Isle of Capri turns unexpected profit

ST. LOUIS — Isle of Capri Casinos Inc. said yesterday that its fourth-quarter net income fell 66 percent, but the surprise profit was still far better than the loss expected by investors.

Its shares climbed as much as 17 percent in trading yesterday morning before dropping off slightly.

The casino owner earned net income of $4.9 million, or 15 cents per share, for the three-months that ended April 25. That compares to net income of $14.6 million, or 46 cents per share, for the same period last year, when Isle of Capri posted a gain of $57.7 million on the extinguishment of debt.

Net revenue, which excludes promotional allowances from total revenue, fell more than 5 percent to $268.8 million, down from $284.6 million.

Still, the results topped estimates.

Analysts surveyed by Thomson Reuters expected Isle of Capri to post a loss of 8 cents per share with revenue $260.3 million.

For the full year, the company that owns and runs casinos in Mississippi, Louisiana, Iowa, Missouri, Colorado and Florida, posted a loss of $3.3 million, or 10 cents per share. That compares to prior-year net income of $43.6 million, or $1.39 per share.

Net revenue fell nearly 10 percent to $999.8 million, down from $1.11 billion in the 2009 fiscal year.

The St. Louis company that has 14 casinos also said it managed to cut operating expenses at the property level by $12 million during the fiscal year.