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Exhibit 99.1

 

ISLE OF CAPRI CASINOS, INC. ANNOUNCES

FISCAL 2015 FOURTH QUARTER AND YEAR RESULTS

 

SAINT LOUIS, MO — June 9, 2015 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the fourth quarter and fiscal year ended April 26, 2015.

 

2015 Fourth Quarter and Fiscal Year Highlights

 

·                  Fourth quarter Adjusted EBITDA increased 14.8% to $65.6 million year over year.

·                  Fiscal 2015 Adjusted EBITDA increased 15.5% to $200.2 million year over year.

·                  Fiscal 2015 Adjusted EBITDA margin exceeded 20%, up 193 bps year over year.

·                  Reduced debt by $73 million in fiscal 2015 to below $1 billion for the first time since 2000.

·                  Debt to Adjusted EBITDA ratio is below 5x at the end of fiscal 2015.

 

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 26,

 

April 27,

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

2015

 

2014

 

Net revenues

 

$

274.6

 

$

260.8

 

$

996.3

 

$

954.6

 

Consolidated Adjusted EBITDA (1)

 

65.6

 

57.2

 

200.2

 

173.4

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

3.1

 

(139.7

)

5.2

 

(129.7

)

Income (loss) from discontinued operations

 

 

(1.8

)

 

2.0

 

Net income (loss)

 

3.1

 

(141.5

)

5.2

 

(127.7

)

Diluted income (loss) per share from continuing operations

 

0.08

 

(3.51

)

0.13

 

(3.26

)

Diluted income (loss) per share from discontinued operations

 

 

(0.04

)

 

0.05

 

Diluted income (loss) per share

 

0.08

 

(3.55

)

0.13

 

(3.21

)

Adjusted income (loss) per share (2)

 

0.58

 

0.34

 

0.76

 

(0.06

)

 


(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) from Continuing Operations Per Share to Adjusted Income (Loss) Per Share.”

 

Commenting on the results of the quarter and fiscal year, Virginia McDowell, the Company’s president and chief executive officer said: “Fiscal 2015 was a year of many accomplishments.  During the year, we continued to focus on building a better operating company with a prudently leveraged balance sheet.”

 

“Adjusted EBITDA increased 14.8% year over year in our fiscal 2015 fourth quarter, marking the fifth consecutive quarter with an increase in Adjusted EBITDA, and our third consecutive quarter with a double-digit, year-over-year change in Adjusted EBITDA. The early part of the

 

1



 

quarter experienced more favorable weather than the prior year; while we also continued to benefit from the substantial changes we made to our operating model over the past 18 months.”

 

“With fiscal 2015 behind us, we are focused on fiscal 2016 and beyond.  We continue to differentiate ourselves with friendly and excellent customer service. We are prudently investing in our properties by renovating hotel rooms and food and beverage outlets and improving our casino floors with new products. We broke ground on our land-based development at Bettendorf which we expect to open in early fiscal 2017. We continue to optimize our marketing programs and are introducing new productivity tools in fiscal 2016 across the enterprise. Finally we will remain vigilant about our cost structure and we will continue to manage our capital structure to maximize free cash flow, deleverage our balance sheet and lower our cost of capital.”

 

Financial Highlights

 

Net revenues for the quarter increased 5.3% to $274.6 million and consolidated Adjusted EBITDA increased from $57.2 million to $65.6 million, or 14.8%.  Adjusted EBITDA margin was 23.9% for the quarter, relative to 21.9% in the year ago quarter.  Adjusted income per share was $0.58 during the quarter, compared to $0.34 in the prior year.  GAAP basis diluted income (loss) per share from continuing operations for the fiscal 2015 quarter was $0.08 compared to ($3.51) for the fourth quarter of the prior year, including non-cash valuation charges assessed during both periods.

 

For fiscal 2015, net revenues increased 4.4%, to $996.3 million, while Adjusted EBITDA increased 15.5%, to $200.2 million.  Adjusted EBITDA margin for the year was 20.1% relative to 18.2% in fiscal 2014.

 

The following items impacted earnings from continuing operations during the fourth quarters of fiscal 2015 and 2014:

 

·                  We recorded a loss on early extinguishment of debt of $13.8 million in fiscal 2015 related to the tender and refinancing of our 7.75% Senior Notes due 2019.

 

·                  We recorded non-cash impairment charges of $9.0 million in fiscal 2015 and $162.1 million in fiscal 2014.

 

Fourth Quarter Operating Results

 

Black Hawk — Adjusted EBITDA at our two properties increased by $2.6 million, or 34.8%, to $10.1 million, on a revenue increase of $3.5 million, or 11.7%.  The properties benefited from the rollout of Fan Club 2.0 during our fiscal third quarter, which resulted in more targeted marketing spend and gains in market share during the fourth quarter.

 

Pompano — Net revenues increased 12.4% to $54.6 million, Adjusted EBITDA increased 28.6% to $14.9 million, and operating margins increased 345 basis points to 27.2%.  This growth was largely attributable to increased top-tier rated slot play, and continued enhancements in marketing programs.

 

2



 

Iowa — Net revenues for our three properties were up slightly to $48.5 million and Adjusted EBITDA increased slightly to $14.1 million.  Adjusted EBITDA increases of 33.1% and 1.8% at Marquette and Waterloo, respectively, were mostly offset by a 7.7% decline in Adjusted EBITDA at Bettendorf.  The continued proliferation of VLTs in Illinois affected Bettendorf’s results during the quarter, as well as the ongoing renovations of the South Tower hotel, which resulted in approximately 1/3 fewer rooms being available during the period.  Additionally we sold Rhythm City during last year’s fourth quarter.  Following the sale, that property was closed for several days during the transition which benefited Bettendorf.

 

Lake Charles — Net revenues declined 3.1%, to $34.0 million, and Adjusted EBITDA declined 16.6%, to $5.7 million.  Results were impacted during the quarter primarily by a decline in retail non-rated play at the property, likely due to the opening of a new competitor in December 2014 as well as increased marketing expenses to rated players.  While revenue trends have remained solid since the opening of the new competitor, the property will continue to refine marketing programs in the coming months to appropriately match marketing expenses with revenue levels.

 

Mississippi — Net revenues for our three Mississippi properties increased 1.3% to $29.1 million and Adjusted EBITDA increased 32.5% to $7.8 million.  All three properties reported increased Adjusted EBITDA year over year led by Vicksburg, up 28.1%, and Lula, which increased 27.1%.  Vicksburg and Lula benefited from lower marketing and operating costs during the quarter.

 

Missouri — Net revenues for our four Missouri properties increased 5.4% to $65.6 million year over year, while Adjusted EBITDA increased 8.6% to $19.9 million.  All four Missouri properties reported increased Adjusted EBITDA led by Cape Girardeau and Caruthersville which increased 22.2% and 23.8%, respectively.  Boonville’s Adjusted EBITDA increased 5.2% during the quarter, while Kansas City was up slightly.

 

Pennsylvania — Net revenues at our casino at Nemacolin Woodlands Resort were up 20.8%, to $9.0 million and Adjusted EBITDA was ($0.2) million relative to ($0.8) million in the prior year quarter.  The property continues to see solid revenue growth trends which should benefit it into the peak season for the resort.

 

Corporate Expenses

 

Corporate and other expenses were $7.3 million for the quarter, up from $7.1 million, largely as a result of increased incentive compensation accruals relative to the previous year’s fourth quarter.

 

Non-cash stock compensation expense was $0.6 million for the quarter compared to $0.8 million in the fourth quarter of fiscal 2014. For the fiscal year, non-cash stock compensation expense was $3.2 million, compared to $4.2 million in fiscal 2014.

 

3



 

Capital Structure, Capital Expenditures and Updated Guidance

 

As of April 26, 2015, the Company had:

 

·                  $66.4 million in cash and cash equivalents, excluding $9.2 million in restricted cash and investments;

·                  $992.9 million in total debt; and

·                  $218.0 million in net line of credit availability.

 

Fourth quarter capital expenditures were $11.7 million.  For the year our total capital expenditures were approximately $41.7 million.

 

On April 7, 2015 we announced a tender offer for our $300 million of 7.75% Senior Notes due 2019.  Approximately $237.8 million of the Notes were tendered. We funded the tender with borrowings on our existing credit facility, cash on hand, and the issuance of a $150 million add-on to our 5.875% Senior Notes due 2021.  Subsequent to the end of the quarter, on May 14, 2015, we called the remainder of the 2019 notes, funding approximately $62.2 million with additional borrowings on our revolving credit facility.

 

Development

 

On May 13, 2015 we broke ground on our land-based casino project in Bettendorf.  The project will include converting the current three-level riverboat casino into a single-level land-based structure situated between the current North and South hotel towers and will also introduce several new food concepts to the property including a Farmer’s Pick Buffet, an Otis & Henry’s grab-and-go as well as a Lone Wolf bar and stage.  Customers will also benefit from a new porte-cochere, with a grand new casino entrance and a consolidated hotel front desk.  The project is expected to take 12-14 months to complete at a cost of up to $60 million and open in the first half of fiscal 2017.  We expect to fund the construction using cash from operations.

 

For fiscal 2016 we provide guidance for the following specific non-operating items:

 

·                  Depreciation and amortization expense is expected to be approximately $85 million to $87 million, inclusive of approximately $5 million in accelerated depreciation related to the existing riverboat at Bettendorf.

 

·                  Interest expense is expected to be approximately $69 million to $71 million.

 

·                  The Company expects cash income taxes pertaining to fiscal 2016 operations to be less than $1 million, primarily state income taxes.

 

·                  Corporate and development expenses for fiscal 2016 are expected to be approximately $28 million to $30 million, including approximately $5 million in non-cash stock compensation expense.

 

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·                  Maintenance capital expenditures for fiscal 2016 are expected to be approximately $40 million.

 

·                  We also expect to spend approximately $15 million on smaller projects and renovation capital. These include ongoing hotel room renovations at the South Tower in Bettendorf, a hotel room renovation at Boonville, as well as various restaurant renovations across the portfolio.

 

·                  We expect to spend approximately $45 million to $50 million on the land-based project at Bettendorf during fiscal 2016.

 

Conference Call Information

 

Isle of Capri Casinos, Inc. will host a conference call on Tuesday, June 9, 2015 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 888-346-3970.  International callers can access the conference call by dialing 412-317-6011.  The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, June 9, 2015, until 11:59 pm central on Tuesday, June 23, 2015, by dialing 877-344-7529; International: 412-317-0088 and access number 10066537.

 

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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 owns or operates, primarily under the Isle and Lady Luck brands.  The Company currently operates gaming and entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, and 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.,

Eric Hausler, Chief Financial Officer-314-813-9205

Jill Alexander, Senior Director of Corporate Communication-314-813-9368

 

###

 

6



 

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 26,

 

April 27,

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenues:

 

 

 

 

 

 

 

 

 

Casino

 

$

287,567

 

$

271,070

 

$

1,054,926

 

$

1,004,255

 

Rooms

 

7,788

 

7,889

 

31,565

 

32,449

 

Food, beverage, pari-mutuel and other

 

36,977

 

36,182

 

139,816

 

135,305

 

Gross revenues

 

332,332

 

315,141

 

1,226,307

 

1,172,009

 

Less promotional allowances

 

(57,684

)

(54,365

)

(230,029

)

(217,409

)

Net revenues

 

274,648

 

260,776

 

996,278

 

954,600

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Casino

 

40,304

 

39,605

 

161,051

 

158,019

 

Gaming taxes

 

72,797

 

68,384

 

265,527

 

251,901

 

Rooms

 

1,650

 

1,802

 

6,773

 

7,023

 

Food, beverage, pari-mutuel and other

 

14,053

 

13,239

 

49,542

 

46,900

 

Marine and facilities

 

14,826

 

14,655

 

58,144

 

57,624

 

Marketing and administrative

 

58,767

 

59,680

 

234,471

 

234,690

 

Corporate and development

 

7,325

 

7,141

 

29,088

 

28,455

 

Valuation charges

 

9,000

 

162,100

 

9,000

 

162,100

 

Litigation accrual reversals

 

 

 

 

(9,330

)

Preopening expense

 

 

 

 

3,898

 

Depreciation and amortization

 

20,094

 

20,390

 

78,875

 

80,885

 

Total operating expenses

 

238,816

 

386,996

 

892,471

 

1,022,165

 

Operating income (loss)

 

35,832

 

(126,220

)

103,807

 

(67,565

)

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(20,761

)

(21,584

)

(84,131

)

(81,342

)

Interest income

 

96

 

89

 

369

 

349

 

Loss on early extinguishment of debt

 

(13,757

)

 

(13,757

)

 

Derivative income

 

 

 

 

 

398

 

Income (loss) from continuing operations before income taxes

 

1,410

 

(147,715

)

6,288

 

(148,160

)

Income tax benefit (provision)

 

1,682

 

7,995

 

(1,111

)

18,494

 

Income (loss) from continuing operations

 

3,092

 

(139,720

)

5,177

 

(129,666

)

Income (loss) from discontinued operations, net of income taxes

 

 

(1,798

)

 

1,980

 

Net income (loss)

 

$

3,092

 

$

(141,518

)

$

5,177

 

$

(127,686

)

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share-basic:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.08

 

$

(3.51

)

$

0.13

 

$

(3.26

)

Income (loss) from discontinued operations, net of income taxes

 

 

(0.04

)

 

0.05

 

Net income (loss)

 

$

0.08

 

$

(3.55

)

$

0.13

 

$

(3.21

)

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share-dilutive:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.08

 

$

(3.51

)

$

0.13

 

$

(3.26

)

Income (loss) from discontinued operations, net of income taxes

 

 

(0.04

)

 

0.05

 

Net income (loss)

 

$

0.08

 

$

(3.55

)

$

0.13

 

$

(3.21

)

 

 

 

 

 

 

 

 

 

 

Weighted average basic shares

 

40,033,404

 

39,829,177

 

39,955,735

 

39,731,766

 

Weighted average diluted shares

 

41,020,503

 

39,829,177

 

40,320,267

 

39,731,766

 

 

7



 

ISLE OF CAPRI CASINOS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

 

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

66,437

 

$

69,830

 

Marketable securities

 

19,517

 

27,289

 

Accounts receivable, net

 

11,171

 

12,615

 

Inventory

 

6,647

 

6,273

 

Income taxes receivable

 

 

73

 

Deferred income taxes

 

4,626

 

4,106

 

Prepaid expenses and other assets

 

11,274

 

12,253

 

Total current assets

 

119,672

 

132,439

 

Property and equipment, net

 

912,036

 

955,604

 

Other assets:

 

 

 

 

 

Goodwill

 

108,970

 

108,970

 

Other intangible assets, net

 

54,073

 

54,911

 

Deferred financing costs, net

 

19,075

 

23,439

 

Restricted cash and investments

 

9,193

 

9,807

 

Prepaid deposits and other

 

4,743

 

4,904

 

Total assets

 

$

1,227,762

 

$

1,290,074

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current maturities of long-term debt

 

$

170

 

$

230

 

Accounts payable

 

19,690

 

20,869

 

Accrued liabilities:

 

 

 

 

 

Payroll and related

 

43,371

 

34,700

 

Property and other taxes

 

20,456

 

20,360

 

Income tax payable

 

125

 

 

Interest

 

15,350

 

16,920

 

Progressive jackpots and slot club awards

 

16,123

 

16,306

 

Other

 

18,326

 

18,478

 

Total current liabilities

 

133,611

 

127,863

 

Long-term debt, less current maturities

 

992,712

 

1,066,071

 

Deferred income taxes

 

37,334

 

35,870

 

Other accrued liabilities

 

18,432

 

18,495

 

Other long-term liabilities

 

22,211

 

22,391

 

 

 

 

 

 

 

Stockholders’ equity

 

23,462

 

19,384

 

Total liabilities and stockholders’ equity

 

$

1,227,762

 

$

1,290,074

 

 

8



 

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

April 26,

 

April 27,

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

2015

 

2014

 

Colorado

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

33,780

 

$

30,242

 

$

127,722

 

$

121,313

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

Pompano

 

54,646

 

48,631

 

175,588

 

164,777

 

 

 

 

 

 

 

 

 

 

 

Iowa

 

 

 

 

 

 

 

 

 

Bettendorf

 

18,420

 

19,257

 

72,981

 

73,695

 

Marquette

 

6,667

 

5,928

 

25,793

 

25,014

 

Waterloo

 

23,409

 

23,090

 

87,762

 

85,361

 

Iowa Total

 

48,496

 

48,275

 

186,536

 

184,070

 

 

 

 

 

 

 

 

 

 

 

Louisiana

 

 

 

 

 

 

 

 

 

Lake Charles

 

33,966

 

35,044

 

128,413

 

129,899

 

 

 

 

 

 

 

 

 

 

 

Mississippi

 

 

 

 

 

 

 

 

 

Lula

 

15,008

 

14,785

 

53,042

 

50,489

 

Natchez

 

5,362

 

5,404

 

19,233

 

20,190

 

Vicksburg

 

8,700

 

8,501

 

29,876

 

29,947

 

Mississippi Total

 

29,070

 

28,690

 

102,151

 

100,626

 

 

 

 

 

 

 

 

 

 

 

Missouri

 

 

 

 

 

 

 

 

 

Boonville

 

20,441

 

19,463

 

76,934

 

74,531

 

Cape Girardeau

 

16,192

 

15,016

 

59,628

 

54,833

 

Caruthersville

 

8,699

 

8,231

 

31,369

 

29,879

 

Kansas City

 

20,310

 

19,541

 

73,070

 

70,385

 

Missouri Total

 

65,642

 

62,251

 

241,001

 

229,628

 

 

 

 

 

 

 

 

 

 

 

Pennsylvania

 

 

 

 

 

 

 

 

 

Nemacolin

 

9,027

 

7,473

 

34,755

 

23,575

 

 

 

 

 

 

 

 

 

 

 

Property Net Revenues before Other

 

274,627

 

260,606

 

996,166

 

953,888

 

Other

 

21

 

170

 

112

 

712

 

Net Revenues from Continuing Operations

 

$

274,648

 

$

260,776

 

$

996,278

 

$

954,600

 

 

9



 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended April 26, 2015

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Valuation charges,
Preopening and
Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

7,815

 

$

2,286

 

$

7

 

$

 

$

10,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

13,008

 

1,864

 

6

 

 

14,878

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

3,158

 

1,672

 

6

 

 

4,836

 

Marquette

 

1,216

 

366

 

3

 

 

1,585

 

Waterloo

 

6,416

 

1,267

 

4

 

 

7,687

 

Iowa Total

 

10,790

 

3,305

 

13

 

 

14,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

2,904

 

2,754

 

6

 

 

5,664

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula

 

3,283

 

1,274

 

4

 

 

4,561

 

Natchez

 

(68

)

290

 

4

 

 

226

 

Vicksburg

 

2,125

 

914

 

5

 

 

3,044

 

Mississippi Total

 

5,340

 

2,478

 

13

 

 

7,831

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville

 

6,754

 

1,014

 

2

 

 

7,770

 

Cape Girardeau

 

1,058

 

2,852

 

3

 

 

3,913

 

Caruthersville

 

1,804

 

605

 

2

 

 

2,411

 

Kansas City

 

4,729

 

1,053

 

8

 

 

5,790

 

Missouri Total

 

14,345

 

5,524

 

15

 

 

19,884

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

(10,557

)

1,375

 

15

 

9,000

 

(167

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Properties

 

43,645

 

19,586

 

75

 

9,000

 

72,306

 

Corporate and Other

 

(7,813

)

508

 

596

 

 

(6,709

)

Total

 

$

35,832

 

$

20,094

 

$

671

 

$

9,000

 

$

65,597

 

 

 

 

Three Months Ended April 27, 2014

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Valuation charges,
Preopening and
Other

 

Adjusted

EBITDA

 

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

 

 

10



 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Twelve Months Ended April 26, 2015

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Valuation charges,
Preopening and
Other

 

Adjusted
EBITDA

 

Black Hawk, Colorado

 

$

20,614

 

$

9,193

 

$

29

 

$

4,057

 

$

33,893

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano, Florida

 

31,122

 

7,131

 

26

 

 

38,279

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

13,271

 

6,011

 

23

 

 

19,305

 

Marquette

 

4,060

 

1,589

 

11

 

 

5,660

 

Waterloo

 

23,901

 

4,978

 

18

 

(1,225

)

27,672

 

Iowa Total

 

41,232

 

12,578

 

52

 

(1,225

)

52,637

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Charles, Louisiana

 

8,650

 

11,069

 

21

 

 

19,740

 

 

 

 

 

 

 

 

 

 

 

 

 

Lula

 

6,630

 

5,113

 

16

 

 

11,759

 

Natchez

 

(2,113

)

1,076

 

17

 

 

(1,020

)

Vicksburg

 

2,719

 

3,600

 

17

 

 

6,336

 

Mississippi Total

 

7,236

 

9,789

 

50

 

 

17,075

 

 

 

 

 

 

 

 

 

 

 

 

 

Boonville

 

23,778

 

3,960

 

12

 

 

27,750

 

Cape Girardeau

 

215

 

11,281

 

12

 

 

11,508

 

Caruthersville

 

4,346

 

2,497

 

12

 

 

6,855

 

Kansas City

 

13,664

 

3,923

 

27

 

 

17,614

 

Missouri Total

 

42,003

 

21,661

 

63

 

 

63,727

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin, Pennsylvania

 

(16,079

)

5,460

 

22

 

9,000

 

(1,597

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Properties

 

134,778

 

76,881

 

263

 

11,832

 

223,754

 

Corporate and Other

 

(30,971

)

1,994

 

3,150

 

2,259

 

(23,568

)

Total

 

$

103,807

 

$

78,875

 

$

3,413

 

$

14,091

 

$

200,186

 

 

 

 

Twelve Months Ended April 27, 2014

 

 

 

Operating
Income (Loss)

 

Depreciation and
Amortization

 

Stock-Based
Compensation

 

Valuation charges,
Preopening and

Other

 

Adjusted
EBITDA

 

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

 

 

11



 

Isle of Capri Casinos, Inc.

Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

April 26,

 

April 27,

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

2015

 

2014

 

Income (Loss) from continuing operations

 

$

3,092

 

$

(139,720

)

$

5,177

 

$

(129,666

)

Income tax provision (benefit)

 

(1,682

)

(7,995

)

1,111

 

(18,494

)

Derivative income

 

 

 

 

(398

)

Loss on extinguishment of debt

 

13,757

 

 

13,757

 

 

Interest income

 

(96

)

(89

)

(369

)

(349

)

Interest expense

 

20,761

 

21,584

 

84,131

 

81,342

 

Depreciation and amortization

 

20,094

 

20,390

 

78,875

 

80,885

 

Stock-based compensation

 

671

 

880

 

3,413

 

4,399

 

Valuation charges

 

9,000

 

162,100

 

9,000

 

162,100

 

Severance charges

 

 

 

2,259

 

 

Colorado referendum charges

 

 

 

4,057

 

 

Property tax settlement

 

 

 

(1,225

)

 

Litigation accrual reversal

 

 

 

 

(9,330

)

Preopening expense

 

 

 

 

3,898

 

Gain on sale of airplane

 

 

 

 

(1,019

)

Adjusted EBITDA

 

$

65,597

 

$

57,150

 

$

200,186

 

$

173,368

 

 

12



 

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 26,

 

April 27,

 

April 26,

 

April 27,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from continuing operations

 

$

3,092

 

$

(139,720

)

$

5,177

 

$

(129,666

)

Valuation charges (5)

 

9,000

 

162,100

 

9,000

 

162,100

 

Loss on extinguishment of debt

 

13,757

 

 

13,757

 

 

Colorado referendum expense (3)

 

 

 

4,057

 

 

Property tax settlement (3)

 

 

 

(1,225

)

 

Severance expense (3)

 

 

 

2,259

 

 

Tax valuation allowance (reversal)

 

(2,301

)

(1,813

)

(2,301

)

(13,806

)

Uncertain tax benefit reversal

 

 

(6,884

)

 

(6,884

)

Litigation accrual reversals (4)

 

 

 

 

(16,953

)

Preopening expense

 

 

 

 

3,898

 

Gain on sale of corporate aircraft

 

 

 

 

(1,019

)

Adjusted income (loss) (2)

 

$

23,548

 

$

13,683

 

$

30,724

 

$

(2,330

)

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from continuing operations per share

 

$

0.08

 

$

(3.51

)

$

0.13

 

$

(3.26

)

Valuation charges (5)

 

0.22

 

4.07

 

0.22

 

4.08

 

Loss on extinguishment of debt

 

0.34

 

 

0.34

 

 

Colorado referendum expense (3)

 

 

 

0.10

 

 

Property tax settlement (3)

 

 

 

(0.03

)

 

Severance expense (3)

 

 

 

0.06

 

 

Tax valuation allowance (reversal)

 

(0.06

)

(0.05

)

(0.06

)

(0.35

)

Uncertain tax benefit reversal

 

 

(0.17

)

 

(0.17

)

Litigation accrual reversals (4)

 

 

 

 

(0.43

)

Preopening expense

 

 

 

 

0.10

 

Gain on sale of corporate aircraft

 

 

 

 

(0.03

)

Adjusted income (loss) per share

 

$

0.58

 

$

0.34

 

$

0.76

 

$

(0.06

)

 

13



 


(1)         Adjusted EBITDA is “earnings before interest and other non-operating income (expense), income taxes, stock-based compensation, certain severance expenses, certain expenses related to the Colorado gaming referendum, certain property tax and legal settlements, valuation charges, preopening expense, certain asset sale gains, 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 it is an important component 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 certain severance expenses, certain expenses related to the Colorado gaming referendum, certain property tax and legal settlements, valuation charges, preopening expenses and certain asset gains.  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 valuation charges, tax valuation allowances, certain severance expenses, certain expenses related to the Colorado gaming referendum, certain property tax and legal settlements, certain asset sale gains and preopening expenses.

 

(3)         The Company incurred $4.1 million of expense during the twelve months ended April 26, 2015 related to the Colorado gaming expansion referendum. The Company had a favorable property tax settlement related to our Waterloo property of $1.2 million during the twelve months ended April 26, 2015.  The Company recorded $2.3 million of severance expense during the twelve months ended April 26, 2015, related to restructuring at the corporate office.

 

(4)         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.

 

(5)         Valuation charges in the fourth quarter and fiscal 2015 consist of $9.0 million of impairment on the Nemacolin property, plant and equipment. 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.

 

14