Isle 2nd quarter earnings double last year's results; big tax benefit on asset sales offsets revenue decline

Thanks to a $17.8-million income tax benefit, Isle of Capri Casinos, Inc. Thursday (12/1) reported second quarter earnings of $23.7 million (57 cents per share), more than double the gambling firm's earnings for the same quarter last year.

The casino company – owner of the Bettendorf Isle of Capri Casino – made use of a "valuation allowance" resulting from the sale of its Lake Charles, Louisiana, and Marquette, Iowa gambling operations during the past six months.

Net revenues for the second quarter totaled $198.6 million, down about 1 percent from the $200.5 million reported for the second quarter of 2015. Without the tax benefit adjustment, net income for the quarter would have been half of the $11.5 million the company earned during the same period a year ago.

Net revenues at the Isle' new land-based Bettendorf casino totaled $21 million during the second quarter, up $1.5 million compared with the same period a year ago. It was one of the few bright spots for the company as only four of its 11 gambling properties showed gains in net revenues compared with last year.

The Isle of Capri in September agreed to be acquired by Eldorado Resorts, Inc. of Reno, Nevada in a stock and cash transaction valued at $1.7 billion. The deal is expected to be completed in the second quarter of next year.

In its quarterly financial report to the Security and Exchange Commission (SEC), the company reported it sold the old Bettendorf casino riverboat in October for $1 million, and has spent $51.6 million to date on the new land-based casino along the Bettendorf riverfront.

CLICK HERE to view the full Isle news release and second quarter financial statements.

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