Aztar Reports Record Operating Results for Third Quarter of 1999
PHOENIX, Oct. 20 /PRNewswire/ -- Aztar Corporation (NYSE: AZR) today
reported record third-quarter operating income and operating cash flow for its
fiscal third quarter of 1999. Earnings per share before extraordinary items
and assuming dilution were 18 cents, compared with 12 cents a year earlier.
For the quarter that ended September 30, 1999, income before extraordinary
items rose 52 percent to $8.6 million from $5.6 million a year earlier.
Operating income was $27.0 million, up from $25.4 million in the year-earlier
quarter. Consolidated operating cash flow, as defined by earnings before
interest, taxes, depreciation, amortization and rent (EBITDAR), was
$44.9 million, up from $43.6 million a year earlier.
"Aztar's trailing-12-month operating cash flow increased to $160 million
at the end of September 1999," said Paul E. Rubeli, Aztar chairman of the
board, president and chief executive officer. "Our operating cash flow now
has increased over the year-earlier quarter in 14 of the last 15 quarters
during the past 33/4 years."
Atlantic City Tropicana
The Atlantic City Tropicana generated operating cash flow of
$31.7 million, an 8 percent increase from $29.3 million in the prior year's
quarter. This quarter marks the 12th straight quarter in which the property
has produced quarterly operating cash flows higher than the year-earlier
quarter. Operating cash flow at the Atlantic City Tropicana for the most
recent twelve months was $100.4 million, a record for the property.
Slot revenue at the Tropicana increased 8.6 percent during the 1999 third
quarter on a calendar basis from the year-earlier quarter, compared with
5.3 percent for the Atlantic City market. Table games win at the Tropicana
decreased 12 percent on lower hold percentage. Hotel cash rooms revenue
increased 20 percent. The Tropicana's operating cash flow margin was
27.0 percent, up from 25.8 percent a year earlier.
"Atlantic City continued to show its strength in the third quarter, with
casino revenue in the market up 3.4 percent to $1.2 billion," Rubeli said.
"We continue to be very optimistic about the vitality of the market and the
Tropicana's position in it."
Las Vegas Tropicana
At the Las Vegas Tropicana, operating cash flow was $2.9 million in the
1999 third quarter, more than double the results of a year earlier. A decline
in casino revenue, caused in part by the company's decision to eliminate
baccarat in its revenue mix, was more than offset by a 7 percent increase in
hotel rooms cash revenue and improved operating margins. Occupancy at the Las
Vegas Tropicana during the quarter was 98.2 percent versus 94.5 percent a year
earlier with slightly higher average room rates.
Ramada Express Laughlin
The Ramada Express continued its solid performance in the Laughlin market
with an operating cash flow increase of 8 percent in the 1999 quarter from a
year earlier, to $3.7 million. Both hotel occupancy and average room rates
increased from the year-earlier quarter, resulting in a 9.3 percent increase
in revenue per available room. During the last 12 months, the Ramada Express
generated operating cash flow of more than $20 million.
Casino Aztar Evansville
Aztar's riverboat casino in Evansville, Indiana generated operating cash
flow of $8.8 million during the third quarter of 1999, down $2.8 million from
a year earlier. As expected, operations in Evansville were impacted by the
Caesars riverboat casino, which opened in November 1998 in the Louisville
market, located about 100 miles away.
"The impact from the new Caesars riverboat was a bit greater during the
quarter's summer vacation months than we believe it will be during the balance
of the year," Rubeli said. "Our goal in Evansville is to begin increasing our
operating cash flow once we have passed the Caesars boat's first anniversary
in November."
Casino Aztar Caruthersville
The company's riverboat casino in Caruthersville, Missouri reported
$695,000 in operating cash flow in the third quarter of 1999, up from $530,000
a year earlier.
"We look forward to a continuing positive impact on our Caruthersville
operation from the open boarding policy that we were permitted to institute on
August 15th, coupled with the additional casino capacity installed on our
barge in late June," Rubeli said.
Financial Matters
During the third quarter of 1999, the company:
-- Purchased 1,216,300 shares of Aztar common stock at prices ranging
from $8.63 per share to $10.25 per share at an average price of $9.50
per share; from the inception of the share repurchase program on
May 18, 1999, through the end of the third quarter, the company
purchased 1,885,800 shares at an average price of $8.95 per share.
-- Purchased and retired $5.5 million of its 133/4% Senior Subordinated
Notes due 2004, resulting in an extraordinary charge of $382,000.
Long-term debt, including the current portion, was $464.7 million at the
end of the quarter, compared with $470.7 million at the end of the second
quarter of 1999. The company had no borrowings against its $300 million
revolving bank credit facility at the end of the third quarter. Cash and cash
equivalents were $56.1 million at the end of the quarter, compared with
$44.0 million at the end of the second quarter.
Subsequent to the close of the third quarter, as previously announced, the
company redeemed the balance of its original issue of $180 million of 133/4 %
Senior Subordinated Notes due 2004. The redemption was funded primarily by
borrowings under the company's revolving bank credit facility, under which the
company presently borrows at an interest rate of approximately 7.5% per year. |
