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Exhibit 99.1

 

ISLE OF CAPRI CASINOS, INC. ANNOUNCES

FISCAL 2014 SECOND QUARTER RESULTS

 

SAINT LOUIS, MO — December 3, 2013 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the second quarter of fiscal year 2014 ended October 27, 2013 and other Company-related news.

 

Consolidated Financial Results

 

The following table outlines the Company’s financial results (dollars in millions, except per share data, unaudited):

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

October 27,

 

October 28,

 

October 27,

 

October 28,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net revenues

 

$

241.6

 

$

223.2

 

$

489.3

 

$

459.0

 

Consolidated Adjusted EBITDA (1)

 

39.6

 

38.7

 

82.9

 

83.7

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

8.0

 

(4.3

)

3.2

 

0.4

 

Loss from discontinued operations

 

 

(2.3

)

 

(0.4

)

Net income (loss)

 

8.0

 

(6.6

)

3.2

 

 

Diluted income (loss) per share from continuing operations

 

0.20

 

(0.11

)

0.08

 

0.01

 

Diluted loss per share from discontinued operations

 

 

(0.06

)

 

(0.01

)

Diluted income (loss) per share

 

0.20

 

(0.17

)

0.08

 

 

 


(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.

 

Diluted income (loss) per share from continuing operations for the quarter was $0.20 compared to ($0.11) for the second quarter last year. Net income for the current year quarter was impacted by a favorable judicial ruling on litigation in Greece, in which the Company reversed a $14.7 million litigation accrual, of which $7.3 million reduced operating expenses and $7.4 million reduced interest expense.  The results for the prior year quarter were impacted by $2.7 million in preopening costs associated with the Cape Girardeau casino which opened on October 30, 2012, and $2.5 million in refinancing costs.  Excluding these items, diluted earnings per share from continuing operations for the fiscal 2014 quarter would have been a loss of ($0.17) compared to break even ($0.00) for the prior year quarter.

 

Virginia McDowell, the Company’s president and chief executive officer, commented,

 

“As a company, we continue to make operating improvements and enhancements across the portfolio, but we also continue to struggle with the effects of the uncertain economy.

 

“During the fiscal quarter, we experienced a modest, $2.1 million decline in same store revenue, and Adjusted EBITDA at these same properties declined $1.2 million, largely as a result of increased competition in Natchez and events we could not have predicted, including the

 

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substantial flooding in Colorado and the Federal government shutdown. However, we increased EBITDA at six properties and margins increased at eight properties, including significant performance improvements at our properties in Pompano, Vicksburg and Lake Charles.

 

“While the uncertain consumer economy continues to be a drag on our results, we continue to focus on maximizing the profitability of our portfolio and enhancing shareholder value. To that end, we have recently undertaken a top-to-bottom review of our business practices and are implementing bold changes to the way we view and operate our business.  We have begun a wide-ranging initiative across our entire company to delete duplication, streamline decision making and aggressively pursue additional cost savings.  These initiatives have contributed approximately $2.5 million to our results so far this year and when fully implemented we expect the annualized run rate will be at least $10 million.

 

“Furthermore, we are committed to improving profitability at our newest facilities in Cape Girardeau and Nemacolin.  Both markets continue to ramp slower than we originally anticipated and we expect it will take a couple more years to fully penetrate the markets.  However, we are taking every possible step to make the properties successful in the short term. We recently introduced a new general manager in Cape Girardeau and will continue to modify our cost structure in Nemacolin.”

 

Operating Results

 

Black Hawk — Net revenues and Adjusted EBITDA each decreased approximately $0.7 million to $30.0 million and $6.9 million, respectively, at our two casinos in Black Hawk, primarily as a result of the widespread flooding in Colorado during the period and construction disruption due to exterior refurbishments at Lady Luck Black Hawk and road construction.

 

Pompano — Net revenues increased 8.0% to $36.4 million, and Adjusted EBITDA increased 12.8%, to $5.5 million at Pompano Park.  These results were driven primarily by increased marketing promotions that led to a $5.1 million increase in gross slot win during the period, partially offset by additional marketing expenses.

 

Iowa — Net revenues decreased $1.5 million to $56.9 million, and Adjusted EBITDA was essentially flat at $15.4 million at our properties in Iowa.  Our properties in Marquette and Waterloo were able to offset declines in net revenue through cost containment efforts.  In the Quad Cities, we were hampered by the government shutdown and adjusted EBITDA decreased $0.2 million.

 

Lake Charles — Net revenues increased 5.0% to $31.2 million, and Adjusted EBITDA increased 6.9% to $4.5 million.  The Lake Charles property continues to improve comparative results due to the benefits from facility enhancements, database marketing initiatives, promotional events and advertising campaigns. During the prior year quarter, results were impacted by construction disruption associated with renovations to the primary hotel tower.

 

Missouri — Net revenues increased $10.1 million to $56.1 million, and Adjusted EBITDA increased $0.5 million to $12.8 million at our properties in Missouri, collectively.  Cape

 

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Girardeau contributed $13.0 million in net revenues and $1.6 million of Adjusted EBITDA in the fiscal 2014 quarter.  Results at our three other properties in the state were negatively impacted by growing unemployment, the impact of the government shutdown in middle Missouri and competitive pressures in the Kansas City market, resulting in a decrease in net revenues and Adjusted EBITDA of $2.9 million and $1.1 million respectively .

 

Mississippi — Net revenues grew $1.1 million to $7.0 million and Adjusted EBITDA grew $0.4 million at our newly renovated Vicksburg facility, as market share grew 410 basis points to 17.1% in the quarter.  In Lula cost savings efforts led to increased Adjusted EBITDA despite a $1.2 million decrease in net revenue.  In Natchez, the impact of a new competitor continues to hamper operating results leading to a decrease in net revenues and Adjusted EBITDA of $1.2 million and $0.9 million, respectively.  Collectively, net revenues decreased 5.2% to $23.4 million, and Adjusted EBITDA decreased 12.3% to $1.5 million at our properties in Mississippi.

 

Pennsylvania — Net revenues were $7.4 million, and Adjusted EBITDA was ($1.3) million.  This is the first year of operation for Lady Luck Casino at Nemacolin Woodlands Resort, and the first full fiscal quarter of operation. We continue to fine tune our marketing to both local customers and resort guests and to aggressively manage our cost structure.

 

Corporate Expenses

 

Corporate and development expenses were $7.4 million for the quarter, a decrease of $3.4 million compared to the prior year.  Included in the results for fiscal 2013 are $1.5 million in refinancing related costs and $1.0 million in increased legal costs.  The remainder of the decrease is attributable to cost containment initiatives at the corporate office.

 

Non-cash stock compensation expense was $1.4 million for the quarter compared to $1.5 million in the second quarter of fiscal 2013.

 

Corporate and development expenses for FY2014 are expected to be approximately $30 million, including approximately $5 million for non-cash stock based compensation expense, a decrease of $4 million from previous guidance primarily a result of cost containment initiatives and a $1.0 million gain on the sale of the corporate aircraft in the first quarter.

 

Development

 

Sale of Rhythm City Casino Davenport — In June 2013 we entered into an agreement with Scott County Casino LLC, led by Dan Kehl, providing it with an option to purchase Rhythm City for $51 million subject to certain terms and conditions.  On November 24, 2013 the City Council of Davenport approved the terms of a development agreement with Scott County Casino, LLC.  Mr. Kehl has informed us that Scott County Casino, LLC intends to execute the option agreement to purchase the property. Upon receipt of the notice to exercise and other documentation we expect to enter into a definitive purchase agreement with Scott County Casino, LLC.

 

The Provence, Philadelphia, Pennsylvania — On February 1, 2013, we entered into an agreement with Tower Entertainment, LLC, to operate the proposed $700 million casino entertainment

 

3



 

complex, dubbed The Provence, in Philadelphia, if selected for licensure by the Pennsylvania Gaming Control Board.  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, including at least eight restaurants, many smaller bars and eateries, 60,000 square feet of retail space, a concert hall and several entertainment clubs. The Pennsylvania Gaming Control Board has announced that suitability hearings before the Board have been scheduled for January 28 — 30th of 2014.

 

Capital Structure and Capital Expenditures

 

As of October 27, 2013, the Company had:

 

·                  $70.0 million in cash and cash equivalents, excluding $9.8 million in restricted cash and investments;

·                  $1.2 billion in total debt; and

·                  $104 million in net line of credit availability.

 

Second quarter capital expenditures were $8.4 million, bringing total capital expenditures to $38.2 million for the six months, of which $25.2 million related to Nemacolin.

 

The Company expects to incur approximately $20 million to $22 million in capital expenditures for the balance of fiscal 2014 bringing estimated total capital expenditures for fiscal 2014 to approximately $58 million to $60 million, including the $25.2 million related to Nemacolin construction.

 

Conference Call Information

 

Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December 3, 2013 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 866-652-5200.  International callers can access the conference call by dialing 412-317-6060.  The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, December 3, 2013, until midnight central on Tuesday, December 10, 2013, by dialing 877-344-7529; International: 412-317-0088 and access number 10037247.

 

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 16 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.

 

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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

 

###

 

5


 


 

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 27,

 

October 28,

 

October 27,

 

October 28,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

Casino

 

$

257,928

 

$

234,648

 

$

520,070

 

$

484,917

 

Rooms

 

8,713

 

8,328

 

17,628

 

16,958

 

Food, beverage, pari-mutuel and other

 

33,728

 

30,437

 

68,944

 

63,243

 

Gross revenues

 

300,369

 

273,413

 

606,642

 

565,118

 

Less promotional allowances

 

(58,789

)

(50,206

)

(117,333

)

(106,088

)

Net revenues

 

241,580

 

223,207

 

489,309

 

459,030

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Casino

 

41,267

 

36,802

 

83,010

 

75,298

 

Gaming taxes

 

65,722

 

58,619

 

131,698

 

120,247

 

Rooms

 

1,880

 

1,781

 

3,789

 

3,554

 

Food, beverage, pari-mutuel and other

 

10,590

 

9,217

 

21,659

 

19,321

 

Marine and facilities

 

14,802

 

13,888

 

29,850

 

27,588

 

Marketing and administrative

 

61,844

 

56,464

 

123,950

 

114,420

 

Corporate and development

 

7,386

 

10,777

 

14,084

 

19,250

 

Litigation accrual reversal

 

(7,351

)

 

(7,351

)

 

 

Preopening expense

 

 

2,654

 

3,898

 

3,341

 

Depreciation and amortization

 

21,102

 

16,850

 

41,497

 

33,672

 

Total operating expenses

 

217,242

 

207,052

 

446,084

 

416,691

 

Operating income

 

24,338

 

16,155

 

43,225

 

42,339

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(15,194

)

(21,985

)

(37,852

)

(42,416

)

Interest income

 

84

 

131

 

174

 

306

 

Derivative income

 

168

 

176

 

398

 

310

 

Income (loss) from continuing operations before income taxes

 

9,396

 

(5,523

)

5,945

 

539

 

Income tax (provision) benefit

 

(1,359

)

1,182

 

(2,770

)

(136

)

Income (loss) from continuing operations

 

8,037

 

(4,341

)

3,175

 

403

 

Loss from discontinued operations, net of income taxes

 

 

(2,312

)

 

(395

)

Net income (loss)

 

$

8,037

 

$

(6,653

)

$

3,175

 

$

8

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share-basic:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.20

 

$

(0.11

)

$

0.08

 

$

0.01

 

Income from discontinued operations, net of income taxes

 

 

(0.06

)

 

(0.01

)

Net income (loss)

 

$

0.20

 

$

(0.17

)

$

0.08

 

$

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share-dilutive:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.20

 

$

(0.11

)

$

0.08

 

$

0.01

 

Income from discontinued operations, net of income taxes

 

 

(0.06

)

 

(0.01

)

Net income (loss)

 

$

0.20

 

$

(0.17

)

$

0.08

 

$

 

 

 

 

 

 

 

 

 

 

 

Weighted average basic shares

 

39,686,217

 

39,336,134

 

39,634,573

 

39,177,208

 

Weighted average diluted shares

 

39,731,192

 

39,336,134

 

39,682,644

 

39,192,075

 

 

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ISLE OF CAPRI CASINOS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

 

 

October 27,

 

April 28,

 

 

 

2013

 

2013

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

69,958

 

$

68,469

 

Marketable securities

 

25,120

 

25,520

 

Accounts receivable, net

 

9,870

 

11,077

 

Income taxes receivable

 

4,343

 

4,789

 

Deferred income taxes

 

2,096

 

1,573

 

Prepaid expenses and other assets

 

25,726

 

20,872

 

Total current assets

 

137,113

 

132,300

 

Property and equipment, net

 

1,017,472

 

1,034,026

 

Other assets:

 

 

 

 

 

Goodwill

 

280,803

 

280,803

 

Other intangible assets, net

 

67,690

 

60,748

 

Deferred financing costs, net

 

25,680

 

27,230

 

Restricted cash and investments

 

9,782

 

11,417

 

Prepaid deposits and other

 

5,087

 

7,075

 

Total assets

 

$

1,543,627

 

$

1,553,599

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current maturities of long-term debt

 

$

433

 

$

415

 

Accounts payable

 

19,078

 

34,533

 

Accrued liabilities:

 

 

 

 

 

Payroll and related

 

35,696

 

35,093

 

Property and other taxes

 

25,627

 

21,340

 

Interest

 

17,073

 

18,502

 

Progressive jackpots and slot club awards

 

16,267

 

16,579

 

Other

 

30,996

 

29,337

 

Total current liabilities

 

145,170

 

155,799

 

Long-term debt, less current maturities

 

1,162,264

 

1,156,469

 

Deferred income taxes

 

45,967

 

43,104

 

Other accrued liabilities

 

19,324

 

33,303

 

Other long-term liabilities

 

22,433

 

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 October 27, 2013 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

 

246,522

 

246,214

 

Retained earnings (deficit)

 

(71,052

)

(74,227

)

Accumulated other comprehensive (loss) income

 

 

(247

)

 

 

175,891

 

172,161

 

Treasury stock, 2,276,760 shares at October 27, 2013 and 2,470,128 shares at April 28, 2013

 

(27,422

)

(29,751

)

Total stockholders’ equity

 

148,469

 

142,410

 

Total liabilities and stockholders’ equity

 

$

1,543,627

 

$

1,553,599

 

 

7



 

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

October 27,

 

October 28,

 

October 27,

 

October 28,

 

 

 

2013

 

2012

 

2013

 

2012

 

Colorado

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

30,023

 

$

30,670

 

$

62,707

 

$

62,023

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

Pompano

 

36,400

 

33,691

 

73,786

 

68,376

 

 

 

 

 

 

 

 

 

 

 

Iowa

 

 

 

 

 

 

 

 

 

Bettendorf

 

18,965

 

19,694

 

38,430

 

39,549

 

Davenport

 

9,959

 

10,390

 

19,675

 

21,036

 

Marquette

 

6,911

 

7,332

 

14,023

 

14,713

 

Waterloo

 

21,040

 

20,925

 

41,982

 

42,337

 

Iowa Total

 

56,875

 

58,341

 

114,110

 

117,635

 

 

 

 

 

 

 

 

 

 

 

Louisiana

 

 

 

 

 

 

 

 

 

Lake Charles

 

31,244

 

29,749

 

64,910

 

63,327

 

 

 

 

 

 

 

 

 

 

 

Mississippi

 

 

 

 

 

 

 

 

 

Lula

 

11,523

 

12,772

 

24,102

 

27,403

 

Natchez

 

4,795

 

5,962

 

10,122

 

12,963

 

Vicksburg

 

7,035

 

5,897

 

14,814

 

13,455

 

Mississippi Total

 

23,353

 

24,631

 

49,038

 

53,821

 

 

 

 

 

 

 

 

 

 

 

Missouri

 

 

 

 

 

 

 

 

 

Boonville

 

18,891

 

19,798

 

37,620

 

40,186

 

Cape Girardeau

 

13,049

 

 

26,858

 

 

Caruthersville

 

7,199

 

8,144

 

14,886

 

16,777

 

Kansas City

 

16,936

 

18,012

 

35,007

 

36,532

 

Missouri Total

 

56,075

 

45,954

 

114,371

 

93,495

 

 

 

 

 

 

 

 

 

 

 

Pennsylvania

 

 

 

 

 

 

 

 

 

Nemacolin

 

7,429

 

 

10,022

 

 

 

 

 

 

 

 

 

 

 

 

Property Net Revenues before Other

 

241,399

 

223,036

 

488,944

 

458,677

 

Other

 

181

 

171

 

365

 

353

 

Net Revenues from Continuing Operations

 

$

241,580

 

$

223,207

 

$

489,309

 

$

459,030

 

 

8


 


 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended October 27, 2013

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Preopening
and Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

4,532

 

$

2,356

 

$

8

 

$

 

$

6,896

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

3,727

 

1,788

 

6

 

 

5,521

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf, Iowa

 

3,276

 

1,679

 

3

 

 

4,958

 

Davenport, Iowa

 

1,727

 

580

 

4

 

 

2,311

 

Marquette, Iowa

 

1,242

 

487

 

1

 

 

1,730

 

Waterloo, Iowa

 

5,230

 

1,202

 

4

 

 

6,436

 

Iowa Total

 

11,475

 

3,948

 

12

 

 

15,435

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

1,460

 

3,003

 

4

 

 

4,467

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula, Mississippi

 

(186

)

1,322

 

3

 

 

1,139

 

Natchez, Mississippi

 

(736

)

342

 

4

 

 

(390

)

Vicksburg, Mississippi

 

(110

)

891

 

4

 

 

785

 

Mississippi Total

 

(1,032

)

2,555

 

11

 

 

1,534

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville, Missouri

 

5,762

 

911

 

6

 

 

6,679

 

Cape Girardeau, Missouri

 

(1,225

)

2,788

 

1

 

 

1,564

 

Caruthersville, Missouri

 

325

 

742

 

4

 

 

1,071

 

Kansas City, Missouri

 

2,560

 

961

 

4

 

 

3,525

 

Missouri Total

 

7,422

 

5,402

 

15

 

 

12,839

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

(3,013

)

1,670

 

1

 

 

 

(1,342

)

Total Operating Properties

 

24,571

 

20,722

 

57

 

 

45,350

 

Corporate and Other

 

(233

)

380

 

1,446

 

(7,351

)

(5,758

)

Total

 

$

24,338

 

$

21,102

 

$

1,503

 

$

(7,351

)

$

39,592

 

 

 

 

Three Months Ended October 28, 2012

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Preopening
and Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

5,435

 

$

2,210

 

$

14

 

$

 

$

7,659

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

3,083

 

1,803

 

8

 

 

4,894

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf, Iowa

 

3,578

 

1,770

 

4

 

 

5,352

 

Davenport, Iowa

 

1,566

 

546

 

6

 

 

2,118

 

Marquette, Iowa

 

1,172

 

445

 

5

 

 

1,622

 

Waterloo, Iowa

 

5,218

 

1,165

 

6

 

 

6,389

 

Iowa Total

 

11,534

 

3,926

 

21

 

 

15,481

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

1,867

 

2,310

 

2

 

 

4,179

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula, Mississippi

 

(803

)

1,702

 

6

 

 

905

 

Natchez, Mississippi

 

118

 

359

 

5

 

 

482

 

Vicksburg, Mississippi

 

(860

)

1,218

 

5

 

 

363

 

Mississippi Total

 

(1,545

)

3,279

 

16

 

 

1,750

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville, Missouri

 

5,918

 

886

 

6

 

 

6,810

 

Cape Girardeau, Missouri

 

(2,654

)

 

 

2,654

 

 

Caruthersville, Missouri

 

593

 

835

 

5

 

 

1,433

 

Kansas City, Missouri

 

3,152

 

980

 

4

 

 

4,136

 

Missouri Total

 

7,009

 

2,701

 

15

 

2,654

 

12,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

 

 

 

 

 

Total Operating Properties

 

27,383

 

16,229

 

76

 

2,654

 

46,342

 

Corporate and Other

 

(11,228

)

621

 

1,501

 

1,478

 

(7,628

)

Total

 

$

16,155

 

$

16,850

 

$

1,577

 

$

4,132

 

$

38,714

 

 

9



 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Six Months Ended October 27, 2013

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Preopening
and Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

10,616

 

$

4,675

 

$

19

 

$

 

$

15,310

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

7,894

 

3,634

 

13

 

 

11,541

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf, Iowa

 

6,489

 

3,378

 

7

 

 

9,874

 

Davenport, Iowa

 

2,517

 

1,173

 

9

 

 

3,699

 

Marquette, Iowa

 

2,462

 

965

 

4

 

 

3,431

 

Waterloo, Iowa

 

9,858

 

2,422

 

10

 

 

12,290

 

Iowa Total

 

21,326

 

7,938

 

30

 

 

29,294

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

4,194

 

5,880

 

9

 

 

10,083

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula, Mississippi

 

176

 

2,648

 

8

 

 

2,832

 

Natchez, Mississippi

 

(1,335

)

693

 

9

 

 

(633

)

Vicksburg, Mississippi

 

270

 

1,896

 

9

 

 

2,175

 

Mississippi Total

 

(889

)

5,237

 

26

 

 

4,374

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville, Missouri

 

10,987

 

2,063

 

12

 

 

13,062

 

Cape Girardeau, Missouri

 

(1,910

)

5,575

 

4

 

 

3,669

 

Caruthersville, Missouri

 

782

 

1,547

 

10

 

 

2,339

 

Kansas City, Missouri

 

5,400

 

1,937

 

8

 

 

7,345

 

Missouri Total

 

15,259

 

11,122

 

34

 

 

26,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

(8,024

)

2,227

 

1

 

3,898

 

(1,898

)

Total Operating Properties

 

50,376

 

40,713

 

132

 

3,898

 

95,119

 

Corporate and Other

 

(7,151

)

784

 

2,505

 

(8,370

)

(12,232

)

Total

 

$

43,225

 

$

41,497

 

$

2,637

 

$

(4,472

)

$

82,887

 

 

 

 

Six Months Ended October 28, 2012

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Preopening
and Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

10,843

 

$

4,358

 

$

24

 

$

 

$

15,225

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

5,820

 

3,577

 

14

 

 

9,411

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf, Iowa

 

7,108

 

3,483

 

9

 

 

10,600

 

Davenport, Iowa

 

3,167

 

1,074

 

11

 

 

4,252

 

Marquette, Iowa

 

2,431

 

876

 

10

 

 

3,317

 

Waterloo, Iowa

 

10,132

 

2,657

 

11

 

 

12,800

 

Iowa Total

 

22,838

 

8,090

 

41

 

 

30,969

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

5,230

 

4,422

 

6

 

 

9,658

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula, Mississippi

 

304

 

3,425

 

11

 

 

3,740

 

Natchez, Mississippi

 

961

 

827

 

10

 

 

1,798

 

Vicksburg, Mississippi

 

(265

)

2,262

 

9

 

 

2,006

 

Mississippi Total

 

1,000

 

6,514

 

30

 

 

7,544

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville, Missouri

 

12,412

 

1,753

 

11

 

 

14,176

 

Cape Girardeau, Missouri

 

(3,341

)

 

 

3,341

 

 

Caruthersville, Missouri

 

1,416

 

1,691

 

10

 

 

3,117

 

Kansas City, Missouri

 

6,267

 

2,019

 

6

 

 

8,292

 

Missouri Total

 

16,754

 

5,463

 

27

 

3,341

 

25,585

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

 

 

 

 

 

Total Operating Properties

 

62,485

 

32,424

 

142

 

3,341

 

98,392

 

Corporate and Other

 

(20,146

)

1,248

 

2,753

 

1,478

 

(14,667

)

Total

 

$

42,339

 

$

33,672

 

$

2,895

 

$

4,819

 

$

83,725

 

 

10



 

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 27,

 

October 28,

 

October 27,

 

October 28,

 

 

 

2013

 

2012

 

2013

 

2012

 

Income (loss) from continuing operations

 

$

8,037

 

$

(4,341

)

$

3,175

 

$

403

 

Income tax provision (benefit)

 

1,359

 

(1,182

)

2,770

 

136

 

Derivative income

 

(168

)

(176

)

(398

)

(310

)

Interest income

 

(84

)

(131

)

(174

)

(306

)

Interest expense

 

15,194

 

21,985

 

37,852

 

42,416

 

Depreciation and amortization

 

21,102

 

16,850

 

41,497

 

33,672

 

Stock-based compensation

 

1,503

 

1,577

 

2,637

 

2,895

 

Litigation accrual reversal

 

(7,351

)

 

(7,351

)

 

Preopening expense

 

 

2,654

 

3,898

 

3,341

 

Gain on sale of airplane

 

 

 

(1,019

)

 

Financing related

 

 

1,478

 

 

1,478

 

Adjusted EBITDA

 

$

39,592

 

$

38,714

 

$

82,887

 

$

83,725

 

 

11



 

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.

 

 

12