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Full House Resorts (FLL)

Participants
Lewis Fanger Senior Vice President, Chief Financial Officer and Treasurer
Daniel Lee Director, President and Chief Executive Officer
David Bain ROTH Capital Partners
Gary Ribe MACRO Consulting Group
Jim Marrone Singular Research
Call transcript
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Operator

Good day, everyone, and welcome to the Full House Resorts Third Quarter Earnings Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Lewis Fanger, Chief Financial Officer of Full House Resorts.

You may now begin.

Lewis Fanger

Thank you, and good afternoon, everyone. quarter third our to earnings call. Welcome

Securities before today’s that conference results. statements always, Please making you the of release that we to under actual also press statements materially you begin the that results for discussion you we reference under Federal provision from Harbor could the remind the we today’s Safe I may, call anticipated our EBITDA. remind we’re in such to would see like these may of and that or may, As Laws. results may non-GAAP differ risks company’s forward-looking caption Also, as forward-looking forward-looking affect statements. make the contain adjusted measures

our press broadcasting you the of Website as all digging For into filings. as reconciliation fullhouseresorts.com, the call earnings a well we’ll release, And releases start with lastly, as we’re we well see various issue. this And conference find today’s quarter. where at all of those can please said, SEC that as our that measures,

benefit release, EBITDA in adjusted benefit a settlement whole. ago third called grew quarter as really garage XXXX, And EBITDA year in challenge Despite back or million last and here we for XXXX for to a quarter earnings listen was the $X.X the still us the company to you included and of That it year created of comparison our read the some press go a outstanding just quick, that, call up XXXX. $XXX,XXX of the if out from so related litigation. and to third we parking over

beginning unique garage going a $XXX,XXX each year, was on aspects had Silver parking benefit. just into Slipper Mississippi, digging was with so that which of I this one the that mentioned, settlement properties And two

revenue Net ever in up operations quarter Gross back revenue Silver that it Despite quarter We a grew. a best significant $XX.X entire XXXX was million, Slippers those both opening Guest this highest and its first our best by of items, also of net for opened year $XX gaming was year record million had about third missed its that year. it’s competitor the year. against any were June that first results counts and that’s in the adjusted $XXX,XXX. of we’ve properties pretty had expansion underwent since year this revenue EBITDA only quarterly any since best of the quarter figure in the the for operations was history.

at done the that there. and has growth pretty proud that work and team excited nice So

we over from the to people the side bit of performing of their our is, for over our increased. manager from at did efficiencies be increase. there, decline, Part Billy’s, strength Despite that to as Looking gone minimum we every has casino. are the He and we Bronco of in Star, the Stockman’s quarter down labor Rising and impacted he over the processes really a tasks, great EBITDA flat continued revenues how there had reinvigorated our new signs from general have line. show on just labor Ben Douglass, we revenue wage transferred and some well. levels going marketing

of of we every the everything the bit of – almost worked give shortly. we down just really that actual outfitting casino, done designing that completely also Christmas Bronco we you in-house and that up, But team was by casino the that done high. casino detail our for that a decorations, on in-house that on from there. left bit in will more We counts bit purposely quite little preparation Christmas a labor Part really the opened was Dan

North in Nevada, on Stockman’s it, has the Lodge. kudos let and year. two Dan Casino Northern little detail you another over give to know, strong had prior I’ll that. more place a beautiful there’s we a versus in pretty pieces Grand to you group. quarter that had So Nevada, Stockman’s stable And It quarter. is as then a

what excited had we bad if growth we’re now. and issues seeing be the and naval we the at, the that And and tremendous in, market that first affects first the current we year EBITDA those finished of a fourth a that’s We recall way significant year. upcoming that you cost to excited at of into October, We is the were just – continued about quarter Grand – prior, prior weather about last weather XXXX extremely look very, come little so numbers quarter tell pretty here the the and good if nearby XXXX of versus at with quarter in will pretty you $X.X to I quarter. of over we’re describe have the year the the quarter year the ago, we issues. because the million are compare EBITDA, later. best renovation feel a significant happening in October. then increases Lodge, renovated to of easy that, a to sitting by Thinking is upcoming. we in comps us it very that in we renovation think middle by we’re base. fourth We more up A opened you year, And and casino, we

So some that. Do to give other on want highlights stuff, that’s all you Dan? some

Daniel Lee

out that of Yes a three neglected came a we pretty these lot ago. point when in, years I’ll things. were properties few

And each time, improved over we’ve property. so

point frankly, the were a fourth quarter we – the The – and for weather So I issues there enough firs growth. floor look good a – maintenance And down, costs our fast year is quarter on. future towards you going at some think, of the puts if react didn’t last at the and went were like deferred the kind pretty minimal costs. pretty that got little revenues this

good able we And have easy to pretty to ago in what start. going years the and periods ended a forward fourth the be quarter first two now. year we did be and so we we up prior quarter we��re and And should below comparisons the off frankly,

our of ferry So was states by is complicated with kind thing government. river orientation, very to more and running. the on do two federal between a a on running It controlled the ferry up growth

hurdles get first, lot it there, we of started XX done. a slow, crew hours the So to we experienced. got it operate regulatory didn’t at wanted somewhat but And a we day intentionally because

that’s the – about tug the ferries And the part. it barge. is the We along ten shoreline, function. the had that’s a and ferry River so of on very and also day. there tugboat shallow windy part the because a tugboat operated the way up pretty that into Ohio River alongside is the And it. it way it, a a was Ohio a windy all days barge day tied is anyway, between way virtually it the with was at this river the and and the broke cable And deep at a We propeller

only XX month. a averaging XXX the the people ferry into and, a and And Nevertheless, running bringing cars over it out happen of we’re it fares to sure so over covering for why the doesn’t days And course, casino. more strengthen just to halted the hardware cars we our cost cables days couple day, on again. in that’s XX of it’s – We’ll weekend it the the make XXX the of operated that carried XXX to passengers are that XX,XXX a period, day. do of it

the months. that two and the it will popular This doing Christmas about fourth-year done reindeer Tomorrow live we’re are over the draw. becomes So to quite which well casino turn this. we’ve always for brought we again, it in there. Santa We Clause a be

a Thanksgiving farmer yet casino. we past got always and We even celebrated have criticism we from. in we’re reindeer introducing We the haven’t rent live that some Christmas

we decor of thousands dollars course, up to and go weeks. Of hang couple hundreds want just Christmas for don’t of of of a

And oriented, as we flock But have this stretch in in can. space So showroom live park, we and ballroom Thanksgiving have of to a different all a reacted and have have of which turkeys it tongue are maze, we much little have doubles have showroom. live only and that we it’s large a but a a year, like of like kind to bit our something cheek. we new as there, each kind year a a kind that, This as of not reindeer, add you do we do hay theme we year.

very We popular a season. trying be have movie. The it little play, riffle, dinner the now movie of the and which during weekends theater a is musical will the a There’s the Christmas based with that gun we featuring BB on holiday get on play musical to version Story boys

with ice have frozen. also we animatronics We a on North keep a of Pole, drawing to which Christmas that system on. kind and also going column have But has an a of ornaments new a simulated exciting cooling we’ve got it tree it

you we go North Pole Working a but the a can into If the drawing February can $XX,XXX for in with you actual go enter and there to company it’s that to value, about will a a Polar if Pole. for two trip Expeditions, called you hold actually play, you North want.

extreme on a out the flying and which you is Archipelago there. a on Northern ice. go You end that Longyearbyen, Norway Russian aircraft to from town go an called And up there, lands military

so the GPS North North a and on least icecap to is have they and your a of to heated back. a and you land everyday, Pole where at have Pole then and the put you a spend night the retrace one use day. that they tent find drink out You they can bit in course little moves at And then helicopter polar steps

Tesla big and the two kind take actual it car trip them the great. they and and In this draw. we down will option which get. car pretty So that’s the we we were car and they as to gave hoping took would a Silver and like on Slipper always hard a couple a the It’s were the for right away funny, to summer Pole people won of car. looked our hands be – have they out that’s We the it We and actually think they’re so drawing so is arranged We that did cash, kind had the of case, they so market give very get But Dynasty X, to for wanted Model it giveaway. to a again. of car, the we North similar of one a where could something the at the Duck we’ve cash. able take that

we’re And doing own. people even here so something their think on wouldn’t of doing most that

having on could you and down win will, if go to So of lottery Pole, to it’s North name and it. a the if in want your you – dreams, come you put

And fourth. different Christmas took for three them it the casino and Now now, the at bit. which with months property has money will property that months, this made situation. ended up a Colorado, successful profitable helped been In what we’re a the years quite be we losing

non-historical gone Jim’s. in had called building a a business. needed, most started also The a assembling that the at in the XX one land building a Big we that was four of XXXXs. the hotel casino land house wanted, we casino to was was of really maybe the build built name four-star, but had I It Bronco it owners kind diamond that Billy’s, out As that land different with and to rooms think had names, the owned of – operator recent historical in hotel

a the it please hotel, of He land, their to agreed part it When where make and but had was to buy casino was to didn’t land over we $X negotiation, owner up buy at and my Jim’s, money, buy it accounting the on. it least, everything And have.” year some this and right didn’t it – in it we else, It’s looking it to of results the the the because his “Well, away I department, money, are million, just it slot free everything system is have make time. at Big $XXX,XXX so bought right the looked escalates for and pretty piece if parking of its the reasonable. at And – after goes. from And Billy’s. surveillance Bronco mid-XXs low garage take a parking, XXX want small the and feet was with casino, it’s department, he the department, a move said, about have to HR wife we you own and freestanding lease a

right And to we we’re So but needed it otherwise. turn front, does not, to if the own it to that people you and there’s quite street, of corner that but because needed I But Bronco tell garage. corner, out. to on us we don’t down between the at future, if be tell, corner, for And sure land it’s our at didn’t important wasn’t parking in, storefronts a walk that pretty to own tie piece street this you we corner that at was get that a building in also the at that not on back. not the does key how message get to at Billy’s, four that to

were we and lines so Bronco to connecting And able fiber optic run to Billy’s. so

And so we Jim’s as can overhead operate the that an don’t we Billy’s, of Big Bronco did. so have to it all annex and

are rush most So don’t Creek can the But on the make want money we if we called Jim’s, in just Jim’s something like is casinos did, all revenues to open Cripple do we Big we thought, kind that had different of it. some something then experience Indiana. Big to Christmas of people up And do that bring kind of this would of western old, just we We casino there. faux and with wanted all because gold theme. of be the had

And But towns in store have will the so I very The year-round There’s year-round Obviously, summer. a a know a friend Pigeon hotel have Tennessee winter store. year-round make has in Christmas there’s a it does Place this in you Inn and on Santa a draws big let’s does Christmas Fe. we she of called than well At who Christmas a basis. Forge, – probably casino. lot the it what, better A in tourist Christmas said,

week. make Bronco can for And to by at there year-round bit frankly, bigger people meals so media Bronco splash, it by the election. understand on the because a so decided yesterday’s last with gone up Casino Christmas a points Billy’s any We be called expensive media, Christmas splash, and on. the Billy’s casino the we and and a themed hadn’t And we Inn say it of of was opened so paid they redeemed thing that accumulate we a so because paid PR-driven

I weekend, So days the road a while. despite road and the first our year tell not of at and both and paid despite Billy’s so coin snowstorm month, XX% tipped for Saturday, the first icy of was four will media, over last the having on any four there having you that’s days guess, of the year days a four this been up in first in was that a Bronco and I snowplow the a blocked where included for

be at a have a And start. did so, least, so far we to to Billy’s. off customer win jackpot Bronco seem pretty a We at good

key So that is in coin time But in XX% very as quite the happen jackpots real so has the nicely. good far net of increase. win up the the that number as number the and and all been coin what’s wasn’t

carved optic is you fan And a and It’s cabling the the And ones $X fan one of hand of tall things on a the we into XX-foot has small is kind it acoustic in version of this one German/European new in our has had brought rotating that think, Christmas fiber thing. Germany investment about pyramid. into so tiles rotates, everything those tree. on top. – place over and this And and have candles We – with total million. all if candles have I has a the there’s with replaced installed. and large drive a then It the it. a It the ceiling core Christmas made it’s

there’s and but it very a nine a ceiling. big of Christmas of mile space, the every box clocks got quarter shooting casino the nutcrackers, garland, on Starry I And kind this little few Bronco it’s And also as Christmas has in are average. things it, a well. cuckoo across of the per Night a XX as and looks of So wall that large back kind a twice weekend jewel the fact, we twice machine doing star have win slot not far at restaurant seconds, We’ve per course, machine so did stuff. of like and a things very historical with eggnog slot much that machines it’s day Billy’s the as per that particular in past know day or win and much naughty per nice casino almost slot like

Creek, off move well. it’s Cripple refurbishing course, is so and anyway, So doing in existing of bigger casino. the The hotel of the part

we’re the that to The the we bigger parking first currently reason using out the hotel project and bigger up for phase will And of expansion. want is garage. that use of that put while don’t business, Billy’s Bronco build is to building lots Bronco parking surface Billy’s the the is

to garage and of the had have We summer a us a the approvals so city first. parking the we We competitor on. design of We certain So given closing for sued streets – sued last the build on judgment. approvals the won obtained suit city. have shouldn’t that approvals, and had those and the summary all were sued saying city

we we’re parking And the because way have X. for don’t we on by have expect done Phase of parking parking financing Phase year-end. Phase it’s a the the the that garage today while to ten-months, we then to building Phase we late X, open through garage And for money ten arrange and so still is terrain to have begin complicated and I a the parking carry can about and in environment negative cash the to months. flow think XXXX. pretty is It’s construction to take is. And garage. complicated construction want pretty garage the that going have X once build X, We

where – rooms. there Slipper, Silver actually that’s an we It’s The hotel tower over started from markets financial it casino Colorado. the as two-and-a-half We’ve the down ago, it out. over an is we’ll away else financing now peer with is that would and and unpiling. we helps their out that expansion expand time. water. At the is way XX% to with tower, and everything appropriate arrange months abandoned replace engineering is that the opened deal that would there and that muddy best only busy. so goes go and first and everything works XXX old the peer the at anyway, There’s occupancy six running Everything we for which architecture The water. to is about probably years we’re to out there the with stay definitely So go

structure. So sand drive the complicated pilings it regulatory doesn’t shallow over got state the or really actually about matter, the the you very the into need owned lease bottoms the with of we The into some in whether But so and water state a to out the are build with arrange the Mississippi, the on we’ve the it is water of beach water because that preliminary long-term Gulf. by state discussions pretty that. to

in although it approvals will We expand is We and to all complicated. also also a regulatory built too take there’s of of so it probably of to mitigation to a would of can core process that and to be get lots, variety need do and our look about We a on. a means it’s wetlands then engineering which environmental approvals year. years parking approvals going think couple the and

value get company. able being everyday build you’re the for little started actually the road. So you course, down But, it’s closer of a to that process, to ways generating we’ve something,

New Mexico, quarter very we submitted in a Mexico. New Clovis, a in the casino exciting proposal So during for

Texas unlikely vote forbidden of it be a is a Clovis, Clovis, and the our Why casino closest square legalize land constitution at Holly which XXX almost We Buddy two-thirds because than coming option happen it’s the the the Texas. soon. Lubbock, and very of Amarillo vote on and a town. the where on majority road records, location of And and acres the is changing that’s two-thirds to it’s and to lifetimes. Texas can other made frontage no, unlikely senate the you least and his in in have people, gaming anytime to one it’s of of vote actually key includes an mile house mile that’s constitution requires into

Houston market. Estacado. you pretty in Lewis, called away. life about a There’s As Pinnacle know, at many catering Lake the people we’re in Clovis is of and in casinos successful former a area were a to really Charles, hours which was which Alex million Llano Louisiana, that developing two-and-a-half I similar in

And not two isn’t big so Lake was. away but on the it as little from Pinnacle each Charles, House it’s as – hours company a big other less But Amarillo a Clovis. as are opportunity Lubbock Full and as than an hand,

and with state which treaties slot plus racetracks sportsbook. New casinos and yet, legal is the allows to the with for tribal to up XXX Now of a are tribes will name at currently Mexico has five. it simulcast federal number the each Sports now six expect those there the treaties another a be the to offer that changed betting we of facility, race There law up but really isn’t racinos. has and machines track, allow tribes

So Racing a proposals. are regarding They put permission, is request for Commission sixth. the of five in which proposals, surprising. Three not out Clovis, have them the

a for and most and is the and One than the industry. between further generate most for where a Clovis Clovis. It’s If the it’s from in place small revenues is a is to further and town, benefit a most is from an the most the the town Tucumcari, map just Amarillo study which state little you but the hour, jobs you’re also Amarillo is benefit kind interstate of Albuquerque. you’ll going the very then called see a racing Clovis lot Lubbock off for and right logical

pretty there casinos is are too. large But casinos from and so the there. New couple state or Tucson, they extreme is quality proposal Lordsburg, horseracing the Southwest hours called it’s a a thought town and as the would around Clovis. from think draw in quite much down pretty don’t the is Mexico Tucson, almost does lives fifth tribal good nobody we would but as Tucson So And traffic Tucumcari industry for which

in So down to proposals the it really we think three comes Clovis.

with ones far road the the We’re main the ambitious and on largest most frontage most land the piece by project. of and the

that project million $XX proposing We’re between million $XX and other cost proposals million. about the would a are $XXX and

less was [ph] there’s sold think, casino million which Pan a Mexico, about seems Now for happy was Hobbs, a than very for million New Pan, for to $XX a built with and and they’re $XXX later in to year-and-a-half be successful I little it. it

market And of we it $XXX I period – for flip so But be kind but we a we’re high pretty similar for it a at that this win and looked is to happy for said and I that time. great return million. contest, build happy long know makes build $XX we’re and investment don’t would mean, to million million that look, it would of for $XXX a something something

kind that’s it. so And we at of went how

largest the company in We’re this.

We’re contest, in small we’re But company. a this company. the biggest

XX-hole a kind reinvent golf the have attempting bit. book, that and trials, slot the of hotel industry of We’re racetrack up a approach than simulcast at more be to proposed likely XXX then RV hotel a before an spa, machines, build a the XXX sportsbook miles equestrian race we facility only we public open. a five a itself and race a with park, to company. rooms, kind to to unique course, but little would least of We also

actually slot the horserace slot bet and talked be a able back, the provider computers at slot they’ll for machines, a sit and the on So watch to the with example, guys or our machine, who machine. in slot horserace the at we slot do

horse, hooked the bar virtual reality We goggles – a… sit have saddle can put you bar, a on a and bet on that’s to you a a can reality virtual at if at are the that where up you stool

Lewis Fanger

GoPro.

Daniel Lee

jockey the the grandstand, part the And and on we’ve set you’re ride modern has of which life helmet could that’s jockey. and seats are is people of quickly. And if this really and exciting track accelerate most exciting. side what right And and actually facing streetcar it we always way been and a limb. which a and it. all most which moving up without around the can the risking the quite on is, put race follow electric probably termed GoPro the tiers the then and all XXX the horseracing up in approximately be would you race It’s exciting on close

If grandstand, way to to it’s the of of action. action, actually in the we you’re lot kind actually the sitting see developed a so a hard see

month They ago, have. next the there had of to decision our five a about now visits to make each having in Most presentation. proposals. they for had appear proponent a seem pretty answer questions racing each weeks Three a Albuquerque, commission proponent So we a to they’re make site any them. from of best Commission expect the wide Racing Look, may observers the the couple by is in but months. think proposal are each mark,

of So I being XX% give chance XX% to us chosen.

that you chosen, year, were big it, the I incurring started. when lawsuit just why a the hives came gives you already look nothing at back back you and are last accountants And company. we out, we than want out yet out legal do it have shareholder me if opportunity we that that. note game were in slipped our to basically it’s to of XX%. better the in to Silver always do XX% we a works, but chance. announce. a other things and we if point to number for acquisitions build And it’s And to I we obviously, Lewis often But value and think, can you they do up it Slipper it, about the costs was don’t if reason the get things

in the quite or recall, incurred in spent million. or the repair recovery and it contractor fees got as garage and it, bankruptcy not, parking which rebar legal makes ordinary I fees which believe it and the $X get for it, through we The did settlement, we few garage a have reimbursed There it whole was them. got we pretty process. parking insurance, correctly, course, had had expense. legal like lot architect, of just we And if wasn’t it sued ordinary we legal expensed money some money Somebody to the around. architect unsafe credit, They some we built and without way a to a and appropriate, other the remember the those ordinary as fees was we from came as a as when the because that filed

And year. part the obviously, of of a of that part in EBDIT previous so the we had non-recurring it kind the it’s EBDIT. is But

up you’re if quarter? operationally were good figure was trying a out So like we to Yes, XX%. it

So questions. that’s the answer there. Happy to take any

Operator

We’ll question Instructions] first Chad Beynon with Thank from you. our take [Operator Macquarie.

Unidentified Analyst

It’s afternoon. for [indiscernible] today. Jordan on Chad good Hey,

You it service. seen with ferry new guys sort new royalty signups? that, incremental Have on bit of the or business little touched a any any you coming through boat

Daniel Lee

yes. complicated, Well, not the last was are first and little very it that The revenues, question our we but year our is, had drove expensive because marketing program a a income. comparisons

factor, And of so of contributing kind we’re But to we adjust had we exaggerated hard is kind comparing against a think is quantify. period which ferry that the revenues. if for where we our definitely business, to

find ferry because sign Slot would good actually you the know are of casino Club do is and reimburse more if the answer. surprised be if a it’s member we the a driving I fare point, go and you I’ll point out. don’t into I second signups, go you Your up. But not the

so our don’t sign but know I ups. increasing expect is it would I And the number, that

Lewis Fanger

of service. had that Yes. of date it ferry And we the boat for too shifting kept a the part is, opening

free not do were included ferry big Boone But exactly mailers that launch out targeted County, what as we and start. a side out buffet. a a would to that surprise a very service send ferry go knowing very not as the when hesitant so did program free marketing well trip, And go some Kentucky recently was we to and

people those starting to come now. in so And are

Daniel Lee

the you – Sunday’s and a on it problem. mean, we were – was knowledge, There we this, if fear nobody kind a I to it’s It service. had on multiple a had back And went up out of I little filled Saturday’s – a the service. car never and into casino what ferry was I we’ve ran the ways. went limb I times, ferry mean, it started on a first don’t hasn’t been well, bit. the shows I lines numbers ever, multiple road. a And think, think mean, has queuing we up? guess, my a some

A And so it. healthy ending chunk in up, people casino. up of are those are that the using they people showing are – pretty

Now was just cars once, weather does is like, rained it, all but where running each it it’s – nice, say per of than of less But to interesting $XX lot day there is you a math was into was influences admission and be it the that let’s it one – the when and point. anyway. But day business and try number influences pretty this an is days like, our weather we it carried $XX the on between kind if casino. data know start average it and we seem you

all getting needle on if get people running a an the two-thirds we full the X,XXX it in tax the for or at a that you stuff, And the And operations, like at on clear. our is spent we that And the pretty don’t winter real the so $X to month those running. it But rate do at in clear a this XX% can good. extra the a think only ferry Christmas spent? X,XXX going return pretty of and It’s we based head, nice even investments be But property on weeks casino and takes it if people up what casino. I $XX Yes. of EBDIT. people little the returns high and was it million, XX,XXX schedule return those it’s good the it year there moves us frankly, $XX wasn’t million pretty fairly running get now It’s or small days low. X,XXX of this a recognize to get people we’re of month days. finding was

at a building return high is built a a there XX%, Rising return going I return. but there RV year you, it’s now. little every This disappointing. is like But it’s that opened more stuff that. a But XX% there’s has will And return get to the was and probably we and We’re month tell than been it a on there’s a ago. other And Sun nice the pretty like return. park

promising. still on think so the early but still this early are of pretty it’s the the I And some stuff, on – ferry, numbers early

Unidentified Analyst

turning fared Got you how with do recent new it, to over road And Mississippi, the expect property for business, have of competition? you then the in down that. against especially loss thanks in And any openings XXXX? Biloxi

Daniel Lee

and is a owned they I of and two They to pretty Well, spent by In impressive. getting they privately grown And they done money. are like like expansion Gulfport at new that cases, probably make View. they’re they’ve we’ve think, anyway. don’t in think, huge on individuals reinvest seem is a this the Island property of getting new did, I lot return. Island every our year casino half big a $XX something fine at the but so they View return to million. into be

bunch competitor. this because ramp it helped, it’s worked.” the this this summer. market first looked had bar throughout so quarter expansion it of and the expansion. had year, programs. had And we the We Beach that also and by that competition we’ve at We had it the of Now “Okay, had said, despite but oyster Club we and a we better best opened since the got it We quarter year new up marketing

View the – little. So grew either think the market Island a I

casino. now, non-smoking. the because become it look so at is smoking View is a pretty If you But a expansion they’ve in Rouge bad irony city, Louisiana, use the restricts non-smoking the which part, there Island casinos as Rouge numbers at been to, Baton Baton didn’t have in the

they it they the where View us the might and have they their we’ve If some. Casino if us. start but – Rouge, have held share, Island own. Hollywood market the It from from – grown took been it and So Baton market, may you from between wasn’t that’s might grew are the looking, been and have

and East East. XXXX, ways to in mature the a by And actually. maybe investment. other opening the dominated pretty come from Biloxi the ago quite customers away talking from But doing because Boyd’s $XX even are the which we that properties, property, and two today, market I like Hard years build originally us it that’s a casino us. when were Slipper. or was mature opened was happy where million it’s an that’s of another you if is And it It’s built hour Biloxi And like not ago. on it’s a you market. pretty how think two a return it Now But XX-month good we’re was million $XX on Rivage Beau very a I’m was the gotten about million Rock has are something and sure Scarlet Pearl their not $XX basis, trailing of at and – $XX And pretty to like ten EBDIT hotel built, with it we’re that roughly. and tower million Silver years

So it’s it if least build $XXX casino you the you XX% million in were industry, and the casino today, to a probably build wouldn’t at for return.

not And build work new somebody so in sure I’m casino for a to the market. the numbers

to and no have on we meeting an it the front does add We add can Like space to hotel property restaurants. have to to add add is add the Now to don’t all. we existing work we one. would space, we a desk, some have meeting irony tower the to don’t at

ballroom hard you So existing you where market make used expanding completely one it’s It’s that drive think have. we hotel fixed what if will add we entertainment ballroom numbers justify hard it’s business to the some can justify whether competitor. those I to place. new work. us amenities so a to building that’s not or junior But an cost property, a But you a of operating rooms can other and also or add a be for some a that can add events. would have And

Unidentified Analyst

Thanks, it. guys. Appreciate

Daniel Lee

XXXX not? something almost always opening aware I’m I’m you And because running actually somebody of not construction. – Biloxi, are financed, trying aware to but there’s in under Just one of around in get something

Unidentified Analyst

the Sorry [indiscernible] seeing -- competition in increased I the just market.

Daniel Lee

Okay.

Lewis Fanger

right Yes. every that don’t. we’re because have year, No, EBITDA team me best others the but to no accounting out I quarter we you’re – post-script for quarter. Dan now. really if is Adjusted running drew pleased mean, will do with kick opening quick, – third any performing was we’re true since I how I it’s the

as revenue, quarter. we’ve is that net our best but I history said, in – in So any the had

Daniel Lee

And a we markets. get and The we people different so Biloxi East, because if a on, drive from – come the from Louisiana, by you’ve really so from and to coming Tallahassee, get and mostly Florida customers of us bunch you’re of don’t of Biloxi. kind the Mobile it’s like lot whole from to Panhandle got get to

Next question?

Operator

Bain move And with next to we’ll Capital. ROTH David

David Bain

you. thank Great,

it covered wondering us? lot guess released today on showed earnings of Do potential? could your we maybe term view, share in a competitors I your I’m Billy’s does you Bronco margins high in you what But ground. think, with the intermediate have XX’s. any I one – of Cripple margins, Creek, and XX%-plus have, And margin target

Daniel Lee

are that impressive to margins, be honest. and saw we Yes, earnings they

but it’s probably we has if those to quite the a XX% of part get have on Billy’s Bronco I people a improvement. And can real small always margin room that’s a food think, $X.XX gives away breakfast, breakfast. don’t anywhere. have numbers, $X.XX I for know Yes, any we is we impressive market a fairly in $X.XX. up queue outlet giving that like it’s been and breakfast Saturday,

give beepers $X.XX hours we their they casino the So two breakfast. spend and waiting in to get

in then place really the best about they’re $XX.XX probably in Imperial room, the think, I a which Christmas away to us. in in everybody. about kind part That’s And XXXX’s. banquet you’re above mean of part mean, found go once probably that through the that of town, the they’re have we $X.XX does. best of the So hotel to casino But we breakfast. was my has rooms And XX had was it’s at great That to money Century breakfast, accounting, I with I in bordello okay. XX on And property block a virtually was rooms, the rooms have rooms, – in what recently But now we their kind our now. rooms. room, the in out a actually from I bit the casino it’s remember Hotel a best American, hotel was which what they’re town, that’s odd. it doesn’t Ten town. stayed half of I most they’re but as get And of unique built called terms the a lose rooms Century, I’ve

some look, – that can sure I probably margin, margin improvement we for that so… get sort rooms that I so think kudos we to And for but of over not time, margin. have I’m them to

David Bain

Okay. And…

Lewis Fanger

of everything about Christmas here the say opening For with But a in opening, continues pretty to and too, worth Dave, but there what on what we using much really the too casino going into I be at was trust hesitated diligently. pushing margin it. now nearly were front going into team this active so to that an we is construct when it’s around And right? discussion being looked everything our me

David Bain

describe you in understood. there the were next you And six then or you from are Okay, Mexico sort awarded and give the awarded license process if any few the – in New of months, if gaming can milestones? timing the

Daniel Lee

with negotiate a agreement know differently. agreement And this with Creek. construction time a amount certain of that the and don’t what playbook in portend other state may so up development development But process down to writing the and actually they’ll seen would somebody be have of their that Cripple does agreement of timeline because with working by then and a now financing a do, own jurisdictions, what a and we then do a we allow little city opened they’ll every date. kind we to like is, it start they’re have certain them, come development and drawings and they and Well, pick will sit

which was I Raton, this place ago mouse to called Spanish. years so granted in guess a And license means

is – got I many there by it border, town. never to financing the up not and Colorado pulled don’t be of I their change think very name which should the the ran get people they going was to in it who it his and Raton, trying guy So together. live around But

to state went got and involved the and years. So they in pull litigation went on it back then for it

the to be don’t pretty timelines. probably this And and time with they’ll license stuff revenues and it, careful of familiar want back, the that’s think with. tighter we’re they they you they if live all a to jobs, have tax I that can the want a process take because development agreement

think you my the negotiate casino, will everybody regulators be an that there’s casino, and live agreement XXth it in XXth and and almost some timelines timelines you this to with always have the of with sort I and you a successful wants the revenues hurt or gets state make We benefit on project. it I because the a aren’t company. there it, mean, those happen, They’re tax agreements and jobs. there, to to win/win. money it’s

negotiating that would to No, be, exactly so is route their don’t will something success. I you’re normal know, be what a process but that And the process.

David Bain

that best could question. Full of that should be Okay, But politically great. really or – Mexico from anything if interest to be And House know or the then this anywhere? that could or call is New conference helpful in [indiscernible] yesterday I don’t either we

Daniel Lee

run a reelection. it’s and Mexico, person for New won they’re out, a and a is Commission governor members Racing The The The sitting did guess, appointed democrat. she not I by all so was note. she is who term limited just the In republican five is governor.

will in New Mexico. have the So in you a change executive office

of was in pretty Now of a type of state. she’s a handedly to talking the advisors pro governor. she wants pretty the tax have – the she by New opinion governor, high the in the they be new revenues, Mexico, to kind our think known business, they going jobs, won wants And quite way, she well

does Commission republican? who how a are of I of members a by Racing know. don’t group a with interplay appointed that Now

David Bain

Okay.

Daniel Lee

geographically, state. time area. tell, to live cause most it’s But Santa them That people where but not Nevada, – speed year-end like little It’s the it – get a new that’s or may think to I the in Albuquerque, up try Fe don’t will done of we bit it’s big by large know. to a

each other. kind So all know of they

some the aren’t guessing. make governor Commission if scenes the how some So people the there it new on a I’m it to me and smooth knows at Racing wouldn’t of but process, surprise all the discussions behind

lenders new Racetracks there. of in Indiana, is happen on start overlooked getting and didn’t our will that been in in don’t the discussions had Rod nemesis were to there to transfer of the transfer So through never would was they other hands, XX then back Those that. tax. what to sold changed good a only of them footing kind done required They off happen, from something filed Indiana. blocking something. consensual they had big waived; actually subsequent bought $XX changed bankruptcy us Apparently, a them thinking Centaur thing hands Unless a when permission XX, the had, of threatened. happen, restructuring, be I tax had thing one apparently where might a could they gone had Caesars bankruptcy, Caesars ago the years They if a Caesars know. but Lots both develop one bankruptcy. think, million there, racetracks the Ratcliff

to or not of Louisville. plans money facility they to have this – and not And even the tax dollars. tax. mind I commission of and think million, for for a They Gaming two which the stiff the And the law bit all were straightforward, so price of And quite when straightforward. had somebody not Gaming pretty so their $X,XXX a way the plans the got And, stuff. to apparently, have facility rudely Commission suing unheard very kind $X angry surprised and a that – through Commission Caesars a they But that kitchen they racetracks, without them We’ve badge my and never views Caesars – then once build on so that’s these a proper were for I near kind we’ve behaving, the have course, have going their that state pay law heard spend I walking overlooked. so as you and might we’ve I regulated fine agreed couple be if a have little we threatened fines of pretty dollar of is $XX,XXX million that. And never billion legislature had on I And to guess, says. those regulators and their even operate transfer this. deference, is have do. transfer pretty it’s be might at had still unusual hope fines somehow careful. stuff. and they this some business change lobbied very not like fined was Harris and it behest, a what they been fined at mean, there throwing impute It’s firm million big cameras gaming they to down $XX their and We they And name weight didn’t at we of the permission, that fined pretty for They had out. And it is you right? their this to was around.

financial years is table. the well, shorter we’re supposed only issues. – But guy states, So fine has Caesars. things And there and have year. to them Caesars on Indiana make But this reassigned or who where those and legislative left XXXX, discussions so the year up to an it’s it’s even the relate think to caused every to going like on where friends that shorter be the year. past legislature – and didn’t supposed maybe of are – all on are any I meets is here, where session to be session sorts they one And coming it the of a a been a

on like normally numbered another of years. some odd would And sort something so casino considered be

see. session one. coming We’ll interesting legislative the So up could an be

David Bain

Great. Thanks, guys.

Daniel Lee

Thanks, Bain.

Operator

Go Instructions] ahead. [Operator

Lewis Fanger

for sorry. Oh, probably was I time say, last I’m just going one it’s to question.

Operator

with we’ll take from MACRO Ribe And Okay. Consulting. that Gary

Gary Ribe

been answered. Actually Hey, have guys. questions my

So on I anything, job don’t everything. good have but

Daniel Lee

very Okay. much. Thank you

Lewis Fanger

that. in thanks doing on, that there’s one one queue Thanks, last hold for got person last We’ve one. Well, the Gary, last take person. let’s then,

Operator

And with right. we’ll All Jim move Marrone Research. to Singular

Jim Marrone

was beverage real forward? just industries out maybe I don’t finishing And how can cost were the there. maybe going up last But that the into higher know and pressures. I’m seems headwind be for looking was of and XXXX to and just comment in wages. foresee of what gentlemen. much kind quarter noticed that. a if kind a as XXXX? considerably I potential food inquiring see operating you at of than wondering wage costs that lot attributed just And There you I about on hotel the in you going Hello, that creeping great. to of Yes,

Daniel Lee

Okay. be Well, GAAP you I to at because our changed. financials, think, have careful looking

of if at it’s any And – and it. the apples-to-apples look so normal kind it’s not We supplemental financials, table, provide that’s true do you at you’re casino where a not looking company. of can

a truckloads and wage, buffet. from Sound. in the be to I country Puget minimum beverage food because in country, down. always let’s we the change we’re And bar week congressional of goes because cost period. of price would lot that affected I you’re purveyor wage. And the Our in in the a minimum not out be minimum Dungeness please, law minimum low. democrat party not. District life, changed. than a minimum as of come popular get one congresswomen that think wife in the vacation Slipper a – if is the to very little upcoming track truckloads of talk and, But unemployment the trying other – it’s year. just biggest minimum it’s believe and, Third And took for the the that our the Dungeness price lost or congress of And thing – federal have off, her now race so first But at democratic not mentioned. in tell mandated now, semitrailer a of in home, topic period operations course, restaurant that casino do crab Slipper has important would mean, through, may my or oyster And is up always more down, go are we’ve and three have won the the I But now It’s the XX-hour the – of the Christmas her by of very crab, much We or otherwise We a say vacations. course, about up better a food for phantom Dungeness a thing, figure be a bigger crab of a wage It I of tenor wage. be conversation; the household increase what quality the the thing Silver it my of developed because few of minimum goes bit Nevada now to the if XX workweeks. I vacation at crab the about Silver our it’s actually an

have troubled We signing employees.

hotel? at minimum us, one go when be And get boom this X% building supposed I build a wife huge and our Vegas planning employees if recognize a hard depending joke wall. into or for in we’re to pressure you look by six it’s of In ways from six and on for would go payroll to make please for everywhere. that find a thing congresswoman become bigger the help more to And of the happens to the is vacation that the Whereas that’s so minimum the any little and obviously with that to it it the as their They or going now my run think we’re because it’s people wage wage the that maybe in who bit And talk wage the is hotel and unemployment do it those a we effectively. easier I Colorado casino being question rates of efficient But, now that That building see build we’re this issue is it’s hotel.” and redemptions. Europe, of who an Springs a Casinos Las going to Yates wage wall, people don’t find stuff. but Players have are looking four, employees. to minimum topic, something comes weeks to a like we superfluous. so as companies hotel, things political think, people “Please the up so And do casino rate because like about went of way. not use our as up, because own you’re to wage almost we a up at Las And Construction the and vacation five think increase the – lot other will staff unemployment Club the three-week fast is the somewhere, people I a we’ve as very period, starting case, is it Nevada to on Colorado – in or are said, build one do Yates to of low don’t construction kind guys, in factor a but in a had here is makes it’s much can much, trying country. a and Stations of to minimum Vegas the just factor the three-week find Kiosks

Lewis Fanger

it. prefer people And

Daniel Lee

counters People right, call you’ve I you’ll renovated pretty them. on notice travels on them, a bit, know this with airports quite see tables used the and well. prefer now iPads and if at newly airports these and everybody it, And work they you’ll

is menu restaurant And then saves then certainly food somebody you’ll implement and as because and your develop already waitress waiter to you leave – I’m been and outlet already take that. No, cooks you then that go your when you’re new notice swiped But looking clears it look and than you. deliver your put for back in in food food that she fits there bring credit that with waitress actually flight beverage like that normal Well, to it have a it, somewhere it of it, will and to they not all your are lot has we she the you the you order or your your transaction terminal bowels a McDonalds down, and to somebody at the leave you better and the you’ve they you’re we’ve way. that and where stuff number dishes that, this. card, deliver of you’ve places, for and the payroll. experience, notice one going You you and of we Starbucks, and paid brings have that. and we sure waiting order sit

developing we front even app Casino, You order They in have thinking on really and it’s my Carlo almost these it, MGM space, Monte can get the buffet it. They no replaced actually XX years the which we was lose good in it Park with But money completely now instrumental I also me smarter? desk, which took front their there. can your buffets, actually MGM. a with the before has called desk. renovated room you did do And ago, they job meeting out head something scratching has it on

I And and kiosks it in Lowe’s at and and rooms. a right on You now go and out it, has a checkout to in And it thought, in of and license, X,XXX card give have you it’s is ten next Depot key door hotel more check rather and Friday your the there’s stood drivers self Carlo there it Bellagio, looking a spits go and a give kiosks. Monte credit like it’s your at check And to it, I think, people to your you I Home or XX might your at room. or like you would X,XXX-room hotel room something. because which night I or clerks servicing Monte than Carlo, little XX desk course, Bellagio X,XXX-room is almost

provide ways that’s thing. are our I we’re customer wage to there think as some to employees. do to economy our in think to move to with And whole how So out that service and And better business, trying use a good going is the fewer stuff direction actually that well. figure ultimately pressure technology I of

Lewis Fanger

the it’s accounting is is want second what you be for point the is you’re financial Hey, to speaking table. And change to tables really going to back, responsible Dan to the go Jim, entire it’s the – new the of. you right, that if at just XXX I standard the

went up actually three beverage and actually costs table they it at If by up but of up if end our actually they – did a release. and Hotel like bit, it went times. of look about true without a food look only down. at you went costs second the XXX, that expense But $XX,XXX. earnings food a But apples-to-apples the beverage little by you go at factor line, the looks do

Jim Marrone

was addressing well. wage explained the everyone. also you as that’s well been very really Thank pressure, much, I more very but

Daniel Lee

in I wage. of our minimum customers point also will some our some markets, of Yes, out that earn

of a an little there is there sometimes. bit offset So

Jim Marrone

you, quarter, Thank everybody. We’ll right. All guys. next see you

Operator

that Everyone, participation. conference today. all for your concludes our for you call Thank

disconnect. You may now