SAINT LOUIS, Feb. 23, 2017 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the third quarter ended January 22, 2017 and other Company-related
news.
Fiscal 2017 Third Quarter Highlights
- Diluted net income per share from continuing operations
increased to $0.15 per share from
$0.13 in the prior year quarter.
- Adjusted EBITDA increased 5.5% year over year, led by strong
results at our Black Hawk and
Iowa properties.
- Adjusted EBITDA margin improved 147 bps over the prior year
quarter, to 22.4%, as a result of a strong focus on operational
efficiency.
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
22,
|
|
January
24,
|
|
January
22,
|
|
January
24,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
revenues
|
$
193.8
|
|
$
196.5
|
|
$
598.0
|
|
$
605.2
|
Consolidated Adjusted
EBITDA (1)
|
43.5
|
|
41.2
|
|
131.6
|
|
129.3
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
6.1
|
|
5.4
|
|
37.1
|
|
16.7
|
Income from
discontinued operations
|
2.1
|
|
1.2
|
|
5.1
|
|
4.5
|
Net income
|
8.2
|
|
6.6
|
|
42.2
|
|
21.2
|
|
|
|
|
|
|
|
|
Diluted income per
share from continuing operations
|
0.15
|
|
0.13
|
|
0.89
|
|
0.40
|
Diluted income per
share from discontinued operations
|
0.05
|
|
0.03
|
|
0.12
|
|
0.11
|
Diluted net income
per share
|
0.20
|
|
0.16
|
|
1.01
|
|
0.51
|
Adjusted diluted
income per share (2)
|
0.17
|
|
0.13
|
|
0.51
|
|
0.47
|
|
|
(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."
|
Eric Hausler, the Company's chief
executive officer, commented:
"We remain focused on driving increased profitability from our
existing operations and effectively managing our corporate
costs. The combination of a 2.9% increase in Property
Adjusted EBITDA and a 16.9% decrease in net corporate expense
(excluding stock compensation expense) drove a 5.5% increase in
Adjusted EBITDA during the third quarter compared to the prior
year. Our fiscal third quarter Adjusted EBITDA margin of
22.4% represents a third quarter record for the
Company.
"Higher year-over-year Property Adjusted EBITDA was led by
strong results from our Iowa
properties, where Adjusted EBITDA increased 6.2%, as well as a
13.0% increase in Adjusted EBITDA at Black Hawk. Our Isle
property in Black Hawk benefited
from the opening of its new buffet and both Black Hawk properties benefited from the
marketing optimization programs we implemented earlier this fiscal
year. Our properties in Cape
Girardeau, Caruthersville
and Vicksburg also set third
quarter Adjusted EBITDA records.
"The third quarter was the second full operating quarter for our
new land-based casino and entertainment facility in Bettendorf where Adjusted EBITDA increased
9.4% compared to the prior year quarter. We continue to lead
the Quad Cities market in total gaming revenues, which we have done
in every month since the land-based facility opened. We are
pleased with the initial returns on our investment and expect the
property to continue to ramp up as we optimize our expense
structure.
"We continued to invest in our properties and improve our
balance sheet during the third quarter. We completed the
previously announced buffet renovations at Kansas City and Isle Black Hawk. At the
same time, we reduced our revolver balance by approximately
$7 million in the
quarter.
"On September 19, 2016, we
announced that we have signed a definitive agreement to sell all of
the outstanding shares of stock of the Company to Eldorado Resorts,
Inc. (NASDAQ: ERI) for approximately $950
million in cash and stock. On January 25, 2017, our shareholders overwhelmingly
voted to approve the transaction. We believe this
transaction, which will create a regional gaming company with
significant scale, geographic diversity and free cash flow,
provides our shareholders with both immediate value and the benefit
from the potential upside expected from the significant operating
synergies between these two companies. We are working closely
with the Eldorado team to plan a
smooth transition, and continue to expect the transaction to close
in the second quarter of calendar 2017, subject to regulatory
approvals.
"We continue to make progress on our previously announced
divestitures: the $134.5 million sale
of Lake Charles to an affiliate of Laguna Development Corporation
and the $40.0 million sale of
Marquette to an affiliate of
Casino Queen, Inc. We expect the Marquette transaction to close in the first
calendar quarter of 2017 and the Lake Charles transaction to close
in the second calendar quarter of 2017, in each case, subject to
regulatory approvals."
Financial Highlights
The third quarter results reflect both Lake Charles and
Marquette in discontinued
operations and as assets held for sale for all periods
presented.
Net revenues for the current quarter were $193.8 million, compared to $196.5 million in the prior year quarter, down
1.4%.
Consolidated Adjusted EBITDA was $43.5
million for the quarter compared to $41.2 million in the prior year quarter, up
5.5%. Consolidated Adjusted EBITDA margins increased to 22.4%
from 20.9%. Operating income increased to $24.2 million from $23.1
million in the prior year quarter, as property operating
expenses decreased by $4.2 million,
or 2.8%, compared to the prior year third quarter.
Interest expense was $16.7 million
compared to $16.8 million in the
prior year quarter, as a result of our lower overall debt
balance.
On a GAAP basis, diluted income per share from continuing
operations was $0.15 compared to
diluted income per share from continuing operations of $0.13 in the prior year's quarter. Adjusted
diluted net income per share was $0.17 during the current quarter compared to
$0.13 in the prior year's
quarter.
Operating Results
(All comparisons are to the prior year quarter)
Black Hawk – Net
revenues decreased $0.2 million, or
0.6%, to $29.0 million and Adjusted
EBITDA increased $0.9 million, or
13.0%, to $7.6 million, at our two
casinos in Black Hawk. The Isle
property benefited from the opening of its new buffet in December,
while we also made several operational and marketing changes to
enhance profitability.
Pompano – Net revenues decreased $1.2 million, or 2.8%, to $42.9 million, and Adjusted EBITDA decreased
2.7%, to $9.4 million at Pompano
Park. The property continues to experience a heightened
competitive environment which impacted revenues during the
quarter. However, adjustments to marketing and operational
costs resulted in Adjusted EBITDA margins holding flat at
21.9%.
Iowa – Net revenues for
our Iowa properties increased
$0.3 million, or 0.7%, compared to
prior year, and Adjusted EBITDA increased $0.7 million, to $11.3
million.
The third quarter was the second full quarter of operations at
our new land-based facility in Bettendorf. Net revenues
increased $1.3 million and Adjusted
EBITDA increased $0.4 million, or
9.4%, for the quarter year over year. Adjusted EBITDA margins
improved 40 bps to 24.7%, from a combination of higher revenues and
the new more efficient facility. We will continue to refine
the marketing and operations in the coming quarters to optimize our
ramp up of the new facility.
Waterloo posted its highest third quarter Adjusted EBITDA since
opening in June 2007 as a result of a
more efficient cost structure. Adjusted EBITDA margins at the
property improved 287 basis points and Adjusted EBITDA increased
$0.3 million, or 4.3%, to
$6.8 million.
Mississippi – Net
revenues for Lula and Vicksburg decreased 6.0%, to $18.0 million while Adjusted EBITDA increased
$0.2 million, to $4.2 million, or 6.0%.
Vicksburg's net revenues
decreased $0.3 million, or 4.1%, and
Adjusted EBITDA increased $0.1
million, or 7.8%, to $1.9
million. The property has continued to benefit from
the management team's strong focus on operational efficiency as
Adjusted EBITDA margin improved to 27.2%, up approximately 300
bps.
The Lula market continues to be
negatively impacted by increased competition in the Arkansas market. Net revenues at our
Lula property decreased
$0.8 million, to $10.8 million and Adjusted EBITDA increased
$0.1 million, or 4.5%. The
property continues to optimize its cost structure in response to
the competitive environment which resulted in a 234-bp increase in
Adjusted EBITDA margin to 20.8% .
Missouri – Net revenues
for our Missouri properties
decreased $0.4 million, to
$57.8 million and Adjusted EBITDA
increased $0.1 million, to
$16.2 million.
Cape Girardeau's net revenues
increased $0.5 million, or 3.1%, and
Adjusted EBITDA increased $0.2
million, to $3.7 million or
5.9%. The property's Adjusted EBITDA margin improved 65
bps. The property continues to benefit from a solid ramp up
in revenues.
Boonville continues to post the
Company's highest Adjusted EBITDA margin, at 36.1% for the
quarter. During the third quarter of fiscal 2017, net
revenues decreased 4.3%, to $17.6
million and Adjusted EBITDA decreased 4.0%, to $6.4 million. The property's results this
quarter were affected by two weekend ice storms.
In Kansas City net revenues
decreased 0.9%, to $17.1 million and
Adjusted EBITDA decreased 2.2%, to $3.9
million. The property benefited from the opening of
its new buffet during the quarter, but was also affected by the two
ice storms that moved through Missouri during the quarter.
In Caruthersville, net revenues
increased 1.3%, to $8.1 million while
Adjusted EBITDA improved by 9.5%, to $2.2
million, and Adjusted EBITDA margins improved 203 bps
primarily due to continued strategic marketing spending and capital
investments we have made to the property.
Pennsylvania – At
Nemacolin, net revenues decreased 2.0%, to $7.6 million while Adjusted EBITDA decreased
$0.2 million to a loss of
$(0.7) million. The property
was impacted by an increase in table games tax rates during the
quarter, as well as an increase in state administrative fees.
Corporate Expenses
Corporate and development expenses were $5.9 million for the quarter compared to
$6.1 million in the third quarter of
fiscal 2016, as a result of lower payroll and other operational
expenses.
Non-cash stock compensation expense for the current quarter was
$1.2 million, compared to
$0.8 million in the prior year
quarter, up 64.0%. The prior included a favorable forfeiture
adjustment of stock compensation expense of $0.5 million.
Capital Structure and Capital Expenditures
As of January 22, 2017, the
Company had:
- $54.0 million in cash and cash
equivalents, excluding $32.5 million
in restricted cash and investments;
- $881.2 million in total debt;
and
- $256.1 million in net line of
credit availability, the outstanding balance on the revolving
credit facility was $35.6 million at
quarter end, while leverage for bank purposes was 4.2x.
Third quarter capital expenditures were $12.5 million, excluding spending related to the
land-based project in Bettendorf. We spent $1.3 million in the third quarter of fiscal 2017
on the land-based project at Bettendorf. For the project
through the end of the third quarter, we have expended
approximately $53 million. We
completed the project well below the previously announced budget of
up to $60 million.
Conference Call Information
Isle of Capri Casinos, Inc. will not be hosting a conference
call this quarter.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming
and entertainment company dedicated to providing guests with an
exceptional experience at each of the 14 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 Isle's financial condition, results of operations and
expansion projects, is included in Isle's filings with the SEC,
including, but not limited to, its Form 10-K for the most recently
ended fiscal year, of which certain sections were recast in a Form
8-K filed on December 21, 2016.
CONTACT:
Isle of Capri Casinos, Inc.,
Jill Alexander, Senior Director
of Corporate Communication-314.813.9368, www.islecorp.com
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
22,
|
|
January
24,
|
|
January
22,
|
|
January
24,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$
202,203
|
|
$
205,707
|
|
$
629,623
|
|
$
633,746
|
|
Rooms
|
|
4,495
|
|
4,476
|
|
16,109
|
|
15,711
|
|
Food, beverage,
pari-mutuel and other
|
|
26,297
|
|
27,098
|
|
78,781
|
|
80,906
|
|
Gross
revenues
|
|
232,995
|
|
237,281
|
|
724,513
|
|
730,363
|
|
Less promotional
allowances
|
|
(39,178)
|
|
(40,757)
|
|
(126,488)
|
|
(125,157)
|
|
Net
revenues
|
|
193,817
|
|
196,524
|
|
598,025
|
|
605,206
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
29,258
|
|
30,644
|
|
90,026
|
|
92,722
|
|
Gaming
taxes
|
|
51,610
|
|
52,295
|
|
160,047
|
|
161,289
|
|
Rooms
|
|
1,200
|
|
1,155
|
|
4,080
|
|
4,093
|
|
Food, beverage,
pari-mutuel and other
|
|
9,936
|
|
10,783
|
|
28,715
|
|
31,371
|
|
Marine and
facilities
|
|
9,977
|
|
10,260
|
|
31,116
|
|
32,436
|
|
Marketing and
administrative
|
|
43,741
|
|
44,810
|
|
134,287
|
|
136,970
|
|
Corporate and
development
|
|
5,859
|
|
6,141
|
|
21,337
|
|
20,770
|
|
Preopening
expenses
|
|
-
|
|
-
|
|
597
|
|
-
|
|
Transaction
expenses
|
|
733
|
|
-
|
|
4,146
|
|
-
|
|
Depreciation and
amortization
|
|
17,281
|
|
17,318
|
|
51,940
|
|
52,151
|
|
Total operating
expenses
|
|
169,595
|
|
173,406
|
|
526,291
|
|
531,802
|
|
Operating
income
|
|
24,222
|
|
23,118
|
|
71,734
|
|
73,404
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(16,650)
|
|
(16,836)
|
|
(50,040)
|
|
(51,281)
|
|
Interest
income
|
|
75
|
|
75
|
|
230
|
|
233
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
(2,966)
|
|
Income from
continuing operations before income taxes
|
|
7,647
|
|
6,357
|
|
21,924
|
|
19,390
|
|
Income tax benefit
(provision)
|
|
(1,592)
|
|
(904)
|
|
15,140
|
|
(2,647)
|
|
Income from
continuing operations
|
|
6,055
|
|
5,453
|
|
37,064
|
|
16,743
|
|
Income from
discontinued operations, net of
income taxes
|
|
2,110
|
|
1,162
|
|
5,125
|
|
4,466
|
|
Net
income
|
|
$
8,165
|
|
$
6,615
|
|
$
42,189
|
|
$
21,209
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share-basic:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
0.15
|
|
$
0.13
|
|
$
0.90
|
|
$
0.41
|
|
Income from
discontinued operations, net
of income taxes
|
|
0.05
|
|
0.03
|
|
0.12
|
|
0.11
|
|
Net
income
|
|
$
0.20
|
|
$
0.16
|
|
$
1.02
|
|
$
0.52
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share-dilutive:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
0.15
|
|
$
0.13
|
|
$
0.89
|
|
$
0.40
|
|
Income from
discontinued operations, net
of income taxes
|
|
0.05
|
|
0.03
|
|
0.12
|
|
0.11
|
|
Net
income
|
|
$
0.20
|
|
$
0.16
|
|
$
1.01
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
|
41,357,381
|
|
40,730,065
|
|
41,310,668
|
|
40,669,556
|
|
Weighted average
diluted shares
|
|
41,804,445
|
|
41,444,564
|
|
41,601,651
|
|
41,417,021
|
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share amounts)
|
(Unaudited)
|
|
January
22,
|
|
April
24,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
54,040
|
|
$
62,126
|
Restricted
cash
|
22,650
|
|
461
|
Marketable
securities
|
17,479
|
|
19,338
|
Accounts receivable,
net
|
9,937
|
|
12,484
|
Inventory
|
5,641
|
|
5,580
|
Prepaid expenses and
other assets
|
14,471
|
|
10,545
|
Assets held for
sale
|
139,335
|
|
2,361
|
Total current
assets
|
263,553
|
|
112,895
|
Property and
equipment, net
|
810,083
|
|
810,450
|
Other
assets:
|
|
|
|
Goodwill
|
79,776
|
|
79,776
|
Other intangible
assets, net
|
31,609
|
|
32,237
|
Deferred financing
costs, net
|
2,374
|
|
3,777
|
Restricted cash and
investments
|
9,827
|
|
9,819
|
Prepaid deposits and
other
|
4,672
|
|
4,996
|
Deferred income
taxes
|
536
|
|
1,144
|
Long-term assets held
for sale
|
-
|
|
139,130
|
Total
assets
|
$
1,202,430
|
|
$
1,194,224
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
85
|
|
$
80
|
Accounts
payable
|
21,748
|
|
27,432
|
Accrued
liabilities:
|
|
|
|
Payroll and
related
|
29,698
|
|
34,743
|
Property and other
taxes
|
18,501
|
|
18,814
|
Income taxes
payable
|
71
|
|
123
|
Interest
|
13,976
|
|
14,678
|
Progressive jackpots
and slot club awards
|
14,306
|
|
13,705
|
Deferred proceeds for
assets held for sale
|
22,000
|
|
-
|
Other
|
20,472
|
|
20,646
|
Liabilities related
to assets held for sale
|
6,716
|
|
7,326
|
Total current
liabilities
|
147,573
|
|
137,547
|
Long-term debt, less
current maturities and net deferred financing costs
|
881,161
|
|
911,688
|
Deferred income
taxes
|
24,301
|
|
37,902
|
Other accrued
liabilities
|
17,432
|
|
17,557
|
Other long-term
liabilities
|
13,912
|
|
13,912
|
Stockholders'
equity:
|
|
|
|
Preferred stock, $.01
par value; 2,000,000 shares authorized; none issued
|
-
|
|
-
|
Common stock, $.01
par value; 60,000,000 shares authorized; shares issued:
42,066,148 at January 22, 2017 and
at April 24, 2016
|
421
|
|
421
|
Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued
|
-
|
|
-
|
Additional paid-in
capital
|
240,815
|
|
244,472
|
Retained earnings
(deficit)
|
(113,509)
|
|
(152,868)
|
|
127,727
|
-
|
92,025
|
Treasury stock,
706,729 shares at January 22, 2017 and 1,300,955
shares at April 24,
2016
|
(9,676)
|
|
(16,407)
|
Total
stockholders' equity
|
118,051
|
-
|
75,618
|
Total
liabilities and stockholders' equity
|
$
1,202,430
|
|
$
1,194,224
|
Isle of Capri
Casinos, Inc.
|
Supplemental Data
- Net Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
January
22,
|
|
January
24,
|
|
January
22,
|
|
January
24,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Colorado
|
|
|
|
|
|
|
|
|
|
Black Hawk
|
|
$
28,953
|
|
$
29,138
|
|
$
93,029
|
|
$
97,142
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
Pompano
|
|
42,878
|
|
44,108
|
|
120,939
|
|
124,532
|
|
|
|
|
|
|
|
|
|
|
Iowa
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
18,079
|
|
16,812
|
|
58,248
|
|
53,282
|
|
Waterloo
|
|
20,328
|
|
21,313
|
|
63,115
|
|
64,914
|
|
Iowa Total
|
|
38,407
|
|
38,125
|
|
121,363
|
|
118,196
|
|
|
|
|
|
|
|
|
|
|
Mississippi
|
|
|
|
|
|
|
|
|
|
Lula
|
|
10,839
|
|
11,688
|
|
33,835
|
|
36,802
|
|
Vicksburg
|
|
7,142
|
|
7,448
|
|
22,862
|
|
21,948
|
|
Mississippi
Total
|
|
17,981
|
|
19,136
|
|
56,697
|
|
58,750
|
|
|
|
|
|
|
|
|
|
|
Missouri
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
17,638
|
|
18,438
|
|
56,695
|
|
57,641
|
|
Cape
Girardeau
|
|
15,066
|
|
14,614
|
|
45,872
|
|
44,123
|
|
Caruthersville
|
|
8,053
|
|
7,952
|
|
25,111
|
|
24,568
|
|
Kansas
City
|
|
17,056
|
|
17,204
|
|
51,716
|
|
52,968
|
|
Missouri
Total
|
|
57,813
|
|
58,208
|
|
179,394
|
|
179,300
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
|
|
|
|
|
|
|
|
|
|
Nemacolin
|
|
7,629
|
|
7,788
|
|
26,386
|
|
27,229
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
|
193,661
|
|
196,503
|
|
597,808
|
|
605,149
|
Other
|
|
156
|
|
21
|
|
217
|
|
57
|
Net Revenues from
Continuing Operations
|
|
$
193,817
|
|
$
196,524
|
|
$
598,025
|
|
$
605,206
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 22, 2017
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
5,296
|
|
$
2,317
|
|
$
5
|
|
$
-
|
|
$
7,618
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
7,583
|
|
1,789
|
|
5
|
|
-
|
|
9,377
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
1,290
|
|
3,175
|
|
8
|
|
-
|
|
4,473
|
Waterloo,
Iowa
|
|
5,606
|
|
1,214
|
|
7
|
|
-
|
|
6,827
|
Iowa
Total
|
|
6,896
|
|
4,389
|
|
15
|
|
-
|
|
11,300
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
729
|
|
1,519
|
|
7
|
|
-
|
|
2,255
|
Vicksburg,
Mississippi
|
|
1,051
|
|
886
|
|
7
|
|
-
|
|
1,944
|
Mississippi
Total
|
|
1,780
|
|
2,405
|
|
14
|
|
-
|
|
4,199
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
5,200
|
|
1,158
|
|
6
|
|
-
|
|
6,364
|
Cape Girardeau,
Missouri
|
|
1,068
|
|
2,605
|
|
8
|
|
-
|
|
3,681
|
Caruthersville,
Missouri
|
|
1,558
|
|
627
|
|
2
|
|
-
|
|
2,187
|
Kansas City,
Missouri
|
|
2,920
|
|
1,019
|
|
7
|
|
-
|
|
3,946
|
Missouri
Total
|
|
10,746
|
|
5,409
|
|
23
|
|
-
|
|
16,178
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(1,381)
|
|
709
|
|
-
|
|
-
|
|
(672)
|
Total Operating
Properties
|
|
30,920
|
|
17,018
|
|
62
|
|
-
|
|
48,000
|
Corporate and
Other
|
|
(6,698)
|
|
263
|
|
1,170
|
|
733
|
|
(4,532)
|
Total
|
|
$
24,222
|
|
$
17,281
|
|
$
1,232
|
|
$
733
|
|
$
43,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 24, 2016
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
4,540
|
|
$
2,188
|
|
$
14
|
|
$
-
|
|
$
6,742
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
7,837
|
|
1,785
|
|
14
|
|
-
|
|
9,636
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
1,181
|
|
2,902
|
|
7
|
|
-
|
|
4,090
|
Waterloo,
Iowa
|
|
5,223
|
|
1,317
|
|
6
|
|
-
|
|
6,546
|
Iowa Total
|
|
6,404
|
|
4,219
|
|
13
|
|
-
|
|
10,636
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
824
|
|
1,331
|
|
3
|
|
-
|
|
2,158
|
Vicksburg,
Mississippi
|
|
895
|
|
903
|
|
6
|
|
-
|
|
1,804
|
Mississippi
Total
|
|
1,719
|
|
2,234
|
|
9
|
|
-
|
|
3,962
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
5,347
|
|
1,269
|
|
13
|
|
-
|
|
6,629
|
Cape Girardeau,
Missouri
|
|
942
|
|
2,527
|
|
7
|
|
-
|
|
3,476
|
Caruthersville,
Missouri
|
|
1,378
|
|
614
|
|
6
|
|
-
|
|
1,998
|
Kansas City,
Missouri
|
|
3,069
|
|
961
|
|
6
|
|
-
|
|
4,036
|
Missouri
Total
|
|
10,736
|
|
5,371
|
|
32
|
|
-
|
|
16,139
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(1,551)
|
|
1,074
|
|
-
|
|
-
|
|
(477)
|
Total Operating
Properties
|
|
29,685
|
|
16,871
|
|
82
|
|
-
|
|
46,638
|
Corporate and
Other
|
|
(6,567)
|
|
447
|
|
669
|
|
-
|
|
(5,451)
|
Total
|
|
$
23,118
|
|
$
17,318
|
|
$
751
|
|
$
-
|
|
$
41,187
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
January 22, 2017
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Preopening
and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
18,391
|
|
$
6,809
|
|
$
21
|
|
$
-
|
|
$
25,221
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
18,477
|
|
5,403
|
|
21
|
|
-
|
|
23,901
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
6,796
|
|
9,055
|
|
24
|
|
(400)
|
|
15,475
|
Waterloo,
Iowa
|
|
17,113
|
|
3,673
|
|
22
|
|
-
|
|
20,808
|
Iowa Total
|
|
23,909
|
|
12,728
|
|
46
|
|
(400)
|
|
36,283
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
2,663
|
|
4,575
|
|
19
|
|
-
|
|
7,257
|
Vicksburg,
Mississippi
|
|
3,259
|
|
2,685
|
|
22
|
|
-
|
|
5,966
|
Mississippi
Total
|
|
5,922
|
|
7,260
|
|
41
|
|
-
|
|
13,223
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
17,290
|
|
3,615
|
|
21
|
|
-
|
|
20,926
|
Cape Girardeau,
Missouri
|
|
3,089
|
|
7,745
|
|
22
|
|
-
|
|
10,856
|
Caruthersville,
Missouri
|
|
4,736
|
|
1,930
|
|
8
|
|
-
|
|
6,674
|
Kansas City,
Missouri
|
|
9,313
|
|
3,215
|
|
22
|
|
-
|
|
12,550
|
Missouri Total
|
|
34,428
|
|
16,505
|
|
73
|
|
-
|
|
51,006
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(3,256)
|
|
2,364
|
|
-
|
|
-
|
|
(892)
|
Total Operating
Properties
|
|
97,871
|
|
51,069
|
|
202
|
|
(400)
|
|
148,742
|
Corporate and
Other
|
|
(26,137)
|
|
871
|
|
4,026
|
|
4,146
|
|
(17,094)
|
Total
|
|
$
71,734
|
|
$
51,940
|
|
$
4,228
|
|
$
3,746
|
|
$
131,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
January 24, 2016
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
20,776
|
|
$
6,589
|
|
$
42
|
|
$
-
|
|
$
27,407
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
18,392
|
|
6,242
|
|
42
|
|
-
|
|
24,676
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
5,479
|
|
7,857
|
|
24
|
|
-
|
|
13,360
|
Waterloo,
Iowa
|
|
15,964
|
|
3,930
|
|
20
|
|
-
|
|
19,914
|
Iowa Total
|
|
21,443
|
|
11,787
|
|
44
|
|
-
|
|
33,274
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
3,944
|
|
3,895
|
|
13
|
|
-
|
|
7,852
|
Vicksburg,
Mississippi
|
|
2,268
|
|
2,679
|
|
20
|
|
-
|
|
4,967
|
Mississippi
Total
|
|
6,212
|
|
6,574
|
|
33
|
|
-
|
|
12,819
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
17,755
|
|
3,356
|
|
38
|
|
-
|
|
21,149
|
Cape Girardeau,
Missouri
|
|
984
|
|
8,313
|
|
19
|
|
-
|
|
9,316
|
Caruthersville,
Missouri
|
|
4,346
|
|
1,840
|
|
17
|
|
-
|
|
6,203
|
Kansas City,
Missouri
|
|
9,261
|
|
2,906
|
|
21
|
|
-
|
|
12,188
|
Missouri Total
|
|
32,346
|
|
16,415
|
|
95
|
|
-
|
|
48,856
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(3,714)
|
|
3,206
|
|
30
|
|
-
|
|
(478)
|
Total Operating
Properties
|
|
95,455
|
|
50,813
|
|
286
|
|
-
|
|
146,554
|
Corporate and
Other
|
|
(22,051)
|
|
1,338
|
|
3,495
|
|
-
|
|
(17,218)
|
Total
|
|
$
73,404
|
|
$
52,151
|
|
$
3,781
|
|
$
-
|
|
$
129,336
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Income From Continuing Operations to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
January
22,
|
|
January
24,
|
|
January
22,
|
|
January
24,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Income from
continuing operations
|
|
$
6,055
|
|
$
5,453
|
|
$
37,064
|
|
$
16,743
|
|
Income tax provision
(benefit)
|
|
1,592
|
|
904
|
|
(15,140)
|
|
2,647
|
|
Interest
income
|
|
(75)
|
|
(75)
|
|
(230)
|
|
(233)
|
|
Interest
expense
|
|
16,650
|
|
16,836
|
|
50,040
|
|
51,281
|
|
Depreciation and
amortization
|
|
17,281
|
|
17,318
|
|
51,940
|
|
52,151
|
|
Stock-based
compensation
|
|
1,232
|
|
751
|
|
4,228
|
|
3,781
|
|
Transaction expense
(3)
|
|
733
|
|
-
|
|
4,146
|
|
-
|
|
Gain on sale of
Bettendorf vessel (4)
|
|
-
|
|
-
|
|
(997)
|
|
-
|
|
Preopening expense
(4)
|
|
-
|
|
-
|
|
597
|
|
-
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
2,966
|
Adjusted EBITDA
(1)
|
|
$
43,468
|
|
$
41,187
|
|
$
131,648
|
|
$
129,336
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
GAAP Income From Continuing Operations to Adjusted Income and
GAAP Income From Continuing Operations Per Share to Adjusted Income
Per Share
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
January
22,
|
|
January
24,
|
|
January
22,
|
|
January
24,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
GAAP income from
continuing operations
|
$
6,055
|
|
$
5,453
|
|
$
37,064
|
|
$
16,743
|
Transaction expenses
(3)
|
733
|
|
-
|
|
4,146
|
|
-
|
Tax valuation
allowance release
|
-
|
|
-
|
|
(19,552)
|
|
-
|
Gain on sale of
Bettendorf vessel (4)
|
-
|
|
-
|
|
(997)
|
|
-
|
Preopening expense
(4)
|
-
|
|
-
|
|
597
|
|
-
|
Loss on early
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
2,966
|
Adjusted income
(2)
|
$
6,788
|
|
$
5,453
|
|
$
21,258
|
|
$
19,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from
continuing operations per share
|
$
0.15
|
|
$
0.13
|
|
$
0.89
|
|
$
0.40
|
Transaction expenses
(3)
|
0.02
|
|
-
|
|
0.10
|
|
-
|
Tax valuation
allowance release
|
-
|
|
-
|
|
(0.47)
|
|
-
|
Gain on sale of
Bettendorf vessel (4)
|
-
|
|
-
|
|
(0.02)
|
|
-
|
Preopening expense
(4)
|
-
|
|
-
|
|
0.01
|
|
-
|
Loss on early
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
0.07
|
Adjusted income per
share (2)
|
$
0.17
|
|
$
0.13
|
|
$
0.51
|
|
$
0.47
|
1.
|
Adjusted EBITDA is
"earnings from continuing operations before interest and other
non-operating income (expense), income taxes, stock-based
compensation, preopening expenses and depreciation and
amortization." Adjusted EBITDA is presented solely as a
supplemental disclosure because management believes that it is 1) a
widely used measure of operating performance in the gaming industry
and 2) 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, preopening 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 loss on early extinguishment
of debt 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
the loss on early extinguishment of debt and preopening
expenses.
|
|
|
3.
|
On September 19,
2016, the Company entered into an agreement and plan of merger with
Eldorado Resorts, Inc., whereby Eldorado will acquire all of the
outstanding shares of the Company. During the three and nine
months ended January 22, 2017, the Company incurred $0.7 million
and $4.2 million, respectively, in transaction expenses associated
with this agreement.
|
|
|
4.
|
The Company had
preopening expenses of $0.6 million in the nine months ended
January 22, 2017 related to the Bettendorf land-based casino which
opened on June 24, 2016. During the nine months ended January
22, 2017, we sold the previous Bettendorf riverboat for a gain of
$1.0 million.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2017-third-quarter-results-300412194.html
SOURCE Isle of Capri Casinos, Inc.