SAINT LOUIS, June 7, 2012 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the fourth fiscal quarter and fiscal year
ended April 29, 2012, and other
Company-related news.
Consolidated Results
The following table outlines the Company's financial results
(dollars in millions, except per shares data, unaudited):
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
April
29,
|
|
April
24,
|
|
April
29,
|
|
April
24,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
revenues
|
$
291.0
|
|
$
256.6
|
|
$
977.4
|
|
$
936.7
|
Net
revenues, excluding insurance recoveries
|
282.4
|
|
256.6
|
|
967.7
|
|
936.7
|
Consolidated adjusted EBITDA (1)
|
69.3
|
|
63.5
|
|
200.6
|
|
190.0
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
(13.5)
|
|
8.4
|
|
(17.4)
|
|
3.7
|
Income
(loss) from discontinued operations
|
(111.3)
|
|
2.5
|
|
(112.4)
|
|
0.8
|
Net income
(loss)
|
(124.8)
|
|
10.9
|
|
(129.8)
|
|
4.5
|
Diluted
income (loss) per share from continuing operations
|
(0.35)
|
|
0.22
|
|
(0.45)
|
|
0.11
|
Diluted
income (loss) per share from discontinued operations
|
(2.85)
|
|
0.06
|
|
(2.90)
|
|
0.02
|
Diluted
income (loss) per share
|
(3.20)
|
|
0.28
|
|
(3.35)
|
|
0.13
|
Adjusted
income (loss) per share (2)
|
0.38
|
|
0.27
|
|
0.43
|
|
0.17
|
|
|
|
|
|
|
|
|
(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 from the GAAP basis per share amounts to adjusted
income (loss) per share, refer to the reconciliation table labeled
"Reconciliation of GAAP Net Income (Loss) to Adjusted Income (Loss)
and GAAP Net Income (Loss) Per Share to Adjusted Income (Loss) Per
Share."
|
Commenting on the results, President and Chief Executive Officer
Virginia McDowell said, "Overall, we
had a solid quarter marked by incremental revenue growth resulting
from our refined business model, more favorable weather conditions
than last year and an increasingly renewed asset base. Even
after adjusting for the fact that fiscal 2012 had an additional
week when compared to fiscal 2011, we grew revenues and adjusted
EBITDA. In fiscal 2012 we continued to improve our balance sheet
even while investing to improve our existing properties and
building Cape Girardeau."
"We are pleased to announce that we expect to open Cape Girardeau by November 1 of this year, two full months ahead of
our initial schedule, and will complete the rebranding of
Vicksburg within the next several
months. Further, as we continue to renew our asset base and
provide guests with more options and more experiences, we have an
aggressive schedule of targeted capital improvements planned for
our properties during the coming months, including renovated hotel
rooms, new buffets and a full rollout of our enhanced customer
loyalty program."
"The quarter and year also contained a significant number of
unusual items including items related to assets sales, impairment
charges and insurance recoveries from flooding which are detailed
below."
Operating Results
During the quarter, we generally benefited from improved
operations, cost reductions, marketing investments and seasonally
mild weather, in addition to the favorable calendar, except as
otherwise noted. The following is a discussion of the operating
results at our properties during the quarter by state.
Colorado – Net revenues
increased 14.4% to $34.1 million and
adjusted EBITDA increased 54.6% to $9.5
million. Operating margins increased 720 basis points
to 27.8%. Our properties in Black
Hawk benefited from favorable weather conditions, completed
facility enhancements, including renovations to the poker room and
casino floor, and a reduced gaming tax rate compared to the fourth
quarter of fiscal 2011.
Florida – Net revenues
increased to $48.5 million from
$41.6 million and adjusted EBITDA
increased $1.5 million to
$10.8 million. Our property in
Pompano continued to exhibit revenue growth resulting from changes
to our game mix, enhanced food and beverage amenities and the
rollout of our enhanced customer loyalty program during the prior
quarter, while competing with a major new expansion at our nearest
competitor.
Iowa – Our property in
Waterloo showed strong growth in adjusted EBITDA margins during the
quarter, growing 260 basis points to 35.6%, as a result of
operating improvements and reduced costs. In the Quad Cities
net revenues increased a combined $2.6
million and adjusted EBITDA increased $0.5 million.
Louisiana – Net revenues
increased 11.6% to $38.7 million and
adjusted EBITDA increased 6.0% to $7.2
million. Adjusted EBITDA margins decreased 90 basis
points to 18.6%, primarily a result of severance and marketing
costs resulting from the consolidation of our riverboat operations
into a single facility. We are benefitting from a lower cost
structure in Lake Charles as a
result of consolidation following the sale of our smaller riverboat
in February 2012.
Mississippi – Net
revenues increased 2.1% to $37.7
million and adjusted EBITDA decreased 3.7% to $12.1 million. Adjusted EBITDA margins
decreased 190 basis points to 32.1%. Our properties in
Mississippi continue to face
difficulties stemming from a lagging economy in the area. In
particular, our property in Lula
is facing increased competitive pressure from competing facilities
in Arkansas. However, in Vicksburg we benefited from operating
improvements compared to the prior year quarter as adjusted EBITDA
margins improved from 34% to 39%, partially offset by construction
disruption associated with the ongoing rebranding of the
facility.
Missouri – Net revenues
increased $0.8 million at our
Kansas City property, however
adjusted EBITDA decreased $0.6
million to $5.7 million,
primarily as a result of competitive market pressures following the
opening of a new facility in the area during the quarter. Our
property in Boonville increased
adjusted EBITDA margins 120 basis points as a result of operating
efficiencies and the introduction of the Farmers' Pick Buffet in
the beginning of this fiscal quarter.
The following items impacted the Company's net income during the
quarter and year ended April 29
2012;
- Following the announcement of the pending sale of our
Biloxi property, we recorded a
charge of $112.6 million to
write-down the value of the property to the sale price of
$45 million. The impairment
charge and operating results of the property for all presented
periods have been reflected in discontinued operations in the
attached schedules.
- We recorded a charge of $16.1
million related to the sale of our smaller riverboat and
associated gaming license in Lake
Charles, Louisiana, completed on February 9, 2012. All operations have been
successfully consolidated onto the larger riverboat facility.
- We recorded an impairment charge of $14.4 million against the goodwill at our
Lula property during the fourth
quarter of fiscal 2012.
- Net revenues and operating income for the fourth quarter
include $8.6 million of insurance
recoveries received as a result of business interruption claims
related to flooding along the Mississippi River during fiscal
2012.
- We recorded a valuation allowance against our deferred tax
assets related to our continuing operations of $8.7 million in accordance with the provisions of
applicable accounting standards.
- We accrued approximately $2.0
million, including interest, in connection with a judgment
issued in a legal case in connection with the Company's previously
owned property in Vicksburg,
Mississippi, which was sold in July 2006. We are
appealing the judgment and plan to vigorously defend our
position.
Corporate Expenses
Corporate and development expenses were $10.8 million for the quarter, an increase of
$0.3 million compared to prior
year. The increase is primarily due to the accrual of the
judgment mentioned above and increased insurance costs in the
current year offset by debt refinancing costs of $3.0 million in the prior year.
Non-cash stock compensation expense was $1.3 million for the quarter compared to
$1.4 million in the fourth quarter of
fiscal 2011. For the fiscal year, non-cash stock compensation
expense was $7.3 million, compared to
$6.9 million in fiscal 2011.
Experience Enhancements
We continue to make targeted cost-efficient improvements at our
properties in order to reposition our product offerings to exceed
customer expectations. We are focused on improving the guest
experience by refreshing and right sizing many of our casino floors
and, in particular, are improving and expanding our array of
non-gaming amenities.
Rebranding – At Rainbow Casino in Vicksburg, we expect to complete the
$5 million Lady Luck Casino
rebranding by the end of the second quarter of fiscal 2013.
The rebranding will introduce upgraded amenities from our portfolio
of brands including an Otis and Henry's restaurant, and a
Lone Wolf bar.
Hotel Renovations – We are currently renovating the 253
hotel rooms in the main hotel tower in Lake Charles and 237 rooms in the Isle Black
Hawk Hotel. We expect the $15
million complete refurbishment of the Lake Charles rooms to be completed by
November 1, 2012. In Black Hawk
we are replacing carpet, wall coverings, and furniture at an
expected cost of approximately $2.0
million, and expect to be completed by December 1, 2012.
Food and Beverage Offerings – Our first Farmer's Pick
Buffet in Boonville has received
outstanding customer feedback, and we intend to open additional
Farmer's Pick Buffets in fiscal 2013 including at Cape Girardeau, Pompano, Black Hawk and Waterloo. Additionally,
we plan to add a Lone Wolf bar in
our Waterloo facility.
Customer Loyalty Program – Our enhanced customer loyalty
program, the Fan Club, was introduced at its third and fourth
locations, Kansas City and
Lake Charles, during the
quarter. It has proven successful in expanding customer
options and should result in more efficient marketing moving
forward. We expect to introduce the program to five
additional properties during the first and second quarters of
fiscal 2013, and intend to have it fully implemented across the
portfolio by the end of fiscal 2013.
Development
Cape Girardeau, Missouri
– Construction of our Cape Girardeau,
Missouri project continues to progress ahead of schedule and
we are happy to report that we now expect to complete construction
on and open our facility in Cape
Girardeau by November 1, 2012,
an additional month ahead of the previously announced expedited
schedule and two months ahead of our original construction
schedule. However, the expected cost of the project has been
revised to $135 million from the
previously estimated $125
million.
Nemacolin Woodlands Resort, Pennsylvania – The
appeal hearing for the gaming license awarded to Nemacolin
Woodlands Resort for the final resort license
in Pennsylvania was held on March
7, 2012. No date has been determined for an expected ruling
on the appeal or the ultimate resolution of the matter. We
expect to begin construction on the property following a successful
conclusion to the appeal process and receiving any other necessary
approvals, and to open the property approximately nine months after
the commencement of construction.
Capital Structure and FY 2013 Guidance
As of April 29, 2012, the Company
had:
- $94.5 million in cash and cash
equivalents, excluding $12.6 million
in restricted cash;
- $1.2 billion in total debt;
and
- $258 million in net line of
credit availability.
Fiscal Year 2012 capital expenditures were $75.2 million, of which $34.9 million related to Cape Girardeau, $0.7
million related to Nemacolin and $39.6 million related to maintenance capital and
projects at our existing properties.
At the end of the fiscal year our net leverage, as calculated
under our senior credit facility was approximately 5.7x compared to
6.2x at the end of fiscal 2011.
The Company provided guidance for the following specific
non-operating items for fiscal year 2013:
- Depreciation and amortization expense is expected to be
approximately $76 million to $78
million.
- The Company expects cash income taxes pertaining to FY 2013
operations to be less than $5
million, primarily representing state income taxes.
- Interest expense is expected to be approximately $83 million to $85 million, net of capitalized
interest.
- Corporate and development expenses for FY 2013 are expected to
be approximately $40 million,
including approximately $6 million in
non-cash stock compensation expense.
- Capital expenditures for FY 2013 are expected to be
approximately $140 million to $150
million, including approximately $85
million remaining to be spent in Cape Girardeau. The
balance of the spending will complete the Lake Charles and Black Hawk hotel renovations, the Vicksburg rebranding, Farmer's Pick
conversions and recurring maintenance capital. We have not
forecasted any material capital spending related to Nemacolin due
to the uncertainty of the timing of the appeal process or ultimate
resolution.
- We expect to incur approximately $5.5
million of pre-opening expenses related to Cape Girardeau.
- Fiscal 2013 will be a 52 week year whereas fiscal 2012 was a 53
week year
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Thursday, June 7, 2012 at
9:00 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 877-917-8929. International callers can
access the conference call by dialing 517-308-9020. The
conference call reference number is 9992348. The conference call
will be recorded and available for review starting at midnight
central on Thursday, June 7, 2012,
until midnight central on Thursday, June 14,
2012, by dialing 888-568-0918; International: 203-369-3790
and access number 5218.
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 and operates, primarily under the Isle and Lady Luck
brands. The Company currently owns and operates gaming and
entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. The Company is also currently
developing a new facility in Cape
Girardeau, Missouri and has been licensed to develop a new
facility with Nemacolin Woodlands Resort in Western 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.
ISLE OF
CAPRI CASINOS, INC.
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands, except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
April
29,
|
|
April
24,
|
|
April
29,
|
|
April
24,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$
294,940
|
|
$
264,885
|
|
$
1,006,523
|
|
$
968,423
|
|
Rooms
|
|
8,631
|
|
8,203
|
|
32,438
|
|
32,144
|
|
Food,
beverage, pari-mutuel and other
|
|
37,275
|
|
32,340
|
|
128,560
|
|
121,955
|
|
Insurance
recoveries
|
|
8,654
|
|
-
|
|
9,637
|
|
-
|
|
Gross
revenues
|
|
349,500
|
|
305,428
|
|
1,177,158
|
|
1,122,522
|
|
Less
promotional allowances
|
|
(58,480)
|
|
(48,794)
|
|
(199,787)
|
|
(185,861)
|
|
Net
revenues
|
|
291,020
|
|
256,634
|
|
977,371
|
|
936,661
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
41,900
|
|
36,678
|
|
153,743
|
|
142,642
|
|
Gaming
taxes
|
|
73,225
|
|
65,293
|
|
251,780
|
|
242,949
|
|
Rooms
|
|
1,762
|
|
1,654
|
|
7,027
|
|
7,290
|
|
Food,
beverage, pari-mutuel and other
|
|
12,185
|
|
11,098
|
|
41,281
|
|
40,559
|
|
Marine and
facilities
|
|
14,421
|
|
14,672
|
|
57,225
|
|
55,211
|
|
Marketing
and administrative
|
|
61,635
|
|
57,714
|
|
234,470
|
|
225,757
|
|
Corporate
and development
|
|
10,831
|
|
10,529
|
|
40,248
|
|
42,709
|
|
Valuation
charges
|
|
30,549
|
|
-
|
|
30,549
|
|
-
|
|
Preopening
|
|
484
|
|
-
|
|
615
|
|
-
|
|
Depreciation and amortization
|
|
17,924
|
|
19,664
|
|
76,050
|
|
77,613
|
|
Total
operating expenses
|
|
264,916
|
|
217,302
|
|
892,988
|
|
834,730
|
|
Operating
income
|
|
26,104
|
|
39,332
|
|
84,383
|
|
101,931
|
|
Interest
expense
|
|
(22,466)
|
|
(23,224)
|
|
(87,905)
|
|
(91,935)
|
|
Interest
income
|
|
199
|
|
541
|
|
819
|
|
1,903
|
|
Derivative
income (expense)
|
|
187
|
|
42
|
|
439
|
|
(1,214)
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations before
|
|
|
|
|
|
|
|
|
|
income
taxes
|
|
4,024
|
|
16,691
|
|
(2,264)
|
|
10,685
|
|
Income tax
provision
|
|
(17,502)
|
|
(8,335)
|
|
(15,119)
|
|
(6,950)
|
|
Income
(loss) from continuing operations
|
|
(13,478)
|
|
8,356
|
|
(17,383)
|
|
3,735
|
|
Income
(loss) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(111,313)
|
|
2,515
|
|
(112,370)
|
|
805
|
|
Net income
(loss)
|
|
$
(124,791)
|
|
$
10,871
|
|
$
(129,753)
|
|
$
4,540
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share-basic:
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
$
(0.35)
|
|
$
0.22
|
|
$
(0.45)
|
|
$
0.11
|
|
Income
(loss) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(2.85)
|
|
0.07
|
|
(2.90)
|
|
0.02
|
|
Net income
(loss)
|
|
$
(3.20)
|
|
$
0.29
|
|
$
(3.35)
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share-dilutive:
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
$
(0.35)
|
|
$
0.22
|
|
$
(0.45)
|
|
$
0.11
|
|
Income
(loss) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(2.85)
|
|
0.06
|
|
(2.90)
|
|
0.02
|
|
Net income
(loss)
|
|
$
(3.20)
|
|
$
0.28
|
|
$
(3.35)
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average basic shares
|
|
38,982,281
|
|
38,103,040
|
|
38,753,098
|
|
34,066,159
|
|
Weighted
average diluted shares
|
|
38,982,281
|
|
38,252,693
|
|
38,753,098
|
|
34,174,717
|
|
ISLE OF
CAPRI CASINOS, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
April
29,
|
|
April
24,
|
|
|
2012
|
|
2011
|
|
ASSETS
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
$
94,461
|
|
$
75,178
|
|
Marketable
securities
|
24,943
|
|
22,173
|
|
Accounts
receivable, net
|
6,941
|
|
9,367
|
|
Insurance
receivable
|
7,497
|
|
234
|
|
Income
taxes receivable
|
2,161
|
|
3,866
|
|
Deferred
income taxes
|
627
|
|
12,097
|
|
Prepaid
expenses and other assets
|
18,950
|
|
25,444
|
|
Assets
held for sale
|
46,703
|
|
-
|
|
Total
current assets
|
202,283
|
|
148,359
|
|
Property
and equipment, net
|
950,014
|
|
1,113,549
|
|
Other
assets:
|
|
|
|
|
Goodwill
|
330,903
|
|
345,303
|
|
Other
intangible assets, net
|
56,586
|
|
82,207
|
|
Deferred
financing costs, net
|
13,205
|
|
18,911
|
|
Restricted
cash
|
12,551
|
|
12,810
|
|
Prepaid
deposits and other
|
9,428
|
|
12,749
|
|
Total
assets
|
$
1,574,970
|
|
$
1,733,888
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current
maturities of long-term debt
|
$
5,393
|
|
$
5,373
|
|
Accounts
payable
|
23,536
|
|
26,013
|
|
Accrued
liabilities:
|
|
|
|
|
Payroll
and related
|
38,566
|
|
44,187
|
|
Property
and other taxes
|
19,522
|
|
19,891
|
|
Interest
|
9,296
|
|
10,802
|
|
Progressive jackpots and slot club awards
|
14,892
|
|
15,280
|
|
Liabilities related to assets held for
sale
|
4,362
|
|
-
|
|
Other
|
40,549
|
|
32,332
|
|
Total
current liabilities
|
156,116
|
|
153,878
|
|
Long-term
debt, less current maturities
|
1,149,038
|
|
1,187,221
|
|
Deferred
income taxes
|
36,057
|
|
30,762
|
|
Other
accrued liabilities
|
33,583
|
|
36,305
|
|
Other
long-term liabilities
|
16,556
|
|
16,694
|
|
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 April 29, 2012 and 42,063,569 at April 24, 2011
|
421
|
|
421
|
|
Class B
common stock, $.01 par value; 3,000,000 shares authorized; none
issued
|
-
|
|
-
|
|
Additional
paid-in capital
|
247,855
|
|
254,013
|
|
Retained
earnings (deficit)
|
(26,658)
|
|
103,095
|
|
Accumulated other comprehensive (loss)
income
|
(855)
|
|
(2,235)
|
|
|
220,763
|
|
355,294
|
|
Treasury
stock, 3,083,867 shares at April 29, 2012 and 3,841,283 April 24,
2011
|
(37,143)
|
|
(46,266)
|
|
Total
stockholders' equity
|
183,620
|
|
309,028
|
|
Total
liabilities and stockholders' equity
|
$
1,574,970
|
|
$
1,733,888
|
|
Isle of
Capri Casinos, Inc.
|
|
Supplemental Data - Net Revenues
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
|
April
29,
|
|
April
24,
|
|
April
29,
|
|
April
24,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
38,714
|
|
$
34,692
|
|
$
138,634
|
|
$
131,214
|
|
|
Kansas
City, Missouri
|
|
22,554
|
|
21,756
|
|
80,703
|
|
77,710
|
|
|
Boonville,
Missouri
|
|
23,315
|
|
20,497
|
|
81,796
|
|
78,776
|
|
|
Bettendorf, Iowa
|
|
21,715
|
|
20,994
|
|
79,156
|
|
79,003
|
|
|
Marquette,
Iowa
|
|
7,357
|
|
6,851
|
|
28,036
|
|
27,397
|
|
|
Waterloo,
Iowa
|
|
24,721
|
|
22,936
|
|
86,484
|
|
83,197
|
|
|
Black
Hawk, Colorado
|
|
34,073
|
|
29,789
|
|
124,051
|
|
115,482
|
|
|
Pompano,
Florida
|
|
48,538
|
|
41,572
|
|
154,740
|
|
138,704
|
|
|
|
|
220,987
|
|
199,087
|
|
773,600
|
|
731,483
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
9,009
|
|
8,506
|
|
26,739
|
|
30,787
|
|
|
Lula,
Mississippi
|
|
18,300
|
|
19,084
|
|
56,070
|
|
67,340
|
|
|
Vicksburg,
Mississippi(2)
|
|
10,437
|
|
9,365
|
|
31,937
|
|
27,935
|
|
|
Caruthersville, Missouri
|
|
10,539
|
|
9,447
|
|
33,890
|
|
33,696
|
|
|
Davenport,
Iowa
|
|
12,769
|
|
10,919
|
|
44,055
|
|
43,651
|
|
|
|
|
61,054
|
|
57,321
|
|
192,691
|
|
203,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
Net Revenues before Other
|
|
282,041
|
|
256,408
|
|
966,291
|
|
934,892
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
Recoveries(3)
|
|
|
|
|
|
|
|
|
|
|
Natchez
|
|
1,485
|
|
-
|
|
1,904
|
|
-
|
|
|
Lula
|
|
5,455
|
|
-
|
|
5,455
|
|
-
|
|
|
Vicksburg
|
|
703
|
|
-
|
|
758
|
|
-
|
|
|
Caruthersville
|
|
751
|
|
-
|
|
1,149
|
|
-
|
|
|
Davenport
|
|
260
|
|
-
|
|
371
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
325
|
|
226
|
|
1,443
|
|
1,769
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenues from Continuing Operations
|
|
$
291,020
|
|
$
256,634
|
|
$
977,371
|
|
$
936,661
|
|
|
|
|
|
|
|
|
|
|
|
|
Isle of
Capri Casinos, Inc.
|
|
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended April 29, 2012
|
|
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Valuation
and Other
Charges
(4)
|
|
Stock-Based Compensation
|
|
Insurance Recoveries
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
(11,193)
|
|
$
2,236
|
|
$
16,149
|
|
$
3
|
|
$
-
|
|
$
7,195
|
|
|
Kansas
City, Missouri
|
|
4,741
|
|
980
|
|
-
|
|
1
|
|
-
|
|
5,722
|
|
|
Boonville,
Missouri
|
|
7,867
|
|
849
|
|
-
|
|
5
|
|
-
|
|
8,721
|
|
|
Bettendorf, Iowa
|
|
4,423
|
|
1,994
|
|
-
|
|
5
|
|
-
|
|
6,422
|
|
|
Marquette,
Iowa
|
|
1,214
|
|
469
|
|
-
|
|
5
|
|
-
|
|
1,688
|
|
|
Waterloo,
Iowa
|
|
7,133
|
|
1,651
|
|
-
|
|
5
|
|
-
|
|
8,789
|
|
|
Black
Hawk, Colorado
|
|
7,457
|
|
1,992
|
|
-
|
|
10
|
|
-
|
|
9,459
|
|
|
Pompano,
Florida
|
|
8,338
|
|
2,457
|
|
-
|
|
6
|
|
-
|
|
10,801
|
|
|
|
|
29,980
|
|
12,628
|
|
16,149
|
|
40
|
|
-
|
|
58,797
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
3,858
|
|
418
|
|
-
|
|
5
|
|
(1,485)
|
|
2,796
|
|
|
Lula,
Mississippi
|
|
(5,303)
|
|
1,585
|
|
14,400
|
|
5
|
|
(5,455)
|
|
5,232
|
|
|
Vicksburg,
Mississippi (2)
|
|
3,528
|
|
1,259
|
|
-
|
|
3
|
|
(703)
|
|
4,087
|
|
|
Caruthersville, Missouri
|
|
2,528
|
|
893
|
|
-
|
|
5
|
|
(751)
|
|
2,675
|
|
|
Davenport,
Iowa
|
|
3,110
|
|
533
|
|
-
|
|
5
|
|
(260)
|
|
3,388
|
|
|
|
|
7,721
|
|
4,688
|
|
14,400
|
|
23
|
|
(8,654)
|
|
18,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
|
37,701
|
|
17,316
|
|
30,549
|
|
63
|
|
(8,654)
|
|
76,975
|
|
|
Corporate
and Other
|
|
(11,597)
|
|
608
|
|
1,979
|
|
1,326
|
|
-
|
|
(7,684)
|
|
Total
|
|
$
26,104
|
|
$
17,924
|
|
$
32,528
|
|
$
1,389
|
|
$
(8,654)
|
|
$
69,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended April 24, 2011
|
|
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Valuation and Other Charges (4)
|
|
Stock-Based Compensation
|
|
Insurance Recoveries
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
4,485
|
|
$
2,285
|
|
$
-
|
|
$
19
|
|
$
-
|
|
$
6,789
|
|
|
Kansas
City, Missouri
|
|
5,355
|
|
939
|
|
-
|
|
6
|
|
-
|
|
6,300
|
|
|
Boonville,
Missouri
|
|
6,344
|
|
1,073
|
|
-
|
|
21
|
|
-
|
|
7,438
|
|
|
Bettendorf, Iowa
|
|
4,463
|
|
1,989
|
|
-
|
|
5
|
|
-
|
|
6,457
|
|
|
Marquette,
Iowa
|
|
1,044
|
|
427
|
|
-
|
|
7
|
|
-
|
|
1,478
|
|
|
Waterloo,
Iowa
|
|
5,955
|
|
1,586
|
|
-
|
|
16
|
|
-
|
|
7,557
|
|
|
Black
Hawk, Colorado
|
|
3,187
|
|
2,919
|
|
-
|
|
12
|
|
-
|
|
6,118
|
|
|
Pompano,
Florida
|
|
6,394
|
|
2,918
|
|
-
|
|
5
|
|
-
|
|
9,317
|
|
|
|
|
37,227
|
|
14,136
|
|
-
|
|
91
|
|
-
|
|
51,454
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
2,464
|
|
399
|
|
-
|
|
8
|
|
-
|
|
2,871
|
|
|
Lula,
Mississippi
|
|
4,667
|
|
1,806
|
|
-
|
|
20
|
|
-
|
|
6,493
|
|
|
Vicksburg,
Mississippi (2)
|
|
1,835
|
|
1,379
|
|
-
|
|
-
|
|
-
|
|
3,214
|
|
|
Caruthersville, Missouri
|
|
1,785
|
|
767
|
|
-
|
|
8
|
|
-
|
|
2,560
|
|
|
Davenport,
Iowa
|
|
2,257
|
|
577
|
|
-
|
|
8
|
|
-
|
|
2,842
|
|
|
|
|
13,008
|
|
4,928
|
|
-
|
|
44
|
|
-
|
|
17,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
|
50,235
|
|
19,064
|
|
-
|
|
135
|
|
-
|
|
69,434
|
|
|
Corporate
and Other
|
|
(10,903)
|
|
600
|
|
2,988
|
|
1,399
|
|
-
|
|
(5,916)
|
|
Total
|
|
$
39,332
|
|
$
19,664
|
|
$
2,988
|
|
$
1,534
|
|
$
-
|
|
$
63,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Isle of
Capri Casinos, Inc.
|
|
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended April 29, 2012
|
|
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Valuation and Other Charges (4)
|
|
Stock-Based Compensation
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
(4,478)
|
|
$
9,291
|
|
$
16,149
|
|
$
38
|
|
$
21,000
|
|
|
Kansas
City, Missouri
|
|
13,902
|
|
3,997
|
|
-
|
|
11
|
|
17,910
|
|
|
Boonville,
Missouri
|
|
26,018
|
|
3,481
|
|
-
|
|
45
|
|
29,544
|
|
|
Bettendorf, Iowa
|
|
12,793
|
|
8,122
|
|
-
|
|
21
|
|
20,936
|
|
|
Marquette,
Iowa
|
|
4,169
|
|
1,791
|
|
-
|
|
25
|
|
5,985
|
|
|
Waterloo,
Iowa
|
|
20,399
|
|
6,573
|
|
-
|
|
37
|
|
27,009
|
|
|
Black
Hawk, Colorado
|
|
17,468
|
|
10,953
|
|
-
|
|
40
|
|
28,461
|
|
|
Pompano,
Florida
|
|
17,393
|
|
10,539
|
|
-
|
|
24
|
|
27,956
|
|
|
|
|
107,664
|
|
54,747
|
|
16,149
|
|
241
|
|
178,801
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
6,478
|
|
1,536
|
|
-
|
|
25
|
|
8,039
|
|
|
Lula,
Mississippi
|
|
(4,729)
|
|
6,590
|
|
14,400
|
|
45
|
|
16,306
|
|
|
Vicksburg,
Mississippi (2)
|
|
4,145
|
|
5,067
|
|
-
|
|
10
|
|
9,222
|
|
|
Caruthersville, Missouri
|
|
4,497
|
|
3,395
|
|
-
|
|
26
|
|
7,918
|
|
|
Davenport,
Iowa
|
|
8,261
|
|
2,202
|
|
-
|
|
26
|
|
10,489
|
|
|
|
|
18,652
|
|
18,790
|
|
14,400
|
|
132
|
|
51,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
|
126,316
|
|
73,537
|
|
30,549
|
|
373
|
|
230,775
|
|
|
Corporate
and Other
|
|
(41,933)
|
|
2,513
|
|
1,979
|
|
7,269
|
|
(30,172)
|
|
Total
|
|
$
84,383
|
|
$
76,050
|
|
$
32,528
|
|
$
7,642
|
|
$
200,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended April 24, 2011
|
|
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Valuation and Other Charges (4)
|
|
Stock-Based Compensation
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
13,638
|
|
$
9,335
|
|
$
-
|
|
$
82
|
|
$
23,055
|
|
|
Kansas
City, Missouri
|
|
14,619
|
|
3,614
|
|
-
|
|
29
|
|
18,262
|
|
|
Boonville,
Missouri
|
|
22,670
|
|
4,318
|
|
-
|
|
86
|
|
27,074
|
|
|
Bettendorf, Iowa
|
|
13,386
|
|
7,982
|
|
-
|
|
25
|
|
21,393
|
|
|
Marquette,
Iowa
|
|
3,780
|
|
1,645
|
|
-
|
|
30
|
|
5,455
|
|
|
Waterloo,
Iowa
|
|
17,953
|
|
6,870
|
|
-
|
|
69
|
|
24,892
|
|
|
Black
Hawk, Colorado
|
|
10,993
|
|
12,442
|
|
-
|
|
55
|
|
23,490
|
|
|
Pompano,
Florida
|
|
12,030
|
|
9,996
|
|
-
|
|
24
|
|
22,050
|
|
|
|
|
109,069
|
|
56,202
|
|
-
|
|
400
|
|
165,671
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
7,591
|
|
1,468
|
|
-
|
|
32
|
|
9,091
|
|
|
Lula,
Mississippi
|
|
12,471
|
|
7,283
|
|
-
|
|
81
|
|
19,835
|
|
|
Vicksburg,
Mississippi (2)
|
|
4,188
|
|
4,552
|
|
-
|
|
-
|
|
8,740
|
|
|
Caruthersville, Missouri
|
|
3,909
|
|
3,303
|
|
-
|
|
32
|
|
7,244
|
|
|
Davenport,
Iowa
|
|
8,171
|
|
2,278
|
|
-
|
|
33
|
|
10,482
|
|
|
|
|
36,330
|
|
18,884
|
|
-
|
|
178
|
|
55,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
|
145,399
|
|
75,086
|
|
-
|
|
578
|
|
221,063
|
|
|
Corporate
and Other
|
|
(43,468)
|
|
2,527
|
|
2,988
|
|
6,864
|
|
(31,089)
|
|
Total
|
|
$
101,931
|
|
$
77,613
|
|
$
2,988
|
|
$
7,442
|
|
$
189,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Isle of
Capri Casinos, Inc.
|
Reconciliation of Income (Loss) From Continuing
Operations to Adjusted EBITDA
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
April
29,
|
|
April
24,
|
|
April
29,
|
|
April
24,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Income
(loss) from continuing operations
|
$
(13,478)
|
|
$
8,356
|
|
$
(17,383)
|
|
$
3,735
|
|
Income tax
provision
|
17,502
|
|
8,335
|
|
15,119
|
|
6,950
|
|
Derivative
(income) expense
|
(187)
|
|
(42)
|
|
(439)
|
|
1,214
|
|
Interest
income
|
(199)
|
|
(541)
|
|
(819)
|
|
(1,903)
|
|
Interest
expense
|
22,466
|
|
23,224
|
|
87,905
|
|
91,935
|
|
Depreciation and amortization
|
17,924
|
|
19,664
|
|
76,050
|
|
77,613
|
|
Stock-based compensation
|
1,389
|
|
1,534
|
|
7,642
|
|
7,442
|
|
Valuation
charges and other (4)
|
32,528
|
|
2,988
|
|
32,528
|
|
2,988
|
|
Insurance
recoveries (3)
|
(8,654)
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
$
69,291
|
|
$
63,518
|
|
$
200,603
|
|
$
189,974
|
Isle of
Capri Casinos, Inc.
|
Reconciliations of GAAP Net Income (Loss) to
Adjusted Net Income (Loss) and GAAP Net Income (Loss) Per Share to
Adjusted Net Income (Loss) Per Share
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
April
29,
|
|
April
24,
|
|
April
29,
|
|
April
24,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP net
income (loss)
|
$
(124,791)
|
|
$
10,871
|
|
$
(129,753)
|
|
$
4,540
|
Insurance
recoveries (3)
|
(8,654)
|
|
-
|
|
-
|
|
-
|
Valuation
charges and other (4)
|
32,528
|
|
2,988
|
|
32,528
|
|
2,988
|
Adjustment
for taxes on above items
|
(3,790)
|
|
(1,195)
|
|
(7,251)
|
|
(1,195)
|
Tax
valuation allowance
|
8,742
|
|
-
|
|
8,742
|
|
-
|
Discontinued operations
|
111,313
|
|
(2,515)
|
|
112,370
|
|
(805)
|
Adjusted
net income
|
$
15,348
|
|
$
10,149
|
|
$
16,636
|
|
$
5,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss)
|
$
(3.20)
|
|
$
0.28
|
|
$
(3.35)
|
|
$
0.13
|
Insurance
recoveries (3)
|
(0.22)
|
|
-
|
|
-
|
|
-
|
Valuation
charges and other (4)
|
0.83
|
|
0.08
|
|
0.84
|
|
0.09
|
Adjustment
for taxes on above items
|
(0.10)
|
|
(0.03)
|
|
(0.19)
|
|
(0.03)
|
Tax
valuation allowance
|
0.22
|
|
-
|
|
0.23
|
|
-
|
Discontinued operations
|
2.85
|
|
(0.06)
|
|
2.90
|
|
(0.02)
|
Adjusted
net income per share
|
$
0.38
|
|
$
0.27
|
|
$
0.43
|
|
$
0.17
|
|
|
|
|
|
|
|
|
1.
|
Adjusted
EBITDA is "earnings before interest and other non-operating income
(expense), income taxes, stock-based compensation, valuation
charges and other unusual items (see Note 4 below) 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 they are important
components 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 operating income is included
in the financial schedules accompanying this release.
|
|
|
|
Adjusted
EBITDA margin is calculated by dividing Adjusted EBITDA by net
revenues before insurance recoveries.
|
|
|
|
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.
|
Rainbow
Casino in Vicksburg, Mississippi was acquired on June 8, 2010 and
we have included the results of Rainbow in our consolidated
financial statements subsequent to acquisition.
|
|
|
3.
|
We have received insurance
recoveries related to our flood claims associated with the flooding
along the Mississippi River in the first quarter of fiscal
2012.
|
|
|
4.
|
Valuation charges and other
in the fourth quarter and fiscal 2012 consists of a goodwill
impairment charge at our Lula, Mississippi property of $14.4
million, a charge of $16.1 million at our Lake Charles property
related to the sale of our smaller riverboat and associated gaming
license, and a charge of $2.0 million at Corporate in connection
with a legal judgment. Valuation charges and other in the fourth
quarter and fiscal 2011 consist of debt refinancing costs of $3.0
million.
|
SOURCE Isle of Capri Casinos, Inc.