Boyd Gaming Corp.
Why Disney Is Backing Anti-Casino Initiative in Florida
Walt Disney (DIS) has spent about $20 million to support a Florida ballot initiative that seeks to restrict casino expansion in the state.
High-Yield Bond Funds Saw Third-Largest YTD Inflows, Yields Ticked Up
Yields on high-yield debt and spreads between high-yield debt and Treasuries rose over the week ended March 24, 2016.
Intelsat Jackson Issued Most Junk Bonds in the Week Ended March 24
Continuous improvement in market conditions resulted in the highest year-to-date (or YTD) high-yield bond issuance in the primary market last week.
High-Yield Bond Issuance Recorded Is the Highest in 2016 YTD
High-yield bond issuance surged last week and recorded its highest level in 2016 due to improved primary market sentiment.
Outflows in High Yield Bond Funds Speed up in the Week to May 8
Both yields on high yield debt (HYG) and spreads between high yield debt (JNK) and Treasuries (TLT) (IEF) remained unchanged over the week ended May 8.
High Yield Debt Issuers Return to Market after a Subdued Week
Junk bond, or high yield debt, issuers returned to the primary market after looking out for the monetary policy announcement by the Federal Reserve in the previous week.
Cost of Equity Deteriorating Melco’s WACC
Melco Crown Entertainment’s ROIC has been lower than its weighted average cost of capital for most of the last three years.
A Quick Guide To The Bifurcation Of Caesars’s Operating Leases
The initial term of each lease will be for 15 years with four five-year renewals. CZR will guarantee payments and performance of the OpCo’s obligations.
Casino REITs Are Becoming Popular In The US
US casino operators are considering REIT spin-offs to achieve higher valuations. Real estate is a main income source. REITs distribute at least 90% of their taxable earnings to shareholders.
Casinos May Look To Expand Non-Gaming In 2015
Casino operators may want to add more non-gaming amenities in 2015. This will strengthen customer spending after a year of slow casino revenues.
Institutional investors dominate at Pinnacle Entertainment
Pinnacle Entertainment (PNK) has approximately 59.2 million outstanding shares, with free float of 57 million shares. Institutional investors hold around 122% of the float.
Shorting Pinnacle’s stock could be difficult to cover
The short-interest ratio for Pinnacle Entertainment (PNK) dropped from 13 days as of October 31, 2014, to five days as of November 14, 2014.
Pinnacle Entertainment’s use of capital
Capital employment Casino companies fund their acquisitions with a significant amount of debt capital. ROIC (return on invested capital) is an important metric that shows how effectively a company makes use of its capital. To calculate ROIC, divide EBIT (earnings before interest and tax) by the employed capital. A higher ratio denotes that more profit […]
Why Pinnacle’s leverage ratio could be a concern for investors
Pinnacle Entertainment (PNK) has a massive debt-to-equity ratio of 15.4. This indicates that PNK is very aggressive in financing its operations with debt.
Liquidity analysis for Pinnacle Entertainment
The current ratio for Pinnacle Entertainment (PNK) had declined severely to 0.7 as of September 30, 2014, from 2.9 as of December 31, 2012.
Key financials for Pinnacle Entertainment
Wall Street analysts expect Pinnacle Entertainment’s adjusted net profit for 2015E to be about $92 million with a growth rate of 34.9%.
How Pinnacle Entertainment earns its gaming revenues
Revenues for Pinnacle Entertainment (PNK) are mostly cash-based. Customers wager with cash or pay for non-gaming services with cash or credit cards.
Profitability analysis of Pinnacle Entertainment
Pinnacle Entertainment’s compounded annual growth rate of adjusted property EBITDA over a three-year period ending on December 31, 2013, stood at 20.2%.
Pinnacle Entertainment’s cost structure
Pinnacle Entertainment (PNK) incurs direct costs in gaming, food and beverage, lodging, retail, entertainment, and other areas.
Revenue breakdown for Pinnacle Entertainment
Pinnacle Entertainment’s gaming revenues represented 89% of total revenues generated by the company for the trailing twelve months ending September 30, 2014.
What is Pinnacle Entertainment’s forward valuation?
As of November 28, 2014, Pinnacle Entertainment’s one year forward EV/EBITDA stood at 9.2x compared to its peer group average of 7.6x.
Pinnacle Entertainment pays debt from efficient cash flow
During 3Q14, Pinnacle Entertainment (PNK) repaid ~$116 million of total debt from its cash flow from operations. It accomplished this with the help of efficient cash flow and working capital management as well as reductions in its growth capital commitments.
How Wynn Resorts effectively employs its huge debt
Wynn Resorts’ (WYNN) return on capital employed (or ROCE) has been greater than its weighted average cost of capital (or WACC) over the last three years.
Why Penn National Gaming is an attractive investment
A company can generate more earnings if a lot of debt is used to finance additional operations, even if it results in high debt-to-equity. If earnings are that much greater than the interest cost of the debt, shareholders win.
Why Penn National Gaming’s liquidity is strong
Liquidity ratios determine a company’s ability to meet its short-term obligations. The liquidity position of a company can be measured by using two main liquidity ratios—current ratio and quick ratio.
Must-know: Penn National Gaming’s performance metrics
Performance metric Penn National Gaming, Inc. (PENN) defines adjusted EBITDA as earnings before interest, taxes, stock compensation, debt-extinguishment charges, impairment charges, insurance recoveries and deductible charges, depreciation and amortization, gain or loss on disposal of assets, and other income or expenses. Adjusted EBITDAR is adjusted EBITDA excluding rent expenses such as those associated with PENN’s […]
Penn National Gaming’s must-know revenue by segment
PENN derives more than half of its revenue from the East/Midwest segment, while it derives 34% and 9% of its revenues from the Southern Plains and West segments, respectively.
An overview of Penn National Gaming’s diverse holdings
PENN’s operated facilities feature ~31,000 gaming machines, 760 table games, and 3,100 hotel rooms. PENN owns and operates gaming and racing facilities with a focus on slot machines.
Why Caesars Entertainment’s stockholders’ equity is negative
Caesars Entertainment’s (CZR) stockholders equity is negative, according to its latest balance sheet. Stockholder equity consists of capital contributed and retained earnings.
Why Caesars Entertainment’s capital structure is unsustainable
Standard & Poor’s recently downgraded Caesars Entertainment’s (CZR) bond credit rating to CCC as a result of liquidity concerns.
Why Caesars Entertainment shut down its Atlantic City casino
Recently, Caesars Entertainment (CZR) closed down its profitable Atlantic City casino Showboat, which had operated for 27 years.
Must-know: Caesars’ performance since its memorable IPO
Caesars Entertainment’s first trade day was one of the best initial public offering performances in the history of the U.S. stock market.
Why a liquidity analysis is important for Las Vegas Sands
Las Vegas Sands (LVS) maintained its ability to cover short-term obligations. It maintained its obligations despite investing in growth opportunities. Also, it wasn’t severely impacted by the economic downturn. However, its current ratio and quick ratio have declined compared to 2011.
Must-know: A profitability analysis of Las Vegas Sands
LVS increased its revenue and adjusted property EBITDA since 2009. It had a compound annual growth rate (or CAGR) of 31.8% and 44.7% respectively. LVS’s trailing 12 months (or TTM) revenue and adjusted property EBITDA stand at $14.86 billion and $5.28 billion, respectively. It has a margin of 35.5%.
Must-know: A business overview of Las Vegas Sands
Sheldon Adelson established Las Vegas Sands (LVS) in 1988. It’s based in Nevada. Las Vegas Sands develops, owns, and operates integrated resorts in the U.S., Macao, and Singapore. LVS has ~2,570 table games and 13,130 slot machines worldwide. The company was listed in the New York Stock Exchange in 2004.
Must-know: The most popular casino games
Casinos’ popularity is growing. This suggests that people like to gamble occasionally. Unfortunately, they don’t always win. For most of the people, the real fun is playing the game—not necessarily winning.
Why new entrants haven’t been a threat for the casino industry
The casino industry has heavy capital expenditures in gaming machines. This contributes significantly to the total output that’s generated by a casino operator. This is why the threat of new entrants to the industry has been low.
Why the casino industry’s growth trend continues
Even though casino expansion is cannibalizing existing market revenues, the growth trend doesn’t appear to be slowing down. State legislatures continue to view gaming as an easy way to earn a significant amount of taxes. In 2012, state gaming tax revenues increased by 8.5%—or $661.4 million.
Singer’s Elliott Management sells its Delphi Automotive shares
Elliott Management trimmed its position in Delphi Automotive PLC (DLPH) in 1Q 2014. The position accounted for 6.66% of the fund’s 4Q 2013 portfolio and currently stands at 0.36% of the 1Q 2014 portfolio.
Paul Singer’s Elliott Management sells its shares in Time Warner
Elliott Management sold its position in Time Warner Inc. (TWX) in 1Q 2014. The position accounted for 1.17% of the fund’s 4Q 2013 portfolio and was initiated in the same quarter.
Singer’s Elliott Management sells its large position in NetApp
Elliott Management disposed of a large position in NetApp Inc. (NTAP) last quarter. The position accounted for 10.03% of the fund’s 4Q 2013 portfolio.
Elliott Management buys a new stake in Hornbeck Offshore Services
Elliott Management took a new position in Hornbeck Offshore Services (HOS) last quarter. The position accounts for 0.58% of the fund’s $5.05 billion portfolio.
Paul Singer’s Elliott Management adds a new position in SM Energy
Elliott Management took a new position in SM Energy Co. (SM) last quarter. The position accounts for 0.67% of the fund’s $5.05 billion portfolio.
Paul Singer’s Elliott Management buys a new stake in Boyd Gaming
Elliott took a new position in Boyd Gaming Corp. (BYD) last quarter. The position accounts for 1.41% of the fund’s $5.05 billion portfolio.