Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ISLE OF CAPRI CASINOS INC | a12-28229_18k.htm |
Exhibit 99.1
ISLE OF CAPRI CASINOS, INC. ANNOUNCES
FISCAL 2013 SECOND QUARTER RESULTS
SAINT LOUIS, MO — November 29, 2012 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the second quarter of fiscal year 2013 ended October 28, 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):
|
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
|
October 28, |
|
October 23, |
|
October 28, |
|
October 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Net revenues |
|
$ |
223.2 |
|
$ |
231.4 |
|
$ |
459.0 |
|
$ |
459.0 |
|
|
Consolidated adjusted EBITDA (1) |
|
38.7 |
|
41.9 |
|
83.7 |
|
80.7 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) from continuing operations |
|
(4.3 |
) |
(1.0 |
) |
0.4 |
|
(3.6 |
) | ||||
|
Loss from discontinued operations |
|
(2.3 |
) |
(0.5 |
) |
(0.4 |
) |
(0.2 |
) | ||||
|
Net income (loss) |
|
(6.6 |
) |
(1.5 |
) |
— |
|
(3.8 |
) | ||||
|
Diluted income (loss) per share from continuing operations |
|
(0.11 |
) |
(0.03 |
) |
0.01 |
|
(0.09 |
) | ||||
|
Diluted loss per share from discontinued operations |
|
(0.06 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) | ||||
|
Diluted income (loss) per share |
|
(0.17 |
) |
(0.04 |
) |
— |
|
(0.10 |
) | ||||
Virginia McDowell, president and chief executive officer remarked, “The second quarter was a period of achievements and challenges. Similar to other regional gaming operators, we experienced softening net revenues during September and October. Cost containment efforts led to increased adjusted EBITDA and margins at several of our properties; however we could not overcome the softness in our Mississippi business.”
“We continue to be hampered by several factors in Mississippi which accounted for more than 150% of our year-over-year property adjusted EBITDA decline. Some of these factors, such as construction disruption in Vicksburg, will end in the coming weeks, however others related to market conditions and operations have the full attention and focus of our team. The balance of our properties experienced an overall increase in adjusted EBITDA of 2.5%, while net revenue decreased 1.9%.
“Our new casino property in Cape Girardeau debuted on October 30, our rebranding project in Vicksburg is nearly complete and the renovation of the primary Lake Charles hotel tower will be complete by the end of December. Additionally, we have begun construction on our Lady Luck Casino at Nemacolin Woodlands Resort in Pennsylvania. We are achieving our goals of renewing our asset base and restyling our customer experiences.”
Operating Results
Net revenues decreased $8.2 million during the period, to $223.2 million. Consolidated adjusted EBITDA decreased $3.2 million, or 7.6%, to 38.7 million. This decrease of $3.2 million is attributable to a decrease in adjusted EBITDA of $3.2 million at our Mississippi properties and a $1.0 million increase in corporate legal costs, which offset gains in adjusted EBITDA at several of our other properties.
Diluted loss per share from continuing operations for the quarter was $(0.11) compared to $(0.03) for the second quarter last year. The results for the current year were impacted by approximately $2.7 million in preopening costs associated with Cape Girardeau and $2.5 million of costs associated with the refinancing of our subordinated debt in July. Before consideration of these items, diluted earnings per share from continuing operations for the quarter would have been break-even ($0.00).
As a result of efficiencies in marketing and cost containment efforts, we had favorable results at the following properties:
· Black Hawk — Adjusted EBITDA increased 2.2% to $7.7 million despite a decrease in net revenues of 3.9% to $30.7 million, resulting in margin improvement of nearly 150 basis points to 25%.
· Pompano — Despite the continued year over year impact of a major expansion at a competing facility, adjusted EBITDA increased $0.4 million while net revenues increased $0.8 million to $33.7 million. In addition, construction was completed to convert the buffet to a Farmer’s Pick® in mid-September.
· Quad Cities and Waterloo — Adjusted EBITDA increased a combined 5.2% to $13.9 million on increased revenues of 1.5% to $51.0 million, resulting in margin improvement of over 90 basis points to 27.2%. The results were also favorably impacted by the successful implementation of Fan Club® in Waterloo and the introduction of our new Lone Wolf® Bar.
· Lake Charles — Adjusted EBITDA increased $0.3 million despite decreased net revenues of $2.9 million for the quarter. Results were negatively impacted by construction disruption associated with ongoing renovation of the entire hotel tower, which caused an average of approximately 20% of our total hotel rooms to be out of service during the quarter.
· Kansas City — Adjusted EBITDA remained flat at $4.1 million despite the impact of a new competitor in the market, which resulted in decreased revenues of $1.4 million.
Our Mississippi properties faced significant challenges during the quarter, which contributed to over 150% of our property adjusted EBITDA loss year over year.
In Vicksburg, our results were impacted by construction disruption associated with the on-going rebranding of the property to a Lady Luck® Casino, as we experienced an average of 200 to 400 slot machines out of service per day. The results were also impacted by an overall market decline of 6% during the quarter.
In Natchez, our results were impacted by significant weather disruption and damage, where our boat was closed for four days due to a storm that caused meaningful decreased patron count for approximately one month. In addition, the adverse weather conditions damaged each of the three entrances to the facility as well as some infrastructure components. The facility continues to face extraordinarily low river levels, causing our boat to nearly sit on the bottom of the river, which has severely impacted the entrance and overall customer experience. We are committed to mitigating the damage done to our facility, but we expect business to suffer until water levels return to a reasonable level in this section of the Mississippi River. Additionally, pending regulatory approval, a new competitor facility is expected to open in the market before the end of the year.
In Lula, the market changes that occurred following the flooding in last fiscal year have not improved. The market continues to decline, as customers continue to patronize the facilities in the Memphis and Little Rock areas that benefitted from the prior year’s flooding. We are pursuing financial improvements through cost savings and operational consolidations.
Corporate Expenses and Other Items
Corporate and development expenses were $10.8 million for the quarter, an increase of $1.5 million compared to prior year. Included in the results for the fiscal 2013 quarter are $1.5 million in refinancing related costs and $1.0 million in increased legal costs offset by lower insurance costs and stock compensation expenses.
Non-cash stock compensation expense was $1.5 million for the quarter compared to $2.3 million in the second quarter of fiscal 2012.
Preopening costs associated with Cape Girardeau were $2.7 million.
Discontinued Operations
Included in discontinued operations are the operating results of our Biloxi property approximately $2.1 million of charges related to Hurricane Isaac for costs incurred and a credit against the purchase price to satisfy our obligation to repair the property, as required by the purchase agreement.
Development
We have begun preliminary demolition in advance of construction of Lady Luck Casino at Nemacolin Woodlands Resort. We currently expect to open Lady Luck Nemacolin during summer 2013. The facility is planned to include 600 slot machines, 28 table games, an Otis & Henry’s Bar & Grill, and a Lone Wolf Bar. The Company currently expects the total project to cost approximately $57 million to $60 million, including the $12.5 million license fee. Several aspects of the project are currently out for bid and we expect to get firm pricing on those over the next few weeks.
In Vicksburg, our Lady Luck rebranding project is complete, and we will hold our grand re-opening ceremony tomorrow. The property is a fully-branded Lady Luck casino, as we have greatly enhanced the exterior and interior, completed the renovation of the casino floor and have introduced an Otis & Henry’s Bar & Grill and a Lone Wolf Bar. The property also has implemented our Fan Club® program.
Capital Structure
As of October 28, 2012, the Company had $75.5 million in cash and cash equivalents, $1.18 billion in total debt and $199 million in net line of credit availability.
Second quarter capital expenditures were $46 million, of which $32 million related to Cape Girardeau, and $14 million at our existing properties. The Company expects capital expenditures to be approximately $80 million to $90 million for the balance of the fiscal year, including maintenance capital, final costs in Cape Girardeau and construction costs in Nemacolin of approximately $20 million to $30 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Thursday, November 29, 2012 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 reference number is 311019. The conference call will be recorded and available for review starting at noon central on Thursday, November 27, 2012, until 11:59 pm central on Tuesday, December 6, 2012, by dialing 866-463-2179; International: 203-369-1376 and access number 7007.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming and entertainment company dedicated to providing guests with exceptional experience at each of the 15 casino properties that it ownsand operates, primarily under the Isle and Lady Luck brands. The Company currently owns and
operates gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. We are developing a new facility at the Nemacolin Woodlands Resort in Western Pennsylvania. 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 |
|
Six Months Ended |
| ||||||||
|
|
|
October 28, |
|
October 23, |
|
October 28, |
|
October 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
$ |
234,648 |
|
$ |
239,707 |
|
$ |
484,917 |
|
$ |
474,934 |
|
|
Rooms |
|
8,328 |
|
8,419 |
|
16,958 |
|
16,891 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
30,437 |
|
30,723 |
|
63,243 |
|
60,350 |
| ||||
|
Insurance recoveries |
|
— |
|
111 |
|
— |
|
111 |
| ||||
|
Gross revenues |
|
273,413 |
|
278,960 |
|
565,118 |
|
552,286 |
| ||||
|
Less promotional allowances |
|
(50,206 |
) |
(47,534 |
) |
(106,088 |
) |
(93,256 |
) | ||||
|
Net revenues |
|
223,207 |
|
231,426 |
|
459,030 |
|
459,030 |
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
36,802 |
|
38,172 |
|
75,298 |
|
74,143 |
| ||||
|
Gaming taxes |
|
58,619 |
|
59,435 |
|
120,247 |
|
118,952 |
| ||||
|
Rooms |
|
1,781 |
|
1,929 |
|
3,554 |
|
3,848 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
9,217 |
|
9,590 |
|
19,321 |
|
19,543 |
| ||||
|
Marine and facilities |
|
13,888 |
|
14,933 |
|
27,588 |
|
29,059 |
| ||||
|
Marketing and administrative |
|
56,464 |
|
58,594 |
|
114,420 |
|
115,541 |
| ||||
|
Corporate and development |
|
10,777 |
|
9,327 |
|
19,250 |
|
21,593 |
| ||||
|
Preopening |
|
2,654 |
|
27 |
|
3,341 |
|
63 |
| ||||
|
Depreciation and amortization |
|
16,850 |
|
19,646 |
|
33,672 |
|
38,822 |
| ||||
|
Total operating expenses |
|
207,052 |
|
211,653 |
|
416,691 |
|
421,564 |
| ||||
|
Operating income |
|
16,155 |
|
19,773 |
|
42,339 |
|
37,466 |
| ||||
|
Interest expense |
|
(21,985 |
) |
(21,877 |
) |
(42,416 |
) |
(43,702 |
) | ||||
|
Interest income |
|
131 |
|
192 |
|
306 |
|
435 |
| ||||
|
Derivative income (expense) |
|
176 |
|
260 |
|
310 |
|
29 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) from continuing operations before income taxes |
|
(5,523 |
) |
(1,652 |
) |
539 |
|
(5,772 |
) | ||||
|
Income tax (provision) benefit |
|
1,182 |
|
622 |
|
(136 |
) |
2,183 |
| ||||
|
Income (loss) from continuing operations |
|
(4,341 |
) |
(1,030 |
) |
403 |
|
(3,589 |
) | ||||
|
Income (loss) from discontinued operations net of income taxes |
|
(2,312 |
) |
(427 |
) |
(395 |
) |
(191 |
) | ||||
|
Net income (loss) |
|
$ |
(6,653 |
) |
$ |
(1,457 |
) |
$ |
8 |
|
$ |
(3,780 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) per common share-basic: |
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) from continuing operations |
|
$ |
(0.11 |
) |
$ |
(0.03 |
) |
$ |
0.01 |
|
$ |
(0.09 |
) |
|
Income from discontinued operations, net of income taxes |
|
(0.06 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) | ||||
|
Net income (loss) |
|
$ |
(0.17 |
) |
$ |
(0.04 |
) |
$ |
— |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) per common share-dilutive: |
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) from continuing operations |
|
$ |
(0.11 |
) |
$ |
(0.03 |
) |
$ |
0.01 |
|
$ |
(0.09 |
) |
|
Income from discontinued operations, net of income taxes |
|
(0.06 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) | ||||
|
Net income (loss) |
|
$ |
(0.17 |
) |
$ |
(0.04 |
) |
$ |
— |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average basic shares |
|
39,336,134 |
|
38,753,049 |
|
39,177,208 |
|
38,515,099 |
| ||||
|
Weighted average diluted shares |
|
39,336,134 |
|
38,753,049 |
|
39,192,075 |
|
38,515,099 |
| ||||
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|
|
|
October 28, |
|
April 29, |
| ||
|
|
|
2012 |
|
2012 |
| ||
|
|
|
(unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
75,479 |
|
$ |
94,461 |
|
|
Marketable securities |
|
24,277 |
|
24,943 |
| ||
|
Accounts receivable, net |
|
8,007 |
|
6,941 |
| ||
|
Insurance receivable |
|
— |
|
7,497 |
| ||
|
Income taxes receivable |
|
4,723 |
|
2,161 |
| ||
|
Deferred income taxes |
|
615 |
|
627 |
| ||
|
Prepaid expenses and other assets |
|
28,550 |
|
18,950 |
| ||
|
Assets held for sale |
|
45,557 |
|
46,703 |
| ||
|
Total current assets |
|
187,208 |
|
202,283 |
| ||
|
Property and equipment, net |
|
1,009,406 |
|
950,014 |
| ||
|
Other assets: |
|
|
|
|
| ||
|
Goodwill |
|
330,903 |
|
330,903 |
| ||
|
Other intangible assets, net |
|
61,167 |
|
56,586 |
| ||
|
Deferred financing costs, net |
|
18,246 |
|
13,205 |
| ||
|
Restricted cash |
|
12,916 |
|
12,551 |
| ||
|
Prepaid deposits and other |
|
7,469 |
|
9,428 |
| ||
|
Total assets |
|
$ |
1,627,315 |
|
$ |
1,574,970 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current maturities of long-term debt |
|
$ |
5,406 |
|
$ |
5,393 |
|
|
Accounts payable |
|
33,282 |
|
23,536 |
| ||
|
Accrued liabilities: |
|
|
|
|
| ||
|
Payroll and related |
|
37,043 |
|
38,566 |
| ||
|
Property and other taxes |
|
25,168 |
|
19,522 |
| ||
|
Interest |
|
14,099 |
|
9,296 |
| ||
|
Progressive jackpots and slot club awards |
|
15,136 |
|
14,892 |
| ||
|
Liabilities related to assets held for sale |
|
8,041 |
|
4,362 |
| ||
|
Other |
|
40,777 |
|
40,549 |
| ||
|
Total current liabilities |
|
178,952 |
|
156,116 |
| ||
|
Long-term debt, less current maturities |
|
1,177,065 |
|
1,149,038 |
| ||
|
Deferred income taxes |
|
35,804 |
|
36,057 |
| ||
|
Other accrued liabilities |
|
32,162 |
|
33,583 |
| ||
|
Other long-term liabilities |
|
16,489 |
|
16,556 |
| ||
|
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 October 28, 2012 and 42,066,148 at April 29, 2012 |
|
421 |
|
421 |
| ||
|
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
|
— |
|
— |
| ||
|
Additional paid-in capital |
|
244,656 |
|
247,855 |
| ||
|
Retained earnings (deficit) |
|
(26,650 |
) |
(26,658 |
) | ||
|
Accumulated other comprehensive (loss) income |
|
(544 |
) |
(855 |
) | ||
|
|
|
217,883 |
|
220,763 |
| ||
|
Treasury stock, 2,577,155 shares at October 28, 2012 and 3,083,867 shares at April 29, 2012 |
|
(31,040 |
) |
(37,143 |
) | ||
|
Total stockholders’ equity |
|
186,843 |
|
183,620 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
1,627,315 |
|
$ |
1,574,970 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
|
October 28, |
|
October 23, |
|
October 28, |
|
October 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Lake Charles, Louisiana |
|
$ |
29,749 |
|
$ |
32,617 |
|
$ |
63,327 |
|
$ |
68,541 |
|
|
Kansas City, Missouri |
|
18,012 |
|
19,453 |
|
36,532 |
|
39,111 |
| ||||
|
Boonville, Missouri |
|
19,798 |
|
19,736 |
|
40,186 |
|
39,823 |
| ||||
|
Bettendorf, Iowa |
|
19,694 |
|
19,130 |
|
39,549 |
|
39,211 |
| ||||
|
Marquette, Iowa |
|
7,332 |
|
7,271 |
|
14,713 |
|
14,772 |
| ||||
|
Waterloo, Iowa |
|
20,925 |
|
20,601 |
|
42,337 |
|
41,101 |
| ||||
|
Black Hawk, Colorado |
|
30,670 |
|
31,905 |
|
62,023 |
|
63,266 |
| ||||
|
Pompano, Florida |
|
33,691 |
|
32,869 |
|
68,376 |
|
67,571 |
| ||||
|
|
|
179,871 |
|
183,582 |
|
367,043 |
|
373,396 |
| ||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
| ||||
|
Natchez, Mississippi |
|
5,962 |
|
7,036 |
|
12,963 |
|
11,061 |
| ||||
|
Lula, Mississippi |
|
12,772 |
|
14,213 |
|
27,403 |
|
23,965 |
| ||||
|
Vicksburg, Mississippi |
|
5,897 |
|
7,411 |
|
13,455 |
|
13,790 |
| ||||
|
Caruthersville, Missouri |
|
8,144 |
|
8,204 |
|
16,777 |
|
15,416 |
| ||||
|
Davenport, Iowa |
|
10,390 |
|
10,516 |
|
21,036 |
|
20,770 |
| ||||
|
|
|
43,165 |
|
47,380 |
|
91,634 |
|
85,002 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property Net Revenues before Other |
|
223,036 |
|
230,962 |
|
458,677 |
|
458,398 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other |
|
171 |
|
464 |
|
353 |
|
632 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Revenues from Continuing Operations |
|
$ |
223,207 |
|
$ |
231,426 |
|
$ |
459,030 |
|
$ |
459,030 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Three Months Ended October 28, 2012 |
| ||||||||||||||||
|
|
|
Operating |
|
Depreciation |
|
Stock-Based |
|
Preopening |
|
Financing |
|
Adjusted |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles, Louisiana |
|
$ |
1,867 |
|
$ |
2,310 |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
4,179 |
|
|
Kansas City, Missouri |
|
3,152 |
|
980 |
|
4 |
|
— |
|
— |
|
4,136 |
| ||||||
|
Boonville, Missouri |
|
5,918 |
|
886 |
|
6 |
|
— |
|
— |
|
6,810 |
| ||||||
|
Bettendorf, Iowa |
|
3,578 |
|
1,770 |
|
4 |
|
— |
|
— |
|
5,352 |
| ||||||
|
Marquette, Iowa |
|
1,172 |
|
445 |
|
5 |
|
— |
|
— |
|
1,622 |
| ||||||
|
Waterloo, Iowa |
|
5,218 |
|
1,165 |
|
6 |
|
— |
|
— |
|
6,389 |
| ||||||
|
Black Hawk, Colorado |
|
5,435 |
|
2,210 |
|
14 |
|
— |
|
— |
|
7,659 |
| ||||||
|
Pompano, Florida |
|
3,083 |
|
1,803 |
|
8 |
|
— |
|
— |
|
4,894 |
| ||||||
|
|
|
29,423 |
|
11,569 |
|
49 |
|
— |
|
— |
|
41,041 |
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
118 |
|
359 |
|
5 |
|
— |
|
— |
|
482 |
| ||||||
|
Lula, Mississippi |
|
(803 |
) |
1,702 |
|
6 |
|
— |
|
— |
|
905 |
| ||||||
|
Vicksburg, Mississippi |
|
(860 |
) |
1,218 |
|
5 |
|
— |
|
— |
|
363 |
| ||||||
|
Caruthersville, Missouri |
|
593 |
|
835 |
|
5 |
|
— |
|
— |
|
1,433 |
| ||||||
|
Davenport, Iowa |
|
1,566 |
|
546 |
|
6 |
|
— |
|
— |
|
2,118 |
| ||||||
|
|
|
614 |
|
4,660 |
|
27 |
|
— |
|
— |
|
5,301 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Operating Properties |
|
30,037 |
|
16,229 |
|
76 |
|
— |
|
— |
|
46,342 |
| ||||||
|
Corporate and Other |
|
(13,882 |
) |
621 |
|
1,501 |
|
2,654 |
|
1,478 |
|
(7,628 |
) | ||||||
|
Total |
|
$ |
16,155 |
|
$ |
16,850 |
|
$ |
1,577 |
|
$ |
2,654 |
|
$ |
1,478 |
|
$ |
38,714 |
|
|
|
|
Three Months Ended October 23, 2011 |
| ||||||||||||||||
|
|
|
Operating |
|
Depreciation |
|
Stock-Based |
|
Preopening |
|
Financing |
|
Adjusted |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles, Louisiana |
|
$ |
1,475 |
|
$ |
2,355 |
|
$ |
12 |
|
$ |
— |
|
$ |
— |
|
$ |
3,842 |
|
|
Kansas City, Missouri |
|
2,989 |
|
1,073 |
|
2 |
|
— |
|
— |
|
4,064 |
| ||||||
|
Boonville, Missouri |
|
6,204 |
|
878 |
|
15 |
|
— |
|
— |
|
7,097 |
| ||||||
|
Bettendorf, Iowa |
|
2,559 |
|
2,121 |
|
6 |
|
— |
|
— |
|
4,686 |
| ||||||
|
Marquette, Iowa |
|
1,219 |
|
424 |
|
8 |
|
— |
|
— |
|
1,651 |
| ||||||
|
Waterloo, Iowa |
|
4,529 |
|
1,644 |
|
12 |
|
— |
|
— |
|
6,185 |
| ||||||
|
Black Hawk, Colorado |
|
4,460 |
|
3,023 |
|
11 |
|
— |
|
— |
|
7,494 |
| ||||||
|
Pompano, Florida |
|
1,779 |
|
2,692 |
|
7 |
|
— |
|
— |
|
4,478 |
| ||||||
|
|
|
25,214 |
|
14,210 |
|
73 |
|
— |
|
— |
|
39,497 |
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
1,114 |
|
374 |
|
8 |
|
— |
|
— |
|
1,496 |
| ||||||
|
Lula, Mississippi |
|
354 |
|
1,671 |
|
16 |
|
— |
|
— |
|
2,041 |
| ||||||
|
Vicksburg, Mississippi |
|
91 |
|
1,282 |
|
3 |
|
— |
|
— |
|
1,376 |
| ||||||
|
Caruthersville, Missouri |
|
856 |
|
844 |
|
8 |
|
— |
|
— |
|
1,708 |
| ||||||
|
Davenport, Iowa |
|
1,741 |
|
558 |
|
8 |
|
— |
|
— |
|
2,307 |
| ||||||
|
|
|
4,156 |
|
4,729 |
|
43 |
|
— |
|
— |
|
8,928 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Operating Properties |
|
29,370 |
|
18,939 |
|
116 |
|
— |
|
— |
|
48,425 |
| ||||||
|
Corporate and Other |
|
(9,597 |
) |
707 |
|
2,316 |
|
27 |
|
— |
|
(6,547 |
) | ||||||
|
Total |
|
$ |
19,773 |
|
$ |
19,646 |
|
$ |
2,432 |
|
$ |
27 |
|
$ |
— |
|
$ |
41,878 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Six Months Ended October 28, 2012 |
| ||||||||||||||||
|
|
|
Operating (Loss) |
|
Depreciation |
|
Stock-Based |
|
Preopening |
|
Financing |
|
Adjusted |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles, Louisiana |
|
$ |
5,230 |
|
$ |
4,422 |
|
$ |
6 |
|
$ |
— |
|
$ |
— |
|
$ |
9,658 |
|
|
Kansas City, Missouri |
|
6,267 |
|
2,019 |
|
6 |
|
— |
|
— |
|
8,292 |
| ||||||
|
Boonville, Missouri |
|
12,412 |
|
1,753 |
|
11 |
|
— |
|
— |
|
14,176 |
| ||||||
|
Bettendorf, Iowa |
|
7,108 |
|
3,483 |
|
9 |
|
— |
|
— |
|
10,600 |
| ||||||
|
Marquette, Iowa |
|
2,431 |
|
876 |
|
10 |
|
— |
|
— |
|
3,317 |
| ||||||
|
Waterloo, Iowa |
|
10,132 |
|
2,657 |
|
11 |
|
— |
|
— |
|
12,800 |
| ||||||
|
Black Hawk, Colorado |
|
10,843 |
|
4,358 |
|
24 |
|
— |
|
— |
|
15,225 |
| ||||||
|
Pompano, Florida |
|
5,820 |
|
3,577 |
|
14 |
|
— |
|
— |
|
9,411 |
| ||||||
|
|
|
60,243 |
|
23,145 |
|
91 |
|
— |
|
— |
|
83,479 |
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
961 |
|
827 |
|
10 |
|
— |
|
— |
|
1,798 |
| ||||||
|
Lula, Mississippi |
|
304 |
|
3,425 |
|
11 |
|
— |
|
— |
|
3,740 |
| ||||||
|
Vicksburg, Mississippi |
|
(265 |
) |
2,262 |
|
9 |
|
— |
|
— |
|
2,006 |
| ||||||
|
Caruthersville, Missouri |
|
1,416 |
|
1,691 |
|
10 |
|
— |
|
— |
|
3,117 |
| ||||||
|
Davenport, Iowa |
|
3,167 |
|
1,074 |
|
11 |
|
— |
|
— |
|
4,252 |
| ||||||
|
|
|
5,583 |
|
9,279 |
|
51 |
|
— |
|
— |
|
14,913 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Operating Properties |
|
65,826 |
|
32,424 |
|
142 |
|
— |
|
— |
|
98,392 |
| ||||||
|
Corporate and Other |
|
(23,487 |
) |
1,248 |
|
2,753 |
|
3,341 |
|
1,478 |
|
(14,667 |
) | ||||||
|
Total |
|
$ |
42,339 |
|
$ |
33,672 |
|
$ |
2,895 |
|
$ |
3,341 |
|
$ |
1,478 |
|
$ |
83,725 |
|
|
|
|
Six Months Ended October 23, 2011 |
| ||||||||||||||||
|
|
|
Operating |
|
Depreciation |
|
Stock-Based |
|
Preopening |
|
Financing |
|
Adjusted |
| ||||||
|
Properties Not Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Lake Charles, Louisiana |
|
$ |
5,934 |
|
$ |
4,664 |
|
$ |
31 |
|
$ |
— |
|
$ |
— |
|
$ |
10,629 |
|
|
Kansas City, Missouri |
|
6,179 |
|
2,012 |
|
7 |
|
— |
|
— |
|
8,198 |
| ||||||
|
Boonville, Missouri |
|
12,522 |
|
1,756 |
|
34 |
|
— |
|
— |
|
14,312 |
| ||||||
|
Bettendorf, Iowa |
|
5,533 |
|
4,150 |
|
11 |
|
— |
|
— |
|
9,694 |
| ||||||
|
Marquette, Iowa |
|
2,512 |
|
856 |
|
15 |
|
— |
|
— |
|
3,383 |
| ||||||
|
Waterloo, Iowa |
|
8,682 |
|
3,274 |
|
26 |
|
— |
|
— |
|
11,982 |
| ||||||
|
Black Hawk, Colorado |
|
8,093 |
|
6,029 |
|
20 |
|
— |
|
— |
|
14,142 |
| ||||||
|
Pompano, Florida |
|
4,699 |
|
5,325 |
|
12 |
|
— |
|
— |
|
10,036 |
| ||||||
|
|
|
54,154 |
|
28,066 |
|
156 |
|
— |
|
— |
|
82,376 |
| ||||||
|
Properties Impacted by Flooding |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Natchez, Mississippi |
|
1,308 |
|
734 |
|
16 |
|
— |
|
— |
|
2,058 |
| ||||||
|
Lula, Mississippi |
|
(234 |
) |
3,442 |
|
35 |
|
— |
|
— |
|
3,243 |
| ||||||
|
Vicksburg, Mississippi |
|
56 |
|
2,551 |
|
3 |
|
— |
|
— |
|
2,610 |
| ||||||
|
Caruthersville, Missouri |
|
1,051 |
|
1,629 |
|
16 |
|
— |
|
— |
|
2,696 |
| ||||||
|
Davenport, Iowa |
|
3,433 |
|
1,122 |
|
16 |
|
— |
|
— |
|
4,571 |
| ||||||
|
|
|
5,614 |
|
9,478 |
|
86 |
|
— |
|
— |
|
15,178 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total Operating Properties |
|
59,768 |
|
37,544 |
|
242 |
|
— |
|
— |
|
97,554 |
| ||||||
|
Corporate and Other |
|
(22,302 |
) |
1,278 |
|
4,137 |
|
63 |
|
— |
|
(16,824 |
) | ||||||
|
Total |
|
$ |
37,466 |
|
$ |
38,822 |
|
$ |
4,379 |
|
$ |
63 |
|
$ |
— |
|
$ |
80,730 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
|
October 28, |
|
October 23, |
|
October 28, |
|
October 23, |
| ||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Income (loss) from continuing operations |
|
$ |
(4,341 |
) |
$ |
(1,030 |
) |
$ |
403 |
|
$ |
(3,589 |
) |
|
Income tax provision |
|
(1,182 |
) |
(622 |
) |
136 |
|
(2,183 |
) | ||||
|
Derivative (income) expense |
|
(176 |
) |
(260 |
) |
(310 |
) |
(29 |
) | ||||
|
Interest income |
|
(131 |
) |
(192 |
) |
(306 |
) |
(435 |
) | ||||
|
Interest expense |
|
21,985 |
|
21,877 |
|
42,416 |
|
43,702 |
| ||||
|
Depreciation and amortization |
|
16,850 |
|
19,646 |
|
33,672 |
|
38,822 |
| ||||
|
Stock-based compensation |
|
1,577 |
|
2,432 |
|
2,895 |
|
4,379 |
| ||||
|
Preopening |
|
2,654 |
|
27 |
|
3,341 |
|
63 |
| ||||
|
Financing related |
|
1,478 |
|
— |
|
1,478 |
|
— |
| ||||
|
Adjusted EBITDA |
|
$ |
38,714 |
|
$ |
41,878 |
|
$ |
83,725 |
|
$ |
80,730 |
|
(1) Adjusted EBITDA is “earnings before interest and other non-operating income (expense), income taxes, stock-based compensation, preopening expense and depreciation and amortization.” Adjusted 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 Adjusted 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. Adjusted 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 Adjusted EBITDA. Also, other gaming companies that report Adjusted EBITDA information may calculate Adjusted EBITDA in a different manner than the Company. A reconciliation of Adjusted EBITDA to income (loss) from continuing operations is included in the financial schedules accompanying this release.
Certain of our debt agreements use a similar calculation of “Adjusted EBITDA” as a financial measure for the calculation of financial debt covenants and 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.