ISLE OF CAPRI CASINOS, INC.

Rollin' on the river takes on new meaning when you're talking about Isle of Capri Casinos. The company owns and operates about 15 dockside, riverboat, and land-based casinos in Colorado, Iowa, Louisiana, Mississippi, and Missouri. In addition, the company has a pari-mutuel harness racetrack and casino in Pompano Beach, Florida. Most of the company's casinos have hotels and feature restaurants, live entertainment, and private lounges for high-rollers. Altogether, Isle of Capri's properties feature approximately 14,000 slot machines and 350 table games (including some 90 poker tables), as well as more than 3,000 hotel rooms and 45 restaurants.

Operations

All of the company's properties operate under one of two distinct brands: The Isle and The Lady Luck. The Isle brand is for properties in larger markets that have a regional draw, and offers amenities such as hotel rooms, expanded food and beverage offerings, and conference and convention facilities. The Lady Luck casinos are located in smaller markets with less growth potential and target a local customer base.

Strategy

The company is focused on maintaining a balanced portfolio of properties by continually evaluating the need to sell, acquire, or build casinos. In 2012 Isle of Capri sold its Grand Palais Riverboat, including the smaller of its two riverboats in Lake Charles, Louisiana to Bossier Casino Venture for $15 million. Concurrent with the sale, Isle of Capri consolidated operations onto the remaining larger riverboat. Also in late 2012 it sold its Isle Casino Hotel in Biloxi, Mississippi for approximately $45 million.

The previous year the company broke ground on construction of a new $135 million casino in Cape Girardeau, Missouri; it plans for the casino to be an Isle-branded property. The company also has a joint venture with the Nemacolin Woodlands Resort in Farmington, Pennsylvania to establish the Lady Luck Nemacolin Casino there. The project will cost approximately $50 million, to be funded by Isle of Capri, and is estimated to be complete in 2012.

Financial Analysis

The company's revenue increased by 4% in 2012 compared to 2011, primarily due to an increase in casino and room revenue from properties such in Pompano Beach, Lake Charles, and Black Hawk. The company's revenue also increased due to an increase in food, beverage, pari-mutuel, and other revenues at the Pompano Beach property.

Despite the increase in revenues, its net income took a hit, falling to a loss of nearly $130 million in 2012, down from a profit of $4.5 million in 2011. This was mostly due to an increase in casino operating expenses attributed to the cost of increased complimentary rooms and food and beverages provided to our casino customers; promotional allowances; marine and facilities expenses, and marketing and administrative expenses.

The company's cash flow increased by $12 million in 2012 over 2011. The increase was due to less cash used in acquisitions in 2012.

Ownership

The family of former CEO Bernard Goldstein, who died in 2009, owns more than 40% of Isle of Capri.

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ISLE OF CAPRI CASINOS, INC.


600 Emerson Rd Ste 300
Saint Louis, MO 63141-6762
Phone: 1 (314) 813-9200
www.isleofcapricasinos.com

STATS


  • Employer Type: Public
  • Stock Symbol: ISLE,
  • Stock Exchange: , NASDAQ
  • President and CEO: Virginia McDowell
  • Chairman: Richard Goldstein
  • President and CEO: Virginia McDowell

Major Office Locations

  • Saint Louis, MO

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