ASCA A SPAC I Acquisition Corporation

LAS VEGAS, Sept. 28 /PRNewswire-FirstCall/ -- Ameristar Casinos, Inc. (NASDAQ:ASCA) today updated its financial guidance for the third quarter and full year 2005. Based upon our preliminary results of operations to date, we have revised our previously issued third quarter financial guidance and currently estimate operating income of $39.0 million to $40.0 million (decreased from prior guidance of $42.0 million to $44.0 million), EBITDA of $60.5 million to $61.5 million (decreased from prior guidance of $64.0 million to $66.0 million) and diluted earnings per share of $0.26 to $0.28 (decreased from prior guidance of $0.30 to $0.32). Our revised guidance gives effect to $21.5 million of anticipated depreciation expense and $15.0 million of anticipated interest expense. Our previously issued guidance anticipated $22.0 million of depreciation expense and $15.0 million of interest expense. We have also revised our financial guidance for the full year 2005. We currently estimate operating income of $162.0 million to $164.0 million (decreased from prior guidance of $171.0 million to $179.0 million), EBITDA of $247.0 million to $249.0 million (decreased from prior guidance of $254.0 million to $262.0 million) and diluted earnings per share of $1.08 to $1.11 (decreased from prior guidance of $1.17 to $1.26 on a post-stock split basis). We currently anticipate $85.0 million of depreciation expense and $60.4 million of interest expense for the full year 2005, versus previously issued guidance of $83 million of depreciation expense and $62 million of interest expense. The expected reduction in our financial results for the third quarter and full year 2005 is mostly attributable to greater than anticipated construction disruption related to the casino expansion project currently underway at our Mountain High property in Black Hawk, Colorado. Mountain High was also adversely affected for most of the third quarter of 2005 by the temporary closure of a principal highway connecting Black Hawk and Denver. Additionally, a more competitive environment in the St. Louis market has resulted in increased promotional spending at our St. Charles property. In addition to the factors mentioned above, our revised annual guidance reflects a significant increase in Company-wide health benefit costs during the first six months of 2005. Forward-Looking Information This press release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as "believes," "estimates," "anticipates," "intends," "expects," "plans," "is confident that" or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to "Item 1. Business - Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2004 and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2005. About Ameristar Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and entertainment company known for its premier properties characterized by innovative architecture, state-of-the-art casino floors and superior dining, lodging and entertainment offerings. Ameristar's focus on the total entertainment experience and the highest quality guest service has earned it a leading market share position in each of the markets in which it operates. Founded in 1954 in Jackpot, Nevada, Ameristar has been a public company since November 1993. The company has a portfolio of seven casinos in six markets: Ameristar St. Charles (greater St. Louis); Ameristar Kansas City; Ameristar Council Bluffs (Omaha, Nebraska and southwestern Iowa); Ameristar Vicksburg (Jackson, Mississippi and Monroe, Louisiana); Mountain High in Black Hawk, Colorado (Denver metropolitan area); and Cactus Petes and the Horseshu in Jackpot, Nevada (Idaho and the Pacific Northwest). Visit Ameristar Casinos' web site at http://www.ameristar.com/ (which shall not be deemed to be incorporated in or a part of this news release). http://www.newscom.com/cgi-bin/prnh/20040930/LATH017LOGO http://photoarchive.ap.org/ DATASOURCE: Ameristar Casinos, Inc. CONTACT: Tom Steinbauer, Senior Vice President of Finance, Chief Financial Officer of Ameristar Casinos, Inc., +1-702-567-7000 Web site: http://www.ameristar.com/

Copyright