Isle of Capri 3Q loss widens on weak spending

Feb 21, 2013 9:32 AM

Casino operator Isle of Capri said Wednesday that its fiscal third-quarter loss widened, burdened by some costs and weaker consumer spending.

Its adjusted results beat Wall Street expectations, but its revenue fell short.

For the period ended Jan. 27, the casino operator lost $2.2 million, or 6 cents per share. That compares with a loss of $1.2 million, or 3 cents per share, a year earlier.

Loss from continuing operations was 3 cents per share.

Excluding preopening and development costs and the impact of insurance recoveries, Isle of Capri’s loss from continuing operations was 1 cent per share. Analysts expected a loss of 3 cents per share, according to a FactSet poll.

President and CEO Virginia McDowell said in a statement that bad weather at key times, including over New Year’s Eve weekend, also hindered its quarterly performance. In contrast, last year’s quarter included mild winter weather in the Midwest, she explained.

Revenue increased 5 percent to $238.1 million from $227.3 million as people spent more money on gambling as well as on food, drinks and racetrack betting.

Wall Street forecast $241.2 million in revenue.

Isle of Capri Casinos Inc. currently owns and runs gambling and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida. It is also developing a new facility at the Nemacolin Woodlands Resort in western Pennsylvania.

The St. Louis company’s stock added 1 cent to $6.54 in morning trading.

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