Isle of Capri Casinos, Inc. Announces Fiscal 2011 Second Quarter Results
- Company selected to develop Cape Girardeau, Missouri casino
- Property EBITDA increases by 11.3%, including new Vicksburg property
- Same-Store EBITDA and EBITDA margins increase at 11 of 14 properties
- Marketing, cost-containment lead to favorable financial results while net revenue remains flat
ST. LOUIS, Dec. 2, 2010 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the second quarter of fiscal year 2011, the three and six month period ended October 24, 2010, and other Company-related news.
In making the announcement, James B. Perry, the Company's chairman and chief executive officer, said, "Clearly, our operational efforts are working. Despite continued uncertainty in the national economy that has led to generally stagnant revenues in regional and local gaming markets, we have been able to increase our EBITDA through more efficient marketing and streamlined operations.
"Additionally, we are excited that our efforts to pursue prudent development opportunities have delivered positive results. Yesterday, the Missouri Gaming Commission announced that our proposal, Isle Casino Cape Girardeau, has been selected for prioritization for the 13th and final gaming license in the state. We thank the Commission for their confidence in our proposals, and are excited about this decision and look forward to commencing development on our Isle Casino in Cape Girardeau, which we anticipate opening by the end of 2012.
"In Pennsylvania, the Gaming Board has indicated that it will announce its selection for the final resort casino license at its scheduled meeting on either December 16 or in early January. We are confident that we have submitted a proposal together with Nemacolin Woodlands Resort that will provide maximum benefits to the Commonwealth in terms of both tourism impact and new tax revenue. We are hopeful that we will be the successful applicant in that competitive application process."
Consolidated Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended |
Six Months Ended |
|||||||
October 24, |
October 25, |
October 24, |
October 25, |
|||||
2010 |
2009 |
2010 |
2009 |
|||||
Net revenues |
$ 246.7 |
$ 246.1 |
$ 498.6 |
$ 504.0 |
||||
EBITDA(1) |
42.5 |
42.3 |
85.7 |
91.0 |
||||
Income (loss) from continuing operations |
(1.8) |
2.4 |
(4.5) |
3.4 |
||||
Net income (loss) |
(1.0) |
1.6 |
(3.7) |
2.5 |
||||
Income (loss) per share from continuing |
||||||||
operations |
(0.06) |
0.07 |
(0.14) |
0.11 |
||||
Net income (loss) per share |
(0.03) |
0.05 |
(0.11) |
0.08 |
||||
Significant items impacting EBITDA during the three and six months ended October 24, 2010 and October 25, 2009 are as follows:
Three Months Ended |
Six Months Ended |
|||||||
October 24, |
October 25, |
October 24, |
October 25, |
|||||
2010 |
2009 |
2010 |
2009 |
|||||
Expense recoveries - Pittsburgh development cost(3) |
$ - |
$ 6.8 |
$ - |
$ 6.8 |
||||
Marquette hotel demolition(4) |
- |
(0.5) |
- |
(0.5) |
||||
Caruthersville property tax settlement(5) |
- |
0.9 |
- |
0.9 |
||||
$ - |
$ 7.2 |
$ - |
$ 7.2 |
|||||
Compared to the second quarter of fiscal 2010, before consideration of the items in the above table during the second quarter of fiscal year 2011:
- Property-level EBITDA increased 11.3% from $47.1 million to $52.4 million, including the contribution of $2.1 million from our newly acquired Vicksburg property;
- Consolidated EBITDA increased 21.3% to $42.5 million,
Discussing the operating results, Virginia McDowell, the Company's president and chief operating officer, remarked, "We have posted improved operating results on a year-over-year basis because of a solid operating plan and the continued dedication of our team to providing value for our shareholders. First and foremost, I want to thank all of our team members for staying focused and improving our business as we bump along the bottom of this economic cycle.
“Revenues in our markets were generally flat during the quarter, according to reported results. We are pleased to have achieved modestly increased results in Iowa, Missouri and Mississippi. Management initiatives in Lake Charles to control costs and cut out unprofitable marketing efforts led to an increase in earnings despite decreased net revenues. In Florida, we were able to take advantage of the gaming tax rates and modify our marketing efforts to achieve significant year over year improvement.
"In Black Hawk, we had a significant decrease in EBITDA due to a major competitive expansion in the market, which recently had its one year anniversary. Our midweek revenues and hotel occupancy were impacted the most significantly. We continue to refine our marketing programs and cost savings initiatives, and believe these changes will lead to more positive results in the coming periods.
"Including our recently acquired Vicksburg property, our operating costs decreased by $1.0 million, or 0.8%. Excluding Vicksburg, we decreased our same-store operating cost structure by $5.3 million, or 4.0%, during the quarter. Overall, we remain dedicated to keeping our costs tight and marketing to our most profitable customers until the economy improves."
Dale R. Black, the Company's senior vice president and chief financial officer, commented, "While we have recently seen positive signs in certain economic indicators and hope this positive news will continue, we believe that discretionary consumer spending could continue to lag these trends. In the meantime, we will remain focused on executing our operating plan that proved successful during the second quarter, and look forward to increasing profitability upon growth in discretionary spending reaching the gaming and entertainment sectors."
Corporate Expenses, Capital Structure, and Capital Expenditures
Corporate and development expenses were $10.9 million for the quarter compared to $12.3 million in the second quarter of fiscal 2010. Non-cash stock compensation was $2.4 million during the quarter, compared to $2.6 million for the second quarter of fiscal 2010.
The Company had $64.1 million in cash and cash equivalents and total debt of $1.3 billion at the end of the quarter.
Interest expense for the quarter was $23.4 million, an increase of approximately $5.5 million compared to the prior fiscal year, primarily as a result of increased borrowing costs and increased borrowings related to the acquisition of Rainbow Casino in Vicksburg.
Capital expenditures during the quarter totaled $13 million, consisting almost entirely of maintenance capital expenditures. The Company expects maintenance capital expenditures for the remainder of the fiscal year to be approximately $22 million and expenditures related to Cape Girardeau to be approximately $10 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Thursday, December 2, 2010 at 8:30 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.
The conference call will also be available by telephone, 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 5980634. The conference call will be recorded and available for review starting at noon central on Thursday, December 2, 2010, until midnight central on Wednesday, December 8, 2010, by dialing 800-337-6538; International: 203-369-3798 and access number 4423.
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 24, |
October 25, |
October 24, |
October 25, |
||||||
2010 |
2009 |
2010 |
2009 |
||||||
Revenues: |
|||||||||
Casino |
$ 254,640 |
$ 251,173 |
$ 513,802 |
$ 513,436 |
|||||
Rooms |
10,643 |
11,803 |
21,524 |
24,064 |
|||||
Pari-mutuel, food, beverage and other |
33,997 |
33,286 |
68,088 |
67,581 |
|||||
Gross revenues |
299,280 |
296,262 |
603,414 |
605,081 |
|||||
Less promotional allowances |
(52,629) |
(50,207) |
(104,842) |
(101,112) |
|||||
Net revenues |
246,651 |
246,055 |
498,572 |
503,969 |
|||||
Operating expenses: |
|||||||||
Casino |
39,979 |
39,651 |
79,588 |
78,916 |
|||||
Gaming taxes |
60,214 |
64,223 |
124,620 |
130,527 |
|||||
Rooms |
2,725 |
2,824 |
5,494 |
5,881 |
|||||
Pari-mutuel, food, beverage and other |
11,123 |
11,243 |
22,291 |
22,085 |
|||||
Marine and facilities |
15,347 |
16,110 |
29,956 |
31,756 |
|||||
Marketing and administrative |
63,808 |
64,167 |
127,428 |
128,255 |
|||||
Corporate and development |
10,940 |
12,340 |
23,461 |
22,285 |
|||||
Expense recoveries and other charges |
- |
(6,762) |
- |
(6,762) |
|||||
Depreciation and amortization |
22,179 |
28,437 |
45,112 |
57,265 |
|||||
Total operating expenses |
226,315 |
232,233 |
457,950 |
470,208 |
|||||
Operating income |
20,336 |
13,822 |
40,622 |
33,761 |
|||||
Interest expense |
(23,410) |
(17,883) |
(47,205) |
(36,230) |
|||||
Interest income |
467 |
395 |
941 |
763 |
|||||
Derivative income (expense) |
(743) |
- |
(2,230) |
- |
|||||
Loss from continuing operations before |
|||||||||
income taxes |
(3,350) |
(3,666) |
(7,872) |
(1,706) |
|||||
Income tax benefit |
1,537 |
6,039 |
3,404 |
5,134 |
|||||
Income (loss) from continuing operations |
(1,813) |
2,373 |
(4,468) |
3,428 |
|||||
Income (loss) from discontinued operations, |
|||||||||
net of income taxes |
794 |
(811) |
794 |
(961) |
|||||
Net income (loss) |
$ (1,019) |
$ 1,562 |
$ (3,674) |
$ 2,467 |
|||||
Income (loss) per common share-basic and dilutive: |
|||||||||
Income (loss) from continuing operations |
$ (0.06) |
$ 0.07 |
$ (0.14) |
$ 0.11 |
|||||
Income (loss) from discontinued operations, |
|||||||||
net of income taxes |
0.03 |
(0.02) |
0.03 |
(0.03) |
|||||
Net income (loss) |
$ (0.03) |
$ 0.05 |
$ (0.11) |
$ 0.08 |
|||||
Weighted average basic shares |
32,783,726 |
32,319,789 |
32,615,815 |
32,049,444 |
|||||
Weighted average diluted shares |
32,783,726 |
32,511,462 |
32,615,815 |
32,251,102 |
|||||
ISLE OF CAPRI CASINOS, INC. |
||||
CONSOLIDATED BALANCE SHEETS |
||||
(In thousands, except share and per share amounts) |
||||
October 24, |
April 25, |
|||
2010 |
2010 |
|||
ASSETS |
(unaudited) |
|||
Current assets: |
||||
Cash and cash equivalents |
$ 64,133 |
$ 68,069 |
||
Marketable securities |
23,014 |
22,926 |
||
Accounts receivable, net |
7,766 |
8,879 |
||
Income taxes receivable |
8,850 |
8,109 |
||
Deferred income taxes |
16,826 |
16,826 |
||
Prepaid expenses and other assets |
30,749 |
25,095 |
||
Total current assets |
151,338 |
149,904 |
||
Property and equipment, net |
1,122,523 |
1,098,942 |
||
Other assets: |
||||
Goodwill |
345,303 |
313,136 |
||
Other intangible assets, net |
84,631 |
79,675 |
||
Deferred financing costs, net |
8,712 |
10,354 |
||
Restricted cash |
12,806 |
2,774 |
||
Prepaid deposits and other |
16,826 |
20,055 |
||
Total assets |
$ 1,742,139 |
$ 1,674,840 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Current maturities of long-term debt |
$ 8,766 |
$ 8,754 |
||
Accounts payable |
24,495 |
24,072 |
||
Accrued liabilities: |
||||
Payroll and related |
43,939 |
45,863 |
||
Property and other taxes |
25,508 |
20,253 |
||
Interest |
8,113 |
14,779 |
||
Progressive jackpots and slot club awards |
15,286 |
14,144 |
||
Other |
33,980 |
29,290 |
||
Total current liabilities |
160,087 |
157,155 |
||
Long-term debt, less current maturities |
1,251,158 |
1,192,135 |
||
Deferred income taxes |
28,291 |
29,193 |
||
Other accrued liabilities |
40,431 |
38,972 |
||
Other long-term liabilities |
16,833 |
17,166 |
||
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: |
||||
36,781,374 at October 24, 2010 and 36,771,730 at April 25, 2010 |
368 |
367 |
||
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
- |
- |
||
Additional paid-in capital |
200,117 |
201,464 |
||
Retained earnings |
94,881 |
98,555 |
||
Accumulated other comprehensive (loss) income |
(3,736) |
(8,060) |
||
291,630 |
292,326 |
|||
Treasury stock, 3,843,358 shares at October 24, 2010 and 4,326,242 shares at |
||||
April 25, 2010 |
(46,291) |
(52,107) |
||
Total stockholders' equity |
245,339 |
240,219 |
||
Total liabilities and stockholders' equity |
$ 1,742,139 |
$ 1,674,840 |
||
Isle of Capri Casinos, Inc. |
|||||||||
Supplemental Data - Net Revenues |
|||||||||
(unaudited, in thousands) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
October 24, |
October 25, |
October 24, |
October 25, |
||||||
2010 |
2009 |
2010 |
2009 |
||||||
Mississippi |
|||||||||
Biloxi |
$ 17,268 |
$ 17,824 |
$ 35,907 |
$ 38,244 |
|||||
Natchez |
7,299 |
7,786 |
15,369 |
16,359 |
|||||
Lula |
15,948 |
15,820 |
33,266 |
33,548 |
|||||
Vicksburg(2) |
7,231 |
11,199 |
|||||||
Mississippi Total |
47,746 |
41,430 |
95,741 |
88,151 |
|||||
Louisiana |
|||||||||
Lake Charles |
31,770 |
34,243 |
65,954 |
71,857 |
|||||
Missouri |
|||||||||
Kansas City |
19,110 |
19,101 |
38,150 |
38,586 |
|||||
Boonville |
20,142 |
19,846 |
40,210 |
39,918 |
|||||
Caruthersville |
8,248 |
7,925 |
16,639 |
16,257 |
|||||
Missouri Total |
47,500 |
46,872 |
94,999 |
94,761 |
|||||
Iowa |
|||||||||
Bettendorf |
20,307 |
20,507 |
40,048 |
41,673 |
|||||
Davenport |
11,069 |
11,866 |
22,417 |
24,319 |
|||||
Marquette |
7,589 |
7,478 |
14,698 |
14,955 |
|||||
Waterloo |
20,054 |
20,224 |
40,988 |
40,100 |
|||||
Iowa Total |
59,019 |
60,075 |
118,151 |
121,047 |
|||||
Colorado |
|||||||||
Black Hawk |
29,893 |
34,595 |
59,937 |
68,385 |
|||||
Florida |
|||||||||
Pompano |
29,713 |
28,569 |
62,433 |
59,367 |
|||||
Property Net Revenues before Other |
245,641 |
245,784 |
497,215 |
503,568 |
|||||
Other |
1,010 |
271 |
1,357 |
401 |
|||||
Net Revenues from Continuing Operations |
$ 246,651 |
$ 246,055 |
$ 498,572 |
$ 503,969 |
|||||
Isle of Capri Casinos, Inc. |
|||||||||
Supplemental Data - EBITDA (1) |
|||||||||
(unaudited, in thousands) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
October 24, |
October 25, |
October 24, |
October 25, |
||||||
2010 |
2009 |
2010 |
2009 |
||||||
Mississippi |
|||||||||
Biloxi |
$ 1,586 |
$ 1,507 |
$ 3,432 |
$ 3,892 |
|||||
Natchez |
2,024 |
2,394 |
4,475 |
5,127 |
|||||
Lula |
4,305 |
3,632 |
9,504 |
8,287 |
|||||
Vicksburg(2) |
2,077 |
3,350 |
|||||||
Mississippi Total |
9,992 |
7,533 |
20,761 |
17,306 |
|||||
Louisiana |
|||||||||
Lake Charles |
4,800 |
4,254 |
11,599 |
11,836 |
|||||
Missouri |
|||||||||
Kansas City |
4,238 |
4,148 |
8,237 |
8,600 |
|||||
Boonville |
6,657 |
6,525 |
13,549 |
13,301 |
|||||
Caruthersville |
1,286 |
1,140 |
3,075 |
2,893 |
|||||
Missouri Total |
12,181 |
11,813 |
24,861 |
24,794 |
|||||
Iowa |
|||||||||
Bettendorf |
5,586 |
5,286 |
10,051 |
11,268 |
|||||
Davenport |
2,527 |
3,073 |
5,320 |
6,687 |
|||||
Marquette |
1,767 |
1,397 |
3,257 |
3,169 |
|||||
Waterloo |
5,797 |
5,510 |
11,838 |
11,358 |
|||||
Iowa Total |
15,677 |
15,266 |
30,466 |
32,482 |
|||||
Colorado |
|||||||||
Black Hawk |
5,794 |
9,028 |
12,897 |
17,594 |
|||||
Florida |
|||||||||
Pompano |
4,001 |
(786) |
7,254 |
1,677 |
|||||
Property EBITDA Before |
|||||||||
Corporate and Other Items |
52,445 |
47,108 |
107,838 |
105,689 |
|||||
Corporate and Other |
(9,930) |
(12,070) |
(22,104) |
(21,884) |
|||||
EBITDA Before Other Items |
42,515 |
35,038 |
85,734 |
83,805 |
|||||
Other Items: |
|||||||||
Expense Recoveries and Other(3) |
- |
6,762 |
- |
6,762 |
|||||
Marquette Hotel Demolition(4) |
- |
(475) |
- |
(475) |
|||||
Caruthersville Property Tax Settlement(5) |
- |
934 |
- |
934 |
|||||
EBITDA from Continuing Operations |
$ 42,515 |
$ 42,259 |
$ 85,734 |
$ 91,026 |
|||||
Isle of Capri Casinos, Inc. |
||||||||||||||
Supplemental Data - Reconciliation of Operating Income to EBITDA (1) |
||||||||||||||
(unaudited, in thousands) |
||||||||||||||
Three Months Ended October 24, 2010 |
Three Months Ended October 25, 2009 |
|||||||||||||
Depreciation |
Depreciation |
|||||||||||||
Operating |
and |
Operating |
and |
|||||||||||
Income |
Amortization |
EBITDA |
Income |
Amortization |
EBITDA |
|||||||||
Mississippi |
||||||||||||||
Biloxi |
$ (1,412) |
$ 2,998 |
$ 1,586 |
$ (1,979) |
$ 3,486 |
$ 1,507 |
||||||||
Natchez |
1,656 |
368 |
2,024 |
1,956 |
438 |
2,394 |
||||||||
Lula |
2,469 |
1,836 |
4,305 |
1,614 |
2,018 |
3,632 |
||||||||
Vicksburg(2) |
827 |
1,250 |
2,077 |
|||||||||||
Mississippi Total |
3,540 |
6,452 |
9,992 |
1,591 |
5,942 |
7,533 |
||||||||
Louisiana |
||||||||||||||
Lake Charles |
2,456 |
2,344 |
4,800 |
1,658 |
2,596 |
4,254 |
||||||||
Missouri |
||||||||||||||
Kansas City |
3,345 |
893 |
4,238 |
3,169 |
979 |
4,148 |
||||||||
Boonville |
5,544 |
1,113 |
6,657 |
5,396 |
1,129 |
6,525 |
||||||||
Caruthersville |
427 |
859 |
1,286 |
311 |
829 |
1,140 |
||||||||
Missouri Total |
9,316 |
2,865 |
12,181 |
8,876 |
2,937 |
11,813 |
||||||||
Iowa |
||||||||||||||
Bettendorf |
3,603 |
1,983 |
5,586 |
3,077 |
2,209 |
5,286 |
||||||||
Davenport |
1,961 |
566 |
2,527 |
2,234 |
839 |
3,073 |
||||||||
Marquette |
1,378 |
389 |
1,767 |
803 |
594 |
1,397 |
||||||||
Waterloo |
4,387 |
1,410 |
5,797 |
2,541 |
2,969 |
5,510 |
||||||||
Iowa Total |
11,329 |
4,348 |
15,677 |
8,655 |
6,611 |
15,266 |
||||||||
Colorado |
||||||||||||||
Black Hawk |
2,578 |
3,216 |
5,794 |
5,265 |
3,763 |
9,028 |
||||||||
Florida |
||||||||||||||
Pompano |
1,642 |
2,359 |
4,001 |
(5,163) |
4,377 |
(786) |
||||||||
Total Property Before |
||||||||||||||
Corporate and Other Items |
30,861 |
21,584 |
52,445 |
20,882 |
26,226 |
47,108 |
||||||||
Corporate and Other |
(10,525) |
595 |
(9,930) |
(13,323) |
1,253 |
(12,070) |
||||||||
Total Before Other Items |
20,336 |
22,179 |
42,515 |
7,559 |
27,479 |
35,038 |
||||||||
Other Items: |
||||||||||||||
Expense Recoveries and Other(3) |
- |
- |
- |
6,762 |
- |
6,762 |
||||||||
Marquette Hotel Demolition(4) |
- |
- |
- |
(1,433) |
958 |
(475) |
||||||||
Caruthersville Property Tax Settlement(5) |
- |
- |
- |
934 |
- |
934 |
||||||||
Total From Continuing Operations |
$ 20,336 |
$ 22,179 |
$ 42,515 |
$ 13,822 |
$ 28,437 |
$ 42,259 |
||||||||
Isle of Capri Casinos, Inc. |
||||||||||||||
Supplemental Data - Reconciliation of Operating Income to EBITDA (1) |
||||||||||||||
(unaudited, in thousands) |
||||||||||||||
Six Months Ended October 24, 2010 |
Six Months Ended October 25, 2009 |
|||||||||||||
Depreciation |
Depreciation |
|||||||||||||
Operating |
and |
Operating |
and |
|||||||||||
Income |
Amortization |
EBITDA |
Income |
Amortization |
EBITDA |
|||||||||
Mississippi |
||||||||||||||
Biloxi |
$ (2,660) |
$ 6,092 |
$ 3,432 |
$ (3,247) |
$ 7,139 |
$ 3,892 |
||||||||
Natchez |
3,757 |
718 |
4,475 |
4,093 |
1,034 |
5,127 |
||||||||
Lula |
5,815 |
3,689 |
9,504 |
4,055 |
4,232 |
8,287 |
||||||||
Vicksburg(2) |
1,458 |
1,892 |
3,350 |
|||||||||||
Mississippi Total |
8,370 |
12,391 |
20,761 |
4,901 |
12,405 |
17,306 |
||||||||
Louisiana |
||||||||||||||
Lake Charles |
6,871 |
4,728 |
11,599 |
6,501 |
5,335 |
11,836 |
||||||||
Missouri |
||||||||||||||
Kansas City |
6,481 |
1,756 |
8,237 |
6,524 |
2,076 |
8,600 |
||||||||
Boonville |
11,378 |
2,171 |
13,549 |
10,988 |
2,313 |
13,301 |
||||||||
Caruthersville |
1,349 |
1,726 |
3,075 |
1,149 |
1,744 |
2,893 |
||||||||
Missouri Total |
19,208 |
5,653 |
24,861 |
18,661 |
6,133 |
24,794 |
||||||||
Iowa |
||||||||||||||
Bettendorf |
6,038 |
4,013 |
10,051 |
6,712 |
4,556 |
11,268 |
||||||||
Davenport |
4,187 |
1,133 |
5,320 |
4,892 |
1,795 |
6,687 |
||||||||
Marquette |
2,443 |
814 |
3,257 |
1,876 |
1,293 |
3,169 |
||||||||
Waterloo |
7,972 |
3,866 |
11,838 |
5,440 |
5,918 |
11,358 |
||||||||
Iowa Total |
20,640 |
9,826 |
30,466 |
18,920 |
13,562 |
32,482 |
||||||||
Colorado |
||||||||||||||
Black Hawk |
6,433 |
6,464 |
12,897 |
9,960 |
7,634 |
17,594 |
||||||||
Florida |
||||||||||||||
Pompano |
2,532 |
4,722 |
7,254 |
(6,970) |
8,647 |
1,677 |
||||||||
Total Property Before |
||||||||||||||
Corporate and Other Items |
64,054 |
43,784 |
107,838 |
51,973 |
53,716 |
105,689 |
||||||||
Corporate and Other |
(23,432) |
1,328 |
(22,104) |
(24,475) |
2,591 |
(21,884) |
||||||||
Total Before Other Items |
40,622 |
45,112 |
85,734 |
27,498 |
56,307 |
83,805 |
||||||||
Other Items: |
||||||||||||||
Expense Recoveries and Other(3) |
- |
- |
- |
6,762 |
- |
6,762 |
||||||||
Marquette Hotel Demolition(4) |
- |
- |
- |
(1,433) |
958 |
(475) |
||||||||
Caruthersville Property Tax Settlement(5) |
- |
- |
- |
934 |
- |
934 |
||||||||
Total From Continuing Operations |
$ 40,622 |
$ 45,112 |
$ 85,734 |
$ 33,761 |
$ 57,265 |
$ 91,026 |
||||||||
1. |
EBITDA is "earnings before interest and other non-operating income (expense), income taxes, and depreciation and amortization." "Property EBITDA" is EBITDA before Corporate and development expenses and minority interest. EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, 2) used as a component of calculating required leverage and minimum interest coverage ratios under our Senior Credit Facility and 3) a principal basis of valuing gaming companies. Management uses EBITDA and Property EBITDA as the primary measure of the Company's operating properties' performance, and they are important components in evaluating the performance of management and other operating personnel in the determination of certain components of employee compensation. EBITDA should not be construed as an alternative to operating income as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to any other measure determined in accordance with U.S. generally accepted accounting principles (GAAP). The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. A reconciliation of EBITDA and Property EBITDA to operating income is included in the financial schedules accompanying this release. A reconciliation of EBITDA to the Company's net income (loss) is shown below (in thousands). |
|
Three Months Ended |
Six Months Ended |
|||||||
October 24, |
October 25, |
October 24, |
October 25, |
|||||
2010 |
2009 |
2010 |
2009 |
|||||
EBITDA |
$ 42,515 |
$ 42,259 |
$ 85,734 |
$ 91,026 |
||||
Add/(deduct): |
||||||||
Depreciation and amortization |
(22,179) |
(28,437) |
(45,112) |
(57,265) |
||||
Interest expense, net |
(22,943) |
(17,488) |
(46,264) |
(35,467) |
||||
Derivative income (expense) |
(743) |
- |
(2,230) |
- |
||||
Income tax benefit |
1,537 |
6,039 |
3,404 |
5,134 |
||||
Income (loss) from discontinued operations, |
||||||||
net of income taxes |
794 |
(811) |
794 |
(961) |
||||
Net income (loss) |
$ (1,019) |
$ 1,562 |
$ (3,674) |
$ 2,467 |
||||
Certain of our debt agreements use "Adjusted EBITDA" as a financial measure for the calculation of financial debt covenants. Adjusted EBITDA differs from EBITDA as Adjusted EBITDA includes add back of items such as gain on early extinguishment of debt, pre-opening expenses, certain write-offs and valuation expenses, and non-cash stock compensation expense. Reference can be made to the definition of Adjusted EBITDA in the applicable debt agreements on file as Exhibits to our filings with the Securities and Exchange Commission. |
||
2. |
Rainbow Casino in Vicksburg, Mississippi was acquired on June 8, 2010 and we have included the results of Rainbow in our consolidated financial statements subsequent to acquisition. |
|
3. |
Expense recoveries and other of $(6.8) million for the three and six months ended October 25, 2009 reflect income from the recording of a receivable for reimbursement of Pittsburgh development costs. |
|
4. |
During October, 2009 we demolished the hotel at our casino in Marquette, Iowa. As a result, our operating income for the three and six months ended October 25, 2009 includes $0.5 million in demolition costs and $1.0 million in acceleration of remaining depreciation. |
|
5. |
Caruthersville includes the favorable impact of $0.9 million from the settlement of a property tax appeal during both the three and six months ended October 25, 2009. |
|
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 15 casino properties. The Company owns and operates casinos domestically in Biloxi, Lula, Natchez and Vicksburg, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri, two casinos in Black Hawk, Colorado, and a casino and harness track in Pompano Beach, Florida. 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/A for the most recently ended fiscal year.
CONTACTS: |
||
Isle of Capri Casinos, Inc., |
||
Dale Black, Chief Financial Officer-314.813.9327 |
||
Jill Haynes, Senior Director of Corporate Communication-314.813.9368 |
||
SOURCE Isle of Capri Casinos, Inc.
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