Isle of Capri reports net loss, cash flow increase

Tuesday, June 18, 2002 | 11:26 a.m.

SUN STAFF AND WIRE REPORTS

Isle of Capri Casinos Inc., owner of the Lady Luck casino in downtown Las Vegas, saw its revenue climb in the fourth quarter but its bottom line declined as the company recorded one-time expenses related to plans to sell casinos in Las Vegas and Tunica, Miss.

In March the Biloxi, Miss., company announced plans to sell its casinos in Las Vegas and Tunica and take a charge in the fourth quarter to write down the value of the assets. The Lady Luck casino had struggled in its downtown location, the company had said.

The company earned 70 cents per share for the quarter ended April 28, compared to 37 cents per share for the same period a year ago.

Including the dilutive effect of about 2 million shares primarily related to unexercised stock options, earnings would have been 65 cents per share. That compares to average analyst estimates of 54 cents per share. After various recurring and one-time charges, the company reported a net loss of 78 cents per share, or $22 million.

Cash flow or earnings before interest, taxes depreciation and amortization -- a benchmark for casino companies' financial health -- was $73.5 million, a 12 percent increase over the prior year.

Revenue for the quarter was $299.7 million, an 8 percent increase from a year ago.

The company's Las Vegas casino reported revenues of $8.7 million in the fourth quarter, down from $10.5 million last year. The Lady Luck had a negative cash flow of $612,000, compared to $642,000.

"This was the first quarter in over two years that we were not acquiring, building or performing major renovations to a property," Isle of Capri Chairman and Chief Executive Bernard Goldstein said. The company is focused on internal growth and debt reduction, he said.