BILOXI, Miss., June 22 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. today reported financial results for the fourth quarter and fiscal year ended April 30, 2006. For the fourth quarter, the Company reported a 19.3% increase in net revenues to $306.5 million compared to net revenues of $257.0 million for the same quarter in fiscal 2005. Net income for the fourth quarter of fiscal 2006 increased 338% to $15.1 million or $0.48 per diluted common share, compared to $3.5 million or $0.11 per diluted common share for the fourth quarter of fiscal 2005. Included in net income for the quarter ended April 30, 2006, are pre-tax valuation charges of $13.3 million related to the Company's international operations. These charges resulted in a reduction to net income per diluted share of $0.38. Adjusted EBITDA(1) for the fourth quarter of fiscal 2006 increased 42.4% to $78.0 million compared to Adjusted EBITDA(1) of $54.8 million for the same quarter in fiscal 2005.
For the fiscal year 2006, the Company reported a 4.3% increase in net revenues to $988.0 million compared to net revenues of $947.6 million in fiscal 2005. For the fiscal year 2006, the Company reported a 5.5% increase in net income to $19.0 million or $0.61 per diluted common share compared to $18.0 million or $0.58 per diluted common share for the fiscal year 2005. Adjusted EBITDA(1) for fiscal year 2006 increased 9.6% to $207.3 million compared to Adjusted EBITDA(1) of $189.2 million in fiscal 2005.
For fiscal 2006 and fiscal 2005, the Isle-Bossier City, Isle-Vicksburg and Colorado Grande-Cripple Creek are reflected as discontinued operations. Accordingly, the operating results for these properties are not included in the net revenue and Adjusted EBITDA(1) results discussed above. The Company previously announced on February 14, 2006, it entered into an agreement to sell the assets of its properties in Bossier City and Vicksburg. For the fourth quarter of fiscal 2006, Isle-Bossier City and Isle-Vicksburg had combined net revenues of $48.6 million compared to combined net revenues of $42.7 million for the same quarter in fiscal 2005. For the fiscal year 2006 Isle-Bossier City and Isle-Vicksburg had combined net revenues of $166.4 million compared to $164.0 million in fiscal year 2005. The Company expects this sale to close in the second quarter of fiscal 2007, subject to regulatory and other customary closing conditions. Assuming this transaction closes, the Company expects to record a pre-tax gain on the sale of between $14 million and $18 million. The Colorado Grande property was sold effective April 24, 2005. Earnings per diluted common share for continuing operations for the fourth quarters ended April 30, 2006 and April 24, 2005 was $0.26 and $0.17, respectively. Earnings per diluted common share for continuing operations for the years ended April 30, 2006 and April 24, 2005 was $0.25 and $0.48, respectively.
In addition, in April 2006, the Company's Board of Directors approved a plan to exit its Our Lucaya operations. Effective June 1, 2006, the Company notified its landlord of the Company's decision to terminate its lease and intent to cease operations by June 1, 2007. Isle-Our Lucaya had net revenues of $7.4 million and $9.4 million for the fourth fiscal quarters ended April 30, 2006 and April 24, 2005, respectively, and had net revenues of $25.3 million and $23.3 million for the fiscal years ended April 30, 2006 and April 24, 2005, respectively. The Company will continue to report the results of its Our Lucaya property as continuing operations until a probable sale of this facility is reached or operations are ceased, at which time these results will be reported as discontinued operations.
"I am pleased that our performance produced comparative quarter-to-quarter growth. This accomplishment, at the end of one of the most challenging years in our Company's history, shows that our business model continues to perform at a high level. We believe our portfolio diversity and our pipeline of development opportunities puts Isle of Capri in an excellent position for continued growth," Bernard Goldstein, chairman and chief executive officer, said.
Highlights and Updates
* The Company is proceeding with construction of a $140 million
development project at Pompano Park in Florida. The project includes
1,500 slot machines, 30 poker tables and four restaurants, as well as
new horse racing amenities including a sports bar and wagering area
overlooking the track. The Company expects to open the racino early in
calendar year 2007.
* In late May 2006, Isle-Biloxi completed the renovation of its existing
atrium adding additional gaming space, bringing the casino resort to
approximately 1,600 gaming positions, opening a new multi-story entry
feature and bar, and connecting the parking garage with the atrium by a
covered walkway. The remaining 100 damaged hotel rooms became fully
operational, bringing the hotel back to full capacity with 728 rooms
including 200 whirlpool suites.
* On June 15, 2006, the Company announced that it received site and
development approval from the Mississippi Gaming Commission in
connection with its previously announced casino resort in west Harrison
County, Mississippi, which is approximately 20 miles from the
Mississippi/Louisiana state border along Interstate 10. Preliminary
plans call for the estimated $250-300 million project to include a
single level gaming facility with over 2,000 gaming positions, a 500-
room hotel, five restaurants and a complement of additional resort
amenities. The project remains in the preliminary planning stages, and
is subject to certain significant conditions, including but not limited
to the receipt of all necessary licenses, approvals and permits.
* In early June 2006, the Company opened its new 140-room hotel, including
20 suites, and an 800-seat entertainment venue at Isle-Boonville in
Missouri.
* The Company continues to deploy the IGT Advantage(TM) Casino System to
replace the existing slot management systems at its properties in
Missouri and Iowa. After implementation, these properties will feature
the NexGen(TM) Interactive Display, supporting loyalty-building
Bonusing(TM) tools, which will allow the Company to enhance its uniquely
branded marketing programs.
* Construction is underway at the Isle-Waterloo in Iowa with completion
expected in the late spring of 2007. The Company plans to spend
approximately $134 million constructing a single-level casino with
approximately 1,300 gaming positions, three of its signature
restaurants, a 200-room hotel and 1,000 parking spaces.
* The Company continues to construct a new 250-room hotel at the Isle-
Bettendorf. Included in the project is additional parking, a signature
restaurant, and expansion of the existing buffet. The cost of the
project is expected to be approximately $45 million, with the new hotel
scheduled to open in the summer of 2007.
* The Company is moving forward with the relocation of its corporate
headquarters to the St. Louis County municipality of Creve Coeur and
expects to complete the transition by mid-summer 2006. The Company will
maintain a regional office in Biloxi, Mississippi. The anticipated cost
of this move is approximately $10 million, most of which will be
recorded in fiscal 2007.
* At Isle-Our Lucaya, in conjunction with the termination of its lease,
the Company paid a $2.2 million fee to its landlord, which will be
expensed in the first quarter of fiscal 2007. Based on projected cash
flows and government regulations, we have recorded an impairment charge
of approximately $2.4 million and have accrued $1.2 million for
severance payments in the fourth quarter of fiscal 2006.
"We have and will continue to refine our product mix and invigorate the Isle brand, providing our customers the amenities and experiences that they prefer. Our focus on developing our core properties, implementing technological advances, and improved service initiatives continues to produce improved financial results," Tim Hinkley, president and chief operating officer, said.
Operational Review of the Company's Continuing Operations for the Fourth Quarter Fiscal 2006 Compared to the Fourth Quarter Fiscal 2005
In Mississippi, the Company's three continuing operations contributed 29.8% of net revenues. Isle-Biloxi's net revenues were up from the prior year period principally because of the new and upgraded land based casino and the limited competition in the Biloxi market. Adjusted EBITDA(1) at the property was up significantly over the same quarter in fiscal 2005 also due to reduced competition in the market. Isle-Natchez experienced increases in both net revenues and Adjusted EBITDA(1) primarily resulting from continuing effects of population shifts into its market area. Isle-Lula's net revenues increased due to improved marketing programs. Adjusted EBITDA(1) also increased due to more efficient management of expenses.
In Louisiana, the Isle-Lake Charles contributed 16.1% of net revenues. Isle-Lake Charles experienced an increase in net revenues and Adjusted EBITDA(1), compared to the prior year period, due to growth in the overall market and the closure of a competitor in the market.
In Missouri, the Company's two properties contributed 14.8% of net revenues. Isle-Kansas City's net revenues were down due to a decreased gaming patron count caused by the completion of competitors' expansion projects in the market. Isle-Boonville's net revenues and Adjusted EBITDA(1) increased due to an increase in marketing efforts.
In Iowa, the Company's three casinos contributed 18.2% of net revenues. Combined, the Company's two Quad-City properties showed a slight increase in both net revenues and Adjusted EBITDA(1). Isle-Marquette showed a slight decrease in both net revenues and Adjusted EBITDA(1) due to increased competition in the surrounding market.
In Colorado, the Company's two Black Hawk casino operations contributed 15.0% of net revenues. The increase in both net revenues and Adjusted EBITDA(1) were due to the completion of our expansion projects.
Our international operations account for a small percentage of our overall revenues. Isle-Our Lucaya experienced a decrease in Adjusted EBITDA(1) primarily due to the recording of $2.0 million of business interruption proceeds in the fourth quarter of fiscal 2005.
New development expenses increased compared to the fourth quarter of fiscal 2005 primarily related to costs incurred relating to pursuit of the stand alone slot parlor license in Pittsburgh.
The increase in Corporate expenses is primarily related to a $2.3 million gain recorded in the prior year resulting from the sale of a land option. Additionally, the current year fourth quarter includes costs of $0.8 million related to the corporate office relocation.
The Company recorded $3.6 million in valuation and severance charges in the fourth quarter of fiscal 2006 related to its Our Lucaya property, resulting from its decision to sell or close the casino by June of 2007. As a result of adverse market conditions on the expected future cash flows of the Blue Chip operations, the Company recorded a valuation charge of $9.6 million related to its Blue Chip properties. At this time, the Company is unable to record a tax benefit related to the valuation charge on its Blue Chip properties.
The Company's fiscal year ends on the last Sunday in April. This fiscal year system creates more comparability of the Company's quarterly operations, by generally having an equal number of weeks (13) and weekend days (26) in each quarter. Periodically, this system necessitates a 53-week year. The fiscal year ended April 30, 2006 was a 53-week year. The extra week was included in the fourth fiscal quarter.
Operating results from the Isle-Vicksburg and Isle-Bossier City have been recorded as Discontinued Operations and thus are not included in the Operational Review discussed above.
Isle of Capri Casinos, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
Revenues:
Casino $309,932 $256,410 $1,004,644 $957,878
Hotel, pari-mutuel, food,
beverage & other 58,054 49,485 183,550 177,999
Gross revenues 367,986 305,895 1,188,194 1,135,877
Less promotional allowances 61,457 48,856 200,174 188,304
Net revenues (2) 306,529 257,039 988,020 947,573
Operating and other expenses:
Properties 209,733 189,821 725,114 720,965
New development (3) 7,940 5,464 19,718 14,378
Corporate 10,839 6,956 35,844 23,039
Preopening (4) 57 -- 281 247
Valuation Charge (5) 13,279 238 13,486 1,859
Hurricane related charges,
net (6) -- -- 4,776 --
Depreciation and
amortization 22,317 20,928 87,106 82,337
Total operating and other
expenses 264,165 223,407 886,325 842,825
Operating income 42,364 33,632 101,695 104,748
Interest expense, net (19,359) (15,974) (71,082) (62,847)
Loss on early extinguishment of
debt (7) -- (5,251) (2,110) (5,251)
Minority interest (8) (2,130) (371) (6,517) (5,493)
Income before income taxes 20,875 12,036 21,986 31,157
Income tax expense (9) 12,785 6,697 14,176 16,125
Income from continuing
operations 8,090 5,339 7,810 15,032
Income (loss) from discontinued
operations (including minority
interest), net of income taxes 7,035 (1,888) 11,213 3,006
Net income $15,125 $3,451 $19,023 $18,038
Earnings per common share -
basic:
Income from continuing
operations $0.27 $0.18 $0.26 $0.51
Income (loss) from discontinued
operations (including minority
interest), net of income taxes 0.23 (0.06) 0.37 0.10
Net income $0.50 $0.12 $0.63 $0.61
Earnings per common share -
diluted:
Income from continuing
operations $0.26 $0.17 $0.25 $0.48
Income (loss) from discontinued
operations (including minority
interest), net of income taxes 0.22 (0.06) 0.36 0.10
Net income $0.48 $0.11 $0.61 $0.58
Weighted average basic common
shares 30,257 29,833 30,028 29,682
Weighted average diluted common
shares 31,512 31,391 31,270 30,930
Selected Consolidated Balance Sheet Accounts
(In Thousands)
April 30, 2006 April 24, 2005
Cash and cash equivalents $121,193 $146,743
Property and equipment, net 938,169 857,643
Debt 1,221,280 1,156,118
Stockholders' equity 282,688 261,396
Isle of Capri Casinos, Inc.
Comparative Financial Highlights by Casino Property
(Unaudited)
(In thousands)
Three Months Ended
April 30, April 24,
2006 2005
Adjusted Adjusted
Net Adjusted EBITDA Net Adjusted EBITDA
Revenues EBITDA (1) Revenues EBITDA (1)
(2) (1) Margin % (2) (1) Margin %
MISSISSIPPI
BILOXI $52,493 $25,013 47.7% $21,814 $4,518 20.7%
NATCHEZ 13,779 5,921 43.0% 10,438 3,202 30.7%
LULA 25,070 7,814 31.2% 24,568 7,241 29.5%
MISSISSIPPI TOTAL 91,342 38,748 42.4% 56,820 14,961 26.3%
LOUISIANA
LAKE CHARLES 49,330 13,616 27.6% 44,114 10,525 23.9%
MISSOURI
KANSAS CITY 24,397 5,487 22.5% 24,577 4,749 19.3%
BOONVILLE 21,040 6,260 29.8% 18,909 5,621 29.7%
MISSOURI TOTAL 45,437 11,747 25.9% 43,486 10,370 23.8%
IOWA
BETTENDORF 26,025 9,057 34.8% 25,273 9,489 37.5%
DAVENPORT 18,869 5,865 31.1% 17,604 4,426 25.1%
MARQUETTE 10,757 2,293 21.3% 10,960 2,708 24.7%
IOWA TOTAL 55,651 17,215 30.9% 53,837 16,623 30.9%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION (10) 46,076 14,215 30.9% 38,340 10,924 28.5%
INTERNATIONAL
BLUE CHIP (12) 2,214 (252) (11.4%) 2,171 (473) (21.8%)
OUR LUCAYA 7,414 1,233 16.6% 9,381 3,838 40.9%
INTERNATIONAL
TOTAL 9,628 981 10.2% 11,552 3,365 29.1%
CORPORATE &
OTHER (11) 9,065 (18,505) N/M 8,890 (11,970) N/M
TOTAL $306,529 $78,017 25.5% $257,039 $54,798 21.3%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc.
Comparative Financial Highlights by Casino Property
(Unaudited)
(In thousands)
Fiscal Year Ended
April 30, April 24,
2006 2005
Adjusted Adjusted
Net Adjusted EBITDA Net Adjusted EBITDA
Revenues EBITDA (1) Revenues EBITDA (1)
(2) (1) Margin % (2) (1) Margin %
MISSISSIPPI
BILOXI $100,855 $38,947 38.6% $80,252 $15,821 19.7%
NATCHEZ 45,838 16,311 35.6% 35,836 9,119 25.4%
LULA 85,782 21,624 25.2% 85,541 21,073 24.6%
MISSISSIPPI
TOTAL 232,475 76,882 33.1% 201,629 46,013 22.8%
LOUISIANA
LAKE CHARLES 161,912 39,066 24.1% 172,081 40,506 23.5%
MISSOURI
KANSAS CITY 88,125 16,736 19.0% 94,721 18,267 19.3%
BOONVILLE 74,519 21,576 29.0% 71,553 20,723 29.0%
MISSOURI TOTAL 162,644 38,312 23.6% 166,274 38,990 23.4%
IOWA
BETTENDORF 97,346 30,711 31.5% 100,283 34,263 34.2%
DAVENPORT 69,068 18,144 26.3% 69,349 17,685 25.5%
MARQUETTE 42,563 10,421 24.5% 42,018 10,695 25.5%
IOWA TOTAL 208,977 59,276 28.4% 211,650 62,643 29.6%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION (10) 163,411 49,982 30.6% 138,588 39,700 28.6%
INTERNATIONAL
BLUE CHIP (12) 8,221 (1,383) (16.8%) 7,856 (1,492) (19.0%)
OUR LUCAYA 25,349 2,523 10.0% 23,259 (573) (2.5%)
INTERNATIONAL
TOTAL 33,570 1,140 3.4% 31,115 (2,065) (6.6%)
CORPORATE &
OTHER (11) 25,031 (57,314) N/M 26,236 (36,596) N/M
TOTAL $988,020 $207,344 21.0% $947,573 $189,191 20.0%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by
Casino Property
(Unaudited) (In thousands)
Three Months Ended April 30, 2006
Depreciation Operating
Operating & Other Income
Income Amortization Preopening Charges Adjusted Margin%
(Loss) (4) (5) EBITDA (1) (1)
MISSISSIPPI
BILOXI $21,458 $3,555 $-- $-- $25,013 40.9%
NATCHEZ 5,023 898 -- -- 5,921 36.5%
LULA 5,300 2,514 -- -- 7,814 21.1%
MISSISSIPPI
TOTAL 31,781 6,967 -- -- 38,748 34.8%
LOUISIANA
LAKE
CHARLES 10,243 3,373 -- -- 13,616 20.8%
MISSOURI
KANSAS
CITY 3,921 1,566 -- -- 5,487 16.1%
BOONVILLE 5,053 1,207 -- -- 6,260 24.0%
MISSOURI
TOTAL 8,974 2,773 -- -- 11,747 19.8%
IOWA
BETTENDORF 7,287 1,770 -- -- 9,057 28.0%
DAVENPORT 4,207 1,658 -- -- 5,865 22.3%
MARQUETTE 1,557 736 -- -- 2,293 14.5%
IOWA
TOTAL 13,051 4,164 -- -- 17,215 23.5%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION
(10) 10,237 3,978 -- -- 14,215 22.2%
INTERNATIONAL
BLUE CHIP
(12) (9,368) 103 -- 9,013 (252) (423.1%)
OUR LUCAYA (2,675) 266 -- 3,642 1,233 (36.1%)
INTERNATIONAL
TOTAL (12,043) 369 -- 12,655 981 (125.1%)
CORPORATE
& OTHER (11) (19,879) 693 57 624 (18,505) N/M
TOTAL $42,364 $22,317 $57 $13,279 $78,017 13.8%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
by Casino Property
(Unaudited) (In thousands)
Three Months Ended April 24, 2005
Depreciation Operating
Operating & Other Income
Income Amortization Charges Adjusted Margin%
(Loss) (5) EBITDA (1) (1)
MISSISSIPPI
BILOXI $1,973 $2,545 $-- $4,518 9.0%
NATCHEZ 2,352 850 -- 3,202 22.5%
LULA 4,975 2,266 -- 7,241 20.2%
MISSISSIPPI
TOTAL 9,300 5,661 -- 14,961 16.4%
LOUISIANA
LAKE
CHARLES 6,991 3,534 -- 10,525 15.8%
MISSOURI
KANSAS CITY 2,840 1,909 -- 4,749 11.6%
BOONVILLE 4,496 1,125 -- 5,621 23.8%
MISSOURI
TOTAL 7,336 3,034 -- 10,370 16.9%
IOWA
BETTENDORF 7,470 2,019 -- 9,489 29.6%
DAVENPORT 2,413 2,013 -- 4,426 13.7%
MARQUETTE 1,979 729 -- 2,708 18.1%
IOWA TOTAL 11,862 4,761 -- 16,623 22.0%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION
(10) 8,128 2,796 -- 10,924 21.2%
INTERNATIONAL
BLUE CHIP
(12) (525) 52 -- (473) (24.2%)
OUR LUCAYA 3,449 389 -- 3,838 36.8%
INTERNATIONAL
TOTAL 2,924 441 -- 3,365 25.3%
CORPORATE &
OTHER (11) (12,909) 701 238 (11,970) N/M
TOTAL $33,632 $20,928 $238 $54,798 13.1%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by
Casino Property
(Unaudited) (In thousands)
Fiscal Year Ended April 30, 2006
Depreciation Hurricane Operating
Operating & Related Adjusted Income
Income Amortization Charges, Preopening Other EBITDA Margin%
(Loss) net (6) (4) Charges(5) (1) (1)
MISSISSIPPI
BILOXI $27,148 $11,830 $(31) $-- $-- $38,947 26.9%
NATCHEZ 12,385 3,922 4 -- -- 16,311 27.0%
LULA 12,140 9,484 -- -- -- 21,624 14.2%
MISSISSIPPI
TOTAL 51,673 25,236 (27) -- -- 76,882 22.2%
LOUISIANA
LAKE
CHARLES 19,517 15,249 4,300 -- -- 39,066 12.1%
MISSOURI
KANSAS
CITY 9,951 6,785 -- -- -- 16,736 11.3%
BOONVILLE 17,060 4,516 -- -- -- 21,576 22.9%
MISSOURI
TOTAL 27,011 11,301 -- -- -- 38,312 16.6%
IOWA
BETTENDORF 23,512 7,199 -- -- -- 30,711 24.2%
DAVENPORT 11,112 7,032 -- -- -- 18,144 16.1%
MARQUETTE 7,451 2,970 -- -- -- 10,421 17.5%
IOWA
TOTAL 42,075 17,201 -- -- -- 59,276 20.1%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION
(10) 36,132 13,850 -- -- -- 49,982 22.1%
INTERNATIONAL
BLUE CHIP
(12) (10,813) 417 -- -- 9,013 (1,383)(131.5%)
OUR
LUCAYA (2,646) 1,524 3 -- 3,642 2,523 (10.4%)
INTERNATIONAL
TOTAL (13,459) 1,941 3 -- 12,655 1,140 (40.1%)
CORPORATE
& OTHER
(11) (61,254) 2,328 500 281 831 (57,314) N/M
TOTAL $101,695 $87,106 $4,776 $281 $13,486 $207,344 10.3%
Note: Excludes properties classified as discontinued operations
Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted
EBITDA by Casino Property
(Unaudited) (In thousands)
Fiscal Year Ended April 24, 2005
Depreciation Operating
Operating & Other Income
Income Amortization Preopening Charges Adjusted Margin%
(Loss) (4) (5) EBITDA (1) (1)
MISSISSIPPI
BILOXI $7,164 $8,657 $-- $-- $15,821 8.9%
NATCHEZ 5,823 3,296 -- -- 9,119 16.2%
LULA 10,130 10,943 -- -- 21,073 11.8%
MISSISSIPPI
TOTAL 23,117 22,896 -- -- 46,013 11.5%
LOUISIANA
LAKE
CHARLES 27,036 13,470 -- -- 40,506 15.7%
MISSOURI
KANSAS
CITY 10,644 7,623 -- -- 18,267 11.2%
BOONVILLE 14,332 6,391 -- -- 20,723 20.0%
MISSOURI
TOTAL 24,976 14,014 -- -- 38,990 15.0%
IOWA
BETTENDORF 26,840 7,423 -- -- 34,263 26.8%
DAVENPORT 10,268 7,417 -- -- 17,685 14.8%
MARQUETTE 7,602 3,093 -- -- 10,695 18.1%
IOWA
TOTAL 44,710 17,933 -- -- 62,643 21.1%
COLORADO
BLACK HAWK/
COLORADO
CENTRAL
STATION
(10) 29,764 9,936 -- -- 39,700 21.5%
INTERNATIONAL
BLUE CHIP
(12) (1,952) 213 247 -- (1,492) (24.8%)
OUR
LUCAYA (2,061) 1,488 -- -- (573) (8.9%)
INTERNATIONAL
TOTAL (4,013) 1,701 247 -- (2,065) (12.9%)
CORPORATE
& OTHER
(11) (40,842) 2,387 -- 1,859 (36,596) N/M
TOTAL $104,748 $82,337 $247 $1,859 $189,191 11.1%
Note: Excludes properties classified as discontinued operations
1. EBITDA is "earnings before interest, income taxes, depreciation and
amortization." Isle of Capri calculates Adjusted EBITDA at its
properties by adding preopening expense, management fees, other
charges and non-cash items to EBITDA. Adjusted 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 and 2) a principal basis of valuing gaming companies.
Management uses property level Adjusted EBITDA (Adjusted EBITDA before
corporate expense) as the primary measure of the Company's operating
properties' performance, including the evaluation of operating
personnel. Adjusted 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 Adjusted EBITDA.
Also, other gaming companies that report Adjusted EBITDA information
may calculate Adjusted EBITDA in a different manner than the Company.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by
net revenues. Fiscal 2006 and 2005 results have been reclassified to
reflect the Colorado Grande-Cripple Creek, Isle-Bossier City and Isle-
Vicksburg as discontinued operations. Reconciliations of operating
income to Adjusted EBITDA and operating income as a percentage of net
revenues are included in the financial schedules accompanying this
release. A reconciliation of Adjusted EBITDA with the Company's net
income is shown below.
Three Months Ended Fiscal Year Ended
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
(In thousands)
Adjusted EBITDA $78,017 $54,798 $207,344 $189,191
(Add)/deduct:
Depreciation and
amortization 22,317 20,928 87,106 82,337
Preopening (4) 57 -- 281 247
Valuation Charge (5) 13,279 238 13,486 1,859
Hurricane related charges,
net (6) -- -- 4,776 --
Interest expense, net 19,359 15,974 71,082 62,847
Loss on early
extinguishment of
debt (7) -- 5,251 2,110 5,251
Minority interest (8) 2,130 371 6,517 5,493
Income tax expense (9) 12,785 6,697 14,176 16,125
Loss (income) from
discontinued operations,
net of income taxes (7,035) 1,888 (11,213) (3,006)
Net income $15,125 $3,451 $19,023 $18,038
2. Net revenues are presented net of complimentaries, slot points expense
and cash coupon redemptions. Fiscal 2006 and 2005 results have been
reclassified to reflect the Colorado Grande-Cripple Creek, the Isle-
Bossier City and the Isle-Vicksburg as discontinued operations.
3. New development expenses include incremental costs incurred pursuing
new opportunities within the industry. Such costs include legal and
other professional fees, application fees and personnel and travel
costs. These expenses are detailed in the table below.
Three Months Ended Fiscal Year Ended
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
Domestic (a) $4,087 $1,858 $6,795 $7,394
International (b) 3,853 3,606 12,923 6,984
$7,940 $5,464 $19,718 $14,378
(a) Relates primarily to the Company's development efforts in Pittsburgh,
Pennsylvania
(b) Includes development expenses related to construction at Coventry and
various other projects in the UK and the Company's development
agreement with Eight Wonder related to Singapore
4. Preopening expenses for the fiscal year ended April 30, 2006 are
related to construction of the hotel and casino in Waterloo, Iowa and
development at Pompano Park. Preopening expenses for the fiscal year
ended April 24, 2005 relate to the September 2004 opening of the Blue
Chip-Walsall pub-style casino.
5. For the fiscal quarter and year ended April 30, 2006 and April 24,
2005, the Company recorded valuation and other charges as follows:
Three Months Ended Fiscal Year Ended
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
United Kingdom related $9,637 $-- $9,637 $1,621
Isle-Our Lucaya 3,642 -- 3,642 --
Rosemont, Illinois -- 2,514 -- 2,514
Other(c) -- (2,276) 207 (2,276)
$13,279 $238 $13,486 $1,859
(c) Related to gain on sale of land option in St. Louis, Missouri in
fiscal 2005
6. Hurricane related charges, net, include impairment charges for assets
damaged or destroyed by hurricanes, incremental costs incurred related
to hurricanes and operating costs related to periods affected by
hurricanes. This item also includes anticipated recoveries expected
from our insurance carriers related to property damage, incremental
costs and operating expenses. When the Company and its insurance
carriers agree on the final amount of the insurance proceeds, the
Company will also record any related gain in this account. Any
recoveries of lost profit will be recognized when agreed to with the
insurance carrier and will be reflected in the related properties
revenue and Adjusted EBITDA(1).
7. Loss on early extinguishment of debt for the fiscal year ended April
30, 2006 relates to the refinancing of the Isle-Black Hawk's senior
secured credit facility on October 24, 2005. As a result of this
transaction, Isle-Black Hawk expensed the unamortized debt issuance
costs related to its previous credit agreement. Loss on early
extinguishment of debt of $5.3 million for the fiscal quarter and year
ended April 24, 2005 relates to the refinancing of the Company's
senior secured credit facility on February 4, 2005. These charges
include the write-off of debt acquisition costs.
8. Minority interest represents unrelated third parties' portions of the
Isle-Black Hawk's income before income taxes and Colorado Central
Station-Black Hawk's net income.
9. The Company's effective tax rate from continuing operations for year
ending April 30, 2006 was 64.5% compared to 51.8% for the year ending
April 24, 2005, which, in each case, excludes an unrelated party's
portion of the Colorado Central Station-Black Hawk's income taxes.
This increase in effective tax rate over the comparable prior fiscal
period is primarily attributable to the impact of not benefiting from
a portion of its current losses in the United Kingdom, and not
benefiting from the capital loss related to the Colorado Grande-
Cripple Creek transaction.
10. As management fees are eliminated in consolidation, Adjusted EBITDA(1)
for the Black Hawk/Colorado Central Station properties does not
include management fees. Fiscal 2006 and 2005 results have been
reclassified to reflect the Colorado Grande-Cripple Creek as a
discontinued operation. The following table shows management fees and
Adjusted EBITDA(1) inclusive of management fees for the three months
and fiscal year ended April 30, 2006 and April 24, 2005:
Three Months Ended Fiscal Year Ended
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
(In thousands)
Management Fees
Black Hawk/Colorado
Central Station $1,993 $1,660 $7,439 $6,077
Adjusted EBITDA with
Management Fees
Black Hawk/Colorado
Central Station $12,222 $9,264 $42,543 $33,623
11. For the three months ended April 30, 2006 corporate and other includes
net revenues of $8.9 million and Adjusted EBITDA(1) of $0.1 million
for Pompano Park. For the fiscal year ended April 30, 2006, corporate
and other includes net revenues of $24.8 million and Adjusted
EBITDA(1) of ($2.0) million for Pompano Park. For the three months
ended April 24, 2005, corporate and other includes net revenues of
$8.7 million and Adjusted EBITDA(1) of $0.2 million for Pompano Park.
For the fiscal year ended April 24, 2005, corporate and other includes
net revenues of $24.6 million and Adjusted EBITDA(1) of ($0.9) million
for Pompano Park.
12. Isle of Capri Casinos, Inc. acquired a two-thirds interest in Blue
Chip Casinos, PLC on November 28, 2003. Blue Chip Casinos, PLC owns
and operates pub-style casinos in Dudley, Wolverhampton and Walsall,
England.
Isle of Capri Casinos, Inc., a leading developer and owner of gaming and entertainment facilities, operates 15 casinos in 13 locations. The Company owns and operates riverboat and dockside casinos in Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (2 riverboats), Louisiana; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The Company also owns a 57 percent interest in and operates two land-based casinos in Black Hawk, Colorado. Isle of Capri's international gaming interests include a casino that it operates in Freeport, Grand Bahama, and a two-thirds ownership interest in casinos in Dudley, Wolverhampton and Walsall, England. The Company also owns and operates Pompano Park Harness Racing Track in Pompano Beach, Florida.
As a publicly held Company, the Company regularly files 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.
The Company's Internet website is http://www.islecorp.com/ . The Company makes its filings available free of charge on its Internet website as soon as reasonably practical after the Company electronically files or furnishes such reports to the SEC.
You may read and copy the reports, statements and other information the Company files 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. The Company's 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
Donn Mitchell, Chief Financial Officer, 228-396-7052
Jill Haynes, Director of Corporate Communications, 228-396-7031
This press release contains forward-looking statements which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. 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 24, 2005 and Form 10-Q for the fiscal quarters ended since that date.
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