Consolidating Condensed Financial Information | 12 Months Ended |
Apr. 27, 2014 |
Consolidating Condensed Financial Information | ' |
Consolidating Condensed Financial Information | ' |
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18. Consolidating Condensed Financial Information |
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Certain of our wholly owned subsidiaries have fully and unconditionally guaranteed on a joint and several basis, the payment of all obligations under our 5.875% Senior Notes, 7.75% Senior Notes and 8.875% Senior Subordinated Notes. |
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The following wholly owned subsidiaries of the Company are guarantors, on a joint and several basis, under the 5.875% Senior Notes, 7.75% Senior Notes and 8.875% Senior Subordinated Notes: Black Hawk Holdings, L.L.C.; CCSC/Blackhawk, Inc.; IC Holdings Colorado, Inc.; IOC-Black Hawk Distribution Company, L.L.C.; IOC-Boonville, Inc.; IOC-Caruthersville, L.L.C.; IOC-Kansas City, Inc.; IOC-Lula, Inc.; IOC-Natchez, Inc.; IOC-Black Hawk County, Inc.; IOC-Davenport, Inc.; IOC Holdings, L.L.C.; IOC-Vicksburg, Inc.; IOC-Vicksburg, LLC; Rainbow Casino- Vicksburg Partnership, L.P.; IOC Cape Girardeau, LLC; Isle of Capri Bettendorf, L.C; Isle of Capri Black Hawk, L.L.C.; Isle of Capri Marquette, Inc.; PPI, Inc.; and St. Charles Gaming Company, L.L.C. Each of the subsidiaries' guarantees is joint and several with the guarantees of the other subsidiaries. |
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During fiscal 2014, the IOC-PA, L.L.C. subsidiary changed designations from a Guarantor Subsidiary to a Non-Guarantor Subsidiary. All periods presented below reflect the operations of IOC-PA, L.L.C as a Non-Guarantor Subsidiary. |
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Consolidating condensed balance sheets as of April 27, 2014 and April 28, 2013 are as follows: |
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| | As of April 27, 2014 | |
Balance Sheet | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Current assets | | $ | 16,131 | | $ | 80,918 | | $ | 35,589 | | $ | (199 | ) | $ | 132,439 | |
Intercompany receivables | | | 530,886 | | | — | | | — | | | (530,886 | ) | | — | |
Investments in subsidiaries | | | 535,662 | | | 3,358 | | | — | | | (539,020 | ) | | — | |
Property and equipment, net | | | 6,693 | | | 907,175 | | | 41,736 | | | — | | | 955,604 | |
Other assets | | | 35,837 | | | 151,044 | | | 20,236 | | | (5,086 | ) | | 202,031 | |
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Total assets | | $ | 1,125,209 | | $ | 1,142,495 | | $ | 97,561 | | $ | (1,075,191 | ) | $ | 1,290,074 | |
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Current liabilities | | $ | 33,447 | | $ | 67,899 | | $ | 26,716 | | $ | (199 | ) | $ | 127,863 | |
Intercompany payables | | | — | | | 495,416 | | | 35,470 | | | (530,886 | ) | | — | |
Long-term debt, less current maturities | | | 1,065,913 | | | — | | | 158 | | | — | | | 1,066,071 | |
Other accrued liabilities | | | 6,465 | | | 68,002 | | | 7,375 | | | (5,086 | ) | | 76,756 | |
Stockholders' equity | | | 19,384 | | | 511,178 | | | 27,842 | | | (539,020 | ) | | 19,384 | |
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Total liabilities and stockholders' equity | | $ | 1,125,209 | | $ | 1,142,495 | | $ | 97,561 | | $ | (1,075,191 | ) | $ | 1,290,074 | |
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| | As of April 28, 2013 | |
Balance Sheet | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Current assets | | $ | 19,176 | | $ | 84,251 | | $ | 28,922 | | $ | (49 | ) | $ | 132,300 | |
Intercompany receivables | | | 626,444 | | | — | | | 11,803 | | | (638,247 | ) | | — | |
Investments in subsidiaries | | | 643,257 | | | — | | | — | | | (643,257 | ) | | — | |
Property and equipment, net | | | 7,831 | | | 977,423 | | | 48,772 | | | — | | | 1,034,026 | |
Other assets | | | 50,958 | | | 317,800 | | | 23,955 | | | (5,440 | ) | | 387,273 | |
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Total assets | | $ | 1,347,666 | | $ | 1,379,474 | | $ | 113,452 | | $ | (1,286,993 | ) | $ | 1,553,599 | |
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Current liabilities | | $ | 43,139 | | $ | 77,340 | | $ | 35,368 | | $ | (48 | ) | $ | 155,799 | |
Intercompany payables | | | — | | | 613,248 | | | 25,000 | | | (638,248 | ) | | — | |
Long-term debt, less current maturities | | | 1,155,939 | | | 210 | | | 320 | | | — | | | 1,156,469 | |
Other accrued liabilities | | | 6,178 | | | 76,401 | | | 21,782 | | | (5,440 | ) | | 98,921 | |
Stockholders' equity | | | 142,410 | | | 612,275 | | | 30,982 | | | (643,257 | ) | | 142,410 | |
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Total liabilities and stockholders' equity | | $ | 1,347,666 | | $ | 1,379,474 | | $ | 113,452 | | $ | (1,286,993 | ) | $ | 1,553,599 | |
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Consolidating condensed statements of operations for the fiscal years ended April 27, 2014, April 28, 2013, and April 29, 2012 are as follows: |
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| | For the Fiscal Year Ended April 28, 2014 | |
Statement of Operations | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Revenues: | | | | | | | | | | | | | | | | |
Casino | | $ | — | | $ | 977,551 | | $ | 26,704 | | $ | — | | $ | 1,004,255 | |
Rooms, food, beverage, pari-mutuel and other | | | 688 | | | 164,014 | | | 12,237 | | | (9,185 | ) | | 167,754 | |
Management fee revenue | | | 33,307 | | | — | | | — | | | (33,307 | ) | | — | |
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Gross revenues | | | 33,995 | | | 1,141,565 | | | 38,941 | | | (42,492 | ) | | 1,172,009 | |
Less promotional allowances | | | — | | | (211,253 | ) | | (6,156 | ) | | — | | | (217,409 | ) |
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Net revenues | | | 33,995 | | | 930,312 | | | 32,785 | | | (42,492 | ) | | 954,600 | |
Operating expenses: | | | | | | | | | | | | | | | | |
Casino | | | — | | | 152,271 | | | 5,748 | | | — | | | 158,019 | |
Gaming taxes | | | — | | | 244,017 | | | 10,668 | | | — | | | 254,685 | |
Rooms, food, beverage, pari-mutuel and other | | | 31,737 | | | 331,991 | | | 21,263 | | | (9,185 | ) | | 375,806 | |
Valuation charges | | | — | | | 135,747 | | | 26,353 | | | — | | | 162,100 | |
Litigation accrual reversals | | | (1,979 | ) | | — | | | (7,351 | ) | | | | | (9,330 | ) |
Management fee expense | | | — | | | 32,499 | | | 808 | | | (33,307 | ) | | — | |
Depreciation and amortization | | | 1,709 | | | 73,733 | | | 5,443 | | | — | | | 80,885 | |
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Total operating expenses | | | 31,467 | | | 970,258 | | | 62,932 | | | (42,492 | ) | | 1,022,165 | |
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Operating income (loss) | | | 2,528 | | | (39,946 | ) | | (30,147 | ) | | — | | | (67,565 | ) |
Interest (expense) income, net | | | (45,829 | ) | | (39,894 | ) | | 4,730 | | | — | | | (80,993 | ) |
Derivative income | | | 398 | | | — | | | — | | | — | | | 398 | |
Equity in income (loss) of subsidiaries | | | (125,290 | ) | | — | | | — | | | 125,290 | | | — | |
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Income (loss) from continuing operations before income taxes | | | (168,193 | ) | | (79,840 | ) | | (25,417 | ) | | 125,290 | | | (148,160 | ) |
Income tax (provision) benefit | | | 32,327 | | | (22,439 | ) | | 8,606 | | | — | | | 18,494 | |
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Income (loss) from continuining operations | | | (135,866 | ) | | (102,279 | ) | | (16,811 | ) | | 125,290 | | | (129,666 | ) |
Income of discontinued operations | | | 1,980 | | | 916 | | | — | | | (916 | ) | | 1,980 | |
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Net income (loss) | | $ | (133,886 | ) | $ | (101,363 | ) | $ | (16,811 | ) | $ | 124,374 | | $ | (127,686 | ) |
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| | For the Fiscal Year Ended April 28, 2013 | |
Statement of Operations | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Revenues: | | | | | | | | | | | | | | | | |
Casino | | $ | — | | $ | 967,142 | | $ | — | | $ | — | | $ | 967,142 | |
Rooms, food, beverage, pari-mutuel and other | | | 735 | | | 159,412 | | | 8,978 | | | (8,955 | ) | | 160,170 | |
Management fee revenue | | | 32,474 | | | — | | | — | | | (32,474 | ) | | — | |
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Gross revenues | | | 33,209 | | | 1,126,554 | | | 8,978 | | | (41,429 | ) | | 1,127,312 | |
Less promotional allowances | | | — | | | (203,907 | ) | | — | | | — | | | (203,907 | ) |
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Net revenues | | | 33,209 | | | 922,647 | | | 8,978 | | | (41,429 | ) | | 923,405 | |
Operating expenses: | | | | | | | | | | | | | | | | |
Casino | | | — | | | 150,075 | | | — | | | — | | | 150,075 | |
Gaming taxes | | | — | | | 241,038 | | | — | | | — | | | 241,038 | |
Rooms, food, beverage, pari-mutuel and other | | | 37,769 | | | 332,904 | | | 6,849 | | | (8,955 | ) | | 368,567 | |
Valuation charges | | | — | | | 50,100 | | | — | | | — | | | 50,100 | |
Management fee expense | | | — | | | 32,474 | | | — | | | (32,474 | ) | | — | |
Depreciation and amortization | | | 2,020 | | | 68,825 | | | 319 | | | — | | | 71,164 | |
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Total operating expenses | | | 39,789 | | | 875,416 | | | 7,168 | | | (41,429 | ) | | 880,944 | |
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Operating income (loss) | | | (6,580 | ) | | 47,231 | | | 1,810 | | | — | | | 42,461 | |
Interest (expense) income, net | | | (51,810 | ) | | (36,146 | ) | | (988 | ) | | — | | | (88,944 | ) |
Derivative income | | | 748 | | | — | | | — | | | — | | | 748 | |
Equity in income (loss) of subsidiaries | | | (14,801 | ) | | — | | | — | | | 14,801 | | | — | |
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Income (loss) from continuing operations before income taxes | | | (72,443 | ) | | 11,085 | | | 822 | | | 14,801 | | | (45,735 | ) |
Income tax (provision) benefit | | | 19,976 | | | (26,011 | ) | | (697 | ) | | | | | (6,732 | ) |
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Income (loss) from continuining operations | | | (52,467 | ) | | (14,926 | ) | | 125 | | | 14,801 | | | (52,467 | ) |
Income (loss) of discontinued operations | | | 4,898 | | | 2,382 | | | — | | | (2,382 | ) | | 4,898 | |
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Net income (loss) | | $ | (47,569 | ) | $ | (12,544 | ) | $ | 125 | | $ | 12,419 | | $ | (47,569 | ) |
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| | For the Fiscal Year Ended April 29, 2012 | |
Statement of Operations | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Revenues: | | | | | | | | | | | | | | | | |
Casino | | $ | — | | $ | 955,897 | | $ | — | | $ | — | | $ | 955,897 | |
Rooms, food, beverage, pari-mutuel and other | | | 1,088 | | | 163,244 | | | 9,645 | | | (9,290 | ) | | 164,687 | |
Management fee revenue | | | 33,074 | | | — | | | — | | | (33,074 | ) | | — | |
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Gross revenues | | | 34,162 | | | 1,119,141 | | | 9,645 | | | (42,364 | ) | | 1,120,584 | |
Less promotional allowances | | | — | | | (187,640 | ) | | — | | | — | | | (187,640 | ) |
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Net revenues | | | 34,162 | | | 931,501 | | | 9,645 | | | (42,364 | ) | | 932,944 | |
Operating expenses: | | | | | | | | | | | | | | | | |
Casino | | | — | | | 147,205 | | | — | | | — | | | 147,205 | |
Gaming taxes | | | — | | | 237,135 | | | — | | | — | | | 237,135 | |
Rooms, food, beverage, pari-mutuel and other | | | 41,502 | | | 327,837 | | | 8,036 | | | (9,290 | ) | | 368,085 | |
Valuation charges | | | — | | | 30,549 | | | — | | | — | | | 30,549 | |
Management fee expense | | | — | | | 33,074 | | | — | | | (33,074 | ) | | — | |
Depreciation and amortization | | | 1,960 | | | 71,336 | | | 552 | | | — | | | 73,848 | |
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Total operating expenses | | | 43,462 | | | 847,136 | | | 8,588 | | | (42,364 | ) | | 856,822 | |
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Operating income (loss) | | | (9,300 | ) | | 84,365 | | | 1,057 | | | — | | | 76,122 | |
Interest (expense) income, net | | | (28,384 | ) | | (58,025 | ) | | (656 | ) | | — | | | (87,065 | ) |
Derivative income | | | 439 | | | — | | | — | | | — | | | 439 | |
Equity in income (loss) of subsidiaries | | | 47,899 | | | — | | | — | | | (47,899 | ) | | — | |
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Income (loss) from continuing operations before income taxes | | | 10,654 | | | 26,340 | | | 401 | | | (47,899 | ) | | (10,504 | ) |
Income tax (provision) benefit | | | (36,277 | ) | | 21,279 | | | (121 | ) | | — | | | (15,119 | ) |
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Income (loss) from continuining operations | | | (25,623 | ) | | 47,619 | | | 280 | | | (47,899 | ) | | (25,623 | ) |
Income (loss) of discontinued operations | | | (104,130 | ) | | (107,562 | ) | | — | | | 107,562 | | | (104,130 | ) |
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Net income (loss) | | $ | (129,753 | ) | $ | (59,943 | ) | $ | 280 | | $ | 59,663 | | $ | (129,753 | ) |
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Consolidating condensed statements of cash flows for the fiscal years ended April 27, 2014, April 28, 2013, and April 29, 2012 are as follows: |
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| | For the Fiscal Year Ended April 27, 2014 | |
Statement of Cash Flows | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Net cash provided by (used in) operating activities | | $ | 5,431 | | $ | 88,579 | | $ | (7,261 | ) | $ | — | | $ | 86,749 | |
Investing Activities: | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | (580 | ) | | (19,243 | ) | | (18,326 | ) | | — | | | (38,149 | ) |
Proceeds from sales of assets, net | | | — | | | 48,759 | | | 1,122 | | | — | | | 49,881 | |
Payments towards gaming license | | | — | | | — | | | (7,500 | ) | | — | | | (7,500 | ) |
Restricted cash and investments | | | — | | | — | | | 1,879 | | | — | | | 1,879 | |
Parent company investment in subsidiaries | | | 85,222 | | | — | | | — | | | (85,222 | ) | | — | |
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Net cash provided by (used in) investing activities | | | 84,642 | | | 29,516 | | | (22,825 | ) | | (85,222 | ) | | 6,111 | |
Financing Activities: | | | | | | | | | | | | | | | | |
Net repayments on line of credit | | | (90,200 | ) | | — | | | — | | | — | | | (90,200 | ) |
Principal payments on debt | | | (63 | ) | | (410 | ) | | (153 | ) | | — | | | (626 | ) |
Payments of deferred financing costs | | | (673 | ) | | — | | | — | | | — | | | (673 | ) |
Net proceeds from (payments to) related parties | | | — | | | (121,166 | ) | | 35,944 | | | 85,222 | | | — | |
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Net cash provided by (used in) financing activities | | | (90,936 | ) | | (121,576 | ) | | 35,791 | | | 85,222 | | | (91,499 | ) |
Net increase (decrease) in cash and cash equivalents | | | (863 | ) | | (3,481 | ) | | 5,705 | | | — | | | 1,361 | |
Cash and cash equivalents at beginning of period | | | 6,914 | | | 57,268 | | | 4,287 | | | — | | | 68,469 | |
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Cash and cash equivalents at end of the period | | $ | 6,051 | | $ | 53,787 | | $ | 9,992 | | | — | | $ | 69,830 | |
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| | For the Fiscal Year Ended April 28, 2013 | |
Statement of Cash Flows | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Net cash provided by (used in) operating activities | | $ | (48,218 | ) | $ | 165,168 | | $ | (908 | ) | $ | — | | $ | 116,042 | |
Investing Activities: | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | (598 | ) | | (128,915 | ) | | (23,732 | ) | | — | | | (153,245 | ) |
Proceeds from sales of assets, net | | | — | | | 33,253 | | | — | | | — | | | 33,253 | |
Payments towards gaming license | | | — | | | — | | | (5,000 | ) | | — | | | (5,000 | ) |
Restricted cash and investments | | | 500 | | | 1,085 | | | (42 | ) | | — | | | 1,543 | |
Parent company investment in subsidiaries | | | 34,072 | | | — | | | — | | | (34,072 | ) | | — | |
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Net cash provided by (used in) investing activities | | | 33,974 | | | (94,577 | ) | | (28,774 | ) | | (34,072 | ) | | (123,449 | ) |
Financing Activities: | | | | | | | | | | | | | | | | |
Proceeds from the issuance of long-term debt | | | 700,000 | | | — | | | — | | | — | | | 700,000 | |
Net borrowings on line of credit | | | 154,900 | | | — | | | — | | | — | | | 154,900 | |
Principal payments on debt | | | (852,289 | ) | | (237 | ) | | (141 | ) | | — | | | (852,667 | ) |
Payments of deferred financing costs | | | (21,486 | ) | | — | | | — | | | — | | | (21,486 | ) |
Proceeds from exercise of stock options | | | 668 | | | — | | | — | | | — | | | 668 | |
Net proceeds from (payments to) related parties | | | — | | | (63,835 | ) | | 29,763 | | | 34,072 | | | — | |
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Net cash provided by (used in) financing activities | | | (18,207 | ) | | (64,072 | ) | | 29,622 | | | 34,072 | | | (18,585 | ) |
Net increase (decrease) in cash and cash equivalents | | | (32,451 | ) | | 6,519 | | | (60 | ) | | — | | | (25,992 | ) |
Cash and cash equivalents at beginning of period | | | 39,365 | | | 50,749 | | | 4,347 | | | — | | | 94,461 | |
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Cash and cash equivalents at end of the period | | $ | 6,914 | | $ | 57,268 | | $ | 4,287 | | $ | — | | $ | 68,469 | |
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| | For Fiscal Year Ended April 29, 2012 | |
Statement of Cash Flows | | Isle of Capri | | Guarantor | | Non-Guarantor | | Consolidating | | Isle of Capri | |
Casinos, Inc. | Subsidiaries | Subsidiaries | and | Casinos, Inc. |
(Parent | | | Eliminating | Consolidated |
Obligor) | | | Entries | |
Net cash provided by (used in) operating activities | | $ | 12,960 | | $ | 99,588 | | $ | 5,511 | | $ | — | | $ | 118,059 | |
Investing Activities: | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | (1,082 | ) | | (73,530 | ) | | (721 | ) | | — | | | (75,333 | ) |
Proceeds from asset sales, net | | | — | | | 14,940 | | | — | | | — | | | 14,940 | |
Restricted cash and investments | | | 24 | | | 635 | | | (315 | ) | | — | | | 344 | |
Parent company investment in subsidiaries | | | 61,864 | | | — | | | — | | | (61,864 | ) | | — | |
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Net cash provided by (used in) investing activities | | | 60,806 | | | (57,955 | ) | | (1,036 | ) | | (61,864 | ) | | (60,049 | ) |
Financing Activities: | | | | | | | | | | | | | | | | |
Net repayments on line of credit | | | (33,000 | ) | | — | | | — | | | — | | | (33,000 | ) |
Principal payments on debt | | | (5,000 | ) | | (244 | ) | | (130 | ) | | — | | | (5,374 | ) |
Payments of deferred financing costs | | | (366 | ) | | — | | | — | | | — | | | (366 | ) |
Proceeds from exercise of stock options | | | 13 | | | — | | | — | | | — | | | 13 | |
Net proceeds from (payments to) related parties | | | — | | | (52,745 | ) | | (9,119 | ) | | 61,864 | | | — | |
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Net cash provided by (used in) financing activities | | | (38,353 | ) | | (52,989 | ) | | (9,249 | ) | | 61,864 | | | (38,727 | ) |
Net increase (decrease) in cash and cash equivalents | | | 35,413 | | | (11,356 | ) | | (4,774 | ) | | — | | | 19,283 | |
Cash and cash equivalents at beginning of period | | | 3,952 | | | 62,105 | | | 9,121 | | | — | | | 75,178 | |
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Cash and cash equivalents at end of the period | | $ | 39,365 | | $ | 50,749 | | $ | 4,347 | | | — | | $ | 94,461 | |
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