Isle of Capri cites flooding for loss in second quarter
Friday, December 2, 2011
ST. LOUIS -- Isle of Capri Casinos Inc. reported a larger loss for its fiscal second-quarter than it had a year ago as flooding along the Mississippi River cut customer traffic and boosted marketing costs.
The casino operator said Thursday that its net loss amounted to $1.5 million, or 4 cents per share, for the period ended Oct. 23 versus a net loss of $1 million, or 3 cents per share, a year earlier.
Revenue edged up to $247.5 million from $246.7 million a year ago.
Analysts had expected a smaller loss of a penny per share on lower revenue of $246.2 million, according to a survey by FactSet.
Isle of Capri CEO Virginia McDowell said flooding earlier this year cut traffic to the company's casinos in Lula, Natchez and Vicksburg, Miss. McDowell said business was slow to return to pre-flood levels and Isle of Capri had to boost its marketing spending to lure customers back.
The company estimated that the lost revenue and extra costs had a roughly $2 million impact on the second quarter, before taxes and other factors were added in.
McDowell warned that Isle of Capri is facing increased competition in key markets, but said the company is pushing ahead with plans to build new properties in Cape Girardeau and in Pennsylvania.
Shares of Isle of Capri fell 28 cents, or 5.8 percent, to $4.64 in midday trading.
Isle's $125 million Cape Girardeau casino is still on schedule to open in December 2012, according to the company's quarterly report.
During the second quarter, the company spent $7.8 million related to its Cape Girardeau casino project and expects to spend an additional $30 million here before the end of its fiscal year.