ST. LOUIS, Dec. 1, 2011
/PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the
"Company") today reported financial results for the second quarter
of fiscal year 2012, the three and six month periods ended
October 23, 2011, 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
|
|
Six Months Ended
|
|
October 23,
|
|
October 24,
|
|
October 23,
|
|
October 24,
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Net revenues
|
$ 247.5
|
|
$ 246.7
|
|
$ 493.3
|
|
$ 498.6
|
Income (loss) from
continuing operations
|
(1.5)
|
|
(1.8)
|
|
(3.8)
|
|
(4.5)
|
EBITDA (1)
|
40.9
|
|
42.5
|
|
79.6
|
|
85.7
|
Net loss
|
(1.5)
|
|
(1.0)
|
|
(3.8)
|
|
(3.7)
|
Loss per share from
continuing operations
|
(0.04)
|
|
(0.06)
|
|
(0.10)
|
|
(0.14)
|
Net loss per share
|
(0.04)
|
|
(0.03)
|
|
(0.10)
|
|
(0.11)
|
Commenting on the results, President and Chief Executive Officer
Virginia McDowell said, "Even in
this uncertain economic environment, I am confident that we are
doing the right things and continuing to refine the type of
customer experience that will benefit our business and drive
profitability moving forward. As a business, we are facing the
challenges of increased competition in some of our key markets, the
possibility of still prolonged economic hardship, and our need to
continue to raise the bar on the customer experience while
maintaining fiscal responsibility during a period of
uncertainty. In spite of these challenges, I believe we are
moving in the right direction for a future of increased
profitability. On the development front, we are moving
forward with the construction of our new property in Cape Girardeau, Missouri, and we are looking
forward to building a first-class operation in Pennsylvania."
Several factors during the quarter impacted the Company's
operating results. The Company's properties in Lula, Natchez
and Vicksburg, Mississippi
continued to be affected by the impact of Mississippi River
flooding earlier in the year as business was slow to return to
pre-flood levels. In Lula, the Company operated with only one
of the two casinos until September 2,
2011. These factors led to both decreased net revenues and
increased marketing expenses associated with the effort to return
business to normal levels. The Company estimates that the impact on
second quarter EBITDA was approximately $2.0
million.
Additionally, net revenues and EBITDA were affected by the
following items: In Black Hawk, the Company began to realize
the benefit of several changes to the property. Recent
renovations to the casino floor, a new Asian-themed restaurant and
expanded poker facilities, along with improved marketing efforts
led to increased market share and a $1.7
million (29.2%) increase in EBITDA. In Boonville and
Waterloo, cost containment efforts
led to increased EBITDA of $0.4
million (6.4%) and $0.4
million (6.5%) respectively. Conversely the Company
faced challenges in a couple of the major markets as well. In
the Quad Cities, increased competition caused by the opening of the
Des Plaines, Illinois casino, as
well as road construction at the entrance of the Davenport casino, led to decreased EBITDA of
$1.1 million. Costs increased
in Lake Charles during the quarter
due to expenses associated with realigning the casino floor, as
well as refurbishments including new carpet and paint throughout
the entire facility, which are expected to be substantially
complete by the end of the calendar year.
Chief Operating Officer Arnold
Block commented, "Our spend per customer grew by about 7%
during the quarter, as we focused on marketing to our best
customers and controlling the things we can control in a tough
economy. While our volumes were down slightly, due in part to
conditions in Mississippi, this
strategy still had a net positive impact on our revenues, largely
driven by more business from our upper segment database customers,
partially offset by decreased visitation by customers in our lower
segments.
"We have been making changes both large and small at our
properties for several months that we expect to have a positive
impact on our business moving forward and improve our guest
experience. First, we recently implemented the initial trial
of our enhanced customer loyalty program at our property in
Pompano. This new program, which we expect to roll out across
the portfolio and have fully implemented by early 2013, will give
our customers more control over their rewards, more options for
ways to use their points and more incentive for repeat visitation
to our properties," Block continued.
"We will also be introducing a new buffet concept in
Boonville that we plan to extend
across the portfolio. The concept is called Farmers Pick
Buffet, and focuses on locally sourced, fresh food that will exceed
the quality often found in casino buffets. We are also
currently completing the design for the refurbishment of our
Lake Charles hotel. Lastly,
we are beginning the conversion and rebrand our Vicksburg property as a Lady Luck
Casino. The $4.5 million
project will be completed in several phases, which we expect to be
substantially complete by late spring 2012."
Chief Financial Officer Dale
Black noted, "We are dedicating our capital to the places at
our properties where we think we can successfully make targeted
improvements that will bring added excitement to our
facilities. We believe this strategy will help us achieve the
new trial visitation and increased repeat business that can have a
positive impact on earnings."
Corporate Expenses
Corporate and development expenses were $9.3 million for the quarter compared to
$10.9 million in fiscal 2011.
The decrease is primarily a result of $0.9
million in the cash portion of the long-term incentive
compensation award being awarded in the second quarter of the prior
year and $0.9 million in development
expenses in the prior year related to Cape Girardeau and Nemacolin.
Non-cash stock compensation expense was $2.3 million for the quarter compared to
$2.4 million in the second quarter of
fiscal 2011.
Insurance Claim Process
We continue to work through our various flood claims with our
insurance carriers and expect negotiations to continue for the
foreseeable future. Through November
28, 2011, we have received initial payments of $2.6 million related to the claims.
Development Update
Cape Girardeau,
Missouri: At the $125
million Isle Casino Cape Girardeau development, the Company
has made substantial progress including completion of the primary
feeder road to the property, basin and floating floor construction
and is currently erecting structural steel at the site. We still
expect to open the facility in December
2012.
The Company recently appointed Chet
Koch as General Manager of the property. Koch most
recently has served as General Manager of Isle of Capri,
Kansas City.
Nemacolin Woodlands Resort, Pennsylvania: The Company was selected,
along with Nemacolin Woodlands Resort, by the Pennsylvania Gaming
Control Board for the state's final available resort gaming license
in April 2011. An appeal of the award
has been filed by a competing party. The plaintiff's briefs have
been filed. The timeline for ultimate resolution of the
matter is not known at this time.
Lake Charles,
Louisiana: Relating to
the potential sale of the smaller of the Company's two riverboats
in Lake Charles, on November 19, 2011 voters in Bossier Parish, Louisiana approved the ballot
referendum, which would allow for the construction of a new casino
to be built by the potential buyer. Additionally, the Company
recently reached an agreement with the buyer to extend the option
period to December 30, 2011 from
November 30, 2011. If the option is
exercised, terms call for the transaction to be finalized within 30
days after exercise.
Capital Structure and Capital Expenditures
The Company had $66.2 million in
cash and cash equivalents and total debt of $1.2 billion at the end of the quarter.
Interest expense for the quarter was $21.9 million, a decrease of approximately
$1.5 million compared to the second
quarter of fiscal 2011, due to the expiration of several interest
rate swap agreements during fiscal 2011.
Capital expenditures during the quarter totaled $19.7 million, of which $7.8 million related to Cape Girardeau. The Company expects capital
expenditures for the remainder of the fiscal year to be
approximately $60 million, including
approximately $30 million in
Cape Girardeau.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Thursday, December 1, 2011 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 888-790-2948. International callers can
access the conference call by dialing 773-756-0735. The
conference call reference number is 6804531. The conference call
will be recorded and available for review starting at midnight
central on Thursday, December 1,
2011, until midnight central on Thursday, December 8, 2011, by dialing
866-484-6423; International: 203-369-1598 and access number
4423.
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 15 casino properties. The
Company owns and operates casinos domestically in Biloxi, Lula,
Natchez and Vicksburg, 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. The Company was chosen to develop a new,
Isle-branded gaming facility in Cape
Girardeau, Missouri, which is expected to open in late 2012.
Additionally, the Company and its partner Nemacolin Woodlands
Resort, were selected to be awarded a "resort license" for a casino
at Nemacolin Woodlands Resort in Pennsylvania. This award is pending an appeal
by a competing party. 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 Casino, Inc.,
Dale Black, Chief Financial
Officer-314.813.9327
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 23,
|
|
October 24,
|
|
October 23,
|
|
October 24,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ 256,021
|
|
$ 254,640
|
|
$ 509,057
|
|
$ 513,802
|
|
Rooms
|
|
10,460
|
|
10,643
|
|
21,404
|
|
21,524
|
|
Food,
beverage, pari-mutuel and other
|
|
33,715
|
|
33,997
|
|
66,853
|
|
68,088
|
|
Insurance recoveries
|
|
111
|
|
-
|
|
111
|
|
-
|
|
Gross
revenues
|
|
300,307
|
|
299,280
|
|
597,425
|
|
603,414
|
|
Less
promotional allowances
|
|
(52,836)
|
|
(52,629)
|
|
(104,147)
|
|
(104,842)
|
|
Net
revenues
|
|
247,471
|
|
246,651
|
|
493,278
|
|
498,572
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
41,869
|
|
39,979
|
|
81,905
|
|
79,588
|
|
Gaming
taxes
|
|
61,097
|
|
60,214
|
|
122,481
|
|
124,620
|
|
Rooms
|
|
2,470
|
|
2,725
|
|
5,025
|
|
5,494
|
|
Food,
beverage, pari-mutuel and other
|
|
10,559
|
|
11,123
|
|
21,727
|
|
22,291
|
|
Marine
and facilities
|
|
16,211
|
|
15,347
|
|
31,725
|
|
29,956
|
|
Marketing and administrative
|
|
64,966
|
|
63,808
|
|
129,130
|
|
127,428
|
|
Corporate and development
|
|
9,355
|
|
10,940
|
|
21,656
|
|
23,461
|
|
Depreciation and amortization
|
|
21,867
|
|
22,179
|
|
43,334
|
|
45,112
|
|
Total
operating expenses
|
|
228,394
|
|
226,315
|
|
456,983
|
|
457,950
|
|
Operating income
|
|
19,077
|
|
20,336
|
|
36,295
|
|
40,622
|
|
Interest expense
|
|
(21,877)
|
|
(23,410)
|
|
(43,702)
|
|
(47,205)
|
|
Interest income
|
|
193
|
|
467
|
|
439
|
|
941
|
|
Derivative income
(expense)
|
|
260
|
|
(743)
|
|
29
|
|
(2,230)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before
|
|
|
|
|
|
|
|
|
|
income
taxes
|
|
(2,347)
|
|
(3,350)
|
|
(6,939)
|
|
(7,872)
|
|
Income
tax benefit
|
|
890
|
|
1,537
|
|
3,159
|
|
3,404
|
|
Loss from continuing
operations
|
|
(1,457)
|
|
(1,813)
|
|
(3,780)
|
|
(4,468)
|
|
Income from discontinued
operations,
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
-
|
|
794
|
|
-
|
|
794
|
|
Net loss
|
|
$ (1,457)
|
|
$ (1,019)
|
|
$ (3,780)
|
|
$ (3,674)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share-basic
and dilutive:
|
|
|
|
|
|
|
|
|
|
Loss
from continuing operations
|
|
$ (0.04)
|
|
$ (0.06)
|
|
$ (0.10)
|
|
$ (0.14)
|
|
Income
from discontinued operations,
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
-
|
|
0.03
|
|
-
|
|
0.03
|
|
Net
loss
|
|
$ (0.04)
|
|
$ (0.03)
|
|
$ (0.10)
|
|
$ (0.11)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares
|
|
38,753,049
|
|
32,783,726
|
|
38,515,099
|
|
32,615,815
|
|
Weighted average diluted
shares
|
|
38,753,049
|
|
32,783,726
|
|
38,515,099
|
|
32,615,815
|
|
ISLE OF CAPRI CASINOS,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
October 23,
|
|
April 24,
|
|
2011
|
|
2011
|
ASSETS
|
(unaudited)
|
|
|
Current assets:
|
|
|
|
Cash and
cash equivalents
|
$ 66,207
|
|
$ 75,178
|
Marketable securities
|
27,106
|
|
22,173
|
Accounts
receivable, net
|
8,588
|
|
9,367
|
Insurance receivable
|
8,158
|
|
234
|
Income
taxes receivable
|
3,325
|
|
3,866
|
Deferred
income taxes
|
11,573
|
|
12,097
|
Prepaid
expenses and other assets
|
29,965
|
|
25,444
|
Total
current assets
|
154,922
|
|
148,359
|
Property and equipment,
net
|
1,107,159
|
|
1,113,549
|
Other assets:
|
|
|
|
Goodwill
|
345,303
|
|
345,303
|
Other
intangible assets, net
|
79,783
|
|
82,207
|
Deferred
financing costs, net
|
16,396
|
|
18,911
|
Restricted cash
|
12,454
|
|
12,810
|
Prepaid
deposits and other
|
9,815
|
|
12,749
|
Total
assets
|
$
1,725,832
|
|
$
1,733,888
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Current
maturities of long-term debt
|
$
5,386
|
|
$
5,373
|
Accounts
payable
|
26,510
|
|
26,013
|
Accrued liabilities:
|
|
|
|
Payroll
and related
|
41,353
|
|
44,187
|
Property
and other taxes
|
24,611
|
|
19,891
|
Interest
|
8,610
|
|
10,802
|
Progressive jackpots and slot club awards
|
15,807
|
|
15,280
|
Other
|
32,378
|
|
32,332
|
Total
current liabilities
|
154,655
|
|
153,878
|
Long-term debt, less
current maturities
|
1,179,530
|
|
1,187,221
|
Deferred income taxes
|
28,260
|
|
30,762
|
Other accrued
liabilities
|
36,186
|
|
36,305
|
Other long-term
liabilities
|
16,626
|
|
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 October 23, 2011 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
|
249,342
|
|
254,013
|
Retained
earnings
|
99,315
|
|
103,095
|
Accumulated other comprehensive (loss) income
|
(1,360)
|
|
(2,235)
|
|
347,718
|
|
355,294
|
Treasury
stock, 3,083,867 shares at October 23, 2011 and 3,841,283 April 24,
2011
|
(37,143)
|
|
(46,266)
|
Total
stockholders' equity
|
310,575
|
|
309,028
|
Total
liabilities and stockholders' equity
|
$
1,725,832
|
|
$
1,733,888
|
Isle of Capri Casinos,
Inc.
|
Supplemental Data - Net
Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
October 23,
|
|
October 24,
|
|
October 23,
|
|
October 24,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Properties Not Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
Biloxi, Mississippi
|
|
$ 16,045
|
|
$ 17,268
|
|
$ 34,248
|
|
$ 35,907
|
|
Lake Charles, Louisiana
|
|
32,617
|
|
31,770
|
|
68,541
|
|
65,954
|
|
Kansas City, Missouri
|
|
19,453
|
|
19,110
|
|
39,111
|
|
38,150
|
|
Boonville, Missouri
|
|
19,736
|
|
20,142
|
|
39,823
|
|
40,210
|
|
Bettendorf, Iowa
|
|
19,130
|
|
20,307
|
|
39,211
|
|
40,048
|
|
Marquette, Iowa
|
|
7,271
|
|
7,589
|
|
14,772
|
|
14,698
|
|
Waterloo, Iowa
|
|
20,601
|
|
20,054
|
|
41,101
|
|
40,988
|
|
Black Hawk, Colorado
|
|
31,905
|
|
29,893
|
|
63,266
|
|
59,937
|
|
Pompano, Florida
|
|
32,869
|
|
29,713
|
|
67,571
|
|
62,433
|
|
|
|
199,627
|
|
195,846
|
|
407,644
|
|
398,325
|
Properties Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
Natchez, Mississippi
|
|
7,036
|
|
7,299
|
|
11,061
|
|
15,369
|
|
Lula, Mississippi
|
|
14,213
|
|
15,948
|
|
23,965
|
|
33,266
|
|
Vicksburg,
Mississippi(2)
|
|
7,411
|
|
7,231
|
|
13,790
|
|
11,199
|
|
Caruthersville,
Missouri
|
|
8,204
|
|
8,248
|
|
15,416
|
|
16,639
|
|
Davenport, Iowa
|
|
10,516
|
|
11,069
|
|
20,770
|
|
22,417
|
|
|
|
47,380
|
|
49,795
|
|
85,002
|
|
98,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
|
247,007
|
|
245,641
|
|
492,646
|
|
497,215
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
464
|
|
1,010
|
|
632
|
|
1,357
|
|
|
|
|
|
|
|
|
|
|
Net Revenues from
Continuing Operations
|
|
$
247,471
|
|
$
246,651
|
|
$
493,278
|
|
$
498,572
|
Isle of Capri Casinos,
Inc.
|
Supplemental Data -
EBITDA (1)
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
October 23,
|
|
October 24,
|
|
October 23,
|
|
October 24,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Properties Not Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
Biloxi, Mississippi
|
|
$
1,525
|
|
$
1,586
|
|
$
3,341
|
|
$
3,432
|
|
Lake Charles, Louisiana
|
|
3,830
|
|
4,800
|
|
10,598
|
|
11,599
|
|
Kansas City, Missouri
|
|
4,062
|
|
4,238
|
|
8,191
|
|
8,237
|
|
Boonville, Missouri
|
|
7,082
|
|
6,657
|
|
14,278
|
|
13,549
|
|
Bettendorf, Iowa
|
|
4,680
|
|
5,586
|
|
9,683
|
|
10,051
|
|
Marquette, Iowa
|
|
1,643
|
|
1,767
|
|
3,368
|
|
3,257
|
|
Waterloo, Iowa
|
|
6,173
|
|
5,797
|
|
11,956
|
|
11,838
|
|
Black Hawk, Colorado
|
|
7,483
|
|
5,794
|
|
14,122
|
|
12,897
|
|
Pompano, Florida
|
|
4,470
|
|
4,001
|
|
10,023
|
|
7,254
|
|
|
|
40,948
|
|
40,226
|
|
85,560
|
|
82,114
|
Properties Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
Natchez, Mississippi
|
|
1,488
|
|
2,024
|
|
2,042
|
|
4,475
|
|
Lula, Mississippi
|
|
2,026
|
|
4,305
|
|
3,209
|
|
9,504
|
|
Vicksburg,
Mississippi(2)
|
|
1,373
|
|
2,077
|
|
2,607
|
|
3,350
|
|
Caruthersville,
Missouri
|
|
1,700
|
|
1,286
|
|
2,680
|
|
3,075
|
|
Davenport, Iowa
|
|
2,299
|
|
2,527
|
|
4,555
|
|
5,320
|
|
|
|
8,886
|
|
12,219
|
|
15,093
|
|
25,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property EBITDA Before
Corporate and Other
|
|
49,834
|
|
52,445
|
|
100,653
|
|
107,838
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
(8,890)
|
|
(9,930)
|
|
(21,024)
|
|
(22,104)
|
|
|
|
|
|
|
|
|
|
|
EBITDA from Continuing
Operations
|
|
$ 40,944
|
|
$ 42,515
|
|
$ 79,629
|
|
$ 85,734
|
Isle of Capri Casinos,
Inc.
|
Supplemental Data -
Reconciliation of Operating Income to EBITDA (1)
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 23, 2011
|
|
Three Months Ended
October 24, 2010
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
Operating
|
|
and
|
|
|
|
Operating
|
|
and
|
|
|
|
|
|
Income
|
|
Amortization
|
|
EBITDA
|
|
Income
|
|
Amortization
|
|
EBITDA
|
Properties Not Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Biloxi, Mississippi
|
|
$
(695)
|
|
$
2,220
|
|
$ 1,525
|
|
$
(1,412)
|
|
$
2,998
|
|
$ 1,586
|
|
Lake Charles, Louisiana
|
|
1,475
|
|
2,355
|
|
3,830
|
|
2,456
|
|
2,344
|
|
4,800
|
|
Kansas City, Missouri
|
|
2,989
|
|
1,073
|
|
4,062
|
|
3,345
|
|
893
|
|
4,238
|
|
Boonville, Missouri
|
|
6,204
|
|
878
|
|
7,082
|
|
5,544
|
|
1,113
|
|
6,657
|
|
Bettendorf, Iowa
|
|
2,559
|
|
2,121
|
|
4,680
|
|
3,603
|
|
1,983
|
|
5,586
|
|
Marquette, Iowa
|
|
1,219
|
|
424
|
|
1,643
|
|
1,378
|
|
389
|
|
1,767
|
|
Waterloo, Iowa
|
|
4,529
|
|
1,644
|
|
6,173
|
|
4,387
|
|
1,410
|
|
5,797
|
|
Black Hawk, Colorado
|
|
4,460
|
|
3,023
|
|
7,483
|
|
2,578
|
|
3,216
|
|
5,794
|
|
Pompano, Florida
|
|
1,778
|
|
2,692
|
|
4,470
|
|
1,642
|
|
2,359
|
|
4,001
|
|
|
|
24,518
|
|
16,430
|
|
40,948
|
|
23,521
|
|
16,705
|
|
40,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez, Mississippi
|
|
1,114
|
|
374
|
|
1,488
|
|
1,656
|
|
368
|
|
2,024
|
|
Lula, Mississippi
|
|
354
|
|
1,672
|
|
2,026
|
|
2,469
|
|
1,836
|
|
4,305
|
|
Vicksburg,
Mississippi(2)
|
|
91
|
|
1,282
|
|
1,373
|
|
827
|
|
1,250
|
|
2,077
|
|
Caruthersville,
Missouri
|
|
856
|
|
844
|
|
1,700
|
|
427
|
|
859
|
|
1,286
|
|
Davenport, Iowa
|
|
1,741
|
|
558
|
|
2,299
|
|
1,961
|
|
566
|
|
2,527
|
|
|
|
4,156
|
|
4,730
|
|
8,886
|
|
7,340
|
|
4,879
|
|
12,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property Before
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other Items
|
|
28,674
|
|
21,160
|
|
49,834
|
|
30,861
|
|
21,584
|
|
52,445
|
Corporate and Other
|
|
(9,597)
|
|
707
|
|
(8,890)
|
|
(10,525)
|
|
595
|
|
(9,930)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 19,077
|
|
$ 21,867
|
|
$
40,944
|
|
$
20,336
|
|
$ 22,179
|
|
$
42,515
|
Isle of Capri Casinos,
Inc.
|
Supplemental Data -
Reconciliation of Operating Income to EBITDA (1)
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended October
23, 2011
|
|
Six Months Ended October
24, 2010
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
Operating
|
|
and
|
|
|
|
Operating
|
|
and
|
|
|
|
|
|
Income
|
|
Amortization
|
|
EBITDA
|
|
Income
|
|
Amortization
|
|
EBITDA
|
Properties Not Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Biloxi, Mississippi
|
|
$ (1,170)
|
|
$
4,511
|
|
$ 3,341
|
|
$
(2,660)
|
|
$
6,092
|
|
$ 3,432
|
|
Lake Charles, Louisiana
|
|
5,934
|
|
4,664
|
|
10,598
|
|
6,871
|
|
4,728
|
|
11,599
|
|
Kansas City, Missouri
|
|
6,179
|
|
2,012
|
|
8,191
|
|
6,481
|
|
1,756
|
|
8,237
|
|
Boonville, Missouri
|
|
12,522
|
|
1,756
|
|
14,278
|
|
11,378
|
|
2,171
|
|
13,549
|
|
Bettendorf, Iowa
|
|
5,533
|
|
4,150
|
|
9,683
|
|
6,038
|
|
4,013
|
|
10,051
|
|
Marquette, Iowa
|
|
2,512
|
|
856
|
|
3,368
|
|
2,443
|
|
814
|
|
3,257
|
|
Waterloo, Iowa
|
|
8,682
|
|
3,274
|
|
11,956
|
|
7,972
|
|
3,866
|
|
11,838
|
|
Black Hawk, Colorado
|
|
8,093
|
|
6,029
|
|
14,122
|
|
6,433
|
|
6,464
|
|
12,897
|
|
Pompano, Florida
|
|
4,698
|
|
5,325
|
|
10,023
|
|
2,532
|
|
4,722
|
|
7,254
|
|
|
|
52,983
|
|
32,577
|
|
85,560
|
|
47,488
|
|
34,626
|
|
82,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties Impacted by
Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez, Mississippi
|
|
1,308
|
|
734
|
|
2,042
|
|
3,757
|
|
718
|
|
4,475
|
|
Lula, Mississippi
|
|
(234)
|
|
3,443
|
|
3,209
|
|
5,815
|
|
3,689
|
|
9,504
|
|
Vicksburg,
Mississippi(2)
|
|
56
|
|
2,551
|
|
2,607
|
|
1,458
|
|
1,892
|
|
3,350
|
|
Caruthersville,
Missouri
|
|
1,051
|
|
1,629
|
|
2,680
|
|
1,349
|
|
1,726
|
|
3,075
|
|
Davenport, Iowa
|
|
3,433
|
|
1,122
|
|
4,555
|
|
4,187
|
|
1,133
|
|
5,320
|
|
|
|
5,614
|
|
9,479
|
|
15,093
|
|
16,566
|
|
9,158
|
|
25,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property Before
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other Items
|
|
58,597
|
|
42,056
|
|
100,653
|
|
64,054
|
|
43,784
|
|
107,838
|
Corporate and Other
|
|
(22,302)
|
|
1,278
|
|
(21,024)
|
|
(23,432)
|
|
1,328
|
|
(22,104)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 36,295
|
|
$ 43,334
|
|
$
79,629
|
|
$
40,622
|
|
$ 45,112
|
|
$
85,734
|
1.
|
EBITDA is "earnings before
interest and other non-operating income (expense), income taxes,
and depreciation and amortization." "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
|
|
Six Months Ended
|
|
October 23,
|
|
October 24,
|
|
October 23,
|
|
October 24,
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
EBITDA
|
$ 40,944
|
|
$ 42,515
|
|
$ 79,629
|
|
$ 85,734
|
Add/(deduct):
|
|
|
|
|
|
|
|
Depreciation and amortization
|
(21,867)
|
|
(22,179)
|
|
(43,334)
|
|
(45,112)
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest expense, net
|
(21,684)
|
|
(22,943)
|
|
(43,263)
|
|
(46,264)
|
Derivative income (expense)
|
260
|
|
(743)
|
|
29
|
|
(2,230)
|
Income
tax benefit
|
890
|
|
1,537
|
|
3,159
|
|
3,404
|
Income
from discontinued operations,
|
|
|
|
|
|
|
|
net of
income taxes
|
-
|
|
794
|
|
-
|
|
794
|
Net loss
|
$ (1,457)
|
|
$ (1,019)
|
|
$ (3,780)
|
|
$ (3,674)
|
|
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 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.
|
SOURCE Isle of Capri Casinos, Inc.