Lady Luck owner beats expectations for cash flow

Friday, June 22, 2001 | 11:04 a.m.

Isle of Capri Casinos Inc. of Biloxi, owner of the Lady Luck hotel-casino in downtown Las Vegas, reported net income of $7.9 million, or 26 cents per share, for the quarter ending April 29.

That's down substantially from the net income of $13 million, or 41 cents per share, reported in the year-ago period. Earnings were reduced, however, by $3.2 million after taxes in non-recurring items; excluding these items, Isle of Capri reported earnings of 37 cents per share, topping analyst estimates of 33 cents per share.

Based in Biloxi, Miss., the company said net revenue rose 25 percent to $275.8 million, while cash flow increased 8 percent to $65.4 million.

One-time charges included $3 million in write-offs from an abandoned expansion project at Isle of Capri-Biloxi, a $1 million write-down in the value of "marine assets," and $900,000 related to the buyout of theatre production contracts at the company's Tunica property.

Increases in cash flow were posted at seven of the company's 13 properties, including the Lady Luck, which saw cash flow increase 27 percent to $642,000. The strongest cash flow gainer was the company's Bettendorf, Iowa, property, which saw cash flow surge ahead 116 percent to $7.7 million.

Offsetting these gains were cash flow declines at six Isle properties, including the company's other two casinos in Iowa -- Davenport plunged 93 percent to $264,000, while Marquette was down 62 percent to $869,000. Isle blamed this on flood closures of 11 and 12 days at the properties during the quarter; it said it expects to recoup most of its flood closure related losses from insurance in fiscal 2002. The company blamed a 42 percent decline in cash flow at its Bossier City, La., property on the opening of a new competitor in that market.

One Isle property, Isle of Capri-Tunica, reported negative cash flow of $2.5 million for the quarter, compared to negative cash flow of $656,000 a year ago. Isle did not elaborate on the reasons behind the property's poor performance.