ST. LOUIS, Feb. 25, 2015 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the third quarter of fiscal year 2015 ended January 25, 2015, 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


Nine Months Ended


January 25,


January 26,


January 25,


January 26,


2015


2014


2015


2014

Net revenues

$         241.1


$         224.2


$         721.6


$         693.8

Consolidated Adjusted EBITDA (1)

47.2


37.0


134.6


116.2









Income from continuing operations

5.4


9.4


2.1


10.0

Income from discontinued operations

-


1.3


-


3.8

Net income 

5.4


10.7


2.1


13.8

Diluted income per share from continuing operations

0.13


0.24


0.05


0.25

Diluted income per share from discontinued operations

-


0.03


-


0.10

Diluted income per share

0.13


0.27


0.05


0.35

Adjusted income (loss) per share (2)

0.13


(0.12)


0.18


(0.41)



(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 from Continuing Operations to Adjusted Income (Loss) and GAAP Income from Continuing Operations Per Share to Adjusted Income (Loss) Per Share."

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

"Over the past 18 months, we implemented comprehensive operational changes to better align the returns on our marketing programs and costs of doing business. We did this all while driving higher customer satisfaction.  We continued to realize the benefits of those initiatives this quarter as, for the fourth consecutive quarter, we reported a year-over-year increase in Adjusted EBITDA. Every one of our properties generated an increase in Adjusted EBITDA and all but one property generated higher net revenues. 

"Although we benefited from better weather and macroeconomic trends during the quarter relative to last year's third quarter, Adjusted EBITDA for all but two of our properties exceeded results not only compared to the prior fiscal year quarter, but also compared to the prior two fiscal year quarters. Three of our most profitable properties—Pompano, Boonville and Waterloo—set new third quarter records for Adjusted EBITDA, while Lake Charles reported the highest third quarter Adjusted EBITDA in the past three years, despite a new competitor being open for more than half the quarter.

"We are cautiously optimistic about the trends we are seeing in regional gaming, but regardless of the outlook, I am confident that the changes we are continuing to make in our business position us well in any operating environment."

Financial Highlights

Net revenues for the third quarter were up 7.5%, to $241.1 million, compared to $224.2 million in the prior year quarter, and consolidated Adjusted EBITDA increased 27.6%, to $47.2 million from $37.0 million in the prior year quarter. Adjusted EBITDA margin was 19.6% compared to 16.5% in the prior year quarter.

There were no unusual items affecting this year's third quarter results; however, the prior year benefited from the reversal of a $2.2 million litigation accrual due to a favorable court ruling, and a $12.0 million reversal of a previously recorded tax valuation allowance as a result of the sale of our Davenport property. 

On a GAAP basis, diluted income per share from continuing operations in the current quarter was $0.13, compared to $0.24 in the prior year quarter. Adjusted income per share from continuing operations in the current quarter was $0.13, compared to adjusted loss per share from continuing operations of ($0.12) in the prior year quarter. 

Operating Results

Black Hawk – Net revenues increased $1.2 million, or 4.1%, to $29.5 million at our two properties.  Adjusted EBITDA was flat primarily as a result of additional marketing costs resulting from the first full quarter of Fan Club since its introduction.

Pompano – Net revenues increased $4.1 million, or 9.7%, to $46.5 million and Adjusted EBITDA increased $1.4 million, or 15.8%, to $10.6 million.  We generated strong increases in both rated and retail revenue during the quarter.  Operating margins improved to 22.8% from 21.6%.

Iowa – Net revenues increased $2.5 million, or 6.1%, to $43.9 million and Adjusted EBITDA increased $1.7 million, or 16.6%, to $11.9 million.  Waterloo set a new third quarter Adjusted EBITDA record while Marquette generated the highest third quarter Adjusted EBITDA since fiscal 2007.  Bettendorf's Adjusted EBITDA increased 18.3% despite continued competition from VLTs in Illinois. 

Lake Charles – Net revenues increased $0.9 million, or 3.0%, to $30.8 million, and Adjusted EBITDA increased $0.7 million, or 18.0%, to $4.4 million. The property benefited from a strong November, which drove results for the quarter.  A new competitor opened in the market on December 8, 2014.  Following the opening of the new property in Lake Charles and through the end of the third quarter, net revenues were relatively flat, while Adjusted EBITDA declined in the mid-single digits as we incurred additional overtime costs due to better-than-expected business volumes and higher marketing costs.

Mississippi –Net revenues increased $1.7 million, or 7.5%, to $24.6 million at our Mississippi properties.  Adjusted EBITDA increased $2.0 million, or 97.3%, to $4.1 million.  All three properties in Mississippi generated better Adjusted EBITDA results year over year.  Lula continued its strong year-over-year performance with net revenue growth of $1.4 million, or 12.3%, and an Adjusted EBITDA increase of $1.5 million, or 97.6%, as it continues to benefit from refined marketing programs.

Missouri – Net revenues increased $4.6 million, or 8.7%, to $57.6 million and Adjusted EBITDA increased $2.4 million, or 18.5%, to $15.2 million.  All four of our Missouri properties generated increased net revenues and Adjusted EBITDA during the quarter led by Adjusted EBITDA growth of 76.8% in Caruthersville and 49.3% at Cape Girardeau.  Boonville set a new third quarter Adjusted EBITDA record with an increase of 5.3%, and Kansas City's Adjusted EBITDA increased 9.8%. 

Pennsylvania –Net revenues increased $2.0 million, or 32.2%, to $8.0 million at our property at the Nemacolin Woodlands Resort.  Adjusted EBITDA increased $1.0 million, or 61.3%, to $(0.6) million.

Corporate Expenses

Corporate and development expenses were $5.9 million for the quarter, a decrease of $1.4 million compared to the prior year due to our corporate realignment completed earlier in fiscal 2015 and continued focus on managing expenses.

Non-cash stock compensation expense was $0.6 million for the quarter compared to $0.8 million in the third quarter of fiscal 2014.

Capital Structure, Capital Expenditures and Updated Guidance

As of January 25, 2015, the Company had:

  • $67.1 million in cash and cash equivalents, excluding $9.2 million in restricted cash and investments;
  • $1.0 billion in total debt; and
  • $273 million in net line of credit availability.

Third quarter capital expenditures were $11.3 million, bringing total capital expenditures to $30.0 million for the first nine months of fiscal 2015.  The Company expects to incur approximately $15 million to $18 million in capital expenditures in the fourth quarter of fiscal 2015.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Wednesday, February 25, 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 412-902-4263.  The conference call will be recorded and available for review starting at 11:59 pm central on Wednesday, February 25, 2015, until 11:59 pm central on Wednesday, March 11, 2015, by dialing 877-344-7529; International: 412-317-0088 and access number 10061134.

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

ISLE OF CAPRI CASINOS, INC. 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)







Three Months Ended


Nine Months Ended



January 25,


January 26,


January 25,


January 26,



2015


2014


2015


2014


Revenues:









Casino

$      256,842


$      235,843


$      767,359


$      733,185


Rooms

6,991


6,933


23,777


24,560


Food, beverage, pari-mutuel and other

34,281


32,404


102,839


99,123


Gross revenues

298,114


275,180


893,975


856,868


Less promotional allowances

(57,050)


(50,990)


(172,345)


(163,044)


Net revenues

241,064


224,190


721,630


693,824


Operating expenses:









Casino

40,344


38,354


120,747


118,414


Gaming taxes

66,182


60,324


195,052


185,454


Rooms

1,371


1,448


5,123


5,221


Food, beverage, pari-mutuel and other

11,121


10,608


33,167


31,724


Marine and facilities

14,111


13,967


43,318


42,969


Marketing and administrative

55,485


56,120


175,704


175,010


Corporate and development

5,880


7,230


21,763


21,314


Litigation accrual reversals

-


(1,979)


-


(9,330)


Preopening expense

-


-


-


3,898


Depreciation and amortization

19,528


20,171


58,781


60,495


Total operating expenses

214,022


206,243


653,655


635,169


Operating income

27,042


17,947


67,975


58,655











Interest expense

(20,927)


(21,910)


(63,370)


(59,758)


Interest income

94


84


273


260


Derivative income

-


-


-


398


Loss from continuing operations before 









income taxes

6,209


(3,879)


4,878


(445)


Income tax (provision) benefit

(786)


13,270


(2,793)


10,499


Income from continuing operations 

5,423


9,391


2,085


10,054


Income from discontinued operations, net of income taxes

-


1,266


-


3,778


Net income 

$          5,423


$        10,657


$          2,085


$        13,832











Income per common share-basic:









Income from continuing operations

$            0.14


$            0.24


$            0.05


$            0.25


Income from discontinued operations, 









net of income taxes 

-


0.03


-


0.10


Net income 

$            0.14


$            0.27


$            0.05


$            0.35











Income per common share-dilutive:









Income from continuing operations

$            0.13


$            0.24


$            0.05


$            0.25


Income from discontinued operations, 









net of income taxes 

-


0.03


-


0.10


Net income 

$            0.13


$            0.27


$            0.05


$            0.35











Weighted average basic shares

40,028,776


39,828,740


39,929,845


39,699,295


Weighted average diluted shares

40,336,663


39,911,715


40,062,008


39,758,965


 

ISLE OF CAPRI CASINOS, INC. 

CONSOLIDATED BALANCE SHEETS 

(In thousands, except share and per share amounts) 


January 25,


April 27,


2015


2014

ASSETS

(unaudited)



Current assets:




Cash and cash equivalents

$           67,140


$          69,830

Marketable securities

27,999


27,289

Accounts receivable, net

11,824


12,615

Income taxes receivable

184


73

Deferred income taxes

3,898


4,106

Prepaid expenses and other assets

21,770


18,526

Total current assets

132,815


132,439

Property and equipment, net

927,692


955,604

Other assets:




Goodwill

108,970


108,970

Other intangible assets, net

54,282


54,911

Deferred financing costs, net

20,080


23,439

Restricted cash and investments

9,173


9,807

Prepaid deposits and other

4,816


4,904

Total assets

$      1,257,828


$     1,290,074

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Current maturities of long-term debt

$                200


$               230

Accounts payable 

21,126


20,869

Accrued liabilities:




Payroll and related

36,051


34,700

Property and other taxes

20,107


20,360

Interest

19,631


16,920

Progressive jackpots and slot club awards

16,181


16,306

Other

20,036


18,478

Total current liabilities

133,332


127,863

Long-term debt, less current maturities

1,020,722


1,066,071

Deferred income taxes

38,413


35,870

Other accrued liabilities

18,661


18,495

Other long-term liabilities

22,489


22,391

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:




42,066,148at January 25, 2015 and April 27, 2014

421


421

Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued

-



Additional paid-in capital

248,169


247,819

Retained earnings (deficit)

(199,828)


(201,913)


48,762


46,327

Treasury stock, 2,038,348 shares at January 25, 2015 and 2,236,971 shares 




at April 27, 2014

(24,551)


(26,943)

Total stockholders' equity

24,211


19,384

Total liabilities and stockholders' equity

$      1,257,828


$     1,290,074

 

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)












Three Months Ended


Nine Months Ended



January 25,


January 26,


January 25,


January 26,



2015


2014


2015


2014

Colorado









Black Hawk

$      29,523


$      28,364


$        93,942


$        91,071










Florida









Pompano

46,485


42,360


120,942


116,146










Iowa









Bettendorf

16,754


16,008


54,561


54,438


Marquette

5,689


5,063


19,126


19,086


Waterloo

21,452


20,289


64,353


62,271


Iowa Total

43,895


41,360


138,040


135,795










Louisiana









Lake Charles

30,836


29,945


94,447


94,855










Mississippi









Lula

13,024


11,602


38,034


35,704


Natchez

4,659


4,664


13,871


14,786


Vicksburg

6,931


6,632


21,176


21,446


Mississippi Total

24,614


22,898


73,081


71,936










Missouri









Boonville

18,228


17,448


56,493


55,068


Cape Girardeau

14,267


12,959


43,436


39,817


Caruthersville

7,604


6,762


22,670


21,648


Kansas City

17,536


15,837


52,760


50,844


Missouri Total

57,635


53,006


175,359


167,377










Pennsylvania









Nemacolin

8,038


6,080


25,728


16,102










Property Net Revenues before Other

241,026


224,013


721,539


693,282

Other

38


177


91


542

Net Revenues from Continuing Operations

$    241,064


$    224,190


$      721,630


$      693,824

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)














Three Months Ended January 25, 2015



Operating Income
(Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Preopening
and Other


Adjusted
EBITDA

Black Hawk, Colorado

$             4,660


$               2,257


$                          7


$                   -


$         6,924












Pompano, Florida

8,786


1,793


7


-


10,586












Bettendorf

2,573


1,451


7


-


4,031

Marquette

685


365


3


-


1,053

Waterloo

5,544


1,236


5


-


6,785


Iowa Total

8,802


3,052


15


-


11,869












Lake Charles, Louisiana

1,696


2,740


5


-


4,441












Lula

1,748


1,276


5


-


3,029

Natchez

(504)


281


5


-


(218)

Vicksburg

364


901


4


-


1,269


Mississippi Total

1,608


2,458


14


-


4,080












Boonville

5,588


971


2


-


6,561

Cape Girardeau

94


2,827


4


-


2,925

Caruthersville

1,036


595


3


-


1,634

Kansas City

3,126


961


8


-


4,095


Missouri Total

9,844


5,354


17


-


15,215












Nemacolin, Pennsylvania

(2,005)


1,366


3




(636)












Total Operating Properties

33,391


19,020


68


-


52,479

Corporate and Other

(6,349)


508


597




(5,244)

Total

$           27,042


$             19,528


$                      665


$                   -


$       47,235














Three Months Ended January 26, 2014



Operating Income
(Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Preopening
and Other


Adjusted
EBITDA

Black Hawk, Colorado

$             4,515


$               2,366


$                          8


$                   -


$         6,889












Pompano, Florida

7,389


1,749


6


-


9,144












Bettendorf

1,850


1,555


3


-


3,408

Marquette

272


458


1


-


731

Waterloo

4,849


1,186


4


-


6,039


Iowa Total

6,971


3,199


8


-


10,178












Lake Charles, Louisiana

822


2,939


4


-


3,765












Lula

232


1,298


3


-


1,533

Natchez

(665)


314


4


-


(347)

Vicksburg

(21)


899


4


-


882


Mississippi Total

(454)


2,511


11


-


2,068












Boonville

5,193


1,034


6


-


6,233

Cape Girardeau

(828)


2,786


1


-


1,959

Caruthersville

200


720


4


-


924

Kansas City

2,800


924


4


-


3,728


Missouri Total

7,365


5,464


15


-


12,844












Nemacolin, Pennsylvania

(3,202)


1,558


1


-


(1,643)












Total Operating Properties

23,406


19,786


53


-


43,245

Corporate and Other

(5,459)


385


838


(1,979)


(6,215)

Total

$           17,947


$             20,171


$                      891


$            (1,979)


$       37,030

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)














Nine Months Ended January 25, 2015



Operating Income
(Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Preopening
and Other


Adjusted
EBITDA

Black Hawk, Colorado

$          12,799


$                 6,907


$                      22


$          4,057


$        23,785












Pompano, Florida

18,114


5,267


20


-


23,401












Bettendorf

10,113


4,339


17


-


14,469

Marquette

2,844


1,223


8


-


4,075

Waterloo

17,485


3,711


14


(1,225)


19,985


Iowa Total

30,442


9,273


39


(1,225)


38,529












Lake Charles, Louisiana

5,746


8,315


15


-


14,076












Lula

3,347


3,839


12


-


7,198

Natchez

(2,045)


786


13


-


(1,246)

Vicksburg

594


2,686


12


-


3,292


Mississippi Total

1,896


7,311


37


-


9,244












Boonville

17,024


2,946


10


-


19,980

Cape Girardeau

(843)


8,429


9


-


7,595

Caruthersville

2,542


1,892


10


-


4,444

Kansas City

8,935


2,870


19


-


11,824


Missouri Total

27,658


16,137


48


-


43,843












Nemacolin, Pennsylvania

(5,522)


4,085


7


-


(1,430)












Total Operating Properties

91,133


57,295


188


2,832


151,448

Corporate and Other

(23,158)


1,486


2,554


2,259


(16,859)

Total

$          67,975


$               58,781


$                 2,742


$          5,091


$      134,589














Nine Months Ended January 26, 2014



Operating Income
(Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Preopening
and Other


Adjusted
EBITDA

Black Hawk, Colorado

$          15,131


$                 7,041


$                      27


$               -


$        22,199












Pompano, Florida

15,283


5,383


19


-


20,685












Bettendorf

8,339


4,933


10


-


13,282

Marquette

2,734


1,423


5


-


4,162

Waterloo

14,707


3,608


14


-


18,329


Iowa Total

25,780


9,964


29


-


35,773












Lake Charles, Louisiana

5,016


8,819


13


-


13,848












Lula

408


3,946


11


-


4,365

Natchez

(2,000)


1,007


13


-


(980)

Vicksburg

249


2,795


13


-


3,057


Mississippi Total

(1,343)


7,748


37


-


6,442












Boonville

16,180


3,097


18


-


19,295

Cape Girardeau

(2,738)


8,361


5


-


5,628

Caruthersville

982


2,267


14


-


3,263

Kansas City

8,200


2,861


12


-


11,073


Missouri Total

22,624


16,586


49


-


39,259












Nemacolin, Pennsylvania

(11,226)


3,785


2


3,898


(3,541)












Total Operating Properties

71,265


59,326


176


3,898


134,665

Corporate and Other

(12,610)


1,169


3,343


(10,349)


(18,447)

Total

$          58,655


$               60,495


$                 3,519


$        (6,451)


$      116,218

 

Isle of Capri Casinos, Inc.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(unaudited, in thousands)














Three Months Ended


Nine Months Ended




January 25,


January 26,


January 25,


January 26,




2015


2014


2015


2014

Income from continuing operations


$         5,423


$         9,391


$         2,085


$       10,054


Income tax provision (benefit)


786


(13,270)


2,793


(10,499)


Derivative income


-


-


-


(398)


Interest income


(94)


(84)


(273)


(260)


Interest expense


20,927


21,910


63,370


59,758


Depreciation and amortization


19,528


20,171


58,781


60,495


Stock-based compensation


665


891


2,742


3,519


Severance charges


-


-


2,259


-


Colorado referendum costs


-


-


4,057


-


Property tax settlement


-


-


(1,225)


-


Litigation accrual reversal


-


(1,979)


-


(9,330)


Preopening expense


-


-


-


3,898


Gain on sale of airplane


-


-




(1,019)

Adjusted EBITDA (1)


$       47,235


$       37,030


$     134,589


$     116,218

 


Isle of Capri Casinos, Inc.

Reconciliation of GAAP Income From Continuing Operations to Adjusted Income (Loss) and
GAAP Income From Continuing Operations Per Share to Adjusted Income (Loss) Per Share

(unaudited, in thousands)










Three Months Ended


Nine Months Ended


January 25,


January 26,


January 25,


January 26,


2015


2014


2015


2014









GAAP income from continuing operations

$        5,423


$        9,391


$        2,085


$      10,054

Colorado referendum expense (3)

-


-


4,057


-

Property tax settlement (3)

-


-


(1,225)


-

Severance expense (3)

-


-


2,259


-

Tax valuation allowance reversal

-


(11,993)


-


(11,993)

Litigation accrual reversals (4)

-


(2,223)


-


(16,953)

Preopening expense

-


-


-


3,898

Gain on sale of corporate aircraft

-


-


-


(1,019)

Adjusted income (loss) (2)

$        5,423


$      (4,825)


$        7,176


$    (16,013)

















GAAP income from continuing operations per share

$          0.13


$          0.24


$          0.05


$          0.25

Colorado referendum expense (3)

-


-


0.10


-

Property tax settlement (3)

-


-


(0.03)


-

Severance expense (3)

-


-


0.06


-

Tax valuation allowance reversal

-


(0.30)


-


(0.30)

Litigation accrual reversals (4)

-


(0.06)


-


(0.43)

Preopening expense

-


-


-


0.10

Gain on sale of corporate aircraft

-


-


-


(0.03)

Adjusted income (loss) per share (2)

$          0.13


$        (0.12)


$          0.18


$        (0.41)

 

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, 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 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. 



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, certain asset sale gains and 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 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 nine months ended January 25, 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 nine months ended January 25, 2015.  The Company recorded $2.3 million of severance expense during the nine months ended January 25, 2015, related to restructuring at the corporate office.



4.

Litigation accrual reversals for the three months ended January 26, 2014 includes a $2.0 million reduction to operating expenses and a $0.2 million reduction of interest expense.  Litigation accrual reversals for the nine months ended January 26, 2014, includes a $9.3 million reduction to operating expenses and a $7.6 million reduction of interest expense.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2015-third-quarter-results-300040788.html

SOURCE Isle of Capri Casinos, Inc.

Copyright 2015 PR Newswire

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