American Casino & Entertainment Properties LLC - FORM 8-K - EX-99.1

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8-K - American Casino & Entertainment Properties LLC	v215195_8k.htm

LAS VEGAS, NEVADA, March 21, 2011 -- American Casino & Entertainment Properties LLC (“ACEP”) today reported financial results for the fourth quarter and year ended December 31, 2010.

Net revenues were $79.0 million for the fourth quarter of 2010 compared to $80.5 million for the fourth quarter of 2009, a decrease of 1.9%. ACEP reported a fourth quarter Net Loss of $17.4 million compared to a Net Loss of $17.6 million in the fourth quarter of 2009. Adjusted EBITDA increased 3.4% to $12.3 million for the fourth quarter of 2010 compared to $11.9 million for the fourth quarter of 2009. Adjusted EBITDA Margin improved to 15.6% compared to 14.8% in 2009. For the year ended December 31, 2010, Adjusted EBITDA was $63.4 million compared to $68.8 million in 2009.

The Stratosphere – In the fourth quarter, Stratosphere experienced a 4.2% decrease in Net revenues due to decreases in occupancy, average daily room rate, and an overall decrease in spend by guests throughout the property. The 4.2% decrease is Stratosphere’s best year-over-year comparison of 2010. A portion of the year-over-year decrease in Stratosphere’s Net revenues can be attributed to rooms that were out-of-order for renovation, a project that was completed in December 2010. Based on available rooms, Stratosphere’s fourth quarter occupancy was 89.4% compared to 86.8% in 2009.

Arizona Charlie’s – The Arizona Charlie’s properties experienced an overall decrease in Net revenues of 3.2% in the fourth quarter. The Las Vegas local market continues to be impacted by a difficult economy, high unemployment and heavy promotional activity by our competitors.

The Aquarius – Aquarius’ Net revenues increased 4.1% year-over-year for the three months ended December 31, 2010. The increase in Net revenues at Aquarius is driven by our targeted marketing programs that have resulted in increased revenues across all major categories.

Financial Statistics as of December 31, 2010:
·	Cash	$85.3 million
·	Book value of Debt, including capital leases, net of unamortized discount	$357.8 million
·	Capital expenditures for the last 12 months	$36.1 million

Conference Call Information:

We will hold our fourth quarter 2010 earnings conference call today, Monday, March 21, 2011 at 8:30 AM Pacific Time (9:30 AM Mountain, 10:30 AM Central, 11:30 AM Eastern). To attend, dial 888-213-3752 (US/Canada toll-free). The pass code is 9862672. A recording of the call will be available on American Casino & Entertainment Properties LLC’s website Investor Relations page, www.acepllc.com.

For more information regarding American Casino & Entertainment Properties LLC, please visit our web site at www.acepllc.com.

Please see the comments at the end of this release for information about non-GAAP financial measures.

2000 Las Vegas Boulevard South ∙ Las Vegas, Nevada 89104

	Three months ended			Three months ended			Year ended			Year ended
	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009
	(in millions)						(in millions)
Income Statement Data:
Revenues:
Casino	$	48.8		$	49.8		$	205.0		$	215.2
Hotel		12.5			12.8			55.9			59.3
Food and beverage		16.0			16.4			67.1			73.3
Tower, retail and other		7.7			7.2			33.1			33.9
Gross revenues		85.0			86.2			361.1			381.7
Less promotional allowances		6.0			5.7			24.3			25.7
Net revenues		79.0			80.5			336.8			356.0

Costs and expenses:
Casino		16.2			16.6			66.3			70.3
Hotel		7.7			7.6			33.3			34.1
Food and beverage		11.9			13.1			50.5			55.3
Other operating expenses		3.2			2.9			13.1			13.3
Selling, general and administrative		32.4			29.0			116.1			116.8
Pre-opening costs		-			-			0.3			-
Depreciation and amortization		13.6			10.5			46.4			41.3
Impairment of assets		-			7.1			2.0			7.1
Total costs and expenses		85.0			86.8			328.0			338.2
Income from operations	$	(6.0	)	$	(6.3	)	$	8.8		$	17.8

EBITDA Reconciliation:
Net income (loss)	$	(17.4	)	$	(17.6	)	$	(36.7	)	$	(21.8	)
Interest income		-			-			-			(0.1	)
Interest expense		11.4			11.3			45.6			39.7
Depreciation and amortization		13.6			10.5			46.4			41.3
EBITDA	$	7.6		$	4.2		$	55.3		$	59.1

Numbers may vary due to rounding.

	Three months ended			Three months ended			Year ended			Year ended
	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009
	(in millions)						(in millions)
Adjusted EBITDA Reconciliation:
Net income (loss)	$	(17.4	)	$	(17.6	)	$	(36.7	)	$	(21.8	)
Interest income		-			-			-			(0.1	)
Interest expense		11.4			11.3			45.6			39.7
Depreciation and amortization		13.6			10.5			46.4			41.3
Loss on disposal of assets		4.3			0.2			4.3			0.8
Pre-opening costs		-			-			0.3			-
Management fee - related party		0.4			0.4			1.5			1.8
Impairment of assets		-			7.1			2.0			7.1
Adjusted EBITDA	$	12.3		$	11.9		$	63.4		$	68.8
Adjusted EBITDA Margin		15.6	%		14.8	%		18.8	%		19.3	%

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:

	Three months ended		Three months ended		Year ended		Year ended
	December 31, 2010		December 31, 2009		December 31, 2010		December 31, 2009

WPU – Slots1
Stratosphere		87.99		83.41		86.08		95.37
Decatur		112.92		110.90		118.51		115.20
Boulder		72.19		78.76		76.85		79.80
Aquarius		119.35		116.35		127.21		121.91
Consolidated		100.09		98.82		103.97		104.55

WPU – Tables2
Stratosphere		618.07		615.26		686.22		758.61
Decatur		543.48		489.40		592.53		534.87
Boulder		362.32		362.32		410.96		399.47
Aquarius		448.16		373.13		505.31		532.00
Consolidated		526.98		498.94		588.16		619.38

ADR3
Stratosphere		44.12		46.22		42.86		45.27
Decatur		44.04		48.83		45.60		49.37
Boulder		40.46		40.73		38.73		38.39
Aquarius		41.96		42.72		45.97		45.27
Consolidated		43.41		45.28		43.67		45.12

Hotel Occupancy4
Stratosphere		76.6		79.5		84.9		89.6
Decatur		51.0		43.3		49.4		49.7
Boulder		42.6		38.9		42.8		48.2
Aquarius		37.2		34.2		47.2		43.3
Consolidated		58.3		57.4		65.7		66.9

Net Revenue ($ in millions)5
Stratosphere		34.6		36.1		147.4		162.3
Decatur		15.1		15.5		62.0		65.6
Boulder		8.8		9.2		36.0		39.2
Aquarius		20.5		19.7		91.4		89.0
Consolidated		79.0		80.5		336.8		356.1

Numbers may vary due to rounding.

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.

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.

Average Daily Room Rate is the average price of occupied rooms per day.

Hotel Occupancy Rate is the average percentage of total hotel rooms occupied during a period.

Net Revenues are the gross revenues 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 these non-GAAP financial measures 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, financi ng 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 by dividing Adjusted EBITDA by Net revenues.

Contact:

Investor Relations

Phyllis Gilland

(702) 380-7777

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