Press Release: Aztar Corporation
February 1, 2001
PHOENIX, AZ -- Aztar Corporation (NYSE: AZR) yesterday announced record fourth-quarter operating income and operating
cash flow for the quarter ended December 28, 2000. Highlights of the quarter were:
-- Earnings per share of 12 cents, diluted, compared with 10 cents
per share before extraordinary items a year earlier.
-- Revenues of $193.4 million, flat with the year-earlier level.
-- Operating income of $18.9 million, compared with $18.4 million.
-- Operating cash flow, as defined by earnings before interest, taxes,
depreciation, amortization and rent (EBITDAR), of $36.6 million,
compared with $36.5 million in the 1999 quarter. For the 2000 year,
operating cash flow was $186.6 million, a 16 percent increase from
the 1999 level. Operating cash flow has increased over the
year-earlier quarter in 19 of the last 20 quarters.
``We are pleased to be able to report higher earnings per share and increases in operating income, operating
cash flow, and operating margins in the fourth quarter,'' said Paul E. Rubeli, Aztar chairman of the board, president
and chief executive officer. ``We believe our operations and markets continue to be fundamentally sound, and we
are confident about the outlook for our results in 2001.
Balance Sheet Items
Long-term debt, including the current portion, was $465 million at year's end, down from $501 million at the prior
year's end. Cash and cash equivalents were $48 million compared to $54 million at the prior year's end. The company's
ratio of long-term debt to EBITDA was 2.7 times compared to 3.5 times at the end of fiscal 1999. There were 38.7
million shares outstanding at the end of the quarter.
Tropicana Atlantic City
Tropicana Casino and Resort in Atlantic City reported record fourth- quarter operating cash flow of $23.0 million,
compared to $22.8 million in the comparable 1999 quarter. Casino revenues were flat, although slot revenue was
up 4%. Other revenues were up 13%, driven primarily by a 20% increase in cash room revenue. This quarter marks
the seventeenth straight in which the property has produced quarterly operating cash flows higher than the year-
earlier quarter. Operating cash flow at the Atlantic City Tropicana during 2000 was $112.6 million, up 11% from
the prior year.
Tropicana Las Vegas
Tropicana Resort and Casino in Las Vegas reported record fourth-quarter operating cash flow of $6.3 million, up
43% from $4.4 million in the 1999 fourth quarter. Revenues increased 3%. Operating cash flow margin was 17.7%,
compared with 12.7% in the year-earlier quarter. Occupancy for the quarter was 92%, six points higher than in the
year-earlier quarter. During 2000, the Las Vegas Tropicana generated a record $28.0 million of operating cash flow,
up 85% from the prior year.
Ramada Express Laughlin
Ramada Express Hotel and Casino in Laughlin, Nevada reported operating cash flow of $3.7 million, down from $4.9
million in the year-earlier quarter. During 2000, the Ramada Express generated $21.7 million of operating cash
flow, up 5% from 1999. Revenues in the fourth quarter were down 5%, and the property's room occupancy rate was
down nearly 5 percentage points from the year-earlier quarter. Seniors are an important customer segment at the
Ramada Express, and we believe that their visitation patterns were altered in the fourth quarter by concerns, fostered
during the election period, about social security, health care costs, and energy prices. However, revenues in the
month of January 2001 have returned to prior-year levels, with hotel occupancy of 88%, up 3 points from January
of 2000.
Casino Aztar Evansville
Casino Aztar, the company's riverboat casino in Evansville, Indiana, generated fourth-quarter operating cash flow
of $6.1 million, compared with $7.0 million in the year-earlier period. Operating cash flow during 2000 was $33.1
million, flat with 1999. The company believes that the 5% decrease in revenues during the fourth quarter can be
largely attributed to the severe winter weather in southwestern Indiana during December. Casino revenues in the
month of January 2001 have returned to prior-year levels.
Casino Aztar Caruthersville
Casino Aztar, the company's riverboat casino in Caruthersville, Missouri, reported $596,000 of fourth quarter operating
cash flow, compared with $703,000 in the year-earlier period, with severe winter weather in December adversely
affecting results. Operating cash flow for the year 2000 was $3.2 million, up 23% from the prior year. Casino revenues
in the month of January 2001 have returned to prior-year levels.
Stock Repurchase
During the fourth quarter of 2000, the company purchased 1.2 million shares of Aztar common stock at prices ranging
from $11.63 per share to $15.44 per share at an average price of $14.39 per share. From the beginning of the share
repurchase program in May 1999 through 2000, the company purchased 8.7 million shares at prices ranging from $6.69
to $15.63 at an average price of $11.49.
Year-to-date Results
For fiscal 2000, the company reported record revenues of $848.1 million, up 6% from 1999. Consolidated operating
cash flow was $186.6 million, a record, up 16% from $160.6 million; operating cash flow margin was 22.0%, up from
20.1%. Operating income was $115.5 million, a record, up 29% compared with $89.6 million a year earlier. Income
before the effects of a non- recurring tax benefit of $7.5 million in 2000 was $45.6 million, equivalent to $1.05
per share, diluted, compared to the year-earlier $22.1 million, or $0.46 per share, diluted, before an extraordinary
loss of $15.7 million.
Accounting Periods
The company uses a 52/53-week fiscal year ending on the Thursday nearest to December 31. The company's 2000 fiscal
year, which began on December 31, 1999, ended on December 28, 2000, and included 52 weeks. The company's 2001 fiscal
year, which began on December 29, 2000, and ends on January 3, 2002, will include 53 weeks.
Conference Call
The company's fiscal fourth-quarter 2000 earnings conference call will be broadcast live on the Internet beginning
at 11 a.m. Eastern Standard Time today. The company intends in that call to provide information about its capital
expenditure and development plans for 2001. Individuals may access the live audio webcast through our website at
www.aztar.com and at www.streetfusion.com. The call also will be available
on replay through our corporate website and streetfusion.com for 30 days following the call.
Selected Results by Property ($ in millions, except ADR*)
Fourth Quarter Fiscal Year
2000 1999 2000 1999
(unaudited)
Tropicana Atlantic City
Revenue $107.3 $105.8 $465.9 $431.9
Operating income $15.8 $15.6 $84.0 $73.4
EBITDAR ** $23.0 $22.8 $112.6 $101.8
EBITDAR margin 21.4% 21.6% 24.2% 23.6%
Rent $0.6 $0.6 $2.5 $2.7
Occupancy 90.8% 90.7% 93.7% 89.1%
ADR $79.12 $76.52*** $81.22 $79.17***
Tropicana Las Vegas
Revenue $35.6 $34.7 $152.9 $144.2
Operating income $1.9 $(0.7) $8.8 $(4.9)
EBITDAR $6.3 $4.4 $28.0 $15.1
EBITDAR margin 17.7% 12.7% 18.3% 10.5%
Rent $2.5 $2.5 $10.1 $9.9
Occupancy 92.4% 86.2% 96.0% 93.8%
ADR $69.39 $69.85*** $69.79 $66.36***
Ramada Express Laughlin
Revenue $21.7 $22.9 $97.0 $94.0
Operating income $2.1 $3.4 $15.8 $15.0
EBITDAR $3.7 $4.9 $21.7 $20.6
EBITDAR margin 17.0% 21.2% 22.4% 21.9%
Rent $0.1 $0.2 $0.4 $0.7
Occupancy 77.0% 81.8% 84.8% 87.2%
ADR $24.48 $24.36 $26.89 $26.19
Casino Aztar Evansville
Revenue $23.5 $24.8 $108.0 $105.8
Operating income $2.4 $3.7 $19.1 $19.7
EBITDAR $6.1 $7.0 $33.1 $33.0
EBITDAR margin 26.2% 28.6% 30.6% 31.2%
Rent $1.1 $0.9 $3.8 $3.5
Occupancy 68.3% 69.8% 79.4% 76.6%
ADR $63.83 $65.16 $64.03 $68.43
Casino Aztar Caruthersville
Revenue $5.3 $6.1 $24.3 $24.4
Operating income $(0.1) $(0.2) $0.2 $(0.6)
EBITDAR $0.6 $0.7 $3.2 $2.6
EBITDAR margin 11.3% 11.6% 13.4% $10.6%
Rent $0 $0 $0 $0
Corporate
Operating income $(3.2) $(3.4) $(12.4) $(13.0)
EBITDAR $(3.1) $(3.3) $(12.0) $(12.5)
Rent $0.1 $0.1 $0.4 $0.3
Consolidated
Revenue $193.4 $194.3 $848.1 $800.3
Operating income $18.9 $18.4 $115.5 $89.6
EBITDAR $36.6 $36.5 $186.6 $160.6
EBITDAR margin 18.9% 18.8% 22.0% 20.1%
Rent $4.4 $4.3 $17.2 $17.1
* ADR = Average Daily Rate
** EBITDAR = Earnings before interest, taxes, depreciation,
amortization & rent
*** 1999 ADR restated to be comparable with the 2000 presentation
Aztar is a publicly traded company that operates Tropicana Casino and Resort in Atlantic City, New Jersey, Tropicana
Resort and Casino in Las Vegas, Nevada, Ramada Express Hotel and Casino in Laughlin, Nevada, Casino Aztar in Caruthersville,
Missouri, and Casino Aztar in Evansville, Indiana.
The disclosures herein include statements that are 'forward looking' within the meaning of federal securities law.
These forward-looking statements generally can be identified by phrases such as the company ``believes,'' ``expects,''
``anticipates,'' ``foresees,'' ``forecasts,'' ``estimates,'' or other words or phrases of similar import. Such
forward-looking information involves important risks and uncertainties that could significantly affect results
in the future and, accordingly, such results may differ from those expressed in any forward-looking statements
made by or on behalf of the company. These risks and uncertainties include, but are not limited to, those relating
to economic conditions, the cyclical nature of the hotel business and the gaming business, competition, the effects
of weather, legislative and regulatory matters, and reliance on key personnel. For more information, review the
company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K
for December 30, 1999 and certain registration statements of the company.
Aztar Corporation and Subsidiaries
Consolidated Statements of Operations
For the periods ended December 28, 2000 and December 30, 1999
(in thousands, except per share data)
Fourth Quarter Year
2000 1999 2000 1999
(Unaudited)
Revenues
Casino $153,529 $157,266 $677,121 $646,918
Rooms 16,849 15,537 72,829 65,268
Food and beverage 13,111 12,275 57,033 53,283
Other 9,907 9,191 41,105 34,845
193,396 194,269 848,088 800,314
Costs and expenses
Casino 70,068 71,139 296,943 286,934
Rooms 9,066 8,411 38,128 35,361
Food and beverage 13,825 13,198 56,868 54,760
Other 7,481 7,412 33,129 30,258
Marketing 21,644 21,158 90,855 86,597
General and
administrative 18,324 18,601 77,150 74,102
Utilities 3,528 3,290 15,132 14,124
Repairs and maintenance 6,084 6,566 25,282 26,129
Provision for
doubtful accounts 831 1,983 4,035 7,753
Property taxes and
insurance 5,917 5,953 23,914 23,672
Rent 4,425 4,309 17,253 17,122
Depreciation and
amortization 13,280 13,808 53,924 53,908
174,473 175,828 732,613 710,720
Operating income 18,923 18,441 115,475 89,594
Interest income 353 235 1,348 1,481
Interest expense (10,244) (10,495) (41,913) (52,763)
Income before other
items, income taxes
and extraordinary items 9,032 8,181 74,910 38,312
Equity in
unconsolidated
partnership's loss (1,049) (1,005) (4,215) (3,961)
Income before income
taxes and extraordinary
items 7,983 7,176 70,695 34,351
Income taxes (2,795) (2,373) (17,578) (12,222)
Income before
extraordinary items 5,188 4,803 53,117 22,129
Extraordinary items,
net of income taxes -- (11,285) -- (15,740)
Net income $5,188 $(6,482) $53,117 $6,389
Earnings per common share:
Income before
extraordinary items $.12 $.11 $1.28 $.48
Extraordinary items,
net of income taxes -- (.26) -- (.35)
Net income $.12 $(.15) $1.28 $.13
Earnings per common share
assuming dilution:
Income before
extraordinary items $.12 $.10 $1.23 $.46
Extraordinary items,
net of income taxes -- (.25) -- (.34)
Net income $.12 $(.15) $1.23 $.12
Weighted-average common
shares applicable to:
Earnings per common
share 39,299 43,430 40,862 44,598
Earnings per common
share assuming
dilution 41,075 45,320 42,577 46,197
SOURCE: Aztar Corporation