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American Casino profits rise

American Casino & Entertainment Properties on Thursday reported higher profits and revenue in 2007 compared with a tear earlier.

In a filing with the Securities and Exchange Commission, the company said net income increased 50.6 percent to $38.6 million in 2007 from $25.6 million in 2006 and net revenue increased 15.2 percent to $444.2 million from $385.7 million in 2006.


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  • The increases were driven by revenues from the Aquarius, which was bought from Harrah's Entertainment for $114 million in May 2006.

    The 1,907-room hotel, formerly the Flamingo Laughlin, is the largest in that city.

    The company also owns the Stratosphere, Arizona Charlie's Boulder and Arizona Charlie's Decatur.

    Cash flow from operations increased 15.7 percent to $73.4 million in 2007 from $63.5 million the previous year. Casino revenues, which account for 55 percent of the company's revenues for the year, increased 20 percent to $265.1 million from $220.8 million in 2006.

    Hotel revenue rose 16.7 percent to $88.2 million from $75.6 million, and food and beverage increased 9 percent to $91.2 million from $83.7 million.

    When the Aquarius' effect to the bottom line is removed, the three remaining properties posted a 2.7 percent increase in net revenues in 2007 driven by 7.5 percent increase in casino revenues.

    American Casino was bought last month for $1.3 billion by an affiliate of Goldman Sachs, Whitehall Street Real Estate Funds. The company was a gaming subsidiary controlled by billionaire financier Carl Icahn.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or (702) 477-3893.

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    Jim wrote on March 28, 2008 06:05 AM: WOW, there is really no limit on income and profit when you virtually adjust the payouts to nearly nothing, quit mailing out any food comps and adjust the point systam(rewards) to some ridiculous form that nobody has a clue of what reward they are receiving for their play. You just sort of play and they mail you something that has absolutely no rhyme or reason to your previous play. Oh and you have to give away some 99 cent store piece of crap every few days or so and then run out before the people get there and then you substitute it with other junk that nobody wanted. I now have more BBQ tongs than there are hot dogs in a package. Then there are the pooper scoopers, guess eventually they are gonna give me a dog or cat so I can use them, and the very (CHEAP) chip clips, wow gas is only $3.25 a gallon and I drove there for a chip clip. Come on how long do you think people will continue contributing to your bottom line when there is no paybacks, they will and they have already begin to cut back on their play and are finding other places to play. Perhaps you should re-name the places the black hole or provide pre-paid envelopes so people could just mail their money in so they could save lots of time and gas. I am mostly speaking of Arizona Charlies on Boulder Hwy.