* Company posts increases in net revenue and EBITDA despite national
economic challenges
* Strategic plan implementation producing positive financial results and
margin improvements
ST. LOUIS, Sept. 3 /PRNewswire-FirstCall/ -- Isle of Capri Casinos,
Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for
the first quarter of fiscal year 2009 ended July 27, 2008 and other
Company-related news.
In making the announcement, James B. Perry, the Company's executive
vice chairman and chief executive officer, said, "Our Company continued to
make progress as we executed our strategic plan during the quarter, and I
am pleased with our performance during a time of continuing economic
uncertainty. I believe our operational initiatives have had a direct impact
on our bottom line, as we were able to grow EBITDA and improve margins.
Additionally, our efforts to trim costs and increase efficiency have made
important contributions to the achievement of margin improvements at our
properties and at the corporate level, despite the challenges the gaming
industry has faced in recent months.
"Over Labor Day weekend, it was necessary to close our properties in
Biloxi and Natchez, Mississippi, as well as our property in Lake Charles,
Louisiana, due to Hurricane Gustav. We are working as quickly as possible
to reopen these properties, pending regulatory approval, while remaining
completely focused on the safety of our employees and our guests. Overall,
while there was some flooding and minor damage to our facilities in the
region as a result of Gustav, the damage was not severe and should not have
a significant impact on our operations moving forward."
CONSOLIDATED RESULTS
The following table outlines the Company's financial results (dollars
in millions, except per share data, unaudited):
Three Months Ended
July 27, July 29,
2008 2007
Net revenues $282.3 $278.5
Net (loss) (3.6) (7.1)
Net Loss per share (0.12) (0.23)
EBITDA(1) 51.4 46.7
Significant items impacting EBITDA and the net loss during the quarters
ended July 27, 2008 and July 29, 2007 are as follows:
Three Months Ended
July 27, July 29,
2008 2007
Items impacting EBITDA and Net Loss:
Write-offs and other charges $(6.0) $-
Pre-opening - (6.1)
Development (0.2) (1.5)
Minority interest - (1.9)
Additional item impacting Net Loss:
Loss on early extinguishment of debt - (2.2)
First Quarter Highlights
During the quarter, net revenues increased by $3.8 million, or 1.4%, as
compared to the first quarter of fiscal 2008. The Company's net loss for
the quarter improved to ($3.6) million, or ($0.12) per share, compared to
($7.1) million, or ($0.23) per share, for the same period of the prior
fiscal year.
Before consideration of the items reflected in the above table,
consolidated EBITDA for the first quarter was $57.6 million, compared to
$56.3 million for the first quarter of the fiscal 2008 and Property EBITDA
for the first quarter increased 2.7% to $67.5 million, compared to Property
EBITDA of $65.7 million for the comparable quarter last year.
Property EBITDA at domestic locations with casino operations open for
the entire first quarter of both fiscal years was $61.2 million, compared
to $63.2 million in the comparable period of last year, before
consideration of items listed in the table above. Margins increased from
23.8% to 24.3%. The change in Property EBITDA is due primarily to the
closure of our Davenport and Natchez properties for a combined 34 days
during the quarter due to flooding, partially offset by the overall
increase in our margins.
In commenting on the results, Virginia McDowell, the Company's
president and chief operating officer, remarked, "During the first quarter,
initiatives at each of our properties targeted towards the successful
execution of our overall corporate strategic plan continued to show
positive effects on our financial results and customer experience.
"At the property level, our team and our customers are enthusiastically
responding to the introduction of our See. Say. Smile. courtesy program
introduced in the quarter, and our customer service scores have improved as
we continue to focus on our ongoing efforts to make the experience at each
of our properties clean, safe, friendly and fun.
"These successes, coupled with the introduction of our first Lady Luck
Casino in Caruthersville during the quarter, provide us with confidence as
we move forward in the implementation of our strategic plan. I am
optimistic about the value still to be realized from our operating
strategies, two-brand portfolio and improved customer experience."
Write-offs and Other Charges, and Expenses
Write-offs and other charges for the three months ended July 27, 2008
reflect a charge for $6.0 million, consisting of a $5.0 million non-cash
charge representing the cancellation of our rights to acquire land and a
$1.0 million termination fee, related to the potential development of a
casino project in the Portland, Oregon area. Development expenses decreased
from $1.5 million in the three months ended July 29, 2007 to $0.2 million
for the three months ended July 27, 2008.
A loss from early extinguishment of debt was recognized during the
three months ended July 29, 2007, due to the refinancing of our Senior
Credit Facility.
Total consolidated stock compensation expense, including corporate and
properties, for the three months ended July 27, 2008 increased $1.8 million
to $2.7 million. Of this, $2.1 million was included in corporate and
development expenses for the quarter.
Construction Update
The Company has begun to implement capital changes at targeted
properties. Construction has begun in the hotel at the Company's property
in Lula, Miss., where the Company plans to renovate approximately 160 hotel
rooms. Furthermore, the Company's previously announced $160 million
renovation and expansion plan for its property in Biloxi, Miss., is
currently in the design phase. As mentioned previously, the Company intends
to continue to monitor market conditions and settle all outstanding
insurance claims related to Hurricane Katrina, before proceeding with
construction on the project. Additionally, the Company announced that it is
moving forward with the conversion of the property in Marquette, Iowa to a
Lady Luck property.
Capital Structure and Capital Expenditures
As of July 27, 2008 the Company had $110.5 million cash and cash
equivalents and total debt of $1.5 billion. Capital expenditures for the
three months ended July 27, 2008 totaled $8.2 million which included
approximately $5.0 of maintenance capital expenditures.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Wednesday,
September 3, 2008 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,
http://www.islecorp.com, or, for domestic and Canadian callers, by dialing
(866) 379-7168. Other international callers can access the conference call
by dialing (706) 758-3645. The conference call reference number is
62134691.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
Three Months Ended
July 27, July 29,
2008 2007
Revenues:
Casino $281,001 $277,234
Rooms 13,706 13,841
Pari-mutuel commissions and fees 4,273 4,576
Food, beverage and other 33,040 34,068
Gross revenues 332,020 329,719
Less promotional allowances 49,715 51,186
Net revenues 282,305 278,533
Operating expenses:
Casino 40,426 39,363
Gaming taxes 71,145 69,072
Rooms 3,389 3,181
Pari-mutuel commissions and fees 3,186 3,672
Food, beverage and other 11,318 11,629
Marine and facilities 16,905 16,490
Marketing and administrative 68,252 69,316
Corporate and development 10,306 11,074
Write-offs and other valuation charges 6,000 -
Pre-opening - 6,133
Depreciation and amortization 32,739 30,557
Total operating expenses 263,666 260,487
Operating income 18,639 18,046
Interest expense (24,656) (25,814)
Interest income 557 1,094
Loss on early extinguishment of debt - (2,192)
Income (loss) before income taxes and minority
interest (5,460) (8,866)
Income tax (provision) benefit 1,834 3,678
Minority interest - (1,927)
Net income (loss) $(3,626) $(7,115)
Earnings (loss) per common share-basic:
Net income (loss) $(0.12) $(0.23)
Earnings (loss) per common share-diluted:
Net income (loss) $(0.12) $(0.23)
Weighted average basic shares 30,866,687 30,417,036
Weighted average diluted shares 30,866,687 30,417,036
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(unaudited)
ASSETS July 27, April 27,
2008 2008
Current assets:
Cash and cash equivalents $110,462 $91,790
Marketable securities 19,857 18,533
Accounts receivable, net 10,762 12,195
Insurance receivable, net 3,791 7,689
Income tax receivable 28,952 28,663
Deferred income taxes 12,606 12,606
Prepaid expenses and other assets 39,868 27,905
Total current assets 226,298 199,381
Property and equipment, net 1,304,028 1,328,986
Other assets:
Goodwill 307,649 307,649
Other intangible assets, net 88,966 89,252
Deferred financing costs, net 12,738 13,381
Restricted cash 2,774 4,802
Prepaid deposits and other 22,236 22,948
Deferred income taxes 6,040 7,767
Total assets $1,970,729 $1,974,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $9,706 $9,698
Accounts payable 22,451 29,283
Accrued liabilities:
Interest 17,758 8,580
Payroll and related 44,854 47,618
Property and other taxes 31,044 30,137
Other 63,742 58,121
Total current liabilities 189,555 183,437
Long-term debt, less current maturities 1,490,273 1,497,591
Other accrued liabilities 43,890 52,821
Other long-term liabilities 56,919 52,305
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: 35,229,670 at
July 27, 2008 and 35,229,006 at April 27, 2008 353 353
Class B common stock, $.01 par value; 3,000,000
shares authorized; none issued - -
Additional paid-in capital 190,213 188,036
Retained earnings 54,627 58,253
Accumulated other comprehensive income (loss) (2,663) (5,601)
242,530 241,041
Treasury stock, 4,342,443 shares at July 27,
2008 and 4,372,073 shares at April 27, 2008 (52,438) (53,029)
Total stockholders' equity 190,092 188,012
Total liabilities and stockholders' equity $1,970,729 $1,974,166
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended
July 27, July 29,
2008 2007
Mississippi
Biloxi $24,343 $26,752
Natchez 8,585 9,655
Lula 18,401 19,516
Mississippi Total 51,329 55,923
Louisiana
Lakes Charles 41,175 43,001
Missouri
Kansas City 18,211 19,710
Boonville 20,234 20,666
Caruthersville (2) 7,815 4,380
Missouri Total 46,260 44,756
Iowa
Bettendorf 26,127 23,447
Davenport 10,584 13,609
Marquette 8,488 9,497
Waterloo (2) 19,599 8,114
Iowa Total 64,798 54,667
Colorado
Black Hawk/Colorado
Central Station 33,189 39,219
Florida
Pompano (2) 36,902 34,197
International
Blue Chip 2,064 2,478
Coventry (2) 2,847 401
Our Lucaya 3,573 3,830
International Total 8,484 6,709
Other 168 61
$282,305 $278,533
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA
(unaudited, in thousands)
Three Months Ended
July 27, July 29,
2008 2007
Mississippi
Biloxi $4,913 $6,292
Natchez 2,978 3,024
Lula 6,100 5,427
Mississippi Total 13,991 14,743
Louisiana
Lakes Charles 10,687 10,545
Missouri
Kansas City 3,618 3,710
Boonville 6,348 6,612
Caruthersville (2) 1,703 1,118
Missouri Total 11,669 11,440
Iowa
Bettendorf 9,570 7,712
Davenport 3,200 3,567
Marquette 2,420 2,758
Waterloo (2) 6,133 (280)
Iowa Total 21,323 13,757
Colorado
Black Hawk/Colorado
Central Station 9,408 13,876
Florida
Pompano (2) 2,231 (606)
International
Blue Chip (112) 24
Coventry (2) (1,525) (4,109)
Our Lucaya (156) (59)
International Total (1,793) (4,144)
Total Property EBITDA(1) 67,516 59,611
Corporate, Development and Other(3)(4) (16,138) (11,008)
Minority Interest - (1,927)
Total EBITDA(1) $51,378 $46,676
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA
(unaudited, in thousands)
Three Months Ended Three Months Ended
July 27, 2008 July 29, 2007
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi $362 $4,551 $4,913 $1,507 $4,785 $6,292
Natchez 2,093 885 2,978 2,064 960 3,024
Lula 3,847 2,253 6,100 2,593 2,834 5,427
Mississippi Total 6,302 7,689 13,991 6,164 8,579 4,743
Louisiana
Lakes Charles 7,389 3,298 10,687 6,671 3,874 10,545
Missouri
Kansas City 2,354 1,264 3,618 2,416 1,294 3,710
Boonville 5,139 1,209 6,348 5,384 1,228 6,612
Caruthersville (2) 572 1,131 1,703 826 292 1,118
Missouri Total 8,065 3,604 11,669 8,626 2,814 11,440
Iowa
Bettendorf 7,269 2,301 9,570 5,228 2,484 7,712
Davenport 2,073 1,127 3,200 2,217 1,350 3,567
Marquette 1,729 691 2,420 1,941 817 2,758
Waterloo (2) 3,319 2,814 6,133 (1,222) 942 (280)
Iowa Total 14,390 6,933 21,323 8,164 5,593 13,757
Colorado
Black Hawk/
Colorado
Central Station 4,920 4,488 9,408 9,904 3,972 13,876
Florida
Pompano (2) (1,975) 4,206 2,231 (4,454) 3,848 (606)
International
Blue Chip (210) 98 (112) (102) 126 24
Coventry (2) (2,600) 1,075 (1,525) (4,947) 838 (4,109)
Our Lucaya (160) 4 (156) (59) - (59)
International
Total (2,970) 1,177 (1,793) (5,108) 964 (4,144)
Total Properties 36,121 31,395 67,516 29,967 29,644 59,611
Corporate,
Development and
Other (3)(4) (17,482) 1,344 (16,138) (11,921) 913 (11,008)
Minority Interest - (1,927)
$18,639 $32,739 $51,378 $18,046 $30,557 $46,676
1. EBITDA is "earnings before interest and other non-operating income
(expense), income taxes, and depreciation and amortization." EBITDA
is presented after consideration of minority interest. "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 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. Reconciliations of operating
income to EBITDA are included in the financial schedules
accompanying this release. 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
July 27, July 29,
2008 2007
EBITDA $51,378 $46,676
(Add)/deduct:
Depreciation and amortization 32,739 30,557
Interest expense:
Interest expense, net 24,099 24,720
Loss on early extinguishment of debt - 2,192
Income tax provision (benefit) (1,834) (3,678)
Net income (loss) $(3,626) $(7,115)
Certain of our debt agreements use "Adjusted EBITDA" as a financial
measure for the calculation financial debt covenants. Adjusted
EBITDA differs from EBITDA as Adjusted EBITDA includes add back of
items such as pre-opening expenses, certain write-offs and valuation
expenses, and stock compensation expense. Reference can be made to
the definition of Adjusted EBITDA in the applicable debt agreements
on file as Exhibits to our filing with the Securities and Exchange
Commission.
2. During 2007 we opened or acquired new properties as follows:
Property Date
Pompano April 2007
Caruthersville June 2007
Waterloo June 2007
Coventry July 2007
Our operating results reflect the impact of these openings as well
as the incurrence of pre-opening costs for the three months ended
July 29, 2007 as follows:
Property Pre-Opening Expenses
Pompano $307
Waterloo 3,024
Coventry 2,802
3. Total consolidated stock compensation expense including corporate
and properties for the three months ended July 27, 2008 and July 29,
2007 was $2.7 million and $0.9 million, respectively, of which, $2.1
million and $0.7 million were included in Corporate and development
expense, respectively.
4. Write-offs and other charges for the three months ended July 27,
2008 reflect a charge for $6.0 million relating the termination of
an agreement for the potential development of a casino project in
the Portland, Oregon area. As a part of this termination agreement
reached during the three months ended July 27, 2008, we agreed to
terminate our rights under a land option and to pay a termination
fee. As a result of this termination, we recorded a $6.0 million
charge consisting of a write-off of $5.0 million representing our
previously capitalized rights under the land option and $1.0 million
termination fee.
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 18 casino properties. The Company owns and operates casinos in
Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf,
Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville, Kansas
City, Missouri; two casinos in Black Hawk, Colorado; and a casino and
harness track in Pompano Beach, Florida. Isle of Capri Casinos'
international gaming interests include a casino that it operates in
Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds
ownership interest in casinos in Dudley and Wolverhampton, England.
Forward-Looking Statements
This press release may 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 conditions, the economy,
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 and results of operations is included in
the Company's filings with the Securities and Exchange Commission,
including, but not limited to, the Company's annual report on Form 10-K for
the most recently ended fiscal year. This and other information is
available through the Securities and Exchange Commission at
http://www.sec.gov, or through the Company's website,
http://www.islecorp.com.
CONTACTS:
Isle of Capri Casinos, Inc.,
Dale Black, Chief Financial Officer-314.813.9327
Jill Haynes, Senior Director of Corporate Communication-314.813.9368
Available Topic Expert(s): For information on the listed expert(s), click
appropriate link.
James Perry
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=74947
Virginia McDowell
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=72331
SOURCE Isle of Capri Casinos, Inc.
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Related links:
http://www.islecorp.com
CONTACT:
Dale Black, Chief Financial Officer,
+1-314-813-9327, or Jill Haynes, Senior Director of Corporate
Communication, +1-314-813-9368, both of Isle of Capri Casinos,
Inc.
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