Isle Of Capri Casinos, Inc. (ISLE) swung to a net profit for the quarter ended Jul. 26, 2015. The company has made a net profit of $3.14 million, or $ 0.08 a share in the quarter, against a net loss of $2.32 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $11.43 million, or $0.28 a share compared with $1.55 million or $0.04 a share, a year ago. Revenue during the quarter grew 4.23 percent to $246.92 million from $236.90 million in the previous year period. Gross margin for the quarter expanded 100 basis points over the previous year period to 46.06 percent. Total expenses were 87.99 percent of quarterly revenues, down from 91.35 percent for the same period last year. This has led to an improvement of 335 basis points in operating margin to 12.01 percent.
Operating income for the quarter was $29.65 million, compared with $20.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $51.06 million compared with $44.06 million in the prior year period. At the same time, adjusted EBITDA margin improved 208 basis points in the quarter to 20.68 percent from 18.60 percent in the last year period.
Virginia McDowell, president and chief executive officer, commented: "We continue to benefit from our enhanced operating model and better overall regional market trends. We improved margins over 200 bps during the quarter as we drove higher efficiency from our marketing programs and effectively managed our cost structure.We are making prudent investments in both gaming and non-gaming amenities at our properties. At the same time, we improved our balance sheet reducing our debt and interest expense during the quarter."
Working capital turns negative
Working capital of Isle Of Capri Casinos, Inc. has turned negative to $8.37 million on Jul. 26, 2015 from positive $6.21 million on Jul. 27, 2014. Current ratio was at 0.94 as on Jul. 26, 2015, down from 1.05 on Jul. 27, 2014. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 16 days for the quarter from 14 for the same period last year.
Debt comes down
Isle Of Capri Casinos, Inc. has recorded a decline in total debt over the last one year. It stood at $989.28 million as on Jul. 26, 2015, down 6.37 percent or $67.32 million from $1,056.61 million on Jul. 27, 2014. Total debt was 80.87 percent of total assets as on Jul. 26, 2015, compared with 82.18 percent on Jul. 27, 2014. Debt to equity ratio was at 34.54 as on Jul. 26, 2015, down from 58.86 as on Jul. 27, 2014. Interest coverage ratio improved to 1.70 for the quarter from 0.96 for the same period last year.
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