Investor Relations Presentation. Summer 2012

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Bennett Harper
5 years ago
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1 Investor Relations Presentation Summer

2 Safe Harbor In addition to historical facts or statements of current condition, this presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these statements are those regarding our prospects for future growth, our expectation of continued acquisitions and our optimism in light of current economic conditions. These statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and the actual results to differ materially. The Company describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 24, Some of these risks include those relating to licensing and other regulatory approvals, financing sources, development and construction activities, costs and delays, weather, permits, competition and business conditions in the gaming industry. Furthermore, the Company does not intend to update publicly any forward-looking statements, except as may be required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of

3 Discussion Overview Regional gaming company with geographically diverse footprint 15 properties in 6 states Award winning leadership team with extensive experience and significant accomplishments Fiscal discipline Operational excellence Several growth opportunities with new projects and existing properties New build projects in Cape Girardeau, MO and Nemacolin, PA. Re-branding and refurbishing opportunities within existing portfolio Monetizing non-core assets Biloxi, MS Crown (Lake Charles) 3

diverse property portfolio Under development (1) Currently operated under

4 Company Overview The Company currently owns and operates 15 casino properties ~ 15,000 slot machines ~ 370 table games ~ 3,100 hotel rooms Geographically diverse property portfolio Under development (1) Currently operated under legacy brand name Rainbow Casino. The Company intends to rebrand this property as Lady Luck

5 Focus on proven core operating principles Two-brand strategy: regional versus local Clean, Safe, Friendly, Fun, Value Leverage human capital Utilize customer research to drive satisfaction Continue to improve value proposition for customers 5

6 Driving value through product offerings New concepts being well-received Originally introduced in Caruthersville, MO Rolling out to additional properties (Kansas City pictured) Prudent capital spending results in impactful value and statement to customers 6

Boonville, MO property first to roll out the concept 10 local providers in central Missouri Coming

7 Driving value through product offerings Above: Introduction of the first Farmer s Pick Boonville, MO Farmer s Pick Buffet Locally-grown ingredients: meats, eggs, dairy, produce, jams, sauces, and wines Boonville, MO property first to roll out the concept 10 local providers in central Missouri Coming in FY 2013: Black Hawk, Pompano, Waterloo, Vicksburg, Cape Girardeau Right: Pompano Park (FL) garden 7

8 Refurbishments with modest capital spending Boonville, MO 8

9 Refurbishments with modest capital spending Pompano Park (FL) Above: Fling Bar with live entertainment Bottom: Bragozzo, casual Italian restaurant 9

Refurbishments with modest capital spending Lake

Entrance into the Grand Palais riverboat Below:

Grand Palais riverboat $15mm divestiture of the

Grand Palais riverboat and public areas ahead of

10 Refurbishments with modest capital spending Lake Charles, LA Above, left: Hotel lobby; above, right: Entrance into the Grand Palais riverboat Below: Before and after photos of the restrooms on the Grand Palais riverboat $15mm divestiture of the smaller of Isle s two riverboats Recently renovated Grand Palais riverboat and public areas ahead of sale Sale proceeds will be used to completely renovate main hotel tower 10

facility More identifiable parking lot signage Friendly Newly designed table pit area New

11 Rebranding Rainbow Casino, Vicksburg, MS $5mm capital investment completion by Fall 2012 Clean New carpet and paint throughout interior Refresh restrooms Safe Improved lighting in facility More identifiable parking lot signage Friendly Newly designed table pit area New lobby layout Fun Establish the Lady Luck atmosphere Lone Wolf venue and other F&B enhancements 11

12 Rebranding Rainbow Casino, Vicksburg, MS Above: As of mid-may, exterior work and restrooms are nearly complete. Right: Before reinvestment 12

8mm investment; 336% EBITDA return Marquette (Sept. 2009): $3.

13 Recent rebrands proving successful Lady Luck conversions: Caruthersville (Dec. 2008): $6.2mm investment; 12% EBITDA return CCS Black Hawk (June 2009): $0.8mm investment; 336% EBITDA return Marquette (Sept. 2009): $3.2mm investment; 17% EBITDA return Note: EBITDA return based on LTM EBITDA compared to EBITDA one-year prior to investment; Caruthersville LTM EBITDA pro forma for Spring 2011 flooding. 13

14 Growth Catalysts Isle Cape Girardeau Anticipated opening in November 2012 $125 million investment 150,000 sq. ft. facility 40,000 sq. ft. gaming floor 1,000 slot machines, 28 table games and five food outlets 750-person conference/event space 14

15 Growth Catalysts Isle Cape Girardeau Drive time from Cape Girardeau: Harrah s Metropolis 1 hr. 15 min. LL Caruthersville 1 hr. 19 min. River City 1 hr. 45 min. 15

16 Growth Catalysts Isle Cape Girardeau Similar market characteristics as Boonville, MO and Waterloo, IA Insulated from competition Boonville, MO Waterloo, IA Cape Girardeau, MO Population (1) 390, , ,000 Revenue (2) $79.0mm $84.7mm EBITDA (2) $28.2mm $25.7mm Gaming Tax Rate (3) Gaming positions 21% 22% 21% 1,016 1,217 1, Adult population within 60 miles (25+ years old). 2. Last twelve months ended Q3 FY12 (January 22, 2012) 3. Source: American Gaming Association, State of the States

17 Growth Catalysts Isle Cape Girardeau I-55 approx. 3.5 miles South Down town Cape Girardeau Approx. 1 mile Isle Cape Girardeau 17

18 Growth Catalysts Isle Cape Girardeau As of May,

19 Growth Catalysts Isle Cape Girardeau As of May,

20 Growth Catalysts Isle Cape Girardeau As of May,

21 Growth Catalysts Nemacolin Woodlands Nemacolin Woodlands Resort Located in Southwestern Pennsylvania; one of only 6 hotels and resorts in the world to host Forbes Five-Star, AAA Five-Diamond lodging and dining Situated on 2,000 acres 327 rooms, suites, townhouses and luxury homes Vast array of amenities Plan 600 slots and approximately 25 table games 21

Revenue over $30 million Isle s management fee is 100% of EBITDA after licensee/owner fees Appeal timeline:

22 Growth Catalysts Nemacolin Woodlands Terms of Management Agreement: Isle to pay for build-out (currently expected to be $50 million) Licensee/Owner receives annual base fee plus a percentage of excess Gross Gaming Revenue over $30 million Isle s management fee is 100% of EBITDA after licensee/owner fees Appeal timeline: Oral arguments were heard March 7, 2012 The timeline for ultimate resolution of the matter is not known at this time 22

23 Growth Catalysts Nemacolin Woodlands Drive time from Nemacolin Woodlands Resort: Morgantown, WV 45 min. Meadows 55 min. Rivers 1 hr. 18 min. Wheeling 1 hr. 35 min. Mountaineer 2 hrs. Charles Town 2 hrs. 16 min. 23

24 Financial Summary ($millions) Capitalization Jan. 22, 2012 April 24, 2011 Cash and cash equivalents $ 72.4 $ 75.2 Senior Secured Credit Facility: Novem ber 2013 Credit Facility: Revolving line of credit Term loans % Senior Notes % Senior Subordinated Notes Other , ,192.6 Less current m aturities Long-term debt $ 1,160.3 $ 1,

25 Financial Summary Continued focus on financial discipline strengthens the balance sheet Leverage has decreased 2.0x turns since FYE 2008 (1) Ample liquidity to fund pipeline Continued deleveraging after the opening of Cape Girardeau Net Debt / EBITDA FYE 2008 FYE 2009 FYE 2010 FYE 2011 LTM 3Q12 PF LTM 3Q12 Maturity profile (2) ($ in millions) $357.3 $300.0 $500.0 $ Revolver (funded) Revolver (unfunded) Term Loan B Sr. Sub Notes Sr. Notes (1) Pro forma for flooding in Spring (2) Does not factor in principle payments; excludes Other Debt. 25

26 Financial Summary Flooding along the Mississippi River during FY 2012 impacted results at our properties in Davenport, Iowa, Caruthersville, Missouri and Lula, Natchez and Vicksburg, Mississippi Property Closing Date Reopening Date Number Days Closed Davenport, IA April 15, 2011 May 1, (a) Caruthersville, MO May 1, 2011 May 13, Lula, MS May 3, 2011 June 3, 2011 September 2, (b) Natchez, MS May 7, 2011 June 17, Vicksburg, MS May 11, 2011 May 27, a) Six days of closure in the first quarter of FY b) The second casino barge reopened September 2, 2011 after flood damage was remediated. 26

27 Financial Summary ($millions) Nine Months Ended Jan. 22, 2012 (a) Jan. 23, 2011 Net revenues $ $ Property EBITDA before Other Item s Corporate (28.4) (30.6) EBITDA Depreciation & Am ortization (64.7) (66.9) Interest expense, net (64.8) (67.3) Derivative incom e/(expense) 0.3 (1.3) Incom e tax (provision) benefit Incom e (loss) from continuing operations $ (5.0) $ (7.1) Incom e (loss) per share $ (0.13) $ (0.22) a) 5 properties (6 casinos) closed for a total of 197 days. 27

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EX a _1ex99d1.htm EX-99.1 Exhibit 99.1

EX a _1ex99d1.htm EX-99.1 Exhibit 99.1 EX-99.1 2 a16-17637_1ex99d1.htm EX-99.1 Exhibit 99.1 ISLE OF CAPRI CASINOS, INC. ANNOUNCES FISCAL 2017 FIRST QUARTER RESULTS SAINT LOUIS, MO August 30, Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the Company