67 WALL STREET, New York - December 5, 2011 - The Wall Street Transcript has just published its Gaming and Leisure Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Hotel Occupancy, Rates and RevPAR Trend Upward - Increased Corporate Ancillary Spending - Las Vegas Conventions and Casinos - U.S. Regional and Emerging Market Hospitality
Companies include: InnSuites Hospitality Trust (IHT); Orient's (OEH); Allegiant (ALGT); Ameristar (ASCA); Boyd (BYD); Carnival (CCL); and many more.
In the following brief excerpt from the Gaming And Leisure Report, expert analysts discuss the outlook for the sector and for investors.
Patrick J. Ramsey, President, CEO and Director of Multimedia Games, Inc., joined the company in 2008 and was named Chief Executive Officer in 2010. Before joining the company, he served for more than six years in various executive and operational positions with Harrah's Entertainment, Inc. Mr. Ramsey served as Vice President and Executive Associate to the Vice Chairman at Harrah's corporate headquarters in Las Vegas, where he worked on domestic and international development, design and construction, and sports and entertainment.
He has slot operation and product experience, also having served as Vice President of Slots & Security at Caesars Atlantic City. In addition to Caesars Atlantic City, Mr. Ramsey served in executive positions at Harrah's Joliet in Illinois and Harrah's East Chicago in Indiana, as well as the company's central division office in Memphis. Before entering the gaming industry, Mr. Ramsey worked in various roles in the finance industry, and also taught English in South America. He holds a B.A. in economics from Harvard University and an MBA from the Kellogg School of Management at Northwestern University.
TWST: Would you begin with a brief historical sketch of the company and a picture of its present operations?
Mr. Ramsey: This year, Multimedia Games (MGAM) is celebrating our 20th year in the gaming industry, and we've been a publicly traded company for the majority of these years. About 10 years ago, we invented some key gaming technologies for certain Native American jurisdictions and emerging markets, and our financial results as well as the company's visibility with the investment community began to increase fairly dramatically. There have been some twists and turns in our business over the intervening years and some challenges to overcome, but more recently we have established a track record of solid execution by refocusing our efforts on the development of our own proprietary games and technologies similar to what made us successful in our earlier years.
TWST: The bulk of your business is with Native American casinos, correct?
Mr. Ramsey: Yes, it is, and this segment of the gaming industry is critically important to our business and strategy. Everyday though we are expanding our business and continue to diversify into more and more non-Native American casinos. Where we used to have products to address only the one primary customer base, we now have products that address customers' needs across all markets.
TWST: How have those customers been impacted by the economic realities of the past few years?
Mr. Ramsey: As you know, the economic environment has impacted customers nationwide, so in terms of dealing with Native American casinos, I think, in general, they have faced the same challenges that all casino operators have faced. There have been some differences by geography. A lot of our business right now is still concentrated in Oklahoma and over the last several years, that has remained a fairly strong market and has performed pretty well. A few of our other more prominent markets have had varying results. Native American casino operators in California have been impacted, probably more than Oklahoma, and the market in Washington has actually held up really well. There is really not a distinction by Native American casinos. It's more about what part of the country you are in and the economics of the area.
TWST: When you say emerging markets, what markets do you mean?
Mr. Ramsey: We historically have played a big role in the development of certain new gaming markets, such as Oklahoma and Washington. At one point, even the way the California market was set up in its earliest days, we were a big part of that. Those were the emerging markets at that time. Right now, there are a lot of emerging markets for our company because we are new in so many different jurisdictions. In just our last fiscal year, we obtained 31 new gaming licenses, which is a 30% increase from our beginning level. These new markets include Nevada, where we just recently secured our manufacturer's and distributor's license. As we are licensed in a new jurisdiction, that becomes a new market for us, an emerging market. We're just beginning to place our product in some new markets, so the opportunity for us is pretty significant.
The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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