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Isle of Capri Casinos, Inc. Announces Fiscal 2012 Fourth Quarter And Year Results

SAINT LOUIS, June 7, 2012 /PRNewswire/ -- Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported financial results for the fourth fiscal quarter and fiscal year ended April 29, 2012, and other Company-related news.

Consolidated Results

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

                                              Three Months Ended                       Twelve Months Ended
                                              ------------------                       -------------------
                                                  April 29,                                 April 24,                                 April 29,                           April 24,
                                                                  2012                                      2011                                      2012                            2011
                                                                  ----                                      ----                                      ----                            ----
    Net revenues                                                $291.0                                    $256.6                                    $977.4                          $936.7
    Net revenues,
     excluding
     insurance
     recoveries                                                  282.4                                     256.6                                     967.7                           936.7
    Consolidated
     adjusted EBITDA
     (1)                                                          69.3                                      63.5                                     200.6                           190.0

    Income (loss) from
     continuing
     operations                                                  (13.5)                                      8.4                                     (17.4)                            3.7
    Income (loss) from
     discontinued
     operations                                                 (111.3)                                      2.5                                    (112.4)                            0.8
    Net income (loss)                                           (124.8)                                     10.9                                    (129.8)                            4.5
    Diluted income
     (loss) per share
     from continuing
     operations                                                  (0.35)                                     0.22                                     (0.45)                           0.11
    Diluted income
     (loss) per share
     from discontinued
     operations                                                  (2.85)                                     0.06                                     (2.90)                           0.02
    Diluted income
     (loss) per share                                            (3.20)                                     0.28                                     (3.35)                           0.13
    Adjusted income
     (loss) per share
     (2)                                                          0.38                                      0.27                                      0.43                            0.17

    (1) For a further description of Consolidated adjusted EBITDA, refer to the reconciliation tables following the narrative and the definition of adjusted EBITDA in
     footnote (1) of this release.
    (2) For a reconciliation from the GAAP basis per share amounts to adjusted income (loss) per share, refer to the reconciliation table labeled "Reconciliation of GAAP
     Net Income (Loss) to Adjusted Income (Loss) and GAAP Net Income (Loss) Per Share to Adjusted Income (Loss) Per Share."

Commenting on the results, President and Chief Executive Officer Virginia McDowell said, "Overall, we had a solid quarter marked by incremental revenue growth resulting from our refined business model, more favorable weather conditions than last year and an increasingly renewed asset base. Even after adjusting for the fact that fiscal 2012 had an additional week when compared to fiscal 2011, we grew revenues and adjusted EBITDA. In fiscal 2012 we continued to improve our balance sheet even while investing to improve our existing properties and building Cape Girardeau."

"We are pleased to announce that we expect to open Cape Girardeau by November 1 of this year, two full months ahead of our initial schedule, and will complete the rebranding of Vicksburg within the next several months. Further, as we continue to renew our asset base and provide guests with more options and more experiences, we have an aggressive schedule of targeted capital improvements planned for our properties during the coming months, including renovated hotel rooms, new buffets and a full rollout of our enhanced customer loyalty program."

"The quarter and year also contained a significant number of unusual items including items related to assets sales, impairment charges and insurance recoveries from flooding which are detailed below."

Operating Results

During the quarter, we generally benefited from improved operations, cost reductions, marketing investments and seasonally mild weather, in addition to the favorable calendar, except as otherwise noted. The following is a discussion of the operating results at our properties during the quarter by state.

Colorado - Net revenues increased 14.4% to $34.1 million and adjusted EBITDA increased 54.6% to $9.5 million. Operating margins increased 720 basis points to 27.8%. Our properties in Black Hawk benefited from favorable weather conditions, completed facility enhancements, including renovations to the poker room and casino floor, and a reduced gaming tax rate compared to the fourth quarter of fiscal 2011.

Florida - Net revenues increased to $48.5 million from $41.6 million and adjusted EBITDA increased $1.5 million to $10.8 million. Our property in Pompano continued to exhibit revenue growth resulting from changes to our game mix, enhanced food and beverage amenities and the rollout of our enhanced customer loyalty program during the prior quarter, while competing with a major new expansion at our nearest competitor.

Iowa - Our property in Waterloo showed strong growth in adjusted EBITDA margins during the quarter, growing 260 basis points to 35.6%, as a result of operating improvements and reduced costs. In the Quad Cities net revenues increased a combined $2.6 million and adjusted EBITDA increased $0.5 million.

Louisiana - Net revenues increased 11.6% to $38.7 million and adjusted EBITDA increased 6.0% to $7.2 million. Adjusted EBITDA margins decreased 90 basis points to 18.6%, primarily a result of severance and marketing costs resulting from the consolidation of our riverboat operations into a single facility. We are benefitting from a lower cost structure in Lake Charles as a result of consolidation following the sale of our smaller riverboat in February 2012.

Mississippi - Net revenues increased 2.1% to $37.7 million and adjusted EBITDA decreased 3.7% to $12.1 million. Adjusted EBITDA margins decreased 190 basis points to 32.1%. Our properties in Mississippi continue to face difficulties stemming from a lagging economy in the area. In particular, our property in Lula is facing increased competitive pressure from competing facilities in Arkansas. However, in Vicksburg we benefited from operating improvements compared to the prior year quarter as adjusted EBITDA margins improved from 34% to 39%, partially offset by construction disruption associated with the ongoing rebranding of the facility.

Missouri - Net revenues increased $0.8 million at our Kansas City property, however adjusted EBITDA decreased $0.6 million to $5.7 million, primarily as a result of competitive market pressures following the opening of a new facility in the area during the quarter. Our property in Boonville increased adjusted EBITDA margins 120 basis points as a result of operating efficiencies and the introduction of the Farmers' Pick Buffet in the beginning of this fiscal quarter.

The following items impacted the Company's net income during the quarter and year ended April 29 2012;

    --  Following the announcement of the pending sale of our Biloxi property,
        we recorded a charge of $112.6 million to write-down the value of the
        property to the sale price of $45 million.  The impairment charge and
        operating results of the property for all presented periods have been
        reflected in discontinued operations in the attached schedules.
    --  We recorded a charge of $16.1 million related to the sale of our smaller
        riverboat and associated gaming license in Lake Charles, Louisiana,
        completed on February 9, 2012.  All operations have been successfully
        consolidated onto the larger riverboat facility.
    --  We recorded an impairment charge of $14.4 million against the goodwill
        at our Lula property during the fourth quarter of fiscal 2012.
    --  Net revenues and operating income for the fourth quarter include $8.6
        million of insurance recoveries received as a result of business
        interruption claims related to flooding along the Mississippi River
        during fiscal 2012.
    --  We recorded a valuation allowance against our deferred tax assets
        related to our continuing operations of $8.7 million in accordance with
        the provisions of applicable accounting standards.
    --  We accrued approximately $2.0 million, including interest, in connection
        with a judgment issued in a legal case in connection with the Company's
        previously owned property in Vicksburg, Mississippi, which was sold in
        July 2006.  We are appealing the judgment and plan to vigorously defend
        our position.

Corporate Expenses

Corporate and development expenses were $10.8 million for the quarter, an increase of $0.3 million compared to prior year. The increase is primarily due to the accrual of the judgment mentioned above and increased insurance costs in the current year offset by debt refinancing costs of $3.0 million in the prior year.

Non-cash stock compensation expense was $1.3 million for the quarter compared to $1.4 million in the fourth quarter of fiscal 2011. For the fiscal year, non-cash stock compensation expense was $7.3 million, compared to $6.9 million in fiscal 2011.

Experience Enhancements

We continue to make targeted cost-efficient improvements at our properties in order to reposition our product offerings to exceed customer expectations. We are focused on improving the guest experience by refreshing and right sizing many of our casino floors and, in particular, are improving and expanding our array of non-gaming amenities.

Rebranding - At Rainbow Casino in Vicksburg, we expect to complete the $5 million Lady Luck Casino rebranding by the end of the second quarter of fiscal 2013. The rebranding will introduce upgraded amenities from our portfolio of brands including an Otis and Henry's restaurant, and a Lone Wolf bar.

Hotel Renovations - We are currently renovating the 253 hotel rooms in the main hotel tower in Lake Charles and 237 rooms in the Isle Black Hawk Hotel. We expect the $15 million complete refurbishment of the Lake Charles rooms to be completed by November 1, 2012. In Black Hawk we are replacing carpet, wall coverings, and furniture at an expected cost of approximately $2.0 million, and expect to be completed by December 1, 2012.

Food and Beverage Offerings - Our first Farmer's Pick Buffet in Boonville has received outstanding customer feedback, and we intend to open additional Farmer's Pick Buffets in fiscal 2013 including at Cape Girardeau, Pompano, Black Hawk and Waterloo. Additionally, we plan to add a Lone Wolf bar in our Waterloo facility.

Customer Loyalty Program - Our enhanced customer loyalty program, the Fan Club, was introduced at its third and fourth locations, Kansas City and Lake Charles, during the quarter. It has proven successful in expanding customer options and should result in more efficient marketing moving forward. We expect to introduce the program to five additional properties during the first and second quarters of fiscal 2013, and intend to have it fully implemented across the portfolio by the end of fiscal 2013.

Development

Cape Girardeau, Missouri - Construction of our Cape Girardeau, Missouri project continues to progress ahead of schedule and we are happy to report that we now expect to complete construction on and open our facility in Cape Girardeau by November 1, 2012, an additional month ahead of the previously announced expedited schedule and two months ahead of our original construction schedule. However, the expected cost of the project has been revised to $135 million from the previously estimated $125 million.

Nemacolin Woodlands Resort, Pennsylvania - The appeal hearing for the gaming license awarded to Nemacolin Woodlands Resort for the final resort license in Pennsylvania was held on March 7, 2012. No date has been determined for an expected ruling on the appeal or the ultimate resolution of the matter. We expect to begin construction on the property following a successful conclusion to the appeal process and receiving any other necessary approvals, and to open the property approximately nine months after the commencement of construction.

Capital Structure and FY 2013 Guidance

As of April 29, 2012, the Company had:

    --  $94.5 million in cash and cash equivalents, excluding $12.6 million in
        restricted cash;
    --  $1.2 billion in total debt; and
    --  $258 million in net line of credit availability.

Fiscal Year 2012 capital expenditures were $75.2 million, of which $34.9 million related to Cape Girardeau, $0.7 million related to Nemacolin and $39.6 million related to maintenance capital and projects at our existing properties.

At the end of the fiscal year our net leverage, as calculated under our senior credit facility was approximately 5.7x compared to 6.2x at the end of fiscal 2011.

The Company provided guidance for the following specific non-operating items for fiscal year 2013:

    --  Depreciation and amortization expense is expected to be approximately
        $76 million to $78 million.
    --  The Company expects cash income taxes pertaining to FY 2013 operations
        to be less than $5 million, primarily representing state income taxes.
    --  Interest expense is expected to be approximately $83 million to $85
        million, net of capitalized interest.
    --  Corporate and development expenses for FY 2013 are expected to be
        approximately $40 million, including approximately $6 million in
        non-cash stock compensation expense.
    --  Capital expenditures for FY 2013 are expected to be approximately $140
        million to $150 million, including approximately $85 million remaining
        to be spent in Cape Girardeau.  The balance of the spending will
        complete the Lake Charles and Black Hawk hotel renovations, the
        Vicksburg rebranding, Farmer's Pick conversions and recurring
        maintenance capital. We have not forecasted any material capital
        spending related to Nemacolin due to the uncertainty of the timing of
        the appeal process or ultimate resolution.
    --  We expect to incur approximately $5.5 million of pre-opening expenses
        related to Cape Girardeau.
    --  Fiscal 2013 will be a 52 week year whereas fiscal 2012 was a 53 week
        year

Conference Call Information

Isle of Capri Casinos, Inc. will host a conference call on Thursday, June 7, 2012 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 877-917-8929. International callers can access the conference call by dialing 517-308-9020. The conference call reference number is 9992348. The conference call will be recorded and available for review starting at midnight central on Thursday, June 7, 2012, until midnight central on Thursday, June 14, 2012, by dialing 888-568-0918; International: 203-369-3790 and access number 5218.

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 15 casino properties that it owns and operates, primarily under the Isle and Lady Luck brands. The Company currently owns and operates gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. The Company is also currently developing a new facility in Cape Girardeau, Missouri and has been licensed to develop a new facility with Nemacolin Woodlands Resort in Western Pennsylvania. 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.

                                                               ISLE OF CAPRI CASINOS, INC.
                                                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                                    (In thousands, except share and per share amounts)
                                                                       (Unaudited)

                                                              Three Months Ended                       Twelve Months Ended
                                                              ------------------                       -------------------
                                                                  April 29,                                 April 24,              April 29,             April 24,
                                                                                   2012                                      2011                  2012                  2011
                                                                                   ----                                      ----                  ----                  ----
    Revenues:
    Casino                                                                     $294,940                                  $264,885            $1,006,523              $968,423
    Rooms                                                                         8,631                                     8,203                32,438                32,144
    Food, beverage, pari-mutuel and other                                        37,275                                    32,340               128,560               121,955
    Insurance recoveries                                                          8,654                                         -                 9,637                     -
    Gross revenues                                                              349,500                                   305,428             1,177,158             1,122,522
    Less promotional allowances                                                 (58,480)                                  (48,794)             (199,787)             (185,861)
                                                                                -------                                   -------              --------              --------
    Net revenues                                                                291,020                                   256,634               977,371               936,661
    Operating expenses:
    Casino                                                                       41,900                                    36,678               153,743               142,642
    Gaming taxes                                                                 73,225                                    65,293               251,780               242,949
    Rooms                                                                         1,762                                     1,654                 7,027                 7,290
    Food, beverage, pari-mutuel and other                                        12,185                                    11,098                41,281                40,559
    Marine and facilities                                                        14,421                                    14,672                57,225                55,211
    Marketing and administrative                                                 61,635                                    57,714               234,470               225,757
    Corporate and development                                                    10,831                                    10,529                40,248                42,709
    Valuation charges                                                            30,549                                         -                30,549                     -
    Preopening                                                                      484                                         -                   615                     -
    Depreciation and amortization                                                17,924                                    19,664                76,050                77,613
    Total operating expenses                                                    264,916                                   217,302               892,988               834,730
                                                                                -------                                   -------               -------               -------
    Operating income                                                             26,104                                    39,332                84,383               101,931
    Interest expense                                                            (22,466)                                  (23,224)              (87,905)              (91,935)
    Interest income                                                                 199                                       541                   819                 1,903
    Derivative income (expense)                                                     187                                        42                   439                (1,214)
                                                                                    ---                                       ---                   ---                ------

    Income (loss) from continuing operations before
    income taxes                                                                  4,024                                    16,691                (2,264)               10,685
    Income tax provision                                                        (17,502)                                   (8,335)              (15,119)               (6,950)
                                                                                -------                                    ------               -------                ------
    Income (loss) from continuing operations                                    (13,478)                                    8,356               (17,383)                3,735
    Income (loss)  from discontinued operations,
    net of income taxes                                                        (111,313)                                    2,515              (112,370)                  805
                                                                               --------                                     -----              --------                   ---
    Net income (loss)                                                         $(124,791)                                  $10,871             $(129,753)               $4,540
                                                                              =========                                   =======             =========                ======

    Income (loss) per common share-basic:
    Income (loss) from continuing operations                                     $(0.35)                                    $0.22                $(0.45)                $0.11
    Income (loss) from discontinued operations,
    net of income taxes                                                           (2.85)                                     0.07                 (2.90)                 0.02
                                                                                  -----                                      ----                 -----                  ----
    Net income (loss)                                                            $(3.20)                                    $0.29                $(3.35)                $0.13
                                                                                 ======                                     =====                ======                 =====

    Income (loss) per common share-dilutive:
    Income (loss) from continuing operations                                     $(0.35)                                    $0.22                $(0.45)                $0.11
    Income (loss) from discontinued operations,
    net of income taxes                                                           (2.85)                                     0.06                 (2.90)                 0.02
                                                                                  -----                                      ----                 -----                  ----
    Net income (loss)                                                            $(3.20)                                    $0.28                $(3.35)                $0.13
                                                                                 ======                                     =====                ======                 =====

    Weighted average basic shares                                            38,982,281                                38,103,040            38,753,098            34,066,159
    Weighted average diluted shares                                          38,982,281                                38,252,693            38,753,098            34,174,717

                                                     ISLE OF CAPRI CASINOS, INC.
                                                     CONSOLIDATED BALANCE SHEETS
                                          (In thousands, except share and per share amounts)

                                                             April 29,                       April 24,
                                                                               2012                          2011
                                                                               ----                          ----
                       ASSETS                               (unaudited)
                       ------
    Current assets:
    Cash and cash equivalents                                               $94,461                       $75,178
    Marketable securities                                                    24,943                        22,173
    Accounts receivable, net                                                  6,941                         9,367
    Insurance receivable                                                      7,497                           234
    Income taxes receivable                                                   2,161                         3,866
    Deferred income taxes                                                       627                        12,097
    Prepaid expenses and other
     assets                                                                  18,950                        25,444
    Assets held for sale                                                     46,703                             -
    Total current assets                                                    202,283                       148,359
    Property and equipment, net                                             950,014                     1,113,549
    Other assets:
    Goodwill                                                                330,903                       345,303
    Other intangible assets, net                                             56,586                        82,207
    Deferred financing costs, net                                            13,205                        18,911
    Restricted cash                                                          12,551                        12,810
    Prepaid deposits and other                                                9,428                        12,749
    Total assets                                                         $1,574,970                    $1,733,888
                                                                         ==========                    ==========

            LIABILITIES AND STOCKHOLDERS'
                        EQUITY
            -----------------------------
    Current liabilities:
    Current maturities of long-
     term debt                                                               $5,393                        $5,373
    Accounts payable                                                         23,536                        26,013
    Accrued liabilities:
    Payroll and related                                                      38,566                        44,187
    Property and other taxes                                                 19,522                        19,891
    Interest                                                                  9,296                        10,802
    Progressive jackpots and slot
     club awards                                                             14,892                        15,280
    Liabilities related to assets
     held for sale                                                            4,362                             -
    Other                                                                    40,549                        32,332
    Total current liabilities                                               156,116                       153,878
    Long-term debt, less current
     maturities                                                           1,149,038                     1,187,221
    Deferred income taxes                                                    36,057                        30,762
    Other accrued liabilities                                                33,583                        36,305
    Other long-term liabilities                                              16,556                        16,694
    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 April 29, 2012
     and 42,063,569 at April 24,
     2011                                                                       421                           421
    Class B common stock, $.01
     par value; 3,000,000 shares
     authorized; none issued                                                      -                             -
    Additional paid-in capital                                              247,855                       254,013
    Retained earnings (deficit)                                             (26,658)                      103,095
    Accumulated other
     comprehensive (loss) income                                               (855)                       (2,235)
                                                                               ----                        ------
                                                                            220,763                       355,294
    Treasury stock, 3,083,867
     shares at April 29, 2012 and
     3,841,283 April 24, 2011                                               (37,143)                      (46,266)
    Total stockholders' equity                                              183,620                       309,028
    Total liabilities and
     stockholders' equity                                                $1,574,970                    $1,733,888
                                                                         ==========                    ==========

                                                                Isle of Capri Casinos, Inc.
                                                              Supplemental Data - Net Revenues
                                                                 (unaudited, in thousands)

                                      Three Months Ended                 Twelve Months Ended
                                      ------------------                 -------------------
                                          April 29,                           April 24,           April 29,            April 24,
                                                         2012                                2011                 2012                 2011
                                                         ----                                ----                 ----                 ----
    Properties Not Impacted by
     Flooding
            Lake Charles, Louisiana                 $38,714                             $34,692             $138,634             $131,214
            Kansas City, Missouri                    22,554                              21,756               80,703               77,710
            Boonville, Missouri                      23,315                              20,497               81,796               78,776
            Bettendorf, Iowa                         21,715                              20,994               79,156               79,003
            Marquette, Iowa                           7,357                               6,851               28,036               27,397
            Waterloo, Iowa                           24,721                              22,936               86,484               83,197
            Black Hawk, Colorado                     34,073                              29,789              124,051              115,482
            Pompano, Florida                         48,538                              41,572              154,740              138,704
                                                    220,987                             199,087              773,600              731,483
                                                    -------                             -------              -------              -------
    Properties Impacted by
     Flooding
            Natchez, Mississippi                      9,009                               8,506               26,739               30,787
            Lula, Mississippi                        18,300                              19,084               56,070               67,340
            Vicksburg, Mississippi(2)                10,437                               9,365               31,937               27,935
            Caruthersville, Missouri                 10,539                               9,447               33,890               33,696
            Davenport, Iowa                          12,769                              10,919               44,055               43,651
                                                     61,054                              57,321              192,691              203,409
                                                     ------                              ------              -------              -------


    Property Net Revenues
     before Other                                   282,041                             256,408              966,291              934,892

    Insurance Recoveries(3)
            Natchez                                   1,485                                   -                1,904                    -
            Lula                                      5,455                                   -                5,455                    -
            Vicksburg                                   703                                   -                  758                    -
            Caruthersville                              751                                   -                1,149                    -
            Davenport                                   260                                   -                  371                    -

    Other                                               325                                 226                1,443                1,769
                                                        ---                                 ---                -----                -----

    Net Revenues from
     Continuing Operations                         $291,020                            $256,634             $977,371             $936,661
                                                   ========                            ========             ========             ========

                                                                                                          Isle of Capri Casinos, Inc.
                                                                                          Reconciliation of Operating Income (Loss) to Adjusted EBITDA
                                                                                                           (unaudited, in thousands)

                                                                     Three Months Ended April 29, 2012
                                                                     ---------------------------------
                                               Operating Income (Loss)                Depreciation and Amortization                         Valuation            Stock-Based Compensation       Insurance Recoveries      Adjusted EBITDA
                                                                                                                                            and Other
                                                                                                                                           Charges (4)
                                                                                                                                           ----------
    Properties Not Impacted by Flooding
                  Lake Charles, Louisiana                      $(11,193)                                     $2,236                                    $16,149                             $3           $            -                  $7,195
                  Kansas City, Missouri                           4,741                                         980                                          -                              1                        -                   5,722
                  Boonville, Missouri                             7,867                                         849                                          -                              5                        -                   8,721
                  Bettendorf, Iowa                                4,423                                       1,994                                          -                              5                        -                   6,422
                  Marquette, Iowa                                 1,214                                         469                                          -                              5                        -                   1,688
                  Waterloo, Iowa                                  7,133                                       1,651                                          -                              5                        -                   8,789
                  Black Hawk, Colorado                            7,457                                       1,992                                          -                             10                        -                   9,459
                  Pompano, Florida                                8,338                                       2,457                                          -                              6                        -                  10,801
                                                                 29,980                                      12,628                                     16,149                             40                        -                  58,797
                                                                 ------                                      ------                                     ------                            ---                      ---                  ------
    Properties Impacted by Flooding
                  Natchez, Mississippi                            3,858                                         418                                          -                              5                   (1,485)                  2,796
                  Lula, Mississippi                              (5,303)                                      1,585                                     14,400                              5                   (5,455)                  5,232
                  Vicksburg, Mississippi (2)                      3,528                                       1,259                                          -                              3                     (703)                  4,087
                  Caruthersville, Missouri                        2,528                                         893                                          -                              5                     (751)                  2,675
                  Davenport, Iowa                                 3,110                                         533                                          -                              5                     (260)                  3,388
                                                                  7,721                                       4,688                                     14,400                             23                   (8,654)                 18,178
                                                                  -----                                       -----                                     ------                            ---                   ------                  ------

    Total Operating Properties                                   37,701                                      17,316                                     30,549                             63                   (8,654)                 76,975
                  Corporate and Other                           (11,597)                                        608                                      1,979                          1,326                        -                  (7,684)
    Total                                                       $26,104                                     $17,924                                    $32,528                         $1,389                  $(8,654)                $69,291
                                                                =======                                     =======                                    =======                         ======                  =======                 =======


                                                                 Three Months Ended April 24, 2011
                                                                 ---------------------------------
                                             Operating Income (Loss)                Depreciation and Amortization             Valuation and Other Charges (4)  Stock-Based Compensation       Insurance Recoveries      Adjusted EBITDA
                                             ----------------------                 -----------------------------              ------------------------------  ------------------------       --------------------      ---------------
    Properties Not Impacted by Flooding
                  Lake Charles, Louisiana                        $4,485                                      $2,285                           $              -                            $19           $            -                  $6,789
                  Kansas City, Missouri                           5,355                                         939                                          -                              6                        -                   6,300
                  Boonville, Missouri                             6,344                                       1,073                                          -                             21                        -                   7,438
                  Bettendorf, Iowa                                4,463                                       1,989                                          -                              5                        -                   6,457
                  Marquette, Iowa                                 1,044                                         427                                          -                              7                        -                   1,478
                  Waterloo, Iowa                                  5,955                                       1,586                                          -                             16                        -                   7,557
                  Black Hawk, Colorado                            3,187                                       2,919                                          -                             12                        -                   6,118
                  Pompano, Florida                                6,394                                       2,918                                          -                              5                        -                   9,317
                                                                 37,227                                      14,136                                          -                             91                        -                  51,454
                                                                 ------                                      ------                                        ---                            ---                      ---                  ------
    Properties Impacted by Flooding
                  Natchez, Mississippi                            2,464                                         399                                          -                              8                        -                   2,871
                  Lula, Mississippi                               4,667                                       1,806                                          -                             20                        -                   6,493
                  Vicksburg, Mississippi (2)                      1,835                                       1,379                                          -                              -                        -                   3,214
                  Caruthersville, Missouri                        1,785                                         767                                          -                              8                        -                   2,560
                  Davenport, Iowa                                 2,257                                         577                                          -                              8                        -                   2,842
                                                                 13,008                                       4,928                                          -                             44                        -                  17,980
                                                                 ------                                       -----                                        ---                            ---                      ---                  ------

    Total Operating Properties                                   50,235                                      19,064                                          -                            135                        -                  69,434
                  Corporate and Other                           (10,903)                                        600                                      2,988                          1,399                        -                  (5,916)
    Total                                                       $39,332                                     $19,664                                     $2,988                         $1,534           $            -                 $63,518
                                                                =======                                     =======                                     ======                         ======           ==============                 =======

                                                                                               Isle of Capri Casinos, Inc.
                                                                              Reconciliation of Operating Income (Loss) to Adjusted EBITDA
                                                                                                (unaudited, in thousands)

                                                                     Twelve Months Ended April 29, 2012
                                                                     ----------------------------------
                                               Operating Income (Loss)                       Depreciation and Amortization                 Valuation and Other Charges (4)   Stock-Based Compensation          Adjusted EBITDA
                                                ----------------------                       -----------------------------                  ------------------------------   ------------------------          ---------------
    Properties Not Impacted by Flooding
                  Lake Charles, Louisiana                          $(4,478)                                             $9,291                                    $16,149                                $38                $21,000
                  Kansas City, Missouri                             13,902                                               3,997                                          -                                 11                 17,910
                  Boonville, Missouri                               26,018                                               3,481                                          -                                 45                 29,544
                  Bettendorf, Iowa                                  12,793                                               8,122                                          -                                 21                 20,936
                  Marquette, Iowa                                    4,169                                               1,791                                          -                                 25                  5,985
                  Waterloo, Iowa                                    20,399                                               6,573                                          -                                 37                 27,009
                  Black Hawk, Colorado                              17,468                                              10,953                                          -                                 40                 28,461
                  Pompano, Florida                                  17,393                                              10,539                                          -                                 24                 27,956
                                                                   107,664                                              54,747                                     16,149                                241                178,801
                                                                   -------                                              ------                                     ------                                ---                -------
    Properties Impacted by Flooding
                  Natchez, Mississippi                               6,478                                               1,536                                          -                                 25                  8,039
                  Lula, Mississippi                                 (4,729)                                              6,590                                     14,400                                 45                 16,306
                  Vicksburg, Mississippi (2)                         4,145                                               5,067                                          -                                 10                  9,222
                  Caruthersville, Missouri                           4,497                                               3,395                                          -                                 26                  7,918
                  Davenport, Iowa                                    8,261                                               2,202                                          -                                 26                 10,489
                                                                    18,652                                              18,790                                     14,400                                132                 51,974
                                                                    ------                                              ------                                     ------                                ---                 ------

    Total Operating Properties                                     126,316                                              73,537                                     30,549                                373                230,775
                  Corporate and Other                              (41,933)                                              2,513                                      1,979                              7,269                (30,172)
    Total                                                          $84,383                                             $76,050                                    $32,528                             $7,642               $200,603
                                                                   =======                                             =======                                    =======                             ======               ========


                                                                 Twelve Months Ended April 24, 2011
                                                                 ----------------------------------
                                             Operating Income (Loss)                       Depreciation and Amortization                 Valuation and Other Charges (4)   Stock-Based Compensation          Adjusted EBITDA
                                              ----------------------                       -----------------------------                  ------------------------------   ------------------------          ---------------
    Properties Not Impacted by Flooding
                  Lake Charles, Louisiana                          $13,638                                              $9,335                         $                -                                $82                $23,055
                  Kansas City, Missouri                             14,619                                               3,614                                          -                                 29                 18,262
                  Boonville, Missouri                               22,670                                               4,318                                          -                                 86                 27,074
                  Bettendorf, Iowa                                  13,386                                               7,982                                          -                                 25                 21,393
                  Marquette, Iowa                                    3,780                                               1,645                                          -                                 30                  5,455
                  Waterloo, Iowa                                    17,953                                               6,870                                          -                                 69                 24,892
                  Black Hawk, Colorado                              10,993                                              12,442                                          -                                 55                 23,490
                  Pompano, Florida                                  12,030                                               9,996                                          -                                 24                 22,050
                                                                   109,069                                              56,202                                          -                                400                165,671
                                                                   -------                                              ------                                        ---                                ---                -------
    Properties Impacted by Flooding
                  Natchez, Mississippi                               7,591                                               1,468                                          -                                 32                  9,091
                  Lula, Mississippi                                 12,471                                               7,283                                          -                                 81                 19,835
                  Vicksburg, Mississippi (2)                         4,188                                               4,552                                          -                                  -                  8,740
                  Caruthersville, Missouri                           3,909                                               3,303                                          -                                 32                  7,244
                  Davenport, Iowa                                    8,171                                               2,278                                          -                                 33                 10,482
                                                                    36,330                                              18,884                                          -                                178                 55,392
                                                                    ------                                              ------                                        ---                                ---                 ------

    Total Operating Properties                                     145,399                                              75,086                                          -                                578                221,063
                  Corporate and Other                              (43,468)                                              2,527                                      2,988                              6,864                (31,089)
    Total                                                         $101,931                                             $77,613                                     $2,988                             $7,442               $189,974
                                                                  ========                                             =======                                     ======                             ======               ========

                                                  Isle of Capri Casinos, Inc.
                         Reconciliation of Income (Loss) From Continuing Operations to Adjusted EBITDA
                                                   (unaudited, in thousands)

                                                                  Three Months Ended              Twelve Months Ended
                                                                  ------------------              -------------------
                                         April 29,                          April 24,            April 29,              April 24,
                                                                      2012                 2011                   2012              2011
                                                                      ----                 ----                   ----              ----
    Income (loss) from
     continuing operations                             $(13,478)               $8,356             $(17,383)                $3,735
                            Income tax provision                    17,502                8,335                 15,119             6,950
                            Derivative (income) expense               (187)                 (42)                  (439)            1,214
                            Interest income                           (199)                (541)                  (819)           (1,903)
                            Interest expense                        22,466               23,224                 87,905            91,935
                            Depreciation and amortization           17,924               19,664                 76,050            77,613
                            Stock-based compensation                 1,389                1,534                  7,642             7,442
                            Valuation charges and other (4)         32,528                2,988                 32,528             2,988
                            Insurance recoveries (3)                (8,654)                   -                      -                 -
    Adjusted EBITDA                                     $69,291               $63,518             $200,603               $189,974
                                                        =======               =======             ========               ========

                                                                                                    Isle of Capri Casinos, Inc.
                                        Reconciliations of GAAP Net Income (Loss) to Adjusted Net Income (Loss) and GAAP Net Income (Loss) Per Share to Adjusted Net Income (Loss) Per Share
                                                                                                     (unaudited, in thousands)

                                                                      Three Months Ended                            Twelve Months Ended
                                                                      ------------------                            -------------------
                                                                           April 29,                                     April 24,                                     April 29,               April 24,
                                                                                             2012                                          2011                                          2012              2011
                                                                                             ----                                          ----                                          ----              ----
    GAAP net income (loss)                                                              $(124,791)                                      $10,871                                     $(129,753)           $4,540
    Insurance recoveries (3)                                                               (8,654)                                            -                                             -                 -
    Valuation charges and other (4)                                                        32,528                                         2,988                                        32,528             2,988
    Adjustment for taxes on above items                                                    (3,790)                                       (1,195)                                       (7,251)           (1,195)
    Tax valuation allowance                                                                 8,742                                             -                                         8,742                 -
    Discontinued operations                                                               111,313                                        (2,515)                                      112,370              (805)
    Adjusted net income                                                                   $15,348                                       $10,149                                       $16,636            $5,528
                                                                                          =======                                       =======                                       =======            ======


    GAAP net income (loss)                                                                 $(3.20)                                        $0.28                                        $(3.35)            $0.13
    Insurance recoveries (3)                                                                (0.22)                                            -                                             -                 -
    Valuation charges and other (4)                                                          0.83                                          0.08                                          0.84              0.09
    Adjustment for taxes on above items                                                     (0.10)                                        (0.03)                                        (0.19)            (0.03)
    Tax valuation allowance                                                                  0.22                                             -                                          0.23                 -
    Discontinued operations                                                                  2.85                                         (0.06)                                         2.90             (0.02)
    Adjusted net income per share                                                           $0.38                                         $0.27                                         $0.43             $0.17
                                                                                            =====                                         =====                                         =====             =====

            1.   Adjusted EBITDA is "earnings before
                 interest and other non-operating
                 income (expense), income taxes,
                 stock-based compensation, valuation
                 charges and other unusual items (see
                 Note 4 below) 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
                 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 operating income is included in
                 the financial schedules accompanying
                 this release.

                 Adjusted EBITDA margin is calculated
                 by dividing Adjusted EBITDA by net
                 revenues before insurance
                 recoveries.

                 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.

            2.   Rainbow Casino in Vicksburg,
                 Mississippi was acquired on June 8,
                 2010 and we have included the
                 results of Rainbow in our
                 consolidated financial statements
                 subsequent to acquisition.

            3.   We have received insurance recoveries
                 related to our flood claims
                 associated with the flooding along
                 the Mississippi River in the first
                 quarter of fiscal 2012.

            4.   Valuation charges and other in the
                 fourth quarter and fiscal 2012
                 consists of a goodwill impairment
                 charge at our Lula, Mississippi
                 property of $14.4 million, a charge
                 of $16.1 million at our Lake Charles
                 property related to the sale of our
                 smaller riverboat and associated
                 gaming license, and a charge of $2.0
                 million at Corporate in connection
                 with a legal judgment. Valuation
                 charges and other in the fourth
                 quarter and fiscal 2011 consist of
                 debt refinancing costs of $3.0
                 million.

SOURCE Isle of Capri Casinos, Inc.

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