Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ISLE OF CAPRI CASINOS INC | a11-6756_18k.htm |
Exhibit 99.1
ISLE OF CAPRI CASINOS, INC. ANNOUNCES
FISCAL 2011 THIRD QUARTER RESULTS
· Consolidated EBITDA Increases 29% Year-Over-Year
· Property EBITDA Margins Increase 250 Basis Points
· Company Completes $52 Million Equity Offering
SAINT LOUIS, MO — February 28, 2011 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the third fiscal quarter and nine-months ended January 23, 2011.
In making the announcement, James B. Perry, the Company’s chairman and chief executive officer, said, “When our management team joined this Company, we stated our goal was to become a stronger operating company with an improved balance sheet while taking advantage of prudent development opportunities. I am confident that we have made great strides in achieving this objective.
“Our financial results continue to reflect the benefits of the operational enhancements we have made. We have implemented marketing improvements, a streamlined cost structure and successful customer service initiatives. Today, we are providing guests with an ever-improving experience that we believe is having a direct impact on the bottom line for our shareholders.
“As I transition into my role as the Company’s executive chairman and Virginia McDowell prepares to become chief executive, I am confident that our team is carrying out the charge we have outlined with dedication and agility. Looking forward, we have the right team and the right plan for continued future successes.”
Consolidated Results
The following table outlines the Company’s financial results (dollars in millions, except per share data, unaudited):
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
Net revenues |
|
$ |
232.0 |
|
$ |
227.1 |
|
$ |
730.6 |
|
$ |
731.0 |
|
|
EBITDA(1) |
|
38.1 |
|
29.5 |
|
123.8 |
|
120.5 |
| ||||
|
Loss from continuing operations |
|
(2.6 |
) |
(11.4 |
) |
(7.1 |
) |
(8.0 |
) | ||||
|
Net loss |
|
(2.6 |
) |
(10.6 |
) |
(6.3 |
) |
(8.2 |
) | ||||
|
Loss per share from continuing operations |
|
(0.08 |
) |
(0.35 |
) |
(0.22 |
) |
(0.25 |
) | ||||
|
Net loss per share |
|
(0.08 |
) |
(0.33 |
) |
(0.19 |
) |
(0.25 |
) | ||||
Significant items impacting EBITDA during the three and nine months ended January 23, 2011 and January 24, 2010 are as follows:
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
Expense recoveries - Pittsburgh development cost(3) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
6.8 |
|
|
Marquette hotel demolition(4) |
|
— |
|
— |
|
— |
|
(0.5 |
) | ||||
|
Caruthersville property tax settlement(5) |
|
— |
|
— |
|
— |
|
0.9 |
| ||||
|
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
7.2 |
|
Compared to the third quarter of the prior fiscal year, during the third quarter of fiscal year 2011:
· Consolidated EBITDA increased 29.3% to $38.1 million;
· Property-level EBITDA increased 16.7% from $40.0 million to $46.6 million, including the contribution of $2.2 million from our newly acquired Vicksburg property;
· Property-level operating expenses increased less than 1%, despite the acquisition of Vicksburg, which was not included in FY2010 results;
· Property EBITDA margins increased 250 basis points to 20.1%, including aggregate margin increases in every state in which the Company operates, except Colorado.
Discussing the results, Virginia McDowell, the Company’s president and chief operating officer, remarked, “We were able to increase our property EBITDA by about 17% (11% on a same store basis) on increased revenues of only 2.4% in part as a result of the benefits of lower gaming taxes in Florida and because we are providing an improved guest experience, our marketing programs are driving more profitable business, and our team remains focused on fiscal discipline.
“The efficiency we have created in our business is demonstrated by the fact that in the markets where we experienced increased revenues the flow through on year-over-year revenue changes was significant, ranging from about 40% in Marquette to a high of 154% in Waterloo. In addition we were able to increase EBITDA in Lake Charles and Biloxi despite revenue declines year over year.
“We remain committed to improving our marketing efficiency and keeping our cost structure aligned with revenue levels while we await better visibility on a sustained economic recovery in the consumer discretionary sector. While we have not experienced a wide spread increase in consumer spending, we are capitalizing on specific areas of opportunity in our business, and have therefore been successful in achieving improved financial results. During the quarter we experienced a slight decline in rated visits that was offset by an increase in rated spend.”
Corporate Expenses, Capital Structure, and Capital Expenditures
Corporate and development expenses were $8.7 million for the quarter compared to $11.1 million in the third quarter of fiscal 2010. The decrease is primarily due to decreased insurance costs offset by increased expenses related to Missouri and Pennsylvania development efforts. Non-cash stock compensation was $1.4 million during the quarter, compared to $1.8 million for the third quarter of fiscal 2010.
The Company had $70.0 million in cash and cash equivalents and total debt of $1.3 billion at the end of the quarter.
Dale R. Black, the Company’s senior vice president and chief financial officer, also provided an update on the completion of the Company’s equity offering in late January. “We were successful in raising $51.7 million in new capital through the issuance of 5.3 million shares of common stock. As we stated in the announcement of this offering, we have temporarily used the net proceeds of this transaction to repay our revolving credit line. This new cash infusion has provided us with improved financial flexibility moving forward, including for the financing of development projects, future capital expenditures and other corporate purposes.”
Interest expense for the quarter was $21.5 million; an increase of approximately $4.1 million compared to the prior fiscal year, primarily as a result of increased borrowing costs and increased borrowings related to the acquisition of Rainbow Casino in Vicksburg.
Capital expenditures during the quarter totaled $20 million, of which $8 million related to Cape Girardeau and $12 million related to maintenance capital expenditures. The Company expects capital expenditures for the remainder of the fiscal year to be approximately $15 million consisting of $10 million in maintenance capital expenditures and $5 million related to Cape Girardeau.
Development Update
The Company has commenced development efforts for Isle Casino Cape Girardeau, which was selected by the Missouri Gaming Commission in December for prioritization for the 13th and final gaming license in the state. The Company has completed purchase of all land and demolition of existing structures is underway. As the Company is in the process of selecting a general contractor, we expect to break ground in the summer of calendar 2011. The $125 million project, which will feature approximately 1,000 slot machines, 28 table games, three restaurants, a lounge and terrace overlooking the Mississippi River and a 750-seat event center, remains on schedule to open in late calendar 2012.
In January, the Pennsylvania Gaming Control Board indefinitely delayed its decision on granting the state’s final Category 3 resort gaming license, for which the Company has applied in partnership with Nemacolin Woodlands Resort in Fayette County, Pennsylvania. Since that time, two new gaming board members have been appointed and the Company has received no guidance with respect to the timing of any announcement regarding the license.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Monday, February 28, 2011 at 9:30 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.
The conference call will also be available by telephone, for domestic callers, by dialing 877-917-8929. International callers can access the conference call by dialing 517-308-9020. The conference call reference number is 5980634. The conference call will be recorded and available for review starting at noon central on Monday, February 28, 2011, until midnight central on Monday, March 7, 2011, by dialing 800-925-2964; International: 203-369-3519 and access number 4423.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
$ |
240,205 |
|
$ |
229,521 |
|
$ |
754,007 |
|
$ |
742,957 |
|
|
Rooms |
|
8,400 |
|
8,424 |
|
29,924 |
|
32,488 |
| ||||
|
Pari-mutuel, food, beverage and other |
|
31,082 |
|
31,240 |
|
99,170 |
|
98,821 |
| ||||
|
Gross revenues |
|
279,687 |
|
269,185 |
|
883,101 |
|
874,266 |
| ||||
|
Less promotional allowances |
|
(47,680 |
) |
(42,113 |
) |
(152,522 |
) |
(143,225 |
) | ||||
|
Net revenues |
|
232,007 |
|
227,072 |
|
730,579 |
|
731,041 |
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
38,529 |
|
36,435 |
|
118,117 |
|
115,351 |
| ||||
|
Gaming taxes |
|
58,331 |
|
60,529 |
|
182,951 |
|
191,056 |
| ||||
|
Rooms |
|
2,002 |
|
2,237 |
|
7,496 |
|
8,118 |
| ||||
|
Pari-mutuel, food, beverage and other |
|
10,557 |
|
10,553 |
|
32,848 |
|
32,638 |
| ||||
|
Marine and facilities |
|
14,602 |
|
14,392 |
|
44,558 |
|
46,148 |
| ||||
|
Marketing and administrative |
|
61,152 |
|
62,326 |
|
188,580 |
|
190,581 |
| ||||
|
Corporate and development |
|
8,719 |
|
11,127 |
|
32,180 |
|
33,412 |
| ||||
|
Expense recoveries and other charges |
|
— |
|
— |
|
— |
|
(6,762 |
) | ||||
|
Depreciation and amortization |
|
21,822 |
|
26,797 |
|
66,934 |
|
84,062 |
| ||||
|
Total operating expenses |
|
215,714 |
|
224,396 |
|
673,664 |
|
694,604 |
| ||||
|
Operating income |
|
16,293 |
|
2,676 |
|
56,915 |
|
36,437 |
| ||||
|
Interest expense |
|
(21,506 |
) |
(17,452 |
) |
(68,711 |
) |
(53,682 |
) | ||||
|
Interest income |
|
431 |
|
455 |
|
1,372 |
|
1,218 |
| ||||
|
Derivative income (expense) |
|
974 |
|
— |
|
(1,256 |
) |
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss from continuing operations before income taxes |
|
(3,808 |
) |
(14,321 |
) |
(11,680 |
) |
(16,027 |
) | ||||
|
Income tax benefit |
|
1,151 |
|
2,922 |
|
4,555 |
|
8,056 |
| ||||
|
Income (loss) from continuing operations |
|
(2,657 |
) |
(11,399 |
) |
(7,125 |
) |
(7,971 |
) | ||||
|
Income (loss) from discontinued operations, net of income taxes |
|
— |
|
774 |
|
794 |
|
(187 |
) | ||||
|
Net income (loss) |
|
$ |
(2,657 |
) |
$ |
(10,625 |
) |
$ |
(6,331 |
) |
$ |
(8,158 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) per common share-basic and dilutive: |
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) from continuing operations |
|
$ |
(0.08 |
) |
$ |
(0.35 |
) |
$ |
(0.22 |
) |
$ |
(0.25 |
) |
|
Income (loss) from discontinued operations, net of income taxes |
|
— |
|
0.02 |
|
0.03 |
|
— |
| ||||
|
Net income (loss) |
|
$ |
(0.08 |
) |
$ |
(0.33 |
) |
$ |
(0.19 |
) |
$ |
(0.25 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average basic shares |
|
32,929,965 |
|
32,438,809 |
|
32,720,532 |
|
32,179,233 |
| ||||
|
Weighted average diluted shares |
|
32,929,965 |
|
32,438,809 |
|
32,720,532 |
|
32,179,233 |
| ||||
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|
|
|
January 23, |
|
April 25, |
| ||
|
|
|
2011 |
|
2010 |
| ||
|
|
|
(unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
69,966 |
|
$ |
68,069 |
|
|
Marketable securities |
|
21,767 |
|
22,926 |
| ||
|
Accounts receivable, net |
|
7,877 |
|
8,879 |
| ||
|
Income taxes receivable |
|
4,490 |
|
8,109 |
| ||
|
Deferred income taxes |
|
16,826 |
|
16,826 |
| ||
|
Prepaid expenses and other assets |
|
27,305 |
|
25,095 |
| ||
|
Total current assets |
|
148,231 |
|
149,904 |
| ||
|
Property and equipment, net |
|
1,121,156 |
|
1,098,942 |
| ||
|
Other assets: |
|
|
|
|
| ||
|
Goodwill |
|
345,303 |
|
313,136 |
| ||
|
Other intangible assets, net |
|
83,419 |
|
79,675 |
| ||
|
Deferred financing costs, net |
|
7,891 |
|
10,354 |
| ||
|
Restricted cash |
|
12,763 |
|
2,774 |
| ||
|
Prepaid deposits and other |
|
16,468 |
|
20,055 |
| ||
|
Total assets |
|
$ |
1,735,231 |
|
$ |
1,674,840 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current maturities of long-term debt |
|
$ |
8,769 |
|
$ |
8,754 |
|
|
Accounts payable |
|
27,746 |
|
24,072 |
| ||
|
Accrued liabilities: |
|
|
|
|
| ||
|
Payroll and related |
|
41,089 |
|
45,863 |
| ||
|
Property and other taxes |
|
18,825 |
|
20,253 |
| ||
|
Interest |
|
15,086 |
|
14,779 |
| ||
|
Progressive jackpots and slot club awards |
|
15,258 |
|
14,144 |
| ||
|
Other |
|
36,392 |
|
29,290 |
| ||
|
Total current liabilities |
|
163,165 |
|
157,155 |
| ||
|
Long-term debt, less current maturities |
|
1,243,513 |
|
1,192,135 |
| ||
|
Deferred income taxes |
|
28,841 |
|
29,193 |
| ||
|
Other accrued liabilities |
|
37,515 |
|
38,972 |
| ||
|
Other long-term liabilities |
|
17,078 |
|
17,166 |
| ||
|
Stockholders’ equity: |
|
|
|
|
| ||
|
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued |
|
— |
|
— |
| ||
|
Common stock, $.01 par value; 60,000,000 shares authorized; shares issued: |
|
|
|
|
| ||
|
36,762,569 shares at January 23, 2011 and 36,771,730 shares at April 25, 2010 |
|
368 |
|
367 |
| ||
|
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
|
— |
|
— |
| ||
|
Additional paid-in capital |
|
201,675 |
|
201,464 |
| ||
|
Retained earnings |
|
92,224 |
|
98,555 |
| ||
|
Accumulated other comprehensive (loss) income |
|
(2,857 |
) |
(8,060 |
) | ||
|
|
|
291,410 |
|
292,326 |
| ||
|
Treasury stock, 3,843,358 shares at January 23, 2011 and 4,326,242 shares at April 25, 2010 |
|
(46,291 |
) |
(52,107 |
) | ||
|
Total stockholders’ equity |
|
245,119 |
|
240,219 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
1,735,231 |
|
$ |
1,674,840 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
Mississippi |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi |
|
$ |
14,645 |
|
$ |
15,246 |
|
$ |
50,552 |
|
$ |
53,490 |
|
|
Natchez |
|
6,912 |
|
7,147 |
|
22,281 |
|
23,506 |
| ||||
|
Lula |
|
14,990 |
|
15,276 |
|
48,256 |
|
48,824 |
| ||||
|
Vicksburg(2) |
|
7,371 |
|
|
|
18,570 |
|
|
| ||||
|
Mississippi Total |
|
43,918 |
|
37,669 |
|
139,659 |
|
125,820 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Louisiana |
|
|
|
|
|
|
|
|
| ||||
|
Lake Charles |
|
30,568 |
|
31,795 |
|
96,522 |
|
103,652 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Missouri |
|
|
|
|
|
|
|
|
| ||||
|
Kansas City |
|
17,804 |
|
17,215 |
|
55,954 |
|
55,801 |
| ||||
|
Boonville |
|
18,069 |
|
17,557 |
|
58,279 |
|
57,475 |
| ||||
|
Caruthersville |
|
7,610 |
|
7,470 |
|
24,249 |
|
23,727 |
| ||||
|
Missouri Total |
|
43,483 |
|
42,242 |
|
138,482 |
|
137,003 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Iowa |
|
|
|
|
|
|
|
|
| ||||
|
Bettendorf |
|
17,961 |
|
17,480 |
|
58,009 |
|
59,153 |
| ||||
|
Davenport |
|
10,315 |
|
11,011 |
|
32,732 |
|
35,330 |
| ||||
|
Marquette |
|
5,848 |
|
5,476 |
|
20,546 |
|
20,431 |
| ||||
|
Waterloo |
|
19,273 |
|
18,818 |
|
60,261 |
|
58,918 |
| ||||
|
Iowa Total |
|
53,397 |
|
52,785 |
|
171,548 |
|
173,832 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Colorado |
|
|
|
|
|
|
|
|
| ||||
|
Black Hawk |
|
25,756 |
|
27,335 |
|
85,693 |
|
95,720 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Florida |
|
|
|
|
|
|
|
|
| ||||
|
Pompano |
|
34,699 |
|
34,624 |
|
97,132 |
|
93,991 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property Net Revenues before Other |
|
231,821 |
|
226,450 |
|
729,036 |
|
730,018 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other |
|
186 |
|
622 |
|
1,543 |
|
1,023 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Revenues from Continuing Operations |
|
$ |
232,007 |
|
$ |
227,072 |
|
$ |
730,579 |
|
$ |
731,041 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
Mississippi |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi |
|
$ |
(131 |
) |
$ |
(614 |
) |
$ |
3,301 |
|
$ |
3,278 |
|
|
Natchez |
|
1,721 |
|
1,882 |
|
6,196 |
|
7,009 |
| ||||
|
Lula |
|
3,777 |
|
3,968 |
|
13,281 |
|
12,255 |
| ||||
|
Vicksburg(2) |
|
2,176 |
|
|
|
5,526 |
|
|
| ||||
|
Mississippi Total |
|
7,543 |
|
5,236 |
|
28,304 |
|
22,542 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Louisiana |
|
|
|
|
|
|
|
|
| ||||
|
Lake Charles |
|
4,604 |
|
4,521 |
|
16,203 |
|
16,357 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Missouri |
|
|
|
|
|
|
|
|
| ||||
|
Kansas City |
|
3,701 |
|
3,260 |
|
11,938 |
|
11,860 |
| ||||
|
Boonville |
|
6,023 |
|
5,497 |
|
19,572 |
|
18,798 |
| ||||
|
Caruthersville |
|
1,584 |
|
1,475 |
|
4,659 |
|
4,368 |
| ||||
|
Missouri Total |
|
11,308 |
|
10,232 |
|
36,169 |
|
35,026 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Iowa |
|
|
|
|
|
|
|
|
| ||||
|
Bettendorf |
|
4,865 |
|
4,233 |
|
14,916 |
|
15,501 |
| ||||
|
Davenport |
|
2,295 |
|
2,800 |
|
7,615 |
|
9,487 |
| ||||
|
Marquette |
|
697 |
|
549 |
|
3,954 |
|
3,718 |
| ||||
|
Waterloo |
|
5,444 |
|
4,742 |
|
17,282 |
|
16,100 |
| ||||
|
Iowa Total |
|
13,301 |
|
12,324 |
|
43,767 |
|
44,806 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Colorado |
|
|
|
|
|
|
|
|
| ||||
|
Black Hawk |
|
4,432 |
|
5,236 |
|
17,329 |
|
22,830 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Florida |
|
|
|
|
|
|
|
|
| ||||
|
Pompano |
|
5,460 |
|
2,429 |
|
12,714 |
|
4,106 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property EBITDA Before Corporate and Other Items |
|
46,648 |
|
39,978 |
|
154,486 |
|
145,667 |
| ||||
|
Corporate and Other |
|
(8,533 |
) |
(10,505 |
) |
(30,637 |
) |
(32,389 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
EBITDA Before Other Items |
|
38,115 |
|
29,473 |
|
123,849 |
|
113,278 |
| ||||
|
Other Items: |
|
|
|
|
|
|
|
|
| ||||
|
Expense Recoveries and Other(3) |
|
— |
|
— |
|
— |
|
6,762 |
| ||||
|
Marquette Hotel Demolition(4) |
|
— |
|
— |
|
— |
|
(475 |
) | ||||
|
Caruthersville Property Tax Settlement(5) |
|
— |
|
— |
|
— |
|
934 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
EBITDA from Continuing Operations |
|
$ |
38,115 |
|
$ |
29,473 |
|
$ |
123,849 |
|
$ |
120,499 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended January 23, 2011 |
|
Three Months Ended January 24, 2010 |
| ||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
| ||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
| ||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
| ||||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi |
|
$ |
(3,024 |
) |
$ |
2,893 |
|
$ |
(131 |
) |
$ |
(4,034 |
) |
$ |
3,420 |
|
$ |
(614 |
) |
|
Natchez |
|
1,370 |
|
351 |
|
1,721 |
|
1,468 |
|
414 |
|
1,882 |
| ||||||
|
Lula |
|
1,989 |
|
1,788 |
|
3,777 |
|
1,996 |
|
1,972 |
|
3,968 |
| ||||||
|
Vicksburg(2) |
|
895 |
|
1,281 |
|
2,176 |
|
|
|
|
|
|
| ||||||
|
Mississippi Total |
|
1,230 |
|
6,313 |
|
7,543 |
|
(570 |
) |
5,806 |
|
5,236 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles |
|
2,282 |
|
2,322 |
|
4,604 |
|
2,047 |
|
2,474 |
|
4,521 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Missouri |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Kansas City |
|
2,782 |
|
919 |
|
3,701 |
|
2,337 |
|
923 |
|
3,260 |
| ||||||
|
Boonville |
|
4,948 |
|
1,075 |
|
6,023 |
|
4,398 |
|
1,099 |
|
5,497 |
| ||||||
|
Caruthersville |
|
775 |
|
809 |
|
1,584 |
|
578 |
|
897 |
|
1,475 |
| ||||||
|
Missouri Total |
|
8,505 |
|
2,803 |
|
11,308 |
|
7,313 |
|
2,919 |
|
10,232 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Iowa |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Bettendorf |
|
2,885 |
|
1,980 |
|
4,865 |
|
2,081 |
|
2,152 |
|
4,233 |
| ||||||
|
Davenport |
|
1,727 |
|
568 |
|
2,295 |
|
2,096 |
|
704 |
|
2,800 |
| ||||||
|
Marquette |
|
293 |
|
404 |
|
697 |
|
(61 |
) |
610 |
|
549 |
| ||||||
|
Waterloo |
|
4,026 |
|
1,418 |
|
5,444 |
|
1,797 |
|
2,945 |
|
4,742 |
| ||||||
|
Iowa Total |
|
8,931 |
|
4,370 |
|
13,301 |
|
5,913 |
|
6,411 |
|
12,324 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Black Hawk |
|
1,373 |
|
3,059 |
|
4,432 |
|
1,585 |
|
3,651 |
|
5,236 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Florida |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Pompano |
|
3,104 |
|
2,356 |
|
5,460 |
|
(1,914 |
) |
4,343 |
|
2,429 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Property Before Corporate and Other Items |
|
25,425 |
|
21,223 |
|
46,648 |
|
14,374 |
|
25,604 |
|
39,978 |
| ||||||
|
Corporate and Other |
|
(9,132 |
) |
599 |
|
(8,533 |
) |
(11,698 |
) |
1,193 |
|
(10,505 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total From Continuing Operations |
|
$ |
16,293 |
|
$ |
21,822 |
|
$ |
38,115 |
|
$ |
2,676 |
|
$ |
26,797 |
|
$ |
29,473 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Nine Months Ended January 23, 2011 |
|
Nine Months Ended January 24, 2010 |
| ||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
| ||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
| ||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
| ||||||
|
Mississippi |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi |
|
$ |
(5,684 |
) |
$ |
8,985 |
|
$ |
3,301 |
|
$ |
(7,281 |
) |
$ |
10,559 |
|
$ |
3,278 |
|
|
Natchez |
|
5,127 |
|
1,069 |
|
6,196 |
|
5,561 |
|
1,448 |
|
7,009 |
| ||||||
|
Lula |
|
7,804 |
|
5,477 |
|
13,281 |
|
6,051 |
|
6,204 |
|
12,255 |
| ||||||
|
Vicksburg(2) |
|
2,353 |
|
3,173 |
|
5,526 |
|
|
|
|
|
|
| ||||||
|
Mississippi Total |
|
9,600 |
|
18,704 |
|
28,304 |
|
4,331 |
|
18,211 |
|
22,542 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Louisiana |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles |
|
9,153 |
|
7,050 |
|
16,203 |
|
8,548 |
|
7,809 |
|
16,357 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Missouri |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Kansas City |
|
9,263 |
|
2,675 |
|
11,938 |
|
8,861 |
|
2,999 |
|
11,860 |
| ||||||
|
Boonville |
|
16,326 |
|
3,246 |
|
19,572 |
|
15,386 |
|
3,412 |
|
18,798 |
| ||||||
|
Caruthersville |
|
2,124 |
|
2,535 |
|
4,659 |
|
1,727 |
|
2,641 |
|
4,368 |
| ||||||
|
Missouri Total |
|
27,713 |
|
8,456 |
|
36,169 |
|
25,974 |
|
9,052 |
|
35,026 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Iowa |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Bettendorf |
|
8,923 |
|
5,993 |
|
14,916 |
|
8,793 |
|
6,708 |
|
15,501 |
| ||||||
|
Davenport |
|
5,914 |
|
1,701 |
|
7,615 |
|
6,988 |
|
2,499 |
|
9,487 |
| ||||||
|
Marquette |
|
2,736 |
|
1,218 |
|
3,954 |
|
1,815 |
|
1,903 |
|
3,718 |
| ||||||
|
Waterloo |
|
11,998 |
|
5,284 |
|
17,282 |
|
7,237 |
|
8,863 |
|
16,100 |
| ||||||
|
Iowa Total |
|
29,571 |
|
14,196 |
|
43,767 |
|
24,833 |
|
19,973 |
|
44,806 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Black Hawk |
|
7,806 |
|
9,523 |
|
17,329 |
|
11,545 |
|
11,285 |
|
22,830 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Florida |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Pompano |
|
5,636 |
|
7,078 |
|
12,714 |
|
(8,884 |
) |
12,990 |
|
4,106 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Property Before Corporate and Other Items |
|
89,479 |
|
65,007 |
|
154,486 |
|
66,347 |
|
79,320 |
|
145,667 |
| ||||||
|
Corporate and Other |
|
(32,564 |
) |
1,927 |
|
(30,637 |
) |
(36,173 |
) |
3,784 |
|
(32,389 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Before Other Items |
|
56,915 |
|
66,934 |
|
123,849 |
|
30,174 |
|
83,104 |
|
113,278 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Expense Recoveries and Other(3) |
|
— |
|
— |
|
— |
|
6,762 |
|
— |
|
6,762 |
| ||||||
|
Marquette Hotel Demolition(4) |
|
— |
|
— |
|
— |
|
(1,433 |
) |
958 |
|
(475 |
) | ||||||
|
Caruthersville Property Tax Settlement(5) |
|
— |
|
— |
|
— |
|
934 |
|
— |
|
934 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total From Continuing Operations |
|
$ |
56,915 |
|
$ |
66,934 |
|
$ |
123,849 |
|
$ |
36,437 |
|
$ |
84,062 |
|
$ |
120,499 |
|
(1) EBITDA is “earnings before interest and other non-operating income (expense), income taxes, and depreciation and amortization.” “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 |
|
Nine Months Ended |
| ||||||||
|
|
|
January 23, |
|
January 24, |
|
January 23, |
|
January 24, |
| ||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
EBITDA |
|
$ |
38,115 |
|
$ |
29,473 |
|
$ |
123,849 |
|
$ |
120,499 |
|
|
Add/(deduct): |
|
|
|
|
|
|
|
|
| ||||
|
Depreciation and amortization |
|
(21,822 |
) |
(26,797 |
) |
(66,934 |
) |
(84,062 |
) | ||||
|
Interest expense, net |
|
(21,075 |
) |
(16,997 |
) |
(67,339 |
) |
(52,464 |
) | ||||
|
Derivative income (expense) |
|
974 |
|
— |
|
(1,256 |
) |
— |
| ||||
|
Income tax benefit |
|
1,151 |
|
2,922 |
|
4,555 |
|
8,056 |
| ||||
|
Income (loss) from discontinued operations, net of income taxes |
|
— |
|
774 |
|
794 |
|
(187 |
) | ||||
|
Net income (loss) |
|
$ |
(2,657 |
) |
$ |
(10,625 |
) |
$ |
(6,331 |
) |
$ |
(8,158 |
) |
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 non-cash stock compensation expense. Reference can be made to the definition of Adjusted EBITDA in the applicable debt agreements on file as Exhibits to our filings with the Securities and Exchange Commission.
(2) Rainbow Casino in Vicksburg, Mississippi was acquired on June 8, 2010 and we have included the results of Rainbow in our consolidated financial statements subsequent to acquisition.
(3) Expense recoveries and other of $(6.8) million for the nine months ended January 24, 2010 reflect income from the recording of a receivable for reimbursement of Pittsburgh development costs.
(4) During October 2009 we demolished the hotel at our casino in Marquette, Iowa. As a result, our operating income for the nine months ended January 24, 2010 includes $0.5 million in demolition costs and $1.0 million in acceleration of remaining depreciation.
(5) Caruthersville includes the favorable impact of $0.9 million from the settlement of a property tax appeal during the nine months ended January 24, 2010.
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 15 casino properties. The Company owns and operates casinos domestically in Biloxi, Lula, Natchez and Vicksburg, 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. Additionally, the Company was chosen to develop a new Isle-branded gaming facility in Cape Girardeau, Missouri, which is expected to open in late calendar year 2012. More information is available at the Company’s website, www.islecorp.com.
Forward-Looking Statements
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/A for the most recently ended fiscal year.
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CONTACTS: | |
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Isle of Capri Casinos, Inc., | |
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Dale Black, Chief Financial Officer-314.813.9327 |
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Jill Haynes, Senior Director of Corporate Communication-314.813.9368 |
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