A better than bad quarter combined with strong margins reported at ASCA should provide a good environment for the stock today.


"We have entered into a definitive agreement to sell the Ameristar Casino Lake Charles development project to Golden Nugget and are pleased that the consideration we expect to receive will recuperate a vast majority of the capital invested in the project. In St. Louis, the Lumiere Place Casino and Hotel and Four Seasons sale process is also progressing rapidly."


"We are confident we can achieve at least $40 million of synergies and efficiencies of scale between the two companies (ASCA/PNK) and hope to meaningfully exceed that target."


-Anthony Sanfilippo, CEO of PNK




  • Having Golden Nugget next to L'Auberge in Lake Charles will be a great outcome; will bring some customers from Texas market
  • Expect to close ASCA acquisition in early August 
  • Expect to exceed $40MM in synergies, even after Lumiere and Lake Charles sales
  • July has rebounded from May/June performance but not as strong as March/April #s; July is trending above 2Q levels
  • Spend per visit is in-line with historical levels; trips declined though
  • L'Auberge Baton Rouge:  Repeat visitation is strong: 55% returning; Hotel occupancy continue to be in the high 90s
  • L'Auberge Lake Charles:  1st half of 2Q they completed 1st phase of room renovation (5% of rooms available).  2nd phase of renovation will begin in fall 2013.  If you normalize hold, Lake Charles had one of the top 5 quarters of all time.
  • Belterra:  Ohio competition continues to affect visitation but impact from Horseshoe has been less than expected
  • New Orleans:  continue to see operating improvements
  • Focus on cost containment have offset revenue weakness
  • River Downs: will open 2Q 2014
  • River City:  hotel will open by Labor Day; on budget and on schedule

Q & A

  • Golden Nugget Lake Charles:  fair outcome of sale
  • Lumiere sale:  a lot of interest in the property (multiple parties); expect further information to share in the next few weeks
  • Trips lower YoY:  Midwest more pronounced than down South but pretty much across the portfolio
  • St. Louis margins:  bullish on mgmt there; Lumiere and River City both run very well 
  • Belterra:  recently opened a buffet and 3rd Stadium concept; very confident property is competing well with new competition in the region; heightened promotional environment; pretty disciplined in costs
  • Proceeds from Lake Charles will be used to pay down debt; leverage ratio will be lower as a result of this
  • Leverage ratio:  will have robust cash flow to pay down debt
  • Houston is underpenetrated
  • ACDL Vietnam: property scheduled to open tonight on Ho Tram Strip; cautiously optimistic; highly unlikely PNK will participate in capital call
  • Baton Rouge:  sees further margin improvement; hotel is executed well
  • 2Q NOL:  $270MM, not including impact out of Atlantic City; should end up around $500MM
  • Lumiere NOL tax base: $400MM 
  • Weak consumer environment:  impact more coming from lower tiers
  • Corporate expense run rate:  $5M to mid $5MM

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