[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Supplier News

US – Isle of Capri down slightly following two casino sales

By - 1 December 2016

Having offloaded casinos in Lake Charles and Marquette, Isle of Capri casinos saw its revenues for the current quarter fall slightly to $198.6m, compared to $200.5m in the prior year quarter.

Operating income decreased to $21.3m from $23.7m in the prior year quarter, as the current quarter contained $3.4m of transaction costs related to the previously announced transaction with Eldorado Resorts.

Eric Hausler, CEO, said:”During the quarter, we executed on a variety of other strategic initiatives which we believe significantly enhanced shareholder value. Most notably, on September 19 we announced that we have signed a definitive agreement to sell all of the outstanding shares of stock of the company to Eldorado Resorts for approximately $950m in cash and stock. We believe this transaction, which will create a regional gaming company with significant scale, geographic diversity and free cash flow, provides our shareholders with both immediate value and the benefit from the potential upside expected from the significant operating synergies between these two companies. We are working closely with the Eldorado team to plan a smooth transition, and expect the transaction to close in the second quarter of calendar 2017.

The company sold its casino in Marquette to an affiliate of Casino Queen for approximately $40m. In combination with the previously announced $134.5m sale of Lake Charles to Laguna Development Corporation, the replacement of the riverboat in Bettendorf, and other completed transactions, over 95 per cent of Isle of Capri’s pro forma Adjusted EBITDA is now generated by land-based or barge-based casino operations compared to five years ago when over 30 per cent of our EBITDA came from first-generation riverboats.

Mr. Hausler added: “The second quarter was the first full operating quarter for our new land-based casino and entertainment facility in Bettendorf. We led the Quad Cities market in total gaming revenues in each of the months since the property opened. While still early, we are pleased with the initial returns on our investment. Customer reception to the land-based facility has been very positive.

“During the quarter, we continued to reinvigorate our properties through prudent capital investments. We expect to complete the previously announced buffet renovations at Kansas City and Black Hawk in early December. We also completed the addition of new hotel furniture at Black Hawk, exterior painting and signage at Boonville and several other projects.

“At the same time, we improved our balance sheet during the second quarter. Our debt balance is now below $900m, as we reduced debt by $34.5m during the second quarter.

Share via
Copy link