Isle Of Capri Casinos, Inc. Announces Fiscal 2014 First Quarter Results

   Isle Of Capri Casinos, Inc. Announces Fiscal 2014 First Quarter Results

PR Newswire

ST. LOUIS, Sept. 4, 2013

ST. LOUIS, Sept. 4, 2013 /PRNewswire/ --Isle of Capri Casinos, Inc. (NASDAQ:
ISLE) (the "Company") today reported financial results for the first quarter
of fiscal year 2014 ended July 28, 2013 and other Company-related news.

Consolidated Results

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

                                                           Three Months Ended
                                                           July 28,  July 29,
                                                           2013      2012
Net revenues                                               $ 247.7   $ 235.8
Consolidated adjusted EBITDA (1)                           43.3      45.0
Income (loss) from continuing operations                   (4.9)     4.7
Income from discontinued operations                        -         1.9
Net income (loss)                                          (4.9)     6.7
Diluted income (loss) per share from continuing operations (0.12)    0.12
Diluted income per share from discontinued operations      -         0.05
Diluted income (loss) per share                            (0.12)    0.17

Virginia McDowell, President and Chief Executive Officer, commented "Our
operating results continue to be impacted by the soft regional gaming trends
and several of our properties were impacted by flooding and spring storms that
occurred in the Midwest during May and June. These items contributed to a
decrease in same store casino revenues of $4.5 million, or 1.9%. Adjusted
EBITDA at properties open for more than one year decreased $3.8 million, or
7.4%, as our same store operating results have become particularly sensitive
to revenue trends. Partially offsetting the softness were Pompano, Black Hawk,
and Lake Charles which all experienced year over year increases in net revenue
and combined adjusted EBITDA flow through of 60%.

"In Cape Girardeau we continue to refine our business model in order to ramp
up the property. Sequentially, from the fourth quarter of fiscal 2013
adjusted EBITDA at the property increased from $1.6 million to $2.1 million
while net revenue decreased from $16.7 million to $13.8 million. The
increased adjusted EBITDA is a reflection of improved operating efficiencies
and improved promotional spending.

"Our newest property, Lady Luck Nemacolin opened on July 1, and generated net
revenue of $2.6 million and adjusted EBITDA of $(0.6) million during the
period. While customer feedback regarding the property has been extremely
positive, initial results have not met our expectations. Many local customers
have told us they are having difficulty accepting the mandatory purchase
requirement, which they view as an admission charge, that doesn't exist at
other casinos in the region. We are exploring alternatives to make access to
the casino more appealing and least disruptive to customers as possible. In
addition we are making operating changes to match the level of customer

McDowell continued "We continue to strive to operate all of our properties as
efficiently as possible in this tough operating environment and have a
continuous focus on managing costs."

Financial Highlights

Net loss per share from continuing operations was $(0.12) for the quarter
ended July 28, 2013 compared to net income per share from continuing
operations of $0.12 in the prior year quarter. Operating results in the most
recent quarter were impacted by $3.9 million in preopening expenses associated
with Lady Luck Nemacolin and a $1.0 million gain on the sale of the Company's
corporate aircraft. Without the impact of these two items, the loss per share
for the current quarter would have been $(0.05).

Additionally, a valuation allowance of $2.3 million, or ($0.06) per share, was
recorded against the normal tax benefit associated with the net loss for the
quarter due to the Company's overall tax position.

Net revenues for the current quarter were $247.7 million compared to $235.8
million in the prior year quarter, and consolidated adjusted EBITDA was $43.3
million compared to $45.0 million for the quarter compared to the same quarter
of the prior fiscal year. At properties open more than one year, net revenues
were $231.1 million compared to $235.6 million and adjusted property EBITDA
was $48.2 million compared to $52.1 million for the first quarter compared to
the prior year quarter. The Company's Cape Girardeau and Nemacolin properties
contributed combined net revenues of $16.4 million and adjusted EBITDA of $1.5
million in the current quarter.

Operating Results

Black Hawk – Net revenues increased $1.3 million to $32.7 million, and
Adjusted EBITDA increased $0.8 million, or 11.2%, to $8.4 million. Black Hawk
benefited from increased gaming and non-gaming revenues compared to the prior
year, as well as decreased expenses, attributable to recent facility
enhancements and marketing programs that have driven the property's market
share to its highest level since August 2009.

Pompano – Net revenues increased $2.7 million to $37.4 million, and Adjusted
EBITDA increased $1.5 million, or 33.3%, to $6.0 million. Results in Pompano
led to a margin increase of 310 basis points compared to prior year, as both
gaming and non-gaming revenues increased during the period. We believe our
focus on efficient marketing and quality non-gaming amenities has increased
our competitive position and market share for the property. In addition, the
property has benefitted from the removal of electronic gaming devices in
internet cafes in south Florida.

Iowa – Net revenues decreased $2.1 million to $57.2 million, and Adjusted
EBITDA decreased $1.6 million to $13.9 million. In Davenport, the property was
severely impacted by flooding and road closures during the period, which
contributed to adjusted EBITDA decreasing $0.7 million to $1.4 million.
Results in Marquette were also impacted by the severe weather during the
period, offset by decreased expenses that led to adjusted EBITDA and margin

Lake Charles – Net revenues increased $0.1 million to $33.7 million, and
Adjusted EBITDA increased $0.1 million to $5.6 million. Net revenues and
Adjusted EBITDA were stable in Lake Charles, despite an overall market decline
of 3.2%. We have been successful in maintaining operating results through a
variety of facility enhancements, new marketing programs and cost savings

Missouri – Net revenues increased $10.8 million to $58.3 million, and Adjusted
EBITDA increased $0.4 million to $13.6 million. Increases in net revenues and
Adjusted EBITDA were driven by the introduction of our Cape Girardeau
property, which was not open in the previous year and generated net revenue
and adjusted EBITDA of $13.8 million and $2.1 million respectively. Results
in Boonville were negatively impacted by three power outages and ongoing
construction disruption during the period to the casino floor and main bar,
which are now complete. Results in Caruthersville, while impacted by Cape
Girardeau, were more positive than expected, as the property successfully
continues to build its presence in the Tennessee market. In Kansas City,
increased marketing pressure led to decreased net revenues, which were
partially offset by cost efficiencies.

Mississippi - Net revenues decreased $3.5 million to $25.7 million, and
Adjusted EBITDA decreased $3.0 million to $2.8 million. The decrease in
revenues and earnings were primarily driven by continued market pressures on
our properties in Lula and Natchez. At Vicksburg, net revenues and market
share increased during the period, while an aggressive promotional environment
led to decreased Adjusted EBITDA at the property. In addition, visitation was
impacted by road construction between Vicksburg and Jackson, MS, a primary
feeder market.

Pennsylvania – Net revenues were $2.6 million, and Adjusted EBITDA was ($0.6)
million. Lady Luck Casino at Nemacolin Woodlands Resort was open for only the
month of July during the quarter.

Corporate Expenses

Corporate and development expenses were $6.7 million for the quarter, a
decrease of $1.8 million compared to prior year. The current quarter
benefitted from a $1.0 million gain from the sale of our airplane.

Non-cash stock compensation expense was $1.1 million for the quarter compared
to $1.3 million in the first quarter of fiscal 2013.


Sale of Rhythm City Casino Davenport – In June 2013 we entered into an
agreement with Kehl Development-Scott County LLC, providing Kehl Development
with an option to purchase Rhythm City for $51 million subject to certain
terms and conditions. Kehl Development continues to work with the City of
Davenport and our non-profit partner, the Riverboat Development Authority, to
negotiate development and operating agreements for its planned new
development. Including extensions, Kehl Development has until October 15,
2013 to exercise the option to purchase Rhythm City.

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 Capital Expenditures

As of July 28, 2013, the Company had:

  o$66.6 million in cash and cash equivalents, excluding $9.8 million in
    restricted cash and investments;
  o$1.2 billion in total debt; and
  o$95 million in net line of credit availability.

First quarter capital expenditures (including the $7.5 million table games
license fee for Nemacolin) were $29.8 million, including capital expenditures
of $21.3 million at Nemacolin. The Company expects to have approximately $46
million to $49 million in additional capital expenditures for the balance of
the fiscal year, including approximately $9 million for Lady Luck Nemacolin.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Wednesday,
September 4, 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,, 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 Wednesday,
September 4, 2013, until midnight central on Wednesday, September 11, 2013, by
dialing 877-344-7829; International: 412-317-0088 and access number 10033258.

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 16 casino properties that it owns or operates, primarily under the Isle
and Lady Luck brands. The Company currently operates gaming and entertainment
facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado, Florida and
Pennsylvania. More information is available at the Company's website,

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.,
 Dale Black, Chief Financial Officer-314.813.9327
 Jill Alexander, Senior Director of Corporate

(In thousands, except share and per share amounts)
                                          Three Months Ended
                                          July 28,           July 29,
                                          2013               2012
Casino                                    $   262,142      $   250,269
Rooms                                     8,915              8,630
Food, beverage, pari-mutuel and other     35,216             32,806
 Gross revenues                        306,273            291,705
 Less promotional allowances       (58,544)           (55,882)
 Net revenues                  247,729            235,823
Operating expenses:
Casino                                    41,743             38,496
Gaming taxes                              65,976             61,628
Rooms                                     1,909              1,773
Food, beverage, pari-mutuel and other     11,069             10,104
Marine and facilities                     15,048             13,700
Marketing and administrative              62,106             57,956
Corporate and development                 6,698              8,473
Preopening                                3,898              687
Depreciation and amortization             20,395             16,822
 Total operating expenses              228,842            209,639
Operating income                          18,887             26,184
Interest expense                          (22,658)           (20,431)
Interest income                           90                 175
Derivative income                         230                134
Income (loss) from continuing operations
                                          (3,451)            6,062
income taxes
Income tax provision                      (1,411)            (1,318)
Income (loss) from continuing             (4,862)            4,744
Income from discontinued operations,net  -                  1,917
of income taxes
Net income (loss)                         $    (4,862)   $     6,661
Income (loss) per common share-basic:
Income (loss) from continuing operations  $     (0.12)  $      0.12
Income (loss) from discontinued           -                  0.05
operations,net of income taxes
Net income (loss)                         $     (0.12)  $      0.17
Income (loss) per common share-dilutive:
Income (loss) from continuing operations  $     (0.12)  $      0.12
Income from discontinued operations, net  -                  0.05
of income taxes
Net income (loss)                         $     (0.12)  $      0.17
Weighted average basic shares             39,582,928         39,018,281
Weighted average diluted shares           39,582,928         39,035,280

(In thousands, except share and per share amounts)
                                          July 28,           April 28,
                                          2013               2013
ASSETS                                    (unaudited)
Current assets:
Cash and cash equivalents                 $    66,560    $    68,469
Marketable securities                     27,320             25,520
Accounts receivable, net                  10,688             11,077
Income taxes receivable                   4,263              4,789
Deferred income taxes                     2,096              1,573
Prepaid expenses and other assets         30,486             20,872
 Total current assets                  141,413            132,300
Property and equipment, net               1,033,438          1,034,026
Other assets:
Goodwill                                  280,803            280,803
Other intangible assets, net              68,004             60,748
Deferred financing costs, net             26,784             27,230
Restricted cash and investments           9,757              11,417
Prepaid deposits and other                7,034              7,075
 Total assets                          $  1,567,233      $  1,553,599
Current liabilities:
Current maturities of long-term debt      $       429  $       415
Accounts payable                         24,487             34,533
Accrued liabilities:
Payroll and related                       36,581             35,093
Property and other taxes                  23,012             21,340
Interest                                  21,516             18,502
Progressive jackpots and slot club awards 17,263             16,579
Other                                     33,157             29,337
 Total current liabilities             156,445            155,799
Long-term debt, less current maturities   1,171,162          1,156,469
Deferred income taxes                     44,379             43,104
Other accrued liabilities                 33,661             33,303
Other long-term liabilities               22,756             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 July 28, 2013 and at April  421                421
28, 2013
Class B common stock, $.01 par value;     -                  -
3,000,000 shares authorized; none issued
Additional paid-in capital                246,760            246,214
Retained earnings (deficit)               (79,089)           (74,227)
Accumulated other comprehensive (loss)    (99)               (247)
                                          167,993            172,161
Treasury stock, 2,421,316 shares at July
28, 2013 and 2,470,128 shares at April    (29,163)           (29,751)
28, 2013
Total stockholders' equity                138,830            142,410
Total liabilities and stockholders'       $  1,567,233      $  1,553,599

Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
                                         Three Months Ended
                                         July 28,    July 29,
                                         2013        2012
 Black Hawk                           $  32,684  $  31,353
 Pompano                              37,386      34,685
 Bettendorf                           19,465      19,855
 Davenport                            9,716       10,646
 Marquette                            7,112       7,381
 Waterloo                             20,942      21,412
 Iowa Total                           57,235      59,294
 Lake Charles                         33,666      33,578
 Lula                                 12,579      14,631
 Natchez                              5,327       7,001
 Vicksburg                            7,779       7,558
 Mississippi Total                    25,685      29,190
 Boonville                            18,729      20,388
 Cape Girardeau                       13,809      -
 Caruthersville                       7,687       8,633
 Kansas City                          18,071      18,520
 Missouri Total                       58,296      47,541
 Nemacolin                            2,593       -
Property Net Revenues before Other       247,545     235,641
Other                                    184         182
Net Revenues from Continuing Operations  $ 247,729   $ 235,823

Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                   Three Months Ended July 28, 2013
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        6,084      2,319         11            -           8,414
Pompano, Florida   4,167      1,846         7             -           6,020
Bettendorf, Iowa   3,213      1,699         4             -           4,916
Davenport, Iowa    790        593           5             -           1,388
Marquette, Iowa    1,220      478           3             -           1,701
Waterloo, Iowa     4,628      1,220         6             -           5,854
 Iowa Total     9,851      3,990         18            -           13,859
Lake Charles,      2,734      2,877         5             -           5,616
Lula,              362        1,326         5             -           1,693
Natchez,           (599)      351           5             -           (243)
Vicksburg,         380        1,005         5             -           1,390
 Mississippi    143        2,682         15            -           2,840
Boonville,         5,225      1,152         6             -           6,383
Cape Girardeau,    (685)      2,787         3             -           2,105
Caruthersville,    457        805           6             -           1,268
Kansas City,       2,840      976           4             -           3,820
 Missouri       7,837      5,720         19            -           13,576
Nemacolin,         (5,011)    557           -             3,898       (556)
Total Operating    25,805     19,991        75            3,898       49,769
Corporate and      (6,918)    404           1,059         (1,019)     (6,474)
                   $      $        $        $       $   
Total               18,887                     2,879      43,295
                              20,395        1,134
                   Three Months Ended July 29, 2012
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        5,408      2,148         10            -           7,566
Pompano, Florida   2,737      1,774         6             -           4,517
Bettendorf, Iowa   3,530      1,713         5             -           5,248
Davenport, Iowa    1,601      528           5             -           2,134
Marquette, Iowa    1,259      431           5             -           1,695
Waterloo, Iowa     4,914      1,492         5             -           6,411
 Iowa Total     11,304     4,164         20            -           15,488
Lake Charles,      3,363      2,112         4             -           5,479
Lula,              1,107      1,723         5             -           2,835
Natchez,           843        468           5             -           1,316
Vicksburg,         595        1,044         4             -           1,643
 Mississippi    2,545      3,235         14            -           5,794
Boonville,         6,494      867           5             -           7,366
Cape Girardeau,    (687)      -             -             687         -
Caruthersville,    823        856           5             -           1,684
Kansas City,       3,115      1,039         2             -           4,156
 Missouri       9,745      2,762         12            687         13,206
Nemacolin,         -          -             -             -           -
Total Operating    35,102     16,195        66            687         52,050
Corporate and      (8,918)    627           1,252         -           (7,039)
                   $      $        $        $       $   
Total               26,184                       687     45,011
                              16,822        1,318

Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
                                               Three Months Ended
                                               July 28,       July 29,
                                               2013            2012
Income (loss) from continuing operations       $ (4,862)      $  4,744
         Income tax provision                  1,411           1,318
         Derivative income                     (230)           (134)
         Interest income                       (90)            (175)
         Interest expense                      22,658          20,431
         Depreciation and amortization         20,395          16,822
         Stock-based compensation              1,134           1,318
         Preopening expense                    3,898           687
         Gain on sale of airplane              (1,019)         -
Adjusted EBITDA (1)                            $ 43,295       $ 45,011

   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
1. 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.

SOURCE Isle of Capri Casinos, Inc.

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