Consolidating Condensed Financial Information

9 Months Ended

Jan. 22, 2012

Consolidating Condensed Financial Information

Consolidating Condensed Financial Information

13.  Consolidating Condensed Financial Information

Certain of our wholly owned subsidiaries have fully and unconditionally guaranteed on a joint and several basis, the payment of all obligations under our 7.75% Senior Notes and 7% Senior Subordinated Notes.

The following wholly owned subsidiaries of the Company are guarantors, on a joint and several basis, under the 7.75% Senior Notes and 7% Senior Subordinated Notes: Black Hawk Holdings, L.L.C.; Casino America of Colorado, Inc.; CCSC/Blackhawk, Inc.; Grand Palais Riverboat, Inc.; IC Holdings Colorado, Inc.; IOC-Black Hawk Distribution Company, L.L.C.; IOC-Boonville, Inc.; IOC-Caruthersville, L.L.C.; IOC-Kansas City, Inc.; IOC-Lula, Inc.; IOC-Natchez, Inc.; IOC Black Hawk County, Inc.; IOC Davenport, Inc.; IOC Holdings, L.L.C.; IOC Services, LLC.; IOC-Vicksburg, Inc.; IOC-Vicksburg, LLC; Rainbow Casino Vicksburg Partnership, L.P.; IOC Cape Girardeau, LLC; Isle of Capri Bettendorf Marina Corporation; Isle of Capri Bettendorf, L.C; Isle of Capri Black Hawk Capital Corp.; Isle of Capri Black Hawk, L.L.C.; Isle of Capri Marquette, Inc.; P.P.I, Inc.; Riverboat Corporation of Mississippi; Riverboat Services, Inc.; and St. Charles Gaming Company, Inc.

Consolidating condensed balance sheets as of January 22, 2012 and April 24, 2011 are as follows (in thousands):

	As of January 22, 2012
	Isle of Capri								Consolidating
	Casinos, Inc.					Non-			and			Isle of Capri
	(Parent		Guarantor			Guarantor			Eliminating			Casinos, Inc.
	Obligor)		Subsidiaries			Subsidiaries			Entries			Consolidated
Balance Sheet
Current assets	$	31,172	$	90,873		$	28,884		$	(2,827	)	$	148,102
Intercompany receivables	991,046		(178,826		)	(49,452		)	(762,768		)	—
Investments in subsidiaries	427,654		(66,190		)	(37		)	(361,427		)	—
Property and equipment, net	9,592		1,061,090			32,309			—			1,102,991
Other assets	68,143		435,960			16,759			(60,020		)	460,842
Total assets	$	1,527,607	$	1,342,907		$	28,463		$	(1,187,042	)	$	1,711,935
Current liabilities	$	50,713	$	83,769		$	31,253		$	(2,827	)	$	162,908
Intercompany payables	—		762,768			—			(762,768		)	—
Long-term debt, less current maturities	1,156,495		3,279			509			—			1,160,283
Other accrued liabilities	8,780		114,194			14,171			(60,020		)	77,125
Stockholders’ equity	311,619		378,897			(17,470		)	(361,427		)	311,619
Total liabilities and stockholders’ equity	$	1,527,607	$	1,342,907		$	28,463		$	(1,187,042	)	$	1,711,935

	As of April 24, 2011
	Isle of Capri								Consolidating
	Casinos, Inc.					Non-			and			Isle of Capri
	(Parent		Guarantor			Guarantor			Eliminating			Casinos, Inc.
	Obligor)		Subsidiaries			Subsidiaries			Entries			Consolidated
Balance Sheet
Current assets	$	28,886	$	87,650		$	32,274		$	(451	)	$	148,359
Intercompany receivables	1,020,593		(226,226		)	(56,599		)	(737,768		)	—
Investments in subsidiaries	418,767		(65,229		)	(37		)	(353,501		)	—
Property and equipment, net	10,215		1,071,415			31,919			—			1,113,549
Other assets	63,889		441,794			20,002			(53,705		)	471,980
Total assets	$	1,542,350	$	1,309,404		$	27,559		$	(1,145,425	)	$	1,733,888
Current liabilities	$	40,714	$	84,565		$	29,050		$	(451	)	$	153,878
Intercompany payables	—		737,768			—			(737,768		)	—
Long-term debt, less current maturities	1,183,091		3,517			613			—			1,187,221
Other accrued liabilities	9,517		114,205			13,744			(53,705		)	83,761
Stockholders’ equity	309,028		369,349			(15,848		)	(353,501		)	309,028
Total liabilities and stockholders’ equity	$	1,542,350	$	1,309,404		$	27,559		$	(1,145,425	)	$	1,733,888

Consolidating condensed statements of operations for the three and nine month periods ended January 22, 2012 and January 23, 2011 are as follows (in thousands):

	For the Three Months Ended January 22, 2012
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Operations	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Revenues:
Casino	$	—		$	251,371		$	—		$	—		$	251,371
Rooms, food, beverage, pari-mutuel and other	479			43,516			2,254			(2,246		)	44,003
Gross revenues	479			294,887			2,254			(2,246		)	295,374
Less promotional allowances	—			(53,126		)	—			—			(53,126		)
Net revenues	479			241,761			2,254			(2,246		)	242,248
Operating expenses:
Casino	—			41,385			—			—			41,385
Gaming taxes	—			61,069			—			—			61,069
Other operating expenses	8,744			91,165			1,327			(2,246		)	98,990
Management fee expense (revenue)	(8,350		)	8,350			—			—			—
Depreciation and amortization	489			20,778			138			—			21,405
Total operating expenses	883			222,747			1,465			(2,246		)	222,849
Operating income (loss)	(404		)	19,014			789			—			19,399
Interest expense, net	(6,022		)	(15,365		)	(165		)	—			(21,552		)
Derivative income	223			—			—			—			223
Equity in income (loss) of subsidiaries	3,386			(586		)	—			(2,800		)	—
Income (loss) from continuing operations before income taxes	(2,817		)	3,063			624			(2,800		)	(1,930		)
Income tax (provision) benefit	1,635			(663		)	(224		)	—			748
Income (loss) from continuing operations	(1,182		)	2,400			400			(2,800		)	(1,182		)
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	(1,182	)	$	2,400		$	400		$	(2,800	)	$	(1,182	)

	For the Three Months Ended January 23, 2011
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Operations	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Revenues:
Casino	$	—		$	240,205		$	—		$	—		$	240,205
Rooms, food, beverage, pari-mutuel and other	162			39,295			2,413			(2,388		)	39,482
Gross revenues	162			279,500			2,413			(2,388		)	279,687
Less promotional allowances	—			(47,680		)	—			—			(47,680		)
Net revenues	162			231,820			2,413			(2,388		)	232,007
Operating expenses:
Casino	—			38,529			—			—			38,529
Gaming taxes	—			58,331			—			—			58,331
Other operating expenses	9,150			88,311			1,959			(2,388		)	97,032
Management fee expense (revenue)	(7,947		)	7,947			—			—			—
Depreciation and amortization	461			21,223			138			—			21,822
Total operating expenses	1,664			214,341			2,097			(2,388		)	215,714
Operating income (loss)	(1,502		)	17,479			316			—			16,293
Interest expense, net	(5,665		)	(15,318		)	(92		)	—			(21,075		)
Derivative expense	974			—			—			—			974
Equity in income (loss) of subsidiaries	(748		)	(463		)	—			1,211			—
Income (loss) from continuing operations before income taxes	(6,941		)	1,698			224			1,211			(3,808		)
Income tax (provision) benefit	4,284			(3,364		)	231			—			1,151
Income (loss) from continuing operations	(2,657		)	(1,666		)	455			1,211			(2,657		)
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	(2,657	)	$	(1,666	)	$	455		$	1,211		$	(2,657	)

	For the Nine Months Ended January 22, 2012
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Operations	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Revenues:
Casino	$	—		$	760,428		$	—		$	—		$	760,428
Rooms, food, beverage, pari-mutuel and other	769			131,253			7,245			(6,896		)	132,371
Gross revenues	769			891,681			7,245			(6,896		)	892,799
Less promotional allowances	—			(157,273		)	—			—			(157,273		)
Net revenues	769			734,408			7,245			(6,896		)	735,526
Operating expenses:
Casino	—			123,290			—			—			123,290
Gaming taxes	—			183,550			—			—			183,550
Other operating expenses	30,579			278,836			5,734			(6,896		)	308,253
Management fee expense (revenue)	(25,681		)	25,681			—			—			—
Depreciation and amortization	1,491			62,834			414			—			64,739
Total operating expenses	6,389			674,191			6,148			(6,896		)	679,832
Operating income (loss)	(5,620		)	60,217			1,097			—			55,694
Interest expense, net	(18,849		)	(45,514		)	(452		)	—			(64,815		)
Derivative income	252			—			—			—			252
Equity in income (loss) of subsidiaries	8,514			(975		)	—			(7,539		)	—
Income (loss) from continiuing operations before income taxes	(15,703		)	13,728			645			(7,539		)	(8,869		)
Income tax (provision) benefit	10,741			(4,568		)	(2,266		)	—			3,907
Income (loss) from continuing operations	(4,962		)	9,160			(1,621		)	(7,539		)	(4,962		)
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	(4,962	)	$	9,160		$	(1,621	)	$	(7,539	)	$	(4,962	)

	For the Nine Months Ended January 23, 2011
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Operations	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Revenues:
Casino	$	—		$	754,007		$	—		$	—		$	754,007
Rooms, food, beverage, pari-mutuel and other	1,469			127,551			7,370			(7,296		)	129,094
Gross revenues	1,469			881,558			7,370			(7,296		)	883,101
Less promotional allowances	—			(152,522		)	—			—			(152,522		)
Net revenues	1,469			729,036			7,370			(7,296		)	730,579
Operating expenses:
Casino	—			118,117			—			—			118,117
Gaming taxes	—			182,951			—			—			182,951
Other operating expenses	31,649			273,488			7,821			(7,296		)	305,662
Management fee expense (revenue)	(25,560		)	25,560			—			—			—
Depreciation and amortization	1,492			65,008			434			—			66,934
Total operating expenses	7,581			665,124			8,255			(7,296		)	673,664
Operating income (loss)	(6,112		)	63,912			(885		)	—			56,915
Interest expense, net	(21,167		)	(45,985		)	(187		)	—			(67,339		)
Derivative expense	(1,256		)	—			—			—			(1,256		)
Equity in income (loss) of subsidiaries	8,969			(1,747		)	—			(7,222		)	—
Income (loss) from continiuing operations before income taxes	(19,566		)	16,180			(1,072		)	(7,222		)	(11,680		)
Income tax (provision) benefit	12,441			(8,465		)	579			—			4,555
Income (loss) from continuing operations	(7,125		)	7,715			(493		)	(7,222		)	(7,125		)
Income (loss) from discontinued operations, net of tax	794			—			—			—			794
Net income (loss)	$	(6,331	)	$	7,715		$	(493	)	$	(7,222	)	$	(6,331	)

Consolidating condensed statements of cash flows for the nine months ended January 22, 2012 and January 23, 2011 are as follows (in thousands):

	Nine Months Ended January 22, 2012
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Cash Flows	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by (used in) operating activities	$	2,930		$	65,531		$	1,737		$	—		$	70,198
Net cash provided by (used in) investing activities	28,588			(43,876		)	(969		)	(29,545		)	(45,802		)
Net cash provided by (used in) financing activities	(26,821		)	(22,628		)	(7,244		)	29,545			(27,148		)
Effect of foreign currency exchange rates on cash and cash equivalents	—			—			—			—			—
Net increase (decrease) in cash and cash equivalents	4,697			(973		)	(6,476		)	—			(2,752		)
Cash and cash equivalents at beginning of the period	3,952			62,105			9,121			—			75,178
Cash and cash equivalents at end of the period	$	8,649		$	61,132		$	2,645		$	—		$	72,426

	Nine Months Ended January 23, 2011
	Isle of Capri									Consolidating
	Casinos, Inc.						Non-			and			Isle of Capri
	(Parent			Guarantor			Guarantor			Eliminating			Casinos, Inc.
Statement of Cash Flows	Obligor)			Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by (used in) operating activities	$	(3,753	)	$	77,073		$	9,464		$	—		$	82,784
Net cash provided by (used in) investing activities	(47,466		)	(109,374		)	(17,838		)	42,445			(132,233		)
Net cash provided by (used in) financing activities	51,707			39,746			2,389			(42,445		)	51,397
Effect of foreign currency exchange rates on cash and cash equivalents	—			—			(51		)	—			(51		)
Net increase (decrease) in cash and cash equivalents	488			7,445			(6,036		)	—			1,897
Cash and cash equivalents at beginning of the period	6,506			46,994			14,569			—			68,069
Cash and cash equivalents at end of the period	$	6,994		$	54,439		$	8,533		$	—		$	69,966