In preparation for PENN's 3Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
Penn National Gaming Proposes $807 Million Springfield, Massachusetts Development Including Hollywood-Branded Destination Casino Resort (10/11/2012)
- +300k ft casino
- 3,000-3,500 slots
- 80-100 tables
- Hotel: 300-500 rooms
- Nightclub/ultra lounge; structured parking with 4,000-5,000 spaces; and 30,000-45,000 square-feet of meeting and convention space
Hollywood Columbus opens (10/8/2012)
DB LEVERAGED FINANCE CONFERENCE (10/11/2012)
- "We've got the Harrah's St. Louis acquisition, which we expect to close right around the end of this month, maybe November 1, November 2."
- "We have two VLTs for tracks that we're relocating to one to Dayton, Ohio, which will open in 2014 and another track which we're going to relocate to Youngstown, Ohio, which will open in 2014 as well."
- "The amount that we've spent to date is deminimis, really for land cost, $4.9 million and $3.6 million, population – that will start ramping here in probably late fourth quarter, early first quarter of next year and population there is roughly 0.8 million or 800,000 people and 600,000 people in Dayton."
- "Baton Rouge, L'Auberge opened in Baton Rouge. Clearly to date that's having an impact on our property. It's fairly substantial."
- "We've clearly seen an impact from Scioto Downs opening in Columbus... on our Lawrenceburg facility. We have roughly 10% of our business comes out of the Columbus market for Lawrenceburg, and we have clearly felt the impact of that."
- "Table games play has been very strong. Similar to what we're seeing in Dayton, we saw a little bit of that in Columbus. For whatever reason, and I think maybe it's simply a function that it's a less mature market and it hasn't had a lot of exposure to gaming, but we're clearly seeing that the slot business is a little bit slower building than what we might have expected to happen. I would say at Toledo, we're basically on track, but we're well ahead of track on poker and tables. So, clearly both of those markets are a little stronger in Ohio. The slot business – for whatever reason, I think it's going to just develop over time."
- "We think the cannibalization in St. Louis market is over for the foreseeable future."
- [Maryland Heights acquisition] "Our new CapEx is going to include new slot machines, not completely new slot machines, probably about 500 new slot machines, all new systems and a Hollywood rebranding."
- "First there's the process of getting selected by Springfield. Then it goes to the state. It's not completely established yet whether the city's going to approve one or two sites or three sites or four sites or whatever and let the state decide. So that's all to come. I don't think there's a final selection in Springfield until 2014 and even after that selection process, I would guess it's a 2016 event before you see any kind of actual opening of a facility in Western Mass."
1Q CONFERENCE CALL YOUTUBE (7/24/2012)
- "Generally not having any expectation that we're seeing any improvement in consumer confidence or unemployment levels as we think about the balance of 2012."
- "I would remind everybody that we have the preferred equity sitting out there with the maturity in 2015, which currently has a dilution impact of roughly 27 to 28 million shares. It currently costs us 0% to leave that out there, so there's certainly no incentive for us to go out and accelerate the redemption of that instrument. But that's a mechanism that sits out there."
- "Riverside is the closest casino to the speedway. We fully expected that it would take the largest hit from the Kansas Speedway opening. But with all that, we have continued to look at our fight zones in and around that market and try to capture share from Ameristar and Harrah's and, to a lesser extent, Isle. And they have been very aggressive in preserving their slot business especially. And that's been our challenge, but we're not going to be undisciplined in how we go after that. So we've continued to look at geographically where we think we have opportunities to continue to grow the business at a very profitable level but not overspend in our marketing dollars. Our margins there have held up very well, even though the revenue impact has been a double-digit decline. We'll continue to do that as well at Riverside and...continue to grow both of those businesses as Kansas Speedway evolves."
- "Project CapEx is expected to be roughly $160 million for the third quarter and roughly $88.9 million for the fourth quarter. Maintenance CapEx in the third quarter was roughly $23.7 million and maintenance CapEx for the fourth quarter were projected to be around $21.2 million."
- [Toronto] "We have a broad interest in any opportunity in that province. So Toronto is certainly of interest if we have a better understanding of what they're looking to do there, plus there's other regional markets in that province that also we view as very attractive."
- "We're hopeful to have a groundbreaking before the end of 2012, and right now we're thinking first half of '14. But it's still a very fluid process and a lot of things have not been resolved yet."
- [Promotional environment in Vegas] "Generally more of the same. The locals market continues to be sluggish out there. Promotional activity is slightly more rational than what we saw a couple quarters ago. And we've certainly at the M continued to pare back our marketing expenses where we believe we can improve the profitability of our revenue streams."
- [Illinois VLT impact] "We don't anticipate any impact from these bars and taverns opening up."
- [Cap interest guidance] "We have roughly $2.2 million in the third and roughly $800,000 in the fourth."
