Supplier News
US – Isle of Capri sees fourth quarter of double digit EBITDA growth
By Phil - 7 September 2015
Isle of Capri Casinos is making money again, reporting first-quarter net income of US$3.1m, following a loss in the same period a year earlier, marking its fourth consecutive quarter with double-digit growth in EBITDA.
The St. Louis-based company reported revenue of $246.9m in the period, falling just shy of Wall Street forecasts of $247.2m. The company’s share value has more than doubled since the beginning of 2015.
Revenue was up in Black Hawk, Pompano, Mississippi, Missouri and most notably in Pennsylvania, where Isle of Capri operates a casino at Nemacolin Woodlands net revenues were $9.8m, up 13.4 per cent. The company saw decreases in Lake Charles and Iowa.
Virginia McDowell, President and CEO, commented: “We grew Adjusted EBITDA for the sixth consecutive quarter, and this quarter marks our fourth consecutive quarter with a double-digit, year-over-year increase in Adjusted EBITDA. We continue to benefit from our enhanced operating model and better overall regional market trends. We improved margins over 200 bps during the quarter as we drove higher efficiency from our marketing programs and effectively managed our cost structure. We are making prudent investments in both gaming and non-gaming amenities at our properties. At the same time, we improved our balance sheet reducing our debt and interest expense during the quarter.”
On August 11, Isle of Capri announced it would close its casino property in Natchez and entered into a definitive agreement to sell the hotel and certain assets to Casino Holding Investment Partners, LLC, the parent company of Magnolia Bluffs Casino in Natchez, for$11.5m. The transaction is expected to close in October 2015, subject to customary closing conditions.
