FBR Capital on Real Estate/Lodging & Gaming: Indiana Gaming Revenue Down 2.8% YOY in January; Heavy Snow Weighed on Results
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Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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FBR Capital on Real Estate/Lodging & Gaming: Indiana Gaming Revenue Down 2.8% YOY in January; Heavy Snow Weighed on Results
FBR analyst says, "Overall, Indiana’s gaming revenue fell 2.8% YOY to $215.7 million in January 2011 from $222.0 million last January. In comparison,
YOY growth rates in December and November were +1.2% and +1.6%, respectively. Of Indiana’s 13 gaming facilities, Majestic Star I posted the strongest growth, as its gaming revenue increased 15.0% YOY to $9.4 million. Ameristar (Nasdaq: ASCA) East Chicago continues to underperform the market as the Cline Avenue Bridge (the property’s main access route) remains closed; ASCA East Chicago’s gaming revenue fell 12.0% YOY to $19.2 million in January. Penn’s (Nasdaq: PENN) Lawrenceburg facility was also pressured; its gaming revenue fell 4.7% YOY to $34.2 million. Total casino admissions decreased 6.9% YOY in January, compared with YOY growth rates of (3.6%) and (0.9%) in December and November, respectively. Win per admissions rose 2.8% YOY in January, compared with YOY growth rates of 3.3% and 1.9% in December and November, respectively."
Penn National Gaming’s (PENN – Outperform) Hollywood Lawrenceburg (approximately 19% of company EBITDA). Total gaming revenue decreased 4.7% YOY to $34.2 million in January 2011 from $35.9 million last year, compared with (6.2%) and (2.0%) in December and November, respectively. These latest monthly results are worse than our +4% revenue growth projection for the quarter.
Boyd Gaming Corporation's (NYSE: BYD)(Market Perform) Blue Chip (approximately 5%–10% of company EBITDA). Total gaming revenue decreased 7.4% YOY to $12.3 million in January 2011 from $13.3 million last year, compared with +1.1% and (2.0%) in December and November, respectively. These latest monthly results are worse than our +3% projection for the quarter.
Ameristar Casinos’ (ASCA – Outperform) East Chicago (approximately 8% of company EBITDA). Total gaming revenues decreased 12.0% YOY to $19.2 million in January 2011 from $21.8 million last year, compared with (11.5%) and +0.4% in December and November, respectively. These latest monthly results are worse than our +2% projection for the quarter.
Pinnacle Entertainment’s (NYSE: PNK)(Not Rated) Belterra (approximately 13% of company EBITDA). Total gaming revenue decreased 0.4% YOY to $10.8 million in January 2011 from $10.8 million last year, compared with (6.3%) and (5.7%) in December and November, respectively.
Harrah's Entertainment's (private) two casinos (approximately 12% of company EBITDA from Indiana and Illinois). Harrah’s gaming revenue, comprising Horseshoe Hammond and the Horseshoe Southern Indiana, decreased 4.5% YOY to $63.7 million in January 2011, compared with +4.8% and +6.7% in December and November, respectively. Horseshoe Hammond’s gaming revenue fell 8.6% in January, while Horseshoe Southern Indiana’s revenue rose 4.1%.
FBR analyst says, "Overall, Indiana’s gaming revenue fell 2.8% YOY to $215.7 million in January 2011 from $222.0 million last January. In comparison,
YOY growth rates in December and November were +1.2% and +1.6%, respectively. Of Indiana’s 13 gaming facilities, Majestic Star I posted the strongest growth, as its gaming revenue increased 15.0% YOY to $9.4 million. Ameristar (Nasdaq: ASCA) East Chicago continues to underperform the market as the Cline Avenue Bridge (the property’s main access route) remains closed; ASCA East Chicago’s gaming revenue fell 12.0% YOY to $19.2 million in January. Penn’s (Nasdaq: PENN) Lawrenceburg facility was also pressured; its gaming revenue fell 4.7% YOY to $34.2 million. Total casino admissions decreased 6.9% YOY in January, compared with YOY growth rates of (3.6%) and (0.9%) in December and November, respectively. Win per admissions rose 2.8% YOY in January, compared with YOY growth rates of 3.3% and 1.9% in December and November, respectively."
Penn National Gaming’s (PENN – Outperform) Hollywood Lawrenceburg (approximately 19% of company EBITDA). Total gaming revenue decreased 4.7% YOY to $34.2 million in January 2011 from $35.9 million last year, compared with (6.2%) and (2.0%) in December and November, respectively. These latest monthly results are worse than our +4% revenue growth projection for the quarter.
Boyd Gaming Corporation's (NYSE: BYD)(Market Perform) Blue Chip (approximately 5%–10% of company EBITDA). Total gaming revenue decreased 7.4% YOY to $12.3 million in January 2011 from $13.3 million last year, compared with +1.1% and (2.0%) in December and November, respectively. These latest monthly results are worse than our +3% projection for the quarter.
Ameristar Casinos’ (ASCA – Outperform) East Chicago (approximately 8% of company EBITDA). Total gaming revenues decreased 12.0% YOY to $19.2 million in January 2011 from $21.8 million last year, compared with (11.5%) and +0.4% in December and November, respectively. These latest monthly results are worse than our +2% projection for the quarter.
Pinnacle Entertainment’s (NYSE: PNK)(Not Rated) Belterra (approximately 13% of company EBITDA). Total gaming revenue decreased 0.4% YOY to $10.8 million in January 2011 from $10.8 million last year, compared with (6.3%) and (5.7%) in December and November, respectively.
Harrah's Entertainment's (private) two casinos (approximately 12% of company EBITDA from Indiana and Illinois). Harrah’s gaming revenue, comprising Horseshoe Hammond and the Horseshoe Southern Indiana, decreased 4.5% YOY to $63.7 million in January 2011, compared with +4.8% and +6.7% in December and November, respectively. Horseshoe Hammond’s gaming revenue fell 8.6% in January, while Horseshoe Southern Indiana’s revenue rose 4.1%.
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