ST. LOUIS, Aug. 2 /PRNewswire-FirstCall/ -- Isle of Capri Casinos,
Inc. (NASDAQ:ISLE) today provided additional comments and
information on its financial results for the fourth fiscal quarter
and fiscal year ended April 29, 2007, which were reported in its
Form 10-K filing on July 30, 2007. The Company reported a 17.3%
decrease in net revenues from continuing operations to $255.6
million for the fourth quarter compared to net revenues from
continuing operations of $309.1 million for the same quarter in
fiscal 2006. Loss from continuing operations was $13.1 million or
($0.43) per common share, during the fourth quarter of fiscal 2007
compared to income of $10.5 million or $0.33 per diluted common
share for the fourth quarter of fiscal 2006. Adjusted EBITDA(1)
from continuing operations for the fourth quarter of fiscal 2007
decreased 22.9% to $57.3 million compared to Adjusted EBITDA(1)
from continuing operations of $74.3 million for the same quarter in
fiscal 2006. The fourth quarter ended April 29, 2007 included
thirteen weeks of operating results compared to the fourth quarter
ended April 30, 2006, which included fourteen weeks of operating
results. This accounts for approximately 7.5% of the year over year
decrease in revenues and Adjusted EBITDA(1). Other factors
contributing to the year over year declines include increased
competition in several of the Company's markets, most significantly
Biloxi, Mississippi and severe weather in several markets in the
first period of the fourth quarter of fiscal 2007. For the twelve
months ended April 29, 2007, the Company reported a 1.4% increase
in net revenues from continuing operations to $1.0 billion,
compared to $987.4 million for the comparable period in the prior
year. For the twelve months of fiscal 2007, the Company reported a
loss from continuing operations of $21.3 million, or ($0.70) per
common share, compared to income of $8.6 million, or $0.28 per
diluted common share for the same period in fiscal 2006. Adjusted
EBITDA(1) from continuing operations in the twelve-month period
reported a 4.5% decrease to $194.6 million, compared to $203.7
million for the comparable twelve-month period in fiscal 2006.
During the twelve months ended April 29, 2007, the Company
recognized a pretax gain of $23.2 million related to the sale of
its Isle-Bossier City and Isle-Vicksburg properties. This gain on
sale is included in income from discontinued operations and the
impact on net income per diluted common share was $0.45 for the
twelve-months ended April 29, 2007 with the remaining $0.10 coming
from the normal operating results of the two properties.
Isle-Bossier City, Isle-Vicksburg and Colorado Grande-Cripple Creek
are reflected as discontinued operations for all periods presented.
Accordingly, the operating results for these properties are not
included in the net revenue, income from continuing operations and
Adjusted EBITDA(1) results discussed above. The sale of
Isle-Bossier City and Isle-Vicksburg closed on July 31, 2006.
"Fiscal 2007 was a transitional year for the company, as we
prepared for the opening of three properties under our new brand
'the isle(R),' in addition to opening a new hotel and acquiring a
new property. The response from our guests has been very positive,
and we look forward to growing our database and elevating the
gaming experience for our customers. In addition, we implemented
new technology initiatives that will help us operate and market
more efficiently, and introduced additional programs across the
Company to improve margins," said Bernard Goldstein, president and
chief executive officer. Highlights and Updates The following items
occurred in the fourth quarter of fiscal 2007: -- The Company
revealed its newest brand, "the isle," when its casino property in
Pompano Beach, Florida opened on April 14. -- In April the Company
reached an agreement with government officials and its landlord to
continue the operation of its casino at Our Lucaya in Freeport,
Grand Bahama. -- Construction began on the final phase of the
project to return the Isle of Capri Biloxi Casino Resort to
pre-Katrina planned levels. The project includes a land-based
casino with approximately 2,100 slot machines, 50 table games, a
new poker room, rebuilding the Company's signature steakhouse,
Farraddays'(R), as well as an expanded tropical-themed buffet and
the reinstatement of the property's convention and entertainment
space. The more than $180 million construction project will largely
be funded by insurance proceeds associated with Hurricane Katrina.
The following items occurred subsequent to the end of fiscal 2007
on April 29: -- On May 3, the Florida legislature passed a bill to
permit ATMs on the premises at Broward County pari-mutuel
facilities, although not on the casino floor, increase operating
hours including 18 hours per day on weekdays and 24 hours per day
on the weekends, allow progressive machines, and increase the
number of slot machines from 1,500 to 2,000. The bill went into
effect on July 4. -- The Company opened its $45 million, 258-room
Hotel in Bettendorf, Iowa on May 21. -- The agreement to purchase
Casino Aztar in Caruthersville, Missouri for approximately $45
million was finalized on June 10. -- "the isle" casino and hotel at
Waterloo in Iowa opened on June 30 with a 35,000 square foot single
level casino land-based casino, two restaurants and approximately
200-room hotel. Farraddays', the Company's signature steakhouse, a
nightclub, spa and pool will open later this fiscal year. -- The
Company opened its "the isle" casino at Coventry located at the
RICOH(TM) Arena in the United Kingdom on July 6. The project,
authorized under the Gaming Act of 1968, includes 70 electronic
gaming machines, over 40 table games including poker, as well as
the Company's signature steakhouse, Farraddays', a Tradewinds
Marketplace, and three bars including Lady G's, an entertainment
venue and "Club 87" a sports bar. A private dining club will open
later this fiscal year. -- The Company entered into a $1.35 billion
senior secured credit facility, replacing the prior $700 million
senior secured credit facility. Additionally, the Company has
called its $200 million 9% subordinated notes at a call price of
104.5%. This will be funded through a delayed draw term loan under
the new senior credit facility. -- The Company filed its Form
10-Q/A for the 2007 fiscal third quarter on July 25 and its Form
10-K for the fiscal fourth quarter and year ended April 29, 2007 on
July 30 to complete its previously announced restatements. --
Effective July 30 Virginia McDowell became the Company's new
President and Chief Operating Officer. Additionally, the Company
announced that it had added James B. Perry as a new member of its
Board of Directors. "Our search for a new president and chief
operating officer has come to a close and we are pleased to welcome
Virginia McDowell to the Isle of Capri family. We believe that we
have selected the ideal candidate as Virginia brings just the right
mix of gaming expertise and leadership capabilities to her new
role. Everyone has eagerly welcomed Virginia to the Isle of Capri
family," Mr. Goldstein noted. Operational Review of the Company's
Continuing Operations for the Fourth Quarter of Fiscal 2007
Compared to the Fourth Quarter of Fiscal 2006 Operating results for
the fourth quarter of fiscal 2007 include one less week of
operating results as compared to the fourth quarter of fiscal 2006.
Also the operating results for the fourth quarter of fiscal 2007
include some significant additional expenses, as compared to the
fourth quarter of fiscal 2006. These include an increase of
approximately $4.5 million in property insurance expense over the
prior year's fourth quarter, for a twelve-month total increase of
approximately $18.0 million over the prior fiscal year, which was
allocated across all operating properties. The Company also
recorded approximately $1.6 million of stock compensation expense
in the fourth quarter of fiscal 2007 related to the adoption of
FASB Statement No. 123 (revised 2004) "Share-Based Payment" (SFAS
123(R)), for a twelve-month total increase of approximately $7.2
million over the prior fiscal year. The stock compensation expense
is allocated across all properties, but is primarily reflected in
the Corporate expense line item. Pre-opening costs increased $10.4
million compared to the fourth quarter of fiscal 2006 primarily due
to costs related to our casino developments in Pompano Beach,
Florida; Waterloo, Iowa and Coventry, England. In Mississippi, the
Company's three continuing operations contributed 24.3% of net
revenues. Isle-Biloxi's net revenues and Adjusted EBITDA(1)
decreased significantly from abnormally high prior year operating
results due to increased competition in the market as competitors
have re-opened after closures caused by Hurricane Katrina and while
the Isle-Biloxi remains negatively impacted by the destruction of
the Biloxi/Ocean Springs bridge, which is the primary thoroughfare
for travelers from Florida to east Biloxi where Isle-Biloxi is
located. Two lanes of the Biloxi/Ocean Springs bridge are scheduled
to re-open in November and the complete new bridge with six lanes
is scheduled to re-open in June 2008. Isle-Natchez continues to
experience decreases in both net revenues and Adjusted EBITDA(1)
primarily resulting from the re-opening of casinos along the Gulf
Coast. Isle-Lula's net revenues and Adjusted EBITDA(1) decreased
slightly due to increased competition impacting certain of the
property's outlying feeder markets and disruption due to
renovations of the casino floor. In Louisiana, Isle-Lake Charles
contributed 16.8% of net revenues. Isle-Lake Charles experienced a
decrease in net revenues and Adjusted EBITDA(1) due to increased
competition in the market as competitors have fully re-opened
following closures caused by Hurricane Rita and post hurricane
normalization of population levels in the property's feeder
markets. In Missouri, the Company's two properties contributed
17.2% of net revenues. The Company's Missouri operations were
impacted by severe winter weather in the first period of the fourth
quarter. Isle-Kansas City's net revenues and Adjusted EBITDA(1)
were down due to increased competition related to the completion of
competitors' expansion projects in the market. Isle- Boonville's
net revenues and Adjusted EBITDA(1) increased due to the opening of
the Company's new hotel and an increase in marketing efforts. In
Iowa, the Company's three casinos contributed 17.7% of net
revenues. Combined, the Company's three Iowa properties, the
Isle-Bettendorf, Rhythm City-Davenport, and Isle-Marquette showed a
decrease in both net revenues and Adjusted EBITDA(1) due to
increased competition in certain of our feeder markets in which we
operate, including new and expanded gaming product by several of
our competitors, as well as severe winter weather in the first
period of the fourth quarter. In Colorado, the Company's two Black
Hawk casino operations contributed 15.7% of net revenues. The Black
Hawk properties experienced a decrease in net revenues and Adjusted
EBITDA(1) as compared to the prior year period primarily due to
severe weather in the first period of the quarter and disruption at
the Colorado Central Station gaming floor as it was redesigned for
wider aisles and the implementation of 100% ticketing capabilities
on slots. In International operations, Isle-Our Lucaya recorded a
reversal of approximately $9.4 million in certain prior year
expenses related to the Company's agreement with the Bahamian
government and the Company's landlord to keep the casino open.
Additionally, the Company reversed its $2.2 million lease
termination fee paid in the first quarter of fiscal 2007, which has
now been recorded as pre-paid rent. Corporate and other includes
the Company's corporate office operations, new development costs
and the operating results of Pompano Park. The decrease in
corporate and other compared to the fourth quarter of fiscal 2006
is primarily due to a $6.2 million decrease in new development
costs primarily due to costs incurred in the prior year fiscal
quarter related to the pursuit of gaming licenses in Pittsburgh,
Pennsylvania and Singapore. In December 2006, the Company was
notified that it was not awarded either gaming license. The
operating results of Pompano Park reflected a $3.6 million decrease
in Adjusted EBITDA(1), which relates primarily to construction
disruption, increased property insurance premiums and increased
repairs and maintenance costs incurred on the existing track
facility prior to the opening of the Isle-Pompano casino facility.
The Isle Pompano was only opened for the last two weeks of the
fourth quarter of fiscal 2007. Also, the increase in corporate and
other expenses includes approximately $2.0 million in costs
incurred related to the completion of the restatement of the
Company's historical financial statements. These increased costs
are partially offset by lower bonus, franchise taxes and other
legal costs. The Company recorded a $7.8 million valuation charge
during the fourth quarter of fiscal 2007 related to the Isle-Lula,
based on lower projected cash flows going forward. Comparatively,
the Company recorded a $13.4 million valuation charge in the fourth
quarter of fiscal 2006 related to its Blue Chip, plc operations in
the United Kingdom and the Isle-Our Lucaya. Operating results from
the Colorado Grande-Cripple Creek, Isle-Vicksburg and Isle-Bossier
City have been classified as discontinued operations for all
periods presented and thus are not included in the Operational
Review discussed above. Isle of Capri Casinos, Inc. Consolidated
Statements of Income* (In thousands, except per share amounts)
Three Months Ended Twelve Months Ended April 29, April 30, April
29, April 30, 2007 2006 2007 2006 (Restated) (Restated) Revenues:
Casino $255,614 $309,123 $1,015,629 $1,004,143 Hotel, pari-mutuel,
food, beverage & other 49,134 57,366 200,223 183,390 Gross
revenues 304,748 366,489 1,215,852 1,187,533 Less promotional
allowances 51,385 61,457 214,458 200,174 Net revenues (2) 253,363
305,032 1,001,394 987,359 Operating and other expenses: Properties
182,875 210,784 756,702 725,760 New development (3) 1,608 7,821
16,259 20,369 Corporate expenses (4) 13,215 12,149 41,062 37,494
Preopening (5) 10,436 57 13,573 281 Valuation Charge (6) 7,801
13,388 8,466 13,388 Hurricane related charges, net (7) --- --- ---
4,776 Depreciation and amortization 26,608 23,000 99,506 88,819
Total operating and other expenses 242,543 267,199 935,568 890,887
Operating income 10,820 37,833 65,826 96,472 Interest expense, net
(21,836) (20,135) (81,681) (73,641) Loss on early extinguishment of
debt --- --- --- (2,110) Income from continuing operations before
income taxes and minority interest (11,016) 17,698 (15,855) 20,721
Income tax (provision) benefit (8) (659) (5,079) (1,906) (5,628)
Minority interest (9) (1,449) (2,139) (3,568) (6,462) Income (loss)
from continuing operations (13,124) 10,480 (21,329) 8,631 Income
(loss) from discontinued operations (including minority interest
and gain on sale of discontinued operations), net of income taxes
(10) (1,497) 5,990 16,692 10,244 Net income (loss) $(14,621)
$16,470 $(4,637) $18,875 Earnings per common share - basic: Income
(loss) from continuing operations $(0.43) $0.35 $(0.70) $0.29
Income from discontinued operations (including gain on sale of
assets), net of income taxes (0.05) 0.19 0.55 0.34 Net income
(loss) $(0.48) $0.54 $(0.15) $0.63 Earnings per common share -
diluted: Income (loss) from continuing operations $(0.43) $0.33
$(0.70) $0.28 Income from discontinued operations (including gain
on sale of assets), net of income taxes (0.05) 0.19 0.55 0.32 Net
income (loss) $(0.48) $0.52 $(0.15) $0.60 Weighted average basic
common shares 30,384 30,257 30,384 30,028 Weighted average diluted
common shares 30,384 31,512 30,384 31,270 Selected Consolidated
Balance Sheet Accounts* April 29, April 30, 2007 2006 (Restated)
Cash and cash equivalents $188,114 $121,049 Property and equipment,
net 1,338,570 979,627 Debt 1,417,979 1,219,057 Stockholders' equity
281,822 280,247 *The above excludes properties classified as
discontinued operations. Discontinued operations include the
Company's Bossier City, Louisiana and Vicksburg, Mississippi
properties which were sold on July 31, 2006. Isle of Capri Casinos,
Inc. Comparative Financial Highlights by Casino Property
(Unaudited) (In thousands) Three Months Ended April 29, 2007 April
30, 2006 (Restated) Adjusted Adjusted Net Adjusted EBITDA Net
Adjusted EBITDA Revenues EBITDA (1) Revenues EBITDA (1) (2) (1)
Margin % (2) (1) Margin % MISSISSIPPI BILOXI $28,856 $5,655 19.6%
$52,430 $24,923 47.5% NATCHEZ 10,640 4,389 41.3% 13,767 5,909 42.9%
LULA 22,124 7,010 31.7% 25,019 7,763 31.0% MISSISSIPPI TOTAL 61,620
17,054 27.7% 91,216 38,595 42.3% LOUISIANA LAKE CHARLES 42,615
10,189 23.9% 49,330 13,381 27.1% MISSOURI KANSAS CITY 21,754 4,572
21.0% 24,281 5,332 22.0% BOONVILLE 21,698 6,442 29.7% 21,040 6,260
29.8% MISSOURI TOTAL 43,452 11,014 25.3% 45,321 11,592 25.6% IOWA
BETTENDORF 22,100 6,937 31.4% 25,833 8,865 34.3% DAVENPORT 14,164
3,395 24.0% 18,808 5,168 27.5% MARQUETTE 8,629 1,875 21.7% 10,730
2,266 21.1% IOWA TOTAL 44,893 12,207 27.2% 55,371 16,299 29.4%
COLORADO BLACK HAWK/ COLORADO CENTRAL STATION (11) 39,814 12,901
32.4% 46,076 14,215 30.9% INTERNATIONAL BLUE CHIP 2,589 (322)
(12.4%) 2,214 (283) (12.8%) OUR LUCAYA (12) 5,198 11,664 224.4%
7,414 1,215 16.4% INTERNATIONAL TOTAL 7,787 11,342 145.7% 9,628 932
9.7% CORPORATE & OTHER (13) 13,182 (17,440) N/M 8,090 (20,736)
N/M TOTAL $253,363 $57,267 22.6% $305,032 $74,278 24.4% Note:
Operating results for the fourth quarter of fiscal 2007 include one
less week of operating results as compared to the fourth quarter of
fiscal 2006. Also, the above excludes properties classified as
discontinued operations. Discontinued operations include the
Company's Bossier City, Louisiana and Vicksburg, Mississippi
properties which were sold on July 31, 2006. Isle of Capri Casinos,
Inc. Comparative Financial Highlights by Casino Property
(Unaudited) (In thousands) Twelve Months Ended April 29, 2007 April
30, 2006 (Restated) Adjusted Adjusted Net Adjusted EBITDA Net
Adjusted EBITDA Revenues EBITDA (1) Revenues EBITDA (1) (2) (1)
Margin % (2) (1) Margin % MISSISSIPPI BILOXI $147,825 $45,797 31.0%
$100,790 $39,778 39.5% NATCHEZ 40,864 13,319 32.6% 46,135 16,156
35.0% LULA 83,068 22,485 27.1% 85,731 21,573 25.2% MISSISSIPPI
TOTAL 271,757 81,601 30.0% 232,656 77,507 33.3% LOUISIANA LAKE
CHARLES 170,751 37,991 22.2% 161,912 39,501 24.4% MISSOURI KANSAS
CITY 82,269 13,934 16.9% 88,009 17,468 19.8% BOONVILLE 81,156
23,155 28.5% 74,519 21,576 29.0% MISSOURI TOTAL 163,425 37,089
22.7% 162,528 39,044 24.0% IOWA BETTENDORF 87,699 24,866 28.4%
97,154 30,519 31.4% DAVENPORT 60,483 14,361 23.7% 69,007 17,449
25.3% MARQUETTE 37,593 8,143 21.7% 42,536 10,394 24.4% IOWA TOTAL
185,775 47,370 25.5% 208,697 58,362 28.0% COLORADO BLACK HAWK/
COLORADO CENTRAL STATION (11) 153,718 43,962 28.6% 163,412 49,982
30.6% INTERNATIONAL BLUE CHIP 8,898 (1,032)(11.6%) 8,221 (1,510)
(18.4%) OUR LUCAYA (12) 16,777 7,587 45.2% 25,349 2,968 11.7%
INTERNATIONAL TOTAL 25,675 6,555 25.5% 33,570 1,458 4.3% CORPORATE
& OTHER (13) 30,293 (59,966) N/M 24,584 (62,118) N/M TOTAL
$1,001,394 $194,602 19.4% $987,359 $203,736 20.6% Note: Operating
results for fiscal year 2007 include one less week of operating
results as compared to fiscal year 2006. Also, the above excludes
properties classified as discontinued operations. Discontinued
operations include the Company's Bossier City, Louisiana and
Vicksburg, Mississippi properties which were sold on July 31, 2006.
Isle of Capri Casinos, Inc. Reconciliation of Operating Income
(Loss) to Adjusted EBITDA by Casino Property (Unaudited) (In
thousands) Three Months Ended April 29, 2007 Stock Deprecia-
Compen- Operating tion & Pre- sation Valuation Adjusted Income
Amortiza- opening Expense Charge EBITDA (Loss) tion (5) (4) (6) (1)
MISSISSIPPI BILOXI $19 $5,586 $--- $50 $--- $5,655 NATCHEZ 3,381
985 --- 23 --- 4,389 LULA (3,438) 2,596 --- 51 7,801 7,010
MISSISSIPPI TOTAL (38) 9,167 --- 124 7,801 17,054 LOUISIANA
LOUISIANA TOTAL 6,346 3,821 --- 22 --- 10,189 MISSOURI KANSAS CITY
3,116 1,417 --- 39 --- 4,572 BOONVILLE 5,173 1,216 --- 53 --- 6,442
MISSOURI TOTAL 8,289 2,633 --- 92 --- 11,014 IOWA BETTENDORF 4,896
2,023 --- 18 --- 6,937 DAVENPORT 1,790 1,586 --- 19 --- 3,395
MARQUETTE 1,051 766 --- 58 --- 1,875 IOWA TOTAL 7,737 4,375 --- 95
--- 12,207 COLORADO BLACK HAWK/COLORADO CENTRAL STATION (11) 8,926
3,911 --- 64 --- 12,901 INTERNATIONAL BLUE CHIP (513) 191 --- ---
--- (322) OUR LUCAYA (12) 11,576 62 --- 26 --- 11,664 INTERNATIONAL
TOTAL 11,063 253 --- 26 --- 11,342 CORPORATE & OTHER (13)
(31,503) 2,448 10,436 1,179 --- (17,440) TOTAL $10,820 $26,608
$10,436 $1,602 $7,801 $57,267 Note: Operating results for the
fourth quarter of fiscal 2007 include one less week of operating
results as compared to the fourth quarter of fiscal 2006. Also, the
above excludes properties classified as discontinued operations.
Discontinued operations include the Company's Bossier City,
Louisiana and Vicksburg, Mississippi properties which were sold on
July 31, 2006. 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
(Restated) Deprecia- Operating tion & Pre- Valuation Adjusted
Income Amortiza- opening Charge EBITDA (Loss) tion (5) (6) (1)
MISSISSIPPI BILOXI $21,422 $3,501 $--- $--- $24,923 NATCHEZ 5,011
898 --- --- 5,909 LULA 5,249 2,514 --- --- 7,763 MISSISSIPPI TOTAL
31,682 6,913 --- --- 38,595 LOUISIANA LOUISIANA TOTAL 10,008 3,373
--- --- 13,381 MISSOURI KANSAS CITY 3,517 1,815 --- --- 5,332
BOONVILLE 5,053 1,207 --- --- 6,260 MISSOURI TOTAL 8,570 3,022 ---
--- 11,592 IOWA BETTENDORF 7,095 1,770 --- --- 8,865 DAVENPORT
3,529 1,639 --- --- 5,168 MARQUETTE 1,530 736 --- --- 2,266 IOWA
TOTAL 12,154 4,145 --- --- 16,299 COLORADO BLACK HAWK/COLORADO
CENTRAL STATION (11) 10,237 3,978 --- --- 14,215 INTERNATIONAL BLUE
CHIP (9,334) 136 --- 8,915 (283) OUR LUCAYA (12) (2,693) 266 ---
3,642 1,215 INTERNATIONAL TOTAL (12,027) 402 --- 12,557 932
CORPORATE & OTHER (13) (22,791) 1,167 57 831 (20,736) TOTAL
$37,833 $23,000 $57 $13,388 $74,278 Note: The above excludes
properties classified as discontinued operations. Discontinued
operations include the Company's Bossier City, Louisiana and
Vicksburg, Mississippi properties which were sold on July 31, 2006.
Isle of Capri Casinos, Inc. Reconciliation of Operating Income
(Loss) to Adjusted EBITDA by Casino Property (Unaudited) (In
thousands) Twelve Months Ended April 29, 2007 Stock Deprecia-
Compen- Operating tion & Pre- sation Valuation Adjusted Income
Amortiza- opening Expense Charge EBITDA (Loss) tion (5) (4) (6) (1)
MISSISSIPPI BILOXI $26,948 $18,651 $--- $198 $--- $45,797 NATCHEZ
9,391 3,853 --- 75 --- 13,319 LULA 4,231 10,245 --- 208 7,801
22,485 MISSISSIPPI TOTAL 40,570 32,749 --- 481 7,801 81,601
LOUISIANA LOUISIANA TOTAL 22,079 15,809 --- 103 --- 37,991 MISSOURI
KANSAS CITY 7,258 6,522 --- 154 --- 13,934 BOONVILLE 17,884 5,085
--- 186 --- 23,155 MISSOURI TOTAL 25,142 11,607 --- 340 --- 37,089
IOWA BETTENDORF 17,120 7,672 --- 74 --- 24,866 DAVENPORT 8,094
6,207 --- 60 --- 14,361 MARQUETTE 4,802 3,121 --- 220 --- 8,143
IOWA TOTAL 30,016 17,000 --- 354 --- 47,370 COLORADO BLACK
HAWK/COLORADO CENTRAL STATION (11) 27,894 15,833 --- 235 --- 43,962
INTERNATIONAL BLUE CHIP (2,282) 585 --- --- 665 (1,032) OUR LUCAYA
(12) 7,192 300 --- 95 --- 7,587 INTERNATIONAL TOTAL 4,910 885 ---
95 665 6,555 CORPORATE & OTHER (13) (84,785) 5,623 13,573 5,623
--- (59,966) TOTAL $65,826 $99,506 $13,573 $7,231 $8,466 $194,602
Note: Operating results for fiscal year 2007 include one less week
of operating results as compared to fiscal year 2006. Also, the
above excludes properties classified as discontinued operations.
Discontinued operations include the Company's Bossier City,
Louisiana and Vicksburg, Mississippi properties which were sold on
July 31, 2006. Isle of Capri Casinos, Inc. Reconciliation of
Operating Income (Loss) to Adjusted EBITDA by Casino Property
(Unaudited) (In thousands) Twelve Months Ended April 30, 2006
(Restated) Deprecia- Hurricane Operating tion & Related Pre-
Valuation Adjusted Income Amortiza- Charges, opening Charge EBITDA
(Loss) tion net (5) (6) (1) MISSISSIPPI BILOXI $28,143 $11,666
$(31) $--- $--- $39,778 NATCHEZ 12,230 3,922 4 --- --- 16,156 LULA
12,089 9,484 --- --- --- 21,573 MISSISSIPPI TOTAL 52,462 25,072
(27) --- --- 77,507 LOUISIANA LOUISIANA TOTAL 19,952 15,249 4,300
--- --- 39,501 MISSOURI KANSAS CITY 10,282 7,186 --- --- --- 17,468
BOONVILLE 17,060 4,516 --- --- --- 21,576 MISSOURI TOTAL 27,342
11,702 --- --- --- 39,044 IOWA BETTENDORF 23,320 7,199 --- --- ---
30,519 DAVENPORT 10,435 7,014 --- --- --- 17,449 MARQUETTE 7,424
2,970 --- --- --- 10,394 IOWA TOTAL 41,179 17,183 --- --- ---
58,362 COLORADO BLACK HAWK/COLORADO CENTRAL STATION (11) 36,132
13,850 --- --- --- 49,982 INTERNATIONAL BLUE CHIP (10,974) 549 ---
--- 8,915 (1,510) OUR LUCAYA (12) (2,201) 1,524 3 --- 3,642 2,968
INTERNATIONAL TOTAL (13,175) 2,073 3 --- 12,557 1,458 CORPORATE
& OTHER (13) (67,420) 3,690 500 281 831 (62,118) TOTAL $96,472
$88,819 $4,776 $281 $13,388 $203,736 Note: The above excludes
properties classified as discontinued operations. Discontinued
operations include the Company's Bossier City, Louisiana and
Vicksburg, Mississippi properties which were sold on July 31, 2006.
1. EBITDA is "earnings before interest, income taxes, depreciation
and amortization." Isle of Capri calculates Adjusted EBITDA at its
properties by adding depreciation and amortization, pre-opening
expense, management fees, other charges and non-cash items to
Operating Income (Loss). 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 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 2007
and 2006 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 Twelve Months Ended April
29, April 30, April 29, April 30, 2007 2006 2007 2006 (Restated)
(Restated) (In thousands) Adjusted EBITDA $57,267 $74,278 $194,602
$203,736 (Add)/deduct: Depreciation and amortization 26,608 23,000
99,506 88,819 Stock compensation expense 1,602 - 7,231 - Preopening
(5) 10,436 57 13,573 281 Valuation Charge (6) 7,801 13,388 8,466
13,388 Hurricane related charges, net (7) - - - 4,776 Interest
expense, net 21,836 20,135 81,681 73,641 Loss on early
extinguishment of debt - - - 2,110 Income tax provision (benefit)
(8) 659 5,079 1,906 5,628 Minority interest (9) 1,449 2,139 3,568
6,462 Loss (income) from discontinued operations, net of income
taxes (10) 1,497 (5,990) (16,692) (10,244) Net income (loss)
$(14,621) $16,470 $(4,637) $18,875 2. Net revenues are presented
net of complimentaries, slot points expense and cash coupon
redemptions. Fiscal 2007 and 2006 results have been reclassified to
reflect Colorado Grande-Cripple Creek, Isle-Bossier City and
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 Twelve Months Ended April 29, April 30, April 29, April 30,
2007 2006 2007 2006 (Restated) (Restated) Domestic (a) $1,156
$3,972 $11,737 $8,036 International (b) 452 3,849 4,522 12,333
$1,608 $7,821 $16,259 $20,369 (a) Relates primarily to the
Company's development efforts in Pittsburgh, Pennsylvania. The
Company was notified in December 2006 that it was not awarded this
license. (b) Includes development expenses related to development
the Company's development agreement with Eighth Wonder related to
Singapore. The Company was notified in December 2006 that it was
not awarded this license. 4. Included in Corporate expenses for the
three months and the twelve months ended April 29, 2007 was $1.2
and $5.6 million, respectively, of compensation cost related to
qualified and non-qualified stock options recognized related to the
adoption of SFAS 123(R) on May 1, 2006. Also included in the three
months and twelve months ended April 29, 2007, was $0.7 million and
$5.4 million, respectively, related to the relocation of the
Company's corporate headquarters to Saint Louis, Missouri. 5.
Pre-opening expenses for the three months and the twelve months
ended April 29, 2007 are related to our development at Pompano
Beach, Florida, construction of the hotel and casino in Waterloo,
Iowa, and our development project at RICOH(TM) Arena in Coventry,
England. Pre-opening expenses for the three months and the twelve
months ended April 30, 2006 relate to the development at Pompano
Beach, Florida and construction of the hotel and casino in
Waterloo, Iowa. 6. Valuation charges in fiscal year 2007 relate
primarily to goodwill impairment at Isle-Lula and an asset
impairment charge on real property at Blue Chip. Valuation charges
in fiscal year 2006 are primarily related to Isle -- Our Lucaya and
Blue Chip. Impairment at Isle-Our Lucaya was due to the change in
expected cash flows resulting from our previous decision to close
the casino. Subsequently, in April 2007, our Board of Directors
approved agreements with its landlord and the Government of the
Bahamas, which allowed the casino to remain open; however, the
impairment charge was not reversed in 2007. Additionally in fiscal
year 2006, we recorded valuation charges related to adverse market
conditions on expected cash flows of the Blue Chip Casinos plc
operations in the United Kingdom. 7. 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. In addition, 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). Accordingly, during the
third fiscal quarter ended January 28, 2007, the Company recorded
$2.2 million of income at its Lake Charles facility related to lost
profits from Hurricane Rita and $0.6 million at its Pompano
facility related to Hurricane Wilma. 8. The Company's effective tax
rate from continuing operations for the quarter ended April 29,
2007 was an expense of 6.0% compared to an expense of 28.7% for the
quarter ended April 30, 2006, which, in each case, excludes an
unrelated party's portion of Colorado Central Station-Black Hawk's
income taxes. The Company's effective tax rate from continuing
operations was an expense of 12% for the fiscal year ended April
29, 2007, compared to an expense of 27.1% for fiscal year ended
April 30, 2006, which, in each case, excludes our joint venture
partner's portion of the Colorado Central Station-Black Hawk income
taxes. The primary drivers for the difference between the Company's
effective tax rate and the statutory tax rates were permanent
differences from non-deductible expenses, goodwill impairment
charges, AMT and employment tax credits, change in state valuation
allowances, international operations, taxes related to minority
interests, involuntary conversion related to Hurricane Katrina,
impairment of Bahamas operations, restatement changes to deferred
tax balances and qualified stock option expenses that are not
deductible. 9. Minority interest represents unrelated third
parties' interest in Isle-Black Hawk's income before income taxes
and Colorado Central Station-Black Hawk's net income. 10. On July
31, 2006 the Company completed the sale of Isle-Bossier City and
Isle-Vicksburg to Legends Gaming, LLC. The Company received
approximately $240 million in proceeds from the sale and has
recognized a pre-tax gain of $23.2 million. Taxes on the gain were
$9.7 with a net gain on sale of discontinued operations of $13.5
million. 11. As management fees are eliminated in consolidation,
Adjusted EBITDA(1) for the combined Black Hawk/Colorado Central
Station property does not include management fees. Fiscal 2006
results have been reclassified to reflect 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 and twelve months ended April 29, 2007 and April 30,
2006: Three Months Ended Twelve Months Ended April 29, April 30,
April 29, April 30, 2007 2006 2007 2006 (Restated) (Restated) (In
thousands) Management Fees Black Hawk/Colorado Central Station
$1,791 $1,993 $6,818 $7,439 Adjusted EBITDA with Management Fees
Black Hawk/Colorado Central Station $11,110 $12,222 $37,144 $42,543
12. In April 2006 the Company determined it would close its
Isle-Our Lucaya property in Freeport, Grand Bahama by June 2007. In
April 2007 the Company reached an agreement with government
officials and its landlord to continue the Isle-Our Lucaya
operations. Accordingly, during the fourth quarter of fiscal 2007,
the Company has reversed $9.4 million of prior year expenses and
$2.2 million of lease termination costs incurred in the first
quarter of fiscal 2007. 13. For the three months ended April 29,
2007 corporate and other includes net revenues of $13.2 million and
Adjusted EBITDA(1) of $(3.7) million related to operations at the
Pompano Park property compared to net revenues of $8.9 million and
Adjusted EBITDA(1) of $(0.1) million for the same prior year
period. For the twelve months ended April 29, 2007, corporate and
other includes net revenues of $30.1 million and Adjusted EBITDA(1)
of $(8.4) million related to operations at the Pompano Park
property compared to net revenues of $24.7 million and Adjusted
EBITDA(1) of $(2.1) million for the same prior year period. Isle of
Capri Casinos, Inc., founded in 1992, is dedicated to providing its
customers with an exceptional gaming and entertainment experience
at each of its 18 casino properties. The Company owns and operates
casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles,
Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa;
Boonville, Caruthersville and Kansas City, Missouri and a casino
and harness track in Pompano Beach, Florida. The Company also
operates and has a 57 percent ownership interest in two casinos in
Black Hawk, Colorado. Isle of Capri Casinos' international gaming
interests include a casino that it operates in Freeport, Grand
Bahama, a casino in Coventry, England, and a two-thirds ownership
interest in casinos in Dudley and Wolverhampton, England. There are
four Isle of Capri Casinos brands including "the isle," Isle of
Capri, Colorado Central Station and Rhythm City, providing over
16,000 slot machines, 550 table games and 3000 hotel rooms for our
guests' enjoyment. This press release may be deemed to contain
forward-looking statements, which are subject to change. These
forward-looking statements may be significantly impacted, either
positively or negatively by various factors, including without
limitation, licensing, and other regulatory approvals, financing
sources, development and construction activities, costs and delays,
weather, permits, competition and business conditions in the gaming
industry. The forward-looking statements are subject to numerous
risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements
herein. CONTACTS: Isle of Capri Casinos, Inc., Allan B. Solomon,
Executive Vice President-561.995-6660 Donn Mitchell, Chief
Financial Officer-314.813.9319 Jill Haynes, Senior Director of
Corporate Communication-314.813.9368 NOTE: Other Isle of Capri
Casinos, Inc. press releases and a corporate profile are available
at http://www.prnewswire.com/. Isle of Capri Casinos, Inc.'s home
page is http://www.islecorp.com/. 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 30, 2006. DATASOURCE: Isle of Capri Casinos, Inc. CONTACT:
Allan B. Solomon, Executive Vice President, +1-561-995-6660, or
Donn Mitchell, Chief Financial Officer, +1-314-813-9319, or Jill
Haynes, Senior Director of Corporate Communication,
+1-314-813-9368, all of Isle of Capri Casinos, Inc. Web site:
http://www.islecorp.com/
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