"This quarter clearly contains numerous outside factors that make it difficult to compare our progress to prior year... As we look past the recent rather sudden economic nervousness among American consumers, we feel confident that we have the right operating plan, the right marketing programs and the right cost structure to improve results even further."


- Virginia McDowell, President and CEO



  • "The Company currently estimates the impact of flooding on EBITDA to be greater than $7 million, including a $1 million deductible. "
  • "Flooding along the Mississippi River during the quarter impacted results at our properties in Davenport, Iowa, Caruthersville, Missouri and Lula, Natchez and Vicksburg, Mississippi. Each of these facilities was closed for a minimum of six days during the quarter and up to 41 days for our Natchez facility. In addition to the actual days closed, the properties did not operate at normal levels for some period of time before or after their respective closure due to conditions in the surrounding areas. In Lula, we still are operating with only one of the two casinos as remediation efforts continue to get the remaining casino open."
  • "While visits were slightly down from last year, both our rated and retail revenue increased across the portfolio of properties not impacted by the flooding."
  • "In Colorado we increased our promotional spending in an effort to promote our renovated casino floor, expanded poker room, new Asian-themed restaurant and newly renovated Tradewinds grab-and-go restaurant. Moving forward we will be modifying the marketing spending to match business levels."
  • "Regulatory changes in Florida were effective for the entire quarter this year as compared to only 25 days last year. "
  • "During the quarter the Company selected the general contractor for its $125 million Isle Casino Cape Girardeau and expects to finalize the documentation on the guaranteed maximum price contract in the near future. Construction is proceeding on time and on budget, and the facility is planned to open late in 2012."
  • Nemacolin Woodlands Resort: "An appeal of the award has been filed by a competing party. The plaintiffs briefs must be filed by September 12, 2011. The timeline for ultimate resolution of the matter is not known at this time."
  • Capex in the Q: $14.6MM; $4.1MM at Cape Girardea and balance was maintenance
  • "The Company expects maintenance capital expenditures for the remainder of the fiscal year to be approximately $40 million and project capital expenditures for the remainder of the fiscal year to be approximately $50 million. We have removed any previously planned capital expenditures related to Nemacolin for the remainder of the year from our guidance pending resolution of the appeal"



  • In Lula, they are still operating with just one casino open 
  • $20MM on R/C drawn at 1Q
  • Capitilized interest $600k
  • Debt: $20MM drawn on revolver; $498MM in term loans; $300MM 7.75% senior notes; $357MM of sub notes; $4MM of other debt for total of $1.17BN.
  • Leverage: 6.4x
  • $155MM of available borrowing capacity



  • Their insurance proceeds/claim should exceed the $6MM of lost EBITDA less deductible
  • Consumer trends - with the exception of Lula - they are very happy with the way their properties recovered.  Choppy at best is the way that they would describe August observations.
  • Going forward, Pompano current margins are probably a good run rate. Remember they have new competitors too.
  • Seminoles in Coconut Creek are moving ahead with their project despite their appeal
  • Lula is currently at 60-65% of capacity; should be back to 1100 positions after Sept 2nd
  • They do anticipate to be in compliance with their covenants despite the flooding impact as long as they get settled in any reasonable time frame. They are currently one full turn inside of their covenant.
  • FY guidance: $6MM stock comp in corporate and $200k of property level stock comp
  • They are using electronic table games at Pompano.  At Lula the electronic table games will offer a lower betting limit table game.
  • Colorado: There are some road closures that have impacted them and therefore they have had to promote more.
  • They are doing about 2 systems conversions a year (re: BYI)
  • They are not actively pursing a license in MA even if gaming gets legalized
  • Putting in 3 SHFL E-tables at Lula
  • Proceeds from Crown casino sale and timing. Project was approved by gaming board last week. Now the referendum just needs to pass in Bossier. Then the sale would close in November.  The proceeds would go into renovations at the Lake Charles property. They aren't required to reinvest that money in Lake Charles but they were planning those renovations for a while anyway.
  • They are still working with a potential buyer on Davenport
  • Their Pompano property is 20 miles from Dania Jai Lai

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