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Isle Of Capri Casinos, Inc. Announces Fiscal 2016 Fourth Quarter And Year Results

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June 14, 2016 8:31 AM EDT

ST. LOUIS, June 14, 2016 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the fourth quarter and fiscal year ended April 24, 2016 and other Company-related news.

Fiscal 2016 Fourth Quarter and Fiscal Year 2016 Highlights 

  • Diluted net income per share from continuing operations increased to $0.60 per share from $0.08 in the prior year quarter.
  • Eight of 13 properties reported higher year-over-year Adjusted EBITDA in the fourth quarter driven by continued strong performance at our Missouri properties.
  • Adjusted EBITDA increased $0.4 million, to $65.8 million in the quarter compared to the prior year quarter while Adjusted EBITDA margin increased 57 bps, to 24.9%.
  • Fiscal 2016 Adjusted EBITDA increased 5.0% year over year and Adjusted EBITDA margin increased 100 bps, to 21.6%.
  • Our balance sheet continues to get stronger as debt to Adjusted EBITDA ratio was 4.4x at the end of fiscal 2016 compared to 4.9x a year ago.

Consolidated Financial Results

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

Three Months Ended

Twelve Months Ended

April 24,

April 26,

April 24,

April 26,

2016

2015

2016

2015

Net revenues

$    264.9

$    269.3

$    978.6

$    977.0

Consolidated Adjusted EBITDA (1)

65.8

65.4

211.3

201.2

Income from continuing operations

25.0

3.2

48.3

7.3

Loss from discontinued operations

0.0

(0.1)

(2.1)

(2.1)

Net income

25.0

3.1

46.2

5.2

Diluted income per share from continuing operations

0.60

0.08

1.17

0.18

Diluted loss per share from discontinued operations

0.00

0.00

(0.05)

(0.05)

Diluted net income per share

0.60

0.08

1.12

0.13

Adjusted diluted net income per share (2)

0.62

0.58

1.26

0.81

(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 increased Adjusted EBITDA and Adjusted EBITDA margins for both the quarter and fiscal 2016, and have grown Adjusted EBITDA and Adjusted EBITDA margins in eight of the last nine quarters.

"We continue to focus on driving increased profitability from our existing operations, managing our corporate costs efficiently and optimizing our marketing costs.  We benefited from our geographic diversity during the quarter as strength in our Missouri and Iowa operations offset lower results year over year in Colorado, Florida and Louisiana.   

"During fiscal 2016, we continued to reinvigorate our properties through prudent capital investments across the portfolio. Perhaps most significantly, we are excited to open our new land-based gaming and entertainment facility in Bettendorf on June 24, 2016.  We believe it will be an outstanding upgrade to the customer experience at our Bettendorf property.  Later this summer, we expect to launch our online play-for-fun casino and to offer lifestyle products under the Lady Luck brand.  We expect these new offerings to further enhance our player loyalty and broaden the demographic appeal of our Lady Luck brand.

"We are also particularly proud that we reduced our debt balance by over $70 million in fiscal 2016 and strengthened our balance sheet, while building Bettendorf and reinvesting in our properties. This highlights the strong free cash flow generation of our business."

Financial Highlights

Net revenues for the current quarter were $264.9 million compared to $269.3 million in the prior year quarter, down 1.6%.  Seven of 13 properties reported higher net revenues for the quarter.

Consolidated Adjusted EBITDA was $65.8 million for the quarter compared to $65.4 million in the prior year quarter, up 0.7%.  Consolidated Adjusted EBITDA margins improved to 24.9% from 24.3%.  Operating income increased to $43.2 million from $35.9 million in the prior year quarter.

Interest expense was $16.7 million compared to $20.8 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 $0.60 compared to diluted income per share from continuing operations of $0.08 in the prior year's quarter.

The following items impacted income from continuing operations during the fourth quarter of fiscal 2015:

  • We recorded a non-cash impairment charge of $9.0 million in fiscal 2015.
  • We recorded a loss on early extinguishment of debt of $13.8 million in fiscal 2015 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 $1.4 million, or 4.0%, to $32.4 million and Adjusted EBITDA decreased $0.9 million to $9.2 million, at our two casinos in Black Hawk. The property results were affected by increased competition in the market this year; in particular, the prior year quarter's results benefited from construction disruption at a nearby property.

Pompano – Net revenues decreased $2.8 million, or 5.2%, to $51.8 million, and Adjusted EBITDA decreased 7.2%, to $13.8 million at Pompano Park.  Continuing from the third quarter, fewer transient customer trips year over year and an increased competitive environment hampered results in the early part of the quarter; however, the property rebounded to prior year levels in April. Despite the decline, Pompano generated the second highest fourth quarter Adjusted EBITDA since the property's opening in 2007. 

Iowa – Net revenues for our Iowa properties were flat to prior year at $48.5 million, while Adjusted EBITDA increased $0.4 million, to $14.6 million. Despite construction disruption from our new land-based facility, net revenues increased $0.1 million and Adjusted EBITDA increased $0.2 million at our property in Bettendorf. 

Waterloo posted its second-highest fourth quarter Adjusted EBITDA since opening in June 2007.  Adjusted EBITDA margins at the property improved 150 basis points and Adjusted EBITDA increased $0.5 million, or 6.4%, to $8.2 million.

Our property in Marquette was impacted by an increased competitive environment resulting in decreased net revenues of $0.5 million, to $6.2 million.  Adjusted EBITDA declined $0.3 million, to $1.3 million.

Lake Charles – Our property in Lake Charles was negatively impacted by the closure of I-10 between Texas and Louisiana for four days in March due to flooding.  For the quarter, net revenues decreased $1.8 million, to $32.1 million, or 5.4%, while Adjusted EBITDA decreased $0.3 million, to $5.4 million, or 4.7%.  Excluding March's results, Adjusted EBITDA increased compared to the same periods in the prior year.

Mississippi – Net revenues for Lula and Vicksburg decreased 1.0%, to $23.5 million while Adjusted EBITDA decreased $0.3 million, to $7.3 million, or 4.2%. 

Vicksburg's net revenues increased $0.6 million, or 6.4%, and Adjusted EBITDA increased $0.1 million, or 2.3%, to $3.1 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 $0.8 million, to $14.2 million and Adjusted EBITDA decreased $0.4 million, or 8.6%

Missouri – Net revenues for our Missouri properties increased $1.8 million, to $67.4 million and Adjusted EBITDA increased $2.1 million, to $22.0 million.  Cape Girardeau produced the highest fourth quarter Adjusted EBITDA since opening and Boonville, Caruthersville and Kansas City all produced their respective second highest quarterly Adjusted EBITDA.

Cape Girardeau's net revenues increased $0.8 million, or 5.2%, and Adjusted EBITDA increased $1.0 million, or 25.0%.  The property's Adjusted EBITDA margin improved 455 bps and generated over 100% flow-through on incremental revenues as it continues to ramp up.

In Caruthersville, net revenues increased $1.0 million, Adjusted EBITDA improved by 32.5%, to $3.2 million, and Adjusted EBITDA margins improved nearly 520 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 39.1% for the quarter, as it benefited from strategic marketing spending, maintaining a prudent operating cost structure and recent capital investments.  During the fourth quarter of fiscal 2016, net revenues increased 1.0%, to $20.6 million and Adjusted EBITDA increased 4.0%, to $8.1 million.

Kansas City reported its second highest fourth quarter Adjusted EBITDA, despite net revenues decreasing 1.4%, to $20.0 million. Adjusted EBITDA increased 0.9%, to $5.8 million.

Pennsylvania – At Nemacolin, net revenues increased 0.7%, to $9.1 million while the Adjusted EBITDA loss improved to $(0.1) million from $(0.2) million. 

Corporate Expenses

Corporate and development expenses were $8.3 million for the quarter compared to $7.3 million in the fourth quarter of fiscal 2015. The current year quarter included expenses related to the former CEO's exit agreement of $0.8 million. 

Non-cash stock compensation expense was $1.2 million for the quarter compared to $0.6 million in the fourth quarter of fiscal 2015. 

Excluding the aforementioned exit agreement costs and non-cash stock compensation expense, corporate and development expenses declined $0.4 million, or 5.3%, to $6.4 million.

Capital Structure and Capital Expenditures

As of April 24, 2016, the Company had:

  • $62.1 million in cash and cash equivalents, excluding $9.8 million in restricted cash and investments;
  • $922.7 million in total debt; and
  • $224.2 million in net line of credit availability.

Fourth quarter capital expenditures were $6.6 million, excluding spending related to the land-based project in Bettendorf. Capital expenditures were $50.9 million for the fiscal year ended April 24, 2016, excluding the Bettendorf land-based project, and consisted of maintenance and gaming equipment purchases as well as spending related to the hotel renovations in Bettendorf and Boonville.  We spent $19.4 million in fiscal 2016 on the $60 million land-based project at Bettendorf.  For the project-to-date, we have expended $21.6 million.  We expect to incur the remainder of the project cost in the first half of fiscal 2017. 

For fiscal 2017 we provide guidance for the following specific non-operating items:

  • Depreciation and amortization expense is expected to be approximately $78 million to $82 million.
  • Interest expense is expected to be approximately $66 million to $68 million.
  • The Company expects cash income taxes pertaining to fiscal 2017 operations to be less than $2 million.
  • Corporate and development expenses for fiscal 2017 are expected to be approximately $28 million to $29 million, including approximately $5 million in non-cash stock compensation expense.
  • Maintenance and other capital expenditures for fiscal 2017 are expected to be approximately $100 million, inclusive of the remaining spend on the Bettendorf land-based project. 

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Tuesday, June 14, 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, June 14, 2016, until 11:59 pm central on Tuesday, June 28, 2016, by dialing 877-344-7529; International: 412-317-0088 and access number 10087579.

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

Twelve Months Ended

April 24, 

April 26,

April 24, 

April 26,

2016

2015

2016

2015

Revenues:

Casino

$      276,905

$      281,290

$   1,028,047

$   1,032,241

Rooms

7,207

7,509

29,457

30,427

Food, beverage, pari-mutuel and other

36,107

36,341

132,436

137,215

Gross revenues

320,219

325,140

1,189,940

1,199,883

Less promotional allowances

(55,352)

(55,853)

(211,348)

(222,838)

Net revenues

264,867

269,287

978,592

977,045

Operating expenses:

Casino

38,577

39,234

152,713

156,547

Gaming taxes

70,456

72,183

261,916

263,362

Rooms

1,599

1,601

6,820

6,576

Food, beverage, pari-mutuel and other

13,285

13,895

48,481

48,903

Marine and facilities

13,188

14,315

54,111

55,994

Marketing and administrative

55,662

56,031

220,079

223,857

Corporate and development

8,297

7,325

29,067

29,088

Valuation charges

-

9,000

-

9,000

Preopening expense

153

-

153

-

Depreciation and amortization

20,456

19,803

82,105

77,798

Total operating expenses

221,673

233,387

855,445

871,125

Operating income

43,194

35,900

123,147

105,920

Interest expense

(16,744)

(20,761)

(68,025)

(84,131)

Interest income

76

96

311

369

Loss on early extinguishment of debt

-

(13,757)

(2,966)

(13,757)

Income from continuing operations before income taxes

26,526

1,478

52,467

8,401

Income tax (provision) benefit

(1,531)

1,682

(4,178)

(1,111)

Income from continuing operations 

24,995

3,160

48,289

7,290

Loss from discontinued operations, net of income taxes

-

(68)

(2,085)

(2,113)

Net income 

$        24,995

$          3,092

$        46,204

$          5,177

Income (loss) per common share-basic:

Income from continuing operations

$            0.61

$            0.08

$            1.19

$            0.18

Loss from discontinued operations, net of income taxes

-

-

(0.05)

(0.05)

Net income 

$            0.61

$            0.08

$            1.14

$            0.13

Income (loss) per common share-dilutive:

Income from continuing operations

$            0.60

$            0.08

$            1.17

$            0.18

Loss from discontinued operations, net of income taxes

-

-

(0.05)

(0.05)

Net income  

$            0.60

$            0.08

$            1.12

$            0.13

Weighted average basic shares

40,755,048

40,033,404

40,690,929

39,955,735

Weighted average diluted shares

41,351,978

41,020,503

41,323,473

40,320,267

 

ISLE OF CAPRI CASINOS, INC. 

CONSOLIDATED BALANCE SHEETS 

(In thousands, except share and per share amounts) 

(Unaudited)

April 24,

April 26,

2016

2015

ASSETS

Current assets:

Cash and cash equivalents

$      62,126

$      66,437

Marketable securities

19,338

19,517

Accounts receivable, net

13,252

11,171

Inventory

6,305

6,509

Deferred income taxes

-

4,626

Prepaid expenses and other assets

11,874

11,274

Assets held for sale

-

138

Total current assets

112,895

119,672

Property and equipment, net

899,167

902,226

Other assets:

Goodwill

108,970

108,970

Other intangible assets, net

53,236

54,073

Deferred financing costs, net

14,702

19,075

Restricted cash and investments

9,819

9,193

Prepaid deposits and other

5,216

4,743

Deferred income taxes

1,144

-

Long-term assets held for sale

-

9,810

Total assets

$ 1,205,149

$ 1,227,762

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current maturities of long-term debt

$             80

$           170

Accounts payable 

29,723

19,690

Accrued liabilities:

Payroll and related

36,915

43,371

Property and other taxes

19,428

20,456

Income taxes payable

123

125

Interest

14,678

15,350

Progressive jackpots and slot club awards

15,564

16,123

Other

21,036

18,326

Total current liabilities

137,547

133,611

Long-term debt, less current maturities

922,613

992,712

Deferred income taxes

37,902

37,334

Other accrued liabilities

17,557

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 April 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

244,472

241,899

Retained earnings (deficit)

(152,868)

(199,072)

92,025

43,248

Treasury stock,1,300,955 shares at April 24, 2016 and 1,568,875 shares at April 26, 2015

(16,407)

(19,786)

Total stockholders' equity

75,618

23,462

Total liabilities and stockholders' equity

$ 1,205,149

$ 1,227,762

 

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)

Three Months Ended

Twelve Months Ended

April 24,

April 26,

April 24,

April 26,

2016

2015

2016

2015

Colorado

Black Hawk

$    32,423

$    33,780

$  129,565

$      127,722

Florida

Pompano

51,802

54,646

176,334

175,588

Iowa

Bettendorf

18,482

18,420

71,764

72,981

Marquette

6,198

6,667

25,557

25,793

Waterloo

23,827

23,409

88,741

87,762

Iowa Total

48,507

48,496

186,062

186,536

Louisiana

Lake Charles

32,139

33,966

121,299

128,413

Mississippi

Lula

14,210

15,008

51,012

53,042

Vicksburg

9,258

8,701

31,206

29,876

Mississippi Total

23,468

23,709

82,218

82,918

Missouri

Boonville

20,646

20,441

78,287

76,934

Cape Girardeau

17,030

16,192

61,153

59,628

Caruthersville

9,709

8,699

34,277

31,369

Kansas City

20,033

20,310

73,001

73,070

Missouri Total

67,418

65,642

246,718

241,001

Pennsylvania

Nemacolin

9,090

9,027

36,319

34,755

Property Net Revenues before Other

264,847

269,266

978,515

976,933

Other

20

21

77

112

Net Revenues from Continuing Operations

$  264,867

$  269,287

$  978,592

$      977,045

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

Three Months Ended April 24, 2016

Operating Income (Loss)

Depreciation and Amortization

Stock-Based Compensation

Preopening and Other

Adjusted EBITDA

Black Hawk, Colorado

$           7,049

$                  2,152

$                  14

$             -

$   9,215

Pompano, Florida

11,961

1,832

13

-

13,806

Bettendorf, Iowa

1,859

3,064

7

153

5,083

Marquette, Iowa

959

327

6

-

1,292

Waterloo, Iowa

7,013

1,160

7

-

8,180

Iowa Total

9,831

4,551

20

153

14,555

Lake Charles, Louisiana

2,572

2,819

7

-

5,398

Lula, Mississippi

2,788

1,379

4

-

4,171

Vicksburg, Mississippi

2,202

905

6

-

3,113

Mississippi Total

4,990

2,284

10

-

7,284

Boonville, Missouri

6,836

1,228

13

-

8,077

Cape Girardeau, Missouri

2,339

2,547

5

-

4,891

Caruthersville, Missouri

2,576

613

5

-

3,194

Kansas City, Missouri

4,890

943

7

-

5,840

Missouri Total

16,641

5,331

30

-

22,002

Nemacolin, Pennsylvania

(1,166)

1,080

-

-

(86)

Total Operating Properties

51,878

20,049

94

153

72,174

Corporate and Other

(8,684)

407

1,153

770

(6,354)

Total

$         43,194

$                20,456

$             1,247

$          923

$ 65,820

Three Months Ended April 26, 2015

Operating Income (Loss)

Depreciation and Amortization

Stock-Based Compensation

Other

Adjusted EBITDA

Black Hawk, Colorado

$           7,815

$                  2,285

$                    7

$             -

$ 10,107

Pompano, Florida

13,008

1,864

6

-

14,878

Bettendorf, Iowa

3,158

1,672

6

-

4,836

Marquette, Iowa

1,216

366

3

-

1,585

Waterloo, Iowa

6,416

1,267

4

-

7,687

Iowa Total

10,790

3,305

13

-

14,108

Lake Charles, Louisiana

2,904

2,754

6

-

5,664

Lula, Mississippi

3,283

1,274

4

-

4,561

Vicksburg, Mississippi

2,125

914

5

-

3,044

Mississippi Total

5,408

2,188

9

-

7,605

Boonville, Missouri

6,754

1,014

2

-

7,770

Cape Girardeau, Missouri

1,058

2,852

3

-

3,913

Caruthersville, Missouri

1,804

605

2

-

2,411

Kansas City, Missouri

4,729

1,053

8

-

5,790

Missouri Total

14,345

5,524

15

-

19,884

Nemacolin, Pennsylvania

(10,557)

1,375

15

9,000

(167)

Total Operating Properties

43,713

19,295

71

9,000

72,079

Corporate and Other

(7,813)

508

596

-

(6,709)

Total

$         35,900

$                19,803

$                667

$       9,000

$ 65,370

 

Isle of Capri Casinos, Inc.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA

(unaudited, in thousands)

Twelve Months Ended April 24, 2016

Operating Income (Loss)

Depreciation and Amortization

Stock-Based Compensation

Preopening and Other

Adjusted EBITDA

Black Hawk, Colorado

$         27,825

$                  8,741

$                  56

$             -

$   36,622

Pompano, Florida

30,353

8,074

55

-

38,482

Bettendorf, Iowa

7,337

10,921

32

153

18,443

Marquette, Iowa

4,116

1,428

24

-

5,568

Waterloo, Iowa

22,977

5,090

27

-

28,094

Iowa Total

34,430

17,439

83

153

52,105

Lake Charles, Louisiana

5,965

11,216

29

-

17,210

Lula, Mississippi

6,732

5,274

17

-

12,023

Vicksburg, Mississippi

4,470

3,584

26

-

8,080

Mississippi Total

11,202

8,858

43

-

20,103

Boonville, Missouri

24,591

4,584

51

-

29,226

Cape Girardeau, Missouri

3,323

10,860

24

-

14,207

Caruthersville, Missouri

6,922

2,453

22

-

9,397

Kansas City, Missouri

14,151

3,849

28

-

18,028

Missouri Total

48,987

21,746

125

-

70,858

Nemacolin, Pennsylvania

(4,880)

4,286

30

-

(564)

Total Operating Properties

153,882

80,360

421

153

234,816

Corporate and Other

(30,735)

1,745

4,648

870

(23,472)

Total

$       123,147

$                82,105

$             5,069

$       1,023

$ 211,344

Twelve Months Ended April 26, 2015

Operating Income (Loss)

Depreciation and Amortization

Stock-Based Compensation

Other

Adjusted EBITDA

Black Hawk, Colorado

$         20,614

$                  9,192

$                  29

$       4,057

$   33,892

Pompano, Florida

31,122

7,131

26

-

38,279

Bettendorf, Iowa

13,271

6,011

23

-

19,305

Marquette, Iowa

4,060

1,589

11

-

5,660

Waterloo, Iowa

23,901

4,978

18

(1,225)

27,672

Iowa Total

41,232

12,578

52

(1,225)

52,637

Lake Charles, Louisiana

8,650

11,069

21

-

19,740

Lula, Mississippi

6,630

5,113

16

-

11,759

Vicksburg, Mississippi

2,719

3,600

17

-

6,336

Mississippi Total

9,349

8,713

33

-

18,095

Boonville, Missouri

23,778

3,960

12

-

27,750

Cape Girardeau, Missouri

215

11,281

12

-

11,508

Caruthersville, Missouri

4,346

2,497

12

-

6,855

Kansas City, Missouri

13,664

3,923

27

-

17,614

Missouri Total

42,003

21,661

63

-

63,727

Nemacolin, Pennsylvania

(16,079)

5,460

22

9,000

(1,597)

Total Operating Properties

136,891

75,804

246

11,832

224,773

Corporate and Other

(30,971)

1,994

3,150

2,259

(23,568)

Total

$       105,920

$                77,798

$             3,396

$     14,091

$ 201,205

 

Isle of Capri Casinos, Inc.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(unaudited, in thousands)

Three Months Ended

Twelve Months Ended

April 24,

April 26,

April 24,

April 26,

2016

2015

2016

2015

Income from continuing operations

$  24,995

$    3,160

$   48,289

$     7,290

Income tax provision (benefit)

1,531

(1,682)

4,178

1,111

Loss on extinguishment of debt

-

13,757

2,966

13,757

Interest income

(76)

(96)

(311)

(369)

Interest expense

16,744

20,761

68,025

84,131

Depreciation and amortization

20,456

19,803

82,105

77,798

Stock-based compensation

1,247

667

5,069

3,396

Exit agreement expense (3)

770

-

870

-

Preopening expense (3)

153

-

153

-

Valuation charges (4)

-

9,000

-

9,000

Colorado referendum expense (5)

-

-

-

4,057

Property tax settlement (5)

-

-

-

(1,225)

Severance expense (5)

-

-

-

2,259

Adjusted EBITDA (1)

$  65,820

$  65,370

$ 211,344

$ 201,205

 

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

Twelve Months Ended

April 24,

April 26,

April 24,

April 26,

2016

2015

2016

2015

GAAP income from continuing operations

$  24,995

$    3,160

$  48,289

$    7,290

Exit agreement expense (3)

770

-

870

-

Preopening expense (3)

153

-

153

-

Loss on early extinguishment of debt

-

13,757

2,966

13,757

Valuation charges (4)

-

9,000

-

9,000

Colorado referendum expense (5)

-

-

-

4,057

Property tax settlement (5)

-

-

-

(1,225)

Severance expense (5)

-

-

-

2,259

Tax valuation allowance reversal

-

(2,301)

-

(2,301)

Adjusted income (2)

$  25,918

$  23,616

$  52,278

$  32,837

GAAP income from continuing operations per share

$      0.60

$      0.08

$      1.17

$      0.18

Exit agreement expense (3)

0.02

-

0.02

-

Preopening expense (3)

0.00

-

0.00

-

Loss on early extinguishment of debt

-

0.34

0.07

0.34

Valuation charges (4)

-

0.22

-

0.22

Colorado referendum expense (5)

-

-

-

0.10

Property tax settlement (5)

-

-

-

(0.03)

Severance expense (5)

-

-

-

0.06

Tax valuation allowance reversal

-

(0.06)

-

(0.06)

Adjusted income per share (2)

$      0.62

$      0.58

$      1.26

$      0.81

1.

Adjusted EBITDA is "earnings from continuing operations before interest and other non-operating income (expense), income taxes, stock-based compensation, certain severance expenses, preopening 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, preopening 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, preopening expenses, certain expenses related to the Colorado gaming referendum and certain property tax settlements.

3.

The Company incurred $0.8 million and $0.9 million of expense during the three and twelve months ended April 24, 2016, respectively, pertaining to the former CEO's exit agreement and had preopening expenses of $0.2 million in the three and twelve months ended April 24, 2016 related to the Bettendorf land-based casino expected to open on June 24, 2016.

4.

Valuation charges in the fourth quarter and fiscal 2015 consist of $9.0 million of impairment on the Nemacolin property, plant and equipment.

5.

During fiscal 2015, the Company incurred $4.1 million of expense related to the Colorado gaming expansion referendum, had a favorable property tax settlement related to our Waterloo property of $1.2 million and recorded $2.3 million of severance expense 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-fourth-quarter-and-year-results-300284003.html

SOURCE Isle of Capri Casinos, Inc.


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