Profits up for Aztar Hard Rock, Ameristar

Wednesday, July 24, 2002 | 11:15 a.m.

Aztar Corp., owner of the Tropicana resorts in Las Vegas and Atlantic City, today reported a profit for its second quarter ending July 4 of $16.5 million, up from $16 million in the year-ago quarter.

The Phoenix company's results were hurt by higher taxes in New Jersey.

Revenue was flat at $211.1 million.

But cash flow was strong, with earnings per share, before the effect of the tax hike, of 46 cents vs. 40 cents in the year-ago quarter. The cash flow measure EBITDAR -- operating income before depreciation and amortization, and rent -- of $54.8 million was up from $52.7 million in the year-ago quarter.

The company said its quarterly results include a New Jersey income tax provision of $1.8 million or 4 cents per share. The tax hike is expected an ongoing basis to reduce earnings per share by 2 cents per quarter.

The Tropicana Casino and Resort in Atlantic City reported second-quarter revenue of $114.5 million, down 2 percent from the prior year because of a lower hold percentage on slots and other factors. EBITDAR was $33.3 million vs. $33.0 million in the prior year's quarter.

The Tropicana Resort and Casino in Las Vegas reported second quarter revenue of $39.2 million vs. $39.7 million in the prior year. EBITDAR was $8.5 million versus $8 million a year ago. EBITDAR margin was 21.7 percent versus 20.1 percent in last year's quarter.

The Ramada Express Hotel and Casino in Laughlin reported second quarter revenue of $23.9 million, flat with last year. EBITDAR was $6.2 million versus $6 million in the year-earlier quarter.

Casino Aztar, the company's riverboat casino in Evansville, Ind., had revenue of $27.4 million vs. $25 million, up 10 percent. EBITDAR was $8.6 million, up from $8 million a year earlier.

Casino Aztar, the company's riverboat casino in Caruthersville, Mo., had revenue of $6.1 million, up from $6 million. EBITDAR was $1.2 million vs. $1 million in the prior year.

Hard Rock Hotel

Hard Rock Hotel Inc., owner of the Hard Rock Hotel & Casino in Las Vegas, Tuesday reported quarterly net revenues, EBITDA and net income of $34.1 million, $9.7 million and $3.7 million, respectively, for the quarter ended June 30.

Hard Rock said second quarter net income increased 61 percent and cash flow was up 4 percent.

The company reported revenues improved due to increases in table games volume and hold percentage and food and beverage revenues -- but were offset partially by reductions in slot volume and hold percentage compared with the year-earlier period. Average daily hotel rates and occupancy and retail sales were flat.

Ameristar

Ameristar Casinos Inc. of Las Vegas, operator of casinos in Missouri, Iowa, Mississippi and Northern Nevada, reported net income of $12.6 million, up $3.7 million, or 41.6 percent, from the second quarter of 2001. Non-recurring charges at Ameristar St. Charles, Mo., reduced second quarter 2002 net income by $3.6 million.

Earnings per share of 47 cents were up from 40 cents. Ameristar said earnings per share before non-recurring charges were 60 cents, exceeding analysts' consensus expectations of 57 cents, as reported by Thomson's First Call.

Revenues of $166.3 million were up 13 percent.

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