Isle of Capri boasts strong third quarter revenue, profits

JACKSON, Miss. - Biloxi-based Isle of Capri Casinos Inc. reported strong third-quarter earnings growth today, capitalizing on the performance of its gaming properties in Louisiana and Colorado.

Isle had net earnings of $4.8 million for the quarter, or 19 cents per share, for the quarter ended Jan. 23. That compared with earnings of more than $1 million, or 4 cents per share, in the same period of 1999.

The increase was due in part to strong casino revenue gains at its casino properties in Bossier City and Lake Charles, La., and its Blackhawk, Colo., casino.

But in Biloxi, Isle's competition with Beau Rivage and Grand Casino forced a decline in its quarterly revenue to $19.9 million, down from the $21.8 million it posted the same time last year. Its Vicksburg casino posted a gain in revenue of 12 percent to $15.3 million.

Analysts had expected earnings of 16 cents per share in the third quarter, according to First Call/Thompson Financial.

Isle of Capri was boosted by total revenue of more than $153.7 million, a 13 percent increase from the $115.1 million it posted the same time in 1999.

"The upside and pleasant surprise for us appeared to be what the company was able to generate in Blackhawk, Colo.," said Daniel Davila, senior leisure and entertainment analyst for New Orleans-based Southeast Capital LLC. "That was a very bright spot for them as well as their two locations in Louisiana."

Isle's Lake Charles location had total revenue of $44.8 million for the quarter, surpassing its other properties, while Bossier City, La., had $36.9 million in total revenue.

Davila said Isle has positioned itself to become a regionally dominant gaming property with its announced acquisitions of Lady Luck Gaming Corp. and the Flamingo Hilton Hotel in Kansas City, Mo.

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