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Isle of Capri Casinos Inc. Reports Operating Results (10-Q)

February 28, 2011 | About:
10qk

10qk

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Isle of Capri Casinos Inc. (ISLE) filed Quarterly Report for the period ended 2011-01-23.

Isle Of Capri Casinos Inc. has a market cap of $353.13 million; its shares were traded at around $9.24 with and P/S ratio of 0.35. Mutual Fund and Other Gurus that owns ISLE: Chuck Royce of Royce& Associates.

Highlight of Business Operations:

For the three months ended January 23, 2011, casino revenues increased $1.4 million at our Pompano property, and included $9.8 million from our newly acquired Vicksburg casino. These increases were offset by decreased casino revenues at our Black Hawk property of $0.9 million reflecting the impact of competition and a decrease at our Lake Charles, Lula and Natchez properties of $1.3 million primarily due to current economic conditions. Our other properties combined for a net increase of $1.7 million in casino revenues.

Casino - Casino operating expenses increased $2.1 million, or 5.7%, and $2.8 million, or 2.4%, for the three and nine months ended January 23, 2011, respectively, as compared to the same period in the prior fiscal year. Excluding casino costs of $1.4 million and $3.4 million for the three and nine months ended January 23, 2011, in Vicksburg, our casino costs would have increased $0.7 million and decreased $0.6 million, respectively. This net change in casino operating expenses reflects net cost reductions in casino expense at most of our properties offset by a slight increase in casino expenses at our Pompano property following the expansion of gaming hours effective July 1, 2010.

Gaming Taxes - State and local gaming taxes decreased $2.2 million, or 3.6%, and $8.1 million, or 4.2%, for the three and nine months ended January 23, 2011, respectively, as compared to the same period in the prior fiscal year. Reductions in gaming taxes for the three and nine months ended January 23, 2011 reflect the decrease in state gaming taxes at our Pompano facility from 50% to 35% effective July 1, 2010, decreases in our overall gaming revenues and changes in the mix of our gaming revenues derived from states with different gaming tax rates. Gaming taxes for the three and nine months ended January 23, 2011 included $0.9 million and $2.2 million, respectively, from our Vicksburg casino.

Pari-mutuel, Food, Beverage and Other Pari-mutuel, food, beverage and other expenses were relatively flat for the three months ended and increased $0.2 million for the nine months ended January 23, 2011, respectively, as compared to the same period in the prior fiscal year. Excluding food beverage and other costs of $0.2 million and $0.8 million for the three and nine months ended January 23, 2011, incurred by our Vicksburg casino, our food, beverage and other expenses would have decreased $0.3 million and an immaterial amount, respectively.

Marine and Facilities - Marine and facilities expenses increased $0.2 million, or 1.5%, and decreased $1.6 million, or 3.4% for the three and nine months ended January 23, 2011, respectively, as compared to the same period in the prior fiscal year. Excluding marine and facility costs of $0.4 million and $1.0 million for the three and nine months ended January 23, 2011, incurred by our recently acquired Vicksburg casino, our marine and facility costs would have decreased $0.2 million and $2.6 million, respectively. This decrease includes reductions in facility costs across most properties as we continue to focus on cost reductions efforts.

Marketing and Administrative - Marketing and administrative expenses decreased $1.2 million, or 1.9%, and $2.0 million, or 1.0%, for the three and nine months ended January 23, 2011 as compared to the same period in the prior fiscal year. Excluding marketing and administrative costs of $2.3 million and $5.6 million for the three and nine months ended January 23, 2011, incurred by our Vicksburg casino, our marketing and administrative costs would have decreased $3.5 million and $7.6 million, respectively. These decreases reflect reductions in our operating cost to align such expenditures with changes in our net revenues.

Read the The complete Report

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