Ameristar Casinos At A Loss
Like many other casino operators, Ameristar Casinos (ASCA: 17.10 +0.29%) has had to cut operating cost in an effort to stay afloat as gamblers continue to spend less.
However, these initiatives were not enough to prevent the gaming company from posting a loss for the fourth quarter.
While, Ameristar was able to lower expenses from $441.5 million to $363.3 million during the quarter, they still posted a loss of $63.3 million or $1.10 per share.
Excluding $0.16 per share related to a higher interest expense and other items, earnings were posted at $0.11 per share, with quarterly revenue dropping 1% to $291.3 million.
Ameristar was however able to narrow the loss for the year to $4.7 million from $130.7 million, while declining 4% in yearly revenue from $1.27 billion to $1.22 billion.
Executives for the company contribute the loss to continued struggles related to the recession as well as the permanent closure of a main artery bridge near its Ameristar East Chicago casino and bad weather in the Midwest.
Shares for ASCA dropped $0.39 in morning trading to $15.76 from its opening price of $16.15.
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