Ameristar Casinos Reports 4Q and Full-Year 2012 Results

Ameristar Casinos Reports 4Q and Full-Year 2012 Results 
LAS VEGAS, NV -- (Marketwire) -- 02/07/13 --  Ameristar Casinos, Inc.
(NASDAQ: ASCA) 


 
--  Net Revenues declined YOY by $7.3 million (2.5%) for 4Q and $19.3
    million (1.6%) for the year
    
    
--  Adjusted EBITDA decreased YOY by $3.9 million (4.6%) for 4Q and $3.6
    million (1.0%) for the year
    
    
--  Majority of properties improved both 4Q and Full-Year Adjusted EBITDA
    Margins YOY
    
    
--  Adjusted EPS increased YOY by $0.11 (52.4%) for 4Q and $0.36 (20.7%)
    for the year
    
    
--  Progress made toward completion of pending merger with Pinnacle
    Entertainment, Inc.

  
Ameristar Casinos, Inc. (NASDAQ: ASCA) today announced financial
results for the fourth quarter and year ended Dec. 31, 2012. 
Fourth Quarter 2012 Results 
Consolidated net revenues for the fourth quarter decreased year over
year by $7.3 million (2.5%), to $288.8 million. New competition in
Kansas City and a more challenging competitive environment in the
Chicagoland market adversely impacted the quarterly results. Net
revenues for Kansas City and East Chicago decreased $4.5 million
(8.1%) and $2.0 million (3.7%), respectively, representing 88.1% of
the consolidated net revenue decline from the fourth quarter of 2011.
The Jackpot properties had a year-over-year net revenue decline of
$0.8 million (5.8%), mostly as a result of lower than expected slot
hold. The year-over-year variances in net revenues at the other four
properties were relatively modest, with declines at Council Bluffs
and Vicksburg and increases at Black Hawk and St. Charles. 
For the fourth quarter of 2012, consolidated Adjusted EBITDA
decreased $3.9 million (4.6%) from the prior-year fourth quarter. The
combined effects of new competition in the Kansas City market, a
favorable property tax adjustment in Black Hawk in the prior-year
fourth quarter and a year-over-year increase in the gaming tax rate
in Colorado accounted for $3.1 million, or 80.8% of the
year-over-year consolidated Adjusted EBITDA decline. The balance of
the decline is substantially attributable to $0.7 million in expenses
related to our recently terminated efforts to pursue a gaming license
in western Massachusetts, as Adjusted EBITDA at each of our other
properties and other corporate expense were relatively stable year
over year. Fourth quarter 2012 Adjusted EBITDA excludes the impact of
an $8.6 million impairment of the land value in Springfield,
Massachusetts, $6.7 million in merger costs, $0.9 million in expensed
design costs and $0.2 million in non-capitalizable costs associated
with the development of our luxury casino resort in Lake Charles, La. 
Consolidated Adjusted EBITDA margin decreased from 28.4% in the
fourth quarter of 2011 to 27.8% in the current-year fourth quarter,
which is within what we consider to be the normal range of
fluctuation for our operating performance due to the uncontrollable
nature of various factors that can affect revenue and certain
expenses. We generated operating income of $32.5 million in the
fourth quarter of 2012, compared to $44.1 million in the same period
in 2011. 
For the quarter ended Dec. 31, 2012, we reported net income of $1.2
million, compared to net income of $7.4 million for the same period
in 2011. Diluted earnings per share were $0.04 for the fourth quarter
of 2012, compared to diluted earnings per share of $0.22 in the
prior-year fourth quarter. Our Adjusted EPS of $0.32 for the quarter
ended Dec. 31, 2012 represents an increase of $0.11 over Adjusted EPS
for the 2011 fourth quarter. The year-over-year improvement in
Adjusted EPS was mostly attributable to a lower effective income tax
rate and a reduction in non-cash stock-based compensation expense,
which was elevated in the 2011 fourth quarter from the accelerated
recognition of expense resulting from certain equity award
modifications. 
Our St. Charles property posted year-over-year growth in all three of
our key property financial metrics -- net revenues, Adjusted EBITDA
and Adjusted EBITDA margin. As anticipated, an Interstate 70 bridge
maintenance project resulted in the closure of four of the 10 lanes
near our property commencing in November 2012 for approximately one
year. Although disruption from this maintenance project did not
appear to significantly impact the property's performance during the
fourth quarter of 2012, the nearest competitor underwent an ownership
change at about the same time as the partial closure of the bridge,
and this competitor was closed intermittently during the transition
to facilitate system changes. The competing property is currently in
the process of rebranding and is undergoing some renovations to its
casino floor. As a result, the fourth quarter results may not reflect
the level of disruption our St. Charles property will experience from
the bridge maintenance project for the duration of the project. 
Full Year 2012 Results
 Consolidated net revenues for fiscal year
2012 were $1.20 billion, a $19.3 million (1.6%) decrease from $1.21
billion in 2011. Consolidated Adjusted EBITDA for 2012 declined $3.6
million (1.0%) from 2011, to $361.6 million. Slightly more than
one-third of this variance is attributable to $1.3 million in
expenses related to the now-terminated pursuit of a Massachusetts
gaming license. Excluding those expenses and the results of our
properties in Kansas City and East Chicago that were adversely
impacted by the competitive environment changes for most of 2012,
annual consolidated net revenues and consolidated Adjusted EBITDA
improved year over year by $6.4 million (0.8%) and $4.1 million
(1.7%), respectively. In 2012, Black Hawk, Council Bluffs and
Vicksburg improved from the prior year in all three of our key
property financial metrics. 
Our efficient operating model produced an increase in consolidated
Adjusted EBITDA margin from 30.1% in 2011 to 30.3% in 2012,
notwithstanding the Massachusetts development expenses. The majority
of our properties improved Adjusted EBITDA margin from 2011. 
For the full year, consolidated net income increased from $6.8
million in 2011 to $76.3 million in 2012. The pre-tax impairment
charge of $8.6 million relating to the Massachusetts land negatively
affected 2012 net income by $5.1 million on an after-tax basis. A
pre-tax loss on early retirement of debt of $85.3 million ($55.1
million on an after-tax basis) adversely impacted 2011. 
Adjusted EPS was $2.10 for the year ended Dec. 31, 2012, compared to
$1.74 for 2011. Adjusted EPS for 2012 was favorably impacted by the
reduction from 2011 of approximately 7.4 million weighted-average
diluted shares outstanding, a lower effective income tax rate and a
decrease in stock-based compensation expense. 
Ameristar Casino Resort Spa Lake Charles 
 Construction of Ameristar
Casino Resort Spa Lake Charles began on July 20, 2012 and is expected
to open in the third quarter of 2014. The resort is being developed
on a leased 243-acre site and will include a casino with
approximately 1,600 slot machines and 60 table games, a hotel with
700 guest rooms (including 70 suites), a variety of food and beverage
outlets, an 18-hole golf course, a tennis club, swimming pools, a spa
and other resort amenities, and approximately 3,000 parking spaces,
1,000 of which will be in a garage. 
The cost of the project (including the purchase price) is expected to
be between $560 million and $580 million, excluding capitalized
interest and pre-opening expenses. Through Dec. 31, 2012, total
invested capital
 in the Lake Charles project was $107.4 million,
including purchase price, capital expenditures and escrow deposits.
To date, we have not made any borrowings under our revolving credit
facility related to the Lake Charles project. 
Additional Financial Information
 Cash and Cash Equivalents. At Dec.
31, 2012, total cash was $89.4 million, representing an increase of
$3.7 million from total cash as of Dec. 31, 2011. 
Debt. At Dec. 31, 2012, the face amount of our outstanding debt was
$1.92 billion, a decrease of $15.4 million from Dec. 31, 2011. Net
repayments in the fourth quarter of 2012 totaled $3.0 million. As of
Dec. 31, 2012, we had $496.0 million available for borrowing under
the revolving credit facility. At Dec. 31, 2012, our Total Net
Leverage Ratio (as defined in the senior credit facility) was
required to be no more than 6.50:1. As of that date, our Total Net
Leverage Ratio was 5.08:1. 
Capital Expenditures. For the quarters ended Dec. 31, 2012 and 2011,
capital expenditures totaled $50.0 million and $36.5 million,
respectively. Fourth quarter 2012 capital expenditures included $31.6
million associated with the Lake Charles construction project. The
fourth quarter 2011 capital expenditures included a $9.3 million
litigation settlement payment to the general contractor for our St.
Charles hotel construction project completed in 2008. For the years
ended Dec. 31, 2012 and 2011, capital expenditures were $133.1
million and $82.6 million, respectively. 
Dividends. During the fourth quarter of 2012, our Board of Directors
declared a cash dividend of $0.125 per share, which we paid on Dec.
14, 2012. On Feb. 6, 2013, the Board declared a cash dividend of
$0.125 per share, payable on March 15, 2013 to stockholders of record
on Feb. 28, 2013. 
Outlook 
In the first quarter of 2013, we currently expect: 


 
--  depreciation to range from $24.5 million to $25.5 million.
--  interest expense, net of capitalized interest, to be between $28.5
    million and $29.5 million, including non-cash interest expense of
    approximately $1.3 million.
--  the combined state and federal income tax rate to be in the range of
    40% to 42%.
--  capital spending of $49.0 million to $54.0 million, including
    approximately $15.0 million for maintenance capital expenditures and
    $36.0 million related to Lake Charles design and construction costs.
--  non-cash stock-based compensation expense of $3.6 million to $4.1
    million.
--  corporate expense, including merger costs and excluding corporate's
    portion of non-cash stock-based compensation expense, to be between
    $13.5 million and $14.0 million.

  
Pending Merger
 As previously announced, on Dec. 20, 2012, Ameristar
Casinos, Inc. entered into an agreement and plan of merger with
Pinnacle Entertainment, Inc., pursuant to which Pinnacle will acquire
all of the outstanding common shares of Ameristar for $26.50 per
share in cash. The merger is subject to customary closing conditions,
required regulatory approvals and approval by Ameristar's
stockholders. The transaction is expected to close in the second or
third quarter of 2013. 
Ameristar and Pinnacle filed the required Hart-Scott-Rodino premerger
notification and report forms on Jan. 11, 2013. Pinnacle has filed
applications for regulatory approvals as required under applicable
gaming laws. On Feb. 1, 2013, Ameristar filed a preliminary proxy
statement with the Securities and Exchange Commission (SEC) relating
to a special meeting of Ameristar's stockholders to consider and
approve the merger agreement. No assurance can be given that the
merger will be completed.  
Additional Information about the Pending Merger and Where to Find It 
This press release may be deemed to be solicitation material in
respect of the pending merger of Pinnacle and Ameristar. In
connection with the proposed merger, Ameristar has filed a
preliminary proxy statement with the SEC and will later file a
definitive proxy statement and mail it to its stockholders. INVESTORS
AND AMERISTAR'S STOCKHOLDERS ARE URGED TO READ CAREFULLY THE
PRELIMINARY AND DEFINITIVE PROXY STATEMENTS AND OTHER PROXY MATERIALS
THAT AMERISTAR FILES WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT AMERISTAR, THE MERGER
AND RELATED MATTERS. The preliminary and definitive proxy statements
and other relevant materials, and any other documents filed by
Ameristar with the SEC, may be obtained free of charge at the SEC's
website at www.sec.gov. In addition, stockholders can obtain free
copies of the proxy statement from Ameristar by contacting
Ameristar's Investor Relations Department by telephone at (702)
567-7000, or by mail at Ameristar Casinos, Inc., 3773 Howard Hughes
Parkway, Suite 490 South, Las Vegas, Nevada 89169, Attention:
Investor Relations Department, or at Ameristar's website at
www.ameristar.com. 
Participants in the Solicitation 
 Ameristar and its directors and
executive officers and other persons may be deemed to be participants
in the solicitation of proxies from the stockholders of Ameristar in
connection with the pending merger. Information about Ameristar's
directors and executive officers is included in our Annual Report on
Form 10-K for the year ended Dec. 31, 2011 and the proxy statement
for our 2012 Annual Meeting of Stockholders, filed with the SEC on
April 30, 2012. Additional information regarding the interests of
Ameristar's directors and executive officers in the merger is
included in the preliminary proxy statement for the special meeting
of Ameristar's stockholders and will be included in the definitive
proxy statement described above. 
Forward-Looking Information
 This 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," "should," "could," "would," "will" 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 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 Dec. 31, 2011, "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 Sept. 30, 2012, and "Item 1A. Risk Factors" in our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. 
On a monthly basis, gaming regulatory authorities in certain states
in which we operate publish gross gaming revenue and/or 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, Adjusted 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 is an innovative casino gaming
company featuring the newest and most popular slot machines. Our
7,200 dedicated team members pride themselves on delivering
consistently friendly and appreciative service to our guests. We
continuously strive to increase the loyalty of our guests through the
quality of our slot machines, table games, hotel, dining and other
leisure offerings. Our eight casino hotel properties primarily serve
guests from Colorado, Idaho, Illinois, Indiana, Iowa, Kansas,
Louisiana, Mississippi, Missouri, Nebraska and Nevada. We began
construction on our ninth property, a casino resort in Lake Charles,
La., in July 2012, which we expect will open in the third quarter
 of
2014. We have been a public company since 1993, and our stock is
traded on the Nasdaq Global Select Market. We generate more than $1
billion in net revenues annually. 
Visit Ameristar Casinos' website at www.ameristar.com (which shall
not be deemed to be incorporated in or a part of this news release). 
Please refer to the tables at the end of this release for the
reconciliation of the non-GAAP financial measures Adjusted EBITDA and
Adjusted EPS reported throughout this release. Additionally, more
information on these non-GAAP financial measures can be found under
the caption "Use of Non-GAAP Financial Measures" at the end of this
release. 


 
                                                                            
                                                                            
                  AMERISTAR CASINOS, INC. AND SUBSIDIARIES                  
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
               (Amounts in Thousands, Except Per Share Data)                
                                (Unaudited)                                 
                                                                            
                               Three Months Ended          Year Ended       
                                  December 31,            December 31,      
                                2012        2011        2012        2011    
                             ----------  ----------  ----------  ---------- 
REVENUES:                                                                   
  Casino                     $  298,498  $  305,040  $1,228,958  $1,248,616 
  Food and beverage              36,037      34,067     139,565     138,192 
  Rooms                          19,152      18,842      77,698      77,870 
  Other                           6,653       6,954      27,957      28,905 
                             ----------  ----------  ----------  ---------- 
                                360,340     364,903   1,474,178   1,493,583 
Less: promotional allowances    (71,513)    (68,741)   (278,957)   (279,077)
                             ----------  ----------  ----------  ---------- 
    Net revenues                288,827     296,162   1,195,221   1,214,506 
                                                                            
OPERATING EXPENSES:                                                         
  Casino                        134,385     135,113     537,862     548,635 
  Food and beverage              13,599      14,484      53,634      54,414 
  Rooms                           2,031       2,340       8,121       8,266 
  Other                           2,452       2,701       9,761      10,669 
  Selling, general and                                                      
   administrative                68,337      69,808     251,395     259,151 
  Depreciation and                                                          
   amortization                  25,761      27,264     106,317     105,922 
  Impairment of fixed assets      9,563         245       9,563         245 
  Net loss (gain) on                                                        
   disposition of assets            208          79         408         (45)
                             ----------  ----------  ----------  ---------- 
    Total operating expenses    256,336     252,034     977,061     987,257 
                                                                            
      Income from operations     32,491      44,128     218,160     227,249 
                                                                            
OTHER INCOME (EXPENSE):                                                     
  Interest income                     5          12          44          15 
  Interest expense, net of                                                  
   capitalized interest         (29,383)    (27,090)   (114,740)   (106,623)
  Loss on early retirement                                                  
   of debt                            -           -           -     (85,311)
  Other                               -         508         835        (784)
                             ----------  ----------  ----------  ---------- 
                                                                            
INCOME BEFORE INCOME TAX                                                    
 PROVISION                        3,113      17,558     104,299      34,546 
    Income tax provision          1,898      10,179      27,964      27,752 
                             ----------  ----------  ----------  ---------- 
      NET INCOME             $    1,215  $    7,379  $   76,335  $    6,794 
                             ==========  ==========  ==========  ========== 
                                                                            
EARNINGS PER SHARE:                                                         
  Basic                      $     0.04  $     0.23  $     2.32  $     0.17 
                             ==========  ==========  ==========  ========== 
  Diluted                    $     0.04  $     0.22  $     2.26  $     0.17 
                             ==========  ==========  ==========  ========== 
                                                                            
CASH DIVIDENDS DECLARED PER                                                 
 SHARE                       $    0.125  $    0.105  $     0.50  $     0.42 
                             ==========  ==========  ==========  ========== 
                                                                            
WEIGHTED-AVERAGE SHARES                                                     
 OUTSTANDING:                                                               
  Basic                          32,837      32,681      32,906      40,242 
                             ==========  ==========  ==========  ========== 
  Diluted                        34,225      34,014      33,743      41,136 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
                                                                            
                                                                            
                  AMERISTAR CASINOS, INC. AND SUBSIDIARIES                  
                    SUMMARY CONSOLIDATED FINANCIAL DATA                     
                           (Dollars in Thousands)                           
                                (Unaudited)                                 
                                                                            
                                December 31, 2012       December 31, 2011   
                             ----------------------  ---------------------- 
Balance sheet data                                                          
  Cash and cash equivalents  $               89,392  $               85,719 
  Total assets               $            2,074,274  $            2,012,039 
  Total debt, including net                                                 
   discount of $926 and                                                     
   $8,258                    $            1,917,979  $            1,926,064 
  Stockholders' deficit      $              (22,259) $              (90,578)
                                                                            
                                                                            
                               Three Months Ended          Year Ended       
                                  December 31,            December 31,      
                                2012        2011        2012        2011    
                             ----------  ----------  ----------  ---------- 
Consolidated cash flow                                                      
 information                                                                
  Net cash provided by                                                      
   operating activities      $   20,901  $   44,070  $  223,970  $  253,349 
  Net cash used in investing                                                
   activities                $  (41,359) $  (33,608) $ (180,824) $  (52,283)
  Net cash used in financing                                                
   activities                $   (6,461) $  (16,658) $  (39,473) $ (186,533)
                                                                            
Net revenues                                                                
  Ameristar St. Charles      $   66,424  $   66,129  $  268,928  $  269,759 
  Ameristar Kansas City          51,435      55,939     211,791     226,054 
  Ameristar Council Bluffs       40,262      40,675     166,003     164,523 
  Ameristar Black Hawk           38,649      38,143     160,212     153,203 
  Ameristar Vicksburg            27,701 
     28,133     119,766     118,094 
  Ameristar East Chicago         50,817      52,773     210,482     221,893 
  Jackpot Properties             13,539      14,370      58,039      60,980 
                             ----------  ----------  ----------  ---------- 
    Consolidated net                                                        
     revenues                $  288,827  $  296,162  $1,195,221  $1,214,506 
                             ==========  ==========  ==========  ========== 
                                                                            
Operating income (loss)                                                     
  Ameristar St. Charles      $   15,159  $   14,347  $   68,163  $   68,908 
  Ameristar Kansas City          13,698      15,268      61,400      66,088 
  Ameristar Council Bluffs       13,474      13,977      60,635      57,962 
  Ameristar Black Hawk            8,607       9,877      40,733      37,562 
  Ameristar Vicksburg             7,828       7,923      39,719      38,365 
  Ameristar East Chicago          5,002       3,920      21,100      22,445 
  Jackpot Properties              2,418       2,419      11,567      13,642 
  Corporate and other           (33,695)    (23,603)    (85,157)    (77,723)
                             ----------  ----------  ----------  ---------- 
    Consolidated operating                                                  
     income                  $   32,491  $   44,128  $  218,160  $  227,249 
                             ==========  ==========  ==========  ========== 
                                                                            
Adjusted EBITDA                                                             
  Ameristar St. Charles      $   22,531  $   22,333  $   96,231  $   96,885 
  Ameristar Kansas City          17,433      19,195      76,159      81,448 
  Ameristar Council Bluffs       15,598      15,671      68,816      66,182 
  Ameristar Black Hawk           13,160      14,518      58,770      56,009 
  Ameristar Vicksburg            11,783      11,773      54,768      53,361 
  Ameristar East Chicago          8,531       8,477      38,853      39,921 
  Jackpot Properties              3,894       4,119      17,279      19,507 
  Corporate and other           (12,540)    (11,834)    (49,291)    (48,177)
                             ----------  ----------  ----------  ---------- 
    Consolidated Adjusted                                                   
     EBITDA                  $   80,390  $   84,252  $  361,585  $  365,136 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
                                                                            
                                                                            
                  AMERISTAR CASINOS, INC. AND SUBSIDIARIES                  
              SUMMARY CONSOLIDATED FINANCIAL DATA - CONTINUED               
                           (Dollars in Thousands)                           
                                (Unaudited)                                 
                                                                            
                                     Three Months Ended      Year Ended     
                                        December 31,        December 31,    
                                       2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
                                                                            
Operating income margins (1)                                                
  Ameristar St. Charles                  22.8%     21.7%     25.3%     25.5%
  Ameristar Kansas City                  26.6%     27.3%     29.0%     29.2%
  Ameristar Council Bluffs               33.5%     34.4%     36.5%     35.2%
  Ameristar Black Hawk                   22.3%     25.9%     25.4%     24.5%
  Ameristar Vicksburg                    28.3%     28.2%     33.2%     32.5%
  Ameristar East Chicago                  9.8%      7.4%     10.0%     10.1%
  Jackpot Properties                     17.9%     16.8%     19.9%     22.4%
    Consolidated operating income                                           
     margin                              11.2%     14.9%     18.3%     18.7%
                                                                            
Adjusted EBITDA margins (2)                                                 
  Ameristar St. Charles                  33.9%     33.8%     35.8%     35.9%
  Ameristar Kansas City                  33.9%     34.3%     36.0%     36.0%
  Ameristar Council Bluffs               38.7%     38.5%     41.5%     40.2%
  Ameristar Black Hawk                   34.1%     38.1%     36.7%     36.6%
  Ameristar Vicksburg                    42.5%     41.8%     45.7%     45.2%
  Ameristar East Chicago                 16.8%     16.1%     18.5%     18.0%
  Jackpot Properties                     28.8%     28.7%     29.8%     32.0%
    Consolidated Adjusted EBITDA                                            
     margin                              27.8%     28.4%     30.3%     30.1%

 
(1) Operating income margin is operating income (loss) as a percentage
of net revenues. 
 (2) Adjusted EBITDA margin is Adjusted EBITDA as a
percentage of net revenues.   


 
                                                                            
        RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA        
                     (Dollars in Thousands) (Unaudited)                     
                                                                            
The following tables set forth reconciliations of operating income (loss), a
GAAP financial measure, to Adjusted EBITDA, a non-GAAP financial measure.   
                                                                            
                                                                            
                                                                            
                                 Three Months Ended December 31, 2012       
                         ---------------------------------------------------
                                                                            
                                                   Impairment               
                                                    Loss and                
                                                  Loss (Gain)               
                          Operating  Depreciation      on                   
                           Income         and     Disposition   Stock-Based 
                           (Loss)    Amortization  of Assets    Compensation
                         ----------  ------------ -----------  -------------
Ameristar St. Charles     $  15,159  $      7,096 $         -  $         276
Ameristar Kansas City        13,698         3,396           9            330
Ameristar Council Bluffs     13,474         1,904          12            208
Ameristar Black Hawk          8,607         4,370           -            183
Ameristar Vicksburg           7,828         3,726           -            229
Ameristar East Chicago        5,002         3,278          (7)           258
Jackpot Properties            2,418         1,283           -            193
Corporate and other         (33,695)          708       9,757          3,828
                         ----------  ------------ -----------  -------------
  Consolidated            $  32,491  $     25,761 $     9,771  $       5,505
                         ==========  ============ ===========  =============
                                                                            
         
                                                                   
 
                                                              
                                                              
                         Three Months Ended December 31, 2012 
                         ------------------------------------ 
                                                              
                                            Non-              
                              Non-     Capitalizable          
                           Operational  Lake Charles          
                          Professional  Development  Adjusted 
                              Fees         Costs      EBITDA  
                          ------------ ------------- -------- 
Ameristar St. Charles     $          - $           - $ 22,531 
Ameristar Kansas City                -             -   17,433 
Ameristar Council Bluffs             -             -   15,598 
Ameristar Black Hawk                 -             -   13,160 
Ameristar Vicksburg                  -             -   11,783 
Ameristar East Chicago               -             -    8,531 
Jackpot Properties                   -             -    3,894 
Corporate and other              6,669           193  (12,540)
                          ------------ ------------- -------- 
  Consolidated            $      6,669 $         193 $ 80,390 
                          ============ ============= ======== 
                                                              
                                                              
                                                                            
                                Three Months Ended December 31, 2011        
                       -----------------------------------------------------
                                                                            
                                                   Impairment               
                                                    Loss and                
                                                   (Gain) Loss              
                         Operating   Depreciation      on                   
                          Income          and      Disposition   Stock-Based
                          (Loss)     Amortization   of Assets   Compensation
                       ------------  ------------ ------------  ------------
Ameristar St. Charles  $     14,347  $      7,468 $        (10) $        528
Ameristar Kansas City        15,268         3,700            -           227
Ameristar Council                                                           
 Bluffs                      13,977         1,885            -           303
Ameristar Black Hawk          9,877         4,401            -           240
Ameristar Vicksburg           7,923         3,546            -           303
Ameristar East Chicago        3,920         4,337           89           131
Jackpot Properties            2,419         1,283            -           417
Corporate and other         (23,603)          644          245        10,186
                       ------------  ------------ ------------  ------------
  Consolidated         $     44,128  $     27,264 $        324  $     12,335
                       ============  ============ ============  ============
                                                                            
 
                                                                     
                           Three Months Ended December 31, 2011      
                      ---------------------------------------------- 
                                                                     
                          Deferred       Net River                   
                        Compensation     Flooding                    
                        Plan Expense (Reimbursements)     Adjusted   
                            (1)        Expenses (2)        EBITDA    
                       ------------- ----------------  ------------- 
Ameristar St. Charles  $           - $              -  $      22,333 
Ameristar Kansas City              -                -         19,195 
Ameristar Council                                                    
 Bluffs                            -             (494)        15,671 
Ameristar Black Hawk               -                -         14,518 
Ameristar Vicksburg                -                1         11,773 
Ameristar East Chicago             -                -          8,477 
Jackpot Properties                 -                -          4,119 
Corporate and other              694                -        (11,834)
                       ------------- ----------------  ------------- 
  Consolidated         $         694 $           (493) $      84,252 
                       ============= ================  ============= 

 
(1)  Deferred compensation plan expense represents the change in the
Company's non-cash liability based on plan participant investment
results.  This expense is included in selling, general and
administrative expenses in the condensed consolidated statements of
operations.       
(2) River flooding expenses are net of
insurance reimbursements and represent non-capitalizable costs
incurred to reduce exposure to significant property damage from
extraordinary flood levels, as well as required flood cleanup costs.  


 
                                                                            
                                                                            
  RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA - CONTINUED  
                     (Dollars in Thousands) (Unaudited)                     
                                                                             
                                Year Ended December 31, 2012                
               -------------------------------------------------------------
                                                                            
                                        Impairment                          
                                         Loss and                           
                                       (Gain) Loss                Deferred  
               Operating  Depreciation      on                  Compensation
                 Income        and     Disposition  Stock-Based Plan Expense
                 (Loss)   Amortization  of Assets  Compensation      (1)    
               ---------  ------------ ----------- ------------ ------------
Ameristar St.                                                               
 Charles       $  68,163  $     27,488 $      (150)$        730 $          -
Ameristar                                                                   
 Kansas City      61,400        14,248        (100)         611            -
Ameristar                                                                   
 Council                                                                    
 Bluffs           60,635         7,844         (88)         558            -
Ameristar                                                                   
 Black Hawk       40,733        17,618         (72)         491            -
Ameristar                                                                   
 Vicksburg        39,719        14,428          (1)         622            -
Ameristar East                                                              
 Chicago          21,100        16,559         603          591            -
Jackpot                                                                     
 Properties       11,567         5,149          22          541            -
Corporate and                                                               
 other           (85,157)        2,983       9,757       14,109        1,227
               ---------  ------------ ----------- ------------ ------------
  Consolidated $ 218,160  $ 
   106,317 $     9,971 $     18,253 $      1,227
               =========  ============ =========== ============ ============
                                                                            
                                                                            
 
                                                                 
                         Year Ended December 31, 2012            
              -------------------------------------------------- 
                                                                 
                                 Non-                            
                   Non-     Capitalizable                        
                Operational  Lake Charles   Net River            
               Professional  Development    Flooding    Adjusted 
                   Fees         Costs     Expenses (2)   EBITDA  
               ------------ ------------- ------------  -------- 
Ameristar St.                                                    
 Charles       $          - $           - $          -  $ 96,231 
Ameristar                                                        
 Kansas City              -             -            -    76,159 
Ameristar                                                        
 Council                                                         
 Bluffs                   -             -         (133)   68,816 
Ameristar                                                        
 Black Hawk               -             -            -    58,770 
Ameristar                                                        
 Vicksburg                -             -            -    54,768 
Ameristar East                                                   
 Chicago                  -             -            -    38,853 
Jackpot                                                          
 Properties               -             -            -    17,279 
Corporate and                                                    
 other                6,669         1,121            -   (49,291)
               ------------ ------------- ------------  -------- 
  Consolidated $      6,669 $       1,121 $       (133) $361,585 
               ============ ============= ============  ======== 
                                                                 
                                                                 

 
                                                                            
                                                                            
                                      Year Ended December 31, 2011          
                           -------------------------------------------------
                                                                            
                                                    Impairment              
                                                     Loss and               
                                                   (Gain) Loss              
                           Operating  Depreciation      on                  
                             Income        and     Disposition   Stock-Based
                             (Loss)   Amortization  of Assets   Compensation
                           ---------  ------------ -----------  ------------
Ameristar St. Charles      $  68,908  $     26,922 $        (6) $      1,052
Ameristar Kansas City         66,088        14,855         (80)          585
Ameristar Council Bluffs      57,962         7,542        (105)          670
Ameristar Black Hawk          37,562        17,834         (21)          634
Ameristar Vicksburg           38,365        13,997          (1)          750
Ameristar East Chicago        22,445        16,854         156           466
Jackpot Properties            13,642         5,068          13           784
Corporate and other          (77,723)        2,850         244        19,404
                           ---------  ------------ -----------  ------------
  Consolidated             $ 227,249  $    105,922 $       200  $     24,345
                           =========  ============ ===========  ============
                                                                            
 
                                                                           
                                                                           
                                    Year Ended December 31, 2011           
                          ------------------------------------------------ 
                                                                           
                             Deferred       Non-                           
                           Compensation  Operational   Net River           
                           Plan Expense Professional   Flooding   Adjusted 
                                (1)         Fees     Expenses (2)  EBITDA  
                           ------------ ------------ ------------ -------- 
Ameristar St. Charles      $          - $          - $          9 $ 96,885 
Ameristar Kansas City                 -            -            -   81,448 
Ameristar Council Bluffs              -            -          113   66,182 
Ameristar Black Hawk                  -            -            -   56,009 
Ameristar Vicksburg                   -            -          250   53,361 
Ameristar East Chicago                -            -            -   39,921 
Jackpot Properties                    -            -            -   19,507 
Corporate and other                  75        6,973            -  (48,177)
                           ------------ ------------ ------------ -------- 
  Consolidated             $         75 $      6,973 $        372 $365,136 
                           ============ ============ ============ ======== 

 
(1) Deferred compensation plan expense represents the change in the
Company's non-cash liability based on plan participant investment
results. This expense is included in selling, general and
administrative expenses in the condensed consolidated statements of
operations. 
(2) River flooding expenses are net of insurance
reimbursements and represent non-capitalizable costs incurred to
reduce exposure to significant property damage from extraordinary
flood levels, as well as required flood cleanup costs.  


 
                                                                            
                                                                            
              RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA               
                     (Dollars in Thousands) (Unaudited)                     
                                                                            
                                                                            
The following table sets forth a reconciliation of consolidated net income, 
 a GAAP financial measure, to consolidated Adjusted EBITDA, a non-GAAP      
 financial measure.                                                         
                                                                            
                                                                            
                                 Three Months Ended        Year Ended       
                                     December 31,          December 31,     
                                   2012       2011       2012       2011    
                                ---------- ---------- ---------- ---------- 
Net income                      $    1,215 $    7,379 $   76,335 $    6,794 
  Income tax provision               1,898     10,179     27,964     27,752 
  Interest expense, net of                                                  
   capitalized interest             29,383     27,090    114,740    106,623 
  Interest income                       (5)       (12)       (44)       (15)
  Other                                  -       (508)      (835)       784 
  Net 
loss (gain) on disposition                                            
   of assets                           208         79        408        (45)
  Impairment of fixed assets         9,563        245      9,563        245 
  Depreciation and amortization     25,761     27,264    106,317    105,922 
  Stock-based compensation           5,505     12,335     18,253     24,345 
  Non-operational professional                                              
   fees                              6,669          -      6,669      6,973 
  Non-capitalizable Lake Charles                                            
   development costs                   193          -      1,121          - 
  Deferred compensation plan                                                
   expense                               -        694      1,227         75 
  Loss on early retirement of                                               
   debt                                  -          -          -     85,311 
  Net river flooding                                                        
   (reimbursements) expenses             -       (493)      (133)       372 
                                ---------- ---------- ---------- ---------- 
Adjusted EBITDA                 $   80,390 $   84,252 $  361,585 $  365,136 
                                ========== ========== ========== ========== 
                                                                            
                                                                            
                                                                            
            RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS           
                      (Shares in Thousands) (Unaudited)                     
                                                                            
                                                                            
The following table sets forth a reconciliation of diluted earnings per     
 share (EPS), a GAAP financial measure, to adjusted diluted earnings per    
 share (Adjusted EPS), a non-GAAP financial measure.                        
                                                                            
                                Three Months Ended          Year Ended      
                                    December 31,           December 31,     
                                  2012       2011        2012        2011   
                               ---------- ----------  ----------  ----------
Diluted earnings per share                                                  
 (EPS)                         $     0.04 $     0.22  $     2.26  $     0.17
  Non-operational professional                                              
   fees                              0.11          -        0.12        0.14
  Impairment of fixed assets         0.17          -        0.17           -
  Cumulative effect from tax                                                
   elections                            -          -       (0.47)          -
  Non-capitalizable Lake                                                    
   Charles development costs            -          -        0.02           -
  Loss on early retirement of                                               
   debt                                 -          -           -        1.34
  Non-cash tax provision                                                    
   impact from change in                                                    
   Indiana state tax rate               -          -           -        0.08
  Net river flooding                                                        
   (reimbursements) expenses            -      (0.01)          -        0.01
                               ---------- ----------  ----------  ----------
Adjusted diluted earnings per                                               
 share (Adjusted EPS)          $     0.32 $     0.21  $     2.10  $     1.74
                               ========== ==========  ==========  ==========
                                                                            
Weighted-average diluted                                                    
 shares outstanding used in                                                 
 calculating Adjusted EPS          34,225     34,014      33,743      41,136
                               ========== ==========  ==========  ==========

 
Use of Non-GAAP Financial Measures 
Securities and Exchange Commission Regulation G, "Conditions for Use
of Non-GAAP Financial Measures," prescribes the conditions for use of
non-GAAP financial information in public disclosures. We believe our
presentation of the non-GAAP financial measures Adjusted EBITDA and
Adjusted EPS are important supplemental measures of operating
performance to investors. The following discussion defines these
terms and explains why we believe they are useful measures of our
performance. 
Adjusted EBITDA is a commonly used measure of performance in the
gaming industry that we believe, when considered with measures
calculated in accordance with United States generally accepted
accounting principles, or GAAP, gives investors a more complete
understanding of operating results before the impact of investing and
financing transactions, income taxes and certain non-cash and
non-recurring items and facilitates comparisons between us and our
competitors. 
Adjusted EBITDA is a significant factor in management's internal
evaluation of total Company and individual property performance and
in the evaluation of incentive compensation for employees. Therefore,
we believe Adjusted EBITDA is useful to investors because it allows
greater transparency related to a significant measure used by
management in its financial and operational decision-making and
because it permits investors similarly to perform more meaningful
analyses of past, present and future operating results and
evaluations of the results of core ongoing operations. Furthermore,
we believe investors would, in the absence of the Company's
disclosure of Adjusted EBITDA, attempt to use equivalent or similar
measures in assessment of our operating performance and the valuation
of our Company. We have reported Adjusted EBITDA to our investors in
the past and believe its inclusion at this time will provide
consistency in our financial reporting. 
Adjusted EBITDA, as used in this press release, is earnings before
interest, taxes, depreciation, amortization, other non-operating
income and expenses, stock-based compensation, deferred compensation
plan expense, non-operational professional fees, non-capitalizable
development costs, impairment loss, loss on early retirement of debt
and river flooding expenses and reimbursements. In future periods,
the calculation of Adjusted EBITDA may be different than in this
release. The foregoing tables reconcile Adjusted EBITDA to operating
income (loss) and net income, based upon GAAP. 
Adjusted EPS, as used in this press release, is diluted earnings per
share, excluding the after-tax per-share impact of loss on early
retirement of debt, the cumulative effect from tax elections,
non-operational professional fees, non-capitalizable development
costs, impairment loss, non-cash tax provision impact from state tax
rate change and river flooding expenses and reimbursements.
Management adjusts EPS, when deemed appropriate, for the evaluation
of operating performance because we believe that the exclusion of
certain items is necessary to provide the most accurate measure of
our core operating results and as a means to compare period-to-period
results. We have chosen to provide this information to investors to
enable them to perform more meaningful analysis of past, present and
future operating results and as a means to evaluate the results of
our core ongoing operations. Adjusted EPS is a significa
nt factor in
the internal evaluation of total Company performance. Management
believes this measure is used by investors in their assessment of our
operating performance and the valuation of our Company. In future
periods, the adjustments we make to EPS in order to calculate
Adjusted EPS may be different than or in addition to those made in
this release. The foregoing table reconciles EPS to Adjusted EPS. 
Limitations on the Use of Non-GAAP Measures
 The use of Adjusted
EBITDA and Adjusted EPS has certain limitations. Our presentation of
Adjusted EBITDA and Adjusted EPS may be different from the
presentations used by other companies and therefore comparability
among companies may be limited. Depreciation expense for various
long-term assets, interest expense, income taxes and other items have
been and will be incurred and are not reflected in the presentation
of Adjusted EBITDA. Each of these items should also be considered in
the overall evaluation of our results. Additionally, Adjusted EBITDA
does not consider capital expenditures and other investing activities
and should not be considered as a measure of our liquidity. We
compensate for these limitations by providing the relevant disclosure
of our depreciation, interest and income tax expense, capital
expenditures and other items both in our reconciliations to the GAAP
financial measures and in our consolidated financial statements, all
of which should be considered when evaluating our performance. 
Adjusted EBITDA and Adjusted EPS should be used in addition to and in
conjunction with results presented in accordance with GAAP. Adjusted
EBITDA and Adjusted EPS should not be considered as an alternative to
net income, operating income or any other operating performance
measure prescribed by GAAP, nor should these measures be relied upon
to the exclusion of GAAP financial measures. Adjusted EBITDA and
Adjusted EPS reflect additional ways of viewing our operations that
we believe, when viewed with our GAAP results and the reconciliations
to the corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting our business than could
be obtained absent this disclosure. Management strongly encourages
investors to review our financial information in its entirety and not
to rely on a single financial measure.  
CONTACT:
Tom Steinbauer
Senior Vice President, Chief Financial Officer
Ameristar Casinos, Inc.
702-567-7000 
 
 
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