Aug. 28--Isle of Capri Casino & Hotel in Tunica County has yet to turn its first dime of profit although it has been open two years. 

But, executives believe they can get the smallest of the 10 Robinsonville, Miss., properties to the break-even point in terms of cash operations within the next year. 

Analysts who follow the company believe that is possible. 

"We're not going to close it -- there's certainly no discussion of that going on," said Jack Galloway, chief executive officer of Isle of Capri Casinos Inc., based in Biloxi, Miss. Nor are there plans to sell the Tunica property, he said. 

Isle bought the former Harrah's property in Tunica, converted it to its Caribbean theme and opened it in July 1999. A 220-room hotel and twin theaters were added late last year. 

In all, the company invested about $40 million in improvements. Through July 30, Isle lost about $12.4 million in Tunica, based on earnings before interest, taxes, depreciation and amortization (EBITDA) calculations listed in its financial reports. In the quarter ended July 29, EBITDA losses were $985,000, slightly better than the $1,003,000 in losses recorded in the same quarter last year. 

EBITDA is considered a good measure of casino operating profits -- or, in this case, losses. 

Isle, at first, announced an agreement with Las Vegas entertainer Wayne Newton to help fill the theaters, but that fell through. The company went ahead with its plan to bring in Branson, Mo.-style entertainment with shows six days a week. 

"Although we got a few people in there, it just didn't work," Galloway said. Isle dropped the program during the spring and use of the theaters is down to about one or two shows a month, he said. 

"Now, we have a mid-sized casino with good food, good service and what we believe are the best hotel rooms in town," he said. "We're going to sell to people who like to gamble and build the property up that way." 

The property has 881 slot machines, 15 table games and 576 employees, said Bob Griffin, general manager. 

Over time, Isle executives believe they can build the property up to an acceptable profit level, Galloway said. Within the next year, the goal is to break even on operations he said. 

Eric Hausler, analyst for Bear, Stearns & Co. in New York doesn't see Isle reaching that point until its 2003 fiscal year, which begins in May 2002. 

"Tunica is going to be a rough market in the next couple of quarters," Hausler said. Pressure on revenues from the slow economy coupled with expensive marketing wars are sapping profits, he said. 

But, the market should stabilize eventually, Hausler said. 

"I don't see this (Tunica) being a home run for them," he said. But, Isle is a good operator even in difficult markets like Shreveport, La., and should eventually reach acceptable returns in Tunica, Hausler said. 

Isle stock stood at $8.43 a share Monday. It had closed as high as $17.25 on June 15, 2000. 

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(c) 2001, The Commercial Appeal, Memphis, Tenn. Distributed by Knight Ridder/Tribune Business News. ISLE,