Loss narrows for Isle of Capri Casinos

ST. LOUIS -- Isle of Capri Casinos Inc. said Thursday its fiscal fourth-quarter loss narrowed from a year ago when it absorbed hefty charge related to the sale of a Mississippi property.

But its quarterly performance missed Wall Street's expectations. Shares slipped 4 cents, or 0.51 percent, to $7.84 Thursday. It shares have traded in a 52-week range of $4.75 to $8.79.

CEO Virginia McDowell said people that visit Isle's properties were pressured by economic factors such as a higher payroll tax and delays in tax refunds. Bad weather also may have kept people away, she added.

As for the Isle Cape Girardeau, McDowell said a new casino is always a challenge. Isle Cape Girardeau opened Oct. 30, 2012.

"When you're opening a property, it's part art and part science," she said. "The object is to get people in the front door and build a database."

Chief Financial Officer Dale Black agreed. "We still think, in the long term, it takes three years for these properties to hit their stride," he said.

Revenue and attendance fell at the Cape Girardeau casino in April. About 32 percent fewer people visited the casino in April compared to March. Isle Cape Girardeau had gross receipts, minus winnings paid, of $5.7 million in April from table games and slot machines, down 25 percent from March.

Adding to the casino's growing pains, General Manager Chet Koch was replaced in early May with a temporary administrator, Barron Fuller. Black said a new GM should be in place later this summer. "We are in the market and have begun to search for a permanent GM," he said.

For the period ended April 28, Isle of Capris Casinos lost $45.4 million, or $1.15 per share. A year earlier it lost $124.8 million, or $3.20 per share.

The year-ago period included a $112.6 million charge related the property sale in Biloxi, Miss.

Removing preopening costs and other items, the company said its adjusted earnings came to 24 cents per share. Analysts surveyed by FactSet expected higher earnings of 36 cents per share, on average.

Revenue fell 8 percent to $268.1 million from $291 million as the St. Louis company got slightly more promotional and made less money from hotel rooms and people gambling. Wall Street predicted $281.4 million in revenue.

For the year, Isle lost $47.6 million, or $1.21 per share. That compares with a loss of $129.8 million, or $3.35 per share, in the previous year. Annual revenue dipped 1 percent to $965.2 million from $977.4 million.

Isle of Capri owns and runs casino-resort properties in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. It is also developing a facility in Pennsylvania.