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We still expect a pretty sizeable beat but PENN stole some of the thunder already. Here is the pertinent forward looking commentary from PNK’s Q1 earnings call and press releases.

May 26: Investment in Asian Coast Development (Canada) Ltd. Conference Call

  • “We have been monitoring the Mississippi River, the water levels, very closely. It appears those levels have peaked. We’re fortunate not to have impact to our operations thus far here in the U.S. other than the previously announced delay of our L’Auberge Baton Rouge project site. We continue to target the summer of next year for that project.”
  • “Our investment provides for a 26% ownership in ACDL, a proportional board representation, which is expected to start-up at two board seats upon closing of the investment. It also gives us management rights through 2058 for a second major integrated resort on the Ho Tram Strip, with a possibility of a 20-year extension beyond that.”
  •  “There are two stages to MGM Ho Tram and there will likely be two stages to the Pinnacle Resort on the Ho Tram Strip. That financing has not been secured and thus will take place for the second stage of MGM Ho Tram that will take place after the first phase opens.”
  • [Project cost] “Well, it will be very similar in scope as far as amenities to what’s getting built as the MGM Ho Tram ($430MM). So, certainly keep in mind that it will be built at a different time. Certainly that wouldn’t be a bad assumption.”
  • [$95MM investment] “The vast majority of that will come from cash on hand.”


Youtube from Q1 Conference Call

  • “New Orleans actually saw the biggest improvements over the quarter, both in terms of its efficiency, as well as improvements in revenue. And that continues into the second quarter.”
  • [Baton Rouge facility] “And as a result, based on the current expectation of the river levels, which continues to be significantly above normal, we are waiting for those waters to recede. Eventually they will. It’s a question of time, and as a result we’re faced with looking at the summer of 2012 versus the first quarter for the opening day of that facility.”
  • [Corp exp run rate] “I think historically, 6.5% to 7% is probably a good run rate.”
  • “As well as some future development we’re going to do over at River City that I think we’re well on our way to getting our fair share. But again, I’ll remind you, our focus is not on market share, our focus is on driving profitable revenue.”
  • “There’s been some increased visits, but it’s mostly on the spend. The spend per visit is up. And we’re just starting to see the early signs of that through this quarter, and it’s continued through the early part of the second.”
  • “You’re right, we’re actually right exactly where we thought we would be as it relates to our marketing spend on a revenue basis. So from that perspective, certainly that’s played out to expectations…We haven’t seen a significant increase in promotional spend by our competitors, not yet.”
  • “We had new brand campaigns, as I mentioned in my remarks for Belterra, Lumière and River City. And all three launched in the first quarter. Those are not a monthly recurring expense, but that’s typically something we do depending on the legs of the campaign every 12 to 18 months.”
  • “I still believe we’re in the early innings in St. Louis.”
  • “I would tell you at L’Auberge, I see a lot of room for continued improvement there just from better managing that asset.  We cancelled our Sugarcane Bay project, and we cancelled it because we believe that there is a lot more than we can yield from the existing facility. If you look at our New Orleans property, we’re continuing to see improvements at our New Orleans property. We have implemented a shared services pod system for Louisiana.
    [River Downs] “And during the racing season, the loss accentuates. So, I think there was some disclosure out there that this property lost in excess of $2 million last year on the EBITDA line, and we have to pare that back somewhat, but it is somewhat limited as far as some of the savings that we’ve had. So, I would think that the first quarter was definitely a partial quarter, but we’re of the view that that number is going to grow a little bit from the first quarter on the losses through the racing season. But you’re going to be in that zip code between, call it, a couple million dollars or so of loss until there is a change in VLTs.”
  • “We’re reconfiguring some of our casinos. We’re putting in a poker room at our L’Auberge property. I mentioned we relocated our high-limit room, both for slots and tables at River City.”