- Published: 02 June 2010
- Written by Editor
Isle of Capri Casinos, Inc. Announces Fiscal 2010 Fourth Quarter and Year End Results
Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the fourth quarter and fiscal year ended April 25, 2010, and other Company-related news.
In making the announcement, the Company pointed to a series of accomplishments during the quarter and past fiscal year. Specifically, the Company:
-- Nears completion of the acquisition of Rainbow Casino in Vicksburg, Mississippi;
-- Reduced property-level operating expenses by $12 million in fiscal year 2010, totaling over $32 million in cost reductions over the past two fiscal years;
-- Increased See. Say. Smile. customer satisfaction scores to 90%; an increase of 300 bps from 60% two years ago; and
-- Amended the leverage and interest coverage covenants of its senior credit facility.
James B. Perry, the Company's chairman and chief executive officer, said, "Our results show clearly that we have remained committed to our goal of fiscal responsibility through this difficult economic cycle. Preliminary data suggests that consumer spending may be beginning to slowly rebound and we are pleased that we have been able to re-engineer the costs associated with our business while consistently improving the guest experience across our portfolio. In addition to these efforts, we have continued to make every effort to improve our balance sheet, and are actively exploring options for deploying capital to maximize value for our shareholders, including possible acquisitions, greenfield developments and management opportunities in a variety of jurisdictions. As we look forward to completing the Rainbow acquisition as a component of our overall strategy, we will continue to fine-tune our operating model and evaluate potential opportunities with the clear goal of increased profitability and free cash flow."
Consolidated Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Quarter Ended Fiscal Year Ended
------------- -----------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
Net revenues, excluding
insurance recoveries $268.8 $281.7 $999.8 $1,046.2
Net revenues 268.8 284.6 999.8 1,108.0
EBITDA(1) 53.1 34.4 173.6 257.0
Income (loss) from
continuing operations 6.4 25.6 (1.5) 61.2
Net income (loss) 4.9 14.6 (3.3) 43.6
Income (loss) per share
from continuing
operations 0.20 0.80 (0.05) 1.95
Net income (loss) per share 0.15 0.46 (0.10) 1.39
During the fourth quarter of fiscal 2010, net revenues decreased 5.6% to $268.8 million, when compared to prior year, while consolidated EBITDA increased 54.4% to $53.1 from $34.4 million. This increase in EBITDA was caused primarily by valuation charges taken in FY 2009 offset by decreases in revenue.
For the fiscal year ended April 25, 2010, net revenues decreased 9.8% to $999.8 million, when compared to prior year, and consolidated EBITDA decreased 32.5% to $173.6 million. The decrease in EBITDA is primarily attributable to the decrease in net revenues, insurance recoveries received in FY 2009 offset by the 2009 valuation charges as discussed above.
The following table outlines significant items impacting EBITDA and the Income (loss) from continuing operations during the fiscal quarters and years ended April 25, 2010 and April 26, 2009:
Quarter Ended Fiscal Year Ended
------------- -----------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
Items impacting EBITDA
and Income (loss)
from continuing
operations:
Insurance recoveries,
net $- $3.0 $- $94.1
Valuation charges - (30.1) - (30.1)
Expense recoveries and
other - 6.8 (6.0)
Debt refinancing costs (1.8) - (1.8) -
Other - 2.3 0.4 -
Additional item
impacting Income
(loss)
from continuing
operations:
Gain on early
extinguishment of debt - 57.7 - 57.7
Before considering the impact of the items detailed in the table above during the fourth quarter of fiscal 2010:
-- Net revenues decreased 4.6% to $268.8 million
-- Property-level EBITDA margins were 24.5% compared to 24.1% in the fourth
quarter of fiscal year 2009
-- Consolidated EBITDA decreased 7.2% to $54.9 million, primarily as a
result of increased corporate development costs of approximately $0.9
million and decreased gaming revenues
Before considering the impact of the items detailed in the table above, annual results were as follows:
-- Net revenues decreased 4.4% to $999.8 million
-- Property-level EBITDA margins were 21.2% compared to 22.9% in fiscal
year 2009
-- Consolidated EBITDA decreased 15.5% to $168.2 million, primarily as a
result of decreased gaming revenues
Discussing the operating results, Virginia McDowell, the Company's president and chief operating officer, remarked, "We are continuing to build a stronger business model based on fundamental operating principles and fiscal responsibility. While we believe the economic condition of our customers improved as the fiscal year progressed, we believe the effect of an economic recovery on the gaming business will be slow and steady. As a result, we continue to trim costs where possible, improve our marketing efforts and elevate the guest experience to improve the competitive positioning of each of our properties. Over the past two years we have made prudent changes to our cost structure, including the elimination of over $30 million in property-level operating costs relating to our gaming floors, guest amenities and hotels, other facilities and marketing and administrative costs.
"The results of our properties during the quarter varied by market, but we are generally encouraged by the change in direction we have experienced compared to prior year. In Mississippi, Missouri and Iowa, we are finding market stability and a continued positive response to the new products we have introduced, including our two Lady Luck-branded casinos. In Pompano and Lake Charles, there are clear signs of improvement based upon new marketing programs and cost containment. In Pompano, we believe, as a result of the gaming tax rollback set to take effect on July 1, we will be able to target customers we have not been able to effectively market to in the past due to the tax rate.
"Additionally, we believe there will continue to be opportunities to expand our gaming management and development efforts. In addition to the Rainbow Casino transaction, we are fully engaged in a competitive bid process for the final resort license in Pennsylvania, have indicated a preliminary interest in the 13th Missouri license and are continuing to evaluate opportunities in a variety of jurisdictions that, we believe, could positively impact our future free cash flows."
Dale R. Black, the Company's senior vice president and chief financial officer, commented, "We believe we are responsibly managing through the economic downturn and are encouraged by the fact that the country has experienced six straight months of increases in consumer spending, particularly in the retail and manufacturing sectors which, we believe, bodes well for our economic outlook over time.
"With the added flexibility of the amendment to our credit facility through 2012 and the free cash flow expected to be generated through the Rainbow transaction, we believe that our business will begin to show more clear signs of economic improvement late in this calendar year and into 2011."
Corporate and Other
Corporate and other increased $4.3 million to $13.0 million during the fourth quarter of fiscal 2010 compared to prior year, primarily due to credit amendment costs of $1.8 million, development costs of $0.9 million and increased non-cash stock compensation expense of $1.7 million.
For the fiscal year ended April 25, 2010, corporate and other increased $4.5 million, primarily due to credit amendment costs of $1.8 million, development costs of $1.5 million and increased non-cash stock compensation expense of $1.1 million.
Interest expense for the quarter was $21.7 million, an increase of $2.2 million compared to the prior fiscal year, primarily due to the increase of interest rates on the credit facility as a result of the recent amendment. For the fiscal year ended April 25, 2010, interest expense decreased $16.6 million, primarily as a result of lower debt levels during the year, offset by the increased costs associated with the recent amendment.
As a result of the amendment to the credit facility, we incurred a charge of approximately $2.1 million related to fees and the write-off of certain unamortized deferred financing costs, of which approximately $0.3 million was non-cash and included in interest expense.
Capital Structure and FY 2011 Guidance
As of April 25, 2010, the Company had:
-- $68.1 million in cash and cash equivalents
-- $1,200.9 million in total debt
-- Over $330 million in net line of credit availability
FY 2010 capital expenditures were $27.7 million
The Company provided guidance for the following specific non-operating items for fiscal year 2011 assuming the Rainbow acquisition closes by June 30, 2010:
-- Depreciation and amortization expense is expected to be approximately
$85 million to $87 million;
-- The Company expects cash income taxes pertaining to FY 2011 operations
to be less than $5 million which primarily represents state income
taxes.
-- Interest expense is expected to be approximately $89 million to $92
million, net of capitalized interest.
-- Total Corporate expenses for FY 2011 are expected to be approximately
$46 million including approximately $8.5 million in non-cash stock
compensation expense.
-- Maintenance capital expenditures for FY 2011 are expected to be
approximately $45 million to $48 million, including conversion of
approximately 2,500 slot machines to the Bally's slot system technology.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Wednesday, June 2, 2010 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 (877) 917-8929. International callers can access the conference call by dialing (630) 395-0312. The conference call access code is 9056848.
This conference call will be recorded and available for review starting at noon central on Wednesday, June 2, 2010 on the Company's website, www.islecorp.com. The audio of the conference call will also be available by telephone from that time until midnight central on Wednesday, June 9, 2010, by dialing (866) 498-5468 for domestic callers or (203) 369-1798 for International callers. The access code will be 875962.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
-----------
Three Months Ended Twelve Months Ended
------------------ -------------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
Revenues:
Casino $270,429 $285,764 $1,013,386 $1,055,694
Rooms 10,520 10,684 43,007 46,380
Pari-mutuel,
food,
beverage and
other 36,173 37,484 134,994 138,632
Hurricane
insurance
recoveries - 2,932 - 62,932
--- ----- --- ------
Gross
revenues 317,122 336,864 1,191,387 1,303,638
Less
promotional
allowances (48,326) (52,255) (191,551) (195,603)
------- ------- -------- --------
Net revenues 268,796 284,609 999,836 1,108,035
Operating
expenses:
Casino 38,487 39,291 153,838 151,610
Gaming taxes 71,185 73,108 262,241 269,928
Rooms 2,727 3,003 10,845 12,306
Pari-mutuel,
food,
beverage and
other 12,121 14,451 44,760 51,462
Marine and
facilities 15,359 16,166 61,507 64,368
Marketing and
administrative 62,516 65,437 253,097 256,210
Corporate and
development 13,339 8,757 46,750 41,331
Expense
recoveries
and other
charges - 30,125 (6,762) 36,125
Hurricane
insurance
recoveries - (98) - (32,277)
Depreciation
and
amortization 25,443 30,101 109,504 122,440
Total
operating
expenses 241,177 280,341 935,780 973,503
------- ------- ------- -------
Operating
income 27,619 4,268 64,056 134,532
Interest
expense (21,752) (19,543) (75,434) (92,065)
Interest
income 615 491 1,833 2,112
Gain (loss)
on early
extinguishment
of debt - 57,693 - 57,693
Other expense (370) - (370) -
---- --- ---- ---
Income (loss)
from
continuing
operations
before
income taxes 6,112 42,909 (9,915) 102,272
Income tax
benefit
(provision) 319 (17,356) 8,374 (41,039)
--- ------- ----- -------
Income (loss)
from
continuing
operations 6,431 25,553 (1,541) 61,233
Income (loss)
from
discontinued
operations,
including
loss on
sale, net of
income taxes (1,546) (10,965) (1,732) (17,658)
------ ------- ------ -------
Net income
(loss) $4,885 $14,588 $(3,273) $43,575
====== ======= ======= =======
Income (loss)
per common
share-basic
and
dilutive:
Income (loss)
from
continuing
operations $0.20 $0.80 $(0.05) $1.95
Income (loss)
from
discontinued
operations,
including
loss on
sale, net of
income taxes (0.05) (0.34) (0.05) (0.56)
----- ----- ----- -----
Net income
(loss) $0.15 $0.46 $(0.10) $1.39
===== ===== ====== =====
Weighted
average
basic shares 32,445,378 31,770,653 32,245,769 31,372,670
Weighted
average
diluted
shares 32,515,829 31,770,653 32,245,769 31,379,016
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
April 25, April 26,
2010 2009
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $68,069 $96,654
Marketable securities 22,926 17,548
Accounts receivable, net 8,879 11,935
Income taxes receivable 8,109 7,744
Deferred income taxes 16,826 16,295
Prepaid expenses and other assets 25,095 23,234
Assets held for sale - 4,183
Total current assets 149,904 177,593
Property and equipment, net 1,098,942 1,177,540
Other assets:
Goodwill 313,136 313,136
Other intangible assets, net 79,675 83,588
Deferred financing costs, net 10,354 9,314
Restricted cash 2,774 2,774
Prepaid deposits and other 20,055 18,717
Total assets $1,674,840 $1,782,662
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-term debt $8,754 $9,688
Accounts payable 24,072 15,079
Accrued liabilities:
Payroll and related 45,863 47,402
Property and other taxes 20,253 31,563
Interest 14,779 9,280
Progressive jackpots and slot club awards 14,144 13,892
Other 29,290 39,201
Liabilities related to assets held for
sale - 1,888
--- -----
Total current liabilities 157,155 167,993
Long-term debt, less current maturities 1,192,135 1,291,384
Deferred income taxes 29,193 24,970
Other accrued liabilities 38,972 52,575
Other long-term liabilities 17,166 17,314
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000
shares authorized; none issued - -
Common stock, $.01 par value; 45,000,000
shares authorized; shares issued:
36,771,730 at April 25, 2010 and
36,111,089 at April 26, 2009 367 361
Class B common stock, $.01 par value;
3,000,000 shares authorized; none issued - -
Additional paid-in capital 201,464 193,827
Retained earnings 98,555 101,828
Accumulated other comprehensive (loss)
income (8,060) (15,191)
------ -------
292,326 280,825
Treasury stock, 4,326,242 shares at April
25, 2010 and 4,340,436
shares at April 26, 2009 (52,107) (52,399)
Total stockholders' equity 240,219 228,426
Total liabilities and stockholders' equity $1,674,840 $1,782,662
========== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
Mississippi
Biloxi $19,112 $21,868 $72,602 $83,880
Natchez 9,320 10,043 32,826 37,023
Lula 19,323 20,328 68,147 70,985
Mississippi Total 47,755 52,239 173,575 191,888
------ ------ ------- -------
Louisiana
Lake Charles 35,771 40,007 139,423 152,112
------ ------ ------- -------
Missouri
Kansas City 21,014 21,372 76,815 74,435
Boonville 20,284 21,586 77,759 78,582
Caruthersville 8,959 9,151 32,685 31,579
Missouri Total 50,257 52,109 187,259 184,596
------ ------ ------- -------
Iowa
Bettendorf 20,373 22,963 79,527 91,661
Davenport 12,745 13,544 48,075 49,005
Marquette 6,745 7,224 27,176 29,875
Waterloo 22,344 21,863 81,261 80,544
Iowa Total 62,207 65,594 236,039 251,085
------ ------ ------- -------
Colorado
Black Hawk 30,419 30,715 126,140 123,382
------ ------ ------- -------
Florida
Pompano 42,007 40,900 135,998 142,672
------ ------ ------- -------
Property Net Revenues before
Other 268,416 281,564 998,434 1,045,735
Insurance Recoveries(2)
Davenport - 758 - 758
Natchez - 2,174 - 1,087
Biloxi - - - 60,000
Other 380 113 1,402 455
--- --- ----- ---
Net Revenues from Continuing
Operations $268,796 $284,609 $999,836 $1,108,035
======== ======== ======== ==========
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1)
(unaudited, in thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
Mississippi
Biloxi $2,444 $2,070 $5,721 $9,050
Natchez 3,676 3,873 10,685 13,820
Lula 6,555 6,504 18,810 20,294
Mississippi Total 12,675 12,447 35,216 43,164
------ ------ ------ ------
Louisiana
Lake Charles 7,222 9,705 23,579 34,521
----- ----- ------ ------
Missouri
Kansas City 5,777 5,596 17,637 15,108
Boonville 6,805 7,606 25,603 25,526
Caruthersville 2,094 2,205 6,462 6,356
Missouri Total 14,676 15,407 49,702 46,990
------ ------ ------ ------
Iowa
Bettendorf 5,863 6,630 21,365 29,372
Davenport 4,144 3,986 13,630 14,591
Marquette 1,445 1,167 5,164 6,324
Waterloo 7,356 6,824 23,456 22,969
Iowa Total 18,808 18,607 63,615 73,256
------ ------ ------ ------
Colorado
Black Hawk 6,910 7,773 29,740 33,421
----- ----- ------ ------
Florida
Pompano 5,630 3,843 9,736 8,558
----- ----- ----- -----
Property EBITDA Before
Corporate and Other
Items 65,921 67,782 211,588 239,910
Corporate and Other (11,025) (8,650) (43,415) (40,876)
------- ------ ------- -------
EBITDA Before Other
Items 54,896 59,132 168,173 199,034
Other Items:
Insurance
Recoveries(2)
Biloxi - - - 92,179
Davenport - 758 - 758
Natchez - 2,272 - 1,136
Valuation Charges(3)
Biloxi - (11,856) - (11,856)
Black Hawk - (18,269) - (18,269)
Expense Recoveries and
Other(4) - - 6,762 (6,000)
Debt Refinancing Costs (1,834) - (1,834) -
Other:(5)
Marquette Hotel
Demolition - - (475) -
Caruthersville
Property Tax
Settlement - - 934 -
Pompano Gaming Tax
Refund - 2,332 - 1,890
Colorado Referendum
Costs - - - (1,900)
EBITDA from Continuing
Operations $53,062 $34,369 $173,560 $256,972
======= ======= ======== ========
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA(1)
(unaudited, in thousands)
Three Months Ended April 25, 2010
---------------------------------
Depreciation
Operating and
Income Amortization EBITDA
------ ------------ ------
Mississippi
Biloxi $(1,024) $3,468 $2,444
Natchez 3,306 370 3,676
Lula 4,641 1,914 6,555
Mississippi Total 6,923 5,752 12,675
----- ----- ------
Louisiana
Lake Charles 4,769 2,453 7,222
----- ----- -----
Missouri
Kansas City 4,856 921 5,777
Boonville 5,739 1,066 6,805
Caruthersville 1,192 902 2,094
Missouri Total 11,787 2,889 14,676
------ ----- ------
Iowa
Bettendorf 3,830 2,033 5,863
Davenport 3,507 637 4,144
Marquette 947 498 1,445
Waterloo 4,377 2,979 7,356
Iowa Total 12,661 6,147 18,808
------ ----- ------
Colorado
Black Hawk 3,346 3,564 6,910
----- ----- -----
Florida
Pompano 1,933 3,697 5,630
----- ----- -----
Total Property Before
Corporate and Other Items 41,419 24,502 65,921
Corporate and Other (11,966) 941 (11,025)
------- --- -------
Total Before Other Items 29,453 25,443 54,896
Other Items:
Insurance Recoveries(2)
Davenport - - -
Natchez - - -
Valuation Charges(3)
Biloxi - - -
Black Hawk - - -
Debt Refinancing Costs (1,834) - (1,834)
Pompano Gaming Tax
Refund(5) - - -
Total From Continuing
Operations $27,619 $25,443 $53,062
======= ======= =======
Three Months Ended April 26, 2009
---------------------------------
Depreciation
Operating and
Income Amortization EBITDA
------ ------------ ------
Mississippi
Biloxi $(1,859) $3,929 $2,070
Natchez 3,243 630 3,873
Lula 4,114 2,390 6,504
Mississippi Total 5,498 6,949 12,447
----- ----- ------
Louisiana
Lake Charles 6,748 2,957 9,705
----- ----- -----
Missouri
Kansas City 4,448 1,148 5,596
Boonville 6,457 1,149 7,606
Caruthersville 980 1,225 2,205
Missouri Total 11,885 3,522 15,407
------ ----- ------
Iowa
Bettendorf 4,141 2,489 6,630
Davenport 2,968 1,018 3,986
Marquette 543 624 1,167
Waterloo 3,872 2,952 6,824
Iowa Total 11,524 7,083 18,607
------ ----- ------
Colorado
Black Hawk 3,797 3,976 7,773
----- ----- -----
Florida
Pompano (434) 4,277 3,843
---- ----- -----
Total Property Before
Corporate and Other Items 39,018 28,764 67,782
Corporate and Other (9,987) 1,337 (8,650)
------ ----- ------
Total Before Other Items 29,031 30,101 59,132
Other Items:
Insurance Recoveries(2)
Davenport 758 - 758
Natchez 2,272 - 2,272
Valuation Charges(3)
Biloxi (11,856) - (11,856)
Black Hawk (18,269) - (18,269)
Debt Refinancing Costs - - -
Pompano Gaming Tax
Refund(5) 2,332 - 2,332
Total From Continuing
Operations $4,268 $30,101 $34,369
====== ======= =======
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA(1)
(unaudited, in thousands)
Twelve Months Ended April 25, 2010
----------------------------------
Depreciation
Operating and
Income Amortization EBITDA
------ ------------ ------
Mississippi
Biloxi $(8,306) $14,027 $5,721
Natchez 8,868 1,817 10,685
Lula 10,692 8,118 18,810
Mississippi Total 11,254 23,962 35,216
------ ------ ------
Louisiana
Lake Charles 13,317 10,262 23,579
------ ------ ------
Missouri
Kansas City 13,717 3,920 17,637
Boonville 21,125 4,478 25,603
Caruthersville 2,919 3,543 6,462
Missouri Total 37,761 11,941 49,702
------ ------ ------
Iowa
Bettendorf 12,624 8,741 21,365
Davenport 10,494 3,136 13,630
Marquette 2,763 2,401 5,164
Waterloo 11,614 11,842 23,456
Iowa Total 37,495 26,120 63,615
------ ------ ------
Colorado
Black Hawk 14,891 14,849 29,740
------ ------ ------
Florida
Pompano (6,951) 16,687 9,736
------ ------ -----
Property EBITDA Before
Corporate and Other Items 107,767 103,821 211,588
Corporate and Other (48,140) 4,725 (43,415)
------- ----- -------
EBITDA Before Other Items 59,627 108,546 168,173
Other Items:
Insurance Recoveries(2)
Biloxi - - -
Davenport - - -
Natchez - - -
Valuation Charges(3)
Biloxi - - -
Black Hawk - - -
Expense Recoveries and Other(4) 6,762 - 6,762
Debt Refinancing Costs (1,834) - (1,834)
Other:(5)
Marquette Hotel Demolition (1,433) 958 (475)
Caruthersville Property Tax
Settlement 934 - 934
Pompano Gaming Tax Refund - - -
Colorado Referendum Costs - - -
--- --- ---
EBITDA From Continuing
Operations $64,056 $109,504 $173,560
======= ======== ========
Twelve Months Ended April 26, 2009
----------------------------------
Depreciation
Operating and
Income Amortization EBITDA
------ ------------ ------
Mississippi
Biloxi $(7,952) $17,002 $9,050
Natchez 10,811 3,009 13,820
Lula 11,498 8,796 20,294
Mississippi Total 14,357 28,807 43,164
------ ------ ------
Louisiana
Lake Charles 22,041 12,480 34,521
------ ------ ------
Missouri
Kansas City 10,369 4,739 15,108
Boonville 20,737 4,789 25,526
Caruthersville 1,638 4,718 6,356
Missouri Total 32,744 14,246 46,990
------ ------ ------
Iowa
Bettendorf 20,090 9,282 29,372
Davenport 10,351 4,240 14,591
Marquette 3,705 2,619 6,324
Waterloo 11,377 11,592 22,969
Iowa Total 45,523 27,733 73,256
------ ------ ------
Colorado
Black Hawk 16,588 16,833 33,421
------ ------ ------
Florida
Pompano (8,324) 16,882 8,558
------ ------ -----
Property EBITDA Before
Corporate and Other Items 122,929 116,981 239,910
Corporate and Other (46,335) 5,459 (40,876)
------- ----- -------
EBITDA Before Other Items 76,594 122,440 199,034
Other Items:
Insurance Recoveries(2)
Biloxi 92,179 - 92,179
Davenport 758 - 758
Natchez 1,136 - 1,136
Valuation Charges(3)
Biloxi (11,856) - (11,856)
Black Hawk (18,269) - (18,269)
Expense Recoveries and Other(4) (6,000) - (6,000)
Debt Refinancing Costs - - -
Other:(5)
Marquette Hotel Demolition - - -
Caruthersville Property Tax
Settlement - - -
Pompano Gaming Tax Refund 1,890 - 1,890
Colorado Referendum Costs (1,900) - (1,900)
------ --- ------
EBITDA From Continuing
Operations $134,532 $122,440 $256,972
======== ======== ========
1. EBITDA is "earnings before interest and other
non-operating income (expense), income
taxes, and depreciation and amortization."
"Property EBITDA" is EBITDA before Corporate
and development expenses and minority
interest. 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
EBITDA and Property EBITDA as the primary
measure of the Company's operating
properties' performance, and they are
important components in evaluating the
performance of management and other
operating personnel in the determination of
certain components of employee compensation.
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
EBITDA. Also, other gaming companies that
report EBITDA information may calculate
EBITDA in a different manner than the
Company. A reconciliation of EBITDA and
Property EBITDA to operating income is
included in the financial schedules
accompanying this release. A reconciliation
of EBITDA to the Company's net income (loss)
is shown below (in thousands).
Three Months Ended Fiscal Year Ended
------------------ -----------------
April 25, April 26, April 25, April 26,
2010 2009 2010 2009
---- ---- ---- ----
EBITDA $53,062 $34,369 $173,560 $256,972
Add/(deduct):
Depreciation and
amortization (25,443) (30,101) (109,504) (122,440)
Interest expense:
Interest expense, net (21,137) (19,052) (73,601) (89,953)
Gain on early
extinguishment of debt - 57,693 - 57,693
Other expense (370) - (370) -
Income tax benefit
(provision) 319 (17,356) 8,374 (41,039)
Income (loss) from
discontinued
operations,
including loss on sale,
net of income taxes (1,546) (10,965) (1,732) (17,658)
Net income (loss) $4,885 $14,588 $(3,273) $43,575
====== ======= ======= =======
Certain of our debt agreements use "Adjusted EBITDA" as a
financial measure for the calculation of financial debt
covenants. Adjusted EBITDA differs from EBITDA as Adjusted
EBITDA 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. We have received insurance recoveries related to various
claims. The insurance recoveries for our Biloxi property
in fiscal year 2009 related to Hurricane Katrina claims.
In addition, we received insurance recoveries at our
Davenport and Natchez properties related to flood and
other claims.
3. We recorded a valuation charge as a result of our
impairment testing under ASC 350 at our Black Hawk
properties in fiscal year 2009. We recorded a valuation
charge reducing our construction in progress following a
decision to change construction plans at our Biloxi
property in fiscal year 2009.
4. Expense recoveries and other of $(6.8) million for fiscal
year 2010 reflect income from the recording of a
receivable for reimbursement of Pittsburgh development
costs. Expense recoveries and other of $6.0 million for
fiscal year 2009 reflect a charge representing the
cancellation of our rights to acquire land including a
$1.0 million termination fee, related to the potential
development of a casino project in the Portland, Oregon
area.
5. Other: During fiscal year 2010, the Company demolished
the hotel at our Marquette property. As a result,
operating income for the fiscal year 2010 includes $0.5
million in demolition costs and $1.0 million in
acceleration of remaining depreciation. Caruthersville
includes the favorable impact of $0.9 million from the
settlement of a property tax appeal during fiscal year
2010. In fiscal year 2009, Pompano includes the results
of an agreement reached with the State of Florida
regarding an interpretation of the gaming tax calculation
based on taxes paid since opening. The Colorado
properties include costs associated with the gaming
referendum passed during fiscal year 2009.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 14 casino properties. The Company owns and operates casinos domestically in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri, two casinos in Black Hawk, Colorado, and a casino and harness track in Pompano Beach, Florida. 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.,
Dale Black, Chief Financial Officer-314.813.9327
Jill Haynes, Senior Director of Corporate Communication-
314.813.9368
