Exhibit 99.1
ISLE OF CAPRI CASINOS, INC. ANNOUNCES
FISCAL 2014 SECOND QUARTER RESULTS
SAINT LOUIS, MO — December 3, 2013 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the second quarter of fiscal year 2014 ended October 27, 2013 and other Company-related news.
Consolidated Financial 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 27, | | October 28, | | October 27, | | October 28, | |
| | 2013 | | 2012 | | 2013 | | 2012 | |
Net revenues | | $ | 241.6 | | $ | 223.2 | | $ | 489.3 | | $ | 459.0 | |
Consolidated Adjusted EBITDA (1) | | 39.6 | | 38.7 | | 82.9 | | 83.7 | |
| | | | | | | | | |
Income (loss) from continuing operations | | 8.0 | | (4.3 | ) | 3.2 | | 0.4 | |
Loss from discontinued operations | | — | | (2.3 | ) | — | | (0.4 | ) |
Net income (loss) | | 8.0 | | (6.6 | ) | 3.2 | | — | |
Diluted income (loss) per share from continuing operations | | 0.20 | | (0.11 | ) | 0.08 | | 0.01 | |
Diluted loss per share from discontinued operations | | — | | (0.06 | ) | — | | (0.01 | ) |
Diluted income (loss) per share | | 0.20 | | (0.17 | ) | 0.08 | | — | |
| | | | | | | | | | | | | |
(1) For a further description of Consolidated Adjusted EBITDA, refer to the reconciliation tables following the narrative and the definition of Adjusted EBITDA in footnote (1) of this release.
Diluted income (loss) per share from continuing operations for the quarter was $0.20 compared to ($0.11) for the second quarter last year. Net income for the current year quarter was impacted by a favorable judicial ruling on litigation in Greece, in which the Company reversed a $14.7 million litigation accrual, of which $7.3 million reduced operating expenses and $7.4 million reduced interest expense. The results for the prior year quarter were impacted by $2.7 million in preopening costs associated with the Cape Girardeau casino which opened on October 30, 2012, and $2.5 million in refinancing costs. Excluding these items, diluted earnings per share from continuing operations for the fiscal 2014 quarter would have been a loss of ($0.17) compared to break even ($0.00) for the prior year quarter.
Virginia McDowell, the Company’s president and chief executive officer, commented,
“As a company, we continue to make operating improvements and enhancements across the portfolio, but we also continue to struggle with the effects of the uncertain economy.
“During the fiscal quarter, we experienced a modest, $2.1 million decline in same store revenue, and Adjusted EBITDA at these same properties declined $1.2 million, largely as a result of increased competition in Natchez and events we could not have predicted, including the
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substantial flooding in Colorado and the Federal government shutdown. However, we increased EBITDA at six properties and margins increased at eight properties, including significant performance improvements at our properties in Pompano, Vicksburg and Lake Charles.
“While the uncertain consumer economy continues to be a drag on our results, we continue to focus on maximizing the profitability of our portfolio and enhancing shareholder value. To that end, we have recently undertaken a top-to-bottom review of our business practices and are implementing bold changes to the way we view and operate our business. We have begun a wide-ranging initiative across our entire company to delete duplication, streamline decision making and aggressively pursue additional cost savings. These initiatives have contributed approximately $2.5 million to our results so far this year and when fully implemented we expect the annualized run rate will be at least $10 million.
“Furthermore, we are committed to improving profitability at our newest facilities in Cape Girardeau and Nemacolin. Both markets continue to ramp slower than we originally anticipated and we expect it will take a couple more years to fully penetrate the markets. However, we are taking every possible step to make the properties successful in the short term. We recently introduced a new general manager in Cape Girardeau and will continue to modify our cost structure in Nemacolin.”
Operating Results
Black Hawk — Net revenues and Adjusted EBITDA each decreased approximately $0.7 million to $30.0 million and $6.9 million, respectively, at our two casinos in Black Hawk, primarily as a result of the widespread flooding in Colorado during the period and construction disruption due to exterior refurbishments at Lady Luck Black Hawk and road construction.
Pompano — Net revenues increased 8.0% to $36.4 million, and Adjusted EBITDA increased 12.8%, to $5.5 million at Pompano Park. These results were driven primarily by increased marketing promotions that led to a $5.1 million increase in gross slot win during the period, partially offset by additional marketing expenses.
Iowa — Net revenues decreased $1.5 million to $56.9 million, and Adjusted EBITDA was essentially flat at $15.4 million at our properties in Iowa. Our properties in Marquette and Waterloo were able to offset declines in net revenue through cost containment efforts. In the Quad Cities, we were hampered by the government shutdown and adjusted EBITDA decreased $0.2 million.
Lake Charles — Net revenues increased 5.0% to $31.2 million, and Adjusted EBITDA increased 6.9% to $4.5 million. The Lake Charles property continues to improve comparative results due to the benefits from facility enhancements, database marketing initiatives, promotional events and advertising campaigns. During the prior year quarter, results were impacted by construction disruption associated with renovations to the primary hotel tower.
Missouri — Net revenues increased $10.1 million to $56.1 million, and Adjusted EBITDA increased $0.5 million to $12.8 million at our properties in Missouri, collectively. Cape
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Girardeau contributed $13.0 million in net revenues and $1.6 million of Adjusted EBITDA in the fiscal 2014 quarter. Results at our three other properties in the state were negatively impacted by growing unemployment, the impact of the government shutdown in middle Missouri and competitive pressures in the Kansas City market, resulting in a decrease in net revenues and Adjusted EBITDA of $2.9 million and $1.1 million respectively .
Mississippi — Net revenues grew $1.1 million to $7.0 million and Adjusted EBITDA grew $0.4 million at our newly renovated Vicksburg facility, as market share grew 410 basis points to 17.1% in the quarter. In Lula cost savings efforts led to increased Adjusted EBITDA despite a $1.2 million decrease in net revenue. In Natchez, the impact of a new competitor continues to hamper operating results leading to a decrease in net revenues and Adjusted EBITDA of $1.2 million and $0.9 million, respectively. Collectively, net revenues decreased 5.2% to $23.4 million, and Adjusted EBITDA decreased 12.3% to $1.5 million at our properties in Mississippi.
Pennsylvania — Net revenues were $7.4 million, and Adjusted EBITDA was ($1.3) million. This is the first year of operation for Lady Luck Casino at Nemacolin Woodlands Resort, and the first full fiscal quarter of operation. We continue to fine tune our marketing to both local customers and resort guests and to aggressively manage our cost structure.
Corporate Expenses
Corporate and development expenses were $7.4 million for the quarter, a decrease of $3.4 million compared to the prior year. Included in the results for fiscal 2013 are $1.5 million in refinancing related costs and $1.0 million in increased legal costs. The remainder of the decrease is attributable to cost containment initiatives at the corporate office.
Non-cash stock compensation expense was $1.4 million for the quarter compared to $1.5 million in the second quarter of fiscal 2013.
Corporate and development expenses for FY2014 are expected to be approximately $30 million, including approximately $5 million for non-cash stock based compensation expense, a decrease of $4 million from previous guidance primarily a result of cost containment initiatives and a $1.0 million gain on the sale of the corporate aircraft in the first quarter.
Development
Sale of Rhythm City Casino Davenport — In June 2013 we entered into an agreement with Scott County Casino LLC, led by Dan Kehl, providing it with an option to purchase Rhythm City for $51 million subject to certain terms and conditions. On November 24, 2013 the City Council of Davenport approved the terms of a development agreement with Scott County Casino, LLC. Mr. Kehl has informed us that Scott County Casino, LLC intends to execute the option agreement to purchase the property. Upon receipt of the notice to exercise and other documentation we expect to enter into a definitive purchase agreement with Scott County Casino, LLC.
The Provence, Philadelphia, Pennsylvania — On February 1, 2013, we entered into an agreement with Tower Entertainment, LLC, to operate the proposed $700 million casino entertainment
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complex, dubbed The Provence, in Philadelphia, if selected for licensure by the Pennsylvania Gaming Control Board. As proposed the 1.25 million square foot project is expected to include a 125-room hotel, a casino featuring approximately 3,300 electronic gaming machines and 150 table games, as well as a wide variety of non-gaming entertainment amenities, including at least eight restaurants, many smaller bars and eateries, 60,000 square feet of retail space, a concert hall and several entertainment clubs. The Pennsylvania Gaming Control Board has announced that suitability hearings before the Board have been scheduled for January 28 — 30th of 2014.
Capital Structure and Capital Expenditures
As of October 27, 2013, the Company had:
· $70.0 million in cash and cash equivalents, excluding $9.8 million in restricted cash and investments;
· $1.2 billion in total debt; and
· $104 million in net line of credit availability.
Second quarter capital expenditures were $8.4 million, bringing total capital expenditures to $38.2 million for the six months, of which $25.2 million related to Nemacolin.
The Company expects to incur approximately $20 million to $22 million in capital expenditures for the balance of fiscal 2014 bringing estimated total capital expenditures for fiscal 2014 to approximately $58 million to $60 million, including the $25.2 million related to Nemacolin construction.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December 3, 2013 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 866-652-5200. International callers can access the conference call by dialing 412-317-6060. The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, December 3, 2013, until midnight central on Tuesday, December 10, 2013, by dialing 877-344-7529; International: 412-317-0088 and access number 10037247.
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 casino properties that it owns and operates, primarily under the Isle and Lady Luck brands. The Company currently owns and operates 16 gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado, Pennsylvania and Florida. More information is available at the Company’s website, www.islecorp.com.
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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
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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 27, | | October 28, | | October 27, | | October 28, | |
| | 2013 | | 2012 | | 2013 | | 2012 | |
Revenues: | | | | | | | | | |
Casino | | $ | 257,928 | | $ | 234,648 | | $ | 520,070 | | $ | 484,917 | |
Rooms | | 8,713 | | 8,328 | | 17,628 | | 16,958 | |
Food, beverage, pari-mutuel and other | | 33,728 | | 30,437 | | 68,944 | | 63,243 | |
Gross revenues | | 300,369 | | 273,413 | | 606,642 | | 565,118 | |
Less promotional allowances | | (58,789 | ) | (50,206 | ) | (117,333 | ) | (106,088 | ) |
Net revenues | | 241,580 | | 223,207 | | 489,309 | | 459,030 | |
Operating expenses: | | | | | | | | | |
Casino | | 41,267 | | 36,802 | | 83,010 | | 75,298 | |
Gaming taxes | | 65,722 | | 58,619 | | 131,698 | | 120,247 | |
Rooms | | 1,880 | | 1,781 | | 3,789 | | 3,554 | |
Food, beverage, pari-mutuel and other | | 10,590 | | 9,217 | | 21,659 | | 19,321 | |
Marine and facilities | | 14,802 | | 13,888 | | 29,850 | | 27,588 | |
Marketing and administrative | | 61,844 | | 56,464 | | 123,950 | | 114,420 | |
Corporate and development | | 7,386 | | 10,777 | | 14,084 | | 19,250 | |
Litigation accrual reversal | | (7,351 | ) | — | | (7,351 | ) | | |
Preopening expense | | — | | 2,654 | | 3,898 | | 3,341 | |
Depreciation and amortization | | 21,102 | | 16,850 | | 41,497 | | 33,672 | |
Total operating expenses | | 217,242 | | 207,052 | | 446,084 | | 416,691 | |
Operating income | | 24,338 | | 16,155 | | 43,225 | | 42,339 | |
| | | | | | | | | |
Interest expense | | (15,194 | ) | (21,985 | ) | (37,852 | ) | (42,416 | ) |
Interest income | | 84 | | 131 | | 174 | | 306 | |
Derivative income | | 168 | | 176 | | 398 | | 310 | |
Income (loss) from continuing operations before income taxes | | 9,396 | | (5,523 | ) | 5,945 | | 539 | |
Income tax (provision) benefit | | (1,359 | ) | 1,182 | | (2,770 | ) | (136 | ) |
Income (loss) from continuing operations | | 8,037 | | (4,341 | ) | 3,175 | | 403 | |
Loss from discontinued operations, net of income taxes | | — | | (2,312 | ) | — | | (395 | ) |
Net income (loss) | | $ | 8,037 | | $ | (6,653 | ) | $ | 3,175 | | $ | 8 | |
| | | | | | | | | |
Income (loss) per common share-basic: | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.20 | | $ | (0.11 | ) | $ | 0.08 | | $ | 0.01 | |
Income from discontinued operations, net of income taxes | | — | | (0.06 | ) | — | | (0.01 | ) |
Net income (loss) | | $ | 0.20 | | $ | (0.17 | ) | $ | 0.08 | | $ | — | |
| | | | | | | | | |
Income (loss) per common share-dilutive: | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.20 | | $ | (0.11 | ) | $ | 0.08 | | $ | 0.01 | |
Income from discontinued operations, net of income taxes | | — | | (0.06 | ) | — | | (0.01 | ) |
Net income (loss) | | $ | 0.20 | | $ | (0.17 | ) | $ | 0.08 | | $ | — | |
| | | | | | | | | |
Weighted average basic shares | | 39,686,217 | | 39,336,134 | | 39,634,573 | | 39,177,208 | |
Weighted average diluted shares | | 39,731,192 | | 39,336,134 | | 39,682,644 | | 39,192,075 | |
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ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
| | October 27, | | April 28, | |
| | 2013 | | 2013 | |
| | (unaudited) | | | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 69,958 | | $ | 68,469 | |
Marketable securities | | 25,120 | | 25,520 | |
Accounts receivable, net | | 9,870 | | 11,077 | |
Income taxes receivable | | 4,343 | | 4,789 | |
Deferred income taxes | | 2,096 | | 1,573 | |
Prepaid expenses and other assets | | 25,726 | | 20,872 | |
Total current assets | | 137,113 | | 132,300 | |
Property and equipment, net | | 1,017,472 | | 1,034,026 | |
Other assets: | | | | | |
Goodwill | | 280,803 | | 280,803 | |
Other intangible assets, net | | 67,690 | | 60,748 | |
Deferred financing costs, net | | 25,680 | | 27,230 | |
Restricted cash and investments | | 9,782 | | 11,417 | |
Prepaid deposits and other | | 5,087 | | 7,075 | |
Total assets | | $ | 1,543,627 | | $ | 1,553,599 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Current maturities of long-term debt | | $ | 433 | | $ | 415 | |
Accounts payable | | 19,078 | | 34,533 | |
Accrued liabilities: | | | | | |
Payroll and related | | 35,696 | | 35,093 | |
Property and other taxes | | 25,627 | | 21,340 | |
Interest | | 17,073 | | 18,502 | |
Progressive jackpots and slot club awards | | 16,267 | | 16,579 | |
Other | | 30,996 | | 29,337 | |
Total current liabilities | | 145,170 | | 155,799 | |
Long-term debt, less current maturities | | 1,162,264 | | 1,156,469 | |
Deferred income taxes | | 45,967 | | 43,104 | |
Other accrued liabilities | | 19,324 | | 33,303 | |
Other long-term liabilities | | 22,433 | | 22,514 | |
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 27, 2013 and at April 28, 2013 | | 421 | | 421 | |
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued | | — | | — | |
Additional paid-in capital | | 246,522 | | 246,214 | |
Retained earnings (deficit) | | (71,052 | ) | (74,227 | ) |
Accumulated other comprehensive (loss) income | | — | | (247 | ) |
| | 175,891 | | 172,161 | |
Treasury stock, 2,276,760 shares at October 27, 2013 and 2,470,128 shares at April 28, 2013 | | (27,422 | ) | (29,751 | ) |
Total stockholders’ equity | | 148,469 | | 142,410 | |
Total liabilities and stockholders’ equity | | $ | 1,543,627 | | $ | 1,553,599 | |
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Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
| | Three Months Ended | | Six Months Ended | |
| | October 27, | | October 28, | | October 27, | | October 28, | |
| | 2013 | | 2012 | | 2013 | | 2012 | |
Colorado | | | | | | | | | |
Black Hawk | | $ | 30,023 | | $ | 30,670 | | $ | 62,707 | | $ | 62,023 | |
| | | | | | | | | |
Florida | | | | | | | | | |
Pompano | | 36,400 | | 33,691 | | 73,786 | | 68,376 | |
| | | | | | | | | |
Iowa | | | | | | | | | |
Bettendorf | | 18,965 | | 19,694 | | 38,430 | | 39,549 | |
Davenport | | 9,959 | | 10,390 | | 19,675 | | 21,036 | |
Marquette | | 6,911 | | 7,332 | | 14,023 | | 14,713 | |
Waterloo | | 21,040 | | 20,925 | | 41,982 | | 42,337 | |
Iowa Total | | 56,875 | | 58,341 | | 114,110 | | 117,635 | |
| | | | | | | | | |
Louisiana | | | | | | | | | |
Lake Charles | | 31,244 | | 29,749 | | 64,910 | | 63,327 | |
| | | | | | | | | |
Mississippi | | | | | | | | | |
Lula | | 11,523 | | 12,772 | | 24,102 | | 27,403 | |
Natchez | | 4,795 | | 5,962 | | 10,122 | | 12,963 | |
Vicksburg | | 7,035 | | 5,897 | | 14,814 | | 13,455 | |
Mississippi Total | | 23,353 | | 24,631 | | 49,038 | | 53,821 | |
| | | | | | | | | |
Missouri | | | | | | | | | |
Boonville | | 18,891 | | 19,798 | | 37,620 | | 40,186 | |
Cape Girardeau | | 13,049 | | — | | 26,858 | | — | |
Caruthersville | | 7,199 | | 8,144 | | 14,886 | | 16,777 | |
Kansas City | | 16,936 | | 18,012 | | 35,007 | | 36,532 | |
Missouri Total | | 56,075 | | 45,954 | | 114,371 | | 93,495 | |
| | | | | | | | | |
Pennsylvania | | | | | | | | | |
Nemacolin | | 7,429 | | — | | 10,022 | | — | |
| | | | | | | | | |
Property Net Revenues before Other | | 241,399 | | 223,036 | | 488,944 | | 458,677 | |
Other | | 181 | | 171 | | 365 | | 353 | |
Net Revenues from Continuing Operations | | $ | 241,580 | | $ | 223,207 | | $ | 489,309 | | $ | 459,030 | |
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Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
| | Three Months Ended October 27, 2013 | |
| | Operating
Income (Loss) | | Depreciation and
Amortization | | Stock-Based
Compensation | | Preopening
and Other | | Adjusted
EBITDA | |
Black Hawk, Colorado | | $ | 4,532 | | $ | 2,356 | | $ | 8 | | $ | — | | $ | 6,896 | |
| | | | �� | | | | | | | |
Pompano, Florida | | 3,727 | | 1,788 | | 6 | | — | | 5,521 | |
| | | | | | | | | | | |
Bettendorf, Iowa | | 3,276 | | 1,679 | | 3 | | — | | 4,958 | |
Davenport, Iowa | | 1,727 | | 580 | | 4 | | — | | 2,311 | |
Marquette, Iowa | | 1,242 | | 487 | | 1 | | — | | 1,730 | |
Waterloo, Iowa | | 5,230 | | 1,202 | | 4 | | — | | 6,436 | |
Iowa Total | | 11,475 | | 3,948 | | 12 | | — | | 15,435 | |
| | | | | | | | | | | |
Lake Charles, Louisiana | | 1,460 | | 3,003 | | 4 | | — | | 4,467 | |
| | | | | | | | | | | |
Lula, Mississippi | | (186 | ) | 1,322 | | 3 | | — | | 1,139 | |
Natchez, Mississippi | | (736 | ) | 342 | | 4 | | — | | (390 | ) |
Vicksburg, Mississippi | | (110 | ) | 891 | | 4 | | — | | 785 | |
Mississippi Total | | (1,032 | ) | 2,555 | | 11 | | — | | 1,534 | |
| | | | | | | | | | | |
Boonville, Missouri | | 5,762 | | 911 | | 6 | | — | | 6,679 | |
Cape Girardeau, Missouri | | (1,225 | ) | 2,788 | | 1 | | — | | 1,564 | |
Caruthersville, Missouri | | 325 | | 742 | | 4 | | — | | 1,071 | |
Kansas City, Missouri | | 2,560 | | 961 | | 4 | | — | | 3,525 | |
Missouri Total | | 7,422 | | 5,402 | | 15 | | — | | 12,839 | |
| | | | | | | | | | | |
Nemacolin, Pennsylvania | | (3,013 | ) | 1,670 | | 1 | | | | (1,342 | ) |
Total Operating Properties | | 24,571 | | 20,722 | | 57 | | — | | 45,350 | |
Corporate and Other | | (233 | ) | 380 | | 1,446 | | (7,351 | ) | (5,758 | ) |
Total | | $ | 24,338 | | $ | 21,102 | | $ | 1,503 | | $ | (7,351 | ) | $ | 39,592 | |
| | Three Months Ended October 28, 2012 | |
| | Operating
Income (Loss) | | Depreciation and
Amortization | | Stock-Based
Compensation | | Preopening
and Other | | Adjusted
EBITDA | |
Black Hawk, Colorado | | $ | 5,435 | | $ | 2,210 | | $ | 14 | | $ | — | | $ | 7,659 | |
| | | | | | | | | | | |
Pompano, Florida | | 3,083 | | 1,803 | | 8 | | — | | 4,894 | |
| | | | | | | | | | | |
Bettendorf, Iowa | | 3,578 | | 1,770 | | 4 | | — | | 5,352 | |
Davenport, Iowa | | 1,566 | | 546 | | 6 | | — | | 2,118 | |
Marquette, Iowa | | 1,172 | | 445 | | 5 | | — | | 1,622 | |
Waterloo, Iowa | | 5,218 | | 1,165 | | 6 | | — | | 6,389 | |
Iowa Total | | 11,534 | | 3,926 | | 21 | | — | | 15,481 | |
| | | | | | | | | | | |
Lake Charles, Louisiana | | 1,867 | | 2,310 | | 2 | | — | | 4,179 | |
| | | | | | | | | | | |
Lula, Mississippi | | (803 | ) | 1,702 | | 6 | | — | | 905 | |
Natchez, Mississippi | | 118 | | 359 | | 5 | | — | | 482 | |
Vicksburg, Mississippi | | (860 | ) | 1,218 | | 5 | | — | | 363 | |
Mississippi Total | | (1,545 | ) | 3,279 | | 16 | | — | | 1,750 | |
| | | | | | | | | | | |
Boonville, Missouri | | 5,918 | | 886 | | 6 | | — | | 6,810 | |
Cape Girardeau, Missouri | | (2,654 | ) | — | | — | | 2,654 | | — | |
Caruthersville, Missouri | | 593 | | 835 | | 5 | | — | | 1,433 | |
Kansas City, Missouri | | 3,152 | | 980 | | 4 | | — | | 4,136 | |
Missouri Total | | 7,009 | | 2,701 | | 15 | | 2,654 | | 12,379 | |
| | | | | | | | | | | |
Nemacolin, Pennsylvania | | — | | — | | — | | — | | — | |
Total Operating Properties | | 27,383 | | 16,229 | | 76 | | 2,654 | | 46,342 | |
Corporate and Other | | (11,228 | ) | 621 | | 1,501 | | 1,478 | | (7,628 | ) |
Total | | $ | 16,155 | | $ | 16,850 | | $ | 1,577 | | $ | 4,132 | | $ | 38,714 | |
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Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
| | Six Months Ended October 27, 2013 | |
| | Operating
Income (Loss) | | Depreciation and
Amortization | | Stock-Based
Compensation | | Preopening
and Other | | Adjusted
EBITDA | |
Black Hawk, Colorado | | $ | 10,616 | | $ | 4,675 | | $ | 19 | | $ | — | | $ | 15,310 | |
| | | | | | | | | | | |
Pompano, Florida | | 7,894 | | 3,634 | | 13 | | — | | 11,541 | |
| | | | | | | | | | | |
Bettendorf, Iowa | | 6,489 | | 3,378 | | 7 | | — | | 9,874 | |
Davenport, Iowa | | 2,517 | | 1,173 | | 9 | | — | | 3,699 | |
Marquette, Iowa | | 2,462 | | 965 | | 4 | | — | | 3,431 | |
Waterloo, Iowa | | 9,858 | | 2,422 | | 10 | | — | | 12,290 | |
Iowa Total | | 21,326 | | 7,938 | | 30 | | — | | 29,294 | |
| | | | | | | | | | | |
Lake Charles, Louisiana | | 4,194 | | 5,880 | | 9 | | — | | 10,083 | |
| | | | | | | | | | | |
Lula, Mississippi | | 176 | | 2,648 | | 8 | | — | | 2,832 | |
Natchez, Mississippi | | (1,335 | ) | 693 | | 9 | | — | | (633 | ) |
Vicksburg, Mississippi | | 270 | | 1,896 | | 9 | | — | | 2,175 | |
Mississippi Total | | (889 | ) | 5,237 | | 26 | | — | | 4,374 | |
| | | | | | | | | | | |
Boonville, Missouri | | 10,987 | | 2,063 | | 12 | | — | | 13,062 | |
Cape Girardeau, Missouri | | (1,910 | ) | 5,575 | | 4 | | — | | 3,669 | |
Caruthersville, Missouri | | 782 | | 1,547 | | 10 | | — | | 2,339 | |
Kansas City, Missouri | | 5,400 | | 1,937 | | 8 | | — | | 7,345 | |
Missouri Total | | 15,259 | | 11,122 | | 34 | | — | | 26,415 | |
| | | | | | | | | | | |
Nemacolin, Pennsylvania | | (8,024 | ) | 2,227 | | 1 | | 3,898 | | (1,898 | ) |
Total Operating Properties | | 50,376 | | 40,713 | | 132 | | 3,898 | | 95,119 | |
Corporate and Other | | (7,151 | ) | 784 | | 2,505 | | (8,370 | ) | (12,232 | ) |
Total | | $ | 43,225 | | $ | 41,497 | | $ | 2,637 | | $ | (4,472 | ) | $ | 82,887 | |
| | Six Months Ended October 28, 2012 | |
| | Operating
Income (Loss) | | Depreciation and
Amortization | | Stock-Based
Compensation | | Preopening
and Other | | Adjusted
EBITDA | |
Black Hawk, Colorado | | $ | 10,843 | | $ | 4,358 | | $ | 24 | | $ | — | | $ | 15,225 | |
| | | | | | | | | | | |
Pompano, Florida | | 5,820 | | 3,577 | | 14 | | — | | 9,411 | |
| | | | | | | | | | | |
Bettendorf, Iowa | | 7,108 | | 3,483 | | 9 | | — | | 10,600 | |
Davenport, Iowa | | 3,167 | | 1,074 | | 11 | | — | | 4,252 | |
Marquette, Iowa | | 2,431 | | 876 | | 10 | | — | | 3,317 | |
Waterloo, Iowa | | 10,132 | | 2,657 | | 11 | | — | | 12,800 | |
Iowa Total | | 22,838 | | 8,090 | | 41 | | — | | 30,969 | |
| | | | | | | | | | | |
Lake Charles, Louisiana | | 5,230 | | 4,422 | | 6 | | — | | 9,658 | |
| | | | | | | | | | | |
Lula, Mississippi | | 304 | | 3,425 | | 11 | | — | | 3,740 | |
Natchez, Mississippi | | 961 | | 827 | | 10 | | — | | 1,798 | |
Vicksburg, Mississippi | | (265 | ) | 2,262 | | 9 | | — | | 2,006 | |
Mississippi Total | | 1,000 | | 6,514 | | 30 | | — | | 7,544 | |
| | | | | | | | | | | |
Boonville, Missouri | | 12,412 | | 1,753 | | 11 | | — | | 14,176 | |
Cape Girardeau, Missouri | | (3,341 | ) | — | | — | | 3,341 | | — | |
Caruthersville, Missouri | | 1,416 | | 1,691 | | 10 | | — | | 3,117 | |
Kansas City, Missouri | | 6,267 | | 2,019 | | 6 | | — | | 8,292 | |
Missouri Total | | 16,754 | | 5,463 | | 27 | | 3,341 | | 25,585 | |
| | | | | | | | | | | |
Nemacolin, Pennsylvania | | — | | — | | — | | — | | — | |
Total Operating Properties | | 62,485 | | 32,424 | | 142 | | 3,341 | | 98,392 | |
Corporate and Other | | (20,146 | ) | 1,248 | | 2,753 | | 1,478 | | (14,667 | ) |
Total | | $ | 42,339 | | $ | 33,672 | | $ | 2,895 | | $ | 4,819 | | $ | 83,725 | |
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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 27, | | October 28, | | October 27, | | October 28, | |
| | 2013 | | 2012 | | 2013 | | 2012 | |
Income (loss) from continuing operations | | $ | 8,037 | | $ | (4,341 | ) | $ | 3,175 | | $ | 403 | |
Income tax provision (benefit) | | 1,359 | | (1,182 | ) | 2,770 | | 136 | |
Derivative income | | (168 | ) | (176 | ) | (398 | ) | (310 | ) |
Interest income | | (84 | ) | (131 | ) | (174 | ) | (306 | ) |
Interest expense | | 15,194 | | 21,985 | | 37,852 | | 42,416 | |
Depreciation and amortization | | 21,102 | | 16,850 | | 41,497 | | 33,672 | |
Stock-based compensation | | 1,503 | | 1,577 | | 2,637 | | 2,895 | |
Litigation accrual reversal | | (7,351 | ) | — | | (7,351 | ) | — | |
Preopening expense | | — | | 2,654 | | 3,898 | | 3,341 | |
Gain on sale of airplane | | — | | — | | (1,019 | ) | — | |
Financing related | | — | | 1,478 | | — | | 1,478 | |
Adjusted EBITDA | | $ | 39,592 | | $ | 38,714 | | $ | 82,887 | | $ | 83,725 | |
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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.
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