Isle of Capri Casinos, Inc. Announces Fiscal 2013 Third Quarter Results
SAINT LOUIS, Mo., Feb. 20, 2013 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the third quarter of fiscal year 2013 ended January 27, 2013 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 |
Nine Months Ended |
||||||
| January 27, |
January 22, |
January 27, |
January 22, |
||||
| 2013 |
2012 |
2013 |
2012 |
||||
| Net revenues |
$ 238.1 |
$ 227.3 |
$ 697.1 |
$ 686.4 |
|||
| Consolidated adjusted EBITDA (1) |
41.9 |
41.2 |
125.6 |
122.8 |
|||
| Loss from continuing operations |
(1.0) |
(0.3) |
(0.6) |
(3.9) |
|||
| Loss from discontinued operations |
(1.2) |
(0.9) |
(1.6) |
(1.1) |
|||
| Net loss |
(2.2) |
(1.2) |
(2.2) |
(5.0) |
|||
| Diluted loss per share from continuing operations |
(0.03) |
(0.01) |
(0.02) |
(0.10) |
|||
| Diluted loss per share from discontinued operations |
(0.03) |
(0.02) |
(0.04) |
(0.03) |
|||
| Diluted loss per share |
(0.06) |
(0.03) |
(0.06) |
(0.13) |
|||
Net revenue for the quarter increased to $238.1 million compared to $227.3 million in the comparable quarter last year. Consolidated Adjusted EBITDA increased $0.7 million to $41.9 million. The Company reported a loss per share from continuing operations of $(.03) for the current quarter compared to $(.01) in the prior year quarter. Before the impact of preopening and development costs and the impact of insurance recoveries in the fiscal 2012 quarter the loss per share from continuing operations would have been $(.01) in the third quarter of fiscal 2013 compared to $(.03) in the fiscal 2012 third quarter.
Virginia McDowell, president and chief executive officer remarked, "Our fiscal third quarter is highlighted by the opening of our new property in Cape Girardeau on October 30, 2012, two full months ahead of its original schedule. The property's appearance and experience has been extremely well received by customers, and our focus is now on the continuing ramp up in operational performance at the property.
"Similar to other operators in the regional gaming industry, our results were impacted by softness in consumer spending, including the effect of payroll and income tax modifications early in the calendar year. In addition, last winter was one of the mildest on record in the Midwest, while in contrast this winter we have had some measurable weather disruptions at key times, including New Year's Eve weekend.
"We continue to deliver on our strategy of improving our guest experience and enhancing our asset base. During the quarter, in addition to opening Cape Girardeau, we completed the rebranding of our Vicksburg facility to a Lady Luck and completed renovations to our main hotel tower in Lake Charles. We also began construction on Lady Luck Nemacolin and completed the sale of our Biloxi property on November 29, 2012. We are beginning to see the positive impact from the capital projects we have completed, and are confident our strategy to revitalize our asset base is working.
"We are also very excited to have entered into an agreement with Tower Entertainment, LLC in Philadelphia, to manage its proposed, $700 million, luxury casino entertainment complex, The Provence, subject to the project being selected by the Pennsylvania Gaming Control Board. The proposed facility will be stunning and provides us the potential opportunity to enter into one of the preeminent US gaming markets."
Operating Overview
The following highlights operating results at our properties:
- Black Hawk – Adjusted EBITDA increased 23.6% to $6.0 million while net revenues increased 8.1% to $28.9 million, resulting in margin improvement of nearly 261 basis points, in spite of a year-over-year increase in the gaming tax rate. Results were positively impacted by the continued impact of recent capital improvements at the properties and targeted marketing promotions.
- Pompano –Despite the continued year-over-year impact of a major expansion at a competing facility, net revenue increased $1.2 million to $39.9 million while adjusted EBITDA increased 4.4% to $7.4 million.
- Iowa – Net revenues decreased 1.2% to $54.7 million while Adjusted EBITDA decreased a combined $1.0 million to $13.2 million, largely attributable to inclement weather during the period relative to the prior year quarter.
- Lake Charles – Adjusted EBITDA increased 17.9% to $3.7 million, despite decreased net revenues of 6.4% to $29.4 million. Operating margins increased 264 basis points. The renovation of the hotel rooms in the main tower was completed during the period, causing some construction disruption that negatively impacted revenues; however, we were able to offset the impact through improvements to the cost structure, primarily from the consolidation of our operations to a single facility, after the sale of our second casino vessel in late fiscal 2012.
- Missouri – Net revenues increased 29.6% to $59.2 million and Adjusted EBITDA increased 16.7% to $13.9 million primarily as a result of the opening of our Cape Girardeau property. Our new Cape Girardeau facility contributed $16.1 million in net revenues and $2.9 million in Adjusted EBITDA during the quarter and we are experiencing a steady ramp up in operations as we have increased our database marketing programs at the property. Adjusted EBITDA in Kansas City was essentially flat despite the impact of a new competitor in the market last February. Boonville results were negatively impacted by inclement weather over New Year's weekend and Caruthersville was impacted by both weather and the opening of Cape Girardeau.
- Mississippi – Adjusted EBITDA decreased 29.0% to $3.9 million as net revenues declined 8.2% to $25.9 million. Results in Vicksburg were impacted by construction disruption early in the quarter and increased marketing costs associated with the Lady Luck rebrand launch. In Natchez, a new competitor opened in the market in December. In Lula, we were able to mostly mitigate continuing competitive challenges with approximately $1.1 million of decreases in gaming taxes, marketing and operating expenses.
Corporate Expenses and Other Items
Corporate and development expenses were $7.5 million for the quarter, a decrease of $0.3 million compared to prior year. Non-cash stock compensation expense was $1.1 million for the quarter compared to $1.8 million in the third quarter of fiscal 2012.
Development
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.
On February 1, 2013 we entered into an agreement with Tower Entertainment, LLC, to operate its proposed $700 million casino entertainment complex in Philadelphia, Pennsylvania, if selected for licensure by the Pennsylvania Gaming Control Board. The hallmarks of the 1.25 million square-foot Provence resort and casino complex are expected to include a 125-room hotel housed in the landmark tower of the former Inquirer building; a 120,000 square-foot, high-quality casino featuring approximately 3,300 electronic gaming machines (slots and automated table games), and 150 table games; a 120,000 square-foot, family-oriented rooftop village; a 75,000 square-foot concert hall; eight restaurants; a private swim club with two pools; a 9,000 square-foot nightclub; 60,000 square feet of upscale shops; a 20,000 square-foot Spa & Fitness Center; 50,000 combined square-feet of meeting and event space; and two indoor parking garages.
Capital Structure
As of January 27, 2013, the Company had $67.8 million in cash and cash equivalents, $1.1 billion in total debt and $243 million in net line of credit availability.
Third quarter capital expenditures were $34.1 million, of which $19.0 million related to Cape Girardeau, $3.4 million related to Nemacolin, and $11.7 million at our existing properties. The Company expects capital expenditures to be approximately $45 million to $50 million for the balance of the fiscal year, including maintenance capital and construction costs in Nemacolin of approximately $25 million to $30 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Wednesday, February 20, 2013 at 12:30 pm 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 4149287. The conference call will be recorded and available for review starting at 11:59 pm central on Wednesday, February 20, 2013, until 11:59 pm central on Wednesday, February 27, 2013, by dialing 866-495-6464; International: 203-369-1765 and access number 5425.
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 |
Nine Months Ended |
||||||||
| January 27, |
January 22, |
January 27, |
January 22, |
||||||
| 2013 |
2012 |
2013 |
2012 |
||||||
| Revenues: |
|||||||||
| Casino |
$ 248,404 |
$ 236,649 |
$ 733,321 |
$ 711,583 |
|||||
| Rooms |
6,830 |
6,916 |
23,788 |
23,807 |
|||||
| Food, beverage, pari-mutuel and other |
32,749 |
30,935 |
95,992 |
91,285 |
|||||
| Insurance recoveries |
- |
872 |
- |
983 |
|||||
| Gross revenues |
287,983 |
275,372 |
853,101 |
827,658 |
|||||
| Less promotional allowances |
(49,888) |
(48,051) |
(155,976) |
(141,307) |
|||||
| Net revenues |
238,095 |
227,321 |
697,125 |
686,351 |
|||||
| Operating expenses: |
|||||||||
| Casino |
39,166 |
37,700 |
114,464 |
111,843 |
|||||
| Gaming taxes |
63,289 |
59,603 |
183,536 |
178,555 |
|||||
| Rooms |
1,405 |
1,417 |
4,959 |
5,265 |
|||||
| Food, beverage, pari-mutuel and other |
10,987 |
9,553 |
30,308 |
29,096 |
|||||
| Marine and facilities |
13,979 |
13,745 |
41,567 |
42,804 |
|||||
| Marketing and administrative |
61,012 |
57,294 |
175,432 |
172,835 |
|||||
| Corporate and development |
7,506 |
7,824 |
26,756 |
29,417 |
|||||
| Preopening |
978 |
68 |
4,319 |
131 |
|||||
| Depreciation and amortization |
19,390 |
19,304 |
53,062 |
58,126 |
|||||
| Total operating expenses |
217,712 |
206,508 |
634,403 |
628,072 |
|||||
| Operating income |
20,383 |
20,813 |
62,722 |
58,279 |
|||||
| Interest expense |
(22,009) |
(21,737) |
(64,425) |
(65,439) |
|||||
| Interest income |
100 |
185 |
406 |
620 |
|||||
| Derivative income expense |
222 |
223 |
532 |
252 |
|||||
| Loss from continuing operations before income taxes |
(1,304) |
(516) |
(765) |
(6,288) |
|||||
| Income tax benefit |
302 |
200 |
166 |
2,383 |
|||||
| Loss from continuing operations |
(1,002) |
(316) |
(599) |
(3,905) |
|||||
| Loss from discontinued operations net of income taxes |
(1,184) |
(866) |
(1,579) |
(1,057) |
|||||
| Net loss |
$ (2,186) |
$ (1,182) |
$ (2,178) |
$ (4,962) |
|||||
| Loss per common share-basic: |
|||||||||
| Loss from continuing operations |
$ (0.03) |
$ (0.01) |
$ (0.02) |
$ (0.10) |
|||||
| Loss from discontinued operations, net of income taxes |
(0.03) |
(0.02) |
(0.04) |
(0.03) |
|||||
| Net loss |
$ (0.06) |
$ (0.03) |
$ (0.06) |
$ (0.13) |
|||||
| Loss per common share-dilutive: |
|||||||||
| Loss from continuing operations |
$ (0.03) |
$ (0.01) |
$ (0.02) |
$ (0.10) |
|||||
| Loss from discontinued operations, net of income taxes |
(0.03) |
(0.02) |
(0.04) |
(0.03) |
|||||
| Net loss |
$ (0.06) |
$ (0.03) |
$ (0.06) |
$ (0.13) |
|||||
| Weighted average basic shares |
39,488,480 |
38,982,281 |
39,280,965 |
38,670,827 |
|||||
| Weighted average diluted shares |
39,488,480 |
38,982,281 |
39,280,965 |
38,670,827 |
|||||
| ISLE OF CAPRI CASINOS, INC. |
|||
| CONSOLIDATED BALANCE SHEETS |
|||
| (In thousands, except share and per share amounts) |
|||
| January 27, |
April 29, |
||
| 2013 |
2012 |
||
| ASSETS |
(unaudited) |
||
| Current assets: |
|||
| Cash and cash equivalents |
$ 67,830 |
$ 94,461 |
|
| Marketable securities |
25,136 |
24,943 |
|
| Accounts receivable, net |
9,583 |
6,941 |
|
| Insurance receivable |
- |
7,497 |
|
| Income taxes receivable |
4,409 |
2,161 |
|
| Deferred income taxes |
1,841 |
627 |
|
| Prepaid expenses and other assets |
25,736 |
18,950 |
|
| Assets held for sale |
- |
46,703 |
|
| Total current assets |
134,535 |
202,283 |
|
| Property and equipment, net |
1,016,796 |
950,014 |
|
| Other assets: |
|||
| Goodwill |
330,903 |
330,903 |
|
| Other intangible assets, net |
60,957 |
56,586 |
|
| Deferred financing costs, net |
17,832 |
13,205 |
|
| Restricted cash |
12,930 |
12,551 |
|
| Prepaid deposits and other |
7,169 |
9,428 |
|
| Total assets |
$ 1,581,122 |
$ 1,574,970 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Current maturities of long-term debt |
$ 5,410 |
$ 5,393 |
|
| Accounts payable |
32,879 |
23,536 |
|
| Accrued liabilities: |
|||
| Payroll and related |
37,305 |
38,566 |
|
| Property and other taxes |
20,395 |
19,522 |
|
| Interest |
15,840 |
9,296 |
|
| Progressive jackpots and slot club awards |
15,790 |
14,892 |
|
| Liabilities related to assets held for sale |
- |
4,362 |
|
| Other |
33,895 |
40,549 |
|
| Total current liabilities |
161,514 |
156,116 |
|
| Long-term debt, less current maturities |
1,147,817 |
1,149,038 |
|
| Deferred income taxes |
36,370 |
36,057 |
|
| Other accrued liabilities |
32,717 |
33,583 |
|
| Other long-term liabilities |
16,732 |
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 January 27, 2013 and 42,066,148 at April 29, 2012 |
421 |
421 |
|
| Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued |
- |
- |
|
| Additional paid-in capital |
245,782 |
247,855 |
|
| Retained earnings (deficit) |
(28,836) |
(26,658) |
|
| Accumulated other comprehensive (loss) income |
(396) |
(855) |
|
| 216,971 |
220,763 |
||
| Treasury stock, 2,573,769 shares at January 27, 2013 and 3,083,867 shares at April 29, 2012 |
(30,999) |
(37,143) |
|
| Total stockholders' equity |
185,972 |
183,620 |
|
| Total liabilities and stockholders' equity |
$ 1,581,122 |
$ 1,574,970 |
|
| Isle of Capri Casinos, Inc. |
|||||||||
| Supplemental Data - Net Revenues |
|||||||||
| (unaudited, in thousands) |
|||||||||
| Three Months Ended |
Nine Months Ended |
||||||||
| January 27, |
January 22, |
January 27, |
January 22, |
||||||
| 2013 |
2012 |
2013 |
2012 |
||||||
| Properties Not Impacted by Flooding |
|||||||||
| Lake Charles, Louisiana |
$ 29,364 |
$ 31,379 |
$ 92,691 |
$ 99,920 |
|||||
| Kansas City, Missouri |
17,513 |
19,038 |
54,045 |
58,149 |
|||||
| Boonville, Missouri |
18,383 |
18,658 |
58,569 |
58,481 |
|||||
| Cape Girardeau, Missouri |
16,111 |
- |
16,111 |
- |
|||||
| Bettendorf, Iowa |
17,892 |
18,230 |
57,441 |
57,441 |
|||||
| Marquette, Iowa |
6,003 |
5,907 |
20,716 |
20,679 |
|||||
| Waterloo, Iowa |
20,770 |
20,662 |
63,107 |
61,763 |
|||||
| Black Hawk, Colorado |
28,879 |
26,712 |
90,902 |
89,978 |
|||||
| Pompano, Florida |
39,860 |
38,631 |
108,236 |
106,202 |
|||||
| 194,775 |
179,217 |
561,818 |
552,613 |
||||||
| Properties Impacted by Flooding |
|||||||||
| Natchez, Mississippi |
6,129 |
6,668 |
19,092 |
18,149 |
|||||
| Lula, Mississippi |
12,587 |
13,805 |
39,990 |
37,770 |
|||||
| Vicksburg, Mississippi |
7,167 |
7,711 |
20,622 |
21,555 |
|||||
| Caruthersville, Missouri |
7,149 |
7,935 |
23,926 |
23,749 |
|||||
| Davenport, Iowa |
10,078 |
10,627 |
31,114 |
31,397 |
|||||
| 43,110 |
46,746 |
134,744 |
132,620 |
||||||
| Property Net Revenues before Other |
237,885 |
225,963 |
696,562 |
685,233 |
|||||
| Insurance Recoveries(2) |
|||||||||
| Natchez |
- |
420 |
- |
- |
|||||
| Vicksburg |
- |
54 |
- |
- |
|||||
| Caruthersville |
- |
398 |
- |
- |
|||||
| Other |
210 |
486 |
563 |
1,118 |
|||||
| Net Revenues from Continuing Operations |
$ 238,095 |
$ 227,321 |
$ 697,125 |
$ 686,351 |
|||||
| Isle of Capri Casinos, Inc. |
||||||||||||
| Reconciliation of Operating Income (Loss) to Adjusted EBITDA |
||||||||||||
| (unaudited, in thousands) |
||||||||||||
| Three Months Ended January 27, 2013 |
||||||||||||
| Operating Income (Loss) |
Depreciation and Amortization |
Stock-Based Compensation |
Preopening |
Financing |
Adjusted EBITDA |
|||||||
| Properties Not Impacted by Flooding |
||||||||||||
| Lake Charles, Louisiana |
$ 1,147 |
$ 2,591 |
$ 8 |
$ - |
$ - |
$ 3,746 |
||||||
| Kansas City, Missouri |
2,800 |
1,001 |
4 |
- |
- |
3,805 |
||||||
| Boonville, Missouri |
5,341 |
896 |
6 |
- |
- |
6,243 |
||||||
| Cape Girardeau, Missouri |
92 |
2,762 |
6 |
- |
- |
2,860 |
||||||
| Bettendorf, Iowa |
2,676 |
1,728 |
4 |
- |
- |
4,408 |
||||||
| Marquette, Iowa |
309 |
469 |
2 |
- |
- |
780 |
||||||
| Waterloo, Iowa |
4,785 |
1,175 |
5 |
- |
- |
5,965 |
||||||
| Black Hawk, Colorado |
3,823 |
2,176 |
8 |
- |
- |
6,007 |
||||||
| Pompano, Florida |
5,595 |
1,829 |
7 |
- |
- |
7,431 |
||||||
| 26,568 |
14,627 |
50 |
- |
- |
41,245 |
|||||||
| Properties Impacted by Flooding |
||||||||||||
| Natchez, Mississippi |
208 |
359 |
4 |
- |
- |
571 |
||||||
| Lula, Mississippi |
882 |
1,355 |
4 |
- |
- |
2,241 |
||||||
| Vicksburg, Mississippi |
(41) |
1,078 |
5 |
- |
- |
1,042 |
||||||
| Caruthersville, Missouri |
140 |
830 |
6 |
- |
- |
976 |
||||||
| Davenport, Iowa |
1,452 |
585 |
5 |
- |
- |
2,042 |
||||||
| 2,641 |
4,207 |
24 |
- |
- |
6,872 |
|||||||
| Total Operating Properties |
29,209 |
18,834 |
74 |
- |
- |
48,117 |
||||||
| Corporate and Other |
(8,826) |
556 |
1,097 |
978 |
- |
(6,195) |
||||||
| Total |
$ 20,383 |
$ 19,390 |
$ 1,171 |
$ 978 |
$ - |
$ 41,922 |
||||||
| Three Months Ended January 22, 2012 |
||||||||||||
| Operating Income (Loss) |
Depreciation and Amortization |
Stock-Based Compensation |
Preopening |
Insurance Recoveries |
Adjusted EBITDA |
|||||||
| Properties Not Impacted by Flooding |
||||||||||||
| Lake Charles, Louisiana |
$ 781 |
$ 2,391 |
$ 4 |
$ - |
$ - |
$ 3,176 |
||||||
| Kansas City, Missouri |
2,982 |
1,005 |
3 |
- |
- |
3,990 |
||||||
| Boonville, Missouri |
5,629 |
876 |
5 |
- |
- |
6,510 |
||||||
| Bettendorf, Iowa |
2,837 |
1,978 |
5 |
- |
- |
4,820 |
||||||
| Marquette, Iowa |
443 |
466 |
5 |
- |
- |
914 |
||||||
| Waterloo, Iowa |
4,584 |
1,648 |
5 |
- |
- |
6,237 |
||||||
| Black Hawk, Colorado |
1,918 |
2,932 |
10 |
- |
- |
4,860 |
||||||
| Pompano, Florida |
4,356 |
2,757 |
6 |
- |
- |
7,119 |
||||||
| 23,530 |
14,053 |
43 |
- |
- |
37,626 |
|||||||
| Properties Impacted by Flooding |
||||||||||||
| Natchez, Mississippi |
1,312 |
384 |
5 |
- |
(420) |
1,281 |
||||||
| Lula, Mississippi |
808 |
1,563 |
5 |
- |
- |
2,376 |
||||||
| Vicksburg, Mississippi |
561 |
1,257 |
4 |
- |
(54) |
1,768 |
||||||
| Caruthersville, Missouri |
918 |
873 |
5 |
- |
(398) |
1,398 |
||||||
| Davenport, Iowa |
1,718 |
547 |
5 |
- |
- |
2,270 |
||||||
| 5,317 |
4,624 |
24 |
- |
(872) |
9,093 |
|||||||
| Total Operating Properties |
28,847 |
18,677 |
67 |
- |
(872) |
46,719 |
||||||
| Corporate and Other |
(8,034) |
627 |
1,807 |
68 |
- |
(5,532) |
||||||
| Total |
$ 20,813 |
$ 19,304 |
$ 1,874 |
$ 68 |
$ (872) |
$ 41,187 |
||||||
| Isle of Capri Casinos, Inc. |
||||||||||||
| Reconciliation of Operating Income (Loss) to Adjusted EBITDA |
||||||||||||
| (unaudited, in thousands) |
||||||||||||
| Nine Months Ended January 27, 2013 |
||||||||||||
| Operating Income (Loss) |
Depreciation and Amortization |
Stock-Based Compensation |
Preopening |
Financing |
Adjusted EBITDA |
|||||||
| Properties Not Impacted by Flooding |
||||||||||||
| Lake Charles, Louisiana |
$ 6,377 |
$ 7,013 |
$ 14 |
$ - |
$ - |
$ 13,404 |
||||||
| Kansas City, Missouri |
9,067 |
3,020 |
10 |
- |
- |
12,097 |
||||||
| Boonville, Missouri |
17,753 |
2,649 |
17 |
- |
- |
20,419 |
||||||
| Cape Girardeau, Missouri |
92 |
2,762 |
6 |
- |
- |
2,860 |
||||||
| Bettendorf, Iowa |
9,784 |
5,211 |
13 |
- |
- |
15,008 |
||||||
| Marquette, Iowa |
2,740 |
1,345 |
12 |
- |
- |
4,097 |
||||||
| Waterloo, Iowa |
14,917 |
3,832 |
16 |
- |
- |
18,765 |
||||||
| Black Hawk, Colorado |
14,666 |
6,534 |
32 |
- |
- |
21,232 |
||||||
| Pompano, Florida |
11,415 |
5,406 |
21 |
- |
- |
16,842 |
||||||
| 86,811 |
37,772 |
141 |
- |
- |
124,724 |
|||||||
| Properties Impacted by Flooding |
||||||||||||
| Natchez, Mississippi |
1,169 |
1,186 |
14 |
- |
- |
2,369 |
||||||
| Lula, Mississippi |
1,186 |
4,780 |
15 |
- |
- |
5,981 |
||||||
| Vicksburg, Mississippi |
(306) |
3,340 |
14 |
- |
- |
3,048 |
||||||
| Caruthersville, Missouri |
1,556 |
2,521 |
16 |
- |
- |
4,093 |
||||||
| Davenport, Iowa |
4,619 |
1,659 |
16 |
- |
- |
6,294 |
||||||
| 8,224 |
13,486 |
75 |
- |
- |
21,785 |
|||||||
| Total Operating Properties |
95,035 |
51,258 |
216 |
- |
- |
146,509 |
||||||
| Corporate and Other |
(32,313) |
1,804 |
3,850 |
4,319 |
1,478 |
(20,862) |
||||||
| Total |
$ 62,722 |
$ 53,062 |
$ 4,066 |
$ 4,319 |
$ 1,478 |
$ 125,647 |
||||||
| Nine Months Ended January 22, 2012 |
||||||||||||
| Operating Income (Loss) |
Depreciation and Amortization |
Stock-Based Compensation |
Preopening |
Financing |
Adjusted EBITDA |
|||||||
| Properties Not Impacted by Flooding |
||||||||||||
| Lake Charles, Louisiana |
$ 6,715 |
$ 7,055 |
$ 35 |
$ - |
$ - |
$ 13,805 |
||||||
| Kansas City, Missouri |
9,161 |
3,017 |
10 |
- |
- |
12,188 |
||||||
| Boonville, Missouri |
18,151 |
2,632 |
39 |
- |
- |
20,822 |
||||||
| Bettendorf, Iowa |
8,370 |
6,128 |
16 |
- |
- |
14,514 |
||||||
| Marquette, Iowa |
2,955 |
1,322 |
20 |
- |
- |
4,297 |
||||||
| Waterloo, Iowa |
13,266 |
4,922 |
31 |
- |
- |
18,219 |
||||||
| Black Hawk, Colorado |
10,011 |
8,961 |
30 |
- |
- |
19,002 |
||||||
| Pompano, Florida |
9,055 |
8,082 |
18 |
- |
- |
17,155 |
||||||
| 77,684 |
42,119 |
199 |
- |
- |
120,002 |
|||||||
| Properties Impacted by Flooding |
||||||||||||
| Natchez, Mississippi |
2,620 |
1,118 |
21 |
- |
- |
3,759 |
||||||
| Lula, Mississippi |
574 |
5,005 |
40 |
- |
- |
5,619 |
||||||
| Vicksburg, Mississippi |
617 |
3,808 |
7 |
- |
- |
4,432 |
||||||
| Caruthersville, Missouri |
1,969 |
2,502 |
21 |
- |
- |
4,492 |
||||||
| Davenport, Iowa |
5,151 |
1,669 |
21 |
- |
- |
6,841 |
||||||
| 10,931 |
14,102 |
110 |
- |
- |
25,143 |
|||||||
| Total Operating Properties |
88,615 |
56,221 |
309 |
- |
- |
145,145 |
||||||
| Corporate and Other |
(30,336) |
1,905 |
5,944 |
131 |
- |
(22,356) |
||||||
| Total |
$ 58,279 |
$ 58,126 |
$ 6,253 |
$ 131 |
$ - |
$ 122,789 |
||||||
| Isle of Capri Casinos, Inc. |
|||||||||
| Reconciliation of Loss From Continuing Operations to Adjusted EBITDA |
|||||||||
| (unaudited, in thousands) |
|||||||||
| Three Months Ended |
Nine Months Ended |
||||||||
| January 27, |
January 22, |
January 27, |
January 22, |
||||||
| 2013 |
2012 |
2013 |
2012 |
||||||
| Loss from continuing operations |
$ (1,002) |
$ (316) |
$ (599) |
$ (3,905) |
|||||
| Income tax benefit |
(302) |
(200) |
(166) |
(2,383) |
|||||
| Derivative income |
(222) |
(223) |
(532) |
(252) |
|||||
| Interest income |
(100) |
(185) |
(406) |
(620) |
|||||
| Interest expense |
22,009 |
21,737 |
64,425 |
65,439 |
|||||
| Depreciation and amortization |
19,390 |
19,304 |
53,062 |
58,126 |
|||||
| Stock-based compensation |
1,171 |
1,874 |
4,066 |
6,253 |
|||||
| Preopening |
978 |
68 |
4,319 |
131 |
|||||
| Financing related |
- |
- |
1,478 |
- |
|||||
| Insurance recoveries |
- |
(872) |
- |
- |
|||||
| Adjusted EBITDA |
$ 41,922 |
$ 41,187 |
$ 125,647 |
$ 122,789 |
|||||
| 1. |
Adjusted EBITDA is "earnings before interest and other non-operating income (expense), income taxes, stock-based compensation, preopening expense, refinancing 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. |
|
| 2. |
During the third quarter of fiscal 2012 we received insurance recoveries related to the flood claims associated with flooding along the Mississippi River in the first quarter of fiscal 2012. |
SOURCE Isle of Capri Casinos, Inc.
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