Income tax benefit from sale of Davenport casino bouys Isle of Capri Casino 3rd quarter earnings

Thanks to a $12-million tax benefit from the recent sale of its Davenport Rhythm City Casino, the Isle of Capri Casinos, Inc. today (2/27) reported net income of $10.66 million for the third quarter ended January 26, compared with a $2.2 million loss for the same period a year ago.

The one-time tax benefit resulted in earnings of 24 cents per share for the quarter, compared with a 6 cent per share loss a year ago.

"Income from continuing operations for the quarter ended January 26, 2014 was impacted by the reversal of a $2 million litigation accrual due to a recent favorable court ruling, and the $12 million reversal of a previously recorded tax valuation allowance, as a result of the recent sale of our Davenport property," Isle President and CEO Virginia McDowell said in the company news release.

"A few weeks ago we completed the sale of our property in Davenport and received approximately $50 million in net proceeds," McDowell said. "We have initially used the proceeds to reduce borrowings under our senior credit facility."

The casino firm's Iowa results were hurt by the extremely cold weather, McDowell said. Net revenues at the company's Iowa properties in Bettendorf, Waterloo and Marquette were down more than $41 million for the three-month period, a 7.4 percent decline compared with the third quarter of 2013.

At the Bettendorf Isle of Capri Casino, net revenue was down 11 percent from the same period a year ago.

CLICK HERE to download the company's quarterly financial report.