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Isle of Capri Casinos, Inc. Announces Fiscal 2013 Fourth Quarter And Year Results



  Isle of Capri Casinos, Inc. Announces Fiscal 2013 Fourth Quarter And Year
                                   Results

PR Newswire

ST. LOUIS, June 6, 2013

ST. LOUIS, June 6, 2013 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ:
ISLE) ("Isle") today reported financial results for the fourth fiscal quarter
and fiscal year ended April 28, 2013.

2013 Fourth Quarter Financial Highlights

  o Net revenues, excluding insurance recoveries in the fourth quarter of
    fiscal 2012, declined from $282.4 million to $268.1 million, and
    Consolidated Adjusted EBITDA decreased from $69.8 million to $59.1
    million.
  o Adjusted income per share, which normalizes for the effect of
    non-recurring and unusual items, was $0.24 compared to $0.39 in the prior
    year period.
  o The extra week in fiscal 2012 is estimated to have an approximately $18
    million impact on net revenues and an approximately $5 million impact on
    Consolidated Adjusted EBITDA, or approximately $0.13 in adjusted income
    per share.

Discussing the results, president and chief executive officer Virginia
McDowell said, "Consistent with other regional gaming companies, the quarter
presented a difficult operating environment in our markets, as the combination
of continuing economic challenges, changes in payroll tax rates and the delay
in income tax refunds led to softer business levels at our casinos.  In
addition, when compared to the extremely mild winter in fiscal 2012, there was
significant impact from weather-related disruptions in the fiscal 2013
quarter.  Finally, the fourth quarter of fiscal 2012 contained an extra 14^th
week compared to 13 weeks in this year's quarter.  Adjusting for the extra
week in fiscal 2012 and last year's insurance recoveries, we believe our
results were in-line with other regional casino operators."

Summary of Consolidated Operating Results

The following table outlines the Company's financial results (dollars in
millions, except per share data, unaudited): 

                                Three Months Ended      Twelve Months Ended
                                April 28,   April 29,   April 28,   April 29,
                                2013        2012        2013        2012
Net revenues                    $    268.1  $    291.0  $    965.2  $    977.4
Net revenues, excluding         268.1       282.4       965.2       967.7
insurance recoveries
Consolidated Adjusted EBITDA    59.1        69.8        184.8       201.2
(1)
Income (loss) from continuing   (45.4)      (13.5)      (46.0)      (17.4)
operations
Income (loss) from discontinued -           (111.3)     (1.6)       (112.4)
operations
Net income (loss)               (45.4)      (124.8)     (47.6)      (129.8)
Diluted income (loss) per share (1.15)      (0.35)      (1.17)      (0.45)
from continuing operations
Diluted income (loss) per share -           (2.85)      (0.04)      (2.90)
from discontinued operations
Diluted income (loss) per share (1.15)      (3.20)      (1.21)      (3.35)
Adjusted income (loss) per      0.24        0.39        0.39        0.45
share (2)

(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 of 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."

In addition to the extra week in fiscal 2012, the following items impacted
income from continuing operations during the quarters and years ended April
28, 2013 and April 29, 2012:

  o Net revenues and operating income for the fourth quarter of fiscal year
    2012 included $8.6 million of insurance recoveries received as a result of
    business interruption claims related to flooding along the Mississippi
    River.
  o The Company recorded $50.1 million in impairment charges in fiscal 2013
    and $30.5 in fiscal 2012.
  o Pre-opening expenses were $1.0 million higher than in the fiscal 2012
    quarter due to the impending opening of the new Lady Luck Nemacolin
    Casino.
  o Depreciation and amortization increased from $17.9 million to $20.4
    million primarily as a result of the opening our Cape Girardeau, Missouri
    casino.
  o Interest expense in the fourth quarter of fiscal 2013 includes
    approximately $2.2 million in charges related to the Company's recently
    completed financing transactions.

McDowell continued, "Fiscal 2013 was marked by tremendous progress in our
efforts to renew our asset base, even in a challenging operating environment. 
We opened Cape Girardeau, rebranded Vicksburg as a new Lady Luck, completed
the sale of Biloxi, renovated our hotels in Lake Charles and Black Hawk and
introduced many new outlets of our popular food and beverage concepts,
including the Farmer's Pick Buffet and Otis & Henry's Bar & Grill.

"We are aggressively implementing cost efficiencies at our properties and
corporate office that we expect to save us approximately $2 million per year,
including the consolidation of our two Black Hawk properties under a single
management team, and efficiencies at our corporate office through
cost-reductions and attrition. In connection with these moves we incurred
approximately $0.9 million in severance expenses in the fourth quarter.

"The ramp of our Cape Girardeau property has been slower than expected. While
we were successful in building our database during the fourth quarter, our
promotional spending did not generate the desired results. Recently introduced
measures aimed at rationalizing our marketing programs and reducing operating
costs should have a positive impact on EBITDA moving forward.

"In addition, we are looking forward to the debut of our new, flagship Lady
Luck property at Nemacolin Woodlands Resort in western Pennsylvania.  Lady
Luck Nemacolin is scheduled to open to the public on July 1^st, pending final
regulatory approvals.  And we are looking forward to continuing to work
closely with our partner in Philadelphia as the Gaming Control Board outlines
next steps in the competitive licensing process for the remaining Category 2
gaming license in Pennsylvania."

Fourth Quarter Property Operating Results  

As previously stated the fourth quarter of fiscal 2012 contained 14 weeks
compared to 13 weeks in the fiscal 2013 quarter.  This fact would lead to an
approximately 7% reduction in net revenue and Adjusted EBITDA on a comparable
basis before any other factors are considered.

Black Hawk – Net revenues decreased $2.8 million to $31.2 million and Adjusted
EBITDA decreased $1.7 million to $7.8 million.  Results were negatively
impacted by weather, as the market experienced 17 days of snow compared to
only 6 days in the prior year and a year-over-year increase in the gaming tax
rate, which resulted in $0.3 million in additional gaming taxes.

Pompano – Net revenues decreased from $48.5 million to $46.4 million and
Adjusted EBITDA decreased $1.0 million to $9.8 million, attributable to
increased marketing and a heightened promotional environment during the
quarter.

Iowa – Net revenues decreased $4.8 million (7.2%) to $61.8 million and
Adjusted EBITDA decreased $2.5 million to $17.8 million.  In Davenport, we
were closed for eight days in April due to flooding.   We estimate that this
had approximately $0.5 million impact on Adjusted EBITDA.  In Waterloo, we are
currently renovating the casino bar and building a Farmers Pick Buffet. 
Severe winter weather impacted results during 5 of the 13 weeks of the
quarter.

Lake Charles – Net revenues decreased from $38.7 million to $32.9 million and
Adjusted EBITDA decreased $1.2 million to $6.0 million primarily as a result
of increased competitive pressures. 

Missouri – Combined net revenues in Boonville, Caruthersville and Kansas City
decreased $8.5 million to $47.9 million and Adjusted EBITDA decreased $2.6
million to $14.5 million. In Boonville results were hampered by significantly
worse weather year over year and construction late in the quarter when we
began renovations to our casino floor and Lone Wolf bar. In Caruthersville, we
have shifted our marketing dollars to new territories, leading to improved
revenue from west Tennessee; however the property was still impacted by the
opening of Cape Girardeau.  In Kansas City, we continue to face the ramp-up of
new competition which opened in the prior year quarter, and severe weather
impacted results.

Cape Girardeau generated net revenues of $16.7 million and Adjusted EBITDA
$1.6 million. We recently made significant changes to our management and
marketing strategy that, we believe, will benefit EBITDA moving forward as we
refine our operations in the developing market.

Mississippi – Net revenues decreased $6.7 million to $31.0 million and
Adjusted EBITDA decreased $4.4 million to $7.8 million.  The Mississippi
market continues to feel the impact of a sluggish economy.  All of our casinos
in Mississippi felt the impact of the delayed IRS refunds as the amount of
refund checks cashed fell by 22%.  In Vicksburg, increased market share at our
newly rebranded Lady Luck were not enough to offset an overall 7% decline in
market revenue. Vicksburg revenues decreased $1.1 million to $9.3 million and
Adjusted EBITDA decreased $1.3 million to $2.8 million. New competition in
Natchez led to a $2.7 million decrease in net revenue and a $2.3 million
decrease in Adjusted EBITDA, as we are aggressively positioning to maintain
market share.

Corporate Expenses

Corporate and development expenses were $7.2 million for the quarter, a
decrease of $3.6 million compared to prior year, primarily due to reduced
incentive compensation of $3.5 million, as we did not meet the threshold
annual performance level under our management incentive program, and reduced
insurance costs of approximately $0.7 million, offset by $0.9 million in
severance expenses. In addition, non-cash stock compensation expense was $0.9
million for the quarter compared to $1.3 million in the fourth quarter of
fiscal 2012.

For the fiscal year, non-cash stock compensation expense was $4.8 million,
compared to $7.3 million in fiscal 2012.

Development

Nemacolin Woodlands Resort, Pennsylvania –  Lady Luck Nemacolin is scheduled
to open to the public July 1, 2013, subject to final regulatory approval. 
Lady Luck Nemacolin is planned to include 600 slot machines, 28 table games
and two food and beverage outlets.  The Company expects the total project to
cost approximately $60 million, including $12.5 million in licensing fees.

Philadelphia, Pennsylvania – On February 1, 2013, we entered into an agreement
with Tower Entertainment, LLC, to operate the proposed $700 million casino
entertainment 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 3,000 electronic gaming machines and 150 table games,
as well as a rooftop village, concert hall, 8 restaurants, private swim club,
night club, retail shopping and meeting and event space.  The Pennsylvania
Gaming Control Board has held public input hearings for the competitors for
Pennsylvania's final remaining slot machine and table games licenses.  The
Pennsylvania Gaming Control Board has not announced a timeline for suitability
hearings or eventual licensure.

Capital Structure and FY 2014 Guidance

As of April 28, 2013, the Company had:

  o $68.5 million in cash and cash equivalents, excluding $11.4 million in
    restricted cash and investments;
  o $1.2 billion in total debt; and
  o $90 million in net line of credit availability.

Fiscal year 2013 capital expenditures were $153.2 million, of which $79.0
million related to our new casino in Cape Girardeau, $23.7 million related to
the development of Lady Luck Nemacolin, and $50.5 million related to
maintenance capital and projects at our existing properties.

The Company provided guidance for the following specific non-operating items
for fiscal year 2014:

  o Depreciation and amortization expense is expected to be approximately $91
    million to $93 million.
  o The Company expects cash income taxes pertaining to FY 2014 operations to
    be less than $2 million, primarily representing state income taxes.
  o Interest expense is expected to be approximately $88 million to $90
    million, net of capitalized interest.
  o Corporate and development expenses for FY 2014 are expected to be
    approximately $34 million, including approximately $5 million in non-cash
    stock compensation expense.
  o Capital expenditures for FY 2014 are expected to be approximately $80
    million to $83 million, including approximately $30 million for the
    completion of Lady Luck Nemacolin.
  o We expect to incur approximately $2.5 million of incremental pre-opening
    expenses related to Lady Luck Nemacolin.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on June 6, 2013 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 1955456. The
conference call will be recorded and available for review starting at midnight
central on June 6, 2013, until midnight central on June 13, 2013, by dialing
866-422-8156; International: 203-369-0832 and access number 4589.

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 gaming and
entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado
and Florida. The Company is also currently developing a new facility at
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         Twelve Months Ended
                        April 28,      April 29,   April 28,     April 29,
                        2013           2012        2013          2012
Revenues:
Casino                  $     282,684  $           $  1,016,005  $  1,006,523
                                       294,940
Rooms                   8,063          8,631       31,851        32,438
Food, beverage,         37,385         37,275      133,377       128,560
pari-mutuel and other
Insurance recoveries    -              8,654       -             9,637
 Gross revenues         328,132        349,500     1,181,233     1,177,158
  Less promotional      (60,058)       (58,480)    (216,034)     (199,787)
allowances
   Net revenues         268,074        291,020     965,199       977,371
Operating expenses:
 Casino                 41,715         41,900      156,179       153,743
 Gaming taxes           71,569         73,225      255,105       251,780
 Rooms                  1,727          1,762       6,686         7,027
 Food, beverage,        12,164         12,185      42,472        41,281
pari-mutuel and other
 Marine and facilities  14,854         14,421      56,421        57,225
 Marketing and          60,714         61,635      236,146       234,470
administrative
 Corporate and          7,197          10,831      33,953        40,248
development
 Valuation charges      50,100         30,549      50,100        30,549
 Preopening             1,446          484         5,765         615
 Depreciation and       20,357         17,924      73,419        76,050
amortization
  Total operating       281,843        264,916     916,246       892,988
expenses
Operating income        (13,769)       26,104      48,953        84,383
Interest expense        (25,036)       (22,466)    (89,461)      (87,905)
Interest income         96             199         502           819
Derivative income       216            187         748           439
(expense)
Income (loss) from
continuing operations
before 
                        (38,493)       4,024       (39,258)      (2,264)
  income taxes
 Income tax provision   (6,898)        (17,502)    (6,732)       (15,119)
Income (loss) from      (45,391)       (13,478)    (45,990)      (17,383)
continuing operations 
Income (loss)  from
discontinued
operations, 
                        -              (111,313)   (1,579)       (112,370)
  net of income taxes 
Net income (loss)       $              $           $             $  
                         (45,391)       (124,791)   (47,569)      (129,753)
Income (loss) per
common share-basic:
 Income (loss) from     $              $           $             $        
continuing operations    (1.15)         (0.35)      (1.17)        (0.45)
 Income (loss) from
discontinued
operations, 

   net of income        -              (2.85)      (0.04)        (2.90)
taxes 
Net income (loss)       $              $           $             $        
                         (1.15)         (3.20)      (1.21)        (3.35)
Income (loss) per
common share-dilutive:
 Income (loss) from     $              $           $             $        
continuing operations    (1.15)         (0.35)      (1.17)        (0.45)
 Income (loss) from
discontinued
operations, 

   net of income        -              (2.85)      (0.04)        (2.90)
taxes 
Net income (loss)       $              $           $             $        
                         (1.15)         (3.20)      (1.21)        (3.35)
Weighted average basic  39,518,406     38,982,281  39,340,325    38,753,098
shares
Weighted average        39,518,406     38,982,281  39,340,325    38,753,098
diluted shares

 

 

 

ISLE OF CAPRI CASINOS, INC. 
CONSOLIDATED BALANCE SHEETS 
(In thousands, except share and per share amounts) 
                                           April 28,          April 29,
                                           2013               2012
ASSETS                                     (unaudited)
Current assets:
Cash and cash equivalents                  $        68,469    $        94,461
Marketable securities                      25,520             24,943
Accounts receivable, net                   11,077             6,941
Insurance receivable                       -                  7,497
Income taxes receivable                    4,789              2,161
Deferred income taxes                      1,573              627
Prepaid expenses and other assets          20,872             18,950
Assets held for sale                       -                  46,703
Total current assets                       132,300            202,283
Property and equipment, net                1,034,026          950,014
Other assets:
Goodwill                                   280,803            330,903
Other intangible assets, net               60,748             56,586
Deferred financing costs, net              27,230             13,205
Restricted cash and investments            11,417             12,551
Prepaid deposits and other                 7,075              9,428
Total assets                               $   1,553,599      $   1,574,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt       $             415  $          5,393
Accounts payable                           34,533             23,536
Accrued liabilities:
Payroll and related                        35,093             38,566
Property and other taxes                   21,340             19,522
Interest                                   18,502             9,296
Progressive jackpots and slot club awards  16,579             14,892
Liabilities related to assets held for     -                  4,362
sale
Other                                      29,337             40,549
Total current liabilities                  155,799            156,116
Long-term debt, less current maturities    1,156,469          1,149,038
Deferred income taxes                      43,104             36,057
Other accrued liabilities                  33,303             33,583
Other long-term liabilities                22,514             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 April 28, 2013 and           421                421
42,066,148 at April 29, 2012
Class B common stock, $.01 par value;      -                  -
3,000,000 shares authorized; none issued
Additional paid-in capital                 246,214            247,855
Retained earnings (deficit)                (74,227)           (26,658)
Accumulated other comprehensive (loss)     (247)              (855)
income
                                           172,161            220,763
Treasury stock, 2,470,128 shares at April  (29,751)           (37,143)
28, 2013 and 3,083,867 April 29, 2012
Total stockholders' equity                 142,410            183,620
Total liabilities and stockholders' equity $   1,553,599      $   1,574,970

 

 

Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
                                 Three Months Ended       Twelve Months Ended
                                 April 28,     April 29,  April 28,  April 29,
                                 2013          2012       2013       2012
Properties Not Impacted by
Flooding
   Lake Charles, Louisiana       $             $          $          $    
                                  32,884        38,714     125,575    138,634
   Kansas City, Missouri         19,493        22,554     73,538     80,703
   Boonville, Missouri           20,055        23,315     78,624     81,796
   Cape Girardeau, Missouri      16,671                   32,782
   Bettendorf, Iowa              20,642        21,715     78,083     79,156
   Marquette, Iowa               6,889         7,357      27,605     28,036
   Waterloo, Iowa                23,547        24,721     86,654     86,484
   Black Hawk, Colorado          31,233        34,073     122,135    124,051
   Pompano, Florida              46,393        48,538     154,629    154,740
                                 217,807       220,987    779,625    773,600
Properties Impacted by Flooding
   Natchez, Mississippi          6,286         9,009      25,378     26,739
   Lula, Mississippi             15,454        18,300     55,444     56,070
   Vicksburg, Mississippi        9,296         10,437     29,918     31,937
   Caruthersville, Missouri      8,356         10,539     32,282     33,890
   Davenport, Iowa               10,680        12,769     41,794     44,055
                                 50,072        61,054     184,816    192,691
Property Net Revenues before     267,879       282,041    964,441    966,291
Other
Insurance Recoveries^(2)
   Natchez                       -             1,485      -          1,904
   Lula                          -             5,455      -          5,455
   Vicksburg                     -             703        -          758
   Caruthersville                -             751        -          1,149
   Davenport                     -             260        -          371
Other                            195           325        758        1,443
Net Revenues from Continuing     $    268,074  $          $          $    
Operations                                      291,020    965,199    977,371

 

 

 

Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                  Three Months Ended April 28, 2013
                  Operating  Depreciation  Valuation   Stock-Based               Adjusted
                  Income     and           Charges     Compensation  Preopening  EBITDA
                  (Loss)     Amortization  (3)                                   (1)
Properties Not
Impacted by
Flooding
 Lake Charles,    $          $             $           $             $           $      
 Louisiana         2,893           3,057        -                 6           -   5,956
 Kansas City,     4,208      992           -           4             -           5,204
 Missouri
 Boonville,       6,251      896           -           5             -           7,152
 Missouri
 Cape Girardeau,  (1,177)    2,810         -           4             -           1,637
 Missouri
 Bettendorf,      4,211      1,737         -           3             -           5,951
 Iowa
 Marquette, Iowa  978        556           -           3             -           1,537
 Waterloo, Iowa   6,627      1,194         -           6             -           7,827
 Black Hawk,      5,443      2,303         -           11            -           7,757
 Colorado
 Pompano,         7,981      1,846         -           7             -           9,834
 Florida
 Nemacolin,       (1,446)    -             -           -             1,446       -
 Pennsylvania
                  35,969     15,391        -           49            1,446       52,855
Properties
Impacted by
Flooding
 Natchez,         (15,836)   353           16,000      5             -           522
 Mississippi
 Lula,            (31,001)   1,318         34,100      6             -           4,423
 Mississippi
 Vicksburg,       1,490      1,324         -           5             -           2,819
 Mississippi
 Caruthersville,  1,276      840           -           5             -           2,121
 Missouri
 Davenport, Iowa  1,873      596           -           5             -           2,474
                  (42,198)   4,431         50,100      26            -           12,359
Total Operating   (6,229)    19,822        50,100      75            1,446       65,214
Properties
 Corporate and    (7,540)    535           -           938           -           (6,067)
 Other
Total             $          $             $           $             $           $    
                  (13,769)       20,357    50,100             1,013     1,446     59,147
                  Three Months Ended April 29, 2012
                                                                     Insurance
                  Operating  Depreciation  Valuation   Stock-Based   Recoveries  Adjusted
                  Income     and           and Other   Compensation  (2)         EBITDA
                  (Loss)     Amortization  Charges(3)                and         (1)
                                                                     Preopening
Properties Not
Impacted by
Flooding
 Lake Charles,    $          $             $           $             $           $      
 Louisiana        (11,193)         2,236   16,149                             -   7,195
                                                          3
 Kansas City,     4,741      980           -           1             -           5,722
 Missouri
 Boonville,       7,867      849           -           5             -           8,721
 Missouri
 Cape Girardeau,  (484)      -             -           -             484         -
 Missouri
 Bettendorf,      4,423      1,994         -           5             -           6,422
 Iowa
 Marquette, Iowa  1,214      469           -           5             -           1,688
 Waterloo, Iowa   7,133      1,651         -           5             -           8,789
 Black Hawk,      7,457      1,992         -           10            -           9,459
 Colorado
 Pompano,         8,338      2,457         -           6             -           10,801
 Florida
                  29,496     12,628        16,149      40            484         58,797
Properties
Impacted by
Flooding
 Natchez,         3,858      418           -           5             (1,485)     2,796
 Mississippi
 Lula,            (5,303)    1,585         14,400      5             (5,455)     5,232
 Mississippi
 Vicksburg,       3,528      1,259         -           3             (703)       4,087
 Mississippi 
 Caruthersville,  2,528      893           -           5             (751)       2,675
 Missouri
 Davenport, Iowa  3,110      533           -           5             (260)       3,388
                  7,721      4,688         14,400      23            (8,654)     18,178
Total Operating   37,217     17,316        30,549      63            (8,170)     76,975
Properties
 Corporate and    (11,113)   608           1,979       1,326         -           (7,200)
 Other
                  $          $             $           $             $           $    
Total              26,104        17,924    32,528                      (8,170)    69,775
                                                       1,389

 

 

 

Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                 Twelve Months Ended April 28, 2013
                 Operating  Depreciation                Valuation  Preopening  Adjusted
                 Income     and           Stock-Based   Charges    and         EBITDA
                 (Loss)     Amortization  Compensation  (3)        Financing   (1)
                                                                   (4)
Properties Not
Impacted by
Flooding
 Lake Charles,   $          $             $             $          $           $      
 Louisiana          9,270        10,070                     -               -    19,360
                                            20
 Kansas City,    13,275     4,012         14            -          -           17,301
 Missouri
 Boonville,      24,004     3,545         22            -          -           27,571
 Missouri
 Cape Girardeau, (5,135)    5,572         10            -          4,050       4,497
 Missouri
 Bettendorf,     13,995     6,948         16            -          -           20,959
 Iowa
 Marquette, Iowa 3,718      1,901         15            -          -           5,634
 Waterloo, Iowa  21,544     5,026         22            -          -           26,592
 Black Hawk,     20,109     8,837         43            -          -           28,989
 Colorado
 Pompano,        19,396     7,252         28            -          -           26,676
 Florida
 Nemacolin,      (1,715)    -             -             -          1,715       -
 Pennsylvania
                 118,461    53,163        190           -          5,765       177,579
Properties
Impacted by
Flooding
 Natchez,        (14,667)   1,539         19            16,000     -           2,891
 Mississippi
 Lula,           (29,815)   6,098         21            34,100     -           10,404
 Mississippi
 Vicksburg,      1,184      4,664         19            -          -           5,867
 Mississippi 
 Caruthersville, 2,832      3,361         21            -          -           6,214
 Missouri
 Davenport, Iowa 6,492      2,255         21            -          -           8,768
                 (33,974)   17,917        101           50,100     -           34,144
Total Operating  84,487     71,080        291           50,100     5,765       211,723
Properties
 Corporate and   (35,534)   2,339         4,788         -          1,478       (26,929)
 Other
                 $          $             $             $          $           $      
Total             48,953         73,419                  50,100       7,243    184,794
                                           5,079
                 Twelve Months Ended April 29, 2012
                 Operating  Depreciation                Valuation              Adjusted
                 Income     and           Stock-Based   and Other  Preopening  EBITDA
                 (Loss)     Amortization  Compensation  Charges                (1)
                                                        (3)
Properties Not
Impacted by
Flooding
 Lake Charles,   $          $             $             $          $           $      
 Louisiana        (4,478)          9,291                 16,149             -    21,000
                                           38
 Kansas City,    13,902     3,997         11            -          -           17,910
 Missouri
 Boonville,      26,018     3,481         45            -          -           29,544
 Missouri
 Cape Girardeau, (615)      -             -                        615         -
 Missouri
 Bettendorf,     12,793     8,122         21            -          -           20,936
 Iowa
 Marquette, Iowa 4,169      1,791         25            -          -           5,985
 Waterloo, Iowa  20,399     6,573         37            -          -           27,009
 Black Hawk,     17,468     10,953        40            -          -           28,461
 Colorado
 Pompano,        17,393     10,539        24            -          -           27,956
 Florida
                 107,049    54,747        241           16,149     615         178,801
Properties
Impacted by
Flooding
 Natchez,        6,478      1,536         25            -          -           8,039
 Mississippi
 Lula,           (4,729)    6,590         45            14,400     -           16,306
 Mississippi
 Vicksburg,      4,145      5,067         10            -          -           9,222
 Mississippi 
 Caruthersville, 4,497      3,395         26            -          -           7,918
 Missouri
 Davenport, Iowa 8,261      2,202         26            -          -           10,489
                 18,652     18,790        132           14,400     -           51,974
Total Operating  125,701    73,537        373           30,549     615         230,775
Properties
 Corporate and   (41,318)   2,513         7,269         1,979      -           (29,557)
 Other
                 $          $             $             $          $           $      
Total             84,383         76,050                  32,528          615   201,218
                                           7,642

 

 

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 28,      April 29,   April 28,     April 29, 
                         2013           2012        2013          2012
Income (loss) from       $    (45,391)  $           $             $    
continuing operations                   (13,478)     (45,990)     (17,383)
   Income tax provision  6,898          17,502      6,732         15,119
   Derivative (income)   (216)          (187)       (748)         (439)
   expense
   Interest income       (96)           (199)       (502)         (819)
   Interest expense      25,036         22,466      89,461        87,905
   Depreciation and      20,357         17,924      73,419        76,050
   amortization
   Stock-based           1,013          1,389       5,079         7,642
   compensation
   Valuation charges and 50,100         32,528      50,100        32,528
   other (3)
   Preopening expense    1,446          484         5,765         615
   Financing expense (4) -              -           1,478         -
   Insurance recoveries  -              (8,654)     -             -
   (2)
Adjusted EBITDA (1)      $      59,147  $           $    184,794  $    201,218
                                        69,775

 

 

 

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 28,      April 29,        April 28,    April 29, 
                      2013           2012             2013         2012
GAAP net income       $              $                $            $      
(loss)                (45,391)       (124,791)        (47,569)     (129,753)
Insurance recoveries  -              (8,654)          -            -
(2)
Valuation charges and 50,100         32,528           50,100       32,528
other (3)
Financing costs (4)   2,236          -                4,742        -
Preopening            1,446          484              5,765        615
Adjustment for taxes  -              (3,790)          -            (7,251)
on above items (5)
Tax valuation         758            8,742            758          8,742
allowance
Discontinued          -              111,313          1,579        112,370
operations
Adjusted net income   $              $                $            $        
                       9,149          15,832           15,375       17,251
GAAP net income       $              $                $            $          
(loss)                  (1.15)       (3.20)             (1.21)       (3.35)
Insurance recoveries  -              (0.22)           -            -
(2)
Valuation charges and 1.27           0.83             1.27         0.84
other (3)
Financing costs (4)   0.06           -                0.12         -
Preopening            0.04           0.01             0.15         0.02
Adjustment for taxes  -              (0.10)           -            (0.19)
on above items (5)
Tax valuation         0.02           0.22             0.02         0.23
allowance
Discontinued          -              2.85             0.04         2.90
operations
Adjusted net income   $              $                $            $          
per share                0.24         0.39               0.39         0.45

 

 1. Adjusted EBITDA is "earnings before interest and other non-operating
    income (expense), income taxes, stock-based compensation, preopening
    expense, 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. 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.

 3. Valuation charges in the fourth quarter and fiscal 2013 consist of
    goodwill impairment charges of $34.1 million at our Lula property and
    $16.0 million at our Natchez property. Valuation charges and other in the
    fourth quarter and fiscal 2012 consists of a goodwill impairment charge at
    our Lula 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.

 4. Financing charges relate to non-capitalizable fees of $1.5 million
    associated with the tender offer of our 7% Senior Subordinated Notes
    during fiscal 2013, recorded in Corporate and development expenses, and
    the non-cash write-off of deferred financing costs of $2.2 million and
    $3.3 million during the fourth quarter and fiscal 2013, respectively,
    related to debt refinancing and recorded in interest expense.

 5. Because of our tax valuation allowances, there is no adjustment for income
    taxes on the above items during fiscal 2013.

SOURCE Isle of Capri Casinos, Inc.

Website: http://www.islecorp.com
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