Strong dollar takes bite of GTECH revenues overseas

Jun 26, 2001 10:36 AM

Although revenues declined during the first quarter for GTECH Holdings (GTK), per share net income increased from 58 cents a share a year earlier to 62 cents a share in the current period.

This was accomplished despite unfavorable exchange rates in foreign revenues.

"Had last year’s average exchange rates prevailed throughout the most recent quarter," a company statement said, "service revenues would have been comparable to the first quarter of last year. As it stands, revenues for the period ended on May 26 were $235 million, a decrease of 3 percent from last year’s $242 million.

Cash flow for the period amounted to $93.3 million. Added to $61.1 million of net borrowings under the company’s credit facility, the funds were used to purchase $72.1 million in systems, equipment and other assets related to contracts and to the repurchase of $132.1 million of the company’s common stock.

At the end of the quarter, the company said it still had $338.9 million available from its $400 million credit facility.

Prospects for the second quarter, the company said, indicated a 2 percent to 3 percent total revenue growth with gross profit margins in the range of 30 percent to 31 percent.

Company President and CEO Howard Cohen said he found the first quarter "encouraging."

"We improved our productivity, lowered our operating expenses, enhanced our management team and further strengthened our competitive position by signing several new contracts."

Isle of Capri

In what was described as a "challenging" period, Isle of Capri Casinos (ISLE) reported fourth quarter and fiscal year earnings of 26 cents and 80 cents respectively, compared to last year’s 41 cents and $1.11 per diluted share.

Bernard Goldstein, company chairman and CEO, said, "We faced challenges that most companies in a growth stage must face. Major renovations at our Lula, Miss., Kansas City, Mo., and Davenport, Iowa, properties were completed in the fourth quarter.

"Within the last year, we added hotels to our properties in Black Hawk, Colo., Lake Charles, La., and Tunica, Miss. We have endured short-term growing pains in order to accomplish our long-term goals."

Hyatt Regency

Completing its first full year of operation, the Hyatt Regency Hotel Casino at Lake Las Vegas recorded a net loss of slightly more than $12 million, based on financial filings made by Cook Inlet Region Inc. of Anchorage, Alaska.

According to Cook, a 50 percent owner of the 496-room, $150 million resort, the first year loss was anticipated. Also, revenues for the current year are running ahead of projections.

The company, one of the original investors in developments along Lake Las Vegas, consists primarily of Indian and other Alaska natives.