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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:  Solid execution and good quarterly performance overall.  Stock buyback announcement was a nice surprise.  Slower trends in July moderate the enthusiasm.

TIMING OF L’AUBERGE BATON ROUGE OPENING

  • SAME:  L'Auberge Baton Rouge will open on August 29
  • PREVIOUSLY:  "We expect to open, in full, L'Auberge Baton Rouge late August this summer."

NEW ORLEANS PERFORMANCE

  • SAME:  admissions and marketing reinvestment were flat YoY.  Management continues to focus on appropriate spend and visitation levels.
  • PREVIOUSLY:  "It's something that's on all of our mind on a regular basis that we have seen declining revenues there. It's a variety of things, including competitive pressures in that market. We've pointed out that especially on the West Bank, there's a change because of what happened with the Deep Horizon disaster a couple of years ago. I don't want to use that as an excuse. We... can compete better than we are in that market, and we're focused on doing that through specific program changes at that property."

SPEND PER VISIT

  • SLIGHTLY WORSE:  L'Auberge, Bossier City spend/visit didn't increase but trip frequency did.  New Orleans spend/visit declined 3.3%.  River City saw a rise in both trip frequency and spend/visit.  However, July has started off soft. 
  • PREVIOUSLY:  "Our revenue per admission continues to grow across the portfolio and we remain extremely disciplined about how and when we spend resources in managing the business."

MARGIN UPSIDE

  • BETTER:  2Q EBITDA margin increased 426 bps YoY to 24.5% 

RIVER DOWNS TIMING

  • SAME:  have filed with Ohio Lottery Commission to operate VLTs.  1st phase will be open in 2013.
  • PREVIOUSLY:   "We expect to begin work at some point this summer.... our ability to get a project off the ground this year and having that first phase that may open as early by the end of next year it's pretty high."

HO TRAM TIMELINE

  • SAME:  ACDL's $35MM working capital facility should be in place at the end of 2012.  Remain on track for 1Q 2013 opening.
  • PREVIOUSLY:  "At Ho Tram in Vietnam, the project is on track for an opening by the end of the first quarter of 2013."

RETAMA PARK CLOSING/INTEGRATION:

  • SAME:  expect the transaction to close at the end of 2012.
  • PREVIOUSLY:  "Our total investment will be about $23 million of which $10 million has already been deployed. We expect the second phase of the transaction and remaining investment to close in the second half of 2012. Retama lost about $1.5 million last year on an EBITDA basis but we expect to improve this once we manage through operations and integrate the property into our portfolio. Obviously, should there be an expansion of gaming at racetracks in Texas – we will manage that operation as well."

RIVER CITY CONSTRUCTION TIMELINE

  • SAME:  parking garage is on track to open by Thanksgiving Day 2012.  Construction of Phase 2, a 200-room hotel and multi-purpose event center, is expected to commence in Fall 2012.  The hotel and event center should be completed in 2H 2013.
  • PREVIOUSLY:  "As the temperatures climb in the summer and that walk from further away gets to be more troublesome for folks, we may see a deeper impact. Our point here was that in the first quarter, we didn't see much of an impact at all out of that additional walk. So we'll see how things go as the summer progresses. We do expect the garage to be operational by the end of the year. So hopefully before the snow and winter come at the end of the year, we'll have that garage operational. So once that garage is finished, we will then break ground and build that hotel. And we believe we can have that hotel done by the end of 2013."

CORPORATE EXPENSE RUN RATE

  • BETTER:  2Q Corporate expense of $5.0MM was lower than 1Q's $5.4MM and 4Q 2011's $5.6MM.  Management believes they can maintain this level going forward.
  • PREVIOUSLY:  "So, I think that is for purposes of your model, certainly a reasonable run rate."