | ||||||||||||||||
Ameristar St. Charles | 21.8 | % | 20.0 | % | 22.8 | % | 22.1 | % | ||||||||
Ameristar Kansas City | 18.8 | % | 15.5 | % | 18.8 | % | 19.5 | % | ||||||||
Ameristar Council Bluffs | 30.0 | % | 29.3 | % | 28.0 | % | 30.3 | % | ||||||||
Ameristar Vicksburg | 33.7 | % | 36.6 | % | 32.3 | % | 30.8 | % | ||||||||
Jackpot Properties | 16.0 | % | 13.0 | % | 18.6 | % | 17.0 | % | ||||||||
Ameristar Black Hawk | 11.6 | % | (10.3 | %) | 9.9 | % | 0.6 | % | ||||||||
Consolidated operating income margin | 17.2 | % | 16.3 | % | 17.1 | % | 17.5 | % | ||||||||
EBITDA margins (1) (2) | ||||||||||||||||
Ameristar St. Charles | 31.8 | % | 29.3 | % | 32.1 | % | 31.3 | % | ||||||||
Ameristar Kansas City | 27.8 | % | 24.5 | % | 27.7 | % | 28.0 | % | ||||||||
Ameristar Council Bluffs | 37.6 | % | 36.2 | % | 35.3 | % | 36.8 | % | ||||||||
Ameristar Vicksburg | 43.2 | % | 44.5 | % | 41.3 | % | 40.2 | % | ||||||||
Jackpot Properties | 22.9 | % | 20.3 | % | 25.1 | % | 23.8 | % | ||||||||
Ameristar Black Hawk | 27.9 | % | 5.7 | % | 25.1 | % | 13.0 | % | ||||||||
Consolidated EBITDA margin | 27.1 | % | 25.5 | % | 26.5 | % | 26.4 | % |
(1) | On January 1, 2006, we adopted SFAS No. 123(R), which requires the recognition of compensation expense in an amount equal to the fair value of share-based payments (e.g., stock options) granted to employees. For the quarter and year ended December 31, 2006, the adoption of SFAS No. 123(R) resulted in a non-cash operating expense of $1.2 million and $7.8 million, respectively. | |
(2) | EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA is presented solely as a supplemental disclosure because management believes that it is a widely used measure of operating performance in the gaming industry and a principal basis for the valuation of gaming companies. Our credit agreement also requires the use of EBITDA as a measure of compliance with our principal debt covenants. In addition, management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of our operating properties’ performance, including the evaluation of operating personnel. EBITDA margin is EBITDA as a percentage of net revenues. EBITDA should not be construed as an alternative to income from operations (as determined in accordance with GAAP) as an indicator of our operating performance, as an alternative to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. It should also be noted that not all gaming companies that report EBITDA calculate EBITDA in the same manner as we do. | |
(3) | Operating income margin is operating income (loss) as a percentage of net revenues. |
12
RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
(Dollars in Thousands)
(Unaudited)
(Dollars in Thousands)
(Unaudited)
The following table sets forth a reconciliation of operating income (loss), a GAAP financial measure, to EBITDA, a non-GAAP financial measure.
Three Months | Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Ameristar St. Charles: | ||||||||||||||||
Operating income | $ | 15,005 | $ | 14,070 | $ | 64,842 | $ | 63,268 | ||||||||
Depreciation and amortization | 6,828 | 6,610 | 26,651 | 26,242 | ||||||||||||
EBITDA | $ | 21,833 | $ | 20,680 | $ | 91,493 | $ | 89,510 | ||||||||
Ameristar Kansas City: | ||||||||||||||||
Operating income | $ | 11,949 | $ | 9,577 | $ | 47,625 | $ | 48,226 | ||||||||
Depreciation and amortization | 5,718 | 5,573 | 22,384 | 21,009 | ||||||||||||
EBITDA | $ | 17,667 | $ | 15,150 | $ | 70,009 | $ | 69,235 | ||||||||
Ameristar Council Bluffs: | ||||||||||||||||
Operating income | $ | 13,364 | $ | 13,406 | $ | 50,950 | $ | 56,452 | ||||||||
Depreciation and amortization | 3,379 | 3,182 | 13,251 | 12,186 | ||||||||||||
EBITDA | $ | 16,743 | $ | 16,588 | $ | 64,201 | $ | 68,638 | ||||||||
Ameristar Vicksburg: | ||||||||||||||||
Operating income | $ | 10,809 | $ | 13,887 | $ | 43,630 | $ | 38,812 | ||||||||
Depreciation and amortization | 3,023 | 3,009 | 12,158 | 11,884 | ||||||||||||
EBITDA | $ | 13,832 | $ | 16,896 | $ | 55,788 | $ | 50,696 | ||||||||
Jackpot Properties: | ||||||||||||||||
Operating income | $ | 2,662 | $ | 2,012 | $ | 12,812 | $ | 10,851 | ||||||||
Depreciation and amortization | 1,155 | 1,140 | 4,397 | 4,358 | ||||||||||||
EBITDA | $ | 3,817 | $ | 3,152 | $ | 17,209 | $ | 15,209 | ||||||||
Ameristar Black Hawk: | ||||||||||||||||
Operating income (loss) | $ | 2,170 | $ | (1,250 | ) | $ | 7,555 | $ | 304 | |||||||
Depreciation and amortization | 3,044 | 1,948 | 11,696 | 6,395 | ||||||||||||
EBITDA | $ | 5,214 | $ | 698 | $ | 19,251 | $ | 6,699 | ||||||||
Corporate and other: | ||||||||||||||||
Operating loss | $ | (13,938 | ) | $ | (11,979 | ) | $ | (55,898 | ) | $ | (49,197 | ) | ||||
Depreciation and amortization | 884 | 893 | 3,352 | 3,292 | ||||||||||||
EBITDA | $ | (13,054 | ) | $ | (11,086 | ) | $ | (52,546 | ) | $ | (45,905 | ) | ||||
Consolidated: | ||||||||||||||||
Operating income | $ | 42,021 | $ | 39,723 | $ | 171,516 | $ | 168,716 | ||||||||
Depreciation and amortization | 24,031 | 22,355 | 93,889 | 85,366 | ||||||||||||
EBITDA | $ | 66,052 | $ | 62,078 | $ | 265,405 | $ | 254,082 | ||||||||
13
RECONCILIATION OF REPORTED NET INCOME AND DILUTED EARNINGS PER SHARE
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
The following table sets forth a reconciliation of reported net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures.
Year Ended | ||||||||
December 31, | ||||||||
2006 | 2005 | |||||||
Adjusted Net Income (1): | ||||||||
Net income | $ | 59,565 | $ | 66,285 | ||||
Loss on early retirement of debt, net of tax of $9,192 | 17,072 | — | ||||||
Adjusted net income | $ | 76,637 | $ | 66,285 | ||||
Adjusted Diluted Earnings Per Share (1): | ||||||||
Diluted earnings per share | $ | 1.04 | $ | 1.16 | ||||
Loss on early retirement of debt, net of tax of $9,192 | 0.30 | — | ||||||
Adjusted diluted earnings per share | $ | 1.34 | $ | 1.16 | ||||
(1) | Adjusted net income and adjusted diluted earnings per share exclude the loss on early retirement of our senior subordinated notes in February 2006. The adjusted amounts are presented solely as supplemental disclosures because management believes that they are widely used measures of operating performance in the gaming industry and we consider these to be better measures on which to base expectations of our future results than reported net income and diluted earnings per share. It should be noted that not all gaming companies that report adjusted net income and adjusted diluted earnings per share calculate these amounts in the same manner as we do. |
###
14