ISLE Isleworth Healthcare Acquisition Corporation

Isle of Capri Casinos, Inc. Announces Full Year and Fourth Quarter Results BILOXI, Miss., June 17 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (NASDAQ:ISLE) today reported financial results for the fiscal year and fourth quarter ended April 25, 2004. For the fiscal year 2004, the company reported net income of $27.7 million and earnings per diluted common share of $0.91. This compares to net income for the same period in fiscal 2003, of $45.6 million, or $1.50 per diluted share. Net revenues for the fiscal year ended April 25, 2004, were $1.11 billion, up from $1.07 billion for the comparable period in the previous year. Adjusted EBITDA (1) in fiscal 2004 was a record $251.7 million, an increase of $9.4 million, or 4.0 percent, over the prior fiscal year Adjusted EBITDA (1) of $242.3 million. For the fourth quarter, the company reported a net loss of $4.3 million, and loss per diluted common share of $0.15, compared to net income of $18.2 million, or $0.60 per diluted common share for the same quarter last year. For the fourth quarter ended April 25, 2004, the company reported fourth quarter net revenues of $292.6 million, compared to $275.9 million for the same period in fiscal 2003, and Adjusted EBITDA (1) of $66.3 million, compared to $73.6 million for the same period in fiscal 2003. Bernard Goldstein, Isle of Capri Casinos, Inc. chairman and chief executive officer, said, "Like most growing businesses, we experienced a year that presented unique challenges; however, we relied on our strong management team and proven operational approach to produce record annual Adjusted EBITDA (1). As we continue on our path of growth, we recognize that some short-term challenges will continue, and we are poised to successfully manage them, while remaining focused on goals of expansion and strengthening our existing properties." During the fiscal year and the fourth quarter ended April 25, 2004, the company incurred a loss on early extinguishment of debt in connection with the refinancing of its $390.0 million 8 3/4 percent Senior Subordinated Notes due 2009 and preopening expenses related to the Isle-Our Lucaya and the Blue Chip- Wolverhampton property openings. The following table reflects comparable net income adjusted for these items: Three Months Ended Fiscal Year Ended April 25, April 27, April 25, April 27, 2004 2003 2004 2003 (In thousands) Net income (loss), as reported $(4,346) $18,238 $27,749 $45,593 Add back: Loss on early extinguishment of debt, net of income taxes 15,140 -- 15,140 -- Valuation charge, net of income taxes -- 1,211 -- 1,211 Preopening, net of income taxes 243 -- 1,432 -- Adjusted net income $11,037 $19,449 $44,321 $46,804 Adjusted earnings per diluted common share $0.35 $0.65 $1.44 $1.54 Adjusted weighted average common shares, assuming dilution 31,150 30,133 30,841 30,452 Fourth Quarter 2004 Developments Fiscal fourth quarter 2004 Adjusted EBITDA (1) was less than expected due to the following factors: * As the company pursued its $94.0 million expansion plan to upgrade and expand its Black Hawk, CO properties, greater than expected construction disruption occurred. This disruption, which resulted in an estimated shortfall of approximately $2.0 million, is expected to continue until the spring of 2005. The company will attempt to mitigate the adverse effects of construction through increased promotional and targeted reactivation efforts and attempting to accelerate the most disruptive elements of the construction process. * The transformation of the Isle-Bossier City to the first full resort property in the Bossier market was completed with the opening of the Palms Spa, Coconut Cay pool and entertainment area during the fourth quarter of fiscal 2004. However, increased competition and slower ramp-up of gaming play than anticipated from the completion of the property's additional 265-room hotel and other amenities resulted in an estimated shortfall of approximately $1.9 million. Based on current results, the company believes the ramp-up to expected levels will continue to be slow due to competitive effects of Native American gaming in Oklahoma and significant capacity additions at Louisiana Downs. * The Isle-Our Lucaya in Freeport, Grand Bahama, which opened in the third quarter of fiscal 2004 as an upscale Isle player incentive, experienced a slower than expected increase of business due to less than anticipated play from high-season occupancy at the resort and the marketing channels' minimal effect due to timing of the opening. These factors resulted in an estimated $1.1 million shortfall. The company is aggressively pursuing its airlift, independent agent and cross-property marketing channels to stimulate additional gaming revenues. * The Blue Chip-Dudley produced less than expected results due to a combination of reduced drop and lower hold percentages than experienced in the third quarter's first six weeks of operation. This yielded results that were less than expected by approximately $0.8 million. During the fourth quarter, Blue Chip-Wolverhampton opened near Birmingham. Isle's strategy with Blue Chip is to pursue strategic locations and licensing, while gaining valuable operating experience in United Kingdom markets. This strategy will position the company for possible expansion upon the expected deregulation of gaming in the United Kingdom. * As new business developments for the company progressed, related expenses exceeded expectations, primarily for the United Kingdom and the St. Louis area. These expenses included legal and design fees of approximately $2.0 million. The company is positioned to pursue its growth strategy in the United Kingdom, Chicago, St. Louis and other venues. Additional Highlights * The Isle issued $500.0 million of 7 percent Senior Subordinated Notes due in 2014 and used the proceeds to retire $390.0 million of its 8 3/4 percent Senior Subordinated Notes due 2009, including prepayment premiums and accrued interest thereon, $37.5 million of its Senior Secured Term Loan B, $8.0 million of its Senior Secured Revolving Loans, fees and expenses and general corporate purposes. * The company's industry-leading members' club, IsleOne(TM) Players Club, continued to grow in terms of acceptance and loyalty with players. Revenue from club members at the same properties, fourth quarter over the prior year's fourth quarter, increased by approximately 6.3 percent. * The IsleOne Marketing System was upgraded with a promotions module, which allows players to swipe their club card for instant promotion entry and access to promotion information. * The Isle has continued to aggressively pursue the strategy of integrating ticket-in/ticket-out technology and paperless rewards on the casino floor, to enhance customer gaming experiences. * The $15.0 million Grand Palais renovation project at the Isle-Lake Charles continues. The Texas and first deck have been completed and construction is ongoing on the second deck. Substantial completion of the second deck is expected by July 4, with all remaining work completed by September. * The Isle's development in Coventry, England is on schedule. The company expects to spend approximately $19.0 million during fiscal year 2005 on utility and other infrastructure. Timothy M. Hinkley, Isle of Capri Casinos, Inc. president and chief operating officer, said, "We recognize that the business from customers who are not members of our players' club (retail) declined in the fourth quarter, and early results in the Louisiana, Mississippi and Colorado markets indicate that this softness has continued into the first quarter of fiscal 2005. Therefore, to combat this challenge, we are implementing proactive strategies including aggressive promotional programs, targeted efforts to drive increased visitation from deeper within our customer base and the reactivation of customers with decreased visitation patterns. Along with these initiatives, we will remain focused on the enhancement of our core property product to better compete with existing and anticipated new competition." Isle of Capri Casinos, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended Fiscal Year Ended April 25, April 27, April 25, April 27, 2004 2003 2004 2003 Revenues: Casino $292,483 $272,085 $1,124,282 $1,051,485 Hotel, pari-mutuel, food, beverage & other 56,417 54,198 210,670 213,973 Gross revenues 348,900 326,283 1,334,952 1,265,458 Less promotional allowances 56,335 50,406 221,809 199,727 Net revenues 292,565 275,877 1,113,143 1,065,731 Operating and other expenses: Properties (2) 219,543 196,501 834,281 801,041 New development (3) 2,514 804 5,853 2,471 Corporate (4) 4,186 4,933 21,298 19,901 Preopening (5) 243 -- 2,293 -- Valuation charge (6) -- 1,923 -- 1,923 Depreciation and amortization 24,368 20,587 90,063 76,626 Total operating and other expenses 250,854 224,748 953,788 901,962 Operating income 41,711 51,129 159,355 163,769 Net interest expense (7) (20,559) (19,981) (82,582) (82,003) Minority interest (8) (2,033) (2,155) (10,072) (9,451) Loss on early extinguishment of debt (9) (26,115) -- (26,115) -- Income (loss) before income taxes (6,996) 28,993 40,586 72,315 Income tax expense (benefit) (10) (2,650) 10,755 12,837 26,722 Net income (loss) $(4,346) $18,238 $27,749 $45,593 Net income (loss) per diluted common share $(0.15) $0.60 $0.91 $1.50 Weighted average diluted common shares 29,648 30,133 30,466 30,452 Selected Consolidated Balance Sheet Accounts April 25, April 27, 2004 2003 (In thousands) Cash and cash equivalents $134,582 $94,626 Property and equipment, net 907,460 841,332 Long-term debt, including current portion 1,088,864 1,027,987 Stockholders' equity 241,406 203,904 Isle of Capri Casinos, Inc. Comparative Financial Highlights by Casino Property (Unaudited) (In thousands) THREE MONTHS ENDED April 25, 2004 Adjusted EBITDA Net Revenues Adjusted Margin % (11) EBITDA (1) (1) MISSISSIPPI BILOXI $21,576 $5,517 25.6% NATCHEZ 9,768 2,848 29.2% VICKSBURG 14,960 5,264 35.2% LULA 23,955 7,265 30.3% MISSISSIPPI TOTAL 70,259 20,894 29.7% LOUISIANA BOSSIER CITY 29,676 5,153 17.4% LAKE CHARLES (2) 44,641 9,812 22.0% LOUISIANA TOTAL 74,317 14,965 20.1% MISSOURI KANSAS CITY 25,607 5,178 20.2% BOONVILLE 17,884 5,551 31.0% MISSOURI TOTAL 43,491 10,729 24.7% IOWA BETTENDORF 25,568 9,127 35.7% DAVENPORT 17,862 6,067 34.0% MARQUETTE 9,995 2,032 20.3% IOWA TOTAL 53,425 17,226 32.2% COLORADO BLACK HAWK (12) 25,655 9,467 36.9% COLORADO CENTRAL STATION (12)(13) 8,657 1,057 12.2% COLORADO GRANDE (12)(13) 1,706 430 25.2% COLORADO TOTAL 36,018 10,954 30.4% INTERNATIONAL BLUE CHIP (5)(14) 1,000 (258) (25.8%) OUR LUCAYA (5) 5,500 (1,627) (29.6%) INTERNATIONAL TOTAL 6,500 (1,885) (29.0%) CORPORATE & OTHER (15) 8,555 (6,561) N/M TOTAL $292,565 $66,322 22.7% THREE MONTHS ENDED April 27, 2003 Adjusted EBITDA Net Revenues Adjusted Margin % (11) EBITDA (1) (1) MISSISSIPPI BILOXI $21,026 $5,402 25.7% NATCHEZ 9,427 2,843 30.2% VICKSBURG 14,420 4,466 31.0% LULA 25,147 7,026 27.9% MISSISSIPPI TOTAL 70,020 19,737 28.2% LOUISIANA BOSSIER CITY 29,574 7,944 26.9% LAKE CHARLES (2) 43,874 12,810 29.2% LOUISIANA TOTAL 73,448 20,754 28.3% MISSOURI KANSAS CITY 24,321 6,008 24.7% BOONVILLE 16,615 4,747 28.6% MISSOURI TOTAL 40,936 10,755 26.3% IOWA BETTENDORF 24,793 9,528 38.4% DAVENPORT 15,527 3,952 25.5% MARQUETTE 9,285 1,785 19.2% IOWA TOTAL 49,605 15,265 30.8% COLORADO BLACK HAWK (12) 25,221 9,959 39.5% COLORADO CENTRAL STATION (12)(13) 910 221 24.3% COLORADO GRANDE (12)(13) 167 60 35.9% COLORADO TOTAL 26,298 10,240 38.9% INTERNATIONAL BLUE CHIP (5)(14) -- -- 0.0% OUR LUCAYA (5) -- -- 0.0% INTERNATIONAL TOTAL -- -- 0.0% CORPORATE & OTHER (15) 15,570 (3,112) N/M TOTAL $275,877 $73,639 26.7% Isle of Capri Casinos, Inc. Comparative Financial Highlights by Casino Property (Unaudited) (In thousands) FISCAL YEAR ENDED April 25, 2004 Adjusted EBITDA Net Revenues Adjusted Margin % (11) EBITDA (1) (1) MISSISSIPPI BILOXI $83,675 $20,004 23.9% NATCHEZ 33,882 8,603 25.4% VICKSBURG 55,420 16,681 30.1% LULA 87,935 24,199 27.5% MISSISSIPPI TOTAL 260,912 69,487 26.6% LOUISIANA BOSSIER CITY 110,495 19,559 17.7% LAKE CHARLES (2) 169,681 38,529 22.7% LOUISIANA TOTAL 280,176 58,088 20.7% MISSOURI KANSAS CITY 93,228 17,791 19.1% BOONVILLE 68,217 19,001 27.9% MISSOURI TOTAL 161,445 36,792 22.8% IOWA BETTENDORF 100,363 33,337 33.2% DAVENPORT 68,072 18,965 27.9% MARQUETTE 42,051 10,596 25.2% IOWA TOTAL 210,486 62,898 29.9% COLORADO BLACK HAWK (12) 106,356 39,886 37.5% COLORADO CENTRAL STATION (12)(13) 42,560 8,493 20.0% COLORADO GRANDE (12)(13) 7,701 1,918 24.9% COLORADO TOTAL 156,617 50,297 32.1% INTERNATIONAL BLUE CHIP (5)(14) 1,861 27 1.5% OUR LUCAYA (5) 7,540 (2,149) (28.5%) INTERNATIONAL TOTAL 9,401 (2,122) (22.6%) CORPORATE & OTHER (15) 34,106 (23,729) N/M TOTAL $1,113,143 $251,711 22.6% April 27, 2003 Adjusted EBITDA Net Revenues Adjusted Margin % (11) EBITDA (1) (1) MISSISSIPPI BILOXI $81,181 $19,605 24.1% NATCHEZ 33,779 8,872 26.3% VICKSBURG 55,673 16,045 28.8% LULA 92,568 26,117 28.2% MISSISSIPPI TOTAL 263,201 70,639 26.8% LOUISIANA BOSSIER CITY 116,808 26,567 22.7% LAKE CHARLES (2) 169,495 44,004 26.0% LOUISIANA TOTAL 286,303 70,571 24.6% MISSOURI KANSAS CITY 91,971 18,522 20.1% BOONVILLE 62,401 15,349 24.6% MISSOURI TOTAL 154,372 33,871 21.9% IOWA BETTENDORF 95,334 30,979 32.5% DAVENPORT 59,446 12,385 20.8% MARQUETTE 38,178 8,175 21.4% IOWA TOTAL 192,958 51,539 26.7% COLORADO BLACK HAWK (12) 103,801 38,575 37.2% COLORADO CENTRAL STATION (12)(13) 910 221 24.3% COLORADO GRANDE (12)(13) 167 60 35.9% COLORADO TOTAL 104,878 38,856 37.0% INTERNATIONAL BLUE CHIP (5)(14) -- -- 0.0% OUR LUCAYA (5) -- -- 0.0% INTERNATIONAL TOTAL -- -- 0.0% CORPORATE & OTHER (15) 64,019 (23,158) N/M TOTAL $1,065,731 $242,318 22.7% Isle of Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Three Months Ended April 25, 2004 Operating Operating Depreciation & Adjusted Income Income Amortization Preopening EBITDA Margin % (Loss) (5) (1) (1) MISSISSIPPI BILOXI $3,383 $2,134 $-- $5,517 15.7% NATCHEZ 2,073 775 -- 2,848 21.2% VICKSBURG 4,057 1,207 -- 5,264 27.1% LULA 4,868 2,397 -- 7,265 20.3% MISSISSIPPI TOTAL 14,381 6,513 -- 20,894 20.5% LOUISIANA BOSSIER CITY 2,212 2,941 -- 5,153 7.5% LAKE CHARLES 6,592 3,220 -- 9,812 14.8% LOUISIANA TOTAL 8,804 6,161 -- 14,965 11.8% MISSOURI KANSAS CITY 3,174 2,004 -- 5,178 12.4% BOONVILLE 3,929 1,622 -- 5,551 22.0% MISSOURI TOTAL 7,103 3,626 -- 10,729 16.3% IOWA BETTENDORF 7,353 1,774 -- 9,127 28.8% DAVENPORT 3,852 2,215 -- 6,067 21.6% MARQUETTE 1,228 804 -- 2,032 12.3% IOWA TOTAL 12,433 4,793 -- 17,226 23.3% COLORADO BLACK HAWK (12) 7,783 1,684 -- 9,467 30.3% COLORADO CENTRAL STATION (12)(13) 515 542 -- 1,057 5.9% COLORADO GRANDE (12)(13) 353 77 -- 430 20.7% COLORADO TOTAL 8,651 2,303 -- 10,954 24.0% INTERNATIONAL BLUE CHIP (5)(14) (530) 28 244 (258) (53.0%) OUR LUCAYA (5) (1,966) 340 (1) (1,627) (35.7%) INTERNATIONAL TOTAL (2,496) 368 243 (1,885) (38.4%) CORPORATE & OTHER (15) (7,165) 604 -- (6,561) N/M TOTAL $41,711 $24,368 $243 $66,322 14.3% Three Months Ended April 27, 2003 Operating Operating Depreciation & Valuation Adjusted Income Income Amortization Change EBITDA Margin % (Loss) (6) (1) (1) MISSISSIPPI BILOXI $3,363 $2,039 $-- $5,402 16.0% NATCHEZ 2,185 658 -- 2,843 23.2% VICKSBURG 3,223 1,243 -- 4,466 22.4% LULA 4,597 2,429 -- 7,026 18.3% MISSISSIPPI TOTAL 13,368 6,369 -- 19,737 19.1% LOUISIANA BOSSIER CITY 6,032 1,912 -- 7,944 20.4% LAKE CHARLES (2) 10,166 2,644 -- 12,810 23.2% LOUISIANA TOTAL 16,198 4,556 -- 20,754 22.1% MISSOURI KANSAS CITY 4,538 1,470 -- 6,008 18.7% BOONVILLE 3,291 1,456 -- 4,747 19.8% MISSOURI TOTAL 7,829 2,926 -- 10,755 19.1% IOWA BETTENDORF 7,697 1,831 -- 9,528 31.0% DAVENPORT 2,277 1,675 -- 3,952 14.7% MARQUETTE 1,006 779 -- 1,785 10.8% IOWA TOTAL 10,980 4,285 -- 15,265 22.1% COLORADO BLACK HAWK (12) 8,054 1,905 -- 9,959 31.9% COLORADO CENTRAL STATION (12)(13) 221 -- -- 221 24.3% COLORADO GRANDE (12)(13) 60 -- -- 60 35.9% COLORADO TOTAL 8,335 1,905 -- 10,240 23.1% INTERNATIONAL BLUE CHIP (5)(14) -- -- -- -- 0.0% OUR LUCAYA (5) -- -- -- -- 0.0% INTERNATIONAL TOTAL -- -- -- -- 0.0% CORPORATE & OTHER (15) (5,581) 546 1,923 (3,112) N/M TOTAL $51,129 $20,587 $1,923 $73,639 18.5% Isle of Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Fiscal Year Ended April 25, 2004 Operating Operating Depreciation & Adjusted Income Income Amortization Preopening EBITDA Margin % (Loss) (5) (1) (1) MISSISSIPPI BILOXI $12,075 $7,929 $-- $20,004 14.4% NATCHEZ 5,931 2,672 -- 8,603 17.5% VICKSBURG 11,747 4,934 -- 16,681 21.2% LULA 14,322 9,877 -- 24,199 16.3% MISSISSIPPI TOTAL 44,075 25,412 -- 69,487 16.9% LOUISIANA BOSSIER CITY 10,617 8,942 19,559 9.6% LAKE CHARLES 27,076 11,453 38,529 16.0% LOUISIANA TOTAL 37,693 20,395 -- 58,088 13.5% MISSOURI KANSAS CITY 10,971 6,820 -- 17,791 11.8% BOONVILLE 12,791 6,210 -- 19,001 18.8% MISSOURI TOTAL 23,762 13,030 -- 36,792 14.7% IOWA BETTENDORF 25,954 7,383 -- 33,337 25.9% DAVENPORT 9,910 9,055 -- 18,965 14.6% MARQUETTE 7,436 3,160 -- 10,596 17.7% IOWA TOTAL 43,300 19,598 -- 62,898 20.6% COLORADO BLACK HAWK (12) 33,109 6,777 -- 39,886 31.1% COLORADO CENTRAL STATION(12)(13) 6,845 1,648 -- 8,493 16.1% COLORADO GRANDE(12)(13) 1,627 291 -- 1,918 21.1% COLORADO TOTAL 41,581 8,716 -- 50,297 26.5% INTERNATIONAL BLUE CHIP (5)(14) (259) 42 244 27 (13.9%) OUR LUCAYA (5) (4,694) 496 2,049 (2,149) (62.3%) INTERNATIONAL TOTAL (4,953) 538 2,293 (2,122) (52.7%) CORPORATE & OTHER(15) (26,103) 2,374 -- (23,729) N/M TOTAL $159,355 $90,063 $2,293 $251,711 14.3% Fiscal Year Ended April 27, 2003 Operating Operating Depreciation & Valuation Adjusted Income Income Amortization Change EBITDA Margin % (Loss) (6) (1) (1) MISSISSIPPI BILOXI $12,730 $6,875 $-- $19,605 15.7% NATCHEZ 6,706 2,166 -- 8,872 19.9% VICKSBURG 11,293 4,752 -- 16,045 20.3% LULA 16,731 9,386 -- 26,117 18.1% MISSISSIPPI TOTAL 47,460 23,179 -- 70,639 18.0% LOUISIANA BOSSIER CITY 18,634 7,933 -- 26,567 16.0% LAKE CHARLES (2) 33,407 10,597 -- 44,004 19.7% LOUISIANA TOTAL 52,041 18,530 -- 70,571 18.2% MISSOURI KANSAS CITY 13,276 5,246 -- 18,522 14.4% BOONVILLE 9,705 5,644 -- 15,349 15.6% MISSOURI TOTAL 22,981 10,890 -- 33,871 14.9% IOWA BETTENDORF 24,078 6,901 -- 30,979 25.3% DAVENPORT 5,977 6,408 -- 12,385 10.1% MARQUETTE 5,147 3,028 -- 8,175 13.5% IOWA TOTAL 35,202 16,337 -- 51,539 18.2% COLORADO BLACK HAWK (12) 32,720 5,855 -- 38,575 31.5% COLORADO CENTRAL STATION (12)(13) 221 -- -- 221 24.3% COLORADO GRANDE (12)(13) 60 -- -- 60 35.9% COLORADO TOTAL 33,001 5,855 -- 38,856 37.0% INTERNATIONAL BLUE CHIP (5)(14) -- -- -- -- 0.0% OUR LUCAYA (5) -- -- -- -- 0.0% INTERNATIONAL TOTAL -- -- -- -- 0.0% CORPORATE & OTHER (15) (26,916) 1,835 1,923 (23,158) N/M TOTAL $163,769 $76,626 $1,923 $242,318 15.4% 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 accounting principles generally accepted in the United States. 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. 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. 2. For the fiscal year ended April 27, 2003, the amount includes $2.6 million for the Isle-Lake Charles related to insurance proceeds for a litigation settlement. 3. New development expenses include incremental costs incurred pursuing new opportunities within the industry. Such costs include, but are not limited to, legal and other professional fees, application fees, as well as personnel and travel costs. 4. Corporate expenses for the fiscal year ended April 25, 2004, include a $2.0 million charge related to the accrual of additional loss contingencies for litigation matters as compared to a $1.8 million charge in the prior year's fiscal year ended April 27, 2003. 5. Preopening relates to expenses incurred opening the casino at Our Lucaya Beach and Golf Resort, Grand Bahama Island, which opened on December 15, 2003, and opening a new pub-style casino in Wolverhampton, England, on April 22, 2004. 6. Valuation charge of $1.9 million for the quarter and fiscal year ended April 27, 2003, includes the fully reserved investment in Ardent Gaming, L.L.C., an unrelated third-party. The cashless gaming system being developed under the joint venture was substantially past due, and management believed it was probable that it would not recover its investment. 7. Consolidated net interest expense is comprised of the following components: Three Months Ended Fiscal Year Ended April 25, April 27, April 25, April 27, 2004 2003 2004 2003 (In thousands) Interest expense $21,057 $20,442 $84,988 $82,734 Interest income (181) (362) (874) (562) Capitalized interest (317) (99) (1,532) (169) Net interest expense $20,559 $19,981 $82,582 $82,003 Included in the consolidated net interest expense are the net interest expenses of the Isle-Black Hawk, the Colorado Central Station-Black Hawk and the Colorado Grande-Cripple Creek that is comprised of the following: Three Months Ended Fiscal Year Ended April 25, April 27, April 25, April 27, 2004 2003 2004 2003 (In thousands) Interest expense $2,426 $1,417 $10,979 $5,629 Interest income (30) (7) (128) (14) Capitalized interest (207) -- (207) -- Net interest expense $2,189 $1,410 $10,644 $5,615 8. Minority interest represents unrelated third parties' portion of Blue Chip Casinos, PLC's net income, the Isle-Black Hawk's income before income taxes and the Colorado Central Station-Black Hawk's and the Colorado Grande- Cripple Creek's net income. 9. Loss on early extinguishment of debt of $26.1 million for the quarter and fiscal year ended April 25, 2004, relate to the refinancing of its $390.0 million 8 3/4 percent Senior Subordinated Notes on March 3, 2004. These charges include early payment premiums, as well as the write-off of debt acquisition costs. 10. Our effective tax rate for the quarter ended April 25, 2004, was 38.9 percent, compared to 37.2 percent for the quarter ended April 27, 2003. Our effective tax rate was 31.7 percent and 37.0 percent for the fiscal year ended April 25, 2004, and April 27, 2003, respectively. The decline in the rate, fiscal year over fiscal year, is attributable to three items: the Isle-Our Lucaya's loss was not deductible for United States income tax purposes, estimates were changed during the second quarter of fiscal 2004 related to an Internal Revenue Service audit, and estimates were changed relating to the state income tax provision. 11. Net revenues are presented net of complimentaries, slot points expense and cash coupon redemptions. 12. As management fees are eliminated in consolidation, the Adjusted EBITDA for the Isle-Black Hawk, the Colorado Central Station-Black Hawk and the Colorado Grande-Cripple Creek does not include management fees. The following table shows management fees and Adjusted EBITDA inclusive of management fees for the three months and fiscal years ended April 25, 2004, and April 27, 2003: Three Months Ended Fiscal Year Ended April 25, April 27, April 25, April 27, 2004 2003 2004 2003 (In thousands) Management Fees Isle - Black Hawk $1,245 $1,642 $4,889 $5,146 Colorado Central Station 339 43 1,902 43 Colorado Grande 99 8 382 8 Adjusted EBITDA with Management Fees Isle - Black Hawk 8,222 8,317 34,997 33,429 Colorado Central Station 718 178 6,591 178 Colorado Grande 331 52 1,536 52 13. The Isle of Capri Casinos, Inc. acquired these properties on April 22, 2003. 14. The 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 and Wolverhampton, England. 15. For the quarter ended April 25, 2004, corporate and other includes the operating results of Pompano Park. For the quarter ended April 27, 2003, corporate and other includes the operating results of Pompano Park and the Lady Luck-Las Vegas. For the fiscal year ended April 25, 2004, corporate and other includes the operating results of Pompano Park and the Lady Luck-Las Vegas. For the fiscal year ended April 27, 2003, corporate and other includes the operating results of Pompano Park, the Lady Luck-Las Vegas and the Isle- Tunica. On October 30, 2002, the Isle of Capri completed the sale of the Lady Luck-Las Vegas and continued to operate the casino until September 3, 2003, the date the purchaser's designated gaming operator received regulatory approval. The Isle-Tunica ceased casino operations on September 3, 2002, and the assets were sold to Boyd Casino Strip, LLC on October 7, 2002. Isle of Capri Casinos, Inc., a leading developer and owner of gaming and entertainment facilities, operates 18 casinos in 16 locations. The company owns and operates riverboat and dockside casinos in Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (2 riverboats), Louisiana; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The company also owns a 57 percent interest in and operates land-based casinos in Black Hawk (two casinos) and Cripple Creek, Colorado. Isle of Capri's international gaming interests include a casino that it operates in Freeport, Grand Bahamas, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. The company also owns and operates Pompano Park Harness Racing Track in Pompano Beach, Florida. As a publicly held company, we regularly file 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. Our Internet website is http://www.islecorp.com/. We make our filings available free of charge on our Internet website as soon as reasonably practical after we electronically file or furnish such reports to the SEC. You may read and copy the reports, statements and other information we file 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. Our SEC filings are also available to the public on the SEC's Internet site (http://www.sec.gov/). Contact: Allan B. Solomon, Executive Vice President, 561-995-6660 Rex Yeisley, Chief Financial Officer, 228-396-7052 Lori Hutzler, Director of Corporate Communications, 228-396-7031 This press release contains 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, 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 27, 2003 and 10-Q for the fiscal quarter ended January 25, 2004. http://www.newscom.com/cgi-bin/prnh/20020502/ISLELOGO http://photoarchive.ap.org/ DATASOURCE: Isle of Capri Casinos, Inc. CONTACT: Allan B. Solomon, Executive Vice President, +1-561-995-6660, or Rex Yeisley, Chief Financial Officer, +1-228-396-7052, or Lori Hutzler, Director of Corporate Communications, +1-228-396-7031, all of Isle of Capri Casinos Web site: http://www.theislecorp.com/

Copyright