The Isle of Capri Casinos, Inc. announced Tuesday (12/3) it posted a 20 cents per share profit in the second quarter ended October 27, and in remarks to financial analysts company executives talked about moving its riverboat casino operation in Bettendorf into a land-based facility.
According to an article Wednesday in the Quad City Times, President Virginia McDowell told analysts in a conference call that the company was finalizing selection of an architectural firm for a land-based casino in Bettendorf.
The Isle is in the process of selling its Rhythm City Casino in Davenport to Dan Kehl, president of Scott County Casino LLC, which plans to build a $110-million casino/hotel and entertainment facility along I-80 in Davenport. The Isle has agreed in principal to sell the Rhythm City to Kehl for $51 million.
Observers have been speculating what the Isle would do to remain competitive in the Quad Cities gambling market after divesting of the Rhythm City. The Bettendorf casino riverboat, anchored along the Mississippi River, is connected with skyways to Isle-owned hotels and the city financed QC Waterfront Convention Center, which the Isle operates.
The Isle of Capri Casinos, headquartered in suburban St. Louis, operates four casinos in Iowa, four in Missouri, three in Mississippi, and one each in Colorado, Florida, Pennsylvania and Louisana. In addition to Bettendorf and Davenport, the Isle has casinos in Marquette and Waterloo, Iowa.
McDowell said the second quarter results were possible because of "a top-to-bottom review" of the company's business practices.
"We have begun a wide-ranging initiative across our entire company to delete duplication, streamline decision-making and aggressively pursue additional cost savings. These initiatives have contributed approximately $2.5 million to our results so far this year and when fully implemented we expect the annualized run rate will be at least $10 million," McDowell said.
For the three-months ended October 27, the company posted net income of $8 million, or 20 cents per share, compared with a loss of $6.65 million, or 17 cents per share for the second quarter of 2012. The company's return to profitability was helped significantly by a $7.35 million "litigation accrual reversal" from settlement of a long-running lawsuit in Greece. The company also was able to reduce its interest expenses by $7.4 million for the quarter from the same settlement.
The company's Iowa casinos saw revenues fall 2.5 percent compared to the same quarter a year ago. The Isle of Capri riverboat casino in Bettendorf had net revenue of $18.97 million for the second quarter, compared with $19.69 in 2012. The Bettendorf casino posted an operating income of $3.28 million for the second quarter, compared with operating income of $3.58 million a year ago.
CLICK HERE to download the company's second quarter financial report.
