US – Strong results in Iowa drive Isle of Capri’s resultsBy Phil - 27 February 2017
Having sold its casinos in Lake Charles and Marquette, locals operator Isle of Capri saw its revenues for the third quarter fall to $193.8m, from $196.5m in the prior year quarter, down 1.4 per cent.
Consolidated Adjusted EBITDA was $43.5m for the quarter compared to $41.2 million in the prior year quarter, up 5.5 per cent.
It sold its casino in Lake Charles to an affiliate of Laguna Development Corporation for $134.5 m and its property in Marquette to an affiliate of Casino Queen for 40m.
Eric Hausler, CEO, said: “We expect the Marquette transaction to close in the first calendar quarter of 2017 and the Lake Charles transaction to close in the second calendar quarter of 2017. We remain focused on driving increased profitability from our existing operations and effectively managing our corporate costs. Higher year-over-year Property Adjusted EBITDA was led by strong results from our Iowa properties, where Adjusted EBITDA increased 6.2 per cent, as well as a 13 per cent increase in Adjusted EBITDA at Black Hawk. Our Isle property in Black Hawk benefited from the opening of its new buffet and both Black Hawk properties benefited from the marketing optimization programs we implemented earlier this fiscal year. Our properties in Cape Girardeau, Caruthersville and Vicksburg also set third quarter Adjusted EBITDA records.
“The third quarter was the second full operating quarter for our new land-based casino and entertainment facility in Bettendorf where Adjusted EBITDA increased 9.4 per cent compared to the prior year quarter. We continue to lead the Quad Cities market in total gaming revenues, which we have done in every month since the land-based facility opened. We are pleased with the initial returns on our investment and expect the property to continue to ramp up as we optimise our expense structure.
“We continued to invest in our properties and improve our balance sheet during the third quarter. We completed the previously announced buffet renovations at Kansas City and Isle Black Hawk. At the same time, we reduced our revolver balance by approximately $7m in the quarter.”