In preparation for BYD FQ4 2013 earnings release tonight, we’ve put together the recent pertinent forward looking company commentary.
UPDATED 4Q GUIDANCE
- BORGATA EBITDA $15-17m
- Wholly-owned Adjusted EBITDA post corp: $105-110m
- Despite the impact of soft market conditions and winter weather on operations in the Midwest and South and Peninsula segments, the Company's wholly-owned operations performed in-line with expectations in 4Q, benefitting from continued performance in the Las Vegas Locals and Downtown Las Vegas segments.
- 4Q Wholly-owned Adjusted EBITDA excludes a favorable property tax adjustment of $9.3m
- Lower end of our database (“rubies”) - similar amount of trips, but spending less.
- From September to October, saw recovery at properties in the Ruby tier of the database (not to prior year levels in all cases, but certainly sequentially from September to October improvements)
- In October, most of our operations are showing improvement over last month
- Expanding into social gaming…Stardust Casino, another social gaming product is currently in a test period prior to an anticipated roll out in the United States in the coming months
- Work is underway for our project with the Wilton Rancheria Tribe
PENNY LANE INITIATIVE
- Launch an enhanced Penny Lane at all seven of our major Las Vegas properties.
- Begin a phased rollout of Penny Lane in the Midwest and South
- Ultimately get to the new Peninsula properties sometime next year
- Expect very modest revenue growth
- Seeing the benefits of the refinements we have made to our marketing and operations
- Continue to improve yield on our Hawaiian charter service
- During the three-month period ending in September, we captured a 31.6% market share
- A hotel casino just reopened this past weekend returning more than 600 rooms to the Downtown inventory
- Blue Chip is contending with new capacity in both Michigan and Ohio
- Benefiting from strong economic conditions in Southeast Texas and gaining market share there
- Diamond Jo Dubuque successfully grew visitation
- At Kansas Star, new non-gaming offerings continued to drive top-line growth. However, expenses are naturally higher year-over-year as well to support the significant amenities that have been added. Removed quite a bit of cost out of the business since BYD first opened the permanent facility early this year. And BYD will continue to focus on growing revenue to realize the full potential of our investment.
- 4Q results were impacted by several short-term factors in December, including an unusually low hold percentage and severe winter weather during two weekends.
- 4Q guidance do not include any meaningful impacts from online gaming.