Knobias Clip Report (09-03-2008) ISLE
Submitted By Knobias ClipReport
ISLE: Management Comments on Q1 Earnings and Property Closings Due to Hurricane
By Fain Hughes, fhughes@knobias.com
Isle of Capris Casinos, Inc. (ISLE) reported financial results for the first quarter of fiscal year 2009 ended July 27, 2008. During the quarter, net revenues increased by $3.8 million, or 1.4%, as compared to the first quarter of fiscal 2008. The Company’s net loss for the quarter improved to ($3.6) million, or ($0.12) per share, compared to ($7.1) million, or ($0.23) per share, for the same period of the prior fiscal year.
Dale R. Black, CFO of Isle of Capris, commented in a conference call today, “Impacting EPS was a $6 million charge related to our decision to get out of a potential development project in Portland. This had the impact of almost $0.12 per share on EPS. Without the impact of that, we would have been slightly profitable and break-even on an EPS basis.”
As of July 27, 2008 the Company had $110.5 million cash and cash equivalents and total debt of $1.5 billion. Capital expenditures for the three months ended July 27, 2008 totaled $8.2 million which included approximately $5.0 of maintenance capital expenditures.
Over this past Labor Day weekend, the Company closed its properties in Biloxi and Natchez, Mississippi, as well as our property in Lake Charles, Louisiana, due to Hurricane Gustav. The Company is working as quickly as possible to reopen these properties, pending regulatory approval. While there was some flooding and minor damage to some facilities, the damage was not severe and should not have a significant impact on operations moving forward.
Virginia McDowell, President and COO of Isle of Capris, noted during the conference call, “The financial impact of these properties closing for several days can’t be determined at this time.”
Later in the conference call, Ms. McDowell explained, “We are going to continue to trim costs and seek opportunities to increase efficiencies at each of our properties. We will also take advantage of every opportunity that we can find. I am optimistic about the value still to be realized from our operating strategies.”
Mr. Black added, “The real opportunities are going to come when the macro-environment changes, and we are able to increase revenues. Once that happens, we are confident that we will see some flow through.”
Visit 1800blogger to see all of our industry leading blogs.
