ST. LOUIS, June 10 /PRNewswire-FirstCall/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") today reported financial results for the fourth quarter and fiscal year (the "FY") ended April 26, 2009, and other Company-related news.
FY 2009 Highlights
The Company pointed to a series of accomplishments during FY 2009 that significantly impacted the Company's operations and financial results. Specifically, the Company:
- Streamlined operations resulting in decreased on-going property operating costs of approximately $45 million compared to FY 2008, and decreased on-going corporate and development costs by an additional $7.3 million compared to FY 2008;
- Stabilized operating results despite a $50 million net revenue decline caused by economic conditions;
- Completed a $142.7 million cash tender offer for the Company's debt and settled the remaining insurance claims related to Hurricane Katrina for $95 million, together leading to improved financial flexibility;
- Neared completion of the Company's first two Lady Luck-branded properties;
- Continued significant improvements in guest experience and customer courtesy measures across the portfolio; and
- Focused on improved results through domestic operations by exiting the Coventry, UK operation and announcing plans to exit the Grand Bahama gaming market.
In making the announcement, James B. Perry, the Company's executive vice chairman and chief executive officer, said, "This past fiscal year marked a period of great accomplishment in the transformation of Isle of Capri. As we continue to focus on increasing cash flow at our domestic locations by deploying our significant operational expertise, we have begun realizing the substantial effects of our margin improvement programs. Specifically, we have been successful in stabilizing our margins and profitability despite the challenging marketplace because, I believe, we have remained focused on exceeding customer expectations while improving our cost structure. In addition, I am proud we have been successful in our efforts to find avenues to exit our international operations.
"While we have seen signs of improvement since the start of the calendar year, we will continue to employ a cautious approach to our business as a result of economic uncertainty. Importantly, I believe our success in creating a solid operating company at Isle of Capri has positioned our team to pursue potential new acquisition and management opportunities that stand to diversify and increase our free cash flow while improving our overall capital position."
Consolidated Results
The following table outlines the Company's financial results (dollars in millions, except per share data, unaudited):
Three Months Ended Fiscal Year Ended
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Net revenues, excluding
insurance recoveries $284.3 $292.6 $1,055.7 $1,107.3
Net revenues 287.2 292.6 1,118.6 1,107.7
Income (loss) from
continuing operations 24.8 (6.0) 59.4 (38.1)
Net income (loss) 14.6 (51.3) 43.6 (96.9)
Income (loss) per share
from continuing
operations 0.78 (0.20) 1.89 (1.24)
Net income (loss) per
share 0.46 (1.66) 1.39 (3.16)
Quarter
Before the impact of the items reflected in the table below, EBITDA for the fourth quarter of FY 2009 was $57.9 million compared to $54.1 million for the fourth quarter of FY 2008.
The Company's income from continuing operations for the fourth quarter of FY 2009 of $24.8 million or $0.78 per share contains pretax items impacting EBITDA and Income from continuing operations as detailed in the table below having the combined impact of increasing our earnings per share from continuing operations by $0.62 per share.
The Company's (Loss) from continuing operations for the fourth quarter of FY 2008 of ($6.0) million or ($0.20) per share contains pretax items impacting EBITDA and (Loss) from continuing operations as detailed in the table below having the combined impact of increasing our (loss) per share from continuing operations by ($0.03) per share.
Fiscal Year
Before the impact of the items reflected in the table below, EBITDA for FY 2009 was $196.9 million compared to $201.3 million for FY 2008.
The Company's income from continuing operations for FY 2009 of $59.4 million or $1.89 per share contains pretax items impacting EBITDA and Income from continuing operations as detailed in the table below having the combined impact of increasing our earnings per share from continuing operations by $2.19 per share.
The Company's (Loss) from continuing operations for FY 2008 of ($38.1) million or ($1.24) per share contains pretax items impacting EBITDA and (Loss) from continuing operations as detailed in the table below having the combined impact of increasing our (loss) per share from continuing operations by ($0.62) per share.
Items Impacting EBITDA and Income (loss) from Continuing Operations
Significant items impacting EBITDA and the Income (loss) from continuing operations during the fiscal quarters and years ended April 26, 2009 and April 27, 2008 are as follows:
Three Months Ended Fiscal Year Ended
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Items impacting
EBITDA and Net
income (loss):
Insurance recoveries,
net $3.0 $- $93.3 $2.1
Valuation charges (30.1) - (36.1) (6.5)
Pre-opening - - - (3.6)
Other 2.3 - - -
Minority interest - - - (4.9)
Additional item
impacting Income
(loss) from continuing
operations:
Gain (loss) on
early extinguishment
of debt 57.7 (1.6) 57.7 (15.3)
After consideration of the items reflected in the table above, EBITDA was $33.2 million and $54.1 million for the fourth quarters ended FY 2009 and FY 2008, respectively.
After consideration of the items reflected in the table above, EBITDA was $254.1 million and $188.4 million for the years ended FY 2009 and FY 2008, respectively.
Discussion
Discussing the year end results, Virginia McDowell, the Company's president and chief operating officer, remarked, "We focused our efforts during the fiscal year primarily on continuing to implement our core operating principles designed to improve the customer experience while simultaneously right-sizing our business to reflect the current economic realities. As a result, we have been able to stabilize our profitability despite a substantial decline in revenue while improving our customer courtesy scores and maintaining or gaining market share in the majority of our competitive markets. Perhaps most encouraging is that we have been able to maintain the cost structure we implemented through right-sizing our business, which leads to higher flow-through on any additional revenue. Additionally, we believe we have opportunity for improved operating results in Missouri and Colorado as a result of regulatory changes, as well as the pending changes in Florida.
"The impact of the economic pressure has been felt broadly across our customer base. We experienced a significant decline in our retail play along with a decrease in the trip frequency and spend of our database customers late in calendar 2008. While January and February saw a somewhat substantial increase across both of these customer groups, we did see a moderate pull-back in spending during March and April. Moving forward, we expect the trends from March and April to continue, with our database customers having increased trip frequency, but with lower average spend and lower retail visitation. We believe this will remain substantially unchanged until the economy improves and we see improvement in consumer confidence.
"We are excited to have nearly completed our first two Lady Luck properties in Caruthersville and Marquette, and are encouraged by the customer response we are receiving from these newly revamped facilities focused on a clean, safe, friendly and fun entertainment experience. Looking forward, once we have more clarity regarding the economy and our own financial position, we have identified and prioritized approximately $60 million in capital projects which we expect to deploy over the next 24 to 36 months. We plan to focus these capital improvements primarily on refreshing our hotel room inventory, as well as on capital improvements to our properties in Lake Charles and Black Hawk. Additional capital investments at other properties would be dependent on improving economic and local market conditions."
Commenting on the Company's capital structure and strategy, senior vice president and chief financial officer, Dale R. Black said, "We have been successful in improving our capital structure during the past 18 months and will continue to look for ways to improve the capital structure going forward. While our improved balance sheet has given us additional flexibility to consider strategic investments in our existing properties and potential acquisitions, we remain committed to investing only in projects that we believe will further improve our balance sheet and will enable us to increase our cash flow. Overall, our objective is to be under five-times leverage within the next 24 months."
Discontinued Operations
During the fourth quarter of FY 2009, we reclassified the historical results of our UK operations previously presented as continuing operations to discontinued operations. Included in discontinued operations are pretax losses related to the sale of our Coventry casino assets and lease termination costs totaling $12.0 million and the pretax write-down of Blue Chip assets held for sale of $1.4 million.
Capital Structure and 2010 Guidance
As of April 26, 2009, the Company had $96.7 million in cash and cash equivalents and total debt of $1.3 billion. Capital expenditures for FY 2009 totaled $58.6 million which included approximately $30 million of maintenance capital expenditures.
The Company provided guidance for the following specific items for fiscal year 2010:
- Depreciation expense is expected to be approximately $115 million;
- The Company expects cash income taxes pertaining to FY 2010 operations to be less than $10 million which would primarily represent state income taxes.
- Interest expense is expected to be approximately $75 million to $80 million, net of capitalized interest.
- Total Corporate expenses for FY 2010 are expected to be approximately $40 million including approximately $7 million in noncash stock compensation expense.
- Maintenance capital expenditures for FY 2010 are expected to be approximately $40 million.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on Wednesday, June 10, 2009 at 9:00 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 (800) 510-9836. International callers can access the conference call by dialing (617) 614-3670. The conference call access code is 89173731.
This conference call will be recorded and available for review starting at noon central on Wednesday, June 10, 2009, until midnight central on Wednesday, June 17, 2009, by dialing (888) 286-8010 for domestic callers or (617) 801-6888 for International callers. The access code will be 51751350.
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Fiscal Year Ended
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Revenues:
Casino $288,342 $292,075 $1,066,162 $1,107,246
Rooms 10,684 11,903 46,380 49,498
Pari-mutuel, food,
beverage and other 37,843 40,318 139,957 151,530
Hurricane insurance
recoveries 2,932 - 62,932 348
Gross revenues 339,801 344,296 1,315,431 1,308,622
Less promotional
allowances (52,582) (51,672) (196,789) (200,932)
Net revenues 287,219 292,624 1,118,642 1,107,690
Operating expenses:
Casino 40,092 39,326 154,538 154,263
Gaming taxes 73,430 76,714 270,882 286,746
Rooms 2,969 3,179 12,175 12,031
Pari-mutuel, food,
beverage and other 14,844 16,440 53,143 58,676
Marine and facilities 16,370 17,496 65,504 66,656
Marketing and
administrative 67,559 71,403 263,164 279,009
Corporate and development 8,761 13,980 41,331 48,619
Valuation charges 30,125 - 36,125 6,526
Hurricane and other
insurance recoveries, net (98) - (32,277) (1,757)
Pre-opening - - - 3,654
Depreciation and
amortization 30,105 33,246 122,457 128,944
Total operating
expenses 284,157 271,784 987,042 1,043,367
Operating income 3,062 20,840 131,600 64,323
Interest expense (19,544) (25,906) (92,065) (106,826)
Interest income 491 548 2,112 3,293
Gain (loss) on early
extinguishment of debt 57,693 (1,614) 57,693 (15,274)
Income (loss) from
continuing operations
before income taxes
and minority interest 41,702 (6,132) 99,340 (54,484)
Income tax benefit
(provision) (16,918) 116 (39,942) 21,288
Minority interest - - - (4,868)
Income (loss) from
continuing operations 24,784 (6,016) 59,398 (38,064)
(Loss) from discontinued
operations, net of income
tax benefit (10,196) (45,259) (15,823) (58,810)
Net income (loss) $14,588 $(51,275) $43,575 $(96,874)
Earnings (loss) per
common share basic:
Income (loss) from
continuing operations $0.78 $(0.20) $1.89 $(1.24)
(Loss) from discontinued
operations, net of income
taxes (0.32) (1.46) (0.50) (1.92)
Net income (loss) $0.46 $(1.66) $1.39 $(3.16)
Earnings (loss) per common
share diluted:
Income (loss) from
continuing operations $0.78 $(0.20) $1.89 $(1.24)
(Loss) from discontinued
operations, net of income
taxes (0.32) (1.46) (0.50) (1.92)
Net income (loss) $0.46 $(1.66) $1.39 $(3.16)
Weighted average basic
shares 31,770,653 30,845,436 31,372,670 30,699,457
Weighted average diluted
shares 31,770,653 30,845,436 31,379,016 30,699,457
ISLE OF CAPRI CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
April 26, April 27,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $96,654 $91,790
Marketable securities 17,548 18,533
Accounts receivable, net of allowance for
doubtful accounts of $5,106 and
$4,258, respectively 10,421 12,195
Income taxes receivable 7,744 28,663
Deferred income taxes 16,295 12,606
Prepaid expenses and other assets 23,234 27,905
Insurance receivable 1,514 7,689
Assets held for sale 4,183 -
Total current assets 177,593 199,381
Property and equipment, net 1,177,540 1,328,986
Other assets:
Goodwill 313,136 307,649
Other intangible assets, net 83,588 89,252
Deferred financing costs, net 9,314 13,381
Restricted cash 2,774 4,802
Prepaid deposits and other 18,717 22,948
Deferred income taxes - 7,767
Total assets $1,782,662 $1,974,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $9,688 $9,698
Accounts payable 16,246 29,283
Accrued liabilities:
Payroll and related 47,209 47,618
Property and other taxes 31,487 30,137
Progressive jackpots and slot club awards 13,647 13,768
Interest 9,280 8,580
Other 38,548 44,353
Liabilities related to assets held for sale 1,888 -
Total current liabilities 167,993 183,437
Long-term debt, less current maturities 1,291,384 1,497,591
Deferred income taxes 24,970 -
Other accrued liabilities 52,575 52,821
Other long-term liabilities 17,314 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:
36,111,089 at April 26, 2009 and 35,229,006
at April 27, 2008 361 353
Class B common stock, $.01 par value;
3,000,000 shares authorized; none issued - -
Additional paid-in capital 193,827 188,036
Retained earnings 101,828 58,253
Accumulated other comprehensive (loss)
income (15,191) (5,601)
280,825 241,041
Treasury stock, 4,340,436 shares at April 26,
2009 and 4,372,073 shares at April 27, 2008 (52,399) (53,029)
Total stockholders' equity 228,426 188,012
Total liabilities and stockholders' equity $1,782,662 $1,974,166
Isle of Capri Casinos, Inc.
Supplemental Data - Net Revenues (1) (2)
(unaudited, in thousands)
Three Months Ended Fiscal Year
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Mississippi
Biloxi $21,786 $22,742 $83,519 $90,586
Natchez 10,043 8,587 35,936 35,707
Lula 20,328 19,876 70,987 75,399
Mississippi Total 52,157 51,205 190,442 201,692
Louisiana
Lake Charles 40,007 40,893 152,112 159,470
Missouri
Kansas City 21,372 19,696 74,435 75,630
Boonville 21,586 20,421 78,581 79,816
Caruthersville 9,151 7,889 31,579 26,857
Missouri Total 52,109 48,006 184,595 182,303
Iowa
Bettendorf 22,963 24,789 91,657 92,429
Davenport 13,544 13,847 49,005 52,333
Marquette 7,224 7,901 29,875 32,968
Waterloo 21,863 19,541 80,543 64,650
Iowa Total 65,594 66,078 251,080 242,380
Colorado
Black Hawk/Colorado
Central Station 30,715 32,468 123,382 144,521
Florida
Pompano 40,900 48,964 142,672 160,831
International
Our Lucaya 2,692 4,758 10,969 15,548
Property Net Revenues before
Insurance Recoveries and
Other 284,174 292,372 1,055,252 1,106,745
Insurance Recoveries 2,932 - 62,932 348
Other 113 252 458 597
Net Revenues from
Continuing Operations $287,219 $292,624 $1,118,642 $1,107,690
Isle of Capri Casinos, Inc.
Supplemental Data - EBITDA (1) (2)
(unaudited, in thousands)
Three Months Ended Fiscal Year
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Mississippi
Biloxi $2,070 $3,023 $9,050 $14,965
Natchez 3,874 2,948 13,819 11,243
Lula 6,504 7,210 20,294 22,166
Mississippi Total 12,448 13,181 43,163 48,374
Louisiana
Lake Charles 9,705 10,701 34,521 35,718
Missouri
Kansas City 5,597 3,942 15,108 13,749
Boonville 7,606 5,878 25,526 24,543
Caruthersville 2,205 1,907 6,356 6,548
Missouri Total 15,408 11,727 46,990 44,840
Iowa
Bettendorf 6,630 7,845 29,372 28,492
Davenport 3,986 4,312 15,349 13,914
Marquette 1,167 1,668 6,323 7,362
Waterloo 6,824 4,838 22,969 15,026
Iowa Total 18,607 18,663 74,013 64,794
Colorado
Black Hawk/Colorado
Central Station 7,773 9,208 33,421 47,625
Florida
Pompano 3,843 4,028 8,558 8,834
International
Our Lucaya (1,204) 299 (2,917) (826)
Property EBITDA Before
Corporate and Other Items 66,580 67,807 237,749 249,359
Corporate and Other (8,650) (13,721) (40,872) (48,017)
EBITDA Before Other Items 57,930 54,086 196,877 201,342
Other Items: (2)
Insurance Recoveries 3,030 - 93,315 2,105
Valuation Charges (30,125) - (36,125) (6,526)
Pre-opening - - - (3,654)
Other 2,332 - (10) -
Minority Interest - - - (4,868)
EBITDA from Continuing
Operations $33,167 $54,086 $254,057 $188,399
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1) (2)
(unaudited, in thousands)
Three Months Ended Three Months Ended
April 26, 2009 April 27, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi $(1,859) $3,929 $2,070 $(1,361) $4,384 $3,023
Natchez 3,244 630 3,874 1,917 1,031 2,948
Lula 4,114 2,390 6,504 4,910 2,300 7,210
Mississippi
Total 5,499 6,949 12,448 5,466 7,715 13,181
Louisiana
Lake Charles 6,748 2,957 9,705 7,096 3,605 10,701
Missouri
Kansas City 4,449 1,148 5,597 2,665 1,277 3,942
Boonville 6,457 1,149 7,606 4,632 1,246 5,878
Caruthersville 980 1,225 2,205 524 1,383 1,907
Missouri
Total 11,886 3,522 15,408 7,821 3,906 11,727
Iowa
Bettendorf 4,141 2,489 6,630 5,514 2,331 7,845
Davenport 2,969 1,018 3,987 3,143 1,169 4,312
Marquette 543 624 1,167 969 699 1,668
Waterloo 3,871 2,952 6,823 1,790 3,048 4,838
Iowa Total 11,524 7,083 18,607 11,416 7,247 18,663
Colorado
Black Hawk/
Colorado
Central
Station 3,797 3,976 7,773 5,439 4,848 10,287
Florida
Pompano (434) 4,277 3,843 (1,482) 4,432 2,950
International
Our Lucaya (1,208) 4 (1,204) 296 3 299
Total Property
Before Corporate
and Other
Items 37,812 28,768 66,580 36,052 31,756 67,808
Corporate and
Other (9,987) 1,337 (8,650) (15,212) 1,490 (13,722)
Total Before
Other Items 27,825 30,105 57,930 20,840 33,246 54,086
Other
Items: (2)
Insurance
Recoveries 3,030 - 3,030 - - -
Valuation
Charges (30,125) - (30,125) - - -
Other 2,332 - 2,332 - - -
Total From
Continuing
Operations $3,062 $30,105 $33,167 $20,840 $33,246 $54,086
Isle of Capri Casinos, Inc.
Supplemental Data - Reconciliation of Operating Income to EBITDA (1) (2)
(unaudited, in thousands)
Fiscal Year Ended Fiscal Year Ended
April 26, 2009 April 27, 2008
Depreciation Depreciation
Operating and Operating and
Income Amortization EBITDA Income Amortization EBITDA
Mississippi
Biloxi $(7,952) $17,002 $9,050 $(3,538) $18,503 $14,965
Natchez 10,810 3,009 13,819 7,412 3,831 11,243
Lula 11,498 8,796 20,294 11,034 11,132 22,166
Mississippi
Total 14,356 28,807 43,163 14,908 33,466 48,374
Louisiana
Lake Charles 22,041 12,480 34,521 20,623 15,095 35,718
Missouri
Kansas City 10,369 4,739 15,108 8,121 5,628 13,749
Boonville 20,737 4,789 25,526 19,485 5,058 24,543
Caruthersville 1,638 4,718 6,356 2,574 3,974 6,548
Missouri
Total 32,744 14,246 46,990 30,180 14,660 44,840
Iowa
Bettendorf 20,090 9,282 29,372 18,967 9,525 28,492
Davenport 11,109 4,240 15,349 8,834 5,080 13,914
Marquette 3,704 2,619 6,323 4,380 2,982 7,362
Waterloo 11,377 11,592 22,969 5,661 9,365 15,026
Iowa Total 46,280 27,733 74,013 37,842 26,952 64,794
Colorado
Black Hawk/
Colorado
Central
Station 16,588 16,833 33,421 30,811 16,814 47,625
Florida
Pompano (8,324) 16,882 8,558 (5,552) 16,276 10,724
International
Our Lucaya (2,934) 17 (2,917) (2,725) 9 (2,716)
Total Property
Before Corporate
and Other
Items 120,751 116,998 237,749 126,087 123,272 249,359
Corporate
and Other (46,331) 5,459 (40,872) (53,689) 5,672 (48,017)
Total before
Other Items 74,420 122,457 196,877 72,398 128,944 201,342
Other
Items: (2)
Insurance
Recoveries 93,315 - 93,315 2,105 - 2,105
Valuation
Charges (36,125) - (36,125) (6,526) - (6,526)
Pre-opening - - - (3,654) - (3,654)
Other (10) - (10) - - -
Minority
Interest - - - - - (4,868)
Total From
Continuing
Operations $131,600 $122,457 $254,057 $64,323 $128,944 $188,399
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 Fiscal Year Ended
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
EBITDA $33,167 $54,086 $254,057 $188,399
Add/(deduct):
Depreciation and
amortization (30,105) (33,246) (122,457) (128,944)
Interest expense:
Interest expense,
net (19,053) (25,358) (89,953) (103,533)
Gain (loss) on
early
extinguishment of
debt 57,693 (1,614) 57,693 (15,274)
Income tax
provision
(benefit) (16,918) 116 (39,942) 21,288
Income (loss)from
discontinued
operations,
net of income taxes (10,196) (45,259) (15,823) (58,810)
Net income (loss) $14,588 $(51,275) $43,575 $(96,874)
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 gain on early extinguishment of debt, 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. Items impacting the comparability of EBITDA and income (loss) from continuing operations for our properties and corporate are as follows (in thousands):
Three Months Ended April 26, 2009
Insurance Valuation
Recoveries Charges Other
Biloxi $- $(11,856) $-
Black Hawk/Colorado Central Station - (18,269) -
Davenport 758 - -
Natchez 2,272 - -
Pompano - - 2,332
Total $3,030 $(30,125) $2,332
Fiscal Year Ended April 26, 2009
Insurance Valuation
Recoveries Charges Other
Bettendorf $- $- $-
Biloxi 92,179 (11,856) -
Black Hawk/Colorado Central Station - (18,269) (1,900)
Natchez 1,136 - -
Pompano - - 1,890
Corporate - (6,000) -
Total $93,315 $(36,125) $(10)
Fiscal Year Ended April 27, 2008
Insurance Valuation Pre-
Recoveries Charges opening
Biloxi $- $- $-
Davenport 348 (532) -
Kansas City - (1,136) -
Lake Charles 1,757 - -
Pompano - - (307)
Waterloo - - (3,347)
Corporate - (4,858) -
Total $2,105 $(6,526) $(3,654)
Insurance Recoveries - We have received insurance recoveries related to various claims. These insurance recoveries are from claims filed pertaining to our properties in Biloxi, Mississippi, Lake Charles, Louisiana and Pompano Beach, Florida, which were struck in the fall of 2005 by Hurricanes Katrina, Rita and Wilma, respectively. Additionally, we have received insurance recoveries relating to flood and other claims at our Davenport, Lake Charles, and Natchez properties.
Valuation Charges - We recorded and valuation charges reducing our construction in progress following our decisions to change our construction plans at our Biloxi, Davenport, Kansas City properties and at Corporate pertaining to West Harrison County. As a result of our impairment testing under SFAS No. 142, we recorded a valuation charge at our Black Hawk/Colorado Central Station property.
Pre-opening - We opened or acquired new properties as follows:
Property Date
Pompano April 2007 (FY 2007)
Caruthersville June 2007 (FY 2008)
Waterloo June 2007 (FY 2008)
Other - Black Hawk/Colorado Central Station include costs associated with the gaming referendum passed during FY 2009. Pompano includes the results of an agreement reached with the State of Florida regarding an interpretation of the gaming tax calculation based on taxes paid since opening.
3. Total consolidated stock compensation benefit (expense) including corporate and properties is summarized as follows:
Three Months Ended Fiscal Year Ended
April 26, April 27, April 26, April 27,
2009 2008 2009 2008
Stock Compensation expense $716 $(1,870) $(7,125) $(7,311)
Stock compensation expense
included in corporate and
development expense $305 $(1,529) $(5,677) $(6,092)
The fourth quarter 2009 net benefit in stock compensation expense is a result of changes in our overall forfeiture rate.
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 17 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, 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
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Virginia McDowell
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=72331
Dale Black
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=74948
