Industry News
Isle of Capri Revenue Up, Profits Still Elusive
Though it has some of its future plans pinned on winning a bid to open a major casino in Singapore and in Pittsburgh, PA, things are going pretty well for Isle of Capri Casinos.
This week Isle of Capri announced its financial results for the second quarter 2007 ended October 29, 2006 (the company starts its fiscal year in May). The Company reported a 15.8% increase in net revenues from continuing operations to $243.2 million for the second quarter compared to net revenues from continuing operations of $210 million for the same quarter in fiscal 2006.
"Fiscal 2007 continues to be a transitional year as we concentrate on new development projects, future growth opportunities and long-term strategies. Our portfolio will soon increase by two as we move closer to opening gaming properties in Pompano Beach, Fla. and Waterloo, Iowa bringing the Isle of Capri experience to new markets," Bernard Goldstein, chairman and chief executive officer, said in a conference call held on December 1.
Net loss from continuing operations decreased to $4.2 million or $0.14 per diluted common share, during the second quarter of fiscal 2007 compared to $5.5 million or $0.18 per diluted common share for the second quarter of fiscal 2006.
For the six months ended October 29, 2006, the Company reported a 14.3% increase in net revenues from continuing operations to $517.2 million, compared to $452.5 million for the comparable period in the prior year.
For the first six months of fiscal 2007, the Company reported an increase in income from continuing operations to $1.1 million, or $0.03 per diluted common share. Net loss from continuing operations for the same period in fiscal 2006 was $2.2 million, or $0.07 per diluted common share.
Additionally, Isle of Capri is close to opening the Pompano Park Harness Track in Florida and anticipates opening the facility in early 2007 with 1,500 slot machines, a poker room and four restaurants including Bragozzo, an Italian bistro and wine bar created by accomplished chef, Luke Palladino; Farraddays', it's signature steakhouse; a tropical-themed Isle Buffet and a traditional New York Style delicatessen.
In other development news, isle of Capri will also up a new casino next spring in Waterloo, Iowa. It will include 1,300 slot machines, three restaurants, a 200-room hotel and 1,000 parking spaces. The project scope has recently been expanded and will also include a night club, a full service spa and a resort pool at an additional cost of $175 million. A new $45 million hotel for their property in Bettendorf, Iowa is scheduled to open next summer.
It’s also expected they will acquire a license to operate a slot machine facility in Pittsburgh, Pennsylvania, which would include a $450 million casino, a $290 million multi-purpose arena, and more than $350 million in residential, office and retail development by Nationwide Realty Investors on the site of the existing Mellon Arena.
"Our team is closely monitoring results and managing costs during this transitional year. We are facing some near-term challenges due to increased competition and softness in certain markets that require cost cutting in operational expenses and broadened marketing strategies. As fiscal 2007 moves forward we will continue to face these challenges head-on, elevate our brand offerings and position the Company for future growth and stability," said Tim Hinkley, president and chief operating officer.
Operational Review of the Company's Continuing Operations for the Second Quarter of Fiscal 2007 Compared to the Second Quarter of Fiscal 2006.
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