ISLE OF CAPRI CASINOS ST. LOUIS, Aug. 30, 2016 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the first quarter ended July 24, 2016 and other Company-related news.
Fiscal 2017 First Quarter Highlights
-- Diluted net income per share from continuing operations increased to
$0.25 per share from $0.21 in the prior year quarter.
-- Adjusted EBITDA decreased $1.3 million, or 2.5%, year over year.
-- Excluding our Lake Charles property, which the Company has agreed to
sell, Adjusted EBITDA increased slightly year over year.
-- Seven of 13 properties generated higher year-over-year Adjusted EBITDA
in the first quarter, five of which generated record first quarter
Adjusted EBITDA.
Consolidated Financial Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended
------------------
July 24, July 26,
2016 2015
---- ----
Net revenues $240.9 $246.9
Consolidated Adjusted EBITDA (1) 49.8 51.1
Income from continuing
operations 10.3 8.4
Loss from discontinued
operations 0.0 (5.3)
Net income 10.3 3.1
Diluted income per share from
continuing operations 0.25 0.21
Diluted loss per share from
discontinued operations 0.00 (0.13)
Diluted net income per share 0.25 0.08
Adjusted diluted net income per
share (2) 0.26 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."
Eric Hausler, the Company's chief executive officer, commented,
"We experienced softer year-over-year trends in May and June; however we saw a solid rebound in July. Despite the early quarter softness, we generated record first quarter Adjusted EBITDA at Pompano, Waterloo, Cape Girardeau, Caruthersville and Vicksburg, which was offset by lower results in Black Hawk and Lake Charles.
"We remain focused on driving increased profitability from our existing operations and effectively managing our corporate costs. Excluding Lake Charles, Adjusted EBITDA increased $0.2 million and Adjusted EBITDA margin increased 40 bps.
"We continue to reinvigorate our properties through prudent capital investments to enhance the guest experience. During the quarter, we began renovating the Kansas City buffet and expect to start renovating the Black Hawk buffet in the second quarter, among other projects.
"On June 24, our land-based facility in Bettendorf opened to the public and has been well received. The property opened on time at a cost slightly under our previously announced $60 million budget. Bettendorf's Adjusted EBITDA increased 10.5% during the first quarter year over year, despite the property being closed for almost a week in June for the transition.
"We continued to execute on a variety of other strategic initiatives which we believe enhance shareholder value. Most notably, on August 22 we announced that we have signed a definitive agreement to sell our Lake Charles property for $134.5 million. On a pro forma basis, we expect the transaction will be accretive to Adjusted EBITDA margins and deleveraging. Beginning with the fiscal 2017 second fiscal quarter, we will reflect Lake Charles in discontinued operations in the consolidated income statements and as assets held for sale in the consolidated balance sheets.
"In late August, we launched LadyLuck(®).com--the essence of luck, fun and gaming--our social casino and merchandise site. Both offer our customers new and exciting channels to engage with our brand. We expect to further modify and enhance these experiences in the coming quarters."
Financial Highlights
Net revenues for the current quarter were $240.9 million compared to $246.9 million in the prior year quarter, down 2.5%.
Consolidated Adjusted EBITDA was $49.8 million for the quarter compared to $51.1 million in the prior year quarter, down 2.5%. Consolidated Adjusted EBITDA margins remained flat at 20.7%. Excluding Lake Charles, Adjusted EBITDA increased $0.2 million, or 0.4%, year over year, to $46.7 million during the quarter. Operating income decreased to $27.9 million from $29.6 million in the prior year quarter.
Interest expense was $16.6 million compared to $17.4 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 in the first quarter of fiscal 2016.
On a GAAP basis, diluted income per share from continuing operations was $0.25 compared to diluted income per share from continuing operations of $0.21 in the prior year's quarter.
In the first fiscal quarter of fiscal 2016, we recorded a loss on early extinguishment of debt of $3.0 million related to the tender and refinancing of our 7.75% Senior Notes due 2019.
Operating Results
(All comparisons are to the prior year quarter)
Black Hawk - Net revenues decreased $2.0 million, or 5.9%, to $32.4 million and Adjusted EBITDA decreased $2.1 million, or 19.5%, to $8.6 million, at our two casinos in Black Hawk. We have adjusted our marketing programming and cost structure going forward in order to enhance profitability.
Pompano - Net revenues decreased $1.3 million, or 3.1%, to $40.6 million, and Adjusted EBITDA increased 1.9%, to $7.9 million at Pompano Park. The property reported its highest Adjusted EBITDA for the first quarter since opening, despite lower net revenues as a result of rationalizing reinvestment rates and cost containment initiatives.
Iowa - Net revenues for our Iowa properties increased $0.6 million, or 1.2%, compared to prior year, and Adjusted EBITDA increased $0.7 million, to $13.5 million.
Despite construction disruption from our new land-based facility, net revenues increased $1.2 million and Adjusted EBITDA increased $0.5 million, or 10.5%, for the quarter year over year at our Bettendorf property.
Waterloo posted its highest first quarter Adjusted EBITDA since opening in June 2007. Adjusted EBITDA margins at the property improved 218 basis points and Adjusted EBITDA increased $0.4 million, or 6.0%, to $7.1 million.
Our property in Marquette was impacted by an increased competitive environment resulting in decreased net revenues of $0.4 million, to $6.5 million. Adjusted EBITDA declined $0.2 million, to $1.4 million.
Lake Charles - Our property in Lake Charles was negatively impacted by persistent rain and flooding in Texas as well as increased competition. For the quarter, net revenues decreased $3.1 million, to $28.7 million, or 9.7%, while Adjusted EBITDA decreased $1.5 million, to $3.1 million, or 31.9%. The quarter's results include fees and expenses of $0.3 million related to the announced sale transaction of the property.
Mississippi - Net revenues for Lula and Vicksburg decreased 1.2%, to $20.3 million while Adjusted EBITDA increased $0.1 million, to $5.0 million, or 2.0%.
Vicksburg's net revenues increased $0.7 million, or 8.9%, and Adjusted EBITDA increased $0.4 million, or 20.4%, to $2.3 million, as a result of changes in our marketing reinvestment strategy.
The Lula market continues to be negatively impacted by increased competition in the market. Net revenues at our Lula property decreased $0.9 million, to $12.0 million and Adjusted EBITDA decreased $0.3 million, or 9.4%.
Missouri - Net revenues for our Missouri properties increased $0.1 million, to $61.7 million and Adjusted EBITDA increased $1.0 million, to $17.8 million. Our Missouri properties continue to post strong results with Cape Girardeau and Caruthersville producing their highest first quarter Adjusted EBITDA since opening/acquisition while Boonville and Kansas City produced their second highest first quarter Adjusted EBITDA.
Cape Girardeau's net revenues increased $1.0 million, or 7.0%, and Adjusted EBITDA increased $0.9 million, or 33.2%. The property's Adjusted EBITDA margin improved 452 bps and the property generated nearly 90% flow-through on incremental revenues as it continues to ramp-up.
In Caruthersville, net revenues increased $0.4 million, Adjusted EBITDA improved by 8.6%, to $2.4 million, and Adjusted EBITDA margins improved nearly 100 bps primarily due to continued strategic marketing spending and capital investments we have made to the property.
Boonville continues to post the Company's highest Adjusted EBITDA margin, at 37.9% for the quarter. During the first quarter of fiscal 2017, net revenues decreased 3.2%, to $19.7 million and Adjusted EBITDA decreased 2.7%, to $7.5 million.
Kansas City reported its second highest first quarter Adjusted EBITDA, despite net revenues decreasing 3.3%, to $17.7 million. Adjusted EBITDA increased 3.7%, to $4.4 million. We began remodeling and rebranding the Kansas City buffet to a Farmer's Pick in late June which caused some construction disruption at the property. We expect to reopen the buffet at the end of the second quarter.
Pennsylvania - At Nemacolin, net revenues decreased 0.9%, to $9.7 million while Adjusted EBITDA decreased $0.1 million to a loss of $(0.1) million.
Corporate Expenses
Corporate and development expenses were $7.2 million for the quarter compared to $7.6 million in the first quarter of fiscal 2016.
Non-cash stock compensation expense was flat at $1.2 million for the first quarter of both fiscal 2017 and fiscal 2016.
Capital Structure and Capital Expenditures
As of July 24, 2016, the Company had:
-- $63.9 million in cash and cash equivalents, excluding $9.9 million in
restricted cash and investments;
-- $931.8 million in total debt; and
-- $215.0 million in net line of credit availability.
First quarter capital expenditures were $9.7 million, excluding spending related to the land-based project in Bettendorf. We spent $20.7 million in the first quarter of fiscal 2017 on the land-based project at Bettendorf. For the project through the end of the first quarter, we have expended $42.3 million. We expect to incur the remainder of the project cost in the second quarter of fiscal 2017.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, August 30, 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, August 30, 2016, until 11:59 pm central on Tuesday, September 6, 2016, by dialing 877-344-7529; International: 412-317-0088 and access number 10091663.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming and entertainment company dedicated to providing guests with an 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
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
------------------
July 24, July 26,
2016 2015
---- ----
Revenues:
Casino $256,268 $260,053
Rooms 8,069 8,115
Food, beverage, pari-mutuel and other 32,140 32,989
Gross revenues 296,477 301,157
Less promotional allowances (55,621) (54,233)
------- -------
Net revenues 240,856 246,924
Operating expenses:
Casino 38,048 38,713
Gaming taxes 65,102 66,359
Rooms 1,744 1,883
Food, beverage, pari-mutuel and other 10,975 12,122
Marine and facilities 13,346 14,106
Marketing and administrative 55,958 56,400
Corporate and development 7,202 7,643
Preopening expenses 597 -
Depreciation and amortization 20,009 20,051
Total operating expenses 212,981 217,277
------- -------
Operating income 27,875 29,647
Interest expense (16,593) (17,441)
Interest income 78 79
Loss on early extinguishment of debt - (2,966)
--- ------
Income from continuing operations before income
taxes 11,360 9,319
Income tax provision (1,046) (851)
------ ----
Income from continuing operations 10,314 8,468
Loss from discontinued operations, net of income
taxes - (5,324)
--- ------
Net income $10,314 $3,144
======= ======
Income (loss) per common share-basic:
Income from continuing operations $0.25 $0.21
Loss from discontinued operations, net of income
taxes - (0.13)
--- -----
Net income $0.25 $0.08
===== =====
Income (loss) per common share-dilutive:
Income from continuing operations $0.25 $0.21
Loss from discontinued operations,net of income
taxes - (0.13)
--- -----
Net income $0.25 $0.08
===== =====
Weighted average basic shares 41,263,363 40,580,806
Weighted average diluted shares 41,442,635 41,253,611
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
July 24, April 24,
2016 2016
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $63,928 $62,126
Marketable securities 19,847 19,338
Accounts receivable, net 11,183 13,252
Inventory 6,401 6,305
Prepaid expenses and other
assets 18,645 11,874
Total current assets 120,004 112,895
Property and equipment, net 908,023 899,167
Other assets:
Goodwill 108,970 108,970
Other intangible assets, net 53,026 53,236
Deferred financing costs,
net 3,309 3,777
Restricted cash and
investments 9,863 9,819
Prepaid deposits and other 5,025 5,216
Deferred income taxes 966 1,144
Total assets $1,209,186 $1,194,224
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-
term debt $81 $80
Accounts payable 27,959 29,723
Accrued liabilities:
Payroll and related 31,785 36,915
Property and other taxes 21,094 19,428
Income taxes payable 149 123
Interest 14,211 14,678
Progressive jackpots and
slot club awards 16,220 15,564
Other 23,310 21,036
Total current liabilities 134,809 137,547
Long-term debt, less
current maturities and net
deferred financing costs 921,345 911,688
Deferred income taxes 38,743 37,902
Other accrued liabilities 17,570 17,557
Other long-term liabilities 13,912 13,912
Stockholders' equity:
Preferred stock, $.01 par
value; 2,000,000 shares
authorized; none issued - -
Common stock, $.01 par
value; 60,000,000 shares
authorized; shares issued:
42,066,148 at July 24, 2016
and at April 24, 2016 421 421
Class B common stock, $.01
par value; 3,000,000 shares
authorized; none issued - -
Additional paid-in capital 238,105 244,472
Retained earnings (deficit) (145,384) (152,868)
-------- --------
93,142 92,025
Treasury stock,768,860 shares at July 24,
2016 and 1,300,955 shares at April 24,
2016
(10,335) (16,407)
------- -------
Total stockholders' equity 82,807 75,618
Total liabilities and
stockholders' equity $1,209,186 $1,194,224
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended
------------------
July 24, July 26,
2016 2015
---- ----
Colorado
Black Hawk $32,381 $34,406
Florida
Pompano 40,588 41,898
Iowa
Bettendorf 19,176 17,992
Marquette 6,487 6,871
Waterloo 21,818 22,043
Iowa Total 47,481 46,906
Louisiana
Lake Charles 28,723 31,825
Mississippi
Lula 12,021 12,947
Vicksburg 8,262 7,587
Mississippi Total 20,283 20,534
Missouri
Boonville 19,680 20,338
Cape Girardeau 15,488 14,481
Caruthersville 8,821 8,422
Kansas City 17,678 18,279
Missouri Total 61,667 61,520
Pennsylvania
Nemacolin 9,730 9,816
Property Net
Revenues before
Other 240,853 246,905
Other 3 19
--- ---
Net Revenues from
Continuing
Operations $240,856 $246,924
======== ========
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended July 24, 2016
--------------------------------
Operating Depreciation and Stock-Based Preopening Adjusted
Income (Loss) Amortization Compensation and Other EBITDA
------------ ------------ ------------ --------- ------
Black Hawk, Colorado $6,509 $2,110 $10 $ - $8,629
Pompano, Florida 6,079 1,812 10 - 7,901
Bettendorf, Iowa 1,613 2,696 9 597 4,915
Marquette, Iowa 1,085 316 7 - 1,408
Waterloo, Iowa 5,903 1,224 8 - 7,135
Iowa Total 8,601 4,236 24 597 13,458
Lake Charles, Louisiana 611 2,486 8 - 3,105
Lula, Mississippi 1,254 1,510 6 - 2,770
Vicksburg, Mississippi 1,365 900 7 - 2,272
Mississippi Total 2,619 2,410 13 - 5,042
Boonville, Missouri 6,210 1,246 9 - 7,465
Cape Girardeau, Missouri 981 2,564 7 - 3,552
Caruthersville, Missouri 1,672 686 4 - 2,362
Kansas City, Missouri 3,216 1,161 8 - 4,385
Missouri Total 12,079 5,657 28 - 17,764
Nemacolin, Pennsylvania (1,085) 959 - - (126)
------ --- --- --- ----
Total Operating Properties 35,413 19,670 93 597 55,773
Corporate and Other (7,538) 339 1,231 - (5,968)
Total $27,875 $20,009 $1,324 $597 $49,805
======= ======= ====== ==== =======
Three Months Ended July 26, 2015
--------------------------------
Operating Depreciation and Stock-Based Other Adjusted
Income (Loss) Amortization Compensation EBITDA
------------ ------------ ------------ ------
Black Hawk, Colorado $8,471 $2,239 $14 $ - $10,724
Pompano, Florida 5,842 1,899 14 - 7,755
Bettendorf, Iowa 2,173 2,265 10 - 4,448
Marquette, Iowa 1,240 361 6 - 1,607
Waterloo, Iowa 5,410 1,311 8 - 6,729
Iowa Total 8,823 3,937 24 - 12,784
Lake Charles, Louisiana 1,772 2,780 9 - 4,561
Lula, Mississippi 1,781 1,270 6 - 3,057
Vicksburg, Mississippi 988 892 7 - 1,887
Mississippi Total 2,769 2,162 13 - 4,944
Boonville, Missouri 6,629 1,029 12 - 7,670
Cape Girardeau, Missouri (221) 2,881 7 - 2,667
Caruthersville, Missouri 1,556 612 6 - 2,174
Kansas City, Missouri 3,229 991 9 - 4,229
Missouri Total 11,193 5,513 34 - 16,740
Nemacolin, Pennsylvania (1,141) 1,064 29 - (48)
------ ----- --- --- ---
Total Operating Properties 37,729 19,594 137 - 57,460
Corporate and Other (8,082) 457 1,224 - (6,401)
Total $29,647 $20,051 $1,361 $ - $51,059
======= ======= ====== =============== =======
Isle of Capri Casinos, Inc.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended
------------------
July 24, July 26,
2016 2015
---- ----
Income from continuing
operations $10,314 $8,468
Income tax provision (benefit) 1,046 851
Interest income (78) (79)
Interest expense 16,593 17,441
Depreciation and amortization 20,009 20,051
Stock-based compensation 1,324 1,361
Preopening expense (3) 597 -
Loss on early extinguishment of debt - 2,966
Adjusted EBITDA (1) $49,805 $51,059
======= =======
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
------------------
July 24, July 26,
2016 2015
---- ----
GAAP income from continuing operations $10,314 $8,468
Preopening expense (3) 597 -
Loss on early extinguishment of debt - 2,966
Adjusted income (2) $10,911 $11,434
======= =======
GAAP income from continuing operations per share $0.25 $0.21
Preopening expense (3) 0.01 -
Loss on early extinguishment of debt - 0.07
Adjusted income per share (2) $0.26 $0.28
===== =====
1. Adjusted EBITDA is "earnings from
continuing operations before
interest and other non-operating
income (expense), income taxes,
stock-based compensation,
preopening expenses 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 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 loss on early
extinguishment of debt 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 the loss on early
extinguishment of debt and
preopening expenses.
3. The Company had preopening expenses
of $0.6 million in the three months
ended July 24, 2016 related to the
Bettendorf land-based casino which
opened on June 24, 2016.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2017-first-quarter-results-300319696.html
SOURCE Isle of Capri Casinos, Inc.
