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
- WORSE: A pretty big miss and back half numbers look like they are coming down. Margin improvement stopped this quarter as ASCA has pretty much gotten its costs as low as they can go. Consumer is under pressure to some extent and July faces a difficult calendar comp.
LAKE CHARLES CASINO (BUDGET/TIMING)
- LITTLE WORSE: Capex estimate increased to $560-580 million (includes $32.5MM purchase price to Creative) from at least $500 million previously. The new estimate included additional F&B amenities and higher % of new gaming machines vs old. Target opening of 3Q 2014 remains on track.
- PREVIOUSLY: Completion: 3Q 2014/ Capex: >$500MM (minimum investment requirement)
SPRINGFIELD SITE CONTROL
- SAME: ASCA took control of the property in May. Demoltion and site grading was also completed in May.
- PREVIOUSLY: "In Springfield the demolition and site grading are almost complete. We expect to take control of the property by the end of May."
KANSAS CITY COMPETITION:
- WORSE: Increased competition drove ASCA Kansas City 2Q EBITDA down 13% YoY
- PREVIOUSLY: "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."
- Worse: While management was cautious during their Q1 call they definitely noticed a downtick in Q2
- PREVIOUSLY:"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."