EXHIBIT 99.1
FOR IMMEDIATE RELEASE
BILOXI, MISS. (June 19, 2003)-Isle of Capri Casinos, Inc. (NASDAQ: ISLE) today
reported financial results for the fourth quarter and fiscal year ended April
27, 2003. For the fourth quarter, the company reported net income of $18.2
million or $0.60 per diluted common share compared to a net loss of $22.0
million or $0.78 loss per diluted common share for the same quarter last year.
Net income for the quarter ended April 27, 2003 includes a valuation charge of
$1.3 million, net of income taxes, that relates to a reserve for a loss on an
investment. The prior year's fourth quarter net loss included a valuation
charge of $39.9 million, net of income taxes, that related primarily to the
impairment of the Isle-Tunica and the Lady Luck-Las Vegas properties and
extraordinary items of $1.9 million net of income taxes, that related to the
extinguishment of a portion of the company's senior credit facility. During the
fourth quarter ended April 27, 2003, Isle of Capri Casinos had net revenues
of $275.9 million, compared to $299.7 million for the same period in fiscal
2002 and Adjusted EBITDA (1) of $73.6 million, compared to $73.5 million for the
same period in fiscal 2002.
For the fiscal year ended April 27, 2003, Isle of Capri Casinos reported net
income of $45.6 million or $1.50 per diluted common share compared to a net loss
of $35,000 or $0.001 per diluted common share for the fiscal year ended April
28, 2002. Net income for the fiscal year ended April 27, 2003, includes a
valuation charge of $1.3 million, net of income taxes, that relates to a reserve
for a loss on an investment. The prior year's net loss included a valuation
charge of $39.9 million, net of income taxes, that related primarily to the
impairment of the Isle-Tunica and the Lady Luck-Las Vegas properties; preopening
expenses of $2.5 million, net of income taxes, that related to the opening of
the Isle-Boonville on December 6, 2001; and extraordinary items in the amount of
$4.3 million, net of income taxes, related to the extinguishment of a portion of
the company's senior credit facility. Net revenues for fiscal 2003 were $1.07
billion, down from $1.09 billion for the comparable period in the previous year.
Adjusted EBITDA in fiscal 2003 was $242.3 million, an increase of $0.9 million
over the prior year period Adjusted EBITDA of $241.4 million.
See tables and footnotes on the following pages for further details regarding
the above operating results.
(1)See Adjusted EBITDA defined in footnote (2) of Comparative Financial
Highlights.
FOURTH QUARTER RESULTS
Bernard Goldstein, Isle of Capri Casinos, Inc. chairman and chief executive
officer, said, "The Isle has held steady through this period of uncertainty. We
do feel strongly that the economy will recover; therefore, we have been working
hard to position ourselves to be prepared with both our programs and our
products."
The company's loyalty programs through the IsleOne Players Club have provided a
benefit by offsetting a weaker retail business this quarter. Revenue from our
club members at the same properties, year-over-year, has increased by 8.5
percent and revenue from club members enrolled in our IsleMiles program has
increased by 22.2 percent. IsleMiles, introduced by the company last year, is
the first-of its-kind deferred-reward loyalty program in the industry. The
program allows players to earn IsleMiles, which can be redeemed for premium
merchandise, Carnival cruises and trips to Isle of Capri properties.
Construction continued during the quarter for the company's expansion projects
at the Isle-Biloxi and the Isle-Bossier City. The properties are part of the
previously announced improvement plan that will provide additional and upgraded
amenities at the Isle-Biloxi, the Isle-Bossier City and the Isle-Marquette. Due
to the construction, some disruption has occurred at both properties,
particularly with the parking areas.
On April 22, 2003, the Isle-Black Hawk completed the acquisition of the Colorado
Central Station-Black Hawk and the Colorado Grande-Cripple Creek for
approximately $84.0 million adjusted for certain working capital adjustments.
The company believes that the addition of the Colorado Central Station-Black
Hawk, which is located on the opposite side of the street from the Isle-Black
Hawk, will further develop operational efficiencies as well as bring the best
aspects of both brands to the customer. The Isle-Black Hawk will delay
beginning its previously announced expansion program until after the outcome of
a proposed statewide referendum on VLT's at racetracks in Colorado has been
determined in November of 2003.
During this quarter, the company also opened a new generation of its Calypso's
Buffets, featuring upgraded decor and menu items at the Isle-Biloxi and the
Isle-Black Hawk. The new design and food offerings were introduced to further
enhance the Isle's brand.
John M. Gallaway, president and COO, said, "Despite the economic climate coupled
with some construction disruption, the Isle of Capri persevered due to our
strong brand and geographic diversity. We are moving forward, increasing our
focus on improving our product and our customer satisfaction; therefore, our
board has approved an aggressive $96.6 million capital plan for the coming
fiscal year. This plan allows us to concentrate on our existing product with
improvement and expansions."
Highlights of this new capital expenditures plan, which the company expects to
complete during the next 24 months, include: $32.4 million in slot product
improvement; $15.0 million in improvements to the Isle-Lake Charles; $10.0
million in improvements to the Isle-Kansas City; and $5.0 million in
improvements to the Isle-Bossier City, in each case to expand and/or renovate
the casino area at each of these properties. To further the effort to improve
customer satisfaction, the plan also includes $10.2 million in changes and
additions to the company's retail food product. The Isle-Vicksburg's, the
Isle-Lake Charles' and the Isle-Bossier City's buffets will be upgraded to the
new Calypso's product. The Rhythm City-Davenport will also introduce a new
buffet-style restaurant. And the Isle-Boonville and the Isle-Bettendorf will
receive fixture upgrades. The Isle-Black Hawk's and the Isle-Lake Charles'
Tradewinds Marketplace restaurants will be upgraded to meet with the company's
new version.
In the area of new development, the company has an agreement in principle to
invest up to $10.0 million, primarily in gaming equipment, to lease and operate
an Isle of Capri Casino at Our Lucaya Beach and Golf Resort in Freeport, Grand
Bahamas. The project is subject to various conditions, including, without
limitation, execution of a definitive agreement and governmental and regulatory
approvals. The company is also actively pursuing other gaming opportunities in
a number of jurisdictions.
The following are a few highlights from our consolidated balance sheet:
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(IN THOUSANDS)
APRIL 27, 2003 APRIL 28, 2002
--------------- ---------------
Cash and cash equivalents (1) . . . . . $ 94,626 $ 76,597
Property and equipment, net . . . . . . 841,332 803,507
Long-term debt, including
current portion. . . . . . . . . . . 1,027,987 1,009,299
Stockholders' equity. . . . . . . . . . 203,904 159,198
(1) As of April 27, 2003, amount includes short-term marketable securities
of $14.0 million held by the Isle-Black Hawk.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
APRIL 27, APRIL 28,
2003 2002
----------------------------------------- -------------------
Revenues:
Casino . . . . . . . . . . . . . . . . . . . . . . . . . $ 272,085 $ 285,977
Hotel, pari-mutuel, food, beverage & other. . . . . . . 54,198 62,720
----------------------------------------- -------------------
Gross revenues . . . . . . . . . . . . . . . . . . . . . 326,283 348,697
Less promotional allowances. . . . . . . . . . . . . . . 50,406 48,963
----------------------------------------- -------------------
Net revenues . . . . . . . . . . . . . . . . . . . . . . . 275,877 299,734
Operating and other expenses:
Properties (1)(2). . . . . . . . . . . . . . . . . . . . 196,501 221,474
Corporate and new development. . . . . . . . . . . . . . 5,737 4,786
Preopening (3) . . . . . . . . . . . . . . . . . . . . . - -
Valuation charge (4) . . . . . . . . . . . . . . . . . . 1,923 61,362
Depreciation and amortization. . . . . . . . . . . . . . 20,587 18,982
----------------------------------------- -------------------
Total operating and other expenses . . . . . . . . . . . . 224,748 306,604
Operating income (loss). . . . . . . . . . . . . . . . . . 51,129 (6,870)
Equity in loss of unconsolidated
joint venture. . . . . . . . . . . . . . . . . . . . . . - (38)
Net interest expense (5) . . . . . . . . . . . . . . . . . (19,981) (20,838)
Minority interest (6). . . . . . . . . . . . . . . . . . . (2,155) (2,052)
----------------------------------------- -------------------
Income (loss) before income taxes and extraordinary items. 28,993 (29,798)
Income tax expense (benefit) . . . . . . . . . . . . . . . 10,755 (9,741)
----------------------------------------- -------------------
Income (loss) before extraordinary items . . . . . . . . . 18,238 (20,057)
Extraordinary items, net of income taxes (7) . . . . . . . - (1,911)
----------------------------------------- -------------------
Net income (loss). . . . . . . . . . . . . . . . . . . . . $ 18,238 $ (21,968)
========================================= ===================
Per share data - diluted:
Income (loss) before extraordinary items . . . . . . . . . $ 0.60 $ (0.71)
Extraordinary items, net of income taxes . . . . . . . . . $ - $ (0.07)
Net income (loss). . . . . . . . . . . . . . . . . . . . . $ 0.60 $ (0.78)
Weighted average diluted common shares (8) . . . . . . . . 30,133 28,327
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Fiscal Year Ended
APRIL 27, APRIL 28,
2003 2002
----------- -----------
Revenues:
Casino . . . . . . . . . . . . . . . . . . . . . . . . . $1,051,485 $1,056,967
Hotel, pari-mutuel, food, beverage & other. . . . . . . 213,973 231,678
----------- -----------
Gross revenues . . . . . . . . . . . . . . . . . . . . . 1,265,458 1,288,645
Less promotional allowances. . . . . . . . . . . . . . . 199,727 203,334
----------- -----------
Net revenues . . . . . . . . . . . . . . . . . . . . . . . 1,065,731 1,085,311
Operating and other expenses:
Properties (1)(2). . . . . . . . . . . . . . . . . . . . 801,041 825,580
Corporate and new development. . . . . . . . . . . . . . 22,372 18,326
Preopening (3) . . . . . . . . . . . . . . . . . . . . . - 3,871
Valuation charge (4) . . . . . . . . . . . . . . . . . . 1,923 61,362
Depreciation and amortization. . . . . . . . . . . . . . 76,626 72,064
----------- -----------
Total operating and other expenses . . . . . . . . . . . . 901,962 981,203
Operating income (loss). . . . . . . . . . . . . . . . . . 163,769 104,108
Equity in loss of unconsolidated
joint venture. . . . . . . . . . . . . . . . . . . . . . - (38)
Net interest expense (5) . . . . . . . . . . . . . . . . . (82,003) (88,327)
Minority interest (6). . . . . . . . . . . . . . . . . . . (9,451) (7,676)
----------- -----------
Income (loss) before income taxes and extraordinary items. 72,315 8,067
Income tax expense (benefit) . . . . . . . . . . . . . . . 26,722 3,753
----------- -----------
Income (loss) before extraordinary items . . . . . . . . . 45,593 4,314
Extraordinary items, net of income taxes (7) . . . . . . . - (4,349)
----------- -----------
Net income (loss). . . . . . . . . . . . . . . . . . . . . $ 45,593 $ (35)
=========== ===========
Per share data - diluted:
Income (loss) before extraordinary items . . . . . . . . . $ 1.50 $ 0.15
Extraordinary items, net of income taxes . . . . . . . . . $ - $ (0.15)
Net income (loss). . . . . . . . . . . . . . . . . . . . . $ 1.50 $ -
Weighted average diluted common shares (8) . . . . . . . . 30,452 29,765
(1)For the fiscal year ended April 28, 2002, amount includes $3.4 million
for the Rhythm City-Davenport and $0.75 million for the Isle-Marquette related
to business interruption insurance proceeds.
(2)For the fiscal year ended April 27, 2003, amount includes $2.6 milion in
insurance proceeds for a litigation settlement that was expensed in the fiscal
year ended April 28, 2002.
(3)For the fiscal year ended April 28, 2002, preopening relates to expenses
incurred in preparation for the opening of the Isle-Boonville on December 6,
2001.
(4)For the quarter and fiscal year ended April 27, 2003, the company fully
reserved its investment in Ardent Gaming, L.L.C., an unrelated third-party. The
system being developed under the joint venture is substantially past due and
management believes it is probable that it will not recover its investment.
Valuation charge for the fiscal year ended April 28, 2002, consists of
impairment charges of $59.2 million for the difference between net book value of
the Lady Luck-Las Vegas and the Isle-Tunica and fair value less any costs to
sell, and $2.2 million for a barge and hulls that have been in storage for
future development which are offered for sale.
(5)Consolidated net interest expense is comprised of the following
components:
THREE MONTHS ENDED FISCAL YEAR ENDED
APRIL 27, APRIL 28, APRIL 27, APRIL 28,
2003 2002 2003 2002
-------------------- ------------------- ----------- -----------
(In thousands)
Interest expense . . . . $ 20,442 $ 21,059 $ 82,734 $ 90,476
Interest income. . . . . (362) (209) (562) (850)
Capitalized interest . . (99) (12) (169) (1,299)
-------------------- ------------------- ----------- -----------
Net interest expense. $ 19,981 $ 20,838 $ 82,003 $ 88,327
==================== =================== =========== ===========
Included in the consolidated interest is the Isle-Black Hawk's, the Colorado
Central Station-Black Hawk's and the Colorado Grande-Cripple Creek's net
interest expense that is comprised of the following:
THREE MONTHS ENDED FISCAL YEAR ENDED
APRIL 27, APRIL 28, APRIL 27, APRIL 28,
2003 2002 2003 2002
-------------------- ------------------- ----------- -----------
(In thousands)
Interest expense . . . . $ 1,417 $ 1,474 $ 5,629 $ 9,892
Interest income. . . . . (1) (5) (14) (171)
Capitalized interest . . - - - -
-------------------- ------------------- ----------- -----------
Net interest expense. $ 1,416 $ 1,469 $ 5,615 $ 9,721
==================== =================== =========== ===========
(6)Minority interest represents the portion of the Isle-Black Hawk's,
Colorado Central Station-Black Hawk's and Colorado Grande-Cripple Creek's income
before income taxes owned by an unrelated third-party.
(7)For the fiscal year ended April 28, 2002, extraordinary items, net of
income taxes, of $4.3 million consists of costs associated with the
extinguishment of debt related to the refinancing of the Isle-Black Hawk's $75.0
million 13 percent First Mortgage Notes on December 17, 2001, and the
refinancing of Isle of Capri's Amended and Restated Credit Facility on March 27,
2002.
(8)Due to the net loss for the quarter ended April 28, 2002, net loss
per diluted common share excludes the potentially dilutive effect of
approximately 2.0 million shares primarily related to unexercised stock options.
Had these shares been included in the computation, net loss per diluted common
share would have been $0.73.
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
--------------------
APRIL 27,
2003
--------------------------------------------------------------------
NET REVENUES (1) ADJUSTED EBITDA (2) ADJUSTED EBITDA MARGIN %
- ---------------------------------------------------- -------------------- ------------------------- ----------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . $ 21,026 $ 5,402 25.7%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . 9,427 2,843 30.2%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . 14,420 4,466 31.0%
LULA . . . . . . . . . . . . . . . . . . . . . . . . 25,147 7,026 27.9%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . 29,574 7,944 26.9%
LAKE CHARLES (3). . . . . . . . . . . . . . . . . . 43,874 12,810 29.2%
BLACK HAWK (4) . . . . . . . . . . . . . . . . . . . 25,221 9,959 39.5%
COLORADO CENTRAL
STATION (5)(6). . . . . . . . . . . . . . . . . . 910 221 24.3%
COLORADO GRANDE (6)(7) . . . . . . . . . . . . . . . 167 60 35.9%
BETTENDORF . . . . . . . . . . . . . . . . . . . . . 24,793 9,528 38.4%
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . 15,527 3,952 25.5%
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . 9,285 1,785 19.2%
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . 24,321 6,008 24.7%
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . 16,615 4,747 28.6%
CORPORATE &
OTHER (8)(9). . . . . . . . . . . . . . . . . . . 15,570 (3,112) N/M
-------------------- ------------------------- ----------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . $ 275,877 $ 73,639 26.7%
==================== ========================= ================
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
--------------------
APRIL 28,
2002
--------------------------------------------------------------------
NET REVENUES (1) ADJUSTED EBITDA (2) ADJUSTED EBITDA MARGIN %
- ---------------------------------------------------- -------------------- ------------------------- ----------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . $ 22,530 $ 6,971 30.9%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . 9,586 3,390 35.4%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . 15,759 5,127 32.5%
LULA . . . . . . . . . . . . . . . . . . . . . . . . 25,960 9,553 36.8%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . 33,226 8,847 26.6%
LAKE CHARLES (3). . . . . . . . . . . . . . . . . . 49,035 10,371 21.2%
BLACK HAWK (4) . . . . . . . . . . . . . . . . . . . 26,874 8,589 32.0%
COLORADO CENTRAL
STATION (5)(6). . . . . . . . . . . . . . . . . . 955 238 24.9%
COLORADO GRANDE (6)(7) . . . . . . . . . . . . . . . 135 24 17.8%
BETTENDORF . . . . . . . . . . . . . . . . . . . . . 23,972 7,419 30.9%
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . 15,394 4,103 26.7%
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . 9,878 2,747 27.8%
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . 23,955 6,707 28.0%
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . 16,303 2,526 15.5%
CORPORATE &
OTHER (8)(9). . . . . . . . . . . . . . . . . . . 27,262 (2,876) N/M
-------------------- ------------------------- -----------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . $ 300,824 $ 73,736 24.5%
==================== ========================= =================
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
--------------------
APRIL 27,
2003
--------------------------------------------------------------------
NET REVENUES (1) ADJUSTED EBITDA (2) ADJUSTED EBITDA MARGIN %
- ---------------------------------------------------- -------------------- ------------------------- ----------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . $ 81,181 $ 19,605 24.1%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . 33,779 8,872 26.3%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . 55,673 16,045 28.8%
LULA . . . . . . . . . . . . . . . . . . . . . . . . 92,568 26,117 28.2%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . 116,808 26,567 22.7%
LAKE CHARLES (3). . . . . . . . . . . . . . . . . . 169,495 44,004 26.0%
BLACK HAWK (4) . . . . . . . . . . . . . . . . . . . 103,801 38,575 37.2%
COLORADO CENTRAL
STATION (5)(6). . . . . . . . . . . . . . . . . . 910 221 24.3%
COLORADO GRANDE (6)(7) . . . . . . . . . . . . . . . 167 60 35.9%
BETTENDORF . . . . . . . . . . . . . . . . . . . . . 95,334 30,979 32.5%
DAVENPORT (10). . . . . . . . . . . . . . . . . . . 59,446 12,385 20.8%
MARQUETTE (10) . . . . . . . . . . . . . . . . . . . 38,178 8,175 21.4%
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . 91,971 18,522 20.1%
BOONVILLE (11) . . . . . . . . . . . . . . . . . . . 62,401 15,349 24.6%
CORPORATE &
OTHER (8)(9). . . . . . . . . . . . . . . . . . . 64,019 (23,158) N/M
-------------------- ------------------------- ----------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . $ 1,065,731 $ 242,318 22.7%
==================== ========================= ================
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
--------------------
APRIL 28,
2002
--------------------------------------------------------------------
NET REVENUES (1) ADJUSTED EBITDA (2) ADJUSTED EBITDA MARGIN %
- ---------------------------------------------------- -------------------- ------------------------- ----------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . $ 81,739 $ 21,852 26.7%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . 35,249 10,708 30.4%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . 58,192 18,543 31.9%
LULA . . . . . . . . . . . . . . . . . . . . . . . . 90,584 24,964 27.6%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . 120,112 28,808 24.0%
LAKE CHARLES (3). . . . . . . . . . . . . . . . . . 193,895 50,944 26.3%
BLACK HAWK (4) . . . . . . . . . . . . . . . . . . . 108,288 36,644 33.8%
COLORADO CENTRAL
STATION (5)(6). . . . . . . . . . . . . . . . . . 955 238 24.9%
COLORADO GRANDE (6)(7) . . . . . . . . . . . . . . . 135 24 17.8%
BETTENDORF . . . . . . . . . . . . . . . . . . . . . 95,358 28,977 30.4%
DAVENPORT (10). . . . . . . . . . . . . . . . . . . 57,225 12,046 21.1%
MARQUETTE (10) . . . . . . . . . . . . . . . . . . . 37,017 8,991 24.3%
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . 89,057 16,776 18.8%
BOONVILLE (11) . . . . . . . . . . . . . . . . . . . 25,894 4,180 16.1%
CORPORATE &
OTHER (8)(9). . . . . . . . . . . . . . . . . . . 92,701 (22,028) N/M
-------------------- ------------------------- ----------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . $ 1,086,401 $ 241,667 22.2%
==================== ========================= ================
(1) Net revenues are presented net of complimentaries, slot points expense
and cash coupon redemptions.
(2) EBITDA is "earnings before interest, income taxes, depreciation and
amortization." Isle of Capri calculates Adjusted EBITDA by adding depreciation
and amortization expense, preopening expense and non-cash items to operating
income. Adjusted EBITDA is a supplemental financial measurement used by Isle of
Capri's management, as well as industry analysts, in the evaluation of its
businesses. Adjusted EBITDA is not presented as an alternative measure of
operating income or cash flow from operations (as determined in accordance with
accounting principles generally accepted in the United States (GAAP)). All
companies do not calculate Adjusted EBITDA in the same manner. As a result,
Adjusted EBITDA as presented here may not be comparable to similarly titled
Measures reported by other companies. Adjusted EBITDA Margin is calculated by
Dividing Adjusted EBITDA by net revenues. A reconciliation of operating
income as determined in accordance with GAAP to Adjusted EBITDA and operating
income as a percentage of net revenues is shown below.
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
----------------------------
APRIL 27, 2003
----------------------------
OPERATING INCOME (LOSS)(13) DEPRECIATION &
AMORTIZATION
---------------------------- -------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,363 $ 2,039
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,185 658
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,223 1,243
LULA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,597 2,429
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . . . . . . . 6,032 1,912
LAKE CHARLES . . . . . . . . . . . . . . . . . . . . . . . . . . 10,166 2,644
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,054 1,905
COLORADO CENTRAL . . . . . . . . . . . . . . . . . . . . . . . .
STATION (6) . . . . . . . . . . . . . . . . . . . . . . . . . 221 -
COLORADO . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GRANDE (6). . . . . . . . . . . . . . . . . . . . . . . . . . 60 -
BETTENDORF . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,697 1,831
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,277 1,675
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,006 779
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,538 1,470
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,291 1,456
CORPORATE &. . . . . . . . . . . . . . . . . . . . . . . . . . . -
OTHER (12). . . . . . . . . . . . . . . . . . . . . . . . . . (5,581) 546
---------------------------- -------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,129 $ 20,587
============================ =============
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
----------------------------
APRIL 27, 2003
----------------------------
PREOPENING & NON-CASH ITEMS ADJUSTED EBITDA OPERATING INCOME MARGIN %
---------------------------- ----------------- -------------------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . .. $ - $ 5,402 16.0%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . - 2,843 23.2%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . - 4,466 22.4%
LULA . . . . . . . . . . . . . . . . . . . . . . . . . - 7,026 18.3%
BOSSIER CITY . . . . . . . . . . . . . . . . . .. . . . - 7,944 20.4%
LAKE CHARLES . . . . . . . . . . . . . . . . . .. . . . - 12,810 23.2%
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . - 9,959 31.9%
COLORADO CENTRAL
STATION (6) . . . . . . . . . . . . . . . . . . . . - 221 24.3%
COLORADO
GRANDE (6). . . . . . . . . . . . . . . . . . . . . - 60 35.9%
BETTENDORF . . . . . . . . . . . . .. . . . . . . . . . - 9,528 31.0%
DAVENPORT. . . . . . . . . . . . . .. . . . . . . . . . - 3,952 14.7%
MARQUETTE. . . . . . . . . . . . . .. . . . . . . . . . - 1,785 10.8%
KANSAS CITY. . . . . . . . . . . . .. . . . . . . . . . - 6,008 18.7%
BOONVILLE. . . . . . . . .. . . . . . . . . . . . . . . - 4,747 19.8%
CORPORATE &
OTHER (12). . . . . . .. . . . . . . . . . . . . . . 1,923 (3,112) N/M
---------------------------- ----------------- -------------------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . $ 1,923 $ 73,639 18.5%
============================ ================= =========================
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
----------------------------
APRIL 28, 2002
----------------------------
OPERATING INCOME (LOSS)(13) DEPRECIATION &
AMORTIZATION
---------------------------- -------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,448 $ 1,523
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,820 570
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . . . . 4,033 1,094
LULA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,294 2,259
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . . . . . 6,884 1,963
LAKE CHARLES . . . . . . . . . . . . . . . . . . . . . . . . 7,938 2,433
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . . . . 7,429 1,160
COLORADO CENTRAL . . . . . . . . . . . . . . . . . . . . . .
STATION (6) . . . . . . . . . . . . . . . . . . . . . . . . . 57 181
COLORADO . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GRANDE (6). . . . . . . . . . . . . . . . . . . . . . . . . . 15 9
BETTENDORF . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,872 1,547
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,595 1,508
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,035 712
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . . . . . . . 5,586 1,121
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,111 1,415
CORPORATE &. . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER (12). . . . . . . . . . . . . . . . . . . . . . . . . . (65,915) 1,677
---------------------------- -------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ (6,798) $ 19,172
============================ =============
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
----------------------------
APRIL 28, 2002
----------------------------
PREOPENING & NON-CASH ITEMS ADJUSTED EBITDA OPERATING INCOME MARGIN %
---------------------------- ----------------- -------------------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . $ - $ 6,971 24.2%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . .. . - 3,390 29.4%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . .. . - 5,127 25.6%
LULA . . . . . . . . . . . . . . . . . . . . . . . .. . - 9,553 28.1%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . .. . - 8,847 20.7%
LAKE CHARLES . . . . . . . . . . . . . . . . . . . .. . - 10,371 16.2%
BLACK HAWK . . . . . . . . . . . . . . . . . . . . .. . - 8,589 27.6%
COLORADO CENTRAL
STATION (6) . . . . . . . . . . . . . . . . . . .. . - 238 6.0%
COLORADO
GRANDE (6). . . . . . . . . . . . . . . . . . . . . - 24 11.1%
BETTENDORF . . . . . . . . . . . . . . . . . . . .. . . - 7,419 24.5%
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . - 4,103 16.9%
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . - 2,747 20.6%
KANSAS CITY. . . . . . . . . . . . . . . . . .. . . . . - 6,707 23.3%
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . . - 2,526 6.8%
CORPORATE &
OTHER (12). . . . . . . . . . . . . . . . . . . . . 61,362 (2,876) N/M
---------------------------- ----------------- ------------------------
.. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,362 $ 73,736 -2.3%
============================ ================= =========================
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
----------------------------
APRIL 27, 2003
----------------------------
OPERATING INCOME (LOSS)(13) DEPRECIATION &
AMORTIZATION
---------------------------- -------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,730 $ 6,875
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,706 2,166
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,293 4,752
LULA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,731 9,386
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . . . . . . . 18,634 7,933
LAKE CHARLES . . . . . . . . . . . . . . . . . . . . . . . . . . 33,407 10,597
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,720 5,855
COLORADO CENTRAL . . . . . . . . . . . . . . . . . . . . . . . .
STATION (6) . . . . . . . . . . . . . . . . . . . . . . . . . 221 -
COLORADO . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GRANDE (6). . . . . . . . . . . . . . . . . . . . . . . . . . 60 -
BETTENDORF . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,078 6,901
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,977 6,408
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,147 3,028
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . . . . . . . 13,276 5,246
BOONVILLE (11) . . . . . . . . . . . . . . . . . . . . . . . . . 9,705 5,644
CORPORATE &. . . . . . . . . . . . . . . . . . . . . . . . . . . -
OTHER (12). . . . . . . . . . . . . . . . . . . . . . . . . . (26,916) 1,835
---------------------------- -------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 163,769 $ 76,626
============================ =============
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
----------------------------
APRIL 27, 2003
----------------------------
PREOPENING & NON-CASH ITEMS ADJUSTED EBITDA OPERATING INCOME MARGIN %
---------------------------- ----------------- -------------------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . $ - $ 19,605 15.7%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . - 8,872 19.9%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . - 16,045 20.3%
LULA . . . . . . . . . . . . . . . . . . . . . . . . . - 26,117 18.1%
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . . - 26,567 16.0%
LAKE CHARLES . . . . . . . . . . . . . . . . . . . . . - 44,004 19.7%
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . - 38,575 31.5%
COLORADO CENTRAL
STATION (6) . . . . . . . . . . . . . . . . . . . . - 221 24.3%
COLORADO
GRANDE (6). . . . . . . . . . . . . . . . . . . . . - 60 35.9%
BETTENDORF . . . . . . . . . . . . . . . . . . . . . . - 30,979 25.3%
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . - 12,385 10.1%
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . - 8,175 13.5%
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . . - 18,522 14.4%
BOONVILLE (11) . . . . . . . . . . . . . . . . . . . . - 15,349 15.6%
CORPORATE & OTHER (12). . . . . . . . . . . . . . . . 1,923 (23,158) N/M
---------------------------- ----------------- -------------------------
TOTAL. . . . . . . . . . . . . . . . . . . .. . . . . $ 1,923 $ 242,318 15.4%
============================ ================= =========================
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
APRIL 28, 2002
----------------------------
OPERATING INCOME (LOSS)(13) DEPRECIATION &
AMORTIZATION
---------------------------- -------------
BILOXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,172 $ 5,680
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,712 1,996
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,473 4,070
LULA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,480 9,484
BOSSIER CITY . . . . . . . . . . . . . . . . . . . . . . . . . . 21,329 7,479
LAKE CHARLES . . . . . . . . . . . . . . . . . . . . . . . . . . 41,114 9,830
BLACK HAWK . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,378 4,266
COLORADO CENTRAL . . . . . . . . . . . . . . . . . . . . . . . .
STATION (6) . . . . . . . . . . . . . . . . . . . . . . . . . 57 181
COLORADO . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GRANDE (6). . . . . . . . . . . . . . . . . . . . . . . . . . 15 9
BETTENDORF . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,677 6,300
DAVENPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,998 6,048
MARQUETTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,250 2,741
KANSAS CITY. . . . . . . . . . . . . . . . . . . . . . . . . . . 12,552 4,224
BOONVILLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,860) 2,169
CORPORATE &. . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER (12). . . . . . . . . . . . . . . . . . . . . . . . . . (91,167) 7,777
---------------------------- -------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 104,180 $ 72,254
============================ =============
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME TO EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
FISCAL YEAR ENDED
----------------------------
APRIL 28, 2002
----------------------------
PREOPENING & NON-CASH ITEMS ADJUSTED EBITDA OPERATING INCOME MARGIN %
---------------------------- ----------------- -------------------------
BILOXI .. . . . . . . . . . . . . . . . . . . . . . . . $ - $ 21,852 19.8%
NATCHEZ. . . . . . . . . . . . . . . . . . . . . . . . - 10,708 24.7%
VICKSBURG. . . . . . . . . . . . . . . . . . . . . . . - 18,543 24.9%
LULA . . . . . . . . . . . . . . . . . . . . . . . . . - 24,964 17.1%
BOSSIER CITY . . . . . . . . . .. . . . . . . . . . . . - 28,808 17.8%
LAKE CHARLES . . . . . . . . . .. . . . . . . . . . . . - 50,944 21.2%
BLACK HAWK . . . . . . . . . . .. . . . . . . . . . . . - 36,644 29.9%
COLORADO CENTRAL
STATION (6) . . . . . . . . .. . . . . . . . . . . . - 238 6.0%
COLORADO
GRANDE (6). . . . . . . . . .. . . . . . . . . . . . - 24 11.1%
BETTENDORF . . . . . . . . . . .. . . . . . . . . . . . - 28,977 23.8%
DAVENPORT. . . . . . . . . . . .. . . . . . . . . . . . - 12,046 10.5%
MARQUETTE. . . . . . . . . . . .. . . . . . . . . . . . - 8,991 16.9%
KANSAS CITY. . . . . . . . . . .. . . . . . . . . . . . - 16,776 14.1%
BOONVILLE. . . . . . . . . . . .. . . . . . . . . . . . 3,871 4,180 -7.2%
CORPORATE &
OTHER (12). . . . . . . . . .. . . . . . . . . . . . 61,362 (22,028) N/M
---------------------------- ----------------- -------------------------
TOTAL. . . . . . . . . . . . . . . . . . . .. . . . . $ 65,233 $ 241,667 9.6%
============================ ================= =========================
(3)For the year ended April 27, 2003, amount includes $2.6 million income
for the Isle-Lake Charles
related to insurance proceeds for a litigation settlement that was expensed in
the fiscal year ended April 28, 2002.
(4)As management fees are eliminated in consolidation, the Isle-Black
Hawk's Adjusted EBITDA does not include management fees of $1.6 million, $1.2
million, $5.1 million and $4.8 million for the three and twelve months ended
April 27, 2003, and April 28, 2002, respectively. If these charges been
included, the Isle-Black Hawk's Adjusted EBITDA would have been $8.3 million,
$7.4 million, $33.4 million and $31.8 million for the three and twelve months
ended April 27, 2003, and April 28, 2002, respectively.
(5)As management fees are eliminated in consolidation, the Colorado Central
Station-Black Hawk's Adjusted EBITDA does not include management fees of $43,000
for the three and twelve months ended April 27, 2003. If this charge been
included, the Colorado Central Station-Black Hawk's Adjusted EBITDA would have
been $178,000 for the three and twelve months ended April 27, 2003.
(6)These properties were acquired by Isle of Capri Casinos, Inc. on April
22, 2003. The prior year results are shown pro forma and are for comparative
purposes only. Consolidated results for the three and twelve months ended April
27, 2003, do not include results prior to the acquisition date.
(7)As management fees are eliminated in consolidation, the Colorado
Grande-Cripple Creek's Adjusted EBITDA does not include management fees of
$8,000 for the three and twelve months ended April 27, 2003. If this charge
would have been included, the Colorado Grande-Cripple Creek's Adjusted EBITDA
would have been $52,000 for the three and twelve months ended April, 27
2003.
(8)N/M = Not meaningful.
(9)Corporate and other includes the Isle-Tunica, the Lady Luck-Las Vegas
and Pompano Park. The Isle-Tunica ceased casino operations on September 3,
2002, which was 33 days prior to the sale of assets to Boyd Casino Strip, LLC on
October 7, 2002. On October 30, 2002, the Isle of Capri completed the sale of
the Lady Luck-Las Vegas but will continue to operate the casino until the
purchaser's designated gaming operator receives regulatory approval. As a
result, the results of operations include the gaming operations for the Lady
Luck-Las Vegas for the period presented.
(10)Adjusted EBITDA for the fiscal year ended April 28, 2002, includes $3.4
million and $0.75 million business interruption insurance proceeds, as a full
settlement, for the Rhythm City-Davenport and the Isle-Marquette, respectively.
(11)The Isle-Boonville opened December 6, 2001. For the twelve months ended
April 28, 2002, Adjusted EBITDA does not include $3.9 million, for preopening
expenses.
(12)For the quarter and fiscal year ended April 27, 2003, valuation charge
represents an amount that is fully reserved as a loss contingency against the
investment to date in Ardent Gaming, L.L.C., an unrelated third-party. The
system being developed under the joint venture is substantially past due and
management has reasonable doubt that it will recover its investment. Valuation
charge for the fiscal year ended April 28, 2002, consists of impairment charges
of $59.2 million for the difference between net book value of the Lady Luck-Las
Vegas and the Isle-Tunica and fair value less any costs to sell, and $2.2
million for a barge and hulls that have been in storage for future development
which are offered for sale.
(13)Operating income (loss) does not include management fees as these
charges are eliminated in consolidation.
Isle of Capri Casinos, Inc. owns and operates 15 riverboat, dockside and
land-based casinos at 14 locations, including Biloxi, Vicksburg, Lula and
Natchez, Mississippi; Bossier City and Lake Charles (two riverboats), Louisiana;
Black Hawk, Colorado Central Station and Colorado Grande, Colorado; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The
company also 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 such reports with, or furnish them 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 28, 2002 and on Form 10-Q for the quarter ended January 26, 2003.