ST. LOUIS, Sept. 2, 2015 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) ("we", "our" or the "Company") today
reported financial results for the first quarter of fiscal year
2016 ended July 26, 2015.
Fiscal 2016 First Quarter Highlights
- Net revenues increased 4.2% to $246.9
million year over year.
- Adjusted EBITDA increased 15.9% to $51.1
million year over year.
- Adjusted EBITDA margin increased to 20.7%, up 210 bps year over
year.
- Adjusted earnings per share of $0.28 versus $0.04
in the prior year quarter.
Consolidated Results
The following table outlines the Company's financial results
(dollars in millions, except per share data, unaudited):
|
Three Months
Ended
|
|
July
26,
|
|
July
27,
|
|
2015
|
|
2014
|
Net
revenues
|
$ 246.9
|
|
$ 236.9
|
Consolidated adjusted
EBITDA (1)
|
51.1
|
|
44.1
|
|
|
|
|
Income (loss) from
continuing operations
|
8.4
|
|
(1.7)
|
Loss from
discontinued operations
|
(5.3)
|
|
(0.6)
|
Net income
(loss)
|
3.1
|
|
(2.3)
|
|
|
|
|
Diluted income (loss)
per share from continuing operations
|
0.21
|
|
(0.04)
|
Diluted loss per
share from discontinued operations
|
(0.13)
|
|
(0.02)
|
Diluted income (loss)
per share
|
0.08
|
|
(0.06)
|
Adjusted income per
share (2)
|
0.28
|
|
0.04
|
|
|
(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 per share, refer to the reconciliation table labeled
"Reconciliation of GAAP Income (Loss) from Continuing Operations to
Adjusted Income and GAAP Income (Loss) from Continuing Operations
Per Share to Adjusted Income Per Share."
|
Virginia McDowell, president and
chief executive officer, commented: "We grew Adjusted EBITDA for
the sixth consecutive quarter, and this quarter marks our fourth
consecutive quarter with a double-digit, year-over-year increase in
Adjusted EBITDA.
"We continue to benefit from our enhanced operating model and
better overall regional market trends. We improved margins
over 200 bps during the quarter as we drove higher efficiency from
our marketing programs and effectively managed our cost
structure.
"We are making prudent investments in both gaming and non-gaming
amenities at our properties. At the same time, we improved
our balance sheet reducing our debt and interest expense during the
quarter."
Financial Highlights
On August 11, we announced that we
will close our casino property in Natchez and entered into a
definitive agreement to sell the hotel and certain assets to Casino
Holding Investment Partners, LLC, the parent company of Magnolia
Bluffs Casino in Natchez, for $11.5
million. The transaction is expected to close in
October 2015, subject to customary
closing conditions. As such, the operations of our Natchez
property have been classified as discontinued operations and as
assets held for sale for all periods presented.
Net revenues for the current quarter were $246.9 million compared to $236.9 million in the prior year quarter, up 4.2%
year over year. Consolidated Adjusted EBITDA was $51.1 million for the quarter compared to
$44.1 million in the prior year
quarter, up 15.9% year over year. Adjusted EBITDA margin increased
to 20.7% from 18.6%. Interest expense was $17.4 million relative to $21.3 million in the prior year quarter, as a
result of our lower overall debt balance as well as the benefits of
refinancing our 7.75% Senior Notes due 2019, completed early in the
fiscal first quarter 2016.
During the quarter, we also recorded a $3.0 million loss on early extinguishment of debt
related to completion of the previously announced refinancing of
our 7.75% Senior Notes.
Operating results in the prior year's quarter were impacted by
$2.3 million of severance expenses
related to the corporate office restructuring and $1.0 million in expenses related to a voter
referendum in Colorado.
As a result of our decision to separately sell the Natchez
gaming vessel and certain other assets, we determined the fixed
assets were impaired and recorded a non-cash pretax charge of
$4.4 million in discontinued
operations during our first fiscal quarter. The loss from
discontinued operations was $5.3
million for the quarter, or a loss of $0.13 per share.
On a GAAP basis, diluted income per share from continuing
operations was $0.21 compared to a
loss from continuing operations of ($0.04) in the prior year's quarter. Net income
per share was $0.08 for the quarter,
relative to a loss of ($0.06) per
share in the prior year quarter. Adjusted income per share
from continuing operations was $0.28
for the quarter compared to adjusted net income per share from
continuing operations of $0.04 in the
prior year.
Operating Results
(All comparisons are to the prior year quarter)
Black Hawk – Net
revenues increased $2.7 million to
$34.4 million, and Adjusted EBITDA
increased $2.9 million to
$10.7 million, or 36.2%.
Black Hawk benefited from more
effective marketing spend during the quarter and a stable
competitive environment.
Pompano – Net revenues increased $4.2 million, or 11.1%, to $41.9 million, and Adjusted EBITDA increased
$1.2 million, or 17.7%, to
$7.8 million. The property
benefited from improved customer reinvestment and increased market
share.
Iowa – Net revenues
decreased $0.4 million to
$46.9 million, while Adjusted EBITDA
decreased $0.6 million to
$12.8 million. Adjusted EBITDA
increases of 18.6% and 2.9%, at Marquette and Waterloo, respectively, were offset by an
18.7% decline in Adjusted EBITDA at Bettendorf. In last
year's first quarter, Marquette
experienced disruption related to road work in its key feeder
market. At Bettendorf, during the previous year's quarter, a
competitor in the Quad Cities market was closed for 14 days over
the July 4th period,
resulting in a difficult comparison. Additionally the
property was impacted in the current year quarter by ongoing
construction around Interstate 74, which at times affected access
to the property, as well as construction disruption from the South
Tower hotel renovations at the property.
Lake Charles – Net revenues decreased $0.7 million to $31.8
million, or 2.2%, while Adjusted EBITDA decreased
$0.6 million to $4.6 million, or 11.9%. Results were
impacted by the opening of a new competitor in the market in
December which has resulted in increased marketing spend for the
property.
Mississippi – Net
revenues for Lula and Vicksburg increased $0.4 million, to $20.5
million, or 2.1%. Adjusted EBITDA increased 54.4%, to
$4.9 million from $3.2 million. In Lula, we improved Adjusted
EBITDA 38.0%, to $3.1 million.
Lula benefited from lower
operating costs and more efficient marketing programs.
Vicksburg's Adjusted EBITDA
increased 91.4%, to $1.9 million from
$1.0 million driven by optimization
of marketing programs and more streamlined food and beverage
operations.
Missouri – Net revenues
increased $2.6 million to
$61.5 million, or 4.5%, and Adjusted
EBITDA increased $2.5 million to
$16.7 million, or 17.2%. Net
revenues, Adjusted EBITDA and operating margins increased at each
of our four Missouri properties
during the quarter led by a 63.2% increase in Adjusted EBITDA at
Caruthersville which benefited
from improved parking and a new slots area during the
quarter. Boonville's net
revenues increased 6.0%, resulting in an EBITDA gain of
13.3%. Cape Girardeau
generated an Adjusted EBITDA gain of 15.4% on relatively flat
revenues as a result of lower cost of sales and lower marketing
costs. Kansas City's
Adjusted EBITDA increased 9.4%.
Pennsylvania – Net
revenues were $9.8 million, up 13.4%,
and Adjusted EBITDA was nearly flat, compared to $(0.4) million during the prior year. The
property generated a double-digit increase in gaming revenue
despite a decrease in total marketing expenses as it continues to
focus on rationalizing marketing costs.
Corporate Expenses
Corporate and development expenses were $7.6 million for the quarter compared to
$9.1 million in the first quarter of
fiscal 2015. The prior year's quarter included severance of
$2.3 million related to our corporate
office restructuring. Excluding the aforementioned items,
corporate expenses increased 10.9% year over year primarily related
to an increase in non-cash stock compensation expense and the
timing of our long-term incentive award, which occurred in first
quarter of the current year versus the second quarter of the prior
year.
Non-cash stock compensation expense was $1.2 million for the quarter compared to
$0.8 million in the first quarter of
fiscal 2015.
Capital Structure and Capital Expenditures
As of July 26, 2015, the Company
had:
- $62.0 million in cash and cash
equivalents, excluding $9.7 million
in restricted cash and investments;
- $989.3 million in total debt;
and
- $159.0 million in net line of
credit availability.
First quarter capital expenditures were $15.8 million, primarily consisting of
maintenance and gaming equipment purchases as well as spending
related to the South Tower hotel renovation in Bettendorf.
During the quarter, we spent $0.1
million on the previously announced up to $60 million land-based project at Bettendorf. We have spent $2.3 million on the project to date.
Consistent with previous guidance, the Company continues to
expect total capital expenditures for fiscal 2016 of approximately
$100 million to $105 million,
inclusive of approximately $45 million to
$50 million of capital spending this fiscal year related to
the land-based casino build out in Bettendorf.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Wednesday, September 2, 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 412-902-4263. The
conference call will be recorded and available for review starting
at 11:59 pm central on Wednesday, September 2, 2015, until 11:59 pm central on Wednesday, September 16, 2015, by dialing
877-344-7529; International: 412-317-0088 and access number
10071603.
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 Mississippi, Louisiana, Iowa, Missouri, Colorado, Florida 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
|
|
www.islecorp.com
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
July
26,
|
|
July
27,
|
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
Casino
|
|
$
260,053
|
|
$ 249,541
|
Rooms
|
|
8,115
|
|
8,031
|
Food, beverage,
pari-mutuel and other
|
|
32,989
|
|
33,466
|
Gross
revenues
|
|
301,157
|
|
291,038
|
Less promotional
allowances
|
|
(54,233)
|
|
(54,142)
|
Net
revenues
|
|
246,924
|
|
236,896
|
Operating
expenses:
|
|
|
|
|
Casino
|
|
38,713
|
|
39,002
|
Gaming
taxes
|
|
66,359
|
|
63,290
|
Rooms
|
|
1,883
|
|
1,847
|
Food, beverage,
pari-mutuel and other
|
|
12,122
|
|
11,847
|
Marine and
facilities
|
|
14,106
|
|
14,147
|
Marketing and
administrative
|
|
56,400
|
|
57,706
|
Corporate and
development
|
|
7,643
|
|
9,148
|
Depreciation and
amortization
|
|
20,051
|
|
19,409
|
Total operating
expenses
|
|
217,277
|
|
216,396
|
Operating
income
|
|
29,647
|
|
20,500
|
Interest
expense
|
|
(17,441)
|
|
(21,329)
|
Interest
income
|
|
79
|
|
87
|
Loss on early
extinguishment of debt
|
|
(2,966)
|
|
-
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
9,319
|
|
(742)
|
Income tax
provision
|
|
(851)
|
|
(983)
|
Income (loss) from
continuing operations
|
|
8,468
|
|
(1,725)
|
Loss from
discontinued operations, net
of income taxes
|
|
(5,324)
|
|
(592)
|
Net income
(loss)
|
|
$
3,144
|
|
$
(2,317)
|
|
|
|
|
|
Income (loss) per
common share-basic and diluted:
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
0.21
|
|
$
(0.04)
|
Loss from
discontinued operations, net
of income taxes
|
|
(0.13)
|
|
(0.02)
|
Net income
(loss)
|
|
$
0.08
|
|
$
(0.06)
|
|
|
|
|
|
Weighted average
basic shares
|
|
40,580,806
|
|
39,827,889
|
Weighted average
diluted shares
|
|
41,253,611
|
|
39,827,889
|
ISLE OF CAPRI
CASINOS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share and per share amounts)
|
(Unaudited)
|
|
July
26,
|
|
April
26,
|
ASSETS
|
2015
|
|
2015
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 61,966
|
|
$ 66,437
|
Marketable
securities
|
19,445
|
|
19,517
|
Accounts receivable,
net
|
11,585
|
|
11,171
|
Inventory
|
6,365
|
|
6,509
|
Deferred income
taxes
|
4,626
|
|
4,626
|
Prepaid expenses and
other assets
|
17,522
|
|
11,274
|
Assets held for
sale
|
5,386
|
|
138
|
Total current
assets
|
126,895
|
|
119,672
|
Property and
equipment, net
|
900,654
|
|
902,226
|
Other
assets:
|
|
|
|
Goodwill
|
108,970
|
|
108,970
|
Other intangible
assets, net
|
53,864
|
|
54,073
|
Deferred financing
costs, net
|
17,903
|
|
19,075
|
Restricted cash and
investments
|
9,724
|
|
9,193
|
Prepaid deposits and
other
|
5,229
|
|
4,743
|
Long-term assets held
for sale
|
-
|
|
9,810
|
Total
assets
|
$ 1,223,239
|
|
$ 1,227,762
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
75
|
|
$
170
|
Accounts
payable
|
25,925
|
|
19,690
|
Accrued
liabilities:
|
|
|
|
Payroll and
related
|
32,816
|
|
43,371
|
Property and other
taxes
|
23,110
|
|
20,456
|
Income tax
payable
|
125
|
|
125
|
Interest
|
14,492
|
|
15,350
|
Progressive jackpots
and slot club awards
|
16,520
|
|
16,123
|
Other
|
22,198
|
|
18,326
|
Total current
liabilities
|
135,261
|
|
133,611
|
Long-term debt, less
current maturities
|
989,209
|
|
992,712
|
Deferred income
taxes
|
38,185
|
|
37,334
|
Other accrued
liabilities
|
18,032
|
|
18,432
|
Other long-term
liabilities
|
13,912
|
|
22,211
|
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 July
26, 2015 and at April 26, 2015
|
421
|
|
421
|
Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued
|
-
|
|
-
|
Additional paid-in
capital
|
241,500
|
|
241,899
|
Retained earnings
(deficit)
|
(195,928)
|
|
(199,072)
|
|
45,993
|
|
43,248
|
Treasury stock,
1,375,953 shares at July 26, 2015 and 1,568,875 shares at April 26,
2015
|
(17,353)
|
|
(19,786)
|
Total stockholders'
equity
|
28,640
|
|
23,462
|
Total liabilities and
stockholders' equity
|
$ 1,223,239
|
|
$ 1,227,762
|
Isle of Capri
Casinos, Inc.
|
Supplemental Data
- Net Revenues
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
July
26,
|
|
July
27,
|
|
|
|
2015
|
|
2014
|
Colorado
|
|
|
|
|
|
Black Hawk
|
|
$ 34,406
|
|
$ 31,681
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
Pompano
|
|
41,898
|
|
37,724
|
|
|
|
|
|
|
Iowa
|
|
|
|
|
|
Bettendorf
|
|
17,992
|
|
19,534
|
|
Marquette
|
|
6,871
|
|
6,487
|
|
Waterloo
|
|
22,043
|
|
21,252
|
|
Iowa Total
|
|
46,906
|
|
47,273
|
|
|
|
|
|
|
Louisiana
|
|
|
|
|
|
Lake
Charles
|
|
31,825
|
|
32,536
|
|
|
|
|
|
|
Mississippi
|
|
|
|
|
|
Lula
|
|
12,947
|
|
12,675
|
|
Vicksburg
|
|
7,587
|
|
7,442
|
|
Mississippi
Total
|
|
20,534
|
|
20,117
|
|
|
|
|
|
|
Missouri
|
|
|
|
|
|
Boonville
|
|
20,338
|
|
19,190
|
|
Cape
Girardeau
|
|
14,481
|
|
14,360
|
|
Caruthersville
|
|
8,422
|
|
7,483
|
|
Kansas
City
|
|
18,279
|
|
17,829
|
|
Missouri
Total
|
|
61,520
|
|
58,862
|
|
|
|
|
|
|
Pennsylvania
|
|
|
|
|
|
Nemacolin
|
|
9,816
|
|
8,657
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
|
246,905
|
|
236,850
|
Other
|
|
19
|
|
46
|
Net Revenues from
Continuing Operations
|
|
$ 246,924
|
|
$ 236,896
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
(unaudited, in
thousands)
|
|
|
|
Three Months Ended
July 26, 2015
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
8,471
|
|
$
2,239
|
|
$
14
|
|
$ -
|
|
$ 10,724
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
5,842
|
|
1,899
|
|
14
|
|
-
|
|
7,755
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
2,173
|
|
2,265
|
|
10
|
|
-
|
|
4,448
|
Marquette
|
|
1,240
|
|
361
|
|
6
|
|
-
|
|
1,607
|
Waterloo
|
|
5,410
|
|
1,311
|
|
8
|
|
-
|
|
6,729
|
|
Iowa Total
|
|
8,823
|
|
3,937
|
|
24
|
|
-
|
|
12,784
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
1,772
|
|
2,780
|
|
9
|
|
-
|
|
4,561
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
1,781
|
|
1,270
|
|
6
|
|
-
|
|
3,057
|
Vicksburg
|
|
988
|
|
892
|
|
7
|
|
-
|
|
1,887
|
|
Mississippi
Total
|
|
2,769
|
|
2,162
|
|
13
|
|
-
|
|
4,944
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
6,629
|
|
1,029
|
|
12
|
|
-
|
|
7,670
|
Cape
Girardeau
|
|
(221)
|
|
2,881
|
|
7
|
|
-
|
|
2,667
|
Caruthersville
|
|
1,556
|
|
612
|
|
6
|
|
-
|
|
2,174
|
Kansas
City
|
|
3,229
|
|
991
|
|
9
|
|
-
|
|
4,229
|
|
Missouri
Total
|
|
11,193
|
|
5,513
|
|
34
|
|
-
|
|
16,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(1,141)
|
|
1,064
|
|
29
|
|
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
|
37,729
|
|
19,594
|
|
137
|
|
-
|
|
57,460
|
Corporate and
Other
|
|
(8,082)
|
|
457
|
|
1,224
|
|
-
|
|
(6,401)
|
Total
|
|
$
29,647
|
|
$
20,051
|
|
$
1,361
|
|
$ -
|
|
$ 51,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 27, 2014
|
|
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
Black Hawk,
Colorado
|
|
$
4,510
|
|
$
2,343
|
|
$
8
|
|
$ 1,013
|
|
$ 7,874
|
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
|
4,839
|
|
1,742
|
|
6
|
|
-
|
|
6,587
|
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf
|
|
4,016
|
|
1,452
|
|
4
|
|
-
|
|
5,472
|
Marquette
|
|
898
|
|
456
|
|
1
|
|
-
|
|
1,355
|
Waterloo
|
|
5,348
|
|
1,186
|
|
4
|
|
-
|
|
6,538
|
|
Iowa Total
|
|
10,262
|
|
3,094
|
|
9
|
|
-
|
|
13,365
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
|
2,345
|
|
2,830
|
|
4
|
|
-
|
|
5,179
|
|
|
|
|
|
|
|
|
|
|
|
|
Lula
|
|
926
|
|
1,287
|
|
3
|
|
-
|
|
2,216
|
Vicksburg
|
|
90
|
|
892
|
|
4
|
|
-
|
|
986
|
|
Mississippi
Total
|
|
1,016
|
|
2,179
|
|
7
|
|
-
|
|
3,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville
|
|
5,778
|
|
988
|
|
6
|
|
-
|
|
6,772
|
Cape
Girardeau
|
|
(479)
|
|
2,790
|
|
1
|
|
-
|
|
2,312
|
Caruthersville
|
|
660
|
|
668
|
|
4
|
|
-
|
|
1,332
|
Kansas
City
|
|
2,912
|
|
949
|
|
4
|
|
-
|
|
3,865
|
|
Missouri
Total
|
|
8,871
|
|
5,395
|
|
15
|
|
-
|
|
14,281
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
|
(1,773)
|
|
1,357
|
|
1
|
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Properties
|
|
30,070
|
|
18,940
|
|
50
|
|
1,013
|
|
50,073
|
Corporate and
Other
|
|
(9,570)
|
|
469
|
|
829
|
|
2,259
|
|
(6,013)
|
Total
|
|
$
20,500
|
|
$
19,409
|
|
$
879
|
|
$ 3,272
|
|
$ 44,060
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
Income (Loss) From Continuing Operations to Adjusted
EBITDA
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
July
26,
|
|
July
27,
|
|
|
2015
|
|
2014
|
Income (loss) from
continuing operations
|
$ 8,468
|
|
$ (1,725)
|
|
Income tax
provision
|
851
|
|
983
|
|
Loss on early
extinguishment of debt
|
2,966
|
|
-
|
|
Interest
income
|
(79)
|
|
(87)
|
|
Interest
expense
|
17,441
|
|
21,329
|
|
Depreciation and
amortization
|
20,051
|
|
19,409
|
|
Stock-based
compensation
|
1,361
|
|
879
|
|
Severance
charges
|
-
|
|
2,259
|
|
Colorado referendum
costs
|
-
|
|
1,013
|
Adjusted EBITDA
(1)
|
$ 51,059
|
|
$ 44,060
|
Isle of Capri
Casinos, Inc.
|
Reconciliation of
GAAP Income (Loss) From Continuing Operations to Adjusted Income
and GAAP Income (Loss) From Continuing Operations Per Share to
Adjusted Income Per Share
|
(unaudited, in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
July
26,
|
|
July
27,
|
|
2015
|
|
2014
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
$ 8,468
|
|
$ (1,725)
|
Loss on early
extinguishment of debt
|
2,966
|
|
-
|
Severance expense
(3)
|
-
|
|
2,259
|
Colorado referendum
expense (3)
|
-
|
|
1,013
|
Adjusted income
(2)
|
$ 11,434
|
|
$ 1,547
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations per share
|
$ 0.21
|
|
$ (0.04)
|
Loss on early
extinguishment of debt
|
0.07
|
|
-
|
Severance expense
(3)
|
-
|
|
0.06
|
Colorado referendum
expense (3)
|
-
|
|
0.02
|
Adjusted income per
share
|
$ 0.28
|
|
$ 0.04
|
1.
|
Adjusted EBITDA is
"earnings from continuing operations before interest and other
non-operating income (expense), income taxes, stock-based
compensation, certain severance expenses, certain expenses related
to the Colorado gaming referendum, 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
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.
|
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 gain (loss) on early
extinguishment of debt, certain severance expenses, certain
expenses related to the Colorado gaming referendum, certain asset
sale gains and preopening expenses. 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 the loss on early extinguishment of debt, certain severance
expenses, certain expenses related to the Colorado gaming
referendum, certain asset sale gains and preopening
expenses.
|
|
|
3.
|
The Company recorded
$2.3 million of severance expense in the first quarter of fiscal
2015 related to restructuring at the corporate office. The
Company incurred $1.0 million of expense during the first quarter
of fiscal 2015 related to the Colorado gaming expansion
referendum.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2016-first-quarter-results-300136536.html
SOURCE Isle of Capri Casinos, Inc.