PNK REPORT CARD

Takeaway: Across the board beat

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.

 

 

OVERALL

  •  BETTER:  PNK provides very little forward commentary so we're not able to determine whether the company exceeded management's expections.  However, margins were so strong and the EBITDA beat was sizeable so we will chalk this one up to a Better.   

VIETNAM 

  • SAME:  The gaming decree is currently undergoing a review process with different ministries in Vietnam. PNK continues to expect phase 1 to open by 1Q 2013.
  • PREVIOUSLY: “"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 CITY

  • SAME:  The 1,600 space parking structure is expected to open by the Thanksgiving holiday weekend.  Construction of the second phase of this expansion, a 200-room hotel and multi-purpose event center, has commenced with an expected completion date in the second half of 2013. 
  • PREVIOUSLY: “[River City] "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.

RETAMA PARK

  • WORSE:  We expect the transaction to close in the first quarter of 2013. 
  • PREVIOUSLY: "We expect that transaction to close by the end of this year." 

CORPORATE EXPENSE

  • SAME:  Excluding severance costs, corporate expenses came in at $4.9MM, in-line with guidance
  • PREVIOUSLY:  [Corp expense of ~$5MM sustainable?] "Yes, we can maintain that level."

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