-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ft9+TabfIGfOtgav5vY1NANFcwWGKFaam2ps+Abgz8LMOi0VT9DXK4uFzKwwE7ae UuQ5YLPPnbyt5op3pM+WbQ== 0000852807-03-000037.txt : 20030723 0000852807-03-000037.hdr.sgml : 20030723 20030723160535 ACCESSION NUMBER: 0000852807-03-000037 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AZTAR CORP CENTRAL INDEX KEY: 0000852807 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 860636534 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12092 FILM NUMBER: 03798416 BUSINESS ADDRESS: STREET 1: 2390 E CAMELBACK RD STE 400 CITY: PHOENIX STATE: AZ ZIP: 85016-3452 BUSINESS PHONE: 6023814100 MAIL ADDRESS: STREET 1: 2390 E. CAMELBACK RD STE 400 CITY: PHOENIX STATE: AZ ZIP: 85016-3452 8-K 1 k8july23.htm FORM 8K







SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
                   

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):
July 23, 2003
                 

AZTAR CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or
organization)

1-5440
(Commission File Number)

86-0636534
(I.R.S. Employer
Identification Number)


2390 East Camelback Road, Suite 400,
Phoenix, Arizona
(Address of principal executive offices)

  


85016
(Zip Code)


(602) 381-4100
(Registrant's telephone number, including area code)



Not Applicable
(Former name or former address, if changed since last report)

 

 

ITEM 7.

Financial Statements, Pro Forma Financial Information and Exhibits
 

(c)

Exhibits:
 

99

Press release dated July 23, 2003, announcing results for the second quarter ended July 3, 2003.

ITEM 9.

Regulation FD Disclosure

  
 

This Current Report on Form 8-K is being furnished to disclose the press release issued by the registrant on July 23, 2003. The purpose of the press release, which is furnished as Exhibit 99 hereto pursuant to Item 12. of Form 8-K, was to announce the results for the second quarter ended July 3, 2003.


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

AZTAR CORPORATION



ROBERT M. HADDOCK       
Robert M. Haddock
President and
Chief Financial Officer

 

Date:  July 23, 2003







EXHIBIT INDEX

Exhibit
Number


Description

99

Press release dated July 23, 2003, announcing results for the second quarter ended July 3, 2003.




2

 EX-99 3 exhibit99.htm EXHIBIT 99

Exhibit 99

AZTAR

News Release  

CONTACT: Joe Cole

602/381-4111

 

 

FOR IMMEDIATE RELEASE

AZTAR REPORTS SECOND-QUARTER 2003 RESULTS

          PHOENIX, Arizona - July 23, 2003 - Aztar Corporation (NYSE: AZR) today announced results for its fiscal second quarter of 2003, including record levels of operating income and EBITDA. Highlights of the quarter, which ended on July 3, 2003, were:

  • Earnings per share of 51 cents, diluted, compared with 42 cents per share in the year-earlier quarter.
  • Operating income of $40.0 million versus $39.6 million a year earlier.
  • EBITDA of $53.0 million compared with $52.3 million a year earlier.

          "This was a record-breaking quarter, led by solid results from our operations at Tropicana Atlantic City and Casino Aztar in Evansville, Indiana," said Paul E. Rubeli, Aztar chairman of the board and chief executive officer. "We are especially pleased to note the strength of the results at Tropicana Atlantic City, where our expansion project is proceeding nicely and is on schedule to open by the end of March 2004."

          The expansion of Tropicana Atlantic City will create the largest hotel, third largest casino and only indoor Las Vegas-style dining/entertainment/retail complex in Atlantic City. The expansion includes 502 additional hotel rooms, 20,000 square feet of meeting space, 2,400 parking spaces, and The Quarter, the project's centerpiece, a 200,000-square-foot dining, entertainment and retail center. Over 40 new outlets will occupy The Quarter, which, when added to the over 20 already existing, will result in over 60 dining, entertainment and retail choices at the Tropicana.

          The company recently completed enhancements to other areas of the Tropicana, including a major renovation of the Tropicana's Boardwalk façade and a new Grand Entryway on Brighton Avenue. The Marketplace at the Boardwalk, containing an additional 280 slot machines and an assortment of dining and retail facilities, also opened during the quarter.

Aztar Second-quarter 2003 Earnings Release

July 23, 2003                 Page 2

Balance Sheet Items

          Cash and cash equivalents were $59 million at the end of the second quarter of 2003 compared with $45 million at the end of the first quarter of 2003. Long-term debt, including the current portion, was $582 million at the end of the second quarter of 2003, compared with $546 million at the end of the first quarter of 2003. There were 34.7 million shares of common stock outstanding at the end of the second quarter of 2003.

Share Repurchase

          The company announced on December 11, 2002, that its board of directors had authorized management to make discretionary repurchases of up to 4.0 million shares of its common stock, or approximately 10 percent of common stock outstanding at that time. During the second quarter of 2003, the company purchased 632,505 shares at an average price of $14.83 per share, bringing the total purchased in the program to 2,590,505 shares at an average price of $13.60 per share.

Capital Expenditures

          In the second quarter of 2003, purchases of property and equipment totaled $35 million. Approximately $10 million of the total was spent on routine expenditures, and $25 million (including $1.9 million of capitalized interest) went for development.

Year-to-date Results

          For the first half of 2003, the company reported EBITDA of $97.1 million, compared with $96.9 million in the year-earlier half; EBITDA margin was 23.3% compared with 23.2%. Operating income was $71.6 million compared with $71.7 million a year earlier. Net income for the 2003 first half was $32.3 million, equivalent to 87 cents per share, diluted, compared with $30.2 million and 77 cents per share, diluted, in the 2002 half.

Conference Call

          Our second-quarter 2003 earnings conference call will be broadcast live on the Internet beginning at 4:30 p.m. Eastern Daylight Time on Wednesday, July 23, 2003. Individuals may access the live audio webcast through our website at www.aztar.com. The call also will be available on replay through that website for one year following the call.

Aztar Second-quarter 2003 Earnings Release

July 23, 2003     Page 3

Selected Results ($ in millions, except ADR, which is Average Daily Rate)

                                                      

 

     

Second Quarter

  

                   

   

Year to Date

  

 

 

2003

  

 

2002

    

2003

  

 

2002

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

Tropicana Atlantic City

 

    

 

 

              

 

    

  

Revenue

 

$

115.6

 

 

$

114.5

    

$

219.7

  

 

$

224.8

  

EBITDA

 

$

34.2

 

 

$

32.8

    

$

59.3

  

 

$

60.5

  

Depreciation and amortization

 

$

7.7

 

 

$

7.1

    

$

15.0

  

 

$

14.2

  

Operating income

 

$

26.5

 

 

$

25.7

    

$

44.3

  

 

$

46.3

  

 

 

    

 

 

              

 

    

  

EBITDA margin

 

  

29.6

%

 

  

28.6

%

    

27.0

%

 

  

26.9

%

Operating income margin

 

  

22.9

%

 

  

22.4

%

    

20.2

%

 

  

20.6

%
                                 

Occupancy

 

  

95.7

%

 

  

96.1

%

    

93.8

%

 

  

95.2

%

ADR

 

$

87.34  

 

$

 87.35  

  

$

82.23  

 

$

84.16  

 

 

 

 

  

 

              

 

    

  

Tropicana Las Vegas

 

  

 

  

 

  

 

  

 

  

 

  

 

   

  

  

Revenue

 

$

38.5

  

 

$

39.2

    

$

76.8

  

 

$

75.3

  

EBITDA

 

$

6.5

  

 

$

8.3

    

$

12.7

  

 

$

12.5

  

Depreciation and amortization

 

$

1.6

  

 

$

1.8

    

$

3.3

  

 

$

3.5

  

Operating income

 

$

4.9

  

 

$

6.5

    

$

9.4

  

 

$

9.0

  

 

 

      

 

              

 

    

  

EBITDA margin

 

  

16.9

%

 

  

21.2

%

    

16.5

%

 

  

16.6

%

Operating income margin

 

  

12.7

%

 

  

16.6

%

    

12.2

%

 

  

12.0

%

 

 

      

 

              

 

    

  

Occupancy

 

  

98.9

%

 

  

97.7

%

    

98.3

%

 

  

95.2

%

ADR

 

$

68.51  

 

$

69.84  

  

$

69.80  

 

$

70.50  
                 

Ramada Express Laughlin

 

  

         

  

 

  

          

  

                   

  

          

  

  

   

         

  

Revenue

 

$

22.8

  

 

$

23.9

  

  

$

47.2

  

  

$

49.0

  

EBITDA

 

$

5.9

  

 

$

6.2

  

  

$

12.5

  

  

$

13.5

  

Depreciation and amortization

 

$

1.6

  

 

$

1.6

  

  

$

3.1

  

  

$

3.0

  

Operating income

 

$

4.3

  

 

$

4.6

  

  

$

9.4

  

  

$

10.5

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

25.9

%

 

  

25.9

%

    

26.5

%

    

27.6

%

Operating income margin

 

  

18.9

%

 

  

19.2

%

    

19.9

%

 

  

21.4

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

69.4

%

    

70.1

%

    

73.7

%

    

77.6

%

ADR

 

$

33.26  

 

$

36.50  

  

$

30.26  

  

$

31.84  
                 

 

Aztar Second-quarter 2003 Earnings Release

July 23, 2003     Page 4

                                                      

 

     

Second Quarter

  

                   

   

Year to Date

  

 

 

2003

  

 

2002

    

2003

  

 

2002

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

Casino Aztar Evansville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

31.7

  

 

$

27.4

  

  

$

61.9

  

  

$

55.3

  

EBITDA

 

$

8.9

  

 

$

6.9

  

  

$

18.0

  

  

$

14.7

  

Depreciation and amortization

 

$

1.4

  

 

$

1.5

  

  

$

2.7

  

  

$

3.1

  

Operating income

 

$

7.5

  

 

$

5.4

  

  

$

15.3

  

  

$

11.6

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

28.1

%

 

  

25.2

%

    

29.1

%

    

26.6

%

Operating income margin

 

  

23.7

%

 

  

19.7

%

    

24.7

%

 

  

21.0

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

86.0

%

 

  

85.1

%

    

83.4

%

    

81.3

%

ADR

 

$

64.10  

 

$

65.72  

  

$

66.05  

  

$

66.05  

 

 

    

  

 

    

  

      

  

      

  

Casino Aztar Caruthersville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

5.9

  

 

$

6.1

  

  

$

11.9

  

  

$

12.7

  

EBITDA

 

$

1.1

  

 

$

1.2

  

  

$

2.3

  

  

$

2.4

  

Depreciation and amortization

 

$

0.7

  

 

$

0.7

  

  

$

1.4

  

  

$

1.4

  

Operating income

 

$

0.4

  

 

$

0.5

  

  

$

0.9

  

  

$

1.0

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

18.6

%

 

  

19.7

%

    

19.3

%

    

18.9

%

Operating income margin

 

  

6.8

%

 

  

8.2

%

    

7.6

%

 

  

7.9

%

 

 

    

  

 

    

  

      

  

      

  

Corporate

 

    

  

 

    

  

      

  

      

  

EBITDA

 

$

( 3.6

)

 

$

( 3.1

)

  

$

( 7.7

)

  

$

( 6.7

)

Depreciation and amortization

 

$

0.0

  

 

$

0.0

  

  

$

0.0

  

  

$

0.0

  

Operating income

 

$

( 3.6

)

 

$

( 3.1

)

  

$

( 7.7

)

  

$

( 6.7

)
                                 

Consolidated

 

 

          

  

 

  

          

  

 

  

          

  

 

  

         

  

Revenue

 

$

214.5

 

 

$

211.1

    

$

417.5

  

 

$

417.1

  

EBITDA

 

$

53.0

 

 

$

52.3

    

$

97.1

  

 

$

96.9

  

Depreciation and amortization

 

$

13.0

 

 

$

12.7

    

$

25.5

  

 

$

25.2

  

Operating income

 

$

40.0

 

 

$

39.6

    

$

71.6

  

 

$

71.7

  

Net income

 

$

18.8

 

 

$

16.5

    

$

32.3

  

 

$

30.2

  
                                 

EBITDA margin

 

  

24.7

%

 

  

24.8

%

    

23.3

%

 

  

23.2

%

Operating income margin

 

  

18.6

%

 

  

18.8

%

    

17.1

%

 

  

17.2

%

Net income margin

    

8.8

%

    

7.8

%

    

7.7

%

    

7.2

%


EBITDA Explanation and Reconciliation

EBITDA should not be construed as a substitute for either operating income or net income as they are determined in accordance with generally accepted accounting principles (GAAP). EBITDA information has been included because we believe it is a commonly used measure of operating performance in the gaming industry and an important basis for the valuation of gaming companies. Accordingly, we use EBITDA as the primary operating performance measure in our bonus programs for executive officers.

Aztar Second-quarter 2003 Earnings Release

July 23, 2003     Page 5

We also use EBITDA to evaluate the operating performance of our properties. The company has significant expenses, including depreciation and amortization, interest expense net of interest income, and income taxes, which are not reflected in EBITDA; we believe that the performance of our operating units is more appropriately measured before these expenses, since the allocation of capital in our company is decided by corporate management and is subject to the approval of the board of directors. In addition, we manage cash and finance our operations at the consolidated level and we file a consolidated income tax return. We do not consider EBITDA in isolation. Our calculation of EBITDA may not be comparable to similarly titled measures reported by other companies. A reconciliation of EBITDA with operating income and net income as determined in accordance with GAAP is shown below (in millions).

                                                      

 

     

Second Quarter

  

                   

   

Year to Date

  

 

 

2003

  

 

2002

    

2003

  

 

2002

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

EBITDA

  

$

53.0

    

$

52.3

    

$

97.1

    

$

96.9

  

Depreciation and amortization

  

    ( 13.0

)

  

    ( 12.7

)

  

    ( 25.5

)

  

    ( 25.2

)

Operating income

    

40.0

      

39.6

      

71.6

      

71.7

  

Interest income

    

0.2

      

0.2

      

0.4

      

0.6

  

Interest expense

    

( 9.2

)

    

( 10.7

)

    

( 18.8

)

    

( 21.1

)

Equity in unconsolidated

                               
 

partnership's loss*

    

0.0

      

0.0

      

0.0

      

( 0.5

)

Income taxes

  

    ( 12.2

)

  

    ( 12.6

)

  

    ( 20.9

)

  

    ( 20.5

)

Net income

  

$

18.8

    

$

16.5

    

$

32.3

    

$

30.2

  


* The company's share of interest expense and depreciation and amortization.

Margins
Margins are calculated as a percentage of revenue.

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," "targets," or other words or phrases of similar import. Similarly, statements herein that describe the company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Such forward-looking information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ materially 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 war and terrorist activities and other factors affecting discretionary consumer spending, economic conditions, the impact of new competition includ ing the Borgata, which opened in Atlantic City in July 2003, our ability to complete the Tropicana Atlantic City expansion on budget and on time, the success of "The Quarter," the ongoing benefit of dockside gaming in Indiana, our ability to execute our development plans, estimates of development costs and returns on development capital, weather, litigation outcomes, judicial actions, legislative matters and referenda including the potential legalization of gaming in Maryland, New York and Pennsylvania, and taxation including potential tax increases in Indiana, Missouri, Nevada and New Jersey. 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 January 2, 2003 and certain registration statements of the company.

 

 

Aztar Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the periods ended July 3, 2003 and July 4, 2002
(in thousands, except per share data)

                                                                                     

 

         Second Quarter        

 

  

             Six Months           

  

 

 

     2003     

 

  

     2002     

 

  

     2003     

 

  

     2002     

  

Revenues

  

 

               

 

 

 

               

 

 

 

               

 

 

 

               

  

    

Casino

 

$

169,830

 

  

$

164,994

 

  

$

331,336

 

  

$

329,640

  

    

Rooms

 

  

20,017

 

    

20,597

 

    

37,695

 

    

39,031

  

 

Food and beverage

 

  

14,638

 

    

14,646

 

    

29,027

 

    

28,601

  

 

Other

 

      10,034

 

  

       10,864

 

  

      19,477

 

  

       19,823

  

 

  

 

    214,519

 

  

     211,101

 

  

    417,535

 

  

     417,095

  

Costs and expenses

 

    

 

      

 

      

 

        

 

Casino

 

  

71,479

 

    

68,820

 

    

141,175

 

    

138,290

  

 

Rooms

 

  

10,275

 

    

10,108

 

    

19,469

 

    

19,752

  

 

Food and beverage

 

  

13,764

 

    

13,774

 

    

27,438

 

    

27,021

  

 

Other

 

  

7,725

 

    

8,041

 

    

15,226

 

    

16,149

  

 

Marketing

 

  

19,657

 

    

20,500

 

    

38,804

 

    

39,611

  

 

General and administrative

 

  

18,615

 

    

17,700

 

    

37,635

 

    

38,110

  

 

Utilities

 

  

4,109

 

    

4,265

 

    

8,223

 

    

7,756

  

 

Repairs and maintenance

 

  

6,205

 

    

6,387

 

    

12,439

 

    

12,757

  

 

Provision for doubtful accounts

 

  

309

 

    

454

 

    

751

 

    

1,368

  

 

Property taxes and insurance

 

  

7,260

 

    

6,242

 

    

14,956

 

    

12,569

  

 

Rent

 

  

2,195

 

    

2,534

 

    

4,274

 

    

6,800

  

 

Depreciation and amortization 

 

      12,954

 

  

       12,668

 

  

      25,502

 

  

       25,207

  

 

 

 

    174,547

 

  

     171,493

 

  

    345,892

 

  

     345,390

  

 

 

    

 

      

 

      

 

        

Operating income

 

  

39,972

 

    

39,608

 

    

71,643

 

    

71,705

  

 

 

    

 

      

 

      

 

        

 

Interest income

 

  

204

 

    

253

 

    

396

 

    

641

  

 

Interest expense

 

  

( 9,213

)

    

  ( 10,735

)

    

( 18,766

)

    

( 21,090

)

 

Equity in unconsolidated partnership's loss

 

              -- 

 

  

               --

 

  

               --

 

  

          ( 458

)
                           

Income before income taxes

 

  

30,963

 

    

29,126

 

    

53,273

 

    

50,798

  

 

 

    

 

      

 

      

 

        

 

Income taxes

 

    ( 12,172

)

  

     ( 12,648

)

  

    ( 20,937

)

  

     ( 20,561

)
                           

Net income

 

$

18,791

 

  

$

16,478

 

  

$

32,336

 

  

$

30,237

  

    

 

 

========

    

========

 

  

========

 

  

========

  

 

 

    

 

      

 

      

 

        

Net income per common share

 

$

.53

 

  

$

.44

 

  

$

.90

 

  

$

.80

  

 

 

    

 

      

 

      

 

        

Net income per common share assuming dilution

 

$

.51

 

  

$

.42

 

  

$

.87

 

  

$

.77

  

 

 

    

 

      

 

      

 

        

Weighted-average common shares applicable to:

 

    

 

      

 

      

 

        

 

Net income per common share

 

  

35,015

 

    

37,291

 

    

35,602

 

    

37,089

  

    

Net income per common share assuming dilution

 

  

36,499

 

    

39,208

 

    

36,965

 

    

39,060

  

 

 

    

 

      

 

      

 

        

 


Aztar Corporation and Subsidiaries
Consolidated Balance Sheet Summaries (unaudited)
 (in thousands)

                                                                                      

July 3, 2003

  

January 2, 2003

Assets

 

                 

    

                  

 

  

Cash and cash equivalents

 

$

58,584

    

$

52,896

 

  

Other current assets

 

         54,350

    

          56,376

 

  

  

Total current assets

 

  

112,934

    

 

109,272

 

  

Investments

 

  

18,434

    

 

17,420

 

  

Property and equipment

 

  

1,069,911

    

 

1,025,059

 
 

Intangible assets

    

59,101

      

53,625

  

  

Other assets

 

         11,572

    

            5,306

 

  

 

$

1,271,952

    

$

1,210,682

 

  

 

=========

    

=========

 

  

 

        

 

  

 

Liabilities and Shareholders' Equity:  

 

        

 

  

 

  

Current portion of long-term debt

 

$

5,167

    

$ 

5,015

 

  

Other current liabilities

 

       119,471

    

        114,606

 

  

  

Total current liabilities

 

  

124,638

    

 

119,621

 
 

Long-term debt

    

577,299

      

524,066

  
 

Other long-term liabilities

    

48,430

      

46,040

  

  

Series B convertible preferred stock

 

  

5,429

    

 

5,601

 

  

Shareholders' equity

 

       516,156

    

        515,354

 

  

 

$

1,271,952

    

$

1,210,682

 

  

 

=========

    

=========

 


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