By Michael C. Zari

Huntington Ingalls Industries Inc. (NYSE:HII), the parent company of the 10,500-employee Ingalls Shipbuilding yard in Pascagoula, Mississippi, announced that Ingalls Shipbuilding has started constructing Hamilton (WMSL 753), the company’s fourth Legend-class national security cutter for the U.S. Coast Guard.

Ingalls received a $480 million contract to build Hamilton in November 2010.  The Hamilton is scheduled to be delivered to the Coast Guard in the fall of 2014.

The start of fabrication milestone signifies that 100 tons of steel have been cut utilizing a robotic plasma arc cutting machine.

“Start of fabrication is obviously one of the most important milestones in the life of a ship,” said Mike Duthu, Ingalls’ program manager, U.S. Coast Guard programs. “Our shipbuilders are looking forward to keeping this line of production moving forward on National Security Cutters. We’re improving ship-to-ship and implementing construction enhancements to ensure the Coast Guard is getting the best quality ship at an affordable price.”

Hamilton is the fourth of eight planned ships in this new class of technologically advanced multi-mission cutters.

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By Michael C. Zari

According to the Associated Press, gaming veteran Thomas Brosig has been named President and Chief Executive Officer (CEO) of Jimmy Buffett’s Margaritaville Casino in Biloxi Mississippi.  In addition, Karen Sock was announced as General Manager and Chief Operating Officer (COO).

The Margaritaville Casino Resort is currently under construction in east Biloxi and is scheduled to open next summer.

Brosig was co-founded Grand Casinos Inc. with Lyle Berman. Sock is the former General Manager at Grand Casino in Biloxi. Brosig’s lengthy experience includes co-founding Grand Casinos, Inc. During Brosig’s tenure at Grand, he oversaw the development of seven casinos.

The $48 million resort on Biloxi’s Back Bay will have a 68,000-square-foot casino and restaurant, along with retail stores, an events center and a 27-slip marina.

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By Michael C. Zari

Huntington Ingalls Industries Inc. (NYSE:HII), the parent company of the 10,500-employee Ingalls Shipbuilding yard in Pascagoula, Mississippi was recently awarded a contract modification worth ~ $11 million, according to multiple sources.

The contract modification is for research, development, test, & technical services for the DDG 1000 Zumwalt-class destroyer. Technical services include technology development, analytical modeling, qualification of materials, potential design/process improvements, and design excursions.

Work will be performed at the shipbuilder’s facilities in both Pascagoula and Gulfport Mississippi (Pascagoula  getting about 80% of the work and Gulfport about 20% of the work) and is expected to be completed by September 2012. The Naval Sea Systems Command (NAVSEA), Washington, D.C., is the contracting activity.

The Gulfport facility builds composite deckhouses and hangars for DDG 1000 ships, which are ultimately assembled in Maine by Bath Iron Works. The Pascagoula yard builds steel units that support the composite deliveries and the aft peripheral vertical launch system ship sections.

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By Michael C. Zari

During a conference call on July 27th, Boyd Gaming announced their 2nd quarter results and discussed the status of their acquisition of the IP Casino in Biloxi, Mississippi. 

Boyd Gaming is in the final stages of due diligence related to its acquisition of the IP Casino Resort Spa in Biloxi.  They are on track to wrap up their due diligence by August 4th with a closing of the transaction still expected to close early in the 4th quarter of this year.  At the end of the due diligence process, if all pans out from the process, Boyd Gaming will be paying a $10 Million non-refundable deposit to the sellers on August 4th.

During the July 27th conference call, Keith Smith, President and CEO of Boyd Gaming, stated that given the success of the team at the IP Casino Resort Spa in Biloxi, they plan on keeping the IP name and brand and also expect the IP to be a “significant contributor to future results” for Boyd, according to Mr. Smith.

By Michael C. Zari

Developers of the new Margaritaville Casino in Biloxi Mississippi have received approval from the Department of Marine Resoureces (DMR) to build a 27-ship marina as part of the new casino project.

The authorization was given at a recent monthly meeting of the Commission on Marine Resources in Biloxi. The new marina will be built adjacent to the casino project, near the foot of 5th Street on Biloxi’s Back Bay.  A DMR coastal ecology representative told commissioners that several other sites had been considered for the new marina, but were rejected due issues including wetland concerns.

According to several other media sources, the marina still requires additional approval from the Department of Environmental Quality.

By Michael C. Zari

Huntington Ingalls Industries Inc. (NYSE:HII), the recent shipbuilding spin off from Northrop Grumman Corp., has received a $98 million Navy contract modification.  The cost-plus-fixed-fee advance procurement contract modification is for long-lead materials for LPD 27, the 11th amphibious transport dock ship of the USS San Antonio (LPD 17) class.

The work, which will be conducted by the Ingalls Shipbuilding division in Pascagoula Mississippi, will include the purchase of long-lead-time materials and major equipment in support of the new ship, such as main engines and diesel generators and other equipment, including electrical switchboards, deck equipment and fire extinguishing systems.

According to Doug Lounsberry, vice president and program manager of the LPD program for Ingalls Shipbuilding, “This contract provides means to continue our development and efficient planning to build LPD 27.”

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By Michael C. Zari

Last month, the Port of Gulfport received final federal funding of $481 million for a six-year project to complete Katrina restoration and elevate the port to 25 feet, quadrupling its capacity according to one source. This brings the total amount of funds received by the port to $570 million.

The expansion of the Port of Gulfport is a long-term project that will create thousands of jobs and strengthen the state and national economies, according to Gov. Haley Barbour.

“This will be a huge economic boom, not just for Gulfport, and I think that’s very important to understand,” Barbour said. “I honestly believe 25 years from now we’ll look back - I won’t because I’ll be dead and gone - but you young people will look back and say this is the biggest economic development project in the history of Mississippi.”

According to Barbour, it’s critical to expand the port to make it ready for increased traffic resulting from a bigger Panama Canal.  Benefits could stretch to Hattiesburg (the location of a critical railroad hub) and beyond, he said.

By Michael C. Zari

On June 16th, Boyd Gaming Corporation announced that it has entered into a definitive agreement to acquire the IP Casino Resort and Spa in Biloxi, Mississippi for $278 million in cash. In addition, Boyd will also contribute $10M at closing to the Engelstad Family Foundation, which will be distributed over the next 5 years to local and regional charitable organizations in the Biloxi area.

After the acquisition is complete, Boyd Gaming plans to invest approximately $44M into the project for certain capital improvement projects at the Biloxi property.

Keith Smith, President and CEO of Boyd Gaming, said “this acquisition is an excellent fit to our existing business and provides further geographic diversification by giving us a presence in a leading regional destination market.”

Mr. Smith went on to say that “this is another important step toward achieving our strategic goal of significantly strengthening our balance sheet.  We will continue to look for additional acquisitions that are complementary to our current operations, deliver a solid return for our shareholders, and are priced appropriately.”

It is anticipated that the deal will close before the end of this year.

By Michael C. Zari

You may have read that the Palace Casino is undergoing some major renovations.  When I say major, I am not only talking about the $53 Million that is being spent on the new project and upgrades.  I am also talking about a new title that the casino will hold.  As of June 14th, 2011 the Palace will get the title Smoke Free Casino!

That is right! When the casino opens up again on the 14th of this month, the casino will be completely smoke free:  No smoking on the casino floor, in restaurants, and in all of Palace hotel rooms.  This is a breath of fresh air (sorry - I could not help myself) for a lot of would-be casino guests who have been turned off by the smoke-filled casino floors in the past.

The Palace said that a recent survey showed that an overwhelming 80% of visitors/guests to the casino were non-smokers and that the move to go smoke free will be very beneficial for all.  The General Manager for the casino said “this decision will allow us to maintain our fresh air quality, creating a healthier, cleaner and more enjoyable environment.”

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By Michael C. Zari

During the first half of May 2011, Biloxi Mississippi saw a huge increase in new construction for the city.  This, according to Jerry Creel (the Director of Community Development for the City of Biloxi) includes both commercial and residential new starts.  As an example, a $29 million construction permit was pulled for Jimmy Buffett’s Margaritaville Casino & Restaurant and a $1 million permit for a smoking lounge at the Palace Casino, which is undergoing a major expansion.

During a recent conversation with Mr. Creel, he discussed some major items that have been approved and some that are still in the works, including some significant commercial growth to the area as well as residential new starts.

Based on this, there does not seem to be a slow down in growth but just the opposite.  According to the City, Biloxi has issued over $767 Million in permits for new construction since Katrina with the momentum really picking up again within the past 12 months. To further highlight this growth consider this: In the first several months of this year alone, the city is already at the 70% point for all 12-months in 2010 (for new commercial investments).