* Despite economic challenges, Isle increases market share, EBITDA
or operating margins at half of its properties compared to prior
year * Strategic focus remains on long-term financial success *
Completes sale of operating assets in the United Kingdom ST. LOUIS,
Dec. 1 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc.
(NASDAQ:ISLE) (the "Company") today reported financial results for
the second quarter of the Company's 2010 fiscal year ended October
25, 2009. In making the announcement, James B. Perry, the Company's
chairman and chief executive officer, said, "In an environment
plagued with low consumer confidence, our ongoing improvement
initiatives are proving successful. We began an aggressive effort
to realign our cost structure two years ago, and have since become
more efficient while improving the customer experience according to
our metrics. "While we will continue to save where it makes sense,
it is important to reaffirm our commitment to the long-term success
of our business. We carefully evaluate making major changes to the
customer experience which could negatively impact our business for
years to come. Additionally, we completed the sale of a majority of
our Blue Chip operating casino assets this week, completed our exit
from the property in Grand Bahama last week, and expect to
liquidate our remaining United Kingdom net assets before the end of
our current fiscal year. We remain focused on exploring new
domestic management and development opportunities. "Overall, I am
proud of the focus of our team as we continue to work our way
through the most challenging economic environment I have seen
during my career. Our business is smarter and stronger today, and
we are actively engaged in identifying growth opportunities for the
future." Consolidated Results The following table outlines the
Company's financial results (dollars in millions, except per share
data, unaudited): Three Months Ended Six Months Ended October 25,
October 26, October 25, October 26, 2009 2008 2009 2008 Net
revenues $247.4 $249.6 $507.3 $527.0 EBITDA(1) 41.3 36.7 89.7 89.7
Income (loss) from continuing operations 1.8 (10.7) 2.6 (13.3) Net
income (loss) 1.6 (13.5) 2.5 (17.1) Income (loss) per share from
continuing operations 0.06 (0.34) 0.08 (0.43) Net income (loss) per
share 0.05 (0.43) 0.08 (0.55) Significant items impacting EBITDA
during the three and six months ended October 25, 2009 and October
26, 2008 are as follows: Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26, 2009 2008 2009 2008
Expense recoveries - Pittsburgh development cost(2) $6.8 $- $6.8 $-
Portland development expense(2) - - - (6.0) Marquette hotel
demolition(3) (0.5) - (0.5) - Caruthersville property tax
settlement(4) 0.9 - 0.9 - $7.2 $- $7.2 $(6.0) Second Quarter
Highlights During the quarter, net revenues decreased by 0.9% to
$247.4 million compared to the second quarter of FY 2009. EBITDA
from continuing operations for the second quarter of FY 2010 was
$41.3 million, compared to $36.7 million for the second quarter of
FY 2009. Before consideration of the items reflected in the table
above, EBITDA from continuing operations for the second quarter of
FY 2010 was $34.1 million, compared to $36.7 million for the second
quarter of FY 2009. Property EBITDA decreased $3.7 million from the
prior year to $46.1 million. Before consideration of the items
reflected in the table above, EBITDA from continuing operations for
the six months ended October 25, 2009 was $82.4 million, compared
to $95.7 million for six months ended October 26, 2008. Property
EBITDA decreased $14.7 million from the prior year to $104.3
million. Virginia McDowell, the Company's president and chief
operating officer, said, "We view this not only as a period of
economic difficulty, but also as a period of opportunity. We are
employing different strategies in each market to best position our
operations for long-term financial success, and as a result, we
have increased market share, EBITDA or operating margins in at
least one-half of our properties since last year. Importantly, as
we continue to position our business for greater financial success
upon changes in consumer spending, we have increased our rated
visitation at nine of our eleven properties outside of Missouri,
where recent regulatory changes have made this difficult to track
in the immediate term. We are introducing new customers to our
improved products and service, but the challenge remains average
customer spending. "Now realizing the majority of the financial
benefits of our aggressive cost containment measures compared to
prior year, we are continuously implementing changes to our
back-of-house operating strategies and customer experience
amenities designed to drive incremental revenue and impact future
earnings. "Our properties in Missouri performed well due to both
operational and regulatory changes, in particular the rebranding of
our Caruthersville property to a Lady Luck and new initiatives in
Kansas City that have increased earnings. In Colorado, we have
benefited from recent regulatory reforms and are optimistic that we
can improve our performance. Overall the reforms have been a win
for all parties in both states, as we have increased our revenues,
the associated tax base for the governments has grown and customers
are receiving a better experience. Additionally, through cost
savings and marketing initiatives we were able to maintain relative
stability at our properties in Mississippi despite a large decrease
in overall market revenue. "While we performed well overall, the
competitive landscape in three markets presented difficulties
during the quarter that we continue to address. In Iowa, the
introduction or expansion of several new facilities has had a
significant negative impact on our revenues and earnings, and we
are exploring new strategies to improve our market share there as
the trial period for the newer facilities fades. In Lake Charles,
we are making changes at the property that will allow us to compete
more effectively in a highly promotional market. Finally, in
Florida, we remain committed to working with the government to end
the days of having to operate on an extraordinarily uneven playing
field, which is currently destroying earnings for tax-paying
commercial operators and potentially putting thousands of good jobs
at stake." Corporate and Other Expenses Corporate and other
expenses decreased $1.1 million to $13.3 million for the three
months ended October 25, 2009 compared to prior year. Non-cash
stock compensation expense decreased $0.2 million and $1.1 million
in the three and six months ended October 25, 2009, respectively,
to $2.6 million and $3.7 million, when compared to prior year.
Interest expense for the quarter was $17.9 million, a decline of
approximately $6.3 million compared to the prior fiscal year,
primarily as a result of lower debt levels. Income tax benefit for
the three and six months ended October 25, 2009 includes the
favorable impact of $4.7 million from the settlement of state tax
matters. Capital Structure and Capital Expenditures As of October
25, 2009, the Company had $76.1 million in cash and cash
equivalents and total debt of $1.2 billion. Capital expenditures
for the six months ended October 25, 2009 totaled $15.3 million,
which included approximately $13 million of maintenance capital
expenditures. We expect maintenance capital expenditures for the
rest of the fiscal year to be approximately $25 million. Conference
Call Information Isle of Capri Casinos, Inc. will host a conference
call on Tuesday, December 1, 2009 at 10:00 am Central Time during
which management will discuss the financial and other matters
addressed in this press release. The conference call can be
accessed by interested parties via webcast through the investor
relations page of the Company's website, http://www.islecorp.com/,
or, for domestic callers, by dialing (877) 917-8929. International
callers can access the conference call by dialing (517) 308-9020.
The conference call access code is 9056848. This conference call
will be recorded and available for review starting at noon on
December 1, 2009, until December 8, 2009, by dialing (866) 459-3540
for domestic callers or (203) 369-1329 for International callers.
The access code will be 875962. ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share
and per share data) (unaudited) Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26, 2009 2008 2009 2008
Revenues: Casino $252,192 $251,828 $516,148 $528,614 Rooms 11,803
12,774 24,064 26,480 Pari-mutuel, food, beverage and other 33,786
32,981 68,656 69,528 Gross revenues 297,781 297,583 608,868 624,622
Less promotional allowances (50,415) (48,005) (101,560) (97,649)
Net revenues 247,366 249,578 507,308 526,973 Operating expenses:
Casino 40,289 37,791 80,283 76,332 Gaming taxes 64,509 63,318
130,937 133,976 Rooms 2,766 3,193 5,747 6,582 Pari-mutuel, food,
beverage and other 11,569 12,473 22,727 26,134 Marine and
facilities 16,417 17,027 32,371 33,497 Marketing and administrative
64,947 65,872 130,064 131,226 Corporate and development 12,340
13,201 22,285 23,531 Expense recoveries and other charges (6,762) -
(6,762) 6,000 Depreciation and amortization 28,437 30,935 57,266
62,501 Total operating expenses 234,512 243,810 474,918 499,779
Operating income 12,854 5,768 32,390 27,194 Interest expense
(17,883) (24,225) (36,230) (48,122) Interest income 400 450 769 896
Loss from continuing operations before income taxes (4,629)
(18,007) (3,071) (20,032) Income tax benefit 6,411 7,337 5,644
6,722 Income (loss) from continuing operations 1,782 (10,670) 2,573
(13,310) Loss from discontinued operations, net of income taxes
(220) (2,830) (106) (3,816) Net income (loss) $1,562 $(13,500)
$2,467 $(17,126) Income (loss) per common share-basic and dilutive:
Income (loss) from continuing operations $0.06 $(0.34) $0.08
$(0.43) Loss from discontinued operations, net of income taxes
(0.01) (0.09) - (0.12) Net income (loss) $0.05 $(0.43) $0.08
$(0.55) Weighted average basic shares 32,319,789 31,171,903
32,049,444 31,019,289 Weighted average diluted shares 32,511,462
31,171,903 32,251,102 31,019,289 ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS (In thousands, except per share
amounts) October 25, April 26, 2009 2009 ASSETS (unaudited) Current
assets: Cash and cash equivalents $76,056 $96,654 Marketable
securities 18,624 17,548 Accounts receivable, net 9,189 11,935
Income taxes receivable 2,312 7,744 Deferred income taxes 16,295
16,295 Prepaid expenses and other assets 32,908 23,234 Assets held
for sale 4,525 4,183 Total current assets 159,909 177,593 Property
and equipment, net 1,137,534 1,177,540 Other assets: Goodwill
313,136 313,136 Other intangible assets, net 81,631 83,588 Deferred
financing costs, net 8,150 9,314 Restricted cash 2,774 2,774
Prepaid deposits and other 23,219 18,717 Total assets $1,726,353
$1,782,662 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Current maturities of long-term debt $9,806 $9,688
Accounts payable 20,307 16,246 Accrued liabilities: Interest 14,934
9,280 Payroll and related 43,712 47,209 Property and other taxes
36,914 31,487 Other 44,411 52,195 Liabilities related to assets
held for sale 2,177 1,888 Total current liabilities 172,261 167,993
Long-term debt, less current maturities 1,228,918 1,291,384
Deferred income taxes 27,043 24,970 Other accrued liabilities
42,255 52,575 Other long-term liabilities 17,242 17,314
Stockholders' equity: Preferred stock, $.01 par value; 2,000,000
shares authorized; none issued - - Common stock, $.01 par value;
45,000,000 shares authorized; shares issued: 36,753,733 at October
25, 2009 and 36,111,089 at April 26, 2009 368 361 Class B common
stock, $.01 par value; 3,000,000 shares authorized; none issued - -
Additional paid-in capital 197,876 193,827 Retained earnings
104,295 101,828 Accumulated other comprehensive (loss) income
(11,798) (15,191) 290,741 280,825 Treasury stock, 4,326,242 shares
at October 25, 2009 and 4,340,436 shares at April 26, 2009 (52,107)
(52,399) Total stockholders' equity 238,634 228,426 Total
liabilities and stockholders' equity $1,726,353 $1,782,662 Isle of
Capri Casinos, Inc. Supplemental Data - Net Revenues (unaudited, in
thousands) Three Months Ended Six Months Ended October 25, October
26, October 25, October 26, 2009 2008 2009 2008 Mississippi Biloxi
$17,717 $19,112 $38,031 $43,455 Natchez 7,786 8,511 16,359 17,096
Lula 15,820 15,945 33,548 34,346 Mississippi Total 41,323 43,568
87,938 94,897 Louisiana Lake Charles 34,243 32,928 71,857 74,102
Missouri Kansas City 19,101 17,360 38,586 35,571 Boonville 19,846
18,610 39,918 38,845 Caruthersville 7,925 7,331 16,257 15,146
Missouri Total 46,872 43,301 94,761 89,562 Iowa Bettendorf 20,507
23,154 41,673 49,281 Davenport 11,866 13,357 24,319 23,942
Marquette 7,478 8,327 14,955 16,814 Waterloo 20,224 20,267 40,100
39,866 Iowa Total 60,075 65,105 121,047 129,903 Colorado Black Hawk
34,595 31,423 68,385 64,612 Florida Pompano 28,569 31,117 59,367
68,020 International Our Lucaya 1,418 2,072 3,552 5,645 Property
Net Revenues before Other 247,095 249,514 506,907 526,741 Other 271
64 401 232 Net Revenues from Continuing Operations $247,366
$249,578 $507,308 $526,973 Isle of Capri Casinos, Inc. Supplemental
Data - EBITDA (1) (unaudited, in thousands) Three Months Ended Six
Months Ended October 25, October 26, October 25, October 26, 2009
2008 2009 2008 Mississippi Biloxi $1,507 $1,333 $3,892 $6,245
Natchez 2,394 2,729 5,127 5,707 Lula 3,632 3,526 8,287 9,626
Mississippi Total 7,533 7,588 17,306 21,578 Louisiana Lake Charles
4,254 5,467 11,836 16,154 Missouri Kansas City 4,148 2,658 8,600
6,277 Boonville 6,525 5,995 13,301 12,343 Caruthersville 1,140
1,246 2,893 2,949 Missouri Total 11,813 9,899 24,794 21,569 Iowa
Bettendorf 5,286 7,945 11,268 17,514 Davenport 3,073 4,309 6,687
7,509 Marquette 1,397 2,267 3,169 4,687 Waterloo 5,510 5,589 11,358
11,722 Iowa Total 15,266 20,110 32,482 41,432 Colorado Black Hawk
9,028 7,919 17,593 17,327 Florida Pompano (786) (224) 1,677 2,006
International Our Lucaya (968) (918) (1,369) (1,074) Property
EBITDA Before Corporate and Other Items 46,140 49,841 104,319
118,992 Corporate and Other (12,070) (13,138) (21,884) (23,297)
EBITDA Before Other Items 34,070 36,703 82,435 95,695 Other Items:
Expense Recoveries and Other (2) 6,762 - 6,762 (6,000) Marquette
Hotel Demolition(3) (475) - (475) - Caruthersville Property Tax
Settlement(4) 934 - 934 - EBITDA from Continuing Operations $41,291
$36,703 $89,656 $89,695 Isle of Capri Casinos, Inc. Supplemental
Data - Reconciliation of Operating Income to EBITDA (1) (unaudited,
in thousands) Three Months Ended Three Months Ended October 25,
2009 October 26, 2008 Depreciation Depreciation Operating and
Operating and Income Amortization EBITDA Income Amortization EBITDA
Mississippi Biloxi $(1,979) $3,486 $1,507 $(3,093) $4,426 $1,333
Natchez 1,956 438 2,394 1,925 804 2,729 Lula 1,614 2,018 3,632
1,404 2,122 3,526 Mississippi Total 1,591 5,942 7,533 236 7,352
7,588 Louisiana Lake Charles 1,658 2,596 4,254 2,320 3,147 5,467
Missouri Kansas City 3,169 979 4,148 1,503 1,155 2,658 Boonville
5,396 1,129 6,525 4,776 1,219 5,995 Caruthersville 311 829 1,140 58
1,188 1,246 Missouri Total 8,876 2,937 11,813 6,337 3,562 9,899
Iowa Bettendorf 3,077 2,209 5,286 5,698 2,247 7,945 Davenport 2,234
839 3,073 3,249 1,060 4,309 Marquette 803 594 1,397 1,583 684 2,267
Waterloo 2,541 2,969 5,510 2,686 2,903 5,589 Iowa Total 8,655 6,611
15,266 13,216 6,894 20,110 Colorado Black Hawk 5,265 3,763 9,028
3,432 4,487 7,919 Florida Pompano (5,163) 4,377 (786) (4,395) 4,171
(224) International Our Lucaya (968) - (968) (922) 4 (918) Total
Property Before Corporate and Other Items 19,914 26,226 46,140
20,224 29,617 49,841 Corporate and Other (13,323) 1,253 (12,070)
(14,456) 1,318 (13,138) Total Before Other Items 6,591 27,479
34,070 5,768 30,935 36,703 Other Items: Expense Recoveries and
Other(2) 6,762 - 6,762 - - - Marquette Hotel Demolition(3) (1,433)
958 (475) - - - Caruthersville Property Tax Settlement(4) 934 - 934
- - - Total From Continuing Operations $12,854 $28,437 $41,291
$5,768 $30,935 $36,703 Isle of Capri Casinos, Inc. Supplemental
Data - Reconciliation of Operating Income to EBITDA (1) (unaudited,
in thousands) Six Months Ended Six Months Ended October 25, 2009
October 26, 2008 Depreciation Depreciation Operating and Operating
and Income Amortization EBITDA Income Amortization EBITDA
Mississippi Biloxi $(3,247) $7,139 $3,892 $(2,731) $8,976 $6,245
Natchez 4,093 1,034 5,127 4,018 1,689 5,707 Lula 4,055 4,232 8,287
5,252 4,374 9,626 Mississippi Total 4,901 12,405 17,306 6,539
15,039 21,578 Louisiana Lake Charles 6,501 5,335 11,836 9,709 6,445
16,154 Missouri Kansas City 6,524 2,076 8,600 3,858 2,419 6,277
Boonville 10,988 2,313 13,301 9,914 2,429 12,343 Caruthersville
1,149 1,744 2,893 630 2,319 2,949 Missouri Total 18,661 6,133
24,794 14,402 7,167 21,569 Iowa Bettendorf 6,712 4,556 11,268
12,967 4,547 17,514 Davenport 4,892 1,795 6,687 5,322 2,187 7,509
Marquette 1,876 1,293 3,169 3,311 1,376 4,687 Waterloo 5,440 5,918
11,358 6,004 5,718 11,722 Iowa Total 18,920 13,562 32,482 27,604
13,828 41,432 Colorado Black Hawk 9,959 7,634 17,593 8,352 8,975
17,327 Florida Pompano (6,970) 8,647 1,677 (6,371) 8,377 2,006
International Our Lucaya (1,371) 2 (1,369) (1,083) 9 (1,074) Total
Property Before Corporate and Other Items 50,601 53,718 104,319
59,152 59,840 118,992 Corporate and Other (24,474) 2,590 (21,884)
(25,958) 2,661 (23,297) Total Before Other Items 26,127 56,308
82,435 33,194 62,501 95,695 Other Items: Expense Recoveries and
Other (2) 6,762 - 6,762 (6,000) - (6,000) Marquette Hotel
Demolition (3) (1,433) 958 (475) - - - Caruthersville Property Tax
Settlement (4) 934 - 934 - - - Total From Continuing Operations
$32,390 $57,266 $89,656 $27,194 $62,501 $89,695 1. EBITDA is
"earnings before interest and other non-operating income (expense),
income taxes, and depreciation and amortization." EBITDA is
presented after consideration of minority interest. "Property
EBITDA" is EBITDA before Corporate and development expenses and
minority interest. EBITDA is presented solely as a supplemental
disclosure because management believes that it is 1) a widely used
measure of operating performance in the gaming industry, 2) used as
a component of calculating required leverage and minimum interest
coverage ratios under our Senior Credit Facility and 3) a principal
basis of valuing gaming companies. Management uses EBITDA and
Property EBITDA as the primary measure of the Company's operating
properties' performance, and they are important components in
evaluating the performance of management and other operating
personnel in the determination of certain components of employee
compensation. EBITDA should not be construed as an alternative to
operating income as an indicator of the Company's operating
performance, as an alternative to cash flows from operating
activities as a measure of liquidity or as an alternative to any
other measure determined in accordance with U.S. generally accepted
accounting principles (GAAP). The Company has significant uses of
cash flows, including capital expenditures, interest payments,
taxes and debt principal repayments, which are not reflected in
EBITDA. Also, other gaming companies that report EBITDA information
may calculate EBITDA in a different manner than the Company. A
reconciliation of EBITDA and Property EBITDA to operating income is
included in the financial schedules accompanying this release. A
reconciliation of EBITDA to the Company's net income (loss) is
shown below (in thousands). Three Months Ended Six Months Ended
October 25, October 26, October 25, October 26, 2009 2008 2009 2008
EBITDA $41,291 $36,703 $89,656 $89,695 Add/(deduct): Depreciation
and amortization (28,437) (30,935) (57,266) (62,501) Interest
expense: Interest expense, net (17,483) (23,775) (35,461) (47,226)
Income tax (provision) benefit 6,411 7,337 5,644 6,722 Income
(loss) from discontinued operations, net of income taxes (220)
(2,830) (106) (3,816) Net income (loss) $1,562 $(13,500) $2,467
$(17,126) Certain of our debt agreements use "Adjusted EBITDA" as a
financial measure for the calculation of financial debt covenants.
Adjusted EBITDA differs from EBITDA as Adjusted EBITDA includes add
back of items such as gain on early extinguishment of debt,
pre-opening expenses, certain write-offs and valuation expenses,
and stock compensation expense. Reference can be made to the
definition of Adjusted EBITDA in the applicable debt agreements on
file as Exhibits to our filing with the Securities and Exchange
Commission. 2. Expense recoveries and other of $(6.8) million for
the three and six months ended October 25, 2009 reflect income from
the recording of a receivable for reimbursement of Pittsburgh
development costs. Expense recoveries and other of $6.0 million for
the six months ended October 26, 2008 reflect a charge representing
the cancellation of our rights to acquire land including a $1.0
million termination fee, related to the potential development of a
casino project in the Portland, Oregon area. 3. During October,
2010 we decided to demolish the hotel at our Marquette. As a result
of this decision, our operating income for the three and six months
ended October 25, 2009 includes $0.5 million in demolition costs
and $1.0 million in acceleration of remaining depreciation. 4.
Caruthersville includes the favorable impact of $0.9 million from
the settlement of a property tax appeal during both the three and
six months ended October 25, 2009. About Isle of Capri Casinos,
Inc. Isle of Capri Casinos, Inc., founded in 1992, is dedicated to
providing its customers with an exceptional gaming and
entertainment experience at each of its 14 casino properties. The
Company owns and operates casinos domestically in Biloxi, Lula and
Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf,
Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville
and Kansas City, Missouri; two casinos in Black Hawk, Colorado; and
a casino and harness track in Pompano Beach, Florida. More
information is available at the Company's website,
http://www.islecorp.com/. Forward-Looking Statement 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.
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 Form 10-K for the most recently ended fiscal year.
CONTACTS: Isle of Capri Casinos, Inc., Dale Black, Chief Financial
Officer-314.813.9327 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/. Available Topic Expert(s): For
information on the listed expert(s), click appropriate link. James
Perry
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=74947
Virginia McDowell
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=72331
DATASOURCE: Isle of Capri Casinos, Inc. CONTACT: Dale Black, Chief
Financial Officer, +1-314-813-9327, or Jill Haynes, Senior Director
of Corporate Communication, +1-314-813-9368, both of Isle of Capri
Casinos, Inc. Web Site: http://www.islecorp.com/
Copyright