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Isle Of Capri Casinos Results Flat

During the third quarter, Isle of Capri Casinos posted net revenues of $253.1 million, compared to $262.1 million for the same period in fiscal 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) 1 increased 2.4% to $55.8 million, compared to last year's third quarter. EBITDA for the prior year period has been adjusted from $56.9 million to $54.6 million to include preopening costs of $2.3 million. EBITDA is considered a key measure of the company's operating cash flow.

For the first nine months of fiscal 2003, Isle of Capri Casinos reported net income of $27.4 million, or $0.90 per diluted share. This compares to net income before extraordinary item for the prior year's period of $24.4 million, or $0.82 per diluted share. Prior year's net income was reduced to $21.9 million or $0.74 per diluted share by an extraordinary item net of tax benefit of $2.4 million related to the Isle-Black Hawk's debt extinguishment costs.

Net revenue for the first nine months of fiscal 2003 was $789.9 million, up from $785.6 million for the comparable period in the previous year. EBITDA in the nine-month period was $168.7 million, an increase of $4.6 million, or 2.8%, over the prior year nine-month period EBITDA of $164.1 million. EBITDA for the prior year period has been adjusted from $167.8 million to $164.1 million to include preopening costs of $3.8 million and gain on disposal of assets of $0.1 million.

Third Quarter Results

Bernard Goldstein, Isle of Capri Casinos, Inc.'s chairman and chief executive officer, said: "The third quarter is historically a more challenging period for us because we face the issue of seasonality in our markets. Despite that factor, coupled with the current negative economic climate, I feel that we performed well."

Operating results for the third quarter ended January 26, 2003 reflected the inclusion of operations of the Isle-Boonville (opened December 2001) offset by a leveling-off in visits to the company's properties due to overall economic conditions.

The third quarter was marked by significant financial and operating highlights. These were: a further reduction of the company's debt level; ground-breaking for construction on the $79-million project for the Isle- Biloxi; and, continuing on schedule, construction for the Isle-Bossier City $50-million expansion.

The company reduced its total debt by an additional $7.2 million during the third quarter and $95.9 million in the last twelve months ended January 26, 2003, contributing to a $1.1 million reduction in year over year third quarter cash interest. The company's ratio of debt to EBITDA and the ratio of EBITDA to cash interest were at 4.1 times and 2.9 times, respectively, for the company and its restricted subsidiaries for the twelve months ended January 26, 2003.

Construction work for the expansion of the Isle-Biloxi began this quarter. This project includes an additional 400 hotel rooms, an Isle-branded Kitt's Kitchen restaurant, a 12,000 square-foot multi-purpose center, an expanded pool and spa area and a 1,000-space parking facility. The parking garage will provide a podium for future expansion.

John M. Gallaway, president and chief operating officer said, "Although we have experienced some significant challenges this quarter, we were still able to meet expectations. Our business model continues to provide a strong strategy, including sound marketing and operating plans. Also, we are confident that our $135 million multi-property expansion plan, bringing major improvement to our Biloxi and Bossier City properties will better position us in their highly competitive markets."

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