Gaming Strategy
Featured Stories
Legal News Financial News Casino Opening and Remodeling News Gaming Industry Executives Search News Subscribe
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Search Our Archive of Gaming Articles 

Aztar Reports Q4 Results

16 February 2006

PHOENIX, Arizona – (PRESS RELEASE) -- Aztar Corporation (NYSE: AZR) today reported financial results for its 2005 fourth quarter, which ended on December 31, 2005 and included 93 days; the fiscal 2004 fourth quarter, which ended on December 30, 2004, had 91 days and no New Year's Eve, which is a highly profitable day. Consolidated EBITDA was $48.6 million for the fourth quarter of 2005; in the 2004 fourth quarter, EBITDA was $25.6 million. Diluted earnings per share in the 2005 fourth quarter were 29 cents, compared with five cents in the 2004 fourth quarter.

The company's year-over-year EBITDA growth in the fourth quarter resulted primarily from continuing momentum generated by the major expansion of Tropicana Atlantic City that opened in late 2004. During the fourth quarter, the Tropicana substantially outpaced all of its Atlantic City competitors in growth in slot revenue (31%) and total casino revenue (24%).

"All of our properties posted solid results during the fourth quarter, but we are particularly pleased by the performance of Tropicana Atlantic City," said Robert M. Haddock, Aztar Chairman of the Board, President and Chief Executive Officer. "The continuing operating improvement at the Tropicana is manifest in its year-long growth in slot revenue, which has accelerated each and every quarter during the 2005 calendar year. With a 21% increase in slot revenue in January, Tropicana Atlantic City is off to a good start in 2006."

Tropicana Atlantic City Expansion

The Tropicana Atlantic City expansion, which opened in late November 2004, includes a new 502-room hotel tower; The Quarter at Tropicana, which is a 200,000-square-foot dining, entertainment and retail complex; a 2,400-space parking garage and 20,000 square feet of meeting and conference space.

Other Income

Other income of $1.8 million for the fourth quarter of 2005 versus $3.6 million in the fourth quarter of 2004 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 and in the 2004 quarter, net of costs to dismantle and repair the damaged structure.

Capital Expenditures

In the fourth quarter of 2005, purchases of property and equipment totaled $18 million, all on routine expenditures.

Full-Year Results

For 2005, the company reported EBITDA of $212.0 million, compared with $165.4 million in 2004. Diluted earnings per share in 2005 were $1.49. Diluted earnings per share were 76 cents in 2004, which is after 19 cents associated with a loss on early retirement of debt and 31 cents associated with an adverse court ruling regarding income taxes in Indiana and which included 15 cents of construction accident insurance recoveries net of expenses and preopening costs.

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 2005 year reflects the Company's results of operations for a 366-day period beginning December 31, 2004 and includes the two-day transition period of December 30 and 31, 2005.

< Gaming News