Isle of Capri Casinos Inc. (ISLE, Financial) filed Quarterly Report for the period ended 2009-01-25.
Isle of Capri Casinos is a developer owner and operator of branded gaming and related lodging and entertainment facilities in growing markets in the United States. The company wholly or partially owns and operates gaming facilities under the name ``Isle of Capri``. In addition the company wholly owns and operates a pari-mutuel harness racing facility and owns interests in and operates gaming activities aboard a cruise ship based. Isle of Capri Casinos Inc. has a market cap of $105.01 million; its shares were traded at around $3.2 with and P/S ratio of 0.09. Isle of Capri Casinos Inc. had an annual average earning growth of 3.3% over the past 10 years.
Write-offs and Other Charges During the first quarter of fiscal 2009, we recorded charges of $6.0 million, consisting of a $5.0 million non-cash charge representing our cancellation of rights to acquire land and a $1.0
Casino Revenues - Casino revenues decreased $17.3 million, or 6.4%, and $36.2 million, or 4.4%, respectively, for the three and nine months ended January 25, 2009, compared to the three and nine months ended January 27, 2008. Decreases in casino revenues reflect the impact of general economic conditions, the smoking ban put into effect on January 1, 2008 at our Colorado properties, expanded tribal gaming impacting our Pompano operations, the opening of new land based casino in December 2008 by a competitor in the Quad Cities which replaced an existing riverboat operation, as well as, year-to-date decreases in casino revenues at our Lake Charles, Biloxi, Natchez and Davenport properties due to closures resulting from weather conditions and flooding. Casino revenues decreased by $6.3 million and $22.5 million for the three and nine months period ended January 25, 2009, respectively, at our Colorado properties. Casino revenues decreased $4.2 million and $2.5 million for the three and nine months ended January 25, 2009, respectively, at our Pompano property. Casino revenues at our Davenport property decreased $.5 million and $3.5 million for the three and nine months ended January 25, 2009, respectively. Casino revenues at our Bettendorf property decreased by $1.6 million for the three months ended January 25, 2009. Casino revenues decreased $12.8 million at our Lake Charles, Biloxi and Natchez properties for the nine months ended January 25, 2009. These decreases together with other decreases resulting from general economic conditions were partially offset by increases in casino revenues of $19.8 million for the nine months ended January 25, 2009, due to our new properties in Caruthersville, Waterloo and Coventry being opened for the entire period in fiscal 2009.
Rooms Revenue - Rooms revenue decreased $1.5 million, or 13.7%, and $1.9 million, or 5.1% for the three and nine months ended January 25, 2009, compared to the three and nine months ended January 27, 2008. Rooms revenue decreased in total at our Biloxi, Natchez and Black Hawk properties by $1.1 million and $3.2 million for the three and nine month periods, respectively, which we attribute to declining economic conditions, increased competition and at Black Hawk the impact of the smoking ban in Colorado. These declines in room revenues
Food, Beverage, Pari-mutuel and Other Revenues - Food, beverage, pari-mutuel and other revenues decreased $4.7 million, or 12.3%, and $9.7 million or 8.5% for the three and nine months ended January 25, 2009, respectively, compared to the three and nine months ended January 27, 2008. These decreases included reductions in food, beverage and other revenues of $3.5 million and $7.5 million for the three and nine months ended January 25, 2009, respectively, primarily due to the impact of economic conditions on our properties. Weather related closures at our Lake Charles, Biloxi, Natchez and Davenport properties also contributed to the decrease for the nine months ended January 25, 2009. Additionally, pari-mutuel commissions earned at Pompano Park for the three and nine months ended January 25, 2009 decreased $1.2 million, and $2.2 million, in the three and nine month periods ended January 25, 2009, respectively, due to decreased handle and commissions from live and simulcast races.
Promotional Allowances - Promotional allowances decreased $2.0 million, or 4.1%, and $5.3 million, or 3.6%, for the three and nine months ended January 25, 2009, respectively, compared to the three and nine months ended January 27, 2008. Promotional allowances at our Lake Charles, Biloxi, Natchez and Davenport properties decreased $6.6 million primarily as a result of weather related property closures during the nine months ended January 25, 2009, as compared to the prior year periods. Promotional allowances also decreased $1.5 million and $4.6 million for the three and nine months ended January 25, 2009, respectively, at our Colorado properties, in part corresponding to reductions in revenues attributable to the new smoking ban in the state. These amounts were partially offset by increases in promotional spending at our Pompano Park property of $1.3 million and $4.9 million for the three and nine months ended January 25, 2009, respectively, due to increased marketing efforts intended to combat the increased competition.
Read the The complete ReportISLE is in the portfolios of Chuck Akre of Akre Capital Management, LLC.
Isle of Capri Casinos is a developer owner and operator of branded gaming and related lodging and entertainment facilities in growing markets in the United States. The company wholly or partially owns and operates gaming facilities under the name ``Isle of Capri``. In addition the company wholly owns and operates a pari-mutuel harness racing facility and owns interests in and operates gaming activities aboard a cruise ship based. Isle of Capri Casinos Inc. has a market cap of $105.01 million; its shares were traded at around $3.2 with and P/S ratio of 0.09. Isle of Capri Casinos Inc. had an annual average earning growth of 3.3% over the past 10 years.
Highlight of Business Operations:
See Operating Results Revenues for specific impacts of these conditions on our results of operations. Beyond the impact on our operating results, these factors have led to a significant decrease in equity market value in general and on our market capitalization specifically. Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, indicates that a sustained decline in our market capitalization may be considered an indicator of impairment. Our market capitalization as of January 25, 2009 was approximately $89 million which was less than our stockholders equity of $211 million. After completing a preliminary analysis of all potential interim impairment indicators, including forecasted operating performance and market transaction multiples of reporting units with goodwill, we do not believe as of January 25, 2009, an indicator of impairment exists that would more likely than not reduce the fair value of reporting units below their carrying value. A continued or further decline of our market capitalization, operating performance or other evidence of impairment could require us to record an impairment charge during our annual impairment test in the fourth quarter or to record an impairment charge in subsequent interim periods. As of January 25, 2009, the balances of our goodwill and indefinite-lived intangible assets were $324.3 million and $84.5 million, respectively.Write-offs and Other Charges During the first quarter of fiscal 2009, we recorded charges of $6.0 million, consisting of a $5.0 million non-cash charge representing our cancellation of rights to acquire land and a $1.0
Casino Revenues - Casino revenues decreased $17.3 million, or 6.4%, and $36.2 million, or 4.4%, respectively, for the three and nine months ended January 25, 2009, compared to the three and nine months ended January 27, 2008. Decreases in casino revenues reflect the impact of general economic conditions, the smoking ban put into effect on January 1, 2008 at our Colorado properties, expanded tribal gaming impacting our Pompano operations, the opening of new land based casino in December 2008 by a competitor in the Quad Cities which replaced an existing riverboat operation, as well as, year-to-date decreases in casino revenues at our Lake Charles, Biloxi, Natchez and Davenport properties due to closures resulting from weather conditions and flooding. Casino revenues decreased by $6.3 million and $22.5 million for the three and nine months period ended January 25, 2009, respectively, at our Colorado properties. Casino revenues decreased $4.2 million and $2.5 million for the three and nine months ended January 25, 2009, respectively, at our Pompano property. Casino revenues at our Davenport property decreased $.5 million and $3.5 million for the three and nine months ended January 25, 2009, respectively. Casino revenues at our Bettendorf property decreased by $1.6 million for the three months ended January 25, 2009. Casino revenues decreased $12.8 million at our Lake Charles, Biloxi and Natchez properties for the nine months ended January 25, 2009. These decreases together with other decreases resulting from general economic conditions were partially offset by increases in casino revenues of $19.8 million for the nine months ended January 25, 2009, due to our new properties in Caruthersville, Waterloo and Coventry being opened for the entire period in fiscal 2009.
Rooms Revenue - Rooms revenue decreased $1.5 million, or 13.7%, and $1.9 million, or 5.1% for the three and nine months ended January 25, 2009, compared to the three and nine months ended January 27, 2008. Rooms revenue decreased in total at our Biloxi, Natchez and Black Hawk properties by $1.1 million and $3.2 million for the three and nine month periods, respectively, which we attribute to declining economic conditions, increased competition and at Black Hawk the impact of the smoking ban in Colorado. These declines in room revenues
Food, Beverage, Pari-mutuel and Other Revenues - Food, beverage, pari-mutuel and other revenues decreased $4.7 million, or 12.3%, and $9.7 million or 8.5% for the three and nine months ended January 25, 2009, respectively, compared to the three and nine months ended January 27, 2008. These decreases included reductions in food, beverage and other revenues of $3.5 million and $7.5 million for the three and nine months ended January 25, 2009, respectively, primarily due to the impact of economic conditions on our properties. Weather related closures at our Lake Charles, Biloxi, Natchez and Davenport properties also contributed to the decrease for the nine months ended January 25, 2009. Additionally, pari-mutuel commissions earned at Pompano Park for the three and nine months ended January 25, 2009 decreased $1.2 million, and $2.2 million, in the three and nine month periods ended January 25, 2009, respectively, due to decreased handle and commissions from live and simulcast races.
Promotional Allowances - Promotional allowances decreased $2.0 million, or 4.1%, and $5.3 million, or 3.6%, for the three and nine months ended January 25, 2009, respectively, compared to the three and nine months ended January 27, 2008. Promotional allowances at our Lake Charles, Biloxi, Natchez and Davenport properties decreased $6.6 million primarily as a result of weather related property closures during the nine months ended January 25, 2009, as compared to the prior year periods. Promotional allowances also decreased $1.5 million and $4.6 million for the three and nine months ended January 25, 2009, respectively, at our Colorado properties, in part corresponding to reductions in revenues attributable to the new smoking ban in the state. These amounts were partially offset by increases in promotional spending at our Pompano Park property of $1.3 million and $4.9 million for the three and nine months ended January 25, 2009, respectively, due to increased marketing efforts intended to combat the increased competition.
Read the The complete ReportISLE is in the portfolios of Chuck Akre of Akre Capital Management, LLC.
