American Casino & Entertainment Properties reports financial results for Q1 2016

First quarter Consolidated Net revenues were $98.0 million in 2016 compared to $94.4 million in 2015, an increase of 3.8%. ACEP reported a first quarter Net income of $12.5 million for 2016 compared to Net income of $8.0 million in 2015. Adjusted EBITDA increased 9.0% to $24.2 million in the first quarter of 2016 compared to $22.2 million in the first quarter of 2015. Adjusted EBITDA Margin increased to 24.7% in 2016 compared to 23.5% in 2015.

The increase in consolidated Net revenues was driven by increased slot and table games revenue, higher Hotel ADR, and higher average revenue per food cover. ACEP has reported year over year increases in Net revenue in each of the last nine quarters, and year over year increases in Adjusted EBITDA in eight out of nine quarters. Net income for the first quarter of 2016 was negatively impacted by a $1.1 million loss on debt redemption related to a voluntary $35.0 million principal payment on the 2015 Term Loans, on March 31, 2016.

The Stratosphere - Stratosphere’s first quarter Net revenues increased 11.6% in 2016 compared to 2015. Hotel revenue increased 18.9% in 2016 compared to 2015, due to a 6.8% percentage point increase in Hotel Occupancy and a 10.2% increase in ADR. Casino revenues increased 8.4% due primarily to increased slot and table games revenue. Food and beverage revenues increased 11.6% due to increased food and beverage covers. Tower revenue fell 6.4% due primarily to a 1.6% decrease in guests and a 4.3% decrease in average revenue per guest. Stratosphere increased Adjusted EBITDA 43.9% and Adjusted EBITDA Margin increased 5.0 percentage points during the first quarter of 2016 compared to 2015.

Arizona Charlie’s - The Arizona Charlie’s first quarter Net revenues decreased 1.2% in 2016 as compared to 2015. Casino revenues decreased 1.8% due to lower slot coin-in and bingo hold. Hotel revenues increased 14.0% due to increased Hotel Occupancy and higher ADR and food and beverage revenues decreased 8.9% due to decreased food and beverage covers. Due to decreased expenses, Adjusted EBITDA increased 2.0% and Adjusted EBITDA Margin increased 0.6 percentage points at the Arizona Charlie’s properties during the first quarter of 2016 as compared to the first quarter of 2015.

The Aquarius - The Aquarius’ first quarter Net revenues decreased 3.3% in 2016 compared to 2015. Hotel revenue decreased 11.7% in 2016 as Hotel Occupancy decreased to 46.6% in 2016 compared to 55.7% in 2015. Casino revenue decreased 1.1% due to decreased slot revenue. Food and beverage revenue increased 0.9% due to a higher average check per cover. Adjusted EBITDA decreased 9.1% and Adjusted EBITDA Margin decreased 2.1 percentage points in the first quarter of 2016 as compared to the first quarter of 2015.

To see the full report, visit ACEP's website.