ST. LOUIS, Dec. 2, 2014 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the second quarter of fiscal year 2015 ended
October 26, 2014 and other
Company-related news.
Consolidated Financial Results
The following table outlines the Company's financial results
(dollars in millions, except per share data, unaudited):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
October
26,
|
|
October
27,
|
|
October
26,
|
|
October
27,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
revenues
|
$ 238.9
|
|
$ 231.6
|
|
$ 480.6
|
|
$ 469.6
|
Consolidated Adjusted
EBITDA (1)
|
43.6
|
|
37.3
|
|
87.4
|
|
79.2
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
(1.0)
|
|
6.3
|
|
(3.3)
|
|
0.7
|
Income from
discontinued operations
|
-
|
|
1.7
|
|
-
|
|
2.5
|
Net income
(loss)
|
(1.0)
|
|
8.0
|
|
(3.3)
|
|
3.2
|
Diluted income (loss)
per share from continuing operations
|
(0.03)
|
|
0.16
|
|
(0.08)
|
|
0.02
|
Diluted income per
share from discontinued operations
|
-
|
|
0.04
|
|
-
|
|
0.06
|
Diluted income (loss)
per share
|
(0.03)
|
|
0.20
|
|
(0.08)
|
|
0.08
|
Adjusted income
(loss) per share (2)
|
0.02
|
|
(0.21)
|
|
0.05
|
|
(0.28)
|
|
|
(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."
|
Virginia McDowell, the Company's
president and chief executive officer, commented,
"Approximately a year ago, we undertook a comprehensive review
of our business practices and implemented bold changes to the way
we view and operate our business. We saw the benefits of
those efforts once again as this is the third consecutive quarter
we reported a year over year increase in Adjusted EBITDA.
"Our business continued to gain momentum during the quarter as
we saw a year over year increase in net revenues and Adjusted
EBITDA at ten properties. A combination of better overall
macro-economic trends and our redesigned marketing and operating
programs resulted in a 3% revenue increase year over year, while
our more streamlined cost structure contributed to a 17% increase
in Adjusted EBITDA year over year. Our revenue flow through
during the quarter was 87%, demonstrating the operating leverage in
our business.
"We continue to focus on improving the profitability of our
newest properties and saw positive results at Cape Girardeau where Adjusted EBITDA improved
51% year over year. At Nemacolin we reduced the Adjusted
EBITDA loss by nearly $1 million year
over year and are continuing to focus on driving profitable
revenues.
"We also remain focused on improving our balance sheet and
property assets. We reduced debt by approximately
$32 million since the beginning of
our fiscal year, while continuing to invest in our properties to
enhance the guest experience."
Financial Highlights
Net revenues for the second quarter were up 3.1%, to
$238.9 million, compared to
$231.6 million in the prior year
quarter, and consolidated Adjusted EBITDA increased 17.1% to
$43.6 million from $37.3 million in the prior year quarter. Adjusted
EBITDA margin was 18.3% compared to 16.1% in the prior year
quarter.
Operating results in the most recent quarter were impacted by a
$1.2 million favorable property tax
settlement in Waterloo and $3.0
million in expenses related to Amendment 68 in Colorado. The previous year's quarter
benefited from a favorable judicial ruling on litigation in
Greece, in which the Company
reversed a $14.7 million litigation
accrual, of which $7.3 million
reduced operating expenses and $7.4
million reduced interest expense.
On a GAAP basis, diluted loss per share from continuing
operations was ($0.03) compared to
income per share from continuing operations of $0.16 in the prior year's quarter. Adjusted
income per share from continuing operations was $0.02 compared to adjusted net loss per share
from continuing operations of ($0.21)
in the prior year's quarter.
Operating Results
Black Hawk – Net
revenues increased $2.7 million, or
9.0%, to $32.7 million and Adjusted
EBITDA increased $2.1 million to
$9.0 million, at our two casinos in
Black Hawk. This quarter's results benefited from better
labor management and the rollout of Fan Club at our two
properties. Additionally, the previous year's results were
negatively impacted by flooding in Colorado. The overall
Black Hawk market increased 4.7%
compared to the prior year three-month period. Our properties
increased market share from 20.9% in the prior year quarter to
22.0% in the current year quarter.
Pompano – Net revenues increased $0.3 million to $36.7
million, and Adjusted EBITDA increased 12.8%, to
$6.2 million at Pompano Park.
These results were driven primarily by cost reduction
initiatives.
Iowa – Net revenues were
essentially flat at $46.9 million and
Adjusted EBITDA increased $0.2
million to $13.3 million at
our properties in Iowa. Adjusted EBITDA margin at our
property in Bettendorf increased
103 basis points despite a $0.7
million decrease in net revenues as a result of cost
containment efforts. Effective marketing programs in Waterloo
drove increased rated play and increased market share during the
second quarter resulting in a 3.5% increase in Adjusted EBITDA.
Lake Charles – Net revenues decreased $0.2 million to $31.1
million, and Adjusted EBITDA was essentially flat at
$4.5 million. During the quarter we
renovated the buffet at Lake Charles introducing our Farmer's Pick
buffet which has had great success at five of our other
properties.
Mississippi – Net
revenues grew $0.2 million to
$23.6 million and Adjusted EBITDA
grew $0.8 million at our properties
in Mississippi. In Lula, strategic marketing initiatives
contributed to a net revenue increase of $0.8 million. Coupled with cost savings
efforts, Adjusted EBITDA at Lula
increased $0.8 million to
$2.0 million, an increase of
71.5%. In Vicksburg, more targeted marketing and better cost
management resulted in a $0.3 million
increase in Adjusted EBITDA to $1.0
million despite a decline in revenues.
Missouri – Net revenues
increased $2.8 million to
$58.9 million, and Adjusted EBITDA
increased $1.5 million to
$14.3 million at our properties in
Missouri. Net revenues and
Adjusted EBITDA at Cape Girardeau
increased $1.8 million and
$0.8 million, respectively, and
Adjusted EBITDA margin improved almost 400 bps. We continue
to focus on driving profitable revenue and enhancing our food and
beverage operations as the property continues to mature.
Kansas City and Caruthersville saw strong increases in
Adjusted EBITDA of 9.6% and 38.0%, respectively, while Boonville's Adjusted EBITDA was almost
flat.
Pennsylvania – Net
revenues were $9.0 million, an
increase of $1.6 million compared to
the prior year quarter, which was the first full fiscal quarter of
operation at our Lady Luck Casino at Nemacolin Woodlands
Resort. Adjusted EBITDA was ($0.4)
million compared to ($1.3)
million during the second quarter of the prior year.
We continue to refine our marketing programs and cost
structure at the property.
Corporate Expenses
Corporate and development expenses were $6.7 million for the quarter, a decrease of
$0.7 million compared to the prior
year.
Corporate non-cash stock compensation expense was $1.1 million for the quarter compared to
$1.4 million in the second quarter of
fiscal 2014.
Capital Structure and Capital Expenditures
As of October 26, 2014, the
Company had:
- $68.8 million in cash and cash
equivalents, excluding $9.1 million
in restricted cash and investments;
- $1.0 billion in total debt;
and
- $178 million in net line of
credit availability.
Second quarter capital expenditures were $9.7 million, bringing total capital expenditures
to $18.7 million for the six
months. The Company expects to incur approximately
$28 million to $31 million in capital
expenditures for the balance of fiscal 2015.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Tuesday, December 2, 2014 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 Tuesday, December 2, 2014, until 11:59 pm central on Tuesday, December 16, 2014, by dialing
877-344-7529; International: 412-317-0088 and access number
10056661.
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
|
|
Six Months
Ended
|
|
|
|
October
26,
|
|
October
27,
|
|
October
26,
|
|
October
27,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ 255,445
|
|
$ 246,508
|
|
$ 510,517
|
|
$ 497,342
|
|
Rooms
|
|
8,474
|
|
8,713
|
|
16,786
|
|
17,628
|
|
Food, beverage,
pari-mutuel and other
|
|
34,435
|
|
32,597
|
|
68,558
|
|
66,719
|
|
Gross
revenues
|
|
298,354
|
|
287,818
|
|
595,861
|
|
581,689
|
|
Less promotional
allowances
|
|
(59,437)
|
|
(56,197)
|
|
(115,295)
|
|
(112,055)
|
|
Net
revenues
|
|
238,917
|
|
231,621
|
|
480,566
|
|
469,634
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
40,275
|
|
39,793
|
|
80,403
|
|
80,061
|
|
Gaming
taxes
|
|
64,403
|
|
62,451
|
|
128,870
|
|
125,129
|
|
Rooms
|
|
1,849
|
|
1,872
|
|
3,752
|
|
3,773
|
|
Food, beverage,
pari-mutuel and other
|
|
10,674
|
|
10,315
|
|
22,046
|
|
21,117
|
|
Marine and
facilities
|
|
14,488
|
|
14,382
|
|
29,207
|
|
29,001
|
|
Marketing and
administrative
|
|
59,858
|
|
59,640
|
|
120,219
|
|
118,890
|
|
Corporate and
development
|
|
6,735
|
|
7,386
|
|
15,883
|
|
14,084
|
|
Litigation accrual
reversal
|
|
-
|
|
(7,351)
|
|
-
|
|
(7,351)
|
|
Preopening
expense
|
|
-
|
|
-
|
|
-
|
|
3,898
|
|
Depreciation and
amortization
|
|
19,610
|
|
20,522
|
|
39,253
|
|
40,324
|
|
Total operating
expenses
|
|
217,892
|
|
209,010
|
|
439,633
|
|
428,926
|
|
Operating
income
|
|
21,025
|
|
22,611
|
|
40,933
|
|
40,708
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(21,114)
|
|
(15,193)
|
|
(42,443)
|
|
(37,847)
|
|
Interest
income
|
|
92
|
|
84
|
|
179
|
|
174
|
|
Derivative
income
|
|
-
|
|
168
|
|
-
|
|
398
|
|
Income (loss) from
continuing operations before
|
|
|
|
|
|
|
|
|
|
income
taxes
|
|
3
|
|
7,670
|
|
(1,331)
|
|
3,433
|
|
Income tax
provision
|
|
(1,024)
|
|
(1,359)
|
|
(2,007)
|
|
(2,770)
|
|
Income (loss) from
continuing operations
|
|
(1,021)
|
|
6,311
|
|
(3,338)
|
|
663
|
|
Income from
discontinued operations, net of income taxes
|
-
|
|
1,726
|
|
-
|
|
2,512
|
|
Net income
(loss)
|
|
$
(1,021)
|
|
$
8,037
|
|
$
(3,338)
|
|
$
3,175
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-basic:
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
(0.03)
|
|
$
0.16
|
|
$
(0.08)
|
|
$
0.02
|
|
Income from
discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of income
taxes
|
|
-
|
|
0.04
|
|
-
|
|
0.06
|
|
Net income
(loss)
|
|
$
(0.03)
|
|
$
0.20
|
|
$
(0.08)
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-dilutive:
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
(0.03)
|
|
$
0.16
|
|
$
(0.08)
|
|
$
0.02
|
|
Income from
discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of income
taxes
|
|
-
|
|
0.04
|
|
-
|
|
0.06
|
|
Net income
(loss)
|
|
$
(0.03)
|
|
$
0.20
|
|
$
(0.08)
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
|
39,932,856
|
|
39,686,217
|
|
39,880,379
|
|
39,634,573
|
|
Weighted average
diluted shares
|
|
39,932,856
|
|
39,731,192
|
|
39,880,379
|
|
39,682,644
|
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share amounts)
|
|
|
|
|
|
October
26,
|
|
April
27,
|
|
2014
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
68,794
|
|
$
69,830
|
Marketable
securities
|
27,052
|
|
27,289
|
Accounts receivable,
net
|
11,280
|
|
12,615
|
Income taxes
receivable
|
203
|
|
73
|
Deferred income
taxes
|
3,898
|
|
4,106
|
Prepaid expenses and
other assets
|
21,779
|
|
18,526
|
Total current
assets
|
133,006
|
|
132,439
|
Property and
equipment, net
|
935,930
|
|
955,604
|
Other
assets:
|
|
|
|
Goodwill
|
108,970
|
|
108,970
|
Other intangible
assets, net
|
54,492
|
|
54,911
|
Deferred financing
costs, net
|
21,200
|
|
23,439
|
Restricted cash and
investments
|
9,149
|
|
9,807
|
Prepaid deposits and
other
|
4,825
|
|
4,904
|
Total
assets
|
$ 1,267,572
|
|
$ 1,290,074
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
233
|
|
$
230
|
Accounts
payable
|
19,813
|
|
20,869
|
Accrued
liabilities:
|
|
|
|
Payroll and
related
|
37,935
|
|
34,700
|
Property and other
taxes
|
24,750
|
|
20,360
|
Interest
|
16,658
|
|
16,920
|
Progressive jackpots
and slot club awards
|
16,700
|
|
16,306
|
Other
|
20,773
|
|
18,478
|
Total current
liabilities
|
136,862
|
|
127,863
|
Long-term debt, less
current maturities
|
1,034,182
|
|
1,066,071
|
Deferred income
taxes
|
37,628
|
|
35,870
|
Other accrued
liabilities
|
18,420
|
|
18,495
|
Other long-term
liabilities
|
22,357
|
|
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:
|
|
|
|
42,066,148 at October
26, 2014 and at April 27, 2014
|
421
|
|
421
|
Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued
|
|
|
|
Additional paid-in
capital
|
247,450
|
|
247,819
|
Retained earnings
(deficit)
|
(205,251)
|
|
(201,913)
|
|
42,620
|
|
46,327
|
Treasury stock,
2,033,907 shares at October 26, 2014 and 2,236,971
shares
|
|
|
|
at April 27,
2014
|
(24,497)
|
|
(26,943)
|
Total stockholders'
equity
|
18,123
|
|
19,384
|
Total liabilities and
stockholders' equity
|
$ 1,267,572
|
|
$ 1,290,074
|
Isle of Capri
Casinos, Inc.
|
Supplemental Data
- Net Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
October
26,
|
|
October
27,
|
|
October
26,
|
|
October
27,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Colorado
|
|
|
|
|
|
|
|
|
|
Black Hawk
|
|
$ 32,738
|
|
$ 30,023
|
|
$ 64,419
|
|
$ 62,707
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
Pompano
|
|
36,733
|
|
36,400
|
|
74,457
|
|
73,786
|
|
|
|
|
|
|
|
|
|
|
Iowa
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
18,273
|
|
18,965
|
|
37,807
|
|
38,430
|
|
Marquette
|
|
6,950
|
|
6,911
|
|
13,437
|
|
14,023
|
|
Waterloo
|
|
21,649
|
|
21,040
|
|
42,901
|
|
41,982
|
|
Iowa Total
|
|
46,872
|
|
46,916
|
|
94,145
|
|
94,435
|
|
|
|
|
|
|
|
|
|
|
Louisiana
|
|
|
|
|
|
|
|
|
|
Lake
Charles
|
|
31,075
|
|
31,244
|
|
63,611
|
|
64,910
|
|
|
|
|
|
|
|
|
|
|
Mississippi
|
|
|
|
|
|
|
|
|
|
Lula
|
|
12,335
|
|
11,523
|
|
25,010
|
|
24,102
|
|
Natchez
|
|
4,459
|
|
4,795
|
|
9,212
|
|
10,122
|
|
Vicksburg
|
|
6,803
|
|
7,035
|
|
14,245
|
|
14,814
|
|
Mississippi
Total
|
|
23,597
|
|
23,353
|
|
48,467
|
|
49,038
|
|
|
|
|
|
|
|
|
|
|
Missouri
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
19,075
|
|
18,891
|
|
38,265
|
|
37,620
|
|
Cape
Girardeau
|
|
14,809
|
|
13,049
|
|
29,169
|
|
26,858
|
|
Caruthersville
|
|
7,583
|
|
7,199
|
|
15,066
|
|
14,886
|
|
Kansas
City
|
|
17,395
|
|
16,936
|
|
35,224
|
|
35,007
|
|
Missouri
Total
|
|
58,862
|
|
56,075
|
|
117,724
|
|
114,371
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
|
|
|
|
|
|
|
|
|
|
Nemacolin
|
|
9,033
|
|
7,429
|
|
17,690
|
|
10,022
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
|
238,910
|
|
231,440
|
|
480,513
|
|
469,269
|
Other
|
|
7
|
|
181
|
|
53
|
|
365
|
Net Revenues from
Continuing Operations
|
$ 238,917
|
|
$ 231,621
|
|
$ 480,566
|
|
$ 469,634
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
Three Months Ended
October 26, 2014
|
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
3,629
|
|
$
2,307
|
|
$
7
|
|
$
3,044
|
|
$ 8,987
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
4,489
|
|
1,732
|
|
7
|
|
-
|
|
6,228
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
3,524
|
|
1,436
|
|
6
|
|
-
|
|
4,966
|
Marquette,
Iowa
|
|
1,261
|
|
402
|
|
4
|
|
-
|
|
1,667
|
Waterloo,
Iowa
|
|
6,593
|
|
1,289
|
|
5
|
|
(1,225)
|
|
6,662
|
|
Iowa Total
|
|
11,378
|
|
3,127
|
|
15
|
|
(1,225)
|
|
13,295
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
1,705
|
|
2,745
|
|
6
|
|
-
|
|
4,456
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
673
|
|
1,276
|
|
4
|
|
-
|
|
1,953
|
Natchez,
Mississippi
|
|
(950)
|
|
272
|
|
4
|
|
-
|
|
(674)
|
Vicksburg,
Mississippi
|
|
140
|
|
893
|
|
4
|
|
-
|
|
1,037
|
|
Mississippi
Total
|
|
(137)
|
|
2,441
|
|
12
|
|
-
|
|
2,316
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
5,658
|
|
987
|
|
2
|
|
-
|
|
6,647
|
Cape Girardeau,
Missouri
|
|
(458)
|
|
2,812
|
|
4
|
|
-
|
|
2,358
|
Caruthersville,
Missouri
|
|
846
|
|
629
|
|
3
|
|
-
|
|
1,478
|
Kansas City,
Missouri
|
|
2,897
|
|
959
|
|
7
|
|
-
|
|
3,863
|
|
Missouri
Total
|
|
8,943
|
|
5,387
|
|
16
|
|
-
|
|
14,346
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(1,744)
|
|
1,362
|
|
3
|
|
|
|
(379)
|
Total Operating
Properties
|
|
28,263
|
|
19,101
|
|
66
|
|
1,819
|
|
49,249
|
Corporate and
Other
|
|
(7,238)
|
|
509
|
|
1,128
|
|
-
|
|
(5,601)
|
Total
|
|
$
21,025
|
|
$
19,610
|
|
$
1,194
|
|
$
1,819
|
|
$ 43,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 27, 2013
|
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
4,532
|
|
$
2,356
|
|
$
8
|
|
$
-
|
|
$ 6,896
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
3,727
|
|
1,788
|
|
6
|
|
-
|
|
5,521
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
3,276
|
|
1,679
|
|
3
|
|
-
|
|
4,958
|
Marquette,
Iowa
|
|
1,242
|
|
487
|
|
1
|
|
-
|
|
1,730
|
Waterloo,
Iowa
|
|
5,230
|
|
1,202
|
|
4
|
|
-
|
|
6,436
|
|
Iowa Total
|
|
9,748
|
|
3,368
|
|
8
|
|
-
|
|
13,124
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
1,460
|
|
3,003
|
|
4
|
|
-
|
|
4,467
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
(186)
|
|
1,322
|
|
3
|
|
-
|
|
1,139
|
Natchez,
Mississippi
|
|
(736)
|
|
342
|
|
4
|
|
-
|
|
(390)
|
Vicksburg,
Mississippi
|
|
(110)
|
|
891
|
|
4
|
|
-
|
|
785
|
|
Mississippi
Total
|
|
(1,032)
|
|
2,555
|
|
11
|
|
-
|
|
1,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
5,762
|
|
911
|
|
6
|
|
-
|
|
6,679
|
Cape Girardeau,
Missouri
|
|
(1,225)
|
|
2,788
|
|
1
|
|
-
|
|
1,564
|
Caruthersville,
Missouri
|
|
325
|
|
742
|
|
4
|
|
-
|
|
1,071
|
Kansas City,
Missouri
|
|
2,560
|
|
961
|
|
4
|
|
-
|
|
3,525
|
|
Missouri
Total
|
|
7,422
|
|
5,402
|
|
15
|
|
-
|
|
12,839
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(3,013)
|
|
1,670
|
|
1
|
|
|
|
(1,342)
|
Total Operating
Properties
|
|
22,844
|
|
20,142
|
|
53
|
|
-
|
|
43,039
|
Corporate and
Other
|
|
(233)
|
|
380
|
|
1,446
|
|
(7,351)
|
|
(5,758)
|
Total
|
|
$
22,611
|
|
$
20,522
|
|
$
1,499
|
|
$
(7,351)
|
|
$ 37,281
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
Six Months Ended
October 26, 2014
|
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
8,139
|
|
$
4,650
|
|
$
15
|
|
$
4,057
|
|
$ 16,861
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
9,328
|
|
3,474
|
|
13
|
|
-
|
|
12,815
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
7,540
|
|
2,888
|
|
10
|
|
-
|
|
10,438
|
Marquette,
Iowa
|
|
2,159
|
|
858
|
|
5
|
|
-
|
|
3,022
|
Waterloo,
Iowa
|
|
11,941
|
|
2,475
|
|
9
|
|
(1,225)
|
|
13,200
|
|
Iowa Total
|
|
21,640
|
|
6,221
|
|
24
|
|
(1,225)
|
|
26,660
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
4,050
|
|
5,575
|
|
10
|
|
-
|
|
9,635
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
1,599
|
|
2,563
|
|
7
|
|
-
|
|
4,169
|
Natchez,
Mississippi
|
|
(1,541)
|
|
505
|
|
8
|
|
-
|
|
(1,028)
|
Vicksburg,
Mississippi
|
|
230
|
|
1,785
|
|
8
|
|
-
|
|
2,023
|
|
Mississippi
Total
|
|
288
|
|
4,853
|
|
23
|
|
-
|
|
5,164
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
11,436
|
|
1,975
|
|
8
|
|
-
|
|
13,419
|
Cape Girardeau,
Missouri
|
|
(937)
|
|
5,602
|
|
5
|
|
-
|
|
4,670
|
Caruthersville,
Missouri
|
|
1,506
|
|
1,297
|
|
7
|
|
-
|
|
2,810
|
Kansas City,
Missouri
|
|
5,809
|
|
1,909
|
|
11
|
|
-
|
|
7,729
|
|
Missouri
Total
|
|
17,814
|
|
10,783
|
|
31
|
|
-
|
|
28,628
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(3,517)
|
|
2,719
|
|
4
|
|
-
|
|
(794)
|
Total Operating
Properties
|
|
57,742
|
|
38,275
|
|
120
|
|
2,832
|
|
98,969
|
Corporate and
Other
|
|
(16,809)
|
|
978
|
|
1,957
|
|
2,259
|
|
(11,615)
|
Total
|
|
$
40,933
|
|
$
39,253
|
|
$
2,077
|
|
$
5,091
|
|
$ 87,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
October 27, 2013
|
|
|
|
Operating
Income (Loss)
|
|
Depreciation
and
Amortization
|
|
Stock-Based
Compensation
|
|
Preopening
and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
10,616
|
|
$
4,675
|
|
$
19
|
|
$
-
|
|
$ 15,310
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
7,894
|
|
3,634
|
|
13
|
|
-
|
|
11,541
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
|
6,489
|
|
3,378
|
|
7
|
|
-
|
|
9,874
|
Marquette,
Iowa
|
|
2,462
|
|
965
|
|
4
|
|
-
|
|
3,431
|
Waterloo,
Iowa
|
|
9,858
|
|
2,422
|
|
10
|
|
-
|
|
12,290
|
|
Iowa Total
|
|
18,809
|
|
6,765
|
|
21
|
|
-
|
|
25,595
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
4,194
|
|
5,880
|
|
9
|
|
-
|
|
10,083
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
|
176
|
|
2,648
|
|
8
|
|
-
|
|
2,832
|
Natchez,
Mississippi
|
|
(1,335)
|
|
693
|
|
9
|
|
-
|
|
(633)
|
Vicksburg,
Mississippi
|
|
270
|
|
1,896
|
|
9
|
|
-
|
|
2,175
|
|
Mississippi
Total
|
|
(889)
|
|
5,237
|
|
26
|
|
-
|
|
4,374
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
|
10,987
|
|
2,063
|
|
12
|
|
-
|
|
13,062
|
Cape Girardeau,
Missouri
|
|
(1,910)
|
|
5,575
|
|
4
|
|
-
|
|
3,669
|
Caruthersville,
Missouri
|
|
782
|
|
1,547
|
|
10
|
|
-
|
|
2,339
|
Kansas City,
Missouri
|
|
5,400
|
|
1,937
|
|
8
|
|
-
|
|
7,345
|
|
Missouri
Total
|
|
15,259
|
|
11,122
|
|
34
|
|
-
|
|
26,415
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(8,024)
|
|
2,227
|
|
1
|
|
3,898
|
|
(1,898)
|
Total Operating
Properties
|
|
47,859
|
|
39,540
|
|
123
|
|
3,898
|
|
91,420
|
Corporate and
Other
|
|
(7,151)
|
|
784
|
|
2,505
|
|
(8,370)
|
|
(12,232)
|
Total
|
|
$
40,708
|
|
$
40,324
|
|
$
2,628
|
|
$
(4,472)
|
|
$ 79,188
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Income (Loss) From Continuing Operations to Adjusted
EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
October
26,
|
|
October
27,
|
|
October
26,
|
|
October
27,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Income (loss) from
continuing operations
|
|
$ (1,021)
|
|
$ 6,311
|
|
$ (3,338)
|
|
$
663
|
|
Income tax
provision
|
|
1,024
|
|
1,359
|
|
2,007
|
|
2,770
|
|
Derivative
income
|
|
-
|
|
(168)
|
|
-
|
|
(398)
|
|
Interest
income
|
|
(92)
|
|
(84)
|
|
(179)
|
|
(174)
|
|
Interest
expense
|
|
21,114
|
|
15,193
|
|
42,443
|
|
37,847
|
|
Depreciation and
amortization
|
|
19,610
|
|
20,522
|
|
39,253
|
|
40,324
|
|
Stock-based
compensation
|
|
1,194
|
|
1,499
|
|
2,077
|
|
2,628
|
|
Colorado referendum
costs (3)
|
|
3,044
|
|
-
|
|
4,057
|
|
-
|
|
Property tax
settlements (3)
|
|
(1,225)
|
|
-
|
|
(1,225)
|
|
-
|
|
Severance expense
(3)
|
|
-
|
|
-
|
|
2,259
|
|
-
|
|
Litigation accrual
reversal (4)
|
|
-
|
|
(7,351)
|
|
-
|
|
(7,351)
|
|
Preopening
expense
|
|
-
|
|
-
|
|
-
|
|
3,898
|
|
Gain on sale of
airplane
|
|
-
|
|
-
|
|
-
|
|
(1,019)
|
Adjusted EBITDA
(1)
|
|
$ 43,648
|
|
$ 37,281
|
|
$ 87,354
|
|
$ 79,188
|
Isle of Capri
Casinos, Inc.
|
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
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
October
26,
|
|
October
27,
|
|
October
26,
|
|
October
27,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
$ (1,021)
|
|
$ 6,311
|
|
$ (3,338)
|
|
$ 663
|
Colorado referendum
expense (3)
|
3,044
|
|
-
|
|
4,057
|
|
-
|
Property tax
settlement (3)
|
(1,225)
|
|
-
|
|
(1,225)
|
|
-
|
Severance expense
(3)
|
-
|
|
-
|
|
2,259
|
|
-
|
Litigation accrual
reversal (4)
|
-
|
|
(14,730)
|
|
-
|
|
(14,730)
|
Preopening
expense
|
-
|
|
-
|
|
-
|
|
3,898
|
Gain on sale of
corporate aircraft
|
-
|
|
-
|
|
-
|
|
(1,019)
|
Adjusted income
(loss) (2)
|
$ 798
|
|
$ (8,419)
|
|
$ 1,753
|
|
$ (11,188)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations per share
|
$ (0.03)
|
|
$ 0.16
|
|
$ (0.08)
|
|
$ 0.02
|
Colorado referendum
expense (3)
|
0.08
|
|
-
|
|
0.10
|
|
-
|
Property tax
settlement (3)
|
(0.03)
|
|
-
|
|
(0.03)
|
|
|
Severance expense
(3)
|
-
|
|
-
|
|
0.06
|
|
-
|
Litigation accrual
reversal (4)
|
-
|
|
(0.37)
|
|
-
|
|
(0.37)
|
Preopening
expense
|
-
|
|
-
|
|
-
|
|
0.10
|
Gain on sale of
corporate aircraft
|
-
|
|
-
|
|
-
|
|
(0.03)
|
Adjusted income
(loss) per share (2)
|
$ 0.02
|
|
$ (0.21)
|
|
$ 0.05
|
|
$ (0.28)
|
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
$3.0 million and $4.1 million of expense during the three months
and six months ended October 26, 2014, respectively, related to the
Colorado gaming expansion referendum. The Company had a favorable
property tax settlement related to our Waterloo property of $1.2
million in during the three and six months ended October 26, 2014.
The Company recorded $2.3 million of severance expense during
the six months ended October 26, 2014, related to restructuring at
the corporate office.
|
|
|
4.
|
Litigation accrual
reversals for the three and six months ended October 27, 2013
includes a $7.3 million reduction to operating expenses and a $7.4
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-second-quarter-results-300003018.html
SOURCE Isle of Capri Casinos, Inc.