In preparation for BYD's Q3 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.



YOUTUBE from Q3 earnings call

  • “We expect our wholly-owned business will continue to show improvements throughout the rest of this year.”
  • “We have also begun to see initial signs of growth from unrated play in our stronger performing Midwest and South properties.”
  • “As we predicted on our last call, Convention and Meeting business revenue increased more than 20% during the second quarter, in-line with the growth we saw in the first quarter. We expect that run rate to continue.”
  • “The promotional environment in the Locals region remains elevated. We believe, however, that we have the right mix of promotional activities in place and remain disciplined in our marketing efforts.”
  • “Starting in October, we will convert to a Boeing 767 on our Hawaiian charter route. This will allow us to offer our Hawaiian customers a flying experience as competitive as anything currently offered in the Las Vegas to Hawaii route. As important, this new aircraft will be more efficient on a per seat basis while providing us with a 12% increase in available seats, allowing us to transport 6,200 more customers annually based on our current five flight per week rotation.”
  • “We expect wholly-owned EBITDA, which includes corporate expense, to be in the range of $65 million to $70 million versus $61 million reported in the third quarter last year. We expect Borgata to generate EBITDA of $52 million to $55 million. With that range of EBITDA, adjusted EPS for the third quarter is expected to range from breakeven to $0.03 per share. This guidance assumes no contribution from IP during the third quarter.”
  • “Clearly Atlantic City is in a lot of increased competition, and I think what we’re seeing over the summer is the same thing that we’ve seen for the last couple of quarters in terms of an elevated promotional environment. And as Paul indicated in his remarks, we’ve responded in kind to make sure that we retain the customer base. As we move forward, obviously, we’ll start to cycle through the Pennsylvania table games in the third quarter. So when those started to open in late July of last year, and so we’ll start to have some better or maybe easier comps as we move forward and I think Atlantic City is just going to continue to slug it out over the next couple of quarters. And we’re focused on margins there also, trying to operate as efficiently as possible. But it’ll continue to be a battle as we look forward over the next couple of quarters.”
  • “The rule of thumb you can use is a 1% increase in revenue is a 2% increase in EBITDA.”
  • [Capex spend] “I think we are probably on a run rate to spend $15 million in each of the next two quarters.”
  • “With respect to the Lake Charles market, we’ve said for a long time the more people you put on I-10 heading into Lake Charles given our position in the market and being first into the market, we certainly like our position. We’ve got a great asset there. So that property obviously is a number of years off from being developed, and we’ll continue to grow our property to reap the benefits of more people being on I-10, crossing from Houston into the Lake Charles area. We’re positive about there being additional traffic.”
  • [Borgata renovation] “The project will include all the rooms in the original Borgata Hotel, to be completed between generally the fourth quarter – the fall of this year and the spring of next year. We’d expect all those rooms to be completely remodeled before Revel opens. It is a pretty complete renovation. We’ll be touching all of the parts of the room, from the furniture to the carpet and wallpaper and the likes. So it’s a comprehensive overhaul of the rooms, and we will be done by the time Revel opens.”

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