Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ISLE OF CAPRI CASINOS INC | a14-15539_18k.htm |
Exhibit 99.1
ISLE OF CAPRI CASINOS, INC. ANNOUNCES
FISCAL 2014 FOURTH QUARTER AND YEAR RESULTS
SAINT LOUIS, MO — June 17, 2014 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the fourth quarter and fiscal year ended April 27, 2014.
Consolidated Financial Results
The following table outlines the Company’s financial results (dollars in millions, except per share data, unaudited):
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| ||||||||
|
|
|
April 27, |
|
April 28, |
|
April 27, |
|
April 28, |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
Net revenues |
|
$ |
260.8 |
|
$ |
257.4 |
|
$ |
954.6 |
|
$ |
923.4 |
|
|
Consolidated Adjusted EBITDA (1) |
|
57.2 |
|
56.7 |
|
173.4 |
|
176.0 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss from continuing operations |
|
(139.7 |
) |
(47.3 |
) |
(129.7 |
) |
(52.5 |
) | ||||
|
Income (loss) from discontinued operations |
|
(1.8 |
) |
1.9 |
|
2.0 |
|
4.9 |
| ||||
|
Net loss |
|
(141.5 |
) |
(45.4 |
) |
(127.7 |
) |
(47.6 |
) | ||||
|
Diluted loss per share from continuing operations |
|
(3.51 |
) |
(1.20 |
) |
(3.26 |
) |
(1.33 |
) | ||||
|
Diluted income (loss) per share from discontinued operations |
|
(0.04 |
) |
0.05 |
|
0.05 |
|
0.12 |
| ||||
|
Diluted loss per share |
|
(3.55 |
) |
(1.15 |
) |
(3.21 |
) |
(1.21 |
) | ||||
|
Adjusted income (loss) per share (2) |
|
0.34 |
|
0.19 |
|
(0.06 |
) |
0.23 |
| ||||
(1) For a further description of Consolidated Adjusted EBITDA, refer to the reconciliation tables following the narrative and the definition of Adjusted EBITDA in footnote (1) of this release.
(2) For a reconciliation of the GAAP basis per share amounts to adjusted income (loss) per share, refer to the reconciliation table labeled “Reconciliation of GAAP Income (Loss) from Continuing Operations to Adjusted Income (Loss) and GAAP Income (Loss) Per Share from Continuing Operations to Adjusted Income (Loss) Per Share.”
Commenting on the results of the quarter Virginia McDowell, the Company’s president and chief executive officer said “Our continued focus on operating efficiencies allowed us to increase revenues and Adjusted EBITDA in a tough operating environment. We improved Adjusted EBITDA and margins on a same store basis (i.e. excluding Nemacolin), despite an overall decline in net revenues. We were able to partially offset the impact of the continued challenging operating environment through refined marketing programs and focused cost discipline. In particular, in Cape Girardeau, these efforts led to a $1.6 million increase in Adjusted EBITDA despite a $1.7 million decrease in net revenue. Also, in Pompano where net revenue increased $2.2 million, Adjusted EBITDA increased $1.7 million, resulting in flow through of 77% of incremental net revenue.
“Weakness in both visitation and win per visit impacted revenue from customers who spend less than $100 per visit. However, visitation and revenues from our top customers has remained relatively constant. In the current environment, we remain disciplined in our marketing and promotional activities.
“We benefited from the impact of our cost savings initiatives as same store operating expenses decreased by over $3 million for the quarter, while our corporate costs were flat despite a $1.6 million increase in our insurance costs, caused by very favorable insurance experience in the prior year quarter. These initiatives are now producing a run rate of $12 million in annualized savings.”
Financial Highlights
Net revenue for the quarter increased $3.4 million to $260.8 million and consolidated Adjusted EBITDA increased from $56.7 million to $57.2 million. Adjusted income per share was $0.34 during the quarter, compared to $0.19 in the prior year. GAAP basis diluted income (loss) per share from continuing operations for the fiscal 2014 quarter was ($3.51) compared to ($1.20) for the fourth quarter of the prior year, including non-cash valuation charges assessed during both periods.
The following items impacted earnings from continuing operations during the fourth quarters of fiscal 2014 and 2013:
· The Company recorded non-cash impairment charges of $162.1 million in fiscal 2014 and $50.1 million in fiscal 2013.
· Interest expense decreased from $25.0 million in the fourth quarter of fiscal 2013 to $21.6 million in the fourth quarter of fiscal 2014 due to lower revolving credit borrowings in the current year quarter, due to the application of the approximately $48.7 million in net proceeds from the sale of our Davenport facility. Additionally the fiscal 2013 quarter included $2.2 million of financing related costs.
· The Company incurred $1.4 million in preopening costs associated with Nemacolin in the fourth quarter of fiscal 2013.
Operating Results
Black Hawk — Adjusted EBITDA decreased by $0.3 million to $7.5 million due to decreased net revenues of $1.0 million. Operating margins remained relatively stable at the property. Decreased revenues were largely attributable to an increased promotional market environment and the extended winter weather, but were partially offset by our targeted marketing efforts during the period.
Pompano — Net revenues increased 4.8% to $48.6 million, Adjusted EBITDA increased 17.6% to $11.6 million, and operating margins increased 258 basis points to 23.8%. This growth was largely attributable to increased slot play, as well as slightly higher food and beverage revenues.
Iowa — Net revenues decreased 5.5% to $48.3 million and Adjusted EBITDA decreased 8.7% to $14.0 million. Net revenues in Iowa were negatively impacted during the quarter by the extended winter weather where, on average, our properties experienced 10 -12 more days with severe weather conditions than in the fourth quarter of fiscal 2013.
Lake Charles — Net revenues increased 6.6% to $35.0 million, and Adjusted EBITDA increased 14.1% to $6.8 million, leading to an increase in operating margins of 128 basis points. A combination of more effective database marketing, improved hotel yielding, as well as stable operating costs drove the improvement.
Mississippi — Net revenues decreased 7.6% to $28.7 million and Adjusted EBITDA decreased $1.9 million to $5.9 million. Our properties in Mississippi continue to be impacted by competitive pressures in their respective markets which were further compounded by unusual winter weather conditions.
Missouri — Net revenues decreased 3.6% to $62.3 million, while Adjusted EBITDA increased by 13.6% to $18.3 million, leading to an increase in operating margins of 445 basis points to 29.4%. In Cape Girardeau, more focused marketing efforts and continued alignment of costs with business volumes produced an adjusted EBITDA increase of $1.6 million while net revenue decreased $1.7 million. We are continuing to develop and refine our marketing programs in this relatively new market. In Kansas City, operating margins, net revenues and Adjusted EBITDA grew, as a result of marketing improvements and cost savings initiatives.
Pennsylvania — Net revenues were $7.5 million and Adjusted EBITDA was ($0.8) million. We remain focused on growing our customer database while continuing to align our operating structure with the business volumes. The winter months are seasonally the slowest and we believe we are better positioned now to capitalize on the high-season periods at this five-star resort in Western Pennsylvania.
Corporate Expenses
Corporate and development expenses were $7.1 million for the quarter, consistent with prior year, despite a $1.6 million increase in insurance related costs.
Non-cash stock compensation expense was $0.8 million for the quarter compared to $0.9 million in the fourth quarter of fiscal 2013. For the fiscal year, non-cash stock compensation expense was $4.2 million, compared to $4.8 million in fiscal 2013.
Capital Structure, Capital Expenditures and Updated Guidance
As of April 27, 2014, the Company had:
· $69.8 million in cash and cash equivalents, excluding $9.8 million in restricted cash and investments;
· $1.1 billion in total debt; and
· $184 million in net line of credit availability.
Fourth quarter capital expenditures were $5.2 million. For the year our total capital expenditures were approximately $38.1 million, including $18.1 million related to the completion of our Nemacolin facility.
The Company provided guidance for the following specific non-operating items for fiscal year 2015:
· Depreciation and amortization expense is expected to be approximately $80 million to $82 million.
· Interest expense is expected to be approximately $83 million to $85 million.
· The Company expects cash income taxes pertaining to FY 2015 operations to be less than $1 million, primarily representing state income taxes.
· Corporate and development expenses for FY 2015 are expected to be approximately $30 million, including approximately $4 million in non-cash stock compensation expense.
· Maintenance capital expenditures for FY 2015 are expected to be approximately $47 million to $50 million.
Development
The Provence, Philadelphia, Pennsylvania — We continue to await the decision from the Pennsylvania Gaming Control Board (the “PGCB”) regarding the awarding of the final license in Philadelphia where we would operate the proposed $700 million casino entertainment complex, dubbed The Provence, if the project is selected for licensure by the PGCB. As proposed the 1.25 million square foot project is expected to include a 125-room hotel, a casino featuring approximately 3,300 electronic gaming machines and 150 table games, as well as a wide variety of non-gaming entertainment amenities. At this time, of the PGCB has not communicated the timetable with respect to a forthcoming decision.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, June 17, 2014 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 877-870-4263. International callers can access the conference call by dialing 412-317-0790. The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, June 17, 2014, until 11:59 pm central on Tuesday, June 24, 2014, by dialing 877-344-7529; International: 412-317-0088 and access number 10047860.
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 casino properties that it owns and operates, primarily under the Isle and Lady Luck brands. The Company currently owns and operates 15 gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado, Pennsylvania and Florida. 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 |
|
Twelve Months Ended |
| ||||||||
|
|
|
April 27, |
|
April 28, |
|
April 27, |
|
April 28, |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
Revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
$ |
271,070 |
|
$ |
270,559 |
|
$ |
1,004,255 |
|
$ |
967,142 |
|
|
Rooms |
|
7,889 |
|
8,063 |
|
32,449 |
|
31,851 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
36,182 |
|
36,265 |
|
135,305 |
|
128,319 |
| ||||
|
Gross revenues |
|
315,141 |
|
314,887 |
|
1,172,009 |
|
1,127,312 |
| ||||
|
Less promotional allowances |
|
(54,365 |
) |
(57,493 |
) |
(217,409 |
) |
(203,907 |
) | ||||
|
Net revenues |
|
260,776 |
|
257,394 |
|
954,600 |
|
923,405 |
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
Casino |
|
39,605 |
|
40,266 |
|
158,019 |
|
150,075 |
| ||||
|
Gaming taxes |
|
69,231 |
|
68,050 |
|
254,685 |
|
241,038 |
| ||||
|
Rooms |
|
1,802 |
|
1,720 |
|
7,023 |
|
6,654 |
| ||||
|
Food, beverage, pari-mutuel and other |
|
12,392 |
|
11,891 |
|
44,116 |
|
41,289 |
| ||||
|
Marine and facilities |
|
14,655 |
|
14,348 |
|
57,624 |
|
54,509 |
| ||||
|
Marketing and administrative |
|
59,680 |
|
58,257 |
|
234,690 |
|
226,397 |
| ||||
|
Corporate and development |
|
7,141 |
|
7,196 |
|
28,455 |
|
33,953 |
| ||||
|
Valuation charges |
|
162,100 |
|
50,100 |
|
162,100 |
|
50,100 |
| ||||
|
Litigation accrual reversals |
|
— |
|
— |
|
(9,330 |
) |
— |
| ||||
|
Preopening expense |
|
— |
|
1,446 |
|
3,898 |
|
5,765 |
| ||||
|
Depreciation and amortization |
|
20,390 |
|
19,762 |
|
80,885 |
|
71,164 |
| ||||
|
Total operating expenses |
|
386,996 |
|
273,036 |
|
1,022,165 |
|
880,944 |
| ||||
|
Operating income (loss) |
|
(126,220 |
) |
(15,642 |
) |
(67,565 |
) |
42,461 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(21,584 |
) |
(25,032 |
) |
(81,342 |
) |
(89,446 |
) | ||||
|
Interest income |
|
89 |
|
96 |
|
349 |
|
502 |
| ||||
|
Derivative income |
|
— |
|
216 |
|
398 |
|
748 |
| ||||
|
Loss from continuing operations before income taxes |
|
(147,715 |
) |
(40,362 |
) |
(148,160 |
) |
(45,735 |
) | ||||
|
Income tax benefit (provision) |
|
7,995 |
|
(6,898 |
) |
18,494 |
|
(6,732 |
) | ||||
|
Loss from continuing operations |
|
(139,720 |
) |
(47,260 |
) |
(129,666 |
) |
(52,467 |
) | ||||
|
Income (loss) from discontinued operations, net of income taxes |
|
(1,798 |
) |
1,869 |
|
1,980 |
|
4,898 |
| ||||
|
Net loss |
|
$ |
(141,518 |
) |
$ |
(45,391 |
) |
$ |
(127,686 |
) |
$ |
(47,569 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income (loss) per common share-basic and diluted: |
|
|
|
|
|
|
|
|
| ||||
|
Loss from continuing operations |
|
$ |
(3.51 |
) |
$ |
(1.20 |
) |
$ |
(3.26 |
) |
$ |
(1.33 |
) |
|
Income (loss) from discontinued operations, net of income taxes |
|
(0.04 |
) |
0.05 |
|
0.05 |
|
0.12 |
| ||||
|
Net loss |
|
$ |
(3.55 |
) |
$ |
(1.15 |
) |
$ |
(3.21 |
) |
$ |
(1.21 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average basic shares |
|
39,829,177 |
|
39,518,406 |
|
39,731,766 |
|
39,340,325 |
| ||||
|
Weighted average diluted shares |
|
39,829,177 |
|
39,518,406 |
|
39,731,766 |
|
39,340,325 |
| ||||
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|
|
|
April 27, |
|
April 28, |
| ||
|
|
|
2014 |
|
2013 |
| ||
|
|
|
(unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
69,830 |
|
$ |
68,469 |
|
|
Marketable securities |
|
27,289 |
|
25,520 |
| ||
|
Accounts receivable, net |
|
12,615 |
|
11,077 |
| ||
|
Income taxes receivable |
|
73 |
|
4,789 |
| ||
|
Deferred income taxes |
|
4,106 |
|
1,573 |
| ||
|
Prepaid expenses and other assets |
|
18,526 |
|
20,872 |
| ||
|
Total current assets |
|
132,439 |
|
132,300 |
| ||
|
Property and equipment, net |
|
955,604 |
|
1,034,026 |
| ||
|
Other assets: |
|
|
|
|
| ||
|
Goodwill |
|
108,970 |
|
280,803 |
| ||
|
Other intangible assets, net |
|
54,911 |
|
60,748 |
| ||
|
Deferred financing costs, net |
|
23,439 |
|
27,230 |
| ||
|
Restricted cash and investments |
|
9,807 |
|
11,417 |
| ||
|
Prepaid deposits and other |
|
4,904 |
|
7,075 |
| ||
|
Total assets |
|
$ |
1,290,074 |
|
$ |
1,553,599 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current maturities of long-term debt |
|
$ |
230 |
|
$ |
415 |
|
|
Accounts payable |
|
20,869 |
|
34,533 |
| ||
|
Accrued liabilities: |
|
|
|
|
| ||
|
Payroll and related |
|
34,700 |
|
35,093 |
| ||
|
Property and other taxes |
|
20,360 |
|
21,340 |
| ||
|
Interest |
|
16,920 |
|
18,502 |
| ||
|
Progressive jackpots and slot club awards |
|
16,306 |
|
16,579 |
| ||
|
Other |
|
18,478 |
|
29,337 |
| ||
|
Total current liabilities |
|
127,863 |
|
155,799 |
| ||
|
Long-term debt, less current maturities |
|
1,066,071 |
|
1,156,469 |
| ||
|
Deferred income taxes |
|
35,870 |
|
43,104 |
| ||
|
Other accrued liabilities |
|
18,495 |
|
33,303 |
| ||
|
Other long-term liabilities |
|
22,391 |
|
22,514 |
| ||
|
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 April 27, 2014 and at April 28, 2013 |
|
421 |
|
421 |
| ||
|
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
|
|
|
— |
| ||
|
Additional paid-in capital |
|
247,819 |
|
246,214 |
| ||
|
Retained earnings (deficit) |
|
(201,913 |
) |
(74,227 |
) | ||
|
Accumulated other comprehensive (loss) income |
|
— |
|
(247 |
) | ||
|
|
|
46,327 |
|
172,161 |
| ||
|
Treasury stock, 2,236,971 shares at April 27, 2014 and 2,470,128 shares at April 28, 2013 |
|
(26,943 |
) |
(29,751 |
) | ||
|
Total stockholders’ equity |
|
19,384 |
|
142,410 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
1,290,074 |
|
$ |
1,553,599 |
|
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| ||||||||
|
|
|
April 27, |
|
April 28, |
|
April 27, |
|
April 28, |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
Colorado |
|
|
|
|
|
|
|
|
| ||||
|
Black Hawk |
|
$ |
30,242 |
|
$ |
31,233 |
|
$ |
121,313 |
|
$ |
122,135 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Florida |
|
|
|
|
|
|
|
|
| ||||
|
Pompano |
|
48,631 |
|
46,393 |
|
164,777 |
|
154,629 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Iowa |
|
|
|
|
|
|
|
|
| ||||
|
Bettendorf |
|
19,257 |
|
20,642 |
|
73,695 |
|
78,083 |
| ||||
|
Marquette |
|
5,928 |
|
6,889 |
|
25,014 |
|
27,605 |
| ||||
|
Waterloo |
|
23,090 |
|
23,547 |
|
85,361 |
|
86,654 |
| ||||
|
Iowa Total |
|
48,275 |
|
51,078 |
|
184,070 |
|
192,342 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Louisiana |
|
|
|
|
|
|
|
|
| ||||
|
Lake Charles |
|
35,044 |
|
32,884 |
|
129,899 |
|
125,575 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Mississippi |
|
|
|
|
|
|
|
|
| ||||
|
Lula |
|
14,785 |
|
15,454 |
|
50,489 |
|
55,444 |
| ||||
|
Natchez |
|
5,404 |
|
6,286 |
|
20,190 |
|
25,378 |
| ||||
|
Vicksburg |
|
8,501 |
|
9,296 |
|
29,947 |
|
29,918 |
| ||||
|
Mississippi Total |
|
28,690 |
|
31,036 |
|
100,626 |
|
110,740 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Missouri |
|
|
|
|
|
|
|
|
| ||||
|
Boonville |
|
19,463 |
|
20,055 |
|
74,531 |
|
78,624 |
| ||||
|
Cape Girardeau |
|
15,016 |
|
16,671 |
|
54,833 |
|
32,782 |
| ||||
|
Caruthersville |
|
8,231 |
|
8,356 |
|
29,879 |
|
32,282 |
| ||||
|
Kansas City |
|
19,541 |
|
19,493 |
|
70,385 |
|
73,538 |
| ||||
|
Missouri Total |
|
62,251 |
|
64,575 |
|
229,628 |
|
217,226 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Pennsylvania |
|
|
|
|
|
|
|
|
| ||||
|
Nemacolin |
|
7,473 |
|
— |
|
23,575 |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Property Net Revenues before Other |
|
260,606 |
|
257,199 |
|
953,888 |
|
922,647 |
| ||||
|
Other |
|
170 |
|
195 |
|
712 |
|
758 |
| ||||
|
Net Revenues from Continuing Operations |
|
$ |
260,776 |
|
$ |
257,394 |
|
$ |
954,600 |
|
$ |
923,405 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Three Months Ended April 27, 2014 |
| |||||||||||||
|
|
|
Operating |
|
Depreciation and |
|
Stock-Based |
|
Valuation charges, |
|
Adjusted |
| |||||
|
Black Hawk, Colorado |
|
$ |
4,936 |
|
$ |
2,552 |
|
$ |
8 |
|
$ |
— |
|
$ |
7,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Pompano, Florida |
|
9,833 |
|
1,726 |
|
6 |
|
— |
|
11,565 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Bettendorf |
|
(56,212 |
) |
1,448 |
|
3 |
|
60,000 |
|
5,239 |
| |||||
|
Marquette |
|
738 |
|
452 |
|
1 |
|
— |
|
1,191 |
| |||||
|
Waterloo |
|
6,367 |
|
1,183 |
|
4 |
|
— |
|
7,554 |
| |||||
|
Iowa Total |
|
(49,107 |
) |
3,083 |
|
8 |
|
60,000 |
|
13,984 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lake Charles, Louisiana |
|
(20,366 |
) |
2,919 |
|
4 |
|
24,238 |
|
6,795 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lula |
|
(33,693 |
) |
1,279 |
|
3 |
|
36,000 |
|
3,589 |
| |||||
|
Natchez |
|
(10,865 |
) |
299 |
|
4 |
|
10,509 |
|
(53 |
) | |||||
|
Vicksburg |
|
(3,531 |
) |
903 |
|
4 |
|
5,000 |
|
2,376 |
| |||||
|
Mississippi Total |
|
(48,089 |
) |
2,481 |
|
11 |
|
51,509 |
|
5,912 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Boonville |
|
6,403 |
|
977 |
|
6 |
|
— |
|
7,386 |
| |||||
|
Cape Girardeau |
|
379 |
|
2,822 |
|
1 |
|
— |
|
3,202 |
| |||||
|
Caruthersville |
|
1,250 |
|
693 |
|
4 |
|
— |
|
1,947 |
| |||||
|
Kansas City |
|
4,822 |
|
941 |
|
4 |
|
— |
|
5,767 |
| |||||
|
Missouri Total |
|
12,854 |
|
5,433 |
|
15 |
|
— |
|
18,302 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nemacolin, Pennsylvania |
|
(28,767 |
) |
1,655 |
|
1 |
|
26,353 |
|
(758 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total Operating Properties |
|
(118,706 |
) |
19,849 |
|
53 |
|
162,100 |
|
63,296 |
| |||||
|
Corporate and Other |
|
(7,514 |
) |
541 |
|
827 |
|
— |
|
(6,146 |
) | |||||
|
Total |
|
$ |
(126,220 |
) |
$ |
20,390 |
|
$ |
880 |
|
$ |
162,100 |
|
$ |
57,150 |
|
|
|
|
Three Months Ended April 28, 2013 |
| |||||||||||||
|
|
|
Operating |
|
Depreciation and |
|
Stock-Based |
|
Valuation charges, |
|
Adjusted |
| |||||
|
Black Hawk, Colorado |
|
$ |
5,443 |
|
$ |
2,303 |
|
$ |
11 |
|
$ |
— |
|
$ |
7,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Pompano, Florida |
|
7,981 |
|
1,846 |
|
7 |
|
— |
|
9,834 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Bettendorf |
|
4,211 |
|
1,737 |
|
3 |
|
— |
|
5,951 |
| |||||
|
Marquette |
|
978 |
|
556 |
|
3 |
|
— |
|
1,537 |
| |||||
|
Waterloo |
|
6,627 |
|
1,194 |
|
6 |
|
— |
|
7,827 |
| |||||
|
Iowa Total |
|
11,816 |
|
3,487 |
|
12 |
|
— |
|
15,315 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lake Charles, Louisiana |
|
2,893 |
|
3,057 |
|
6 |
|
— |
|
5,956 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lula |
|
(31,001 |
) |
1,318 |
|
6 |
|
34,100 |
|
4,423 |
| |||||
|
Natchez |
|
(15,836 |
) |
353 |
|
5 |
|
16,000 |
|
522 |
| |||||
|
Vicksburg |
|
1,490 |
|
1,324 |
|
5 |
|
— |
|
2,819 |
| |||||
|
Mississippi Total |
|
(45,347 |
) |
2,995 |
|
16 |
|
50,100 |
|
7,764 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Boonville |
|
6,251 |
|
896 |
|
5 |
|
— |
|
7,152 |
| |||||
|
Cape Girardeau |
|
(1,177 |
) |
2,810 |
|
4 |
|
— |
|
1,637 |
| |||||
|
Caruthersville |
|
1,276 |
|
840 |
|
5 |
|
— |
|
2,121 |
| |||||
|
Kansas City |
|
4,208 |
|
992 |
|
4 |
|
— |
|
5,204 |
| |||||
|
Missouri Total |
|
10,558 |
|
5,538 |
|
18 |
|
— |
|
16,114 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nemacolin, Pennsylvania |
|
(1,446 |
) |
— |
|
— |
|
1,446 |
|
— |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total Operating Properties |
|
(8,102 |
) |
19,226 |
|
70 |
|
51,546 |
|
62,740 |
| |||||
|
Corporate and Other |
|
(7,540 |
) |
536 |
|
938 |
|
— |
|
(6,066 |
) | |||||
|
Total |
|
$ |
(15,642 |
) |
$ |
19,762 |
|
$ |
1,008 |
|
$ |
51,546 |
|
$ |
56,674 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Twelve Months Ended April 27, 2014 |
| |||||||||||||
|
|
|
Operating |
|
Depreciation and |
|
Stock-Based |
|
Valuation charges, |
|
Adjusted |
| |||||
|
Black Hawk, Colorado |
|
$ |
20,067 |
|
$ |
9,593 |
|
$ |
35 |
|
$ |
— |
|
$ |
29,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Pompano, Florida |
|
25,116 |
|
7,109 |
|
25 |
|
— |
|
32,250 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Bettendorf |
|
(47,873 |
) |
6,381 |
|
13 |
|
60,000 |
|
18,521 |
| |||||
|
Marquette |
|
3,472 |
|
1,875 |
|
6 |
|
— |
|
5,353 |
| |||||
|
Waterloo |
|
21,074 |
|
4,791 |
|
18 |
|
— |
|
25,883 |
| |||||
|
Iowa Total |
|
(23,327 |
) |
13,047 |
|
37 |
|
60,000 |
|
49,757 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lake Charles, Louisiana |
|
(15,350 |
) |
11,738 |
|
17 |
|
24,238 |
|
20,643 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lula |
|
(33,285 |
) |
5,225 |
|
14 |
|
36,000 |
|
7,954 |
| |||||
|
Natchez |
|
(12,865 |
) |
1,306 |
|
17 |
|
10,509 |
|
(1,033 |
) | |||||
|
Vicksburg |
|
(3,282 |
) |
3,698 |
|
17 |
|
5,000 |
|
5,433 |
| |||||
|
Mississippi Total |
|
(49,432 |
) |
10,229 |
|
48 |
|
51,509 |
|
12,354 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Boonville |
|
22,583 |
|
4,074 |
|
24 |
|
— |
|
26,681 |
| |||||
|
Cape Girardeau |
|
(2,359 |
) |
11,183 |
|
6 |
|
— |
|
8,830 |
| |||||
|
Caruthersville |
|
2,232 |
|
2,960 |
|
18 |
|
— |
|
5,210 |
| |||||
|
Kansas City |
|
13,022 |
|
3,802 |
|
16 |
|
— |
|
16,840 |
| |||||
|
Missouri Total |
|
35,478 |
|
22,019 |
|
64 |
|
— |
|
57,561 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nemacolin, Pennsylvania |
|
(39,993 |
) |
5,440 |
|
3 |
|
30,251 |
|
(4,299 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total Operating Properties |
|
(47,441 |
) |
79,175 |
|
229 |
|
165,998 |
|
197,961 |
| |||||
|
Corporate and Other |
|
(20,124 |
) |
1,710 |
|
4,170 |
|
(10,349 |
) |
(24,593 |
) | |||||
|
Total |
|
$ |
(67,565 |
) |
$ |
80,885 |
|
$ |
4,399 |
|
$ |
155,649 |
|
$ |
173,368 |
|
|
|
|
Twelve Months Ended April 28, 2013 |
| |||||||||||||
|
|
|
Operating |
|
Depreciation and |
|
Stock-Based |
|
Valuation charges, |
|
Adjusted |
| |||||
|
Black Hawk, Colorado |
|
$ |
20,109 |
|
$ |
8,837 |
|
$ |
43 |
|
$ |
— |
|
$ |
28,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Pompano, Florida |
|
19,396 |
|
7,252 |
|
28 |
|
— |
|
26,676 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Bettendorf |
|
13,995 |
|
6,948 |
|
16 |
|
— |
|
20,959 |
| |||||
|
Marquette |
|
3,718 |
|
1,901 |
|
15 |
|
— |
|
5,634 |
| |||||
|
Waterloo |
|
21,544 |
|
5,026 |
|
22 |
|
— |
|
26,592 |
| |||||
|
Iowa Total |
|
39,257 |
|
13,875 |
|
53 |
|
— |
|
53,185 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lake Charles, Louisiana |
|
9,270 |
|
10,070 |
|
20 |
|
— |
|
19,360 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Lula |
|
(29,815 |
) |
6,098 |
|
21 |
|
34,100 |
|
10,404 |
| |||||
|
Natchez |
|
(14,667 |
) |
1,539 |
|
19 |
|
16,000 |
|
2,891 |
| |||||
|
Vicksburg |
|
1,184 |
|
4,664 |
|
19 |
|
— |
|
5,867 |
| |||||
|
Mississippi Total |
|
(43,298 |
) |
12,301 |
|
59 |
|
50,100 |
|
19,162 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Boonville |
|
24,004 |
|
3,545 |
|
22 |
|
— |
|
27,571 |
| |||||
|
Cape Girardeau |
|
(5,135 |
) |
5,572 |
|
10 |
|
4,050 |
|
4,497 |
| |||||
|
Caruthersville |
|
2,832 |
|
3,361 |
|
21 |
|
— |
|
6,214 |
| |||||
|
Kansas City |
|
13,275 |
|
4,012 |
|
14 |
|
— |
|
17,301 |
| |||||
|
Missouri Total |
|
34,976 |
|
16,490 |
|
67 |
|
4,050 |
|
55,583 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nemacolin, Pennsylvania |
|
(1,715 |
) |
— |
|
— |
|
1,715 |
|
— |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total Operating Properties |
|
77,995 |
|
68,825 |
|
270 |
|
55,865 |
|
202,955 |
| |||||
|
Corporate and Other |
|
(35,534 |
) |
2,339 |
|
4,788 |
|
1,478 |
|
(26,929 |
) | |||||
|
Total |
|
$ |
42,461 |
|
$ |
71,164 |
|
$ |
5,058 |
|
$ |
57,343 |
|
$ |
176,026 |
|
Isle of Capri Casinos, Inc.
Reconciliation of Loss From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| ||||||||
|
|
|
April 27, |
|
April 28, |
|
April 27, |
|
April 28, |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
Loss from continuing operations |
|
$ |
(139,720 |
) |
$ |
(47,260 |
) |
$ |
(129,666 |
) |
$ |
(52,467 |
) |
|
Income tax provision (benefit) |
|
(7,995 |
) |
6,898 |
|
(18,494 |
) |
6,732 |
| ||||
|
Derivative income |
|
— |
|
(216 |
) |
(398 |
) |
(748 |
) | ||||
|
Interest income |
|
(89 |
) |
(96 |
) |
(349 |
) |
(502 |
) | ||||
|
Interest expense |
|
21,584 |
|
25,032 |
|
81,342 |
|
89,446 |
| ||||
|
Depreciation and amortization |
|
20,390 |
|
19,762 |
|
80,885 |
|
71,164 |
| ||||
|
Stock-based compensation |
|
880 |
|
1,008 |
|
4,399 |
|
5,058 |
| ||||
|
Valuation charges |
|
162,100 |
|
50,100 |
|
162,100 |
|
50,100 |
| ||||
|
Litigation accrual reversal |
|
— |
|
— |
|
(9,330 |
) |
— |
| ||||
|
Preopening expense |
|
— |
|
1,446 |
|
3,898 |
|
5,765 |
| ||||
|
Gain on sale of airplane |
|
— |
|
— |
|
(1,019 |
) |
— |
| ||||
|
Financing related |
|
— |
|
— |
|
— |
|
1,478 |
| ||||
|
Adjusted EBITDA |
|
$ |
57,150 |
|
$ |
56,674 |
|
$ |
173,368 |
|
$ |
176,026 |
|
Isle of Capri Casinos, Inc.
Reconciliations of GAAP Income (Loss) From Continuing Operations to Adjusted Income (Loss) and GAAP Income (Loss) From Continuing Operations Per Share to Adjusted Income (Loss) Per Share
(unaudited, in thousands)
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| ||||||||
|
|
|
April 27, |
|
April 28, |
|
April 27, |
|
April 28, |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
GAAP loss from continuing operations |
|
$ |
(139,720 |
) |
$ |
(47,260 |
) |
$ |
(129,666 |
) |
$ |
(52,467 |
) |
|
Valuation charges (4) |
|
162,100 |
|
50,100 |
|
162,100 |
|
50,100 |
| ||||
|
Tax valuation allowance (reversal) |
|
(1,813 |
) |
758 |
|
(13,806 |
) |
758 |
| ||||
|
Uncertain tax benefit reversal |
|
(6,884 |
) |
— |
|
(6,884 |
) |
— |
| ||||
|
Litigation accrual reversals (3) |
|
— |
|
— |
|
(16,953 |
) |
— |
| ||||
|
Preopening expense |
|
— |
|
1,446 |
|
3,898 |
|
5,765 |
| ||||
|
Gain on sale of corporate aircraft |
|
— |
|
— |
|
(1,019 |
) |
— |
| ||||
|
Financing related (5) |
|
— |
|
2,236 |
|
— |
|
4,742 |
| ||||
|
Adjusted income (loss) (2) |
|
$ |
13,683 |
|
$ |
7,280 |
|
$ |
(2,330 |
) |
$ |
8,898 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
GAAP loss from continuing operations per share |
|
$ |
(3.51 |
) |
$ |
(1.20 |
) |
$ |
(3.26 |
) |
$ |
(1.33 |
) |
|
Valuation charges (4) |
|
4.07 |
|
1.27 |
|
4.08 |
|
1.27 |
| ||||
|
Tax valuation allowance (reversal) |
|
(0.05 |
) |
0.02 |
|
(0.35 |
) |
0.02 |
| ||||
|
Uncertain tax benefit reversal |
|
(0.17 |
) |
— |
|
(0.17 |
) |
— |
| ||||
|
Litigation accrual reversals (3) |
|
— |
|
— |
|
(0.43 |
) |
— |
| ||||
|
Preopening expense |
|
— |
|
0.04 |
|
0.10 |
|
0.15 |
| ||||
|
Gain on sale of corporate aircraft |
|
— |
|
— |
|
(0.03 |
) |
— |
| ||||
|
Financing related (5) |
|
— |
|
0.06 |
|
— |
|
0.12 |
| ||||
|
Adjusted income (loss) per share |
|
$ |
0.34 |
|
$ |
0.19 |
|
$ |
(0.06 |
) |
$ |
0.23 |
|
(1) Adjusted EBITDA is “earnings before interest and other non-operating income (expense), income taxes, stock-based compensation, valuation charges, preopening expense, litigation accrual reversals, financing related expenses 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 charges, 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) Adjusted income (loss) is presented solely as a supplemental disclosure as this is one method management reviews and utilizes to analyze the performance of its core operating business. For many of the same reasons mentioned above related to Adjusted EBITDA, management believes Adjusted income (loss) and Adjusted income (loss) per share are useful analytic tools as they enable management to track the performance of its core casino operating business separate and apart from factors that do not impact decisions affecting its operating casino properties, such as valuation charges, litigation accrual reversals or preopening expenses. Management believes Adjusted income (loss) and Adjusted income (loss) per share are useful to investors since these adjustments provide a measure of financial performance that more closely resembles widely used measures of performance and valuation in the gaming industry. Adjusted income (loss) and adjusted income (loss) per share do not include tax valuation allowance reversals, valuation charges, litigation accrual reversals, preopening expenses, certain asset sale gains, certain financing related expenses, and income or loss from discontinued operations.
(3) Litigation accrual reversals for the twelve months ended April 27, 2014, includes a $9.3 million reduction to operating expenses and a $7.6 million reduction of interest expense.
(4) Valuation charges in the fourth quarter and fiscal 2014 consist of goodwill impairment charges of $60.0 million at our Bettendorf property, $24.2 million at our Lake Charles property, $36.0 million at our Lula property, $8.6 million at our Natchez property and $5.0 million at our Vicksburg property. In addition, during the fourth quarter of fiscal 2014, we also recorded impairment charges related to property, plant and equipment, net of $14.2 million and $1.9 million at our Nemacolin and Natchez properties, respectively, and $12.2 million related to intangible assets at our Nemacolin property. Valuation charges in the fourth quarter and fiscal 2013 consist of goodwill impairment charges of $34.1 million at our Lula property and $16.0 million at our Natchez property.
(5) Fiscal 2013 financing charges relate to non-capitalizable fees of $1.5 million associated with the tender offer of our 7% Senior Subordinated Notes during fiscal 2013, recorded in Corporate and development expenses, and the non-cash write off of deferred financing costs of $2.2 million and $3.3 million during the fourth quarter and fiscal 2013, respectively, related to debt refinancing and recorded in interest expense.