In preparation for CZR's 3Q earnings release Wednesday, we’ve put together the recent pertinent forward looking company commentary.
DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE (10/10)
- "The Atlantic City region, as you're well aware, has been challenged for a number of years and continues to be challenged. However, the growth decline in that region has started to mitigate and, as we move forward with the annualization of Aqueduct and the annualization of Revel, we would expect that to continue to improve."
- [Octavius Tower] "We have three additional ultra villas that will come online in November and that really targets the international play, very high end customer."
- "We've partnered with Nobu and we expect that to open at the end of the year. We're currently taking reservations starting on February 4, but we would expect to move that up as the date gets firmed in terms of the opening timeline."
- "Horseshoe Cincinnati is well under construction. That's going to open at the end of the first quarter or early into the second quarter."
- "Thistledown was a race track that we purchased out of bankruptcy. We're allowed to have VLTs at that property and we closed the financing round on that last month. So, that's fully financed and that should be open a few months after Cincinnati so probably in the early parts of the second quarter."
- [Bill's Property renovation and The Linq] "All of these developments are scheduled to open in phases over the next two to three years. You can see that a number of them will be complete and operational by the end of 2014 and that's important because, as I mentioned from a capital structure standpoint, we have pushed out our maturities so that we don't have any material maturities before the 2015 period which will enable us to realize the benefits from these development prospects."
- "The Playtika themselves generate about 6.5 million monthly active users. The Caesars Casino also does quite well, not as well as Slotomania because it was the first application that was launched and Caesars Casino is building along that, but it does around 500,000 daily active users. So it's still performing very well."
- "We are going to renovate a large number of rooms next year in Las Vegas. If you were to ask, where we've cut back on maintenance capital for the last few years, it's really been in Las Vegas and it's primarily been in the room renovation category. So next year, we're planning to do a significant number of rooms, probably touching nearly all of the properties themselves. There will be a significant renovation at Caesars Palace of 550 rooms."
YOUTUBE FROM 2Q CONFERENCE CALL (8/6)
- "We're optimistic about our prospects in Massachusetts and plan to submit our application to the Gaming Commission this fall."
- "The State of Maryland's Video Lottery Facility Location Commission granted a license to our consortium, paving the way for us to begin building Harrah's Baltimore, which will feature 3,750 VLTs. The consortiums are beginning to seek necessary permit and construction is likely to begin in 2013 with an opening targeted for the second quarter of 2014.:
- "We also announced that sale of Harrah's St. Louis, which we expect to close by the end of year."
- "Our margins at Atlantic City are under tremendous pressure as revenues continue to decline. Many of the properties there operate unprofitably for reasons that are very hard to understand. And so, we continue to look at all manners of adjustment we can make to try to keep our operating expenses as low as possible."
- [Baltimore] "The ownership breakout will be roughly 52% for Caesars and then the other percentages will be broken up by their, by the other three partners. As you know, it's going to be a $300 million plus project overall."
- [Vegas trend] "It's one of the challenges in this business, we're still facing the same number of guests, we're servicing the same number of visitors, putting them to bed, waking them up, parking their cars and alike, but the amount of revenue we enjoy is a bit diminished from that. And there is no reason that I can see in the immediate future that would suggest the general macroeconomic conditions that have led to that results are going to be much different."
- [Group/convention business in Vegas] "I think the general trend remains favorable.... I doubt that much of that is going to change
in the remainder of this year, but I think as we look forward to 2013, I think it's likely to be a little bit more encouraging."
- "Broadly VIP weakness has been felt across many different categories...the trips from that VIP category in the second
quarter of Las Vegas were up 3.2% and it was really the spend-per-trip that impacted it and it's a function of when
customers come to Las Vegas they just elect to spend less than they did in prior year periods."
- [Project Renewal cost program] "Yes, in the quarter we experienced about approximately $42 million worth of savings and we'd expect to have about $147 million left on the program."