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PNK should continue its string of strong quarters and keep up the regional momentum started by PENN.

We are projecting EBITDA of $63.5 million, significantly higher than the Street at $60.2 million.  Our EPS estimate of $0.08 is also meaningfully ahead of the Street's $0.05.  On a year over year basis, L’Auberge and New Orleans should be the standout properties on an EBITDA basis with a full quarter of contribution from River City driving most of the company-wide year over year gain.  Secular margin growth remains a story company-wide.  PNK generated 3 straight quarters of property level margin improvement and we believe at least 4 more straight quarters remain.

As can be seen from the following chart, regional gaming trends have picked up considerably sequentially with March being the standout of the quarter.  Whether March benefited from pent up demand as a result of tough weather in January and early February remains to be seen although we are hearing anecdotally that April has been a pretty good month.  We track trends on a sequential basis, seasonally adjusted.

PNK: SHOULD BE ANOTHER REGIONAL BEAT - riverboat