Ameristar Casinos reports loss for third quarter

USA).

Macquarie analysts said the company managed costs effectively while operating in competitive gaming environments.

Net revenues for the company decreased to us$ 298.01 million from us$ 304.51 million last year, while interest expense rose to us$ 29.7 million from us$ 27.3 million. Development expenses increased by us$ 1.1 million because of projects in Louisiana and Massachusetts.

Ameristar's CEO Gordon Kanofsky noted that his company's Kansas City and East Chicago properties faced heightened competition. Ameristar has eight properties throughout Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska and Nevada. Its Nevada property is in Jackpot near the Idaho border.

Its ninth property, in Lake Charles, is expected to open in mid-2014. "We look forward to further growing our company and diversifying our operations when we complete our luxury casino resort in Lake Charles, La. Additionally, our proposal in Springfield, Mass., to develop a world-class luxury resort in a new geographic region serves as another example of our commitment to pursue growth opportunities," Kanofsky said in a statement.

Construction of the Lake Charles property began July 20 and is on schedule, the company said. The project's cost is expected to be between us$ 560 million to us$ 580 million excluding capitalized interest and preopening expenses. The company expects funding to come from a combination of cash from operations and borrowings under its revolving credit agreement.

Ameristar's Springfield property plans call for a 13,935 sqm casino featuring about 3,300 slot machines and 110 table games including a poker room. The company estimates the initial development cost to be about $910 million, which includes capitalized interest and preopening expenses and a license fee payment to Massachusetts.