Capri riding revenue high

Aug 20, 2002 5:12 AM

Business has never been better at Isle of Capri. "I think it’s because the customers like us," John Gallaway, president and chief officer at Isle of Capri told CNBC last week.

Isle of Capri Casinos Inc. reported net income per diluted common share of $0.40 for the first quarter that ended July 28. The price is the highest for any quarter and more than double last year’s $0.20.

The $60.9 million EBITDA figure for the quarter ending July 28 was an increase of $8.8 million or 17 percent from the prior year’s first quarter of $52.1 million.

"People enjoy coming to our Isle properties," said Gallaway. "We are in six states (Louisiana, Mississippi, Iowa, Missouri, Colorado and Nevada). Our business in the Midwest deals with customers who come 15-20 times a year, rather than four or five times as they do in Las Vegas. A lot of our customers are on fixed incomes."

Isle of Capri unveiled plans for a $79 million expansion of the Point Cadet casino in Mississippi. The plans came one day after settling a property dispute with the city of Biloxi, the secretary of state and Mississippi’s university system.

The expansion announcement came when many casino projects have been on hold due to budget problems.

"The stock market is declining, but with our revenues up, we are better than a lot of other companies," Gallaway said. "Interaction with employees is a key factor to people coming back."