ST. LOUIS, Aug. 26 /PRNewswire-FirstCall/ -- Isle of Capri Casinos,
Inc. (NASDAQ:ISLE) (the "Company") today reported financial results
for the first quarter of the Company's 2010 fiscal year (the "FY"),
ended July 26, 2009, and other Company-related news. Consolidated
Results The following table outlines the Company's financial
results (dollars in millions, except per share data, unaudited):
Three Months Ended ------------------ July 26, July 27, 2009 2008
---- ---- Net revenues $259.9 $277.4 Income (loss) from continuing
operations 0.8 (2.6) Net income (loss) 0.9 (3.6) Income (loss) per
share from continuing operations 0.02 (0.09) Net income (loss) per
share 0.03 (0.12) In making the announcement, James B. Perry, the
Company's chairman and chief executive officer, said, "We believe
we continue to be well positioned to endure this period of economic
uncertainty as we have focused during the past two years on fiscal
discipline and creating a value proposition for our customers. Our
results during the quarter make clear to us that the economy
appears to be engaged in a slow, long-term recovery process, and
consumers are being more discriminating about their leisure
spending. Our operational focus has enabled us to either maintain
or increase share in most of our markets. Based upon the company's
experience in the fourth quarter last fiscal year, we believe our
cost structure will enable us to increase flow-through and achieve
solid margin improvement on incremental revenue when we see
economic improvement. "We are committed to managing our business
for long-term success, and continue to take steps to improve our
capital structure while aggressively pursuing cash-flow positive
management and acquisition opportunities. In order to capitalize on
these possible acquisition and management opportunities, we are
pleased to welcome Eric Hausler to our team as our new senior vice
president for strategic initiatives. As previously announced, we
remain on track to exit our international operations in the near
term, as we will exit the Bahamas no later than October 31, and
expect to exit our remaining UK operations by the end of the
calendar year." First Quarter Highlights During the quarter, net
revenues decreased by 6.3% to $259.9 million compared to the first
quarter of FY 2009, primarily as a result of a $12.8 million
decrease in gaming revenue. EBITDA from continuing operations for
the first quarter of FY 2010 was $ 48.4 million, compared to $53.0
million for the first quarter of FY 2009. EBITDA from continuing
operations for the first quarter of FY 2009 included a $6.0 million
valuation charge relating to the termination of a potential
development of a casino project. Property EBITDA decreased from
$69.2 million in the prior year quarter to $58.2 million. Virginia
McDowell, the Company's president and chief operating officer,
said, "First quarter results were generally in line with our
expectations at most of our properties, with the decrease in
company EBITDA primarily attributable to decreases in gaming
revenue and EBITDA at the Company's properties in Biloxi and Lula
MS, Lake Charles, LA and Bettendorf, IA. The Mississippi properties
were impacted by continuing softness in their respective markets
and an increase in unemployment rates, Bettendorf was negatively
impacted by access issues caused by bridge repairs and the opening
of a new gaming facility by one of our competitors in the Quad
Cities, and Lake Charles was negatively impacted by changes in the
promotional spend in the market. "Despite the continued economic
weakness, we have been successful in most of our markets
maintaining our customer volumes while, consistent with other
businesses dependent upon discretionary spending, our win per
patron has decreased. We expect these visitation and spending
behaviors to continue until there is a significant increase in
consumer confidence. "While unemployment has risen in a large
number of our markets, we believe we have made operational progress
through our focus on creating value for customers through our slot
programs, courtesy initiatives and amenity pricing. It is, however
evident that our year-over-year revenue and margin comparisons are
difficult because government stimulus checks during the same period
of the last fiscal year clearly had a positive impact on consumer
spending. "We were among the first gaming companies to implement
aggressive cost savings initiatives, which led us to a savings in
operating costs of almost $30 million during our last fiscal year
ended April 26, 2009. While implementing these savings, we were
successful in creating a more valued entertainment experience for
our patrons and improving our customer service metrics across the
portfolio. Moving forward, our plan is to continue to identify
targeted opportunities to reduce costs and drive incremental
revenue, to continue to strengthen our relationships with
profitable customers, and to avoid measures that would negatively
impact our performance in the long-term. "We are holding firm in
our resolve to defer the great majority of our planned renovation
and project capital expenditures until we achieve more visibility
into an economic turnaround. However, we are continuing to evaluate
the competitive landscape in Colorado to capitalize on the
opportunity presented by recent regulatory changes in that market,
and we are also looking forward to the substantial completion of
our Lady Luck conversion projects by the end of this month at our
properties in Caruthersville and Marquette." Corporate and Other
Expenses Corporate and other expenses decreased to $9.9 million for
the three months ended July 26, 2009, from $10.3 million for the
three months ended July 27, 2008. Corporate costs include cash
expenses of $2.2 million related to payments made under our
long-term incentive plan as a result of awarding long-term
incentive awards in the first quarter of fiscal 2010. Our prior
year long-term incentive awards were made during the second quarter
of fiscal 2008. Non-cash stock compensation expense decreased $1.0
million in the three months ended July 26, 2009 to $1.1 million
from $2.1 million for the three months ended July 27, 2008.
Interest expense for the quarter was $18.3 million, a decline of
approximately $5.5 million compared to the prior fiscal year,
primarily as a result of lower debt levels. Capital Structure and
Capital Expenditures As of July 26, 2009, the Company had $104.8
million in cash and cash equivalents and total debt of $1.3
billion. Capital expenditures for the three months ended July 26,
2009 totaled $4.4 million, which included approximately $2.7
million of maintenance capital expenditures. We expect maintenance
capital expenditures for the rest of the year to be approximately
$35 million. Conference Call Information Isle of Capri Casinos,
Inc. will host a conference call on Wednesday, August 26, 2009 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,
http://www.islecorp.com/, or, for domestic callers, by dialing
800-659-2032. International callers can access the conference call
by dialing 617-614-2712. The conference call access code is
95652888. This conference call will be recorded and available for
review starting at noon on August 26, 2009, until September 2,
2009, by dialing 888-286-8010 for domestic callers or 617-801-6888
for International callers. The access code will be 83031870. ISLE
OF CAPRI CASINOS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except share and per share data) (unaudited) Three
Months Ended ------------------ July 26, July 27, 2009 2008 ----
---- Revenues: Casino $263,956 $276,786 Rooms 12,261 13,706
Pari-mutuel, food, beverage and other 34,870 36,547 ------ ------
Gross revenues 311,087 327,039 Less promotional allowances (51,145)
(49,644) ------- ------- Net revenues 259,942 277,395 Operating
expenses: Casino 39,994 38,541 Gaming taxes 66,428 70,658 Rooms
2,981 3,389 Pari-mutuel, food, beverage and other 11,158 13,661
Marine and facilities 15,954 16,470 Marketing and administrative
65,117 65,354 Corporate and development 9,945 10,330 Valuation
charges - 6,000 Depreciation and amortization 28,829 31,566 ------
------ Total operating expenses 240,406 255,969 ------- -------
Operating income 19,536 21,426 Interest expense (18,347) (23,897)
Interest income 369 446 --- --- Income (loss) from continuing
operations before income taxes 1,558 (2,025) Income tax provision
(767) (615) ---- ---- Income (loss) from continuing operations 791
(2,640) Income (loss) from discontinued operations, net of income
taxes 114 (986) --- ---- Net income (loss) $905 $(3,626) ====
======= Income (loss) per common share-basic and dilutive: Income
(loss) from continuing operations $0.02 $(0.09) Income (loss) from
discontinued operations, net of income taxes 0.01 (0.03) ---- -----
Net income (loss) $0.03 $(0.12) ===== ====== Weighted average basic
shares 31,799,100 30,866,687 Weighted average diluted shares
31,855,101 30,866,687 ISLE OF CAPRI CASINOS, INC. CONSOLIDATED
BALANCE SHEETS (In thousands, except per share amounts) July 26,
April 26, 2009 2009 ---- ---- ASSETS (unaudited) ------ Current
assets: Cash and cash equivalents $104,784 $96,654 Marketable
securities 18,644 17,548 Accounts receivable, net 7,746 11,935
Income taxes receivable 5,473 7,744 Deferred income taxes 16,295
16,295 Prepaid expenses and other assets 36,157 23,234 Assets held
for sale 4,557 4,183 ----- ----- Total current assets 193,656
177,593 Property and equipment, net 1,155,156 1,177,540 Other
assets: Goodwill 313,136 313,136 Other intangible assets, net
82,610 83,588 Deferred financing costs, net 8,721 9,314 Restricted
cash 2,774 2,774 Prepaid deposits and other 18,482 18,717 ------
------ Total assets $1,774,535 $1,782,662 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current
maturities of long-term debt $9,808 $9,688 Accounts payable 18,532
16,246 Accrued liabilities: Interest 14,771 9,280 Payroll and
related 45,159 47,209 Property and other taxes 36,626 31,487 Other
48,688 52,195 Liabilities related to assets held for sale 2,173
1,888 ----- ----- Total current liabilities 175,757 167,993
Long-term debt, less current maturities 1,270,059 1,291,384
Deferred income taxes 27,758 24,970 Other accrued liabilities
50,899 52,575 Other long-term liabilities 17,563 17,314
Stockholders' equity: Preferred stock, $.01 par value; 2,000,000
shares authorized; none issued - - Common stock, $.01 par value;
45,000,000 shares authorized; shares issued: 36,614,478 at July 26,
2009 and 36,111,089 at April 26, 2009 366 361 Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued - -
Additional paid-in capital 194,845 193,827 Retained earnings
102,733 101,828 Accumulated other comprehensive (loss) income
(13,313) (15,191) -------- ------- 284,631 280,825 Treasury stock,
4,327,623 shares at July 26, 2009 and 4,340,436 shares at April 26,
2009 (52,132) (52,399) -------- ------- Total stockholders' equity
232,499 228,426 ------- ------- Total liabilities and stockholders'
equity $1,774,535 $1,782,662 ========== ========== Isle of Capri
Casinos, Inc. Supplemental Data - Net Revenues (unaudited, in
thousands) Three Months Ended ------------------ July 26, July 27,
2009 2008 ---- ---- Mississippi Biloxi $20,314 $24,343 Natchez
8,573 8,585 Lula 17,728 18,401 ------ ------ Mississippi Total
46,615 51,329 ------ ------ Louisiana Lake Charles 37,614 41,175
------ ------ Missouri Kansas City 19,485 18,211 Boonville 20,072
20,234 Caruthersville 8,332 7,815 ----- ----- Missouri Total 47,889
46,260 ------ ------ Iowa Bettendorf 21,166 26,127 Davenport 12,453
10,584 Marquette 7,477 8,488 Waterloo 19,876 19,599 ------ ------
Iowa Total 60,972 64,798 ------ ------ Colorado Black Hawk 33,790
33,189 ------ ------ Florida Pompano 30,798 36,902 ------ ------
International Our Lucaya 2,134 3,573 ----- ----- Property Net
Revenues before Other 259,812 277,226 Other 130 169 --- --- Net
Revenues from Continuing Operations $259,942 $277,395 ========
======== Isle of Capri Casinos, Inc. Supplemental Data - EBITDA (1)
(unaudited, in thousands) Three Months Ended ------------------
July 26, July 27, 2009 2008 ---- ---- Mississippi Biloxi $2,385
$4,913 Natchez 2,733 2,978 Lula 4,655 6,100 ----- ----- Mississippi
Total 9,773 13,991 ----- ------ Louisiana Lake Charles 7,582 10,687
----- ------ Missouri Kansas City 4,452 3,618 Boonville 6,776 6,348
Caruthersville 1,753 1,703 ----- ----- Missouri Total 12,981 11,669
------ ------ Iowa Bettendorf 5,982 9,570 Davenport 3,614 3,200
Marquette 1,772 2,420 Waterloo 5,848 6,133 ----- ----- Iowa Total
17,216 21,323 ------ ------ Colorado Black Hawk 8,565 9,408 -----
----- Florida Pompano 2,463 2,231 ----- ----- International Our
Lucaya (401) (156) ---- ---- Property EBITDA Before Corporate and
Other Items 58,179 69,153 Corporate and Other (9,814) (10,161)
------ ------- EBITDA Before Other Items 48,365 58,992 Other Items:
Valuation Charges (2) - (6,000) - ------ EBITDA from Continuing
Operations $48,365 $52,992 ======= ======= Isle of Capri Casinos,
Inc. Supplemental Data - Reconciliation of Operating Income to
EBITDA (1) (2) (unaudited, in thousands) Three Months Ended Three
Months Ended July 26, 2009 July 27, 2008
--------------------------- ---------------------------
Depreciation Depreciation Operating and Operating and Income
Amortization EBITDA Income Amortization EBITDA ------ ------------
------ ------ ------------ ------ Mississippi Biloxi $(1,268)
$3,653 $2,385 $362 $4,551 $4,913 Natchez 2,137 596 2,733 2,093 885
2,978 Lula 2,441 2,214 4,655 3,847 2,253 6,100 ----- ----- -----
----- ----- ----- Mississippi Total 3,310 6,463 9,773 6,302 7,689
13,991 ----- ----- ----- ----- ----- ------ Louisiana Lake Charles
4,843 2,739 7,582 7,389 3,298 10,687 ----- ----- ----- ----- -----
------ Missouri Kansas City 3,355 1,097 4,452 2,354 1,264 3,618
Boonville 5,592 1,184 6,776 5,139 1,209 6,348 Caruthersville 838
915 1,753 572 1,131 1,703 --- --- ----- --- ----- ----- Missouri
Total 9,785 3,196 12,981 8,065 3,604 11,669 ----- ----- ------
----- ----- ------ Iowa Bettendorf 3,635 2,347 5,982 7,269 2,301
9,570 Davenport 2,658 956 3,614 2,073 1,127 3,200 Marquette 1,073
699 1,772 1,729 691 2,420 Waterloo 2,899 2,949 5,848 3,319 2,814
6,133 ----- ----- ----- ----- ----- ----- Iowa Total 10,265 6,951
17,216 14,390 6,933 21,323 ------ ----- ------ ------ ----- ------
Colorado Black Hawk 4,694 3,871 8,565 4,920 4,488 9,408 ----- -----
----- ----- ----- ----- Florida Pompano (1,807) 4,270 2,463 (1,975)
4,206 2,231 ------ ----- ----- ------ ----- ----- International Our
Lucaya (403) 2 (401) (160) 4 (156) ---- --- ---- ---- --- ----
Total Property Before Corporate and Other Items 30,687 27,492
58,179 38,931 30,222 69,153 Corporate and Other (11,151) 1,337
(9,814) (11,505) 1,344 (10,161) ------- ----- ------ ------- -----
------- Total Before Other Items 19,536 28,829 48,365 27,426 31,566
58,992 Other Items: Valuation Charges (2) - - - (6,000) - (6,000)
--- --- --- ------ --- ------ Total From Continuing Operations
$19,536 $28,829 $48,365 $21,426 $31,566 $52,992 ======= =======
======= ======= ======= ======= 1. EBITDA is "earnings before
interest and other non-operating income (expense), income taxes,
and depreciation and amortization." EBITDA is presented after
consideration of minority interest. "Property EBITDA" is EBITDA
before Corporate and development expenses and minority interest.
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 EBITDA and
Property 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. 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
EBITDA. Also, other gaming companies that report EBITDA information
may calculate EBITDA in a different manner than the Company. A
reconciliation of EBITDA and Property EBITDA to operating income is
included in the financial schedules accompanying this release. A
reconciliation of EBITDA to the Company's net income (loss) is
shown below (in thousands). Three Months Ended ------------------
July 26, July 27, 2009 2008 ---- ---- EBITDA $48,365 $52,992
Add/(deduct): Depreciation and amortization (28,829) (31,566)
Interest expense: Interest expense, net (17,978) (23,451) Income
tax (provision) benefit (767) (615) Income (loss) from discontinued
operations, net of income taxes 114 (986) --- ---- Net income
(loss) $905 $(3,626) ==== ======= Certain of our debt agreements
use "Adjusted EBITDA" as a financial measure for the calculation of
financial debt covenants. Adjusted EBITDA differs from EBITDA as
Adjusted EBITDA includes add back of items such as gain on early
extinguishment of debt, pre-opening expenses, certain write-offs
and valuation expenses, and stock compensation expense. Reference
can be made to the definition of Adjusted EBITDA in the applicable
debt agreements on file as Exhibits to our filing with the
Securities and Exchange Commission. 2. Valuation charges of $6.0
million for the three months ended July 27, 2008 reflect a charge
representing the cancellation of our rights to acquire land
including a $1.0 million termination fee, related to the potential
development of a casino project in the Portland, Oregon area. About
Isle of Capri Casinos, Inc. Isle of Capri Casinos, Inc., founded in
1992, is dedicated to providing its customers with an exceptional
gaming and entertainment experience at each of its 17 casino
properties. The Company owns and operates casinos domestically in
Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana;
Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville,
Caruthersville and Kansas City, Missouri; two casinos in Black
Hawk, Colorado; and a casino and harness track in Pompano Beach,
Florida. More information is available at the Company's website,
http://www.islecorp.com/. Forward-Looking Statement 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., Dale Black, Chief Financial
Officer-314.813.9327 Jill Haynes, Senior Director of Corporate
Communication-314.813.9368 NOTE: Other Isle of Capri Casinos, Inc.
press releases and a corporate profile are available at
http://www.prnewswire.com/. Isle of Capri Casinos, Inc.'s home page
is http://www.islecorp.com/. Available Topic Expert(s): For
information on the listed expert(s), click appropriate link. James
Perry
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=74947
Virginia McDowell
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=72331
Dale Black
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=74948
DATASOURCE: Isle of Capri Casinos, Inc. CONTACT: Dale Black, Chief
Financial Officer, +1-314-813-9327, or Jill Haynes, Senior Director
of Corporate Communication, +1-314-813-9368, both of Isle of Capri
Casinos, Inc. Web Site: http://www.islecorp.com/
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