In preparation for PNK's 3Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
$82 MILLION EXPANSION AT RIVER CITY CASINO IN ST. LOUIS (9/12/11)
- Adding a 200-room hotel, a 10,000 square-foot event center and a covered parking structure to River City
- Construction scheduled to begin in 1Q 2012 and will be complete in 2H 2013
YOUTUBE FROM Q2 CONFERENCE CALL
- “Regarding customer spend, we are seeing improvements across all our customer’s tiers with higher increases coming from our top three tiers on our players program. Across all our customer tiers, we are seeing a shift in revenue as the customer base has responded to our shift into focus on profitable revenue, not just revenue.”
- “The corporate expense included roughly – just shy of $200,000 in severance costs, which we included in those numbers. And there was some increased corporate overhead associated with some litigation – legal expenses, for a run rate basis for folks out there that are projecting us, somewhere between the first quarter and second quarter it’s probably a decent run rate to use going forward.”
- “We had $10 million drawn on the facility at the end of the quarter, that it should reflect the lower cost going forward. We obviously expect to use that facility as we look to build out Baton Rouge and build out River Downs sometime in the next year.”
- “Trips to Wynn Las Vegas and Royal Caribbean cruises are being made by our guests in the top three tiers. All of these targeted marketing initiatives resulted in double-digit increases in both trips. In addition to play consolidation and increased trip frequency, reallocation or reinvestment to reward higher value guests led to an 80 basis point decline in marketing expense as a percent of revenue year-over-year. It’s important to note, and as I mentioned during our last call, the new construct of mychoice with its aspirational rewards will be net neutral to our overall marketing expense.”
- “We still plan on opening our Baton Rouge facility in the summer of 2012. We are still expecting that we will be at budget of $357 million, although there is some additional pressure on us due to the delay that we’ve had...If there was a change in that, at this point, we don’t believe it would be significant.”
- “Marketing is an effort that we have focused on over the last year plus and we’re still in the very early stages of implementing that. That is our largest arguably controllable expense, and so that we very much agree that we’re still in the – at worst, the middle innings.”
- “We don’t think that Las Vegas is a market today that it make sense for us to be in, and we couldn’t be more pleased with our relationship with Wynn Resorts, and how that’s working out for us.”
- [Baton Rouge] “We have changed the mix of our casino floor, both with better slot product, with a new poker room that really just recently opened up in the third quarter.”
- “So far in Baton Rouge has been about $51 million or so this year. The real spend will really start increasing now that we’ve started, and accelerating to the fourth quarter. I would tell you the number is going to be roughly about 75% of what we have left to spend, will happen in the next year.”
- Q: “On a run rate going forward, we’re still talking $2 million, $3 million a quarter of cash charges related to Atlantic City?”
- A: At most.