ISLE OF CAPRI CASINOS ST. LOUIS, Feb. 25, 2015 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the third quarter of fiscal year 2015 ended January 25, 2015, 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 Nine Months Ended
------------------ -----------------
January 25, January 26, January 25, January 26,
2015 2014 2015 2014
---- ---- ---- ----
Net revenues $241.1 $224.2 $721.6 $693.8
Consolidated
Adjusted EBITDA
(1) 47.2 37.0 134.6 116.2
Income from
continuing
operations 5.4 9.4 2.1 10.0
Income from
discontinued
operations - 1.3 - 3.8
Net income 5.4 10.7 2.1 13.8
Diluted income per
share from
continuing
operations 0.13 0.24 0.05 0.25
Diluted income per
share from
discontinued
operations - 0.03 - 0.10
Diluted income per
share 0.13 0.27 0.05 0.35
Adjusted income
(loss) per share
(2) 0.13 (0.12) 0.18 (0.41)
(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 from
Continuing Operations to Adjusted
Income (Loss) and GAAP Income from
Continuing Operations Per Share to
Adjusted Income (Loss) Per Share."
Virginia McDowell, the Company's president and chief executive officer, commented,
"Over the past 18 months, we implemented comprehensive operational changes to better align the returns on our marketing programs and costs of doing business. We did this all while driving higher customer satisfaction. We continued to realize the benefits of those initiatives this quarter as, for the fourth consecutive quarter, we reported a year-over-year increase in Adjusted EBITDA. Every one of our properties generated an increase in Adjusted EBITDA and all but one property generated higher net revenues.
"Although we benefited from better weather and macroeconomic trends during the quarter relative to last year's third quarter, Adjusted EBITDA for all but two of our properties exceeded results not only compared to the prior fiscal year quarter, but also compared to the prior two fiscal year quarters. Three of our most profitable properties--Pompano, Boonville and Waterloo--set new third quarter records for Adjusted EBITDA, while Lake Charles reported the highest third quarter Adjusted EBITDA in the past three years, despite a new competitor being open for more than half the quarter.
"We are cautiously optimistic about the trends we are seeing in regional gaming, but regardless of the outlook, I am confident that the changes we are continuing to make in our business position us well in any operating environment."
Financial Highlights
Net revenues for the third quarter were up 7.5%, to $241.1 million, compared to $224.2 million in the prior year quarter, and consolidated Adjusted EBITDA increased 27.6%, to $47.2 million from $37.0 million in the prior year quarter. Adjusted EBITDA margin was 19.6% compared to 16.5% in the prior year quarter.
There were no unusual items affecting this year's third quarter results; however, the prior year benefited from the reversal of a $2.2 million litigation accrual due to a favorable court ruling, and a $12.0 million reversal of a previously recorded tax valuation allowance as a result of the sale of our Davenport property.
On a GAAP basis, diluted income per share from continuing operations in the current quarter was $0.13, compared to $0.24 in the prior year quarter. Adjusted income per share from continuing operations in the current quarter was $0.13, compared to adjusted loss per share from continuing operations of ($0.12) in the prior year quarter.
Operating Results
Black Hawk - Net revenues increased $1.2 million, or 4.1%, to $29.5 million at our two properties. Adjusted EBITDA was flat primarily as a result of additional marketing costs resulting from the first full quarter of Fan Club since its introduction.
Pompano - Net revenues increased $4.1 million, or 9.7%, to $46.5 million and Adjusted EBITDA increased $1.4 million, or 15.8%, to $10.6 million. We generated strong increases in both rated and retail revenue during the quarter. Operating margins improved to 22.8% from 21.6%.
Iowa - Net revenues increased $2.5 million, or 6.1%, to $43.9 million and Adjusted EBITDA increased $1.7 million, or 16.6%, to $11.9 million. Waterloo set a new third quarter Adjusted EBITDA record while Marquette generated the highest third quarter Adjusted EBITDA since fiscal 2007. Bettendorf's Adjusted EBITDA increased 18.3% despite continued competition from VLTs in Illinois.
Lake Charles - Net revenues increased $0.9 million, or 3.0%, to $30.8 million, and Adjusted EBITDA increased $0.7 million, or 18.0%, to $4.4 million. The property benefited from a strong November, which drove results for the quarter. A new competitor opened in the market on December 8, 2014. Following the opening of the new property in Lake Charles and through the end of the third quarter, net revenues were relatively flat, while Adjusted EBITDA declined in the mid-single digits as we incurred additional overtime costs due to better-than-expected business volumes and higher marketing costs.
Mississippi -Net revenues increased $1.7 million, or 7.5%, to $24.6 million at our Mississippi properties. Adjusted EBITDA increased $2.0 million, or 97.3%, to $4.1 million. All three properties in Mississippi generated better Adjusted EBITDA results year over year. Lula continued its strong year-over-year performance with net revenue growth of $1.4 million, or 12.3%, and an Adjusted EBITDA increase of $1.5 million, or 97.6%, as it continues to benefit from refined marketing programs.
Missouri - Net revenues increased $4.6 million, or 8.7%, to $57.6 million and Adjusted EBITDA increased $2.4 million, or 18.5%, to $15.2 million. All four of our Missouri properties generated increased net revenues and Adjusted EBITDA during the quarter led by Adjusted EBITDA growth of 76.8% in Caruthersville and 49.3% at Cape Girardeau. Boonville set a new third quarter Adjusted EBITDA record with an increase of 5.3%, and Kansas City's Adjusted EBITDA increased 9.8%.
Pennsylvania -Net revenues increased $2.0 million, or 32.2%, to $8.0 million at our property at the Nemacolin Woodlands Resort. Adjusted EBITDA increased $1.0 million, or 61.3%, to $(0.6) million.
Corporate Expenses
Corporate and development expenses were $5.9 million for the quarter, a decrease of $1.4 million compared to the prior year due to our corporate realignment completed earlier in fiscal 2015 and continued focus on managing expenses.
Non-cash stock compensation expense was $0.6 million for the quarter compared to $0.8 million in the third quarter of fiscal 2014.
Capital Structure, Capital Expenditures and Updated Guidance
As of January 25, 2015, the Company had:
-- $67.1 million in cash and cash equivalents, excluding $9.2 million in
restricted cash and investments;
-- $1.0 billion in total debt; and
-- $273 million in net line of credit availability.
Third quarter capital expenditures were $11.3 million, bringing total capital expenditures to $30.0 million for the first nine months of fiscal 2015. The Company expects to incur approximately $15 million to $18 million in capital expenditures in the fourth quarter of fiscal 2015.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Wednesday, February 25, 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 412-902-4263. The conference call will be recorded and available for review starting at 11:59 pm central on Wednesday, February 25, 2015, until 11:59 pm central on Wednesday, March 11, 2015, by dialing 877-344-7529; International: 412-317-0088 and access number 10061134.
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 Nine Months Ended
------------------ -----------------
January 25, January 26, January 25, January 26,
2015 2014 2015 2014
---- ---- ---- ----
Revenues:
Casino $256,842 $235,843 $767,359 $733,185
Rooms 6,991 6,933 23,777 24,560
Food, beverage, pari-mutuel
and other 34,281 32,404 102,839 99,123
Gross revenues 298,114 275,180 893,975 856,868
Less promotional allowances (57,050) (50,990) (172,345) (163,044)
------- ------- -------- --------
Net revenues 241,064 224,190 721,630 693,824
Operating expenses:
Casino 40,344 38,354 120,747 118,414
Gaming taxes 66,182 60,324 195,052 185,454
Rooms 1,371 1,448 5,123 5,221
Food, beverage, pari-mutuel
and other 11,121 10,608 33,167 31,724
Marine and facilities 14,111 13,967 43,318 42,969
Marketing and administrative 55,485 56,120 175,704 175,010
Corporate and development 5,880 7,230 21,763 21,314
Litigation accrual reversals - (1,979) - (9,330)
Preopening expense - - - 3,898
Depreciation and
amortization 19,528 20,171 58,781 60,495
Total operating expenses 214,022 206,243 653,655 635,169
------- ------- ------- -------
Operating income 27,042 17,947 67,975 58,655
Interest expense (20,927) (21,910) (63,370) (59,758)
Interest income 94 84 273 260
Derivative income - - - 398
--- --- --- ---
Loss from continuing operations before
income taxes 6,209 (3,879) 4,878 (445)
Income tax (provision)
benefit (786) 13,270 (2,793) 10,499
---- ------ ------ ------
Income from continuing
operations 5,423 9,391 2,085 10,054
Income from discontinued
operations, net of income
taxes - 1,266 - 3,778
--- ----- --- -----
Net income $5,423 $10,657 $2,085 $13,832
====== ======= ====== =======
Income per common share-basic:
Income from continuing
operations $0.14 $0.24 $0.05 $0.25
Income from discontinued operations,
net of income taxes - 0.03 - 0.10
--- ---- --- ----
Net income $0.14 $0.27 $0.05 $0.35
===== ===== ===== =====
Income per common share-dilutive:
Income from continuing
operations $0.13 $0.24 $0.05 $0.25
Income from discontinued operations,
net of income taxes - 0.03 - 0.10
--- ---- --- ----
Net income $0.13 $0.27 $0.05 $0.35
===== ===== ===== =====
Weighted average basic
shares 40,028,776 39,828,740 39,929,845 39,699,295
Weighted average diluted
shares 40,336,663 39,911,715 40,062,008 39,758,965
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
January 25, April 27,
2015 2014
---- ----
ASSETS (unaudited)
------
Current assets:
Cash and cash equivalents $67,140 $69,830
Marketable securities 27,999 27,289
Accounts receivable, net 11,824 12,615
Income taxes receivable 184 73
Deferred income taxes 3,898 4,106
Prepaid expenses and other
assets 21,770 18,526
Total current assets 132,815 132,439
Property and equipment, net 927,692 955,604
Other assets:
Goodwill 108,970 108,970
Other intangible assets, net 54,282 54,911
Deferred financing costs, net 20,080 23,439
Restricted cash and
investments 9,173 9,807
Prepaid deposits and other 4,816 4,904
Total assets $1,257,828 $1,290,074
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-
term debt $200 $230
Accounts payable 21,126 20,869
Accrued liabilities:
Payroll and related 36,051 34,700
Property and other taxes 20,107 20,360
Interest 19,631 16,920
Progressive jackpots and slot
club awards 16,181 16,306
Other 20,036 18,478
Total current liabilities 133,332 127,863
Long-term debt, less current
maturities 1,020,722 1,066,071
Deferred income taxes 38,413 35,870
Other accrued liabilities 18,661 18,495
Other long-term liabilities 22,489 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:
42,066,148at January 25, 2015
and April 27, 2014 421 421
Class B common stock, $.01
par value; 3,000,000 shares
authorized; none issued -
Additional paid-in capital 248,169 247,819
Retained earnings (deficit) (199,828) (201,913)
-------- --------
48,762 46,327
Treasury stock, 2,038,348 shares at January 25, 2015 and 2,236,971
shares
at April 27, 2014 (24,551) (26,943)
Total stockholders' equity 24,211 19,384
Total liabilities and
stockholders' equity $1,257,828 $1,290,074
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 25, January 26, January 25, January 26,
2015 2014 2015 2014
---- ---- ---- ----
Colorado
Black Hawk $29,523 $28,364 $93,942 $91,071
Florida
Pompano 46,485 42,360 120,942 116,146
Iowa
Bettendorf 16,754 16,008 54,561 54,438
Marquette 5,689 5,063 19,126 19,086
Waterloo 21,452 20,289 64,353 62,271
Iowa Total 43,895 41,360 138,040 135,795
------
Louisiana
Lake Charles 30,836 29,945 94,447 94,855
Mississippi
Lula 13,024 11,602 38,034 35,704
Natchez 4,659 4,664 13,871 14,786
Vicksburg 6,931 6,632 21,176 21,446
Mississippi Total 24,614 22,898 73,081 71,936
------
Missouri
Boonville 18,228 17,448 56,493 55,068
Cape Girardeau 14,267 12,959 43,436 39,817
Caruthersville 7,604 6,762 22,670 21,648
Kansas City 17,536 15,837 52,760 50,844
Missouri Total 57,635 53,006 175,359 167,377
------
Pennsylvania
Nemacolin 8,038 6,080 25,728 16,102
-----
Property Net Revenues
before Other 241,026 224,013 721,539 693,282
Other 38 177 91 542
--- --- --- ---
Net Revenues from
Continuing Operations $241,064 $224,190 $721,630 $693,824
======== ======== ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended January 25, 2015
-----------------------------------
Operating Income Depreciation and Stock-Based Preopening Adjusted
(Loss) Amortization Compensation and Other EBITDA
----- ------------ ------------ --------- ------
Black Hawk, Colorado $4,660 $2,257 $7 $ - $6,924
Pompano, Florida 8,786 1,793 7 - 10,586
Bettendorf 2,573 1,451 7 - 4,031
Marquette 685 365 3 - 1,053
Waterloo 5,544 1,236 5 - 6,785
Iowa Total 8,802 3,052 15 - 11,869
-----
Lake Charles,
Louisiana 1,696 2,740 5 - 4,441
Lula 1,748 1,276 5 - 3,029
Natchez (504) 281 5 - (218)
Vicksburg 364 901 4 - 1,269
Mississippi Total 1,608 2,458 14 - 4,080
-----
Boonville 5,588 971 2 - 6,561
Cape Girardeau 94 2,827 4 - 2,925
Caruthersville 1,036 595 3 - 1,634
Kansas City 3,126 961 8 - 4,095
Missouri Total 9,844 5,354 17 - 15,215
-----
Nemacolin,
Pennsylvania (2,005) 1,366 3 (636)
------ ----- --- ----
Total Operating
Properties 33,391 19,020 68 - 52,479
Corporate and Other (6,349) 508 597 (5,244)
Total $27,042 $19,528 $665 $ - $47,235
======= ======= ==== ===================== =======
Three Months Ended January 26, 2014
-----------------------------------
Operating Income Depreciation and Stock-Based Preopening Adjusted
(Loss) Amortization Compensation and Other EBITDA
----- ------------ ------------ --------- ------
Black Hawk, Colorado $4,515 $2,366 $8 $ - $6,889
Pompano, Florida 7,389 1,749 6 - 9,144
Bettendorf 1,850 1,555 3 - 3,408
Marquette 272 458 1 - 731
Waterloo 4,849 1,186 4 - 6,039
Iowa Total 6,971 3,199 8 - 10,178
-----
Lake Charles,
Louisiana 822 2,939 4 - 3,765
Lula 232 1,298 3 - 1,533
Natchez (665) 314 4 - (347)
Vicksburg (21) 899 4 - 882
Mississippi Total (454) 2,511 11 - 2,068
-----
Boonville 5,193 1,034 6 - 6,233
Cape Girardeau (828) 2,786 1 - 1,959
Caruthersville 200 720 4 - 924
Kansas City 2,800 924 4 - 3,728
Missouri Total 7,365 5,464 15 - 12,844
-----
Nemacolin,
Pennsylvania (3,202) 1,558 1 - (1,643)
------ ----- --- --- ------
Total Operating
Properties 23,406 19,786 53 - 43,245
Corporate and Other (5,459) 385 838 (1,979) (6,215)
Total $17,947 $20,171 $891 $(1,979) $37,030
======= ======= ==== ======= =======
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Nine Months Ended January 25, 2015
----------------------------------
Operating Income Depreciation and Stock-Based Preopening Adjusted
(Loss) Amortization Compensation and Other EBITDA
----- ------------ ------------ --------- ------
Black Hawk, Colorado $12,799 $6,907 $22 $4,057 $23,785
Pompano, Florida 18,114 5,267 20 - 23,401
Bettendorf 10,113 4,339 17 - 14,469
Marquette 2,844 1,223 8 - 4,075
Waterloo 17,485 3,711 14 (1,225) 19,985
Iowa Total 30,442 9,273 39 (1,225) 38,529
------
Lake Charles,
Louisiana 5,746 8,315 15 - 14,076
Lula 3,347 3,839 12 - 7,198
Natchez (2,045) 786 13 - (1,246)
Vicksburg 594 2,686 12 - 3,292
Mississippi Total 1,896 7,311 37 - 9,244
-----------------
Boonville 17,024 2,946 10 - 19,980
Cape Girardeau (843) 8,429 9 - 7,595
Caruthersville 2,542 1,892 10 - 4,444
Kansas City 8,935 2,870 19 - 11,824
Missouri Total 27,658 16,137 48 - 43,843
--------------
Nemacolin,
Pennsylvania (5,522) 4,085 7 - (1,430)
------ ----- --- --- ------
Total Operating
Properties 91,133 57,295 188 2,832 151,448
Corporate and Other (23,158) 1,486 2,554 2,259 (16,859)
Total $67,975 $58,781 $2,742 $5,091 $134,589
======= ======= ====== ====== ========
Nine Months Ended January 26, 2014
----------------------------------
Operating Income Depreciation and Stock-Based Preopening Adjusted
(Loss) Amortization Compensation and Other EBITDA
----- ------------ ------------ --------- ------
Black Hawk, Colorado $15,131 $7,041 $27 $ - $22,199
Pompano, Florida 15,283 5,383 19 - 20,685
Bettendorf 8,339 4,933 10 - 13,282
Marquette 2,734 1,423 5 - 4,162
Waterloo 14,707 3,608 14 - 18,329
Iowa Total 25,780 9,964 29 - 35,773
----------
Lake Charles,
Louisiana 5,016 8,819 13 - 13,848
Lula 408 3,946 11 - 4,365
Natchez (2,000) 1,007 13 - (980)
Vicksburg 249 2,795 13 - 3,057
Mississippi Total (1,343) 7,748 37 - 6,442
-----------------
Boonville 16,180 3,097 18 - 19,295
Cape Girardeau (2,738) 8,361 5 - 5,628
Caruthersville 982 2,267 14 - 3,263
Kansas City 8,200 2,861 12 - 11,073
Missouri Total 22,624 16,586 49 - 39,259
--------------
Nemacolin,
Pennsylvania (11,226) 3,785 2 3,898 (3,541)
------- ----- --- ----- ------
Total Operating
Properties 71,265 59,326 176 3,898 134,665
Corporate and Other (12,610) 1,169 3,343 (10,349) (18,447)
Total $58,655 $60,495 $3,519 $(6,451) $116,218
======= ======= ====== ======= ========
Isle of Capri Casinos, Inc.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 25, January 26, January 25, January 26,
2015 2014 2015 2014
---- ---- ---- ----
Income from continuing operations $5,423 $9,391 $2,085 $10,054
Income tax provision (benefit) 786 (13,270) 2,793 (10,499)
Derivative income - - - (398)
Interest income (94) (84) (273) (260)
Interest expense 20,927 21,910 63,370 59,758
Depreciation and amortization 19,528 20,171 58,781 60,495
Stock-based compensation 665 891 2,742 3,519
Severance charges - - 2,259 -
Colorado referendum costs - - 4,057 -
Property tax settlement - - (1,225) -
Litigation accrual reversal - (1,979) - (9,330)
Preopening expense - - - 3,898
Gain on sale of airplane - - (1,019)
Adjusted EBITDA (1) $47,235 $37,030 $134,589 $116,218
======= ======= ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of GAAP Income From Continuing Operations to Adjusted Income (Loss) and
GAAP Income From Continuing Operations Per Share to Adjusted Income (Loss) Per Share
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 25, January 26, January 25, January 26,
2015 2014 2015 2014
---- ---- ---- ----
GAAP income from
continuing
operations $5,423 $9,391 $2,085 $10,054
Colorado
referendum
expense (3) - - 4,057 -
Property tax
settlement (3) - - (1,225) -
Severance
expense (3) - - 2,259 -
Tax valuation
allowance
reversal - (11,993) - (11,993)
Litigation
accrual
reversals (4) - (2,223) - (16,953)
Preopening
expense - - - 3,898
Gain on sale of
corporate
aircraft - - - (1,019)
Adjusted income
(loss) (2) $5,423 $(4,825) $7,176 $(16,013)
====== ======= ====== ========
GAAP income from
continuing
operations per
share $0.13 $0.24 $0.05 $0.25
Colorado
referendum
expense (3) - - 0.10 -
Property tax
settlement (3) - - (0.03) -
Severance
expense (3) - - 0.06 -
Tax valuation
allowance
reversal - (0.30) - (0.30)
Litigation
accrual
reversals (4) - (0.06) - (0.43)
Preopening
expense - - - 0.10
Gain on sale of
corporate
aircraft - - - (0.03)
Adjusted income
(loss) per
share (2) $0.13 $(0.12) $0.18 $(0.41)
===== ====== ===== ======
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 $4.1 million of
expense during the nine months ended
January 25, 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 nine months ended January
25, 2015. The Company recorded $2.3
million of severance expense during
the nine months ended January 25,
2015, related to restructuring at the
corporate office.
4. Litigation accrual reversals for the
three months ended January 26, 2014
includes a $2.0 million reduction to
operating expenses and a $0.2 million
reduction of interest expense.
Litigation accrual reversals for the
nine months ended January 26, 2014,
includes a $9.3 million reduction to
operating expenses and a $7.6 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-third-quarter-results-300040788.html
SOURCE Isle of Capri Casinos, Inc.
