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PNK delayed the filing of its 10k but the reasons appear harmless. The company needs more time to determine the amounts of various impairment charges it plans to record in Q4. Impairment charges are all the rage in gaming these days and PNK has its share of impaired assets. No doubt, the land in AC ranks near the top.

More importantly in my opinion, PNK looks like it will beat revenue and EBITDA estimates for the 2nd straight quarter. Not only did the $45.6 million in adjusted EBITDA beat the Street, but they blew it out. We estimate the street was projecting about $37 million in comparative EBITDA. Revenues were certainly impressive at $259 million versus the Street at $254, but margins were the real driver. Margins were 300 bps higher than expectations, due in part to the ramp-up at Lumiere Place and better flow through of the strong revenues in Louisiana.

PNK continues to buck the gaming and consumer trend. Is it sustainable? Probably not at the same rate but gas prices remain low and the regional markets seem to have stabilized. Indeed, pure gaming is proving less discretionary then many other forms of consumer spending. At some point the energy industry may be a drag on the Louisiana economy but we haven’t seen it yet.
I personally own shares of PNK