Aztar posts improved results

Aztar Corp. of Phoenix said today improved performances at all five of its casino properties led to net income of $1.5 million, or 3 cents a share, in the fourth quarter, compared with a net loss of $4.9 million in the year-ago quarter.

Revenue rose to $196.1 million from $190.3 million, Aztar said.

Full-year net jumped to $10.2 million, or 24 cents a share, from $4.4 million, or 8 cents a share, in 1997. Revenue climbed to $806.1 million from $782.4 million.

The company said it achieved record fourth-quarter operating cash flow and operating income levels in the fourth quarter. For the full year, operating cash flow rose 10 percent to a record $154.5 million.

"We are continuing to pay down our bank debt and are planning to refinance part or all of our public debt later this year," Aztar Chairman Paul Rubeli said.

"In particular, the refinancing of our 13.75 percent bonds will be a high priority. Depending on capital market conditions, this refinancing should reduce interest expense by approximately $10 million a year commencing in October 1999, which would substantially increase free cash flow and earnings.'

Aztar's Tropicana resort in Las Vegas posted a $2.5 million operating loss in the fourth quarter, raising the full-year loss to $10.6 million. On Tuesday, Aztar said it had extended the option to buy the 50 percent stake it doesn't own in the Tropicana and is attempting to boost cash flow at the resort to cover about $13 million a year in partnership costs.

The Tropicana Atlantic City recorded its ninth consecutive quarter of cash-flow increases, while the company's riverboat casinos in Evansville, Ind. and Caruthersville, Mo., and Ramada Express in Laughlin also posted higher cash flow in the quarter.

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