Isle of Capri 2Q loss widens, revenue declines
ST. LOUIS (AP) — Isle of Capri Casinos took a hit on taxes during the second-quarter and, paired with gamblers less willing to part with money, posted a wider loss Thursday.
Corporate and development expenses also rose $1.5 million and the company said total project costs for its Lady Luck Nemacolin in western Pennsylvania will range between $57 million and $60 million.
The casino operator lost $6.7 million, or 17 cents per share, for the three months ended Oct. 28. A year earlier it lost $1.5 million, or 4 cents per share.
Loss from continuing operations was 11 cents per share. When stripping out preopening costs related to a property in Cape Girardeau, Mo. and costs tied to refinancing subordinated debt, Isle of Capri's results were break-even.
Analysts expected earnings of 4 cents per share, according to a survey by FactSet.
The St. Louis company's income tax provision climbed to $1.2 million from $622,000.
Revenue declined 4 percent to $223.2 million from $231.4 million as people spent less money on gambling, lodging, food and drinks and other activities.
Wall Street had expected $233.4 million in revenue.
President and CEO Virginia McDowell said the company was unable to overcome weakness in its Mississippi business. She said that business there is being impacted by market conditions, construction disruption in Vicksburg related to rebranding the property a Lady Luck Casino and other factors.
Isle of Capri Casinos Inc. currently owns and runs gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. It is developing a new facility at the Nemacolin Woodlands Resort in Western Pennsylvania.
The company's stock added fell 8 cents to $5.22 in morning trading.