Isle of Capri Casinos Inc. (ISLE) said Tuesday that it returned to a profit in its fiscal second quarter, due in part to lower operating expenses and reimbursed development costs.
The casino operator reported a $1.6 million profit, or 5 cents per share, exceeding the 5 cents per share loss forecast by analysts surveyed by Thomson Reuters. The result compares with a loss of $13.5 million, or 43 cents per share, in the year-ago period.
However, revenue slipped 1% percent to $247.4 million on lower room revenue and increased promotions. Analysts had expected revenue of $250.2 million.
Chairman and CEO James B. Perry said, "In an environment plagued with low consumer confidence, our ongoing improvement initiatives are proving successful." He said that Isle of Capri had just completed the sale of a majority of its Blue Chip operating casino assets, exited from property in Grand Bahama, and expect to liquidate its remaining United Kingdom net assets before the end of the current fiscal year. He added, "Our business is smarter and stronger today, and we are actively engaged in identifying growth opportunities for the future."
After surging in morning trading Tuesday, shares closed 2.6% higher to $7.77.
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