Operating results improve for Tropicana owner Aztar

Wednesday, Feb. 2, 2000 | 10:54 a.m.

Aztar Corp. said today fourth-quarter operating results improved, though the company posted a loss for the period due to an $11.3 million charge for early retirement of debt.

The company, which operates the Tropicana hotel-casino in Las Vegas, posted a $6.5 million loss for the quarter ended Dec. 30, compared with net income of $1.5 million, or 3 cents a share, in the year-ago quarter.

Revenue slipped to $194.3 million from $196.1 million, Aztar said.

Operating cash flow rose to a record $36.5 million from $35.6 million in the 1998 final quarter. The gain was helped by a cash-flow increases to $4.4 million from $2.7 million at the Las Vegas Tropicana and to $22.8 million from $21.4 million at the Atlantic City Tropicana.

Operating cash flow of $4.9 million at the Ramada Express in Laughlin was similar to the year-ago quarter's number, while it fell to $7 million from $9.2 million at the Casino Aztar in Evansville, Ind. Cash flow rose to $700,000 from $400,000 at the Casino Aztar in Caruthersville, Mo.

For all of 1999, Aztar reported net income of $6.4 million, or 12 cents a share, compared with net of $10.2 million, or 20 cents a share, in 1998. Revenue dipped to $800.3 million from $806.1 million.

The 1999 net reflected an after-tax charge of $15.7 million, or 34 cents a share, related to early retirement of debt.

During 1999, Aztar refinanced its high-cost fixed-yield debt. Had the new, lower interest rates been in effect for the full year, Aztar said, it would have saved $18 million in borrowing costs from 1998.

"Four out of five of the company's properties had higher levels of operating cash flow in 1999 than in the prior year," Aztar Chairman Paul Rubeli said.

Full-year cash flow rose to $160.5 million from $154.5 million in 1998 "despite the significant impact of new competition on our casino riverboat in Evansville," Rubeli said.

The company also bought back 3.7 million shares, or about 8 percent of those outstanding as of last May, during 1999 at an average price of $9.61 a share.

Rubeli said Aztar plans to use 80 percent of year 2000 cash flow to buy back more shares, 15 percent to reduce debt and 5 percent for capital spending beyond routine maintenance.