-----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, ROYbF/OjNv1YAmJqVUNGReexBvvESD+ru3E/wuw5HW86p7QKYo91dsj/VQoBRBCc TBKAZUk7MoaOWOXPXoSL9g== 0000852807-06-000023.txt : 20060719 0000852807-06-000023.hdr.sgml : 20060719 20060719160319 ACCESSION NUMBER: 0000852807-06-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060719 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060719 DATE AS OF CHANGE: 20060719 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: 06969501 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 k8jly19.htm FORM 8-K FORM 8-K


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 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:

 [ ]

 [x]

 [ ]


 [ ]

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 July 19, 2006. The purpose of the press release, which is furnished as Exhibit 99, was to announce the results for the second quarter ended June 30, 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 July 19, 2006, announcing results for the second quarter ended June 30, 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:  July 19, 2006



EXHIBIT INDEX

Exhibit
Number


Description

99

Press release dated July 19, 2006, announcing results for the second quarter ended June 30, 2006.



2

 EX-99 2 exhibit99.htm EXHIBIT 99 EXHIBIT 99

Exhibit 99

AZTAR

News Release  

FOR IMMEDIATE RELEASE

AZTAR REPORTS SECOND-QUARTER 2006 RESULTS

            PHOENIX, July 19, 2006 -- Aztar Corporation (NYSE: AZR) today reported financial results for its 2006 second quarter, including property EBITDA from continuing operations of $60.2 million, compared with $57.9 million in the year-earlier quarter.
            Second-quarter 2006 revenue was $221.9 million, compared with $221.4 million in the comparable 2005 quarter. The company reported a net loss of $66.1 million for the 2006 quarter, largely attributable to payment of a fee and associated expenses totaling $78.0 million related to termination of its merger agreement with Pinnacle Entertainment, Inc.; net income was $15.5 million in the 2005 second quarter. Reported diluted net loss per share was $1.84 in the 2006 second quarter, compared with diluted net income per share of 41 cents in the 2005 quarter. Adjusted diluted net income per share was 35 cents in the 2006 second quarter, which is after stock option compensation expense equivalent to two cents per share, compared with 38 cents in the 2005 second quarter.
Merger-Related Expenses
            On May 19, 2006, the company announced it had signed a merger agreement with Wimar Tahoe Corporation d/b/a Columbia Entertainment, the gaming affiliate of Columbia Sussex Corporation. Prior to signing that merger agreement, the company terminated its earlier merger agreement with Pinnacle and paid to Pinnacle a termination fee of $52.16 million and termination expenses of $25.84 million. The payment is not deductible for tax purposes. The payment to Pinnacle and certain other costs, consisting mainly of professional fees, are reported as merger-related expenses.
Property EBITDA
            Property EBITDA in the 2006 second quarter includes construction accident related expenses of $2.0 million and insurance recoveries of $3.6 million, compared with expenses of $0.9 million and recoveries of $0.3 million in the 2005 second quarter. Other income (expense) of ($0.4) 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 $2.9 million in the comparable 2005 quarter.
Discontinued Operations
            Results for Casino Aztar in Caruthersville, Missouri, are reported as discontinued operations, net of income taxes, reflecting our commitment to sell or close that property as part of our merger agreement with Columbia Entertainment.
Capital Expenditures
            In the second quarter of 2006, purchases of property and equipment totaled $18 million. Approximately $12 million of the total was spent on routine capital expenditures, and $6 million went for development.

Aztar Second Quarter Earnings Release
July 19, 2006                Page 2

Year-to-Date Results
            Consolidated revenue was $443.2 million in the first half of 2006, compared with $437.3 million in the first half of 2005. Property EBITDA from continuing operations was $120.8 million in the 2006 period, compared with $109.8 million a year earlier. First-half 2006 net loss was $62.9 million, equivalent to $1.77 per diluted share, compared with net income of $25.4 million, equivalent to 68 cents per diluted share, in the first half of 2005. Adjusted diluted net income per share was 72 cents in the 2006 first half, which is after stock option compensation expense equivalent to four cents per share, compared with 67 cents in the 2005 first half.
Fiscal Year 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 half reflects the company's results of operations for a 181-day period beginning January 1, 2006 and ending June 30, 2006. The 2005 first half contained 182 days, beginning on December 31, 2004, and ending on June 30, 2005.
Status of Merger with Columbia Entertainment
            Our merger with Columbia Entertainment is subject to approval by Aztar shareholders and the satisfaction of customary closing conditions, including the receipt of necessary gaming and other regulatory approvals. On June 21, 2006, Aztar and Columbia Entertainment filed the required notifications and report forms under the Hart-Scott-Rodino Act. On July 14, 2006, the company filed with the SEC a preliminary proxy statement in connection with the approval of the transaction by Aztar shareholders. Initial filings regarding approval of the transaction have been made by Columbia Entertainment in each of New Jersey, Nevada and Indiana. Columbia Entertainment is also in the process of preparing filings relating to their financing of the transaction in each of Louisiana and Mississippi. The merger is presently expected to close in the fourth quarter of 2006.
            In our merger agreement with Columbia Entertainment, we agreed to use commercially reasonable efforts to sell our Missouri property, Casino Aztar Caruthersville. To assist us in those efforts, we have retained an investment banking firm. We are currently in discussions with, and have received indications of interest from, several potential buyers. Approval by Missouri gaming authorities will be required for any transaction involving the sale of our Missouri property.
Conference Call
            Our second-quarter 2006 earnings conference call is scheduled to be broadcast live on the Internet beginning at 4:30 p.m. Eastern Time on Wednesday, July 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.

Aztar Second Quarter Earnings Release
July 19, 2006                Page 3

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

                                                      

 

     

Second Quarter

  

                   

   

Year to Date

  

 

 

2006

  

 

2005

    

2006

  

 

2005

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

Tropicana Atlantic City

 

    

 

 

              

 

    

  

Revenue

 

$

124.9

 

 

$

122.7

    

$

241.7

  

 

$

234.5

  

EBITDA

 

$

36.3

 

 

$

30.9

    

$

67.6

  

 

$

52.0

  

Depreciation and amortization

 

$

12.0

 

 

$

10.9

    

$

25.1

  

 

$

21.6

  

Operating income

 

$

24.3

  

 

$

20.0

    

$

42.5

  

 

$

30.4

  

 

 

    

 

 

              

 

    

  

EBITDA margin

 

  

29.1

%

 

  

25.2

%

    

28.0

%

 

  

22.2

%

Operating income margin

 

  

19.5

%

    

16.3

%

    

17.6

%

 

  

13.0

%
                                 

Occupancy

 

  

95.6

%

 

  

91.9

%

    

91.9

%

 

  

86.5

%

ADR

 

$

104.70  

 

$

94.74  

  

$

101.15  

 

$

89.81  
                                 

Tropicana Las Vegas

 

 

 

  

 

  

 

  

 

  

  

  

 

  

  

  

Revenue

 

$

39.6

  

 

$

41.8

    

$

80.5

  

 

$

84.0

  

EBITDA

 

$

8.2

  

 

$

10.7

    

$

17.7

  

 

$

21.7

  

Depreciation and amortization

 

$

1.4

  

 

$

1.5

    

$

2.7

  

 

$

2.9

  

Operating income

 

$

6.8

  

 

$

9.2

    

$

15.0

  

 

$

18.8

  

 

 

      

 

              

 

    

  

EBITDA margin

 

  

20.7

%

 

  

25.6

%

    

22.0

%

 

  

25.8

%

Operating income margin

 

  

17.2

%

 

  

22.0

%

    

18.6

%

 

  

22.4

%

 

 

      

 

              

 

    

  

Occupancy

 

  

96.1

%

 

  

100.0

%

    

95.8

%

 

  

98.8

%

ADR

 

$

87.90  

 

$

92.17  

  

$

90.16  

 

$

95.78  
                 

Ramada Express Laughlin

 

  

         

  

 

  

          

  

                   

  

          

  

  

  

         

  

Revenue

 

$

24.6

  

 

$

23.4

  

  

$

52.0

  

  

$

49.9

  

EBITDA

 

$

6.3

  

 

$

6.0

  

  

$

15.0

  

  

$

14.8

  

Depreciation and amortization

 

$

1.8

  

 

$

1.6

  

  

$

3.8

  

  

$

3.3

  

Operating income

 

$

4.5

  

 

$

4.4

  

  

$

11.2

  

  

$

11.5

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

25.6

%

 

  

25.6

%

    

28.8

%

    

29.7

%

Operating income margin

 

  

18.3

%

 

  

18.8

%

    

21.5

%

 

  

23.0

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

67.5

%

    

70.2

%

    

74.9

%

    

75.7

%

ADR

 

$

40.02  

 

$

38.12  

  

$

36.13  

  

$

34.19  
                 

 

Aztar Second Quarter Earnings Release
July 19, 2006                Page 4

Casino Aztar Evansville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

32.8

  

 

$

33.5

  

  

$

69.0

  

  

$

68.9

  

EBITDA

 

$

9.4

  

 

$

10.3

  

  

$

20.5

  

  

$

21.3

  

Depreciation and amortization

 

$

1.8

  

 

$

1.9

  

  

$

3.6

  

  

$

3.7

  

Operating income

 

$

7.6

  

 

$

8.4

  

  

$

16.9

  

  

$

17.6

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

28.7

%

 

  

30.7

%

    

29.7

%

    

30.9

%

Operating income margin

 

  

23.2

%

 

  

25.1

%

    

24.5

%

 

  

25.5

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

89.8

%

 

  

93.2

%

    

89.2

%

    

88.8

%

ADR

 

$

64.41  

 

$

63.92  

  

$

63.07  

  

$

63.83  
                                 

Property

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

221.9

  

 

$

221.4

  

  

$

443.2

  

  

$

437.3

  

EBITDA

 

$

60.2

  

 

$

57.9

  

  

$

120.8

  

  

$

109.8

  

Depreciation and amortization

 

$

17.0

  

 

$

15.9

  

  

$

35.2

  

  

$

31.5

  

Operating income

 

$

43.2

  

 

$

42.0

  

  

$

85.6

  

  

$

78.3

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

27.1

%

 

  

26.2

%

    

27.3

%

    

25.1

%

Operating income margin

 

  

19.5

%

 

  

19.0

%

    

19.3

%

 

  

17.9

%

 

 

    

  

 

    

  

      

  

      

  

Corporate

 

    

  

 

    

  

      

  

      

  

EBITDA

 

$

( 85.3

)

 

$

( 5.2

)

  

$

( 91.7

)

  

$

( 13.2

)

Depreciation and amortization

 

$

0.0

  

 

$

0.0

  

  

$

0.0

  

  

$

0.0

  

Tropicana Las Vegas capitalized
  development costs write-off

  


$


0.0

    


$


0.0

    


$


26.0

    


$


0.0

  

Operating income (loss)

 

$

( 85.3

)

 

$

( 5.2

)

  

$

( 117.7

)

  

$

( 13.2

)
                                 

Consolidated

 

 

  

  

 

  

  

  

 

  

  

  

 

  

  

  

Revenue

 

$

221.9

 

 

$

221.4

    

$

443.2

  

 

$

437.3

  

EBITDA

 

$

( 25.1

)

 

$

52.7

    

$

29.1

  

 

$

96.6

  

Depreciation and amortization

 

$

17.0

 

 

$

15.9

    

$

35.2

  

 

$

31.5

  

Tropicana Las Vegas capitalized
  development costs write-off

  


$


0.0


 


$


0.0

    


$


26.0

    


$


0.0

  

Operating income (loss)

 

$

( 42.1

) 

 

$

36.8

    

$

( 32.1

)

 

$

65.1

  

Income (loss) from continuing
  operations

 


$


( 67.0


) 

 


$


14.9

    


$


( 64.5


)

 


$


24.1

  
                                 

EBITDA margin

 

  

-11.3

%

 

  

23.8

%

    

6.6

%

 

  

22.1

%

Operating income (loss) margin

 

  

-19.0

%

 

  

16.6

%

    

-7.2

%

 

  

14.9

%

Income (loss) from continuing
  operations margin

    


- -30.2


%

    


6.7


%

    


- -14.6


%

    


5.5


%


Margins
Margins are calculated as a percentage of revenue.

Aztar Second Quarter Earnings Release
July 19, 2006                Page 5

EBITDA Explanation and Reconciliation
EBITDA is net income (loss) before discontinued operations, income taxes, interest expense, interest income, other income (expense), Tropicana Las Vegas capitalized development costs write-off and depreciation and amortization. EBITDA should not be construed as a substitute for either operating income (loss) or net income (loss) 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 EBIT DA 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. Tropicana Las Vegas capitalized development costs write-off, other income (expense), interest expense, net of interest income, income taxes and discontinued operations 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 (loss) and net income (loss) as determined in accordance with GAAP is shown below (in millions).

Aztar Second Quarter Earnings Release
July 19, 2006                Page 6

                                                      

 

     

Second Quarter

  

                   

   

Year to Date

  

 

 

2006

  

 

2005

    

2006

  

 

2005

  

 

 

      

(unaudited)

    

    

(unaudited)

  

EBITDA

                                

    Tropicana Atlantic City

  

$

36.3

    

$

30.9

    

$

67.6

    

$

52.0

  

    Tropicana Las Vegas

    

8.2

      

10.7

      

17.7

      

21.7

  

    Ramada Express Laughlin

    

6.3

      

6.0

      

15.0

      

14.8

  

    Casino Aztar Evansville

  

         9.4

    

       10.3

    

      20.5

    

      21.3

  

      Property EBITDA

    

60.2

      

57.9

      

120.8

      

109.8

  

Corporate

    

( 85.3

)

    

( 5.2

)

    

( 117.7

)

    

( 13.2

)

Depreciation and amortization

  

    ( 17.0

)

  

    ( 15.9

)

  

    ( 35.2

)

  

    ( 31.5

)

Operating income (loss)

    

( 42.1

)

    

36.8

      

( 32.1

)

    

65.1

  

Other income (expense)

    

( 0.4

)

    

2.9

      

2.2

      

4.4

  

Interest income

    

0.5

      

0.3

      

0.9

      

0.5

  

Interest expense

    

( 14.1

)

    

( 14.2

)

    

( 28.3

)

    

( 28.0

)

Income taxes

  

    ( 10.9

)

  

    ( 10.9

)

  

      ( 7.2

)

  

    ( 17.9

)

Income (loss) from continuing
  operations

  



( 67.0


)

  



14.9

    



( 64.5


)

  



24.1

  

Discontinued operations, net of
  income taxes

  


         0.9

    


         0.6

    


         1.6

    


         1.3

  

Net income (loss)

  

$

( 66.1

)

  

$

15.5

    

$

( 62.9

)

  

$

25.4

  


Adjusted Diluted Earnings Per Share

                                                      

 

     

Second Quarter 

  

                   

  

Year to Date

  

 

 

2006

  

 

2005

    

2006

    

2005

  

 

 

      

(unaudited)

      

(unaudited)

  

Net income (loss) per common
  share assuming dilution:

                                

As reported

  

$

(1.84

)

  

$

.41

    

$

(1.77

)

  

$

.68

  

Adjustments:

                                

  Construction accident related
    expenses

    


..03

      


..02

      


..06

      


..02

  

  Construction accident insurance
    recoveries

    


( .06


)

    


( .01


)

    


(.13


)

    


(.01


)

  Other income (expense)

    

.01

      

( .04

)

    

(.04

)

    

(.07

)

  Defined benefit plan settlement
    loss

    


- --

      


- --

      


- --

      


..05

  

  Merger related expenses

    

2.13

      

--

      

2.16

      

--

  

  Tropicana Las Vegas capitalized
    development costs write-off

    


- --

      


- --

      


..45

      


- --

  

  Nonrecurring income tax
    benefits

    


- --

      


- --

      


(.09


)

    


- --

  

  Effect of dilution on net loss

.08

    

  --

    

.08

    

  --

  

As adjusted

  

$

.35

    

$

.38

    

$

.72

    

$

.67

  

 

Aztar Second Quarter Earnings Release
July 19, 2006                Page 7

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
This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The statements in this release that are not historical facts are forward-looking statements and may involve a number of risks and uncertainties. When used in this release, the terms "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "objective," "plan," "possible," "potential," "pursue," "project," "will," "would" and similar expressions, or the negative formulation of these expressions, generally identify forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Generally, forward-looking statements express expectations for or about the future, rather than historical fact. Forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to d iffer materially from those contemplated by such statements. In addition to the risk factors identified elsewhere, important factors that could cause actual results or events to differ materially from those contemplated by such statements include, without limitation:

  • the financial performance of each of Aztar and Columbia Entertainment through the completion of the merger;
  • the ability of Columbia Entertainment to obtain the acquisition financing pursuant to its financing commitment letter agreement;
  • any delays in securing the adoption of the merger agreement by our stockholders, and the risk that our stockholders do not adopt the merger agreement;
  • the timing (including any possible delays) and receipt of regulatory approvals from various federal and state governmental entities (including any conditions, limitations or restrictions placed on these approvals) and the risk that one or more governmental authorities may deny approval of the merger;
  • the possibility that the merger agreement is terminated and the merger is not completed, resulting in disruptions to our business and, under certain circumstances, requiring us to pay to Columbia Entertainment a termination fee of $55,228,000 and to reimburse Columbia Entertainment for its fees and expenses incurred in connection with the merger up to a maximum of $27,360,000 and to reimburse Columbia Sussex Corporation the $78,000,000 that was paid to Pinnacle in connection with the termination of the Pinnacle merger agreement;
  • legislative and regulatory matters, changes in government regulation, and regulatory action resulting from market conduct activity, including the potential (1) legalization of gaming in additional states, (2) tax increases in our states of operation or (3) proscription or prohibition of smoking in our gaming facilities in our states of operation;

 

Aztar Second Quarter Earnings Release
July 19, 2006                Page 8

         Forward-looking statements made in this release express expectations only as of the date they are made. We do not undertake any obligation to update or revise such statements to reflect events or circumstances after the date of this proxy statement or to reflect the occurrence of unanticipated events, except as required by applicable law.

Additional Information and Where to Find It
This release may be deemed to be solicitation material in respect of the proposed merger of Aztar and Columbia Entertainment. In connection with the proposed merger, Aztar plans to file a proxy statement with the SEC. On July 14, 2006, Aztar filed a preliminary proxy statement with the SEC. INVESTORS AND SECURITY HOLDERS OF AZTAR ARE ADVISED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final proxy statement will be mailed to stockholders of Aztar. Investors and security holders may obtain a free copy of the proxy statement, when it becomes available, and other documents filed by Aztar with the SEC, at the SEC's web site at http://www.sec.gov. Free copies of the proxy statement, when it

Aztar Second Quarter Earnings Release
July 19, 2006                Page 9

becomes available, and Aztar's other filings with the SEC may also be obtained from Aztar. Free copies of Aztar's filings may be obtained by directing a request to Aztar Corporation, 2390 East Camelback Road, Suite 400, Phoenix, Arizona 85016, Attention: Secretary.

Aztar, Columbia Entertainment and their respective directors, executive officers and other members of their management and employees may be deemed to be soliciting proxies from Aztar's stockholders in favor of the proposed merger. Information regarding Aztar's directors and executive officers is available in Aztar's proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on April 10, 2006. Additional information regarding the interests of such potential participants will be included in the proxy statement and the other relevant documents filed with the SEC when they become available.

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

 

Aztar Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the periods ended June 30, 2006 and June 30, 2005
(in thousands, except per share data)

                                                                                     

 

         Second Quarter       

 

  

             Six Months          

  

 

 

     2006     

 

  

     2005     

 

  

     2006     

 

  

     2005     

  

Revenues

  

 

               

 

 

    

 

 

 

               

 

 

      

    

Casino

 

$

165,686

 

  

$

166,142

 

  

$

335,118

 

  

$

330,804

  

    

Rooms

 

  

27,911

 

    

28,098

 

    

53,258

 

    

53,226

  

 

Food and beverage

 

  

14,914

 

    

14,976

 

    

29,815

 

    

29,793

  

 

Other

 

       13,415

 

  

       12,183

 

  

      25,005

 

  

      23,491

  

 

  

 

221,926

 

  

221,399

 

  

443,196

 

  

437,314

  

Costs and expenses

 

    

 

      

 

      

 

        

 

Casino

 

  

66,137

 

    

65,865

 

    

133,787

 

    

132,395

  

 

Rooms

 

  

12,639

 

    

12,696

 

    

24,258

 

    

23,694

  

 

Food and beverage

 

  

14,726

 

    

14,334

 

    

29,255

 

    

28,365

  

 

Other

 

  

7,390

 

    

7,574

 

    

14,632

 

    

14,909

  

 

Marketing

 

  

20,527

 

    

23,429

 

    

40,634

 

    

47,815

  

 

General and administrative

 

  

22,180

 

    

21,875

 

    

45,796

 

    

47,075

  

 

Utilities

 

  

5,647

 

    

5,822

 

    

11,850

 

    

12,084

  

 

Repairs and maintenance

 

  

7,076

 

    

6,551

 

    

13,937

 

    

13,008

  

 

Provision for doubtful accounts

 

  

585

 

    

329

 

    

1,078

 

    

707

  

 

Property taxes and insurance

 

  

8,843

 

    

7,559

 

    

17,465

 

    

15,875

  

 

Rent

 

  

2,408

 

    

2,085

 

    

4,738

 

    

4,023

  

 

Construction accident related

 

  

1,997

 

    

860

 

    

3,641

 

    

1,269

  
 

Construction accident insurance recoveries

  

       ( 3,569

)

  

       ( 301

)

  

       ( 8,358

)

  

       ( 526

)

 

Merger related

 

  

80,476

 

    

--

 

    

81,360

 

    

--

  

 

Depreciation and amortization

 

  

17,003

 

    

15,906

 

    

35,242

 

    

31,497

  
 

Tropicana Las Vegas capitalized development

                        

 

  costs write-off

 

                --

 

  

                --

 

  

       26,021

 

  

                --

  

 

 

 

     264,065

 

  

     184,584

 

  

     475,336

 

  

     372,190

  

 

 

    

 

      

 

      

 

        

Operating income (loss)

 

  

( 42,139

)

    

36,815

      

( 32,140

)

    

65,124

  
                                   
 

Other income (expense)

    

( 398

)

    

2,855

      

2,242

      

4,428

  

 

Interest income

 

  

526

 

    

294

      

920

 

    

536

  

 

Interest expense

 

     ( 14,147

)

  

     ( 14,206

)

  

     ( 28,283

)

  

     ( 28,068

)
                                 

Income (loss) from continuing operations before

 

    

 

              

 

        

  income taxes

 

  

( 56,158

)

    

25,758

      

( 57,261

)

    

42,020

  
                           

 

Income taxes

 

     ( 10,880

)

  

     ( 10,848

)

  

       ( 7,267

)

  

     ( 17,954

)
                                 

Income (loss) from continuing operations

 

  

( 67,038

)

    

14,910

      

( 64,528

)

    

24,066

  

Discontinued operations, net of income taxes

 

            931

    

            543

    

         1,635

    

         1,298

  
 

 

    

 

                        

Net income (loss)

 

$

( 66,107

)

  

$

15,453

    

$

(62,893

)

  

$

25,364

  
     

=======

      

=======

      

=======

      

=======

  

Earnings per common share assuming no dilution:

                                
 

Income (loss) from continuing operations

  

$

( 1.87

)

  

$

.42

    

$

( 1.82

)

  

$

.67

  
 

Discontinued operations, net of income taxes

  

             .03

    

             .01

    

             .05

    

             .04

  
 

Net income (loss)

  

$

( 1.84

)

  

$

.43

    

$

( 1.77

)

  

$

.71

  
                                 

Earnings per common share assuming dilution:

                                
 

Income (loss) from continuing operations

  

$

( 1.87

)

  

$

.40

    

$

( 1.82

)

  

$

.64

  
 

Discontinued operations, net of income taxes

  

             .03

    

             .01

    

             .05

    

             .04

  
 

Net income (loss)

  

$

( 1.84

)

  

$

.41

    

$

( 1.77

)

  

$

.68

  
                                 

Weighted-average common shares applicable to:

                                
 

Earnings per common share assuming no dilution

    

36,150

      

35,141

      

36,014

      

34,965

  
 

Earnings per common share assuming dilution

    

36,150

      

36,980

      

36,014

      

36,929

  

 

 


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

                                                                                      

     June 30, 2006    

  

December 31, 2005

Assets

 

                 

        

  

Cash and cash equivalents

 

$

75,322

    

$

86,361

  

  

Other current assets

 

          76,348

    

          62,476

  

  

  

Total current assets

 

  

151,670

      

148,837

  
 

Assets held for sale

    

33,513

      

33,559

  

  

Investments

 

  

26,764

      

25,215

  

  

Property and equipment

 

  

1,207,706

      

1,211,887

  
 

Intangible assets

    

33,069

      

33,331

  

  

Other assets

 

          86,039

    

         102,505

  

  

 

$

1,538,761

    

$

1,555,334

  

  

 

=========

    

=========

  

  

 

              

Liabilities and Shareholders' Equity 

 

              

  

Current portion of long-term debt

 

$

1,283

    

$

1,293

  

  

Other current liabilities

 

        130,009

    

        126,295

  
 

Merger termination fee reimbursement

    

78,000

      

--

  
 

Liabilities related to assets held for sale

  

            2,064

    

             2,495

  

  

  

Total current liabilities

 

  

211,356

      

130,083

  
 

Long-term debt

    

675,037

      

721,676

  
 

Other long-term liabilities

    

60,105

      

62,425

  

  

Series B convertible preferred stock

 

  

4,382

      

4,620

  

  

Shareholders' equity

 

        587,881

    

        636,530

  

  

 

$

1,538,761

    

$

1,555,334

  

  

 

=========

    

=========

  

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