ISLE OF CAPRI CASINOS ST. LOUIS, June 9, 2015 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the fourth quarter and fiscal year ended April 26, 2015.
2015 Fourth Quarter and Fiscal Year Highlights
-- Fourth quarter Adjusted EBITDA increased 14.8% to $65.6 million year
over year.
-- Fiscal 2015 Adjusted EBITDA increased 15.5% to $200.2 million year over
year.
-- Fiscal 2015 Adjusted EBITDA margin exceeded 20%, up 193 bps year over
year.
-- Reduced debt by $73 million in fiscal 2015 to below $1 billion for the
first time since 2000.
-- Debt to Adjusted EBITDA ratio is below 5x at the end of fiscal 2015.
Consolidated Financial 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 26, April 27, April 26, April 27,
2015 2014 2015 2014
---- ---- ---- ----
Net revenues $274.6 $260.8 $996.3 $954.6
Consolidated
Adjusted EBITDA
(1) 65.6 57.2 200.2 173.4
Income (loss)
from continuing
operations 3.1 (139.7) 5.2 (129.7)
Income (loss)
from
discontinued
operations - (1.8) - 2.0
Net income (loss) 3.1 (141.5) 5.2 (127.7)
Diluted income
(loss) per share
from continuing
operations 0.08 (3.51) 0.13 (3.26)
Diluted income
(loss) per
share from
discontinued
operations - (0.04) - 0.05
Diluted income
(loss) per share 0.08 (3.55) 0.13 (3.21)
Adjusted income
(loss) per share
(2) 0.58 0.34 0.76 (0.06)
(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."
Commenting on the results of the quarter and fiscal year, Virginia McDowell, the Company's president and chief executive officer said: "Fiscal 2015 was a year of many accomplishments. During the year, we continued to focus on building a better operating company with a prudently leveraged balance sheet."
"Adjusted EBITDA increased 14.8% year over year in our fiscal 2015 fourth quarter, marking the fifth consecutive quarter with an increase in Adjusted EBITDA, and our third consecutive quarter with a double-digit, year-over-year change in Adjusted EBITDA. The early part of the quarter experienced more favorable weather than the prior year; while we also continued to benefit from the substantial changes we made to our operating model over the past 18 months."
"With fiscal 2015 behind us, we are focused on fiscal 2016 and beyond. We continue to differentiate ourselves with friendly and excellent customer service. We are prudently investing in our properties by renovating hotel rooms and food and beverage outlets and improving our casino floors with new products. We broke ground on our land-based development at Bettendorf which we expect to open in early fiscal 2017. We continue to optimize our marketing programs and are introducing new productivity tools in fiscal 2016 across the enterprise. Finally we will remain vigilant about our cost structure and we will continue to manage our capital structure to maximize free cash flow, deleverage our balance sheet and lower our cost of capital."
Financial Highlights
Net revenues for the quarter increased 5.3% to $274.6 million and consolidated Adjusted EBITDA increased from $57.2 million to $65.6 million, or 14.8%. Adjusted EBITDA margin was 23.9% for the quarter, relative to 21.9% in the year ago quarter. Adjusted income per share was $0.58 during the quarter, compared to $0.34 in the prior year. GAAP basis diluted income (loss) per share from continuing operations for the fiscal 2015 quarter was $0.08 compared to ($3.51) for the fourth quarter of the prior year, including non-cash valuation charges assessed during both periods.
For fiscal 2015, net revenues increased 4.4%, to $996.3 million, while Adjusted EBITDA increased 15.5%, to $200.2 million. Adjusted EBITDA margin for the year was 20.1% relative to 18.2% in fiscal 2014.
The following items impacted earnings from continuing operations during the fourth quarters of fiscal 2015 and 2014:
-- We recorded a loss on early extinguishment of debt of $13.8 million in
fiscal 2015 related to the tender and refinancing of our 7.75% Senior
Notes due 2019.
-- We recorded non-cash impairment charges of $9.0 million in fiscal 2015
and $162.1 million in fiscal 2014.
Fourth Quarter Operating Results
Black Hawk - Adjusted EBITDA at our two properties increased by $2.6 million, or 34.8%, to $10.1 million, on a revenue increase of $3.5 million, or 11.7%. The properties benefited from the rollout of Fan Club 2.0 during our fiscal third quarter, which resulted in more targeted marketing spend and gains in market share during the fourth quarter.
Pompano - Net revenues increased 12.4% to $54.6 million, Adjusted EBITDA increased 28.6% to $14.9 million, and operating margins increased 345 basis points to 27.2%. This growth was largely attributable to increased top-tier rated slot play, and continued enhancements in marketing programs.
Iowa - Net revenues for our three properties were up slightly to $48.5 million and Adjusted EBITDA increased slightly to $14.1 million. Adjusted EBITDA increases of 33.1% and 1.8% at Marquette and Waterloo, respectively, were mostly offset by a 7.7% decline in Adjusted EBITDA at Bettendorf. The continued proliferation of VLTs in Illinois affected Bettendorf's results during the quarter, as well as the ongoing renovations of the South Tower hotel, which resulted in approximately 1/3 fewer rooms being available during the period. Additionally we sold Rhythm City during last year's fourth quarter. Following the sale, that property was closed for several days during the transition which benefited Bettendorf.
Lake Charles - Net revenues declined 3.1%, to $34.0 million, and Adjusted EBITDA declined 16.6%, to $5.7 million. Results were impacted during the quarter primarily by a decline in retail non-rated play at the property, likely due to the opening of a new competitor in December 2014 as well as increased marketing expenses to rated players. While revenue trends have remained solid since the opening of the new competitor, the property will continue to refine marketing programs in the coming months to appropriately match marketing expenses with revenue levels.
Mississippi - Net revenues for our three Mississippi properties increased 1.3% to $29.1 million and Adjusted EBITDA increased 32.5% to $7.8 million. All three properties reported increased Adjusted EBITDA year over year led by Vicksburg, up 28.1%, and Lula, which increased 27.1%. Vicksburg and Lula benefited from lower marketing and operating costs during the quarter.
Missouri - Net revenues for our four Missouri properties increased 5.4% to $65.6 million year over year, while Adjusted EBITDA increased 8.6% to $19.9 million. All four Missouri properties reported increased Adjusted EBITDA led by Cape Girardeau and Caruthersville which increased 22.2% and 23.8%, respectively. Boonville's Adjusted EBITDA increased 5.2% during the quarter, while Kansas City was up slightly.
Pennsylvania - Net revenues at our casino at Nemacolin Woodlands Resort were up 20.8%, to $9.0 million and Adjusted EBITDA was ($0.2) million relative to ($0.8) million in the prior year quarter. The property continues to see solid revenue growth trends which should benefit it into the peak season for the resort.
Corporate Expenses
Corporate and other expenses were $7.3 million for the quarter, up from $7.1 million, largely as a result of increased incentive compensation accruals relative to the previous year's fourth quarter.
Non-cash stock compensation expense was $0.6 million for the quarter compared to $0.8 million in the fourth quarter of fiscal 2014. For the fiscal year, non-cash stock compensation expense was $3.2 million, compared to $4.2 million in fiscal 2014.
Capital Structure, Capital Expenditures and Updated Guidance
As of April 26, 2015, the Company had:
-- $66.4 million in cash and cash equivalents, excluding $9.2 million in
restricted cash and investments;
-- $992.9 million in total debt; and
-- $218.0 million in net line of credit availability.
Fourth quarter capital expenditures were $11.7 million. For the year our total capital expenditures were approximately $41.7 million.
On April 7, 2015 we announced a tender offer for our $300 million of 7.75% Senior Notes due 2019. Approximately $237.8 million of the Notes were tendered. We funded the tender with borrowings on our existing credit facility, cash on hand, and the issuance of a $150 million add-on to our 5.875% Senior Notes due 2021. Subsequent to the end of the quarter, on May 14, 2015, we called the remainder of the 2019 notes, funding approximately $62.2 million with additional borrowings on our revolving credit facility.
Development
On May 13, 2015 we broke ground on our land-based casino project in Bettendorf. The project will include converting the current three-level riverboat casino into a single-level land-based structure situated between the current North and South hotel towers and will also introduce several new food concepts to the property including a Farmer's Pick Buffet, an Otis & Henry's grab-and-go as well as a Lone Wolf bar and stage. Customers will also benefit from a new porte-cochere, with a grand new casino entrance and a consolidated hotel front desk. The project is expected to take 12-14 months to complete at a cost of up to $60 million and open in the first half of fiscal 2017. We expect to fund the construction using cash from operations.
For fiscal 2016 we provide guidance for the following specific non-operating items:
-- Depreciation and amortization expense is expected to be approximately
$85 million to $87 million, inclusive of approximately $5 million in
accelerated depreciation related to the existing riverboat at
Bettendorf.
-- Interest expense is expected to be approximately $69 million to $71
million.
-- The Company expects cash income taxes pertaining to fiscal 2016
operations to be less than $1 million, primarily state income taxes.
-- Corporate and development expenses for fiscal 2016 are expected to be
approximately $28 million to $30 million, including approximately $5
million in non-cash stock compensation expense.
-- Maintenance capital expenditures for fiscal 2016 are expected to be
approximately $40 million.
-- We also expect to spend approximately $15 million on smaller projects
and renovation capital. These include ongoing hotel room renovations at
the South Tower in Bettendorf, a hotel room renovation at Boonville, as
well as various restaurant renovations across the portfolio.
-- We expect to spend approximately $45 million to $50 million on the
land-based project at Bettendorf during fiscal 2016.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, June 9, 2015 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 412-317-6011. The conference call will be recorded and available for review starting at 11:59 pm central on Tuesday, June 9, 2015, until 11:59 pm central on Tuesday, June 23, 2015, by dialing 877-344-7529; International: 412-317-0088 and access number 10066537.
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 Twelve Months Ended
------------------ -------------------
April 26, April 27, April 26, April 27,
2015 2014 2015 2014
---- ---- ---- ----
Revenues:
Casino $287,567 $271,070 $1,054,926 $1,004,255
Rooms 7,788 7,889 31,565 32,449
Food, beverage, pari-
mutuel and other 36,977 36,182 139,816 135,305
------ ------ ------- -------
Gross revenues 332,332 315,141 1,226,307 1,172,009
Less promotional allowances (57,684) (54,365) (230,029) (217,409)
------- ------- -------- --------
Net revenues 274,648 260,776 996,278 954,600
Operating expenses:
Casino 40,304 39,605 161,051 158,019
Gaming taxes 72,797 68,384 265,527 251,901
Rooms 1,650 1,802 6,773 7,023
Food, beverage, pari-
mutuel and other 14,053 13,239 49,542 46,900
Marine and facilities 14,826 14,655 58,144 57,624
Marketing and
administrative 58,767 59,680 234,471 234,690
Corporate and development 7,325 7,141 29,088 28,455
Valuation charges 9,000 162,100 9,000 162,100
Litigation accrual
reversals - - - (9,330)
Preopening expense - - - 3,898
Depreciation and
amortization 20,094 20,390 78,875 80,885
------ ------ ------ ------
Total operating expenses 238,816 386,996 892,471 1,022,165
------- ------- ------- ---------
Operating income (loss) 35,832 (126,220) 103,807 (67,565)
Interest expense (20,761) (21,584) (84,131) (81,342)
Interest income 96 89 369 349
Loss on early
extinguishment of debt (13,757) - (13,757) -
Derivative income - - 398
--- --- ---
Income (loss) from continuing operations
before income taxes
1,410 (147,715) 6,288 (148,160)
Income tax benefit
(provision) 1,682 7,995 (1,111) 18,494
----- ----- ------ ------
Income (loss) from
continuing operations 3,092 (139,720) 5,177 (129,666)
Income (loss) from discontinued operations, net of income
taxes
- (1,798) - 1,980
--- ------ --- -----
Net income (loss) $3,092 $(141,518) $5,177 $(127,686)
====== ========= ====== =========
Income (loss) per common share-basic:
Income (loss) from
continuing operations $0.08 $(3.51) $0.13 $(3.26)
Income (loss) from discontinued operations, net of income
taxes
- (0.04) - 0.05
--- ----- --- ----
Net income (loss) $0.08 $(3.55) $0.13 $(3.21)
===== ====== ===== ======
Income (loss) per common share-dilutive:
Income (loss) from
continuing operations $0.08 $(3.51) $0.13 $(3.26)
Income (loss) from discontinued operations, net of income
taxes
- (0.04) - 0.05
--- ----- --- ----
Net income (loss) $0.08 $(3.55) $0.13 $(3.21)
===== ====== ===== ======
Weighted average basic
shares 40,033,404 39,829,177 39,955,735 39,731,766
Weighted average diluted
shares 41,020,503 39,829,177 40,320,267 39,731,766
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
April 26, April 27,
2015 2014
---- ----
ASSETS (unaudited)
------
Current assets:
Cash and cash equivalents $66,437 $69,830
Marketable securities 19,517 27,289
Accounts receivable, net 11,171 12,615
Inventory 6,647 6,273
Income taxes receivable - 73
Deferred income taxes 4,626 4,106
Prepaid expenses and other
assets 11,274 12,253
------ ------
Total current assets 119,672 132,439
Property and equipment, net 912,036 955,604
Other assets:
Goodwill 108,970 108,970
Other intangible assets, net 54,073 54,911
Deferred financing costs,
net 19,075 23,439
Restricted cash and
investments 9,193 9,807
Prepaid deposits and other 4,743 4,904
----- -----
Total assets $1,227,762 $1,290,074
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-
term debt $170 $230
Accounts payable 19,690 20,869
Accrued liabilities:
Payroll and related 43,371 34,700
Property and other taxes 20,456 20,360
Income tax payable 125 -
Interest 15,350 16,920
Progressive jackpots and
slot club awards 16,123 16,306
Other 18,326 18,478
------ ------
Total current liabilities 133,611 127,863
Long-term debt, less
current maturities 992,712 1,066,071
Deferred income taxes 37,334 35,870
Other accrued liabilities 18,432 18,495
Other long-term liabilities 22,211 22,391
Stockholders' equity 23,462 - 19,384
------ ------
Total liabilities and
stockholders' equity $1,227,762 $1,290,074
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 26, April 27, April 26, April 27,
2015 2014 2015 2014
---- ---- ---- ----
Colorado
Black Hawk $33,780 $30,242 $127,722 $121,313
Florida
Pompano 54,646 48,631 175,588 164,777
Iowa
Bettendorf 18,420 19,257 72,981 73,695
Marquette 6,667 5,928 25,793 25,014
Waterloo 23,409 23,090 87,762 85,361
Iowa Total 48,496 48,275 186,536 184,070
Louisiana
Lake Charles 33,966 35,044 128,413 129,899
Mississippi
Lula 15,008 14,785 53,042 50,489
Natchez 5,362 5,404 19,233 20,190
Vicksburg 8,700 8,501 29,876 29,947
Mississippi Total 29,070 28,690 102,151 100,626
Missouri
Boonville 20,441 19,463 76,934 74,531
Cape Girardeau 16,192 15,016 59,628 54,833
Caruthersville 8,699 8,231 31,369 29,879
Kansas City 20,310 19,541 73,070 70,385
Missouri Total 65,642 62,251 241,001 229,628
Pennsylvania
Nemacolin 9,027 7,473 34,755 23,575
Property Net Revenues before Other 274,627 260,606 996,166 953,888
Other 21 170 112 712
--- --- --- ---
Net Revenues from Continuing
Operations $274,648 $260,776 $996,278 $954,600
======== ======== ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended April 26, 2015
---------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Valuation charges, Preopening and Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ --------------------------------------- ---------------
Black Hawk, Colorado $7,815 $2,286 $7 $ - $10,108
Pompano, Florida 13,008 1,864 6 - 14,878
Bettendorf 3,158 1,672 6 - 4,836
Marquette 1,216 366 3 - 1,585
Waterloo 6,416 1,267 4 - 7,687
Iowa Total 10,790 3,305 13 - 14,108
Lake Charles, Louisiana 2,904 2,754 6 - 5,664
Lula 3,283 1,274 4 - 4,561
Natchez (68) 290 4 - 226
Vicksburg 2,125 914 5 - 3,044
Mississippi Total 5,340 2,478 13 - 7,831
Boonville 6,754 1,014 2 - 7,770
Cape Girardeau 1,058 2,852 3 - 3,913
Caruthersville 1,804 605 2 - 2,411
Kansas City 4,729 1,053 8 - 5,790
Missouri Total 14,345 5,524 15 - 19,884
Nemacolin, Pennsylvania (10,557) 1,375 15 9,000 (167)
------- ----- --- ----- ----
Total Operating Properties 43,645 19,586 75 9,000 72,306
Corporate and Other (7,813) 508 596 - (6,709)
Total $35,832 $20,094 $671 $9,000 $65,597
======= ======= ==== ====== =======
Three Months Ended April 27, 2014
---------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Valuation charges, Preopening and Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ --------------------------------------- ---------------
Black Hawk, Colorado $4,936 $2,552 $8 $ - $7,496
Pompano, Florida 9,833 1,726 6 - 11,565
Bettendorf (56,212) 1,448 3 60,000 5,239
Marquette 738 452 1 - 1,191
Waterloo 6,367 1,183 4 - 7,554
Iowa Total (49,107) 3,083 8 60,000 13,984
Lake Charles, Louisiana (20,366) 2,919 4 24,238 6,795
Lula (33,693) 1,279 3 36,000 3,589
Natchez (10,865) 299 4 10,509 (53)
Vicksburg (3,531) 903 4 5,000 2,376
Mississippi Total (48,089) 2,481 11 51,509 5,912
Boonville 6,403 977 6 - 7,386
Cape Girardeau 379 2,822 1 - 3,202
Caruthersville 1,250 693 4 - 1,947
Kansas City 4,822 941 4 - 5,767
Missouri Total 12,854 5,433 15 - 18,302
Nemacolin, Pennsylvania (28,767) 1,655 1 26,353 (758)
------- ----- --- ------ ----
Total Operating Properties (118,706) 19,849 53 162,100 63,296
Corporate and Other (7,514) 541 827 - (6,146)
Total $(126,220) $20,390 $880 $162,100 $57,150
========= ======= ==== ======== =======
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Twelve Months Ended April 26, 2015
----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Valuation charges, Preopening and Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ --------------------------------------- ---------------
Black Hawk, Colorado $20,614 $9,193 $29 $4,057 $33,893
Pompano, Florida 31,122 7,131 26 - 38,279
Bettendorf 13,271 6,011 23 - 19,305
Marquette 4,060 1,589 11 - 5,660
Waterloo 23,901 4,978 18 (1,225) 27,672
Iowa Total 41,232 12,578 52 (1,225) 52,637
Lake Charles, Louisiana 8,650 11,069 21 - 19,740
Lula 6,630 5,113 16 - 11,759
Natchez (2,113) 1,076 17 - (1,020)
Vicksburg 2,719 3,600 17 - 6,336
Mississippi
Total 7,236 9,789 50 - 17,075
------------
Boonville 23,778 3,960 12 - 27,750
Cape Girardeau 215 11,281 12 - 11,508
Caruthersville 4,346 2,497 12 - 6,855
Kansas City 13,664 3,923 27 - 17,614
Missouri
Total 42,003 21,661 63 - 63,727
---------
Nemacolin, Pennsylvania (16,079) 5,460 22 9,000 (1,597)
------- ----- --- ----- ------
Total Operating Properties 134,778 76,881 263 11,832 223,754
Corporate and Other (30,971) 1,994 3,150 2,259 (23,568)
Total $103,807 $78,875 $3,413 $14,091 $200,186
======== ======= ====== ======= ========
Twelve Months Ended April 27, 2014
----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Valuation charges, Preopening and Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ --------------------------------------- ---------------
Black Hawk, Colorado $20,067 $9,593 $35 $ - $29,695
Pompano, Florida 25,116 7,109 25 - 32,250
Bettendorf (47,873) 6,381 13 60,000 18,521
Marquette 3,472 1,875 6 - 5,353
Waterloo 21,074 4,791 18 - 25,883
Iowa Total (23,327) 13,047 37 60,000 49,757
Lake Charles, Louisiana (15,350) 11,738 17 24,238 20,643
Lula (33,285) 5,225 14 36,000 7,954
Natchez (12,865) 1,306 17 10,509 (1,033)
Vicksburg (3,282) 3,698 17 5,000 5,433
Mississippi
Total (49,432) 10,229 48 51,509 12,354
------------
Boonville 22,583 4,074 24 - 26,681
Cape Girardeau (2,359) 11,183 6 - 8,830
Caruthersville 2,232 2,960 18 - 5,210
Kansas City 13,022 3,802 16 - 16,840
Missouri
Total 35,478 22,019 64 - 57,561
---------
Nemacolin, Pennsylvania (39,993) 5,440 3 30,251 (4,299)
------- ----- --- ------ ------
Total Operating Properties (47,441) 79,175 229 165,998 197,961
Corporate and Other (20,124) 1,710 4,170 (10,349) (24,593)
Total $(67,565) $80,885 $4,399 $155,649 $173,368
======== ======= ====== ======== ========
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 26, April 27, April 26, April 27,
2015 2014 2015 2014
---- ---- ---- ----
Income (Loss) from continuing
operations $3,092 $(139,720) $5,177 $(129,666)
Income tax provision (benefit) (1,682) (7,995) 1,111 (18,494)
Derivative income - - - (398)
Loss on extinguishment of debt 13,757 - 13,757 -
Interest income (96) (89) (369) (349)
Interest expense 20,761 21,584 84,131 81,342
Depreciation and amortization 20,094 20,390 78,875 80,885
Stock-based compensation 671 880 3,413 4,399
Valuation charges 9,000 162,100 9,000 162,100
Severance charges - - 2,259 -
Colorado referendum charges - - 4,057 -
Property tax settlement - - (1,225) -
Litigation accrual reversal - - - (9,330)
Preopening expense - - - 3,898
Gain on sale of airplane - - - (1,019)
Adjusted EBITDA $65,597 $57,150 $200,186 $173,368
======= ======= ======== ========
Isle of Capri Casinos, Inc.
Reconciliations 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 Twelve Months Ended
------------------ -------------------
April 26, April 27, April 26, April 27,
2015 2014 2015 2014
---- ---- ---- ----
GAAP income (loss)
from continuing
operations $3,092 $(139,720) $5,177 $(129,666)
Valuation charges (5) 9,000 162,100 9,000 162,100
Loss on
extinguishment of
debt 13,757 - 13,757 -
Colorado referendum
expense (3) - - 4,057 -
Property tax
settlement (3) - - (1,225) -
Severance expense (3) - - 2,259 -
Tax valuation
allowance (reversal) (2,301) (1,813) (2,301) (13,806)
Uncertain tax benefit
reversal - (6,884) - (6,884)
Litigation accrual
reversals (4) - - - (16,953)
Preopening expense - - - 3,898
Gain on sale of
corporate aircraft - - - (1,019)
Adjusted income
(loss) (2) $23,548 $13,683 $30,724 $(2,330)
======= ======= ======= =======
GAAP income (loss)
from continuing
operations per share $0.08 $(3.51) $0.13 $(3.26)
Valuation charges (5) 0.22 4.07 0.22 4.08
Loss on
extinguishment of
debt 0.34 - 0.34 -
Colorado referendum
expense (3) - - 0.10 -
Property tax
settlement (3) - - (0.03) -
Severance expense (3) - - 0.06 -
Tax valuation
allowance (reversal) (0.06) (0.05) (0.06) (0.35)
Uncertain tax benefit
reversal - (0.17) - (0.17)
Litigation accrual
reversals (4) - - - (0.43)
Preopening expense - - - 0.10
Gain on sale of
corporate aircraft - - - (0.03)
Adjusted income
(loss) per share $0.58 $0.34 $0.76 $(0.06)
===== ===== ===== ======
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, valuation
charges, 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 charges, 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, valuation
charges, preopening expenses and
certain asset gains. 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 valuation charges, tax
valuation allowances, 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 $4.1 million of
expense during the twelve months
ended April 26, 2015 related to the
Colorado gaming expansion
referendum. The Company had a
favorable property tax settlement
related to our Waterloo property of
$1.2 million during the twelve
months ended April 26, 2015. The
Company recorded $2.3 million of
severance expense during the twelve
months ended April 26, 2015, related
to restructuring at the corporate
office.
4. Litigation accrual reversals for the
twelve months ended April 27, 2014
includes a $9.3 million reduction to
operating expenses and a $7.6
million reduction of interest
expense.
5. Valuation charges in the fourth
quarter and fiscal 2015 consist of
$9.0 million of impairment on the
Nemacolin property, plant and
equipment. Valuation charges in the
fourth quarter and fiscal 2014
consist of goodwill impairment
charges of $60.0 million at our
Bettendorf property, $24.2 million
at our Lake Charles property, $36.0
million at our Lula property, $8.6
million at our Natchez property and
$5.0 million at our Vicksburg
property. In addition, during the
fourth quarter of fiscal 2014, we
also recorded impairment charges
related to property, plant and
equipment, net of $14.2 million and
$1.9 million at our Nemacolin and
Natchez properties, respectively,
and $12.2 million related to
intangible assets at our Nemacolin
property.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2015-fourth-quarter-and-year-end-results-300096030.html
SOURCE Isle of Capri Casinos, Inc.
