ISLE Isleworth Healthcare Acquisition Corporation

Isle of Capri Casinos, Inc. Announces Full Year and Fourth Quarter Results BILOXI, Miss., June 23 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (NASDAQ:ISLE) today reported financial results for the fiscal year and fourth quarter ended April 24, 2005. For the fiscal year 2005, the company reported income from continuing operations of $21.0 million or $0.68 per diluted common share compared to income from continuing operations of $26.3 million or $0.86 per diluted common share for fiscal 2004. The company reported a loss from discontinued operations of $2.9 million primarily related to the goodwill impairment recorded in the fourth fiscal quarter of 2005 related to the sale of the Colorado Grande-Cripple Creek, which was completed on April 25, 2005, as compared to income of $1.4 million in fiscal 2004. Net income for the fiscal year ended April 24, 2005 was $18.0 million compared to $27.7 million for the prior fiscal year. Net revenues for both fiscal years were $1.1 billion. Adjusted EBITDA(1) in fiscal 2005 was $224.2 million compared to the prior fiscal year Adjusted EBITDA(1) of $249.8 million. For the fourth fiscal quarter, the company reported income from continuing operations of $7.1 million or $0.22 per diluted common share compared to a loss from continuing operations of $4.7 million or $0.15 per diluted common share for the same quarter last year. The company reported a loss from discontinued operations of $3.6 million primarily related to the goodwill impairment recorded in the fourth fiscal quarter related to the sale of the Colorado Grande-Cripple Creek, which was completed on April 25, 2005, as compared to income of $0.3 million in fourth fiscal quarter 2004. Net income for the fourth fiscal quarter was $3.5 million compared to a net loss of $4.3 million of the same quarter last year. Net revenues for the fourth fiscal quarter were $299.7 million compared to $290.9 million for the same period in fiscal 2004. Adjusted EBITDA(1) for the fourth fiscal quarter was $62.4 million compared to $65.9 million for the same period in fiscal 2004. "We are coming close to completing most of the expansion projects at our core properties. These properties have seen a great deal of change and development over the last year and quarter marking this as a period of transition at the Isle," Bernard Goldstein, Isle of Capri Casinos, Inc. chairman and chief executive officer, said. During the fourth fiscal quarter and year ended April 24, 2005, the company incurred a loss on early extinguishment of debt in connection with the refinancing of its $500.0 million senior secured credit facility. The company also recorded a valuation charge related to the Rosemont, Illinois license and a gain for selling an option in St. Louis, Missouri as well as preopening expenses related to the Blue Chip-Walsall property opening. The following table reflects comparable net income adjusted for these items: Three Months Ended Fiscal Year Ended April 24, April 25, April 24, April 25, 2005 2004 2005 2004 (In thousands) Net income (loss), as reported $3,451 $(4,346) $18,038 $27,749 Add/(deduct): Loss (income) from discontinued operations net of income taxes (13) 3,607 (310) 2,946 (1,418) Loss on early extinguishment of debt, net of income taxes (11) 3,046 15,140 3,046 15,140 Other charges, net of income taxes (6) (7) 138 -- 1,078 -- Preopening, net of income taxes (5) -- 243 143 1,432 Adjusted net income $10,242 $10,727 $25,251 $42,903 Adjusted earnings per diluted common share $0.33 $0.34 $0.82 $1.39 Adjusted weighted average common shares, assuming dilution 31,391 31,150 30,930 30,841 Highlights * The company signed a development agreement with the City of Bettendorf pursuant to which the company will construct a new 250-room Isle hotel, additional parking, a Kitt's Kitchen restaurant, expansion of the existing buffet, and the City will construct a 50,000 square foot convention center adjacent to the company's facility that will be managed by the Isle- Bettendorf. The cost of the company's portion of this project will be approximately $45.0 million, and the new hotel is scheduled to open in the late spring of 2007. * The company has been selected by the Iowa Racing and Gaming Commission as the successful applicant for a gaming license in Waterloo, Iowa. The company plans to spend approximately $119.0 million on constructing a 35,000 square foot single level casino with 1,300 gaming positions, three of its signature restaurants, a 200-room hotel and 1,000 parking spaces. The company expects the construction of the project to take approximately 24 months including the acquisition of necessary permits and licenses. * In May 2005, the company signed an agreement with resort developer Eighth Wonder to manage the casino and related operations included in Eighth Wonder's proposal for a new integrated resort complex in Singapore should Eighth Wonder be selected to develop such complex. The proposal is expected to be submitted in early calendar 2006. * The company expects to complete the new 400-room hotel expansion at the Isle-Biloxi by mid-summer and expects to open a spa in early fall of 2005. The company's new casino is currently under construction offsite and will feature significantly expanded gaming space, new entertainment venues, restaurants and other amenities. The company plans to close the existing casino for approximately two weeks between Thanksgiving and Christmas of 2005 while it moves the new facility into place. * Both the Isle-Black Hawk's and the Colorado Central Station-Black Hawk's casino expansions opened this quarter marking a milestone in the $94.0 million construction and renovation project currently underway. In mid-June, additional parking, a new Kitt's Kitchen restaurant and the sky bridges connecting the Isle-Black Hawk and the Colorado Central Station-Black Hawk also were completed. * Isle-Boonville has begun construction on the previously announced 140- room hotel, which will include 20 suites and a 6,000 square foot event center. The project is expected to be completed in late spring of 2006 at a cost of approximately $17.5 million. * The company continues to deploy the IGT Advantage(TM) Casino System to replace the existing systems in six of its casinos. The company began the rollout of this system at the Colorado Central Station-Black Hawk, the Isle- Biloxi and the Isle-Vicksburg. Upon completion at these casinos, the company will rollout the system at the Isle-Lula, the Isle-Natchez and one other location yet to be determined. After implementation, these properties will feature the NexGen(TM) Interactive Display, supporting loyalty-building Bonusing(TM) tools, which will allow the company to enhance its uniquely branded marketing programs. * During the fourth fiscal quarter, the company refinanced its senior secured credit facility. The company now has a term loan of $250.0 million with an additional $50.0 million delayed draw term loan available until August 3, 2005, and an undrawn revolving credit line of $400.0 million. The covenants associated with the credit facility provide more flexibility as the company continues to pursue its development goals. The company incurred a pre-tax loss from early extinguishment of debt of $5.3 million. Timothy Hinkley, Isle of Capri Casinos, Inc. president and chief operating officer, said: "This past quarter we continued to stay focused on our long term goals of enhancing and expanding our core properties and delivering to our customers a state-of-the-art gaming experience. We are looking forward to taking advantage of our newly expanded and enhanced product offerings in the coming year." Updates * In November 2004, voters in the State of Florida voted to amend the state's constitution to allow the voters of Miami-Dade and Broward counties (Broward County is the location of the Pompano Park Racetrack) to decide whether to approve slot machines in racetracks and jai alai frontons in their respective counties. Broward county voters passed their local referendum and Dade county voters rejected their referendum in March 2005. Enabling gaming legislation was not passed in the current session of the Florida legislature despite the constitutional requirement that such legislation be in effect by July 1, 2005. The company and the other Broward county pari-mutuels filed a lawsuit seeking authority to proceed with the development of slot machine facilities without the enabling legislation. On June 21, 2005, the Circuit Court judge issued a decision in favor of pari-mutuel facilities. However, the regulation and timing of installation and operation of the slot machines has not been finally determined. * During the fourth fiscal quarter, the governor of Illinois appointed a new gaming board. For the past approximately seven months, the gaming board could take no action since there was no quorum. One of the first acts by the new gaming board was to authorize the reinstatement of the proceeding to revoke the license previously granted to Emerald Casino Inc. Due to the continuing uncertainty with respect to this matter, the company recorded a valuation charge for the full amount of its $2.5 million investment in the license. * The company sold an option that it had previously acquired related to the purchase of real estate in St. Louis, Missouri; and accordingly, recorded a gain of $2.3 million during the fourth fiscal quarter. * The company remains committed to its development project in the United Kingdom to build a casino in Coventry; however, legislation enacted in April 2005 limits the number of regional casinos to one. This may be increased. The Isle has obtained all necessary gaming licenses to open a casino at the RICOH(TM) Arena Coventry in the summer of 2006 under the Gaming Act of 1968. The company believes it is well positioned to develop a regional casino in Coventry should it be awarded the one regional casino license. Operational Review of the Fourth Quarter Fiscal 2005 Compared to the Fourth Quarter Fiscal 2004 In Mississippi, the company's four operations contributed 24% of its net revenues. Isle-Biloxi's net revenues were up minimally and Adjusted EBITDA(1) decreased due to increased land rent and additional maintenance during the construction period. The company expects to have the new hotel completed and opened by mid-summer 2005. Isle-Natchez experienced an increase in net revenues and Adjusted EBITDA(1) driven by increased marketing efforts in its outer markets. Isle-Vicksburg showed a decline in net revenues due to competitive pressures and Adjusted EBITDA(1) primarily due to increased marketing and employee benefit costs. Despite continuing to face a very competitive and contracting market, the Isle-Lula showed a slight increase in net revenues and Adjusted EBITDA(1) remained flat. In Louisiana, the company's two properties contributed 24% of its net revenues. Isle-Lake Charles experienced a slight decrease in net revenues due to lower table hold but showed an increase in Adjusted EBITDA(1) due to an improvement in overall cost controls. Isle-Bossier City showed a decrease in net revenues related to competitive pressures; however, Adjusted EBITDA(1) increased due to improved overall cost containment. The company expects to complete modest renovation of the Isle-Bossier City casino by the end of June 2005. In Missouri, the company's two properties contributed 15% of its net revenues. Isle-Kansas City's net revenues and Adjusted EBITDA(1) were down due to the lower hold percentages. Isle-Boonville continues to show increases in net revenue and Adjusted EBITDA(1) as it penetrates its market more deeply. In Iowa, the company's three casinos contributed 18% of its net revenues. In the Quad Cities, both properties experienced a slight decrease in net revenues related to increased marketing redemptions. Isle-Bettendorf increased Adjusted EBITDA(1) due primarily to labor related cost controls. Rhythm City-Davenport showed a decrease in Adjusted EBITDA(1) primarily due to a $0.8 million charge to increase the annual operating lease expense because of a change in the recognition of long term lease costs. Adjusted EBITDA(1) was also negatively impacted by a 2% increase in the Iowa gaming tax rates, which became effective July 1, 2004. Isle-Marquette experienced increases in both net revenues and Adjusted EBITDA(1) due to an increased response to marketing programs. In Colorado, the company's two casino operations contributed 13% of its net revenues. Net revenues and Adjusted EBITDA(1) for these properties increased despite the continued construction during the quarter. The new 162- room Colorado Central Station hotel is currently ahead of schedule and expected to be completed by end of calendar year. Construction has now resumed on the extension of Main Street to Colorado Route 119, which was temporarily delayed due to engineering problems. Completion is expected in spring 2006. The sale of Colorado Grande was completed on April 25, 2005 and fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations. Our international operations account for a small percentage of our overall revenues. Isle-Our Lucaya experienced an increase in net revenues and Adjusted EBITDA(1) due to a strong peak season and the recording of $2.0 million of business interruption proceeds, which was included in Adjusted EBITDA(1). New development expense increased approximately $3.0 million due to the company's continuing development efforts in the United Kingdom, Florida, and Singapore. Isle of Capri Casinos, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended Fiscal Year Ended April April April April 24, 25, 24, 25, 2005 2004 2005 2004 Revenues: Casino $298,972 $290,700 $1,121,316 $1,116,351 Hotel, pari-mutuel, food, beverage & other 59,593 55,970 217,277 208,659 Gross revenues 358,565 346,670 1,338,593 1,325,010 Less promotional allowances 58,875 55,811 226,985 219,568 Net revenues 299,690 290,859 1,111,608 1,105,442 Operating and other expenses: Properties (2) 224,826 218,267 850,015 828,498 Corporate (3) 6,956 4,186 23,039 21,298 New development (4) 5,464 2,514 14,378 5,853 Preopening (5) -- 243 247 2,293 Other charges, net (6) (7) 238 -- 1,859 -- Depreciation and amortization (8) 24,660 24,290 97,418 89,772 Total operating and other expenses 262,144 249,500 986,956 947,714 Operating income 37,546 41,359 124,652 157,728 Net interest expense (9) (18,658) (20,559) (73,473) (82,584) Minority interest (10) (371) (2,033) (5,493) (10,072) Loss on early extinguishment of debt (11) (5,251) (26,115) (5,251) (26,115) Income (loss) from continuing operations before income taxes 13,266 (7,348) 40,435 38,957 Income tax expense (benefit) (12) 6,208 (2,692) 19,451 12,626 Income (loss) from continuing operations 7,058 (4,656) 20,984 26,331 Income (loss) from discontinued operations (including minority interest and goodwill impairment), net of income taxes (3,607) 310 (2,946) 1,418 Net income (loss) $3,451 $(4,346) $18,038 $27,749 Per share data - diluted: Income (loss) from continuing operations $0.22 $(0.15) $0.68 $0.86 Income (loss) from discontinued operations (including minority interest and goodwill impairment), net of income taxes (13) (0.11) -- (0.10) 0.05 Net income (loss) $0.11 $(0.15) $0.58 $0.91 Weighted average diluted common shares 31,391 29,648 30,930 30,466 Selected Consolidated Balance Sheet Accounts April 24, 2005 April 25, 2004 (In thousands) Cash and cash equivalents $146,743 $134,582 Property and equipment, net 1,026,906 907,460 Debt 1,156,118 1,088,864 Stockholders' equity 261,396 241,406 Isle of Capri Casinos, Inc. Comparative Financial Highlights by Casino Property (In thousands) Three Months Ended April 24, April 25, 2005 2004 Adjusted Adjusted EBITDA EBITDA Net Adjusted Margin Net Adjusted Margin Revenues EBITDA % Revenues EBITDA % (14) (1) (1) (14) (1) (1) MISSISSIPPI BILOXI (2) $21,814 $4,518 20.7% $21,576 $5,517 25.6% NATCHEZ 10,438 3,202 30.7% 9,768 2,848 29.2% VICKSBURG 14,639 2,375 16.2% 14,960 5,264 35.2% LULA 24,568 7,241 29.5% 23,955 7,265 30.3% MISSISSIPPI TOTAL $71,459 $17,336 24.3% $70,259 $20,894 29.7% LOUISIANA BOSSIER CITY $28,013 $5,271 18.8% $29,676 $5,153 17.4% LAKE CHARLES 44,114 10,525 23.9% 44,641 9,812 22.0% LOUISIANA TOTAL $72,127 $15,796 21.9% $74,317 $14,965 20.1% MISSOURI KANSAS CITY $24,577 $4,749 19.3% $25,607 $5,178 20.2% BOONVILLE 18,909 5,621 29.7% 17,884 5,551 31.0% MISSOURI TOTAL $43,486 $10,370 23.8% $43,491 $10,729 24.7% IOWA BETTENDORF $25,273 $9,489 37.5% $25,568 $9,127 35.7% DAVENPORT 17,604 4,426 25.1% 17,862 6,067 34.0% MARQUETTE 10,960 2,708 24.7% 9,995 2,032 20.3% IOWA TOTAL $53,837 $16,623 30.9% $53,425 $17,226 32.2% COLORADO BLACK HAWK (15) $28,369 $9,672 34.1% $25,655 $9,467 36.9% COLORADO CENTRAL STATION (15) 9,971 1,252 12.6% 8,657 1,057 12.2% COLORADO TOTAL $38,340 $10,924 28.5% $34,312 $10,524 30.7% INTERNATIONAL BLUE CHIP (5) (16) $2,171 $(473)(21.8%) $1,000 $(258) (25.8%) OUR LUCAYA (2) (5) 9,381 3,838 40.9% 5,500 (1,627) (29.6%) INTERNATIONAL TOTAL $11,552 $3,365 29.1% $6,500 $(1,885) (29.0%) CORPORATE & OTHER (17) $8,889 $(11,970) N/M $8,555 $(6,561) N/M TOTAL $299,690 $62,444 20.8% $290,859 $65,892 22.7% Isle of Capri Casinos, Inc. Comparative Financial Highlights by Casino Property (In thousands) Fiscal Year Ended April 24, April 25, 2005 2004 Adjusted Adjusted EBITDA EBITDA Net Adjusted Margin Net Adjusted Margin Revenues EBITDA % Revenues EBITDA % (14) (1) (1) (14) (1) (1) MISSISSIPPI BILOXI (2) $80,252 $15,821 19.7% $83,675 $20,004 23.9% NATCHEZ 35,836 9,119 25.4% 33,882 8,603 25.4% VICKSBURG 54,684 11,737 21.5% 55,420 16,681 30.1% LULA 85,541 21,073 24.6% 87,935 24,199 27.5% MISSISSIPPI TOTAL $256,313 $57,750 22.5% $260,912 $69,487 26.6% LOUISIANA BOSSIER CITY $109,353 $23,248 21.3% $110,495 $19,559 17.7% LAKE CHARLES 172,081 40,506 23.5% 169,681 38,529 22.7% LOUISIANA TOTAL $281,434 $63,754 22.7% $280,176 $58,088 20.7% MISSOURI KANSAS CITY $94,721 $18,267 19.3% $93,228 $17,791 19.1% BOONVILLE 71,553 20,723 29.0% 68,217 19,001 27.9% MISSOURI TOTAL $166,274 $38,990 23.4% $161,445 $36,792 22.8% IOWA BETTENDORF $100,283 $34,263 34.2% $100,363 $33,337 33.2% DAVENPORT 69,349 17,685 25.5% 68,072 18,965 27.9% MARQUETTE 42,018 10,695 25.5% 42,051 10,596 25.2% IOWA TOTAL $211,650 $62,643 29.6% $210,486 $62,898 29.9% COLORADO BLACK HAWK (15) $104,974 $37,236 35.5% $106,356 $39,886 37.5% COLORADO CENTRAL STATION (15) 33,614 2,464 7.3% 42,560 8,493 20.0% COLORADO TOTAL $138,588 $39,700 28.6% $148,916 $48,379 32.5% INTERNATIONAL BLUE CHIP (5) (16) $7,856 $(1,492)(19.0%) $1,861 $27 1.5% OUR LUCAYA (2) (5) 23,259 (573) (2.5%) 7,540 (2,149) 28.5%) INTERNATIONAL TOTAL $31,115 $(2,065) (6.6%) $9,401 $(2,122)(22.6%) CORPORATE & OTHER (17) $26,234 $(36,596) N/M $34,106 $(23,729) N/M TOTAL $1,111,608 $224,176 20.2% $1,105,442 $249,793 22.6% Isle of Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Three Months Ended April 24, 2005 Depreciation Operating & Other Adjusted Operating Income Amortization Preopening Charges EBITDA Income (Loss) (5) (6) (1) Margin% (1) MISSISSIPPI BILOXI (2) $1,973 $2,545 $-- $-- $4,518 9.0% NATCHEZ 2,352 850 -- -- 3,202 22.5% VICKSBURG 1,152 1,223 -- -- 2,375 7.9% LULA 4,975 2,266 -- -- 7,241 20.2% MISSISSIPPI TOTAL $10,452 $6,884 $-- $-- $17,336 14.6% LOUISIANA BOSSIER CITY 2,762 2,509 -- -- 5,271 9.9% LAKE CHARLES 6,991 3,534 -- -- 10,525 15.8% LOUISIANA TOTAL $9,753 $6,043 -- -- $15,796 13.5% MISSOURI KANSAS CITY 2,840 1,909 -- -- 4,749 11.6% BOONVILLE 4,496 1,125 -- -- 5,621 23.8% MISSOURI TOTAL $7,336 $3,034 $-- $-- $10,370 16.9% IOWA BETTENDORF 7,470 2,019 -- -- 9,489 29.6% DAVENPORT 2,413 2,013 -- -- 4,426 13.7% MARQUETTE 1,979 729 -- -- 2,708 18.1% IOWA TOTAL $11,862 $4,761 $-- $-- $16,623 22.0% COLORADO BLACK HAWK (15) 7,777 1,895 -- -- 9,672 27.4% COLORADO CENTRAL STATION (15) 351 901 -- -- 1,252 3.5% COLORADO TOTAL $8,128 $2,796 $-- $-- $10,924 21.2% INTERNATIONAL BLUE CHIP (5)(16) (525) 52 -- -- (473) (24.2%) OUR LUCAYA (2)(5) 3,449 389 -- -- 3,838 36.8% INTERNATIONAL TOTAL $2,924 $441 $-- $-- $3,365 25.3% CORPORATE & OTHER (17) $(12,909) $701 $-- $238 $(11,970) N/M TOTAL $37,546 $24,660 $-- $238 $62,444 12.5% Three Months Ended April 25, 2004 Depreciation Operating & Other Adjusted Operating Income Amortization Preopening Charges EBITDA Income (Loss) (5) (6) (1) Margin% (1) MISSISSIPPI BILOXI $3,383 $2,134 $-- $-- $5,517 15.7% NATCHEZ 2,073 775 -- -- 2,848 21.2% VICKSBURG 4,057 1,207 -- -- 5,264 27.1% LULA 4,868 2,397 -- -- 7,265 20.3% MISSISSIPPI TOTAL $14,381 $6,513 $-- $-- $20,894 20.5% LOUISIANA BOSSIER CITY 2,212 2,941 -- -- 5,153 7.5% LAKE CHARLES 6,592 3,220 -- -- 9,812 14.8% LOUISIANA TOTAL $8,804 $6,161 $-- $-- $14,965 11.8% MISSOURI KANSAS CITY 3,174 2,004 -- -- 5,178 12.4% BOONVILLE 3,929 1,622 -- -- 5,551 22.0% MISSOURI TOTAL $7,103 $3,626 $-- $-- $10,729 16.3% IOWA BETTENDORF 7,353 1,774 -- -- 9,127 28.8% DAVENPORT 3,852 2,215 -- -- 6,067 21.6% MARQUETTE 1,228 804 -- -- 2,032 12.3% IOWA TOTAL $12,433 $4,793 $-- $-- $17,226 23.3% COLORADO BLACK HAWK (15) 7,783 1,684 -- -- 9,467 30.3% COLORADO CENTRAL STATION (15) 515 542 -- -- 1,057 5.9% COLORADO TOTAL $8,298 $2,226 $-- $-- $10,524 24.2% INTERNATIONAL BLUE CHIP (5) (16) (530) 28 244 -- (258) (53.0%) OUR LUCAYA (5) (1,966) 340 (1) -- (1,627) (35.7%) INTERNATIONAL TOTAL $(2,496) $368 $243 $-- $(1,885) (38.4%) CORPORATE & OTHER (17) $(7,164) $603 $-- $-- $(6,561) N/M TOTAL $41,359 $24,290 $243 $-- $65,892 14.2% Isle of Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Fiscal Year Ended April 24, 2005 Depreciation Operating & Other Adjusted Operating Income Amortization Preopening Charges EBITDA Income (Loss) (5) (7) (1) Margin% (1) MISSISSIPPI BILOXI (2) $7,164 $8,657 $-- $-- $15,821 8.9% NATCHEZ 5,823 3,296 -- -- 9,119 16.2% VICKSBURG 7,046 4,691 -- -- 11,737 12.9% LULA 10,130 10,943 -- -- 21,073 11.8% MISSISSIPPI TOTAL $30,163 $27,587 $-- $-- $57,750 11.8% LOUISIANA BOSSIER CITY 12,858 10,390 -- -- 23,248 11.8% LAKE CHARLES 27,036 13,470 -- -- 40,506 15.7% LOUISIANA TOTAL $39,894 $23,860 $-- $-- $63,754 14.2% MISSOURI KANSAS CITY 10,644 7,623 -- -- 18,267 11.2% BOONVILLE 14,332 6,391 -- -- 20,723 20.0% MISSOURI TOTAL $24,976 $14,014 $-- $-- $38,990 15.0% IOWA BETTENDORF 26,840 7,423 -- -- 34,263 26.8% DAVENPORT 10,268 7,417 -- -- 17,685 14.8% MARQUETTE 7,602 3,093 -- -- 10,695 18.1% IOWA TOTAL $44,710 $17,933 -- -- $62,643 21.1% COLORADO BLACK HAWK (15) 30,065 7,171 -- -- 37,236 28.6% COLORADO CENTRAL STATION (15) (301) 2,765 -- -- 2,464 (0.9%) COLORADO TOTAL $29,764 $9,936 -- -- $39,700 21.5% INTERNATIONAL BLUE CHIP (5) (16) (1,952) 213 247 -- (1,492) (24.8%) OUR LUCAYA (2) (5) (2,061) 1,488 -- -- (573) (8.9%) INTERNATIONAL TOTAL $(4,013) $1,701 $247 -- $(2,065) (12.9%) CORPORATE & OTHER (17) $(40,842) $2,387 $-- $1,859 $(36,596) N/M TOTAL $124,652 $97,418 $247 $1,859 $224,176 11.2% Fiscal Year Ended April 25, 2004 Depreciation Operating & Other Adjusted Operating Income Amortization Preopening Charges EBITDA Income (Loss) (5) (7) (1) Margin% (1) MISSISSIPPI BILOXI $12,075 $7,929 -- -- $20,004 14.4% NATCHEZ 5,931 2,672 -- -- 8,603 17.5% VICKSBURG 11,747 4,934 -- -- 16,681 21.2% LULA 14,322 9,877 -- -- 24,199 16.3% MISSISSIPPI TOTAL $44,075 $25,412 -- -- $69,487 16.9% LOUISIANA BOSSIER CITY 10,617 8,942 -- -- 19,559 9.6% LAKE CHARLES 27,076 11,453 -- -- 38,529 16.0% LOUISIANA TOTAL $37,693 $20,395 -- -- $58,088 13.5% MISSOURI KANSAS CITY 10,971 6,820 -- -- 17,791 11.8% BOONVILLE 12,791 6,210 -- -- 19,001 18.8% MISSOURI TOTAL $23,762 $13,030 -- -- $36,792 14.7% IOWA BETTENDORF 25,954 7,383 -- -- 33,337 25.9% DAVENPORT 9,910 9,055 -- -- 18,965 14.6% MARQUETTE 7,436 3,160 -- -- 10,596 17.7% IOWA TOTAL $43,300 $19,598 $-- $-- $62,898 20.6% COLORADO BLACK HAWK (15) 33,109 6,777 -- -- 39,886 31.1% COLORADO CENTRAL STATION (15) 6,845 1,648 -- -- 8,493 16.1% COLORADO TOTAL $39,954 $8,425 $-- $-- $48,379 26.8% INTERNATIONAL BLUE CHIP (5) (16) (259) 42 244 -- 27 (13.9%) OUR LUCAYA (5) (4,694) 496 2,049 -- (2,149) (62.3%) INTERNATIONAL TOTAL $(4,953) $538 $2,293 $-- $(2,122) (52.7%) CORPORATE & OTHER (17) $(26,103) $2,374 $-- $-- $(23,729) N/M TOTAL $157,728 $89,772 $2,293 $-- $249,793 14.3% 1. EBITDA is "earnings before interest, income taxes, depreciation and amortization." Isle of Capri calculates Adjusted EBITDA at its properties by adding preopening expense, management fees, other charges and non-cash items to EBITDA. Adjusted EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry and 2) a principal basis of valuing gaming companies. Management uses property level Adjusted EBITDA (Adjusted EBITDA before corporate expense) as the primary measure of the company's operating properties' performance, including the evaluation of operating personnel. Adjusted EBITDA should not be construed as an alternative to operating income as an indicator of the company's operating performance, as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to any other measure determined in accordance with U.S. generally accepted accounting principles (GAAP). The company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA. Also, other gaming companies that report Adjusted EBITDA information may calculate Adjusted EBITDA in a different manner than the company. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by net revenues. Fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations. Reconciliations of operating income to Adjusted EBITDA and operating income as a percentage of net revenues are included in the financial schedules accompanying this release. A reconciliation of Adjusted EBITDA with the company's net income (loss) is shown below. Three Months Ended Fiscal Year Ended April 24, April 25, April 24, April 25, 2005 2004 2005 2004 (In thousands) Adjusted EBITDA $62,444 $65,892 $224,176 $249,793 (Add)/deduct: Depreciation and amortization 24,660 24,290 97,418 89,772 Other charges 238 -- 1,859 -- Preopening -- 243 247 2,293 Interest expense, net 18,658 20,559 73,473 82,584 Minority interest 371 2,033 5,493 10,072 Loss on early extinguishment of debt 5,251 26,115 5,251 26,115 Income tax expense (benefit) 6,208 (2,692) 19,451 12,626 Loss (income) from discontinued operations, net of taxes 3,607 (310) 2,946 (1,418) Net income (loss) $3,451 $(4,346) $18,038 $27,749 2. During the fiscal quarter ended April 24, 2005, the company recorded $2.2 million in business interruption insurance proceeds. Of the business interruption insurance proceeds recorded, $2.0 million relate to the closing of the Isle-Our Lucaya during Hurricane Frances and $0.2 million relates to the Isle-Biloxi during Hurricane Ivan. These hurricanes occurred in the second fiscal quarter of 2005. 3. Corporate expenses for the fiscal quarter and year ended April 24, 2005, reflect the inclusion of approximately $0.05 million and $0.6 million in expenses related to the recording of insurance costs through its new captive insurance company. The effect of fluctuations in workers compensation and general liability insurance reserves were previously reported in property expenses. With the formation and implementation of its wholly owned captive insurance company, the current excess of claims over premiums is borne by the captive insurance company whose operations are reported as a corporate expense as opposed to property expenses. Corporate expenses for the fiscal year ended April 25, 2004 include a $2.0 million charge related to the accrual of additional loss contingencies for litigation matters. 4. New development expenses include incremental costs incurred pursuing new opportunities within the industry. Such costs include legal and other professional fees, application fees and personnel and travel costs. New development expenses for the fiscal quarter and year ended April 24, 2005 include $1.2 million and $4.0 million, respectively, related to contributions to a coalition of pari-mutuel facilities, including Pompano Park, that supports referendums related to the installation and operation of slot machines at existing pari-mutuel sites in Broward and Miami-Dade counties in the state of Florida. New development expenses for the three months and fiscal year ended April 24, 2005 also include United Kingdom-related expenses of $3.6 million and $7.0 million, respectively, compared to $0.8 million and $2.3 million for the three months and fiscal year ended April 25, 2004, respectively, and other domestic development expenses of $0.6 million and $3.4 million for the three months and fiscal year ended April 24, 2005, respectively, compared to $1.7 million and $3.5 million for the three months and fiscal year ended April 25, 2004, respectively. 5. Preopening expenses for the fiscal year ended April 24, 2005 relate to the September 2004 opening of the Blue Chip-Walsall pub-style casino. For the fiscal year ended April 25, 2004, preopening expenses incurred related to opening the casino at Our Lucaya Beach and Golf Resort, Grand Bahama Island on December 15, 2003 and opening a new pub-style casino in Wolverhampton, England on April 22, 2004. 6. For the fiscal quarter and year ended April 24, 2005, the company recorded a $2.3 million gain on sale of an option to purchase real estate in St. Louis, Missouri that the company had previously acquired. The company recorded a valuation charge for its $2.5 million investment in the license in Rosemont, Illinois that the company intended to purchase from Emerald Casino Inc. through bankruptcy. As a result of the Illinois' gaming board's proceedings to rescind the license previously granted to Emerald Casino Inc., the chance of the company purchasing the license has diminished. 7. For the fiscal year ended April 24, 2005, the company recorded a valuation charge of $1.6 million related to previously capitalized fixed assets for certain projects as a result of adverse changes to gaming legislation in the United Kingdom. 8. Depreciation and amortization expense for the fiscal year ended April 24, 2005 includes a one-time $2.9 million depreciation adjustment related to a misclassification of certain land improvements resulting from the conversion of the company's manual system to a computerized asset-tracking system in fiscal 2002. 9. Consolidated net interest expense is comprised of the following components: Blue Chip Blue Chip Restricted & Consoli- Restricted & Consoli- Group Colorado Other dated Group Colorado Other dated (In thousands) Three Months Ended April 24, 2005 Fiscal Year Ended April 24, 2005 Interest expense $17,739 $3,015 $195 $20,949 $67,504 $10,862 $549 $78,915 Interest income (630) (13) (399) (1,042) (1,366) (71) (807) (2,244) Capitalized interest (627) (525) (97) (1,249) (1,608) (1,402) (188) (3,198) Net interest expense $16,482 $2,477 $(301) $18,658 $64,530 $9,389 $(446) $73,473 Three Months Ended April 25, 2004 Fiscal Year Ended April 25, 2004 Interest expense $18,581 $2,426 $50 21,057 $73,959 $10,979 $50 $84,988 Interest income (82) (27) (72) (181) (623) (125) (124) (872) Capitalized interest (110) (207) -- (317) (1,325) (207) -- (1,532) Net interest expense $18,389 $2,192 $(22) $20,559 $72,011 $10,647 $(74) $82,584 Colorado includes the Isle-Black Hawk's and Colorado Central Station-Black Hawk's components of net interest expense. Blue Chip includes Blue Chip- Dudley's, Blue Chip-Wolverhampton's and Blue Chip-Walsall's components of net interest expense. 10. Minority interest represents unrelated third parties' portions of the Isle-Black Hawk's income before income taxes, Blue Chip Casinos, PLC's net income and Colorado Central Station-Black Hawk's net income. 11. Loss on early extinguishment of debt of $5.3 million for the fiscal quarter and year ended April 24, 2005 relates to the refinancing of the company's senior secured credit facility on February 4, 2005. These charges include the write-off of debt acquisition costs. Loss on early extinguishment of debt of $26.1 million for the fiscal quarter and year ended April 25, 2004, relates to the refinancing of the company's $390.0 million 8 3/4 percent Senior Subordinated Notes on March 3, 2004. These charges include early payment premiums as well as the write-off of debt acquisition costs. 12. The company's effective tax rate from continuing operations for the quarter ended April 24, 2005 was 46.8% compared to 36.6% for the quarter ended April 25, 2004, which, in each case, excludes an unrelated party's portion of the Colorado Central Station-Black Hawk's income taxes. The company's effective tax rate from continuing operations was 48.1% and 32.4% for the fiscal years ended April 24, 2005 and April 25, 2004, respectively, which, in each case, excludes an unrelated party's portion of the Colorado Central Station-Black Hawk's income taxes. This increase in effective rate over the comparable prior fiscal periods is attributable to nondeductible permanent items on earnings for the year, the impact of not benefiting a portion of its current operating losses in the United Kingdom and an increase in applicable state income taxes. 13. On April 22, 2005, the Isle-Black Hawk joint venture approved an agreement to sell the Colorado Grande-Cripple Creek for $6.5 million. During the fourth fiscal quarter of 2005, the company recorded a valuation charge totaling $4.0 million related to the impairment of goodwill for the Colorado Grande-Cripple Creek property representing the difference between the Colorado Grande-Cripple Creek's carrying value of $9.8 million and estimated fair value, less estimated costs to sell, of $5.8 million. On April 25, 2005, the sale was consummated. Fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations. The following table reflects the results of discontinued operations for Colorado Grande-Cripple Creek: Three Months Ended Fiscal Year Ended April 24, April 25, April 24, April 25, 2005 2004 2005 2004 (In thousands) Add(deduct): Income before impairment loss $275 $352 $827 $1,629 Impairment loss (3,959) -- (3,959) -- Income taxes (expense) benefit 77 (42) 186 (211) Income (loss) from discontinued operations, net of tax $(3,607) $310 $(2,946) $1,418 14. Net revenues are presented net of complimentaries, slot points expense and cash coupon redemptions. Fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations. 15. As management fees are eliminated in consolidation, Adjusted EBITDA for the Isle-Black Hawk and the Colorado Central Station-Black Hawk does not include management fees. Fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations. The following table shows management fees and Adjusted EBITDA inclusive of management fees for the three months and fiscal years ended April 24, 2005 and April 25, 2004: Three Months Ended Fiscal Year Ended April 24, April 25, April 24, April 25, 2005 2004 2005 2004 (In thousands) Management Fees Isle - Black Hawk $1,291 $1,245 $4,974 $4,889 Colorado Central Station 369 339 1,103 1,902 Adjusted EBITDA with Management Fees Isle - Black Hawk 8,381 8,222 32,262 34,997 Colorado Central Station 883 718 1,361 6,591 16. Isle of Capri Casinos, Inc. acquired a two-thirds interest in Blue Chip Casinos, PLC on November 28, 2003. Blue Chip Casinos, PLC owns and operates pub-style casinos in Dudley, Wolverhampton and Walsall, England. 17. For the three months ended April 24, 2005, corporate and other includes net revenues of $8,702 and Adjusted EBITDA of $204 for Pompano Park. For the fiscal year ended April 24, 2005, corporate and other includes net revenues of $24,624 and Adjusted EBITDA of ($874) for Pompano Park. For the three months ended April 25, 2004, corporate and other includes net revenues of $8,518 and Adjusted EBITDA of $128 for Pompano Park and Adjusted EBITDA of ($24) for the Lady Luck-Las Vegas. For the fiscal year ended April 25, 2004, corporate and other includes net revenues of $24,340 and Adjusted EBITDA of ($670) for Pompano Park, as well as net revenues of $8,370 and Adjusted EBITDA of $2,696 for the Lady Luck-Las Vegas. The sale of the Lady Luck-Las Vegas was finalized on September 3, 2003. Isle of Capri Casinos, Inc., a leading developer and owner of gaming and entertainment facilities, operates 15 casinos in 13 locations. The company owns and operates riverboat and dockside casinos in Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (2 riverboats), Louisiana; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The company also owns a 57 percent interest in and operates land-based casinos in Black Hawk (2 casinos), Colorado. Isle of Capri's international gaming interests include a casino that it operates in Freeport, Grand Bahamas, and a two-thirds ownership interest in casinos in Dudley, Wolverhampton and Walsall, England. The company also owns and operates Pompano Park Harness Racing Track in Pompano Beach, Florida. As a publicly held company, the company regularly files reports with the Securities and Exchange Commission (the "SEC"). These reports are required by the Securities Exchange Act of 1934 and include: * Annual Reports on Form 10-K; * Quarterly Reports on Form 10-Q; * Current Reports on Form 8-K; and * All amendments to those reports. The company's Internet website is http://www.islecorp.com/ . The company makes its filings available free of charge on its Internet website as soon as reasonably practical after the company electronically files or furnishes such reports to the SEC. You may read and copy the reports, statements and other information the company files with the SEC at the SEC's public reference room at 450 Fifth Street, N.W., Washington, D.C. 20546. You can request copies of these documents by writing to the SEC but must pay photocopying fees. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference rooms. Its SEC filings are also available to the public on the SEC's Internet site ( http://www.sec.gov/ ). Contact: Allan B. Solomon, Executive Vice President, 561-995-6660 Rex Yeisley, Chief Financial Officer, 228-396-7052 Jill Haynes, Director of Corporate Communications, 228-396-7031 This press release contains forward-looking statements which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. 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, permits, weather, 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 10-K for the fiscal year ended April 25, 2004 and Form 10-Q for the fiscal quarters ended since that date. http://www.newscom.com/cgi-bin/prnh/20020502/ISLELOGO http://photoarchive.ap.org/ DATASOURCE: Isle of Capri Casinos, Inc. CONTACT: Allan B. Solomon, Executive Vice President, +1-561-995-6660, or Rex Yeisley, Chief Financial Officer, +1-228-396-7052, or Jill Haynes, Director of Corporate Communications, +1-228-396-7031, all of Isle of Capri Casinos, Inc. Web site: http://www.theislecorp.com/

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