Isle of Capri returns to profit in 1st quarter
ST. LOUIS (AP) — Isle of Capri Casinos Inc. returned to a profit in its fiscal first quarter as the casino operator made more money from gambling, its hotel rooms and food and drinks sold despite the weak economy and tepid consumer spending.
The May-July quarter got a boost because five of the company's properties were closed for part of the prior-year period due to flooding of the Mississippi River.
Isle of Capri said Wednesday that it is cutting costs and lowering corporate spending while beefing up loyalty programs and renovating its casinos to attract guests. The St. Louis company runs 15 casinos in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida.
The company earned $6.7 million, or 17 cents per share, in the three months ended July 29. A year earlier it lost $2.3 million, or 6 cents per share. This beat the 11 cents per share that analysts polled by FactSet expected.
Revenue rose 4 percent to $235.8 million from $227.6 million. But Wall Street forecast higher revenue of $243.7 million. In the most recent quarter, some properties were hurt by construction disruptions, increased competition and transition costs related to a loyalty program, said CEO Virginia McDowell said in a statement on Wednesday.
The company said that it anticipates opening its new $135 million Cape Girardeau, Miss., complex by Nov. 1, which would be two months ahead of its original schedule.
Shares added 2 cents to $6.22 in morning trading.