Isle of Capri shaves guidance but reports solid quarter

Jun 24, 2003 6:38 AM

They won’t report their fiscal experience until after their quarter ends in July but executives of Isle of Capri Casinos Inc. (ISLE) disappointed gaming analysts on Friday in a conference call.

The company said it expects first quarter earnings per share to be in the high $0.30 to low $0.40 range. Analysts polled by Thomson First Call had expected the company to earn between $0.37 and $0.41 a share.

In rather heavy trading, the company’s shares fell $0.59 before closing at $15.60 a share on Friday.

A day earlier, Isle of Capri Casinos reported net income of $18.2 million or $0.60 a share for the period ending on April 27. This compared favorably with the period last year when the company reported a loss of $22 million or $0.78 a share. The net income was generated despite a drop in total revenues from last year’s $299.7 million to this year’s $275.9 million.

The fourth quarter’s earnings per share beat the analysts’ estimates of $0.52 a share.

GTECH Holdings

GTECH Holdings Corporation (GTK) reported first quarter 2004 net income of $41 million or $0.68 per diluted share, a 39% increase over the $29 million or $0.49 per diluted share reported for the first quarter of 2003.

Product sales for the company that provides lottery services for much of the U.S., as well as countries all over the world, generated $16 million, an increase of $8.3 million over the comparable period.

Service revenues were flat at $223.5 million but service margins improved to 43.3% from last year’s 34.3%.

"Same store sales increased more than 5% over the first quarter of last year with domestic same store sales up approximately 3% and international same store sale up approximately 9%,"state Bruce Turner, company president and CEO.

He noted that during the first quarter of fiscal 2004 the company generated $63 million of cash from operations "which was principally used to fund investing activities totaling $59.8 million, resulting in free cash flow of $3.2 million."

The company also revised its earnings guidance upward for the current fiscal year to $2.55 to $2.65 a share from the previously announced $2.40 to $2.50 a share.