Isle of Capri Casinos, Inc. (ISLE) has reported a 23.43 percent rise in profit for the quarter ended Jan. 22, 2017. The company has earned $8.16 million, or $0.20 a share in the quarter, compared with $6.62 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.79 million, or $0.17 a share compared with $5.45 million or $0.13 a share, a year ago. Revenue during the quarter went down marginally by 1.38 percent to $193.82 million from $196.52 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 47.38 percent. Total expenses were 87.50 percent of quarterly revenues, down from 88.24 percent for the same period last year. This has led to an improvement of 73 basis points in operating margin to 12.50 percent.
Operating income for the quarter was $24.22 million, compared with $23.12 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $43.47 million compared with $41.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 147 basis points in the quarter to 22.43 percent from 20.96 percent in the last year period.
Eric Hausler, the Company's chief executive officer, commented: "We remain focused on driving increased profitability from our existing operations and effectively managing our corporate costs. The combination of a 2.9% increase in Property Adjusted EBITDA and a 16.9% decrease in net corporate expense (excluding stock compensation expense) drove a 5.5% increase in Adjusted EBITDA during the third quarter compared to the prior year. Our fiscal third quarter Adjusted EBITDA margin of 22.4% represents a third quarter record for the Company."
Working capital turns positive
Working capital of Isle of Capri Casinos, Inc. has turned positive to $115.98 million on Jan. 22, 2017 from negative $16.29 million on Jan. 24, 2016. Current ratio was at 1.79 as on Jan. 22, 2017, up from 0.88 on Jan. 24, 2016. Cash conversion cycle (CCC) was almost stable at 14 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 3 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 24 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 $881.25 million as on Jan. 22, 2017, down 7.41 percent or $70.48 million from $951.72 million on Jan. 24, 2016. Total debt was 73.29 percent of total assets as on Jan. 22, 2017, compared with 78.71 percent on Jan. 24, 2016. Debt to equity ratio was at 7.46 as on Jan. 22, 2017, down from 19.31 as on Jan. 24, 2016. Interest coverage ratio improved to 1.45 for the quarter from 1.37 for the same period last year.
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