In preparation for ASCA's Q3 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
AMERISTAR CASINOS ANNOUNCES STOCK REPURCHASE PROGRAM (9/15/11)
- Authorized the repurchase up to $75MM from time to time through Sept. 30, 2014
YOUTUBE FROM Q2 CONFERENCE CALL
- “We’re operating right now in a rational promotional spending environment.”
- “You can also see the tremendous stability overall in these margins, there is obviously some seasonality in the second quarter... and it’s most pronounced at Jackpot... The properties have very successfully managed to absorb increased volumes in the second quarter without an increase in controllable costs.”
- “Six properties had year-over-year adjusted EBITDA growth with Black Hawk the only exception and there has been construction on the Canyon Road this summer that have had some impact on Black Hawk’s performance we believe.”
- [Share count guidance] “We expect Q3 and Q4 in 2011 and all of 2012 to be approximately 34.5 million shares.”
- “The credit facility side rates are generally compared to our previous bank facility at the time of its retirement. Despite an initial debt increase of over $500 million annualized interest, we expect it to increase annually only approximately $6 million pre-tax at current LIBOR rates.”
- “On an year-to-date basis, approximately $156 million in year-to-date debt repayments have been made, including a $35 million payment that we made in July subsequent to the end of the second quarter.”
- [Q3] “We estimate non-cash stock-based compensation expense will be $3.5 million to $4 million…. Capital spend will be in the $10 million to $15 million. Net interest expense will be somewhere between $26 million and $27 million. Noncash interests expense to be $1.3 million. The blended tax rate for the third quarter is going to be somewhere between 20% and 25%.”
- “Including in Q4, we expect our blended income tax rate to be approximately 40% down from the 42% to 43% that we’ve been using again related to changes in our state tax allocation.”
- “We expect to continue to generate significant free cash flow in the third quarter as shown by the $35 million debt reduction that took place in July. We anticipate that for the quarter in whole we will be retained somewhere between $40 million to $45 million in debt; we’ll probably be closer to the $45 million number.”
- [$12MM of corp expense going forward] “It might be just slightly less. I mean, we’ve obviously had some, as we defined in nonoperational expenses related over the last several quarters to the various transactions that we looked at and the stock buyback, but $12 million is a reasonable number to use.”
- “To see improvements in gross revenue when operators are decreasing promotional giveaway dollars, which artificially lower the market revenues, I think you should look at it as a positive.”
- [St. Charles bridge] “The bridge construction hasn’t started yet. It will probably start sometime late first quarter, early second quarter of next year.”
- [Black Hawk construction] “There’s actually two projects going on. They were doing some sewer line work up close to our property in the city for a part of 2Q. They’ve now sort of reached a stopping point on that phase and will pick it up again in a few months and move it further down towards the bottom of the field leading into the city. But there’s a fairly long-term project to widen and straighten Highway 119, which is the road that comes up from the Interstate up into Black Hawk. And they’re doing the first portion of it over the next year and a half.”
