Isle of Capri Casinos, Inc. posts higher earnings despite 2.5 percent drop in overall revenues

Isle of Capri Casinos, Inc. posted higher earnings for its third quarter ended January 24 despite a 2.5 percent drop in overall revenues.

The gambling firm, owner of the Bettendorf Isle of Capri casino riverboat, reported third quarter earnings of $6.6 million, or 16 cents per share, compared with $5.4 million, or 13 cents per share, for the same period a year ago.

Shares of the Missouri-based firm fell nearly $1 per share after the earnings were released as analysts had been expecting higher returns and revenue for the quarter. The stock closed at $11.65 Tuesday (2/23), off nearly 8 percent for the day and down more than 45 percent from its 52-week high of $21.43 per share.

The company is in the midst of a $60-million upgrade to its Bettendorf casino, building a new land-based gambling facility and renovating its two riverfront hotels.

"We have spent $8.4 million to date this fiscal year on the previously announced up to $60 million land-based project at Bettendorf," the company said in its news release. "For the project-to-date, we have expended $10.6 million. The project remains on time and on budget."

Net revenues totaled $230.5 million for the quarter, compared with $236.4 million a year ago.

Helping offset the lower revenues was lower interest expenses for the quarter, $16.8 million versus $20.9 million for the third quarter of 2015. The company had $952 million in total debt as of January 24.

Despite the construction work surrounding the Bettendorf Isle hotels and nearby riverboat, the company reported revenue at the facility increased by $100,000 in the third quarter compared to the previous year.

CLICK HERE to download the company's quarterly financial report.

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