Isle of Capri Casinos 8-K Fiscal 2010 Fourth Quarter and Year End Results

Exhibit 99.1

ISLE OF CAPRI CASINOS, INC. ANNOUNCES

FISCAL 2010 FOURTH QUARTER AND YEAR END RESULTS

SAINT LOUIS, MO — June 2, 2010 — Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the “Company”) today reported financial results for the fourth quarter and fiscal year ended April 25, 2010, and other Company-related news.

In making the announcement, the Company pointed to a series of accomplishments during the quarter and past fiscal year.  Specifically, the Company:

·Nears completion of the acquisition of Rainbow Casino in Vicksburg, Mississippi;

·Reduced property-level operating expenses by $12 million in fiscal year 2010, totaling over $32 million in cost reductions over the past two fiscal years;

·Increased See. Say. Smile. customer satisfaction scores to 90%; an increase of 300 bps from 60% two years ago; and

·Amended the leverage and interest coverage covenants of its senior credit facility.

James B. Perry, the Company’s chairman and chief executive officer, said, “Our results show clearly that we have remained committed to our goal of fiscal responsibility through this difficult economic cycle.  Preliminary data suggests that consumer spending may be beginning to slowly rebound and we are pleased that we have been able to re-engineer the costs associated with our business while consistently improving the guest experience across our portfolio.  In addition to these efforts, we have continued to make every effort to improve our balance sheet, and are actively exploring options for deploying capital to maximize value for our shareholders, including possible acquisitions, greenfield developments and management opportunities in a variety of jurisdictions.  As we look forward to completing the Rainbow acquisition as a component of our overall strategy, we will continue to fine-tune our operating model and evaluate potential opportunities with the clear goal of increased profitability and free cash flow.”

Consolidated Results

The following table outlines the Company’s financial results (dollars in millions, except per share data, unaudited):

	Quarter Ended				Fiscal Year Ended
	April 25,		April 26,		April 25,			April 26,
	2010		2009		2010			2009
Net revenues, excluding insurance recoveries	$	268.8	$	281.7	$	999.8		$	1,046.2
Net revenues	268.8		284.6		999.8			1,108.0
EBITDA(1)	53.1		34.4		173.6			257.0
Income (loss) from continuing operations	6.4		25.6		(1.5		)	61.2
Net income (loss)	4.9		14.6		(3.3		)	43.6
Income (loss) per share from continuing operations	0.20		0.80		(0.05		)	1.95
Net income (loss) per share	0.15		0.46		(0.10		)	1.39

During the fourth quarter of fiscal 2010, net revenues decreased 5.6% to $268.8 million, when compared to prior year, while consolidated EBITDA increased 54.4% to $53.1 from $34.4 million.  This increase in EBITDA was caused primarily by valuation charges taken in FY 2009 offset by decreases in revenue.

For the fiscal year ended April 25, 2010, net revenues decreased 9.8% to $999.8 million, when compared to prior year, and consolidated EBITDA decreased 32.5% to $173.6 million.  The decrease in EBITDA is primarily attributable to the decrease in net revenues, insurance recoveries received in FY 2009 offset by the 2009 valuation charges as discussed above.

The following table outlines significant items impacting EBITDA and the Income (loss) from continuing operations during the fiscal quarters and years ended April 25, 2010 and April 26, 2009:

	Quarter Ended						Fiscal Year Ended
	April 25,			April 26,			April 25,			April 26,
	2010			2009			2010			2009
Items impacting EBITDA and Income (loss) from continuing operations:
Insurance recoveries, net	$	—		$	3.0		$	—		$	94.1
Valuation charges	—			(30.1		)	—			(30.1		)
Expense recoveries and other	—						6.8			(6.0		)
Debt refinancing costs	(1.8		)	—			(1.8		)	—
Other	—			2.3			0.4			—
Additional item impacting Income (loss) from continuing operations:
Gain on early extinguishment of debt	—			57.7			—			57.7

Before considering the impact of the items detailed in the table above during the fourth quarter of fiscal 2010:

·Net revenues decreased 4.6% to $268.8 million

·Property-level EBITDA margins were 24.5% compared to 24.1% in the fourth quarter of fiscal year 2009

·Consolidated EBITDA decreased 7.2% to $54.9 million, primarily as a result of increased corporate development costs of approximately $0.9 million and decreased gaming revenues

Before considering the impact of the items detailed in the table above, annual results were as follows:

·Net revenues decreased 4.4% to $999.8 million

·Property-level EBITDA margins were 21.2% compared to 22.9% in fiscal year 2009

·Consolidated EBITDA decreased 15.5% to $168.2 million, primarily as a result of decreased gaming revenues

Discussing the operating results, Virginia McDowell, the Company’s president and chief operating officer, remarked, “We are continuing to build a stronger business model based on fundamental operating principles and fiscal responsibility.  While we believe the economic condition of our customers improved as the fiscal year progressed, we believe the effect of an economic recovery on the gaming business will be slow and steady. As a result, we continue to trim costs where possible, improve our marketing efforts and elevate the guest experience to improve the competitive positioning of each of our properties.  Over the past two years we have made prudent changes to our cost structure, including the elimination of over $30 million in property-level operating costs relating to our gaming floors, guest amenities and hotels, other facilities and marketing and administrative costs.

“The results of our properties during the quarter varied by market, but we are generally encouraged by the change in direction we have experienced compared to prior year. In Mississippi, Missouri and Iowa, we are finding market stability and a continued positive response to the new products we have introduced, including our two Lady Luck-branded casinos. In Pompano and Lake Charles, there are clear signs of improvement based upon new marketing programs and cost containment.  In Pompano, we believe, as a result of the gaming tax rollback set to take effect on July 1, we will be able to target customers we have not been able to effectively market to in the past due to the tax rate.

“Additionally, we believe there will continue to be opportunities to expand our gaming management and development efforts.  In addition to the Rainbow Casino transaction, we are fully engaged in a competitive bid process for the final resort license in Pennsylvania, have indicated a preliminary interest in the 13th Missouri license and are continuing to evaluate opportunities in a variety of jurisdictions that, we believe, could positively impact our future free cash flows.”

Dale R. Black, the Company’s senior vice president and chief financial officer, commented, “We believe we are responsibly managing through the economic downturn and are encouraged by the fact that the country has experienced six straight months of increases in consumer spending, particularly in the retail and manufacturing sectors which, we believe, bodes well for our economic outlook over time.

“With the added flexibility of the amendment to our credit facility through 2012 and the free cash flow expected to be generated through the Rainbow transaction, we believe that our business will begin to show more clear signs of economic improvement late in this calendar year and into 2011.”

Corporate and Other

Corporate and other increased $4.3 million to $13.0 million during the fourth quarter of fiscal 2010 compared to prior year, primarily due to credit amendment costs of $1.8 million, development costs of $0.9 million and increased non-cash stock compensation expense of $1.7 million.

For the fiscal year ended April 25, 2010, corporate and other increased $4.5 million, primarily due to credit amendment costs of $1.8 million, development costs of $1.5 million and increased non-cash stock compensation expense of $1.1 million.

Interest expense for the quarter was $21.7 million, an increase of $2.2 million compared to the prior fiscal year, primarily due to the increase of interest rates on the credit facility as a result of the recent amendment.  For the fiscal year ended April 25, 2010, interest expense decreased $16.6 million, primarily as a result of lower debt levels during the year, offset by the increased costs associated with the recent amendment.

As a result of the amendment to the credit facility, we incurred a charge of approximately $2.1 million related to fees and the write-off of certain unamortized deferred financing costs, of which approximately $0.3 million was non-cash and included in interest expense.

Capital Structure and FY 2011 Guidance

As of April 25, 2010, the Company had:

·$68.1 million in cash and cash equivalents

·$1,200.9 million in total debt

·Over $330 million in net line of credit availability

FY 2010 capital expenditures were $27.7 million

The Company provided guidance for the following specific non-operating items for fiscal year 2011 assuming the Rainbow acquisition closes by June 30, 2010:

·Depreciation and amortization expense is expected to be approximately $85 million to $87 million;

·The Company expects cash income taxes pertaining to FY 2011 operations to be less than $5 million which primarily represents state income taxes.

·Interest expense is expected to be approximately $89 million to $92 million, net of capitalized interest.

·Total Corporate expenses for FY 2011 are expected to be approximately $46 million including approximately $8.5 million in non-cash stock compensation expense.

·Maintenance capital expenditures for FY 2011 are expected to be approximately $45 million to $48 million, including conversion of approximately 2,500 slot machines to the Bally’s slot system technology.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Wednesday, June 2, 2010 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, www.islecorp.com, or, for domestic callers, by dialing (877) 917-8929.  International callers can access the conference call by dialing (630) 395-0312.  The conference call access code is 9056848.

This conference call will be recorded and available for review starting at noon central on Wednesday, June 2, 2010 on the Company’s website, www.islecorp.com.  The audio of the conference call will also be available by telephone from that time until midnight central on Wednesday, June 9, 2010, by dialing (866) 498-5468 for domestic callers or (203) 369-1798 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 amounts)

	(unaudited)
	Three Months Ended						Twelve Months Ended
	April 25,			April 26,			April 25,			April 26,
	2010			2009			2010			2009
Revenues:
Casino	$	270,429		$	285,764		$	1,013,386		$	1,055,694
Rooms	10,520			10,684			43,007			46,380
Pari-mutuel, food, beverage and other	36,173			37,484			134,994			138,632
Hurricane insurance recoveries	—			2,932			—			62,932
Gross revenues	317,122			336,864			1,191,387			1,303,638
Less promotional allowances	(48,326		)	(52,255		)	(191,551		)	(195,603		)
Net revenues	268,796			284,609			999,836			1,108,035
Operating expenses:
Casino	38,487			39,291			153,838			151,610
Gaming taxes	71,185			73,108			262,241			269,928
Rooms	2,727			3,003			10,845			12,306
Pari-mutuel, food, beverage and other	12,121			14,451			44,760			51,462
Marine and facilities	15,359			16,166			61,507			64,368
Marketing and administrative	62,516			65,437			253,097			256,210
Corporate and development	13,339			8,757			46,750			41,331
Expense recoveries and other charges	—			30,125			(6,762		)	36,125
Hurricane insurance recoveries	—			(98		)	—			(32,277		)
Depreciation and amortization	25,443			30,101			109,504			122,440
Total operating expenses	241,177			280,341			935,780			973,503
Operating income	27,619			4,268			64,056			134,532
Interest expense	(21,752		)	(19,543		)	(75,434		)	(92,065		)
Interest income	615			491			1,833			2,112
Gain (loss) on early extinguishment of debt	—			57,693			—			57,693
Other expense	(370		)	—			(370		)	—
Income (loss) from continuing operations before income taxes	6,112			42,909			(9,915		)	102,272
Income tax benefit (provision)	319			(17,356		)	8,374			(41,039		)
Income (loss) from continuing operations	6,431			25,553			(1,541		)	61,233
Income (loss) from discontinued operations, including loss on sale, net of income taxes	(1,546		)	(10,965		)	(1,732		)	(17,658		)
Net income (loss)	$	4,885		$	14,588		$	(3,273	)	$	43,575
Income (loss) per common share-basic and dilutive:
Income (loss) from continuing operations	$	0.20		$	0.80		$	(0.05	)	$	1.95
Income (loss) from discontinued operations, including loss on sale, net of income taxes	(0.05		)	(0.34		)	(0.05		)	(0.56		)
Net income (loss)	$	0.15		$	0.46		$	(0.10	)	$	1.39
Weighted average basic shares	32,445,378			31,770,653			32,245,769			31,372,670
Weighted average diluted shares	32,515,829			31,770,653			32,245,769			31,379,016

ISLE OF CAPRI CASINOS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

	April 25,			April 26,
	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	68,069		$	96,654
Marketable securities	22,926			17,548
Accounts receivable, net	8,879			11,935
Income taxes receivable	8,109			7,744
Deferred income taxes	16,826			16,295
Prepaid expenses and other assets	25,095			23,234
Assets held for sale	—			4,183
Total current assets	149,904			177,593
Property and equipment, net	1,098,942			1,177,540
Other assets:
Goodwill	313,136			313,136
Other intangible assets, net	79,675			83,588
Deferred financing costs, net	10,354			9,314
Restricted cash	2,774			2,774
Prepaid deposits and other	20,055			18,717
Total assets	$	1,674,840		$	1,782,662
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	8,754		$	9,688
Accounts payable	24,072			15,079
Accrued liabilities:
Payroll and related	45,863			47,402
Property and other taxes	20,253			31,563
Interest	14,779			9,280
Progressive jackpots and slot club awards	14,144			13,892
Other	29,290			39,201
Liabilities related to assets held for sale	—			1,888
Total current liabilities	157,155			167,993
Long-term debt, less current maturities	1,192,135			1,291,384
Deferred income taxes	29,193			24,970
Other accrued liabilities	38,972			52,575
Other long-term liabilities	17,166			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: 36,771,730 at April 25, 2010 and 36,111,089 at April 26, 2009	367			361
Class B common stock, $.01 par value; 3,000,000 shares authorized; none issued	—			—
Additional paid-in capital	201,464			193,827
Retained earnings	98,555			101,828
Accumulated other comprehensive (loss) income	(8,060		)	(15,191		)
	292,326			280,825
Treasury stock, 4,326,242 shares at April 25, 2010 and 4,340,436 shares at April 26, 2009	(52,107		)	(52,399		)
Total stockholders’ equity	240,219			228,426
Total liabilities and stockholders’ equity	$	1,674,840		$	1,782,662

Isle of Capri Casinos, Inc.

Supplemental Data - Net Revenues

(unaudited, in thousands)

	Three Months Ended				Twelve Months Ended
	April 25,		April 26,		April 25,			April 26,
	2010		2009		2010			2009
Mississippi
Biloxi	$	19,112	$	21,868	$	72,602		$	83,880
Natchez	9,320		10,043		32,826			37,023
Lula	19,323		20,328		68,147			70,985
Mississippi Total	47,755		52,239		173,575			191,888
Louisiana
Lake Charles	35,771		40,007		139,423		��	152,112
Missouri
Kansas City	21,014		21,372		76,815			74,435
Boonville	20,284		21,586		77,759			78,582
Caruthersville	8,959		9,151		32,685			31,579
Missouri Total	50,257		52,109		187,259			184,596
Iowa
Bettendorf	20,373		22,963		79,527			91,661
Davenport	12,745		13,544		48,075			49,005
Marquette	6,745		7,224		27,176			29,875
Waterloo	22,344		21,863		81,261			80,544
Iowa Total	62,207		65,594		236,039			251,085
Colorado
Black Hawk	30,419		30,715		126,140			123,382
Florida
Pompano	42,007		40,900		135,998			142,672
Property Net Revenues before Other	268,416		281,564		998,434			1,045,735
Insurance Recoveries(2)
Davenport	—		758		—			758
Natchez	—		2,174		—			1,087
Biloxi	—		—		—			60,000
Other	380		113		1,402			455
Net Revenues from Continuing Operations	$	268,796	$	284,609	$	999,836		$	1,108,035

Isle of Capri Casinos, Inc.

Supplemental Data - EBITDA (1)

(unaudited, in thousands)

	Three Months Ended						Twelve Months Ended
	April 25,			April 26,			April 25,			April 26,
	2010			2009			2010			2009
Mississippi
Biloxi	$	2,444		$	2,070		$	5,721		$	9,050
Natchez	3,676			3,873			10,685			13,820
Lula	6,555			6,504			18,810			20,294
Mississippi Total	12,675			12,447			35,216			43,164
Louisiana
Lake Charles	7,222			9,705			23,579			34,521
Missouri
Kansas City	5,777			5,596			17,637			15,108
Boonville	6,805			7,606			25,603			25,526
Caruthersville	2,094			2,205			6,462			6,356
Missouri Total	14,676			15,407			49,702			46,990
Iowa
Bettendorf	5,863			6,630			21,365			29,372
Davenport	4,144			3,986			13,630			14,591
Marquette	1,445			1,167			5,164			6,324
Waterloo	7,356			6,824			23,456			22,969
Iowa Total	18,808			18,607			63,615			73,256
Colorado
Black Hawk	6,910			7,773			29,740			33,421
Florida
Pompano	5,630			3,843			9,736			8,558
Property EBITDA Before Corporate and Other Items	65,921			67,782			211,588			239,910
Corporate and Other	(11,025		)	(8,650		)	(43,415		)	(40,876		)
EBITDA Before Other Items	54,896			59,132			168,173			199,034
Other Items:
Insurance Recoveries(2)
Biloxi	—			—			—			92,179
Davenport	—			758			—			758
Natchez	—			2,272			—			1,136
Valuation Charges(3)
Biloxi	—			(11,856		)	—			(11,856		)
Black Hawk	—			(18,269		)	—			(18,269		)
Expense Recoveries and Other(4)	—			—			6,762			(6,000		)
Debt Refinancing Costs	(1,834		)	—			(1,834		)	—
Other:(5)
Marquette Hotel Demolition	—			—			(475		)	—
Caruthersville Property Tax Settlement	—			—			934			—
Pompano Gaming Tax Refund	—			2,332			—			1,890
Colorado Referendum Costs	—			—			—			(1,900		)
EBITDA from Continuing Operations	$	53,062		$	34,369		$	173,560		$	256,972

Isle of Capri Casinos, Inc.

Supplemental Data - Reconciliation of Operating Income to EBITDA(1)

(unaudited, in thousands)

	Three Months Ended April 25, 2010								Three Months Ended April 26, 2009
				Depreciation								Depreciation
	Operating			and					Operating			and
	Income			Amortization		EBITDA			Income			Amortization		EBITDA
Mississippi
Biloxi	$	(1,024	)	$	3,468	$	2,444		$	(1,859	)	$	3,929	$	2,070
Natchez	3,306			370		3,676			3,243			630		3,873
Lula	4,641			1,914		6,555			4,114			2,390		6,504
Mississippi Total	6,923			5,752		12,675			5,498			6,949		12,447
Louisiana
Lake Charles	4,769			2,453		7,222			6,748			2,957		9,705
Missouri
Kansas City	4,856			921		5,777			4,448			1,148		5,596
Boonville	5,739			1,066		6,805			6,457			1,149		7,606
Caruthersville	1,192			902		2,094			980			1,225		2,205
Missouri Total	11,787			2,889		14,676			11,885			3,522		15,407
Iowa
Bettendorf	3,830			2,033		5,863			4,141			2,489		6,630
Davenport	3,507			637		4,144			2,968			1,018		3,986
Marquette	947			498		1,445			543			624		1,167
Waterloo	4,377			2,979		7,356			3,872			2,952		6,824
Iowa Total	12,661			6,147		18,808			11,524			7,083		18,607
Colorado
Black Hawk	3,346			3,564		6,910			3,797			3,976		7,773
Florida
Pompano	1,933			3,697		5,630			(434		)	4,277		3,843
Total Property Before Corporate and Other Items	41,419			24,502		65,921			39,018			28,764		67,782
Corporate and Other	(11,966		)	941		(11,025		)	(9,987		)	1,337		(8,650		)
Total Before Other Items	29,453			25,443		54,896			29,031			30,101		59,132
Other Items:
Insurance Recoveries(2)
Davenport	—			—		—			758			—		758
Natchez	—			—		—			2,272			—		2,272
Valuation Charges(3)
Biloxi	—			—		—			(11,856		)	—		(11,856		)
Black Hawk	—			—		—			(18,269		)	—		(18,269		)
Debt Refinancing Costs	(1,834		)	—		(1,834		)	—			—		—
Pompano Gaming Tax Refund(5)	—			—		—			2,332			—		2,332
Total From Continuing Operations	$	27,619		$	25,443	$	53,062		$	4,268		$	30,101	$	34,369

Isle of Capri Casinos, Inc.

Supplemental Data - Reconciliation of Operating Income to EBITDA(1)

(unaudited, in thousands)

	Twelve Months Ended April 25, 2010								Twelve Months Ended April 26, 2009
				Depreciation								Depreciation
	Operating			and					Operating			and
	Income			Amortization		EBITDA			Income			Amortization		EBITDA
Mississippi
Biloxi	$	(8,306	)	$	14,027	$	5,721		$	(7,952	)	$	17,002	$	9,050
Natchez	8,868			1,817		10,685			10,811			3,009		13,820
Lula	10,692			8,118		18,810			11,498			8,796		20,294
Mississippi Total	11,254			23,962		35,216			14,357			28,807		43,164
Louisiana
Lake Charles	13,317			10,262		23,579			22,041			12,480		34,521
Missouri
Kansas City	13,717			3,920		17,637			10,369			4,739		15,108
Boonville	21,125			4,478		25,603			20,737			4,789		25,526
Caruthersville	2,919			3,543		6,462			1,638			4,718		6,356
Missouri Total	37,761			11,941		49,702			32,744			14,246		46,990
Iowa
Bettendorf	12,624			8,741		21,365			20,090			9,282		29,372
Davenport	10,494			3,136		13,630			10,351			4,240		14,591
Marquette	2,763			2,401		5,164			3,705			2,619		6,324
Waterloo	11,614			11,842		23,456			11,377			11,592		22,969
Iowa Total	37,495			26,120		63,615			45,523			27,733		73,256
Colorado
Black Hawk	14,891			14,849		29,740			16,588			16,833		33,421
Florida
Pompano	(6,951		)	16,687		9,736			(8,324		)	16,882		8,558
Property EBITDA Before Corporate and Other Items	107,767			103,821		211,588			122,929			116,981		239,910
Corporate and Other	(48,140		)	4,725		(43,415		)	(46,335		)	5,459		(40,876		)
EBITDA Before Other Items	59,627			108,546		168,173			76,594			122,440		199,034
Other Items:
Insurance Recoveries(2)
Biloxi	—			—		—			92,179			—		92,179
Davenport	—			—		—			758			—		758
Natchez	—			—		—			1,136			—		1,136
Valuation Charges(3)
Biloxi	—			—		—			(11,856		)	—		(11,856		)
Black Hawk	—			—		—			(18,269		)	—		(18,269		)
Expense Recoveries and Other(4)	6,762			—		6,762			(6,000		)	—		(6,000		)
Debt Refinancing Costs	(1,834		)	—		(1,834		)	—			—		—
Other:(5)
Marquette Hotel Demolition	(1,433		)	958		(475		)	—			—		—
Caruthersville Property Tax Settlement	934			—		934			—			—		—
Pompano Gaming Tax Refund	—			—		—			1,890			—		1,890
Colorado Referendum Costs	—			—		—			(1,900		)	—		(1,900		)
EBITDA From Continuing Operations	$	64,056		$	109,504	$	173,560		$	134,532		$	122,440	$	256,972

(1)EBITDA is “earnings before interest and other non-operating income (expense), income taxes, and depreciation and amortization.” “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						Fiscal Year Ended
	April 25,			April 26,			April 25,			April 26,
	2010			2009			2010			2009
EBITDA	$	53,062		$	34,369		$	173,560		$	256,972
Add/(deduct):
Depreciation and amortization	(25,443		)	(30,101		)	(109,504		)	(122,440		)
Interest expense:
Interest expense, net	(21,137		)	(19,052		)	(73,601		)	(89,953		)
Gain on early extinguishment of debt	—			57,693			—			57,693
Other expense	(370		)	—			(370		)	—
Income tax benefit (provision)	319			(17,356		)	8,374			(41,039		)
Income (loss) from discontinued operations, including loss on sale, net of income taxes	(1,546		)	(10,965		)	(1,732		)	(17,658		)
Net income (loss)	$	4,885		$	14,588		$	(3,273	)	$	43,575

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 non-cash stock compensation expense. Reference can be made to the definition of Adjusted EBITDA in the applicable debt agreements on file as Exhibits to our filings with the Securities and Exchange Commission.

(2)We have received insurance recoveries related to various claims.  The insurance recoveries for our Biloxi property in fiscal year 2009 related to Hurricane Katrina claims.  In addition, we received insurance recoveries at our Davenport and Natchez properties related to flood and other claims.

(3)We recorded a valuation charge as a result of our impairment testing under ASC 350 at our Black Hawk property in fiscal year 2009.  We recorded a valuation charge reducing our construction in progress following a decision to change construction plans at our Biloxi property in fiscal year 2009.

(4)Expense recoveries and other of $(6.8) million for fiscal year 2010 reflect income from the recording of a receivable for reimbursement of Pittsburgh development costs. Expense recoveries and other of $6.0 million for fiscal year 2009 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.

(5)Other:  During fiscal year 2010, the Company demolished the hotel at our Marquette property. As a result, operating income for the fiscal year 2010 includes $0.5 million in demolition costs and $1.0 million in acceleration of remaining depreciation.  Caruthersville includes the favorable impact of $0.9 million from the settlement of a property tax appeal during fiscal year 2010. In fiscal year 2009, Pompano includes the results of an agreement reached with the State of Florida regarding an interpretation of the gaming tax calculation based on taxes paid since opening.  The Colorado properties include costs associated with the gaming referendum passed during fiscal year 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, www.islecorp.com.

Forward-Looking Statements

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

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