[LETTERHEAD]
FOR IMMEDIATE RELEASE
---------------------
ISLE OF CAPRI CASINOS, INC. ANNOUNCES 27% INCREASE IN E.P.S.
Biloxi, Mississippi, August 22, 2000. Isle of Capri Casinos, Inc. (NASDAQ:ISLE
) today reported earnings per diluted share of $.33 for the first quarter ended
July 30, 2000 compared to $.26 per share for the first quarter of the prior
year, a 27% increase.
The positive results were driven by the improved combined operating results of
the original five Isle properties, the inclusion for the full quarter of the new
Isle properties in Natchez and Lula, Mississippi, and Bettendorf and Marquette,
Iowa, as well as the inclusion for part of the quarter of our latest Isle
property in Kansas City, MO.
Bernard Goldstein, Chairman and Chief Executive Officer commented, "We are very
pleased with the year over year improvement in operating results for the first
quarter as we continue to implement our growth strategy. In May we acquired the
rights to develop a casino project in Boonville, MO and it is currently under
construction. In June we welcomed Kansas City Isle of Capri into the Isle
Family as an existing operation. In July we signed an agreement to acquire
the operations of an existing Davenport, IA casino property and are moving
forward in pursuing the necessary approvals. Also in July, we were approved
by the Missouri Gaming Commission to develop a gaming entertainment facility
in Jefferson County, MO. Earlier in August we opened our new 237-room hotel
in Black Hawk, CO, and are continuing construction of a 250-room hotel in Lake
Charles, LA and also a 227-room hotel in Tunica, MS."
Jack Gallaway, President and Chief Operating Officer added, "We are continuing
the process of Islestyling the latest additions to our Isle family, expanding
our brand into new markets and strengthening it in existing markets. With EBITDA
growth of 73% to $57.6 million for the first quarter of this year we are just
beginning to see the fruits of our labor."
Summarized below and on the attached pages are the financial results for the
corporation on a consolidated basis, with operating highlights for some of its
gaming facilities.
<TABLE>
<CAPTION>
<S> <C> <C>
(Unaudited)
QTR QTR
(In thousands, except per share data) . . . . . . . . 7/30/00 7/25/99
-------- --------
Casino Revenue. . . . . . . . . . . . . . . . . . . . $230,335 $128,334
Hotel, Pari-mutuel, Food and Beverage, Other Revenue. 21,127 13,873
-------- --------
Total Revenue . . . . . . . . . . . . . . . . . . . . 251,462 142,207
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 10,569 $ 6,528
Net Income per Diluted Share. . . . . . . . . . . . . $ 0.33 $ 0.26
Weighted Average Common Shares. . . . . . . . . . . . 32,326 24,661
EBITDA (1). . . . . . . . . . . . . . . . . . . . . . $ 57,644 $ 33,265
</TABLE>
See footnotes on the following pages, for details regarding the above operating
results.
(1) - See EBITDA defined in footnote (2) of Comparative Financial Highlights.
<PAGE>
<TABLE>
<CAPTION>
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
(Unaudited)
<S> <C> <C>
JULY 30, JULY 25,
2000 1999
---------- ----------
Revenue:
Casino $ 230,335 $ 128,334
Hotel, pari-mutuel, food, beverage & other 21,127 13,873
---------- ----------
Total revenue 251,462 142,207
Operating and other expenses:
Corporate and new development 4,712 3,815
Properties 189,106 105,127
Preopening (1) - 3,420
Depreciation and amortization 15,221 8,856
---------- ---------
Total operating and other expenses 209,039 121,218
Operating income 42,423 20,989
Gain on disposal (2) - 3,106
Equity in income of
unconsolidated joint venture (3) - 52
Net interest expense (4) (20,992) (11,402)
Minority interest (5) (1,404) (490)
---------- ---------
Income before income taxes 20,027 12,255
Income tax expense 9,458 5,727
---------- ---------
Net income $ 10,569 $ 6,528
========== =========
Net Income per diluted share $ 0.33 $ 0.26
Weighted average diluted common shares 32,326 24,661
</TABLE>
(1) Preopening of $3.4 million relates to expenses incurred with the opening
of the Isle of Capri Casino in Tunica, MS in the first quarter of fiscal
2000.
(2) Gain on Disposal relates to the sale of an option to purchase land
adjacent to the Pompano Park, Inc. facility.
(3) Equity in unconsolidated joint venture represents the Company's
ownership interest in the Enchanted Capri cruise ship, a joint venture
with an unrelated third-party.
(4) Consolidated interest expense is net of interest income of $2,401 and
$708 and capitalized interest of $1,329 and $944, for the quarters
ended July 30, 2000 and July 25, 1999, respectively.
Included in the consolidated interest is Isle of Capri Black Hawk,
L.L.C.'s gross interest expense of $2,768 and $2,681, interest income
of $30 and $91, and capitalized interest of $726 and $244, for the
quarters ended July 30, 2000 and July 25, 1999, respectively.
(5) Minority interest represents the portion of Isle of Capri Black Hawk,
L.L.C. income before income taxes owned by an unrelated third-party.
<PAGE>
<TABLE>
<CAPTION>
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
--------------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
--------------------
JULY 30, JULY 25,
2000 1999
-------------------- -----------------
REVENUE (1) EBITDA (2) MARGIN % REVENUE (1) EBITDA (2) MARGIN %
----------- ---------- --------- ----------- ----------- --------
BILOXI. . . . . . . . $ 22,786 $ 5,402 23.7% $ 23,372 $ 6,389 27.3%
VICKSBURG . . . . . . 16,413 5,376 32.8% 15,750 4,893 31.1%
BOSSIER CITY. . . . . 41,061 11,965 29.1% 32,755 8,539 26.1%
LAKE CHARLES. . . . . 48,008 14,032 29.2% 44,728 11,958 26.7%
BLACK HAWK (3). . . . 25,678 7,192 28.0% 20,229 5,124 25.3%
TUNICA (4). . . . . . 7,000 (1,003) (14.3%) - - 0.0%
NATCHEZ (5) . . . . . 10,116 2,824 27.9% 8,900 2,082 23.4%
LULA (5). . . . . . . 27,301 7,624 27.9% 27,776 7,455 26.8%
BETTENDORF (5). . . . 25,007 5,556 22.2% 24,923 7,182 28.8%
MARQUETTE (5) . . . . 9,237 2,301 24.9% 9,654 2,209 22.9%
KANSAS CITY (6) . . . 12,754 1,001 7.8% 11,500 333 2.9%
CORPORATE & OTHER (3) 6,101 (4,626) (75.8%) 5,373 (3,638) (67.7%)
--------- ----------- -------- ---------- ----------- --------
TOTAL . . . . . . . $ 251,462 $ 57,644 22.9% $ 224,960 $ 52,526 23.3%
========= =========== ======== ========== =========== ========
</TABLE>
(1) - Total Revenue is presented net of complimentaries.
(2) - EBITDA is calculated by adding income taxes, net interest expense,
minority interest, equity in unconsolidated joint ventures,
depreciation and amortization, and preopening expense to net income.
(3) - EBITDA includes equipment operating lease expense for QTD and
Prior Year QTD of $904 and $929, respectively; and excludes
Management Fee Expense for QTD and Prior Year QTD of $1,019 and $860,
respectively. Corporate and other EBITDA includes miscellaneous
income. Prior Year QTD corporate and other does not include any
Lady Luck Gaming corporate expenses.
(4) - Isle Tunica commenced operations in July 1999.
(5) - These properties were not acquired by Isle of Capri Casinos, Inc.
until March 2, 2000 during the fiscal 2000 period and accordingly
their results are not included in the consolidated results for the
quarter ended July 25, 1999.
(6) - Kansas City was not acquired by Isle of Capri Casinos, Inc. until
June 6, 2000 during the fiscal 2001 period and accordingly it's
results are not included in the consolidated results for the quarter
ended July 25, 1999.
Isle of Capri Casinos, Inc. owns and operates twelve riverboat, dockside and
land-based casinos at eleven locations, including Biloxi, Vicksburg, Tunica,
Lula, and Natchez, Mississippi; Bossier City and Lake Charles (two riverboats),
Louisiana; Black Hawk, Colorado; Bettendorf and Marquette, Iowa and Kansas City,
Missouri. The Company also operates Pompano Park Harness Racing Track in
Pompano Beach, Florida and through a joint venture, the Enchanted Capri cruise
ship, that features an Isle of Capri Casino, sailing from New Orleans,
Louisiana.
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, permits, competition
and business conditions in the gaming industry. 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 30, 2000.
NOTE: OTHER ISLE OF CAPRI CASINOS, INC. PRESS RELEASES AND A CORPORATE PROFILE
ARE AVAILABLE BY FAX AT NO CHARGE. FOR A MENU OF AVAILABLE ISLE OF CAPRI
CASINOS, INC. PRESS RELEASES, CALL 800/758-5804, EXT. 145913 OR AT
HTTP://WWW.PRNEWSWIRE.COM. ISLE OF CAPRI'S HOME PAGE IS
HTTP://WWW.ISLECORP.COM.
CONTACTS:
ALLAN SOLOMON, EXECUTIVE VICE PRESIDENT 561/995-6660
REX YEISLEY, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 228/396-7000
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