-----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, RG/ZsqVtqDAkHHjaCTvl2cio9by3qBBEADhxm3ied98CFpTO7gT9pW3OnpuOpCM7 OlsiGAq5PDekQ9Jojlviww== 0000852807-05-000040.txt : 20051019 0000852807-05-000040.hdr.sgml : 20051019 20051019160408 ACCESSION NUMBER: 0000852807-05-000040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051019 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051019 DATE AS OF CHANGE: 20051019 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12092 FILM NUMBER: 051145218 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 k8oct19.htm FORM 8-K 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)     October 19, 2005

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

Delaware
(State or other jurisdiction of
incorporation)

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)




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


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

    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  [ ]

  [ ]

  [ ]


  [ ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

 

ITEM 2.02.

Results of Operations and Financial Condition

  
 

This Current Report on Form 8-K is being furnished to disclose the press release issued by the registrant on October 19, 2005. The purpose of the press release, which is furnished as Exhibit 99, was to announce the results for the third quarter ended September 29, 2005.
 

The information in this Current Report on Form 8-K, including the exhibit included herewith, is furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.

ITEM 9.01.

Financial Statements and Exhibits
 

(d)

Exhibits:
 

99

Press release dated October 19, 2005, announcing results for the third quarter ended September 29, 2005.

 

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



NEIL A. CIARFALIA       
Neil A. Ciarfalia
Chief Financial Officer,
Vice President and Treasurer

 

Date:  October 19, 2005



EXHIBIT INDEX

Exhibit
Number


Description

99

Press release dated October 19, 2005, announcing results for the third quarter ended September 29, 2005.


2

 EX-99 2 exhibit99.htm EXHIBIT 99 Exhibit 99

Exhibit 99

AZTAR

News Release  

FOR IMMEDIATE RELEASE

AZTAR REPORTS THIRD-QUARTER 2005 RESULTS

        PHOENIX, Arizona-October 19, 2005-Aztar Corporation (NYSE:AZR) today reported financial results for its 2005 third quarter, which ended on September 29, 2005; the fiscal 2004 quarter had ended on September 30, 2004. Consolidated EBITDA was $63.4 million for the third quarter of 2005; in the 2004 third quarter, EBITDA was $46.4 million. Diluted earnings per share in the 2005 third quarter were 51 cents, compared with 36 cents in the 2004 third quarter.
        The momentum generated by the major expansion of Tropicana Atlantic City that opened in late 2004 continued to accelerate in the third quarter of 2005, with revenue up 29 percent and EBITDA up nearly 59 percent. Ramada Express led our other properties with a 28 percent increase in EBITDA, while our riverboat casinos had EBITDA growth of 6 percent. Tropicana Las Vegas suffered a 3 percent decline in EBITDA as a result of lower non-gaming revenue.
         "The drivers at the expanded Atlantic City Tropicana during the third quarter were all in full gear and the property led the market in revenue growth in all casino products," said Robert M. Haddock, Aztar Chairman of the Board, President and Chief Executive Officer. "Table games win was up 40 percent and slot revenue grew 21 percent. Even with a 30 percent increase in room capacity, the hotel ran 97 percent occupancy at an average daily rate that was 17 percent higher than a year earlier. EBITDA grew to over $41 million on a five-percentage-point increase in margin. It was a performance that employees of the Trop rightly deserve to be proud of."
Tropicana Atlantic City Expansion
        The Tropicana Atlantic City expansion includes a new 502-room hotel tower; The Quarter at Tropicana, which is a 200,000-square-foot dining, entertainment and retail complex; a 2,400-space parking garage and 20,000 square feet of meeting and conference space.

Aztar Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 2

Other Income (Expense)
        Other income (expense) consists of insurance recoveries for the rebuilding of the damaged portion of the Tropicana Atlantic City expansion after the construction accident that occurred on October 30, 2003, net of direct costs to obtain the recoveries.
Capital Expenditures
        In the third quarter of 2005, purchases of property and equipment totaled $13 million. Approximately $8 million of the total was spent on routine expenditures, and $5 million went for development.
Year-to-Date Results
        For the first three quarters of 2005, the company reported EBITDA of $163.4 million, compared with $139.8 million in the comparable 2004 period. Diluted earnings per share through three quarters of 2005 were $1.19. Diluted earnings per share were 71 cents in the 2004 period, which is after 18 cents associated with a loss on early retirement of debt and 31 cents associated with an adverse court ruling regarding income taxes in Indiana and which included 10 cents of construction accident insurance recoveries net of expenses and preopening costs.
Conference Call
        Our third-quarter 2005 earnings conference call will be broadcast live on the Internet beginning at 4:30 p.m. Eastern Daylight Time on Wednesday, October 19, 2005. 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 Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 3

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

                                                      

 

     

Third Quarter

  

                   

   

Year to Date

  

 

 

2005

  

 

2004

    

2005

  

 

2004

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

Tropicana Atlantic City

 

    

 

 

              

 

    

  

Revenue

 

$

137.7

 

 

$

106.4

    

$

372.1

  

 

$

294.6

  

EBITDA

 

$

41.4

 

 

$

26.1

    

$

93.4

  

 

$

74.0

  

Depreciation and amortization

 

$

11.1

 

 

$

8.3

    

$

32.7

  

 

$

24.3

  

Operating income

 

$

30.3

  

 

$

17.8

    

$

60.7

  

 

$

49.7

  

 

 

    

 

 

              

 

    

  

EBITDA margin

 

  

30.1

%

 

  

24.5

%

    

25.1

%

 

  

25.1

%

Operating income margin

 

  

22.0

%

    

16.7

%

    

16.3

%

 

  

16.9

%
                                 

Occupancy

 

  

96.9

%

 

  

97.1

%

    

90.0

%

 

  

92.5

%

ADR

 

$

113.33  

 

$

96.60  

  

$

98.26  

 

$

87.48  
                                 

Tropicana Las Vegas

 

  

 

  

 

  

 

  

 

  

 

  

 

   

  

  

Revenue

 

$

40.0

  

 

$

40.5

    

$

124.0

  

 

$

123.2

  

EBITDA

 

$

8.5

  

 

$

8.8

    

$

30.2

  

 

$

28.1

  

Depreciation and amortization

 

$

1.4

  

 

$

1.5

    

$

4.3

  

 

$

4.4

  

Operating income

 

$

7.1

  

 

$

7.3

    

$

25.9

  

 

$

23.7

  

 

 

      

 

              

 

    

  

EBITDA margin

 

  

21.3

%

 

  

21.7

%

    

24.4

%

 

  

22.8

%

Operating income margin

 

  

17.8

%

 

  

18.0

%

    

20.9

%

 

  

19.2

%

 

 

      

 

              

 

    

  

Occupancy

 

  

98.1

%

 

  

100.1

%

    

98.5

%

 

  

99.4

%

ADR

 

$

75.08  

 

$

73.88  

  

$

88.91  

 

$

81.28  
                 

Ramada Express Laughlin

 

  

         

  

 

  

          

  

                   

  

          

  

  

   

         

  

Revenue

 

$

22.6

  

 

$

21.3

  

  

$

72.5

  

  

$

68.3

  

EBITDA

 

$

5.5

  

 

$

4.3

  

  

$

20.3

  

  

$

17.5

  

Depreciation and amortization

 

$

1.8

  

 

$

1.6

  

  

$

5.1

  

  

$

4.7

  

Operating income

 

$

3.7

  

 

$

2.7

  

  

$

15.2

  

  

$

12.8

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

24.3

%

 

  

20.2

%

    

28.0

%

    

25.6

%

Operating income margin

 

  

16.4

%

 

  

12.7

%

    

21.0

%

 

  

18.7

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

68.9

%

    

67.9

%

    

73.4

%

    

71.4

%

ADR

 

$

35.34  

 

$

33.76  

  

$

34.55  

  

$

32.72  
                 


Aztar Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 4

Casino Aztar Evansville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

34.0

  

 

$

33.5

  

  

$

103.0

  

  

$

98.9

  

EBITDA

 

$

10.3

  

 

$

9.9

  

  

$

31.6

  

  

$

29.6

  

Depreciation and amortization

 

$

1.7

  

 

$

1.8

  

  

$

5.4

  

  

$

4.6

  

Operating income

 

$

8.6

  

 

$

8.1

  

  

$

26.2

  

  

$

25.0

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

30.3

%

 

  

29.6

%

    

30.7

%

    

29.9

%

Operating income margin

 

  

25.3

%

 

  

24.2

%

    

25.4

%

 

  

25.3

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

93.0

%

 

  

93.4

%

    

90.2

%

    

89.0

%

ADR

 

$

63.29  

 

$

61.88  

  

$

63.64  

  

$

61.33  

 

 

    

  

 

    

  

      

  

      

  

Casino Aztar Caruthersville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

6.7

  

 

$

5.9

  

  

$

21.0

  

  

$

17.3

  

EBITDA

 

$

1.5

  

 

$

1.2

  

  

$

4.9

  

  

$

3.4

  

Depreciation and amortization

 

$

0.8

  

 

$

0.7

  

  

$

2.3

  

  

$

2.1

  

Operating income

 

$

0.7

  

 

$

0.5

  

  

$

2.6

  

  

$

1.3

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

22.4

%

 

  

20.3

%

    

23.3

%

    

19.7

%

Operating income margin

 

  

10.4

%

 

  

8.5

%

    

12.4

%

 

  

7.5

%

 

 

    

  

 

    

  

      

  

      

  

Corporate

 

    

  

 

    

  

      

  

      

  

EBITDA

 

$

( 3.8

)

 

$

( 3.9

)

  

$

( 17.0

)

  

$

( 12.8

)

Depreciation and amortization

 

$

0.0

  

 

$

0.0

  

  

$

0.0

  

  

$

0.0

  

Operating income

 

$

( 3.8

)

 

$

( 3.9

)

  

$

( 17.0

)

  

$

( 12.8

)
                                 

Consolidated

 

 

  

  

 

  

          

  

 

  

  

  

 

  

         

  

Revenue

 

$

241.0

 

 

$

207.6

    

$

692.6

  

 

$

602.3

  

EBITDA

 

$

63.4

 

 

$

46.4

    

$

163.4

  

 

$

139.8

  

Depreciation and amortization

 

$

16.8

 

 

$

13.9

    

$

49.8

  

 

$

40.1

  

Operating income

 

$

46.6

 

 

$

32.5

    

$

113.6

  

 

$

99.7

  

Net income

 

$

19.4

 

 

$

13.2

    

$

44.7

  

 

$

26.2

  
                                 

EBITDA margin

 

  

26.3

%

 

  

22.4

%

    

23.6

%

 

  

23.2

%

Operating income margin

 

  

19.3

%

 

  

15.7

%

    

16.4

%

 

  

16.6

%

Net income margin

    

8.0

%

    

6.4

%

    

6.5

%

    

4.3

%

EBITDA Explanation and Reconciliation

EBITDA is net income before income taxes, loss on early retirement of debt, interest expense,

Aztar Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 5

interest income, other income (expense), and depreciation and amortization. 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). Management uses EBITDA as a measure to compare operating results among our properties and between accounting periods. We manage cash and finance our operations at the corporate level. We manage the allocation of capital among properties at the corporate level. We also file a consolidated income tax return. Management accordingly believes EBITDA is useful as a measure of operating results at the property level because it reflects the results of operating decisions at that level separated from the effects of tax and financing decisions that are managed at the corporate level. We also use EBITDA as the primary operating performance measure in our bonus programs for executive officers. Management also believes that EBITDA is a commonly used measure of operating performance in the gaming industry and is an important basis for the valuation of gaming companies. Our calculation of EBITDA may not be comparable to similarly titled measures reported by other companies and, therefore, any such differences must be considered when comparing performance among different companies. While management believes EBITDA provides a useful perspective for some purposes, EBITDA has material limitations as an analytical tool. For example, among other things, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect the requirements for such replacements. Other income (expense), interest expense, net of interest income, loss on early retirement of debt, and income taxes are also not reflected in EBITDA. Therefore, management does not consider EBITDA in isolation, and it should not be considered as a substitute for measures determined in accordance with GAAP. A reconciliation of EBITDA with operating income and net income as determined in accordance with GAAP is shown below (in millions).

Aztar Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 6

                                                      

 

     

Third Quarter

  

                   

   

Year to Date

  

 

 

2005

  

 

2004

    

2005

  

 

2004

  

 

 

      

(unaudited)

    

    

(unaudited)

  

EBITDA

                                

    Tropicana Atlantic City

  

$

41.4

    

$

26.1

    

$

93.4

    

$

74.0

  

    Tropicana Las Vegas

    

8.5

      

8.8

      

30.2

      

28.1

  

    Ramada Express Laughlin

    

5.5

      

4.3

      

20.3

      

17.5

  

    Casino Aztar Evansville

    

10.3

      

9.9

      

31.6

      

29.6

  

    Casino Aztar Caruthersville

  

        1.5

    

       1.2

    

       4.9

    

       3.4

  

      Property EBITDA

    

67.2

      

50.3

      

180.4

      

152.6

  

Corporate

    

( 3.8

)

    

( 3.9

)

    

( 17.0

)

    

( 12.8

)

Depreciation and amortization

  

    ( 16.8

)

  

    ( 13.9

)

  

    ( 49.8

)

  

    ( 40.1

)

Operating income

    

46.6

      

32.5

      

113.6

      

99.7

  

Other income (expense)

    

( 0.3

)

    

0.3

      

4.1

      

0.3

  

Interest income

    

0.5

      

0.2

      

1.0

      

0.6

  

Interest expense

    

( 14.2

)

    

( 8.9

)

    

( 42.3

)

    

( 26.3

)

Loss on early retirement of debt

  

--

    

   ( 1.7

)

  

--

    

    ( 10.4

)

Income taxes

  

    ( 13.2

)

  

     ( 9.2

)

  

    ( 31.7

)

  

    ( 37.7

)

Net income

  

$

19.4

    

$

13.2

    

$

44.7

    

$

26.2

  

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 prospective new competition in Pennsylvania, uncertainties related to the extent and timing of our recoveries from our insurance carriers for our various losses suffered in connection with the accident on October 30, 2003, the extent to which our existing operations will continue to be adversely affected

Aztar Third-Quarter 2005 Earnings Release
October 19, 2005                                Page 7

by the ongoing effects of the accident on October 30, 2003, the extent to which we realize revenue and EBITDA increases as a result of the Tropicana Atlantic City expansion, our ability to execute our development plans, estimates of development costs and returns on development capital, weather, litigation outcomes, judicial actions, labor negotiations, legislative matters and referenda including the potential legalization of gaming in Maryland and New York and VLTs at the Meadowlands in New Jersey, 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 December 30, 2004 and certain registration statements of the company.

For additional information, please contact Joe Cole, Vice President, Corporate Communications, at 602-381-4111.

Aztar Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the periods ended September 29, 2005 and September 30, 2004
(in thousands, except per share data)

                                                                                     

 

          Third Quarter         

 

  

          Nine Months          

  

 

 

     2005     

 

  

     2004     

 

  

     2005     

 

  

     2004     

  

Revenues (a)

  

 

               

 

 

    

 

 

 

               

 

 

      

    

Casino

 

$

184,254

 

  

$

159,789

 

  

$

528,909

 

  

$

464,127

  

    

Rooms

 

  

26,997

 

    

22,751

 

    

80,223

 

    

66,215

  

 

Food and beverage

 

  

14,973

 

    

14,340

 

    

45,061

 

    

42,119

  

 

Other

 

       14,756

 

  

       10,742

 

  

      38,418

 

  

      29,873

  

 

  

 

240,980

 

  

207,622

 

  

692,611

 

  

602,334

  

Costs and expenses (a)

 

    

 

      

 

      

 

        

 

Casino

 

  

71,380

 

    

65,424

 

    

208,899

 

    

192,044

  

 

Rooms

 

  

12,538

 

    

11,455

 

    

36,232

 

    

32,072

  

 

Food and beverage

 

  

14,139

 

    

13,867

 

    

42,681

 

    

40,789

  

 

Other

 

  

8,176

 

    

7,708

 

    

24,275

 

    

22,650

  

 

Marketing

 

  

21,937

 

    

18,773

 

    

71,074

 

    

55,268

  

 

General and administrative

 

  

21,897

 

    

20,609

 

    

71,116

 

    

61,934

  

 

Utilities

 

  

7,747

 

    

6,160

 

    

20,062

 

    

14,965

  

 

Repairs and maintenance

 

  

7,036

 

    

6,700

 

    

20,402

 

    

19,335

  

 

Provision for doubtful accounts

 

  

636

 

    

355

 

    

1,343

 

    

848

  

 

Property taxes and insurance

 

  

8,696

 

    

7,021

 

    

24,989

 

    

22,051

  

 

Rent

 

  

1,949

 

    

2,220

 

    

5,972

 

    

6,468

  

 

Construction accident related

 

  

1,383

 

    

1,808

 

    

2,652

 

    

3,423

  
 

Construction accident insurance recoveries

  

                --

 

  

       ( 2,000

)

  

       ( 526

)

  

    ( 10,500

)

 

Depreciation and amortization 

 

       16,821

 

  

       13,894

 

  

       49,848

 

  

       40,129

  
 

Preopening costs

  

                --

    

         1,123

    

                --

    

         1,123

  

 

 

 

     194,335

 

  

     175,117

 

  

     579,019

 

  

     502,599

  

 

 

    

 

      

 

      

 

        

Operating income

 

  

46,645

 

    

32,505

      

113,592

 

    

99,735

  

 

 

    

 

              

 

        
 

Other income (expense)

    

( 267

)

    

315

      

4,161

      

315

  

 

Interest income

 

  

465

 

    

199

      

1,001

 

    

578

  

 

Interest expense

 

  

( 14,256

)

    

( 8,883

)

    

( 42,324

)

    

( 26,292

)

 

Loss on early retirement of debt

 

                --

    

       ( 1,751

)

  

                --

    

     ( 10,372

)
                           

Income before income taxes

 

  

32,587

 

    

22,385

      

76,430

 

    

63,964

  

 

 

    

 

              

 

        

 

Income taxes

 

     ( 13,204

)

  

       ( 9,191

)

  

     ( 31,683

)

  

     ( 37,756

)
                           

Net income

 

$

19,383

 

  

$

13,194

    

$

44,747

 

  

$

26,208

  

    

 

 

========

    

========

    

========

 

  

========

  

 

 

    

 

              

 

        

Net income per common share

 

$

.54

 

  

$

.37

    

$

1.25

 

  

$

.74

  

Net income per common share assuming dilution

 

$

.51

 

  

$

.36

    

$

1.19

 

  

$

.71

  

Weighted-average common shares applicable to:

 

    

 

              

 

        

 

Net income per common share

 

  

35,642

 

    

34,617

      

35,190

 

    

34,498

  

    

Net income per common share assuming dilution

 

  

37,351

 

    

36,548

      

37,065

 

    

36,448

  

____________________________________________

(a)

The Company makes cash promotional offers to certain of its customers, including cash rebates as part of loyalty programs generally based on an individual's level of gaming play. In the first quarter of 2005, the Company concluded that it was appropriate to classify these costs as a reduction in casino revenue. Previously, these costs were classified primarily as a casino expense. Accordingly, the Company has revised the classification of these costs as a reduction in casino revenue for the third quarter and nine months ended September 29, 2005 in its Consolidated Statement of Operations. The Company has also made corresponding adjustments to its Consolidated Statement of Operations for the third quarter and nine months ended September 30, 2004 to classify $7,842 and $21,155, respectively of these costs, previously classified as an expense as a reduction in casino revenue. This revision in classification had no effect on operating income or net income in the Consolidated Statements of Op erations for any period.

 


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

                                                                                      

September 29, 2005 

  

December 30, 2004

Assets

 

                 

        

  

Cash and cash equivalents

 

$

54,061

    

$

52,908

  

  

Other current assets

 

          55,227

    

          77,646

  

  

  

Total current assets

 

  

109,288

      

130,554

  

  

Investments

 

  

24,476

      

23,602

  

  

Property and equipment

 

  

1,241,511

      

1,239,146

  
 

Intangible assets

    

33,915

      

34,380

  

  

Other assets

 

          85,408

    

          83,958

  

  

 

$

1,494,598

    

$

1,511,640

  

  

 

=========

    

=========

  

  

 

              

Liabilities and Shareholders' Equity 

 

              

  

Current portion of long-term debt

 

$

1,293

    

$

1,292

  

  

Other current liabilities

 

        124,070

    

        143,087

  

  

  

Total current liabilities

 

  

125,363

      

144,379

  
 

Long-term debt

    

682,812

      

731,253

  
 

Other long-term liabilities

    

57,908

      

64,803

  

  

Series B convertible preferred stock

 

  

4,722

      

4,914

  

  

Shareholders' equity

 

        623,793

    

        566,291

  

  

 

$

1,494,598

    

$

1,511,640

  

  

 

=========

    

=========

  

 

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