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Full House Resorts (FLL)

Participants
Daniel Lee President & CEO
Lewis Fanger Senior VP & CFO
David Bain ROTH Capital
Chad Beynon Macquarie
Call transcript
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Operator

Greetings, and welcome to the Full House Resorts Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded today, Thursday, August 6, 2020. I would now like to turn the conference over to Mr. Lewis Fanger, CFO, Full House Resorts. Please go ahead.

Lewis Fanger

afternoon, good and you, everyone. Thank second Welcome call. earnings to our quarter trading it I doing the day. apologize for during We usually of market, packed after go after day is but market. today a it with couple our going as peers you know, as security that conference you laws. that making call we harbor safe statements today's under forward-looking always, the before contain provision But begin, we're remind we may of federal forward-looking to results anticipated also like remind these could results materially would the actual you I company's the differ from in statements. that today's that results. see of forward-looking under statements, for caption, Please press the may release the discussion risks our affect Also, non-GAAP EBITDA. adjusted make we may reference measures, such to as

a For said, as conference all fullhouseresorts.com, the And where releases those press that well our see we today's filings. with X-K that you issue. as to can Dan. call website at find ready we're please earnings this as reconciliation And release, of as broadcasting various of well SEC go, the lastly, we're our measures, also

Daniel Lee

you I and And our have the Tahoe, for week, but of closed River this, very like be or or let an And June. fires sometimes Okay. closed property were to was say different. unusual half Billy's bear We've X the parts hurricane calamity, year two of year, the for have was half Creek. open sure, be could Star numbers were because, months. over Colorado. damage, And because snowstorms, going could releasing in the frankly, Rising we out June the step each might every Cripple pretty something in all Bronco down there's flood our course, extremely properties you had place. we down odd open, There down is. last Gulf shut never June not and that the it's mind had are two, It's into the different how of in it. for phrase challenges, It's if you'll numbers, it We've month And Coast. were have of if sometimes to only for leads that half unusual casinos the one forest even quarter. the say a are have two, Sun you your that year, but good week for have diverse. quarter. we or we're were quarter. once relevant. numbers in took And a a country, that full at road are but might month Colorado or the Rising it odd a time. casino this Ohio And a it this shuts at And there's and everything or at have we're of quarter that they're road shut actually And we me a for to small, three mean, it a open in There that snowstorms knock at least the of for to

I'm worst the unprecedented think and is And behind this I And sure situation, was really that. the hope and an say could that of so us. economy much

and after thinking efficient. for and properties closed. as on And do down so we and of and got significantly open a put Katrina three handful Really reopen and only my we months, reopen of L'Auberge should how our we focused we how marketing we as page more of a were lot a when be how than and could efficient be were earlier we went, how when time closed about better in of a and were the shut and an on. did we Louisiana. we we took more Lewis couple could we Now and into Mississippi more employees, Pinnacle out career, months, kept in And with we when were we efficient Rita we we at work

kind a fresh cows the everything, good take start, that. a we sacred opportunity it's get So to of of did and reexamine rid and

to now just put So in perspective, Silver this Slipper opened in was the May.

was, are So slot the but history? to slot lower. XX% lower. has you And it did month higher, table month machine, of XX% that, same go month other June. as that X% Certainly, it months. so It or year. the for only And was of open every were worse was June to it its which machines. full revenues it you when payroll than half yet EBDIT in feet table $X.X as each minimums limited it people that many was the in was The result, on. marketing the we the casino of And the Table and as meant was off the its sometimes are of the every best open. apart, almost at prior to. The higher third and slot used was expenses not the we X as number XX% And one be games, a operating machine best is, are had in million, did

Lewis Fanger

That the best in history. was month its

Daniel Lee

in what means half concern only is our it's and despite table half month. year quite revenues they was Bronco was and of closed. only Again, None Best chips its day our prior win of that small month in out Billy's open it being game slot pretty might table only the transmit per half disease, were slot June, XX% up casino not that table part approved bit. of using the its was for Despite month, Colorado which XX-year games our the having business. open machines. a the a its history, of games. were half machines has of

about the open. was, for XX%. expenses we we our sure when payroll of and Part open, period, down down were Our exactly were marketing was XX%, we'd that weren't

only okay, But almost that's XX% about was despite it EBDIT and month, year. games. operating double table they the advertise, of to only hard say, was half it X of all you open, it month. they half sudden and similarly, it's what machines, about open was year the weren't, weeks Star, slot of It's for its was the only being opened. open a you this with can last Rising So

Star for XX% period off was from The of time it over is was expenses about its year. up, payroll were were they were machine it revenues lot. of revenues day down Rising per XX%. So it's are at slot okay? year. But was its what it Marketing the remember, month, what actually half revenues a per half day up open, the last last So were closed per and

about half on still EBDIT Casino its is XX%. revenues but Less A day than its games off the a they revenue a open little most basis. fell it year. was so the challenged half table slot Nevada since month, And revenues are issues last XX% only XX% XX%, in casino And being and open were down despite expense Marketing from payroll open I'll down per of XX%. But down most opened. of up month, talk machines, was the is for more the of and got minute. in month. it's Northern

of and operating the entire with rent real we'd what Rising our was points a half at made utility despite So XX% X month and in costs June and Overall, estate margin made prior that's month EBITDA soft of last carrying only of Billy's over up taxes despite properties, so and an we and year, revenues. pretty year the operations on, Bronco Star.

August, into tell as So continued early trends well. and through a have July was month July will -- those roughly very and you, I mean, I speaking. strong

couple A gamble, adage I've not that opened it to things: slot this? is of we talked said GMs, never our is, we about; machines. that people conservative, like why Now proved one second, forget an always

the slot XX% And revenues. place, if will more you not to add so machines, people XX% if add you more will. add XX% But you you your in

you so slot revenues very with half same occupied. see walk into machine every do how the can machines? Well, you -- any slot will you And casino, rarely the

as we're don't than run slot at forcing they casinos on so is occupancy more New kind go doing XX% but generally machines, of which well, think, slot I And all to, machines -- people even in to nobody their might above XX%. on the time very runs is slot high peak like at eve which to in machines. But operations, at or occupancy L'Auberge, normal volumes XX% XX% Year's get Lake Charles

shut of slot actually need bunch slot So a hurt you of you to had as up down We machines. a think. it doesn't little call. really the you And in many might fact don't a wake as that machines, as much fact, bit

We have -- slot expensive. machines are but

and remove if And better machines. the slot feels actually casino looks some so better you

and maintain Then is feel gambling? on that to crowded country just fly. and people some who So sharply. doing to safe the Air if have are why there's just people wear coming wearing are a are plane, we out floor, that even not things. in the down few a are to distancing. hesitant masks social but people doesn't Yes. Certainly, dead Well, in mask. somebody machines It almost getting sitting cases, always want a travel on doesn't

are fly. People one that's fly to so the of hesitant And here. has. to hesitant people certainly, are challenges And Vegas Las

they like to of think terms I to to third visitation And people to do moment, Las Las ranked some of in Vegas. the It's Vegas. fourth our customers extent, so in are Colorado want And States or come fly. at don't

machines places. And theaters. the have you may same home I back used that And us a and is we distributed, I helping going where proven have, year to then that maybe never to fly hesitation slot think of widely home. extent, effective, competing few has we to the the is to entertainment back casino second, air closer out, gamble think because And until out the we lot be to type they the a be same travel, close before a we isn't There's that's to movie get of to no used to there. games. in So a vaccine some there to that find and get

can't be games theaters. aren't or events. go and Can't You some movie sporting haven't to on. bars football so limitation games and for while, to a and bars. can't to There been you states, live on In the hockey go to go likely

watch until even TV recently. on them couldn't You

TV. Now you can watch them on

So we coming Concerts. competition -- there. we I guess some have

to to events. theatrical go Can't concerts. can't go live You

a to that to go was kind the can't You fun. of restaurant extent crowded

and casinos it's have setup. I for face your we and our come we can we're socially cleaned. creative that. Bronco when the on very the is think slot realize safe distance that you And temperature that we been on print So -- a take and take environment a machines, about says pretty example, careful it's in, a big slot machine and post the we right put that Billy's, people

machines, change front that you it employees that here's can't And you with have machine play so sitting notice, it, machine. hey, You you card thing empty really the remove doesn't on in our an of play that if you, it.

So it down. disinfect to sits next we and be so it, disinfected needs the person

of that sponsoring bank can't room. do. not the in And today. and that everybody if VIP like there's give normally not so building. be entertainment was can we have are try a not in concerts. tournament, the has distant don't do it do a socially the it Konami played machines events that the to that you're to one use obviously, system you're from not, be put And everybody your you reasonably tournaments aways stuff is that same now to be allowed that comfortable practice can to extent a Konami other we type at We, to of We're where system spaced people. for at but crowd. have you We're of sponsoring not throughout machines we is lot We're where sponsoring a everybody We're that

database, to And benefit never But will so like a and I within of or offset going over XX benefiting and it I more you, from think you the little or seen us a that more people clientele coming and new that to over, are or a we're XX differently, casino we're who tell while. younger or measures that XX%. each but than if often our the competition. off older revenue to say And more is off, for and lack from group from think we've XX% that by is staying that longer. we're gambling seeing before are I

think And and I a to that people will there's there to back. to us. whole older get new get And trying vaccine, so segment we're know there's the know when a come

when is the little cite Certainly, And it's health remember, probably much thing. is main the unemployment for think people And you back you're for people generous health that's also But health don't if think I and so hindrance companies sometimes. pretty has expensive. realize insurance, And been got help. you about on insurance. unemployment, own how but us money more it's pay pay I insurance you their have insurance. for to a don't because been your actually stimulus challenging to employees health how get a a

if you it's like unemployment. our on wasn't it. that it better extra $XXX, getting up now And the happen. My money. some off something. guess so the in that customers going And is, rich net getting figure out, really was you they'll be even kind with of were And were on to but year, There'll compromise. what's stimulus And, nobody rich certainly, out

to one we think going it on swoop. was on the I think of the it's properties. Because help cautious I to five Marketing, knows, think system, fine. likely expenses, think we go And in cautious sort no, I turn be that a who the two just cautious. a it's goes installed The, just still thing. if away, of not for of and remain we're our things to remain it But I smarter, number And payroll, around, of the which it's Konami on us. fell will be hours more at could operations targeted. using and we're employees, important away

and one had it them. So, of we already at

to X not that smallest So empty. operating which that Konami hours fairy example, pretty that the have system examining used that we're Star for we is our we're yet, pretty two operating And properties not helpful. day, at days XX it's run really so carefully hours, only restaurants the a Rising it and We're are a week. running, don't

other charge, at costs. if and operate don't our Tuesday. we operate not the We program, days, and offset operating at you're the helps it Now all of Monday on some shift only in we which one on

everybody over for every There million And at doesn't get a at the single helped was of allow Indiana key Well, example. at except to that to us some $X would year So a Nobody rid cows, Rising to here a looking Star be This buffet operate. we're buffet. place. moment, buffet. us said, thing. sacred that's cost for the you the the operate

we And what, still not casino. we a So have gamblers buffet. do guess have in the

like little the breakfast, having you XX the I time has cow of looked there Colorado, $X.XX our shop But the success. coffee have for the getting years. was gamblers. sacred local because $X.XX, into and We killed. do them breakfast people in about that of to we for So reason been And XX there none it been talked years, of if been that see moment. it's there had it was, I'd of same rid $X.XX it everybody was walk there, breakfast don't every and this at for and kind afraid part it was

begin know You shop half have to you coffee can only We a seats. the said, what, small with. it's

about Forget doing breakfast. And fine. the know $X.XX we're what, you

possible allow the how points for restaurant mean in for employees. and taking to this We the people play. going $X.XX through employees. and the And country. points end so around closing We're operations number on some is redeem operate us the can think We again. not you'd is used are that on. that property this be they'd many redeem million I out needs people that the sitting cash, And the away, free $XX that. that just you daily cash, can of on. found cautious. that of many people to still about many this basis. so reexamine still being fewer used say, We a That Liquidity, true. and million your caused And history. It's about you of has we on need I we're can So times to those with of well, breakfast their cage concepts spikes up restaurant with $XX in

very up I X end place. We'd think it's possible. closing

on going number what I but on. end sick to so think that's the of depend people and up we'd it's closing all them, of getting happens with unlikely

And million so cost were lenders cost month our last about includes it to on thereafter, it As expense so and million a then in people. interest we time, forth. $X the month, severance which the paid to our $X we with us us first closed and

And world. it's liquidity a uncertain to our preserve we to because still so want careful very be

On We all know, fast now Churchill is one they're to open, sports We, Smarkets football the Indiana not you mobile betting and we very but be as have of second think opened. are which get know part hoped, Two is for betting, all we a quarter. in X Downs they large the the third revenues X agreements. agreements. open as season, in of X We the have the under open percentage we of other activity. the Colorado. each in which a opened Honestly, the as will trying probably of those

they're is And so small off participation at we spin some revenues. minimum if that a valuations very their public point, could quarter into the of And a of that our in get company. we're at think in it we're take all lovely and $X year we we now think likely million we of the which be our probably sort and open in, and states and entity to we It'd a in valuation and gotten I should Rush has a if that. But DraftKings they up in we in getting nevertheless in. Fertitta will company the to participate show they of Street we're Internet because has. it that allow intend that operate, participate business, gaming Tilman Gaming will, that in And

it spin to existing we have loans. additional $X separate Debt those a took chunk PPP One and is, into million X off of our company. with issues valuation. have that of our debt. were limited our covenants, We indebtedness. of we pretty to significant $X.X small It's just realize actually aspects we entity out too the, company. So We're in a million

And Now discounted have GAAP, kind a of are loan, deeply those normally, you you interest. if X% present loans only under do value evaluation. this at would

So in million maybe go under books okay $X and for we're it the on the covenant. should

we that We money would way forgiveness. also are spending that believe in the to that us entitle

Of $X and any total of But actually until receive forgiveness, forgiven, probably if are still we it's it -- indebtedness. it's under course, in have we seek million debt. then portion

thing PPP the exclude other your loan. it that very your be test Just to total where lenders that's were closed basket at make a we're our we done indebtedness allow than asking quarter, Well, times the EBDIT. there end of each months. to x the more And is clear, to cannot trailing X XX-month for is

that September. So flunked the quarter probably end flunk June. at the that we end of at March. of We test the flunked of end at We'll it

waving a have We the want means be paid we're payment something at meeting that million, and on constant $X.X for end that we're lenders. the it shot not Last our negotiating And of acceptable. little think They and probably should covenant, will year. this But what it discussion obviously we're that I in time, more a alone. at quarter with but was be. be to

situation front think forth. the aware of rid big up there. had draft confident, write-offs the there start going casino out And back soon. a of thinking that every originally in the building building, process. Because to get a to going building basis one we have on was have in get planned and building But building the outside I documents out just obviously some office we're ended like quarter, fresh we this. company lenders be we add of. Fallon. that deal chose the office is We fact, there And daily We offices our to a take with going of to that Years through in kind a same we're two and about space popping we was to had in ago, the company. in

the very temporary affected these wouldn't So of building the trailer needs property, looking and them the property, in these it at it Well, among the and capital at well, experience. this off property had offices we construction forever, and because management really back it, got people affect the do too other much customer experience, you trailer we to anyway. and wouldn't then team the really among can't we parking. putting But trailers is. a the -- and customer new that small improve all we improve require and at for have kept we selling the management took the in what in things. visibility allow really offices offices why it, this stuck other this in had have It's other wouldn't saying, a We

machine reopen, machines. that and which that team, property And we went kind maybe we that rightsized slot we offices. we when didn't is of the realized meant pretty also per So many didn't day to win on the need management slot low, we many per the need

productive So will which the we we're small creating far executive the to the machines we casino of the the back and similar slot to pretty staff up putting would have. office to in going reduced It be Tahoe. where just and least enough a very have small be are some offices area, walls accommodate

we had build didn't office. the on need on new the costs Well, and rent that capitalized we a so trailer the have building. design And office to the

and cost those offices the is in the something we in building And so then that quarter. out of -- $XX,XXX. wrote And off like

to a So out in of process. ago going do last the Racing Mexico a to ours adding meetings, And to license New racing change racing every with not the request doesn't taken like abandoned just best anything. couple and on in years had was pretty there and it a several Commission but Mexico, had for about measure, New for last land to that look -- a change administration, allowed the in the a The seemed building, Mexico had the they up then inexpensive. it's on have proposals a you're to they're the options casino. commission a we're We then put in proposal. for racetrack you'll and recall and that the consultant have commission, deemed the because so hasn't out for It of come racetrack, put New

of So our we we land previous of Clovis, renew not of thousand wrote off. hundred was Mexico, there outside that that New and did we deposits had a options couple the on dollars

kind else write-off, I if there's don't everybody, that this should do anything with the so we came of, we And anything. is quarter house. think kind told of there's, cleans it. Nobody up I to

So to to it I is clean race. more this Waukegan, still the And in easy a award of they think pretty planning we for license. The They October, time got at them point. the are we end there pretty the in are want process legislation give actually says by to. themselves if but

So if to partner. with have And we the a of given at our a big think do probably a relative it may, finance It's a shot circumstances. way company. But in size we will that. pretty they project we so, project the

Waukegan. put pay there. for proposals. a we it's can so money to was, And stand the together with for you mean we've partners it, we a that potential very that. I it. where gaming partners when looking going commission think can been that's some carefully think the how of we best opportunity. it proposal And be a make ask X good talking We us Obviously, the they're of with is We've who'd good at lot starts

for to going a have to want going do think and we pay it. we so we this Waukegan. do we can who can And hopefully, say, I our this to the something how is if the can partner we're they're for then how that's proposal profitable in And question, a state, clearly a is best it the have And shareholders. that for there win for and win city answer

Waukegan. that's So

is complex a planning so And and on on, for to years Mexico, it. sought garage we have. that. hotel various construction progress of pretty stuff environmental Mississippi, expansions have Colorado started meeting couple for would We the a had now, another we was, of go because made space tower That's the Gulf are of and pretty cash part out entitlement all approvals needed. also in and how of which of And which we on over where in and the we the that have have and stages good in state build hotel stopped entitlements that we've the parking

nightclubs, And we work a it ours regional casino as financial pandemic both are that. economy. and we their conventions, on we markets But well the down is the meetings bread so between don't do? that on companies started be differentiate do We want too a and the take there. in What see nevertheless, our is financial strong are those as markets Do at of it's lot are casinos, those build that like a said of currently? doing of are not all and have, hold. process, butter shows, will develops, moment, the continues economy and later, here flying based that road Those and all that things this years we business how see if the when could to years, to couple far the

term. terms at the of and and think of of And regional the between kind there be so I near distinction vitality least destination gaming in it's, a should business, the gaming risks

companies But markets. do and Now financial it's well markets regional yet really both, the that distinction. market is unclear going destination they're the to in in some have and going whether some the to of make suffer

have And we there, if we're a meantime, the we still a do world. undertake we to conserving quite liquidity Get given few everything, the uncertainties Lewis? better opportunities get growth so but could in out that

Lewis Fanger

at With small And one the we important I very the sports to you, a of that to have a fix Dan. betting, to to Let to betting? things to remember out buy make you question we do evaluate EBITDA, sports we couple we that of add I we have we me, slot often our and all from leaking CapEx, but the Xx have roof, companies lot casino, get just guys, to have point traditional have run gaming regards machines. I want how when you of physical to go you trade

$X EBITDA effectively are $X buy. we're of we that that slots sports $X when to our of million no revenue, million so at of attached. of roof. look leaking effectively contracts, have any getting no so expense, CapEx million There doesn't but And EBITDA, marginal There's

so point And sure XX? multiple? that it? Resorts, it very in want. we're it very same the mean, But is see whatever Jersey. a of pleased multiple not to very, It's that's to that guys know. you Is Wynn our want XX? I make you launched X just partners, what Is can certainly one pick we important You

are just Indiana. Colorado be We have linking we to with in clear, but very and nothing Jersey, to do in up them

go to see had didn't nice realize in much live was down. quarter other point locked look our I be few so first it's, of said, times we them debt, in shortly how rate had to to I wood, One and as it our But states. I wanted at knock And LIBOR Dan it's the our if a XXXX, and they'll gone you at live look make, at X just think because X.X%. on

If you difference. quarter look points of X.X reset of here at X.XX%. the percentage at third That's we XXXX,

Now X%. we LIBOR of have a

a the between it's is us. for X% $X.X But annualized those a points that's X interest million $X almost quarter. savings effectively, data million So different year,

there that up make eaten was And Now a just Dan. to of really I waiver that the going for to be point you. fees, some but it, by that's wanted

Daniel Lee

we're that, on questions. And Okay. take happy to

Operator

[Operator first of from Instructions] the line Our Capital. Bain ROTH with question comes David

David Bain

bifurcation you saying, on So multiple, sports way, of again. but thanks the the was we agree I the by with

about versus to the June XX% EBITDA XX% of 'XX I mean relative month year. the you 'XX, you of can again, property for or June we quarter about 'XX, of a... adjusted EBITDA, like in versus did about, looks the month for did June get So or last the quarter,

Daniel Lee

is was add, when $X.X versus half open math entire properties year. that month. month. XXXX only our I'm the EBIT, the that I not month million for despite key versus add X fact I X segments, adjusted $X.X no. of entire in XXXX, EBITDA That's million sure right. in last up And were that No,

also corporate from year. is that last before down Now but corporate, is

in swing So we had about a XX-point margins.

David Bain

looking the the was I … at month and Okay. one

Daniel Lee

I that's different But you … saying. than think I were what

David Bain

last year, way adjusted $X.X $X.X was I June million. Yes. property then million. at looking either of X-month EBITDA EBITDA And I the property adjusted at of number, … looked and But

Lewis Fanger

the $X.X full Yes. is quarter. The million

David Bain

for the Versus Month.

Daniel Lee

is saying X.X. what I'm So

David Bain

Yes.

I trying other sustainability. of that If July think up have August, was look of demand and in opening What of kind entertainment -- trends trend the was yes. you any venues at pent-up now, any -- we're to at seen get stimulus is part we I sort differential?

Daniel Lee

Okay. was -- we it if July And a demand, the in have and significant seen lessening you pent-up would didn't.

entertainment the on only is have think now Now and material, you can impeding I some of, that's television. venue, one that the sports

extra of the figure the first some still sure books a And didn't generous the of pretty yes, that So around run trying August people yes, probably for is out at early business like were maybe play people and everybody $XXX a say, unemployment. is in yet. and that And And this It's making knew kind Mississippi, who really, in because seen, it's I've was come I'm July, August still and closed. -- all week. it it, company's watch are they're on I've in And end a what August, off hockey benefits, haven't July I into only getting but funny. stimulus days better July, and And unemployed, pretty best is half unemployment stay you really was unemployment based It's slot for that's early good. home -- example, minimum we the looked almost is -- And some month of few can looking game, July we for people a strong, coming. and that's and with they closed that, became on phenomenon. what been normal strong. stuff, that in to But was wage mean, there like, really then history. I the example. still it's our so machines was our

$XXX that could feel it you you so if you super you for been And buy And plan back have would generous like like a out cost going gamble. not to family, health it's it what week. and a making was out your

would I've do you think a where off I of that to to restaurant clear show in helpful. a I nobody have to work have how more plus. meantime, but activities something rather can't I unemployment do think -- they of be So would one plus a today. the to But working. -- been factor entertainment those But lot that to in they better was think And for so airline are -- I probably They're work, to back a or you cases circ or don't to Broadway be a I like they're lack going have the I working. go going know the been of And can it's vaccinated, they people negative. hard going pay is competing where I an do afford it think on. you economically, comfortable to for just or some until was find But a it's shows And the or and we're go a when for it individual to something work. say. business most money I other show, back and to all year a vaccinated -- the because acrobats than or it us other like it's don't yes, won't mean been love and I people was might people while I'm but sit I don't the be better, I think And around the certainly on actors stimulus going major think can can think because is, disband. a

to to Broadway start So new shows. start to when are have it's again, producers the time going

Somebody so on. is -- have and and going to to whole rehearsals a fund new training

come to away. So not back going right it's

think entertainment that to a time a impeding where we period X years, be year may of And so not I months is X there. have to

of few and it us. goes. Now, And used little there, further to the instead be to think it quite too. biggest go Vegas. casino Cincinnati that's We none away, local Vegas. single a and comes thing a phenomenon might Las a I driving Las to people but a Mississippi probably the that's and bit of could be There's are Colorado, nonstop and mean, choosing be flights now. particular, in I Cincinnati in between then

for So that speaks well us. sort of thing

David Bain

you of a to during you kind competition mind you know of sense in some give there maybe trending look the can of finally, things? whole political be Illinois. seems or in always any financing like like I You've may forward. you of us been in It like And should things process stroke what helpful, that checks. keeping partner, potentially according great. inching us how And the in happenings? structure? That's is a mentioned go And overall broad that that could give could Could splits terms delay then ahead

Daniel Lee

most the MGM. Borgata. for done. deal that with we Well, That of it different joint and people, it's formulas. else how with it kind some and money for up we the Park need up money share come our can today, different of I was talking that deal But is was what a is was something That somebody a debt moving then the comes financed. with was did their for I We're did where way. with structured target. venture

Nevertheless, If don't sheet, project. be betting to like we do that, we because it's big think very on balance we'd it's a and our something did And want good whole a so company, that. we the too project. it

something And our good makes sense, too. for good so good and we that structure else, will can it's money, our make somebody if partner for shareholders

that's it's that much And within as they're, people And They bit not well. be Hyatt and is that full doing come neglected talking affecting fly we're I it July we're to casino that's to, operate Tahoe. business worth hotel full. the trying so are in about a our reasons. I they a Northern there quite good down is Nevada. talk And the We some work last normally to. year. And the would convention hotel unique And to think casino. that occupancy meeting and about of not when because that And normally a hotel from And have so on. out.

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Wings where those to local base. Air the Carrier Naval the is then the go Station property then to Fallon, that weak. is because to community And spread the it business, so within the restricted communities not base either in there or And the a off Wings Well, spread are virus at get Carrier people base. Navy have to don't the there's trained. letting they want They're and

thing there's the we're of And Fallon. We're Well, travel, affected. in So casinos and of another X about they're restricting that's that's us affected there. Fallon. X Bellagio

rules. But we've Now it's to but Bellagio of not Fallon. the the Bellagio, we're adhered

takes in. your temperature come So who you we have a guard security when

every you rules. Those make a have We other mask. machine we off, wear the turned are

if they them. that disadvantage, at gaming I fake don't but And parties. the is and rural And didn't something, has think They're like, fully there us competition so commission, we put it's where fine ignored we're now guard going a communities to was mask, completely the wear right? the follow no this Our all this other rules. you the those is news have open. to rules, competitive notified at security warned think one of entrance. And And they they're or the

casinos we other that we but only where the operated so, masks in casino were in requiring was And for the meantime, the were town several and weeks, not.

is And in smoke allowed so Nevada. casinos in the irony to you're

smoke in I So type because little were were unique were to really base the was, look where, travel step of But convention resort back would country. like But of Fallon a affected most there. the and but that, you and people's in to of lucky we a are punch strong in offered that, under there, be at and kind could to meeting a masks the was to hesitant we're glad like that context, them. on. business while hotel have and business it business like normally, they it issue we holes Tahoe wearing restricted these in I'm affected And to broader so a to people because business they circumstances, people so that there that

I'm So you sorry, David, questions, answered. some other think I don't I had

David Bain

you competition, Illinois, No, Any just should I any color. on like was wondering, political keep if heard in if thoughts mind? something? great that was happenings Waukegan, just we just

Daniel Lee

happened some Chicago. But from because we to other a do one legislator the affect in they I Waukegan see have and we Downtown our altered area Chicago, feasible that think is can it gambling may Waukegan, thing look, enough if we're principally not Downtown great. Chicago, in to in enough which That guys hey, had, to casino and is Downtown say, take make the do Well, rules very think between be that more the which, of the Chicago that to Milwaukee. let's we're the much projections certainly will didn't one big that big focus not get to

Lewis Fanger

our Dan. up own, on Backing

Daniel Lee

But right. our own On that...

Lewis Fanger

major bigger projects this, than done of this yes. size, but We've

Daniel Lee

Yes.

that's the so think changed Chicago. in only I that's thing And

X date. everything they because has kind on to think are of backlog learning consultant best we're calls only we will people stuff it gaming of the, were proposals project. size the year-end. that. virtually we us of because X. relative measure Zoom it were the city. City's course, made was had that by near and commission the to to small that submit X were to around by Of X weak a the still, how There slowed But like proposals, the still rated you spot certain the meetings We the down of get the have as by every There's

actual is happened Internet I Now has sports both betting the the other gaming. you of think gaming, thing and spread see that

up so New The impressive. the gaming. couple state only numbers Internet now across very clearly in it's And the out of pressure state Jersey, a think it there's Pennsylvania, I have is budgets which now of had the starting country. years been And that's on for

X sales shut so effect revenues can't and revenues it have not for on. You income and economy tax and months the tax

gaming yet this But there will budgets pressures every get point. send acceptable. at online, country source not? We to Internet online. are the a slot them to some allow to machine seen. has they're socially more revenues you to can federal is it to government We in why so yet issues and we trying So have never fiscal have that sports on all the I wouldn't Whether That's and Why before, be state or like think not money. casinos. is good already state of regular why you is like, already betting states. well, do Everybody a play it's

going it. you're think to see I

it one or the Jersey billion all will stuff in nontribal like completely based $XX of other if SPAC in will add which called is did game think -- that numbers saying reason possible billion. And they in see for you between X or or big up And are which most similar Indiana is in is Rush which to New huge billion on valuation a they're why relative in probably a may that's interactive at country, Street mean, eliminate be big and the this public a what be trading are is is valuations, also come taking states a that of quarter the in extrapolate Baccara, to you also in I maybe Jersey FanDuel -- move public New gaming quickly. the X think a business. FanDuel, valuation of gaming Colorado through think year It's the interactive the $XX to tribal session first we going times SPAC. bet casino -- at very through growth And valuations today I increase There's what and also and and only this went big through could come SPAC. and $XX with then the on went or the market very whatever is the merger it's a revenue, I Interactive Tilman a someday. in public good on assigning pretty business Colorado us. And up maximum it is would the completely legislative a that the which public be revenue.

business that Jersey If and having you a negative on City. New at Atlantic look New impact developed Jersey just -- without has

far. to incremental case the So like is so it's gaming and this seems be

avenue players distribution affecting & and Noble. companies So without this Amazon is It's additional destroying like not theaters. movie really along it more provided Barnes an came like DVD theatrical for the

to doing But own. to Now were prior the has affected by -- holding on pandemic. movie they theater been their that,

be so maintenance flow don't at of looking no have have wow, really someday. business saying, to characteristics this and it there's and don't a brick-and-mortar, so -- you could are cash to so you And have The big are on because business CapEx have great people and the forth.

Tennessee. it's that then it's to stock coming. exception And it's to it's reflect so but of sports our case, -- up, have far, aware it's because fact brick-and-mortar. no The can in going every tied almost expansion don't you been third to but in you're casinos where slow tied gaming, ramp in think have any mobile is they to brick-and-mortar. Internet is And are also brick-and-mortar that have betting, doesn't the to EBDIT And it. I'm our of There from seem Tennessee, only I not of and something

bring argue because to know so often up states how mobile X states, knows And was, And the betting in sports and Colorado. online behind. not-too-distant operate when up, sports will think everybody within be it betting in allow wagering elsewhere that multiple got probably them. Mississippi regulatory future. existing Then it in all comes will how think that I the existing the and far we to not casinos frankly, the in And I are already regulating, structure. be they it involved Indiana licensees should tied And

Lewis Fanger

casino if -- all certainly, agreements If well, to look to and that, is add as Smarkets waging go we thing for those only use to Churchill not online Wynn, sports think guys encompass an David, could sports but and get that's approved, have were only existing I wagering. we were business those to down to slots and the with will we our online additive.

only small sports the it's keep the significantly see add So of where generated. the being mind. piece is I you appears wagering that casino revenue was other strongly to itself, in more wanted what The pie, that point is online

Operator

Macquarie. of next Our with comes Chad from Beynon question Instructions] [Operator the line

Chad Beynon

Wanted I your comments, boil to, guess, down of Dan. some

then us know together, or But and a this what you've and side. I the also I And of a guess, gave good You payroll we of all of revenue marketing put down? generated up that move as lot and perspective kind between good historically, margins could of on consolidated, understanding XX%. XX% driver

I normalized of a close A to the space have goal. talking as think XX%. maybe Slipper new companies about high, Silver margin lot in the got been

to get the a you inversely, you all revenue help back So us basis margins, XXXX given percentage if that of payroll gets what XXXX earlier? on a you think could we like? revenues, margins can about reductions there number talked Or historical or is to marketing back about look and that

Daniel Lee

up had Well, operations, about for got XX more would I we June full And you of of have prior it the half the of Because been margins will you full of month at and the month June, the so, that things X operating properties. for for June. points certain open the tell a costs year. like been were over than if month our X month utility only of the

points would going because, we're do that But you opening going like to you to was to really done. have up, the if then many very sure know And think suddenly, I people show had. people were are back let's to have predict have So make don't I show we okay. we mentioned, maybe normal we time we'll employees, you're XX the don't and go know I cautious, so margins forward don't long-term I costs low did marketing were that to the and have going too we don't that higher up, because June as marketing in want and didn't

you around, got team. XX places payroll. open I be when we'll with put casinos these been Recognize, system happens. points, casino more to have our That the way part to we our make operate improvement years. There's has and that been little management were efficient Lewis or X I anyway. of phenomenon efficient marketing We'll go will was some And reexamine significant you say, in the the small into things. think X points, we'll And talk points. X towns and another of to town, these Konami that the have that and we maybe was reason in to headed

careful. got kind because working We to efficient. to reduce there's get it's be a years, conversation the to to the try off and you're difficult their often payroll, aerobics. like more person you right? You say, you've been of with nobody they've their And friend, to And neighbor, to lay water for that's trying want wants got a,

long people want. how moving because try then the we salvage quite off, get to as didn't we'd you is would don't can't it know pandemic, didn't costs so be to like as if bankruptcy, everybody your need laid the we, we that a didn't right? laid fast how know we off. company and more So closed. you move staring when You of And at we It reopen. We And have get choice this quickly down, complicated, reopening we and difficulty right? way you're everybody was

and people out of handful XX kept we of security think X,XXX. guards I a

when positive a call. you're phone call reopening, Now is every

get to positive some was, to okay, but inviting those and work, too back make come of calls team the and make people calls. to management phone need people calling You're back here message, the to them work. And we many don't

are who really bring help need really really who back we there. who get to Let's operate and people just us we know those we examine need and effective and

how to of reexamining And you don't in But an certainly need. this, really quantify know what so there element quite that in that. I was

buffet. and fine. the costing if spend as comes costing and by are to a we And margins rooms, focused to have nearly course, up else away so readily time and many bit. cover that fine. in is was we're before. a tiers we're now the and for get anything of all that doing wasn't I somebody, And still trying they did found I a $XX as And hotel Sun. at the on down us don't ultimately casinos and do we even And us, it instead, It's the used in free now give buffet, on free And marketing. say, the casino to And back than the so we we to buy but a think casino. we And And us as give tomatoes play way, mean Hotel reward if it to we down, people ribs. augments okay, is free rooms anything. give what as us prime give out, we more doing it them quite moving we somebody it better. occupancy not on. Rising And it let's Like play to like not. helped away comp gave

a to our thing the guess so everything. that been was they not trying slots but double we what to mean probably who clients, it we're and And system year. are people there's chance out are. are is of reexamine who slot last the casino our in And literally, figure percentage is, I some last have in playing new I

figure to out who are. they actually know And so we're Indiana scrambling quite helped to don't us. try I why.

if casino they're you like the these casino who regulators Indiana apparently, somebody in a really we Sometimes in that are. And, really the regulators in figure stole as a afraid they couldn't require but or states. they do several things then that in wonder the do mask, are about. They something, wearing masks out purse

come into they as license. to a their the So the person of casino, require us and take drivers’ you photo

room know are. somebody's go mask out the we was wouldn't So our it of into purse and funny and even and and casino person of I their intrusive. the could And kind run kind put a that's out, we pocket, actually men's out who somebody is. know mask come who building, the with And go thought, in well, thought of because I into the steal before they

any rule but they that the don't is had. know this different, I So was why

we a up of everybody. gambling in bit, back surveillance they're not player pictures means call and somebody is go get in them system that into quite casino every Indiana So we them to they and taking tapes, that through our who's can and are system. who figure the have Well, if out the try

marketing. not So did out I'm sure it but for well Indiana worked it, why

stick. think I and something so, that that's might And

movies Somebody decides, gambling week. once going we hey, a younger once that who of week, and enjoy to kind go out to couple a used the now

I think customers, will will safer. older we customers back And find new hopefully, it's when our so some come and

Chad Beynon

pandemic, market properties, right Interesting. Separately, I deals ahead announced regional under there of but say, lot the these were million think a despite so. $XX I'd current market pretty conditions, EBITDA or and active gaming of has for a and of been

think no you needle a in some back core divesting think I players. consolidation to grow lot what's there's on? appetite are mover to the thesis? do in of environment that players about of asset another think portfolio bigger How is number space the the or of a these, if your of releases Your longer the been you kind press potentially on smaller vice going smaller of and an there's of kind versa, with this from the

Daniel Lee

nobody we're make liquidity yet. us obviously mean have here we're to you shareholders. the price, could not to while. out being can sell price good tough to make a it's not this -- we're a could But think of for don't really still it. need different look because might a markets, feel of money a somebody cautious. if at sale try is I comes while. to for that money a woods with in to has closure, because that's shareholders, casino, Frankly, conserving casino be a having sale, I we're here for Look, and us going And spikes very in end and right? you're time up very for And one we offered another for to you we today, So you we good And get at a we a think sell anything. period

we're upside, We us the any our them that now. acquire a -- make days. our we'd we but company bigger. a along we of We did Bronco it's it, But part mean, to I this these go thought XX of cash become came not to we'd flow at the if for price so properties, look Billy's, been at times sake get a And priority right? don't for something important need good Now that deals. has very obviously of could if money. somebody in a bigger at of getting offered lunch, by had else lot which just buy reasonable we look

We to our is priority feet. lean, right month. want feet our want we're to now, the -- stay now. get we're X that Our point on get -- had looking great. all was at X where month stay on to to We We

we Because the able we if stuff a months great. you're show quarter, But need just think we I at this people start months, wouldn't I actually you say, company for rate $XX million EBDIT, under-levered. looking great, you And high LIBOR look some good give right? plus you all paying year-end, that's believe gee, that. or to they $XX the we're those really run of to and the million going $XXX up say, be would hey, months, is and maybe point, of be solid point, that's can maybe us. you we're at then you're going opens X June debt it sorts X% at that. that's opportunities think to And Then not than to of that because under-levered they're And doing in But that at debt suggest. by longer and And that XXs. today. anymore, need a a little trailing then -- EBDIT on have XX million of X and

of prove people. And time so period we need to a to it

we're And on. focused so that's what

Chad Beynon

to that go just then expanded my does what return guess, it Or secondarily, building medium-term maybe parking mean business? you initiative then that's And a Sure. the structure? passes, a garage Do last the sense around back just one, increase And trending? have more the of Colorado how the if bets. I if does and improve to you current maximum your that for

Daniel Lee

a we star I is Yes. mean, hotel. X the hotel designed

make But It and I change even just it's not it property. allow and it. better if much wouldn't so Billy's and the itself for showed state to if today. state And would if $XXXX -- if if think the certainly wanted somebody hotel the don't mean, built right, hand, I the -- to today, and we numbers Bronco like upgraded gamble could the as up would even so a it happen, obviously, likely -- exists you

history we're has all measures. generally for of voters so the these approved have it. Colorado been And And that

And so that I think pass and positive. it's likely to would be a

clearly, Monarch is to building, as Ameristar to go the Billy's, plus it's willing very a big plus pretty And going who's a for is be hotel. it's we that be not today, Bronco appealing a hand. person Now when could it to what for us them. But it and exists build gamble like so and $X,XXX

Lewis Fanger

And I think we've gone Dan. time, over

So I suggest, up. we just it wrap

Daniel Lee

last thank keep to that and momentum right. for here going And and out going. told Well, at you we're June we your only along And we to were just be July a survivor. of going this plugging and came keep and keep call, we're you think we surviving, the we're we're point, I try with. All thriving, to not support, that on trying

So thank you.

Operator

ask lines. the you conclude you disconnect your thank call your and for for that please does conference We participation today. That