Attached files
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| 8-K - FORM 8K - Tropicana Entertainment Inc. | a2012-02x218xk_q4earnings.htm |
Exhibit 99.1
Tropicana Entertainment Inc. | |||||||||||||||||||||||||||||||||
Property Information | |||||||||||||||||||||||||||||||||
Net Revenues and Reconciliation of Operating Income to Adjusted EBITDA | |||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2011 | |||||||||||||||||||||||||||||||||
(in millions) (unaudited) | |||||||||||||||||||||||||||||||||
Trop AC | Evansville | Trop Laughlin | River Palms | MontBleu | Baton Rouge | Lighthouse | Jubilee | Aruba | Corporate | Total | |||||||||||||||||||||||
Net revenues | $ | 211.8 | $ | 94.4 | $ | 45.0 | $ | 18.8 | $ | 31.9 | $ | 53.7 | $ | 7.4 | $ | 10.4 | $ | 3.7 | — | $ | 477.1 | ||||||||||||
Operating income | $ | 4.4 | $ | 20.0 | $ | 8.4 | $ | (0.7 | ) | $ | 2.4 | $ | 10.4 | $ | (0.2 | ) | $ | 2.2 | $ | (1.7 | ) | $ | (9.5 | ) | $ | 35.7 | |||||||
Depreciation & amortization | 9.6 | 5.3 | 2.5 | 0.7 | 1.1 | 3.1 | 0.9 | 0.7 | 0.3 | 0.5 | 24.7 | ||||||||||||||||||||||
Business disruption (1) | 3.4 | — | — | — | — | — | 0.3 | 0.4 | — | — | 4.1 | ||||||||||||||||||||||
Property adjustments (2) | 1.4 | — | — | — | — | — | — | — | — | (0.7 | ) | 0.7 | |||||||||||||||||||||
Adjusted EBITDA | $ | 18.8 | $ | 25.3 | $ | 10.9 | — | $ | 3.5 | $ | 13.5 | $ | 1.0 | $ | 3.3 | $ | (1.4 | ) | $ | (9.7 | ) | $ | 65.2 | ||||||||||
For the three months ended December 31, 2011 (3) | |||||||||||||||||||||||||||||||||
(in millions) (unaudited) | |||||||||||||||||||||||||||||||||
Trop AC | Evansville | Trop Laughlin | River Palms | MontBleu | Baton Rouge | Lighthouse | Jubilee | Aruba | Corporate | Total | |||||||||||||||||||||||
Net revenues | $ | 67.3 | $ | 29.6 | $ | 12.9 | $ | 4.7 | $ | 10.2 | $ | 14.5 | $ | 2.4 | $ | 3.6 | $ | 1.3 | — | $ | 146.5 | ||||||||||||
Operating income | $ | (2.1 | ) | $ | 6.3 | $ | 2.0 | $ | (5.1 | ) | $ | 0.2 | $ | 0.4 | $ | — | $ | 0.6 | $ | (1.1 | ) | $ | (3.3 | ) | $ | (2.1 | ) | ||||||
Depreciation & amortization | 2.9 | 1.8 | 0.9 | 0.1 | 0.4 | 1.0 | 0.2 | 0.2 | 0.1 | 0.1 | 7.7 | ||||||||||||||||||||||
Property adjustments (2) | 1.0 | — | — | — | — | — | — | — | — | — | 1.0 | ||||||||||||||||||||||
Impairments and other items (4) | (0.1 | ) | — | — | 5.6 | — | — | — | — | — | 0.3 | 5.8 | |||||||||||||||||||||
Adjusted EBITDA | $ | 1.7 | $ | 8.1 | $ | 2.9 | $ | 0.6 | $ | 0.6 | $ | 1.4 | $ | 0.2 | $ | 0.8 | $ | (1.0 | ) | $ | (2.9 | ) | $ | 12.4 | |||||||||
For the year ended December 31, 2011 (3) | |||||||||||||||||||||||||||||||||
(in millions) (unaudited) | |||||||||||||||||||||||||||||||||
Trop AC | Evansville | Trop Laughlin | River Palms | MontBleu | Baton Rouge | Lighthouse | Jubilee | Aruba | Corporate | Total | |||||||||||||||||||||||
Net revenues | $ | 279.1 | $ | 124.0 | $ | 57.9 | $ | 23.5 | $ | 42.1 | $ | 68.2 | $ | 9.8 | $ | 14.0 | $ | 5.0 | — | $ | 623.6 | ||||||||||||
Operating income | $ | 2.3 | $ | 26.3 | $ | 10.4 | $ | (5.8 | ) | $ | 2.6 | $ | 10.8 | $ | (0.2 | ) | $ | 2.8 | $ | (2.8 | ) | $ | (12.8 | ) | $ | 33.6 | |||||||
Depreciation & amortization | 12.5 | 7.1 | 3.4 | 0.8 | 1.5 | 4.1 | 1.1 | 0.9 | 0.4 | 0.6 | 32.4 | ||||||||||||||||||||||
Business disruption (1) | 3.4 | — | — | — | — | — | 0.3 | 0.4 | — | — | 4.1 | ||||||||||||||||||||||
Property adjustments (2) | 2.4 | — | — | — | — | — | — | — | — | (0.7 | ) | 1.7 | |||||||||||||||||||||
Impairments and other items (4) | (0.1 | ) | — | — | 5.6 | — | — | — | — | — | 0.3 | 5.8 | |||||||||||||||||||||
Adjusted EBITDA | $ | 20.5 | $ | 33.4 | $ | 13.8 | $ | 0.6 | $ | 4.1 | $ | 14.9 | $ | 1.2 | $ | 4.1 | $ | (2.4 | ) | $ | (12.6 | ) | $ | 77.6 | |||||||||
(1) | The Company estimates that it suffered business disruption losses caused by Hurricane Irene at Tropicana AC ($3.4 million) and by Mississippi River flooding at Lighthouse Point ($0.3 million) and Jubilee ($0.4 million). | ||||||||||||||||||||||||||||||||
(2) | Property adjustments include discontinued operations and other non-operating charges (including expenses related to quarterly investment deposits made to the Casino Reinvestment Development Authority for Tropicana AC). | ||||||||||||||||||||||||||||||||
(3) | Results for the three months and year ended December 31, 2011 represent management's estimates as of the date of filing of this Current Report on Form 8-K. Such results are unaudited and subject to change. | ||||||||||||||||||||||||||||||||
(4) | As of the date of filing of this Current Report on Form 8-K, the Company is still conducting its annual impairment review of intangible and long-lived assets. As a result, the actual impairment charge, if any, may differ materially from that presented. | ||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measurement. The Company defines Adjusted EBITDA as earnings before interest income and
Exhibit 99.1
expense, income taxes, depreciation and amortization, asset impairment costs, write-downs, gain (loss) on sale of certain assets, minority interest, certain charges at our Tropicana AC property, and including losses from discontinued operations. In addition, the Company has estimated the business interruption impact related to property closures caused by Hurricane Irene in Tropicana AC and by Mississippi River floods at Lighthouse and Jubilee. Not all of the aforementioned benefits and costs occur in each reporting period, but have been included in the definition based on historical activity.
The Company uses Adjusted EBITDA as the primary measure of the total Company's and the individual operating properties' performance. Adjusted EBITDA is presented because management believes that it is a widely used measure of operating performance in the gaming industry. The presentation of Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of its business. Management believes some investors consider Adjusted EBITDA to be a useful measure in determining a company's ability to service or incur indebtedness and for estimating a company's underlying cash flows from operations before capital costs, taxes and capital expenditures. Adjusted EBITDA also approximates the measures used in the debt covenants within the Company's debt agreements.
EBITDA measures, such as Adjusted EBITDA may not be calculated in the same manner by all companies and, accordingly, may not be an appropriate measure of comparing performance among different companies. Adjusted EBITDA should not be construed as an alternative of operating income, as an indicator of the Company's operating performance, or as any other measure of performance determined in accordance with GAAP. See the above supplemental information tables for a reconciliation of Operating Income to Adjusted EBITDA.