American Casino & Entertainment Properties reports 4Q 2015 results

Fourth quarter Consolidated Net revenues were $89.3 million in 2015 compared to $84.8 million in 2014, an increase of 5.3%. ACEP reported a fourth quarter Net income of $3.3 million for 2015 compared to Net income of $0.2 million in 2014. Adjusted EBITDA increased 15.9% to $16.8 million in the fourth quarter of 2015 compared to $14.5 million in the fourth quarter of 2014. Adjusted EBITDA Margin increased to 18.8% in 2015 compared to 17.1% in 2014.

The increase in consolidated Net revenues was driven by increased slot and table games revenue, higher Hotel Occupancy, increased ADR, and higher average revenue per food cover. ACEP has reported year over year increases in Net revenue in each of the last eight quarters, and year over year increases in Adjusted EBITDA in seven out of eight quarters. Net income for the fourth quarter of 2015 was negatively impacted by a $2.1 million loss on asset disposal.

The Stratosphere – Stratosphere’s fourth quarter Net revenues increased 13.8% in 2015 compared to 2014. Hotel revenue increased 23.0% in 2015 compared to 2014, due to a 9.4% percentage point increase in Hotel Occupancy and a 12.4% increase in ADR. Casino revenues increased 16.6% due primarily to increased slot and table games revenue. Food and beverage revenues increased 8.6% due to increased food and beverage covers. Tower revenue fell 7.8% due primarily to a 13.1% decrease in SkyJump admissions. Stratosphere increased Adjusted EBITDA 70.0% and Adjusted EBITDA Margin increased 6.5 percentage points during the fourth quarter of 2015 compared to 2014.

Arizona Charlie’s – The Arizona Charlie’s fourth quarter Net revenues decreased 0.9% in 2015 as compared to 2014. Casino revenues decreased 2.4% due to lower slot coin-in and bingo hold. Hotel revenues increased 20.1% due to increased Hotel Occupancy and higher ADR and food and beverage revenues decreased 2.4% due to decreased food and beverage covers. Due to increased expenses, Adjusted EBITDA decreased 7.3% and Adjusted EBITDA Margin decreased 0.9 percentage points at the Arizona Charlie’s properties during the fourth quarter of 2015 as compared to the fourth quarter of 2014.

The Aquarius – The Aquarius’ fourth quarter Net revenues decreased 3.1% in 2015 compared to 2014. Hotel revenue decreased 3.2% in 2015 as Hotel Occupancy decreased to 39.9% in 2015 compared to 42.2% in 2014. Casino revenue decreased 3.4% due to decreased slot, table, and race and sports revenue. Food and beverage revenue increased 4.2% due to a higher average check per cover. Adjusted EBITDA decreased 14.1% and Adjusted EBITDA Margin decreased 2.7 percentage points in the fourth quarter of 2015 as compared to the fourth quarter of 2014.