[LETTERHEAD]
FOR IMMEDIATE RELEASE
- -----------------------
ISLE OF CAPRI CASINOS, INC. ANNOUNCES 15% INCREASE IN E.P.S.
Biloxi, Mississippi, November 20, 2000. Isle of Capri Casinos, Inc.
(NASDAQ:ISLE) today reported earnings per diluted share of $.30 for the
second quarter ended October 29, 2000 compared to $.26 per share for the second
quarter of the prior year, a 15% increase.
The positive results were driven by the improved combined operating results of
the original five Isle properties, the inclusion of the new Isle
properties in Natchez and Lula, Mississippi, and Bettendorf and Marquette, Iowa,
and Kansas City, Missouri as well as the inclusion for part of the
quarter of our latest Isle properties in Las Vegas, Nevada and Davenport, Iowa.
Bernard Goldstein, Chairman and Chief Executive Officer commented, "We are
pleased with the year-over-year improvement in operating results for
the second quarter as we continue to implement our growth strategy. Future
internal growth will be generated by several improvements that have come
to fruition recently: our 237 room hotel opened in August in Black Hawk, CO, our
227 room hotel and theaters opened in November in Tunica, MS,
and our 250 room hotel in Lake Charles, LA will open by the end of November.
Additionally, we have begun major renovations at our Lula, MS
and Kansas City, MO properties that should be substantially complete by the
beginning of our fiscal fourth quarter, and we have begun renovations of
our Davenport, IA property that should be complete by the end of the fourth
quarter. In September, we welcomed Lady Luck Las Vegas into the Isle
Family as an existing operation and in October, the gaming facility in
Davenport, IA, formerly the President, joined the Isle as an existing operation.
We are in the early stages of construction of our gaming entertainment facility
in Boonville, MO and are moving forward with our plans to develop
our Jefferson County, MO project."
Jack Gallaway, President and Chief Operating Officer added, "We are continuing
the process of absorbing the latest extensions of our Isle family,
while at the same time improving operations at the existing Isle facilities.
We have had 13 consecutive quarters of year-over-year earnings
Improvements EBITDA grew 76% to $57.6 million in the second quarter from the
prior year, and increased 74% to $115.3 million for the six months ended
October 29, 2000. We look forward to creating a new brand in Davenport, IA
called Rhythm City that will build upon our 'Islestyle' brand that has
proven to be successful."
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)
Three Months (In thousands, except per share data)
- ----------------------------------------------------
10/29/00 10/24/99
--------- ----------
Casino Revenue. . . . . . . . . . . . . . . . . . . . $ 231,043 $ 141,479
Hotel, Pari-mutuel, Food and Beverage, Other Revenue. 20,475 13,516
--------- ----------
Total Revenue . . . . . . . . . . . . . . . . . . . . 251,518 154,995
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 9,636 $ 6,632
Net Income per Diluted Share. . . . . . . . . . . . . $ 0.30 $ 0.26
Weighted Average Common Shares. . . . . . . . . . . . 32,358 25,109
EBITDA (1). . . . . . . . . . . . . . . . . . . . . . $ 57,633 $ 32,839
Six Months
- ----------------------------------------------------
10/29/00 10/24/99
--------- ---------
Casino Revenue. . . . . . . . . . . . . . . . . . . . $ 461,378 $ 269,813
Hotel, Pari-mutuel, Food and Beverage, Other Revenue. 41,602 27,389
--------- ---------
Total Revenue . . . . . . . . . . . . . . . . . . . . 502,980 297,202
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 20,205 $ 13,160
Net Income per Diluted Share. . . . . . . . . . . . . $ 0.62 $ 0.53
Weighted Average Common Shares. . . . . . . . . . . . 32,341 24,946
EBITDA (1). . . . . . . . . . . . . . . . . . . . . . $ 115,277 $ 66,104
See footnotes on the following pages, for details regarding the above operating
results.
(1) - See EBITDA defined in footnote (2) of Comparative Financial Highlights.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
OCTOBER 29, OCTOBER 24, OCTOBER 29, OCTOBER 24,
2000 1999 2000 1999
----------- ------------ ----------- -------------
Revenue:
Casino . . . . . . . . . . . . . . . . . . . $ 231,043 $ 141,479 $ 461,378 $ 269,813
Hotel, pari-mutuel, food, beverage & other. 20,475 13,516 41,602 27,389
----------- -------------- ------------- -------------
Total revenue. . . . . . . . . . . . . . 251,518 154,995 502,980 297,202
Operating and other expenses:
Corporate and new development. . . . . . . . 4,685 4,281 9,397 8,096
Properties . . . . . . . . . . . . . . . . . 189,200 117,875 378,306 223,002
Preopening (1) . . . . . . . . . . . . . . . - - - 3,420
Depreciation and amortization. . . . . . . . 15,897 9,069 31,118 17,925
----------- ------------- ------------- -------------
Total operating and other expenses . . . . . . 209,782 131,225 418,821 252,443
Operating income . . . . . . . . . . . . . . . 41,736 23,770 84,159 44,759
Gain on disposal (2) . . . . . . . . . . . . . 271 - 271 3,106
Equity in income (loss) of
unconsolidated joint venture (3) . . . . . . (109) 585 (109) 637
Net interest expense (4) . . . . . . . . . . . (23,132) (12,620) (44,124) (24,022)
Minority interest (5). . . . . . . . . . . . . (1,555) (701) (2,959) (1,191)
----------- ------------- ------------- -------------
Income before income taxes. . . . . . . . . . 17,211 11,034 37,238 23,289
Income tax expense . . . . . . . . . . . . . . 7,575 4,402 17,033 10,129
----------- ------------- ------------- -------------
Net income . . . . . . . . . . . . . . . . . . $ 9,636 $ 6,632 $ 20,205 $ 13,160
=========== ============= ============= =============
Net Income per diluted share . . . . . . . . . $ 0.30 $ 0.26 $ 0.62 $ 0.53
Weighted average diluted common shares . . . . 32,358 25,109 32,341 24,946
(1) Preopening of $3.4 million relates to expenses incurred with the
opening of the Isle of Capri Casino Tunica in the first quarter of
fiscal 2000.
(2) Gain on disposal relates to the sale of an option to purchase land
adjacent to the Pompano Park, Inc. facility.
(3) Equity in unconsolidated joint venture represents the Company's
ownership interest in the Enchanted Capri cruise ship, a joint venture
with an unrelated third-party.
(4) Consolidated interest expense is net of the following:
Three Months Ended Six Months Ended
October 29, October 24, October 29, October 24,
2000 1999 2000 1999
------------- ------------- ------------- -------------
Interest income. . . . . . . . . . . . . . . .$ (797) $ (835) $ (3,198) $ (1,543)
Capitalized interest . . . . . . . . . . . . . . (1,732) (186) (3,061) (1,131)
Interest expense . . . . . . . . . . . . . . . . 25,661 13,641 50,383 26,696
------------- ------------- ------------- -------------
Net interest expense. . . . . . . . . . . .$ 23,132 $ 12,620 $ 44,124 $ 24,022
============= ============= ============= =============
Included in the consolidated interest is Isle of Capri Black Hawk,
L.L.C.'s net interest expense of the following:
Interest income. . . . . . . . . . . . . . . .$ (51) $ (127) $ (81) $ (218)
Capitalized interest . . . . . . . . . . . . . (0) (140) (726) (384)
Interest expense . . . . . . . . . . . . . . . 3,168 2,902 5,936 5,753
------------- ------------- ------------- -------------
Net interest expense. . . . . . . . . . . .$ 3,117 $ 2,635 $ 5,129 $ 5,151
============= ============= ============= =============
(5) Minority interest represents the portion of Isle of Capri Black Hawk,
L.L.C.'s 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
OCTOBER 29, OCTOBER 24,
2000 1999
REVENUE (1) EBITDA (2) MARGIN % REVENUE (1) EBITDA (2) MARGIN %
--------------- ------------ ----------- ------------ --------- --------
BILOXI . . . . . . . . $ 21,287 $ 5,852 27.5% $ 21,824 $ 5,876 26.9%
VICKSBURG. . . . . . . 16,757 5,317 31.7% 15,431 4,737 30.7%
BOSSIER CITY . . . . . 37,214 10,472 28.1% 37,787 9,962 26.4%
LAKE CHARLES . . . . . 45,164 12,765 28.3% 43,691 11,723 26.8%
BLACK HAWK (3) . . . . 28,717 8,671 30.2% 21,820 5,691 26.1%
TUNICA (4) . . . . . . 7,142 (1,158) (16.2%) 9,780 (936) (9.6%)
NATCHEZ (5)(11). . . . 9,019 3,058 33.9% 8,286 1,915 23.1%
LULA (5)(11) . . . . . 22,238 7,417 33.4% 25,217 6,084 24.1%
BETTENDORF (5)(11) . . 24,333 6,017 24.7% 24,663 6,365 25.8%
MARQUETTE (5)(6)(11) . 10,376 2,408 23.2% 9,481 2,019 21.3%
KANSAS CITY (7)(11). . 15,766 103 0.7% 16,996 573 3.4%
LAS VEGAS (8)(11). . . 6,089 546 9.0% 6,035 (77) (1.3%)
DAVENPORT (9)(11). . . 3,752 601 16.0% 4,866 1,443 29.7%
CORPORATE & OTHER (10) 3,664 (4,436) N/M 4,662 (4,214) N/M
--------------- ------------ ----------- ------------ --------- -------
TOTAL. . . . . . . . $ 251,518 $ 57,633 22.9% $ 250,539 $ 51,161 20.4%
=============== ============ =========== =========== ========= =======
SIX MONTHS ENDED
OCTOBER 29, OCTOBER 24,
2000 1999
REVENUE (1) EBITDA (2) MARGIN % REVENUE (1) EBITDA (2) MARGIN %
--------------- ----------------- ----------- --------- --------- ------------
BILOXI (4) . . . . . . $ 44,073 $ 11,254 25.5% $ 45,196 $ 12,265 27.1%
VICKSBURG. . . . . . . 33,170 10,693 32.2% 31,181 9,630 30.9%
BOSSIER CITY . . . . . 78,275 22,437 28.7% 70,542 18,501 26.2%
LAKE CHARLES . . . . . 93,172 26,797 28.8% 88,419 23,681 26.8%
BLACK HAWK (3) . . . . 54,395 15,863 29.2% 42,049 10,815 25.7%
TUNICA (4) . . . . . . 14,142 (2,161) (15.3%) 9,780 (936) (9.6%)
NATCHEZ (5)(11). . . . 19,135 5,882 30.7% 17,186 3,997 23.3%
LULA (5)(11) . . . . . 49,539 15,041 30.4% 52,993 13,539 25.5%
BETTENDORF (5)(11) . . 49,340 11,573 23.5% 49,586 13,547 27.3%
MARQUETTE (5)(6)(11) . 19,613 4,709 24.0% 19,135 4,229 22.1%
KANSAS CITY (7)(11). . 28,520 1,104 3.9% 28,496 906 3.2%
LAS VEGAS (8)(11). . . 6,089 546 9.0% 6,035 (77) (1.3%)
DAVENPORT (9)(11). . . 3,752 601 16.0% 4,866 1,443 29.7%
CORPORATE & OTHER (10) 9,765 (9,062) N/M 10,035 (7,852) N/M
--------------- ------------------ ----------- ----------- --------- ---------
TOTAL (5). . . . . . $ 502,980 $ 115,277 22.9% $ 475,499 $103,688 21.8%
=============== ================== =========== =========== ========= =========
(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 and preopening expense to net
income and subtracting gain on disposal of assets.
(3) - EBITDA includes equipment operating lease expense and excludes
management fees of the following:
Three Months Ended Six Months Ended
October 29, October 24, October 29, October 24,
2000 1999 2000 1999
------------ ------------ ------------ ------------
Equipment operating lease $ 897 $ 919 $ 1,802 $ 1,849
Management fees . . . . . 1,148 855 2,167 1,715
(4) - Isle Tunica commenced operations in July 1999.
(5) - These properties were acquired by Isle of Capri Casinos, Inc. on
March 2, 2000 during the fiscal 2000 period and accordingly
their results are not included in the consolidated results
for the quarter ended October 24, 1999.
(6) - Isle Marquette's prior year EBITDA has been reduced for non-
recurring items totaling $1.8 million.
(7) - Kansas City was acquired by Isle of Capri Casinos, Inc. on June 6,
2000 during the fiscal 2001 period and accordingly its
results are not included in the consolidated results for the
quarter ended October 24, 1999.
(8) - Las Vegas was acquired by Isle of Capri Casinos, Inc. on September
12, 2000 during the fiscal 2001 period and accordingly its
results are not included in the consolidated results for the
quarter ended October 24, 1999.
(9) - Davenport was acquired by Isle of Capri Casinos, Inc. on October
10, 2000 during the fiscal 2001 period and accordingly its
results are not included in the consolidated results for the
quarter ended October 24, 1999.
(10) - Corporate and other EBITDA includes miscellaneous income.
Prior Year Corporate & Other does not include any Lady Luck Gaming
corporate expenses.
(11) - The prior year results are shown for comparative purposes only.
Isle of Capri Casinos, Inc. owns and operates 14 riverboat, dockside and
land-based casinos at 13 locations, including Biloxi, Vicksburg, Tunica
Lula, and Natchez, Mississippi; Bossier City and Lake Charles (two riverboats),
Louisiana; Black Hawk, Colorado; Bettendorf, Marquette and
Davenport, Iowa; Kansas City, Missouri; and Las Vegas, Nevada. The Company also
operates Pompano Park Harness Racing Track in Pompano
Beach, Florida and through a joint venture, the Enchanted Capri cruise ship,
which features an Isle of Capri Casino, sailing from New Orleans,
Louisiana. More information on Isle of Capri Casinos' locations can be found at
www.isleofcapricasino.com.
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.
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 30, 2000,
and on form 10-Q for the quarter ended July 30 ,2000.
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 LOG ON
TO HTTP://WWW.PRNEWSWIRE.COM. ISLE OF CAPRI'S HOME PAGE IS
HTTP://WWW.THEISLECORP.COM.
CONTACTS:
ALLAN SOLOMON, EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL
561/995-6660
REX YEISLEY, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
228/396-7000