Isle Of Capri Casinos, Inc. Announces Fiscal 2017 Second Quarter Results

Donnerstag, 01.12.2016 14:35 von

PR Newswire

ST. LOUIS, Dec. 1, 2016 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the second quarter ended October 23, 2016 and other Company-related news.

Fiscal 2017 Second Quarter Highlights 

  • Diluted net income per share from continuing operations increased to $0.54 per share from $0.14 in the prior year quarter.
  • Property Adjusted EBITDA increased 1.8% year over year, led by record second quarter results from the four Missouri properties and Waterloo.
  • Adjusted EBITDA at Bettendorf increased 26.2% year over year in its first full quarter of operating the new land-based gaming and entertainment facility.

Consolidated Financial Results

The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):


Three Months Ended


Six Months Ended


October 23,


October 25,


October 23,


October 25,


2016


2015


2016


2015

Net revenues

$        198.6


$        200.5


$        404.2


$        408.7

Consolidated Adjusted EBITDA (1)

42.9


43.3


88.2


88.1









Income from continuing operations

22.4


5.8


31.0


11.3

Income from discontinued operations

1.3


5.6


3.0


3.3

Net income

23.7


11.4


34.0


14.6









Diluted income per share from continuing operations

0.54


0.14


0.75


0.27

Diluted income per share from discontinued operations

0.03


0.14


0.07


0.08

Diluted net income per share

0.57


0.28


0.82


0.35

Adjusted diluted net income per share (2)

0.13


0.14


0.35


0.34



(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 grew Property Adjusted EBITDA and Adjusted EBITDA margins year over year during the second quarter.  In the first two months of the quarter, we experienced softer year-over-year trends; however, we saw a solid rebound in October, which has continued into the early part of our fiscal third quarter.   

"Property Adjusted EBITDA increased 1.8%, led by record quarterly Adjusted EBITDA results from our four Missouri properties and Waterloo, while Bettendorf generated strong initial results from its land-based facility, as Adjusted EBITDA increased 26.2% year over year. 

"Our Adjusted EBITDA was relatively flat year over year in the second quarter against a challenging comparison of a 9% increase in the prior year, as we had higher corporate expenses largely due to the impact of incremental legal expenses during the quarter. 

"The second quarter was the first full operating quarter for our new land-based casino and entertainment facility in Bettendorf.  We led the Quad Cities market in total gaming revenues in each of the months since the property opened.  While still early, we are pleased with the initial returns on our investment.  Customer reception to the land-based facility has been very positive. 

"During the quarter, we continued to reinvigorate our properties through prudent capital investments.  We expect to complete the previously announced buffet renovations at Kansas City and Black Hawk in early December.  We also completed the addition of new hotel furniture at Black Hawk, exterior painting and signage at Boonville and several other projects. 

"At the same time, we improved our balance sheet during the second quarter. Our debt balance is now below $900 million, as we reduced debt by $34.5 million during the second quarter.        

"During the quarter, we executed on a variety of other strategic initiatives which we believe significantly enhanced shareholder value.  Most notably, on September 19th we announced that we have signed a definitive agreement to sell all of the outstanding shares of stock of the Company to Eldorado Resorts, Inc. (NASDAQ: ERI) for approximately $950 million in cash and stock.  We believe this transaction, which will create a regional gaming company with significant scale, geographic diversity and free cash flow, provides our shareholders with both immediate value and the benefit from the potential upside expected from the significant operating synergies between these two companies.  We are working closely with the Eldorado team to plan a smooth transition, and expect the transaction to close in the second quarter of calendar 2017. 

"Subsequent to the announcement of the transaction with Eldorado, we announced that we have entered into a definitive agreement to sell Marquette to an affiliate of Casino Queen for approximately $40 million.  In combination with the previously announced $134.5 million sale of Lake Charles to Laguna Development Corporation, the replacement of the riverboat in Bettendorf, and other completed transactions, over 95% of our pro forma Adjusted EBITDA is now generated by land-based or barge-based casino operations compared to five years ago when over 30% of our EBITDA came from first-generation riverboats." 

Financial Highlights

The second quarter results reflect both Lake Charles and Marquette in discontinued operations and as assets held for sale for all periods presented. 

Net revenues for the current quarter were $198.6 million, compared to $200.5 million in the prior year quarter, down 0.9%. 

Consolidated Adjusted EBITDA was $42.9 million for the quarter compared to $43.3 million in the prior year quarter, down 0.9%.  Consolidated Adjusted EBITDA margins increased slightly to 21.6%.  Operating income decreased to $21.3 million from $23.7 million in the prior year quarter, as the current quarter contained $3.4 million of transaction costs related to the previously announced transaction with Eldorado Resorts, Inc.

Interest expense was $16.8 million compared to $17.0 million in the prior year quarter, as a result of our lower overall debt balance.

Our income tax benefit for the current quarter reflects the reversal of $19.6 million in tax valuation allowances as a result of the announced sale of Lake Charles and Marquette associated with their indefinite lived intangible assets becoming definite lived.

On a GAAP basis, diluted income per share from continuing operations was $0.54 compared to diluted income per share from continuing operations of $0.14 in the prior year's quarter.  Adjusted diluted net income per share was $0.13 during the current quarter compared to $0.14 in the prior year's quarter.

Operating Results

(All comparisons are to the prior year quarter)

Black Hawk – Net revenues decreased $1.9 million, or 5.7%, to $31.7 million and Adjusted EBITDA decreased $1.0 million, or 9.7%, to $9.0 million, at our two casinos in Black Hawk. The property was impacted by the closure of the buffet for renovation during the quarter and an increased competitive environment.

Pompano – Net revenues decreased $1.1 million, or 2.7%, to $37.5 million, and Adjusted EBITDA decreased 9.1%, to $6.6 million at Pompano Park.  We experienced a brief closure for Hurricane Matthew during the quarter which impacted operating results.  We also expensed approximately $0.3 million in costs related to the potential development of a new administration building, which we determined we would not move forward with during the quarter.  

Iowa – Net revenues for our Iowa properties increased $1.9 million, or 4.8%, compared to prior year, and Adjusted EBITDA increased $1.5 million, to $12.9 million.

The second quarter was the first full quarter of operations at our new land-based facility in Bettendorf.  Net revenues increased $2.5 million and Adjusted EBITDA increased $1.3 million, or 26.2%, for the quarter year over year at our Bettendorf property.  Adjusted EBITDA margins improved 290 bps to 29.0%, from a combination of higher revenues and the new more efficient facility.  We will continue to refine the operations during the coming quarters to optimize our ramp up of the new facility.

Waterloo posted its highest second quarter Adjusted EBITDA since opening in June 2007 as a result of a more efficient cost structure.  Adjusted EBITDA margins at the property improved 185 basis points and Adjusted EBITDA increased $0.2 million, or 3.1%, to $6.8 million.

Mississippi – Net revenues for Lula and Vicksburg decreased 3.4%, to $18.4 million while Adjusted EBITDA increased $0.1 million, to $4.0 million, or 1.8%. 

Vicksburg's net revenues increased $0.5 million, or 7.9%, and Adjusted EBITDA increased $0.5 million, or 37.1%, to $1.8 million.  The property has continued to benefit from changes in our marketing reinvestment strategy and the management team's strong focus on operational efficiency.

The Lula market continues to be negatively impacted by increased competition in the Arkansas market.  Net revenues at our Lula property decreased $1.2 million, to $11.0 million and Adjusted EBITDA decreased $0.4 million, or 15.4%.   

Missouri – Net revenues for our Missouri properties increased $0.3 million, to $59.9 million and Adjusted EBITDA increased $1.1 million, to $17.1 million.  Our Missouri properties continue to post strong results with all four producing their highest second quarter Adjusted EBITDA since opening/acquisition.

Cape Girardeau's net revenues increased $0.3 million, or 1.9%, and Adjusted EBITDA increased $0.5 million, to $3.6 million or 14.2%.  The property's Adjusted EBITDA margin improved 254 bps and the property generated 155% flow-through on incremental revenues.

Boonville continues to post the Company's highest Adjusted EBITDA margin, at 36.6% for the quarter.  During the second quarter of fiscal 2017, net revenues increased 2.7%, to $19.4 million and Adjusted EBITDA increased 3.6%, to $7.1 million, as the property benefited from recent hotel room renovations as well as more productive marketing reinvestment.

Kansas City reported record second quarter Adjusted EBITDA, despite net revenues decreasing 2.9%, to $17.0 million. Adjusted EBITDA increased 7.5%, to $4.2 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 in early December.

In Caruthersville, net revenues were flat at $8.2 million while Adjusted EBITDA improved by 4.6%, to $2.1 million, and Adjusted EBITDA margins improved 101 bps primarily due to continued strategic marketing spending and capital investments we have made to the property. 

Pennsylvania – At Nemacolin, net revenues decreased 6.2%, to $9.0 million while Adjusted EBITDA decreased $0.1 million to a loss of $(0.1) million.  The property was impacted by an increase in table games tax rates during the quarter, as well as an increase in state administrative fees.

Corporate Expenses

Corporate and development expenses were $8.3 million for the quarter compared to $7.0 million in the second quarter of fiscal 2016, largely as a result of higher legal fees of approximately $0.5 million related to ongoing litigation during the quarter.

Non-cash stock compensation expense was flat at $1.6 million for the second quarter of both fiscal 2017 and fiscal 2016. 

Capital Structure and Capital Expenditures

As of October 23, 2016, the Company had:

  • $53.9 million in cash and cash equivalents, excluding $32.0 million in restricted cash and investments;
  • $897.2 million in total debt; and
  • $249.4 million in net line of credit availability, the outstanding balance on the revolving credit facility was $42.3 million at quarter end, while leverage for bank purposes was 4.4x.

Second quarter capital expenditures were $10.0 million, excluding spending related to the land-based project in Bettendorf.  We spent $7.2 million in the second quarter of fiscal 2017 on the land-based project at Bettendorf.  For the project through the end of the second quarter, we have expended $51.6 million

Conference Call Information

Isle of Capri Casinos, Inc. will not be hosting a conference call this quarter.

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.

Additional Information

The information in this press release is not a substitute for the proxy statement/prospectus that Eldorado and Isle will file with the Securities and Exchange Commission ("SEC"), which will include a prospectus with respect to shares of Eldorado common stock to be issued in the merger and a proxy statement of each of Eldorado and Isle in connection with the mergers between Eldorado and Isle. The proxy statement/prospectus will be sent or given to the stockholders of Eldorado and Isle when it becomes available and will contain important information about the merger and related matters, including detailed risk factors. SECURITY HOLDERS OF ELDORADO AND ISLE ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGERS. The proxy statement/prospectus and other documents that will be filed with the SEC by Eldorado and Isle will be available without charge at the SEC's website, www.sec.gov, or by directing a request when such a filing is made to Isle of Capri Casinos, Inc. by mail at 600 Emerson Road, Suite 300, Saint Louis, Missouri 63141, Attention: Investor Relations, by telephone at (314) 813-9200, or by going to the Investors page on Isle's corporate website at www.islecorp.com. A final proxy statement or proxy statement/prospectus will be mailed to stockholders of Eldorado and Isle as of their respective record dates.

The information in this press release is neither an offer to sell nor the solicitation of an offer to sell, subscribe for or buy any securities, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This press release is also not a solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise. No offer of securities or solicitation will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Proxy Solicitation

Eldorado and Isle, and certain of their respective directors, executive officers and other members of management and employees may be deemed participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of Eldorado is set forth in the proxy statement for Eldorado's 2016 annual meeting of stockholders and Eldorado's 10-K for the year ended December 31, 2015. Information about the directors and executive officers of Isle is set forth in the proxy statement for Isle's 2016 annual meeting of shareholders and Isle's Form 10-K for the year ended April 24, 2016. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the prospectus/proxy statement for such proposed transactions when it becomes available.

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 Isle's financial condition, results of operations and expansion projects, is included in Isle's filings with the SEC, 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, http://www.islecorp.com

 

ISLE OF CAPRI CASINOS, INC. 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)







Three Months Ended


Six Months Ended



October 23, 


October 25,


October 23, 


October 25,



2016


2015


2016


2015


Revenues:









Casino

$    209,439


$    210,197


$    427,420


$    428,039


Rooms

5,897


5,624


11,614


11,235


Food, beverage, pari-mutuel and other

25,518


26,457


52,484


53,808


Gross revenues

240,854


242,278


491,518


493,082


Less promotional allowances

(42,292)


(41,824)


(87,310)


(84,400)


Net revenues

198,562


200,454


404,208


408,682


Operating expenses:









Casino

29,767


30,793


60,768


62,078


Gaming taxes

53,187


53,503


108,437


108,994


Rooms

1,526


1,516


2,880


2,938


Food, beverage, pari-mutuel and other

8,975


9,851


18,779


20,588


Marine and facilities

10,464


11,011


21,139


22,176


Marketing and administrative

44,169


45,220


90,546


92,160


Corporate and development

8,276


6,986


15,478


14,629


Preopening expenses

-


-


597


-


Transaction expenses

3,413


-


3,413


-


Depreciation and amortization

17,452


17,923


34,659


34,833


Total operating expenses

177,229


176,803


356,696


358,396


Operating income

21,333


23,651


47,512


50,286











Interest expense

(16,797)


(17,004)


(33,390)


(34,445)


Interest income

78


79


155


158


Loss on early extinguishment of debt

-


-


-


(2,966)


Income from continuing operations before 









income taxes

4,614


6,726


14,277


13,033


Income tax benefit (provision)

17,751


(892)


16,732


(1,743)


Income from continuing operations 

22,365


5,834


31,009


11,290


Income from discontinued operations,









net of income taxes

1,345


5,616


3,015


3,304


Net income 

$       23,710


$       11,450


$       34,024


$       14,594











Income per common share-basic:









Income from continuing operations

$           0.54


$           0.14


$           0.75


$           0.28


Income from discontinued operations, 









net of income taxes 

0.03


0.14


0.07


0.08


Net income 

$           0.57


$           0.28


$           0.82


$           0.36











Income per common share-dilutive:









Income from continuing operations

$           0.54


$           0.14


$           0.75


$           0.27


Income from discontinued operations, 









net of income taxes 

0.03


0.14


0.07


0.08


Net income  

$           0.57


$           0.28


$           0.82


$           0.35











Weighted average basic shares

41,311,259


40,697,797


41,287,311


40,639,301


Weighted average diluted shares

41,592,045


41,426,375


41,514,462


41,341,575











 

CONSOLIDATED BALANCE SHEETS 

(In thousands, except share and per share amounts) 

(Unaudited)


October 23,


April 24,


2016


2016

ASSETS




Current assets:




Cash and cash equivalents

$       53,927


$       62,126

Restricted cash

22,172


461

Marketable securities

19,023


19,338

Accounts receivable, net

9,677


12,484

Inventory

5,631


5,580

Prepaid expenses and other assets

13,907


10,545

Assets held for sale

138,671


2,361

Total current assets

263,008


112,895

Property and equipment, net

815,532


810,450

Other assets:




Goodwill

79,776


79,776

Other intangible assets, net

31,819


32,237

Deferred financing costs, net

2,842


3,777

Restricted cash and investments

9,869


9,819

Prepaid deposits and other

4,716


4,996

Deferred income taxes

794


1,144

Long-term assets held for sale

-


139,130

Total assets

$ 1,208,356


$ 1,194,224





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Current maturities of long-term debt

$              83


$              80

Accounts payable 

21,630


27,432

Accrued liabilities:




Payroll and related

31,992


34,743

Property and other taxes

21,063


18,814

Income taxes payable

50


123

Interest

14,485


14,678

Progressive jackpots and slot club awards

14,550


13,705

Deferred proceeds for assets held for sale

22,000


-

Other

24,878


20,646

Liabilities related to assets held for sale

8,347


7,326

Total current liabilities

159,078


137,547

Long-term debt, less current maturities and net deferred financing costs

887,399


911,688

Deferred income taxes

21,929


37,902

Other accrued liabilities

17,416


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 October 23, 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

239,540


244,472

Retained earnings (deficit)

(121,674)


(152,868)


118,287

-

92,025

Treasury stock,710,846 shares at October 23, 2016 and 1,300,955 shares 




at April 24, 2016

(9,665)


(16,407)

Total stockholders' equity

108,622

-

75,618

Total liabilities and stockholders' equity

$ 1,208,356


$ 1,194,224

 

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)














Three Months Ended


Six Months Ended




October 23,


October 25,


October 23,


October 25,




2016


2015


2016


2015

Colorado










Black Hawk


$     31,695


$     33,598


$     64,076


$     68,004











Florida










Pompano


37,473


38,526


78,061


80,424











Iowa










Bettendorf


20,993


18,478


40,169


36,470


Waterloo


20,969


21,558


42,787


43,601


Iowa Total


41,962


40,036


82,956


80,071











Mississippi










Lula


10,975


12,167


22,996


25,114


Vicksburg


7,458


6,913


15,720


14,500


Mississippi Total


18,433


19,080


38,716


39,614











Missouri










Boonville


19,377


18,865


39,057


39,203


Cape Girardeau


15,318


15,028


30,806


29,509


Caruthersville


8,237


8,194


17,058


16,616


Kansas City


16,982


17,485


34,660


35,764


Missouri Total


59,914


59,572


121,581


121,092











Pennsylvania










Nemacolin


9,027


9,625


18,757


19,441











Property Net Revenues before Other

198,504


200,437


404,147


408,646

Other


58


17


61


36

Net Revenues from Continuing Operations

$   198,562


$   200,454


$   404,208


$   408,682

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)














Three Months Ended October 23, 2016



Operating
Income (Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Other


Adjusted
EBITDA

Black Hawk, Colorado

$            6,586


$                 2,382


$                  6


$      -


$   8,974












Pompano, Florida

4,815


1,802


6


-


6,623












Bettendorf, Iowa

3,893


3,184


7


(997)


6,087

Waterloo, Iowa

5,604


1,235


7


-


6,846


Iowa Total

9,497


4,419


14


(997)


12,933












Lula, Mississippi

680


1,546


6


-


2,232

Vicksburg, Mississippi

843


899


8


-


1,750


Mississippi Total

1,523


2,445


14


-


3,982












Boonville, Missouri

5,880


1,211


6


-


7,097

Cape Girardeau, Missouri

1,040


2,576


7


-


3,623

Caruthersville, Missouri

1,506


617


2


-


2,125

Kansas City, Missouri

3,177


1,035


7


-


4,219


Missouri Total

11,603


5,439


22


-


17,064












Nemacolin, Pennsylvania

(790)


696


-


-


(94)

Total Operating Properties

33,234


17,183


62


(997)


49,482

Corporate and Other

(11,901)


269


1,625


3,413


(6,594)

Total

$           21,333


$               17,452


$            1,687


$ 2,416


$  42,888














Three Months Ended October 25, 2015



Operating Income (Loss)


Depreciation and Amortization


Stock-Based Compensation


Other


Adjusted EBITDA

Black Hawk, Colorado

$            7,765


$                 2,162


$                14


$      -


$   9,941












Pompano, Florida

4,713


2,558


14


-


7,285












Bettendorf, Iowa

2,125


2,690


7


-


4,822

Waterloo, Iowa

5,331


1,302


6


-


6,639


Iowa Total

7,456


3,992


13


-


11,461












Lula, Mississippi

1,339


1,294


4


-


2,637

Vicksburg, Mississippi

385


884


7


-


1,276


Mississippi Total

1,724


2,178


11


-


3,913












Boonville, Missouri

5,779


1,058


13


-


6,850

Cape Girardeau, Missouri

263


2,905


5


-


3,173

Caruthersville, Missouri

1,412


614


5


-


2,031

Kansas City, Missouri

2,963


954


6


-


3,923


Missouri Total

10,417


5,531


29


-


15,977












Nemacolin, Pennsylvania

(1,022)


1,068


1


-


47

Total Operating Properties

31,053


17,489


82


-


48,624

Corporate and Other

(7,402)


434


1,602


-


(5,366)

Total

$           23,651


$               17,923


$            1,684


$      -


$  43,258

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)














Six Months Ended October 23, 2016



Operating
Income (Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Preopening
and Other


Adjusted
EBITDA

Black Hawk, Colorado

$           13,095


$                 4,492


$                16


$                  -


$  17,603












Pompano, Florida

10,894


3,614


16


-


14,524












Bettendorf, Iowa

5,506


5,880


16


(400)


11,002

Waterloo, Iowa

11,507


2,459


15


-


13,981


Iowa Total

17,013


8,339


31


(400)


24,983












Lula, Mississippi

1,934


3,056


12


-


5,002

Vicksburg, Mississippi

2,208


1,799


15


-


4,022


Mississippi Total

4,142


4,855


27


-


9,024












Boonville, Missouri

12,090


2,457


15


-


14,562

Cape Girardeau, Missouri

2,021


5,140


14


-


7,175

Caruthersville, Missouri

3,178


1,303


6


-


4,487

Kansas City, Missouri

6,393


2,196


15


-


8,604


Missouri Total

23,682


11,096


50


-


34,828












Nemacolin, Pennsylvania

(1,875)


1,655


-


-


(220)

Total Operating Properties

66,951


34,051


140


(400)


100,742

Corporate and Other

(19,439)


608


2,856


3,413


(12,562)

Total

$           47,512


$               34,659


$            2,996


$             3,013


$  88,180














Six Months Ended October 25, 2015



Operating
Income (Loss)


Depreciation and
Amortization


Stock-Based
Compensation


Other


Adjusted
EBITDA

Black Hawk, Colorado

$           16,236


$                 4,401


$                28


$                  -


$  20,665












Pompano, Florida

10,555


4,457


28


-


15,040












Bettendorf, Iowa

4,298


4,955


17


-


9,270

Waterloo, Iowa

10,741


2,613


14


-


13,368


Iowa Total

15,039


7,568


31


-


22,638












Lula, Mississippi

3,120


2,564


10


-


5,694

Vicksburg, Mississippi

1,373


1,776


14


-


3,163


Mississippi Total

4,493


4,340


24


-


8,857












Boonville, Missouri

12,408


2,087


25


-


14,520

Cape Girardeau, Missouri

42


5,786


12


-


5,840

Caruthersville, Missouri

2,968


1,226


11


-


4,205

Kansas City, Missouri

6,192


1,945


15


-


8,152


Missouri Total

21,610


11,044


63


-


32,717












Nemacolin, Pennsylvania

(2,163)


2,132


30


-


(1)

Total Operating Properties

65,770


33,942


204


-


99,916

Corporate and Other

(15,484)


891


2,826


-


(11,767)

Total

$           50,286


$               34,833


$            3,030


$                  -


$  88,149

 

Isle of Capri Casinos, Inc.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(unaudited, in thousands)












Three Months Ended


Six Months Ended



October 23,


October 25,


October 23,


October 25,



2016


2015


2016


2015

Income from continuing operations

$     22,365


$       5,834


$     31,009


$     11,290


Income tax provision (benefit)

(17,751)


892


(16,732)


1,743


Interest income

(78)


(79)


(155)


(158)


Interest expense

16,797


17,004


33,390


34,445


Depreciation and amortization

17,452


17,923


34,659


34,833


Stock-based compensation

1,687


1,684


2,996


3,030


Transaction expense (3)

3,413


-


3,413


-


Gain on sale of Bettendorf vessel (4)

(997)


-


(997)


-


Preopening expense (4)

-


-


597


-


Loss on early extinguishment of debt

-


-


-


2,966

Adjusted EBITDA (1)

$     42,888


$     43,258


$     88,180


$     88,149










 

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


Six Months Ended


October 23,


October 25,


October 23,


October 25,


2016


2015


2016


2015









GAAP income from continuing operations

$     22,365


$        5,834


$     31,009


$     11,290

Transaction expenses (3)

3,413


-


3,413


-

Tax valuation allowance release

(19,552)


-


(19,552)


-

Gain on sale of Bettendorf vessel (4)

(997)


-


(997)


-

Preopening expense (4)

-


-


597


-

Loss on early extinguishment of debt

-


-


-


2,966

Adjusted income (2)

$        5,229


$        5,834


$     14,470


$     14,256

















GAAP income from continuing operations per share

$          0.54


$          0.14


$          0.75


$          0.27

Transaction expenses (3)

0.08


-


0.08


-

Tax valuation allowance release

(0.47)


-


(0.47)


-

Gain on sale of Bettendorf vessel (4)

(0.02)


-


(0.02)


-

Preopening expense (4)

-


-


0.01


-

Loss on early extinguishment of debt

-


-


-


0.07

Adjusted income per share (2)

$          0.13


$          0.14


$          0.35


$          0.34



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.

On September 19, 2016, the Company entered into an agreement and plan of merger with Eldorado Resorts, Inc., whereby Eldorado will acquire all of the outstanding shares of the Company.  During the three months ended October 23, 2016, the Company incurred $3.4 million in transaction expenses associated with this agreement.



4.

The Company had preopening expenses of $0.6 million in the six months ended October 23, 2016 related to the Bettendorf land-based casino which opened on June 24, 2016.  During the three months ended October 23, 2016, we sold the previous Bettendorf riverboat for a gain of $1.0 million.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2017-second-quarter-results-300370957.html

SOURCE Isle of Capri Casinos, Inc.