Rebounding U.S. economy and secular change in casino industry will drive corporate change… 160.0
12.0% 9.9%
140.0
10.0%
120.0 110.0
100.0
88.7
80.0
6.0%
5.6%
60.0
20.0
4.0% Consumer Confidence Index
38.6
Unemployment
2.0%
Economic metrics reach pre-recession levels Unemployment rates, reaching close to 10% during the trough of the recession have dropped to 5.6%
Consumer confidence index at 88.7, up significantly from low of 38.6
tM
40.0
8.0%
an ag em en t
Consumer Confidence Index and Unemployment (1998-2014)
–
–
Casino Spending by State (2003-2012)
se
15.0% 10.0%
ui
Non-hotel casino operators in the US have dropped from 418 in 2005 to 325 in 2014, a 22% decrease
Br
n
As
Casino industry possibly undergoing secular change Tropicana’s key markets (NJ, IN, NV, MO) were all negatively affected by the recession but have not necessarily recovered
Nevada
New Jersey
Indiana
Missouri
5.0%
– 2003
2004
2005
2006
2007
2008
2009
2010
2011
(5.0%) (10.0%) (15.0%)
Companies in a stagnant industry and pressure to succeed will force consolidation or bankruptcy Sources: American Gaming Association, CapitalIQ
10