-----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, H6NqvMAI28TrEO0d8ywNTyLQQvsw/+ESW+EJrrEmLanZfLnhtL2pbx3/86SCJL/Q +pA0ZhrWw7ueTTn5eruakw== 0000852807-06-000033.txt : 20061018 0000852807-06-000033.hdr.sgml : 20061018 20061018160354 ACCESSION NUMBER: 0000852807-06-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061018 DATE AS OF CHANGE: 20061018 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: 061150978 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 k8oct18.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)     October 18, 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 October 18, 2006. The purpose of the press release, which is furnished as Exhibit 99, was to announce the results for the third quarter ended September 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 October 18, 2006, announcing results for the third quarter ended September 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:  October 18, 2006



EXHIBIT INDEX

Exhibit
Number


Description

99

Press release dated October 18, 2006, announcing results for the third quarter ended September 30, 2006.



2

 EX-99 2 exhibit99.htm EXHIBIT 99 EXHIBIT 99

Exhibit 99

AZTAR

News Release  

FOR IMMEDIATE RELEASE

AZTAR REPORTS THIRD-QUARTER 2006 RESULTS

            PHOENIX, October 18, 2006 -- Aztar Corporation (NYSE: AZR) today reported financial results for its 2006 third quarter, including property EBITDA from continuing operations of $71.0 million, compared with $65.7 million in the year-earlier quarter.
            Third-quarter 2006 revenue was $234.0 million, compared with $234.3 million in the comparable 2005 quarter. Reported diluted net income per share was 60 cents in the 2006 third quarter, compared with diluted net income per share of 51 cents in the 2005 quarter. Adjusted diluted net income per share was 54 cents in the 2006 third quarter, which is after stock option compensation expense equivalent to one cent per share, compared with 51 cents in the 2005 third quarter.
Property EBITDA
            Property EBITDA in the 2006 third quarter includes construction accident related expenses of $1.0 million and insurance recoveries of $3.9 million, compared with expenses of $1.4 million and no insurance recoveries in the 2005 third quarter. Other income (expense) of $2.7 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 $(0.3) million in the comparable 2005 quarter.
Discontinued Operations
            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. 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 the merger agreement.

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 2

Year-to-Date Results
            Consolidated revenue was $677.2 million in the first three quarters of 2006, compared with $671.6 million in the first three quarters of 2005. Property EBITDA from continuing operations was $191.7 million in the 2006 period, compared with $175.5 million a year earlier. Year-to-date 2006 net loss was $39.6 million, equivalent to $1.14 per diluted share, compared with net income of $44.7 million, equivalent to $1.19 per diluted share, in the first three quarters of 2005.
            Prior to signing the Columbia Entertainment merger agreement, the company terminated its earlier merger agreement with Pinnacle Entertainment, Inc. 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. Adjusted diluted net income per share was $1.26 in the first three quarters of 2006, which is after stock option compensation expense equivalent to five cents per share, compared with $1.18 in the comparable 2005 period.
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 third quarter of 2006 reflects the company's results of operations for a 92-day period beginning July 1, 2006 and ending September 30, 2006. The third quarter of 2005 contained 91 days, beginning on July 1, 2005, and ending on September 29, 2005.
Status of Merger with Columbia Entertainment
            On October 17, 2006, Aztar shareholders approved the merger at a special meeting of Aztar shareholders. Our merger with Columbia Entertainment is subject to the satisfaction of customary closing conditions, including the receipt of necessary gaming approvals. Filings regarding approval of the transaction have been made by Columbia Entertainment in each of New Jersey, Nevada and Indiana. We understand that Columbia Entertainment also filed applications relating to its financing of the transaction in each of Louisiana and Mississippi; Mississippi authorities have approved the financing. The merger is presently expected to close in the fourth quarter of 2006.

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 3

            In our merger agreement with Columbia Entertainment, we agreed to use commercially reasonable efforts to sell our Missouri property, commonly known as Casino Aztar Caruthersville. We signed an agreement with Fortunes Entertainment, LLC on August 17, 2006 under which Fortunes Entertainment will acquire the Caruthersville property. Approval of the sale by Missouri gaming authorities is required.
Conference Call
            Our third-quarter 2006 earnings conference call is scheduled to be broadcast live on the Internet beginning at 4:30 p.m. Eastern Time on Wednesday, October 18, 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)

                                                      

 

     

Third Quarter

  

                   

   

Year to Date

  

 

 

2006

  

 

2005

    

2006

  

 

2005

  

 

 

      

(unaudited)

    

    

(unaudited)

  
                                 

Tropicana Atlantic City

 

    

 

 

              

 

    

  

Revenue

 

$

135.3

 

 

$

137.7

    

$

377.0

  

 

$

372.1

  

EBITDA

 

$

45.8

 

 

$

41.4

    

$

113.2

  

 

$

93.4

  

Depreciation and amortization

 

$

12.2

 

 

$

11.1

    

$

37.2

  

 

$

32.7

  

Operating income

 

$

33.6

  

 

$

30.3

    

$

76.0

  

 

$

60.7

  

 

 

    

 

 

              

 

    

  

EBITDA margin

 

  

33.9

%

 

  

30.1

%

    

30.0

%

 

  

25.1

%

Operating income margin

 

  

24.8

%

    

22.0

%

    

20.2

%

 

  

16.3

%
                                 

Occupancy

 

  

94.9

%

 

  

96.9

%

    

92.9

%

 

  

90.0

%

ADR

 

$

118.92  

 

$

113.33  

  

$

107.26  

 

$

98.26  
                                 

Tropicana Las Vegas

 

 

 

  

 

  

 

  

 

  

  

  

 

  

  

  

Revenue

 

$

40.8

  

 

$

40.0

    

$

121.3

  

 

$

124.0

  

EBITDA

 

$

9.6

  

 

$

8.5

    

$

27.3

  

 

$

30.2

  

Depreciation and amortization

 

$

1.3

  

 

$

1.4

    

$

4.0

  

 

$

4.3

  

Operating income

 

$

8.3

  

 

$

7.1

    

$

23.3

  

 

$

25.9

  

 

 

      

 

              

 

    

  

EBITDA margin

 

  

23.5

%

 

  

21.3

%

    

22.5

%

 

  

24.4

%

Operating income margin

 

  

20.3

%

 

  

17.8

%

    

19.2

%

 

  

20.9

%

 

 

      

 

              

 

    

  

Occupancy

 

  

96.6

%

 

  

98.1

%

    

96.1

%

 

  

98.5

%

ADR

 

$

75.08  

 

$

75.08  

  

$

85.05  

 

$

88.91  

 

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 4

Ramada Express Laughlin

 

  

         

  

 

  

          

  

                   

  

          

  

  

  

         

  

Revenue

 

$

22.7

  

 

$

22.6

  

  

$

74.7

  

  

$

72.5

  

EBITDA

 

$

5.3

  

 

$

5.5

  

  

$

20.3

  

  

$

20.3

  

Depreciation and amortization

 

$

1.8

  

 

$

1.8

  

  

$

5.6

  

  

$

5.1

  

Operating income

 

$

3.5

  

 

$

3.7

  

  

$

14.7

  

  

$

15.2

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

23.3

%

 

  

24.3

%

    

27.2

%

    

28.0

%

Operating income margin

 

  

15.4

%

 

  

16.4

%

    

19.7

%

 

  

21.0

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

71.3

%

    

68.9

%

    

73.7

%

    

73.4

%

ADR

 

$

36.74  

 

$

35.34  

  

$

36.34  

  

$

34.55  
                 

Casino Aztar Evansville

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

35.2

  

 

$

34.0

  

  

$

104.2

  

  

$

103.0

  

EBITDA

 

$

10.3

  

 

$

10.3

  

  

$

30.9

  

  

$

31.6

  

Depreciation and amortization

 

$

1.8

  

 

$

1.7

  

  

$

5.5

  

  

$

5.4

  

Operating income

 

$

8.5

  

 

$

8.6

  

  

$

25.4

  

  

$

26.2

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

29.3

%

 

  

30.3

%

    

29.7

%

    

30.7

%

Operating income margin

 

  

24.1

%

 

  

25.3

%

    

24.4

%

 

  

25.4

%

 

 

    

  

 

    

  

      

  

      

  

Occupancy

 

  

94.2

%

 

  

93.0

%

    

90.9

%

    

90.2

%

ADR

 

$

63.38  

 

$

63.29  

  

$

63.18  

  

$

63.64  
                                 

Property

 

    

  

 

    

  

      

  

      

  

Revenue

 

$

234.0

  

 

$

234.3

  

  

$

677.2

  

  

$

671.6

  

EBITDA

 

$

71.0

  

 

$

65.7

  

  

$

191.7

  

  

$

175.5

  

Depreciation and amortization

 

$

17.1

  

 

$

16.0

  

  

$

52.3

  

  

$

47.5

  

Operating income

 

$

53.9

  

 

$

49.7

  

  

$

139.4

  

  

$

128.0

  

 

 

    

  

 

    

  

      

  

      

  

EBITDA margin

 

  

30.3

%

 

  

28.0

%

    

28.3

%

    

26.1

%

Operating income margin

 

  

23.0

%

 

  

21.2

%

    

20.6

%

 

  

19.1

%

 

 

    

  

 

    

  

      

  

      

  

Corporate

 

    

  

 

    

  

      

  

      

  

EBITDA

 

$

( 5.7

)

 

$

( 3.8

)

  

$

( 97.4

)

  

$

( 17.0

)

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)

 

$

( 5.7

)

 

$

( 3.8

)

  

$

( 123.4

)

  

$

( 17.0

)

 

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 5

Consolidated

 

 

  

  

 

  

  

  

 

  

  

  

 

  

  

  

Revenue

 

$

234.0

 

 

$

234.3

    

$

677.2

  

 

$

671.6

  

EBITDA

 

$

65.3

  

 

$

61.9

    

$

94.3

  

 

$

158.5

  

Depreciation and amortization

 

$

17.1

 

 

$

16.0

    

$

52.3

  

 

$

47.5

  

Tropicana Las Vegas capitalized
  development costs write-off

  


$


0.0


 


$


0.0

    


$


26.0

    


$


0.0

  

Operating income

 

$

48.2

 

 

$

45.9

    

$

16.0

  

 

$

111.0

  

Income (loss) from continuing
  operations

 


$


 21.9


 

 


$


18.8

    


$


( 42.7


)

 


$


42.8

  
                                 

EBITDA margin

 

  

27.9

%

 

  

26.4

%

    

13.9

%

 

  

23.6

%

Operating income margin

 

  

20.6

%

 

  

19.6

%

    

2.4

%

 

  

16.5

%

Income (loss) from continuing
  operations margin

    


9.4


%

    


8.0


%

    


- - 6.3


%

    


6.4


%

Margins

Margins are calculated as a percentage of revenue.
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 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 EBITDA as t he 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

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 6

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 and net income (loss) as determined in accordance with GAAP is shown below (in millions).

                                                      

 

     

Third Quarter

  

                   

   

Year to Date

  

 

 

2006

  

 

2005

    

2006

  

 

2005

  

 

 

      

(unaudited)

    

    

(unaudited)

  

EBITDA

                                

    Tropicana Atlantic City

  

$

45.8

    

$

41.4

    

$

113.2

    

$

93.4

  

    Tropicana Las Vegas

    

9.6

      

8.5

      

27.3

      

30.2

  

    Ramada Express Laughlin

    

5.3

      

5.5

      

20.3

      

20.3

  

    Casino Aztar Evansville

  

       10.3

    

       10.3

    

      30.9

    

      31.6

  

      Property EBITDA

    

71.0

      

65.7

      

191.7

      

175.5

  

Corporate

    

( 5.7

)

    

( 3.8

)

    

( 123.4

)

    

( 17.0

)

Depreciation and amortization

  

    ( 17.1

)

  

    ( 16.0

)

  

    ( 52.3

)

  

    ( 47.5

)

Operating income

   

48.2

      

45.9

      

16.0

      

111.0

  

Other income (expense)

    

2.7

      

( 0.3

)

    

5.0

      

4.1

  

Interest income

    

0.4

      

0.5

      

1.3

      

1.0

  

Interest expense

    

( 14.1

)

    

( 14.2

)

    

( 42.4

)

    

( 42.3

)

Income taxes

  

    ( 15.3

)

  

    ( 13.1

)

  

    ( 22.6

)

  

    ( 31.0

)

Income (loss) from continuing
  operations

  



21.9


 



18.8

    



( 42.7


)

  



42.8

  

Discontinued operations, net of
  income taxes

  


         1.4

    


         0.6

    


         3.1

    


         1.9

  

Net income (loss)

  

$

23.3

    

$

19.4

    

$

( 39.6

)

  

$

44.7

  

 

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 7

Adjusted Diluted Earnings Per Share

                                                      

 

     

Third Quarter 

  

                   

  

Year to Date

  

 

 

2006

  

 

2005

    

2006

    

2005

  

 

 

      

(unaudited)

      

(unaudited)

  

Net income (loss) per common
  share assuming dilution:

                                

As reported

  

$

.60

    

$

.51

    

$

(1.14

)

  

$

1.19

  

Adjustments:

                                

  Construction accident related
    expenses

    


..01

      


..03

      


..07

      


..04

  

  Construction accident insurance
    recoveries

    


( .06


)

    


- --


   


(.19


)

    


(.01


)

  Other income (expense)

    

( .04

)

    

 --

      

(.08

)

    

(.06

)

  Merger related expenses

    

.03

      

--

      

2.18

      

--

  

  Tropicana Las Vegas capitalized
    development costs write-off

    


- --

      


- --

      


..45

      


- --

  

  Nonrecurring income tax
    benefits

    


- --

      


- --

      


(.09


)

    


- --

  

  Defined benefit plan settlement
    loss

    


- --

      


- --

      


- --

      


..05

  

  Guarantee fee

--

    

( .03

)

  

--

    

( .03

)

  Effect of dilution on net loss

--

    

  --

    

.06

    

  --

  

As adjusted

  

$

.54

    

$

.51

    

$

1.26

    

$

1.18

  

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

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 8

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 differ 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 with Columbia Entertainment;
  • the ability of Columbia Entertainment to obtain the acquisition financing pursuant to its financing commitment letter 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;
  • the potential impact of the announcement of the merger, and the merger, on relations with customers, partners, suppliers, vendors and other third parties;
  • the potential relative underperformance of the Tropicana Resort and Casino in Las Vegas, Nevada, due to our reduced efforts to engage in marketing of, and accepting

reservations at, this property until the date of the merger agreement, in light of our previously contemplated redevelopment of the site;

  • the potential inability of us or Columbia Entertainment to satisfy the closing conditions in the merger agreement;

Aztar Third Quarter Earnings Release
October 18, 2006                             Page 9

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 release or to reflect the occurrence of unanticipated events, except as required by applicable law.

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

 

Aztar Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
For the periods ended September 30, 2006 and September 29, 2005
(in thousands, except per share data)

                                                                                     

 

          Third Quarter        

 

  

          Nine Months         

  

 

 

     2006     

 

  

      2005    

 

  

     2006     

 

  

     2005     

  

Revenues

  

 

               

 

 

    

 

 

 

               

 

 

      

    

Casino

 

$

175,150

 

  

$

177,744

 

  

$

510,268

 

  

$

508,548

  

    

Rooms

 

  

28,559

 

    

26,997

 

    

81,817

 

    

80,223

  

 

Food and beverage

 

  

14,855

 

    

14,840

 

    

44,670

 

    

44,633

  

 

Other

 

       15,400

 

  

       14,673

 

  

      40,405

 

  

      38,164

  

 

  

 

233,964

 

  

234,254

 

  

677,160

 

  

671,568

  

Costs and expenses

 

    

 

      

 

      

 

        

 

Casino

 

  

66,111

 

    

68,953

 

    

199,898

 

    

201,348

  

 

Rooms

 

  

12,752

 

    

12,538

 

    

37,010

 

    

36,232

  

 

Food and beverage

 

  

14,189

 

    

14,061

 

    

43,444

 

    

42,426

  

 

Other

 

  

7,456

 

    

7,626

 

    

22,088

 

    

22,535

  

 

Marketing

 

  

20,760

 

    

21,287

 

    

61,394

 

    

69,102

  

 

General and administrative

 

  

20,663

 

    

20,877

 

    

66,459

 

    

67,952

  

 

Utilities

 

  

7,767

 

    

7,628

 

    

19,617

 

    

19,712

  

 

Repairs and maintenance

 

  

7,026

 

    

6,879

 

    

20,963

 

    

19,887

  

 

Provision for doubtful accounts

 

  

913

 

    

636

 

    

1,991

 

    

1,343

  

 

Property taxes and insurance

 

  

10,275

 

    

8,506

 

    

27,740

 

    

24,381

  

 

Rent

 

  

2,465

 

    

1,949

 

    

7,203

 

    

5,972

  

 

Construction accident related

 

  

1,019

 

    

1,383

 

    

4,660

 

    

2,652

  
 

Construction accident insurance recoveries

  

       ( 3,871

)

  

       --

    

     ( 12,229

)

  

       ( 526

)

 

Merger related

 

  

1,176

 

    

--

 

    

82,536

 

    

--

  

 

Depreciation and amortization

 

  

17,107

 

    

16,028

 

    

52,349

 

    

47,525

  
 

Tropicana Las Vegas capitalized development

                        

 

  costs write-off

 

                --

 

  

                --

 

  

       26,021

 

  

                --

  

 

 

 

     185,808

 

  

     188,351

 

  

     661,144

 

  

     560,541

  

 

 

    

 

      

 

      

 

        

Operating income

 

  

48,156

      

45,903

      

16,016

      

111,027

  
                                   
 

Other income (expense)

    

2,712

      

( 267

)

    

4,954

      

4,161

  

 

Interest income

 

  

395

 

    

465

      

1,315

 

    

1,001

  

 

Interest expense

 

     ( 14,106

)

  

     ( 14,256

)

  

     ( 42,389

)

  

     ( 42,324

)
                                 

Income (loss) from continuing operations before

 

    

 

              

 

        

  income taxes

 

  

 37,157

      

31,845

      

( 20,104

)

    

73,865

  
                           

 

Income taxes

 

     ( 15,310

)

  

     ( 13,075

)

  

     ( 22,577

)

  

     ( 31,029

)
                                 

Income (loss) from continuing operations

 

  

21,847

      

18,770

      

( 42,681

)

    

42,836

  

Discontinued operations, net of income taxes

 

         1,416

    

            613

    

         3,051

    

         1,911

  
 

 

    

 

                        

Net income (loss)

 

$

     23,263

    

$

     19,383

    

$

   (39,630

)

  

$

     44,747

  
   

========

    

========

    

========

    

========

  

Earnings per common share assuming no dilution:

                                
 

Income (loss) from continuing operations

  

$

.58

    

$

.52

    

$

( 1.22

)

  

$

1.20

  
 

Discontinued operations, net of income taxes

  

             .04

    

             .02

    

             .08

    

             .05

  
 

Net income (loss)

  

$

.62

    

$

.54

    

$

( 1.14

)

  

$

1.25

  
                                 

Earnings per common share assuming dilution:

                                
 

Income (loss) from continuing operations

  

$

.56

    

$

.50

    

$

( 1.22

)

  

$

1.14

  
 

Discontinued operations, net of income taxes

  

             .04

    

             .01

    

             .08

    

             .05

  
 

Net income (loss)

  

$

.60

    

$

.51

    

$

( 1.14

)

  

$

1.19

  
                                 

Weighted-average common shares applicable to:

                                
 

Earnings per common share assuming no dilution

    

36,483

      

35,642

      

36,172

      

35,190

  
 

Earnings per common share assuming dilution

    

38,084

      

37,351

      

36,172

      

37,065

  

 


Aztar Corporation and Subsidiaries
Consolidated Balance Sheets (unaudited)
 (in thousands, except share data)

                                                                                      

September 30, 2006 

  

December 31, 2005

Assets

 

                 

        

Current assets:

                

  

Cash and cash equivalents

 

$

76,179

    

$

86,361

  
 

Accounts receivable, net

  

24,761

    

26,469

  
 

Construction accident receivables

  

9,352

    

2,949

  
 

Refundable income taxes

  

--

    

1,288

  
 

Inventories

  

8,105

    

7,350

  
 

Prepaid expenses

  

19,003

    

13,394

  
 

Deferred income taxes

  

          10,567

    

           11,026

  

  

  

Total current assets

 

  

147,967

      

148,837

  

Assets held for sale

    

34,780

      

33,559

  

Investments

 

  

27,483

      

25,215

  

Property and equipment:

 

              
 

Buildings, riverboats and equipment, net

    

964,552

      

986,025

  
 

Land

    

207,513

      

207,514

  
 

Construction in progress

    

45,680

      

18,339

  
 

Leased under capital leases, net

  

                 86

    

                    9

  
       

1,217,831

      

1,211,887

  

Intangible assets

    

33,228

      

33,331

  

Other assets

 

          85,363

    

         102,505

  

  

 

$

1,546,652

    

$

1,555,334

  

  

 

=========

    

=========

  

Liabilities and Shareholders' Equity 

 

              

Current liabilities:

                
 

Accounts payable and accruals

  

$

76,252

    

$

91,369

  
 

Accrued payroll and employee benefits

    

25,261

      

25,765

  
 

Accrued interest payable

    

9,840

      

7,577

  
 

Accrued rent

    

231

      

760

  
 

Income taxes payable

    

9,573

      

--

  

  

Current portion of long-term debt

 

  

4,230

      

1,293

  
 

Current portion of other long-term liabilities

    

808

      

824

  
 

Merger termination fee reimbursement

    

78,000

      

--

  
 

Liabilities related to assets held for sale

  

            1,894

    

             2,495

  

  

  

Total current liabilities

 

  

206,089

      

130,083

  

Long-term debt

    

662,614

      

721,676

  

Other long-term liabilities

    

16,840

      

16,419

  

Deferred income taxes

    

42,443

      

46,006

  

Contingencies and commitments

                

Series B convertible preferred stock

 

              
 

(redemption value $23,580 and $15,107)

  

4,264

    

4,620

  

Shareholders' equity:

            
 

Common stock, $.01 par value (36,490,231 and

           
   

35,778,952 shares outstanding)

  

554

    

546

  
 

Paid-in capital

  

501,175

    

474,637

  
 

Retained earnings

  

332,715

    

373,897

  
 

Accumulated other comprehensive loss

  

(1,899

)

    

(1,899

)
 

Less: Treasury stock

  

       (218,143

)

    

       (210,651

)

  
   

Total shareholders' equity

  

        614,402

    

        636,530

  
 

 

$

1,546,652

    

$

1,555,334

  
 

 

=========

    

=========

  
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