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Isle of Capri Casinos, Inc. Announces Third Quarter Results and New Chief Executive Officer* Jim Perry Named CEO, Bernard Goldstein Remains Chairman* Company Introduces First Phase of Strategic Positioning
ST. LOUIS, March 5 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. NASDAQ: ISLE today reported financial results for the third fiscal quarter ended January 27, 2008, and announced that Jim Perry, a seasoned gaming industry executive, will become the Company's Chief Executive Officer on March 10, replacing Bernard Goldstein in that position.
Three Months Ended Nine Months Ended
January 27, January 28, January 27, January 28,
2008 2007 2008 2007
Net revenues $269.7 $230.8 $827.0 $748.0
Income (loss) from
continuing operations (13.8) (9.3) (45.6) (8.2)
EBITDA (1) 40.2 33.7 122.5 125.8
Net income (loss) (13.8) (8.9) (45.6) 10.0
Income (loss) per share
from continuing
operations (0.45) (0.31) (1.49) (0.27)
A detailed discussion of third quarter operations appears later in this press release. Bernard Goldstein, chairman of the board and chief executive officer, commented: "Since joining our board last July, Jim Perry has served as the chair of a joint strategic committee comprised of members of our Board and our management team. Our goal was to develop a plan to make our assets more competitive, more closely align our operating strategy with the needs of our customers and strengthen our balance sheet. I firmly believe that the strategic plan developed under his leadership will serve as a platform for the future growth of the company. As such, I am announcing my retirement from the position of chief executive officer and it is my pleasure to announce the appointment of Jim Perry to the position of Executive Vice Chairman and CEO, effective March 10, subject to regulatory approval. "Along with President and Chief Operating Officer Virginia McDowell and the rest of the senior management team, our employees and investors are in the capable hands of a team that is known for financial discipline and operational excellence. It has been my pleasure to watch the company grow since our first casino opened in 1992. We have assembled a talented and respected team to ensure that the company continues to grow into the future. I look forward to working with them, and will continue to serve as Chairman of the Board as we implement our strategic plan," Goldstein continued. Over the past decade, Perry has served as the president, chief executive officer and as a member of the board of directors at both Trump Entertainment Resorts and Argosy Gaming Company. With nearly 30 years of experience leading major gaming operations and companies in regional and destination markets, he is recognized as one of the gaming industry's most distinguished executives. During Perry's tenure at Argosy, the company built one of the strongest balance sheets in gaming, was an industry leader in EBITDA margins, and was recognized by several leading publications for record earnings growth and financial stability. "Bernie Goldstein and the Isle board of directors have offered me a wonderful opportunity to work with a very talented team, to continue to enhance the value of the company for our shareholders, improve the gaming experience for our customers, and build a strong company with opportunity for our employees. I appreciate both their support and their confidence in me," Perry said. "The main components of the strategic plan are to focus on organic growth opportunities, and to consolidate our portfolio into two brands based on a variety of factors, including the size of the facility, amenities, and the size of the primary markets served," Perry explained. "Our Isle brand will feature regional facilities with hotel rooms and convention facilities designed for both business and leisure travelers, with upgraded amenities, all of which will complement our casino product. Based on a significant market research project conducted with our database customers, we will reintroduce Lady Luck as the brand for our smaller facilities that serve more local markets." Perry continued, "The strategic committee is continuing to work with the board of directors on the approval of the major projects associated with the re-branding, the timing of which will occur over the next few years. The first Isle properties will include Biloxi, where planning is nearly complete on Phase One of the master plan, and Bettendorf, where the company is beginning the planning process for a land-based casino which will be located between the existing two hotel towers. We expect that the expanded Bettendorf facility will be connected by a sky bridge to the new 50,000 square foot convention center being jointly developed by the City of Bettendorf and Isle of Capri, which the City expects to open later this year. Caruthersville will become the first Lady Luck property by June 2008." Virginia McDowell, president and chief operating officer, added, "We have a tremendous opportunity to unlock shareholder value by further improving operating results. We have made progress over the course of fiscal 2008, most notably in Black Hawk, the Quad Cities and Boonville. Despite pressure on the economy, EBITDA and margins have continued to improve at several properties year over year. In addition, we continue to re-engineer our business processes at both the corporate and property levels. A reorganization at the corporate office, during the third quarter, included a reduction in the workforce and the introduction of cost saving programs which we expect, when fully implemented, will result in expense reductions of over $3.0 million annually. In addition, we are continuing to evaluate, consulting agreements and agreements with outside contractors for additional expense reduction opportunities. "At the property level, we continue to identify margin improvement opportunities. In many cases, programs eliminated at the corporate level represent a direct savings to the operating units. We recognize, however, that companies cannot save their way to success and we continue to reallocate our resources in order to improve the overall guest experience, target more profitable customers and increase revenue. In line with our strategic objectives, we will build our brands around our customers, and create experiences for our guests based upon what is important to them." Third Quarter Operating Highlights The Company reported a loss from continuing operations for the third quarter of fiscal 2008 of $13.8 million or $0.45 per diluted common share compared to a loss from continuing operations of $8.9 million or $0.31 per diluted common share for the third quarter of fiscal 2007. Our results of operations for the three and nine month periods ended January 27, 2008 and January 28, 2007 reflect the consolidated operations of all of our subsidiaries. The Vicksburg and Bossier City properties are reflected as discontinued operations for the periods prior to their sale in July 2006. During the quarter ended January 27, 2008 net revenues increased by $38.8 million or 16.8% as compared to the third quarter of fiscal 2007. Net revenues increased a combined $63.0 million in Pompano, Florida, Waterloo, Iowa, Caruthersville, Missouri and Coventry, England each of which has originated casino operations or been acquired subsequent to the third quarter of fiscal 2007. EBITDA(1) for the third quarter of fiscal 2008 was $40.3 million compared to $33.7 million for the third quarter of fiscal 2007. Property EBITDA(1) for the third quarter of fiscal 2008 increased 7.6% to $52.8 million compared to Property EBITDA of $48.7 million for the comparable quarter in fiscal 2007. EBITDA at our new casino operations was $5.5 million including negative EBITDA of $1.7 million in Coventry. In addition, our Lake Charles property benefited from a $2.2 million gain related to business interruption insurance proceeds in the third quarter of fiscal 2007. Also impacting Property EBITDA comparisons in the third quarter was $2.5 million of combined pre-opening expenses in fiscal 2007 related to the Pompano, Waterloo and Coventry operations. A discussion of overall results by state for the three months ended January 27, 2008 compared to the three months ended January 28, 2007 is set forth below: Mississippi -- Our three continuing casino operations contributed 17.1% of our net revenues for the three months ended January 27, 2008. Net revenues and EBITDA at our Biloxi property decreased significantly from abnormally high prior year operating results due to increased competition in the market as competitors have re-opened after closures caused by Hurricane Katrina. Our Natchez property continues to experience decreases in both net revenues and EBITDA primarily resulting from the re-opening of competing casinos along the Gulf Coast and increased competition impacting certain of the properties outlying primary feeder markets. The combined EBITDA margins at our Mississippi properties decreased from 24.5% in the third quarter of fiscal 2007 to 21.7% this quarter. Louisiana -- Our Lake Charles property contributed 14.1% of our net revenues for the three months ended January 27, 2008. Lake Charles experienced a decrease in net revenues due to increased competition in the market as competitors have fully re-opened following closures caused by Hurricane Rita and post hurricane normalization of population levels in the property's feeder markets. Our EBITDA for the three months ended January 28, 2007 included $2.2 million in income from settlement of certain hurricane related claims. Before consideration of the fiscal 2007 $2.2 million insurance settlement income, EBITDA increased at Lake Charles in the third quarter by $0.4 million and EBITDA margins improved from 18.6% to 22.4%. Missouri -- Our three casinos in Missouri contributed 15.9% of our net revenues and EBITDA for the three months ended January 27, 2008. Net revenues increased primarily due to the acquisition of the Caruthersville property on June 11, 2007. A decrease in net revenues at Kansas City is due to competition within the market and the opening of a new hotel by one of our competitors. EBITDA margins at the Missouri properties were a combined 23.8% in the quarter compared to 23.5% in Kansas City and Boonville in the third quarter of 2007. Iowa -- Our four casinos in Iowa contributed 21.5% of our net revenues for the three months ended January 27, 2008. Net revenues and income from operations increased primarily due to the opening of the Waterloo property on June 30, 2007. Waterloo contributed $18.4 million in net revenue and $3.4 million in EBITDA for the third quarter of fiscal 2008. Our two Quad Cities properties had combined net revenues of $33.2 million, a decrease of $1.0 million from the third quarter of fiscal 2007. EBITDA in the Quad Cities was $9.1 million and EBITDA margins were 27.4% compared to $7.9 million and 23.0%, respectively. Colorado -- Our two casinos in Black Hawk, Colorado contributed 12.4% of our net revenues for the three months ended January 27, 2008. Our Colorado properties experienced minor decreases in net revenues primarily due to a planned reduction in complimentary allowances. Combined EBITDA increased at the Colorado properties to $10.5 million from $9.8 million and margins increased from 28.3% to 31.3% due to decreases in marketing expenses and overall cost control efforts. Florida -- The Pompano Park racetrack and casino contributed 15.3% of our net revenues for the three months ended January 27, 2008. Net revenues and EBITDA reflect the opening of the slot gaming facility on April 14, 2007. EBITDA for the third quarter of 2007 includes $1.5 million in pre-opening EBITDA expenses. International Operations -- Net revenues increased primarily due to the opening of the Coventry, England property in July 2007. EBITDA for the three months ended January 28, 2007 includes $0.7 million in pre-opening costs. Corporate and Development -- Corporate and development expenses decreased to $11.8 million for the quarter ended January 27, 2008 from $14.6 million for the comparable period last year. Included in fiscal 2007 corporate and development expenses were $4.9 million of development costs primarily associated with our development efforts in Pittsburgh and Singapore
Other significant factors impacting net income are as follows:
1. Stock based compensation expense was $1.7 million in the third quarter
of 2008 versus $1.5 million in 2007.
2. Depreciation and amortization expense increased from $24.6 million to
$34.9 million due to the Pompano, Waterloo, Caruthersville and Coventry
assets being placed in service.
3. Interest expense increased $5.3 million to $27.5 million due to higher
average borrowings.
4. The income tax benefit recorded in the third quarter increased to $7.4
million from $1.9 million during the third quarter of last year.
Capital Structure As of January 27, 2008 we have $117.6 million of cash and cash equivalents and total debt of $1.57 billion. Effective January 27, 2008, we completed the purchase of the 43% minority interest in our Colorado operations, previously owned by our partner, for $64.6 million. On January 28, 2008, we refinanced approximately $187 million of debt that previously existed at the Blackhawk entity through borrowings under our credit facility. We have designated the subsidiaries that operate the Blackhawk operations as "restricted subsidiaries" under the provisions of our credit facility and our 7% subordinated notes. Giving pro forma effect to the transactions described above (as permitted under our credit facility), as of quarter end, we have approximately $155 million of available borrowing capacity under our credit facility. We currently have no capital projects underway, other than routine maintenance capital expenditures. As we begin to implement our strategic plan we will time our capital outlays to match the flexibility of our capital structure Conference Call Isle of Capri Casinos, Inc. will host a conference call and simultaneous web cast today, March 5, 2008, at 2 p.m. central time. The toll-free telephone number to access the call for the U.S. is 800-230-1766. The international telephone number to access the call is 612-332-0226. The conference call reference number is 913115.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 27, January 28, January 27, January 28,
2008 2007 2008 2007
Revenues:
Casino $269,480 $233,158 $824,996 $760,015
Rooms 10,674 9,995 37,595 37,965
Pari-mutuel
commissions and fees 4,986 5,057 13,400 13,850
Food, beverage and
other 33,137 32,309 100,808 99,274
Gross revenues 318,277 280,519 976,799 911,104
Less promotional
allowances 48,612 49,680 149,763 163,073
Net revenues 269,665 230,839 827,036 748,031
Operating expenses:
Casino 40,963 38,372 121,656 121,972
Gaming taxes 70,123 49,739 211,160 161,158
Rooms 2,507 2,173 8,852 7,053
Pari-mutuel
commissions and fees 4,436 3,897 11,280 10,793
Food, beverage and
other 10,614 6,928 33,643 23,520
Marine and facilities 16,852 14,233 50,123 44,979
Marketing and
administrative 71,174 64,111 214,173 204,443
Corporate and
development 11,846 14,572 35,839 42,407
Write-offs and other
valuation charges - - 6,526 665
Pre-opening - 2,499 6,457 3,137
Depreciation and
amortization 34,871 24,608 100,698 72,898
Total operating
expenses 263,386 221,132 800,407 693,025
Operating income 6,279 9,707 26,629 55,006
Interest expense (27,548) (22,241) (82,538) (65,691)
Interest income 872 1,814 3,106 5,846
Loss on early
extinguishment of
debt - - (13,660) -
Income (loss) from
continuing operations
before income taxes
and minority interest (20,397) (10,720) (66,463) (4,839)
Income tax
(provision) benefit 7,443 1,940 25,732 (1,247)
Minority interest (895) (566) (4,868) (2,119)
Income (loss) from
continuing operations (13,849) (9,346) (45,599) (8,205)
Income from
discontinued
operations, net
of income taxes - 416 - 18,189
Net income (loss) $(13,849) $(8,930) $(45,599) $9,984
Earnings (loss) per
common share-basic
and diluted:
Income (loss) from
continuing
operations $(0.45) $(0.31) $(1.49) $(0.27)
Income from
discontinued
operations, net of
income taxes - 0.02 - 0.60
Net income (loss) $(0.45) $(0.29) $(1.49) $0.33
Weighted average
basic and diluted
shares 30,836,139 30,371,020 30,651,056 30,378,925
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
January 27, April 29,
2008 2007
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $117,573 $188,114
Marketable securities 20,760 17,169
Accounts receivable, net 22,469 22,527
Insurance receivable, net 10,237 56,040
Income tax receivable 25,773 -
Deferred income taxes 9,735 12,421
Prepaid expenses and other assets 31,788 24,067
Total current assets 238,335 320,338
Property and equipment, net 1,432,888 1,338,570
Other assets:
Goodwill 307,311 297,268
Other intangible assets, net 89,651 74,154
Deferred financing costs, net 15,133 13,644
Restricted cash 6,390 4,637
Prepaid deposits and other 24,021 27,080
Total assets $2,113,729 $2,075,691
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $10,098 $7,594
Accounts payable 25,665 60,460
Accrued liabilities:
Interest 19,223 10,166
Payroll and related 48,162 48,402
Property and other taxes 24,668 23,380
Income taxes - 16,011
Other 53,191 69,728
Total current liabilities 181,007 235,741
Long-term debt, less current maturities 1,560,016 1,410,385
Deferred income taxes 25,307 41,451
Other accrued liabilities 65,241 30,817
Other long-term liabilities 47,813 47,639
Minority interest - 27,836
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:
35,211,496 at January 27, 2008 and
34,682,534 at April 29, 2007 352 347
Class B common stock, $.01 par value;
3,000,000 shares authorized; none issued - -
Additional paid-in capital 186,502 175,132
Retained earnings 109,528 155,127
Accumulated other comprehensive income (9,008) 3,358
287,374 333,964
Treasury stock, 4,732,073 shares at January 27,
2008 and 4,323,555 shares at April 29, 2007 (53,029) (52,142)
Total stockholders' equity 234,345 281,822
Total liabilities and stockholders' equity $2,113,729 $2,075,691
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Nine Months Ended
January 27, January 28, January 27, January 28,
2008 2007 2008 2007
Mississippi
Biloxi $20,072 $28,504 $67,844 $118,970
Natchez 8,699 9,428 27,119 30,224
Lula 17,458 19,662 55,523 60,945
Mississippi Total 46,229 57,594 150,486 210,139
Louisiana
Lakes Charles 38,075 43,517 118,578 128,136
Missouri
Kansas City 17,458 19,925 55,934 60,515
Boonville 18,325 18,987 59,394 59,457
Caruthersville (2) 7,129 - 18,968 -
Missouri Total 42,912 38,912 134,296 119,972
Iowa
Bettendorf 21,061 20,172 67,641 65,599
Davenport 12,158 14,081 38,835 46,319
Marquette 6,695 8,585 25,067 28,964
Waterloo (2) 18,040 - 45,109 -
Iowa Total 57,954 42,838 176,652 140,882
Colorado
Black Hawk/Colorado
Central Station 33,523 34,787 112,052 113,904
Florida
Pompano (2) 41,274 6,604 111,867 16,860
International
Blue Chip 2,254 2,419 6,809 6,310
Coventry (2) 3,182 - 5,158 -
Our Lucaya 4,081 4,058 10,790 11,579
International Total 9,517 6,477 22,757 17,889
Corporate, Development
and Other 181 110 348 249
$269,665 $230,839 $827,036 $748,031
Isle of Capri Casinos, Inc.
Supplemental Data EBITDA(1)
(unaudited, in thousands)
Three Months Ended Nine Months Ended
January 27, January 28, January 27, January 28,
2008 2007 2008 2007
Mississippi
Biloxi $2,683 $5,559 $11,942 $39,994
Natchez 2,724 2,966 8,295 8,877
Lula 4,666 5,634 14,956 15,318
Mississippi Total 10,073 14,159 35,193 64,189
Louisiana
Lakes Charles 8,551 10,325 26,773 27,720
Missouri
Kansas City 2,660 3,564 8,672 9,246
Boonville 5,869 5,605 18,666 16,580
Caruthersville (2) 1,715 - 4,642 -
Missouri Total 10,244 9,169 31,980 25,826
Iowa
Bettendorf 5,895 5,296 20,648 17,875
Davenport 3,215 2,573 9,418 10,926
Marquette 869 1,683 5,693 6,106
Waterloo (2) 3,361 (355) 6,842 (451)
Iowa Total 13,340 9,197 42,601 34,456
Colorado
Black Hawk/Colorado
Central Station 10,506 9,849 38,416 30,888
Florida
Pompano (2) 2,262 (2,995) 4,499 (6,593)
International
Blue Chip (257) 93 (667) (1,375)
Coventry (2) (1,739) (674) (9,994) (906)
Our Lucaya (169) (349) (1,125) (4,147)
International Total (2,165) (930) (11,786) (6,428)
Total Property EBITDA 52,811 48,774 167,676 170,058
Corporate, Development
and Other (11,661) (14,459) (40,349) (42,154)
Minority Interest (895) (566) (4,868) (2,119)
Total EBIDTA $40,255 $33,749 $122,459 $125,785
Isle of Capri Casinos, Inc.
Supplemental Data - Detail of Certain Charges Affecting EBITDA(1)
(unaudited, in thousands)
Three
Months Ended
January 28, 2007
Pre-opening
Expenses
Waterloo $342
Pompano 1,500
Coventry 657
$2,499
Nine Months Ended Nine Months Ended
January 27, 2008 January 28, 2007
Write-offs Write-offs
and and
Pre-opening Valuation Pre-opening Valuation
Expenses Charges Total Expenses Charges Total
Kansas City $- $1,136 $1,136 $- $- $-
Davenport - 532 532 - - -
Waterloo 3,347 - 3,347 423 - 423
Pompano 307 - 307 1,870 - 1,870
Coventry 2,803 - 2,803 844 - 844
Blue Chip - - - - 665 665
Total Properties 6,457 1,668 8,125 3,137 665 3,802
Corporate,
Development and
Other - 4,858 4,858 - - -
$6,457 $6,526 $12,983 $3,137 $665 $3,802
Isle of Capri Casinos, Inc.
Supplemental Data - Reconcilation of Operating Income to EBITDA(1)
(unaudited, in thousands)
Three Months Ended Three Months Ended
January 27, 2008 January 28, 2007
Depreciation Depreciation
and and
Operating Amorti- EBITDA Operating Amorti- EBITDA
Income zation (1) Income zation (1)
Mississippi
Biloxi $(1,960) $4,643 $2,683 $815 $4,744 $5,559
Natchez 1,819 905 2,724 2,002 964 2,966
Lula 1,947 2,719 4,666 3,017 2,617 5,634
Mississippi
Total 1,806 8,267 10,073 5,834 8,325 14,159
Louisiana
Lakes Charles 4,757 3,794 8,551 6,291 4,034 10,325
Missouri
Kansas City 1,076 1,584 2,660 2,121 1,443 3,564
Boonville 4,557 1,312 5,869 4,362 1,243 5,605
Caruthersville
(2) 95 1,620 1,715 - - -
Missouri Total 5,728 4,516 10,244 6,483 2,686 9,169
Iowa
Bettendorf 3,570 2,325 5,895 3,319 1,977 5,296
Davenport 1,944 1,271 3,215 994 1,579 2,573
Marquette 153 716 869 981 702 1,683
Waterloo (2) 749 2,612 3,361 (355) - (355)
Iowa Total 6,416 6,924 13,340 4,939 4,258 9,197
Colorado
Black Hawk/
Colorado
Central
Station 6,509 3,997 10,506 5,873 3,976 9,849
Florida
Pompano (2) (1,730) 3,992 2,262 (3,050) 55 (2,995)
International
Blue Chip (405) 148 (257) (73) 166 93
Coventry (2) (3,589) 1,850 (1,739) (1,164) 490 (674)
Our Lucaya (173) 4 (169) (428) 79 (349)
International
Total (4,167) 2,002 (2,165) (1,665) 735 (930)
Total
Properties 19,319 33,492 52,811 24,705 24,069 48,774
Corporate,
Development
and Other (3) (13,040) 1,379 (11,661) (14,998) 539 (14,459)
Corporate write-
offs (4) - - - - - -
Minority
Interest - - (895) - - (566)
$6,279 $34,871 $40,255 $9,707 $24,608 $33,749
Isle of Capri Casinos, Inc.
Supplemental Data - Reconcilation of Income (Loss) from Continuing Operations to EBITDA(1)
(unaudited, in thousands)
Nine Months Ended Nine Months Ended
January 27, 2008 January 28, 2007
Depreciation Depreciation
and and
Operating Amorti- EBITDA Operating Amorti- EBITDA
Income zation (1) Income zation (1)
Mississippi
Biloxi $(2,177) $14,119 $11,942 $26,929 $13,065 $39,994
Natchez 5,495 2,800 8,295 6,009 2,868 8,877
Lula 6,123 8,833 14,956 7,669 7,649 15,318
Mississippi
Total 9,441 25,752 35,193 40,607 23,582 64,189
Louisiana
Lakes Charles 15,283 11,490 26,773 15,732 11,988 27,720
Missouri
Kansas City 4,320 4,352 8,672 4,142 5,104 9,246
Boonville 14,853 3,813 18,666 12,712 3,868 16,580
Caruthersville
(2) 2,051 2,591 4,642 - - -
Missouri Total 21,224 10,756 31,980 16,854 8,972 25,826
Iowa
Bettendorf 13,454 7,194 20,648 12,225 5,650 17,875
Davenport 5,506 3,912 9,418 6,305 4,621 10,926
Marquette 3,411 2,282 5,693 3,751 2,355 6,106
Waterloo (2) 524 6,318 6,842 (451) - (451)
Iowa Total 22,895 19,706 42,601 21,830 12,626 34,456
Colorado
Black Hawk/
Colorado
Central
Station 26,451 11,965 38,416 18,967 11,921 30,888
Florida
Pompano (2) (7,345) 11,844 4,499 (6,761) 168 (6,593)
International
Blue Chip (1,067) 400 (667) (1,769) 394 (1,375)
Coventry (2) (14,594) 4,600 (9,994) (2,334) 1,428 (906)
Our Lucaya (1,131) 6 (1,125) (4,385) 238 (4,147)
International
Total (16,792) 5,006 (11,786) (8,488) 2,060 (6,428)
Total
Properties 71,157 96,519 167,676 98,741 71,317 170,058
Corporate,
Development
and Other (3) (39,670) 4,179 (35,491) (43,735) 1,581 (42,154)
Corporate write-
offs (4) (4,858) - (4,858) - - -
Minority
Interest - - (4,868) - - (2,119)
$26,629 $100,698 $122,459 $55,006 $72,898 $125,785
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. "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 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. Reconciliations of operating income to EBITDA are included in the financial schedules accompanying this release. A reconciliation of EBITDA to net income and of operating income to Property EBITDA are included in the financial schedules accompanying this release.
Three Months Ended Nine Months Ended
January 27, January 28, January 27, January 28,
2008 2007 2008 2007
EBITDA $40,255 $33,749 $122,459 $125,785
(Add)/deduct:
Depreciation and
amortization 34,871 24,608 100,698 72,898
Interest expense,
net 26,676 20,427 79,432 59,845
Loss on early
extinguishment of
debt - - 13,660 -
Income tax provision
(benefit) (7,443) (1,940) (25,732) 1,247
Income from
discontinued
operations,
net of income
taxes - (416) - (18,189)
Net income (loss) $(13,849) $(8,930) $(45,599) $9,984
2. Reflects results since opening or acquisition date as follows:
Property Date
Pompano April 2007
Caruthersville June 2007
Waterloo June 2007
Coventry July 2007
3. Total consolidated stock compensation expense including corporate and properties for the three months ended January 27, 2008 and January 28, 2007 was $1.7 million and $1.5 million, respectively, of which, $1.4 million and $1.0 million were included in corporate and development expense, respectively. Total consolidated stock compensation expense including corporate and properties for the nine months ended January 27, 2008 and January 28, 2007 was $5.4 million and $5.6 million, respectively, of which, $4.6 million and $4.4 million were included in corporate and development expense, respectively. 4. Corporate write offs of $4.9 million primarily reflect the termination of plans to develop a new casino project in west Harrison County, Mississippi. 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 18 casino properties. The Company owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville, Kansas City, Missouri, two casinos in Black Hawk, Colo., and a casino and harness track in Pompano Beach, Florida. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. 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
Allan B. Solomon, Executive Vice President-561.995.6660
Jill Haynes, Senior Director of Corporate Communication-314.813.9368
NOTE: Other Isle of Capri Casinos, Inc. press releases and a corporate profile are available at http://www.prnewswire.com. Isle of Capri Casinos, Inc.'s home page is http://www.islecorp.com. Website: http://www.islecorp.com/ |
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