Isle points to Isaac, low river for quarterly loss
by MBJ Staff
Published: November 30,2012
Tags: casino, construction, convention, drought, dry, entertainment, gamble, gambler, gambling, gaming, hospitality, hotel, hurricane, income, lodging, loss, low water, meeting, nightlife, publicly traded company, rain, restaurant, revenue, river, storm, tourism, tourist, tropical, visitor, Weather
ST. LOUIS, Mo. — Isle of Capri Casinos Inc. recorded a loss of $4.3 million during the quarter ended Oct. 28, compared to a loss of $1 million the same quarter last year.
Net revenues for the quarter were $223.2 million, compared to $231.4 million the same quarter last year.
Consolidated adjusted EBITDA decreased $3.2 million, or 7.6 percent, to 38.7 million.
The St. Louis, Mo.-based company pointed to its Mississippi properties for the loss, blaming Hurricane Isaac, the critically low Mississippi River and construction disruption.
In a release, Isle of Capri wrote: “Our Mississippi properties faced significant challenges during the quarter, which contributed to over 150 percent of our property adjusted EBITDA loss year over year.
“In Vicksburg, our results were impacted by construction disruption associated with the on-going rebranding of the property to a Lady Luck Casino, as we experienced an average of 200 to 400 slot machines out of service per day. The results were also impacted by an overall market decline of 6 percent during the quarter.
“In Natchez, our results were impacted by significant weather disruption and damage, where our boat was closed for four days due to a storm that caused meaningful decreased patron count for approximately one month. In addition, the adverse weather conditions damaged each of the three entrances to the facility as well as some infrastructure components. The facility continues to face extraordinarily low river levels, causing our boat to nearly sit on the bottom of the river, which has severely impacted the entrance and overall customer experience. We are committed to mitigating the damage done to our facility, but we expect business to suffer until water levels return to a reasonable level in this section of the Mississippi River. Additionally, pending regulatory approval, a new competitor facility is expected to open in the market before the end of the year.
“In Lula, the market changes that occurred following the flooding in last fiscal year have not improved. The market continues to decline, as customers continue to patronize the facilities in the Memphis and Little Rock areas that benefitted from the prior year’s flooding. We are pursuing financial improvements through cost savings and operational consolidations.”
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