Isle Of Capri Casinos, Inc. Lowers Second Quarter Earnings Estimate
October 27 2004 - 9:03PM
PR Newswire (US)
Isle Of Capri Casinos, Inc. Lowers Second Quarter Earnings Estimate
BILOXI, Miss., Oct. 27 /PRNewswire-FirstCall/ -- Isle of Capri
Casinos, Inc. (NASDAQ:ISLE) today lowered its estimate of earnings
for the second quarter ended October 24, 2004, to a range of a
$0.01 loss per share to $0.03 in earnings per diluted share. The
company's previously disclosed estimate of second quarter earnings
was $0.20 to $0.30 per diluted share. The company's second quarter
adjusted EBITDA(1) is expected to be in the range of $46.5 million
to $48.5 million, compared to the company's previous estimate of
$55.0 million to $60.0 million. The company attributes the change
in estimate to the greater-than-expected disruptive effects of
expansion and development activities at its Biloxi, Miss. and Black
Hawk, Co. properties; the effects of hurricanes Frances and Ivan,
before expected future insurance recoveries, on its Freeport,
Bahamas and Biloxi, Miss. properties; lower-than- expected revenue
at its Iowa and Lula, Miss. properties; and greater-than- projected
development spending in Florida and Iowa. Additionally, the company
will record a one-time $2.9 million depreciation adjustment related
to a misclassification of certain land improvements resulting from
the conversion of the company's manual system to a computerized
asset tracking system in fiscal 2002. The after tax effect of this
adjustment is approximately $1.8 million or $0.06. The company will
release its second quarter results and will host an investor
conference call in mid-November, details to be announced at a later
date. Isle of Capri Casinos, Inc., a leading developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations. The company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Mississippi;
Bossier City and Lake Charles (two 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,
Wolverhampton and Walsall, England. The company also owns and
operates Pompano Park Harness Racing Track in Pompano Beach,
Florida. 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 fiscal year ended April 25,
2004 and Form 10-Q for the fiscal quarter ended since that date.
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 (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. 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.
Three Months Ended October 24, 2004 Range of Estimate (In
thousands) Adjusted EBITDA(1) $46,500 $47,500 $48,500 (Add)/deduct:
Preopening expense (Blue Chip) 250 250 250 Depreciation Adjustment
2,905 2,905 2,905 Depreciation and amortization 23,800 23,800
23,800 Operating income 19,545 20,545 21,545 Interest expense, net
18,700 18,700 18,700 Minority interest 1,335 1,400 1,450 (Loss)
income before income taxes (490) 445 1,395 Income tax (benefit)
expense (191) 174 544 Net(loss)income $(299) $271 $851
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, Inc.
Web site: http://www.theislecorp.com/
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