In preparation for the ASCA Q3 earnings release tomorrow, we’ve put together the pertinent forward looking commentary from ASCA’s Q2 earnings release/call.
YOUTUBE FROM Q2
- [St. Charles] “Our market share there seems to have stabilized.”
- [East Chicago] “We’ll see a $20-25 MM annualized negative impact from the bridge closure… A portion of those [road] improvements should be done later this year and the balance through the middle part of 2012.”
- [Fixed charge coverage ratio] “We’ll see that improve starting in the third quarter now that the swaps have expired and we have substantially lower interest rates going forward.”
- “Subsequent to the end of 2Q, we’ve retired an additional $16 million of debt. So through seven months, we’ve retired $80 million of debt. That’s created availability in our extending revolver of approximately $20 million over and above what’s required in the non-extending revolver that we have to retire in mid-November of this year. We obviously intend to continue to use free cash flow to retire debt through the balance of the year. For the rest of the quarter, we think we’ll probably end up at about 25 million in total in 3Q for debt reduction, which would be another 11 million from where we are today. And we anticipate having availability in the revolver in December of 45 to 50 million [after 1/2 of CIP] based on our current rate of debt reduction.”
- “Our Q3 2010 estimate for non-cash stock based compensation expense: should be in the range of $3.4 to 3.9 million. And the blended federal-state tax rate should get back up to about 42.5%.”
- “Capital spending for Q3 is expected to be between 15 and $20 million in the third quarter…. [For Q4], if we’re going to meet what we told you guys at the beginning of the year, we would have to spend a little more in the 4Q than we have so far on average this year…. Net interest expense in Q3 is expected to be near $28 million. Non-cash interest expense is expected to be between 2.5 and 3 million for Q3. Based on current LIBOR rates, we should see a reduction in the quarterly interest expense for approximately $13 million due to the expiration of the swaps in mid-July.”
- “We currently expect to make a quarterly dividend of $0.105 per share in Q3.”
- Pullback in Kansas City promotional spending going forward? “Yes.”
- [Black Hawk market] “3Q should be the best quarter in that market.”
