ISLE OF CAPRI CASINOS, INC. | 2007 ANNUAL REPORT > ALL DIRECTIONS LEAD TO FUN www.islecorp.com ISLE OF CAPRI CASINOS, INC. 600 Emerson Road, Suite 300, St. Louis, MO 63141 2 0 0 7 | ANNUAL REPORT © 2007 Isle of Capri Casinos, Inc. All Rights Reserved. Our vision – to be the best gaming company for our communities, our team members, our guests and of course, our investors – remains clear. We continue to upgrade existing properties, fine-tune our business models and focus on enhancing the customer experience across all of the Isle of Capri® Casinos’ brands. – Bernard Goldstein > LETTER TO SHAREHOLDERS Dear Shareholders, As we look back on fiscal 2007, Isle of Capri® Casinos met and exceeded many short-term objectives while successfully implementing long-term strategies for continued growth and expansion. Our customers and communities continue to feel the positive energy exhibited by our team members as we deliver a fun-filled and entertaining gaming experience at our properties. In fiscal 2007, we evaluated our portfolio and began to strategically evolve our mix of properties, examined various development scenarios and investigated emerging gaming markets. As part of this evaluation, we completed the sale of our properties in Bossier City, La. and Vicksburg, Miss. We opened a hotel at our Boonville, Mo. property and by fiscal year-end construction was well underway at new properties in Waterloo, Iowa and Coventry, England. And, in April, we launched our newest brand, the isle,® with the opening of the isle casino & racing at pompano park, offering exciting gaming options, including 1,500 slots, live harness racing and poker, with a variety of terrific restaurant selections. Guests can grab a quick bite at Myron’s Delicatessen, feast on delicious fare at the “live action” stations at Isle Buffet™, enjoy the savory tastes of regional Italian cuisine at Bragozzo Osteria Wine Bar ® or follow the exotic journey of flavor at Farraddays’® Steakhouse. In early fiscal 2008, legislation was implemented in Florida to extend operating hours – 18 hours a day during the week and 24 hours on the weekend; to add ATM machines on property, and add progressive slot machines to the gaming floor. After the fiscal year closed, our portfolio expanded to include a new property in Waterloo, Iowa where we unveiled the isle casino & hotel at waterloo in late June. This approximately $175 million project, in one of the last untapped gaming markets in the state, includes a 35,000 square foot single-level casino, three restaurants, banquet facilities, and a luxurious 194-room hotel. A spa and covered pool are scheduled to open later this year and plans are underway to add a nightclub to this property as well. 02 03 Top photo: the isle® casino & hotel at waterloo. Middle photo, from left: Allan B. Solomon and Bernard Goldstein cut the ribbon at the grand opening of the isle casino & racing at pompano park. Bottom photo: the isle casino & racing at pompano park. > LETTER TO SHAREHOLDERS (cont’d) Our newest brand also expanded overseas to the United Kingdom in early fiscal 2008. Located at the popular Ricoh® Arena in Coventry, the isle includes 70 electronic gaming machines; more than 40 table games including roulette and baccarat, as well as live poker; our signature Farraddays’ restaurant; a Tradewinds Marketplace® ; and three bars, including Lady G’s entertainment lounge and Bar 87 sports bar. TECHNoloGICal ADVANCEMENT At Isle of Capri Casinos, keeping pace with the most up-to-date technological advancements is an integral component of our strategy to enhance the gaming experience for our customers. On the gaming floor we implemented Advanced Bonusing System (ABS) at several properties, allowing customers to receive rewards instantly, right where they’re playing, eliminating the need to wait in line. Behind the scenes, we implemented a comprehensive customer data warehouse designed to enhance direct marketing programs. This tool, combined with more sophisticated business intelligence analytics, will allow us to deliver competitive and compelling offers to our customers and increase the efficiency of our marketing programs. Technological advancement moved beyond our marketing efforts to our hotels as well with the execution this year of a new hotel revenue management system to optimize hotel room pricing and availability. Going forward, we expect to continue to leverage our existing technologies as well as explore new opportunities to enhance our profitability and elevate the gaming experience. A WINNING HAND Our transitional period continues into fiscal 2008 as we welcome Virginia McDowell to her new role as president and chief operating officer, and welcome James B. Perry to our Board of Directors. These two respected and talented gaming executives join Isle of Capri Casinos at a transitional time in our history and we look forward to the significant contributions that they will make. As we advance, there is an opportunity to strengthen Isle of Capri Casinos’ brand portfolio by continuing to define and develop brands; identify and segment target customers; improve margins across the enterprise and leverage the technology initiatives in our pipeline. As we do so, we will remain true to our mission of creating a fun-filled, exciting experience for customers, and creating value for shareholders. 04 05 Top photo: The new Paradise Hotel Tower at Isle of Capri® Bettendorf. Bottom photo: Luxurious suite in the new Paradise Hotel Tower. > LETTER TO SHAREHOLDERS (cont’d) As Tim Hinkley departs from the role of president and COO, we must express our gratitude for his visionary leadership and unparalleled contribution. His dedication and commitment were apparent as he led our company through a period of growth, and through some very challenging times. Among other significant achievements, we credit Tim with fostering our unique culture and spearheading the positive energy felt throughout his tenure. As we move through fiscal 2008, we believe that, together with our new president and chief operating officer, we will create a winning hand by being the best gaming company for our communities, our team members, our investors and our guests. Bernard Goldstein Allan B. Solomon Robert S. Goldstein Chairman of the Board Executive Vice President Executive Vice Chairman Chief Executive Officer General Counsel 06 07 Clockwise from left: Bernard Goldstein, Chairman of the Board and Chief Executive Officer; Allan B. Solomon, Executive Vice President and General Counsel; Robert S. Goldstein, Executive Vice Chairman > FINANCIAL HIGHLIGHTS Here are the financial highlights representing consolidated results for the casino and resort properties operated by subsidiaries of Isle of Capri® Casinos, Inc. If you wish to see financial highlights by individual property, please visit us at: www.islecorp.com. Isle of Capri Casinos, Inc. common stock is traded on the NASDAQ Stock Market under the symbol ISLE. 2007 2006 2005 2004 2003 $1,035,633 $1,024,677 $977,663 $969,194 $902,465 > GROSS GAMING REVENUES* ($ IN THOUSANDS) * Includes only casino revenues and pari-mutuel communications and fees. 08 09 > CONSOLIDATED ISLE OF CAPRI CASINOS INC. (IN THOUSANDS, EXCEPT PER SHARE DATA) 1 1 1 1 1 Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended < April 29, 2007 < April 30, 2006 < April 24, 2005 < April 25, 2004 < April 27, 2003 Income Statement Data Revenues 2, 3 $ 1,001,394 $ 987,359 $ 947,326 $ 939,493 $ 892,267 Operating Expenses 3 935,568 890,887 844,337 806,241 761,749 Operating Income 3 65,826 96,472 102,989 133,252 130,518 Income from continuing (15,855) 20,721 34,327 49,798 66,775 operations before taxes and minority interest 3 Income from (.70) .28 .57 .90 1.16 continuing operations per common share–diluted Balance Sheet Data Total assets $ 2,075,691 $ 1,877,726 $ 1,735,458 $ 1,547,617 $ 1,422,094 Long-term debt 1,417,979 1,219,057 1,153,826 1,086,516 1,025,586 including current portion Stockholders’ equity $ 281,822 $ 280,247 $ 260,062 $ 238,375 $ 200,515 1 Refer to management’s discussion and analysis of financial conditions and results of operations for comments regarding the comparability of information presented. 2 Revenues are presented net of complimentaries, slot points expense and cash coupon redemptions. 3 Excludes amounts from discontinued operations related to Colorado Grande-Cripple Creek, Isle-Bossier City and Isle-Vicksburg. > COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN* Among Isle of Capri® Casinos Inc., The NASDAQ Composite Index and The Dow Jones US Gambling Index This graph matches Isle of Capri Casinos, Inc.’s cumulative 5-year total shareholder return on common stock with the cumulative total returns of the NASDAQ Composite Index and the Dow Jones US Gambling Index. The graph tracks the performance of a $100 investment in our common stock and in each of the indexes (with the reinvestment of all dividends) from 4/28/2002 to 4/29/2007. 4/27/03 4/28/02 4/25/04 4/24/05 4/30/06 4/29/07 < < < < < < Isle of Capri Casinos, Inc. $ 100 $ 63.89 $ 117.88 $ 120.51 $ 154.53 $ 125.06 NASDAQ Composite $ 100 $ 84.47 $ 113.81 $ 114.26 $ 140.77 $ 154.02 Dow Jones US Gambling $ 100 $ 92.01 $ 158.91 $ 171.28 $ 234.31 $ 274.45 The stock price included in this graph is not necessarily indicative of future stock price performance * $100 invested on 4/28/02 in stock or on 4/30/02 in index – including reinvestment of dividends. Indexes calculated on month-end basis. 10 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 29, 2007 OR ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-20538 ISLE OF CAPRI CASINOS, INC.