In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance.
OVERALL: BETTER - ASCA delivered another beat bolstered by the perfect storm of mild weather, an extra leap year day, a favorable calendar, and great margins
Here is the report card evaluating actual results against management's previous assertions.
- SAME: Customer confidence hasn't changed much. People are still cautious in their spending habits.
- MARGIN FLOWTHROUGH
- BETTER: Adjusted EBITDA set an all-time company record at 32.7%.
- ST. CHARLES BRIDGE CLOSURE
- SAME: After 3 years of the bridge being closed, ASCA's customers have adapted to the closures and have found different routes to access the property. While net revenues saw a small decline, EBITDA improved by $1MM YoY and margins were 240bps higher YoY
- NON-CASH STOCK COMP
- WORSE: Stock comp was $5.4MM, above company guidance of $4.5MM-5MM
- CAPITAL SPEND
- SAME: Capital spend came in at the lower end of its guidance ($31-36MM). ASCA spent $16.9MM for its Springfield site, in-line with its $16MM guidance. Total 2012 capex (excluding Lake Charles project) remains unchanged at $85-90MM.
- NET INTEREST EXPENSE
- SAME: Interest expense was in-line but as a result of the planned construction of Ameristar Lake Charles and the recent debt offering, and based on current interest rates, ASCA raised FY 2012 net interest expense guidance to $109-114MM from $103.5-$108.5MM previously.
- CORPORATE EXPENSE
- BETTER: Corporate expense was $12.1, lower than ASCA's guidance of $12.5-13MM.
- DEBT REDUCTION
- BETTER: Reduced debt by $29.8MM in Q1, higher than the $20-25MM guidance
- BETTER: Took tax elections that will lower quarterly blended tax rate 3-4% points for future quarters