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Operations driven quarter. BYD, you can do this too.

  • Graton - continues to gain momentum with each passing week
  • Closed on $2bn debt refi 
  • Revenue challenge is that customers were less willing to spend
  • LV Strip continue to show evidence of recovery
  • Strip:  Visitor room nights were flat; gaming volumes grew
  • Favorable population trends in LV locals market should continue in 2014
  • $8 bn invested in LV city projects, highest since 2007-2008
  • New developments should benefit Red Rock 
  • Mobile sports gaming:  signups exceeded expectations.  
  • Fertitta Interactive:  online gaming has gotten off to a slow start but are optimistic; payment process impediments e.g. Visa
  • 2013 capex:  $86MM
  • 2014 capex guidance:  $110-120MM
  • Have improved leverage ratio by 3 turns since restructuring in June 2011 
  • Consolidated cash:  $138MM

Q & A

  • Locals market:  no material improvement from last couple of quarters
    • Good trend in visitation but seeing low spend per visit
  • Still have room for cost improvement
  • LV promotional environment:  stable last couple of quarters 
  • Graton will report annual results in a few weeks
  • Ex Red Rock, $80-85MM maintenance capex run rate
  • 2014 excess FCF:  focus is to pay down debt and delever
  • Online DE/NJ interstate compact:  helpful but not game changer
  • Promotional spending as a % of revenues declining:  maximizing marketing $$; diligent and disciplined
  • Graton:  $46MM receivables left, will be paid back to Stations at some point in 2014
  • $48MM in interest reserve
  • North Fork referendum will happen
  • Broad-based strength across Las Vegas valley