On Wednesday, in what was likely its last quarterly earnings report as a publicly traded company, Aztar said its earnings per share climbed during the third quarter although revenue dropped.
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Phoenix-based Aztar, which operates the Tropicana and is being purchased by Kentucky-based Columbia Sussex Corp. for $2.75 billion, said it earned $23.3 million in the quarter ended Sept. 30, an increase of 20 percent compared with $19.4 million in the same quarter a year ago.
Before charges and gains, the company earned 60 cents per share in the quarter, beating both 51 cents a share earned the same period a year ago and the 49 cents a share forecast by analysts polled by Thomson First Call. Aztar didn't include revenue from a Missouri casino the company sold in its results.
Company revenue was $234 million, down 0.1 percent from $234.3 million a year ago.
The Tropicana Las Vegas had a drop in both revenue and earnings during the second quarter when Aztar began making plans to close the casino. But the property recovered over the past three months.
Revenue at the Tropicana was $40.8 million, up from $40 million a year ago. Cash flow, defined as earnings before interest, taxes, depreciation and amortization, was $9.6 million, compared with $8.5 million a year earlier.
Aztar executives, in a brief conference call with analysts and investors, said the Las Vegas property recaptured lost business when news of the buyout was released.
Aztar's other Nevada casino, the Ramada Express in Laughlin, reported a 0.4 percent revenue increase during the quarter to $22.7 million from $22.6 million.
On Tuesday, Aztar shareholders approved the buyout, in which privately held Columbia Sussex will pay $54 a share for each outstanding Aztar share in an all-cash deal, assume Aztar's $676 million in debt and convert Aztar's bonds.
Nevada gaming regulators are scheduled to explore the transaction next month. Approvals are also being sought from gaming regulators in Indiana and New Jersey.
Aztar Chairman Bob Haddock said only Mississippi gaming officials have approved the financial structure of the buyout.
With the companies hoping to close the transaction by December, Haddock made note of the conference call possibly being Aztar's last.
"I just wanted to take the opportunity to thank all the folks who have been with us over the years, especially our investors," Haddock said.
Only four questions were asked on the conference call. Much of the interest focused on the Tropicana Atlantic City, which had a slight decline in overall revenue during the quarter. Aztar officials laid part of the blame for the drop on a three-day state-mandated casino closure in July because of a New Jersey government budget crisis.
Haddock said he hoped the Columbia Sussex buyout will close by year's end, because the purchaser wants it completed as soon as possible.
The purchase agreement calls for the transaction to close by Nov. 19, or else the price per share will increase less than a penny per share a day. The price goes up by just less than 2 cents per share a day if the deal isn't closed by Feb. 19.
Once the deal closes, Columbia Sussex will operate 13 casinos in Nevada, Louisiana, Mississippi, Illinois, Indiana and New Jersey. The company's New Orleans riverboat was destroyed a year ago by Hurricane Katrina and is being moved to a neighboring city.
Aztar shares fell 2 cents, or 0.02 percent, Wednesday to close at $53.30 on the New York Stock Exchange.
MISSISSIPPI CASINOS POST RECORD WIN
BILOXI, Miss. -- Driven by the recent reopenings of coastal casinos destroyed by Hurricane Katrina, the state's gambling establishments took in a record $241 million during the month of September.
It was the most money made during that month since 1992, when gambling was legalized, the monthly report, released Wednesday by the Mississippi State Tax Commission, shows.
The figures come after late summer reopenings of Beau Rivage, Grand Casino Biloxi, Hollywood Casino and Island View Casino that helped Gulf Coast casinos earn $109.8 million.
Pre-Katrina, the casinos made $86.5 million in September 2004 and $93.3 million in September 2003.
Casinos in Tunica and along the Mississippi River also had their best September since 1992, with earnings of $131.2 million.
It also was the most profitable month of the year.
"This is no surprise to us," said Larry Gregory, the Mississippi Gaming Commission's executive director. "We've been telling everyone all along that Mississippi gaming would return with more revenue, more taxes and more jobs than it had pre-Katrina."
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MISSISSIPPI CASINOS POST RECORD WIN
BILOXI, Miss. -- Driven by the recent reopenings of coastal casinos destroyed by Hurricane Katrina, the state's gambling establishments took in a record $241 million during the month of September.
It was the most money made during that month since 1992, when gambling was legalized, the monthly report, released Wednesday by the Mississippi State Tax Commission, shows.
The figures come after late summer reopenings of Beau Rivage, Grand Casino Biloxi, Hollywood Casino and Island View Casino that helped Gulf Coast casinos earn $109.8 million.
Pre-Katrina, the casinos made $86.5 million in September 2004 and $93.3 million in September 2003.
Casinos in Tunica and along the Mississippi River also had their best September since 1992, with earnings of $131.2 million.
It also was the most profitable month of the year.
"This is no surprise to us," said Larry Gregory, the Mississippi Gaming Commission's executive director. "We've been telling everyone all along that Mississippi gaming would return with more revenue, more taxes and more jobs than it had pre-Katrina."
