ISLE REPORT CARD

06/07/12 11:24AM EDT

In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance.



OVERALL:  BETTER - better weather, a favorable calendar, and higher operating margins, particularly in Black Hawk, drove an EBITDA beat

  • DELEVERAGING
    • BETTER:  leverage ratio 5.7x came down a little bit from 5.8x last quarter
  • CAPE GIRARDEAU OPENING
    • MIXED: Cape Girardeau expected opening moved up two months ahead of schedule but the capex cost increased $10MM to $135MM
  • 2012 CAPEX GUIDANCE
    • BETTER:  FQ4 2012 capex was a little below $30MM, below company guidance of $45MM
  • POMPANO COMPETITION FROM SEMINOLE EXPANSION
    • SAME:  Pompano still doing well use to an aggressive marketing program and loyalty program. Pari-mutuel revs have also stabilized.
  • MISSISSIPPI ENVIRONMENT
    • SAME:  Mississippi properties continue to face the realities of a sluggish economy and heightened competitive pressures
  • PROMOTIONAL SPENDING
    • WORSE:  Saw an uptick in promotional spending in the Kansas City market due to the recent openings of the new casinos. Biloxi promotional spending environment continues to be fierce.
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