Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ISLE OF CAPRI CASINOS INC | a09-34585_18k.htm |
Exhibit 99.1
ISLE OF CAPRI CASINOS ANNOUNCES
FISCAL 2010 SECOND QUARTER RESULTS
* Despite economic challenges, Isle increases market share, EBITDA or operating margins at half of its properties compared to prior year
* Strategic focus remains on long-term financial success
* Completes sale of operating assets in the United Kingdom
SAINT LOUIS, MO – December 1, 2009 – Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the second quarter of the Company’s 2010 fiscal year ended October 25, 2009.
In making the announcement, James B. Perry, the Company’s chairman and chief executive officer, said, “In an environment plagued with low consumer confidence, our ongoing improvement initiatives are proving successful. We began an aggressive effort to realign our cost structure two years ago, and have since become more efficient while improving the customer experience according to our metrics.
“While we will continue to save where it makes sense, it is important to reaffirm our commitment to the long-term success of our business. We carefully evaluate making major changes to the customer experience which could negatively impact our business for years to come. Additionally, we completed the sale of a majority of our Blue Chip operating casino assets this week, completed our exit from the property in Grand Bahama last week, and expect to liquidate our remaining United Kingdom net assets before the end of our current fiscal year. We remain focused on exploring new domestic management and development opportunities.
“Overall, I am proud of the focus of our team as we continue to work our way through the most challenging economic environment I have seen during my career. Our business is smarter and stronger today, and we are actively engaged in identifying growth opportunities for the future.”
Consolidated Results
The following table outlines the Company’s financial results (dollars in millions, except per share data, unaudited):
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Net revenues |
|
$ |
247.4 |
|
$ |
249.6 |
|
$ |
507.3 |
|
$ |
527.0 |
|
|
EBITDA(1) |
|
41.3 |
|
36.7 |
|
89.7 |
|
89.7 |
|
||||
|
Income (loss) from continuing operations |
|
1.8 |
|
(10.7 |
) |
2.6 |
|
(13.3 |
) |
||||
|
Net income (loss) |
|
1.6 |
|
(13.5 |
) |
2.5 |
|
(17.1 |
) |
||||
|
Income (loss) per share from continuing operations |
|
0.06 |
|
(0.34 |
) |
0.08 |
|
(0.43 |
) |
||||
|
Net income (loss) per share |
|
0.05 |
|
(0.43 |
) |
0.08 |
|
(0.55 |
) |
||||
Significant items impacting EBITDA during the three and six months ended October 25, 2009 and October 26, 2008 are as follows:
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Expense recoveries - Pittsburgh development cost(2) |
|
$ |
6.8 |
|
$ |
— |
|
$ |
6.8 |
|
$ |
— |
|
|
Portland development expense(2) |
|
— |
|
— |
|
— |
|
(6.0 |
) |
||||
|
Marquette hotel demolition(3) |
|
(0.5 |
) |
— |
|
(0.5 |
) |
— |
|
||||
|
Caruthersville property tax settlement(4) |
|
0.9 |
|
— |
|
0.9 |
|
— |
|
||||
|
|
|
$ |
7.2 |
|
$ |
— |
|
$ |
7.2 |
|
$ |
(6.0 |
) |
Second Quarter Highlights
During the quarter, net revenues decreased by 0.9% to $247.4 million compared to the second quarter of FY 2009. EBITDA from continuing operations for the second quarter of FY 2010 was $41.3 million, compared to $36.7 million for the second quarter of FY 2009.
Before consideration of the items reflected in the table above, EBITDA from continuing operations for the second quarter of FY 2010 was $34.1 million, compared to $36.7 million for the second quarter of FY 2009. Property EBITDA decreased $3.7 million from the prior year to $46.1 million.
Before consideration of the items reflected in the table above, EBITDA from continuing operations for the six months ended October 25, 2009 was $82.4 million, compared to $95.7 million for six months ended October 26, 2008. Property EBITDA decreased $14.7 million from the prior year to $104.3 million.
Virginia McDowell, the Company’s president and chief operating officer, said, “We view this not only as a period of economic difficulty, but also as a period of opportunity. We are employing different strategies in each market to best position our operations for long-term financial success, and as a result, we have increased market share, EBITDA or operating margins in at least one-half of our properties since last year. Importantly, as we continue to position our business for greater financial success upon changes in consumer spending, we have increased our rated visitation at nine of our eleven properties outside of Missouri, where recent regulatory changes have made this difficult to track in the immediate term. We are introducing new customers to our improved products and service, but the challenge remains average customer spending.
“Now realizing the majority of the financial benefits of our aggressive cost containment measures compared to prior year, we are continuously implementing changes to our back-of-house operating strategies and customer experience amenities designed to drive incremental revenue and impact future earnings.
“Our properties in Missouri performed well due to both operational and regulatory changes, in particular the rebranding of our Caruthersville property to a Lady Luck and new initiatives in Kansas City that have increased earnings. In Colorado, we have benefited from recent regulatory
reforms and are optimistic that we can improve our performance. Overall the reforms have been a win for all parties in both states, as we have increased our revenues, the associated tax base for the governments has grown and customers are receiving a better experience. Additionally, through cost savings and marketing initiatives we were able to maintain relative stability at our properties in Mississippi despite a large decrease in overall market revenue.
“While we performed well overall, the competitive landscape in three markets presented difficulties during the quarter that we continue to address. In Iowa, the introduction or expansion of several new facilities has had a significant negative impact on our revenues and earnings, and we are exploring new strategies to improve our market share there as the trial period for the newer facilities fades. In Lake Charles, we are making changes at the property that will allow us to compete more effectively in a highly promotional market. Finally, in Florida, we remain committed to working with the government to end the days of having to operate on an extraordinarily uneven playing field, which is currently destroying earnings for tax-paying commercial operators and potentially putting thousands of good jobs at stake.”
Corporate and Other Expenses
Corporate and other expenses decreased $1.1 million to $13.3 million for the three months ended October 25, 2009 compared to prior year. Non-cash stock compensation expense decreased $0.2 million and $1.1 million in the three and six months ended October 25, 2009, respectively, to $2.6 million and $3.7 million, when compared to prior year.
Interest expense for the quarter was $17.9 million, a decline of approximately $6.3 million compared to the prior fiscal year, primarily as a result of lower debt levels.
Income tax benefit for the three and six months ended October 25, 2009 includes the favorable impact of $4.7 million from the settlement of state tax matters.
Capital Structure and Capital Expenditures
As of October 25, 2009, the Company had $76.1 million in cash and cash equivalents and total debt of $1.2 billion. Capital expenditures for the six months ended October 25, 2009 totaled $15.3 million, which included approximately $13 million of maintenance capital expenditures. We expect maintenance capital expenditures for the rest of the fiscal year to be approximately $25 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December 1, 2009 at 10:00 am Central Time during which management will discuss the financial and other matters addressed in this press release. The conference call can be accessed by interested parties via webcast through the investor relations page of the Company’s website, www.islecorp.com, or, for domestic callers, by dialing (877) 917-8929. International callers can access the conference call by dialing (517) 308-9020. The conference call access code is 9056848. This conference call will be recorded and available for review starting at noon on December 1, 2009, until December 8, 2009, by dialing (866) 459-3540 for domestic callers or (203) 369-1329 for International callers. The access code will be 875962.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||
|
Casino |
|
$ |
252,192 |
|
$ |
251,828 |
|
$ |
516,148 |
|
$ |
528,614 |
|
|
Rooms |
|
11,803 |
|
12,774 |
|
24,064 |
|
26,480 |
|
||||
|
Pari-mutuel, food, beverage and other |
|
33,786 |
|
32,981 |
|
68,656 |
|
69,528 |
|
||||
|
Gross revenues |
|
297,781 |
|
297,583 |
|
608,868 |
|
624,622 |
|
||||
|
Less promotional allowances |
|
(50,415 |
) |
(48,005 |
) |
(101,560 |
) |
(97,649 |
) |
||||
|
Net revenues |
|
247,366 |
|
249,578 |
|
507,308 |
|
526,973 |
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Casino |
|
40,289 |
|
37,791 |
|
80,283 |
|
76,332 |
|
||||
|
Gaming taxes |
|
64,509 |
|
63,318 |
|
130,937 |
|
133,976 |
|
||||
|
Rooms |
|
2,766 |
|
3,193 |
|
5,747 |
|
6,582 |
|
||||
|
Pari-mutuel, food, beverage and other |
|
11,569 |
|
12,473 |
|
22,727 |
|
26,134 |
|
||||
|
Marine and facilities |
|
16,417 |
|
17,027 |
|
32,371 |
|
33,497 |
|
||||
|
Marketing and administrative |
|
64,947 |
|
65,872 |
|
130,064 |
|
131,226 |
|
||||
|
Corporate and development |
|
12,340 |
|
13,201 |
|
22,285 |
|
23,531 |
|
||||
|
Expense recoveries and other charges |
|
(6,762 |
) |
— |
|
(6,762 |
) |
6,000 |
|
||||
|
Depreciation and amortization |
|
28,437 |
|
30,935 |
|
57,266 |
|
62,501 |
|
||||
|
Total operating expenses |
|
234,512 |
|
243,810 |
|
474,918 |
|
499,779 |
|
||||
|
Operating income |
|
12,854 |
|
5,768 |
|
32,390 |
|
27,194 |
|
||||
|
Interest expense |
|
(17,883 |
) |
(24,225 |
) |
(36,230 |
) |
(48,122 |
) |
||||
|
Interest income |
|
400 |
|
450 |
|
769 |
|
896 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss from continuing operations before income taxes |
|
(4,629 |
) |
(18,007 |
) |
(3,071 |
) |
(20,032 |
) |
||||
|
Income tax benefit |
|
6,411 |
|
7,337 |
|
5,644 |
|
6,722 |
|
||||
|
Income (loss) from continuing operations |
|
1,782 |
|
(10,670 |
) |
2,573 |
|
(13,310 |
) |
||||
|
Loss from discontinued operations, net of income taxes |
|
(220 |
) |
(2,830 |
) |
(106 |
) |
(3,816 |
) |
||||
|
Net income (loss) |
|
$ |
1,562 |
|
$ |
(13,500 |
) |
$ |
2,467 |
|
$ |
(17,126 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income (loss) per common share-basic and dilutive: |
|
|
|
|
|
|
|
|
|
||||
|
Income (loss) from continuing operations |
|
$ |
0.06 |
|
$ |
(0.34 |
) |
$ |
0.08 |
|
$ |
(0.43 |
) |
|
Loss from discontinued operations, net of income taxes |
|
(0.01 |
) |
(0.09 |
) |
— |
|
(0.12 |
) |
||||
|
Net income (loss) |
|
$ |
0.05 |
|
$ |
(0.43 |
) |
$ |
0.08 |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average basic shares |
|
32,319,789 |
|
31,171,903 |
|
32,049,444 |
|
31,019,289 |
|
||||
|
Weighted average diluted shares |
|
32,511,462 |
|
31,171,903 |
|
32,251,102 |
|
31,019,289 |
|
||||
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
|
|
|
October 25, |
|
April 26, |
|
||
|
|
|
2009 |
|
2009 |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
76,056 |
|
$ |
96,654 |
|
|
Marketable securities |
|
18,624 |
|
17,548 |
|
||
|
Accounts receivable, net |
|
9,189 |
|
11,935 |
|
||
|
Income taxes receivable |
|
2,312 |
|
7,744 |
|
||
|
Deferred income taxes |
|
16,295 |
|
16,295 |
|
||
|
Prepaid expenses and other assets |
|
32,908 |
|
23,234 |
|
||
|
Assets held for sale |
|
4,525 |
|
4,183 |
|
||
|
Total current assets |
|
159,909 |
|
177,593 |
|
||
|
Property and equipment, net |
|
1,137,534 |
|
1,177,540 |
|
||
|
Other assets: |
|
|
|
|
|
||
|
Goodwill |
|
313,136 |
|
313,136 |
|
||
|
Other intangible assets, net |
|
81,631 |
|
83,588 |
|
||
|
Deferred financing costs, net |
|
8,150 |
|
9,314 |
|
||
|
Restricted cash |
|
2,774 |
|
2,774 |
|
||
|
Prepaid deposits and other |
|
23,219 |
|
18,717 |
|
||
|
Total assets |
|
$ |
1,726,353 |
|
$ |
1,782,662 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Current maturities of long-term debt |
|
$ |
9,806 |
|
$ |
9,688 |
|
|
Accounts payable |
|
20,307 |
|
16,246 |
|
||
|
Accrued liabilities: |
|
|
|
|
|
||
|
Interest |
|
14,934 |
|
9,280 |
|
||
|
Payroll and related |
|
43,712 |
|
47,209 |
|
||
|
Property and other taxes |
|
36,914 |
|
31,487 |
|
||
|
Other |
|
44,411 |
|
52,195 |
|
||
|
Liabilities related to assets held for sale |
|
2,177 |
|
1,888 |
|
||
|
Total current liabilities |
|
172,261 |
|
167,993 |
|
||
|
Long-term debt, less current maturities |
|
1,228,918 |
|
1,291,384 |
|
||
|
Deferred income taxes |
|
27,043 |
|
24,970 |
|
||
|
Other accrued liabilities |
|
42,255 |
|
52,575 |
|
||
|
Other long-term liabilities |
|
17,242 |
|
17,314 |
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued |
|
— |
|
— |
|
||
|
Common stock, $.01 par value; 45,000,000 shares authorized; shares issued: 36,753,733 at October 25, 2009 and 36,111,089 at April 26, 2009 |
|
368 |
|
361 |
|
||
|
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
|
— |
|
— |
|
||
|
Additional paid-in capital |
|
197,876 |
|
193,827 |
|
||
|
Retained earnings |
|
104,295 |
|
101,828 |
|
||
|
Accumulated other comprehensive (loss) income |
|
(11,798 |
) |
(15,191 |
) |
||
|
|
|
290,741 |
|
280,825 |
|
||
|
Treasury stock, 4,326,242 shares at October 25, 2009 and 4,340,436 shares at April 26, 2009 |
|
(52,107 |
) |
(52,399 |
) |
||
|
Total stockholders’ equity |
|
238,634 |
|
228,426 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
1,726,353 |
|
$ |
1,782,662 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
||||
|
Biloxi |
|
$ |
17,717 |
|
$ |
19,112 |
|
$ |
38,031 |
|
$ |
43,455 |
|
|
Natchez |
|
7,786 |
|
8,511 |
|
16,359 |
|
17,096 |
|
||||
|
Lula |
|
15,820 |
|
15,945 |
|
33,548 |
|
34,346 |
|
||||
|
Mississippi Total |
|
41,323 |
|
43,568 |
|
87,938 |
|
94,897 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
||||
|
Lake Charles |
|
34,243 |
|
32,928 |
|
71,857 |
|
74,102 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Missouri |
|
|
|
|
|
|
|
|
|
||||
|
Kansas City |
|
19,101 |
|
17,360 |
|
38,586 |
|
35,571 |
|
||||
|
Boonville |
|
19,846 |
|
18,610 |
|
39,918 |
|
38,845 |
|
||||
|
Caruthersville |
|
7,925 |
|
7,331 |
|
16,257 |
|
15,146 |
|
||||
|
Missouri Total |
|
46,872 |
|
43,301 |
|
94,761 |
|
89,562 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Iowa |
|
|
|
|
|
|
|
|
|
||||
|
Bettendorf |
|
20,507 |
|
23,154 |
|
41,673 |
|
49,281 |
|
||||
|
Davenport |
|
11,866 |
|
13,357 |
|
24,319 |
|
23,942 |
|
||||
|
Marquette |
|
7,478 |
|
8,327 |
|
14,955 |
|
16,814 |
|
||||
|
Waterloo |
|
20,224 |
|
20,267 |
|
40,100 |
|
39,866 |
|
||||
|
Iowa Total |
|
60,075 |
|
65,105 |
|
121,047 |
|
129,903 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Colorado |
|
|
|
|
|
|
|
|
|
||||
|
Black Hawk |
|
34,595 |
|
31,423 |
|
68,385 |
|
64,612 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Florida |
|
|
|
|
|
|
|
|
|
||||
|
Pompano |
|
28,569 |
|
31,117 |
|
59,367 |
|
68,020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
International |
|
|
|
|
|
|
|
|
|
||||
|
Our Lucaya |
|
1,418 |
|
2,072 |
|
3,552 |
|
5,645 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property Net Revenues before Other |
|
247,095 |
|
249,514 |
|
506,907 |
|
526,741 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other |
|
271 |
|
64 |
|
401 |
|
232 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net Revenues from Continuing Operations |
|
$ |
247,366 |
|
$ |
249,578 |
|
$ |
507,308 |
|
$ |
526,973 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
||||
|
Biloxi |
|
$ |
1,507 |
|
$ |
1,333 |
|
$ |
3,892 |
|
$ |
6,245 |
|
|
Natchez |
|
2,394 |
|
2,729 |
|
5,127 |
|
5,707 |
|
||||
|
Lula |
|
3,632 |
|
3,526 |
|
8,287 |
|
9,626 |
|
||||
|
Mississippi Total |
|
7,533 |
|
7,588 |
|
17,306 |
|
21,578 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
||||
|
Lake Charles |
|
4,254 |
|
5,467 |
|
11,836 |
|
16,154 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Missouri |
|
|
|
|
|
|
|
|
|
||||
|
Kansas City |
|
4,148 |
|
2,658 |
|
8,600 |
|
6,277 |
|
||||
|
Boonville |
|
6,525 |
|
5,995 |
|
13,301 |
|
12,343 |
|
||||
|
Caruthersville |
|
1,140 |
|
1,246 |
|
2,893 |
|
2,949 |
|
||||
|
Missouri Total |
|
11,813 |
|
9,899 |
|
24,794 |
|
21,569 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Iowa |
|
|
|
|
|
|
|
|
|
||||
|
Bettendorf |
|
5,286 |
|
7,945 |
|
11,268 |
|
17,514 |
|
||||
|
Davenport |
|
3,073 |
|
4,309 |
|
6,687 |
|
7,509 |
|
||||
|
Marquette |
|
1,397 |
|
2,267 |
|
3,169 |
|
4,687 |
|
||||
|
Waterloo |
|
5,510 |
|
5,589 |
|
11,358 |
|
11,722 |
|
||||
|
Iowa Total |
|
15,266 |
|
20,110 |
|
32,482 |
|
41,432 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Colorado |
|
|
|
|
|
|
|
|
|
||||
|
Black Hawk |
|
9,028 |
|
7,919 |
|
17,593 |
|
17,327 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Florida |
|
|
|
|
|
|
|
|
|
||||
|
Pompano |
|
(786 |
) |
(224 |
) |
1,677 |
|
2,006 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
International |
|
|
|
|
|
|
|
|
|
||||
|
Our Lucaya |
|
(968 |
) |
(918 |
) |
(1,369 |
) |
(1,074 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property EBITDA Before Corporate and Other Items |
|
46,140 |
|
49,841 |
|
104,319 |
|
118,992 |
|
||||
|
Corporate and Other |
|
(12,070 |
) |
(13,138 |
) |
(21,884 |
) |
(23,297 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
EBITDA Before Other Items |
|
34,070 |
|
36,703 |
|
82,435 |
|
95,695 |
|
||||
|
Other Items: |
|
|
|
|
|
|
|
|
|
||||
|
Expense Recoveries and Other (2) |
|
6,762 |
|
— |
|
6,762 |
|
(6,000 |
) |
||||
|
Marquette Hotel Demolition(3) |
|
(475 |
) |
— |
|
(475 |
) |
— |
|
||||
|
Caruthersville Property Tax Settlement(4) |
|
934 |
|
— |
|
934 |
|
— |
|
||||
|
EBITDA from Continuing Operations |
|
$ |
41,291 |
|
$ |
36,703 |
|
$ |
89,656 |
|
$ |
89,695 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended October 25, 2009 |
|
Three Months Ended October 26, 2008 |
|
||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
|
||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
|
||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
|
||||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Biloxi |
|
$ |
(1,979 |
) |
$ |
3,486 |
|
$ |
1,507 |
|
$ |
(3,093 |
) |
$ |
4,426 |
|
$ |
1,333 |
|
|
Natchez |
|
1,956 |
|
438 |
|
2,394 |
|
1,925 |
|
804 |
|
2,729 |
|
||||||
|
Lula |
|
1,614 |
|
2,018 |
|
3,632 |
|
1,404 |
|
2,122 |
|
3,526 |
|
||||||
|
Mississippi Total |
|
1,591 |
|
5,942 |
|
7,533 |
|
236 |
|
7,352 |
|
7,588 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Lake Charles |
|
1,658 |
|
2,596 |
|
4,254 |
|
2,320 |
|
3,147 |
|
5,467 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Missouri |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Kansas City |
|
3,169 |
|
979 |
|
4,148 |
|
1,503 |
|
1,155 |
|
2,658 |
|
||||||
|
Boonville |
|
5,396 |
|
1,129 |
|
6,525 |
|
4,776 |
|
1,219 |
|
5,995 |
|
||||||
|
Caruthersville |
|
311 |
|
829 |
|
1,140 |
|
58 |
|
1,188 |
|
1,246 |
|
||||||
|
Missouri Total |
|
8,876 |
|
2,937 |
|
11,813 |
|
6,337 |
|
3,562 |
|
9,899 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Iowa |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Bettendorf |
|
3,077 |
|
2,209 |
|
5,286 |
|
5,698 |
|
2,247 |
|
7,945 |
|
||||||
|
Davenport |
|
2,234 |
|
839 |
|
3,073 |
|
3,249 |
|
1,060 |
|
4,309 |
|
||||||
|
Marquette |
|
803 |
|
594 |
|
1,397 |
|
1,583 |
|
684 |
|
2,267 |
|
||||||
|
Waterloo |
|
2,541 |
|
2,969 |
|
5,510 |
|
2,686 |
|
2,903 |
|
5,589 |
|
||||||
|
Iowa Total |
|
8,655 |
|
6,611 |
|
15,266 |
|
13,216 |
|
6,894 |
|
20,110 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Black Hawk |
|
5,265 |
|
3,763 |
|
9,028 |
|
3,432 |
|
4,487 |
|
7,919 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Florida |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Pompano |
|
(5,163 |
) |
4,377 |
|
(786 |
) |
(4,395 |
) |
4,171 |
|
(224 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Our Lucaya |
|
(968 |
) |
— |
|
(968 |
) |
(922 |
) |
4 |
|
(918 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total Property Before Corporate and Other Items |
|
19,914 |
|
26,226 |
|
46,140 |
|
20,224 |
|
29,617 |
|
49,841 |
|
||||||
|
Corporate and Other |
|
(13,323 |
) |
1,253 |
|
(12,070 |
) |
(14,456 |
) |
1,318 |
|
(13,138 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total Before Other Items |
|
6,591 |
|
27,479 |
|
34,070 |
|
5,768 |
|
30,935 |
|
36,703 |
|
||||||
|
Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expense recoveries and other (2) |
|
6,762 |
|
— |
|
6,762 |
|
— |
|
— |
|
— |
|
||||||
|
Marquette Hotel Demolition (3) |
|
(1,433 |
) |
958 |
|
(475 |
) |
— |
|
— |
|
— |
|
||||||
|
Caruthersville Property Tax Settlement (4) |
|
934 |
|
— |
|
934 |
|
— |
|
— |
|
— |
|
||||||
|
Total From Continuing Operations |
|
$ |
12,854 |
|
$ |
28,437 |
|
$ |
41,291 |
|
$ |
5,768 |
|
$ |
30,935 |
|
$ |
36,703 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Six Months Ended October 25, 2009 |
|
Six Months Ended October 26, 2008 |
|
||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
|
||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
|
||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
|
||||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Biloxi |
|
$ |
(3,247 |
) |
$ |
7,139 |
|
$ |
3,892 |
|
$ |
(2,731 |
) |
$ |
8,976 |
|
$ |
6,245 |
|
|
Natchez |
|
4,093 |
|
1,034 |
|
5,127 |
|
4,018 |
|
1,689 |
|
5,707 |
|
||||||
|
Lula |
|
4,055 |
|
4,232 |
|
8,287 |
|
5,252 |
|
4,374 |
|
9,626 |
|
||||||
|
Mississippi Total |
|
4,901 |
|
12,405 |
|
17,306 |
|
6,539 |
|
15,039 |
|
21,578 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Lake Charles |
|
6,501 |
|
5,335 |
|
11,836 |
|
9,709 |
|
6,445 |
|
16,154 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Missouri |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Kansas City |
|
6,524 |
|
2,076 |
|
8,600 |
|
3,858 |
|
2,419 |
|
6,277 |
|
||||||
|
Boonville |
|
10,988 |
|
2,313 |
|
13,301 |
|
9,914 |
|
2,429 |
|
12,343 |
|
||||||
|
Caruthersville |
|
1,149 |
|
1,744 |
|
2,893 |
|
630 |
|
2,319 |
|
2,949 |
|
||||||
|
Missouri Total |
|
18,661 |
|
6,133 |
|
24,794 |
|
14,402 |
|
7,167 |
|
21,569 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Iowa |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Bettendorf |
|
6,712 |
|
4,556 |
|
11,268 |
|
12,967 |
|
4,547 |
|
17,514 |
|
||||||
|
Davenport |
|
4,892 |
|
1,795 |
|
6,687 |
|
5,322 |
|
2,187 |
|
7,509 |
|
||||||
|
Marquette |
|
1,876 |
|
1,293 |
|
3,169 |
|
3,311 |
|
1,376 |
|
4,687 |
|
||||||
|
Waterloo |
|
5,440 |
|
5,918 |
|
11,358 |
|
6,004 |
|
5,718 |
|
11,722 |
|
||||||
|
Iowa Total |
|
18,920 |
|
13,562 |
|
32,482 |
|
27,604 |
|
13,828 |
|
41,432 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Black Hawk |
|
9,959 |
|
7,634 |
|
17,593 |
|
8,352 |
|
8,975 |
|
17,327 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Florida |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Pompano |
|
(6,970 |
) |
8,647 |
|
1,677 |
|
(6,371 |
) |
8,377 |
|
2,006 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Our Lucaya |
|
(1,371 |
) |
2 |
|
(1,369 |
) |
(1,083 |
) |
9 |
|
(1,074 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total Property Before Corporate and Other Items |
|
50,601 |
|
53,718 |
|
104,319 |
|
59,152 |
|
59,840 |
|
118,992 |
|
||||||
|
Corporate and Other |
|
(24,474 |
) |
2,590 |
|
(21,884 |
) |
(25,958 |
) |
2,661 |
|
(23,297 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total Before Other Items |
|
26,127 |
|
56,308 |
|
82,435 |
|
33,194 |
|
62,501 |
|
95,695 |
|
||||||
|
Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expense Recoveries and Other (2) |
|
6,762 |
|
— |
|
6,762 |
|
(6,000 |
) |
— |
|
(6,000 |
) |
||||||
|
Marquette Hotel Demolition (3) |
|
(1,433 |
) |
958 |
|
(475 |
) |
— |
|
— |
|
— |
|
||||||
|
Caruthersville Property Tax Settlement (4) |
|
934 |
|
— |
|
934 |
|
— |
|
— |
|
— |
|
||||||
|
Total From Continuing Operations |
|
$ |
32,390 |
|
$ |
57,266 |
|
$ |
89,656 |
|
$ |
27,194 |
|
$ |
62,501 |
|
$ |
89,695 |
|
(1) EBITDA is “earnings before interest and other non-operating income (expense), income taxes, and depreciation and amortization.” EBITDA is presented after consideration of minority interest. “Property EBITDA” is EBITDA before Corporate and development expenses and minority interest. EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, 2) used as a component of calculating required leverage and minimum interest coverage ratios under our Senior Credit Facility and 3) a principal basis of valuing gaming companies. Management uses EBITDA and Property EBITDA as the primary measure of the Company’s operating properties’ performance, and they are important components in evaluating the performance of management and other operating personnel in the determination of certain components of employee compensation. EBITDA should not be construed as an alternative to operating income as an indicator of the Company’s operating performance, as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to any other measure determined in accordance with U.S. generally accepted accounting principles (GAAP). The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. A reconciliation of EBITDA and Property EBITDA to operating income is included in the financial schedules accompanying this release. A reconciliation of EBITDA to the Company’s net income (loss) is shown below (in thousands).
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
October 25, |
|
October 26, |
|
October 25, |
|
October 26, |
|
||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
EBITDA |
|
$ |
41,291 |
|
$ |
36,703 |
|
$ |
89,656 |
|
$ |
89,695 |
|
|
Add/(deduct): |
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
|
(28,437 |
) |
(30,935 |
) |
(57,266 |
) |
(62,501 |
) |
||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
||||
|
Interest expense, net |
|
(17,483 |
) |
(23,775 |
) |
(35,461 |
) |
(47,226 |
) |
||||
|
Income tax (provision) benefit |
|
6,411 |
|
7,337 |
|
5,644 |
|
6,722 |
|
||||
|
Income (loss) from discontinued operations, net of income taxes |
|
(220 |
) |
(2,830 |
) |
(106 |
) |
(3,816 |
) |
||||
|
Net income (loss) |
|
$ |
1,562 |
|
$ |
(13,500 |
) |
$ |
2,467 |
|
$ |
(17,126 |
) |
Certain of our debt agreements use “Adjusted EBITDA” as a financial measure for the calculation of financial debt covenants. Adjusted EBITDA differs from EBITDA as Adjusted EBITDA includes add back of items such as gain on early extinguishment of debt, pre-opening expenses, certain write-offs and valuation expenses, and stock compensation expense. Reference can be made to the definition of Adjusted EBITDA in the applicable debt agreements on file as Exhibits to our filing with the Securities and Exchange Commission.
(2) Expense recoveries and other of $(6.8) million for the three and six months ended October 25, 2009 reflect income from the recording of a receivable for reimbursement of Pittsburgh development costs. Expense recoveries and other of $6.0 million for the six months ended October 26, 2008 reflect a charge representing the cancellation of our rights to acquire land including a $1.0 million termination fee, related to the potential development of a casino project in the Portland, Oregon area.
(3) During October, 2010 we decided to demolish the hotel at our Marquette. As a result of this decision, our operating income for the three and six months ended October 25, 2009 includes $0.5 million in demolition costs and $1.0 million in acceleration of remaining depreciation.
(4) Caruthersville includes the favorable impact of $0.9 million from the settlement of a property tax appeal during both the three and six months ended October 25, 2009.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 14 casino properties. The Company owns and operates casinos domestically in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri, two casinos in Black Hawk, Colorado, and a casino and harness track in Pompano Beach, Florida. More information is available at the Company’s website, www.islecorp.com.
Forward-Looking Statement
This press release may be deemed to contain forward-looking statements, which are subject to change. These forward-looking statements may be significantly impacted, either positively or negatively by various factors, including without limitation, licensing, and other regulatory approvals, financing sources, development and construction activities, costs and delays, weather, permits, competition and business conditions in the gaming industry. The forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements herein.
Additional information concerning potential factors that could affect the Company’s financial condition, results of operations and expansion projects, is included in the filings of the Company with the Securities and Exchange Commission, including, but not limited to, its Form 10-K for the most recently ended fiscal year.
CONTACTS:
Isle of Capri Casinos, Inc.,
Dale Black, Chief Financial Officer-314.813.9327
Jill Haynes, Senior Director of Corporate Communication-314.813.9368
NOTE: Other Isle of Capri Casinos, Inc. press releases and a corporate profile are available at http://www.prnewswire.com. Isle of Capri Casinos, Inc.’s home page is http://www.islecorp.com.