Sheldon hits paydirt; Culinary Union talks trash

It’s good to be Sheldon Adelson, especially when your company is notching one record-setting month after another. Revenue for 3Q13 rose 32% and net profit shot 79% upwards. Next year, shareholders can look forward to a 60 cent bump in their recurring dividend, which becomes $2/share. Sheldon concentrated on playing Santa Claus and avoided controversial remarks this quarter, even though Strip revenue gains (3%) were modest and Sands Bethlehem was flat. By contrast, Four Seasons Macao leapt 47% and Venetian Macao was up 21%.

J.P. Morgan‘s Joseph Greff was disappointed with the numbers from Marina Bay Sands, writing that comps and promotions “have negatively impacted margins.” Other than that, he was sufficiently impressed to raise his per-share price target for LVS from $75 to $80. Cash flow wasn’t broken out for every Sands property but at $357 million for Venetian Macao and $113 for Four Seasons, Sheldon is recovering his investments at a tidy clip. Even his red-headed stepchild, Sands Bethlehem did about as well as any Pennsylvania casino could, pulling in $123 million during the quarter. If not’s enough for Adelson, what is?

The Cosmopolitan of Las Vegas has usurped Adelson as Target Number One for the Culinary Union. Actually, it’s no longer the Cosmo itself that is the object of the Culinary’s rage but customers thereof. Culinary picketers have been venting their spleen by calling patrons “loser” and “retard” — and those are the nicer things said! By diving headfirst into the sewer, the Culinary forfeits not only the moral high ground in its long skirmish with CEO John Unwin but also the sympathy of any decent person. Normally, I avoid picket lines but I might make an exception and cross the one at the Cosmo. The Culinary defines its action as an exercise of its First Amendment rights but just because you’ve got the right to yell something doesn’t mean you should.

Station Casinos continues to prove to be an excellent ‘campus’ for executives. The latest alumnus to make good is Mark Dunkeson. He’s scarcely a household name in the gambling world but spent the last five years overseeing Green Valley Ranch Resort and Red Rock Resort. That’s proven excellent grooming for his new role at Rock Gaming, the casino outfit of usury mogul Dan Gilbert. As Rock Gaming’s COO, Dunkeson’s portfolio will include two Ohio casinos, a Buckeye State racino and Greektown Casino in Detroit, above. (Glorified ‘locals’ properties, every one.) At Rock Gaming, his portfolio will involve developing “strategic partnership.” Since all the Ohio properties are run by Caesars Entertainment, Dunkeson won’t have much chance to dabble in the operational side of the outfit. But he’s obviously a rising star in the industry and S&G congratulates him on his good fortune.