Isle of Capri missed consensus estimates for net revenues and earnings per share during the third quarter of fiscal year 2017, the St. Louis-based regional gaming company reported Thursday morning.
The company posted net revenues of $193.8 million for the quarter, $9.4 million below expectations and down $2.7 million from the prior year quarter. Earnings per share checked in at $0.17 – up $0.04 year-over-year but falling short of the consensus by $0.02.
Isle properties saw year-over-year revenue declines in Colorado, Florida, Mississippi, Missouri and Pennsylvania. Iowa was the company’s only market that saw growth (0.7 percent), due to a new land-based facility in Bettendorf and a strong EBITDA showing in Waterloo.
The rocky results come on the heels of a rough second quarter performance, reported in early December, in which Isle also missed revenue and EBITDA targets.
The company is in process of being acquired by Eldorado Resorts. The $1.7 billion deal was announced last September, approved by shareholders at both companies in late January and is expected to close later this spring.
Eric Hausler, Isle’s chief executive, highlighted that adjusted EBITDA and EBITDA margin rose by 5.5 percent and 147 basis points, respectively, from the prior year.
“Higher year-over-year Property Adjusted EBITDA was led by strong results from our Iowa properties, where Adjusted EBITDA increased 6.2%, as well as a 13.0% increase in Adjusted EBITDA at Black Hawk,” he said.
“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,” he continued.
Hausler also noted that a new land-based facility in Bettendorf, Iowa has been a success. After operating a riverboat casino in the jurisdiction for 25 years, the facility was moved on land and opened to the public last summer.
“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% compared to the prior year quarter,” Hausler said. “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 optimize our expense structure.”
