Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ISLE OF CAPRI CASINOS INC | a12-5661_18k.htm |
Exhibit 99.1
ISLE OF CAPRI CASINOS, INC. ANNOUNCES
FISCAL 2012 THIRD QUARTER RESULTS
SAINT LOUIS, MO — February 23, 2012 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the third quarter of fiscal year 2012, the three and nine month periods ended January 22, 2012, and other Company-related news.
Consolidated Results
The following table outlines the Company’s financial results (dollars in millions, except per shares data, unaudited):
Net Revenues and EBITDA for the third quarter include insurance recoveries received as partial advances to our business interruption claims related to the flooding along the Mississippi River during fiscal 2012 for $0.9 million. In addition, we recognized revenue of $1.0 million in the third quarter of fiscal 2012 associated with a settlement related to the oil spill in the Gulf of Mexico in fiscal 2011.
Commenting on the results, President and Chief Executive Officer Virginia McDowell said, “We posted solid results in our third fiscal quarter. Specifically, net revenues increased at eleven of our fifteen properties, including each of our properties outside of Mississippi, where the markets have been slow to recover from the flooding last spring and economic issues continue to negatively impact the market. We are continuing to utilize smarter marketing and targeted facility improvements to drive business and improve results. Our operating successes in Florida, Colorado, Iowa and Missouri were able to largely offset the substantial difficulties facing the Mississippi markets and costs we incurred in Lake Charles while renovating the gaming floor of our primary riverboat and preparing to consolidate our operations.
“We are looking to the future with optimism as we expect to open our Isle property in Cape Girardeau, Missouri by Thanksgiving of this year, subject to regulatory approval, at least a month ahead of our previous schedule. We will continue to make incremental improvements to our operations and facilities that, we believe, will drive considerable value in the long run.”
During the quarter, the Company’s results benefitted from increased retail play as a result of generally favorable weather conditions in December and January, several recent facility
improvements and continued strong marketing programs. We achieved solid flow through on increased revenue at our Pompano property where revenues increased 11.3% and margins improved 269 basis points as a result of improved marketing initiatives. Our Waterloo and Black Hawk properties had increased revenues of 7.2% and 3.7%, respectively, and improved flow through contributing to margin improvement of 191 basis points and 95 basis points, respectively. In Boonville, revenue increased by 3.3% and EBITDA increased by 8%, despite having a buffet closed for renovation during the bulk of the quarter. With the recent declines in the unemployment rate, we are cautiously optimistic that our retail play trends could continue to improve as we have historically seen a high negative correlation between the unemployment rate in our markets and retail revenues.
Our properties in Mississippi are suffering from a lagging economy and some lasting effects of the flooding which has impacted our overall results. Competition from race tracks in Arkansas, which increased following the floods, impacted revenue streams from Little Rock and several secondary markets.
Chief Operating Officer Arnold Block commented, “Moving forward, we have several current and upcoming initiatives that we expect will improve the experience and our ability to expand our customer base at our properties.
“In Lake Charles, results were directly impacted by renovation disruption, which was completed in early February, and preparing to consolidate operations onto the larger remaining riverboat. We opened a new poker room, installed new carpet on the casino floor and completed other cosmetic refurbishments. We made the decision to invest in improving our product offering during the second and third fiscal quarters, and we believe we are beginning to see positive financial results from that investment. Additionally, we expect to benefit from a lower cost structure now operating only one facility. We will continue to improve the customer experience with a $15 million refurbishment of the main hotel tower, which is expected to be completed by the end of the second quarter of fiscal 2013.
“We are also continuing to upgrade our food and beverage options across the portfolio. In Boonville, we recently introduced our first Farmer’s Pick Buffet, an exciting new concept utilizing fresh, locally sourced ingredients, which has received outstanding reviews from our customers. It’s a great concept that customers enjoy and we plan to put in place across our portfolio. In addition, we recently reopened Bragozzo, a casual Italian restaurant in Pompano, adding another important amenity to accommodate our expanding customer base.
“At Rainbow Casino in Vicksburg, we expect to complete the Lady Luck Casino rebranding by the end of the second fiscal quarter of fiscal 2013. The rebranding will introduce upgraded amenities from our portfolio of brands including an Otis and Henry’s restaurant, a Lone Wolf bar and a Farmer’s Pick Buffet.
“Our upgraded customer rewards program, called Fan Club, is now active in Pompano and Waterloo. Customers are enjoying the wider array of options and rewards available to them, and we plan to continue the roll-out of the program to our other properties over the next twelve to eighteen months.”
Corporate Expenses
Corporate and development expenses were $7.9 million for the quarter compared to $8.7 million in fiscal 2011. The decrease is primarily due to development expenses in the prior year related to obtaining the Cape Girardeau and Nemacolin licenses.
Non-cash stock compensation expense was $1.8 million for the quarter compared to $1.4 million in the third quarter of fiscal 2011. For the nine months ended, non-cash stock compensation expense was $5.9 million in fiscal 2012 compared to $5.5 million in fiscal 2011.
Insurance Claim Process
We continue to work through our various flood claims with our insurance carriers and expect negotiations to continue for the foreseeable future. In the third quarter of fiscal 2012 we recognized $0.9 million of revenue as partial advances of our business interruption claim. Through February 22, 2012 we have received initial payments of $10.1 million related to the claims.
Development Update
Cape Girardeau, Missouri: We are making strong progress in the construction of the $125 million facility in Cape Girardeau, Missouri and believe that we will be able to open the facility no later than Thanksgiving of 2012, at least one month ahead of the previously announced schedule, subject to regulatory approval. Several city and other officials are expected to join us today at the topping out ceremony at the property.
Nemacolin Woodlands Resort, Pennsylvania: The appeal hearing for the gaming license awarded to Nemacolin Woodlands Resort for the final resort license in Pennsylvania has been set for March 7, 2012. The timeline for ultimate resolution of the matter is not known at this time.
Capital Structure and Capital Expenditures
The Company had $72.4 million in cash and cash equivalents and total debt of $1.2 billion at the end of the quarter.
Capital expenditures during the quarter totaled $11.7 million, of which $4.5 million related to Cape Girardeau. The Company expects capital expenditures for the remainder of the fiscal year to be approximately $45 million, including approximately $20 million in Cape Girardeau.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Thursday, February 23, 2012 at 9:00 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 888-790-2948. International callers can access the conference call by dialing 773-756-0735. The conference call reference number is 871150. The conference call will be recorded and available for review starting at midnight central on Thursday, February 23, 2012, until midnight central on Thursday, March 1, 2012, by dialing 866-431-5851; International: 203-369-0693 and access number 3449.
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. The Company was chosen to develop a new, Isle-branded gaming facility in Cape Girardeau, Missouri, which is expected to open by Thanksgiving 2012. Additionally, the Company and its partner Nemacolin Woodlands Resort, were selected to be awarded a “resort license” for a casino at Nemacolin Woodlands Resort in Pennsylvania. This award is pending an appeal by a competing party. 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 for the most recently ended fiscal year.
CONTACTS:
Isle of Capri Casinos, Inc.,
Dale Black, Chief Financial Officer-314.813.9327
Jill Alexander, Senior Director of Corporate Communication-314.813.9368
###
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 22, |
|
January 23, |
|
January 22, |
|
January 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
$ |
251,371 |
|
$ |
240,205 |
|
$ |
760,428 |
|
$ |
754,007 |
|
|
Rooms |
|
8,464 |
|
8,400 |
|
29,868 |
|
29,924 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
33,672 |
|
31,082 |
|
100,525 |
|
99,170 |
| ||||
|
Insurance recoveries |
|
1,867 |
|
— |
|
1,978 |
|
— |
| ||||
|
Gross revenues |
|
295,374 |
|
279,687 |
|
892,799 |
|
883,101 |
| ||||
|
Less promotional allowances |
|
(53,126 |
) |
(47,680 |
) |
(157,273 |
) |
(152,522 |
) | ||||
|
Net revenues |
|
242,248 |
|
232,007 |
|
735,526 |
|
730,579 |
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
41,385 |
|
38,529 |
|
123,290 |
|
118,117 |
| ||||
|
Gaming taxes |
|
61,069 |
|
58,331 |
|
183,550 |
|
182,951 |
| ||||
|
Rooms |
|
1,893 |
|
2,002 |
|
6,918 |
|
7,496 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
10,386 |
|
10,557 |
|
32,113 |
|
32,848 |
| ||||
|
Marine and facilities |
|
14,956 |
|
14,602 |
|
46,681 |
|
44,558 |
| ||||
|
Marketing and administrative |
|
63,863 |
|
61,152 |
|
192,993 |
|
188,580 |
| ||||
|
Corporate and development |
|
7,892 |
|
8,719 |
|
29,548 |
|
32,180 |
| ||||
|
Depreciation and amortization |
|
21,405 |
|
21,822 |
|
64,739 |
|
66,934 |
| ||||
|
Total operating expenses |
|
222,849 |
|
215,714 |
|
679,832 |
|
673,664 |
| ||||
|
Operating income |
|
19,399 |
|
16,293 |
|
55,694 |
|
56,915 |
| ||||
|
Interest expense |
|
(21,737 |
) |
(21,506 |
) |
(65,439 |
) |
(68,711 |
) | ||||
|
Interest income |
|
185 |
|
431 |
|
624 |
|
1,372 |
| ||||
|
Derivative income (expense) |
|
223 |
|
974 |
|
252 |
|
(1,256 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss from continuing operations before income taxes |
|
(1,930 |
) |
(3,808 |
) |
(8,869 |
) |
(11,680 |
) | ||||
|
Income tax benefit |
|
748 |
|
1,151 |
|
3,907 |
|
4,555 |
| ||||
|
Loss from continuing operations |
|
(1,182 |
) |
(2,657 |
) |
(4,962 |
) |
(7,125 |
) | ||||
|
Income from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
794 |
| ||||
|
Net loss |
|
$ |
(1,182 |
) |
$ |
(2,657 |
) |
$ |
(4,962 |
) |
$ |
(6,331 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss per common share-basic and dilutive: |
|
|
|
|
|
|
|
|
| ||||
|
Loss from continuing operations |
|
$ |
(0.03 |
) |
$ |
(0.08 |
) |
$ |
(0.13 |
) |
$ |
(0.22 |
) |
|
Income from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
0.03 |
| ||||
|
Net loss |
|
$ |
(0.03 |
) |
$ |
(0.08 |
) |
$ |
(0.13 |
) |
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average basic shares |
|
38,982,281 |
|
32,929,965 |
|
38,670,827 |
|
32,720,532 |
| ||||
|
Weighted average diluted shares |
|
38,982,281 |
|
32,929,965 |
|
38,670,827 |
|
32,720,532 |
| ||||
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|
|
|
January 22, |
|
April 24, |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
(unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
72,426 |
|
$ |
75,178 |
|
|
Marketable securities |
|
25,650 |
|
22,173 |
| ||
|
Accounts receivable, net |
|
7,903 |
|
9,367 |
| ||
|
Insurance receivable |
|
3,705 |
|
234 |
| ||
|
Income taxes receivable |
|
3,972 |
|
3,866 |
| ||
|
Deferred income taxes |
|
7,826 |
|
12,097 |
| ||
|
Prepaid expenses and other assets |
|
26,620 |
|
25,444 |
| ||
|
Total current assets |
|
148,102 |
|
148,359 |
| ||
|
Property and equipment, net |
|
1,102,991 |
|
1,113,549 |
| ||
|
Other assets: |
|
|
|
|
| ||
|
Goodwill |
|
345,303 |
|
345,303 |
| ||
|
Other intangible assets, net |
|
78,616 |
|
82,207 |
| ||
|
Deferred financing costs, net |
|
14,865 |
|
18,911 |
| ||
|
Restricted cash |
|
12,492 |
|
12,810 |
| ||
|
Prepaid deposits and other |
|
9,566 |
|
12,749 |
| ||
|
Total assets |
|
$ |
1,711,935 |
|
$ |
1,733,888 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current maturities of long-term debt |
|
$ |
5,389 |
|
$ |
5,373 |
|
|
Accounts payable |
|
32,773 |
|
26,013 |
| ||
|
Accrued liabilities: |
|
|
|
|
| ||
|
Payroll and related |
|
39,009 |
|
44,187 |
| ||
|
Property and other taxes |
|
17,879 |
|
19,891 |
| ||
|
Interest |
|
20,118 |
|
10,802 |
| ||
|
Progressive jackpots and slot club awards |
|
16,531 |
|
15,280 |
| ||
|
Other |
|
31,209 |
|
32,332 |
| ||
|
Total current liabilities |
|
162,908 |
|
153,878 |
| ||
|
Long-term debt, less current maturities |
|
1,160,283 |
|
1,187,221 |
| ||
|
Deferred income taxes |
|
23,937 |
|
30,762 |
| ||
|
Other accrued liabilities |
|
36,318 |
|
36,305 |
| ||
|
Other long-term liabilities |
|
16,870 |
|
16,694 |
| ||
|
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: 42,066,148 at January 22, 2012 and 42,063,569 at April 24, 2011 |
|
421 |
|
421 |
| ||
|
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
|
— |
|
— |
| ||
|
Additional paid-in capital |
|
251,220 |
|
254,013 |
| ||
|
Retained earnings |
|
98,133 |
|
103,095 |
| ||
|
Accumulated other comprehensive (loss) income |
|
(1,012 |
) |
(2,235 |
) | ||
|
|
|
348,762 |
|
355,294 |
| ||
|
Treasury stock, 3,083,867 shares at January 22, 2012 and 3,841,283 April 24, 2011 |
|
(37,143 |
) |
(46,266 |
) | ||
|
Total stockholders’ equity |
|
311,619 |
|
309,028 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
1,711,935 |
|
$ |
1,733,888 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 22, |
|
January 23, |
|
January 22, |
|
January 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi, Mississippi |
|
$ |
13,932 |
|
$ |
14,645 |
|
$ |
48,180 |
|
$ |
50,552 |
|
|
Lake Charles, Louisiana |
|
31,379 |
|
30,568 |
|
99,920 |
|
96,522 |
| ||||
|
Kansas City, Missouri |
|
19,038 |
|
17,804 |
|
58,149 |
|
55,954 |
| ||||
|
Boonville, Missouri |
|
18,658 |
|
18,069 |
|
58,481 |
|
58,279 |
| ||||
|
Bettendorf, Iowa |
|
18,230 |
|
17,961 |
|
57,441 |
|
58,009 |
| ||||
|
Marquette, Iowa |
|
5,907 |
|
5,848 |
|
20,679 |
|
20,546 |
| ||||
|
Waterloo, Iowa |
|
20,662 |
|
19,273 |
|
61,763 |
|
60,261 |
| ||||
|
Black Hawk, Colorado |
|
26,712 |
|
25,756 |
|
89,978 |
|
85,693 |
| ||||
|
Pompano, Florida |
|
38,631 |
|
34,699 |
|
106,202 |
|
97,132 |
| ||||
|
|
|
193,149 |
|
184,623 |
|
600,793 |
|
582,948 |
| ||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Natchez, Mississippi |
|
6,668 |
|
6,912 |
|
18,149 |
|
22,281 |
| ||||
|
Lula, Mississippi |
|
13,805 |
|
14,990 |
|
37,770 |
|
48,256 |
| ||||
|
Vicksburg, Mississippi(2) |
|
7,711 |
|
7,371 |
|
21,555 |
|
18,570 |
| ||||
|
Caruthersville, Missouri |
|
7,935 |
|
7,610 |
|
23,749 |
|
24,249 |
| ||||
|
Davenport, Iowa |
|
10,627 |
|
10,315 |
|
31,397 |
|
32,732 |
| ||||
|
|
|
46,746 |
|
47,198 |
|
132,620 |
|
146,088 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property Net Revenues before Other |
|
239,895 |
|
231,821 |
|
733,413 |
|
729,036 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Insurance Recoveries(3) |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi |
|
995 |
|
— |
|
995 |
|
— |
| ||||
|
Natchez |
|
420 |
|
— |
|
— |
|
— |
| ||||
|
Vicksburg |
|
54 |
|
— |
|
— |
|
— |
| ||||
|
Caruthersville |
|
398 |
|
— |
|
— |
|
— |
| ||||
|
Davenport |
|
— |
|
— |
|
— |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other |
|
486 |
|
186 |
|
1,118 |
|
1,543 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Revenues from Continuing Operations |
|
$ |
242,248 |
|
$ |
232,007 |
|
$ |
735,526 |
|
$ |
730,579 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
January 22, |
|
January 23, |
|
January 22, |
|
January 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi, Mississippi |
|
$ |
(308 |
) |
$ |
(131 |
) |
$ |
3,033 |
|
$ |
3,301 |
|
|
Lake Charles, Louisiana |
|
3,172 |
|
4,604 |
|
13,770 |
|
16,203 |
| ||||
|
Kansas City, Missouri |
|
3,987 |
|
3,701 |
|
12,178 |
|
11,938 |
| ||||
|
Boonville, Missouri |
|
6,505 |
|
6,023 |
|
20,783 |
|
19,572 |
| ||||
|
Bettendorf, Iowa |
|
4,815 |
|
4,865 |
|
14,498 |
|
14,916 |
| ||||
|
Marquette, Iowa |
|
909 |
|
697 |
|
4,277 |
|
3,954 |
| ||||
|
Waterloo, Iowa |
|
6,232 |
|
5,444 |
|
18,188 |
|
17,282 |
| ||||
|
Black Hawk, Colorado |
|
4,850 |
|
4,432 |
|
18,972 |
|
17,329 |
| ||||
|
Pompano, Florida |
|
7,114 |
|
5,460 |
|
17,137 |
|
12,714 |
| ||||
|
|
|
37,276 |
|
35,095 |
|
122,836 |
|
117,209 |
| ||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Natchez, Mississippi |
|
1,276 |
|
1,721 |
|
3,738 |
|
6,196 |
| ||||
|
Lula, Mississippi |
|
2,370 |
|
3,777 |
|
5,579 |
|
13,281 |
| ||||
|
Vicksburg, Mississippi(2) |
|
1,764 |
|
2,176 |
|
4,425 |
|
5,526 |
| ||||
|
Caruthersville, Missouri |
|
1,393 |
|
1,584 |
|
4,471 |
|
4,659 |
| ||||
|
Davenport, Iowa |
|
2,265 |
|
2,295 |
|
6,820 |
|
7,615 |
| ||||
|
|
|
9,068 |
|
11,553 |
|
25,033 |
|
37,277 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property EBITDA Before Corporate and Other |
|
46,344 |
|
46,648 |
|
147,869 |
|
154,486 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Insurance Recoveries(3) |
|
|
|
|
|
|
|
|
| ||||
|
Biloxi |
|
995 |
|
— |
|
995 |
|
— |
| ||||
|
Natchez |
|
420 |
|
— |
|
— |
|
— |
| ||||
|
Vicksburg |
|
54 |
|
— |
|
— |
|
— |
| ||||
|
Caruthersville |
|
398 |
|
— |
|
— |
|
— |
| ||||
|
Davenport |
|
— |
|
— |
|
— |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate and Other |
|
(7,407 |
) |
(8,533 |
) |
(28,431 |
) |
(30,637 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
EBITDA from Continuing Operations |
|
$ |
40,804 |
|
$ |
38,115 |
|
$ |
120,433 |
|
$ |
123,849 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Three Months Ended January 22, 2012 |
|
Three Months Ended January 23, 2011 |
| ||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
| ||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
| ||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi, Mississippi |
|
$ |
(2,410 |
) |
$ |
2,102 |
|
$ |
(308 |
) |
$ |
(3,024 |
) |
$ |
2,893 |
|
$ |
(131 |
) |
|
Lake Charles, Louisiana |
|
781 |
|
2,391 |
|
3,172 |
|
2,282 |
|
2,322 |
|
4,604 |
| ||||||
|
Kansas City, Missouri |
|
2,982 |
|
1,005 |
|
3,987 |
|
2,782 |
|
919 |
|
3,701 |
| ||||||
|
Boonville, Missouri |
|
5,629 |
|
876 |
|
6,505 |
|
4,948 |
|
1,075 |
|
6,023 |
| ||||||
|
Bettendorf, Iowa |
|
2,837 |
|
1,978 |
|
4,815 |
|
2,885 |
|
1,980 |
|
4,865 |
| ||||||
|
Marquette, Iowa |
|
443 |
|
466 |
|
909 |
|
293 |
|
404 |
|
697 |
| ||||||
|
Waterloo, Iowa |
|
4,584 |
|
1,648 |
|
6,232 |
|
4,026 |
|
1,418 |
|
5,444 |
| ||||||
|
Black Hawk, Colorado |
|
1,918 |
|
2,932 |
|
4,850 |
|
1,373 |
|
3,059 |
|
4,432 |
| ||||||
|
Pompano, Florida |
|
4,357 |
|
2,757 |
|
7,114 |
|
3,104 |
|
2,356 |
|
5,460 |
| ||||||
|
|
|
21,121 |
|
16,155 |
|
37,276 |
|
18,669 |
|
16,426 |
|
35,095 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
892 |
|
384 |
|
1,276 |
|
1,370 |
|
351 |
|
1,721 |
| ||||||
|
Lula, Mississippi |
|
808 |
|
1,562 |
|
2,370 |
|
1,989 |
|
1,788 |
|
3,777 |
| ||||||
|
Vicksburg, Mississippi(2) |
|
507 |
|
1,257 |
|
1,764 |
|
895 |
|
1,281 |
|
2,176 |
| ||||||
|
Caruthersville, Missouri |
|
520 |
|
873 |
|
1,393 |
|
775 |
|
809 |
|
1,584 |
| ||||||
|
Davenport, Iowa |
|
1,718 |
|
547 |
|
2,265 |
|
1,727 |
|
568 |
|
2,295 |
| ||||||
|
|
|
4,445 |
|
4,623 |
|
9,068 |
|
6,756 |
|
4,797 |
|
11,553 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Property Before Corporate and Other Items |
|
25,566 |
|
20,778 |
|
46,344 |
|
25,425 |
|
21,223 |
|
46,648 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Insurance Recoveries(3) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi |
|
995 |
|
— |
|
995 |
|
— |
|
— |
|
— |
| ||||||
|
Natchez |
|
420 |
|
— |
|
420 |
|
— |
|
— |
|
— |
| ||||||
|
Vicksburg |
|
54 |
|
— |
|
54 |
|
— |
|
— |
|
— |
| ||||||
|
Caruthersville |
|
398 |
|
— |
|
398 |
|
— |
|
— |
|
— |
| ||||||
|
Davenport |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Corporate and Other |
|
(8,034 |
) |
627 |
|
(7,407 |
) |
(9,132 |
) |
599 |
|
(8,533 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total |
|
$ |
19,399 |
|
$ |
21,405 |
|
$ |
40,804 |
|
$ |
16,293 |
|
$ |
21,822 |
|
$ |
38,115 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
|
|
|
Nine Months Ended January 22, 2012 |
|
Nine Months Ended January 23, 2011 |
| ||||||||||||||
|
|
|
|
|
Depreciation |
|
|
|
|
|
Depreciation |
|
|
| ||||||
|
|
|
Operating |
|
and |
|
|
|
Operating |
|
and |
|
|
| ||||||
|
|
|
Income |
|
Amortization |
|
EBITDA |
|
Income |
|
Amortization |
|
EBITDA |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi, Mississippi |
|
$ |
(3,580 |
) |
$ |
6,613 |
|
$ |
3,033 |
|
$ |
(5,684 |
) |
$ |
8,985 |
|
$ |
3,301 |
|
|
Lake Charles, Louisiana |
|
6,715 |
|
7,055 |
|
13,770 |
|
9,153 |
|
7,050 |
|
16,203 |
| ||||||
|
Kansas City, Missouri |
|
9,161 |
|
3,017 |
|
12,178 |
|
9,263 |
|
2,675 |
|
11,938 |
| ||||||
|
Boonville, Missouri |
|
18,151 |
|
2,632 |
|
20,783 |
|
16,326 |
|
3,246 |
|
19,572 |
| ||||||
|
Bettendorf, Iowa |
|
8,370 |
|
6,128 |
|
14,498 |
|
8,923 |
|
5,993 |
|
14,916 |
| ||||||
|
Marquette, Iowa |
|
2,955 |
|
1,322 |
|
4,277 |
|
2,736 |
|
1,218 |
|
3,954 |
| ||||||
|
Waterloo, Iowa |
|
13,266 |
|
4,922 |
|
18,188 |
|
11,998 |
|
5,284 |
|
17,282 |
| ||||||
|
Black Hawk, Colorado |
|
10,011 |
|
8,961 |
|
18,972 |
|
7,806 |
|
9,523 |
|
17,329 |
| ||||||
|
Pompano, Florida |
|
9,055 |
|
8,082 |
|
17,137 |
|
5,636 |
|
7,078 |
|
12,714 |
| ||||||
|
|
|
74,104 |
|
48,732 |
|
122,836 |
|
66,157 |
|
51,052 |
|
117,209 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
2,620 |
|
1,118 |
|
3,738 |
|
5,127 |
|
1,069 |
|
6,196 |
| ||||||
|
Lula, Mississippi |
|
574 |
|
5,005 |
|
5,579 |
|
7,804 |
|
5,477 |
|
13,281 |
| ||||||
|
Vicksburg, Mississippi(2) |
|
617 |
|
3,808 |
|
4,425 |
|
2,353 |
|
3,173 |
|
5,526 |
| ||||||
|
Caruthersville, Missouri |
|
1,969 |
|
2,502 |
|
4,471 |
|
2,124 |
|
2,535 |
|
4,659 |
| ||||||
|
Davenport, Iowa |
|
5,151 |
|
1,669 |
|
6,820 |
|
5,914 |
|
1,701 |
|
7,615 |
| ||||||
|
|
|
10,931 |
|
14,102 |
|
25,033 |
|
23,322 |
|
13,955 |
|
37,277 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Property Before Corporate and Other Items |
|
85,035 |
|
62,834 |
|
147,869 |
|
89,479 |
|
65,007 |
|
154,486 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Insurance Recoveries(3) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Biloxi |
|
995 |
|
— |
|
995 |
|
— |
|
— |
|
— |
| ||||||
|
Natchez |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
Vicksburg |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
Caruthersville |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
Davenport |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Corporate and Other |
|
(30,336 |
) |
1,905 |
|
(28,431 |
) |
(32,564 |
) |
1,927 |
|
(30,637 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total |
|
$ |
55,694 |
|
$ |
64,739 |
|
$ |
120,433 |
|
$ |
56,915 |
|
$ |
66,934 |
|
$ |
123,849 |
|
(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 22, |
|
January 23, |
|
January 22, |
|
January 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
EBITDA |
|
$ |
40,804 |
|
$ |
38,115 |
|
$ |
120,433 |
|
$ |
123,849 |
|
|
Add/(deduct): |
|
|
|
|
|
|
|
|
| ||||
|
Depreciation and amortization |
|
(21,405 |
) |
(21,822 |
) |
(64,739 |
) |
(66,934 |
) | ||||
|
Interest expense: |
|
|
|
|
|
|
|
|
| ||||
|
Interest expense, net |
|
(21,552 |
) |
(21,075 |
) |
(64,815 |
) |
(67,339 |
) | ||||
|
Derivative income (expense) |
|
223 |
|
974 |
|
252 |
|
(1,256 |
) | ||||
|
Income tax benefit |
|
748 |
|
1,151 |
|
3,907 |
|
4,555 |
| ||||
|
Income from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
794 |
| ||||
|
Net loss |
|
$ |
(1,182 |
) |
$ |
(2,657 |
) |
$ |
(4,962 |
) |
$ |
(6,331 |
) |
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) We have received insurance recoveries related to various claims. The insurance recovery associated with our Biloxi property relates to settlement relating to lost profits and business interruption related to the oil spill in the Gulf of Mexico during fiscal 2011. The insurance recoveries associated with our Natchez, Vicksburg, Caruthersville and Davenport properties relate to on-going flood claims related to the flooding along the Mississippi River in the first quarter of fiscal 2012.