See more news releases in: Gambling & Casinos, Earnings, Earnings Forecasts & Projections
Isle of Capri Casinos Announces Fiscal 2010 Second Quarter Results
* Despite economic challenges, Isle increases market share, EBITDA or operating margins at half of its properties compared to prior year
* Strategic focus remains on long-term financial success
* Completes sale of operating assets in the United Kingdom
ST. LOUIS, Dec. 1 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the second quarter of the Company's 2010 fiscal year ended October 25, 2009.
In making the announcement, James B. Perry, the Company's chairman and chief executive officer, said, "In an environment plagued with low consumer confidence, our ongoing improvement initiatives are proving successful. We began an aggressive effort to realign our cost structure two years ago, and have since become more efficient while improving the customer experience according to our metrics.
"While we will continue to save where it makes sense, it is important to reaffirm our commitment to the long-term success of our business. We carefully evaluate making major changes to the customer experience which could negatively impact our business for years to come. Additionally, we completed the sale of a majority of our Blue Chip operating casino assets this week, completed our exit from the property in Grand Bahama last week, and expect to liquidate our remaining United Kingdom net assets before the end of our current fiscal year. We remain focused on exploring new domestic management and development opportunities.
"Overall, I am proud of the focus of our team as we continue to work our way through the most challenging economic environment I have seen during my career. Our business is smarter and stronger today, and we are actively engaged in identifying growth opportunities for the future."
Consolidated Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
Net revenues $247.4 $249.6 $507.3 $527.0
EBITDA(1) 41.3 36.7 89.7 89.7
Income (loss) from
continuing operations 1.8 (10.7) 2.6 (13.3)
Net income (loss) 1.6 (13.5) 2.5 (17.1)
Income (loss) per share
from continuing
operations 0.06 (0.34) 0.08 (0.43)
Net income (loss)
per share 0.05 (0.43) 0.08 (0.55)
Significant items impacting EBITDA during the three and six months ended October 25, 2009 and October 26, 2008 are as follows:
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
Expense recoveries -
Pittsburgh development
cost(2) $6.8 $- $6.8 $-
Portland development
expense(2) - - - (6.0)
Marquette hotel
demolition(3) (0.5) - (0.5) -
Caruthersville property
tax settlement(4) 0.9 - 0.9 -
$7.2 $- $7.2 $(6.0)
Second Quarter Highlights
During the quarter, net revenues decreased by 0.9% to $247.4 million compared to the second quarter of FY 2009. EBITDA from continuing operations for the second quarter of FY 2010 was $41.3 million, compared to $36.7 million for the second quarter of FY 2009.
Before consideration of the items reflected in the table above, EBITDA from continuing operations for the second quarter of FY 2010 was $34.1 million, compared to $36.7 million for the second quarter of FY 2009. Property EBITDA decreased $3.7 million from the prior year to $46.1 million.
Before consideration of the items reflected in the table above, EBITDA from continuing operations for the six months ended October 25, 2009 was $82.4 million, compared to $95.7 million for six months ended October 26, 2008. Property EBITDA decreased $14.7 million from the prior year to $104.3 million.
Virginia McDowell, the Company's president and chief operating officer, said, "We view this not only as a period of economic difficulty, but also as a period of opportunity. We are employing different strategies in each market to best position our operations for long-term financial success, and as a result, we have increased market share, EBITDA or operating margins in at least one-half of our properties since last year. Importantly, as we continue to position our business for greater financial success upon changes in consumer spending, we have increased our rated visitation at nine of our eleven properties outside of Missouri, where recent regulatory changes have made this difficult to track in the immediate term. We are introducing new customers to our improved products and service, but the challenge remains average customer spending.
"Now realizing the majority of the financial benefits of our aggressive cost containment measures compared to prior year, we are continuously implementing changes to our back-of-house operating strategies and customer experience amenities designed to drive incremental revenue and impact future earnings.
"Our properties in Missouri performed well due to both operational and regulatory changes, in particular the rebranding of our Caruthersville property to a Lady Luck and new initiatives in Kansas City that have increased earnings. In Colorado, we have benefited from recent regulatory reforms and are optimistic that we can improve our performance. Overall the reforms have been a win for all parties in both states, as we have increased our revenues, the associated tax base for the governments has grown and customers are receiving a better experience. Additionally, through cost savings and marketing initiatives we were able to maintain relative stability at our properties in Mississippi despite a large decrease in overall market revenue.
"While we performed well overall, the competitive landscape in three markets presented difficulties during the quarter that we continue to address. In Iowa, the introduction or expansion of several new facilities has had a significant negative impact on our revenues and earnings, and we are exploring new strategies to improve our market share there as the trial period for the newer facilities fades. In Lake Charles, we are making changes at the property that will allow us to compete more effectively in a highly promotional market. Finally, in Florida, we remain committed to working with the government to end the days of having to operate on an extraordinarily uneven playing field, which is currently destroying earnings for tax-paying commercial operators and potentially putting thousands of good jobs at stake."
Corporate and Other Expenses
Corporate and other expenses decreased $1.1 million to $13.3 million for the three months ended October 25, 2009 compared to prior year. Non-cash stock compensation expense decreased $0.2 million and $1.1 million in the three and six months ended October 25, 2009, respectively, to $2.6 million and $3.7 million, when compared to prior year.
Interest expense for the quarter was $17.9 million, a decline of approximately $6.3 million compared to the prior fiscal year, primarily as a result of lower debt levels.
Income tax benefit for the three and six months ended October 25, 2009 includes the favorable impact of $4.7 million from the settlement of state tax matters.
Capital Structure and Capital Expenditures
As of October 25, 2009, the Company had $76.1 million in cash and cash equivalents and total debt of $1.2 billion. Capital expenditures for the six months ended October 25, 2009 totaled $15.3 million, which included approximately $13 million of maintenance capital expenditures. We expect maintenance capital expenditures for the rest of the fiscal year to be approximately $25 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December 1, 2009 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 (517) 308-9020. The conference call access code is 9056848. This conference call will be recorded and available for review starting at noon on December 1, 2009, until December 8, 2009, by dialing (866) 459-3540 for domestic callers or (203) 369-1329 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 data)
(unaudited)
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
Revenues:
Casino $252,192 $251,828 $516,148 $528,614
Rooms 11,803 12,774 24,064 26,480
Pari-mutuel, food,
beverage and other 33,786 32,981 68,656 69,528
Gross revenues 297,781 297,583 608,868 624,622
Less promotional
allowances (50,415) (48,005) (101,560) (97,649)
Net revenues 247,366 249,578 507,308 526,973
Operating expenses:
Casino 40,289 37,791 80,283 76,332
Gaming taxes 64,509 63,318 130,937 133,976
Rooms 2,766 3,193 5,747 6,582
Pari-mutuel, food,
beverage and other 11,569 12,473 22,727 26,134
Marine and facilities 16,417 17,027 32,371 33,497
Marketing and
administrative 64,947 65,872 130,064 131,226
Corporate and
development 12,340 13,201 22,285 23,531
Expense recoveries
and other charges (6,762) - (6,762) 6,000
Depreciation and
amortization 28,437 30,935 57,266 62,501
Total operating
expenses 234,512 243,810 474,918 499,779
Operating income 12,854 5,768 32,390 27,194
Interest expense (17,883) (24,225) (36,230) (48,122)
Interest income 400 450 769 896
Loss from continuing
operations before
income taxes (4,629) (18,007) (3,071) (20,032)
Income tax benefit 6,411 7,337 5,644 6,722
Income (loss) from
continuing operations 1,782 (10,670) 2,573 (13,310)
Loss from discontinued
operations, net of
income taxes (220) (2,830) (106) (3,816)
Net income (loss) $1,562 $(13,500) $2,467 $(17,126)
Income (loss) per common
share-basic and dilutive:
Income (loss) from
continuing operations $0.06 $(0.34) $0.08 $(0.43)
Loss from discontinued
operations, net of
income taxes (0.01) (0.09) - (0.12)
Net income (loss) $0.05 $(0.43) $0.08 $(0.55)
Weighted average basic
shares 32,319,789 31,171,903 32,049,444 31,019,289
Weighted average
diluted shares 32,511,462 31,171,903 32,251,102 31,019,289
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
October 25, April 26,
2009 2009
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $76,056 $96,654
Marketable securities 18,624 17,548
Accounts receivable, net 9,189 11,935
Income taxes receivable 2,312 7,744
Deferred income taxes 16,295 16,295
Prepaid expenses and other assets 32,908 23,234
Assets held for sale 4,525 4,183
Total current assets 159,909 177,593
Property and equipment, net 1,137,534 1,177,540
Other assets:
Goodwill 313,136 313,136
Other intangible assets, net 81,631 83,588
Deferred financing costs, net 8,150 9,314
Restricted cash 2,774 2,774
Prepaid deposits and other 23,219 18,717
Total assets $1,726,353 $1,782,662
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $9,806 $9,688
Accounts payable 20,307 16,246
Accrued liabilities:
Interest 14,934 9,280
Payroll and related 43,712 47,209
Property and other taxes 36,914 31,487
Other 44,411 52,195
Liabilities related to assets held for
sale 2,177 1,888
Total current liabilities 172,261 167,993
Long-term debt, less current maturities 1,228,918 1,291,384
Deferred income taxes 27,043 24,970
Other accrued liabilities 42,255 52,575
Other long-term liabilities 17,242 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:
36,753,733 at October 25, 2009
and 36,111,089 at April 26, 2009 368 361
Class B common stock, $.01 par value;
3,000,000 shares authorized; none
issued - -
Additional paid-in capital 197,876 193,827
Retained earnings 104,295 101,828
Accumulated other comprehensive (loss)
income (11,798) (15,191)
290,741 280,825
Treasury stock, 4,326,242 shares at
October 25, 2009 and 4,340,436 shares at
April 26, 2009 (52,107) (52,399)
Total stockholders' equity 238,634 228,426
Total liabilities and stockholders'
equity $1,726,353 $1,782,662
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
Mississippi
Biloxi $17,717 $19,112 $38,031 $43,455
Natchez 7,786 8,511 16,359 17,096
Lula 15,820 15,945 33,548 34,346
Mississippi Total 41,323 43,568 87,938 94,897
Louisiana
Lake Charles 34,243 32,928 71,857 74,102
Missouri
Kansas City 19,101 17,360 38,586 35,571
Boonville 19,846 18,610 39,918 38,845
Caruthersville 7,925 7,331 16,257 15,146
Missouri Total 46,872 43,301 94,761 89,562
Iowa
Bettendorf 20,507 23,154 41,673 49,281
Davenport 11,866 13,357 24,319 23,942
Marquette 7,478 8,327 14,955 16,814
Waterloo 20,224 20,267 40,100 39,866
Iowa Total 60,075 65,105 121,047 129,903
Colorado
Black Hawk 34,595 31,423 68,385 64,612
Florida
Pompano 28,569 31,117 59,367 68,020
International
Our Lucaya 1,418 2,072 3,552 5,645
Property Net Revenues
before Other 247,095 249,514 506,907 526,741
Other 271 64 401 232
Net Revenues from
Continuing Operations $247,366 $249,578 $507,308 $526,973
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1)
(unaudited, in thousands)
Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
Mississippi
Biloxi $1,507 $1,333 $3,892 $6,245
Natchez 2,394 2,729 5,127 5,707
Lula 3,632 3,526 8,287 9,626
Mississippi Total 7,533 7,588 17,306 21,578
Louisiana
Lake Charles 4,254 5,467 11,836 16,154
Missouri
Kansas City 4,148 2,658 8,600 6,277
Boonville 6,525 5,995 13,301 12,343
Caruthersville 1,140 1,246 2,893 2,949
Missouri Total 11,813 9,899 24,794 21,569
Iowa
Bettendorf 5,286 7,945 11,268 17,514
Davenport 3,073 4,309 6,687 7,509
Marquette 1,397 2,267 3,169 4,687
Waterloo 5,510 5,589 11,358 11,722
Iowa Total 15,266 20,110 32,482 41,432
Colorado
Black Hawk 9,028 7,919 17,593 17,327
Florida
Pompano (786) (224) 1,677 2,006
International
Our Lucaya (968) (918) (1,369) (1,074)
Property EBITDA Before
Corporate and Other
Items 46,140 49,841 104,319 118,992
Corporate and Other (12,070) (13,138) (21,884) (23,297)
EBITDA Before Other
Items 34,070 36,703 82,435 95,695
Other Items:
Expense Recoveries
and Other (2) 6,762 - 6,762 (6,000)
Marquette Hotel
Demolition(3) (475) - (475) -
Caruthersville Property
Tax Settlement(4) 934 - 934 -
EBITDA from Continuing
Operations $41,291 $36,703 $89,656 $89,695
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
Three Months Ended Three Months Ended
October 25, 2009 October 26, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi $(1,979) $3,486 $1,507 $(3,093) $4,426 $1,333
Natchez 1,956 438 2,394 1,925 804 2,729
Lula 1,614 2,018 3,632 1,404 2,122 3,526
Mississippi
Total 1,591 5,942 7,533 236 7,352 7,588
Louisiana
Lake Charles 1,658 2,596 4,254 2,320 3,147 5,467
Missouri
Kansas City 3,169 979 4,148 1,503 1,155 2,658
Boonville 5,396 1,129 6,525 4,776 1,219 5,995
Caruthersville 311 829 1,140 58 1,188 1,246
Missouri Total 8,876 2,937 11,813 6,337 3,562 9,899
Iowa
Bettendorf 3,077 2,209 5,286 5,698 2,247 7,945
Davenport 2,234 839 3,073 3,249 1,060 4,309
Marquette 803 594 1,397 1,583 684 2,267
Waterloo 2,541 2,969 5,510 2,686 2,903 5,589
Iowa Total 8,655 6,611 15,266 13,216 6,894 20,110
Colorado
Black Hawk 5,265 3,763 9,028 3,432 4,487 7,919
Florida
Pompano (5,163) 4,377 (786) (4,395) 4,171 (224)
International
Our Lucaya (968) - (968) (922) 4 (918)
Total Property
Before Corporate
and Other
Items 19,914 26,226 46,140 20,224 29,617 49,841
Corporate and
Other (13,323) 1,253 (12,070) (14,456) 1,318 (13,138)
Total Before
Other Items 6,591 27,479 34,070 5,768 30,935 36,703
Other Items:
Expense
Recoveries
and Other(2) 6,762 - 6,762 - - -
Marquette
Hotel
Demolition(3) (1,433) 958 (475) - - -
Caruthersville
Property
Tax
Settlement(4) 934 - 934 - - -
Total From
Continuing
Operations $12,854 $28,437 $41,291 $5,768 $30,935 $36,703
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1)
(unaudited, in thousands)
Six Months Ended Six Months Ended
October 25, 2009 October 26, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi $(3,247) $7,139 $3,892 $(2,731) $8,976 $6,245
Natchez 4,093 1,034 5,127 4,018 1,689 5,707
Lula 4,055 4,232 8,287 5,252 4,374 9,626
Mississippi
Total 4,901 12,405 17,306 6,539 15,039 21,578
Louisiana
Lake Charles 6,501 5,335 11,836 9,709 6,445 16,154
Missouri
Kansas City 6,524 2,076 8,600 3,858 2,419 6,277
Boonville 10,988 2,313 13,301 9,914 2,429 12,343
Caruthersville 1,149 1,744 2,893 630 2,319 2,949
Missouri Total 18,661 6,133 24,794 14,402 7,167 21,569
Iowa
Bettendorf 6,712 4,556 11,268 12,967 4,547 17,514
Davenport 4,892 1,795 6,687 5,322 2,187 7,509
Marquette 1,876 1,293 3,169 3,311 1,376 4,687
Waterloo 5,440 5,918 11,358 6,004 5,718 11,722
Iowa Total 18,920 13,562 32,482 27,604 13,828 41,432
Colorado
Black Hawk 9,959 7,634 17,593 8,352 8,975 17,327
Florida
Pompano (6,970) 8,647 1,677 (6,371) 8,377 2,006
International
Our Lucaya (1,371) 2 (1,369) (1,083) 9 (1,074)
Total Property
Before Corporate
and Other Items 50,601 53,718 104,319 59,152 59,840 118,992
Corporate and
Other (24,474) 2,590 (21,884) (25,958) 2,661 (23,297)
Total Before
Other Items 26,127 56,308 82,435 33,194 62,501 95,695
Other Items:
Expense
Recoveries
and Other (2) 6,762 - 6,762 (6,000) - (6,000)
Marquette Hotel
Demolition
(3) (1,433) 958 (475) - - -
Caruthersville
Property Tax
Settlement (4) 934 - 934 - - -
Total From
Continuing
Operations $32,390 $57,266 $89,656 $27,194 $62,501 $89,695
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 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 Six Months Ended
October 25, October 26, October 25, October 26,
2009 2008 2009 2008
EBITDA $41,291 $36,703 $89,656 $89,695
Add/(deduct):
Depreciation and
amortization (28,437) (30,935) (57,266) (62,501)
Interest expense:
Interest expense,
net (17,483) (23,775) (35,461) (47,226)
Income tax (provision)
benefit 6,411 7,337 5,644 6,722
Income (loss) from
discontinued
operations, net
of income taxes (220) (2,830) (106) (3,816)
Net income (loss) $1,562 $(13,500) $2,467 $(17,126)
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 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. Expense recoveries and other of $(6.8) million for the three and
six months ended October 25, 2009 reflect income from the recording
of a receivable for reimbursement of Pittsburgh development costs.
Expense recoveries and other of $6.0 million for the six months
ended October 26, 2008 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.
3. During October, 2010 we decided to demolish the hotel at our
Marquette. As a result of this decision, our operating income for
the three and six months ended October 25, 2009 includes $0.5
million in demolition costs and $1.0 million in acceleration of
remaining depreciation.
4. Caruthersville includes the favorable impact of $0.9 million from
the settlement of a property tax appeal during both the three and
six months ended October 25, 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 Statement
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
NOTE: Other Isle of Capri Casinos, Inc. press releases and a corporate profile are available at http://www.prnewswire.com. Isle of Capri Casinos, Inc.'s home page is http://www.islecorp.com.
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.
Back to top
RELATED LINKS
http://www.islecorp.com
Custom Packages
Browse our custom packages or build your own to meet your unique communications needs.
PR Newswire Membership
Fill out a PR Newswire membership form or contact us at (888) 776-0942.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.
- Site Preview
-
Close Site Preview
-
View FullScreen
