-----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, IBcD0UpWEeQ9NCzwOog9kq+67vG2eOxTLyHlkciOQ4F+Bw5MLJBUDE+ABrt54Nej umNNplDZhL02i8n6sR8hYg== 0000852807-06-000014.txt : 20060419 0000852807-06-000014.hdr.sgml : 20060419 20060419160418 ACCESSION NUMBER: 0000852807-06-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060419 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060419 DATE AS OF CHANGE: 20060419 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: 06767367 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 k8apr19.htm FORM 8K 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)     April 19, 2006

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 April 19, 2006. The purpose of the press release, which is furnished as Exhibit 99, was to announce the results for the first quarter ended March 31, 2006.
 

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 April 19, 2006, announcing results for the first quarter ended March 31, 2006.

 

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



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

 

Date:  April 19, 2006



EXHIBIT INDEX

Exhibit
Number


Description

99

Press release dated April 19, 2006, announcing results for the first quarter ended March 31, 2006.



2

 EX-99 2 exhibit99.htm EXHIBIT 99 EXHIBIT99

Exhibit 99

AZTAR

News Release  

FOR IMMEDIATE RELEASE

AZTAR REPORTS FIRST-QUARTER 2006 RESULTS

            PHOENIX, Arizona - April 19, 2006 - Aztar Corporation (NYSE: AZR) today reported financial results for its 2006 first quarter, which included consolidated revenues of $228.6 million, compared with $223.3 million in the year-earlier period. Property EBITDA was $62.6 million in the 2006 first quarter, compared with $53.6 million a year earlier. Reported diluted earnings per share were eight cents in the 2006 first quarter compared with 27 cents in the 2005 first quarter. Adjusted diluted earnings per share were 37 cents in the 2006 first quarter, which is after stock option compensation expense equivalent to two cents per share, compared with 29 cents in the 2005 first quarter.
            Robert M. Haddock, Aztar Chairman of the Board, President and Chief  Executive Officer, said: "Our properties delivered strong results in the quarter, with a significant rise in Property EBITDA after adjustments for insurance costs and recoveries. Moreover, the favorable comparison of Property EBITDA in 2006 versus 2005 is understated since the fiscal first quarter of 2005 included 91 days and a New Year's Eve from calendar 2004, which we estimated contributed Property EBITDA of approximately $2.6 million to fiscal 2005.
            "Our performance in the 2006 first quarter was driven in large part by the strong performance of Tropicana Atlantic City, which posted an EBITDA increase of 32%, net of insurance costs and recoveries, in the first quarter-over-quarter comparison since the opening of the expansion in late 2004.
            "Results at Tropicana Las Vegas were hampered by a variety of operating issues, including customer concern and reaction to the potential closing of the property in anticipation of redevelopment. Now that redevelopment has been deferred, we anticipate that Tropicana Las Vegas will be able to resume its normal operating pattern."

Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 2

Write-off of Tropicana Las Vegas Development Costs
            Since we concluded that it was not probable that we would implement our plans for redevelopment of Tropicana Las Vegas, we wrote off our capitalized development costs.
Construction Accident Related Items
            Property EBITDA in the 2006 first quarter includes construction accident related expenses of $1.6 million and insurance recoveries of $4.8 million. Other income of $2.6 million 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, compared to $1.6 million in 2005.
Income Taxes
            Our results for the first quarter of 2006 include non-recurring income tax benefits of $3.4 million associated with a development credit in New Jersey and with a settlement with the IRS for our last remaining issue for examinations for the years 1994 to 2003.
Capital Expenditures
            In the first quarter of 2006, purchases of property and equipment totaled $14 million. Approximately $11 million of the total was spent on routine capital expenditures, and $3 million went for development.
Fiscal Calendar Change
            The company changed its fiscal year to the calendar year, effective December 31, 2005. The company previously used a 52/53 week fiscal year ending on the Thursday nearest December 31. The information in this release for the 2006 first quarter reflects the Company's results of operations for a 90-day period beginning January 1, 2006 and ending March 31, 2006. The 2005 first quarter contained 91 days, beginning on December 31, 2004 and ending on March 31, 2005.

Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 3

Conference Call
            Our first-quarter 2006 earnings conference call is scheduled to be broadcast live on the Internet beginning at 4:30 p.m. Eastern Time on Wednesday, April 19, 2006. 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 following the call.
Selected Results ($ in millions, except ADR, which is Average Daily Rate)

                                                      

 

     

First Quarter 

  

                   

      

 

 

2006

  

 

2005

              

 

 

      

(unaudited)

          
                                 

Tropicana Atlantic City

 

    

 

 

                      

Revenue

 

$

116.7

 

 

$

111.7

                  

EBITDA

 

$

31.2

 

 

$

21.0

                  

Depreciation and amortization

 

$

13.1

 

 

$

10.6

                  

Operating income

 

$

18.1

 

 

$

10.4

                  

 

 

    

 

 

                      

EBITDA margin

 

  

26.7

%

 

  

18.8

%

                

Operating income margin

 

  

15.5

%

 

  

9.3

%

                
                                 

Occupancy

 

  

88.2

%

 

  

81.1

%

                

ADR

 

$

97.26  

 

$

84.22  

            

 

 

 

  

  

 

                      

Tropicana Las Vegas

 

  

  

  

 

  

 

  

 

              

Revenue

 

$

40.9

  

 

$

42.2

                  

EBITDA

 

$

9.6

  

 

$

11.0

                  

Depreciation and amortization

 

$

1.4

  

 

$

1.5

                  

Operating income

 

$

8.2

  

 

$

9.5

                  

 

 

      

 

                      

EBITDA margin

 

  

23.5

%

 

  

26.1

%

                

Operating income margin

 

  

20.0

%

 

  

22.5

%

                

 

 

      

 

                      

Occupancy

 

  

95.6

%

 

  

97.5

%

                

ADR

 

$

92.46  

 

$

99.46  

            


Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 4
                 

Ramada Express Laughlin

 

  

  

  

 

  

          

  

                   

              

Revenue

 

$

27.4

  

 

$

26.5

  

                

EBITDA

 

$

8.7

  

 

$

8.7

  

                

Depreciation and amortization

 

$

1.9

  

 

$

1.6

  

                

Operating income

 

$

6.8

  

 

$

7.1

  

                

 

 

    

  

 

    

  

                

EBITDA margin

 

  

31.8

%

 

  

32.8

%

                

Operating income margin

 

  

24.8

%

 

  

26.8

%

                

 

 

    

  

 

    

  

                

Occupancy

 

  

82.4

%

    

81.1

%

                

ADR

 

$

32.90  

 

$

30.78  

            
                 

Casino Aztar Evansville

 

    

  

 

    

  

                

Revenue

 

$

36.2

  

 

$

35.5

  

                

EBITDA

 

$

11.1

  

 

$

11.0

  

                

Depreciation and amortization

 

$

1.8

  

 

$

1.8

  

                

Operating income

 

$

9.3

  

 

$

9.2

  

                

 

 

    

  

 

    

  

                

EBITDA margin

 

  

30.7

%

 

  

31.0

%

                

Operating income margin

 

  

25.7

%

 

  

25.9

%

                

 

 

    

  

 

    

  

                

Occupancy

 

  

88.6

%

 

  

84.6

%

                

ADR

 

$

61.70  

 

$

63.73  

            

 

 

    

  

 

    

  

                

Casino Aztar Caruthersville

 

    

  

 

    

  

                

Revenue

 

$

7.4

  

 

$

7.4

  

                

EBITDA

 

$

2.0

  

 

$

1.9

  

                

Depreciation and amortization

 

$

0.8

  

 

$

0.8

  

                

Operating income

 

$

1.2

  

 

$

1.1

  

                

 

 

    

  

 

    

  

                

EBITDA margin

 

  

27.0

%

 

  

25.7

%

                

Operating income margin

 

  

16.2

%

 

  

14.9

%

                

 

 

    

  

 

    

  

                

Property

 

 

  

  

 

  

  

  

 

              

Revenue

 

$

228.6

 

 

$

223.3

                  

EBITDA

 

$

62.6

 

 

$

53.6

                  

Depreciation and amortization

 

$

19.0

 

 

$

16.3

                  

Operating income

 

$

43.6

 

 

$

37.3

                  
                                 

EBITDA margin

 

  

27.4

%

 

  

24.0

%

                

Operating income margin

 

  

19.1

%

 

  

16.7

%

                

 

 

    

  

 

    

  

                


Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 5

Corporate

 

    

  

 

    

  

                

EBITDA

 

$

( 6.4

)

 

$

( 7.9

)

                

Depreciation and amortization

 

$

0.0

  

 

$

0.0

  

                

Tropicana Las Vegas capitalized
  development costs write-off

  


$

 
26.0

    


$


0.0

                  

Operating income

 

$

( 32.4

)

 

$

( 7.9

)

                
                                 

Consolidated

 

 

  

  

 

  

          

  

 

              

Revenue

 

$

228.6

 

 

$

223.3

                  

EBITDA

 

$

56.2

 

 

$

45.7

                  

Depreciation and amortization

 

$

19.0

 

 

$

16.3

                  

Tropicana Las Vegas capitalized
  development costs write-off

  


$


26.0

    


$


0.0

                  

Operating income

 

$

11.2

 

 

$

29.4

                  

Net income

 

$

3.2

 

 

$

9.9

                  
                                 

EBITDA margin

 

  

24.6

%

 

  

20.5

%

                

Operating income margin

 

  

4.9

%

 

  

13.2

%

                

Net income margin

    

1.4

%

    

4.4

%

                


Margins
Margins are calculated as a percentage of revenue.

EBITDA Explanation and Reconciliation
EBITDA is net income before income taxes, interest expense, interest income, other income, Tropicana Las Vegas capitalized development costs write-off 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

Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 6

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. Tropicana Las Vegas capitalized development costs write-off, other income, interest expense, net of interest income, 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 f or 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).

                                                      

 

     

First Quarter 

  

                   

      

 

 

2006

  

 

2005

              

 

 

      

(unaudited)

          

EBITDA

                                

  Tropicana Atlantic City

  

$

31.2

    

$

21.0

                  

  Tropicana Las Vegas

    

9.6

      

11.0

                  

  Ramada Express Laughlin

    

8.7

      

8.7

                  

  Casino Aztar Evansville

    

11.1

      

11.0

                  

  Casino Aztar Caruthersville

    

2.0

      

1.9

                  

     Property EBITDA

    

62.6

      

53.6

                  

Corporate

  

    ( 32.4

)

  

      ( 7.9

)

            

Depreciation and amortization

  

( 19.0

)

  

( 16.3

)

            

Operating income

    

11.2

      

29.4

                  

Other income

    

2.6

      

1.6

                  

Interest income

    

0.4

      

0.2

                  

Interest expense

    

( 14.1

)

    

( 13.8

)

                

Income taxes

  

3.1

    

( 7.5

)

            

Net income

  

$

3.2

    

$

9.9

                  

 

Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 7

Adjusted Diluted Earnings Per Share

                                                      

 

     

First Quarter 

  

                   

      

 

 

2006

  

 

2005

              

 

 

      

(unaudited)

          

Net income per common share
  assuming dilution:

                                

As reported

  

$

.08

    

$

.27

                  

Adjustments:

                                

  Construction accident related
    expenses

    


..03

      


- --

                  

  Construction accident insurance
    recoveries

    


( .08


)

    


- --

                  

  Other income

    

( .04

)

    

( .03

)

                

  Defined benefit plan settlement
    loss

    


- --

      


..05

                  

  Merger related expenses

    

.02

      

--

                  

  Tropicana Las Vegas capitalized
    development costs write-off

    


..45

      


- --

                  

  Nonrecurring income tax benefits

( .09

)

  

  --

              

As adjusted

  

$

.37

    

$

.29

                  


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.

###

Forward-Looking Information
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 Pennsyl vania, uncertainties related to the extent and timing of our recoveries from our insurance carriers for our

Aztar First-Quarter 2006 Earnings Release
April 19, 2006       Page 8

various losses suffered in connection with 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 31, 2005 and certain registration statements of the company.

Contact: Joe Cole, Aztar Corporation, 602-381-4111

Aztar Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the periods ended March 31, 2006 and March 31, 2005
(in thousands, except per share data)

                                                                                     

 

  

 

  

First Quarter

  

 

 

        

 

  

     2006     

 

  

     2005     

  

Revenues

  

            

 

 

 

               

 

 

 

               

  

    

Casino

 

            

 

  

$

176,557

 

  

$

171,822

  

    

Rooms

 

            

 

    

25,347

 

    

25,128

  

 

Food and beverage

 

            

 

    

15,050

 

    

14,981

  

 

Other

 

        

 

  

       11,681

 

  

       11,391

  

 

  

 

        

 

  

228,635

 

  

223,322

  

Costs and expenses

 

            

 

      

 

        

 

Casino

 

            

 

    

70,300

 

    

69,105

  

 

Rooms

 

            

 

    

11,619

 

    

10,998

  

 

Food and beverage

 

            

 

    

14,610

 

    

14,125

  

 

Other

 

            

 

    

7,798

 

    

7,925

  

 

Marketing

 

            

 

    

20,736

 

    

25,034

  

 

General and administrative

 

            

 

    

24,607

 

    

26,340

  

 

Utilities

 

            

 

    

6,304

 

    

6,368

  

 

Repairs and maintenance

 

            

 

    

7,007

 

    

6,620

  

 

Provision for doubtful accounts

 

            

 

    

493

 

    

378

  

 

Property taxes and insurance

 

            

 

    

8,819

 

    

8,520

  

 

Rent

 

            

 

    

2,330

 

    

1,938

  
 

Construction accident related

              

1,644

    

409

  
 

Construction accident insurance recoveries

              

( 4,789

)

  

( 225

)
 

Merger related

              

884

    

--

  
 

Depreciation and amortization 

              

       19,017

    

16,346

  
 

Tropicana Las Vegas capitalized development
  costs write-off

              


       26,021

    


                --

  

 

 

 

        

 

  

     217,400

 

  

     193,881

  

 

 

            

 

      

 

        

Operating income

 

            

 

    

11,235

 

    

29,441

  

 

 

            

 

      

 

        
 

Other income

                    

2,640

      

1,573

  

 

Interest income

 

            

 

    

394

 

    

242

  

 

Interest expense

 

        

 

  

     ( 14,136

)

  

     ( 13,862

)
                           

Income before income taxes

 

            

 

    

133

 

    

17,394

  

 

 

            

 

      

 

        

 

Income taxes

 

            

         3,081

    

       ( 7,483

)
                           

Net income

                  

$

3,214

    

$

9,911

  

    

 

 

        

 

  

========

 

  

========

  

 

 

            

 

      

 

        

Net income per common share

 

            

 

  

$

.08

 

  

$

.28

  

Net income per common share assuming dilution

 

            

 

  

$

.08

 

  

$

.27

  

 

 

            

 

      

 

        

Weighted-average common shares applicable to:

 

            

 

      

 

        

 

Net income per common share

 

            

 

    

35,876

 

    

34,788

  

    

Net income per common share assuming dilution

 

            

 

    

36,963

 

    

36,886

  

 

 


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

                                                                                      

    March 31, 2006   

  

December 31, 2005

Assets

 

                 

        

  

Cash and cash equivalents

 

$

70,138

    

$

88,199

  

  

Other current assets

 

          60,114

    

          62,678

  

  

  

Total current assets

 

  

130,252

      

150,877

  

  

Investments

 

  

25,931

      

25,215

  

  

Property and equipment

 

  

1,238,217

      

1,243,010

  
 

Intangible assets

    

33,591

      

33,722

  

  

Other assets

 

          86,176

    

         102,510

  

  

 

$

1,514,167

    

$

1,555,334

  

  

 

=========

    

=========

  

  

 

              

Liabilities and Shareholders' Equity 

 

              

  

Current portion of long-term debt

 

$

1,288

    

$

1,293

  

  

Other current liabilities

 

        129,118

    

        128,790

  

  

  

Total current liabilities

 

  

130,406

      

130,083

  
 

Long-term debt

    

675,457

      

721,676

  
 

Other long-term liabilities

    

61,174

      

62,425

  

  

Series B convertible preferred stock

 

  

4,474

      

4,620

  

  

Shareholders' equity

 

        642,656

    

        636,530

  

  

 

$

1,514,167

    

$

1,555,334

  

  

 

=========

    

=========

  
-----END PRIVACY-ENHANCED MESSAGE-----