Parent of Stratosphere, Arizona Charlie's trims net loss


Officials for the company that operates the Stratosphere and the two Arizona Charlie's casinos reduced their net loss in the fourth quarter that ended Dec. 31.

American Casino & Entertainment Properties, which also owns the Aquarius in Laughlin, on Thursday reported a fourth-quarter net loss of $7 million, compared with a net loss of $17.4 million in the same quarter a year ago.

Net revenues in the quarter grew to $81.3 million, compared with $79 million in the fourth quarter of 2010.

The Stratosphere's net revenue increased 8.1 percent on a 7.3 percent increase in casino revenue and a 22.1 percent increase in hotel revenue during the quarter.

The company said renovated hotel rooms and a new player rewards program helped the resort increase average daily room rates and occupancy, casino revenues and food and beverage revenues.

Net revenue at the Arizona Charlie's properties fell 24 percent in the quarter with most of the declines coming from decreased casino, and food and beverage revenues at the Boulder Highway property.

Company officials said heavy promotional activity from competitors dominates the Las Vegas local market, which continues to be affected by high unemployment and declining home values.

The Aquarius was hurt by construction along Laughlin's Casino Drive during 2011, the main road through the resort corridor. The property's net revenues were essentially flat year-over-year.

MGM Resorts International's creditworthiness strengthened

MGM Resorts International completed a public offering of $1 billion in unsecured bonds Thursday, with the casino operator collecting $985.9 million in net proceeds.

The notes, issued at a 7.75 percent interest rate and due in 2022, allow the company to restructure a portion of its $12 billion in long-term debt by extending repayment by several years.

The company used the net proceeds to repay the full amount of term loans maturing in February 2014.

MGM Resorts Chief Financial Officer Dan D'Arrigo said the transaction was the company's first 10-year unsecured note offering since 2006.

"(It) demonstrates our continued commitment to strengthening our balance sheet," D'Arrigo said.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

 

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