BILOXI, Miss., June 22 /PRNewswire-FirstCall/ -- Isle of Capri
Casinos, Inc. (NASDAQ:ISLE) today reported financial results for
the fourth quarter and fiscal year ended April 30, 2006. For the
fourth quarter, the Company reported a 19.3% increase in net
revenues to $306.5 million compared to net revenues of $257.0
million for the same quarter in fiscal 2005. Net income for the
fourth quarter of fiscal 2006 increased 338% to $15.1 million or
$0.48 per diluted common share, compared to $3.5 million or $0.11
per diluted common share for the fourth quarter of fiscal 2005.
Included in net income for the quarter ended April 30, 2006, are
pre-tax valuation charges of $13.3 million related to the Company's
international operations. These charges resulted in a reduction to
net income per diluted share of $0.38. Adjusted EBITDA(1) for the
fourth quarter of fiscal 2006 increased 42.4% to $78.0 million
compared to Adjusted EBITDA(1) of $54.8 million for the same
quarter in fiscal 2005. For the fiscal year 2006, the Company
reported a 4.3% increase in net revenues to $988.0 million compared
to net revenues of $947.6 million in fiscal 2005. For the fiscal
year 2006, the Company reported a 5.5% increase in net income to
$19.0 million or $0.61 per diluted common share compared to $18.0
million or $0.58 per diluted common share for the fiscal year 2005.
Adjusted EBITDA(1) for fiscal year 2006 increased 9.6% to $207.3
million compared to Adjusted EBITDA(1) of $189.2 million in fiscal
2005. For fiscal 2006 and fiscal 2005, the Isle-Bossier City,
Isle-Vicksburg and Colorado Grande-Cripple Creek are reflected as
discontinued operations. Accordingly, the operating results for
these properties are not included in the net revenue and Adjusted
EBITDA(1) results discussed above. The Company previously announced
on February 14, 2006, it entered into an agreement to sell the
assets of its properties in Bossier City and Vicksburg. For the
fourth quarter of fiscal 2006, Isle-Bossier City and Isle-Vicksburg
had combined net revenues of $48.6 million compared to combined net
revenues of $42.7 million for the same quarter in fiscal 2005. For
the fiscal year 2006 Isle-Bossier City and Isle-Vicksburg had
combined net revenues of $166.4 million compared to $164.0 million
in fiscal year 2005. The Company expects this sale to close in the
second quarter of fiscal 2007, subject to regulatory and other
customary closing conditions. Assuming this transaction closes, the
Company expects to record a pre-tax gain on the sale of between $14
million and $18 million. The Colorado Grande property was sold
effective April 24, 2005. Earnings per diluted common share for
continuing operations for the fourth quarters ended April 30, 2006
and April 24, 2005 was $0.26 and $0.17, respectively. Earnings per
diluted common share for continuing operations for the years ended
April 30, 2006 and April 24, 2005 was $0.25 and $0.48,
respectively. In addition, in April 2006, the Company's Board of
Directors approved a plan to exit its Our Lucaya operations.
Effective June 1, 2006, the Company notified its landlord of the
Company's decision to terminate its lease and intent to cease
operations by June 1, 2007. Isle-Our Lucaya had net revenues of
$7.4 million and $9.4 million for the fourth fiscal quarters ended
April 30, 2006 and April 24, 2005, respectively, and had net
revenues of $25.3 million and $23.3 million for the fiscal years
ended April 30, 2006 and April 24, 2005, respectively. The Company
will continue to report the results of its Our Lucaya property as
continuing operations until a probable sale of this facility is
reached or operations are ceased, at which time these results will
be reported as discontinued operations. "I am pleased that our
performance produced comparative quarter-to-quarter growth. This
accomplishment, at the end of one of the most challenging years in
our Company's history, shows that our business model continues to
perform at a high level. We believe our portfolio diversity and our
pipeline of development opportunities puts Isle of Capri in an
excellent position for continued growth," Bernard Goldstein,
chairman and chief executive officer, said. Highlights and Updates
* The Company is proceeding with construction of a $140 million
development project at Pompano Park in Florida. The project
includes 1,500 slot machines, 30 poker tables and four restaurants,
as well as new horse racing amenities including a sports bar and
wagering area overlooking the track. The Company expects to open
the racino early in calendar year 2007. * In late May 2006,
Isle-Biloxi completed the renovation of its existing atrium adding
additional gaming space, bringing the casino resort to
approximately 1,600 gaming positions, opening a new multi-story
entry feature and bar, and connecting the parking garage with the
atrium by a covered walkway. The remaining 100 damaged hotel rooms
became fully operational, bringing the hotel back to full capacity
with 728 rooms including 200 whirlpool suites. * On June 15, 2006,
the Company announced that it received site and development
approval from the Mississippi Gaming Commission in connection with
its previously announced casino resort in west Harrison County,
Mississippi, which is approximately 20 miles from the
Mississippi/Louisiana state border along Interstate 10. Preliminary
plans call for the estimated $250-300 million project to include a
single level gaming facility with over 2,000 gaming positions, a
500- room hotel, five restaurants and a complement of additional
resort amenities. The project remains in the preliminary planning
stages, and is subject to certain significant conditions, including
but not limited to the receipt of all necessary licenses, approvals
and permits. * In early June 2006, the Company opened its new
140-room hotel, including 20 suites, and an 800-seat entertainment
venue at Isle-Boonville in Missouri. * The Company continues to
deploy the IGT Advantage(TM) Casino System to replace the existing
slot management systems at its properties in Missouri and Iowa.
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. * Construction is underway at the Isle-Waterloo
in Iowa with completion expected in the late spring of 2007. The
Company plans to spend approximately $134 million constructing a
single-level casino with approximately 1,300 gaming positions,
three of its signature restaurants, a 200-room hotel and 1,000
parking spaces. * The Company continues to construct a new 250-room
hotel at the Isle- Bettendorf. Included in the project is
additional parking, a signature restaurant, and expansion of the
existing buffet. The cost of the project is expected to be
approximately $45 million, with the new hotel scheduled to open in
the summer of 2007. * The Company is moving forward with the
relocation of its corporate headquarters to the St. Louis County
municipality of Creve Coeur and expects to complete the transition
by mid-summer 2006. The Company will maintain a regional office in
Biloxi, Mississippi. The anticipated cost of this move is
approximately $10 million, most of which will be recorded in fiscal
2007. * At Isle-Our Lucaya, in conjunction with the termination of
its lease, the Company paid a $2.2 million fee to its landlord,
which will be expensed in the first quarter of fiscal 2007. Based
on projected cash flows and government regulations, we have
recorded an impairment charge of approximately $2.4 million and
have accrued $1.2 million for severance payments in the fourth
quarter of fiscal 2006. "We have and will continue to refine our
product mix and invigorate the Isle brand, providing our customers
the amenities and experiences that they prefer. Our focus on
developing our core properties, implementing technological
advances, and improved service initiatives continues to produce
improved financial results," Tim Hinkley, president and chief
operating officer, said. Operational Review of the Company's
Continuing Operations for the Fourth Quarter Fiscal 2006 Compared
to the Fourth Quarter Fiscal 2005 In Mississippi, the Company's
three continuing operations contributed 29.8% of net revenues.
Isle-Biloxi's net revenues were up from the prior year period
principally because of the new and upgraded land based casino and
the limited competition in the Biloxi market. Adjusted EBITDA(1) at
the property was up significantly over the same quarter in fiscal
2005 also due to reduced competition in the market. Isle-Natchez
experienced increases in both net revenues and Adjusted EBITDA(1)
primarily resulting from continuing effects of population shifts
into its market area. Isle-Lula's net revenues increased due to
improved marketing programs. Adjusted EBITDA(1) also increased due
to more efficient management of expenses. In Louisiana, the
Isle-Lake Charles contributed 16.1% of net revenues. Isle-Lake
Charles experienced an increase in net revenues and Adjusted
EBITDA(1), compared to the prior year period, due to growth in the
overall market and the closure of a competitor in the market. In
Missouri, the Company's two properties contributed 14.8% of net
revenues. Isle-Kansas City's net revenues were down due to a
decreased gaming patron count caused by the completion of
competitors' expansion projects in the market. Isle-Boonville's net
revenues and Adjusted EBITDA(1) increased due to an increase in
marketing efforts. In Iowa, the Company's three casinos contributed
18.2% of net revenues. Combined, the Company's two Quad-City
properties showed a slight increase in both net revenues and
Adjusted EBITDA(1). Isle-Marquette showed a slight decrease in both
net revenues and Adjusted EBITDA(1) due to increased competition in
the surrounding market. In Colorado, the Company's two Black Hawk
casino operations contributed 15.0% of net revenues. The increase
in both net revenues and Adjusted EBITDA(1) were due to the
completion of our expansion projects. Our international operations
account for a small percentage of our overall revenues. Isle-Our
Lucaya experienced a decrease in Adjusted EBITDA(1) primarily due
to the recording of $2.0 million of business interruption proceeds
in the fourth quarter of fiscal 2005. New development expenses
increased compared to the fourth quarter of fiscal 2005 primarily
related to costs incurred relating to pursuit of the stand alone
slot parlor license in Pittsburgh. The increase in Corporate
expenses is primarily related to a $2.3 million gain recorded in
the prior year resulting from the sale of a land option.
Additionally, the current year fourth quarter includes costs of
$0.8 million related to the corporate office relocation. The
Company recorded $3.6 million in valuation and severance charges in
the fourth quarter of fiscal 2006 related to its Our Lucaya
property, resulting from its decision to sell or close the casino
by June of 2007. As a result of adverse market conditions on the
expected future cash flows of the Blue Chip operations, the Company
recorded a valuation charge of $9.6 million related to its Blue
Chip properties. At this time, the Company is unable to record a
tax benefit related to the valuation charge on its Blue Chip
properties. The Company's fiscal year ends on the last Sunday in
April. This fiscal year system creates more comparability of the
Company's quarterly operations, by generally having an equal number
of weeks (13) and weekend days (26) in each quarter. Periodically,
this system necessitates a 53-week year. The fiscal year ended
April 30, 2006 was a 53-week year. The extra week was included in
the fourth fiscal quarter. Operating results from the
Isle-Vicksburg and Isle-Bossier City have been recorded as
Discontinued Operations and thus are not included in the
Operational Review discussed above. Isle of Capri Casinos, Inc.
Consolidated Statements of Income (Unaudited) (In thousands, except
per share amounts) Three Months Ended Fiscal Year Ended April 30,
April 24, April 30, April 24, 2006 2005 2006 2005 Revenues: Casino
$309,932 $256,410 $1,004,644 $957,878 Hotel, pari-mutuel, food,
beverage & other 58,054 49,485 183,550 177,999 Gross revenues
367,986 305,895 1,188,194 1,135,877 Less promotional allowances
61,457 48,856 200,174 188,304 Net revenues (2) 306,529 257,039
988,020 947,573 Operating and other expenses: Properties 209,733
189,821 725,114 720,965 New development (3) 7,940 5,464 19,718
14,378 Corporate 10,839 6,956 35,844 23,039 Preopening (4) 57 --
281 247 Valuation Charge (5) 13,279 238 13,486 1,859 Hurricane
related charges, net (6) -- -- 4,776 -- Depreciation and
amortization 22,317 20,928 87,106 82,337 Total operating and other
expenses 264,165 223,407 886,325 842,825 Operating income 42,364
33,632 101,695 104,748 Interest expense, net (19,359) (15,974)
(71,082) (62,847) Loss on early extinguishment of debt (7) --
(5,251) (2,110) (5,251) Minority interest (8) (2,130) (371) (6,517)
(5,493) Income before income taxes 20,875 12,036 21,986 31,157
Income tax expense (9) 12,785 6,697 14,176 16,125 Income from
continuing operations 8,090 5,339 7,810 15,032 Income (loss) from
discontinued operations (including minority interest), net of
income taxes 7,035 (1,888) 11,213 3,006 Net income $15,125 $3,451
$19,023 $18,038 Earnings per common share - basic: Income from
continuing operations $0.27 $0.18 $0.26 $0.51 Income (loss) from
discontinued operations (including minority interest), net of
income taxes 0.23 (0.06) 0.37 0.10 Net income $0.50 $0.12 $0.63
$0.61 Earnings per common share - diluted: Income from continuing
operations $0.26 $0.17 $0.25 $0.48 Income (loss) from discontinued
operations (including minority interest), net of income taxes 0.22
(0.06) 0.36 0.10 Net income $0.48 $0.11 $0.61 $0.58 Weighted
average basic common shares 30,257 29,833 30,028 29,682 Weighted
average diluted common shares 31,512 31,391 31,270 30,930 Selected
Consolidated Balance Sheet Accounts (In Thousands) April 30, 2006
April 24, 2005 Cash and cash equivalents $121,193 $146,743 Property
and equipment, net 938,169 857,643 Debt 1,221,280 1,156,118
Stockholders' equity 282,688 261,396 Isle of Capri Casinos, Inc.
Comparative Financial Highlights by Casino Property (Unaudited) (In
thousands) Three Months Ended April 30, April 24, 2006 2005
Adjusted Adjusted Net Adjusted EBITDA Net Adjusted EBITDA Revenues
EBITDA (1) Revenues EBITDA (1) (2) (1) Margin % (2) (1) Margin %
MISSISSIPPI BILOXI $52,493 $25,013 47.7% $21,814 $4,518 20.7%
NATCHEZ 13,779 5,921 43.0% 10,438 3,202 30.7% LULA 25,070 7,814
31.2% 24,568 7,241 29.5% MISSISSIPPI TOTAL 91,342 38,748 42.4%
56,820 14,961 26.3% LOUISIANA LAKE CHARLES 49,330 13,616 27.6%
44,114 10,525 23.9% MISSOURI KANSAS CITY 24,397 5,487 22.5% 24,577
4,749 19.3% BOONVILLE 21,040 6,260 29.8% 18,909 5,621 29.7%
MISSOURI TOTAL 45,437 11,747 25.9% 43,486 10,370 23.8% IOWA
BETTENDORF 26,025 9,057 34.8% 25,273 9,489 37.5% DAVENPORT 18,869
5,865 31.1% 17,604 4,426 25.1% MARQUETTE 10,757 2,293 21.3% 10,960
2,708 24.7% IOWA TOTAL 55,651 17,215 30.9% 53,837 16,623 30.9%
COLORADO BLACK HAWK/ COLORADO CENTRAL STATION (10) 46,076 14,215
30.9% 38,340 10,924 28.5% INTERNATIONAL BLUE CHIP (12) 2,214 (252)
(11.4%) 2,171 (473) (21.8%) OUR LUCAYA 7,414 1,233 16.6% 9,381
3,838 40.9% INTERNATIONAL TOTAL 9,628 981 10.2% 11,552 3,365 29.1%
CORPORATE & OTHER (11) 9,065 (18,505) N/M 8,890 (11,970) N/M
TOTAL $306,529 $78,017 25.5% $257,039 $54,798 21.3% Note: Excludes
properties classified as discontinued operations Isle of Capri
Casinos, Inc. Comparative Financial Highlights by Casino Property
(Unaudited) (In thousands) Fiscal Year Ended April 30, April 24,
2006 2005 Adjusted Adjusted Net Adjusted EBITDA Net Adjusted EBITDA
Revenues EBITDA (1) Revenues EBITDA (1) (2) (1) Margin % (2) (1)
Margin % MISSISSIPPI BILOXI $100,855 $38,947 38.6% $80,252 $15,821
19.7% NATCHEZ 45,838 16,311 35.6% 35,836 9,119 25.4% LULA 85,782
21,624 25.2% 85,541 21,073 24.6% MISSISSIPPI TOTAL 232,475 76,882
33.1% 201,629 46,013 22.8% LOUISIANA LAKE CHARLES 161,912 39,066
24.1% 172,081 40,506 23.5% MISSOURI KANSAS CITY 88,125 16,736 19.0%
94,721 18,267 19.3% BOONVILLE 74,519 21,576 29.0% 71,553 20,723
29.0% MISSOURI TOTAL 162,644 38,312 23.6% 166,274 38,990 23.4% IOWA
BETTENDORF 97,346 30,711 31.5% 100,283 34,263 34.2% DAVENPORT
69,068 18,144 26.3% 69,349 17,685 25.5% MARQUETTE 42,563 10,421
24.5% 42,018 10,695 25.5% IOWA TOTAL 208,977 59,276 28.4% 211,650
62,643 29.6% COLORADO BLACK HAWK/ COLORADO CENTRAL STATION (10)
163,411 49,982 30.6% 138,588 39,700 28.6% INTERNATIONAL BLUE CHIP
(12) 8,221 (1,383) (16.8%) 7,856 (1,492) (19.0%) OUR LUCAYA 25,349
2,523 10.0% 23,259 (573) (2.5%) INTERNATIONAL TOTAL 33,570 1,140
3.4% 31,115 (2,065) (6.6%) CORPORATE & OTHER (11) 25,031
(57,314) N/M 26,236 (36,596) N/M TOTAL $988,020 $207,344 21.0%
$947,573 $189,191 20.0% Note: Excludes properties classified as
discontinued operations Isle of Capri Casinos, Inc. Reconciliation
of Operating Income (Loss) to Adjusted EBITDA by Casino Property
(Unaudited) (In thousands) Three Months Ended April 30, 2006
Depreciation Operating Operating & Other Income Income
Amortization Preopening Charges Adjusted Margin% (Loss) (4) (5)
EBITDA (1) (1) MISSISSIPPI BILOXI $21,458 $3,555 $-- $-- $25,013
40.9% NATCHEZ 5,023 898 -- -- 5,921 36.5% LULA 5,300 2,514 -- --
7,814 21.1% MISSISSIPPI TOTAL 31,781 6,967 -- -- 38,748 34.8%
LOUISIANA LAKE CHARLES 10,243 3,373 -- -- 13,616 20.8% MISSOURI
KANSAS CITY 3,921 1,566 -- -- 5,487 16.1% BOONVILLE 5,053 1,207 --
-- 6,260 24.0% MISSOURI TOTAL 8,974 2,773 -- -- 11,747 19.8% IOWA
BETTENDORF 7,287 1,770 -- -- 9,057 28.0% DAVENPORT 4,207 1,658 --
-- 5,865 22.3% MARQUETTE 1,557 736 -- -- 2,293 14.5% IOWA TOTAL
13,051 4,164 -- -- 17,215 23.5% COLORADO BLACK HAWK/ COLORADO
CENTRAL STATION (10) 10,237 3,978 -- -- 14,215 22.2% INTERNATIONAL
BLUE CHIP (12) (9,368) 103 -- 9,013 (252) (423.1%) OUR LUCAYA
(2,675) 266 -- 3,642 1,233 (36.1%) INTERNATIONAL TOTAL (12,043) 369
-- 12,655 981 (125.1%) CORPORATE & OTHER (11) (19,879) 693 57
624 (18,505) N/M TOTAL $42,364 $22,317 $57 $13,279 $78,017 13.8%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc. Reconciliation of Operating Income
(Loss) to Adjusted EBITDA by Casino Property (Unaudited) (In
thousands) Three Months Ended April 24, 2005 Depreciation Operating
Operating & Other Income Income Amortization Charges Adjusted
Margin% (Loss) (5) EBITDA (1) (1) MISSISSIPPI BILOXI $1,973 $2,545
$-- $4,518 9.0% NATCHEZ 2,352 850 -- 3,202 22.5% LULA 4,975 2,266
-- 7,241 20.2% MISSISSIPPI TOTAL 9,300 5,661 -- 14,961 16.4%
LOUISIANA LAKE CHARLES 6,991 3,534 -- 10,525 15.8% 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/ COLORADO CENTRAL STATION (10)
8,128 2,796 -- 10,924 21.2% INTERNATIONAL BLUE CHIP (12) (525) 52
-- (473) (24.2%) OUR LUCAYA 3,449 389 -- 3,838 36.8% INTERNATIONAL
TOTAL 2,924 441 -- 3,365 25.3% CORPORATE & OTHER (11) (12,909)
701 238 (11,970) N/M TOTAL $33,632 $20,928 $238 $54,798 13.1% Note:
Excludes properties classified as discontinued operations Isle of
Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to
Adjusted EBITDA by Casino Property (Unaudited) (In thousands)
Fiscal Year Ended April 30, 2006 Depreciation Hurricane Operating
Operating & Related Adjusted Income Income Amortization
Charges, Preopening Other EBITDA Margin% (Loss) net (6) (4)
Charges(5) (1) (1) MISSISSIPPI BILOXI $27,148 $11,830 $(31) $-- $--
$38,947 26.9% NATCHEZ 12,385 3,922 4 -- -- 16,311 27.0% LULA 12,140
9,484 -- -- -- 21,624 14.2% MISSISSIPPI TOTAL 51,673 25,236 (27) --
-- 76,882 22.2% LOUISIANA LAKE CHARLES 19,517 15,249 4,300 -- --
39,066 12.1% MISSOURI KANSAS CITY 9,951 6,785 -- -- -- 16,736 11.3%
BOONVILLE 17,060 4,516 -- -- -- 21,576 22.9% MISSOURI TOTAL 27,011
11,301 -- -- -- 38,312 16.6% IOWA BETTENDORF 23,512 7,199 -- -- --
30,711 24.2% DAVENPORT 11,112 7,032 -- -- -- 18,144 16.1% MARQUETTE
7,451 2,970 -- -- -- 10,421 17.5% IOWA TOTAL 42,075 17,201 -- -- --
59,276 20.1% COLORADO BLACK HAWK/ COLORADO CENTRAL STATION (10)
36,132 13,850 -- -- -- 49,982 22.1% INTERNATIONAL BLUE CHIP (12)
(10,813) 417 -- -- 9,013 (1,383)(131.5%) OUR LUCAYA (2,646) 1,524 3
-- 3,642 2,523 (10.4%) INTERNATIONAL TOTAL (13,459) 1,941 3 --
12,655 1,140 (40.1%) CORPORATE & OTHER (11) (61,254) 2,328 500
281 831 (57,314) N/M TOTAL $101,695 $87,106 $4,776 $281 $13,486
$207,344 10.3% Note: Excludes properties classified as discontinued
operations Isle of Capri Casinos, Inc. Reconciliation of Operating
Income (Loss) to Adjusted EBITDA by Casino Property (Unaudited) (In
thousands) Fiscal Year Ended April 24, 2005 Depreciation Operating
Operating & Other Income Income Amortization Preopening Charges
Adjusted Margin% (Loss) (4) (5) EBITDA (1) (1) MISSISSIPPI BILOXI
$7,164 $8,657 $-- $-- $15,821 8.9% NATCHEZ 5,823 3,296 -- -- 9,119
16.2% LULA 10,130 10,943 -- -- 21,073 11.8% MISSISSIPPI TOTAL
23,117 22,896 -- -- 46,013 11.5% LOUISIANA LAKE CHARLES 27,036
13,470 -- -- 40,506 15.7% 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/ COLORADO CENTRAL STATION
(10) 29,764 9,936 -- -- 39,700 21.5% INTERNATIONAL BLUE CHIP (12)
(1,952) 213 247 -- (1,492) (24.8%) OUR LUCAYA (2,061) 1,488 -- --
(573) (8.9%) INTERNATIONAL TOTAL (4,013) 1,701 247 -- (2,065)
(12.9%) CORPORATE & OTHER (11) (40,842) 2,387 -- 1,859 (36,596)
N/M TOTAL $104,748 $82,337 $247 $1,859 $189,191 11.1% Note:
Excludes properties classified as discontinued operations 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, Isle-Bossier City and Isle- Vicksburg 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 Fiscal Year Ended April
30, April 24, April 30, April 24, 2006 2005 2006 2005 (In
thousands) Adjusted EBITDA $78,017 $54,798 $207,344 $189,191
(Add)/deduct: Depreciation and amortization 22,317 20,928 87,106
82,337 Preopening (4) 57 -- 281 247 Valuation Charge (5) 13,279 238
13,486 1,859 Hurricane related charges, net (6) -- -- 4,776 --
Interest expense, net 19,359 15,974 71,082 62,847 Loss on early
extinguishment of debt (7) -- 5,251 2,110 5,251 Minority interest
(8) 2,130 371 6,517 5,493 Income tax expense (9) 12,785 6,697
14,176 16,125 Loss (income) from discontinued operations, net of
income taxes (7,035) 1,888 (11,213) (3,006) Net income $15,125
$3,451 $19,023 $18,038 2. 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, the Isle- Bossier City and the
Isle-Vicksburg as discontinued operations. 3. 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. These expenses are detailed in the table below. Three Months
Ended Fiscal Year Ended April 30, April 24, April 30, April 24,
2006 2005 2006 2005 Domestic (a) $4,087 $1,858 $6,795 $7,394
International (b) 3,853 3,606 12,923 6,984 $7,940 $5,464 $19,718
$14,378 (a) Relates primarily to the Company's development efforts
in Pittsburgh, Pennsylvania (b) Includes development expenses
related to construction at Coventry and various other projects in
the UK and the Company's development agreement with Eight Wonder
related to Singapore 4. Preopening expenses for the fiscal year
ended April 30, 2006 are related to construction of the hotel and
casino in Waterloo, Iowa and development at Pompano Park.
Preopening expenses for the fiscal year ended April 24, 2005 relate
to the September 2004 opening of the Blue Chip-Walsall pub-style
casino. 5. For the fiscal quarter and year ended April 30, 2006 and
April 24, 2005, the Company recorded valuation and other charges as
follows: Three Months Ended Fiscal Year Ended April 30, April 24,
April 30, April 24, 2006 2005 2006 2005 United Kingdom related
$9,637 $-- $9,637 $1,621 Isle-Our Lucaya 3,642 -- 3,642 --
Rosemont, Illinois -- 2,514 -- 2,514 Other(c) -- (2,276) 207
(2,276) $13,279 $238 $13,486 $1,859 (c) Related to gain on sale of
land option in St. Louis, Missouri in fiscal 2005 6. 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 affected by
hurricanes. This item 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
recoveries of lost profit will be recognized when agreed to with
the insurance carrier and will be reflected in the related
properties revenue and Adjusted EBITDA(1). 7. Loss on early
extinguishment of debt for the fiscal year ended April 30, 2006
relates to the refinancing of the Isle-Black Hawk's senior secured
credit facility on October 24, 2005. As a result of this
transaction, Isle-Black Hawk expensed the unamortized debt issuance
costs related to its previous credit agreement. 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. 8.
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. 9. The Company's effective
tax rate from continuing operations for year ending April 30, 2006
was 64.5% compared to 51.8% for the year ending April 24, 2005,
which, in each case, excludes an unrelated party's portion of the
Colorado Central Station-Black Hawk's income taxes. This increase
in effective tax rate over the comparable prior fiscal period is
primarily attributable to the impact of not benefiting from a
portion of its current losses in the United Kingdom, and not
benefiting from the capital loss related to the Colorado Grande-
Cripple Creek transaction. 10. As management fees are eliminated in
consolidation, Adjusted EBITDA(1) for the Black Hawk/Colorado
Central Station properties does not include management fees. Fiscal
2006 and 2005 results have been reclassified to reflect the
Colorado Grande-Cripple Creek as a discontinued operation. The
following table shows management fees and Adjusted EBITDA(1)
inclusive of management fees for the three months and fiscal year
ended April 30, 2006 and April 24, 2005: Three Months Ended Fiscal
Year Ended April 30, April 24, April 30, April 24, 2006 2005 2006
2005 (In thousands) Management Fees Black Hawk/Colorado Central
Station $1,993 $1,660 $7,439 $6,077 Adjusted EBITDA with Management
Fees Black Hawk/Colorado Central Station $12,222 $9,264 $42,543
$33,623 11. For the three months ended April 30, 2006 corporate and
other includes net revenues of $8.9 million and Adjusted EBITDA(1)
of $0.1 million for Pompano Park. For the fiscal year ended April
30, 2006, corporate and other includes net revenues of $24.8
million and Adjusted EBITDA(1) of ($2.0) million for Pompano Park.
For the three months ended April 24, 2005, corporate and other
includes net revenues of $8.7 million and Adjusted EBITDA(1) of
$0.2 million for Pompano Park. For the fiscal year ended April 24,
2005, corporate and other includes net revenues of $24.6 million
and Adjusted EBITDA(1) of ($0.9) million for Pompano Park. 12. 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. 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 Bahama, 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. The Company's 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 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 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 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.islecorp.com/
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