BILOXI, Miss., Nov. 17 /PRNewswire-FirstCall/ -- Isle of Capri
Casinos, Inc. (NASDAQ:ISLE) today reported financial results for
its second quarter of fiscal 2006 ended October 23, 2005. For the
second quarter, the Company reported a net loss of $4.2 million or
$0.14 per basic common share compared to net income of $0.45
million or $0.01 per diluted common share for the same quarter last
year. As a result of settlement discussions taking place in recent
days related to an outstanding litigation matter, the Company
recorded an additional legal reserve charge in the second quarter
of fiscal 2006 of approximately $0.08 per basic common share in
anticipation of a probable settlement. The Company expects to
settle this litigation during the third quarter fiscal 2006 and
does not expect that this will have any effects on its on-going
operating results. During the quarter ended October 23, 2005, the
Company had net revenues of $247.9 million, compared to $267.8
million for the same period in fiscal 2005, and Adjusted EBITDA(1)
of $41.6 million compared to $48.6 million for the same period in
fiscal 2005. For the first six months of fiscal 2006, the Company
reported a net loss of $0.2 million, or $0.01 per basic common
share. This compares to net income for the same period in fiscal
2005 of $11.1 million, or $0.36 per diluted share. Net revenues for
the six months ended October 23, 2005, were $529.5 million, down
from $546.5 million for the comparable period in the previous year.
Adjusted EBITDA(1) in the six-month period was $95.1 million,
compared to $108.6 million for the comparable six-month period in
fiscal 2005. "Over the quarter, the Company faced significant
challenges in our southern markets, however, these challenges did
not deter us from continuing to work toward enhancing our existing
property amenities. These new amenities continue to be at the
forefront of our development work as we redevelop existing
properties and begin construction on new ones," according to
Bernard Goldstein, Isle of Capri Casinos, Inc.'s chairman and chief
executive officer. Highlights and Updates * Hurricane Katrina in
late August caused interruption in service at three Isle properties
- Isle-Biloxi, Isle-Vicksburg and Isle-Natchez. Isle-Vicksburg and
Isle-Natchez reopened shortly after the storm, however, Isle-Biloxi
remains closed. * Subject to the receipt of necessary permits and
licenses, the Company plans to reopen Isle-Biloxi within the next
60 days. The proposed interim casino, to be located in the hotel,
is expected to offer approximately 1,100 gaming positions, to be
accompanied by two restaurants, parking for 1,000 vehicles and 550
hotel rooms. Preliminary plans are in process for rebuilding a new
permanent casino on the property. * Hurricane Rita in late
September caused the closure of Isle-Lake Charles for 16 days. Both
casino vessels weathered the storm with minimal damage. The hotels
and pavilion area suffered moderate damage. * Subsequent to the end
of the second fiscal quarter, Hurricane Wilma caused considerable
damage to the barns and clubhouse/grandstand structures at Pompano
Park Harness Track. The facility reopened for simulcast racing
today with live racing expected to resume in early December. * The
Company does not expect that the effect of these hurricanes or the
litigation matter discussed above will give rise to any debt
covenant or liquidity issues. * The Company has business
interruption and property insurance covering the company's
operations and assets affected by these storms. At the Isle-
Biloxi, the Company expects the related insurance proceeds to
exceed the cost incurred and thus there is no net impact on the
income statement for the second fiscal quarter 2006. At the
Isle-Lake Charles, the Company does not expect the insurance
proceeds to exceed the cost incurred and thus has recorded a $1.2
million expense. A more in-depth discussion of the specific
accounting treatment is explained in the Operational Review below.
* Isle team member relief funds were established, in conjunction
with the Gulf Coast Community Foundation, to provide team members
living in the areas affected by Hurricanes Katrina and Rita with
emergency relief as they recover from the devastation that hit the
region. To date, over $1 million has been raised and assistance has
been provided to over 500 team members. * Construction is underway
at the Isle-Waterloo in Iowa. The Company plans to spend
approximately $134.0 million constructing a 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
construction to be complete in the spring of 2007. * The Company
began construction in Bettendorf of a new 250-room Isle hotel,
additional parking, a Kitt's Kitchen restaurant, and expansion of
the existing buffet. In conjunction with the project the City of
Bettendorf has agreed to 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 is expected to be approximately $45.0 million. The new
hotel is scheduled to open in the summer of 2007. * The new
162-room Colorado Central Station hotel is currently ahead of
schedule and expected to be completed by the end of the 2005
calendar year. US 6, the primary access route to the Black Hawk
market, re-opened on September 12, 2005 following repairs related
to the rockslide in June 2005. Construction continues on the
extension of Main Street, in front of the Isle- Black Hawk
connecting to Colorado Route 119 with completion expected in Spring
2006. * The Company continues to deploy the IGT Advantage(TM)
Casino System to replace the existing slot systems in six of its
casinos. The Company completed the roll out of this system at the
Isle-Lula and Isle-Natchez this quarter. 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. *
On October 24, Isle of Capri Black Hawk, L.L.C., a joint venture
company owned 57% by the Company, entered into a new $240.0 million
Credit Agreement. This agreement provides a larger term loan and
revolving credit agreement, an extension of the maturity dates and
more favorable terms. * On November 4, 2005, the Governor of
Florida called a special session of the legislature for December
5-9 to address slot regulations for pari-mutuel facilities in
Broward County where the Company owns Pompano Park Harness Track.
"Storms affected our properties in Mississippi, Louisiana and
Florida and road closures had an impact on Kansas City and Black
Hawk. While the aftermath of the storms has been a challenge for
our team members, they continue to be outstanding examples of the
power of the human spirit. The outpouring of compassion from our
guests, vendors and communities has been greatly appreciated,"
according to Tim Hinkley, Isle of Capri Casinos, Inc.'s president
and chief operating officer. Operational Review of the Second
Quarter Fiscal 2006 Compared to the Second Quarter Fiscal 2005 In
Mississippi, the Company's four operations accounted for 21.9% of
its net revenues. Isle-Biloxi's net revenues and Adjusted EBITDA(1)
for the second quarter fiscal 2006, decreased primarily to the
closure of the property from extensive Hurricane Katrina damage.
The Isle-Biloxi recorded an insurance receivable in the second
quarter up to the amount of operating and incremental expenses
incurred since the storm. The net effect of this is that
Isle-Biloxi reflected no Adjusted EBITDA(1) contribution for the
period impacted by Hurricane Katrina. Isle-Biloxi will record any
related income from business interruption proceeds when the
insurance carriers agree to the amount. The Company has also
recorded an impairment charge for the estimated amount of the
property damage and an offsetting insurance receivable. Accordingly
these expenses do not impact our operating results. When the
insurance carriers agree to the amounts of property damage
payments, the Company will record any related gains. Isle-Natchez
experienced increases in both net revenues and Adjusted EBITDA(1)
resulting from significant population shifts into its market area.
Isle-Vicksburg showed an increase in Adjusted EBITDA(1) over prior
year on flat net revenues driven primarily by improved efficiencies
in marketing spend and overall cost controls. Isle-Lula's net
revenues and Adjusted EBITDA(1) both saw a decline due to a very
competitive market. In Louisiana, the Company's two properties
contributed 21.0% of its net revenues. Isle-Lake Charles
experienced a decrease in net revenues and Adjusted EBITDA(1) due
to the entry into the market of a new competitor and from the
closure of the casino from the effects of Hurricane Rita. Isle-Lake
Charles recorded an insurance receivable for operating and
incremental expenses related to the 16-day closure caused by
Hurricane Rita. The net effect of this is that Isle-Lake Charles
reflected no Adjusted EBITDA(1) contribution for the 16-day period.
Isle-Lake Charles will record any related income from expected
business interruption proceeds when the insurance carrier has
agreed to the amount. The Isle-Lake Charles has recorded a $1.2
million expense for estimated property damage, which is included in
the line item Hurricane related charges, net on the income
statement, because the Company does not expect the property damage
insurance proceeds to exceed the cost. Isle-Bossier City showed a
decrease in net revenues and Adjusted EBITDA(1) due to increased
competition from, and expansion of, Native American gaming in
Oklahoma. In Missouri, the Company's two properties contributed
15.9% of its net revenues. Isle-Kansas City's net revenues and
Adjusted EBITDA(1) were down due primarily to the closure of the
I-35 Paseo Bridge immediately adjacent to the Isle property. The
I-35 Paseo Bridge was closed for 68 days during the second quarter
and 106 days during the six months ended October 23, 2005. The
bridge re-opened on September 1, 2005. Isle-Boonville's net
revenues and Adjusted EBITDA remained constant despite construction
disruption from the property's new hotel. Construction of the
140-room hotel continues on schedule and is expected to open in the
spring of 2006. In Iowa, the Company's three casinos contributed
20.8% of its net revenues. Both Isle-Bettendorf and Rhythm
City-Davenport showed a decline in both net revenues and Adjusted
EBITDA(1) due to increased competition. Isle- Marquette remained
constant in both net revenues and Adjusted EBITDA(1). In Colorado,
the Company's two Black Hawk casino operations contributed 16.0% of
its net revenues. The properties saw an increase in net revenues
and Adjusted EBITDA(1) due to substantial completion of our
expansion projects and the reduction of construction disruption
compared to prior year. US 6, the main route into the Black-Hawk
market, was closed for 49 days during the second quarter and 82
days during the six months ended October 23, 2005. Our
international operations account for approximately 2.6% of our
overall revenues. Isle-Our Lucaya experienced an increase in net
revenues and a decrease in the negative Adjusted EBITDA(1) compared
to the prior year, primarily due to being closed in the prior year
related to Hurricane Frances and Jeanne. New development costs have
decreased compared to second quarter fiscal 2005 due to a reduction
in Florida related development costs. The increase in corporate and
other expenses are primarily related to an increase in costs and
reserves related to litigation matters, increased insurance costs
and the Company's contributions to the Isle team members' relief
funds. Isle of Capri Casinos, Inc. Consolidated Statements of
Income (Unaudited) (In thousands, except per share amounts) Three
Months Ended Six Months Ended October October October October 23,
24, 23, 24, 2005 2004 2005 2004 Revenues: Casino $252,579 $273,564
$536,430 $555,644 Hotel, pari-mutuel, food, beverage & other
49,007 51,919 107,049 105,453 Gross revenues 301,586 325,483
643,479 661,097 Less promotional allowances 53,644 57,712 114,003
114,606 Net revenues 247,942 267,771 529,476 546,491 Operating and
other expenses: Properties 191,896 209,932 407,693 421,683 New
development (2) 1,345 3,839 8,259 5,247 Corporate 13,127 5,402
18,418 10,925 Preopening 151 192 184 247 Hurricane related charges,
net (3) 1,200 -- 1,200 -- Depreciation and amortization 25,383
25,725 50,652 49,247 Total operating and other expenses 233,102
245,090 486,406 487,349 Operating income 14,840 22,681 43,070
59,142 Net interest expense (4) (20,302) (18,958) (39,438) (36,353)
Minority interest (5) (1,892) (1,549) (3,948) (3,682) Income (loss)
before income taxes (7,354) 2,174 (316) 19,107 Income tax expense
(benefit) (6) (3,135) 1,989 (139) 8,675 Income (loss) from
continuing operations (4,219) 185 (177) 10,432 Income (loss) from
discontinued operations (including minority interest and goodwill
impairment), net of income taxes (7) -- 263 (58) 625 Net income
(loss) $(4,219) $448 $(235) $11,057 Net income per basic common
share $(0.14) $0.02 $(0.01) $0.37 Net income per diluted common
share $(0.14) $0.01 $(0.01) $0.36 Weighted average basic common
shares 30,097 29,532 30,105 29,610 Weighted average diluted common
shares 30,097 30,542 30,105 30,646 Selected Consolidated Balance
Sheet Accounts (In Thousands) October 23, 2005 April 24, 2005
(Unaudited) Cash and cash equivalents $125,495 $146,743 Property
and equipment, net 1,030,246 1,026,906 Debt 1,212,063 1,156,118
Stockholders' equity 250,596 261,396 Isle of Capri Casinos, Inc.
Comparative Financial Highlights by Casino Property (Unaudited) (In
thousands) Three Months Ended October 23, October 24, 2005 2004 Net
Adjusted Adjusted Net Adjusted Adjusted Revenues EBITDA EBITDA
Revenues EBITDA EBITDA (8) (1) Margin % (8) (1) Margin %
MISSISSIPPI BILOXI $10,453 $2,234 21.4% $18,469 $2,856 15.5%
NATCHEZ 11,077 3,575 32.3% 8,231 1,742 21.2% VICKSBURG 13,753 3,844
28.0% 13,583 3,039 22.4% LULA 19,083 3,533 18.5% 20,372 4,373 21.5%
MISSISSIPPI TOTAL 54,366 13,186 24.3% 60,655 12,010 19.8% LOUISIANA
BOSSIER CITY 24,150 5,240 21.7% 26,665 5,643 21.2% LAKE CHARLES
27,844 4,629 16.6% 42,069 9,128 21.7% LOUISIANA TOTAL 51,994 9,869
19.0% 68,734 14,771 21.5% MISSOURI KANSAS CITY 21,361 3,602 16.9%
23,490 4,316 18.4% BOONVILLE 17,993 5,255 29.2% 18,097 5,303 29.3%
MISSOURI TOTAL 39,354 8,857 22.5% 41,587 9,619 23.1% IOWA
BETTENDORF 23,601 6,647 28.2% 25,553 7,732 30.3% DAVENPORT 16,842
3,866 23.0% 17,916 4,500 25.1% MARQUETTE 11,197 2,823 25.2% 11,067
2,827 25.5% IOWA TOTAL 51,640 13,336 25.8% 54,536 15,059 27.6%
COLORADO BLACK HAWK (9) 29,523 9,896 33.5% 25,548 8,852 34.6%
COLORADO CENTRAL STATION (9) 10,110 2,718 26.9% 8,073 409 5.1%
COLORADO TOTAL 39,633 12,614 31.8% 33,621 9,261 27.5% INTERNATIONAL
BLUE CHIP 1,799 (564) (31.4%) 1,833 (281) (15.3%) OUR LUCAYA 4,572
(309) (6.8%) 2,538 (2,130) (83.9%) INTERNATIONAL TOTAL 6,371 (873)
(13.7%) 4,371 (2,411) (55.2%) CORPORATE & OTHER (10) 4,584
(15,415) N/M 4,267 (9,711) N/M TOTAL $247,942 $41,574 16.8%
$267,771 $48,598 18.1% Isle of Capri Casinos, Inc. Comparative
Financial Highlights by Casino Property (Unaudited) (In thousands)
Six Months Ended October 23, October 24, 2005 2004 Net Adjusted
Adjusted Net Adjusted Adjusted Revenues EBITDA EBITDA Revenues
EBITDA EBITDA (8) (1) Margin % (8) (1) Margin % MISSISSIPPI BILOXI
$33,807 6,081 18.0% $38,766 $7,034 18.1% NATCHEZ 20,115 5,792 28.8%
16,762 4,014 23.9% VICKSBURG 27,265 7,418 27.2% 26,633 6,205 23.3%
LULA 40,370 8,440 20.9% 41,170 9,616 23.4% MISSISSIPPI TOTAL
121,557 27,731 22.8% 123,331 26,869 21.8% LOUISIANA BOSSIER CITY
49,678 9,446 19.0% 56,367 12,229 21.7% LAKE CHARLES 67,428 12,590
18.7% 83,804 18,647 22.3% LOUISIANA TOTAL 117,106 22,036 18.8%
140,171 30,876 22.0% MISSOURI KANSAS CITY 43,350 7,479 17.3% 47,834
9,396 19.6% BOONVILLE 36,363 10,559 29.1% 35,667 10,130 28.4%
MISSOURI TOTAL 79,713 18,078 22.7% 83,501 19,526 23.4% IOWA
BETTENDORF 48,563 14,733 30.3% 51,291 16,485 32.1% DAVENPORT 34,545
8,718 25.2% 35,600 9,356 26.3% MARQUETTE 22,677 6,383 28.1% 22,087
6,161 27.9% IOWA TOTAL 105,785 29,834 28.2% 108,978 32,002 29.4%
COLORADO BLACK HAWK (9) 58,467 19,720 33.7% 51,845 19,038 36.7%
COLORADO CENTRAL STATION (9) 20,522 5,245 25.6% 16,416 930 5.7%
COLORADO TOTAL 78,989 24,965 31.6% 68,261 19,968 29.3%
INTERNATIONAL BLUE CHIP 3,913 (800) (20.4%) 3,448 (499) (14.5%) OUR
LUCAYA 11,527 1,003 8.7% 9,270 (3,123) (33.7%) INTERNATIONAL TOTAL
15,440 203 1.3% 12,718 (3,622) (28.5%) CORPORATE & OTHER (10)
10,886 (27,741) N/M 9,531 (16,983) N/M TOTAL $529,476 $95,106 18.0%
$546,491 $108,636 19.9% Isle of Capri Casinos, Inc. Reconciliation
of Operating Income (Loss) to Adjusted EBITDA by Casino Property
(Unaudited) (In thousands) Three Months Ended October 23, 2005
Operating Operating Depreciation Writedowns, Adjusted Income Income
& Reserves, & Pre- EBITDA Margin% (Loss) Amortization
Recoveries opening (1) (1) MISSISSIPPI BILOXI $(792) $3,026 $-- $--
$2,234 (7.6%) NATCHEZ 2,509 1,066 -- -- 3,575 22.7% VICKSBURG 2,675
1,169 -- -- 3,844 19.5% LULA 1,239 2,294 -- -- 3,533 6.5%
MISSISSIPPI TOTAL 5,631 7,555 -- -- 13,186 10.4% LOUISIANA BOSSIER
CITY 2,674 2,566 -- -- 5,240 11.1% LAKE CHARLES (427) 3,856 1,200
-- 4,629 (1.5%) LOUISIANA TOTAL 2,247 6,422 1,200 -- 9,869 4.3%
MISSOURI KANSAS CITY 1,849 1,753 -- -- 3,602 8.7% BOONVILLE 4,191
1,064 -- -- 5,255 23.3% MISSOURI TOTAL 6,040 2,817 -- -- 8,857
15.3% IOWA BETTENDORF 4,834 1,813 -- -- 6,647 20.5% DAVENPORT 2,092
1,774 -- -- 3,866 12.4% MARQUETTE 2,089 734 -- -- 2,823 18.7% IOWA
TOTAL 9,015 4,321 -- -- 13,336 17.5% COLORADO BLACK HAWK (9) 7,665
2,231 -- -- 9,896 26.0% COLORADO CENTRAL STATION (9) 1,687 1,031 --
-- 2,718 16.7% COLORADO TOTAL 9,352 3,262 -- -- 12,614 23.6%
INTERNATIONAL BLUE CHIP (669) 105 -- -- (564) (37.2%) OUR LUCAYA
(717) 408 -- -- (309) (15.7%) INTER- NATIONAL TOTAL (1,386) 513 --
-- (873) (21.8%) CORPORATE & OTHER (10) (16,060) 494 -- 151
(15,415) N/M TOTAL $14,839 $25,384 $1,200 $151 $41,574 6.0% Isle of
Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to
Adjusted EBITDA by Casino Property (Unaudited) (In thousands) Three
Months Ended October 24, 2004 Operating Depreciation Adjusted
Operating Income & EBITDA Income (Loss) Amortization Preopening
(1) Margin% (1) MISSISSIPPI BILOXI $730 $2,126 $-- $2,856 4.0%
NATCHEZ 922 820 -- 1,742 11.2% VICKSBURG 1,872 1,167 -- 3,039 13.8%
LULA 24 4,349 -- 4,373 0.1% MISSISSIPPI TOTAL 3,548 8,462 -- 12,010
5.8% LOUISIANA BOSSIER CITY 3,069 2,574 -- 5,643 11.5% LAKE CHARLES
5,881 3,247 -- 9,128 14.0% LOUISIANA TOTAL 8,950 5,821 -- 14,771
13.0% MISSOURI KANSAS CITY 2,447 1,869 -- 4,316 10.4% BOONVILLE
3,010 2,293 -- 5,303 16.6% MISSOURI TOTAL 5,457 4,162 -- 9,619
13.1% IOWA BETTENDORF 5,917 1,815 -- 7,732 23.2% DAVENPORT 3,243
1,257 -- 4,500 18.1% MARQUETTE 2,022 805 -- 2,827 18.3% IOWA TOTAL
11,182 3,877 -- 15,059 20.5% COLORADO BLACK HAWK (9) 7,094 1,758 --
8,852 27.8% COLORADO CENTRAL STATION (9) (252) 661 -- 409 (3.1%)
COLORADO TOTAL 6,842 2,419 -- 9,261 20.4% INTERNATIONAL BLUE CHIP
(528) 55 192 (281) (28.8%) OUR LUCAYA (2,496) 366 -- (2,130)
(98.3%) INTER- NATIONAL TOTAL (3,024) 421 192 (2,411) (69.2%)
CORPORATE & OTHER (10) (10,274) 563 -- (9,711) N/M $22,681
$25,725 $192 $48,598 8.5% Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by
Casino Property (Unaudited) (In thousands) Six Months Ended October
23, 2005 Operating Operating Depreciation Writedowns, Adjusted
Income Income & Reserves, & Pre- EBITDA Margin% (Loss)
Amortization Recoveries opening (1) (1) MISSISSIPPI BILOXI $(97)
$6,178 $-- $-- $6,081 (0.3%) NATCHEZ 3,617 2,175 -- -- 5,792 18.0%
VICKSBURG 5,045 2,373 -- -- 7,418 18.5% LULA 3,939 4,501 -- --
8,440 9.8% MISSISSIPPI TOTAL 12,504 15,227 -- -- 27,731 10.3%
LOUISIANA BOSSIER CITY 4,415 5,031 -- -- 9,446 8.9% LAKE CHARLES
3,818 7,572 1,200 -- 12,590 5.7% LOUISIANA TOTAL 8,233 12,603 1,200
-- 22,036 7.0% MISSOURI KANSAS CITY 3,908 3,571 -- -- 7,479 9.0%
BOONVILLE 8,387 2,212 -- -- 10,599 23.1% MISSOURI TOTAL 12,295
5,783 -- -- 18,078 15.4% IOWA BETTENDORF 11,177 3,556 -- -- 14,733
23.0% DAVENPORT 5,112 3,606 -- -- 8,718 14.8% MARQUETTE 4,921 1,462
-- -- 6,383 21.7% IOWA TOTAL 21,210 8,624 -- -- 29,834 20.1%
COLORADO BLACK HAWK (9) 15,427 4,293 -- -- 19,720 26.4% COLORADO
CENTRAL STATION (9) 3,219 2,026 -- -- 5,245 15.7% COLORADO TOTAL
18,646 6,319 -- -- 24,965 23.6% INTERNATIONAL BLUE CHIP (1,011) 211
-- -- (800) (25.8%) OUR LUCAYA 146 857 -- -- 1,003 1.3% INTER-
NATIONAL TOTAL (865) 1,068 -- -- 203 (5.6%) CORPORATE & OTHER
(10) (28,953) 1,028 -- 184 (27,741) N/M TOTAL $43,070 $50,652
$1,200 $184 $95,106 8.1% Isle of Capri Casinos, Inc. Reconciliation
of Operating Income (Loss) to Adjusted EBITDA by Casino Property
(Unaudited) (In thousands) Six Months Ended October 24, 2004
Operating Depreciation Adjusted Operating Income & EBITDA
Income (Loss) Amortization Preopening (1) Margin% (1) MISSISSIPPI
BILOXI $2,959 $4,075 $-- $7,034 7.6% NATCHEZ 2,417 1,597 -- 4,014
14.4% VICKSBURG 3,885 2,320 -- 6,205 14.6% LULA 3,174 6,442 --
9,616 7.7% MISSISSIPPI TOTAL 12,435 14,434 -- 26,869 10.1%
LOUISIANA BOSSIER CITY 6,978 5,251 -- 12,229 12.4% LAKE CHARLES
12,211 6,436 -- 18,647 14.6% LOUISIANA TOTAL 19,189 11,687 --
30,876 13.7% MISSOURI KANSAS CITY 5,530 3,866 -- 9,396 11.6%
BOONVILLE 6,180 3,950 -- 10,130 17.3% MISSOURI TOTAL 11,710 7,816
-- 19,526 14.0% IOWA BETTENDORF 12,926 3,559 -- 16,485 25.2%
DAVENPORT 5,902 3,454 -- 9,356 16.6% MARQUETTE 4,521 1,640 -- 6,161
20.5% IOWA TOTAL 23,349 8,653 -- 32,002 21.4% COLORADO BLACK HAWK
(9) 15,564 3,474 -- 19,038 30.0% COLORADO CENTRAL STATION (9) (298)
1,228 -- 930 (1.8%) COLORADO TOTAL 15,266 4,702 -- 19,968 22.4%
INTERNATIONAL BLUE CHIP (855) 109 247 (499) (24.8%) OUR LUCAYA
(3,824) 701 -- (3,123) (41.3%) INTER- NATIONAL TOTAL (4,679) 810
247 (3,622) (36.8%) CORPORATE & OTHER (10) (18,128) 1,145 --
(16,983) N/M $59,142 $49,247 $247 $108,636 10.8% 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 2006
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 is shown below. Three Months Ended Six
Months Ended October 23, October 24, October 23, October 24, 2005
2004 2005 2004 (In thousands) Adjusted EBITDA $41,574 $48,598
$95,106 $108,636 (Add)/deduct: Depreciation and amortization 25,383
25,725 50,652 49,247 Hurricane related charges, net (3) 1,200 --
1,200 -- Preopening 151 192 184 247 Interest expense, net 20,302
18,958 39,438 36,353 Minority interest 1,892 1,549 3,948 3,682 Loss
on early extinguishment of debt -- -- -- Income tax expense
(benefit) (3,135) 1,989 (139) 8,675 Loss (income) from discontinued
operations, net of income taxes -- (263) 58 (625) Net income
$(4,219) $448 $(235) $11,057 2. New development expenses include
incremental costs incurred pursuing new opportunities within the
industry. Such costs include, but are not limited to, legal and
other professional fees, application fees, as well as personnel and
travel costs. New development expenses for the three and six months
ended October 23, 2005, also include UK related expenditures of
$1.1 million and $3.2 million, respectively, compared to $1.9
million for the three and six months ended October 24, 2004. 3.
Hurricane related charges, net, include impairment charges for
assets damaged or destroyed by hurricanes, incremental costs
incurred related to hurricanes and operating costs related to
periods effected by hurricanes. This account also includes
anticipated recoveries expected from our insurance carriers related
to property damage, incremental costs and operating expenses. When
the Company and its insurance carriers agree on the final amount of
the insurance proceeds, the Company will also record any related
gain in this account. Any lost profit recoveries will be recognized
when agreed to with the insurance carrier and will be reflected in
the related properties revenue and Adjusted EBITDA(1). 4.
Consolidated net interest expense is comprised of the following
components: Restricted Blue Chip Group Colorado & Other
Consolidated (In thousands) Three Months Ended October 23, 2005
Interest expense $18,427 $3,838 $219 $22,484 Interest income (631)
(53) (409) (1,092) Capitalized interest (329) (511) (250) (1,090)
Net interest expense $17,467 $3,274 $(440) $20,302 Six Months Ended
October 23, 2005 Interest expense $36,378 $7,323 $428 $44,129
Interest income (1,188) (70) (908) (2,166) Capitalized interest
(980) (1,139) (407) (2,526) Net interest expense $34,209 $6,115
$(886) $39,438 Restricted Blue Chip Group Colorado & Other
Consolidated (In thousands) Three Months Ended October 24, 2004
Interest expense $16,961 $2,710 $115 $19,786 Interest income (267)
(19) (11) (297) Capitalized interest (270) (261) -- (531) Net
interest expense $16,424 $2,423 $104 $18,958 Six Months Ended
October 24, 2004 Interest expense $32,589 $5,116 $188 $37,893
Interest income (611) (50) (12) (675) Capitalized interest (468)
(399) -- (867) Net interest expense $31,510 $4,667 $176 $36,353
Colorado includes the Isle-Black Hawk's and Colorado Central
Station- Black Hawk's components of net interest expense. Blue Chip
and Other includes Blue Chip-Dudley's, Blue Chip-Wolverhampton's
and Blue Chip- Walsall's components of net interest expense. 5.
Minority interest represents unrelated third parties' portions of
the Isle-Black Hawk's income before income taxes and Colorado
Central Station-Black Hawk's net income. 6. The company's effective
tax rate from continuing operations for the year to date ending
October 23, 2005 was 60.0% compared to 44.1% for the six months
ended October 24, 2004, 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 period is attributable to the effect of permanent items on
lower forecasted earnings for the entire fiscal year. 7. On April
25, 2005, the Company sold Colorado Grande-Cripple Creek. As a
result, its operations are reflected as discontinued operations. 8.
Net revenues are presented net of complimentaries; slot points
expense and cash coupon redemptions. Fiscal 2006 and 2005 results
have been reclassified to reflect the Colorado Grande-Cripple Creek
as discontinued operations. 9. 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 2006 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 and six months
ended October 23, 2005 and October 24, 2004: Three Months Ended Six
Months Ended October October October October 23, 2005 24, 2004 23,
2005 24, 2004 (In thousands) Management Fees Isle - Black Hawk
$1,349 $1,204 $2,684 $2,472 Colorado Central Station 493 255 997
519 Colorado Grande -- 89 -- 190 Adjusted EBITDA with Management
Fees Isle - Black Hawk 8,547 7,648 17,036 16,566 Colorado Central
Station 2,225 154 4,248 411 Colorado Grande -- 276 (58) 688 10. For
the three months ended October 23, 2005, corporate and other
includes net revenues of $4.5 million and Adjusted EBITDA of $(1.1)
million for Pompano Park. For the six months ended October 23,
2005, corporate and other includes net revenues of $10.7 million
and Adjusted EBITDA of $(1.4) million for Pompano Park. For the
three months ended October 24, 2004, corporate and other includes
net revenues of $4.2 million and Adjusted EBITDA of $(0.6) million
for Pompano Park. For the six months ended October 24, 2004,
corporate and other includes net revenues of $9.3 million and
Adjusted EBITDA of $(1.0) million for Pompano Park. 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 two
land-based casinos in Black Hawk, 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 Donn
Mitchell, Chief Accounting Officer, 228-396-7030 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 24, 2005 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 Donn Mitchell, Chief Accounting Officer,
+1-228-396-7030, or Jill Haynes, Director of Corporate
Communications, +1-228-396-7031, all of Isle of Capri Casinos Web
site: http://www.theislecorp.com/
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