WATERLOO - The Isle of Capri Casinos Inc., experienced a drop of 23 cents in diluted earnings per share for the first fiscal quarter of 2008. However, net revenue increased when compared to the first quarter of the 2007 fiscal year by 1.7 percent.

The primary reason for the dip in earnings was a $6.1 million pre-opening expense for new casinos in Waterloo and Coventry, England, as well as $2.2 million from early extinguishment of debt. Last year, Isle of Capri diluted earnings per share were up 30 cents for the first quarter, a 53 cent per share swing compared to this year's loss.

"First quarter results were generally in line with our expectations, as we continue to take deliberate, measured steps toward improving our operating results, and begin the process of building a more competitive business model," said Bernard Goldstein, chairman of the board and chief executive officer, in a press statement Friday. "Our management team, under the direction of new President and Chief Operating Officer Virginia McDowell, is focused on providing the best gaming entertainment experience for our guests and making the changes necessary to improve value for all of our stakeholders."

The first quarter of the 2008 fiscal year ended July 28, meaning the Waterloo casino contributed less than a month of operation to the company's bottom line. But the Waterloo Isle of Capri still raked in $8.1 million in net revenues and $2.8 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA. Waterloo's adjusted EBIDTA margin, which Isle of Capri uses to measure health across its properties, was 35 percent, second-best among Isle-owned casinos behind only the Black Hawk casino in Colorado, which had an EBIDTA margin of 35.8 percent.

The four Isle of Capri casinos in the state of Iowa contributed 19.6 percent of net revenues. According to Friday's release, that number was up from last year, primarily due to the opening of the Waterloo casino.

"We are beginning to see margin improvements at most of our properties as a result of cost controls introduced during the first quarter, and we continue to focus on building our database at the Pompano, Waterloo and Coventry properties," President and COO Virginia McDowell said in the release.

Contact Drew Andersen at (319) 291-1418 or drew.andersen@wcfcourier.com.