In preparation for CZR's F4Q earnings release Monday, we’ve put together the recent pertinent forward looking company commentary.
YOUTUBE FROM 4Q CONFERENCE CALL
- "When we announced the sale of Harrah's St. Louis to Penn, we said we'd redeploy capital into projects and regions that present the best opportunities for higher returns. In 2013, we plan to use a portion of these proceeds and the capital we obtain through it to update many properties across our Las Vegas footprint."
- [Linq] "We're on pace to open the dining and retail offerings in phases beginning in the second half of next year and we plan to open the High Roller early in 2014."
- "We also plan to open the Thistledown VLT facility near Cleveland in the first half of 2013. In Baltimore, the investment group that we are leading is in the process of refining and completing our detailed construction drawings and is in the process of seeking construction permits. We expect to begin construction in the second quarter of next year with a targeted opening in the middle of 2014."
- [Las Vegas] "I don't think you're going to see a big difference in the fourth quarter versus the third, recognizing there are large portions of the fourth quarter that are seasonally low anyway. I understand Jim was a bit more optimistic about convention and meeting business trends in 2013 and 2014 and I think we're encouraged by those trends in 2013 and 2014 as well, but I don't see anything in the fourth quarter that's especially notable."
- [Capex 2012 guidance] "For CEC, it's between $520 million and $560 million, primarily that would be spend in the CEOC entity, which is $480 million to $510 million, and then the balance will be in CMBS of $40 million to $50 million....Regarding 2013, generally you're correct, we have mentioned how our focus is going to be on continuing to reinvest in the business, in particular allocating the funds that are going to be generated from the sale of the St. Louis property into areas, where we identify higher return potential, a lot of that is going to be in Las Vegas next year, and we'll be targeting some specific room renovations at properties around the city."
- "In the quarter, we experienced about $50.8 million of cost savings and have identified yet-to-be achieved savings that we will expect to materialize over the next six quarters or so of $204.3 million."
- "You've seen a lot of political debate among the parties about online gaming and the potential for its moving in the lame duck. I'm not terribly optimistic, I think it's possible. But I think there are some very pressing issues for the country's finances that remain in front of the Congress in the lame duck session, and surely we all hope that they get attention. It's possible that the online gaming question will be called in that period, but I think it's probably less likely rather than more likely."
- [Vegas] "We do anticipate we will enjoy a meaningful ADR improvement once the renovations are complete. So, if you take, for example, one of our towers at Bally's which has rooms that are in need of renovation, we sell those at a discount as a result of their current circumstances. And once they're renovated, I think we'll see a meaningful improvement in ADR as we have with some of the other older buildings like the Flamingo where we've done some very I think innovative renovations of those rooms and we've enjoyed an almost immediate improvement in ADR."