Isle Of Capri Casinos Q1 Loss Narrows

(RTTNews) - Gaming and entertainment company Isle of Capri Casinos, Inc. (ISLE) on Wednesday reported a loss for the first quarter that narrowed from last year on higher revenues and lower provision for taxes.

Virginia McDowell, President and Chief Executive Officer of Isle of Capri Casinos, said, "For the second consecutive quarter, we increased Adjusted EBITDA and operating margins, on a same-store basis, despite a still challenging operating environment. Excluding Nemacolin, which was open for only one month during last year's quarter, six properties improved net revenues year over year and eight properties increased Adjusted EBITDA year over year."

The St. Louis, Missouri-based company's net loss for the first quarter was $2.32 million or $0.06 per share, narrower than loss of $4.86 million or $0.12 per share in the prior-year quarter.

The latest quarter's results include $2.26 million of severance expenses related to the corporate restructuring and $1.01 million in expenses related to the voter referendum that would potentially allow casinos at certain racetracks in Colorado. The previous year's quarter benefited from a gain of $1.02 million on the sale of the company's airplane.

Adjusted earnings for the latest quarter were $0.02 per share, compared to adjusted loss of $0.07 per share in the same period last year. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter increased 2 percent to $241.65 million from $238.01 million in the same quarter last year. Analysts had a consensus revenue estimate of $242.77 million for the quarter.

Total operating expenses edged up to $221.74 million from $219.92 million in the prior-year period.

Income taxes for the quarter was $1.33 million, compared to $4.24 million in the prior-year period. Income tax provision for the quarter was $983 thousand, compared to $1.41 million in the year-ago period.

For the remainder of fiscal 2015, the company expects to have capital expenditures of about $38 million to $41 million.

In July, Isle of Capri Casinos implemented a restructuring of its corporate group and eliminated certain executive positions to maximize efficiency and streamline reporting lines. The company expects these changes to save about $2.5 million annually.

ISLE is currently trading at $7.48, down $0.01 or 0.13 percent on a volume of 8,664 shares.