ST. LOUIS, June 6, 2013 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) ("Isle") today reported financial
results for the fourth fiscal quarter and fiscal year ended
April 28, 2013.
2013 Fourth Quarter Financial Highlights
- Net revenues, excluding insurance recoveries in the fourth
quarter of fiscal 2012, declined from $282.4
million to $268.1 million, and Consolidated Adjusted EBITDA
decreased from $69.8 million to
$59.1 million.
- Adjusted income per share, which normalizes for the effect of
non-recurring and unusual items, was $0.24 compared to $0.39 in the prior year period.
- The extra week in fiscal 2012 is estimated to have an
approximately $18 million impact on
net revenues and an approximately $5
million impact on Consolidated Adjusted EBITDA, or
approximately $0.13 in adjusted
income per share.
Discussing the results, president and chief executive officer
Virginia McDowell said, "Consistent
with other regional gaming companies, the quarter presented a
difficult operating environment in our markets, as the combination
of continuing economic challenges, changes in payroll tax rates and
the delay in income tax refunds led to softer business levels at
our casinos. In addition, when compared to the extremely mild
winter in fiscal 2012, there was significant impact from
weather-related disruptions in the fiscal 2013 quarter.
Finally, the fourth quarter of fiscal 2012 contained an extra
14th week compared to 13 weeks in this year's
quarter. Adjusting for the extra week in fiscal 2012 and last
year's insurance recoveries, we believe our results were in-line
with other regional casino operators."
Summary of Consolidated Operating Results
The following table outlines the Company's financial results
(dollars in millions, except per share data, unaudited):
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
April
28,
|
|
April
29,
|
|
April
28,
|
|
April
29,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net
revenues
|
$
268.1
|
|
$
291.0
|
|
$
965.2
|
|
$
977.4
|
Net revenues,
excluding insurance recoveries
|
268.1
|
|
282.4
|
|
965.2
|
|
967.7
|
Consolidated Adjusted
EBITDA (1)
|
59.1
|
|
69.8
|
|
184.8
|
|
201.2
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
(45.4)
|
|
(13.5)
|
|
(46.0)
|
|
(17.4)
|
Income (loss) from
discontinued operations
|
-
|
|
(111.3)
|
|
(1.6)
|
|
(112.4)
|
Net income
(loss)
|
(45.4)
|
|
(124.8)
|
|
(47.6)
|
|
(129.8)
|
Diluted income (loss)
per share from continuing operations
|
(1.15)
|
|
(0.35)
|
|
(1.17)
|
|
(0.45)
|
Diluted income (loss)
per share from discontinued operations
|
-
|
|
(2.85)
|
|
(0.04)
|
|
(2.90)
|
Diluted income (loss)
per share
|
(1.15)
|
|
(3.20)
|
|
(1.21)
|
|
(3.35)
|
Adjusted income
(loss) per share (2)
|
0.24
|
|
0.39
|
|
0.39
|
|
0.45
|
(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 Net Income (Loss) to Adjusted Income (Loss)
and GAAP Net Income (Loss) Per Share to Adjusted Income (Loss) Per
Share."
|
In addition to the extra week in fiscal 2012, the following
items impacted income from continuing operations during the
quarters and years ended April 28,
2013 and April 29,
2012:
- Net revenues and operating income for the fourth quarter of
fiscal year 2012 included $8.6
million of insurance recoveries received as a result of
business interruption claims related to flooding along the
Mississippi River.
- The Company recorded $50.1
million in impairment charges in fiscal 2013 and
$30.5 in fiscal 2012.
- Pre-opening expenses were $1.0
million higher than in the fiscal 2012 quarter due to the
impending opening of the new Lady Luck Nemacolin Casino.
- Depreciation and amortization increased from $17.9 million to $20.4
million primarily as a result of the opening our
Cape Girardeau, Missouri
casino.
- Interest expense in the fourth quarter of fiscal 2013 includes
approximately $2.2 million in charges
related to the Company's recently completed financing
transactions.
McDowell continued, "Fiscal 2013 was marked by tremendous
progress in our efforts to renew our asset base, even in a
challenging operating environment. We opened Cape Girardeau, rebranded Vicksburg as a new Lady Luck, completed the
sale of Biloxi, renovated our
hotels in Lake Charles and Black
Hawk and introduced many new outlets of our popular food and
beverage concepts, including the Farmer's Pick Buffet and Otis
& Henry's Bar & Grill.
"We are aggressively implementing cost efficiencies at our
properties and corporate office that we expect to save us
approximately $2 million per year, including the consolidation of
our two Black Hawk properties under a single management team, and
efficiencies at our corporate office through cost-reductions and
attrition. In connection with these moves we incurred approximately
$0.9 million in severance expenses in
the fourth quarter.
"The ramp of our Cape Girardeau
property has been slower than expected. While we were successful in
building our database during the fourth quarter, our promotional
spending did not generate the desired results. Recently introduced
measures aimed at rationalizing our marketing programs and reducing
operating costs should have a positive impact on EBITDA moving
forward.
"In addition, we are looking forward to the debut of our new,
flagship Lady Luck property at Nemacolin Woodlands Resort in
western Pennsylvania. Lady Luck Nemacolin is scheduled to
open to the public on July
1st, pending final regulatory approvals.
And we are looking forward to continuing to work closely with our
partner in Philadelphia as the
Gaming Control Board outlines next steps in the competitive
licensing process for the remaining Category 2 gaming license in
Pennsylvania."
Fourth Quarter Property Operating Results
As previously stated the fourth quarter of fiscal 2012 contained
14 weeks compared to 13 weeks in the fiscal 2013 quarter.
This fact would lead to an approximately 7% reduction in net
revenue and Adjusted EBITDA on a comparable basis before any other
factors are considered.
Black Hawk – Net revenues decreased $2.8 million to $31.2
million and Adjusted EBITDA decreased $1.7 million to $7.8
million. Results were negatively impacted by weather,
as the market experienced 17 days of snow compared to only 6 days
in the prior year and a year-over-year increase in the gaming tax
rate, which resulted in $0.3 million
in additional gaming taxes.
Pompano – Net revenues decreased from $48.5 million to $46.4
million and Adjusted EBITDA decreased $1.0 million to $9.8
million, attributable to increased marketing and a
heightened promotional environment during the quarter.
Iowa – Net revenues
decreased $4.8 million (7.2%) to
$61.8 million and Adjusted EBITDA
decreased $2.5 million to
$17.8 million. In Davenport, we
were closed for eight days in April due to flooding. We
estimate that this had approximately $0.5
million impact on Adjusted EBITDA. In Waterloo, we are
currently renovating the casino bar and building a Farmers Pick
Buffet. Severe winter weather impacted results during 5 of
the 13 weeks of the quarter.
Lake Charles – Net
revenues decreased from $38.7 million
to $32.9 million and Adjusted EBITDA
decreased $1.2 million to
$6.0 million primarily as a result of
increased competitive pressures.
Missouri – Combined net
revenues in Boonville,
Caruthersville and Kansas City decreased $8.5 million to $47.9
million and Adjusted EBITDA decreased $2.6 million to $14.5
million. In Boonville
results were hampered by significantly worse weather year over year
and construction late in the quarter when we began renovations to
our casino floor and Lone Wolf bar.
In Caruthersville, we have shifted
our marketing dollars to new territories, leading to improved
revenue from west Tennessee;
however the property was still impacted by the opening of Cape
Girardeau. In Kansas City, we continue to face the ramp-up of
new competition which opened in the prior year quarter, and severe
weather impacted results.
Cape Girardeau generated net
revenues of $16.7 million and
Adjusted EBITDA $1.6 million. We
recently made significant changes to our management and marketing
strategy that, we believe, will benefit EBITDA moving forward as we
refine our operations in the developing market.
Mississippi – Net
revenues decreased $6.7 million to
$31.0 million and Adjusted EBITDA
decreased $4.4 million to
$7.8 million. The Mississippi market continues to feel the
impact of a sluggish economy. All of our casinos in
Mississippi felt the impact of the
delayed IRS refunds as the amount of refund checks cashed fell by
22%. In Vicksburg, increased market share at our newly
rebranded Lady Luck were not enough to offset an overall 7% decline
in market revenue. Vicksburg
revenues decreased $1.1 million to
$9.3 million and Adjusted EBITDA
decreased $1.3 million to
$2.8 million. New competition in
Natchez led to a $2.7 million decrease in net revenue and a
$2.3 million decrease in Adjusted
EBITDA, as we are aggressively positioning to maintain market
share.
Corporate Expenses
Corporate and development expenses were $7.2 million for the quarter, a decrease of
$3.6 million compared to prior year,
primarily due to reduced incentive compensation of $3.5 million, as we did not meet the threshold
annual performance level under our management incentive program,
and reduced insurance costs of approximately $0.7 million, offset by $0.9 million in severance expenses. In addition,
non-cash stock compensation expense was $0.9
million for the quarter compared to $1.3 million in the fourth quarter of fiscal
2012.
For the fiscal year, non-cash stock compensation expense was
$4.8 million, compared to
$7.3 million in fiscal 2012.
Development
Nemacolin Woodlands Resort, Pennsylvania –
Lady Luck Nemacolin is scheduled to open to the public July 1, 2013, subject to final regulatory
approval. Lady Luck Nemacolin is planned to include 600 slot
machines, 28 table games and two food and beverage outlets.
The Company expects the total project to cost approximately
$60 million, including $12.5 million in licensing fees.
Philadelphia,
Pennsylvania – On February 1,
2013, we entered into an agreement with Tower Entertainment,
LLC, to operate the proposed $700
million casino entertainment complex, dubbed The Provence,
in Philadelphia, if selected for
licensure by the Pennsylvania Gaming Control Board. As
proposed the 1.25 million square foot project is expected to
include a 125-room hotel, a casino featuring approximately
3,000 electronic gaming machines and 150 table games, as well as a
rooftop village, concert hall, 8 restaurants, private swim club,
night club, retail shopping and meeting and event space. The
Pennsylvania Gaming Control Board has held public input hearings
for the competitors for Pennsylvania's final remaining slot machine
and table games licenses. The Pennsylvania Gaming Control
Board has not announced a timeline for suitability hearings or
eventual licensure.
Capital Structure and FY 2014 Guidance
As of April 28, 2013, the Company
had:
- $68.5 million in cash and cash
equivalents, excluding $11.4 million
in restricted cash and investments;
- $1.2 billion in total debt;
and
- $90 million in net line of credit
availability.
Fiscal year 2013 capital expenditures were $153.2 million, of which $79.0 million related to our new casino in
Cape Girardeau, $23.7 million related to the development of Lady
Luck Nemacolin, and $50.5 million
related to maintenance capital and projects at our existing
properties.
The Company provided guidance for the following specific
non-operating items for fiscal year 2014:
- Depreciation and amortization expense is expected to be
approximately $91 million to $93
million.
- The Company expects cash income taxes pertaining to FY 2014
operations to be less than $2
million, primarily representing state income taxes.
- Interest expense is expected to be approximately $88 million to $90 million, net of capitalized
interest.
- Corporate and development expenses for FY 2014 are expected to
be approximately $34 million,
including approximately $5 million in
non-cash stock compensation expense.
- Capital expenditures for FY 2014 are expected to be
approximately $80 million to $83
million, including approximately $30
million for the completion of Lady Luck Nemacolin.
- We expect to incur approximately $2.5
million of incremental pre-opening expenses related to Lady
Luck Nemacolin.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
June 6, 2013 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 1955456. The conference call
will be recorded and available for review starting at midnight
central on June 6, 2013, until
midnight central on June 13, 2013, by
dialing 866-422-8156; International: 203-369-0832 and access number
4589.
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 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 at 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.
CONTACTS:
Isle of Capri Casinos, 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
|
|
Twelve Months
Ended
|
|
|
|
April
28,
|
|
April
29,
|
|
April
28,
|
|
April
29,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$
282,684
|
|
$
294,940
|
|
$
1,016,005
|
|
$
1,006,523
|
|
Rooms
|
|
8,063
|
|
8,631
|
|
31,851
|
|
32,438
|
|
Food, beverage,
pari-mutuel and other
|
|
37,385
|
|
37,275
|
|
133,377
|
|
128,560
|
|
Insurance
recoveries
|
|
-
|
|
8,654
|
|
-
|
|
9,637
|
|
Gross
revenues
|
|
328,132
|
|
349,500
|
|
1,181,233
|
|
1,177,158
|
|
Less
promotional allowances
|
|
(60,058)
|
|
(58,480)
|
|
(216,034)
|
|
(199,787)
|
|
Net
revenues
|
|
268,074
|
|
291,020
|
|
965,199
|
|
977,371
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Casino
|
|
41,715
|
|
41,900
|
|
156,179
|
|
153,743
|
|
Gaming
taxes
|
|
71,569
|
|
73,225
|
|
255,105
|
|
251,780
|
|
Rooms
|
|
1,727
|
|
1,762
|
|
6,686
|
|
7,027
|
|
Food, beverage,
pari-mutuel and other
|
|
12,164
|
|
12,185
|
|
42,472
|
|
41,281
|
|
Marine and
facilities
|
|
14,854
|
|
14,421
|
|
56,421
|
|
57,225
|
|
Marketing and
administrative
|
|
60,714
|
|
61,635
|
|
236,146
|
|
234,470
|
|
Corporate and
development
|
|
7,197
|
|
10,831
|
|
33,953
|
|
40,248
|
|
Valuation
charges
|
|
50,100
|
|
30,549
|
|
50,100
|
|
30,549
|
|
Preopening
|
|
1,446
|
|
484
|
|
5,765
|
|
615
|
|
Depreciation
and amortization
|
|
20,357
|
|
17,924
|
|
73,419
|
|
76,050
|
|
Total
operating expenses
|
|
281,843
|
|
264,916
|
|
916,246
|
|
892,988
|
|
Operating
income
|
|
(13,769)
|
|
26,104
|
|
48,953
|
|
84,383
|
|
Interest
expense
|
|
(25,036)
|
|
(22,466)
|
|
(89,461)
|
|
(87,905)
|
|
Interest
income
|
|
96
|
|
199
|
|
502
|
|
819
|
|
Derivative income
(expense)
|
|
216
|
|
187
|
|
748
|
|
439
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before
income
taxes
|
|
|
|
|
|
|
|
|
|
|
(38,493)
|
|
4,024
|
|
(39,258)
|
|
(2,264)
|
|
Income tax
provision
|
|
(6,898)
|
|
(17,502)
|
|
(6,732)
|
|
(15,119)
|
|
Income (loss) from
continuing operations
|
|
(45,391)
|
|
(13,478)
|
|
(45,990)
|
|
(17,383)
|
|
Income (loss)
from discontinued operations,
net of income
taxes
|
|
|
|
|
|
|
|
|
|
|
-
|
|
(111,313)
|
|
(1,579)
|
|
(112,370)
|
|
Net income
(loss)
|
|
$
(45,391)
|
|
$
(124,791)
|
|
$
(47,569)
|
|
$
(129,753)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-basic:
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
|
$
(1.15)
|
|
$
(0.35)
|
|
$
(1.17)
|
|
$
(0.45)
|
|
Income (loss)
from discontinued operations,
net of
income taxes
|
|
|
|
|
|
|
|
|
|
|
-
|
|
(2.85)
|
|
(0.04)
|
|
(2.90)
|
|
Net income
(loss)
|
|
$
(1.15)
|
|
$
(3.20)
|
|
$
(1.21)
|
|
$
(3.35)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-dilutive:
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
|
$
(1.15)
|
|
$
(0.35)
|
|
$
(1.17)
|
|
$
(0.45)
|
|
Income (loss)
from discontinued operations,
net of
income taxes
|
|
|
|
|
|
|
|
|
|
|
-
|
|
(2.85)
|
|
(0.04)
|
|
(2.90)
|
|
Net income
(loss)
|
|
$
(1.15)
|
|
$
(3.20)
|
|
$
(1.21)
|
|
$
(3.35)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
|
39,518,406
|
|
38,982,281
|
|
39,340,325
|
|
38,753,098
|
|
Weighted average
diluted shares
|
|
39,518,406
|
|
38,982,281
|
|
39,340,325
|
|
38,753,098
|
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share amounts)
|
|
|
|
|
|
April
28,
|
|
April
29,
|
|
2013
|
|
2012
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
68,469
|
|
$
94,461
|
Marketable
securities
|
25,520
|
|
24,943
|
Accounts receivable,
net
|
11,077
|
|
6,941
|
Insurance
receivable
|
-
|
|
7,497
|
Income taxes
receivable
|
4,789
|
|
2,161
|
Deferred income
taxes
|
1,573
|
|
627
|
Prepaid expenses and
other assets
|
20,872
|
|
18,950
|
Assets held for
sale
|
-
|
|
46,703
|
Total current
assets
|
132,300
|
|
202,283
|
Property and
equipment, net
|
1,034,026
|
|
950,014
|
Other
assets:
|
|
|
|
Goodwill
|
280,803
|
|
330,903
|
Other intangible
assets, net
|
60,748
|
|
56,586
|
Deferred financing
costs, net
|
27,230
|
|
13,205
|
Restricted cash and
investments
|
11,417
|
|
12,551
|
Prepaid deposits and
other
|
7,075
|
|
9,428
|
Total
assets
|
$
1,553,599
|
|
$
1,574,970
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
415
|
|
$
5,393
|
Accounts
payable
|
34,533
|
|
23,536
|
Accrued
liabilities:
|
|
|
|
Payroll and
related
|
35,093
|
|
38,566
|
Property and other
taxes
|
21,340
|
|
19,522
|
Interest
|
18,502
|
|
9,296
|
Progressive jackpots
and slot club awards
|
16,579
|
|
14,892
|
Liabilities related
to assets held for sale
|
-
|
|
4,362
|
Other
|
29,337
|
|
40,549
|
Total current
liabilities
|
155,799
|
|
156,116
|
Long-term debt, less
current maturities
|
1,156,469
|
|
1,149,038
|
Deferred income
taxes
|
43,104
|
|
36,057
|
Other accrued
liabilities
|
33,303
|
|
33,583
|
Other long-term
liabilities
|
22,514
|
|
16,556
|
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
28, 2013 and 42,066,148 at April 29, 2012
|
421
|
|
421
|
Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued
|
-
|
|
-
|
Additional paid-in
capital
|
246,214
|
|
247,855
|
Retained earnings
(deficit)
|
(74,227)
|
|
(26,658)
|
Accumulated other
comprehensive (loss) income
|
(247)
|
|
(855)
|
|
172,161
|
|
220,763
|
Treasury stock,
2,470,128 shares at April 28, 2013 and 3,083,867 April 29,
2012
|
(29,751)
|
|
(37,143)
|
Total stockholders'
equity
|
142,410
|
|
183,620
|
Total liabilities and
stockholders' equity
|
$
1,553,599
|
|
$
1,574,970
|
Isle of Capri
Casinos, Inc.
|
Supplemental Data
- Net Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
April
28,
|
|
April
29,
|
|
April
28,
|
|
April
29,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Properties Not
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
$
32,884
|
|
$
38,714
|
|
$
125,575
|
|
$
138,634
|
|
Kansas City,
Missouri
|
|
19,493
|
|
22,554
|
|
73,538
|
|
80,703
|
|
Boonville,
Missouri
|
|
20,055
|
|
23,315
|
|
78,624
|
|
81,796
|
|
Cape Girardeau,
Missouri
|
|
16,671
|
|
|
|
32,782
|
|
|
|
Bettendorf,
Iowa
|
|
20,642
|
|
21,715
|
|
78,083
|
|
79,156
|
|
Marquette,
Iowa
|
|
6,889
|
|
7,357
|
|
27,605
|
|
28,036
|
|
Waterloo,
Iowa
|
|
23,547
|
|
24,721
|
|
86,654
|
|
86,484
|
|
Black Hawk,
Colorado
|
|
31,233
|
|
34,073
|
|
122,135
|
|
124,051
|
|
Pompano,
Florida
|
|
46,393
|
|
48,538
|
|
154,629
|
|
154,740
|
|
|
|
217,807
|
|
220,987
|
|
779,625
|
|
773,600
|
Properties Impacted
by Flooding
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
6,286
|
|
9,009
|
|
25,378
|
|
26,739
|
|
Lula,
Mississippi
|
|
15,454
|
|
18,300
|
|
55,444
|
|
56,070
|
|
Vicksburg,
Mississippi
|
|
9,296
|
|
10,437
|
|
29,918
|
|
31,937
|
|
Caruthersville,
Missouri
|
|
8,356
|
|
10,539
|
|
32,282
|
|
33,890
|
|
Davenport,
Iowa
|
|
10,680
|
|
12,769
|
|
41,794
|
|
44,055
|
|
|
|
50,072
|
|
61,054
|
|
184,816
|
|
192,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
|
267,879
|
|
282,041
|
|
964,441
|
|
966,291
|
|
|
|
|
|
|
|
|
|
|
Insurance
Recoveries(2)
|
|
|
|
|
|
|
|
|
|
Natchez
|
|
-
|
|
1,485
|
|
-
|
|
1,904
|
|
Lula
|
|
-
|
|
5,455
|
|
-
|
|
5,455
|
|
Vicksburg
|
|
-
|
|
703
|
|
-
|
|
758
|
|
Caruthersville
|
|
-
|
|
751
|
|
-
|
|
1,149
|
|
Davenport
|
|
-
|
|
260
|
|
-
|
|
371
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
195
|
|
325
|
|
758
|
|
1,443
|
|
|
|
|
|
|
|
|
|
|
Net Revenues from
Continuing Operations
|
|
$
268,074
|
|
$
291,020
|
|
$
965,199
|
|
$
977,371
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 28, 2013
|
|
|
|
Operating
Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Valuation Charges
(3)
|
|
Stock-Based
Compensation
|
|
Preopening
|
|
Adjusted EBITDA
(1)
|
Properties Not
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
$
2,893
|
|
$
3,057
|
|
$
-
|
|
$
6
|
|
$
-
|
|
$
5,956
|
|
Kansas City,
Missouri
|
|
4,208
|
|
992
|
|
-
|
|
4
|
|
-
|
|
5,204
|
|
Boonville,
Missouri
|
|
6,251
|
|
896
|
|
-
|
|
5
|
|
-
|
|
7,152
|
|
Cape Girardeau,
Missouri
|
|
(1,177)
|
|
2,810
|
|
-
|
|
4
|
|
-
|
|
1,637
|
|
Bettendorf,
Iowa
|
|
4,211
|
|
1,737
|
|
-
|
|
3
|
|
-
|
|
5,951
|
|
Marquette,
Iowa
|
|
978
|
|
556
|
|
-
|
|
3
|
|
-
|
|
1,537
|
|
Waterloo,
Iowa
|
|
6,627
|
|
1,194
|
|
-
|
|
6
|
|
-
|
|
7,827
|
|
Black Hawk,
Colorado
|
|
5,443
|
|
2,303
|
|
-
|
|
11
|
|
-
|
|
7,757
|
|
Pompano,
Florida
|
|
7,981
|
|
1,846
|
|
-
|
|
7
|
|
-
|
|
9,834
|
|
Nemacolin,
Pennsylvania
|
|
(1,446)
|
|
-
|
|
-
|
|
-
|
|
1,446
|
|
-
|
|
|
|
35,969
|
|
15,391
|
|
-
|
|
49
|
|
1,446
|
|
52,855
|
Properties Impacted
by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
(15,836)
|
|
353
|
|
16,000
|
|
5
|
|
-
|
|
522
|
|
Lula,
Mississippi
|
|
(31,001)
|
|
1,318
|
|
34,100
|
|
6
|
|
-
|
|
4,423
|
|
Vicksburg,
Mississippi
|
|
1,490
|
|
1,324
|
|
-
|
|
5
|
|
-
|
|
2,819
|
|
Caruthersville,
Missouri
|
|
1,276
|
|
840
|
|
-
|
|
5
|
|
-
|
|
2,121
|
|
Davenport,
Iowa
|
|
1,873
|
|
596
|
|
-
|
|
5
|
|
-
|
|
2,474
|
|
|
|
(42,198)
|
|
4,431
|
|
50,100
|
|
26
|
|
-
|
|
12,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
|
(6,229)
|
|
19,822
|
|
50,100
|
|
75
|
|
1,446
|
|
65,214
|
|
Corporate and
Other
|
|
(7,540)
|
|
535
|
|
-
|
|
938
|
|
-
|
|
(6,067)
|
Total
|
|
$
(13,769)
|
|
$
20,357
|
|
$
50,100
|
|
$
1,013
|
|
$
1,446
|
|
$
59,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 29, 2012
|
|
|
|
Operating
Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Valuation
and Other
Charges(3)
|
|
Stock-Based
Compensation
|
|
Insurance
Recoveries (2)
and
Preopening
|
|
Adjusted EBITDA
(1)
|
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
|
|
Cape Girardeau,
Missouri
|
|
(484)
|
|
-
|
|
-
|
|
-
|
|
484
|
|
-
|
|
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
|
|
|
|
29,496
|
|
12,628
|
|
16,149
|
|
40
|
|
484
|
|
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
|
|
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
|
|
37,217
|
|
17,316
|
|
30,549
|
|
63
|
|
(8,170)
|
|
76,975
|
|
Corporate and
Other
|
|
(11,113)
|
|
608
|
|
1,979
|
|
1,326
|
|
-
|
|
(7,200)
|
Total
|
|
$
26,104
|
|
$
17,924
|
|
$
32,528
|
|
$
1,389
|
|
$
(8,170)
|
|
$
69,775
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended April 28, 2013
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation Charges
(3)
|
|
Preopening and
Financing (4)
|
|
Adjusted EBITDA
(1)
|
Properties Not
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
$
9,270
|
|
$
10,070
|
|
$
20
|
|
$
-
|
|
$
-
|
|
$
19,360
|
|
Kansas City,
Missouri
|
13,275
|
|
4,012
|
|
14
|
|
-
|
|
-
|
|
17,301
|
|
Boonville,
Missouri
|
24,004
|
|
3,545
|
|
22
|
|
-
|
|
-
|
|
27,571
|
|
Cape Girardeau,
Missouri
|
(5,135)
|
|
5,572
|
|
10
|
|
-
|
|
4,050
|
|
4,497
|
|
Bettendorf,
Iowa
|
13,995
|
|
6,948
|
|
16
|
|
-
|
|
-
|
|
20,959
|
|
Marquette,
Iowa
|
3,718
|
|
1,901
|
|
15
|
|
-
|
|
-
|
|
5,634
|
|
Waterloo,
Iowa
|
21,544
|
|
5,026
|
|
22
|
|
-
|
|
-
|
|
26,592
|
|
Black Hawk,
Colorado
|
20,109
|
|
8,837
|
|
43
|
|
-
|
|
-
|
|
28,989
|
|
Pompano,
Florida
|
19,396
|
|
7,252
|
|
28
|
|
-
|
|
-
|
|
26,676
|
|
Nemacolin,
Pennsylvania
|
(1,715)
|
|
-
|
|
-
|
|
-
|
|
1,715
|
|
-
|
|
|
118,461
|
|
53,163
|
|
190
|
|
-
|
|
5,765
|
|
177,579
|
Properties Impacted
by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
(14,667)
|
|
1,539
|
|
19
|
|
16,000
|
|
-
|
|
2,891
|
|
Lula,
Mississippi
|
(29,815)
|
|
6,098
|
|
21
|
|
34,100
|
|
-
|
|
10,404
|
|
Vicksburg,
Mississippi
|
1,184
|
|
4,664
|
|
19
|
|
-
|
|
-
|
|
5,867
|
|
Caruthersville,
Missouri
|
2,832
|
|
3,361
|
|
21
|
|
-
|
|
-
|
|
6,214
|
|
Davenport,
Iowa
|
6,492
|
|
2,255
|
|
21
|
|
-
|
|
-
|
|
8,768
|
|
|
(33,974)
|
|
17,917
|
|
101
|
|
50,100
|
|
-
|
|
34,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
84,487
|
|
71,080
|
|
291
|
|
50,100
|
|
5,765
|
|
211,723
|
|
Corporate and
Other
|
(35,534)
|
|
2,339
|
|
4,788
|
|
-
|
|
1,478
|
|
(26,929)
|
Total
|
$
48,953
|
|
$
73,419
|
|
$
5,079
|
|
$
50,100
|
|
$
7,243
|
|
$
184,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended April 29, 2012
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation and
Other Charges (3)
|
|
Preopening
|
|
Adjusted EBITDA
(1)
|
Properties Not
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
$
(4,478)
|
|
$
9,291
|
|
$
38
|
|
$
16,149
|
|
$
-
|
|
$
21,000
|
|
Kansas City,
Missouri
|
13,902
|
|
3,997
|
|
11
|
|
-
|
|
-
|
|
17,910
|
|
Boonville,
Missouri
|
26,018
|
|
3,481
|
|
45
|
|
-
|
|
-
|
|
29,544
|
|
Cape Girardeau,
Missouri
|
(615)
|
|
-
|
|
-
|
|
|
|
615
|
|
-
|
|
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
|
|
|
107,049
|
|
54,747
|
|
241
|
|
16,149
|
|
615
|
|
178,801
|
Properties Impacted
by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
6,478
|
|
1,536
|
|
25
|
|
-
|
|
-
|
|
8,039
|
|
Lula,
Mississippi
|
(4,729)
|
|
6,590
|
|
45
|
|
14,400
|
|
-
|
|
16,306
|
|
Vicksburg,
Mississippi
|
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
|
|
132
|
|
14,400
|
|
-
|
|
51,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
125,701
|
|
73,537
|
|
373
|
|
30,549
|
|
615
|
|
230,775
|
|
Corporate and
Other
|
(41,318)
|
|
2,513
|
|
7,269
|
|
1,979
|
|
-
|
|
(29,557)
|
Total
|
$
84,383
|
|
$
76,050
|
|
$
7,642
|
|
$
32,528
|
|
$
615
|
|
$
201,218
|
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
28,
|
|
April
29,
|
|
April
28,
|
|
April
29,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Income (loss) from
continuing operations
|
$
(45,391)
|
|
$
(13,478)
|
|
$
(45,990)
|
|
$
(17,383)
|
|
Income tax
provision
|
6,898
|
|
17,502
|
|
6,732
|
|
15,119
|
|
Derivative (income)
expense
|
(216)
|
|
(187)
|
|
(748)
|
|
(439)
|
|
Interest
income
|
(96)
|
|
(199)
|
|
(502)
|
|
(819)
|
|
Interest
expense
|
25,036
|
|
22,466
|
|
89,461
|
|
87,905
|
|
Depreciation and
amortization
|
20,357
|
|
17,924
|
|
73,419
|
|
76,050
|
|
Stock-based
compensation
|
1,013
|
|
1,389
|
|
5,079
|
|
7,642
|
|
Valuation charges and
other (3)
|
50,100
|
|
32,528
|
|
50,100
|
|
32,528
|
|
Preopening
expense
|
1,446
|
|
484
|
|
5,765
|
|
615
|
|
Financing expense
(4)
|
-
|
|
-
|
|
1,478
|
|
-
|
|
Insurance recoveries
(2)
|
-
|
|
(8,654)
|
|
-
|
|
-
|
Adjusted EBITDA
(1)
|
$
59,147
|
|
$
69,775
|
|
$
184,794
|
|
$
201,218
|
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
28,
|
|
April
29,
|
|
April
28,
|
|
April
29,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
GAAP net income
(loss)
|
$
(45,391)
|
|
$
(124,791)
|
|
$
(47,569)
|
|
$
(129,753)
|
Insurance recoveries
(2)
|
-
|
|
(8,654)
|
|
-
|
|
-
|
Valuation charges and
other (3)
|
50,100
|
|
32,528
|
|
50,100
|
|
32,528
|
Financing costs
(4)
|
2,236
|
|
-
|
|
4,742
|
|
-
|
Preopening
|
1,446
|
|
484
|
|
5,765
|
|
615
|
Adjustment for taxes
on above items (5)
|
-
|
|
(3,790)
|
|
-
|
|
(7,251)
|
Tax valuation
allowance
|
758
|
|
8,742
|
|
758
|
|
8,742
|
Discontinued
operations
|
-
|
|
111,313
|
|
1,579
|
|
112,370
|
Adjusted net
income
|
$
9,149
|
|
$
15,832
|
|
$
15,375
|
|
$
17,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
(1.15)
|
|
$
(3.20)
|
|
$
(1.21)
|
|
$
(3.35)
|
Insurance recoveries
(2)
|
-
|
|
(0.22)
|
|
-
|
|
-
|
Valuation charges and
other (3)
|
1.27
|
|
0.83
|
|
1.27
|
|
0.84
|
Financing costs
(4)
|
0.06
|
|
-
|
|
0.12
|
|
-
|
Preopening
|
0.04
|
|
0.01
|
|
0.15
|
|
0.02
|
Adjustment for taxes
on above items (5)
|
-
|
|
(0.10)
|
|
-
|
|
(0.19)
|
Tax valuation
allowance
|
0.02
|
|
0.22
|
|
0.02
|
|
0.23
|
Discontinued
operations
|
-
|
|
2.85
|
|
0.04
|
|
2.90
|
Adjusted net income
per share
|
$
0.24
|
|
$
0.39
|
|
$
0.39
|
|
$
0.45
|
- Adjusted EBITDA is "earnings before interest and other
non-operating income (expense), income taxes, stock-based
compensation, preopening expense, 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.
- 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.
- Valuation charges in the fourth quarter and fiscal 2013 consist
of goodwill impairment charges of $34.1
million at our Lula property and $16.0 million at our Natchez property. Valuation charges and other
in the fourth quarter and fiscal 2012 consists of a goodwill
impairment charge at our Lula 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.
- Financing charges relate to non-capitalizable fees of
$1.5 million associated with the
tender offer of our 7% Senior Subordinated Notes during fiscal
2013, recorded in Corporate and development expenses, and the
non-cash write-off of deferred financing costs of $2.2 million and $3.3
million during the fourth quarter and fiscal 2013,
respectively, related to debt refinancing and recorded in interest
expense.
- Because of our tax valuation allowances, there is no adjustment
for income taxes on the above items during fiscal 2013.
SOURCE Isle of Capri Casinos, Inc.