St. Louis-based Isle of Capri Casinos Inc. recently announced several management changes. Chief Executive Officer Virginia McDowell said, “Through our ongoing profit improvement program, we continue to streamline our operations and look for more efficient ways to operate our business. In addition to eliminating the executive chairman and chief strategic officer positions, we have also today eliminated several other senior positions in our corporate office. As a result of these actions, we expect to reduce annual corporate expense by approximately .5 million going forward, exclusive of severance costs.”
The position of executive chairman of the board of directors has been eliminated. Jim Perry, who held the position, will continue to serve on the board. Vice Chairman of the Board of Directors, Robert Goldstein, has been named (non-executive) chairman of the board.
In addition, the position of chief strategic officer has been eliminated. Eric Hausler, who held the position since 2011, has been named chief financial officer, succeeding Dale Black who held that position since 2007. Black has left Isle of Capri Casinos to pursue other interests. Hausler joined Isle of Capri in 2009 as senior vice president, Strategic Initiatives. He brings 15 years of financial and gaming industry experience to his new role, overseeing the company’s financial and accounting activities, as well as strategy and development activities. Previously he served as senior vice president of development for Trump Entertainment Resorts and also was a gaming analyst with Bear Stearns and Susquehanna.
The appointments, which are subject to regulatory approvals, may put an end to speculation regarding the sale of the company to Gaming and Leisure Properties Inc., Penn National Gaming’s real estate investment trust. With 15 casinos and racetracks in seven states, Reuters placed an enterprise value of $1.29 billion on Isle of Capri.
Kim Noland, director of high yield research at the independent research service Gimme Credit, said the management changes “make an imminent sale look less likely.” At Macquarie Securities, gaming analyst Chad Beynon said, “While the promotion of Eric Hausler will come as a surprise to investors, he is well known amongst the Wall Street community given his sell-side experience.” Beynon said bids for Isle of Capri may have been lower than anticipated by the Goldstein family, which owns 40 percent of the company’s outstanding shares.
