Isle Of Capri Casinos, Inc. Announces Fiscal 2013 Second Quarter
Results
ST. LOUIS, Nov. 29, 2012 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the second quarter of fiscal year 2013 ended
October 28, 2012 and other
Company-related news.
Consolidated Results
The following table outlines the Company's financial results
(dollars in millions, except per shares data, unaudited):
|
Three
Months Ended
|
|
Six
Months Ended
|
|
October
28,
|
|
October
23,
|
|
October
28,
|
|
October
23,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
revenues
|
$
223.2
|
|
$
231.4
|
|
$
459.0
|
|
$
459.0
|
|
Consolidated adjusted EBITDA (1)
|
38.7
|
|
41.9
|
|
83.7
|
|
80.7
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
(4.3)
|
|
(1.0)
|
|
0.4
|
|
(3.6)
|
|
Loss from
discontinued operations
|
(2.3)
|
|
(0.5)
|
|
(0.4)
|
|
(0.2)
|
|
Net income
(loss)
|
(6.6)
|
|
(1.5)
|
|
-
|
|
(3.8)
|
|
Diluted
income (loss) per share from continuing operations
|
(0.11)
|
|
(0.03)
|
|
0.01
|
|
(0.09)
|
|
Diluted
loss per share from discontinued operations
|
(0.06)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
Diluted
income (loss) per share
|
(0.17)
|
|
(0.04)
|
|
-
|
|
(0.10)
|
Virginia McDowell, president and
chief executive officer remarked, "The second quarter was a period
of achievements and challenges. Similar to other regional gaming
operators, we experienced softening net revenues during September
and October. Cost containment efforts led to increased adjusted
EBITDA and margins at several of our properties; however we could
not overcome the softness in our Mississippi business."
"We continue to be hampered by several factors in Mississippi which accounted for more than 150%
of our year-over-year property adjusted EBITDA decline. Some of
these factors, such as construction disruption in Vicksburg, will end in the coming weeks,
however others related to market conditions and operations have the
full attention and focus of our team. The balance of our
properties experienced an overall increase in adjusted EBITDA of
2.5%, while net revenue decreased 1.9%.
"Our new casino property in Cape
Girardeau debuted on October
30, our rebranding project in Vicksburg is nearly complete and the
renovation of the primary Lake Charles hotel tower will be complete
by the end of December. Additionally, we have begun
construction on our Lady Luck Casino at Nemacolin Woodlands Resort
in Pennsylvania. We are achieving
our goals of renewing our asset base and restyling our customer
experiences."
Operating Results
Net revenues decreased $8.2
million during the period, to $223.2
million. Consolidated adjusted EBITDA decreased $3.2 million, or 7.6%, to 38.7 million. This
decrease of $3.2 million is
attributable to a decrease in adjusted EBITDA of $3.2 million at our Mississippi properties and a $1.0 million increase in corporate legal costs,
which offset gains in adjusted EBITDA at several of our other
properties.
Diluted loss per share from continuing operations for the
quarter was $(0.11) compared to
$(0.03) for the second quarter last
year. The results for the current year were impacted by
approximately $2.7 million in
preopening costs associated with Cape
Girardeau and $2.5 million of
costs associated with the refinancing of our subordinated debt in
July. Before consideration of these items, diluted earnings
per share from continuing operations for the quarter would have
been break-even ($0.00).
As a result of efficiencies in marketing and cost containment
efforts, we had favorable results at the following properties:
- Black Hawk – Adjusted EBITDA increased 2.2% to $7.7 million despite a decrease in net revenues
of 3.9% to $30.7 million, resulting
in margin improvement of nearly 150 basis points to 25%.
- Pompano – Despite the continued year over year impact of a
major expansion at a competing facility, adjusted EBITDA increased
$0.4 million while net revenues
increased $0.8 million to
$33.7 million. In addition,
construction was completed to convert the buffet to a Farmer's
Pick® in mid-September.
- Quad Cities and Waterloo – Adjusted EBITDA increased a combined
5.2% to $13.9 million on increased
revenues of 1.5% to $51.0 million,
resulting in margin improvement of over 90 basis points to
27.2%. The results were also favorably impacted by the
successful implementation of Fan Club® in Waterloo and
the introduction of our new Lone
Wolf® Bar.
- Lake Charles – Adjusted EBITDA increased $0.3 million despite decreased net revenues of
$2.9 million for the quarter. Results
were negatively impacted by construction disruption associated with
ongoing renovation of the entire hotel tower, which caused an
average of approximately 20% of our total hotel rooms to be out of
service during the quarter.
- Kansas City – Adjusted EBITDA
remained flat at $4.1 million despite
the impact of a new competitor in the market, which resulted in
decreased revenues of $1.4
million.
Our Mississippi properties
faced significant challenges during the quarter, which contributed
to over 150% of our property adjusted EBITDA loss year over
year.
In Vicksburg, our results were
impacted by construction disruption associated with the on-going
rebranding of the property to a Lady Luck® Casino, as we
experienced an average of 200 to 400 slot machines out of service
per day. The results were also impacted by an overall market
decline of 6% during the quarter.
In Natchez, our results were
impacted by significant weather disruption and damage, where our
boat was closed for four days due to a storm that caused meaningful
decreased patron count for approximately one month. In
addition, the adverse weather conditions damaged each of the three
entrances to the facility as well as some infrastructure
components. The facility continues to face extraordinarily
low river levels, causing our boat to nearly sit on the bottom of
the river, which has severely impacted the entrance and overall
customer experience. We are committed to mitigating the damage done
to our facility, but we expect business to suffer until water
levels return to a reasonable level in this section of the
Mississippi River. Additionally, pending regulatory approval, a new
competitor facility is expected to open in the market before the
end of the year.
In Lula, the market changes that occurred following the flooding
in last fiscal year have not improved. The market continues
to decline, as customers continue to patronize the facilities in
the Memphis and Little Rock areas that benefitted from the
prior year's flooding. We are pursuing financial improvements
through cost savings and operational consolidations.
Corporate Expenses and Other Items
Corporate and development expenses were $10.8 million for the quarter, an increase of
$1.5 million compared to prior
year. Included in the results for the fiscal 2013 quarter are
$1.5 million in refinancing related
costs and $1.0 million in increased
legal costs offset by lower insurance costs and stock compensation
expenses.
Non-cash stock compensation expense was $1.5 million for the quarter compared to
$2.3 million in the second quarter of
fiscal 2012.
Preopening costs associated with Cape
Girardeau were $2.7
million.
Discontinued Operations
Included in discontinued operations are the operating results of
our Biloxi property approximately
$2.1 million of charges related to
Hurricane Isaac for costs incurred and a credit against the
purchase price to satisfy our obligation to repair the property, as
required by the purchase agreement.
Development
We have begun preliminary demolition in advance of construction
of Lady Luck Casino at Nemacolin Woodlands Resort. We currently
expect to open Lady Luck Nemacolin during summer 2013. The facility
is planned to include 600 slot machines, 28 table games, an Otis
& Henry's Bar & Grill, and a Lone
Wolf Bar. The Company currently expects the total
project to cost approximately $57 million to
$60 million, including the $12.5
million license fee. Several aspects of the project
are currently out for bid and we expect to get firm pricing on
those over the next few weeks.
In Vicksburg, our Lady Luck
rebranding project is complete, and we will hold our grand
re-opening ceremony tomorrow. The property is a fully-branded
Lady Luck casino, as we have greatly enhanced the exterior and
interior, completed the renovation of the casino floor and have
introduced an Otis & Henry's Bar & Grill and a Lone Wolf Bar. The property also has
implemented our Fan Club® program.
Capital Structure
As of October 28, 2012, the
Company had $75.5 million in cash and
cash equivalents, $1.18 billion in
total debt and $199 million in net
line of credit availability.
Second quarter capital expenditures were $46 million, of which $32
million related to Cape
Girardeau, and $14 million at
our existing properties. The Company expects capital expenditures
to be approximately $80 million to $90
million for the balance of the fiscal year, including
maintenance capital, final costs in Cape
Girardeau and construction costs in Nemacolin of approximately $20 million to $30 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Thursday, November 29, 2012 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 877-917-8929. International callers can
access the conference call by dialing 517-308-9020. The
conference call reference number is 311019. The conference call
will be recorded and available for review starting at noon central
on Thursday, November 27, 2012, until
11:59 pm central on Tuesday, December 6, 2012, by dialing
866-463-2179; International: 203-369-1376 and access number
7007.
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 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. We are developing a new facility at
the 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
|
|
Six
Months Ended
|
|
|
|
October
28,
|
|
October
23,
|
|
October
28,
|
|
October
23,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$
234,648
|
|
$
239,707
|
|
$
484,917
|
|
$
474,934
|
|
|
Rooms
|
|
8,328
|
|
8,419
|
|
16,958
|
|
16,891
|
|
|
Food,
beverage, pari-mutuel and other
|
|
30,437
|
|
30,723
|
|
63,243
|
|
60,350
|
|
|
Insurance
recoveries
|
|
-
|
|
111
|
|
-
|
|
111
|
|
|
Gross
revenues
|
|
273,413
|
|
278,960
|
|
565,118
|
|
552,286
|
|
|
Less
promotional allowances
|
|
(50,206)
|
|
(47,534)
|
|
(106,088)
|
|
(93,256)
|
|
|
Net
revenues
|
|
223,207
|
|
231,426
|
|
459,030
|
|
459,030
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
36,802
|
|
38,172
|
|
75,298
|
|
74,143
|
|
|
Gaming
taxes
|
|
58,619
|
|
59,435
|
|
120,247
|
|
118,952
|
|
|
Rooms
|
|
1,781
|
|
1,929
|
|
3,554
|
|
3,848
|
|
|
Food,
beverage, pari-mutuel and other
|
|
9,217
|
|
9,590
|
|
19,321
|
|
19,543
|
|
|
Marine and
facilities
|
|
13,888
|
|
14,933
|
|
27,588
|
|
29,059
|
|
|
Marketing
and administrative
|
|
56,464
|
|
58,594
|
|
114,420
|
|
115,541
|
|
|
Corporate
and development
|
|
10,777
|
|
9,327
|
|
19,250
|
|
21,593
|
|
|
Preopening
|
|
2,654
|
|
27
|
|
3,341
|
|
63
|
|
|
Depreciation and amortization
|
|
16,850
|
|
19,646
|
|
33,672
|
|
38,822
|
|
|
Total
operating expenses
|
|
207,052
|
|
211,653
|
|
416,691
|
|
421,564
|
|
|
Operating
income
|
|
16,155
|
|
19,773
|
|
42,339
|
|
37,466
|
|
|
Interest
expense
|
|
(21,985)
|
|
(21,877)
|
|
(42,416)
|
|
(43,702)
|
|
|
Interest
income
|
|
131
|
|
192
|
|
306
|
|
435
|
|
|
Derivative
income (expense)
|
|
176
|
|
260
|
|
310
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations before
|
|
|
|
|
|
|
|
|
|
|
income
taxes
|
|
(5,523)
|
|
(1,652)
|
|
539
|
|
(5,772)
|
|
|
Income tax
(provision) benefit
|
|
1,182
|
|
622
|
|
(136)
|
|
2,183
|
|
|
Income
(loss) from continuing operations
|
|
(4,341)
|
|
(1,030)
|
|
403
|
|
(3,589)
|
|
|
Income
(loss) from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(2,312)
|
|
(427)
|
|
(395)
|
|
(191)
|
|
|
Net income
(loss)
|
|
$
(6,653)
|
|
$
(1,457)
|
|
$
8
|
|
$
(3,780)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share-basic:
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
$
(0.11)
|
|
$
(0.03)
|
|
$
0.01
|
|
$
(0.09)
|
|
|
Income
from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(0.06)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
|
Net income
(loss)
|
|
$
(0.17)
|
|
$
(0.04)
|
|
$
-
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share-dilutive:
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
$
(0.11)
|
|
$
(0.03)
|
|
$
0.01
|
|
$
(0.09)
|
|
|
Income
from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
net of
income taxes
|
|
(0.06)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
|
Net income
(loss)
|
|
$
(0.17)
|
|
$
(0.04)
|
|
$
-
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average basic shares
|
|
39,336,134
|
|
38,753,049
|
|
39,177,208
|
|
38,515,099
|
|
|
Weighted
average diluted shares
|
|
39,336,134
|
|
38,753,049
|
|
39,192,075
|
|
38,515,099
|
|
|
ISLE OF
CAPRI CASINOS, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands, except share and per share amounts)
|
|
|
|
|
|
October
28,
|
|
April
29,
|
|
2012
|
|
2012
|
|
ASSETS
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
$
75,479
|
|
$
94,461
|
|
Marketable
securities
|
24,277
|
|
24,943
|
|
Accounts
receivable, net
|
8,007
|
|
6,941
|
|
Insurance
receivable
|
-
|
|
7,497
|
|
Income
taxes receivable
|
4,723
|
|
2,161
|
|
Deferred
income taxes
|
615
|
|
627
|
|
Prepaid
expenses and other assets
|
28,550
|
|
18,950
|
|
Assets
held for sale
|
45,557
|
|
46,703
|
|
Total
current assets
|
187,208
|
|
202,283
|
|
Property
and equipment, net
|
1,009,406
|
|
950,014
|
|
Other
assets:
|
|
|
|
|
Goodwill
|
330,903
|
|
330,903
|
|
Other
intangible assets, net
|
61,167
|
|
56,586
|
|
Deferred
financing costs, net
|
18,246
|
|
13,205
|
|
Restricted
cash
|
12,916
|
|
12,551
|
|
Prepaid
deposits and other
|
7,469
|
|
9,428
|
|
Total
assets
|
$
1,627,315
|
|
$
1,574,970
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current
maturities of long-term debt
|
$
5,406
|
|
$
5,393
|
|
Accounts
payable
|
33,282
|
|
23,536
|
|
Accrued
liabilities:
|
|
|
|
|
Payroll
and related
|
37,043
|
|
38,566
|
|
Property
and other taxes
|
25,168
|
|
19,522
|
|
Interest
|
14,099
|
|
9,296
|
|
Progressive jackpots and slot club awards
|
15,136
|
|
14,892
|
|
Liabilities related to assets held for
sale
|
8,041
|
|
4,362
|
|
Other
|
40,777
|
|
40,549
|
|
Total
current liabilities
|
178,952
|
|
156,116
|
|
Long-term
debt, less current maturities
|
1,177,065
|
|
1,149,038
|
|
Deferred
income taxes
|
35,804
|
|
36,057
|
|
Other
accrued liabilities
|
32,162
|
|
33,583
|
|
Other
long-term liabilities
|
16,489
|
|
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 October 28, 2012 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
|
244,656
|
|
247,855
|
|
Retained
earnings (deficit)
|
(26,650)
|
|
(26,658)
|
|
Accumulated other comprehensive (loss)
income
|
(544)
|
|
(855)
|
|
217,883
|
|
220,763
|
|
Treasury
stock, 2,577,155 shares at October 28, 2012 and 3,083,867
shares
|
|
|
|
|
at April
29, 2012
|
(31,040)
|
|
(37,143)
|
|
Total
stockholders' equity
|
186,843
|
|
183,620
|
|
Total
liabilities and stockholders' equity
|
$
1,627,315
|
|
$
1,574,970
|
|
Isle of
Capri Casinos, Inc.
|
|
Supplemental Data - Net Revenues
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
October
28,
|
|
October
23,
|
|
October
28,
|
|
October
23,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
|
$
29,749
|
|
$
32,617
|
|
$
63,327
|
|
$
68,541
|
|
Kansas
City, Missouri
|
|
18,012
|
|
19,453
|
|
36,532
|
|
39,111
|
|
Boonville,
Missouri
|
|
19,798
|
|
19,736
|
|
40,186
|
|
39,823
|
|
Bettendorf, Iowa
|
|
19,694
|
|
19,130
|
|
39,549
|
|
39,211
|
|
Marquette,
Iowa
|
|
7,332
|
|
7,271
|
|
14,713
|
|
14,772
|
|
Waterloo,
Iowa
|
|
20,925
|
|
20,601
|
|
42,337
|
|
41,101
|
|
Black
Hawk, Colorado
|
|
30,670
|
|
31,905
|
|
62,023
|
|
63,266
|
|
Pompano,
Florida
|
|
33,691
|
|
32,869
|
|
68,376
|
|
67,571
|
|
|
|
179,871
|
|
183,582
|
|
367,043
|
|
373,396
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
|
5,962
|
|
7,036
|
|
12,963
|
|
11,061
|
|
Lula,
Mississippi
|
|
12,772
|
|
14,213
|
|
27,403
|
|
23,965
|
|
Vicksburg,
Mississippi
|
|
5,897
|
|
7,411
|
|
13,455
|
|
13,790
|
|
Caruthersville, Missouri
|
|
8,144
|
|
8,204
|
|
16,777
|
|
15,416
|
|
Davenport,
Iowa
|
|
10,390
|
|
10,516
|
|
21,036
|
|
20,770
|
|
|
|
43,165
|
|
47,380
|
|
91,634
|
|
85,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
Net Revenues before Other
|
|
223,036
|
|
230,962
|
|
458,677
|
|
458,398
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
171
|
|
464
|
|
353
|
|
632
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenues from Continuing Operations
|
|
$
223,207
|
|
$
231,426
|
|
$
459,030
|
|
$
459,030
|
|
Isle of
Capri Casinos, Inc.
|
|
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended October 28, 2012
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Stock-Based Compensation
|
|
Preopening
|
|
Financing
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
$
1,867
|
|
$
2,310
|
|
$
2
|
|
$
-
|
|
$
-
|
|
$
4,179
|
|
Kansas
City, Missouri
|
3,152
|
|
980
|
|
4
|
|
-
|
|
-
|
|
4,136
|
|
Boonville,
Missouri
|
5,918
|
|
886
|
|
6
|
|
-
|
|
-
|
|
6,810
|
|
Bettendorf, Iowa
|
3,578
|
|
1,770
|
|
4
|
|
-
|
|
-
|
|
5,352
|
|
Marquette,
Iowa
|
1,172
|
|
445
|
|
5
|
|
-
|
|
-
|
|
1,622
|
|
Waterloo,
Iowa
|
5,218
|
|
1,165
|
|
6
|
|
-
|
|
-
|
|
6,389
|
|
Black
Hawk, Colorado
|
5,435
|
|
2,210
|
|
14
|
|
-
|
|
-
|
|
7,659
|
|
Pompano,
Florida
|
3,083
|
|
1,803
|
|
8
|
|
-
|
|
-
|
|
4,894
|
|
|
29,423
|
|
11,569
|
|
49
|
|
-
|
|
-
|
|
41,041
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
118
|
|
359
|
|
5
|
|
-
|
|
-
|
|
482
|
|
Lula,
Mississippi
|
(803)
|
|
1,702
|
|
6
|
|
-
|
|
-
|
|
905
|
|
Vicksburg,
Mississippi
|
(860)
|
|
1,218
|
|
5
|
|
-
|
|
-
|
|
363
|
|
Caruthersville, Missouri
|
593
|
|
835
|
|
5
|
|
-
|
|
-
|
|
1,433
|
|
Davenport,
Iowa
|
1,566
|
|
546
|
|
6
|
|
-
|
|
-
|
|
2,118
|
|
|
614
|
|
4,660
|
|
27
|
|
-
|
|
-
|
|
5,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
30,037
|
|
16,229
|
|
76
|
|
-
|
|
-
|
|
46,342
|
|
Corporate
and Other
|
(13,882)
|
|
621
|
|
1,501
|
|
2,654
|
|
1,478
|
|
(7,628)
|
|
Total
|
$
16,155
|
|
$
16,850
|
|
$
1,577
|
|
$
2,654
|
|
$
1,478
|
|
$
38,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended October 23, 2011
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Stock-Based Compensation
|
|
Preopening
|
|
Financing
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
$
1,475
|
|
$
2,355
|
|
$
12
|
|
$
-
|
|
$
-
|
|
$
3,842
|
|
Kansas
City, Missouri
|
2,989
|
|
1,073
|
|
2
|
|
-
|
|
-
|
|
4,064
|
|
Boonville,
Missouri
|
6,204
|
|
878
|
|
15
|
|
-
|
|
-
|
|
7,097
|
|
Bettendorf, Iowa
|
2,559
|
|
2,121
|
|
6
|
|
-
|
|
-
|
|
4,686
|
|
Marquette,
Iowa
|
1,219
|
|
424
|
|
8
|
|
-
|
|
-
|
|
1,651
|
|
Waterloo,
Iowa
|
4,529
|
|
1,644
|
|
12
|
|
-
|
|
-
|
|
6,185
|
|
Black
Hawk, Colorado
|
4,460
|
|
3,023
|
|
11
|
|
-
|
|
-
|
|
7,494
|
|
Pompano,
Florida
|
1,779
|
|
2,692
|
|
7
|
|
-
|
|
-
|
|
4,478
|
|
|
25,214
|
|
14,210
|
|
73
|
|
-
|
|
-
|
|
39,497
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
1,114
|
|
374
|
|
8
|
|
-
|
|
-
|
|
1,496
|
|
Lula,
Mississippi
|
354
|
|
1,671
|
|
16
|
|
-
|
|
-
|
|
2,041
|
|
Vicksburg,
Mississippi
|
91
|
|
1,282
|
|
3
|
|
-
|
|
-
|
|
1,376
|
|
Caruthersville, Missouri
|
856
|
|
844
|
|
8
|
|
-
|
|
-
|
|
1,708
|
|
Davenport,
Iowa
|
1,741
|
|
558
|
|
8
|
|
-
|
|
-
|
|
2,307
|
|
|
4,156
|
|
4,729
|
|
43
|
|
-
|
|
-
|
|
8,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
29,370
|
|
18,939
|
|
116
|
|
-
|
|
-
|
|
48,425
|
|
Corporate
and Other
|
(9,597)
|
|
707
|
|
2,316
|
|
27
|
|
-
|
|
(6,547)
|
|
Total
|
$
19,773
|
|
$
19,646
|
|
$
2,432
|
|
$
27
|
|
$
-
|
|
$
41,878
|
|
Isle of
Capri Casinos, Inc.
|
|
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended October 28, 2012
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Stock-Based Compensation
|
|
Preopening
|
|
Financing
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
$
5,230
|
|
$
4,422
|
|
$
6
|
|
$
-
|
|
$
-
|
|
$
9,658
|
|
Kansas
City, Missouri
|
6,267
|
|
2,019
|
|
6
|
|
-
|
|
-
|
|
8,292
|
|
Boonville,
Missouri
|
12,412
|
|
1,753
|
|
11
|
|
-
|
|
-
|
|
14,176
|
|
Bettendorf, Iowa
|
7,108
|
|
3,483
|
|
9
|
|
-
|
|
-
|
|
10,600
|
|
Marquette,
Iowa
|
2,431
|
|
876
|
|
10
|
|
-
|
|
-
|
|
3,317
|
|
Waterloo,
Iowa
|
10,132
|
|
2,657
|
|
11
|
|
-
|
|
-
|
|
12,800
|
|
Black
Hawk, Colorado
|
10,843
|
|
4,358
|
|
24
|
|
-
|
|
-
|
|
15,225
|
|
Pompano,
Florida
|
5,820
|
|
3,577
|
|
14
|
|
-
|
|
-
|
|
9,411
|
|
|
60,243
|
|
23,145
|
|
91
|
|
-
|
|
-
|
|
83,479
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
961
|
|
827
|
|
10
|
|
-
|
|
-
|
|
1,798
|
|
Lula,
Mississippi
|
304
|
|
3,425
|
|
11
|
|
-
|
|
-
|
|
3,740
|
|
Vicksburg,
Mississippi
|
(265)
|
|
2,262
|
|
9
|
|
-
|
|
-
|
|
2,006
|
|
Caruthersville, Missouri
|
1,416
|
|
1,691
|
|
10
|
|
-
|
|
-
|
|
3,117
|
|
Davenport,
Iowa
|
3,167
|
|
1,074
|
|
11
|
|
-
|
|
-
|
|
4,252
|
|
|
5,583
|
|
9,279
|
|
51
|
|
-
|
|
-
|
|
14,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
65,826
|
|
32,424
|
|
142
|
|
-
|
|
-
|
|
98,392
|
|
Corporate
and Other
|
(23,487)
|
|
1,248
|
|
2,753
|
|
3,341
|
|
1,478
|
|
(14,667)
|
|
Total
|
$
42,339
|
|
$
33,672
|
|
$
2,895
|
|
$
3,341
|
|
$
1,478
|
|
$
83,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended October 23, 2011
|
|
|
Operating Income (Loss)
|
|
Depreciation and Amortization
|
|
Stock-Based Compensation
|
|
Preopening
|
|
Financing
|
|
Adjusted EBITDA
|
|
Properties
Not Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake
Charles, Louisiana
|
$
5,934
|
|
$
4,664
|
|
$
31
|
|
$
-
|
|
$
-
|
|
$
10,629
|
|
Kansas
City, Missouri
|
6,179
|
|
2,012
|
|
7
|
|
-
|
|
-
|
|
8,198
|
|
Boonville,
Missouri
|
12,522
|
|
1,756
|
|
34
|
|
-
|
|
-
|
|
14,312
|
|
Bettendorf, Iowa
|
5,533
|
|
4,150
|
|
11
|
|
-
|
|
-
|
|
9,694
|
|
Marquette,
Iowa
|
2,512
|
|
856
|
|
15
|
|
-
|
|
-
|
|
3,383
|
|
Waterloo,
Iowa
|
8,682
|
|
3,274
|
|
26
|
|
-
|
|
-
|
|
11,982
|
|
Black
Hawk, Colorado
|
8,093
|
|
6,029
|
|
20
|
|
-
|
|
-
|
|
14,142
|
|
Pompano,
Florida
|
4,699
|
|
5,325
|
|
12
|
|
-
|
|
-
|
|
10,036
|
|
|
54,154
|
|
28,066
|
|
156
|
|
-
|
|
-
|
|
82,376
|
|
Properties
Impacted by Flooding
|
|
|
|
|
|
|
|
|
|
|
|
|
Natchez,
Mississippi
|
1,308
|
|
734
|
|
16
|
|
-
|
|
-
|
|
2,058
|
|
Lula,
Mississippi
|
(234)
|
|
3,442
|
|
35
|
|
-
|
|
-
|
|
3,243
|
|
Vicksburg,
Mississippi
|
56
|
|
2,551
|
|
3
|
|
-
|
|
-
|
|
2,610
|
|
Caruthersville, Missouri
|
1,051
|
|
1,629
|
|
16
|
|
-
|
|
-
|
|
2,696
|
|
Davenport,
Iowa
|
3,433
|
|
1,122
|
|
16
|
|
-
|
|
-
|
|
4,571
|
|
|
5,614
|
|
9,478
|
|
86
|
|
-
|
|
-
|
|
15,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Properties
|
59,768
|
|
37,544
|
|
242
|
|
-
|
|
-
|
|
97,554
|
|
Corporate
and Other
|
(22,302)
|
|
1,278
|
|
4,137
|
|
63
|
|
-
|
|
(16,824)
|
|
Total
|
$
37,466
|
|
$
38,822
|
|
$
4,379
|
|
$
63
|
|
$
-
|
|
$
80,730
|
|
Isle of
Capri Casinos, Inc.
|
|
Reconciliation of Income (Loss) From Continuing
Operations to Adjusted EBITDA
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
October
28,
|
|
October
23,
|
|
October
28,
|
|
October
23,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Income
(loss) from continuing operations
|
|
$
(4,341)
|
|
$
(1,030)
|
|
$
403
|
|
$
(3,589)
|
|
Income tax
provision
|
|
(1,182)
|
|
(622)
|
|
136
|
|
(2,183)
|
|
Derivative
(income) expense
|
|
(176)
|
|
(260)
|
|
(310)
|
|
(29)
|
|
Interest
income
|
|
(131)
|
|
(192)
|
|
(306)
|
|
(435)
|
|
Interest
expense
|
|
21,985
|
|
21,877
|
|
42,416
|
|
43,702
|
|
Depreciation and amortization
|
|
16,850
|
|
19,646
|
|
33,672
|
|
38,822
|
|
Stock-based compensation
|
|
1,577
|
|
2,432
|
|
2,895
|
|
4,379
|
|
Preopening
|
|
2,654
|
|
27
|
|
3,341
|
|
63
|
|
Financing
related
|
|
1,478
|
|
-
|
|
1,478
|
|
-
|
|
Adjusted
EBITDA
|
|
$
38,714
|
|
$
41,878
|
|
$
83,725
|
|
$
80,730
|
|
1.
|
Adjusted
EBITDA is "earnings before interest and other non-operating income
(expense), income taxes, stock-based compensation, preopening
expense 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 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.
|
SOURCE Isle of Capri Casinos, Inc.