The company that operates the Stratosphere, Arizona Charlie’s and the Aquarius in Laughlin reported its fourth quarter and full year earnings today.
Company: American Casino & Entertainment Properties LLC
Revenue: $89.3 million for the fourth quarter, up 5.3 percent from the same time period one year earlier. For the full year, the company’s net revenue was $373.1 million, up 6.3 percent from 2014.
Earnings: $3.3 million for the fourth quarter, compared to $200,000 from the same time in 2014. For all of 2015, the company reported net income of $12.1 million, compared to $7 million in 2014.
What it means: American Casino said in a statement that its net revenue increase was driven by revenue growth from slot and table games as well as better hotel occupancy, average daily room rates and average revenue per food cover. The company noted that it has reported eight consecutive year over year revenue increases.
At the Stratosphere, fourth quarter net revenue rose 13.8 percent in the fourth quarter compared to one year earlier. Hotel revenue rose 23 percent as occupancy grew by 9.4 percentage points and average daily room rates rose 12.4 percent, the company said. Casino revenue there also increased 16.6 percent year over year because of increases in slot and table games revenue, and food and beverage revenue rose 8.6 percent. Tower revenue, however, fell 7.8 percent as SkyJump admissions decreased 13.1 percent, according to a company statement.
At the Arizona Charlie’s properties, fourth quarter net revenue fell 0.9 percent from 2014. Declines in slot coin-in and bingo hold drove casino revenue down 2.4 percent, but hotel revenue grew 20.1 percent because of increased hotel room occupancy and higher average daily rates. Food and beverage revenue fell 2.4 percent.
The Aquarius also reported a net revenue decrease of 3.1 percent in the fourth quarter. The company said hotel revenue fell 3.2 percent as occupancy declined and casino revenue fell 3.4 percent because of decreased revenue from slots, table games and sports betting. Food and beverage revenue increased 4.2 percent, however.
The company said its consolidated total debt at the end of the quarter was $294.5 million.