In advance of Great Canadian’s Q4 earnings release on Monday, we’ve summarized management’s forward looking statements from last quarter.
General Trends
- “The weakened economy continues to impact our markets”
- “We believe that the cost structure that we have in place right now is appropriate for the revenues that we have but, you know, if revenues go up, certainly some of our costs will go up. But the margin, margins will continue to grow as those revenues come back.”
- “You know, unemployment in the Province of British Columbia has still been climbing – that’s where three quarters of our revenues are – and so we are continuing to prepare for the worst and it’s that conservative attitude that’s brought us into this position and that’s the way we’re going to continue to operate.”
Project updates & Outlook
- Re: Georgian Downs “These new offerings have been well received so far. We are confident that they will provide further evidence of the underserved nature of a good deal of the Ontario market.”
- “To date, results from the Canada Line have been promising. Initial ridership has exceeded TransLink’s expectations and River Rock has witnessed increases, both in visitation and slot play. While slot coin in for the third quarter still declined by 5 percent when compared to last year, it grew by 11 percent when compared to the second quarter of this year. That sequential increase was not something we witnessed in 2008 and is an encouraging indicator of what River Rock may deliver going forward.”
- “On November 19th, we’ll complete the second phase of upgrades to the facility. These include the renovated atrium, the elevated walkway that will connect the existing facility to the Canada Line station and a variety of enhanced amenities. Furthermore, it will wrap up construction, ending the disruption that’s inconvenienced River Rock’s patrons for the past 18 months.”
- “At Boulevard and River Rock, we will perform comprehensive overhauls of the layout of our gaming floors. These modifications will both highlight the upgraded slot product at these facilities and increase their capacity. Boulevard will feature 1,000 slot machines, while River Rock will feature slightly more than that. Both casinos’ layout changes will be complete by the end of 2009 and will improve the alignment of their properties’ offerings with our patrons’ wishes.”
- “For a historical note, River Rock hasn’t had any new product in there since we opened the doors….2004”
- “At River Rock some of the slots that are going to be removed might produce as little as $50 a day and some of the ones that we might want to add more of produce well over $1,000 a day so that’s the kind of metric (unintelligible) slot machines (inaudible) and so the exercise is to get productivity up and get the non-producers out of there”
