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In preparation for ASCA's 2Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary

Ameristar breaks ground on Lake Charles casino (July 19) 


  • "We did a transaction subsequent to the end of the quarter raising $240MM as an add-on to our existing 7.5% senior notes, which are due 2021. The terms are exactly the same as that note. They were issued at a premium of 103% generating yield of 6.88%, total amount of notes outstanding now are $1.4BN. Proceeds from the offering were used to completely pay down our revolver including $25MM we borrowed early in April... This obviously creates great flexibility for us to finance the Ameristar Lake Charles project"
  • Guidance: 
    • Stock base compensation: $3.5MM to $4MM for 2Q12 and $14.8MM to $15.8MM for FY2012
    • Deprecation: $26.5MM to $27.5MM in 2Q12 and $105MM to $110MM for FY2012 
    • CapEx: $20MM to $25MM in 2Q12 (including some small amounts for Louisiana) and FY2012: $160MM to $165MM (including expenditures on Louisiana)."
    • Tax rate:  "going forward should be somewhere in the neighborhood of 39% to 41%... 43%, 44% it was historically... the weighted average rate for this year should be somewhere roughly 27% to 29% based on the impact to the tax rate during the first quarter."
    • Interest expense:  "should range between $20MM and $29MM it will increase slightly on an annualized basis to $109MM to $114MM. Beginning in 2013 as you would expect there'll be capitalized interest, it will start to grow related to Louisiana probably which will offset the net increase we're seeing in interest expense from the increase in the outstanding notes versus the revolver."
    • Non-cash interest: $1.1MM to $1.6MM in 2Q12 and $5.3MM to $5.8MM for FY2012 million 
    • Corporate expenses: $12MM to $13MM in 2Q12 and $52MM to $53MM for FY2012. 
    • Share count: 34MM to 34.5MM
    • Dividends: "Board of Directors just recently approved a $0.125 dividend for the second quarter. If the dividends are continuing to be approved by the Board in the third and fourth quarter total amount of dividends for the year will be $0.50."
  • New Lake Charles casino
    • Completion: 3Q 2014
    • Gaming: 1,600 slots/ 60 table games
    • Hotel: 700 roomswith approximately 70 suites
    • Other amenities: Variety of food and beverage outlets, spa, pools, golf, tennis and other resort amenities, 3,000 parking spaces including 1,000 of them in a garage. 
    • Capex: $500MM
    • "We don't expect to borrow much under the revolver in 2012 as we believe we can fund much of the CapEx with free cash flow. And we think the strength of the market is actually proven up by the first quarter results and we expect that to continue to be a growing market."
  • "In Springfield the demolition and site grading are almost complete. We expect to take control of the property by
    the end of May."
  • [Kansas competition] "I think another quarter or two and we'll start to get a more stabilized trend line of what things are going to look like, but we're very encouraged by the strength of our Kansas City property. We've always said it's the best quality property in the market, it's the furthest away from the competition and I think we're going to do just great."
  • [Lake Charles market] "There'll be probably some cannibalization, but I think we're probably going to be cannibalizing some of the operators perhaps more than we will L'Auberge."
  • "I don't think consumer confidence has seen a huge boost... They've had lower utility bills this year versus last year where they've had a little bit higher gasoline prices. Employment is changing in some respects in some of the markets. But I think ... people are still being a little guarded with how they're spending. I don't see long-term trend lines developing yet."
  • "East Chicago I think will continue to be a strong player in that market. I think the bridge will help us some if it can happen, but we're moving along on the assumption that it never happens and running the property accordingly and I think it's working very, very well."