Isle Of Capri Casinos, Inc. Announces Fiscal 2014 Second Quarter Results

   Isle Of Capri Casinos, Inc. Announces Fiscal 2014 Second Quarter Results

PR Newswire

ST. LOUIS, Dec. 3, 2013

ST. LOUIS, Dec. 3, 2013 /PRNewswire/ --Isle of Capri Casinos, Inc. (NASDAQ:
ISLE) (the "Company") today reported financial results for the second quarter
of fiscal year 2014 ended October 27, 2013 and other Company-related news.

Consolidated Financial Results

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

                            Three Months Ended        Six Months Ended
                            October 27,  October 28,  October 27,  October 28,
                            2013         2012         2013         2012
Net revenues                $        $        $        $    
                            241.6        223.2        489.3        459.0
Consolidated Adjusted       39.6         38.7         82.9         83.7
EBITDA (1)
Income (loss) from          8.0          (4.3)        3.2          0.4
continuing operations
Loss from discontinued      -            (2.3)        -            (0.4)
operations
Net income (loss)           8.0          (6.6)        3.2          -
Diluted income (loss) per
share from continuing       0.20         (0.11)       0.08         0.01
operations
Diluted loss per share from -            (0.06)       -            (0.01)
discontinued operations
Diluted income (loss) per   0.20         (0.17)       0.08         -
share

    For a further description of Consolidated Adjusted EBITDA, refer to the
(1) reconciliation tables following the narrative and the definition of
    Adjusted EBITDA in footnote (1) of this release.

Diluted income (loss) per share from continuing operations for the quarter was
$0.20 compared to ($0.11) for the second quarter last year. Net income for the
current year quarter was impacted by a favorable judicial ruling on litigation
in Greece, in which the Company reversed a $14.7 million litigation accrual,
of which $7.3 million reduced operating expenses and $7.4 million reduced
interest expense. The results for the prior year quarter were impacted by
$2.7 million in preopening costs associated with the Cape Girardeau casino
which opened on October 30, 2012, and $2.5 million in refinancing costs.
Excluding these items, diluted earnings per share from continuing operations
for the fiscal 2014 quarter would have been a loss of ($0.17) compared to
break even ($0.00) for the prior year quarter.

Virginia McDowell, the Company's president and chief executive officer,
commented,

"As a company, we continue to make operating improvements and enhancements
across the portfolio, but we also continue to struggle with the effects of the
uncertain economy.

"During the fiscal quarter, we experienced a modest, $2.1 million decline in
same store revenue, and Adjusted EBITDA at these same properties declined $1.2
million, largely as a result of increased competition in Natchez and events we
could not have predicted, including the substantial flooding in Colorado and
the Federal government shutdown. However, we increased EBITDA at six
properties and margins increased at eight properties, including significant
performance improvements at our properties in Pompano, Vicksburg and Lake
Charles.

"While the uncertain consumer economy continues to be a drag on our results,
we continue to focus on maximizing the profitability of our portfolio and
enhancing shareholder value. To that end, we have recently undertaken a
top-to-bottom review of our business practices and are implementing bold
changes to the way we view and operate our business. We have begun a
wide-ranging initiative across our entire company to delete duplication,
streamline decision making and aggressively pursue additional cost savings.
These initiatives have contributed approximately $2.5 million to our results
so far this year and when fully implemented we expect the annualized run rate
will be at least $10 million.

"Furthermore, we are committed to improving profitability at our newest
facilities in Cape Girardeau and Nemacolin. Both markets continue to ramp
slower than we originally anticipated and we expect it will take a couple more
years to fully penetrate the markets. However, we are taking every possible
step to make the properties successful in the short term. We recently
introduced a new general manager in Cape Girardeau and will continue to modify
our cost structure in Nemacolin."

Operating Results

Black Hawk – Net revenues and Adjusted EBITDA each decreased approximately
$0.7 million to $30.0 million and $6.9 million, respectively, at our two
casinos in Black Hawk, primarily as a result of the widespread flooding in
Colorado during the period and construction disruption due to exterior
refurbishments at Lady Luck Black Hawk and road construction.

Pompano – Net revenues increased 8.0% to $36.4 million, and Adjusted EBITDA
increased 12.8%, to $5.5 million at Pompano Park. These results were driven
primarily by increased marketing promotions that led to a $5.1 million
increase in gross slot win during the period, partially offset by additional
marketing expenses.

Iowa – Net revenues decreased $1.5 million to $56.9 million, and Adjusted
EBITDA was essentially flat at $15.4 million at our properties in Iowa. Our
properties in Marquette and Waterloo were able to offset declines in net
revenue through cost containment efforts. In the Quad Cities, we were
hampered by the government shutdown and adjusted EBITDA decreased $0.2
million.

Lake Charles – Net revenues increased 5.0% to $31.2 million, and Adjusted
EBITDA increased 6.9% to $4.5 million. The Lake Charles property continues to
improve comparative results due to the benefits from facility enhancements,
database marketing initiatives, promotional events and advertising campaigns.
During the prior year quarter, results were impacted by construction
disruption associated with renovations to the primary hotel tower.

Missouri – Net revenues increased $10.1 million to $56.1 million, and Adjusted
EBITDA increased $0.5 million to $12.8 million at our properties in Missouri,
collectively. Cape Girardeau contributed $13.0 million in net revenues and
$1.6 million of Adjusted EBITDA in the fiscal 2014 quarter. Results at our
three other properties in the state were negatively impacted by growing
unemployment, the impact of the government shutdown in middle Missouri and
competitive pressures in the Kansas City market, resulting in a decrease in
net revenues and Adjusted EBITDA of $2.9 million and $1.1 million
respectively.

Mississippi – Net revenues grew $1.1 million to $7.0 million and Adjusted
EBITDA grew $0.4 million at our newly renovated Vicksburg facility, as market
share grew 410 basis points to 17.1% in the quarter. In Lula cost savings
efforts led to increased Adjusted EBITDA despite a $1.2 million decrease in
net revenue. In Natchez, the impact of a new competitor continues to hamper
operating results leading to a decrease in net revenues and Adjusted EBITDA of
$1.2 million and $0.9 million, respectively. Collectively, net revenues
decreased 5.2% to $23.4 million, and Adjusted EBITDA decreased 12.3% to $1.5
million at our properties in Mississippi.

Pennsylvania – Net revenues were $7.4 million, and Adjusted EBITDA was ($1.3)
million. This is the first year of operation for Lady Luck Casino at
Nemacolin Woodlands Resort, and the first full fiscal quarter of operation. We
continue to fine tune our marketing to both local customers and resort guests
and to aggressively manage our cost structure.

Corporate Expenses

Corporate and development expenses were $7.4 million for the quarter, a
decrease of $3.4 million compared to the prior year. Included in the results
for fiscal 2013 are $1.5 million in refinancing related costs and $1.0 million
in increased legal costs. The remainder of the decrease is attributable to
cost containment initiatives at the corporate office.

Non-cash stock compensation expense was $1.4 million for the quarter compared
to $1.5 million in the second quarter of fiscal 2013.

Corporate and development expenses for FY2014 are expected to be approximately
$30 million, including approximately $5 million for non-cash stock based
compensation expense, a decrease of $4 million from previous guidance
primarily a result of cost containment initiatives and a $1.0 million gain on
the sale of the corporate aircraft in the first quarter.

Development

Sale of Rhythm City Casino Davenport – In June 2013 we entered into an
agreement with Scott County Casino LLC, led by Dan Kehl, providing it with an
option to purchase Rhythm City for $51 million subject to certain terms and
conditions. On November 24, 2013 the City Council of Davenport approved the
terms of a development agreement with Scott County Casino, LLC. Mr. Kehl has
informed us that Scott County Casino, LLC intends to execute the option
agreement to purchase the property. Upon receipt of the notice to exercise and
other documentation we expect to enter into a definitive purchase agreement
with Scott County Casino, LLC.

The Provence, Philadelphia, Pennsylvania – On February 1, 2013, we entered
into an agreement with Tower Entertainment, LLC, to operate the proposed $700
million casino entertainment complex, dubbed The Provence, in Philadelphia, if
selected for licensure by the Pennsylvania Gaming Control Board. As proposed
the 1.25 million square foot project is expected to include a 125-room hotel,
a casino featuring approximately 3,300 electronic gaming machines and 150
table games, as well as a wide variety of non-gaming entertainment amenities,
including at least eight restaurants, many smaller bars and eateries, 60,000
square feet of retail space, a concert hall and several entertainment clubs.
The Pennsylvania Gaming Control Board has announced that suitability hearings
before the Board have been scheduled for January 28 – 30^th of 2014.

Capital Structure and Capital Expenditures

As of October 27, 2013, the Company had:

  o$70.0 million in cash and cash equivalents, excluding $9.8 million in
    restricted cash and investments;
  o$1.2 billion in total debt; and
  o$104 million in net line of credit availability.

Second quarter capital expenditures were $8.4 million, bringing total capital
expenditures to $38.2 million for the six months, of which $25.2 million
related to Nemacolin.

The Company expects to incur approximately $20 million to $22 million in
capital expenditures for the balance of fiscal 2014 bringing estimated total
capital expenditures for fiscal 2014 to approximately $58 million to $60
million, including the $25.2 million related to Nemacolin construction.

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Tuesday, December
3, 2013 at 10:00 am 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 866-652-5200. International callers can access the
conference call by dialing 412-317-6060. The conference call will be recorded
and available for review starting at 11:59 pm central on Tuesday, December 3,
2013, until midnight central on Tuesday, December 10, 2013, by dialing
877-344-7529; International: 412-317-0088 and access number 10037247.

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 casino properties that it owns and operates, primarily under the Isle and
Lady Luck brands. The Company currently owns and operates 16 gaming and
entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado,
Pennsylvania, and Florida. 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

www.islecorp.com



ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
                         Three Months Ended         Six Months Ended
                         October 27,   October 28,  October 27,  October 28,
                         2013          2012         2013         2012
Revenues:
Casino                   $  257,928  $           $           $  484,917
                                       234,648     520,070
Rooms                    8,713         8,328        17,628       16,958
Food, beverage,          33,728        30,437       68,944       63,243
pari-mutuel and other
Gross revenues           300,369       273,413      606,642      565,118
Less promotional         (58,789)      (50,206)     (117,333)    (106,088)
allowances
Net revenues             241,580       223,207      489,309      459,030
Operating expenses:
Casino                   41,267        36,802       83,010       75,298
Gaming taxes             65,722        58,619       131,698      120,247
Rooms                    1,880         1,781        3,789        3,554
Food, beverage,          10,590        9,217        21,659       19,321
pari-mutuel and other
Marine and facilities    14,802        13,888       29,850       27,588
Marketing and            61,844        56,464       123,950      114,420
administrative
Corporate and            7,386         10,777       14,084       19,250
development
Litigation accrual       (7,351)       -            (7,351)
reversal
Preopening expense       -             2,654        3,898        3,341
Depreciation and         21,102        16,850       41,497       33,672
amortization
Total operating          217,242       207,052      446,084      416,691
expenses
Operating income         24,338        16,155       43,225       42,339
Interest expense         (15,194)      (21,985)     (37,852)     (42,416)
Interest income          84            131          174          306
Derivative income        168           176          398          310
Income (loss) from
continuing operations
before
income taxes             9,396         (5,523)      5,945        539
Income tax (provision)   (1,359)       1,182        (2,770)      (136)
benefit
Income (loss) from       8,037         (4,341)      3,175        403
continuing operations
Loss from discontinued
operations, net of       -             (2,312)      -            (395)
income taxes
Net income (loss)        $          $          $         $     
                         8,037        (6,653)     3,175         8
Income (loss) per
common share-basic:
Income (loss) from       $        $         $        $    
continuing operations    0.20         (0.11)      0.08        0.01
Income from
discontinued
operations,
net of income taxes     -             (0.06)       -            (0.01)
Net income (loss)        $         $         $        $     
                         0.20         (0.17)      0.08         -
Income (loss) per
common share-dilutive:
Income (loss) from       $         $         $        $    
continuing operations    0.20         (0.11)      0.08        0.01
Income from
discontinued
operations,
net of income taxes     -             (0.06)       -            (0.01)
Net income (loss)        $         $         $        $     
                         0.20         (0.17)      0.08         -
Weighted average basic   39,686,217    39,336,134   39,634,573   39,177,208
shares
Weighted average         39,731,192    39,336,134   39,682,644   39,192,075
diluted shares

ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
                                     October 27,           April 28,
                                     2013                  2013
ASSETS                               (unaudited)
Current assets:
Cash and cash equivalents            $     69,958     $     68,469
Marketable securities                25,120                25,520
Accounts receivable, net             9,870                 11,077
Income taxes receivable              4,343                 4,789
Deferred income taxes                2,096                 1,573
Prepaid expenses and other assets    25,726                20,872
Total current assets                 137,113               132,300
Property and equipment, net          1,017,472             1,034,026
Other assets:
Goodwill                             280,803               280,803
Other intangible assets, net         67,690                60,748
Deferred financing costs, net        25,680                27,230
Restricted cash and investments      9,782                 11,417
Prepaid deposits and other           5,087                 7,075
Total assets                         $   1,543,627       $   1,553,599
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $        433   $        415
Accounts payable                    19,078                34,533
Accrued liabilities:
Payroll and related                  35,696                35,093
Property and other taxes             25,627                21,340
Interest                             17,073                18,502
Progressive jackpots and slot club   16,267                16,579
awards
Other                                30,996                29,337
Total current liabilities            145,170               155,799
Long-term debt, less current         1,162,264             1,156,469
maturities
Deferred income taxes                45,967                43,104
Other accrued liabilities            19,324                33,303
Other long-term liabilities          22,433                22,514
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:
42,066,148 at October 27, 2013 and  421                   421
at April 28, 2013
Class B common stock, $.01 par
value; 3,000,000 shares authorized;  -                     -
none issued
Additional paid-in capital           246,522               246,214
Retained earnings (deficit)          (71,052)              (74,227)
Accumulated other comprehensive      -                     (247)
(loss) income
                                     175,891             - 172,161
Treasury stock, 2,276,760 shares at
October 27, 2013 and 2,470,128
shares
at April 28, 2013                    (27,422)              (29,751)
Total stockholders' equity           148,469             - 142,410
Total liabilities and stockholders'  $   1,543,627       $   1,553,599
equity



Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
                          Three Months Ended         Six Months Ended
                          October 27,   October 28,  October 27,   October 28,
                          2013          2012         2013          2012
Colorado
   Black Hawk             $           $          $          $   
                          30,023       30,670      62,707       62,023
Florida
   Pompano                36,400        33,691       73,786        68,376
Iowa
   Bettendorf             18,965        19,694       38,430        39,549
   Davenport              9,959         10,390       19,675        21,036
   Marquette              6,911         7,332        14,023        14,713
   Waterloo               21,040        20,925       41,982        42,337
   Iowa Total             56,875        58,341       114,110       117,635
Louisiana
   Lake Charles           31,244        29,749       64,910        63,327
Mississippi
   Lula                   11,523        12,772       24,102        27,403
   Natchez                4,795         5,962        10,122        12,963
   Vicksburg              7,035         5,897        14,814        13,455
   Mississippi Total      23,353        24,631       49,038        53,821
Missouri
   Boonville              18,891        19,798       37,620        40,186
   Cape Girardeau         13,049        -            26,858        -
   Caruthersville         7,199         8,144        14,886        16,777
   Kansas City            16,936        18,012       35,007        36,532
   Missouri Total         56,075        45,954       114,371       93,495
Pennsylvania
   Nemacolin              7,429         -            10,022        -
Property Net Revenues     241,399       223,036      488,944       458,677
before Other
Other                     181           171          365           353
Net Revenues from         $  241,580  $           $         # $  
Continuing Operations                   223,207     489,309      459,030



Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                   Three Months Ended October 27, 2013
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        $      $        $        $       $   
Colorado                                        -  6,896
                   4,532     2,356         8
Pompano, Florida   3,727      1,788         6             -           5,521
Bettendorf, Iowa   3,276      1,679         3             -           4,958
Davenport, Iowa    1,727      580           4             -           2,311
Marquette, Iowa    1,242      487           1             -           1,730
Waterloo, Iowa     5,230      1,202         4             -           6,436
 Iowa Total      11,475     3,948         12            -           15,435
Lake Charles,      1,460      3,003         4             -           4,467
Louisiana
Lula, Mississippi  (186)      1,322         3             -           1,139
Natchez,           (736)      342           4             -           (390)
Mississippi
Vicksburg,         (110)      891           4             -           785
Mississippi
 Mississippi     (1,032)    2,555         11            -           1,534
Total
Boonville,         5,762      911           6             -           6,679
Missouri
Cape Girardeau,    (1,225)    2,788         1             -           1,564
Missouri
Caruthersville,    325        742           4             -           1,071
Missouri
Kansas City,       2,560      961           4             -           3,525
Missouri
 Missouri Total  7,422      5,402         15            -           12,839
Nemacolin,         (3,013)    1,670         1                         (1,342)
Pennsylvania
Total Operating    24,571     20,722        57            -           45,350
Properties
Corporate and      (233)      380           1,446         (7,351)     (5,758)
Other
                   $      $        $        $       $  
Total                                   1,503     (7,351)   39,592
                   24,338    21,102
                   Three Months Ended October 28, 2012
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        $      $        $        $       $   
Colorado                                 14      -  7,659
                   5,435     2,210
Pompano, Florida   3,083      1,803         8             -           4,894
Bettendorf, Iowa   3,578      1,770         4             -           5,352
Davenport, Iowa    1,566      546           6             -           2,118
Marquette, Iowa    1,172      445           5             -           1,622
Waterloo, Iowa     5,218      1,165         6             -           6,389
 Iowa Total      11,534     3,926         21            -           15,481
Lake Charles,      1,867      2,310         2             -           4,179
Louisiana
Lula, Mississippi  (803)      1,702         6             -           905
Natchez,           118        359           5             -           482
Mississippi
Vicksburg,         (860)      1,218         5             -           363
Mississippi
 Mississippi     (1,545)    3,279         16            -           1,750
Total
Boonville,         5,918      886           6             -           6,810
Missouri
Cape Girardeau,    (2,654)    -             -             2,654       -
Missouri
Caruthersville,    593        835           5             -           1,433
Missouri
Kansas City,       3,152      980           4             -           4,136
Missouri
 Missouri Total  7,009      2,701         15            2,654       12,379
Nemacolin,         -          -             -             -           -
Pennsylvania
Total Operating    27,383     16,229        76            2,654       46,342
Properties
Corporate and      (11,228)   621           1,501         1,478       (7,628)
Other
                   $      $        $        $       $  
Total                                   1,577     4,132    38,714
                   16,155    16,850

Isle of Capri Casinos, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(unaudited, in thousands)
                   Six Months Ended October 27, 2013
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        $      $        $        $       $  
Colorado                                  19      -  15,310
                   10,616    4,675
Pompano, Florida   7,894      3,634         13            -           11,541
Bettendorf, Iowa   6,489      3,378         7             -           9,874
Davenport, Iowa    2,517      1,173         9             -           3,699
Marquette, Iowa    2,462      965           4             -           3,431
Waterloo, Iowa     9,858      2,422         10            -           12,290
 Iowa Total      21,326     7,938         30            -           29,294
Lake Charles,      4,194      5,880         9             -           10,083
Louisiana
Lula, Mississippi  176        2,648         8             -           2,832
Natchez,           (1,335)    693           9             -           (633)
Mississippi
Vicksburg,         270        1,896         9             -           2,175
Mississippi
 Mississippi     (889)      5,237         26            -           4,374
Total
Boonville,         10,987     2,063         12            -           13,062
Missouri
Cape Girardeau,    (1,910)    5,575         4             -           3,669
Missouri
Caruthersville,    782        1,547         10            -           2,339
Missouri
Kansas City,       5,400      1,937         8             -           7,345
Missouri
 Missouri Total  15,259     11,122        34            -           26,415
Nemacolin,         (8,024)    2,227         1             3,898       (1,898)
Pennsylvania
Total Operating    50,376     40,713        132           3,898       95,119
Properties
Corporate and      (7,151)    784           2,505         (8,370)     (12,232)
Other
                   $      $        $        $       $  
Total                                   2,637     (4,472)   82,887
                   43,225    41,497
                   Six Months Ended October 28, 2012
                   Operating  Depreciation  Stock-Based   Preopening  Adjusted
                   Income     and           Compensation  and Other   EBITDA
                   (Loss)     Amortization
Black Hawk,        $      $        $        $       $   
Colorado                                  24      -  15,225
                   10,843    4,358
Pompano, Florida   5,820      3,577         14            -           9,411
Bettendorf, Iowa   7,108      3,483         9             -           10,600
Davenport, Iowa    3,167      1,074         11            -           4,252
Marquette, Iowa    2,431      876           10            -           3,317
Waterloo, Iowa     10,132     2,657         11            -           12,800
 Iowa Total      22,838     8,090         41            -           30,969
Lake Charles,      5,230      4,422         6             -           9,658
Louisiana
Lula, Mississippi  304        3,425         11            -           3,740
Natchez,           961        827           10            -           1,798
Mississippi
Vicksburg,         (265)      2,262         9             -           2,006
Mississippi
 Mississippi     1,000      6,514         30            -           7,544
Total
Boonville,         12,412     1,753         11            -           14,176
Missouri
Cape Girardeau,    (3,341)    -             -             3,341       -
Missouri
Caruthersville,    1,416      1,691         10            -           3,117
Missouri
Kansas City,       6,267      2,019         6             -           8,292
Missouri
 Missouri Total  16,754     5,463         27            3,341       25,585
Nemacolin,         -          -             -             -           -
Pennsylvania
Total Operating    62,485     32,424        142           3,341       98,392
Properties
Corporate and      (20,146)   1,248         2,753         1,478       (14,667)
Other
                   $      $        $        $       $  
Total                                   2,895     4,819    83,725
                   42,339    33,672



Isle of Capri Casinos, Inc.
Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
(unaudited, in thousands)
                           Three Months Ended         Six Months Ended
                           October 27,   October 28,  October 27,  October 28,
                           2013          2012         2013         2012
Income (loss) from         $          $          $         $    
continuing operations      8,037        (4,341)      3,175       403
   Income tax provision    1,359         (1,182)      2,770        136
   (benefit)
   Derivative income       (168)         (176)        (398)        (310)
   Interest income         (84)          (131)        (174)        (306)
   Interest expense        15,194        21,985       37,852       42,416
   Depreciation and        21,102        16,850       41,497       33,672
   amortization
   Stock-based             1,503         1,577        2,637        2,895
   compensation
   Litigation accrual      (7,351)       -            (7,351)      -
   reversal
   Preopening expense      -             2,654        3,898        3,341
   Gain on sale of         -             -            (1,019)      -
   airplane
   Financing related       -             1,478        -            1,478
Adjusted EBITDA            $           $          $          $  
                           39,592       38,714       82,887      83,725



   Adjusted EBITDA is "earnings before interest and other non-operating income
   (expense), income taxes, stock-based compensation, preopening 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 determination of certain components of employee
1. 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.

SOURCE Isle of Capri Casinos, Inc.

Website: http://www.islecorp.com
 
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