Isle of Capri Casinos Inc today announced financial results for fourth quarter and fiscal year ended 27 April, 2008. In making the announcement, James B. Perry, the Company's executive vice chairman and chief executive officer, said that Fiscal 2008 was a transformational period for Isle of Capri. “Following a series of expansions into several new markets, we are now executing a transition to a company clearly focused on strengthening our operating results. Additionally, the Company completed a thorough planning process that resulted in the strategic plan announced earlier this year.”

The company pointed to a series of accomplishments during the 2008 fiscal year that have had an impact on operations, and are critical to the implementation of the company's new strategic plan, which includes a two brand image. Isle of Capri Casinos made several changes to the corporate management team, including the appointment of James B. Perry as executive vice chairman of the board of directors and chief executive officer following the retirement of founder Bernard Goldstein, who will remain chairman of the board, and the appointment of Virginia McDowell as president and chief operating officer.

The company's loss from continuing operations of US$51.3 million or US$1.66 per share during the quarter ended April 27, 2008 includes a US$78.7 million pretax impairment charge or US$1.60 per share net of income taxes relating to its UK operations. This non-cash impairment charge is a result of a review of fair values of assets invested in Isle of Capri Casino’s UK operations. During the quarter ended April 27, 2008, net revenues increased by US$45.0 million, or 17.7%, as compared to the fourth quarter of fiscal 2007.

The implementation of a dual strategy will continue to reduce cost structure in the short term while exploring strategic options for the UK portfolio. This includes focusing on marketing programs that are designed to drive volume, including direct marketing programs and building player development initiatives. The company continues to explore ways to reduce both fixed and variable costs, including successfully cutting utility bills nearly in half, and restructuring food and beverage departments and comp policies.

Virginia McDowell, the company's president and chief operating officer, remarked, “We have implemented several key strategies for building a stronger operating company and improving free cash flow over the past year. As we introduce operating strategies designed to meet and exceed customer expectations by providing an experience that is consistently clean, safe, friendly and fun, we are complementing these strategies with key operating initiatives that focus on marketing and technology improvements that we believe will improve the gaming experience for our customers.”

On future outlook and upcoming projects James Perry said, “We expect that approximately $160 million will go towards the rebuilding and refurbishment of the Biloxi property, which we plan to begin as soon as we determine the timing of the settlement of our Hurricane Katrina insurance claims, and our goal is to have the project completed roughly in line with the Margaritaville project which is being developed adjacent to our property. We are striving to have the insurance claim settled within the next 90 days and expect the insurance proceeds will provide a significant portion of the construction cost of the Biloxi project.”

He also commented, “We have earmarked approximately US$16 million to US$18 million to convert several of our local facilities to the Lady Luck brand. The Company plans to re-brand its properties in Davenport, Iowa, Lula, Mississippi, and Marquette, Iowa, and complete the re-branding in Caruthersville. Lastly, we have identified approximately 1,200 hotel rooms (approximately 40% of our room inventory) and many of the public areas in our hotels which are in need of renovation. We expect to begin the renovations once we have more clarity on the macro economic picture, our operating success and credit flexibility and better understand the estimated costs of completing the renovations.” (E-07.02.08)

© Copyright 2008 CasinoCompendium



>>> return to archives
>>> return to frontpage