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Isle Of Capri Casinos Slips To Q1 Loss - Update

(RTTNews) - Isle of Capri Casinos Inc. (ISLE), an operator of branded gaming facilities, reported Tuesday a loss for the first quarter of fiscal 2011, compared to a profit last year. The loss reflected lower revenues and increased corporate and development costs associated with the recent acquisition of the Rainbow Casino and an attempted equity offering. Following the report, the stock is currently down more than 10% in trading on the Nasdaq.

For the first quarter, Isle of Capri Casinos' net loss was $2.65 million or $0.08 per share, compared to a net profit of $0.9 million or $0.03 per share in the year-ago period.

On average, 10 analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined 2.3% to $251.9 million from $257.9 million last year. Seven analysts were expecting revenues for the quarter of $262.50 million.

Corporate and development expenses rose to $12.5 million from $9.9 million last year, reflecting expenses related to an attempted equity offering and also acquisition related costs regarding the Rainbow acquisition.

Interest expense for the quarter was $23.8 million, an increase of approximately $5.4 million from last year, primarily as a result of increased borrowing costs associated with the recent amendment to the credit facility, the company noted.

James Perry, chief executive officer, said, " I believe we achieved solid performance by taking steps to maintain profitability in the midst of poor economic conditions that impacted regional gaming markets across the country during the quarter."

Going forward, the CEO said, "We are currently engaged in competitive bid processes for projects in Cape Girardeau, Missouri, and at the Nemacolin Woodlands Resort in Fayette County, Pennsylvania. Both of these licenses should be awarded by the end of the year, and we are actively exploring opportunities in other jurisdictions to increase and diversify cash flows."

ISLE is currently trading on the Nasdaq at $7.93, down $0.94 or 10.60%. Over the past year, the stock has traded in a range of $7.05 - $12.76.