[LETTERHEAD]
FOR IMMEDIATE RELEASE
- ---------------------
ISLE OF CAPRI CASINOS, INC. ANNOUNCES RECORD THIRD QUARTER RESULTS
Biloxi, Mississippi, February 16, 2000. Isle of Capri Casinos, Inc.
(NASDAQ:ISLE ) today announced its results for the third quarter ended
January 23, 2000. Summarized below and on the attached pages are the
financial results for the corporation on a consolidated basis, with
operating highlights for some of its gaming facilities.
(Unaudited)
QTR QTR
(In thousands, except per share data) . . . . . . . . 1/23/00 1/24/99
Casino Revenue. . . . . . . . . . . . . . . . . . . . $ 139,001 $101,893
Hotel, Pari-mutuel, Food and Beverage, Other Revenue. 14,723 13,227
------------ --------
Total Revenue . . . . . . . . . . . . . . . . . . . . 153,724 115,120
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 4,881 $ 1,045
Net Income per Diluted Share. . . . . . . . . . . . . $ 0.19 $ 0.04
Weighted Average Common Shares. . . . . . . . . . . . 25,938 23,684
EBITDA (1). . . . . . . . . . . . . . . . . . . . . . $ 32,420 $ 24,866
YTD YTD
1/23/00 1/24/99
Casino Revenue. . . . . . . . . . . . . . . . . . . . $ 408,814 $297,744
Hotel, Pari-mutuel, Food and Beverage, Other Revenue. 42,112 38,381
------------ --------
Total Revenue . . . . . . . . . . . . . . . . . . . . 450,926 336,125
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 18,041 $ 5,665
Net Income per Diluted Share. . . . . . . . . . . . . $ 0.71 $ 0.24
Weighted Average Common Shares. . . . . . . . . . . . 25,353 23,663
EBITDA (1). . . . . . . . . . . . . . . . . . . . . . $ 98,524 $ 73,607
See footnotes on the following pages, for details regarding the above operating
results.
(1) - See EBITDA defined in footnote (2) of Comparative Financial Highlights.
"We are very pleased with our overall operating results for the quarter and with
the continued successful implementation of our expansion plan, including our
plans to acquire the Flamingo Casino in Kansas City, Missouri. We are
finalizing our acquisition of Lady Luck, and are continuing to develop new
hotels at Isle-Black Hawk, Isle-Tunica and Isle-Lake Charles," stated
Chairman and Chief Executive Officer, Bernard Goldstein.
Jack Gallaway, President and Chief Operating Officer stated, "Our third quarter
is typically our softest quarter of the year, yet this year we posted a 30%
increase in EBITDA and a 375% increase in EPS for the third quarter compared to
the prior year third quarter. We are diligently preparing for the integration
of the Lady Luck casinos into our Isle-Family and we look forward to Islestyling
our latest planned addition, the Flamingo Casino in Kansas City, Missouri."
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, permits,
competition and business conditions in the gaming industry. 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 25, 1999.
Isle of Capri Casinos, Inc. owns and operates seven riverboat, dockside and
land-based casinos at six locations, including the Isle of Capri Casino,
Crowne Plaza Resort in Biloxi, Mississippi; the Isle of Capri Casino & Hotel
in Vicksburg, Mississippi; the Isle of Capri Casino & Hotel in Bossier City,
Louisiana; two riverboats operating as the Isle of Capri Casino & Hotel in Lake
Charles, Louisiana; (through a 57% owned subsidiary), the Isle of Capri Casino
in Black Hawk, Colorado and the Isle of Capri Casino in Tunica, Mississippi.
The Company also operates Pompano Park Harness Racing Track in Pompano Beach,
Florida and through a joint venture, the Enchanted Capri cruise ship, that
features an Isle of Capri Casino, sailing from New Orleans, Louisiana.
NOTE: OTHER ISLE OF CAPRI CASINOS, INC. PRESS RELEASES AND A CORPORATE PROFILE
ARE AVAILABLE BY FAX AT NO CHARGE. FOR A MENU OF AVAILABLE ISLE OF CAPRI
CASINOS, INC. PRESS RELEASES, CALL 800/758-5804, EXT. 145913 OR AT
http://www.prnewswire.com. ISLE OF CAPRI'S HOME PAGE IS
http://www.theislecorp.com.
CONTACTS: ALLAN SOLOMON, EXECUTIVE VICE PRESIDENT, 561/995-6660 or REX YEISLEY,
CHIEF FINANCIAL OFFICER, 228/436-7000
Isle of Capri Casinos, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
January 23, January 24, January 23, January 24,
2000 1999 2000 1999
-------------------- ------------------- ------------- -------------
Revenues:
Casino . . . . . . . . . . . . . . . . . . . $ 139,001 $ 101,893 $ 408,814 $ 297,744
Pari-mutuel commissions and fees . . . . . . 5,477 5,542 13,826 13,514
Hotel, food , beverage & other. . . . . . . 9,246 7,685 28,286 24,867
-------------------- ------------------- ------------- -------------
Total revenue. . . . . . . . . . . . . . . . . 153,724 115,120 450,926 336,125
Operating and other expenses:
Corporate and new development. . . . . . . . 4,193 2,860 12,289 8,848
Properties . . . . . . . . . . . . . . . . . 117,111 87,394 340,113 253,670
Accrued litigation settlement (reversal) (1) - (4,215) - (4,215)
Valuation Allowance (2). . . . . . . . . . . - 5,097 - 5,097
Preopening (3) . . . . . . . . . . . . . . . - 3,320 3,420 3,320
Depreciation and amortization. . . . . . . . 9,336 8,762 27,261 25,894
-------------------- ------------------- ------------- -------------
Total operating and other expenses . . . . . . 130,640 103,218 383,083 292,614
-------------------- ------------------- ------------- -------------
Operating income . . . . . . . . . . . . . . . 23,084 11,902 67,843 43,511
Gain on disposal (4) . . . . . . . . . . . . . - - 3,106 -
Equity in income (loss) of
unconsolidated joint venture (5) . . . . . . (417) (479) 220 (1,140)
Net interest expense (6) . . . . . . . . . . . (12,487) (10,966) (36,509) (33,352)
Minority interest (7). . . . . . . . . . . . . (1,053) 1,670 (2,244) 2,197
-------------------- ------------------- ------------- -------------
Income before income taxes. . . . . . . . . . 9,127 2,127 32,416 11,216
Income tax expense . . . . . . . . . . . . . . 4,246 1,082 14,375 5,551
-------------------- ------------------- ------------- -------------
Net income . . . . . . . . . . . . . . . . . . $ 4,881 $ 1,045 $ 18,041 $ 5,665
==================== =================== ============= =============
Net income per diluted share . . . . . . . . . $ 0.19 $ 0.04 $ 0.71 $ 0.24
Weighted average diluted common shares . . . . 25,938 23,684 25,353 23,663
(1) Accrued litigation settlement (reversal) relates to the reversal of an
accrued expense of $4,215 for a boarding tax liability at the Isle-
Bossier City, for which the courts have determined the Company is not
liable.
(2) Valuation allowance includes a $2.4 million total charge relating to the
write-down of certain assets held for sale and a $2.7 million
charge relating to the write-off of a land lease.
(3) Preopening of $3.4 million and $3.3 million relates to expenses incurred
with the openings of the Isle of Capri Casino in Tunica, MS in
the second quarter of fiscal 2000 and the Isle of Capri Casino in Black
Hawk, Co. in the third quarter of fiscal year 1999, respectively.
(4) Gain on Disposal relates to the sale of an option to purchase land
adjacent to the Pompano Park, Inc. facility.
(5) Equity in unconsolidated joint venture represents the Company's
ownership interest in the Enchanted Capri cruise ship, a joint venture
with an unrelated third-party.
(6) Interest expense is net of interest income of $1,163, $711, $2,705 and
$2,350, respectively; and capitalized interest of $335, $2,422,
$1,467 and $6,263, respectively; net interest expense includes gross
interest expense of $2,783, $2,717, $8,194 and $7,746,
respectively; interest income of $105, $223, $323 and $762,
respectively; and capitalized interest of $256, $1,634, $640 and
$4,849, respectively from Isle of Capri Black Hawk, L.L.C.
(7) Minority interest represents the portion of Isle of Capri Black Hawk,
L.L.C. Income before income taxes owned by an unrelated third-party.
Isle of Capri Casinos, Inc.
Comparative Financial Highlights by Casino Property
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
January 23, January 24, January 23, January 24,
2000 1999 2000 1999
-------------------- ------------------- ------------- -------------
BILOXI (5)
Gaming Revenue . . . . $ 17,551 $ 19,039 $ 56,768 $ 57,973
Total Revenue (1). . . 19,903 21,891 65,099 68,461
EBITDA (2) . . . . . . 4,346 5,766 16,611 18,380
EBITDA as % of
Total Revenue. 21.8% 26.3% 25.5% 26.8%
Operating Income (3) . $ 2,878 $ 4,323 $ 12,273 $ 13,918
VICKSBURG
Gaming Revenue . . . . $ 14,361 $ 11,824 $ 43,371 $ 35,865
Total Revenue (1). . . 15,326 12,356 46,507 37,641
EBITDA (2) . . . . . . 4,274 2,975 13,904 9,910
EBITDA as % of
Total Revenue. 27.9% 24.1% 29.9% 26.3%
Operating Income (3) . $ 3,500 $ 1,983 $ 11,417 $ 6,857
BOSSIER CITY
Gaming Revenue . . . . $ 34,947 $ 28,239 $ 101,942 $ 87,076
Total Revenue (1). . . 36,951 29,445 107,493 91,160
EBITDA (2) . . . . . . 10,352 7,655 28,853 23,507
EBITDA as % of
Total Revenue. 28.0% 26.0% 26.8% 25.8%
Operating Income (3) . $ 8,749 $ 5,993 $ 24,393 $ 18,589
LAKE CHARLES
Gaming Revenue . . . . $ 43,467 $ 38,268 $ 128,865 $ 112,187
Total Revenue (1). . . 44,872 39,638 133,291 117,403
EBITDA (2) . . . . . . 12,383 9,951 36,064 29,215
EBITDA as % of
Total Revenue. 27.6% 25.1% 27.1% 24.9%
Operating Income (3) . $ 9,076 $ 6,944 $ 25,567 $ 20,234
BLACK HAWK (4)
Gaming Revenue . . . . $ 22,961 $ 4,436 $ 62,646 $ 4,436
Total Revenue (1). . . 24,004 4,668 66,053 4,668
EBITDA (2) . . . . . . 6,640 838 17,455 838
EBITDA as % of
Total Revenue. 27.7% 18.0% 26.4% 18.0%
Operating Income (3) . $ 6,073 $ 604 $ 15,898 $ 604
TUNICA
Gaming Revenue . . . . $ 5,665 N/A $ 15,065 N/A
Total Revenue (1). . . 5,918 N/A 15,698 N/A
EBITDA (2) . . . . . . (1,884) N/A (2,820) N/A
EBITDA as % of
Total Revenue. (31.8%) N/A (18.0%) N/A
Operating Income (3) . $ (2,564) N/A $ (4,026) N/A
(1) - Total Revenue is presented net of complimentaries.
(2) - EBITDA is calculated by adding income taxes, net interest expense,
minority interest, equity in unconsolidated joint ventures,
depreciation and amortization, preopening and intercompany
management fees to net income. Additionally, EBITDA has been
adjusted for the following non-recurring items: accrued litigation
settlement reversal (Bossier City only) and valuation allowance
(Corporate only).
(3) - Operating income is presented before accrued litigation settlement
(reversal), valuation allowance, preopening and intercompany
management fees.
(4) - EBITDA and Operating Income include equipment operating lease expense
of $826, $313, $2,674 and $313 respectively; and exclude Management
Fee Expense of $939, $165, $2,653 and $165, respectively.
(5) In Biloxi, EBITDA and Operating Income include $648 of business
interruption claim funds collected during the third quarter of fiscal
year 1999 relating to Hurricane Georges.