Hedgeye - BYD YOUTUBE

In preparation for BYD's F2Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.

YOUTUBE FROM Q1 CONFERENCE CALL

"We are cautiously optimistic about the economic trends that have started to form late in the quarter and the overall direction of our business."
"We are optimistic that conditions should remain relatively healthy in our Midwest and South markets in the months ahead."
"In Atlantic City, the recovery from Sandy appears to be strengthening as the market enters its historically busy summer season."
"We are well positioned take advantage of several significant long-term growth opportunities, including our agreements with the Wilton Rancheria tribe in Northern California and Sunrise Sports Entertainment in South Florida. Both of these partnerships could provide significant growth opportunities to our company in the next several years."
"We're also quite optimistic about the potential of the emerging domestic online gaming market. We intend to be among the first to offer online gaming in the State of New Jersey and are confident that the Borgata brand will allow us to capture a substantial share of this lucrative market. We're evaluating the opportunity to offer online poker in Nevada as well and are determining the best way to enter what is shaping up to be a robust yet crowded market."
[LV Locals] "Our themed slot initiatives and related marketing programs that we discussed on prior calls have been quite successful. Looking ahead, we are optimistic about our prospects in the second quarter, which got off to a good start at the Orleans with a festival celebrating the American Country Music Awards."

"On a spend per visitor basis, we're running about flat, so sort of an improvement over the declines we had seen prior."

[Downtown LV] "We are diligently focused on improving operating margins in this segment as well, and we're successful in mitigating the impact of lower revenues on the EBITDA line...Overall direction of our Downtown Las Vegas business remains encouraging. We continue to enjoy a great relationship with our Hawaiian customers, providing this business a solid foundation."
[Kansas Star] "Marketing spend was unusually low during Kansas Star's introductory period in early 2012, and this quarter's results reflect more realistic customer reinvestment levels. We expect these trends to continue and visitation should grow further with the opening of our arena, capable of seating over 6,000 guests. This property continues to perform in line with our expectations and remains on track to generate about $100 million in EBITDA on an annual basis."
"We expect wholly-owned EBITDA after the deduction for corporate expense to be in the range of $132 million to $137 million. We expect Borgata to generate EBITDA of $27 million to $29 million in the second quarter. Assuming a tax rate of 35% and with this range of EBITDA guidance, adjusted EPS for the second quarter is expected to range from a loss of $0.02 per share to an income of $0.03 per share."
[Capital allocation] "BYD monetizing some non-core assets as we've done recently and focus on improving our core operations. We frankly think the most efficient way to continue to de-lever and strengthen our financial position is through improved operations, and so that's our number one focus."
"Suppose if the Penn REIT came forward and wanted to pay us REIT multiples 12x or better, we'd probably take a look at it. But that hasn't happened."
"Kansas Star today has 150-hotel rooms in total. We'll be increasing that to 300 in the next 18 months or so per our agreement with the state and our hotel operator."
[IP] "I would tell you that the market is certainly, as we knew going in, a very, very competitive market. State of Mississippi issues numbers by sort region within the state and you have those handy. And the IP for us has been much more of an efficiency story than a revenue growth story, and we think as a result of that it has had a meaningful contribution to stock price and equity valuation, because we bought it at the right price and very much improved margins and EBITDA contribution at that property, and expect that to continue."