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8-K - American Casino & Entertainment Properties LLC | v184283_8k.htm |
LAS
VEGAS, May 12, 2010 — American Casino & Entertainment Properties LLC
(“ACEP”) today reported financial results for the first quarter ended March 31,
2010.
For the
first quarter 2010, ACEP reported a net loss of $2.7 million compared to a
net loss of $1.6 million for the first quarter ended in 2009. ACEP’s 2010 net
earnings were negatively impacted when compared to 2009 due to (i) increased
amortization expense associated with its debt restructuring, (ii) expenses
associated with its 2010-2011 property tax appeal and, (iii) pre-opening
expenses associated with The Stratosphere Casino Hotel & Tower’s newest
ride, Sky Jump Las Vegas.
Net
revenues were $87.8 million for the first quarter of 2010 compared to $93.7
million for the first quarter of 2009, a decrease of 6.3%. EBITDA¹
decreased 4.5% to $19.2 million compared to $20.1 million in 2009. Adjusted
EBITDA¹ decreased 5.3% to $19.8 million.
“We
continue to look for opportunities to improve our business and operate more
efficiently while keeping a constant focus on customer service and the
maintenance of our properties. As a result of these efforts, we reported a
consolidated Adjusted EBITDA¹ margin of 22.5% for the three months ended March
31, 2010 compared to 22.3% for the three months ended March 31, 2009,” according
to Ned Martin, Chief Financial Officer.
The Stratosphere –
The Stratosphere reported an overall decrease in Net revenue due to decreases in
occupancy, average daily room rate, and an overall decrease in spend by
guests. Although Net revenue has continued to decline at
Stratosphere, the year-over-year decrease for the three months ended March 31,
2010 was approximately 10.8% compared to a year-over-year decrease of 21.9% in
the three months ended March 31, 2009.
Arizona Charlie’s –
The Arizona Charlie’s properties reported an overall decrease in Net revenue
with the greatest percentage impact occurring due to decreases in occupancy and
average daily room rate. Although Net revenue decreased at Arizona Charlie’s,
the year-over-year decrease for the three months ended March 31, 2010 was
approximately 7.7% compared to a year-over-year decrease of 15.0% in the three
months ended March 31, 2009.
The Aquarius – The
Aquarius increased Net revenue 3.3% year-over-year for the three months ended
March 31, 2010 compared to a year-over-year decrease of 13.5% for the three
months ended March 31, 2009.
Financial Statistics as of March 31,
2010:
|
|
· Cash
|
$113.8
million
|
·
Debt, including capital leases
|
$377.7
million
|
·
Capital expenditures
|
$ 4.4
million
|
Conference Call
Information:
ACEP will
hold its first quarter earnings conference call today (Wednesday, May 12,
2010) at 11:30 a.m. (Eastern Time). To attend the call, dial 888-710-3981
(domestic toll-free). The pass code is 5415305. A recording of the
call will be available on American Casino & Entertainment Properties LLC’s
website Investor Relations page, www.acepllc.com.
2000 Las
Vegas Boulevard South ∙ Las Vegas, Nevada 89104
For more
information regarding American Casino & Entertainment Properties LLC, please
visit our web site at www.acepllc.com
¹Please see the comments at the
end of this release for information about non-GAAP financial
measures.
Three mos.
ended
March 31,
2010
Unaudited
|
Three mos.
ended
March 31,
2009
Unaudited
|
|||||||
(in
millions)
|
||||||||
Income
Statement Data:
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||||||||
Revenues:
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||||||||
Casino
|
$ | 55.9 | $ | 59.5 | ||||
Hotel
|
13.9 | 15.0 | ||||||
Food
and beverage
|
17.0 | 18.6 | ||||||
Tower,
retail and other
|
7.3 | 8.2 | ||||||
Gross
revenues
|
94.1 | 101.3 | ||||||
Less
promotional allowances
|
6.3 | 7.6 | ||||||
Net
revenues
|
87.8 | 93.7 | ||||||
Costs
and expenses:
|
||||||||
Casino
|
17.2 | 18.9 | ||||||
Hotel
|
8.2 | 8.3 | ||||||
Food
and beverage
|
12.9 | 13.3 | ||||||
Other
operating expenses
|
3.0 | 3.4 | ||||||
Selling,
general and administrative
|
27.1 | 29.6 | ||||||
Pre-opening
costs
|
0.2 | - | ||||||
Depreciation
and amortization
|
10.6 | 9.9 | ||||||
Total
costs and expenses
|
79.2 | 83.4 | ||||||
Income
from operations
|
$ | 8.6 | $ | 10.3 | ||||
EBITDA
Reconciliation:
|
||||||||
Net
income (loss)
|
$ | (2.7 | ) | $ | (1.6 | ) | ||
Interest
income
|
- | - | ||||||
Interest
expense
|
11.3 | 11.8 | ||||||
Depreciation
and amortization
|
10.6 | 9.9 | ||||||
EBITDA
|
$ | 19.2 | $ | 20.1 |
Numbers
may vary due to rounding
2
Three mos.
ended
March 31,
2010
Unaudited
|
Three mos.
ended
March 31,
2009
Unaudited
|
|||||||
(in
millions)
|
||||||||
Adjusted
EBITDA Reconciliation:
|
||||||||
Net
income (loss)
|
$ | (2.7 | ) | $ | (1.6 | ) | ||
Interest
income
|
- | - | ||||||
Interest
expense
|
11.3 | 11.8 | ||||||
Depreciation
and amortization
|
10.6 | 9.9 | ||||||
(Gain)/loss
on disposal of assets
|
- | - | ||||||
Pre-opening
costs
|
0.2 | - | ||||||
Management
fee - related party
|
0.4 | 0.8 | ||||||
Adjusted
EBITDA
|
$ | 19.8 | $ | 20.9 |
Adjusted
EBITDA margin:
Three mos.
ended
March 31,
2010
Unaudited
|
Three mos.
ended
March 31,
2009
Unaudited
|
|||||||
Net
revenues
|
$ | 87.8 | $ | 93.7 | ||||
Adjusted
EBITDA
|
$ | 19.8 | $ | 20.9 | ||||
Adjusted
EBITDA margin (Adjusted EBITDA as % of Net revenues)
|
22.5 | % | 22.3 | % |
Numbers
may vary due to rounding
Following
are selected statistics related to revenues that we use to make strategic
decisions in the day-to-day evaluation of our business, which we believe will be
useful to investors when evaluating the performance of our
business:
3
Three mos. ended
|
||||||||
March 31, 2010
|
March 31, 2009
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|||||||
Win
per unit-Slots1
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||||||||
Stratosphere
|
$ | 89.29 | $ | 109.46 | ||||
Decatur
|
129.72 | 122.61 | ||||||
Boulder
|
86.30 | 85.84 | ||||||
Aquarius
|
141.07 | 135.86 | ||||||
Consolidated
|
$ | 113.24 | $ | 115.04 | ||||
Win
per unit-Tables2
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||||||||
Stratosphere
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$ | 796.65 | $ | 851.06 | ||||
Decatur
|
643.38 | 555.56 | ||||||
Boulder
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462.96 | 414.59 | ||||||
Aquarius
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549.12 | 533.81 | ||||||
Consolidated
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$ | 665.62 | $ | 675.41 | ||||
Average
Daily Room Rate3
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||||||||
Stratosphere
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$ | 43.39 | $ | 46.35 | ||||
Decatur
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48.80 | 50.45 | ||||||
Boulder
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39.21 | 37.45 | ||||||
Aquarius
|
42.88 | 40.71 | ||||||
Consolidated
|
$ | 43.29 | $ | 44.64 | ||||
Hotel
Occupancy Rate4
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||||||||
Stratosphere
|
84.3 | % | 90.2 | % | ||||
Decatur
|
46.6 | % | 56.3 | % | ||||
Boulder
|
40.6 | % | 60.5 | % | ||||
Aquarius
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49.2 | % | 44.3 | % | ||||
Consolidated
|
66.0 | % | 68.8 | % | ||||
Net
Revenue ($ in millions)5
|
||||||||
Stratosphere
|
$ | 36.7 | $ | 41.2 | ||||
Decatur
|
16.8 | 17.9 | ||||||
Boulder
|
9.9 | 11.0 | ||||||
Aquarius
|
24.4 | 23.6 | ||||||
Consolidated
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$ | 87.8 | $ | 93.7 |
|
1.
|
Win
per Unit-Slots represents the total amount wagered in slots less amounts
paid out to players, amounts paid on participations and discounts divided
by the average number of slot units and days during the
period.
|
|
2.
|
Win
per Unit-Tables represents the total amount wagered on tables less amounts
paid out to players and discounts divided by the average number of table
units and days during the period.
|
|
3.
|
Average
Daily Room Rate is the average price of occupied rooms per
day.
|
|
4.
|
Hotel
Occupancy Rate is the average percentage of available hotel rooms occupied
during a period.
|
|
5.
|
Net
Revenue is the gross revenue less promotional
allowances.
|
Non-GAAP
Measures:
We have
included certain “non-GAAP financial measures” in this earnings release. We
believe that our presentation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA
margin is an important supplemental measure of our operating performance to
investors. Management uses EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin
to evaluate our operating performance and make strategic decisions about our
business on a day-to-day basis. EBITDA, Adjusted EBITDA, and Adjusted
EBITDA margin are also a commonly used performance measure in our industry,
hotel and gaming. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA margin,
together with performance measures calculated in accordance with Generally
Accepted Accounting Principles, GAAP, provide investors a more complete
understanding of our operating results before the impact of investing
transactions, financing transactions and income taxes, and facilitates more
meaningful comparisons between the Company and its competitors. We
calculate EBITDA as earnings before interest expense, depreciation and
amortization, and income taxes. Adjusted EBITDA is EBITDA plus (gains)/losses on
the disposal of assets, non-cash impairment charges, loss on the early
extinguishment of debt, pre-opening expenses, and management fees. Adjusted
EBITDA margin is calculated as Adjusted EBITDA/Net Revenue.
4
Contact:
Investor
Relations
Phyllis
Gilland
(702)
380-7777
5