More growth for Argosy

Aug 23, 2005 4:06 AM

There are not many reporting periods left by an independent Argosy Gaming Company (AGY) since the company has agreed to be acquired by Penn National Gaming Inc. (PENN) for $47 per share.

Still, the company continued reporting positive numbers for the second quarter of the current fiscal year, earning $21.7 million or $0.73 per share compared to last year’s $18.6 million or $0.63 per diluted share.

The earnings included an expense of $0.02 associated with the proposed merger.

Net revenues for the quarter amounted to $270.9 million, an increase of 6.4% over last year’s $254.6 million.

For the first six months of 2005 that ended on June 30, net income was $43 million or $1.44 per share on net revenues of $541.9 million. In 2004, net income was $22.5 million or $0.76 per share on net revenue of $518.7 million.

As part of its agreement with Penn National, Argosy said it would not provide any further guidance relative to expected revenues and earnings.

Ameristar Casinos

Las Vegas-based Ameristar Casinos Inc. (ASCA) said its second-quarter profit rose 11% during the second quarter of the fiscal year, helped by strong growth experienced by its various casinos.

Net income increased to $16.7 million or $0.29 per share, topping last year’s $15 million or $0.27 per share.

Revenue grew 14% to $238.9 million from last year’s $210 million. The consensus of analysts had set a target of $233.3 million in revenue.

Although the quarterly results exceeded analysts’ estimates, they were disturbed by the company’s projections for the third quarter. The company’s estimates were for income of between $42 million and $44 million and for earnings per share of between $0.30 and $0.32 per share. The Wall Street consensus was for earnings of $0.33 per share.

Progressive Gaming

It was a positive second quarter for Progressive Gaming International Corporation (PGIC), the former Mikohn Gaming Inc. that just last year was reporting a loss for the period.

Revenues reached $18.6 million from last year’s $17.3 million but net income was $1.9 million or $0.07 per share whereas during the comparable period of 2004 there was a net loss of $900,000 or $0.04 per share.

Particularly impressive, stressed management, was the fact that the company recorded the highest level of systems revenues since inception driven by strong demand for the company’s slot and table management solutions.

Estimated earnings for the entire year 2005 are expected to be between $0.27 and $0.32 with revenues to fall between $85 million and $92 million.

Riviera Holdings

Net revenues for the quarter that ended on June 30 were relatively flat at $53.3 million, less than one percent higher than the second quarter of 2004. But income from operations declined some $2 million to $5.6 million when compared to the previous year.

Management explained that it spent $500,000 during the second quarter on programs related to its 50th anniversary.

Also impacting earnings, the company said, was a decline in business at Riviera Black Hawk Casino in Colorado. Business was affected by a rock slide in June that closed a major highway leading to Black Hawk, the company said.