In preparation for PNK's 3Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
YOUTUBE FROM 2Q CONFERENCE CALL
- "Universal card deployment will continue through the fall with Lake Charles and we anticipate completing this one card system at all our properties by the first quarter of next year. We're 15 months into our revamp loyalty program and mychoice is doing exactly what we designed it to do: increasing loyalty from our best guests with proprietary and aspirational benefits. And we've done this without increasing our overall marketing reinvestment."
- "Vietnam is expected to follow a gaming tax model that is similar to that of Singapore. The gaming tax rate is 30% in Vietnam on a mass market play; however, it is our expectation that junket commissions will be deductible for gaming tax purposes. Therefore, the VIP effective tax rate will be materially lower."
- [River Downs] "We expect to have the first phase of development open and to the public in 2013. We're looking forward to having access to the garage later on this year, the multipurpose room will come online next before the end of next summer, and the hotel will be opened in the second half of 2013."
- "In New Orleans, we will be building hotels to add to severely lacking amenities to this facility. The $20 million project should be completed by the end of 2013, at which point all of our current gaming properties will have a hotel. There will be very limited disruption throughout the construction and we expect the return on invested capital for this project to exceed 15%."
- "In Lake Charles, as we mentioned previously, we plan to refresh the room product. The first phase of this project will touch close to 530 rooms in hotel corridors, most of which are about seven years old now. This phase will cost approximately $17 million and will be done over the next 18 months."
- "We expect that transaction to close by the end of this year."
- [Heartland Poker acquisition] "The asset is EBITDA positive. We're not yet developed the full budget for next year on that. We will do so and you'll start seeing results in our earnings at this coming quarter since the transaction closed right at the beginning of July. So, and obviously we paid it with all cash; so... almost on any metric you look at, it'll be accretive."
- [Corp expense of ~$5MM sustainable?] "Yes, we can maintain that level."
