In preparation for PNK's Q4 earnings release tomorrow, we’ve put together the pertinent forward looking commentary from PNK’s Q3 earnings call.
YOUTUBE
- "And so I would caution a little bit that as we enter these next few months of the fourth quarter, last year was a tough winter for us, Belterra in particular had a tough time and St. Louis to a lesser extent. I would caution that we not go crazy with 4Q estimates based on 3Q performance. Rather you can count on us to be very disciplined in our focus on revenue management and cost reductions to take advantage of the revenue opportunity that we do have in a very cold quarter.”
- “We are certainly not done looking for additional efficiencies at corporate end throughout the company. In the phase of a challenging current economic climate, our ability to increase revenue is somewhat limited, although we are finding pockets of growth i.e. New Orleans – the New Orleans market in the last quarter.”
- “And speaking of Baton Rouge, we do have about $340 million of cash construction cost remaining there. The vast majority of which will occur in the 2011 period.”
- [Baton Rouge investment] “We believe that the second 100 million has a very healthy return and that’s how we thought about it. We looked at what the base was that we are going to spend and what you could really get for that base and then by adding a parking garage and it’s just common sense that your first 100 rooms are your most expensive rooms because of the infrastructure you got put in place. And then adding the second 100 rooms, we believe our ability to reach a market of about a two hour drive time around Baton Rouge that it was going to be a return that and Joe I am not going to be specific on the number that we targeted but we believe was favorable to shareholders.”
- [Belterra] “I think absolutely what you are seeing is sustainable. And what you are not seeing is, we starting to put in place revenue drivers that will add to that property. But across the board I’ll tell you that we feel good about the way all of our team and all of our operators are making good decisions about the right use of resources.”
- [L’Auberge] “We’re in the early stages of our hotel yield management today.”
- [River City] “We have been exceeding people’s expectations when they visit that facility and we still believe we’re in the early stages of getting settled into River City.”
- [Seasonality] “The properties we have in Reno, obviously Belterra, and our St. Louis segment, we’ve got four properties in particular that are highly subject to difficult weather conditions. That said we also saw a virtually unprecedented monster storm come through the upper Midwest earlier this week that provides some evidence as to potential impact at one or more of those properties in the fourth and first quarters.”
- [Reduction of marketing expenses] “We would say we are in the second maybe or top of the third inning.”
- “I mean we have Atlantic City that is an asset for sale right now and hopefully, we are not going to have any further write down of Atlantic City but that’s all a possibility on what happens with Atlantic City.”
