Casino Company Earnings by Ray Poirier | Goldstein family members, principal stockholders in Isle of Capri Inc. (ISLE) showed resilient confidence in the company despite the continuing drop in share value. Since January, the family has purchased thousands of shares even while seeing the share price cut in half from $14 to $7.
Reason for the plummeting share price became obvious last week when the company reported its fourth quarter and fiscal 2008 results.
For the fourth quarter that ended on April 27, the company reported a loss of $1.66 per share compared to the previous year when the loss was $0.48 per share. The company explained the loss as due to an impairment charge related to its business in the United Kingdom.
Net revenues for the fourth quarter increased dramatically to $298.3 million from last year’s $253.4 million.
For the fiscal year, the company said the net loss was $96.9 million or $3.16 per share. In the previous year, the company reported a loss of $21.3 million or $0.15 per share.
Despite the results, some gaming analysts retained their confidence in the company, primarily because of the appointment in March of Jim Perry as the company’s executive vice chairman and CEO and of Virginia McDowell as president and chief operating officer. Founder Bernard Goldstein remains as chairman of the board.
Larry Klatzkin of Jefferies & Co. noted that he had reiterated his "buy" rating on the stock because he said he believed the company’s new management team can "make lightning strike twice."
Perry, who returned to the company after a stint in Atlantic City, said he was pleased to report that the company had completed a thorough planning process "that resulted in a strategic plan announced earlier this year."
"In the U.K.," he said, "we have implemented a dual strategy to continue to reduce our cost structure in the short term while we explore strategic options for our UK portfolio."
He noted that the company has opened three new properties in U.K., Florida and Iowa, and has purchased Casino Aztar in Caruthersville, Missouri. As well as a minority interest in its property in Blackhawk, Colorado.
A refinancing of the company’s debt, he said, will provide an overall flexibility to implement the new strategic plan.
American Wager Inc. (BETM), more familiarly known to sports bettors in Las Vegas as Leroy’s, reported a loss of $16,000 during the quarter that ended on April 30.
The company reported in a filing with the Securities & Exchange Commission that revenues during the period amounted to $4,259,000.
Gross profit was listed as $1,246,000, down from $1,803,000 in the quarter that ended on Jan. 31 when total revenue had reached $6,440,000.
In the previous quarter, the company had listed net income as $610,000.
At the close of trading on Thursday, prior to the holiday, BETM shares were listed at $0.40 each, down $0.10 for the day.