- Significant Property and Corporate Cost Reductions Largely Offset Revenue Decline
- Measurable Operational Progress Made Through Customer Service Initiatives
- Final $95 million of Hurricane Katrina Insurance Proceeds Received
ST. LOUIS, March 3 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the third fiscal quarter ended January 25, 2009 and other Company-related news.
CONSOLIDATED RESULTS
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Net revenues, excluding
hurricane insurance
recoveries $248.2 $269.7 $784.6 $827.0
Net revenues 308.2 269.7 844.6 827.0
Net income (loss) 46.1 (13.8) 29.0 (45.6)
Net income (loss) per share 1.45 (0.45) 0.93 (1.49)
EBITDA(1) 130.7 40.3 217.7 122.5
In making the announcement, James B. Perry, the Company's executive vice chairman and chief executive officer, said, "While we continue to be aware of the uncertainty in businesses that rely on consumer spending during this global economic downturn, we are also optimistic about our business because of the operational changes we have made that have had a positive impact on guest satisfaction and courtesy rankings. We have made measurable progress in reducing our expenses and improving our balance sheet as a result of a number of initiatives we have undertaken during the past 18 months. While economic and regulatory challenges have led to a net revenue decline of over $42 million, for the first three quarters of fiscal 2009, we implemented cost savings measures and other operating improvements that have helped us offset all but $12 million of this amount, resulting in recurring Property EBITDA of $164 million for the first three quarters of this fiscal year. Similar efforts in the corporate office allowed us to reduce cash corporate expenses 24% during the current quarter compared to the comparable quarters of the previous fiscal year.
"In late December we settled the insurance claim related to our Biloxi property for damage sustained during Hurricane Katrina for $225 million and received the final $95 million of cash proceeds during the quarter.
"These operational improvements along with the insurance settlement allowed us to recently complete a bond tender offer which provides significant additional financial flexibility moving forward. Further, as we focus on improving our domestic operations and implementing our strategic plan, we are continuing to take the necessary steps to exit our operations in the UK and the Bahamas in the near term."
Significant items impacting EBITDA and the net income during the three and nine months ended January 25, 2009 and January 27, 2008 are as follows:
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Items impacting EBITDA and
Net Loss:
Hurricane Katrina
Settlement $92.2 $- $92.2 $-
Write-offs and other charges - - (6.0) (6.5)
Pre-opening - - - (6.5)
Development - (1.5) (0.2) (3.9)
Minority interest - (0.9) - (4.9)
Additional item impacting
Net Loss:
Loss on early extinguishment
of debt - - - (13.7)
Third Quarter Highlights
The Company reported net income for the quarter of $46.1 million, or $1.45 per diluted share, compared to a loss of ($13.8) million, or ($0.45) per diluted share, for the same period of fiscal 2008. The impact of the insurance settlement was $1.87 per share during fiscal 2009.
During the quarter, net revenues before insurance proceeds decreased $21.5 million, to $248.2 million, as compared to the third quarter of fiscal 2008.
Before consideration of the items reflected in the above table, EBITDA for the third quarter decreased by $4.2 million, to $38.5 million, compared to $42.7 million for the third quarter of fiscal 2008 and Property EBITDA for the third quarter decreased $5.4 million, to $47.4 million, compared to Property EBITDA of $52.8 million for the comparable quarter last year.
In commenting on the results, Virginia McDowell, the Company's president and chief operating officer, remarked, "While our quarter had many bright spots, it has also clearly shown the challenges we still must confront, particularly in Biloxi and Pompano. Overall, I am encouraged by our performance in January and the trends we are seeing in February, which sharply improved from November and December. Our results in the quarter were negatively impacted by the renovations to our hotels in Lake Charles and Lula, but we made outstanding progress at our property in Waterloo, where our EBITDA increased over 30% during the quarter compared to last fiscal year. We also have opportunities in Colorado and Missouri as a result of recent regulatory changes. In addition, we continue to implement and modify our strategic plan from both a product and administrative perspective. We have completed the exterior re-branding of our first two Lady Luck properties - in Caruthersville and Marquette - and have a significant portion of our brand leadership in place.
"I am encouraged by the progress we have made to enhance the customer experience at our properties, even while reducing our expenses in order to lower our cost basis. Although we have prudently reduced our payroll and eliminated unnecessary programs at our properties in response to the negative impact of the national economy, we have been able to simultaneously improve our customer service scores through our See. Say. Smile. program. In fact, our positive customer feedback has increased by 45% since the inception of the program nine months ago, and our scores have increased at a rate even greater than we had expected.
"We have made progress in our efforts to streamline and improve our marketing campaigns while decreasing our overall marketing and promotional expenditures. We are also in the process of introducing a new marketing campaign for many of our properties that focuses on the value proposition that we are creating at these sites by lowering our hold percentages to increase time on device, and introducing attractive new amenity price points to make our properties the clear value choice in our target markets. In addition, we have are been able to better utilize our technology to both improve offers for our highest value customers and to re-activate dormant customers in certain markets."
Corporate and Development Expenses
Corporate and development expenses during the third quarter of fiscal 2009 decreased to $9.0 million from $11.8 million during the comparable quarter in fiscal 2008. This decrease in corporate and development expense reflects our continued efforts to reduce our corporate overhead and includes reductions related to consulting services, insurance and compensation-related charges. In line with our overall cost reduction efforts, corporate and development expense during the nine months ended January 25, 2009 decreased to $32.6 million from $35.8 million.
Total consolidated stock compensation expense, including corporate and properties, was $1.4 million for the third quarter of fiscal 2009 compared to $1.7 million for the third quarter of fiscal 2008. For the nine months ended January 25, 2009 stock compensation expense was $7.8 million compared to $5.4 million for the nine months ended January 27, 2008.
A loss from early extinguishment of debt was recognized for the nine months ended January 27, 2008 of $13.7 million. This included a $11.5 million loss from early extinguishment of debt related to the retirement of our 9% Senior Subordinated Notes refinanced by our Senior Credit Facility and a $2.2 million loss from the early extinguishment of our February 2005 Credit Facility, which was replaced with our July 2007 Credit Facility.
Capital Structure and Capital Expenditures Update
As of January 25, 2009, the Company had $216.7 million cash, cash equivalents and restricted cash and total debt of $1.5 billion. Total borrowing capacity at the end of the quarter was approximately $325.4 million
During February 2009, the Company repurchased $142.7 million of our Senior Subordinated Notes for $82.8 million through a tender offer from our available cash and cash equivalents. After expenses related to the elimination of deferred finance costs and transactions costs, the Company expects to recognize a pretax gain of approximately $57.0 million during our fourth quarter ending April 26, 2009. In addition the Company recently notified our banks of our intention to repay approximately $35.0 million on our credit facility from the balance of the insurance proceeds and other funds, in accordance with the provisions of our credit agreement.
Taking into consideration the tender and term loan reduction, pro forma capitalization as of January 25, 2009 is as follows (in millions):
Pro Forma
As Adjusted
January 25, Pro Forma January 25,
2009 Adjustments 2009
Cash and cash equivalents $181.7 $(82.8)(a) $98.9
Restricted cash - short term $35.0 $(35.0)(b) $-
Senior Secured Credit Facility:
July 2007 Credit Facility:
Revolving line of credit $128.0 $- $128.0
Term loans 862.7 (35.0)(b) 827.7
7% Senior Subordinated Notes 500.0 (142.7)(a) 357.3
Other 6.3 - 6.3
1,497.0 (177.7) 1,319.3
Less current maturities 44.2 (35.0)(b) 9.2
Long-term debt $1,452.8 $(142.7) $1,310.1
(a) Reflects repurchase of our Senior Subordinated Notes under the terms
of our tender offer.
(b) Reflects pending with insurance proceeds and other funds required by
our Senior Credit Facility.
Capital expenditures for the three months ended January 25, 2009, totaled $15 million of which, approximately $9 million related to project capital expenditures.
For the nine months ended January 25, 2009, capital expenditures were approximately $45 million, of which approximately $23 million was related to project capital. Capital expenditures for the last quarter of the year are expected to be approximately $20 million, of which approximately $8 million is expected to be project capital, primarily attributable to completion of the rebranding efforts in Caruthersville and Marquette.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Tuesday, March 3, 2009, 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) 783-2146. Other international callers can access the conference call by dialing (857) 350-1605. The conference call reference number is 49657642.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Revenues:
Casino $252,158 $269,480 $788,814 $824,996
Rooms 9,216 10,674 35,696 37,595
Pari-mutuel, food,
beverage and other 33,427 38,123 104,545 114,208
Hurricane insurance
recoveries 60,000 - 60,000 -
Gross revenues 354,801 318,277 989,055 976,799
Less promotional
allowances 46,625 48,612 144,434 149,763
Net revenues 308,176 269,665 844,621 827,036
Operating expenses:
Casino 39,360 40,963 119,463 121,656
Gaming taxes 63,790 70,123 198,657 211,160
Rooms 2,624 2,507 9,206 8,852
Pari-mutuel 2,972 4,436 9,087 11,280
Food, beverage and other 9,908 10,614 31,500 33,643
Marine and facilities 15,921 16,852 50,214 50,123
Marketing and
administrative 66,085 71,174 202,386 214,173
Corporate and
Development 9,039 11,846 32,570 35,839
Hurricane insurance
recoveries (32,179) - (32,179) -
Pre-opening, write-offs
and other charges - - 6,000 12,983
Depreciation and
amortization 30,981 34,871 95,988 100,698
Total operating
expenses 208,501 263,386 722,892 800,407
Operating income 99,675 6,279 121,729 26,629
Interest expense (24,872) (27,548) (74,365) (82,538)
Interest income 752 872 1,808 3,106
Loss on early
extinguishment of debt - - - (13,660)
Income (loss) before
income taxes and
minority interest 75,555 (20,397) 49,172 (66,463)
Income tax (provision)
benefit (29,442) 7,443 (20,185) 25,732
Minority interest - (895) - (4,868)
Net income (loss) $46,113 $(13,849) $28,987 $(45,599)
Earnings (loss) per
common share-basic:
Net income (loss) $1.45 $(0.45) $0.93 $(1.49)
Earnings (loss) per common
share-diluted:
Net income (loss) $1.45 $(0.45) $0.93 $(1.49)
Weighted average basic
shares 31,765,365 30,836,139 31,240,008 30,651,056
Weighted average
diluted
shares 31,765,365 30,836,139 31,248,402 30,651,056
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(unaudited)
ASSETS January 25, April 27,
2009 2008
Current assets:
Cash and cash equivalents $181,713 $91,790
Marketable securities 15,971 18,533
Accounts receivable, net 8,897 12,195
Insurance receivable, net 1,209 7,689
Income tax receivable 9,987 28,663
Deferred income taxes 9,866 12,606
Restricted cash 35,000
Prepaid expenses and other assets 30,656 27,905
Total current assets 293,299 199,381
Property and equipment, net 1,247,967 1,328,986
Other assets:
Goodwill 324,336 307,649
Other intangible assets, net 95,834 89,252
Deferred financing costs, net 11,459 13,381
Restricted cash 2,774 4,802
Prepaid deposits and other 19,122 22,948
Deferred income taxes - 7,767
Total assets $1,994,791 $1,974,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $44,228 $9,698
Accounts payable 20,125 29,283
Accrued liabilities:
Interest 17,757 8,580
Payroll and related 44,390 47,618
Property and other taxes 29,262 30,137
Other 56,780 58,121
Total current liabilities 212,542 183,437
Long-term debt, less current maturities 1,452,811 1,497,591
Deferred income taxes 11,756 -
Other accrued liabilities 58,372 52,821
Other long-term liabilities 48,351 52,305
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares
authorized; none issued - -
Common stock, $.01 par value; 45,000,000 shares
authorized; shares issued:
36,114,694 at January 25, 2009 and 35,229,006
at April 27, 2008 362 353
Class B common stock, $.01 par value; 3,000,000
shares authorized; none issued - -
Additional paid-in capital 194,496 188,036
Retained earnings 87,240 58,253
Accumulated other comprehensive income (loss) (18,740) (5,601)
263,358 241,041
Treasury stock, 4,340,476 shares at January 25,
2009 and 4,372,073 shares at April 27, 2008 (52,399) (53,029)
Total stockholders' equity 210,959 188,012
Total liabilities and stockholders' equity $1,994,791 $1,974,166
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues
(unaudited, in thousands)
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Mississippi
Biloxi (2) $18,278 $20,073 $61,733 $67,844
Natchez 8,797 8,699 25,894 27,119
Lula 16,312 17,458 50,659 55,523
Mississippi Total 43,387 46,230 138,286 150,486
Louisiana
Lake Charles 38,003 38,074 112,105 118,578
Missouri
Kansas City 17,492 17,457 53,063 55,934
Boonville 18,151 18,325 56,996 59,394
Caruthersville (3) 7,282 7,129 22,428 18,968
Missouri Total 42,925 42,911 132,487 134,296
Iowa
Bettendorf 19,414 21,061 68,695 67,641
Davenport 11,520 12,158 35,462 38,835
Marquette 5,837 6,695 22,651 25,067
Waterloo (3) 18,814 18,040 58,680 45,109
Iowa Total 55,585 57,954 185,488 176,652
Colorado
Black Hawk/Colorado
Central Station 28,054 33,524 92,667 112,052
Florida
Pompano (3) 33,752 41,274 101,772 111,867
International
Blue Chip 1,465 2,254 5,368 6,809
Coventry (3) 2,260 3,182 7,830 5,158
Our Lucaya 2,632 4,081 8,277 10,790
International Total 6,357 9,517 21,475 22,757
Insurance Recoveries -
Biloxi (2) 60,000 - 60,000 -
Other 113 181 341 348
$308,176 $269,665 $844,621 $827,036
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA
(unaudited, in thousands)
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Mississippi
Biloxi (2) $734 $2,683 $6,980 $11,942
Natchez 3,103 2,724 8,810 8,295
Lula 4,164 4,666 13,790 14,956
Mississippi Total 8,001 10,073 29,580 35,193
Louisiana
Lake Charles 8,662 8,552 24,816 26,773
Missouri
Kansas City 3,234 2,660 9,511 8,672
Boonville 5,577 5,869 17,920 18,666
Caruthersville (3) 1,202 1,714 4,151 4,642
Missouri Total 10,013 10,243 31,582 31,980
Iowa
Bettendorf 5,227 5,895 22,741 20,648
Davenport 3,096 3,215 10,605 9,418
Marquette 470 868 5,157 5,693
Waterloo (3) 4,424 3,361 16,146 6,842
Iowa Total 13,217 13,339 54,649 42,601
Colorado
Black Hawk/Colorado
Central Station 6,421 10,506 23,748 38,416
Florida
Pompano (3) 2,266 2,261 4,273 4,499
International
Blue Chip (83) (258) (389) (667)
Coventry (3) (457) (1,740) (2,783) (9,994)
Our Lucaya (639) (169) (1,713) (1,125)
International Total (1,179) (2,167) (4,885) (11,786)
Total Property EBITDA(1)
Before Insurance
Recoveries 47,401 52,807 163,763 167,676
Insurance Recoveries -
Biloxi (2) 92,179 - 92,179 -
Total Property
EBITDA(1) 139,580 52,807 255,942 167,676
Corporate, Development
and Other(4)(5) (8,924) (11,657) (38,225) (40,349)
Minority Interest - (895) - (4,868)
Total EBITDA(1) $130,656 $40,255 $217,717 $122,459
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA
(unaudited, in thousands)
Three Months Ended Three Months Ended
January 25, 2009 January 27, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi (2) $(3,363) $4,097 $734 $(1,960) $4,643 $2,683
Natchez 2,412 691 3,103 1,819 905 2,724
Lula 2,132 2,032 4,164 1,948 2,718 4,666
Mississippi
Total 1,181 6,820 8,001 1,807 8,266 10,073
Louisiana
Lake Charles 5,584 3,078 8,662 4,758 3,794 8,552
Missouri
Kansas City 2,063 1,171 3,234 1,076 1,584 2,660
Boonville 4,365 1,212 5,577 4,557 1,312 5,869
Caruthers-
ville (3) 28 1,174 1,202 94 1,620 1,714
Missouri Total 6,456 3,557 10,013 5,727 4,516 10,243
Iowa
Bettendorf 2,981 2,246 5,227 3,570 2,325 5,895
Davenport 2,060 1,036 3,096 1,944 1,271 3,215
Marquette (150) 620 470 153 715 868
Waterloo (3) 1,501 2,923 4,424 749 2,612 3,361
Iowa Total 6,392 6,825 13,217 6,416 6,923 13,339
Colorado
Black Hawk/
Colorado
Central
Station 2,539 3,882 6,421 6,509 3,997 10,506
Florida
Pompano (3) (1,961) 4,227 2,266 (1,730) 3,991 2,261
International
Blue Chip (152) 69 (83) (405) 147 (258)
Coventry (3) (1,518) 1,061 (457) (3,589) 1,849 (1,740)
Our Lucaya (643) 4 (639) (173) 4 (169)
International
Total (2,313) 1,134 (1,179) (4,167) 2,000 (2,167)
Total Properties
Before Insurance
Recoveries 17,878 29,523 47,401 19,320 33,487 52,807
Insurance
Recoveries -
Biloxi (2) 92,179 - 92,179 - - -
Total
Properties 110,057 29,523 139,580 19,320 33,487 52,807
Corporate,
Development and
Other (4)(5) (10,382) 1,458 (8,924) (13,041) 1,384 (11,657)
Minority
Interest - - - - - (895)
$99,675 $30,981 $130,656 $6,279 $34,871 $40,255
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA
(unaudited, in thousands)
Nine Months Ended Nine Months Ended
January 25, 2009 January 27, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi (2) $(6,094) $13,074 $6,980 $(2,177) $14,119 $11,942
Natchez 6,430 2,380 8,810 5,495 2,800 8,295
Lula 7,384 6,406 13,790 6,123 8,833 14,956
Mississippi
Total 7,720 21,860 29,580 9,441 25,752 35,193
Louisiana
Lake Charles 15,293 9,523 24,816 15,284 11,489 26,773
Missouri
Kansas City 5,920 3,591 9,511 4,320 4,352 8,672
Boonville 14,279 3,641 17,920 14,853 3,813 18,666
Caruthers-
ville (3) 658 3,493 4,151 2,050 2,592 4,642
Missouri
Total 20,857 10,725 31,582 21,223 10,757 31,980
Iowa
Bettendorf 15,948 6,793 22,741 13,454 7,194 20,648
Davenport 7,383 3,222 10,605 5,506 3,912 9,418
Marquette 3,162 1,995 5,157 3,411 2,282 5,693
Waterloo (3) 7,506 8,640 16,146 524 6,318 6,842
Iowa Total 33,999 20,650 54,649 22,895 19,706 42,601
Colorado
Black Hawk/
Colorado
Central
Station 10,891 12,857 23,748 26,451 11,965 38,416
Florida
Pompano (3) (8,332) 12,605 4,273 (7,345) 11,844 4,499
International
Blue Chip (629) 240 (389) (1,067) 400 (667)
Coventry (3) (6,180) 3,397 (2,783) (14,594) 4,600 (9,994)
Our Lucaya (1,726) 13 (1,713) (1,131) 6 (1,125)
International
Total (8,535) 3,650 (4,885) (16,792) 5,006 (11,786)
Total Properties
Before Insurance
Recoveries 71,893 91,870 163,763 71,157 96,519 167,676
Insurance
Recoveries -
Biloxi(2) 92,179 - 92,179 - - -
Total
Properties 164,072 91,870 255,942 71,157 96,519 167,676
Corporate,
Development and
Other (4)(5) (42,343) 4,118 (38,225) (44,528) 4,179 (40,349)
Minority Interest - - - - - (4,868)
$121,729 $95,988 $217,717 $26,629 $100,698 $122,459
1. EBITDA is "earnings before interest and other non-operating income
(expense), income taxes, and depreciation and amortization." EBITDA is
presented after consideration of minority interest. "Property EBITDA" is
EBITDA before Corporate and development expenses and minority interest.
EBITDA is presented solely as a supplemental disclosure because management
believes that it is 1) a widely used measure of operating performance in
the gaming industry, 2) used as a component of calculating required
leverage and minimum interest coverage ratios under our Senior Credit
Facility and 3) a principal basis of valuing gaming companies. Management
uses EBITDA and Property EBITDA as the primary measure of the Company's
operating properties' performance, and they are important components in
evaluating the performance of management and other operating personnel in
the determination of certain components of employee compensation. EBITDA
should not be construed as an alternative to operating income as an
indicator of the Company's operating performance, as an alternative to
cash flows from operating activities as a measure of liquidity or as an
alternative to any other measure determined in accordance with U.S.
generally accepted accounting principles (GAAP). The Company has
significant uses of cash flows, including capital expenditures, interest
payments, taxes and debt principal repayments, which are not reflected in
EBITDA. Also, other gaming companies that report EBITDA information may
calculate EBITDA in a different manner than the Company. A reconciliation
of EBITDA and Property EBITDA to operating income is included in the
financial schedules accompanying this release. A reconciliation of EBITDA
to the Company's net income (loss) is shown below (in thousands).
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
EBITDA $130,656 $40,255 $217,717 $122,459
(Add)/deduct:
Depreciation and
amortization 30,981 34,871 95,988 100,698
Interest expense:
Interest expense,
Net 24,120 26,676 72,557 79,432
Loss on early
extinguishment of debt - - - 13,660
Income tax provision
(benefit) 29,442 (7,443) 20,185 (25,732)
Net income (loss) $46,113 $(13,849) $28,987 $(45,599)
Certain of our debt agreements use "Adjusted EBITDA" as a financial
measure for the calculation of financial debt covenants. Adjusted EBITDA
differs from EBITDA as Adjusted EBITDA includes add back of items such as
pre-opening expenses, certain write-offs and valuation expenses, and stock
compensation expense. Reference can be made to the definition of Adjusted
EBITDA in the applicable debt agreements on file as Exhibits to our filing
with the Securities and Exchange Commission.
2. For comparability purposes, the insurance recoveries from Hurricane
Katrina related to our Biloxi property are presented separately from
Biloxi EBITDA, net revenues and operating income. EBITDA for the three
and nine months ended includes $92.2 million from our insurance settlement
for our Biloxi property. Included in net revenue for the three and nine
months ended January 25, 2009 is $60 million of these insurance
recoveries.
3. During 2007, we opened or acquired new properties as follows:
Property Date
Pompano April 2007
Caruthersville June 2007
Waterloo June 2007
Coventry July 2007
Our operating results reflect the impact of these openings as well as the
incurrence of pre-opening costs for the nine months ended January 27,
2008, as follows:
Pre-Opening Expenses
January 27, 2008
Property Nine Months Ended
Pompano $307
Waterloo 3,348
Coventry 2,802
4. Total consolidated stock compensation expense including corporate and
properties is summarized as follows:
Three Months Ended Nine Months Ended
January 25, January 27, January 25, January 27,
2009 2008 2009 2008
Stock Compensation
expense $1,367 $1,660 $7,840 $5,441
Stock compensation
expense
included in corporate
and development
expense $1,151 $1,387 $5,984 $4,568
5. Write-offs and other charges for the nine months ended January 25,
2009 reflect a charge for $6.0 million relating the termination of an
agreement for the potential development of a casino project in the
Portland, Oregon area. As a part of this termination agreement reached
during the nine months ended January 25, 2009, we agreed to terminate our
rights under a land option and to pay a termination fee. As a result of
this termination, we recorded a $6.0 million charge consisting of a write-
off of $5.0 million representing our previously capitalized rights under
the land option and $1.0 million termination fee. For the nine months
ended January 27, 2008, write-offs and other charges reflected a $6.5
million including a $4.9 million charge for the termination of a lease to
develop a new casino in West Harrison County, Mississippi and the write-
off of $1.6 million in construction projects in Davenport, Iowa, and
Kansas City, Missouri.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 18 casino properties. The Company owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville, Kansas City, Missouri; two casinos in Black Hawk, Colorado; and a casino and harness track in Pompano Beach, Florida. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England.
Forward-Looking Statements
This press release may 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 conditions, the economy, 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 and results of operations is included in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's annual report on Form 10-K for the most recently ended fiscal year. This and other information is available through the Securities and Exchange Commission at www.sec.gov, or through the Company's website, www.islecorp.com.
CONTACTS:
Isle of Capri Casinos, Inc.,
Dale Black, Chief Financial Officer-314.813.9327
Jill Haynes, Senior Director of Corporate Communication-314.813.9368
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