In preparation for PNK's F3Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
PNK INTRODUCES BELTERRA PARK GAMING & ENTERTAINMENT CENTER Oct 23
- $300MM Entertainment Destination to open in May 2014
RIVER CITY CASINO UNVEILS 200-ROOM HOTEL; COMPLETES $82MM EXPANSION Sept 16
- We still believe that we are going to be able to not only meet the goal of $40 million in synergies, but we believe that, from what we've had exposure to up to this point, we're going to be able to exceed that.
- There is a large portion of that that is entirely driven by combination of public company costs, i.e., one board, one set of financials, as well as integrating the teams in effectively, mostly down in Las Vegas. We have done an enormous amount of work on this, and while there is some effect on the margin by virtue of Lumiere, the reality is that the scale of the company and our ability to realize savings through better procurements, a better marketing program that will look to do best practices, really remains largely unchanged.
- In terms of guest behavior, in the second quarter, we saw trips decline at a greater rate than spend per trip. Meaning that people came less often, but their spend per trip was pretty much in line with historical levels.
- Midwest it is a little bit more pronounced than down South, but nonetheless it's softness that we're seeing pretty much across the portfolio.
- The impact has been more pronounced at the lower tiers
L'AUBERGE BATON ROUGE
- We continue to see strong guest acquisition and growing loyalty among our guests. Repeat visitation is very strong, with over 55% of our guests returning for multiple trips. The hotel continues to be a good story, with occupancy now in the mid-90s consistently. And our regional high end business continues to grow every month, although at a lower pace than we had originally anticipated.
L'AUBERGE LAKE CHARLES RENOVATION
- The second phase of the renovation will begin this fall after the busy summer season.
HORSESHOE CINCINNATI IMPACT
- The impact of Horseshoe Cincinnati has been less than anticipated so far.
BOOMTOWN NEW ORLEANS
- Finally, in New Orleans, we continue to see an improvement in the operating performance of this property
- The facility is well underway and we're excited about bringing the property into our portfolio in the second quarter of 2014.
CORPORATE EXPENSE RUN RATE
- We've been running right around $5 million or so, call it mid-$5 millions on the current set of portfolio, and that's the set we have that clearly we're working through that as it relates to the combined company.
- So while I don't expect if we were to, without the acquisition, that that number will change in any material way in that $5 million to $5.5 million per quarter, certainly we'll recalibrate that and give you some parameters once we complete the acquisition.