Isle of Capri loses money in 2Q, tops Wall Street expectations

Friday, December 3, 2010

ST. LOUIS (AP) -- Isle of Capri Casinos Inc. said Thursday it lost $1 million in its fiscal second quarter partly because of higher interest expense.

The loss was smaller than Wall Street expected. Executives of the casino operator remain cautious about the future.

"While we have recently seen positive signs in certain economic indicators and hope this positive news will continue, we believe that discretionary consumer spending could continue to lag these trends," Dale Black, senior vice president and chief financial officer, said in a statement.

Isle of Capri said its loss amounted to 3 cents per share for the three months ending Oct. 24. That compares with net income of $1.6 million, or 5 cents per share, a year earlier.

Analysts surveyed by Thomson Reuters, whose estimates normally remove one-time items, predicted a bigger loss of 7 cents per share.

Interest expense climbed to $23.4 million from $17.9 million due mostly to higher borrowing costs and increased borrowings related to its acquisition of the Rainbow Casino in Vicksburg, Miss.

Revenue edged up to $246.7 million from $246.1 million, helped in part by higher casino revenue. Analysts expected $248.8 million.

Isle of Capri, based in St. Louis, has 15 casinos in states including Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. It also has a harness track in Florida.

On Wednesday, the company was given approval by state regulators to begin construction of a casino on the Cape Girardeau riverfront.

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