ST. LOUIS, June 9, 2015 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the fourth quarter and fiscal year ended
April 26, 2015.
2015 Fourth Quarter and Fiscal Year Highlights
- Fourth quarter Adjusted EBITDA increased 14.8% to $65.6 million year over year.
- Fiscal 2015 Adjusted EBITDA increased 15.5% to $200.2 million year over year.
- Fiscal 2015 Adjusted EBITDA margin exceeded 20%, up 193 bps
year over year.
- Reduced debt by $73 million in
fiscal 2015 to below $1 billion for
the first time since 2000.
- Debt to Adjusted EBITDA ratio is below 5x at the end of fiscal
2015.
Consolidated Financial 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
26,
|
|
April
27,
|
|
April
26,
|
|
April
27,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net
revenues
|
$ 274.6
|
|
$ 260.8
|
|
$ 996.3
|
|
$ 954.6
|
Consolidated Adjusted
EBITDA (1)
|
65.6
|
|
57.2
|
|
200.2
|
|
173.4
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
3.1
|
|
(139.7)
|
|
5.2
|
|
(129.7)
|
Income (loss) from
discontinued operations
|
-
|
|
(1.8)
|
|
-
|
|
2.0
|
Net income
(loss)
|
3.1
|
|
(141.5)
|
|
5.2
|
|
(127.7)
|
Diluted income (loss)
per share from continuing operations
|
0.08
|
|
(3.51)
|
|
0.13
|
|
(3.26)
|
Diluted income
(loss) per share from discontinued operations
|
-
|
|
(0.04)
|
|
-
|
|
0.05
|
Diluted income (loss)
per share
|
0.08
|
|
(3.55)
|
|
0.13
|
|
(3.21)
|
Adjusted income
(loss) per share (2)
|
0.58
|
|
0.34
|
|
0.76
|
|
(0.06)
|
|
|
(1)
|
For a further
description of Consolidated Adjusted EBITDA, refer to the
reconciliation tables following the narrative and the definition of
Adjusted EBITDA in footnote (1) of this release.
|
(2)
|
For a
reconciliation of the GAAP basis per share amounts to adjusted
income (loss) per share, refer to the reconciliation table labeled
"Reconciliation of GAAP Income (Loss) from Continuing Operations to
Adjusted Income (Loss) and GAAP Income (Loss) from Continuing
Operations Per Share to Adjusted Income (Loss) Per
Share."
|
Commenting on the results of the quarter and fiscal year,
Virginia McDowell, the Company's
president and chief executive officer said: "Fiscal 2015 was a year
of many accomplishments. During the year, we continued to
focus on building a better operating company with a prudently
leveraged balance sheet."
"Adjusted EBITDA increased 14.8% year over year in our fiscal
2015 fourth quarter, marking the fifth consecutive quarter with an
increase in Adjusted EBITDA, and our third consecutive quarter with
a double-digit, year-over-year change in Adjusted EBITDA. The early
part of the quarter experienced more favorable weather than the
prior year; while we also continued to benefit from the substantial
changes we made to our operating model over the past 18
months."
"With fiscal 2015 behind us, we are focused on fiscal 2016 and
beyond. We continue to differentiate ourselves with friendly
and excellent customer service. We are prudently investing in our
properties by renovating hotel rooms and food and beverage outlets
and improving our casino floors with new products. We broke ground
on our land-based development at Bettendorf which we expect to open in early
fiscal 2017. We continue to optimize our marketing programs and are
introducing new productivity tools in fiscal 2016 across the
enterprise. Finally we will remain vigilant about our cost
structure and we will continue to manage our capital structure to
maximize free cash flow, deleverage our balance sheet and lower our
cost of capital."
Financial Highlights
Net revenues for the quarter increased 5.3% to $274.6 million and consolidated Adjusted EBITDA
increased from $57.2 million to
$65.6 million, or 14.8%.
Adjusted EBITDA margin was 23.9% for the quarter, relative to 21.9%
in the year ago quarter. Adjusted income per share was
$0.58 during the quarter, compared to
$0.34 in the prior year. GAAP
basis diluted income (loss) per share from continuing operations
for the fiscal 2015 quarter was $0.08
compared to ($3.51) for the fourth
quarter of the prior year, including non-cash valuation charges
assessed during both periods.
For fiscal 2015, net revenues increased 4.4%, to $996.3 million, while Adjusted EBITDA increased
15.5%, to $200.2 million.
Adjusted EBITDA margin for the year was 20.1% relative to 18.2% in
fiscal 2014.
The following items impacted earnings from continuing operations
during the fourth quarters of fiscal 2015 and 2014:
- We recorded a loss on early extinguishment of debt of
$13.8 million in fiscal 2015 related
to the tender and refinancing of our 7.75% Senior Notes due
2019.
- We recorded non-cash impairment charges of $9.0 million in fiscal 2015 and $162.1 million in fiscal 2014.
Fourth Quarter Operating Results
Black Hawk – Adjusted
EBITDA at our two properties increased by $2.6 million, or 34.8%, to $10.1 million, on a revenue increase of
$3.5 million, or 11.7%. The
properties benefited from the rollout of Fan Club 2.0 during our
fiscal third quarter, which resulted in more targeted marketing
spend and gains in market share during the fourth quarter.
Pompano – Net revenues increased 12.4% to $54.6 million, Adjusted EBITDA increased 28.6% to
$14.9 million, and operating margins
increased 345 basis points to 27.2%. This growth was
largely attributable to increased top-tier rated slot play, and
continued enhancements in marketing programs.
Iowa – Net revenues for
our three properties were up slightly to $48.5 million and Adjusted EBITDA increased
slightly to $14.1 million.
Adjusted EBITDA increases of 33.1% and 1.8% at Marquette and Waterloo, respectively, were mostly offset by
a 7.7% decline in Adjusted EBITDA at Bettendorf. The
continued proliferation of VLTs in Illinois affected Bettendorf's results during the quarter, as
well as the ongoing renovations of the South Tower hotel, which
resulted in approximately 1/3 fewer rooms being available during
the period. Additionally we sold Rhythm City during
last year's fourth quarter. Following the sale, that property
was closed for several days during the transition which benefited
Bettendorf.
Lake Charles – Net revenues declined 3.1%, to
$34.0 million, and Adjusted EBITDA
declined 16.6%, to $5.7
million. Results were impacted during the quarter
primarily by a decline in retail non-rated play at the property,
likely due to the opening of a new competitor in December 2014 as well as increased marketing
expenses to rated players. While revenue trends have remained
solid since the opening of the new competitor, the property will
continue to refine marketing programs in the coming months to
appropriately match marketing expenses with revenue
levels.
Mississippi – Net
revenues for our three Mississippi
properties increased 1.3% to $29.1
million and Adjusted EBITDA increased 32.5% to $7.8 million. All three properties reported
increased Adjusted EBITDA year over year led by Vicksburg, up 28.1%, and Lula, which increased 27.1%.
Vicksburg and Lula benefited from lower marketing and
operating costs during the quarter.
Missouri – Net revenues
for our four Missouri properties
increased 5.4% to $65.6 million year
over year, while Adjusted EBITDA increased 8.6% to $19.9 million. All four Missouri properties reported increased
Adjusted EBITDA led by Cape
Girardeau and Caruthersville which increased 22.2% and
23.8%, respectively. Boonville's Adjusted EBITDA increased 5.2%
during the quarter, while Kansas
City was up slightly.
Pennsylvania – Net
revenues at our casino at Nemacolin Woodlands Resort were up 20.8%,
to $9.0 million and Adjusted EBITDA
was ($0.2) million relative to
($0.8) million in the prior year
quarter. The property continues to see solid revenue
growth trends which should benefit it into the peak season for the
resort.
Corporate Expenses
Corporate and other expenses were $7.3
million for the quarter, up from $7.1
million, largely as a result of increased incentive
compensation accruals relative to the previous year's fourth
quarter.
Non-cash stock compensation expense was $0.6 million for the quarter compared to
$0.8 million in the fourth quarter of
fiscal 2014. For the fiscal year, non-cash stock compensation
expense was $3.2 million, compared to
$4.2 million in fiscal 2014.
Capital Structure, Capital Expenditures and Updated
Guidance
As of April 26, 2015, the Company
had:
- $66.4 million in cash and cash
equivalents, excluding $9.2 million
in restricted cash and investments;
- $992.9 million in total debt;
and
- $218.0 million in net line of
credit availability.
Fourth quarter capital expenditures were $11.7 million. For the year our total
capital expenditures were approximately $41.7 million.
On April 7, 2015 we announced a
tender offer for our $300 million of
7.75% Senior Notes due 2019. Approximately $237.8 million of the Notes were tendered. We
funded the tender with borrowings on our existing credit facility,
cash on hand, and the issuance of a $150
million add-on to our 5.875% Senior Notes due 2021.
Subsequent to the end of the quarter, on May
14, 2015, we called the remainder of the 2019 notes, funding
approximately $62.2 million with
additional borrowings on our revolving credit facility.
Development
On May 13, 2015 we broke ground on
our land-based casino project in Bettendorf. The project will
include converting the current three-level riverboat casino into a
single-level land-based structure situated between the current
North and South hotel towers and will also introduce several new
food concepts to the property including a Farmer's Pick Buffet, an
Otis & Henry's grab-and-go as well as a Lone Wolf bar and stage. Customers will
also benefit from a new porte-cochere, with a grand new casino
entrance and a consolidated hotel front desk. The project is
expected to take 12-14 months to complete at a cost of up to
$60 million and open in the first
half of fiscal 2017. We expect to fund the construction using
cash from operations.
For fiscal 2016 we provide guidance for the following
specific non-operating items:
- Depreciation and amortization expense is expected to be
approximately $85 million to $87
million, inclusive of approximately $5 million in accelerated depreciation related to
the existing riverboat at Bettendorf.
- Interest expense is expected to be approximately $69 million to $71 million.
- The Company expects cash income taxes pertaining to fiscal 2016
operations to be less than $1
million, primarily state income taxes.
- Corporate and development expenses for fiscal 2016 are expected
to be approximately $28 million to $30
million, including approximately $5
million in non-cash stock compensation expense.
- Maintenance capital expenditures for fiscal 2016 are expected
to be approximately $40 million.
- We also expect to spend approximately $15 million on smaller projects and renovation
capital. These include ongoing hotel room renovations at the South
Tower in Bettendorf, a hotel room
renovation at Boonville, as well
as various restaurant renovations across the portfolio.
- We expect to spend approximately $45
million to $50 million on the land-based project at
Bettendorf during fiscal
2016.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Tuesday, June 9, 2015 at 10:00 am central time during which management
will discuss the financial and other matters addressed in this
press release. The conference call can be accessed by
interested parties via webcast through the investor relations page
of the Company's website, www.islecorp.com, or, for domestic
callers, by dialing 888-346-3970. International callers can
access the conference call by dialing 412-317-6011. The
conference call will be recorded and available for review starting
at 11:59 pm central on Tuesday, June 9, 2015, until 11:59 pm central on Tuesday, June 23, 2015, by dialing 877-344-7529;
International: 412-317-0088 and access number 10066537.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming
and entertainment company dedicated to providing guests with
exceptional experience at each of the 15 casino properties that it
owns or operates, primarily under the Isle and Lady Luck
brands. The Company currently operates gaming and
entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, and Pennsylvania. More information is available at
the Company's website, www.islecorp.com.
Forward-Looking Statements
This press release may be deemed to contain forward-looking
statements, which are subject to change. These forward-looking
statements may be significantly impacted, either positively or
negatively by various factors, including without limitation,
licensing, and other regulatory approvals, financing sources,
development and construction activities, costs and delays, weather,
permits, competition and business conditions in the gaming
industry. The forward-looking statements are subject to numerous
risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements
herein.
Additional information concerning potential factors that could
affect the Company's financial condition, results of operations and
expansion projects, is included in the filings of the Company with
the Securities and Exchange Commission, including, but not limited
to, its Form 10-K for the most recently ended fiscal year.
CONTACTS:
Isle of Capri Casinos, Inc.,
Eric Hausler, Chief Financial
Officer-314-813-9205
Jill Alexander, Senior Director of
Corporate Communication-314-813-9368
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
April
26,
|
|
April
27,
|
|
April
26,
|
|
April
27,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Casino
|
$ 287,567
|
|
$ 271,070
|
|
$ 1,054,926
|
|
$ 1,004,255
|
|
Rooms
|
7,788
|
|
7,889
|
|
31,565
|
|
32,449
|
|
Food, beverage,
pari-mutuel and other
|
36,977
|
|
36,182
|
|
139,816
|
|
135,305
|
|
Gross
revenues
|
332,332
|
|
315,141
|
|
1,226,307
|
|
1,172,009
|
|
Less promotional
allowances
|
(57,684)
|
|
(54,365)
|
|
(230,029)
|
|
(217,409)
|
|
Net
revenues
|
274,648
|
|
260,776
|
|
996,278
|
|
954,600
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Casino
|
40,304
|
|
39,605
|
|
161,051
|
|
158,019
|
|
Gaming
taxes
|
72,797
|
|
68,384
|
|
265,527
|
|
251,901
|
|
Rooms
|
1,650
|
|
1,802
|
|
6,773
|
|
7,023
|
|
Food, beverage,
pari-mutuel and other
|
14,053
|
|
13,239
|
|
49,542
|
|
46,900
|
|
Marine and
facilities
|
14,826
|
|
14,655
|
|
58,144
|
|
57,624
|
|
Marketing and
administrative
|
58,767
|
|
59,680
|
|
234,471
|
|
234,690
|
|
Corporate and
development
|
7,325
|
|
7,141
|
|
29,088
|
|
28,455
|
|
Valuation
charges
|
9,000
|
|
162,100
|
|
9,000
|
|
162,100
|
|
Litigation accrual
reversals
|
-
|
|
-
|
|
-
|
|
(9,330)
|
|
Preopening
expense
|
-
|
|
-
|
|
-
|
|
3,898
|
|
Depreciation and
amortization
|
20,094
|
|
20,390
|
|
78,875
|
|
80,885
|
|
Total operating
expenses
|
238,816
|
|
386,996
|
|
892,471
|
|
1,022,165
|
|
Operating income
(loss)
|
35,832
|
|
(126,220)
|
|
103,807
|
|
(67,565)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(20,761)
|
|
(21,584)
|
|
(84,131)
|
|
(81,342)
|
|
Interest
income
|
96
|
|
89
|
|
369
|
|
349
|
|
Loss on early
extinguishment of debt
|
(13,757)
|
|
-
|
|
(13,757)
|
|
-
|
|
Derivative
income
|
-
|
|
-
|
|
|
|
398
|
|
Income (loss) from
continuing operations before income taxes
|
1,410
|
|
(147,715)
|
|
6,288
|
|
(148,160)
|
|
Income tax benefit
(provision)
|
1,682
|
|
7,995
|
|
(1,111)
|
|
18,494
|
|
Income (loss) from
continuing operations
|
3,092
|
|
(139,720)
|
|
5,177
|
|
(129,666)
|
|
Income (loss) from
discontinued operations, net of
income taxes
|
-
|
|
(1,798)
|
|
-
|
|
1,980
|
|
Net income
(loss)
|
$
3,092
|
|
$ (141,518)
|
|
$
5,177
|
|
$ (127,686)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-basic:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
0.08
|
|
$
(3.51)
|
|
$
0.13
|
|
$
(3.26)
|
|
Income (loss) from
discontinued operations, net
of income taxes
|
-
|
|
(0.04)
|
|
-
|
|
0.05
|
|
Net income
(loss)
|
$
0.08
|
|
$
(3.55)
|
|
$
0.13
|
|
$
(3.21)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-dilutive:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
0.08
|
|
$
(3.51)
|
|
$
0.13
|
|
$
(3.26)
|
|
Income (loss) from
discontinued operations, net
of income taxes
|
-
|
|
(0.04)
|
|
-
|
|
0.05
|
|
Net income
(loss)
|
$
0.08
|
|
$
(3.55)
|
|
$
0.13
|
|
$
(3.21)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
40,033,404
|
|
39,829,177
|
|
39,955,735
|
|
39,731,766
|
|
Weighted average
diluted shares
|
41,020,503
|
|
39,829,177
|
|
40,320,267
|
|
39,731,766
|
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share amounts)
|
|
|
|
|
|
April
26,
|
|
April
27,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 66,437
|
|
$ 69,830
|
Marketable
securities
|
19,517
|
|
27,289
|
Accounts receivable,
net
|
11,171
|
|
12,615
|
Inventory
|
6,647
|
|
6,273
|
Income taxes
receivable
|
-
|
|
73
|
Deferred income
taxes
|
4,626
|
|
4,106
|
Prepaid expenses and
other assets
|
11,274
|
|
12,253
|
Total current
assets
|
119,672
|
|
132,439
|
Property and
equipment, net
|
912,036
|
|
955,604
|
Other
assets:
|
|
|
|
Goodwill
|
108,970
|
|
108,970
|
Other intangible
assets, net
|
54,073
|
|
54,911
|
Deferred financing
costs, net
|
19,075
|
|
23,439
|
Restricted cash and
investments
|
9,193
|
|
9,807
|
Prepaid deposits and
other
|
4,743
|
|
4,904
|
Total
assets
|
$ 1,227,762
|
|
$ 1,290,074
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
170
|
|
$
230
|
Accounts
payable
|
19,690
|
|
20,869
|
Accrued
liabilities:
|
|
|
|
Payroll and
related
|
43,371
|
|
34,700
|
Property and other
taxes
|
20,456
|
|
20,360
|
Income tax
payable
|
125
|
|
-
|
Interest
|
15,350
|
|
16,920
|
Progressive jackpots
and slot club awards
|
16,123
|
|
16,306
|
Other
|
18,326
|
|
18,478
|
Total current
liabilities
|
133,611
|
|
127,863
|
Long-term debt, less
current maturities
|
992,712
|
|
1,066,071
|
Deferred income
taxes
|
37,334
|
|
35,870
|
Other accrued
liabilities
|
18,432
|
|
18,495
|
Other long-term
liabilities
|
22,211
|
|
22,391
|
|
|
|
|
Stockholders'
equity
|
23,462
|
-
|
19,384
|
Total liabilities and
stockholders' equity
|
$ 1,227,762
|
|
$ 1,290,074
|
Isle of Capri
Casinos, Inc.
|
Supplemental Data
- Net Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
April
26,
|
|
April
27,
|
|
April
26,
|
|
April
27,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Colorado
|
|
|
|
|
|
|
|
|
|
Black Hawk
|
|
$ 33,780
|
|
$ 30,242
|
|
$ 127,722
|
|
$ 121,313
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
Pompano
|
|
54,646
|
|
48,631
|
|
175,588
|
|
164,777
|
|
|
|
|
|
|
|
|
|
|
Iowa
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
18,420
|
|
19,257
|
|
72,981
|
|
73,695
|
|
Marquette
|
|
6,667
|
|
5,928
|
|
25,793
|
|
25,014
|
|
Waterloo
|
|
23,409
|
|
23,090
|
|
87,762
|
|
85,361
|
|
Iowa Total
|
|
48,496
|
|
48,275
|
|
186,536
|
|
184,070
|
|
|
|
|
|
|
|
|
|
|
Louisiana
|
|
|
|
|
|
|
|
|
|
Lake
Charles
|
|
33,966
|
|
35,044
|
|
128,413
|
|
129,899
|
|
|
|
|
|
|
|
|
|
|
Mississippi
|
|
|
|
|
|
|
|
|
|
Lula
|
|
15,008
|
|
14,785
|
|
53,042
|
|
50,489
|
|
Natchez
|
|
5,362
|
|
5,404
|
|
19,233
|
|
20,190
|
|
Vicksburg
|
|
8,700
|
|
8,501
|
|
29,876
|
|
29,947
|
|
Mississippi
Total
|
|
29,070
|
|
28,690
|
|
102,151
|
|
100,626
|
|
|
|
|
|
|
|
|
|
|
Missouri
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
20,441
|
|
19,463
|
|
76,934
|
|
74,531
|
|
Cape
Girardeau
|
|
16,192
|
|
15,016
|
|
59,628
|
|
54,833
|
|
Caruthersville
|
|
8,699
|
|
8,231
|
|
31,369
|
|
29,879
|
|
Kansas
City
|
|
20,310
|
|
19,541
|
|
73,070
|
|
70,385
|
|
Missouri
Total
|
|
65,642
|
|
62,251
|
|
241,001
|
|
229,628
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
|
|
|
|
|
|
|
|
|
|
Nemacolin
|
|
9,027
|
|
7,473
|
|
34,755
|
|
23,575
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
274,627
|
|
260,606
|
|
996,166
|
|
953,888
|
Other
|
|
21
|
|
170
|
|
112
|
|
712
|
Net Revenues from
Continuing Operations
|
$ 274,648
|
|
$ 260,776
|
|
$ 996,278
|
|
$ 954,600
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
Three Months Ended
April 26, 2015
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation charges,
Preopening and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
7,815
|
|
$
2,286
|
|
$
7
|
|
$
-
|
|
$ 10,108
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
13,008
|
|
1,864
|
|
6
|
|
-
|
|
14,878
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
3,158
|
|
1,672
|
|
6
|
|
-
|
|
4,836
|
Marquette
|
|
1,216
|
|
366
|
|
3
|
|
-
|
|
1,585
|
Waterloo
|
|
6,416
|
|
1,267
|
|
4
|
|
-
|
|
7,687
|
|
Iowa Total
|
|
10,790
|
|
3,305
|
|
13
|
|
-
|
|
14,108
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
2,904
|
|
2,754
|
|
6
|
|
-
|
|
5,664
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
3,283
|
|
1,274
|
|
4
|
|
-
|
|
4,561
|
Natchez
|
|
(68)
|
|
290
|
|
4
|
|
-
|
|
226
|
Vicksburg
|
|
2,125
|
|
914
|
|
5
|
|
-
|
|
3,044
|
|
Mississippi
Total
|
|
5,340
|
|
2,478
|
|
13
|
|
-
|
|
7,831
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
6,754
|
|
1,014
|
|
2
|
|
-
|
|
7,770
|
Cape
Girardeau
|
|
1,058
|
|
2,852
|
|
3
|
|
-
|
|
3,913
|
Caruthersville
|
|
1,804
|
|
605
|
|
2
|
|
-
|
|
2,411
|
Kansas
City
|
|
4,729
|
|
1,053
|
|
8
|
|
-
|
|
5,790
|
|
Missouri
Total
|
|
14,345
|
|
5,524
|
|
15
|
|
-
|
|
19,884
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(10,557)
|
|
1,375
|
|
15
|
|
9,000
|
|
(167)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
43,645
|
|
19,586
|
|
75
|
|
9,000
|
|
72,306
|
Corporate and
Other
|
|
(7,813)
|
|
508
|
|
596
|
|
-
|
|
(6,709)
|
Total
|
|
$
35,832
|
|
$
20,094
|
|
$
671
|
|
$
9,000
|
|
$ 65,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 27, 2014
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation charges,
Preopening and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
4,936
|
|
$
2,552
|
|
$
8
|
|
$
-
|
|
$ 7,496
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
9,833
|
|
1,726
|
|
6
|
|
-
|
|
11,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
(56,212)
|
|
1,448
|
|
3
|
|
60,000
|
|
5,239
|
Marquette
|
|
738
|
|
452
|
|
1
|
|
-
|
|
1,191
|
Waterloo
|
|
6,367
|
|
1,183
|
|
4
|
|
-
|
|
7,554
|
|
Iowa Total
|
|
(49,107)
|
|
3,083
|
|
8
|
|
60,000
|
|
13,984
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
(20,366)
|
|
2,919
|
|
4
|
|
24,238
|
|
6,795
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
(33,693)
|
|
1,279
|
|
3
|
|
36,000
|
|
3,589
|
Natchez
|
|
(10,865)
|
|
299
|
|
4
|
|
10,509
|
|
(53)
|
Vicksburg
|
|
(3,531)
|
|
903
|
|
4
|
|
5,000
|
|
2,376
|
|
Mississippi
Total
|
|
(48,089)
|
|
2,481
|
|
11
|
|
51,509
|
|
5,912
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
6,403
|
|
977
|
|
6
|
|
-
|
|
7,386
|
Cape
Girardeau
|
|
379
|
|
2,822
|
|
1
|
|
-
|
|
3,202
|
Caruthersville
|
|
1,250
|
|
693
|
|
4
|
|
-
|
|
1,947
|
Kansas
City
|
|
4,822
|
|
941
|
|
4
|
|
-
|
|
5,767
|
|
Missouri
Total
|
|
12,854
|
|
5,433
|
|
15
|
|
-
|
|
18,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(28,767)
|
|
1,655
|
|
1
|
|
26,353
|
|
(758)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
(118,706)
|
|
19,849
|
|
53
|
|
162,100
|
|
63,296
|
Corporate and
Other
|
|
(7,514)
|
|
541
|
|
827
|
|
-
|
|
(6,146)
|
Total
|
|
$
(126,220)
|
|
$
20,390
|
|
$
880
|
|
$
162,100
|
|
$ 57,150
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
Twelve Months
Ended April 26, 2015
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation charges,
Preopening and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
$
20,614
|
|
$
9,193
|
|
$
29
|
|
$
4,057
|
|
$ 33,893
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
31,122
|
|
7,131
|
|
26
|
|
-
|
|
38,279
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
13,271
|
|
6,011
|
|
23
|
|
-
|
|
19,305
|
Marquette
|
|
4,060
|
|
1,589
|
|
11
|
|
-
|
|
5,660
|
Waterloo
|
|
23,901
|
|
4,978
|
|
18
|
|
(1,225)
|
|
27,672
|
|
Iowa Total
|
|
41,232
|
|
12,578
|
|
52
|
|
(1,225)
|
|
52,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
8,650
|
|
11,069
|
|
21
|
|
-
|
|
19,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
6,630
|
|
5,113
|
|
16
|
|
-
|
|
11,759
|
Natchez
|
|
(2,113)
|
|
1,076
|
|
17
|
|
-
|
|
(1,020)
|
Vicksburg
|
|
2,719
|
|
3,600
|
|
17
|
|
-
|
|
6,336
|
|
Mississippi
Total
|
7,236
|
|
9,789
|
|
50
|
|
-
|
|
17,075
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
23,778
|
|
3,960
|
|
12
|
|
-
|
|
27,750
|
Cape
Girardeau
|
|
215
|
|
11,281
|
|
12
|
|
-
|
|
11,508
|
Caruthersville
|
|
4,346
|
|
2,497
|
|
12
|
|
-
|
|
6,855
|
Kansas
City
|
|
13,664
|
|
3,923
|
|
27
|
|
-
|
|
17,614
|
|
Missouri
Total
|
42,003
|
|
21,661
|
|
63
|
|
-
|
|
63,727
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(16,079)
|
|
5,460
|
|
22
|
|
9,000
|
|
(1,597)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
134,778
|
|
76,881
|
|
263
|
|
11,832
|
|
223,754
|
Corporate and
Other
|
(30,971)
|
|
1,994
|
|
3,150
|
|
2,259
|
|
(23,568)
|
Total
|
|
$
103,807
|
|
$
78,875
|
|
$
3,413
|
|
$
14,091
|
|
$ 200,186
|
|
|
|
|
|
|
|
Twelve Months
Ended April 27, 2014
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Valuation charges,
Preopening and Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
$
20,067
|
|
$
9,593
|
|
$
35
|
|
$
-
|
|
$ 29,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
25,116
|
|
7,109
|
|
25
|
|
-
|
|
32,250
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
(47,873)
|
|
6,381
|
|
13
|
|
60,000
|
|
18,521
|
Marquette
|
|
3,472
|
|
1,875
|
|
6
|
|
-
|
|
5,353
|
Waterloo
|
|
21,074
|
|
4,791
|
|
18
|
|
-
|
|
25,883
|
|
Iowa Total
|
|
(23,327)
|
|
13,047
|
|
37
|
|
60,000
|
|
49,757
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
(15,350)
|
|
11,738
|
|
17
|
|
24,238
|
|
20,643
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
(33,285)
|
|
5,225
|
|
14
|
|
36,000
|
|
7,954
|
Natchez
|
|
(12,865)
|
|
1,306
|
|
17
|
|
10,509
|
|
(1,033)
|
Vicksburg
|
|
(3,282)
|
|
3,698
|
|
17
|
|
5,000
|
|
5,433
|
|
Mississippi
Total
|
(49,432)
|
|
10,229
|
|
48
|
|
51,509
|
|
12,354
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
22,583
|
|
4,074
|
|
24
|
|
-
|
|
26,681
|
Cape
Girardeau
|
|
(2,359)
|
|
11,183
|
|
6
|
|
-
|
|
8,830
|
Caruthersville
|
|
2,232
|
|
2,960
|
|
18
|
|
-
|
|
5,210
|
Kansas
City
|
|
13,022
|
|
3,802
|
|
16
|
|
-
|
|
16,840
|
|
Missouri
Total
|
35,478
|
|
22,019
|
|
64
|
|
-
|
|
57,561
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(39,993)
|
|
5,440
|
|
3
|
|
30,251
|
|
(4,299)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
(47,441)
|
|
79,175
|
|
229
|
|
165,998
|
|
197,961
|
Corporate and
Other
|
(20,124)
|
|
1,710
|
|
4,170
|
|
(10,349)
|
|
(24,593)
|
Total
|
|
$
(67,565)
|
|
$
80,885
|
|
$
4,399
|
|
$
155,649
|
|
$ 173,368
|
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
26,
|
|
April
27,
|
|
April
26,
|
|
April
27,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income (Loss) from
continuing operations
|
|
$ 3,092
|
|
$ (139,720)
|
|
$ 5,177
|
|
$ (129,666)
|
|
Income tax provision
(benefit)
|
|
(1,682)
|
|
(7,995)
|
|
1,111
|
|
(18,494)
|
|
Derivative
income
|
|
-
|
|
-
|
|
-
|
|
(398)
|
|
Loss on
extinguishment of debt
|
|
13,757
|
|
-
|
|
13,757
|
|
-
|
|
Interest
income
|
|
(96)
|
|
(89)
|
|
(369)
|
|
(349)
|
|
Interest
expense
|
|
20,761
|
|
21,584
|
|
84,131
|
|
81,342
|
|
Depreciation and
amortization
|
|
20,094
|
|
20,390
|
|
78,875
|
|
80,885
|
|
Stock-based
compensation
|
|
671
|
|
880
|
|
3,413
|
|
4,399
|
|
Valuation
charges
|
|
9,000
|
|
162,100
|
|
9,000
|
|
162,100
|
|
Severance
charges
|
|
-
|
|
-
|
|
2,259
|
|
-
|
|
Colorado referendum
charges
|
|
-
|
|
-
|
|
4,057
|
|
-
|
|
Property tax
settlement
|
|
-
|
|
-
|
|
(1,225)
|
|
-
|
|
Litigation accrual
reversal
|
|
-
|
|
-
|
|
-
|
|
(9,330)
|
|
Preopening
expense
|
|
-
|
|
-
|
|
-
|
|
3,898
|
|
Gain on sale of
airplane
|
|
-
|
|
-
|
|
-
|
|
(1,019)
|
Adjusted
EBITDA
|
|
$ 65,597
|
|
$ 57,150
|
|
$ 200,186
|
|
$ 173,368
|
Isle of Capri
Casinos, Inc.
|
Reconciliations of
GAAP Income (Loss) From Continuing Operations to Adjusted Income
(Loss) and GAAP Income (Loss) From Continuing Operations Per Share
to Adjusted Income (Loss) Per Share
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
April
26,
|
|
April
27,
|
|
April
26,
|
|
April
27,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
$ 3,092
|
|
$ (139,720)
|
|
$ 5,177
|
|
$ (129,666)
|
Valuation charges
(5)
|
9,000
|
|
162,100
|
|
9,000
|
|
162,100
|
Loss on
extinguishment of debt
|
13,757
|
|
-
|
|
13,757
|
|
-
|
Colorado referendum
expense (3)
|
-
|
|
-
|
|
4,057
|
|
-
|
Property tax
settlement (3)
|
-
|
|
-
|
|
(1,225)
|
|
-
|
Severance expense
(3)
|
-
|
|
-
|
|
2,259
|
|
-
|
Tax valuation
allowance (reversal)
|
(2,301)
|
|
(1,813)
|
|
(2,301)
|
|
(13,806)
|
Uncertain tax benefit
reversal
|
-
|
|
(6,884)
|
|
-
|
|
(6,884)
|
Litigation accrual
reversals (4)
|
-
|
|
-
|
|
-
|
|
(16,953)
|
Preopening
expense
|
-
|
|
-
|
|
-
|
|
3,898
|
Gain on sale of
corporate aircraft
|
-
|
|
-
|
|
-
|
|
(1,019)
|
Adjusted income
(loss) (2)
|
$ 23,548
|
|
$ 13,683
|
|
$ 30,724
|
|
$ (2,330)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations per share
|
$ 0.08
|
|
$ (3.51)
|
|
$ 0.13
|
|
$ (3.26)
|
Valuation charges
(5)
|
0.22
|
|
4.07
|
|
0.22
|
|
4.08
|
Loss on
extinguishment of debt
|
0.34
|
|
-
|
|
0.34
|
|
-
|
Colorado referendum
expense (3)
|
-
|
|
-
|
|
0.10
|
|
-
|
Property tax
settlement (3)
|
-
|
|
-
|
|
(0.03)
|
|
-
|
Severance expense
(3)
|
-
|
|
-
|
|
0.06
|
|
-
|
Tax valuation
allowance (reversal)
|
(0.06)
|
|
(0.05)
|
|
(0.06)
|
|
(0.35)
|
Uncertain tax benefit
reversal
|
-
|
|
(0.17)
|
|
-
|
|
(0.17)
|
Litigation accrual
reversals (4)
|
-
|
|
-
|
|
-
|
|
(0.43)
|
Preopening
expense
|
-
|
|
-
|
|
-
|
|
0.10
|
Gain on sale of
corporate aircraft
|
-
|
|
-
|
|
-
|
|
(0.03)
|
Adjusted income
(loss) per share
|
$ 0.58
|
|
$ 0.34
|
|
$ 0.76
|
|
$ (0.06)
|
|
|
|
|
1.
|
Adjusted EBITDA is
"earnings before interest and other non-operating income (expense),
income taxes, stock-based compensation, certain severance expenses,
certain expenses related to the Colorado gaming referendum, certain
property tax and legal settlements, valuation charges, preopening
expense, certain asset sale gains, and depreciation and
amortization." Adjusted EBITDA is presented solely as a
supplemental disclosure because management believes that it is 1) a
widely used measure of operating performance in the gaming
industry, 2) used as a component of calculating required leverage
and minimum interest coverage ratios under our Senior Credit
Facility and 3) a principal basis of valuing gaming companies.
Management uses Adjusted EBITDA as the primary measure of the
Company's operating properties' performance, and it is an important
component in evaluating the performance of management and other
operating personnel in the determination of certain components of
employee compensation. Adjusted EBITDA should not be
construed as an alternative to operating income as an indicator of
the Company's operating performance, as an alternative to cash
flows from operating activities as a measure of liquidity or as an
alternative to any other measure determined in accordance with U.S.
generally accepted accounting principles (GAAP). The Company
has significant uses of cash flows, including capital expenditures,
interest payments, taxes and debt principal repayments, which are
not reflected in Adjusted EBITDA. Also, other gaming
companies that report Adjusted EBITDA information may calculate
Adjusted EBITDA in a different manner than the Company. A
reconciliation of Adjusted EBITDA to income (loss) from continuing
operations is included in the financial schedules accompanying this
release.
|
|
|
|
Certain of our debt
agreements use a similar calculation of "Adjusted EBITDA" as a
financial measure for the calculation of financial debt covenants
and includes add back of items such as gain on early extinguishment
of debt, pre-opening expenses, certain write-offs and valuation
charges, and non-cash stock compensation expense. Reference can be
made to the definition of Adjusted EBITDA in the applicable debt
agreements on file as Exhibits to our filings with the Securities
and Exchange Commission.
|
|
|
2.
|
Adjusted income
(loss) is presented solely as a supplemental disclosure as this is
one method management reviews and utilizes to analyze the
performance of its core operating business. For many of the
same reasons mentioned above related to Adjusted EBITDA, management
believes Adjusted income (loss) and Adjusted income (loss) per
share are useful analytic tools as they enable management to track
the performance of its core casino operating business separate and
apart from factors that do not impact decisions affecting its
operating casino properties, such as certain severance expenses,
certain expenses related to the Colorado gaming referendum, certain
property tax and legal settlements, valuation charges, preopening
expenses and certain asset gains. Management believes
Adjusted income (loss) and Adjusted income (loss) per share are
useful to investors since these adjustments provide a measure of
financial performance that more closely resembles widely used
measures of performance and valuation in the gaming industry.
Adjusted income (loss) and adjusted income (loss) per share do not
include valuation charges, tax valuation allowances, certain
severance expenses, certain expenses related to the Colorado gaming
referendum, certain property tax and legal settlements, certain
asset sale gains and preopening expenses.
|
|
|
3.
|
The Company incurred
$4.1 million of expense during the twelve months ended April 26,
2015 related to the Colorado gaming expansion referendum. The
Company had a favorable property tax settlement related to our
Waterloo property of $1.2 million during the twelve months ended
April 26, 2015. The Company recorded $2.3 million of
severance expense during the twelve months ended April 26, 2015,
related to restructuring at the corporate office.
|
|
|
4.
|
Litigation accrual
reversals for the twelve months ended April 27, 2014 includes a
$9.3 million reduction to operating expenses and a $7.6 million
reduction of interest expense.
|
|
|
5.
|
Valuation charges in
the fourth quarter and fiscal 2015 consist of $9.0 million of
impairment on the Nemacolin property, plant and equipment.
Valuation charges in the fourth quarter and fiscal 2014 consist of
goodwill impairment charges of $60.0 million at our Bettendorf
property, $24.2 million at our Lake Charles property, $36.0 million
at our Lula property, $8.6 million at our Natchez property and $5.0
million at our Vicksburg property. In addition, during the
fourth quarter of fiscal 2014, we also recorded impairment charges
related to property, plant and equipment, net of $14.2 million and
$1.9 million at our Nemacolin and Natchez properties, respectively,
and $12.2 million related to intangible assets at our Nemacolin
property.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2015-fourth-quarter-and-year-end-results-300096030.html
SOURCE Isle of Capri Casinos, Inc.