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In preparation for PENN FQ4 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.

SSS

  • On a same store sales basis, where the gaming industry in terms of our view looks no different than what you're seeing from a retail sales perspective. It's sluggish and it's troubling.

CANNIBALIZATION

  • We do have two cannibalization events next year. One is the opening of the Horseshoe Casino in Baltimore that will cannibalize our Charles Town facility. And then we have a few of the race tracks that are opening in Ohio will cannibalize predominantly the Lawrenceburg facility. But to a smaller extent, they'll take some of the growth out of the Columbus facility also, one of those being our facility opened in Dayton.
  • The cannibalization should largely be over after next year. I think we only have one other known event, which is probably a 2016 event, best case.

HOLLYWOOD ST. LOUIS RENOVATION

  • We've been going through a rebranding process. We'll be about $670 million of total purchase price into this facility after the rebranding is done. The facility will be completed just before Christmas, so it will be open for the all-important New Year's week late this year.
  • We are putting about $60 million into it. About $35 million of that is on the construction side, and the rest of it is in systems to replace the slot system, replace the general ledger. I think they've got about $7 million of it went to IT. The rest of it went to slot machines to bring the floor up to speed. We usually run on about a 7, 7.5 year cycle in floor replacement, and it was behind that, so we kind of wanted to get it into our spectrum of comfortable.

MAHONING VALLEY AND DAYTON 

  • Total project cost of these is a little bit over $500 million, Penn is responsible for about basically $320 million. A portion of that will be paid in 2014, with the remainder paid in some payments over the next nine years to the State of Ohio. There's a license fee, which is $50 million per facility. $25 million of that is due in 2014, $25 million is due a year after that. And then there's relocation fees of $75 million per facility. $15 million is paid at open, and then about just under $20 million paid per year for the nine years after that.

ZIA PARK

  • The Zia Park Hotel is going to open late in 2014

JAMUL INDIAN VILLAGE

  • Started construction on Hollywood Casino Jamul, projected to open in late 2015, is expected to include a three-story gaming and entertainment facility of approximately 200,000 square feet, featuring over 1,700 slot machines, 50 live table games including poker, multiple restaurants, bars and lounges and an enclosed below grade parking structure with over 1,900 spaces.
  • It's a 30% of net income management contract.