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.
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