Isle of Capri Casinos, Inc. posted higher earnings for its third quarter ended January 24 despite a 2.5 percent drop in overall revenues.
The gambling firm, owner of the Bettendorf Isle of Capri casino riverboat, reported third quarter earnings of $6.6 million, or 16 cents per share, compared with $5.4 million, or 13 cents per share, for the same period a year ago.
Shares of the Missouri-based firm fell nearly $1 per share after the earnings were released as analysts had been expecting higher returns and revenue for the quarter. The stock closed at $11.65 Tuesday (2/23), off nearly 8 percent for the day and down more than 45 percent from its 52-week high of $21.43 per share.
The company is in the midst of a $60-million upgrade to its Bettendorf casino, building a new land-based gambling facility and renovating its two riverfront hotels.
"We have spent $8.4 million to date this fiscal year on the previously announced up to $60 million land-based project at Bettendorf," the company said in its news release. "For the project-to-date, we have expended $10.6 million. The project remains on time and on budget."
Net revenues totaled $230.5 million for the quarter, compared with $236.4 million a year ago.
Helping offset the lower revenues was lower interest expenses for the quarter, $16.8 million versus $20.9 million for the third quarter of 2015. The company had $952 million in total debt as of January 24.
Despite the construction work surrounding the Bettendorf Isle hotels and nearby riverboat, the company reported revenue at the facility increased by $100,000 in the third quarter compared to the previous year.
CLICK HERE to download the company's quarterly financial report.
