Isle of Capri Casinos, Inc. Announces Fiscal 2013 Third Quarter Results

   Isle of Capri Casinos, Inc. Announces Fiscal 2013 Third Quarter Results

PR Newswire

SAINT LOUIS, Mo., Feb. 20, 2013

SAINT LOUIS, Mo., Feb. 20, 2013 /PRNewswire/ --Isle of Capri Casinos, Inc.
(NASDAQ: ISLE) (the "Company") today reported financial results for the third
quarter of fiscal year 2013 ended January 27, 2013 and other Company-related
news.

Consolidated Results

The following table outlines the Company's financial results (dollars in
millions, except per shares data, unaudited):

                            Three Months Ended        Nine Months Ended
                            January 27,  January 22,  January 27,  January 22,
                            2013         2012         2013         2012
Net revenues                $   238.1  $   227.3  $   697.1  $   686.4
Consolidated adjusted       41.9         41.2         125.6        122.8
EBITDA (1)
Loss from continuing        (1.0)        (0.3)        (0.6)        (3.9)
operations
Loss from discontinued      (1.2)        (0.9)        (1.6)        (1.1)
operations
Net loss                    (2.2)        (1.2)        (2.2)        (5.0)
Diluted loss per share from (0.03)       (0.01)       (0.02)       (0.10)
continuing operations
Diluted loss per share from (0.03)       (0.02)       (0.04)       (0.03)
discontinued operations
Diluted loss per share      (0.06)       (0.03)       (0.06)       (0.13)

Net revenue for the quarter increased to $238.1 million compared to $227.3
million in the comparable quarter last year. Consolidated Adjusted EBITDA
increased $0.7 million to $41.9 million. The Company reported a loss per share
from continuing operations of $(.03) for the current quarter compared to
$(.01) in the prior year quarter. Before the impact of preopening and
development costs and the impact of insurance recoveries in the fiscal 2012
quarter the loss per share from continuing operations would have been $(.01)
in the third quarter of fiscal 2013 compared to $(.03) in the fiscal 2012
third quarter.

Virginia McDowell, president and chief executive officer remarked, "Our fiscal
third quarter is highlighted by the opening of our new property in Cape
Girardeau on October 30, 2012, two full months ahead of its original
schedule. The property's appearance and experience has been extremely well
received by customers, and our focus is now on the continuing ramp up in
operational performance at the property.

"Similar to other operators in the regional gaming industry, our results were
impacted by softness in consumer spending, including the effect of payroll and
income tax modifications early in the calendar year. In addition, last winter
was one of the mildest on record in the Midwest, while in contrast this winter
we have had some measurable weather disruptions at key times, including New
Year's Eve weekend.

"We continue to deliver on our strategy of improving our guest experience and
enhancing our asset base. During the quarter, in addition to opening Cape
Girardeau, we completed the rebranding of our Vicksburg facility to a Lady
Luck and completed renovations to our main hotel tower in Lake Charles. We
also began construction on Lady Luck Nemacolin and completed the sale of our
Biloxi property on November 29, 2012. We are beginning to see the positive
impact from the capital projects we have completed, and are confident our
strategy to revitalize our asset base is working.

"We are also very excited to have entered into an agreement with Tower
Entertainment, LLC in Philadelphia, to manage its proposed, $700 million,
luxury casino entertainment complex, The Provence, subject to the project
being selected by the Pennsylvania Gaming Control Board. The proposed
facility will be stunning and provides us the potential opportunity to enter
into one of the preeminent US gaming markets."

Operating Overview

 The following highlights operating results at our properties:

  oBlack Hawk – Adjusted EBITDA increased 23.6% to $6.0 million while net
    revenues increased 8.1% to $28.9 million, resulting in margin improvement
    of nearly 261 basis points, in spite of a year-over-year increase in the
    gaming tax rate. Results were positively impacted by the continued impact
    of recent capital improvements at the properties and targeted marketing
    promotions.
  oPompano –Despite the continued year-over-year impact of a major expansion
    at a competing facility, net revenue increased $1.2 million to $39.9
    million while adjusted EBITDA increased 4.4% to $7.4 million.
  oIowa – Net revenues decreased 1.2% to $54.7 million while Adjusted EBITDA
    decreased a combined $1.0 million to $13.2 million, largely attributable
    to inclement weather during the period relative to the prior year quarter.
  oLake Charles – Adjusted EBITDA increased 17.9% to $3.7 million, despite
    decreased net revenues of 6.4% to $29.4 million. Operating margins
    increased 264 basis points. The renovation of the hotel rooms in the main
    tower was completed during the period, causing some construction
    disruption that negatively impacted revenues; however, we were able to
    offset the impact through improvements to the cost structure, primarily
    from the consolidation of our operations to a single facility, after the
    sale of our second casino vessel in late fiscal 2012.
  oMissouri – Net revenues increased 29.6% to $59.2 million and Adjusted
    EBITDA increased 16.7% to $13.9 million primarily as a result of the
    opening of our Cape Girardeau property. Our new Cape Girardeau facility
    contributed $16.1 million in net revenues and $2.9 million in Adjusted
    EBITDA during the quarter and we are experiencing a steady ramp up in
    operations as we have increased our database marketing programs at the
    property. Adjusted EBITDA in Kansas City was essentially flat despite the
    impact of a new competitor in the market last February. Boonville results
    were negatively impacted by inclement weather over New Year's weekend and
    Caruthersville was impacted by both weather and the opening of Cape
    Girardeau.
  oMississippi – Adjusted EBITDA decreased 29.0% to $3.9 million as net
    revenues declined 8.2% to $25.9 million. Results in Vicksburg were
    impacted by construction disruption early in the quarter and increased
    marketing costs associated with the Lady Luck rebrand launch. In Natchez,
    a new competitor opened in the market in December. In Lula, we were able
    to mostly mitigate continuing competitive challenges with approximately
    $1.1 million of decreases in gaming taxes, marketing and operating
    expenses.

Corporate Expenses and Other Items

Corporate and development expenses were $7.5 million for the quarter, a
decrease of $0.3 million compared to prior year. Non-cash stock compensation
expense was $1.1 million for the quarter compared to $1.8 million in the third
quarter of fiscal 2012.

Development

We currently expect to open Lady Luck Nemacolin during summer 2013. The
facility is planned to include 600 slot machines, 28 table games, an Otis &
Henry's Bar & Grill, and a Lone Wolf Bar. The Company currently expects the
total project to cost approximately $57 million to $60 million, including the
$12.5 million license fee.

On February 1, 2013 we entered into an agreement with Tower Entertainment,
LLC, to operate its proposed $700 million casino entertainment complex in
Philadelphia, Pennsylvania, if selected for licensure by the Pennsylvania
Gaming Control Board. The hallmarks of the 1.25 million square-foot Provence
resort and casino complex are expected to include a 125-room hotel housed in
the landmark tower of the former Inquirer building; a 120,000 square-foot,
high-quality casino featuring approximately 3,300 electronic gaming machines
(slots and automated table games), and 150 table games; a 120,000 square-foot,
family-oriented rooftop village; a 75,000 square-foot concert hall; eight
restaurants; a private swim club with two pools; a 9,000 square-foot
nightclub; 60,000 square feet of upscale shops; a 20,000 square-foot Spa &
Fitness Center; 50,000 combined square-feet of meeting and event space; and
two indoor parking garages.

Capital Structure

As of January 27, 2013, the Company had $67.8 million in cash and cash
equivalents, $1.1 billion in total debt and $243 million in net line of credit
availability.

Third quarter capital expenditures were $34.1 million, of which $19.0 million
related to Cape Girardeau, $3.4 million related to Nemacolin, and $11.7
million at our existing properties. The Company expects capital expenditures
to be approximately $45 million to $50 million for the balance of the fiscal
year, including maintenance capital and construction costs in Nemacolin of
approximately $25 million to $30 million.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Wednesday, February
20, 2013 at 12:30 pm central time during which management will discuss the
financial and other matters addressed in this press release. The conference
call can be accessed by interested parties via webcast through the investor
relations page of the Company's website, www.islecorp.com, or, for domestic
callers, by dialing 877-917-8929. International callers can access the
conference call by dialing 517-308-9020. The conference call reference number
is 4149287. The conference call will be recorded and available for review
starting at 11:59 pm central on Wednesday, February 20, 2013, until 11:59 pm
central on Wednesday, February 27, 2013, by dialing 866-495-6464;
International: 203-369-1765 and access number 5425.

About Isle of Capri Casinos, Inc.

Isle of Capri Casinos, Inc. is a leading regional gaming and entertainment
company dedicated to providing guests with exceptional experience at each of
the 15 casino properties that it owns and operates, primarily under the Isle
and Lady Luck brands. The Company currently owns and operates gaming and
entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado
and Florida. We are developing a new facility at the Nemacolin Woodlands
Resort in Western Pennsylvania. More information is available at the
Company's website, www.islecorp.com.

Forward-Looking Statements

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
Jill Alexander, Senior Director of Corporate Communication-314.813.9368



ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
                         Three Months Ended          Nine Months Ended
                         January 27,    January 22,  January 27,  January 22,
                         2013           2012         2013         2012
Revenues:
Casino                   $   248,404  $          $          $  
                                        236,649      733,321      711,583
Rooms                    6,830          6,916        23,788       23,807
Food, beverage,          32,749         30,935       95,992       91,285
pari-mutuel and other
Insurance recoveries     -              872          -            983
Gross revenues           287,983        275,372      853,101      827,658
Less promotional         (49,888)       (48,051)     (155,976)    (141,307)
allowances
Net revenues             238,095        227,321      697,125      686,351
Operating expenses:
Casino                   39,166         37,700       114,464      111,843
Gaming taxes             63,289         59,603       183,536      178,555
Rooms                    1,405          1,417        4,959        5,265
Food, beverage,          10,987         9,553        30,308       29,096
pari-mutuel and other
Marine and facilities    13,979         13,745       41,567       42,804
Marketing and            61,012         57,294       175,432      172,835
administrative
Corporate and            7,506          7,824        26,756       29,417
development
Preopening               978            68           4,319        131
Depreciation and         19,390         19,304       53,062       58,126
amortization
Total operating          217,712        206,508      634,403      628,072
expenses
Operating income         20,383         20,813       62,722       58,279
Interest expense         (22,009)       (21,737)     (64,425)     (65,439)
Interest income          100            185          406          620
Derivative income        222            223          532          252
expense
Loss from continuing
operations               (1,304)        (516)        (765)        (6,288)
beforeincome taxes
Income tax benefit       302            200          166          2,383
Loss from continuing     (1,002)        (316)        (599)        (3,905)
operations
Loss from discontinued
operations net of        (1,184)        (866)        (1,579)      (1,057)
income taxes
Net loss                 $           $         $         $   
                         (2,186)        (1,182)      (2,178)      (4,962)
Loss per common
share-basic:
Loss from continuing     $          $        $        $    
operations               (0.03)         (0.01)       (0.02)       (0.10)
Loss from discontinued
operations,net of       (0.03)         (0.02)       (0.04)       (0.03)
income taxes
Net loss                 $          $        $        $    
                         (0.06)         (0.03)       (0.06)       (0.13)
Loss per common
share-dilutive:
Loss from continuing     $          $        $        $    
operations               (0.03)         (0.01)       (0.02)       (0.10)
Loss from discontinued
operations,net of       (0.03)         (0.02)       (0.04)       (0.03)
income taxes
Net loss                 $          $        $        $    
                         (0.06)         (0.03)       (0.06)       (0.13)
Weighted average basic   39,488,480     38,982,281   39,280,965   38,670,827
shares
Weighted average         39,488,480     38,982,281   39,280,965   38,670,827
diluted shares



ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
                                            January 27,       April 29,
                                            2013              2012
ASSETS                                      (unaudited)
Current assets:
Cash and cash equivalents                   $    67,830   $    94,461
Marketable securities                       25,136            24,943
Accounts receivable, net                    9,583             6,941
Insurance receivable                        -                 7,497
Income taxes receivable                     4,409             2,161
Deferred income taxes                       1,841             627
Prepaid expenses and other assets           25,736            18,950
Assets held for sale                        -                 46,703
Total current assets                        134,535           202,283
Property and equipment, net                 1,016,796         950,014
Other assets:
Goodwill                                    330,903           330,903
Other intangible assets, net                60,957            56,586
Deferred financing costs, net               17,832            13,205
Restricted cash                             12,930            12,551
Prepaid deposits and other                  7,169             9,428
Total assets                                $  1,581,122     $  1,574,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt        $     5,410  $     5,393
Accounts payable                           32,879            23,536
Accrued liabilities:
Payroll and related                         37,305            38,566
Property and other taxes                    20,395            19,522
Interest                                    15,840            9,296
Progressive jackpots and slot club awards   15,790            14,892
Liabilities related to assets held for sale -                 4,362
Other                                       33,895            40,549
Total current liabilities                   161,514           156,116
Long-term debt, less current maturities     1,147,817         1,149,038
Deferred income taxes                       36,370            36,057
Other accrued liabilities                   32,717            33,583
Other long-term liabilities                 16,732            16,556
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000  -                 -
shares authorized; none issued
Common stock, $.01 par value; 60,000,000
shares authorized; shares issued:           421               421
42,066,148 at January 27, 2013 and
42,066,148 at April 29, 2012
Class B common stock, $.01 par value;       -                 -
3,000,000 shares authorized; none issued
Additional paid-in capital                  245,782           247,855
Retained earnings (deficit)                 (28,836)          (26,658)
Accumulated other comprehensive (loss)      (396)             (855)
income
                                            216,971           220,763
Treasury stock, 2,573,769 shares at January
27, 2013 and 3,083,867 sharesat April 29,  (30,999)          (37,143)
2012
Total stockholders' equity                  185,972           183,620
Total liabilities and stockholders' equity  $  1,581,122     $  1,574,970



Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
                           Three Months Ended        Nine Months Ended
                           January 27,  January 22,  January 27,  January 22,
                           2013         2012         2013         2012
Properties Not Impacted by
Flooding
   Lake Charles, Louisiana $         $         $         $   
                           29,364       31,379       92,691       99,920
   Kansas City, Missouri   17,513       19,038       54,045       58,149
   Boonville, Missouri     18,383       18,658       58,569       58,481
   Cape Girardeau,         16,111       -            16,111       -
   Missouri
   Bettendorf, Iowa        17,892       18,230       57,441       57,441
   Marquette, Iowa         6,003        5,907        20,716       20,679
   Waterloo, Iowa          20,770       20,662       63,107       61,763
   Black Hawk, Colorado    28,879       26,712       90,902       89,978
   Pompano, Florida        39,860       38,631       108,236      106,202
                           194,775      179,217      561,818      552,613
Properties Impacted by
Flooding
   Natchez, Mississippi    6,129        6,668        19,092       18,149
   Lula, Mississippi       12,587       13,805       39,990       37,770
   Vicksburg, Mississippi  7,167        7,711        20,622       21,555
   Caruthersville,         7,149        7,935        23,926       23,749
   Missouri
   Davenport, Iowa         10,078       10,627       31,114       31,397
                           43,110       46,746       134,744      132,620
Property Net Revenues      237,885      225,963      696,562      685,233
before Other
Insurance Recoveries^(2)
   Natchez                 -            420          -            -
   Vicksburg               -            54           -            -
   Caruthersville          -            398          -            -
Other                      210          486          563          1,118
Net Revenues from          $          $          $          $  
Continuing Operations      238,095      227,321      697,125      686,351



Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                 Three Months Ended January 27, 2013
                 Operating  Depreciation  Stock-Based                           Adjusted
                 Income     and           Compensation  Preopening  Financing   EBITDA
                 (Loss)     Amortization
Properties Not
Impacted by
Flooding
 Lake Charles,   $        $         $        $       $       $  
 Louisiana       1,147      2,591            8       -        -      3,746
 Kansas City,    2,800      1,001         4             -           -           3,805
 Missouri
 Boonville,      5,341      896           6             -           -           6,243
 Missouri
 Cape Girardeau, 92         2,762         6             -           -           2,860
 Missouri
 Bettendorf,     2,676      1,728         4             -           -           4,408
 Iowa
 Marquette, Iowa 309        469           2             -           -           780
 Waterloo, Iowa  4,785      1,175         5             -           -           5,965
 Black Hawk,     3,823      2,176         8             -           -           6,007
 Colorado
 Pompano,        5,595      1,829         7             -           -           7,431
 Florida
                 26,568     14,627        50            -           -           41,245
Properties
Impacted by
Flooding
 Natchez,        208        359           4             -           -           571
 Mississippi
 Lula,           882        1,355         4             -           -           2,241
 Mississippi
 Vicksburg,      (41)       1,078         5             -           -           1,042
 Mississippi
 Caruthersville, 140        830           6             -           -           976
 Missouri
 Davenport, Iowa 1,452      585           5             -           -           2,042
                 2,641      4,207         24            -           -           6,872
Total Operating  29,209     18,834        74            -           -           48,117
Properties
 Corporate and   (8,826)    556           1,097         978         -           (6,195)
 Other
Total            $         $          $        $       $       $ 
                 20,383     19,390       1,171         978         -      41,922
                 Three Months Ended January 22, 2012
                 Operating  Depreciation  Stock-Based               Insurance   Adjusted
                 Income     and           Compensation  Preopening  Recoveries  EBITDA
                 (Loss)     Amortization
Properties Not
Impacted by
Flooding
 Lake Charles,   $       $         $        $       $       $  
 Louisiana       781       2,391            4       -        -      3,176
 Kansas City,    2,982      1,005         3             -           -           3,990
 Missouri
 Boonville,      5,629      876           5             -           -           6,510
 Missouri
 Bettendorf,     2,837      1,978         5             -           -           4,820
 Iowa
 Marquette, Iowa 443        466           5             -           -           914
 Waterloo, Iowa  4,584      1,648         5             -           -           6,237
 Black Hawk,     1,918      2,932         10            -           -           4,860
 Colorado
 Pompano,        4,356      2,757         6             -           -           7,119
 Florida
                 23,530     14,053        43            -           -           37,626
Properties
Impacted by
Flooding
 Natchez,        1,312      384           5             -           (420)       1,281
 Mississippi
 Lula,           808        1,563         5             -           -           2,376
 Mississippi
 Vicksburg,      561        1,257         4             -           (54)        1,768
 Mississippi
 Caruthersville, 918        873           5             -           (398)       1,398
 Missouri
 Davenport, Iowa 1,718      547           5             -           -           2,270
                 5,317      4,624         24            -           (872)       9,093
Total Operating  28,847     18,677        67            -           (872)       46,719
Properties
 Corporate and   (8,034)    627           1,807         68          -           (5,532)
 Other
Total            $         $          $        $       $       $ 
                 20,813     19,304       1,874          68      (872)      41,187



Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                 Nine Months Ended January 27, 2013
                 Operating  Depreciation  Stock-Based                          Adjusted
                 Income     and           Compensation  Preopening  Financing  EBITDA
                 (Loss)     Amortization
Properties Not
Impacted by
Flooding
 Lake Charles,   $        $         $        $       $      $  
 Louisiana       6,377     7,013           14       -         -       13,404
 Kansas City,    9,067      3,020         10            -           -          12,097
 Missouri
 Boonville,      17,753     2,649         17            -           -          20,419
 Missouri
 Cape Girardeau, 92         2,762         6             -           -          2,860
 Missouri
 Bettendorf,     9,784      5,211         13            -           -          15,008
 Iowa
 Marquette, Iowa 2,740      1,345         12            -           -          4,097
 Waterloo, Iowa  14,917     3,832         16            -           -          18,765
 Black Hawk,     14,666     6,534         32            -           -          21,232
 Colorado
 Pompano,        11,415     5,406         21            -           -          16,842
 Florida
                 86,811     37,772        141           -           -          124,724
Properties
Impacted by
Flooding
 Natchez,        1,169      1,186         14            -           -          2,369
 Mississippi
 Lula,           1,186      4,780         15            -           -          5,981
 Mississippi
 Vicksburg,      (306)      3,340         14            -           -          3,048
 Mississippi
 Caruthersville, 1,556      2,521         16            -           -          4,093
 Missouri
 Davenport, Iowa 4,619      1,659         16            -           -          6,294
                 8,224      13,486        75            -           -          21,785
Total Operating  95,035     51,258        216           -           -          146,509
Properties
 Corporate and   (32,313)   1,804         3,850         4,319       1,478      (20,862)
 Other
Total            $         $          $        $         $        $ 
                 62,722    53,062       4,066        4,319      1,478     125,647
                 Nine Months Ended January 22, 2012
                 Operating  Depreciation  Stock-Based                          Adjusted
                 Income     and           Compensation  Preopening  Financing  EBITDA
                 (Loss)     Amortization
Properties Not
Impacted by
Flooding
 Lake Charles,   $        $         $        $       $      $  
 Louisiana       6,715     7,055           35       -         -       13,805
 Kansas City,    9,161      3,017         10            -           -          12,188
 Missouri
 Boonville,      18,151     2,632         39            -           -          20,822
 Missouri
 Bettendorf,     8,370      6,128         16            -           -          14,514
 Iowa
 Marquette, Iowa 2,955      1,322         20            -           -          4,297
 Waterloo, Iowa  13,266     4,922         31            -           -          18,219
 Black Hawk,     10,011     8,961         30            -           -          19,002
 Colorado
 Pompano,        9,055      8,082         18            -           -          17,155
 Florida
                 77,684     42,119        199           -           -          120,002
Properties
Impacted by
Flooding
 Natchez,        2,620      1,118         21            -           -          3,759
 Mississippi
 Lula,           574        5,005         40            -           -          5,619
 Mississippi
 Vicksburg,      617        3,808         7             -           -          4,432
 Mississippi
 Caruthersville, 1,969      2,502         21            -           -          4,492
 Missouri
 Davenport, Iowa 5,151      1,669         21            -           -          6,841
                 10,931     14,102        110           -           -          25,143
Total Operating  88,615     56,221        309           -           -          145,145
Properties
 Corporate and   (30,336)   1,905         5,944         131         -          (22,356)
 Other
Total            $         $          $        $       $      $ 
                 58,279    58,126       6,253        131          -       122,789



Isle of Capri Casinos, Inc.
Reconciliation of Loss From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
                            Three Months Ended        Nine Months Ended
                            January 27,  January 22,  January 27,  January 22,
                            2013         2012         2013         2012
Loss from continuing        $         $        $        $   
operations                  (1,002)      (316)       (599)       (3,905)
 Income tax benefit         (302)        (200)        (166)        (2,383)
 Derivative income          (222)        (223)        (532)        (252)
 Interest income            (100)        (185)        (406)        (620)
 Interest expense           22,009       21,737       64,425       65,439
 Depreciation and           19,390       19,304       53,062       58,126
 amortization
 Stock-based compensation   1,171        1,874        4,066        6,253
 Preopening                 978          68           4,319        131
 Financing related          -            -            1,478        -
 Insurance recoveries       -            (872)        -            -
Adjusted EBITDA             $         $         $          $  
                            41,922       41,187       125,647      122,789

   Adjusted EBITDA is "earnings before interest and other non-operating income
   (expense), income taxes, stock-based compensation, preopening expense,
   refinancing expense and depreciation and amortization." 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, 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 Adjusted
   EBITDA as the primary measure of the Company's operating properties'
   performance, and they are important components in evaluating the
   performance of management and other operating personnel in the
1. determination of certain components of employee compensation. 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. A reconciliation of Adjusted EBITDA to income (loss) from
   continuing operations is included in the financial schedules accompanying
   this release.
   Certain of our debt agreements use a similar calculation of "Adjusted
   EBITDA" as a financial measure for the calculation of financial debt
   covenants and includes add back of items such as gain on early
   extinguishment of debt, pre-opening expenses, certain write-offs and
   valuation expenses, and non-cash stock compensation expense. Reference can
   be made to the definition of Adjusted EBITDA in the applicable debt
   agreements on file as Exhibits to our filings with the Securities and
   Exchange Commission.
   During the third quarter of fiscal 2012 we received insurance recoveries
2. related to the flood claims associated with flooding along the Mississippi
   River in the first quarter of fiscal 2012.



SOURCE Isle of Capri Casinos, Inc.

Website: http://www.islecorp.com
 
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