Liquidity and Capital Expenditures

At December 31, 2012 the Company had approximately $101.8 million in cash and cash equivalents, an estimated $70.0 million of which is used in day-to-day operations. As of the end of the 2012 fourth quarter, the Company's $410 million revolving credit facility was undrawn and approximately $8.6 million of letters of credit were outstanding.

Capital expenditures totaled approximately $45.4 million during the 2012 fourth quarter. Cash expenditures, including the settlement of prior period payables, totaled $16.2 million for L'Auberge Baton Rouge and $13.4 million for the River City expansion in the 2012 fourth quarter. Excluding land and capitalized interest costs, approximately $38 million of the $82 million budget for the River City expansion project has been incurred.

During 2013, the Company expects to spend between $60 million and $70 million on capital expenditures associated with its existing operating properties and corporate initiatives. The upper bound of this range is dependent upon the timing of phased hotel room refresh programs and the renovation of certain food and beverage outlets at select assets in the portfolio. The Company expects to incur between $160 million and $170 million on expansion capital expenditures during 2013, comprising the River Downs redevelopment, the River City expansion and New Orleans hotel construction.  The Company expects to fund capital expenditures utilizing internally generated cash flow and drawings on its revolving credit facility. These figures do not include expenditures related to Ameristar properties or initiatives.

Interest Expense

Gross interest expense before capitalized interest was $29.1 million in the 2012 fourth quarter versus $24.8 million in the prior year period. Capitalized interest in the 2012 fourth quarter was $2.6 million versus $5.1 million in the prior year period. Other non-operating income was $0.3 million in the 2012 fourth quarter and $0.1 million in the prior year period. The decrease in capitalized interest in the 2012 fourth quarter is attributable to the Company ceasing interest expense capitalization on L'Auberge Baton Rouge in August 2012. In the 2012 fourth quarter, the Company capitalized interest expense on its expenditures related to the River City expansion, as well as its investment in ACDL.

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