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Isle of Capri Casinos, Inc. Announces Third Quarter Results
-- Significant Property and Corporate Cost Reductions Largely Offset Revenue Decline
-- Measurable Operational Progress Made Through Customer Service Initiatives
-- Final $95 million of Hurricane Katrina Insurance Proceeds Received

ST. LOUIS, March 3, 2009 /PRNewswire-FirstCall via COMTEX/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the third fiscal quarter ended January 25, 2009 and other Company-related news.

CONSOLIDATED RESULTS

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


                                 Three Months Ended      Nine Months Ended
                               January 25, January 27, January 25, January 27,
                                   2009       2008        2009        2008
    Net revenues, excluding
     hurricane insurance
     recoveries                  $248.2       $269.7     $784.6      $827.0
    Net revenues                  308.2        269.7      844.6       827.0
    Net income (loss)              46.1        (13.8)      29.0       (45.6)
    Net income (loss) per share    1.45        (0.45)      0.93       (1.49)
    EBITDA(1)                     130.7         40.3      217.7       122.5


In making the announcement, James B. Perry, the Company's executive vice chairman and chief executive officer, said, "While we continue to be aware of the uncertainty in businesses that rely on consumer spending during this global economic downturn, we are also optimistic about our business because of the operational changes we have made that have had a positive impact on guest satisfaction and courtesy rankings. We have made measurable progress in reducing our expenses and improving our balance sheet as a result of a number of initiatives we have undertaken during the past 18 months. While economic and regulatory challenges have led to a net revenue decline of over $42 million, for the first three quarters of fiscal 2009, we implemented cost savings measures and other operating improvements that have helped us offset all but $12 million of this amount, resulting in recurring Property EBITDA of $164 million for the first three quarters of this fiscal year. Similar efforts in the corporate office allowed us to reduce cash corporate expenses 24% during the current quarter compared to the comparable quarters of the previous fiscal year.

"In late December we settled the insurance claim related to our Biloxi property for damage sustained during Hurricane Katrina for $225 million and received the final $95 million of cash proceeds during the quarter.

"These operational improvements along with the insurance settlement allowed us to recently complete a bond tender offer which provides significant additional financial flexibility moving forward. Further, as we focus on improving our domestic operations and implementing our strategic plan, we are continuing to take the necessary steps to exit our operations in the UK and the Bahamas in the near term."

Significant items impacting EBITDA and the net income during the three and nine months ended January 25, 2009 and January 27, 2008 are as follows:



                                 Three Months Ended      Nine Months Ended
                               January 25, January 27, January 25, January 27,
                                   2009       2008        2009        2008
    Items impacting EBITDA and
     Net Loss:
      Hurricane Katrina
       Settlement                 $92.2           $-      $92.2          $-
      Write-offs and other charges    -            -       (6.0)       (6.5)
      Pre-opening                     -            -          -        (6.5)
      Development                     -         (1.5)      (0.2)       (3.9)
      Minority interest               -         (0.9)         -        (4.9)
    Additional item impacting
     Net Loss:
      Loss on early extinguishment
       of debt                        -            -          -       (13.7)



Third Quarter Highlights

The Company reported net income for the quarter of $46.1 million, or $1.45 per diluted share, compared to a loss of ($13.8) million, or ($0.45) per diluted share, for the same period of fiscal 2008. The impact of the insurance settlement was $1.87 per share during fiscal 2009.

During the quarter, net revenues before insurance proceeds decreased $21.5 million, to $248.2 million, as compared to the third quarter of fiscal 2008.

Before consideration of the items reflected in the above table, EBITDA for the third quarter decreased by $4.2 million, to $38.5 million, compared to $42.7 million for the third quarter of fiscal 2008 and Property EBITDA for the third quarter decreased $5.4 million, to $47.4 million, compared to Property EBITDA of $52.8 million for the comparable quarter last year.

In commenting on the results, Virginia McDowell, the Company's president and chief operating officer, remarked, "While our quarter had many bright spots, it has also clearly shown the challenges we still must confront, particularly in Biloxi and Pompano. Overall, I am encouraged by our performance in January and the trends we are seeing in February, which sharply improved from November and December. Our results in the quarter were negatively impacted by the renovations to our hotels in Lake Charles and Lula, but we made outstanding progress at our property in Waterloo, where our EBITDA increased over 30% during the quarter compared to last fiscal year. We also have opportunities in Colorado and Missouri as a result of recent regulatory changes. In addition, we continue to implement and modify our strategic plan from both a product and administrative perspective. We have completed the exterior re-branding of our first two Lady Luck properties - in Caruthersville and Marquette - and have a significant portion of our brand leadership in place.

"I am encouraged by the progress we have made to enhance the customer experience at our properties, even while reducing our expenses in order to lower our cost basis. Although we have prudently reduced our payroll and eliminated unnecessary programs at our properties in response to the negative impact of the national economy, we have been able to simultaneously improve our customer service scores through our See. Say. Smile. program. In fact, our positive customer feedback has increased by 45% since the inception of the program nine months ago, and our scores have increased at a rate even greater than we had expected.

"We have made progress in our efforts to streamline and improve our marketing campaigns while decreasing our overall marketing and promotional expenditures. We are also in the process of introducing a new marketing campaign for many of our properties that focuses on the value proposition that we are creating at these sites by lowering our hold percentages to increase time on device, and introducing attractive new amenity price points to make our properties the clear value choice in our target markets. In addition, we have are been able to better utilize our technology to both improve offers for our highest value customers and to re-activate dormant customers in certain markets."

Corporate and Development Expenses

Corporate and development expenses during the third quarter of fiscal 2009 decreased to $9.0 million from $11.8 million during the comparable quarter in fiscal 2008. This decrease in corporate and development expense reflects our continued efforts to reduce our corporate overhead and includes reductions related to consulting services, insurance and compensation-related charges. In line with our overall cost reduction efforts, corporate and development expense during the nine months ended January 25, 2009 decreased to $32.6 million from $35.8 million.

Total consolidated stock compensation expense, including corporate and properties, was $1.4 million for the third quarter of fiscal 2009 compared to $1.7 million for the third quarter of fiscal 2008. For the nine months ended January 25, 2009 stock compensation expense was $7.8 million compared to $5.4 million for the nine months ended January 27, 2008.

A loss from early extinguishment of debt was recognized for the nine months ended January 27, 2008 of $13.7 million. This included a $11.5 million loss from early extinguishment of debt related to the retirement of our 9% Senior Subordinated Notes refinanced by our Senior Credit Facility and a $2.2 million loss from the early extinguishment of our February 2005 Credit Facility, which was replaced with our July 2007 Credit Facility.

Capital Structure and Capital Expenditures Update

As of January 25, 2009, the Company had $216.7 million cash, cash equivalents and restricted cash and total debt of $1.5 billion. Total borrowing capacity at the end of the quarter was approximately $325.4 million

During February 2009, the Company repurchased $142.7 million of our Senior Subordinated Notes for $82.8 million through a tender offer from our available cash and cash equivalents. After expenses related to the elimination of deferred finance costs and transactions costs, the Company expects to recognize a pretax gain of approximately $57.0 million during our fourth quarter ending April 26, 2009. In addition the Company recently notified our banks of our intention to repay approximately $35.0 million on our credit facility from the balance of the insurance proceeds and other funds, in accordance with the provisions of our credit agreement.

Taking into consideration the tender and term loan reduction, pro forma capitalization as of January 25, 2009 is as follows (in millions):



                                                                  Pro Forma
                                                                 As Adjusted
                                     January 25,    Pro Forma     January 25,
                                        2009       Adjustments       2009
    Cash and cash equivalents          $181.7        $(82.8)(a)    $98.9
    Restricted cash - short term        $35.0        $(35.0)(b)       $-
    Senior Secured Credit Facility:
      July 2007 Credit Facility:
        Revolving line of credit       $128.0            $-       $128.0
        Term loans                      862.7         (35.0)(b)    827.7
      7% Senior Subordinated Notes      500.0        (142.7)(a)    357.3
    Other                                 6.3             -          6.3
                                      1,497.0        (177.7)     1,319.3
    Less current maturities              44.2         (35.0)(b)      9.2
    Long-term debt                   $1,452.8       $(142.7)    $1,310.1

    (a) Reflects repurchase of our Senior Subordinated Notes under the terms
        of our tender offer.
    (b) Reflects pending with insurance proceeds and other funds required by
        our Senior Credit Facility.




Capital expenditures for the three months ended January 25, 2009, totaled $15 million of which, approximately $9 million related to project capital expenditures.

For the nine months ended January 25, 2009, capital expenditures were approximately $45 million, of which approximately $23 million was related to project capital. Capital expenditures for the last quarter of the year are expected to be approximately $20 million, of which approximately $8 million is expected to be project capital, primarily attributable to completion of the rebranding efforts in Caruthersville and Marquette.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Tuesday, March 3, 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 (866) 783-2146. Other international callers can access the conference call by dialing (857) 350-1605. The conference call reference number is 49657642.



                              ISLE OF CAPRI CASINOS, INC.
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except share and per share data)
                                      (Unaudited)

                            Three Months Ended          Nine Months Ended
                          January 25,   January 27,  January 25,  January 27,
                             2009          2008         2009          2008
    Revenues:
      Casino                $252,158     $269,480    $788,814       $824,996
      Rooms                    9,216       10,674      35,696         37,595
      Pari-mutuel, food,
       beverage and other     33,427       38,123     104,545        114,208
      Hurricane insurance
       recoveries             60,000            -      60,000              -
        Gross revenues       354,801      318,277     989,055        976,799
          Less promotional
           allowances         46,625       48,612     144,434        149,763
            Net revenues     308,176      269,665     844,621        827,036
    Operating expenses:
      Casino                  39,360       40,963     119,463        121,656
      Gaming taxes            63,790       70,123     198,657        211,160
      Rooms                    2,624        2,507       9,206          8,852
      Pari-mutuel              2,972        4,436       9,087         11,280
      Food, beverage and other 9,908       10,614      31,500         33,643
      Marine and facilities   15,921       16,852      50,214         50,123
      Marketing and
       administrative         66,085       71,174     202,386        214,173
      Corporate and
       Development             9,039       11,846      32,570         35,839
      Hurricane insurance
       recoveries            (32,179)           -     (32,179)             -
      Pre-opening, write-offs
       and other charges           -            -       6,000         12,983
      Depreciation and
       amortization           30,981       34,871      95,988        100,698
        Total operating
         expenses            208,501      263,386     722,892        800,407
    Operating income          99,675        6,279     121,729         26,629
      Interest expense       (24,872)     (27,548)    (74,365)       (82,538)
      Interest income            752          872       1,808          3,106
      Loss on early
       extinguishment of debt      -            -           -       (13,660)
    Income (loss) before
     income taxes and
     minority interest        75,555      (20,397)     49,172        (66,463)
    Income tax (provision)
     benefit                 (29,442)       7,443     (20,185)        25,732
    Minority interest              -         (895)          -         (4,868)
      Net income (loss)      $46,113     $(13,849)    $28,987       $(45,599)

    Earnings (loss) per
     common share-basic:
      Net income (loss)        $1.45       $(0.45)      $0.93         $(1.49)

    Earnings (loss) per common
     share-diluted:
      Net income (loss)        $1.45       $(0.45)      $0.93         $(1.49)

    Weighted average basic
     shares               31,765,365   30,836,139  31,240,008     30,651,056
    Weighted average
     diluted
     shares               31,765,365   30,836,139  31,248,402     30,651,056




                               ISLE OF CAPRI CASINOS, INC.
                               CONSOLIDATED BALANCE SHEETS
                    (In thousands, except share and per share data)

                                                    (unaudited)
                               ASSETS               January 25,     April 27,
                                                       2009            2008
    Current assets:
      Cash and cash equivalents                      $181,713        $91,790
      Marketable securities                            15,971         18,533
      Accounts receivable, net                          8,897         12,195
      Insurance receivable, net                         1,209          7,689
      Income tax receivable                             9,987         28,663
      Deferred income taxes                             9,866         12,606
      Restricted cash                                  35,000
      Prepaid expenses and other assets                30,656         27,905
        Total current assets                          293,299        199,381
    Property and equipment, net                     1,247,967      1,328,986
    Other assets:
      Goodwill                                        324,336        307,649
      Other intangible assets, net                     95,834         89,252
      Deferred financing costs, net                    11,459         13,381
      Restricted cash                                   2,774          4,802
      Prepaid deposits and other                       19,122         22,948
      Deferred income taxes                                 -          7,767
        Total assets                               $1,994,791     $1,974,166

             LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Current maturities of long-term debt            $44,228         $9,698
      Accounts payable                                 20,125         29,283
    Accrued liabilities:
      Interest                                         17,757          8,580
      Payroll and related                              44,390         47,618
      Property and other taxes                         29,262         30,137
      Other                                            56,780         58,121
        Total current liabilities                     212,542        183,437
    Long-term debt, less current maturities         1,452,811      1,497,591
    Deferred income taxes                              11,756              -
    Other accrued liabilities                          58,372         52,821
    Other long-term liabilities                        48,351         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:
        36,114,694 at January 25, 2009 and 35,229,006
         at April 27, 2008                                362            353
      Class B common stock, $.01 par value; 3,000,000
       shares authorized; none issued                       -              -
      Additional paid-in capital                      194,496        188,036
      Retained earnings                                87,240         58,253
      Accumulated other comprehensive income (loss)   (18,740)        (5,601)
                                                      263,358        241,041
     Treasury stock, 4,340,476 shares at January 25,
      2009 and 4,372,073 shares at April 27, 2008     (52,399)       (53,029)
      Total stockholders' equity                      210,959        188,012
      Total liabilities and stockholders' equity   $1,994,791     $1,974,166






                                  Isle of Capri Casinos, Inc.
                                Supplemental Data - Net Revenues
                                   (unaudited, in thousands)

                             Three Months Ended          Nine Months Ended
                           January 25,  January 27,   January 25, January 27,
                              2009         2008          2009         2008
    Mississippi
      Biloxi (2)            $18,278      $20,073       $61,733      $67,844
      Natchez                 8,797        8,699        25,894       27,119
      Lula                   16,312       17,458        50,659       55,523
      Mississippi Total      43,387       46,230       138,286      150,486

    Louisiana
      Lake Charles           38,003       38,074       112,105      118,578

    Missouri
      Kansas City            17,492       17,457        53,063       55,934
      Boonville              18,151       18,325        56,996       59,394
      Caruthersville (3)      7,282        7,129        22,428       18,968
      Missouri Total         42,925       42,911       132,487      134,296

    Iowa
      Bettendorf             19,414       21,061        68,695       67,641
      Davenport              11,520       12,158        35,462       38,835
      Marquette               5,837        6,695        22,651       25,067
      Waterloo (3)           18,814       18,040        58,680       45,109
      Iowa Total             55,585       57,954       185,488      176,652

    Colorado
      Black Hawk/Colorado
       Central Station       28,054       33,524        92,667      112,052

    Florida
      Pompano (3)            33,752       41,274       101,772      111,867

    International
      Blue Chip               1,465        2,254         5,368        6,809
      Coventry (3)            2,260        3,182         7,830        5,158
      Our Lucaya              2,632        4,081         8,277       10,790
      International Total     6,357        9,517        21,475       22,757

    Insurance Recoveries -
     Biloxi (2)              60,000            -        60,000            -

    Other                       113          181           341          348

                           $308,176     $269,665      $844,621     $827,036



                              Isle of Capri Casinos, Inc.
                              Supplemental Data - EBITDA
                              (unaudited, in thousands)

                              Three Months Ended         Nine Months Ended
                            January 25,  January 27,  January 25, January 27,
                               2009         2008         2009        2008

    Mississippi
      Biloxi (2)               $734        $2,683       $6,980      $11,942
      Natchez                 3,103         2,724        8,810        8,295
      Lula                    4,164         4,666       13,790       14,956
      Mississippi Total       8,001        10,073       29,580       35,193

    Louisiana
      Lake Charles            8,662         8,552       24,816       26,773

    Missouri
      Kansas City             3,234         2,660        9,511        8,672
      Boonville               5,577         5,869       17,920       18,666
      Caruthersville (3)      1,202         1,714        4,151        4,642
      Missouri Total         10,013        10,243       31,582       31,980

    Iowa
      Bettendorf              5,227         5,895       22,741       20,648
      Davenport               3,096         3,215       10,605        9,418
      Marquette                 470           868        5,157        5,693
      Waterloo (3)            4,424         3,361       16,146        6,842
      Iowa Total             13,217        13,339       54,649       42,601

    Colorado
      Black Hawk/Colorado
       Central Station        6,421        10,506       23,748       38,416

    Florida
      Pompano (3)             2,266         2,261        4,273        4,499

    International
      Blue Chip                 (83)         (258)        (389)        (667)
      Coventry (3)             (457)       (1,740)      (2,783)      (9,994)
      Our Lucaya               (639)         (169)      (1,713)      (1,125)
      International Total    (1,179)       (2,167)      (4,885)     (11,786)

    Total Property EBITDA(1)
     Before Insurance
     Recoveries              47,401        52,807      163,763      167,676
    Insurance Recoveries -
     Biloxi (2)              92,179             -       92,179            -
    Total Property
     EBITDA(1)              139,580        52,807      255,942      167,676

    Corporate, Development
     and Other(4)(5)         (8,924)      (11,657)     (38,225)     (40,349)

    Minority Interest             -          (895)           -       (4,868)

    Total EBITDA(1)        $130,656       $40,255     $217,717     $122,459



                                 Isle of Capri Casinos, Inc.
             Supplemental Data - Reconciliation of Operating Income to EBITDA
                                  (unaudited, in thousands)

                          Three Months Ended          Three Months Ended
                           January 25, 2009            January 27, 2008

                             Depreciation                 Depreciation
                   Operating      and            Operating    and
                    Income   Amortization  EBITDA Income  Amortization EBITDA
    Mississippi
      Biloxi (2)    $(3,363)   $4,097       $734  $(1,960)   $4,643    $2,683
      Natchez         2,412       691      3,103    1,819       905     2,724
      Lula            2,132     2,032      4,164    1,948     2,718     4,666
      Mississippi
       Total          1,181     6,820      8,001    1,807     8,266    10,073

    Louisiana
      Lake Charles    5,584     3,078      8,662    4,758     3,794     8,552

    Missouri
      Kansas City     2,063     1,171      3,234    1,076     1,584     2,660
      Boonville       4,365     1,212      5,577    4,557     1,312     5,869
      Caruthers-
       ville (3)         28     1,174      1,202       94     1,620     1,714
      Missouri Total  6,456     3,557     10,013    5,727     4,516    10,243

    Iowa
      Bettendorf      2,981     2,246      5,227    3,570     2,325     5,895
      Davenport       2,060     1,036      3,096    1,944     1,271     3,215
      Marquette        (150)      620        470      153       715       868
      Waterloo (3)    1,501     2,923      4,424      749     2,612     3,361
      Iowa Total      6,392     6,825     13,217    6,416     6,923    13,339

    Colorado
      Black Hawk/
       Colorado
       Central
       Station        2,539     3,882      6,421    6,509     3,997    10,506

    Florida
      Pompano (3)    (1,961)    4,227      2,266   (1,730)    3,991     2,261

    International
      Blue Chip        (152)       69        (83)    (405)      147      (258)
      Coventry (3)   (1,518)    1,061       (457)  (3,589)    1,849    (1,740)
      Our Lucaya       (643)        4       (639)    (173)        4      (169)
      International
       Total         (2,313)    1,134     (1,179)  (4,167)    2,000    (2,167)

    Total Properties
     Before Insurance
     Recoveries      17,878    29,523     47,401   19,320    33,487    52,807
     Insurance
      Recoveries -
      Biloxi (2)     92,179         -     92,179        -         -         -
    Total
     Properties     110,057    29,523    139,580   19,320    33,487    52,807

    Corporate,
     Development and
     Other (4)(5)   (10,382)    1,458     (8,924) (13,041)    1,384   (11,657)
    Minority
     Interest             -         -          -        -         -      (895)
                    $99,675   $30,981   $130,656   $6,279   $34,871   $40,255



                              Isle of Capri Casinos, Inc.
            Supplemental Data - Reconciliation of Operating Income to EBITDA
                               (unaudited, in thousands)

                           Nine Months Ended           Nine Months Ended
                           January 25, 2009            January 27, 2008

                             Depreciation                 Depreciation
                   Operating      and            Operating    and
                    Income   Amortization  EBITDA Income  Amortization EBITDA
    Mississippi
      Biloxi (2)    $(6,094)   $13,074     $6,980  $(2,177)  $14,119  $11,942
      Natchez         6,430      2,380      8,810    5,495     2,800    8,295
      Lula            7,384      6,406     13,790    6,123     8,833   14,956
      Mississippi
       Total          7,720     21,860     29,580    9,441    25,752   35,193

    Louisiana
      Lake Charles   15,293      9,523     24,816   15,284    11,489   26,773

    Missouri
      Kansas City     5,920      3,591      9,511    4,320     4,352    8,672
      Boonville      14,279      3,641     17,920   14,853     3,813   18,666
      Caruthers-
       ville (3)        658      3,493      4,151    2,050     2,592    4,642
      Missouri
       Total         20,857     10,725     31,582   21,223    10,757   31,980

    Iowa
      Bettendorf     15,948      6,793     22,741   13,454     7,194   20,648
      Davenport       7,383      3,222     10,605    5,506     3,912    9,418
      Marquette       3,162      1,995      5,157    3,411     2,282    5,693
      Waterloo (3)    7,506      8,640     16,146      524     6,318    6,842
      Iowa Total     33,999     20,650     54,649   22,895    19,706   42,601

    Colorado
      Black Hawk/
       Colorado
       Central
       Station       10,891     12,857     23,748   26,451    11,965   38,416

    Florida
      Pompano (3)    (8,332)    12,605      4,273   (7,345)   11,844    4,499

    International
      Blue Chip        (629)       240       (389)  (1,067)      400     (667)
      Coventry (3)   (6,180)     3,397     (2,783) (14,594)    4,600   (9,994)
      Our Lucaya     (1,726)        13     (1,713)  (1,131)        6   (1,125)
      International
       Total         (8,535)     3,650     (4,885) (16,792)    5,006  (11,786)

    Total Properties
     Before Insurance
     Recoveries      71,893     91,870    163,763   71,157    96,519  167,676
      Insurance
       Recoveries -
       Biloxi(2)     92,179          -     92,179        -         -        -
    Total
     Properties     164,072     91,870    255,942   71,157    96,519  167,676

    Corporate,
     Development and
     Other (4)(5)   (42,343)     4,118    (38,225) (44,528)    4,179  (40,349)
    Minority Interest     -          -          -        -         -   (4,868)
                   $121,729    $95,988   $217,717  $26,629  $100,698 $122,459



    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          Nine Months Ended
                          January 25,   January 27,  January 25,   January 27,
                             2009          2008         2009          2008

    EBITDA               $130,656         $40,255    $217,717      $122,459
      (Add)/deduct:
      Depreciation and
       amortization        30,981          34,871      95,988       100,698
      Interest expense:
      Interest expense,
       Net                 24,120          26,676      72,557        79,432
      Loss on early
       extinguishment of debt   -               -           -        13,660
      Income tax provision
       (benefit)           29,442          (7,443)     20,185       (25,732)
    Net income (loss)     $46,113        $(13,849)    $28,987      $(45,599)




    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
    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.  For comparability purposes, the insurance recoveries from Hurricane
    Katrina related to our Biloxi property are presented separately from
    Biloxi EBITDA, net revenues and operating income.  EBITDA for the three
    and nine months ended includes $92.2 million from our insurance settlement
    for our Biloxi property.  Included in net revenue for the three and nine
    months ended January 25, 2009 is $60 million of these insurance
    recoveries.

    3.  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 nine months ended January 27,
    2008, as follows:


                      Pre-Opening Expenses
                                  January 27, 2008
               Property           Nine Months Ended

               Pompano                   $307
               Waterloo                 3,348
               Coventry                 2,802


    4.  Total consolidated stock compensation expense including corporate and
    properties is summarized as follows:


                              Three Months Ended         Nine Months Ended
                           January 25,   January 27,  January 25, January 27,
                              2009          2008         2009        2008

    Stock Compensation
     expense               $1,367         $1,660        $7,840      $5,441

    Stock compensation
     expense
     included in corporate
     and development
      expense              $1,151         $1,387        $5,984      $4,568



    5.  Write-offs and other charges for the nine months ended January 25,
    2009 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 nine months ended January 25, 2009, 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.  For the nine months
    ended January 27, 2008, write-offs and other charges reflected a $6.5
    million including a $4.9 million charge for the termination of a lease to
    develop a new casino in West Harrison County, Mississippi and the write-
    off of $1.6 million in construction projects in Davenport, Iowa, and
    Kansas City, Missouri.

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 www.sec.gov, or through the Company's website, 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

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SOURCE Isle of Capri Casinos, Inc.

http://www.islecorp.com

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