ISLE OF CAPRI CASINOS ST. LOUIS, Dec. 2, 2014 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the second quarter of fiscal year 2015 ended October 26, 2014 and other Company-related news.
Consolidated Financial Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended Six Months Ended
------------------ ----------------
October 26, October 27, October 26, October 27,
2014 2013 2014 2013
---- ---- ---- ----
Net revenues $238.9 $231.6 $480.6 $469.6
Consolidated
Adjusted EBITDA (1) 43.6 37.3 87.4 79.2
Income (loss) from
continuing
operations (1.0) 6.3 (3.3) 0.7
Income from
discontinued
operations - 1.7 - 2.5
Net income (loss) (1.0) 8.0 (3.3) 3.2
Diluted income
(loss) per share
from continuing
operations (0.03) 0.16 (0.08) 0.02
Diluted income per
share from
discontinued
operations - 0.04 - 0.06
Diluted income
(loss) per share (0.03) 0.20 (0.08) 0.08
Adjusted income
(loss) per share
(2) 0.02 (0.21) 0.05 (0.28)
(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 Income (Loss)
from Continuing Operations to Adjusted
Income (Loss) and GAAP Income (Loss)
from Continuing Operations Per Share to
Adjusted Income (Loss) Per Share."
Virginia McDowell, the Company's president and chief executive officer, commented,
"Approximately a year ago, we undertook a comprehensive review of our business practices and implemented bold changes to the way we view and operate our business. We saw the benefits of those efforts once again as this is the third consecutive quarter we reported a year over year increase in Adjusted EBITDA.
"Our business continued to gain momentum during the quarter as we saw a year over year increase in net revenues and Adjusted EBITDA at ten properties. A combination of better overall macro-economic trends and our redesigned marketing and operating programs resulted in a 3% revenue increase year over year, while our more streamlined cost structure contributed to a 17% increase in Adjusted EBITDA year over year. Our revenue flow through during the quarter was 87%, demonstrating the operating leverage in our business.
"We continue to focus on improving the profitability of our newest properties and saw positive results at Cape Girardeau where Adjusted EBITDA improved 51% year over year. At Nemacolin we reduced the Adjusted EBITDA loss by nearly $1 million year over year and are continuing to focus on driving profitable revenues.
"We also remain focused on improving our balance sheet and property assets. We reduced debt by approximately $32 million since the beginning of our fiscal year, while continuing to invest in our properties to enhance the guest experience."
Financial Highlights
Net revenues for the second quarter were up 3.1%, to $238.9 million, compared to $231.6 million in the prior year quarter, and consolidated Adjusted EBITDA increased 17.1% to $43.6 million from $37.3 million in the prior year quarter. Adjusted EBITDA margin was 18.3% compared to 16.1% in the prior year quarter.
Operating results in the most recent quarter were impacted by a $1.2 million favorable property tax settlement in Waterloo and $3.0 million in expenses related to Amendment 68 in Colorado. The previous year's quarter benefited from a favorable judicial ruling on litigation in Greece, in which the Company reversed a $14.7 million litigation accrual, of which $7.3 million reduced operating expenses and $7.4 million reduced interest expense.
On a GAAP basis, diluted loss per share from continuing operations was ($0.03) compared to income per share from continuing operations of $0.16 in the prior year's quarter. Adjusted income per share from continuing operations was $0.02 compared to adjusted net loss per share from continuing operations of ($0.21) in the prior year's quarter.
Operating Results
Black Hawk - Net revenues increased $2.7 million, or 9.0%, to $32.7 million and Adjusted EBITDA increased $2.1 million to $9.0 million, at our two casinos in Black Hawk. This quarter's results benefited from better labor management and the rollout of Fan Club at our two properties. Additionally, the previous year's results were negatively impacted by flooding in Colorado. The overall Black Hawk market increased 4.7% compared to the prior year three-month period. Our properties increased market share from 20.9% in the prior year quarter to 22.0% in the current year quarter.
Pompano - Net revenues increased $0.3 million to $36.7 million, and Adjusted EBITDA increased 12.8%, to $6.2 million at Pompano Park. These results were driven primarily by cost reduction initiatives.
Iowa - Net revenues were essentially flat at $46.9 million and Adjusted EBITDA increased $0.2 million to $13.3 million at our properties in Iowa. Adjusted EBITDA margin at our property in Bettendorf increased 103 basis points despite a $0.7 million decrease in net revenues as a result of cost containment efforts. Effective marketing programs in Waterloo drove increased rated play and increased market share during the second quarter resulting in a 3.5% increase in Adjusted EBITDA.
Lake Charles - Net revenues decreased $0.2 million to $31.1 million, and Adjusted EBITDA was essentially flat at $4.5 million. During the quarter we renovated the buffet at Lake Charles introducing our Farmer's Pick buffet which has had great success at five of our other properties.
Mississippi - Net revenues grew $0.2 million to $23.6 million and Adjusted EBITDA grew $0.8 million at our properties in Mississippi. In Lula, strategic marketing initiatives contributed to a net revenue increase of $0.8 million. Coupled with cost savings efforts, Adjusted EBITDA at Lula increased $0.8 million to $2.0 million, an increase of 71.5%. In Vicksburg, more targeted marketing and better cost management resulted in a $0.3 million increase in Adjusted EBITDA to $1.0 million despite a decline in revenues.
Missouri - Net revenues increased $2.8 million to $58.9 million, and Adjusted EBITDA increased $1.5 million to $14.3 million at our properties in Missouri. Net revenues and Adjusted EBITDA at Cape Girardeau increased $1.8 million and $0.8 million, respectively, and Adjusted EBITDA margin improved almost 400 bps. We continue to focus on driving profitable revenue and enhancing our food and beverage operations as the property continues to mature. Kansas City and Caruthersville saw strong increases in Adjusted EBITDA of 9.6% and 38.0%, respectively, while Boonville's Adjusted EBITDA was almost flat.
Pennsylvania - Net revenues were $9.0 million, an increase of $1.6 million compared to the prior year quarter, which was the first full fiscal quarter of operation at our Lady Luck Casino at Nemacolin Woodlands Resort. Adjusted EBITDA was ($0.4) million compared to ($1.3) million during the second quarter of the prior year. We continue to refine our marketing programs and cost structure at the property.
Corporate Expenses
Corporate and development expenses were $6.7 million for the quarter, a decrease of $0.7 million compared to the prior year.
Corporate non-cash stock compensation expense was $1.1 million for the quarter compared to $1.4 million in the second quarter of fiscal 2014.
Capital Structure and Capital Expenditures
As of October 26, 2014, the Company had:
-- $68.8 million in cash and cash equivalents, excluding $9.1 million in
restricted cash and investments;
-- $1.0 billion in total debt; and
-- $178 million in net line of credit availability.
Second quarter capital expenditures were $9.7 million, bringing total capital expenditures to $18.7 million for the six months. The Company expects to incur approximately $28 million to $31 million in capital expenditures for the balance of fiscal 2015.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December 2, 2014 at 10:00 am central time during which management will discuss the financial and other matters addressed in this press release. The conference call can be accessed by interested parties via webcast through the investor relations page of the Company's website, www.islecorp.com, or, for domestic callers, by dialing 888-346-3970. International callers can access the conference call by dialing 412-902-4263. The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, December 2, 2014, until 11:59 pm central on Tuesday, December 16, 2014, by dialing 877-344-7529; International: 412-317-0088 and access number 10056661.
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 or operates, primarily under the Isle and Lady Luck brands. The Company currently operates gaming and entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, and 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.,
Eric Hausler, Chief Financial Officer-314.813.9205
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 Six Months Ended
------------------ ----------------
October 26, October 27, October 26, October 27,
2014 2013 2014 2013
---- ---- ---- ----
Revenues:
Casino $255,445 $246,508 $510,517 $497,342
Rooms 8,474 8,713 16,786 17,628
Food, beverage, pari-mutuel and other 34,435 32,597 68,558 66,719
Gross revenues 298,354 287,818 595,861 581,689
Less promotional allowances (59,437) (56,197) (115,295) (112,055)
------- ------- -------- --------
Net revenues 238,917 231,621 480,566 469,634
Operating expenses:
Casino 40,275 39,793 80,403 80,061
Gaming taxes 64,403 62,451 128,870 125,129
Rooms 1,849 1,872 3,752 3,773
Food, beverage, pari-mutuel and other 10,674 10,315 22,046 21,117
Marine and facilities 14,488 14,382 29,207 29,001
Marketing and administrative 59,858 59,640 120,219 118,890
Corporate and development 6,735 7,386 15,883 14,084
Litigation accrual reversal - (7,351) - (7,351)
Preopening expense - - - 3,898
Depreciation and amortization 19,610 20,522 39,253 40,324
Total operating expenses 217,892 209,010 439,633 428,926
------- ------- ------- -------
Operating income 21,025 22,611 40,933 40,708
Interest expense (21,114) (15,193) (42,443) (37,847)
Interest income 92 84 179 174
Derivative income - 168 - 398
--- --- --- ---
Income (loss) from continuing operations before
income taxes 3 7,670 (1,331) 3,433
Income tax provision (1,024) (1,359) (2,007) (2,770)
------ ------ ------ ------
Income (loss) from continuing operations (1,021) 6,311 (3,338) 663
Income from discontinued operations, net of income
taxes - 1,726 - 2,512
Net income (loss) $(1,021) $8,037 $(3,338) $3,175
======= ====== ======= ======
Income (loss) per common share-basic:
Income (loss) from continuing operations $(0.03) $0.16 $(0.08) $0.02
Income from discontinued operations,
net of income taxes - 0.04 - 0.06
--- ---- --- ----
Net income (loss) $(0.03) $0.20 $(0.08) $0.08
====== ===== ====== =====
Income (loss) per common share-dilutive:
Income (loss) from continuing operations $(0.03) $0.16 $(0.08) $0.02
Income from discontinued operations,
net of income taxes - 0.04 - 0.06
--- ---- --- ----
Net income (loss) $(0.03) $0.20 $(0.08) $0.08
====== ===== ====== =====
Weighted average basic shares 39,932,856 39,686,217 39,880,379 39,634,573
Weighted average diluted shares 39,932,856 39,731,192 39,880,379 39,682,644
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
October 26, April 27,
2014 2014
---- ----
ASSETS (unaudited)
------
Current assets:
Cash and cash equivalents $68,794 $69,830
Marketable securities 27,052 27,289
Accounts receivable, net 11,280 12,615
Income taxes receivable 203 73
Deferred income taxes 3,898 4,106
Prepaid expenses and other
assets 21,779 18,526
Total current assets 133,006 132,439
Property and equipment, net 935,930 955,604
Other assets:
Goodwill 108,970 108,970
Other intangible assets, net 54,492 54,911
Deferred financing costs, net 21,200 23,439
Restricted cash and
investments 9,149 9,807
Prepaid deposits and other 4,825 4,904
Total assets $1,267,572 $1,290,074
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-
term debt $233 $230
Accounts payable 19,813 20,869
Accrued liabilities:
Payroll and related 37,935 34,700
Property and other taxes 24,750 20,360
Interest 16,658 16,920
Progressive jackpots and slot
club awards 16,700 16,306
Other 20,773 18,478
Total current liabilities 136,862 127,863
Long-term debt, less current
maturities 1,034,182 1,066,071
Deferred income taxes 37,628 35,870
Other accrued liabilities 18,420 18,495
Other long-term liabilities 22,357 22,391
Stockholders' equity:
Preferred stock, $.01 par
value; 2,000,000 shares
authorized; none issued - -
Common stock, $.01 par value; 60,000,000 shares authorized; shares
issued:
42,066,148 at October 26,
2014 and at April 27, 2014 421 421
Class B common stock, $.01 par value; 3,000,000 shares authorized;
none issued
Additional paid-in capital 247,450 247,819
Retained earnings (deficit) (205,251) (201,913)
-------- --------
42,620 46,327
Treasury stock, 2,033,907 shares at October 26, 2014 and 2,236,971
shares
at April 27, 2014 (24,497) (26,943)
Total stockholders' equity 18,123 19,384
Total liabilities and
stockholders' equity $1,267,572 $1,290,074
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Six Months Ended
------------------ ----------------
October 26, October 27, October 26, October 27,
2014 2013 2014 2013
---- ---- ---- ----
Colorado
Black Hawk $32,738 $30,023 $64,419 $62,707
Florida
Pompano 36,733 36,400 74,457 73,786
Iowa
Bettendorf 18,273 18,965 37,807 38,430
Marquette 6,950 6,911 13,437 14,023
Waterloo 21,649 21,040 42,901 41,982
Iowa Total 46,872 46,916 94,145 94,435
Louisiana
Lake Charles 31,075 31,244 63,611 64,910
Mississippi
Lula 12,335 11,523 25,010 24,102
Natchez 4,459 4,795 9,212 10,122
Vicksburg 6,803 7,035 14,245 14,814
Mississippi Total 23,597 23,353 48,467 49,038
Missouri
Boonville 19,075 18,891 38,265 37,620
Cape Girardeau 14,809 13,049 29,169 26,858
Caruthersville 7,583 7,199 15,066 14,886
Kansas City 17,395 16,936 35,224 35,007
Missouri Total 58,862 56,075 117,724 114,371
Pennsylvania
Nemacolin 9,033 7,429 17,690 10,022
Property Net Revenues before Other 238,910 231,440 480,513 469,269
Other 7 181 53 365
--- --- --- ---
Net Revenues from Continuing
Operations $238,917 $231,621 $480,566 $469,634
======== ======== ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended October 26, 2014
-----------------------------------
Operating Depreciation and Stock-Based Other Adjusted
Income (Loss) Amortization Compensation EBITDA
------------ ------------ ------------ ------
Black Hawk, Colorado $3,629 $2,307 $7 $3,044 $8,987
Pompano, Florida 4,489 1,732 7 - 6,228
Bettendorf, Iowa 3,524 1,436 6 - 4,966
Marquette, Iowa 1,261 402 4 - 1,667
Waterloo, Iowa 6,593 1,289 5 (1,225) 6,662
Iowa Total 11,378 3,127 15 (1,225) 13,295
Lake Charles, Louisiana 1,705 2,745 6 - 4,456
Lula, Mississippi 673 1,276 4 - 1,953
Natchez, Mississippi (950) 272 4 - (674)
Vicksburg, Mississippi 140 893 4 - 1,037
Mississippi Total (137) 2,441 12 - 2,316
Boonville, Missouri 5,658 987 2 - 6,647
Cape Girardeau, Missouri (458) 2,812 4 - 2,358
Caruthersville, Missouri 846 629 3 - 1,478
Kansas City, Missouri 2,897 959 7 - 3,863
Missouri Total 8,943 5,387 16 - 14,346
Nemacolin, Pennsylvania (1,744) 1,362 3 (379)
------ ----- --- ----
Total Operating Properties 28,263 19,101 66 1,819 49,249
Corporate and Other (7,238) 509 1,128 - (5,601)
Total $21,025 $19,610 $1,194 $1,819 $43,648
======= ======= ====== ====== =======
Three Months Ended October 27, 2013
-----------------------------------
Operating Depreciation and Stock-Based Other Adjusted
Income (Loss) Amortization Compensation EBITDA
------------ ------------ ------------ ------
Black Hawk, Colorado $4,532 $2,356 $8 $ - $6,896
Pompano, Florida 3,727 1,788 6 - 5,521
Bettendorf, Iowa 3,276 1,679 3 - 4,958
Marquette, Iowa 1,242 487 1 - 1,730
Waterloo, Iowa 5,230 1,202 4 - 6,436
Iowa Total 9,748 3,368 8 - 13,124
Lake Charles, Louisiana 1,460 3,003 4 - 4,467
Lula, Mississippi (186) 1,322 3 - 1,139
Natchez, Mississippi (736) 342 4 - (390)
Vicksburg, Mississippi (110) 891 4 - 785
Mississippi Total (1,032) 2,555 11 - 1,534
Boonville, Missouri 5,762 911 6 - 6,679
Cape Girardeau, Missouri (1,225) 2,788 1 - 1,564
Caruthersville, Missouri 325 742 4 - 1,071
Kansas City, Missouri 2,560 961 4 - 3,525
Missouri Total 7,422 5,402 15 - 12,839
Nemacolin, Pennsylvania (3,013) 1,670 1 (1,342)
------ ----- --- ------
Total Operating Properties 22,844 20,142 53 - 43,039
Corporate and Other (233) 380 1,446 (7,351) (5,758)
Total $22,611 $20,522 $1,499 $(7,351) $37,281
======= ======= ====== ======= =======
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Six Months Ended October 26, 2014
---------------------------------
Operating Depreciation and Stock-Based Other Adjusted
Income (Loss) Amortization Compensation EBITDA
------------ ------------ ------------ ------
Black Hawk, Colorado $8,139 $4,650 $15 $4,057 $16,861
Pompano, Florida 9,328 3,474 13 - 12,815
Bettendorf, Iowa 7,540 2,888 10 - 10,438
Marquette, Iowa 2,159 858 5 - 3,022
Waterloo, Iowa 11,941 2,475 9 (1,225) 13,200
Iowa Total 21,640 6,221 24 (1,225) 26,660
Lake Charles, Louisiana 4,050 5,575 10 - 9,635
Lula, Mississippi 1,599 2,563 7 - 4,169
Natchez, Mississippi (1,541) 505 8 - (1,028)
Vicksburg, Mississippi 230 1,785 8 - 2,023
Mississippi Total 288 4,853 23 - 5,164
Boonville, Missouri 11,436 1,975 8 - 13,419
Cape Girardeau, Missouri (937) 5,602 5 - 4,670
Caruthersville, Missouri 1,506 1,297 7 - 2,810
Kansas City, Missouri 5,809 1,909 11 - 7,729
Missouri Total 17,814 10,783 31 - 28,628
Nemacolin, Pennsylvania (3,517) 2,719 4 - (794)
------ ----- --- --- ----
Total Operating Properties 57,742 38,275 120 2,832 98,969
Corporate and Other (16,809) 978 1,957 2,259 (11,615)
Total $40,933 $39,253 $2,077 $5,091 $87,354
======= ======= ====== ====== =======
Six Months Ended October 27, 2013
---------------------------------
Operating Depreciation and Stock-Based Preopening Adjusted
Income (Loss) Amortization Compensation and Other EBITDA
------------ ------------ ------------ --------- ------
Black Hawk, Colorado $10,616 $4,675 $19 $ - $15,310
Pompano, Florida 7,894 3,634 13 - 11,541
Bettendorf, Iowa 6,489 3,378 7 - 9,874
Marquette, Iowa 2,462 965 4 - 3,431
Waterloo, Iowa 9,858 2,422 10 - 12,290
Iowa Total 18,809 6,765 21 - 25,595
Lake Charles, Louisiana 4,194 5,880 9 - 10,083
Lula, Mississippi 176 2,648 8 - 2,832
Natchez, Mississippi (1,335) 693 9 - (633)
Vicksburg, Mississippi 270 1,896 9 - 2,175
Mississippi Total (889) 5,237 26 - 4,374
Boonville, Missouri 10,987 2,063 12 - 13,062
Cape Girardeau, Missouri (1,910) 5,575 4 - 3,669
Caruthersville, Missouri 782 1,547 10 - 2,339
Kansas City, Missouri 5,400 1,937 8 - 7,345
Missouri Total 15,259 11,122 34 - 26,415
Nemacolin, Pennsylvania (8,024) 2,227 1 3,898 (1,898)
------ ----- --- ----- ------
Total Operating Properties 47,859 39,540 123 3,898 91,420
Corporate and Other (7,151) 784 2,505 (8,370) (12,232)
Total $40,708 $40,324 $2,628 $(4,472) $79,188
======= ======= ====== ======= =======
Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended Six Months Ended
------------------ ----------------
October 26, October 27, October 26, October 27,
2014 2013 2014 2013
---- ---- ---- ----
Income (loss) from continuing
operations $(1,021) $6,311 $(3,338) $663
Income tax provision 1,024 1,359 2,007 2,770
Derivative income - (168) - (398)
Interest income (92) (84) (179) (174)
Interest expense 21,114 15,193 42,443 37,847
Depreciation and amortization 19,610 20,522 39,253 40,324
Stock-based compensation 1,194 1,499 2,077 2,628
Colorado referendum costs (3) 3,044 - 4,057 -
Property tax settlements (3) (1,225) - (1,225) -
Severance expense (3) - - 2,259 -
Litigation accrual reversal (4) - (7,351) - (7,351)
Preopening expense - - - 3,898
Gain on sale of airplane - - - (1,019)
Adjusted EBITDA (1) $43,648 $37,281 $87,354 $79,188
======= ======= ======= =======
Isle of Capri Casinos, Inc.
Reconciliation of GAAP Income (Loss) From Continuing Operations to Adjusted Income (Loss) and
GAAP Income (Loss) From Continuing Operations Per Share to Adjusted Income (Loss) Per Share
(unaudited, in thousands)
Three Months Ended Six Months Ended
------------------ ----------------
October 26, October 27, October 26, October 27,
2014 2013 2014 2013
---- ---- ---- ----
GAAP income
(loss) from
continuing
operations $(1,021) $6,311 $(3,338) $663
Colorado
referendum
expense (3) 3,044 - 4,057 -
Property tax
settlement (3) (1,225) - (1,225) -
Severance
expense (3) - - 2,259 -
Litigation
accrual
reversal (4) - (14,730) - (14,730)
Preopening
expense - - - 3,898
Gain on sale of
corporate
aircraft - - - (1,019)
Adjusted income
(loss) (2) $798 $(8,419) $1,753 $(11,188)
==== ======= ====== ========
GAAP income
(loss) from
continuing
operations per
share $(0.03) $0.16 $(0.08) $0.02
Colorado
referendum
expense (3) 0.08 - 0.10 -
Property tax
settlement (3) (0.03) - (0.03)
Severance
expense (3) - - 0.06 -
Litigation
accrual
reversal (4) - (0.37) - (0.37)
Preopening
expense - - - 0.10
Gain on sale of
corporate
aircraft - - - (0.03)
Adjusted income
(loss) per
share (2) $0.02 $(0.21) $0.05 $(0.28)
===== ====== ===== ======
1. Adjusted EBITDA is "earnings before
interest and other non-operating
income (expense), income taxes, stock-
based compensation, certain severance
expenses, certain expenses related to
the Colorado gaming referendum,
certain property tax and legal
settlements, preopening expense,
certain asset sale gains 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
it is an important component in
evaluating the performance of
management and other operating
personnel in the determination of
certain components of employee
compensation. Adjusted EBITDA should
not be construed as an alternative to
operating income as an indicator of
the Company's operating performance,
as an alternative to cash flows from
operating activities as a measure of
liquidity or as an alternative to any
other measure determined in accordance
with U.S. generally accepted
accounting principles (GAAP). The
Company has significant uses of cash
flows, including capital expenditures,
interest payments, taxes and debt
principal repayments, which are not
reflected in Adjusted EBITDA. Also,
other gaming companies that report
Adjusted EBITDA information may
calculate Adjusted EBITDA in a
different manner than the Company. A
reconciliation of Adjusted EBITDA to
income (loss) from continuing
operations is included in the
financial schedules accompanying this
release.
Certain of our debt agreements use a
similar calculation of "Adjusted
EBITDA" as a financial measure for the
calculation of financial debt
covenants and includes add back of
items such as gain on early
extinguishment of debt, pre-opening
expenses, certain write-offs and
valuation expenses, and non-cash
stock compensation expense. Reference
can be made to the definition of
Adjusted EBITDA in the applicable debt
agreements on file as Exhibits to our
filings with the Securities and
Exchange Commission.
2. Adjusted income (loss) is presented
solely as a supplemental disclosure as
this is one method management reviews
and utilizes to analyze the
performance of its core operating
business. For many of the same
reasons mentioned above related to
Adjusted EBITDA, management believes
Adjusted income (loss) and Adjusted
income (loss) per share are useful
analytic tools as they enable
management to track the performance of
its core casino operating business
separate and apart from factors that
do not impact decisions affecting its
operating casino properties, such as
certain severance expenses, certain
expenses related to the Colorado
gaming referendum, certain property
tax and legal settlements, certain
asset sale gains and preopening
expenses. Management believes
Adjusted income (loss) and Adjusted
income (loss) per share are useful to
investors since these adjustments
provide a measure of financial
performance that more closely
resembles widely used measures of
performance and valuation in the
gaming industry. Adjusted income
(loss) and adjusted income (loss) per
share do not include certain severance
expenses, certain expenses related to
the Colorado gaming referendum,
certain property tax and legal
settlements, certain asset sale gains
and preopening expenses.
3. The Company incurred $3.0 million and
$4.1 million of expense during the
three months and six months ended
October 26, 2014, respectively,
related to the Colorado gaming
expansion referendum. The Company had
a favorable property tax settlement
related to our Waterloo property of
$1.2 million in during the three and
six months ended October 26, 2014.
The Company recorded $2.3 million of
severance expense during the six
months ended October 26, 2014, related
to restructuring at the corporate
office.
4. Litigation accrual reversals for the
three and six months ended October 27,
2013 includes a $7.3 million reduction
to operating expenses and a $7.4
million reduction of interest expense.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2015-second-quarter-results-300003018.html
SOURCE Isle of Capri Casinos, Inc.
