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.