ISLE OF CAPRI CASINOS ST. LOUIS, Feb. 23, 2016 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the third quarter of fiscal year 2016 ended January 24, 2016 and other Company-related news.
Fiscal 2016 Third Quarter Highlights
-- Three properties set all-time third quarter Adjusted EBITDA records.
-- Adjusted property EBITDA margin was flat at 22.3% compared to the prior
year quarter.
-- Adjusted earnings per share from continuing operations increased to
$0.17 compared to $0.15 in the prior year quarter.
-- Maintained Debt to Adjusted EBITDA ratio of 4.5x and have repaid $69.1
million of debt during the last twelve months, including $6.8 million in
the most recent quarter.
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 24, January 25, January 24, January 25,
2016 2015 2016 2015
---- ---- ---- ----
Net revenues $230.5 $236.4 $713.7 $707.8
Consolidated
Adjusted EBITDA
(1) 45.9 47.5 145.4 135.8
Income from
continuing
operations 7.0 5.9 23.3 4.1
Loss from
discontinued
operations (0.4) (0.5) (2.1) (2.0)
Net income 6.6 5.4 21.2 2.1
Diluted income
per share from
continuing
operations 0.17 0.15 0.56 0.10
Diluted (loss)
per share from
discontinued
operations (0.01) (0.02) (0.05) (0.05)
Diluted net
income per share 0.16 0.13 0.51 0.05
Adjusted income
per share (2) 0.17 0.15 0.63 0.23
(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,
"We experienced more challenging weather comparisons at several properties and isolated competitive pressure at a few properties during the quarter which impacted results; however, win per visit and retail play increased during the quarter highlighting our underlying business trends remain solid.
Six properties generated increased Adjusted EBITDA this quarter, including three properties which set an all-time third quarter Adjusted EBITDA record. Additionally, four properties generated their second highest third quarter Adjusted EBITDA.
We continued our balanced approach to capital deployment--reinvesting into our existing assets to enhance our guest experience, while at the same time reducing our debt balance. Our balance sheet continues to be in the best shape it has been in over a decade and we have significant financial flexibility."
Financial Highlights
Net revenues for the current quarter were $230.5 million compared to $236.4 million in the prior year quarter, down 2.5%. We continued to focus on optimizing our reinvestment rates. Gross revenues declined 3.9%, which was partially a result of a 10% decline in promotional allowances during the quarter.
Consolidated Adjusted EBITDA was $45.9 million for the quarter compared to $47.5 million in the prior year quarter, down 3.2%. We experienced a negative $1.7 million change year-over-year in our health and captive company insurance expenses, which affected results. Consolidated Adjusted EBITDA margins decreased slightly to 19.9% from 20.1%.
Interest expense was $16.8 million relative to $20.9 million in the prior year quarter, as a result of our lower overall debt balance as well as the benefits of refinancing our 7.75% Senior Notes due 2019, completed early in the first quarter of fiscal 2016.
On a GAAP basis, diluted income per share from continuing operations was $0.17 compared to diluted income per share from continuing operations of $0.15 in the prior year's quarter. Net income per share was $0.16 for the quarter, compared to net income of $0.13 per share in the prior year quarter.
Operating Results
(All comparisons are to the prior year quarter)
Black Hawk - Net revenues decreased $0.4 million, or 1.3%, to $29.1 million and Adjusted EBITDA decreased $0.2 million to $6.7 million, at our two casinos in Black Hawk. The properties were unfavorably impacted by the timing of winter weather systems relative to the prior year's quarter.
Pompano - Net revenues decreased $2.4 million, or 5.1%, to $44.1 million, and Adjusted EBITDA decreased 9.0%, to $9.6 million at Pompano Park. The decline is attributable to fewer snow-bird trips year over year, an increased competitive environment and the closure of our popular Myron's Deli during the quarter for renovations. Despite the decline, Pompano generated the second highest third quarter Adjusted EBITDA since the property's opening in 2007.
Iowa - Net revenues for our Iowa properties decreased $0.2 million, to $43.7 million, while Adjusted EBITDA decreased $0.2 million, to $11.6 million. Despite construction disruption from our new land-based facility, revenues increased $0.1 million and Adjusted EBITDA increased $0.1 million at our property in Bettendorf.
Our properties in Waterloo and Marquette were more impacted by winter weather in the current year. Waterloo's net revenues decreased $0.1 million, or 0.6%, to $21.3 million and Adjusted EBITDA decreased $0.2 million to $6.5 million. If not for one-time severance expenses, Adjusted EBITDA at Waterloo would have been slightly higher than the prior year's all-time third quarter record.
Marquette's net revenues decreased $0.1 million, or 2.5%, and Adjusted EBITDA decreased less than $0.1 million to $1.0 million.
Lake Charles - Net revenues decreased $2.4 million, to $28.5 million, or 7.7%, while Adjusted EBITDA decreased $0.7 million, to $3.8 million, or 15.3%. The decline in EBITDA during the quarter happened entirely during November due primarily to the continued impact of a new competitor in the market, which anniversaried in early December. The months of December and January combined showed a slight increase in Adjusted EBITDA compared to the same periods in the prior year.
Mississippi - Net revenues for Lula and Vicksburg decreased 4.1%, to $19.1 million while Adjusted EBITDA decreased $0.3 million, to $4.0 million, or 7.8%. Both Lula and Vicksburg experienced some disruption and incurred some minor costs during the quarter from the near-record flooding on the Mississippi River in early January.
Vicksburg's Adjusted EBITDA increased 42.2%, to $1.8 million; the second highest third quarter Adjusted EBITDA since we purchased the property in June 2010. Vicksburg's operating margins increased over 590 bps as a result of targeted customer reinvestment and reduced operating costs.
Severe storms on Christmas weekend, including a tornado that disrupted the local area, impacted results in Lula where net revenues decreased $1.3 million, or 10.3%, and Adjusted EBITDA decreased $0.9 million, or 28.8%. The market in which Lula operates also remains highly competitive.
Missouri - Net revenues for our Missouri properties increased $0.6 million to $58.2 million and Adjusted EBITDA increased $0.9 million to $16.1 million. We grew net revenues and set new third quarter Adjusted EBITDA records at our Boonville, Cape Girardeau and Caruthersville properties.
In Caruthersville, net revenues increased $0.3 million and Adjusted EBITDA improved by 22.3%, to $2.0 million, primarily as a result of strategic marketing spending and recent capital investments we have made to the property.
Cape Girardeau's Adjusted EBITDA increased $0.6 million, or 18.8%. The property continues to ramp-up while optimizing its operating and marketing costs.
Boonville's net revenue and Adjusted EBITDA improved 1.2% and 1.0%, respectively, despite hotel renovations that were completed during the quarter. The property had over 1,500 room nights out of service during the quarter.
Kansas City reported their second highest third quarter Adjusted EBITDA, although net revenue and Adjusted EBITDA decreased 1.9% and 1.4% compared to the prior year quarter, respectively. Kansas City experienced some minor disruption from renovations to the casino floor during the quarter.
Pennsylvania - At Nemacolin, net revenues decreased 3.1% to $7.8 million while the Adjusted EBITDA loss improved to $(0.5) million from $(0.6) million. The property was impacted by winter storm Jonas on the last weekend of the quarter.
Corporate Expenses
Corporate and development expenses were $6.1 million for the quarter compared to $5.9 million in the third quarter of fiscal 2015. Non-cash stock compensation expense was $0.7 million for the quarter compared to $0.6 million in the third quarter of fiscal 2015. The current year quarter included a favorable forfeiture adjustment of stock compensation expense of $0.5 million.
Capital Structure and Capital Expenditures
As of January 24, 2016, the Company had:
-- $59.8 million in cash and cash equivalents, excluding $9.8 million in
restricted cash and investments;
-- $951.7 million in total debt; and
-- $195.2 million in net line of credit availability.
Capital expenditures were $52.7 million in the nine months ended January 24, 2016, including $44.3 million of maintenance and gaming equipment purchases as well as spending related to the hotel renovations in Bettendorf and Boonville. We have spent $8.4 million to date this fiscal year on the previously announced up to $60 million land-based project at Bettendorf. For the project-to-date, we have expended $10.6 million. The project remains on time and on budget.
The Company expects total capital expenditures for fiscal 2016 of approximately $85 million to $90 million, inclusive of approximately $25 million to $30 million of capital spending this fiscal year related to the land-based casino build out in Bettendorf.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, February 23, 2016 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, February 23, 2016, until 11:59 pm central on Tuesday, March 1, 2016, by dialing 877-344-7529; International: 412-317-0088 and access number 10081089.
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 14 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.
CONTACT:
Isle of Capri Casinos, Inc.,
Jill Alexander, Senior Director of Corporate Communication-314.813.9368
www.islecorp.com
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 24, January 25, January 24, January 25,
2016 2015 2016 2015
---- ---- ---- ----
Revenues:
Casino $242,028 $251,272 $751,142 $750,951
Rooms 6,360 6,711 22,250 22,918
Food, beverage, pari-
mutuel and other 31,885 33,661 96,329 100,874
Gross revenues 280,273 291,644 869,721 874,743
Less promotional allowances (49,733) (55,240) (155,996) (166,985)
------- ------- -------- --------
Net revenues 230,540 236,404 713,725 707,758
Operating expenses:
Casino 37,460 39,224 114,136 117,313
Gaming taxes 61,671 64,603 191,460 191,179
Rooms 1,455 1,334 5,221 4,975
Food, beverage, pari-
mutuel and other 11,977 12,041 35,196 35,008
Marine and facilities 12,901 13,609 40,923 41,679
Marketing and
administrative 53,764 52,921 164,417 167,826
Corporate and development 6,141 5,880 20,770 21,763
Depreciation and
amortization 20,492 19,247 61,649 57,995
Total operating expenses 205,861 208,859 633,772 637,738
------- ------- ------- -------
Operating income 24,679 27,545 79,953 70,020
Interest expense (16,836) (20,927) (51,281) (63,370)
Interest income 76 94 235 273
Loss on early
extinguishment of debt - - (2,966) -
--- --- ------ ---
Income from continuing operations before income taxes
7,919 6,712 25,941 6,923
Income tax provision (904) (786) (2,647) (2,793)
---- ---- ------ ------
Income from continuing
operations 7,015 5,926 23,294 4,130
Loss from discontinued operations,
net of income taxes (400) (503) (2,085) (2,045)
Net income $6,615 $5,423 $21,209 $2,085
====== ====== ======= ======
Income (loss) per common share-basic:
Income from continuing
operations $0.17 $0.15 $0.57 $0.10
Loss from discontinued operations,
net of income taxes (0.01) (0.01) (0.05) (0.05)
----- ----- ----- -----
Net income $0.16 $0.14 $0.52 $0.05
===== ===== ===== =====
Income (loss) per common share-dilutive:
Income from continuing
operations $0.17 $0.15 $0.56 $0.10
Loss from discontinued operations, net of income taxes
(0.01) (0.02) (0.05) (0.05)
----- ----- ----- -----
Net income $0.16 $0.13 $0.51 $0.05
===== ===== ===== =====
Weighted average basic
shares 40,730,065 40,028,776 40,669,556 39,929,845
Weighted average diluted
shares 41,444,564 40,336,663 41,417,021 40,062,008
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
January 24, April 26,
2016 2015
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $59,799 $66,437
Marketable securities 19,225 19,517
Accounts receivable, net 10,918 11,171
Inventory 6,461 6,509
Deferred income taxes 6,669 4,626
Prepaid expenses and other
assets 15,532 11,274
Assets held for sale - 138
Total current assets 118,604 119,672
Property and equipment, net 897,329 902,226
Other assets:
Goodwill 108,970 108,970
Other intangible assets, net 53,445 54,073
Deferred financing costs,
net 15,768 19,075
Restricted cash and
investments 9,769 9,193
Prepaid deposits and other 5,249 4,743
Long-term assets held for
sale - 9,810
Total assets $1,209,134 $1,227,762
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-
term debt $78 $170
Accounts payable 30,453 19,690
Accrued liabilities:
Payroll and related 33,282 43,371
Property and other taxes 19,275 20,456
Income taxes payable 67 125
Interest 14,320 15,350
Progressive jackpots and
slot club awards 15,353 16,123
Other 22,062 18,326
Total current liabilities 134,890 133,611
Long-term debt, less
current maturities 951,646 992,712
Deferred income taxes 41,951 37,334
Other accrued liabilities 17,461 18,432
Other long-term liabilities 13,912 22,211
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 January 24, 2016 and at April 26, 2015
421 421
Class B common stock, $.01
par value; 3,000,000 shares
authorized; none issued - -
Additional paid-in capital 243,353 241,899
Retained earnings (deficit) (177,863) (199,072)
-------- --------
65,911 - 43,248
Treasury stock, 1,319,219 shares at January 24, 2016 and 1,568,875
shares at April 26, 2015
(16,637) (19,786)
Total stockholders' equity 49,274 - 23,462
Total liabilities and
stockholders' equity $1,209,134 $1,227,762
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 24, January 25, January 24, January 25,
2016 2015 2016 2015
---- ---- ---- ----
Colorado
Black Hawk $29,138 $29,523 $97,142 $93,942
Florida
Pompano 44,108 46,485 124,532 120,942
Iowa
Bettendorf 16,812 16,754 53,282 54,561
Marquette 5,549 5,689 19,359 19,126
Waterloo 21,313 21,452 64,914 64,353
Iowa Total 43,674 43,895 137,555 138,040
Louisiana
Lake Charles 28,467 30,836 89,160 94,447
Mississippi
Lula 11,688 13,024 36,802 38,034
Vicksburg 7,448 6,930 21,948 21,175
Mississippi Total 19,136 19,954 58,750 59,209
Missouri
Boonville 18,438 18,228 57,641 56,493
Cape Girardeau 14,614 14,267 44,123 43,436
Caruthersville 7,952 7,604 24,568 22,670
Kansas City 17,204 17,536 52,968 52,760
Missouri Total 58,208 57,635 179,300 175,359
Pennsylvania
Nemacolin 7,788 8,038 27,229 25,728
Property Net Revenues before Other 230,519 236,366 713,668 707,667
Other 21 38 57 91
--- --- --- ---
Net Revenues from Continuing
Operations $230,540 $236,404 $713,725 $707,758
======== ======== ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended January 24, 2016
-----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ ----- ---------------
Black Hawk, Colorado $4,540 $2,188 $14 $ - $6,742
Pompano, Florida 7,837 1,785 14 - 9,636
Bettendorf, Iowa 1,180 2,902 8 - 4,090
Marquette, Iowa 619 363 6 - 988
Waterloo, Iowa 5,223 1,317 6 - 6,546
Iowa Total 7,022 4,582 20 - 11,624
----- ----- --- --- ------
Lake Charles, Louisiana 943 2,811 6 - 3,760
Lula, Mississippi 824 1,331 3 - 2,158
Vicksburg, Mississippi 895 903 6 - 1,804
Mississippi Total 1,719 2,234 9 - 3,962
----- ----- --- --- -----
Boonville, Missouri 5,347 1,269 13 - 6,629
Cape Girardeau, Missouri 942 2,527 7 - 3,476
Caruthersville, Missouri 1,378 614 6 - 1,998
Kansas City, Missouri 3,069 961 6 - 4,036
Missouri Total 10,736 5,371 32 - 16,139
------ ----- --- --- ------
Nemacolin, Pennsylvania (1,551) 1,074 - (477)
------ ----- --- ----
Total Operating Properties 31,246 20,045 95 - 51,386
Corporate and Other (6,567) 447 669 - (5,451)
Total $24,679 $20,492 $764 $ - $45,935
======= ======= ==== ==================== =======
Three Months Ended January 25, 2015
-----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ ----- ---------------
Black Hawk, Colorado $4,660 $2,257 $7 $ - $6,924
Pompano, Florida 8,786 1,793 7 - 10,586
Bettendorf, Iowa 2,573 1,451 7 - 4,031
Marquette, Iowa 685 365 3 - 1,053
Waterloo, Iowa 5,543 1,236 5 - 6,784
Iowa Total 8,801 3,052 15 - 11,868
----- ----- --- --- ------
Lake Charles, Louisiana 1,696 2,740 5 - 4,441
Lula, Mississippi 1,748 1,276 5 - 3,029
Vicksburg, Mississippi 364 901 4 - 1,269
Mississippi Total 2,112 2,177 9 - 4,298
----- ----- --- --- -----
Boonville, Missouri 5,588 971 2 - 6,561
Cape Girardeau, Missouri 94 2,827 4 - 2,925
Caruthersville, Missouri 1,036 595 3 - 1,634
Kansas City, Missouri 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 33,894 18,739 63 - 52,696
Corporate and Other (6,349) 508 597 - (5,244)
Total $27,545 $19,247 $660 $ - $47,452
======= ======= ==== ==================== =======
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Nine Months Ended January 24, 2016
----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ ----- ---------------
Black Hawk, Colorado $20,776 $6,589 $42 $ - $27,407
Pompano, Florida 18,392 6,242 42 - 24,676
Bettendorf, Iowa 5,478 7,857 25 - 13,360
Marquette, Iowa 3,157 1,101 18 - 4,276
Waterloo, Iowa 15,964 3,930 20 - 19,914
Iowa Total 24,599 12,888 63 - 37,550
------ ------ --- --- ------
Lake Charles, Louisiana 3,393 8,397 22 - 11,812
Lula, Mississippi 3,944 3,895 13 - 7,852
Vicksburg, Mississippi 2,268 2,679 20 - 4,967
Mississippi Total 6,212 6,574 33 - 12,819
----- ----- --- --- ------
Boonville, Missouri 17,755 3,356 38 - 21,149
Cape Girardeau, Missouri 984 8,313 19 - 9,316
Caruthersville, Missouri 4,346 1,840 17 - 6,203
Kansas City, Missouri 9,261 2,906 21 - 12,188
Missouri Total 32,346 16,415 95 - 48,856
------ ------ --- --- ------
Nemacolin, Pennsylvania (3,714) 3,206 30 - (478)
------ ----- --- --- ----
Total Operating Properties 102,004 60,311 327 - 162,642
Corporate and Other (22,051) 1,338 3,495 - (17,218)
Total $79,953 $61,649 $3,822 $ - $145,424
======= ======= ====== ==================== ========
Nine Months Ended January 25, 2015
----------------------------------
Operating Income (Loss) Depreciation and Amortization Stock-Based Compensation Other Adjusted EBITDA
---------------------- ----------------------------- ------------------------ ----- ---------------
Black Hawk, Colorado $12,799 $6,907 $22 $4,057 $23,785
Pompano, Florida 18,114 5,267 20 - 23,401
Bettendorf, Iowa 10,113 4,339 17 - 14,469
Marquette, Iowa 2,844 1,223 8 - 4,075
Waterloo, Iowa 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, Mississippi 3,347 3,839 12 - 7,198
Vicksburg, Mississippi 594 2,686 12 - 3,292
Mississippi Total 3,941 6,525 24 - 10,490
----- ----- --- --- ------
Boonville, Missouri 17,024 2,946 10 - 19,980
Cape Girardeau, Missouri (843) 8,429 9 - 7,595
Caruthersville, Missouri 2,542 1,892 10 - 4,444
Kansas City, Missouri 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 93,178 56,509 175 2,832 152,694
Corporate and Other (23,158) 1,486 2,554 2,259 (16,859)
Total $70,020 $57,995 $2,729 $5,091 $135,835
======= ======= ====== ====== ========
Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 24, January 25, January 24, January 25,
2016 2015 2016 2015
---- ---- ---- ----
Income (loss) from continuing
operations $7,015 $5,926 $23,294 $4,130
Income tax provision 904 786 2,647 2,793
Loss on extinguishment of debt - - 2,966 -
Interest income (76) (94) (235) (273)
Interest expense 16,836 20,927 51,281 63,370
Depreciation and amortization 20,492 19,247 61,649 57,995
Stock-based compensation 764 660 3,822 2,729
Colorado referendum expense (3) - - - 4,057
Property tax settlement (3) - - - (1,225)
Severance expense (3) - - - 2,259
Adjusted EBITDA (1) $45,935 $47,452 $145,424 $135,835
======= ======= ======== ========
Isle of Capri Casinos, Inc.
Reconciliation of GAAP Income From Continuing Operations to Adjusted Income and
GAAP Income From Continuing Operations Per Share to Adjusted Income Per Share
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
January 24, January 25, January 24, January 25,
2016 2015 2016 2015
---- ---- ---- ----
GAAP income from
continuing
operations $7,015 $5,926 $23,294 $4,130
Loss on early
extinguishment of
debt - - 2,966 -
Colorado referendum
expense (3) - - - 4,057
Property tax
settlement (3) - - - (1,225)
Severance expense (3) - - - 2,259
Adjusted income (2) $7,015 $5,926 $26,260 $9,221
====== ====== ======= ======
GAAP income from
continuing
operations per share $0.17 $0.15 $0.56 $0.10
Loss on early
extinguishment of
debt - - 0.07 -
Colorado referendum
expense (3) - - - 0.10
Property tax
settlement (3) - - - (0.03)
Severance expense (3) - - - 0.06
Adjusted income per
share (2) $0.17 $0.15 $0.63 $0.23
===== ===== ===== =====
1. Adjusted EBITDA is "earnings from
continuing operations 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
settlements 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, preopening
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 gain (loss) on
early extinguishment of debt,
certain severance expenses, certain
expenses related to the Colorado
gaming referendum and certain
property tax settlements.
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 the gain (loss) on early
extinguishment of debt, certain
severance expenses, certain expenses
related to the Colorado gaming
referendum and certain property tax.
3. The Company incurred $4.1 million of
expense during the nine months ended
January 24, 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 in during the nine
months ended January 24, 2015. The
Company recorded $2.3 million of
severance expense during the nine
months ended January 24, 2015,
related to restructuring at the
corporate office.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2016-third-quarter-results-300224186.html
SOURCE Isle of Capri Casinos, Inc.
