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
