Aztar Reports Strong Results for First Quarter of 1999
PHOENIX, April 20 /PRNewswire/ -- Aztar Corporation (NYSE: AZR) today
reported improved year-over-year operating cash flow, operating income,
operating margin and net income for its fiscal first quarter of 1999.
Revenues for the quarter that began Jan. 1, 1999 and ended April 1, 1999
were $190.5 million compared with $196.8 million in the quarter that began
Jan. 2, 1998 and ended April 2, 1998. Consolidated operating cash flow, as
defined by earnings before interest, taxes, depreciation, amortization and
rent (EBITDAR), was $36.9 million, up four percent from $35.3 million a year
earlier. Operating cash flow margin was 19.4 percent, up from 18.0 percent a
year earlier. Operating income was $19.7 million, up 17 percent from $16.9
million in the year-earlier quarter. Net income was $2.9 million, equivalent
to six cents per share, diluted, for the 1999 quarter, compared to $618,000,
or one cent per share, a year earlier.
"Operating cash flow on a trailing 12-month basis through this year's
first quarter was $156.1 million, a new record for the company," said Paul E.
Rubeli, Aztar chairman of the board, president and chief executive officer.
"All but one of our properties had higher first-quarter operating cash flow
than the prior year. Our Nevada properties combined generated a 55 percent
increase in their operating cash flow in the first quarter."
Tropicana Atlantic City
The company's Tropicana Casino and Resort in Atlantic City, New Jersey
generated EBITDAR of $21.5 million, up from $21.3 million in the first quarter
of 1998. Casino revenues at the Atlantic City Tropicana were three percent
lower than the prior year, in large part as a result of bad winter weather in
January. The property's operating cash flow was down sharply in January, but
strong operating cash flow results in both February and March overcame the
downturn. Operating cash flow margins in the first quarter of 1999 were 22.1
percent, up from 21.3 percent a year earlier.
Tropicana Las Vegas
Tropicana Resort and Casino in Las Vegas, Nevada reported very strong
growth in operating cash flow from the prior year, with EBITDAR reaching $3.0
million, double the prior year's amount. This performance was fueled by very
strong demand for hotel rooms in all customer segments, with occupancy of 94
percent versus 91 percent in the prior year, resulting in a 19 percent
increase in revenue per available room or RevPAR. The Las Vegas Tropicana
continued its program to reduce the increasingly expensive high-end table
games business in its revenue mix. This repositioning and an overall emphasis
on cost controls generated a $3.3 million reduction in operating expenses.
The result at the Tropicana was that EBITDAR margin increased more than four
points from the prior year.
Casino Aztar Evansville
This quarter was the first full quarter in which Casino Aztar Evansville
experienced the effects of the Caesars riverboat casino that opened in late
November near Louisville, Kentucky, more than a two-hour drive from
Evansville. That effect, in combination with severe winter weather in January
and March, impacted our operations. Casino revenue was down 16 percent from
the prior year and EBITDAR was $8.2 million, down from $11.2 million a year
earlier. As a result of our analysis of customer volume trends and the
effects of weather, we believe that operating results would have been
approximately $1.0 million higher under better weather conditions. Despite
difficult conditions in the first quarter, the EBITDAR margin at Casino Aztar
Evansville was a strong 31 percent. Hotel occupancy was 76 percent versus 73
percent in the prior year, and RevPAR was up 14 percent.
Ramada Express Laughlin
Ramada Express Hotel and Casino in Laughlin, Nevada had a very strong
quarter, generating $25.2 million of revenue, an 18 percent increase from the
prior year, and operating cash flow of $6.6 million, a 40 percent increase
from the prior year. Cash flow operating margin improved four points.
Occupancy at the property was 96 percent, six percentage points higher than
last year, and RevPAR increased eight percent. The overall Laughlin market
has registered positive growth rates in casino revenue for six consecutive
months through February, with growth of six percent for the first two months
of this year. As evidenced by the strong first-quarter results, Ramada
Express' success in increasing its market share of industry-wide casino
revenue for five straight years, to 14.1 percent in 1998, positions the
property well to capitalize on the rebounding Laughlin market.
Casino Aztar Caruthersville
Operating cash flow at Casino Aztar Caruthersville was $747,000, a 49
percent increase from the prior year. Unfavorable weather impacted operations
at Caruthersville, resulting in a 10 percent decrease in revenue.
Nonetheless, the property continued to improve its operating margin to 12.8
percent, five percentage points higher than last year. |
