Isle of Capri Casinos 8K 8-K 042504 | SEC 17 Jun 04

Exhibit 99.1

FOR IMMEDIATE RELEASE

ISLE OF CAPRI CASINOS, INC. ANNOUNCES FULL YEAR AND FOURTH QUARTER RESULTS

BILOXI, MISS. (June 17, 2004)—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 EBITDA¹in fiscal 2004 was a record $251.7 million, an increase of $9.4 million, or 4.0 percent, over the prior fiscal year Adjusted EBITDA¹ 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 EBITDA¹ 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 EBITDA¹. 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 8¾ 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, 2004		April 27, 2003		April 25, 2004		April 27, 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 EBITDA¹ 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 areaduring 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 theramp 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 8¾ 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™ 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^th, 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, 2004		April 27, 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
(In thousands)


	THREE MONTHS ENDED

	April 25,							April 27,
	2004							2003

	*Net Revenues (11)*		*Adjusted EBITDA (1)*		*Adjusted EBITDA Margin % (1)*			*Net Revenues (11)*		*Adjusted EBITDA (1)*			*Adjusted EBITDA Margin % (1)*


MISSISSIPPI
BILOXI	$	21,576	$	5,517		25.6	%	$	21,026	$	5,402			25.7	%
NATCHEZ		9,768		2,848		29.2	%		9,427		2,843			30.2	%
VICKSBURG		14,960		5,264		35.2	%		14,420		4,466			31.0	%
LULA		23,955		7,265		30.3	%		25,147		7,026			27.9	%
MISSISSIPPI TOTAL		70,259		20,894		29.7	%		70,020		19,737			28.2	%

LOUISIANA
BOSSIER CITY		29,676		5,153		17.4	%		29,574		7,944			26.9	%
LAKE CHARLES (2)		44,641		9,812		22.0	%		43,874		12,810			29.2	%
LOUISIANA TOTAL		74,317		14,965		20.1	%		73,448		20,754			28.3	%

MISSOURI
KANSAS CITY		25,607		5,178		20.2	%		24,321		6,008			24.7	%
BOONVILLE		17,884		5,551		31.0	%		16,615		4,747			28.6	%
MISSOURI TOTAL		43,491		10,729		24.7	%		40,936		10,755			26.3	%

IOWA
BETTENDORF		25,568		9,127		35.7	%		24,793		9,528			38.4	%
DAVENPORT		17,862		6,067		34.0	%		15,527		3,952			25.5	%
MARQUETTE		9,995		2,032		20.3	%		9,285		1,785			19.2	%
IOWA TOTAL		53,425		17,226		32.2	%		49,605		15,265			30.8	%

COLORADO
BLACK HAWK (12)		25,655		9,467		36.9	%		25,221		9,959			39.5	%
COLORADO CENTRAL
STATION (12)(13)		8,657		1,057		12.2	%		910		221			24.3	%
COLORADO
GRANDE (12)(13)		1,706		430		25.2	%		167		60			35.9	%
COLORADO TOTAL		36,018		10,954		30.4	%		26,298		10,240			38.9	%

INTERNATIONAL
BLUE CHIP (5)(14)		1,000		(258)		(25.8	%)		-		-			0.0	%
OUR LUCAYA (5)		5,500		(1,627)		(29.6	%)		-		-			0.0	%
INTERNATIONAL TOTAL		6,500		(1,885)		(29.0	%)		-		-			0.0	%

CORPORATE & OTHER (15)		8,555		(6,561)		N/M			15,570		(3,112	)		N/M


TOTAL	$	292,565	$	66,322		22.7	%	$	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, April 27,
	2004 2003

	*Net Revenues (11)*		*Adjusted EBITDA (1)*		*Adjusted EBITDA Margin % (1)*			*Net Revenues (11)*		*Adjusted EBITDA (1)*		*Adjusted EBITDA Margin % (1)*


MISSISSIPPI
BILOXI	$	83,675	$	20,004		23.9	%	$	81,181	$	19,605		24.1	%
NATCHEZ		33,882		8,603		25.4	%		33,779		8,872		26.3	%
VICKSBURG		55,420		16,681		30.1	%		55,673		16,045		28.8	%
LULA		87,935		24,199		27.5	%		92,568		26,117		28.2	%
MISSISSIPPI TOTAL		260,912		69,487		26.6	%		263,201		70,639		26.8	%

LOUISIANA
BOSSIER CITY		110,495		19,559		17.7	%		116,808		26,567		22.7	%
LAKE CHARLES (2)		169,681		38,529		22.7	%		169,495		44,004		26.0	%
LOUISIANA TOTAL		280,176		58,088		20.7	%		286,303		70,571		24.6	%

MISSOURI
KANSAS CITY		93,228		17,791		19.1	%		91,971		18,522		20.1	%
BOONVILLE		68,217		19,001		27.9	%		62,401		15,349		24.6	%
MISSOURI TOTAL		161,445		36,792		22.8	%		154,372		33,871		21.9	%

IOWA
BETTENDORF		100,363		33,337		33.2	%		95,334		30,979		32.5	%
DAVENPORT		68,072		18,965		27.9	%		59,446		12,385		20.8	%
MARQUETTE		42,051		10,596		25.2	%		38,178		8,175		21.4	%
IOWA TOTAL		210,486		62,898		29.9	%		192,958		51,539		26.7	%

COLORADO
BLACK HAWK (12)		106,356		39,886		37.5	%		103,801		38,575		37.2	%
COLORADO CENTRAL
STATION (12)(13)		42,560		8,493		20.0	%		910		221		24.3	%
COLORADO
GRANDE (12)(13)		7,701		1,918		24.9	%		167		60		35.9	%
COLORADO TOTAL		156,617		50,297		32.1	%		104,878		38,856		37.0	%

INTERNATIONAL
BLUE CHIP (5)(14)		1,861		27		1.5	%		-		-		0.0	%
OUR LUCAYA (5)		7,540		(2,149)		(28.5	%)		-		-		0.0	%
INTERNATIONAL TOTAL		9,401		(2,122)		(22.6	%)		-		-		0.0	%

CORPORATE & OTHER (15)		34,106		(23,729)		N/M			64,019		(23,158)		N/M


TOTAL	$	1,113,143	$	251,711		22.6	%	$	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 Income (Loss)*		*Depreciation & Amortization*		*Preopening (5)*		*Adjusted EBITDA (1)*		*Operating Income Margin % (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 Income (Loss)*		*Depreciation & Amortization*		*Valuation Charge (6)*		*Adjusted EBITDA (1)*		*Operating Income Margin % (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 Income (Loss)*			*Depreciation & Amortization*		*Preopening (5)*		*Adjusted EBITDA (1)*		*Operating Income Margin % (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 Income (Loss)*		*Depreciation & Amortization*		*Valuation Charge (6)*		*Adjusted EBITDA (1)*		*Operating Income Margin % (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, 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 8¾ 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, 2004		April 27, 2003		April 25, 2004		April 27, 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 Casi no 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 and10-Q for the fiscal quarter ended January 25, 2004.

Isle of Capri Casinos Inactive 8-K8-K 042504