Isle of Capri Casinos, Inc. Announces Fiscal 2012 Fourth Quarter And Year Results
SAINT LOUIS, June 7, 2012 /PRNewswire/ — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the fourth fiscal quarter and fiscal year ended April 29, 2012, and other Company-related news.
Consolidated Results
The following table outlines the Company’s financial results (dollars in millions, except per shares data, unaudited):
Three Months Ended Twelve Months Ended
------------------ -------------------
April 29, April 24, April 29, April 24,
2012 2011 2012 2011
---- ---- ---- ----
Net revenues $291.0 $256.6 $977.4 $936.7
Net revenues,
excluding
insurance
recoveries 282.4 256.6 967.7 936.7
Consolidated
adjusted EBITDA
(1) 69.3 63.5 200.6 190.0
Income (loss) from
continuing
operations (13.5) 8.4 (17.4) 3.7
Income (loss) from
discontinued
operations (111.3) 2.5 (112.4) 0.8
Net income (loss) (124.8) 10.9 (129.8) 4.5
Diluted income
(loss) per share
from continuing
operations (0.35) 0.22 (0.45) 0.11
Diluted income
(loss) per share
from discontinued
operations (2.85) 0.06 (2.90) 0.02
Diluted income
(loss) per share (3.20) 0.28 (3.35) 0.13
Adjusted income
(loss) per share
(2) 0.38 0.27 0.43 0.17
(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.
(2) For a reconciliation from the GAAP basis per share amounts to adjusted income (loss) per share, refer to the reconciliation table labeled "Reconciliation of GAAP
Net Income (Loss) to Adjusted Income (Loss) and GAAP Net Income (Loss) Per Share to Adjusted Income (Loss) Per Share."
Commenting on the results, President and Chief Executive Officer Virginia McDowell said, “Overall, we had a solid quarter marked by incremental revenue growth resulting from our refined business model, more favorable weather conditions than last year and an increasingly renewed asset base. Even after adjusting for the fact that fiscal 2012 had an additional week when compared to fiscal 2011, we grew revenues and adjusted EBITDA. In fiscal 2012 we continued to improve our balance sheet even while investing to improve our existing properties and building Cape Girardeau.”
“We are pleased to announce that we expect to open Cape Girardeau by November 1 of this year, two full months ahead of our initial schedule, and will complete the rebranding of Vicksburg within the next several months. Further, as we continue to renew our asset base and provide guests with more options and more experiences, we have an aggressive schedule of targeted capital improvements planned for our properties during the coming months, including renovated hotel rooms, new buffets and a full rollout of our enhanced customer loyalty program.”
“The quarter and year also contained a significant number of unusual items including items related to assets sales, impairment charges and insurance recoveries from flooding which are detailed below.”
Operating Results
During the quarter, we generally benefited from improved operations, cost reductions, marketing investments and seasonally mild weather, in addition to the favorable calendar, except as otherwise noted. The following is a discussion of the operating results at our properties during the quarter by state.
Colorado – Net revenues increased 14.4% to $34.1 million and adjusted EBITDA increased 54.6% to $9.5 million. Operating margins increased 720 basis points to 27.8%. Our properties in Black Hawk benefited from favorable weather conditions, completed facility enhancements, including renovations to the poker room and casino floor, and a reduced gaming tax rate compared to the fourth quarter of fiscal 2011.
Florida – Net revenues increased to $48.5 million from $41.6 million and adjusted EBITDA increased $1.5 million to $10.8 million. Our property in Pompano continued to exhibit revenue growth resulting from changes to our game mix, enhanced food and beverage amenities and the rollout of our enhanced customer loyalty program during the prior quarter, while competing with a major new expansion at our nearest competitor.
Iowa – Our property in Waterloo showed strong growth in adjusted EBITDA margins during the quarter, growing 260 basis points to 35.6%, as a result of operating improvements and reduced costs. In the Quad Cities net revenues increased a combined $2.6 million and adjusted EBITDA increased $0.5 million.
Louisiana – Net revenues increased 11.6% to $38.7 million and adjusted EBITDA increased 6.0% to $7.2 million. Adjusted EBITDA margins decreased 90 basis points to 18.6%, primarily a result of severance and marketing costs resulting from the consolidation of our riverboat operations into a single facility. We are benefitting from a lower cost structure in Lake Charles as a result of consolidation following the sale of our smaller riverboat in February 2012.
Mississippi – Net revenues increased 2.1% to $37.7 million and adjusted EBITDA decreased 3.7% to $12.1 million. Adjusted EBITDA margins decreased 190 basis points to 32.1%. Our properties in Mississippi continue to face difficulties stemming from a lagging economy in the area. In particular, our property in Lula is facing increased competitive pressure from competing facilities in Arkansas. However, in Vicksburg we benefited from operating improvements compared to the prior year quarter as adjusted EBITDA margins improved from 34% to 39%, partially offset by construction disruption associated with the ongoing rebranding of the facility.
Missouri - Net revenues increased $0.8 million at our Kansas City property, however adjusted EBITDA decreased $0.6 million to $5.7 million, primarily as a result of competitive market pressures following the opening of a new facility in the area during the quarter. Our property in Boonville increased adjusted EBITDA margins 120 basis points as a result of operating efficiencies and the introduction of the Farmers’ Pick Buffet in the beginning of this fiscal quarter.
The following items impacted the Company’s net income during the quarter and year ended April 29 2012;
- Following the announcement of the pending sale of our Biloxi property, we recorded a charge of $112.6 million to write-down the value of the property to the sale price of $45 million. The impairment charge and operating results of the property for all presented periods have been reflected in discontinued operations in the attached schedules.
- We recorded a charge of $16.1 million related to the sale of our smaller riverboat and associated gaming license in Lake Charles, Louisiana, completed on February 9, 2012. All operations have been successfully consolidated onto the larger riverboat facility.
- We recorded an impairment charge of $14.4 million against the goodwill at our Lula property during the fourth quarter of fiscal 2012.
- Net revenues and operating income for the fourth quarter include $8.6 million of insurance recoveries received as a result of business interruption claims related to flooding along the Mississippi River during fiscal 2012.
- We recorded a valuation allowance against our deferred tax assets related to our continuing operations of $8.7 million in accordance with the provisions of applicable accounting standards.
- We accrued approximately $2.0 million, including interest, in connection with a judgment issued in a legal case in connection with the Company’s previously owned property in Vicksburg, Mississippi, which was sold in July 2006. We are appealing the judgment and plan to vigorously defend our position.
Corporate Expenses
Corporate and development expenses were $10.8 million for the quarter, an increase of $0.3 million compared to prior year. The increase is primarily due to the accrual of the judgment mentioned above and increased insurance costs in the current year offset by debt refinancing costs of $3.0 million in the prior year.
Non-cash stock compensation expense was $1.3 million for the quarter compared to $1.4 million in the fourth quarter of fiscal 2011. For the fiscal year, non-cash stock compensation expense was $7.3 million, compared to $6.9 million in fiscal 2011.
Experience Enhancements
We continue to make targeted cost-efficient improvements at our properties in order to reposition our product offerings to exceed customer expectations. We are focused on improving the guest experience by refreshing and right sizing many of our casino floors and, in particular, are improving and expanding our array of non-gaming amenities.
Rebranding – At Rainbow Casino in Vicksburg, we expect to complete the $5 million Lady Luck Casino rebranding by the end of the second quarter of fiscal 2013. The rebranding will introduce upgraded amenities from our portfolio of brands including an Otis and Henry’s restaurant, and a Lone Wolf bar.
Hotel Renovations – We are currently renovating the 253 hotel rooms in the main hotel tower in Lake Charles and 237 rooms in the Isle Black Hawk Hotel. We expect the $15 million complete refurbishment of the Lake Charles rooms to be completed by November 1, 2012. In Black Hawk we are replacing carpet, wall coverings, and furniture at an expected cost of approximately $2.0 million, and expect to be completed by December 1, 2012.
Food and Beverage Offerings – Our first Farmer’s Pick Buffet in Boonville has received outstanding customer feedback, and we intend to open additional Farmer’s Pick Buffets in fiscal 2013 including at Cape Girardeau, Pompano, Black Hawk and Waterloo. Additionally, we plan to add a Lone Wolf bar in our Waterloo facility.
Customer Loyalty Program – Our enhanced customer loyalty program, the Fan Club, was introduced at its third and fourth locations, Kansas City and Lake Charles, during the quarter. It has proven successful in expanding customer options and should result in more efficient marketing moving forward. We expect to introduce the program to five additional properties during the first and second quarters of fiscal 2013, and intend to have it fully implemented across the portfolio by the end of fiscal 2013.
Development
Cape Girardeau, Missouri – Construction of our Cape Girardeau, Missouri project continues to progress ahead of schedule and we are happy to report that we now expect to complete construction on and open our facility in Cape Girardeau by November 1, 2012, an additional month ahead of the previously announced expedited schedule and two months ahead of our original construction schedule. However, the expected cost of the project has been revised to $135 million from the previously estimated $125 million.
Nemacolin Woodlands Resort, Pennsylvania – The appeal hearing for the gaming license awarded to Nemacolin Woodlands Resort for the final resort license in Pennsylvania was held on March 7, 2012. No date has been determined for an expected ruling on the appeal or the ultimate resolution of the matter. We expect to begin construction on the property following a successful conclusion to the appeal process and receiving any other necessary approvals, and to open the property approximately nine months after the commencement of construction.
Capital Structure and FY 2013 Guidance
As of April 29, 2012, the Company had:
- $94.5 million in cash and cash equivalents, excluding $12.6 million in restricted cash;
- $1.2 billion in total debt; and
- $258 million in net line of credit availability.
Fiscal Year 2012 capital expenditures were $75.2 million, of which $34.9 million related to Cape Girardeau, $0.7 million related to Nemacolin and $39.6 million related to maintenance capital and projects at our existing properties.
At the end of the fiscal year our net leverage, as calculated under our senior credit facility was approximately 5.7x compared to 6.2x at the end of fiscal 2011.
The Company provided guidance for the following specific non-operating items for fiscal year 2013:
- Depreciation and amortization expense is expected to be approximately $76 million to $78 million.
- The Company expects cash income taxes pertaining to FY 2013 operations to be less than $5 million, primarily representing state income taxes.
- Interest expense is expected to be approximately $83 million to $85 million, net of capitalized interest.
- Corporate and development expenses for FY 2013 are expected to be approximately $40 million, including approximately $6 million in non-cash stock compensation expense.
- Capital expenditures for FY 2013 are expected to be approximately $140 million to $150 million, including approximately $85 million remaining to be spent in Cape Girardeau. The balance of the spending will complete the Lake Charles and Black Hawk hotel renovations, the Vicksburg rebranding, Farmer’s Pick conversions and recurring maintenance capital. We have not forecasted any material capital spending related to Nemacolin due to the uncertainty of the timing of the appeal process or ultimate resolution.
- We expect to incur approximately $5.5 million of pre-opening expenses related to Cape Girardeau.
- Fiscal 2013 will be a 52 week year whereas fiscal 2012 was a 53 week year
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Thursday, June 7, 2012 at 9:00 am Central Time during which management will discuss the financial and other matters addressed in this press release. The conference call can be accessed by interested parties via webcast through the investor relations page of the Company’s website, www.islecorp.com, or, for domestic callers, by dialing 877-917-8929. International callers can access the conference call by dialing 517-308-9020. The conference call reference number is 9992348. The conference call will be recorded and available for review starting at midnight central on Thursday, June 7, 2012, until midnight central on Thursday, June 14, 2012, by dialing 888-568-0918; International: 203-369-3790 and access number 5218.
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. The Company is also currently developing a new facility in Cape Girardeau, Missouri and has been licensed to develop a new facility with 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.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 29, April 24, April 29, April 24,
2012 2011 2012 2011
---- ---- ---- ----
Revenues:
Casino $294,940 $264,885 $1,006,523 $968,423
Rooms 8,631 8,203 32,438 32,144
Food, beverage, pari-mutuel and other 37,275 32,340 128,560 121,955
Insurance recoveries 8,654 - 9,637 -
Gross revenues 349,500 305,428 1,177,158 1,122,522
Less promotional allowances (58,480) (48,794) (199,787) (185,861)
------- ------- -------- --------
Net revenues 291,020 256,634 977,371 936,661
Operating expenses:
Casino 41,900 36,678 153,743 142,642
Gaming taxes 73,225 65,293 251,780 242,949
Rooms 1,762 1,654 7,027 7,290
Food, beverage, pari-mutuel and other 12,185 11,098 41,281 40,559
Marine and facilities 14,421 14,672 57,225 55,211
Marketing and administrative 61,635 57,714 234,470 225,757
Corporate and development 10,831 10,529 40,248 42,709
Valuation charges 30,549 - 30,549 -
Preopening 484 - 615 -
Depreciation and amortization 17,924 19,664 76,050 77,613
Total operating expenses 264,916 217,302 892,988 834,730
------- ------- ------- -------
Operating income 26,104 39,332 84,383 101,931
Interest expense (22,466) (23,224) (87,905) (91,935)
Interest income 199 541 819 1,903
Derivative income (expense) 187 42 439 (1,214)
--- --- --- ------
Income (loss) from continuing operations before
income taxes 4,024 16,691 (2,264) 10,685
Income tax provision (17,502) (8,335) (15,119) (6,950)
------- ------ ------- ------
Income (loss) from continuing operations (13,478) 8,356 (17,383) 3,735
Income (loss) from discontinued operations,
net of income taxes (111,313) 2,515 (112,370) 805
-------- ----- -------- ---
Net income (loss) $(124,791) $10,871 $(129,753) $4,540
========= ======= ========= ======
Income (loss) per common share-basic:
Income (loss) from continuing operations $(0.35) $0.22 $(0.45) $0.11
Income (loss) from discontinued operations,
net of income taxes (2.85) 0.07 (2.90) 0.02
----- ---- ----- ----
Net income (loss) $(3.20) $0.29 $(3.35) $0.13
====== ===== ====== =====
Income (loss) per common share-dilutive:
Income (loss) from continuing operations $(0.35) $0.22 $(0.45) $0.11
Income (loss) from discontinued operations,
net of income taxes (2.85) 0.06 (2.90) 0.02
----- ---- ----- ----
Net income (loss) $(3.20) $0.28 $(3.35) $0.13
====== ===== ====== =====
Weighted average basic shares 38,982,281 38,103,040 38,753,098 34,066,159
Weighted average diluted shares 38,982,281 38,252,693 38,753,098 34,174,717
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
April 29, April 24,
2012 2011
---- ----
ASSETS (unaudited)
------
Current assets:
Cash and cash equivalents $94,461 $75,178
Marketable securities 24,943 22,173
Accounts receivable, net 6,941 9,367
Insurance receivable 7,497 234
Income taxes receivable 2,161 3,866
Deferred income taxes 627 12,097
Prepaid expenses and other
assets 18,950 25,444
Assets held for sale 46,703 -
Total current assets 202,283 148,359
Property and equipment, net 950,014 1,113,549
Other assets:
Goodwill 330,903 345,303
Other intangible assets, net 56,586 82,207
Deferred financing costs, net 13,205 18,911
Restricted cash 12,551 12,810
Prepaid deposits and other 9,428 12,749
Total assets $1,574,970 $1,733,888
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
-----------------------------
Current liabilities:
Current maturities of long-
term debt $5,393 $5,373
Accounts payable 23,536 26,013
Accrued liabilities:
Payroll and related 38,566 44,187
Property and other taxes 19,522 19,891
Interest 9,296 10,802
Progressive jackpots and slot
club awards 14,892 15,280
Liabilities related to assets
held for sale 4,362 -
Other 40,549 32,332
Total current liabilities 156,116 153,878
Long-term debt, less current
maturities 1,149,038 1,187,221
Deferred income taxes 36,057 30,762
Other accrued liabilities 33,583 36,305
Other long-term liabilities 16,556 16,694
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 April 29, 2012
and 42,063,569 at April 24,
2011 421 421
Class B common stock, $.01
par value; 3,000,000 shares
authorized; none issued - -
Additional paid-in capital 247,855 254,013
Retained earnings (deficit) (26,658) 103,095
Accumulated other
comprehensive (loss) income (855) (2,235)
---- ------
220,763 355,294
Treasury stock, 3,083,867
shares at April 29, 2012 and
3,841,283 April 24, 2011 (37,143) (46,266)
Total stockholders' equity 183,620 309,028
Total liabilities and
stockholders' equity $1,574,970 $1,733,888
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 29, April 24, April 29, April 24,
2012 2011 2012 2011
---- ---- ---- ----
Properties Not Impacted by
Flooding
Lake Charles, Louisiana $38,714 $34,692 $138,634 $131,214
Kansas City, Missouri 22,554 21,756 80,703 77,710
Boonville, Missouri 23,315 20,497 81,796 78,776
Bettendorf, Iowa 21,715 20,994 79,156 79,003
Marquette, Iowa 7,357 6,851 28,036 27,397
Waterloo, Iowa 24,721 22,936 86,484 83,197
Black Hawk, Colorado 34,073 29,789 124,051 115,482
Pompano, Florida 48,538 41,572 154,740 138,704
220,987 199,087 773,600 731,483
------- ------- ------- -------
Properties Impacted by
Flooding
Natchez, Mississippi 9,009 8,506 26,739 30,787
Lula, Mississippi 18,300 19,084 56,070 67,340
Vicksburg, Mississippi(2) 10,437 9,365 31,937 27,935
Caruthersville, Missouri 10,539 9,447 33,890 33,696
Davenport, Iowa 12,769 10,919 44,055 43,651
61,054 57,321 192,691 203,409
------ ------ ------- -------
Property Net Revenues
before Other 282,041 256,408 966,291 934,892
Insurance Recoveries(3)
Natchez 1,485 - 1,904 -
Lula 5,455 - 5,455 -
Vicksburg 703 - 758 -
Caruthersville 751 - 1,149 -
Davenport 260 - 371 -
Other 325 226 1,443 1,769
--- --- ----- -----
Net Revenues from
Continuing Operations $291,020 $256,634 $977,371 $936,661
======== ======== ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended April 29, 2012
---------------------------------
Operating Income (Loss) Depreciation and Amortization Valuation Stock-Based Compensation Insurance Recoveries Adjusted EBITDA
and Other
Charges (4)
----------
Properties Not Impacted by Flooding
Lake Charles, Louisiana $(11,193) $2,236 $16,149 $3 $ - $7,195
Kansas City, Missouri 4,741 980 - 1 - 5,722
Boonville, Missouri 7,867 849 - 5 - 8,721
Bettendorf, Iowa 4,423 1,994 - 5 - 6,422
Marquette, Iowa 1,214 469 - 5 - 1,688
Waterloo, Iowa 7,133 1,651 - 5 - 8,789
Black Hawk, Colorado 7,457 1,992 - 10 - 9,459
Pompano, Florida 8,338 2,457 - 6 - 10,801
29,980 12,628 16,149 40 - 58,797
------ ------ ------ --- --- ------
Properties Impacted by Flooding
Natchez, Mississippi 3,858 418 - 5 (1,485) 2,796
Lula, Mississippi (5,303) 1,585 14,400 5 (5,455) 5,232
Vicksburg, Mississippi (2) 3,528 1,259 - 3 (703) 4,087
Caruthersville, Missouri 2,528 893 - 5 (751) 2,675
Davenport, Iowa 3,110 533 - 5 (260) 3,388
7,721 4,688 14,400 23 (8,654) 18,178
----- ----- ------ --- ------ ------
Total Operating Properties 37,701 17,316 30,549 63 (8,654) 76,975
Corporate and Other (11,597) 608 1,979 1,326 - (7,684)
Total $26,104 $17,924 $32,528 $1,389 $(8,654) $69,291
======= ======= ======= ====== ======= =======
Three Months Ended April 24, 2011
---------------------------------
Operating Income (Loss) Depreciation and Amortization Valuation and Other Charges (4) Stock-Based Compensation Insurance Recoveries Adjusted EBITDA
---------------------- ----------------------------- ------------------------------ ------------------------ -------------------- ---------------
Properties Not Impacted by Flooding
Lake Charles, Louisiana $4,485 $2,285 $ - $19 $ - $6,789
Kansas City, Missouri 5,355 939 - 6 - 6,300
Boonville, Missouri 6,344 1,073 - 21 - 7,438
Bettendorf, Iowa 4,463 1,989 - 5 - 6,457
Marquette, Iowa 1,044 427 - 7 - 1,478
Waterloo, Iowa 5,955 1,586 - 16 - 7,557
Black Hawk, Colorado 3,187 2,919 - 12 - 6,118
Pompano, Florida 6,394 2,918 - 5 - 9,317
37,227 14,136 - 91 - 51,454
------ ------ --- --- --- ------
Properties Impacted by Flooding
Natchez, Mississippi 2,464 399 - 8 - 2,871
Lula, Mississippi 4,667 1,806 - 20 - 6,493
Vicksburg, Mississippi (2) 1,835 1,379 - - - 3,214
Caruthersville, Missouri 1,785 767 - 8 - 2,560
Davenport, Iowa 2,257 577 - 8 - 2,842
13,008 4,928 - 44 - 17,980
------ ----- --- --- --- ------
Total Operating Properties 50,235 19,064 - 135 - 69,434
Corporate and Other (10,903) 600 2,988 1,399 - (5,916)
Total $39,332 $19,664 $2,988 $1,534 $ - $63,518
======= ======= ====== ====== ============== =======
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Twelve Months Ended April 29, 2012
----------------------------------
Operating Income (Loss) Depreciation and Amortization Valuation and Other Charges (4) Stock-Based Compensation Adjusted EBITDA
---------------------- ----------------------------- ------------------------------ ------------------------ ---------------
Properties Not Impacted by Flooding
Lake Charles, Louisiana $(4,478) $9,291 $16,149 $38 $21,000
Kansas City, Missouri 13,902 3,997 - 11 17,910
Boonville, Missouri 26,018 3,481 - 45 29,544
Bettendorf, Iowa 12,793 8,122 - 21 20,936
Marquette, Iowa 4,169 1,791 - 25 5,985
Waterloo, Iowa 20,399 6,573 - 37 27,009
Black Hawk, Colorado 17,468 10,953 - 40 28,461
Pompano, Florida 17,393 10,539 - 24 27,956
107,664 54,747 16,149 241 178,801
------- ------ ------ --- -------
Properties Impacted by Flooding
Natchez, Mississippi 6,478 1,536 - 25 8,039
Lula, Mississippi (4,729) 6,590 14,400 45 16,306
Vicksburg, Mississippi (2) 4,145 5,067 - 10 9,222
Caruthersville, Missouri 4,497 3,395 - 26 7,918
Davenport, Iowa 8,261 2,202 - 26 10,489
18,652 18,790 14,400 132 51,974
------ ------ ------ --- ------
Total Operating Properties 126,316 73,537 30,549 373 230,775
Corporate and Other (41,933) 2,513 1,979 7,269 (30,172)
Total $84,383 $76,050 $32,528 $7,642 $200,603
======= ======= ======= ====== ========
Twelve Months Ended April 24, 2011
----------------------------------
Operating Income (Loss) Depreciation and Amortization Valuation and Other Charges (4) Stock-Based Compensation Adjusted EBITDA
---------------------- ----------------------------- ------------------------------ ------------------------ ---------------
Properties Not Impacted by Flooding
Lake Charles, Louisiana $13,638 $9,335 $ - $82 $23,055
Kansas City, Missouri 14,619 3,614 - 29 18,262
Boonville, Missouri 22,670 4,318 - 86 27,074
Bettendorf, Iowa 13,386 7,982 - 25 21,393
Marquette, Iowa 3,780 1,645 - 30 5,455
Waterloo, Iowa 17,953 6,870 - 69 24,892
Black Hawk, Colorado 10,993 12,442 - 55 23,490
Pompano, Florida 12,030 9,996 - 24 22,050
109,069 56,202 - 400 165,671
------- ------ --- --- -------
Properties Impacted by Flooding
Natchez, Mississippi 7,591 1,468 - 32 9,091
Lula, Mississippi 12,471 7,283 - 81 19,835
Vicksburg, Mississippi (2) 4,188 4,552 - - 8,740
Caruthersville, Missouri 3,909 3,303 - 32 7,244
Davenport, Iowa 8,171 2,278 - 33 10,482
36,330 18,884 - 178 55,392
------ ------ --- --- ------
Total Operating Properties 145,399 75,086 - 578 221,063
Corporate and Other (43,468) 2,527 2,988 6,864 (31,089)
Total $101,931 $77,613 $2,988 $7,442 $189,974
======== ======= ====== ====== ========
Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 29, April 24, April 29, April 24,
2012 2011 2012 2011
---- ---- ---- ----
Income (loss) from
continuing operations $(13,478) $8,356 $(17,383) $3,735
Income tax provision 17,502 8,335 15,119 6,950
Derivative (income) expense (187) (42) (439) 1,214
Interest income (199) (541) (819) (1,903)
Interest expense 22,466 23,224 87,905 91,935
Depreciation and amortization 17,924 19,664 76,050 77,613
Stock-based compensation 1,389 1,534 7,642 7,442
Valuation charges and other (4) 32,528 2,988 32,528 2,988
Insurance recoveries (3) (8,654) - - -
Adjusted EBITDA $69,291 $63,518 $200,603 $189,974
======= ======= ======== ========
Isle of Capri Casinos, Inc.
Reconciliations of GAAP Net Income (Loss) to Adjusted Net Income (Loss) and GAAP Net Income (Loss) Per Share to Adjusted Net Income (Loss) Per Share
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 29, April 24, April 29, April 24,
2012 2011 2012 2011
---- ---- ---- ----
GAAP net income (loss) $(124,791) $10,871 $(129,753) $4,540
Insurance recoveries (3) (8,654) - - -
Valuation charges and other (4) 32,528 2,988 32,528 2,988
Adjustment for taxes on above items (3,790) (1,195) (7,251) (1,195)
Tax valuation allowance 8,742 - 8,742 -
Discontinued operations 111,313 (2,515) 112,370 (805)
Adjusted net income $15,348 $10,149 $16,636 $5,528
======= ======= ======= ======
GAAP net income (loss) $(3.20) $0.28 $(3.35) $0.13
Insurance recoveries (3) (0.22) - - -
Valuation charges and other (4) 0.83 0.08 0.84 0.09
Adjustment for taxes on above items (0.10) (0.03) (0.19) (0.03)
Tax valuation allowance 0.22 - 0.23 -
Discontinued operations 2.85 (0.06) 2.90 (0.02)
Adjusted net income per share $0.38 $0.27 $0.43 $0.17
===== ===== ===== =====
1. Adjusted EBITDA is "earnings before
interest and other non-operating
income (expense), income taxes,
stock-based compensation, valuation
charges and other unusual items (see
Note 4 below) 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 operating income is included in
the financial schedules accompanying
this release.
Adjusted EBITDA margin is calculated
by dividing Adjusted EBITDA by net
revenues before insurance
recoveries.
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. 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. We have received insurance recoveries
related to our flood claims
associated with the flooding along
the Mississippi River in the first
quarter of fiscal 2012.
4. Valuation charges and other in the
fourth quarter and fiscal 2012
consists of a goodwill impairment
charge at our Lula, Mississippi
property of $14.4 million, a charge
of $16.1 million at our Lake Charles
property related to the sale of our
smaller riverboat and associated
gaming license, and a charge of $2.0
million at Corporate in connection
with a legal judgment. Valuation
charges and other in the fourth
quarter and fiscal 2011 consist of
debt refinancing costs of $3.0
million.
SOURCE Isle of Capri Casinos, Inc.
