Home | Business News | Browse by Publication | P | PR Newswire

Argosy Gaming Company Reports 2002 Results; Illinois and Indiana Tax Increases Negatively Impact Earnings.

Article Excerpt
-- * Fiscal Year Earnings -- Total Revenues Exceed $1 billion for the first time -- $2.43 per diluted share -- EBITDA, $257.5 million * Fourth Quarter Earnings -- $0.56 per diluted share

-- EBITDA, $61.8 million * Argosy expansion projects well under way

ALTON, Ill., Feb. 4 /PRNewswire-FirstCall/ -- Argosy Gaming Company today announced its fourth quarter and year-end operating results for the periods ended December 31, 2002.

The Company's net income was $71.5 million or $2.43 per diluted share for the year ended December 31, 2002, as compared to $2.25 per diluted share on net income of $66.1 million for the year ended December 31, 2001, after giving effect to a $1.1 million after-tax charge in the third quarter of 2001. In addition, the adoption of the Financial Accounting Standards Board Statement No. 142 on January 1, 2002 eliminated goodwill amortization and impacted year over year comparisons as the Company had recorded pre-tax goodwill amortization of $7.8 million, or $0.16 per diluted share for the full year 2001.

For the year ended December 31, 2002, Argosy's casino revenues increased 20.6% to $944.7 million, reflecting an increase of $161.3 million over the year ended 2001. The increase is primarily the result of owning the Empress Casino Joliet for all of 2002, versus for five months of 2001. Empress contributed $237.6 million of casino revenues in 2002 versus $102.1 million in 2001. At Lawrenceburg, casino revenues increased $27.3 million to $373.7 million, due primarily to the implementation of dockside operations in August of 2002.

The Company's EBITDA (earnings before interest, taxes, depreciation and amortization) for the year ended December 31, 2002 increased $27.0 million to $257.5 million. The Empress casino contributed EBITDA of $63.7 million in 2002, versus $30.4 million for the five months ended December 31, 2001. These results were achieved despite increases in the gaming tax and admission tax rates that affected the Company's properties in Illinois and Indiana. EBITDA for 2002 was approximately $33 million lower than it would have been before the tax rate changes based on 2002 casino revenues. EBITDA at the Company's Alton property was down $6.5 million, from $40.9 million to $34.4 million, in part because of the increase in the Illinois tax rate, and in part because of the highly competitive environment in the St. Louis market due to capital expansions and promotional activities by competitors. In Lawrenceburg, EBITDA was down $2.2 million, from $132.2 million to $130.0 million, as the benefit from increased revenues due to dockside operations was not sufficient to offset the negative impact of the tax increases. The EBITDA at the Company's other properties was similar to the levels achieved in 2001, with the exception of Joliet. The EBITDA at the Company's Joliet property was $33.3 million higher, due to the impact of owning the property for all of 2002, offset by the Illinois tax rate increases and significant competitive pressures in the Chicago market.

James B. Perry, Chief Executive Officer, commenting on the full year results said, "It was certainly a challenging year, as significant...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!