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CET Debt and Leveraged Finance

Discussion in 'Casino Industry & Development' started by Funkhouser, Dec 5, 2013.

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  1. Funkhouser

    Funkhouser In Charge of the Big Door

    Joined:
    Aug 20, 2011
    Messages:
    2,105
    Location:
    Cincinnatti, OH
    Trips to Las Vegas:
    45
    VT posted an article the other day about CET presentation to BOA Leveraged Finance Conference.

    Basically it parodies the image that CET is presenting to investors. If you download the PPT presentation, it does include some interesting slides of CET pushing out debt maturity out past 2018 and keeping immediate term interest payments at 1.5 billion. They spun off some properties into another holding company including PHo. Lastly they count heavily on new retail and linq to increase customer base and revenues.

    One laughable point I found in the presentation was that the "Fuel Rewards" program was created to address one of our customers biggest pain points. :evillaugh:evillaugh

    Yeah right, thanks to CET and my fuel rewards discount I can now afford to treat my family to an extra meal out and cover the gas used to the local casino. I am amazed the marketing bs these guys put in the ppts. Either way it's an interesting read from the bean counters to the finance guys.


    http://www.vegastripping.com/news/blog/5200/the-executives-find-the-debt/
     
  2. Kickin

    Kickin Flea

    Joined:
    Aug 10, 2012
    Messages:
    3,414
    Thanks for posting this presentation. A few initial thoughts:


    1. They seem to want to avoid breaking out CGP's performance anywhere, not even within footnotes of the consolidated statements. Considering its 52% owned by CZR shareholders where most of the debt is encumbered those investors would want to see those numbers in detail. I'm sure that came up in the Q&A.

    2. Their positive EBITDA was driven largely by deducting non-cash charges, which doesn't help when you have looming debt maturities. No wonder they didn't break out any cash flow statements.

    3. Wow 44 million Total Rewards members. That's a crapload, even with 8 million "active". Their 76% of total play that is tracked on TR cards is a good number, I read that industry average was closer to 60%.

    4. I guess they still haven't come up with a name for Bills since they still refer to it as Bills. Maybe that's not so bad.

    5. Slide #12 is just funny, and stupid. I can't believe anyone let that in there. Look at it for a while and you'll see why.
     
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