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8-K - 8-K - ISLE OF CAPRI CASINOS INCa12-28507_18k.htm
EX-99.2 - EX-99.2 - ISLE OF CAPRI CASINOS INCa12-28507_1ex99d2.htm

Exhibit 99.1

 

ISLE OF CAPRI CASINOS, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

OCTOBER 28, 2012

(In thousands, except share and per share amounts)

 

 

 

 

 

PRO FORMA

 

 

 

 

 

 

 

ADJUSTMENTS

 

 

 

 

 

 

 

SALE OF

 

AS REPORTED

 

 

 

 

 

RIVERBOAT

 

WITH

 

 

 

 

 

CORPORATION OF

 

PRO FORMA

 

 

 

AS REPORTED

 

MISSISSIPPI

 

ADJUSTMENTS

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

75,479

 

$

33,016

(a)

$

108,495

 

Marketable securities

 

24,277

 

 

 

24,277

 

Accounts receivable, net

 

8,007

 

 

 

8,007

 

Income tax receivable

 

4,723

 

 

 

4,723

 

Deferred income taxes

 

615

 

 

 

615

 

Prepaid expenses and other assets

 

28,550

 

 

 

28,550

 

Assets held for sale

 

45,557

 

(45,557

)(b)

 

Total current assets

 

187,208

 

(12,541

)

174,667

 

Property and equipment, net

 

1,009,406

 

 

 

1,009,406

 

Other assets:

 

 

 

 

 

 

 

Goodwill

 

330,903

 

 

 

330,903

 

Other intangible assets, net

 

61,167

 

 

 

61,167

 

Deferred financing costs, net

 

18,246

 

 

 

18,246

 

Restricted cash

 

12,916

 

 

 

12,916

 

Prepaid deposits and other

 

7,469

 

 

 

7,469

 

Total assets

 

$

1,627,315

 

$

(12,541

)

$

1,614,774

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current maturities of long-term debt

 

5,406

 

 

 

$

5,406

 

Accounts payable

 

33,282

 

 

 

33,282

 

Accrued liabilities:

 

 

 

 

 

 

 

Payroll and related

 

37,043

 

 

 

37,043

 

Property and other taxes

 

25,168

 

 

 

25,168

 

Interest

 

14,099

 

 

 

14,099

 

Progressive jackpots and slot club awards

 

15,136

 

 

 

15,136

 

Liabilities related to assets held for sale

 

8,041

 

(8,041

)(c)

 

Other

 

40,777

 

(4,500

)(d)

36,277

 

Total current liabilities

 

178,952

 

(12,541

)

166,411

 

Long-term debt, less current maturities

 

1,177,065

 

 

 

1,177,065

 

Deferred income taxes

 

35,804

 

 

 

35,804

 

Other accrued liabilities

 

32,162

 

 

 

32,162

 

Other long-term liabilities

 

16,489

 

 

 

16,489

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

421

 

 

 

421

 

Class B common stock

 

 

 

 

 

Additional paid-in capital

 

244,656

 

 

 

244,656

 

Retained earnings

 

(26,650

)

 

 

(26,650

)

Accumulated other comprehensive loss

 

(544

)

 

 

(544

)

 

 

217,883

 

 

217,883

 

Treasury stock

 

(31,040

)

 

 

(31,040

)

Total stockholders’ equity

 

186,843

 

 

186,843

 

Total liabilities and stockholders’ equity

 

$

1,627,315

 

$

(12,541

)

$

1,614,774

 

 

See accompanying Notes to Unaudited Pro Forma Financial Statements

 



 

ISLE OF CAPRI CASINOS, INC.

UNAUDITED PRO FORMACONSOLIDATED STATEMENT OF OPERATIONS

SIX MONTHS ENDED OCTOBER 28, 2012

(In thousands, except share and per share amounts)

 

 

 

 

 

PRO FORMA

 

 

 

 

 

 

 

ADJUSTMENTS

 

 

 

 

 

 

 

SALE OF

 

AS REPORTED

 

 

 

 

 

RIVERBOAT

 

WITH

 

 

 

 

 

CORPORATION OF

 

PRO FORMA

 

 

 

AS REPORTED

 

MISSISSIPPI (a)

 

ADJUSTMENTS

 

Revenues:

 

 

 

 

 

 

 

Casino

 

$

484,917

 

 

 

$

484,917

 

Rooms

 

16,958

 

 

 

16,958

 

Food, beverage, pari-mutuel and other

 

63,243

 

 

 

63,243

 

Gross revenues

 

565,118

 

 

565,118

 

Less promotional allowances

 

(106,088

)

 

 

(106,088

)

Net revenues

 

459,030

 

 

459,030

 

Operating expenses:

 

 

 

 

 

 

 

Casino

 

75,298

 

 

 

75,298

 

Gaming taxes

 

120,247

 

 

 

120,247

 

Rooms

 

3,554

 

 

 

3,554

 

Food, beverage, pari-mutuel and other

 

19,321

 

 

 

19,321

 

Marine and facilities

 

27,588

 

 

 

27,588

 

Marketing and administrative

 

114,420

 

 

 

114,420

 

Corporate and development

 

19,250

 

 

 

19,250

 

Preopening expense

 

3,341

 

 

 

3,341

 

Depreciation and amortization

 

33,672

 

 

 

33,672

 

Total operating expenses

 

416,691

 

 

416,691

 

Operating income (loss):

 

42,339

 

 

42,339

 

Interest expense

 

(42,416

)

 

 

(42,416

)

Interest income

 

306

 

 

 

306

 

Derivative income

 

310

 

 

 

310

 

Income from continuing operations before income taxes

 

539

 

 

539

 

Income tax (provision)

 

(136

)

 

(136

)

Income from continuing operations

 

$

403

 

$

 

$

403

 

 

 

 

 

 

 

 

 

Income per common share-basic and dilutive from continuing operations

 

$

0.01

 

$

 

$

0.01

 

 

 

 

 

 

 

 

 

Weighted average basic shares

 

39,177,208

 

 

 

39,177,208

 

Weighted average diluted shares

 

39,192,075

 

 

 

39,192,075

 

 

See accompanying Notes to Unaudited Pro Forma Financial Statements

 



 

ISLE OF CAPRI CASINOS, INC.

UNAUDITED PRO FORMACONSOLIDATED STATEMENT OF OPERATIONS

FISCAL YEAR ENDED APRIL 29, 2012

(In thousands, except share and per share amounts)

 

 

 

 

 

PRO FORMA

 

 

 

 

 

 

 

ADJUSTMENTS

 

 

 

 

 

 

 

SALE OF

 

AS REPORTED

 

 

 

 

 

RIVERBOAT

 

WITH

 

 

 

 

 

CORPORATION OF

 

PRO FORMA

 

 

 

AS REPORTED

 

MISSISSIPPI (a)

 

ADJUSTMENTS

 

Revenues:

 

 

 

 

 

 

 

Casino

 

$

1,006,523

 

 

 

$

1,006,523

 

Rooms

 

32,438

 

 

 

32,438

 

Food, beverage, pari-mutuel and other

 

128,560

 

 

 

128,560

 

Insurance recoveries

 

9,637

 

 

 

9,637

 

Gross revenues

 

1,177,158

 

 

1,177,158

 

Less promotional allowances

 

(199,787

)

 

 

(199,787

)

Net revenues

 

977,371

 

 

977,371

 

Operating expenses:

 

 

 

 

 

 

 

Casino

 

153,743

 

 

 

153,743

 

Gaming taxes

 

251,780

 

 

 

251,780

 

Rooms

 

7,027

 

 

 

7,027

 

Food, beverage, pari-mutuel and other

 

41,281

 

 

 

41,281

 

Marine and facilities

 

57,225

 

 

 

57,225

 

Marketing and administrative

 

234,470

 

 

 

234,470

 

Corporate and development

 

40,248

 

 

 

40,248

 

Valuation charges

 

30,549

 

 

 

30,549

 

Preopening expense

 

615

 

 

 

615

 

Depreciation and amortization

 

76,050

 

 

 

76,050

 

Total operating expenses

 

892,988

 

 

892,988

 

Operating income (loss):

 

84,383

 

 

84,383

 

Interest expense

 

(87,905

)

 

 

(87,905

)

Interest income

 

819

 

 

 

819

 

Derivative income

 

439

 

 

 

439

 

(Loss) from continuing operations before income taxes

 

(2,264

)

 

(2,264

)

Income tax (provision)

 

(15,119

)

 

(15,119

)

(Loss) from continuing operations

 

$

(17,383

)

$

 

$

(17,383

)

 

 

 

 

 

 

 

 

(Loss) per common share-basic and dilutive from continuing operations

 

$

(0.45

)

$

 

$

(0.45

)

 

 

 

 

 

 

 

 

Weighted average basic shares

 

38,753,098

 

 

 

38,753,098

 

Weighted average diluted shares

 

38,753,098

 

 

 

38,753,098

 

 

See accompanying Notes to Unaudited Pro Forma Financial Statements

 



 

ISLE OF CAPRI CASINOS, INC.

UNAUDITED PRO FORMACONSOLIDATED STATEMENT OF OPERATIONS

FISCAL YEAR ENDED APRIL 24, 2011

(In thousands, except share and per share amounts)

 

 

 

 

 

PRO FORMA

 

 

 

 

 

 

 

ADJUSTMENTS

 

 

 

 

 

 

 

SALE OF

 

AS REPORTED

 

 

 

 

 

RIVERBOAT

 

WITH

 

 

 

 

 

CORPORATION OF

 

PRO FORMA

 

 

 

AS REPORTED

 

MISSISSIPPI (a)

 

ADJUSTMENTS

 

Revenues:

 

 

 

 

 

 

 

Casino

 

$

968,423

 

 

 

$

968,423

 

Rooms

 

32,144

 

 

 

32,144

 

Food, beverage, pari-mutuel and other

 

121,955

 

 

 

121,955

 

Gross revenues

 

1,122,522

 

 

1,122,522

 

Less promotional allowances

 

(185,861

)

 

 

(185,861

)

Net revenues

 

936,661

 

 

936,661

 

Operating expenses:

 

 

 

 

 

 

 

Casino

 

142,642

 

 

 

142,642

 

Gaming taxes

 

242,949

 

 

 

242,949

 

Rooms

 

7,290

 

 

 

7,290

 

Food, beverage, pari-mutuel and other

 

40,559

 

 

 

40,559

 

Marine and facilities

 

55,211

 

 

 

55,211

 

Marketing and administrative

 

225,757

 

 

 

225,757

 

Corporate and development

 

42,709

 

 

 

42,709

 

Depreciation and amortization

 

77,613

 

 

 

77,613

 

Total operating expenses

 

834,730

 

 

834,730

 

Operating income (loss):

 

101,931

 

 

101,931

 

Interest expense

 

(91,935

)

 

 

(91,935

)

Interest income

 

1,903

 

 

 

1,903

 

Derivative expense

 

(1,214

)

 

 

(1,214

)

Income from continuing operations before income taxes

 

10,685

 

 

10,685

 

Income tax (provision)

 

(6,950

)

 

(6,950

)

Income from continuing operations

 

$

3,735

 

$

 

$

3,735

 

 

 

 

 

 

 

 

 

Income per common share - basic and dilutive from continuing operations

 

$

0.11

 

$

 

$

0.11

 

 

 

 

 

 

 

 

 

Weighted average basic shares

 

34,066,159

 

 

 

34,066,159

 

Weighted average diluted shares

 

34,174,717

 

 

 

34,174,717

 

 

See accompanying Notes to Unaudited Pro Forma Financial Statements

 



 

ISLE OF CAPRI CASINOS, INC.

UNAUDITED PRO FORMACONSOLIDATED STATEMENT OF OPERATIONS

FISCAL YEAR ENDED APRIL 25, 2010

(In thousands, except share and  per share amounts)

 

 

 

 

 

PRO FORMA

 

 

 

 

 

 

 

ADJUSTMENTS

 

 

 

 

 

 

 

SALE OF

 

AS REPORTED

 

 

 

 

 

RIVERBOAT

 

WITH

 

 

 

 

 

CORPORATION OF

 

PRO FORMA

 

 

 

AS REPORTED

 

MISSISSIPPI (a)

 

ADJUSTMENTS

 

Revenues:

 

 

 

 

 

 

 

Casino

 

$

943,234

 

 

 

$

943,234

 

Rooms

 

33,548

 

 

 

33,548

 

Food, beverage, pari-mutuel and other

 

122,200

 

 

 

122,200

 

Gross revenues

 

1,098,982

 

 

1,098,982

 

Less promotional allowances

 

(171,747

)

 

 

(171,747

)

Net revenues

 

927,235

 

 

927,235

 

Operating expenses:

 

 

 

 

 

 

 

Casino

 

137,305

 

 

 

137,305

 

Gaming taxes

 

254,718

 

 

 

254,718

 

Rooms

 

7,960

 

 

 

7,960

 

Food, beverage, pari-mutuel and other

 

40,088

 

 

 

40,088

 

Marine and facilities

 

55,559

 

 

 

55,559

 

Marketing and administrative

 

223,778

 

 

 

223,778

 

Corporate and development

 

46,750

 

 

 

46,750

 

Expense recoveries

 

(6,762

)

 

 

(6,762

)

Depreciation and amortization

 

95,478

 

 

 

95,478

 

Total operating expenses

 

854,874

 

 

854,874

 

Operating income (loss):

 

72,361

 

 

72,361

 

Interest expense

 

(75,434

)

 

 

(75,434

)

Interest income

 

1,814

 

 

 

1,814

 

Derivative expense

 

(370

)

 

 

(370

)

Income from continuing operations before income taxes

 

(1,629

)

 

(1,629

)

Income tax (provision)

 

6,609

 

 

6,609

 

Income from continuing operations

 

$

4,980

 

$

 

$

4,980

 

 

 

 

 

 

 

 

 

Income per common share-basic and dilutive from continuing operations

 

$

0.15

 

$

 

$

0.15

 

 

 

 

 

 

 

 

 

Weighted average basic shares

 

32,245,769

 

 

 

32,245,769

 

Weighted average diluted shares

 

32,362,280

 

 

 

32,362,280

 

 

See accompanying Notes to Unaudited Pro Forma Financial Statements

 



 

ISLE OF CAPRI CASINOS, INC.

 

NOTES TO UNAUDITED PROFORMA CONSOLIDATED FINANCIAL STATEMENTS

 

(In thousands)

 

1.              Basis of Presentation

 

The unaudited pro forma condensed consolidated financial statements of the Company include adjustments to the Company’s historical financial statements to reflect the disposition of its Biloxi, Mississippi casino operations under its subsidiary, Riverboat Corporation of Mississippi.

 

The historical financial information of the company has been derived from the historical audited and unaudited consolidated financial statements of the Company included in its Annual Report on Form 10-K for the fiscal year ended April 29, 2012 and its Quarterly Report on From 10-Q for the quarter ended October 28, 2012.  The unaudited pro forma balance sheet was prepared as if the disposition occurred as of October 28, 2012.  The unaudited pro forma consolidated statements of operations for the fiscal years ended April 29, 2012, April 24, 2011 and April 25, 2010, and the six months ended October 28, 2012, were prepared as if the disposition of Riverboat Corporation of Mississippi occurred as the 1st day of each presented period.  The pro forma adjustments are based on factually supportable available information.

 

The unaudited pro forma statements presented do not purport to represent what the financial position or results of operations of the Company would have been had the transaction occurred on the dates noted above, or to project the results of operations or financial position of the Company for any future periods.  In the opinion of management, all necessary adjustments to the unaudited pro forma financial information have been made.

 

2.              Adjustments to the Unaudited Pro Forma Consolidated Balance Sheet

 

(a)         Increase in cash reflects estimated cash proceeds upon completion of Riverboat Corporation of Mississippi, net of cash remaining with the disposed subsidiary.

(b)         Represents assets held for sale of Riverboat Corporation of Mississippi sold to the Buyer under the terms of the purchase agreement.

(c)          Represents liabilities related to assets held for sale of Riverboat Corporation of Mississippi assumed by the Buyer under the terms of the purchase agreement.

(d)         Application of purchase price deposit.

 

3.              Adjustments to Unaudited Pro Forma Consolidated Statement of Operations

 

(a)         The Company’s historical financial statements, as filed on Form 10-K and Form 10-Q, presented the operating results for Riverboat Corporation of Mississippi as discontinued operations. No preform adjustments are necessary to present income (loss) from continuing operations on a pro forma basis.