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Full House Resorts (FLL)

Participants
Lewis Fanger Chief Financial Officer
Daniel Lee Chief Executive Officer
Jordan Bender Macquarie
Ryan Sigdahl Craig-Hallum Capital
Call transcript
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Operator

Greetings, and welcome to the Full House Resorts Third Quarter Earnings Call.

During the presentation all participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, November 5, 2020. I’d now like to turn over to Mr. Lewis Fanger, CFO. sir. ahead go Please

Lewis Fanger

good and afternoon, you, everyone. Thank

the third quarter for here busy we’ll earnings our to today. welcome but earnings upbeat day, be Sorry call. promise We

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

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

Daniel Lee

just it You’re that. me handing like to

Lewis Fanger

That’s good I’ll have… let call, for I Dan, you go a – it. that

Daniel Lee

last installed year. the a system It’s early close on we And at Star to this three change By we were hate most to and lay both we period also of the time of sadly, of and our year we it after data that. kind develop intensely last to Rising kept, of we the – part operate from great the put kind the we decided Casino, later into Creek, good tried, We to second were had great not at spin that and us. the very were Creek. decisions. needed reinventing and Konami Cripple of for started in March, a it’s we had to was happened work. people took in at No, a approach on number the satellite months year. focus we half had closed a part pretty focused led And that operations call. we marketing it the but we good kind perhaps, time pandemic, I something of was closed for then people, didn’t a started It Christmas We of to way had we but of to forced Casino pandemic in we Cripple on we a where off having

betting wasn’t from gradual a increase it licenses. be to enough to It we the it and and so tied that it a closure. it’s the just recognized from scaled a offset everything same additional mobile operate pandemic, the we did little of we the - We retain seem it. week. we of only thing. we pandemic sports it, it working required did hours closed reopened the license before to was in the kind one recognize the not Colorado, reason that And handful a And to to our costs because closed revenues back And wanted was to but when of did

building, back Gaming mobile Bronco to different three sports Commission into said, And have to we to skins allows licenses has and this fold three Billy’s. the in which went now for want so we license Billy’s speaking, one us Technically Bronco betting. the

of but the bar through to we week third so in a it Christmas the burger without handful a continuing hours or anything only quarter, operate the And were operating. Casino,

Bronco commission started gaming September, which approval license. we it Billy’s the – slot kind was a the gives at back why of and slot let’s was systems. reasons. we kind system And gaming And systems to year-old for accounting first, accounting was lot There’s for cost of So if Konami opted minimal a really And different out the systems at complex of looking different that used did, benefit had us look We gotten into that’s had completely, at very, Bronco we was reducing it in those on but the really or that close Rising a we recognized. retain very system, they to But Konami to then tax which Silver Star the and reevaluate had of this. manufacturers, of number had it. things at number good. go started it we and of marketing years up we date. that so at and you were systems, and at had XX- okay, out And of systems as had then Billy’s, it. the it. a speed it We Slipper, to And did. good control we one data rate for a a of control, we as also said, provides The data, marketing system with out

had everything money. And found for customers in were particular, We a we so we at Star, that doing of were we upside down. them were free and with not when else, hotel for and Rising we lot free everything we buffets example, making rooms added up

focused doing we our stuff better then bunch matter really were we for them. if scaled for So more And the on what of a we you basically and customers, customers or we more and them. will, that did back fired

the and there show limitations knew knew roughly, our were have in and we fine-tune then We limitations reinvented we games our were and would closed, both the seating didn’t slot Cripple customers the We cautiously. we also sure. at opened – we stuff, programs loyalty we that So, on in Rising while very we up one Slipper. continued weren’t in the whether table or on both we new Star restaurants. And on and that know have machines We would half only introduced all Silver not. Creek, so to

our were hours we and So in operations. staffing very of careful in our

reopened marketing and had as operating not we little o’clock than X see And at more a We that at at table had – on in we morning, we o’clock morning. like X the the in systems had things the typical dealers we morning. so mid-week could look games customers new

table wee So operate it the the hours of in just said the morning. games don’t

so handful local And was sacred see a had years. good lot breakfast of They of is frankly, And And rid a brought that it to that and Bronco pandemic that’s allowed And every for you stuff us up, some of as morning, – wondered, Billy’s $X.XX of XX the they’re the and of same kind always example. having I’d a that available reopen of get was our call you’d the had what like, I cows. shop everybody gambling? people, we’re breakfast. they coffee That’s only reasons number from one one seats. pandemic, small half are Well, touchstones. of the we successful. really if the

we open $X.XX fine not one have We breakfast, a said, on and So of And course, well, no $X.XX money for breakfast let’s what, lost seating we’re we our because the doing offer the anyway. is two without guess money. limited for fine, they longer that. in Slipper actually midweek. not the us doing years we’re did a so us at to buffet did years lost money, favor. Indiana Indiana all, buffet at Silver and special a and lost allow and The buffet

were and the the quarter, of look two up in its best quarter But into whole history. get Silver if you XX.X%. the you quarter if in in the mean, at revenues details, were Slipper the the months months the XX-year I the So

XXX% in and $X so remember, it’s I $X.X than was about. was that EBDIT casino very about our late of good because million, last the And think talking that’s was year were of another refurbished million. way, revenues EBDIT up things more Or [ph] It put some we good our shape. But marketing. up I doubled. up

comping about the made barely had Rising it money, our we year, expense not we both reduced last as operation lower-yielding we because at revenue it reason hours made the operating than this $X.X there players So buffet savings. and and used year, all. million. principal increase to. aggressively probably and to fell Star, of and XX% revenues That in But weren’t At

redeemed, more So to of you it redeemed. – years were those at a started the had million usually expenses to and go years these A And a EBDIT one portion in points that of off EBDIT, accrue that We to the and these which started of margin in was programs, a that system when revenue, going is XX% you than had Billy’s XX% one on. it of a complicated many, the to unusual it, would required ought casino. – Slipper measure never into Rising ago, to at when another we way, in Bronco had high-XXs. the there. But X.X%, but by $X.X came mid- acquired is the that it be accrual. happened play a We plan. lot We $X.XX but Bronco out. I some there. was we looking the doubled year, big. also Casino. many get in percentage a there kind things for one this had points and last And is the would to that that same figuring Last so where from calculate have flat, The lot we be you won’t that And first going that it’s math math new year achieved was some Revenues out. Billy’s. million abnormally Norm again, have Silver increase, regional assumptions Star giving of of even year. you’re marketing things XX%, liability what time through other of them is lower the XX%. loyalty was try be high. lot you of be started about we or it Christmas way markets are which Well, is of so that in there the By XX% thing pretty four GAAP

all we program. And we points early program proudly you incentive completely, marketing and was come come are we to reason, Now your pandemic points changed old of the them an your a in said, a don��t are got hit, please because come use and They Well, My have so that point, if get and as Brazil we in make say for and screwed, just going thing. worthless to lived we to year was first please they everybody, they then At went kind kind at the while. to be same we of told of Years points. really it once you so they’re one feel cruzados to people we now told they like your worthless. a in points cruzados had are gave didn’t months doing and trip. told and that said new changed the We okay, we I went and to sudden program while, finally the had as a not. in of to use away. them. them an point anybody points, that your want exchangeable the additional a part And when cruzeiros extra new some cruzeiros we just a ago, hyperinflation, do in such use then they after had the and in people and

related since they program. the of income. too up nevertheless, liability ended to had up credit portion of longer quarter. a would shifting that with That’s little from real bit income just a guessed with And the maybe no So points we what past on redeemed, points a about because of quarters. $XXX,XXX It’s ends are be we accrued in redeemable, conservatively old from

is, way slightly quarter. we the So this it Bronco we perhaps Billy’s, income up in the past another understated put and to had caught of quarters

fly, a that was the unusual in was pretty Lodge in margin Nevada, luxury One Grand if in Lake was XX%, Hyatt, income business. to the which Casino Tahoe. fly obviously, the And hotel got still or meeting Tahoe, in there. nicely. and two crisis. in and vacation with the does hotel the a And that north amount in back that’s there casinos And So is and a the are there. people up shore on people pandemic, summer Northern We’ve then that’s And And also lot thing still the our Tahoe off is ski winter. you to to toughest up Lake the a $XXX,XXX the of out, spot. hesitant of do convention fair the

a Air lot the want casino. spread the their Station the its spread reason. so – want want so almost off has most – do in with been don’t it’s in pilots affects they And the the personnel Naval people don’t COVID hotel’s travel, and And occupancy to the they of Navy Navy all and to is that They from us the And nor the of Gun same then COVID carrier Top home training Fallon, they of in – base of the necessarily restricting pilots for the getting into do community community. to on.

they’ve So to is us. the off restricted to transmission not travel reduce and helpful the rates, that base,

in revenues off were our have cost Nevada We So northern the quarter controls up tough in do pretty there. XX%.

out to northern So revenues to because that’s $X.X of expense Nevada. used have we’re properties only we while amongst fell in that, much competition. that was norm expenses fell At is we carry found income about – that corporate down corporate at now corporate, we XX%. the allocating a our our our our that the $X.X million, pretty million Part few

EBDIT So in a shows got is our much there. business below mean I then back ever which as sustainable. thought, July ended maybe And because our there. things on every in you was little an And don’t in there’s was all best expenses, And and we’ve well, September, events sporting has unemployment stuff there’s are know our corporate I frankly, good. a is league the very add was remained in television it’s allocation at up, the it XXX%. last sustainable. little not events maybe And the months generous good. thought, sporting of as no television. of history, all July, adjustment I going there’s because well. of year, going end and that of a up bit it one on stayed When first, on pretty chunk in I good quite At that some of more if our there probably it’s been maybe history than business well, because playing, this

hesitant is flies to to drive people of element places. are to who there I an They think our fly. Nobody them.

XXs, XX I So by regular trying sure coming in and gambling are to often forward. so not is do than and before. can who and at our have like these day than those that come some days we place. up and at off that, back theories of our are much working I right? And there people in bigger going local’s money some area the home, I and know make that’s are I’m them are who for citizen they splurge " pent-up guess is of home who and has the their amounts with in people maybe older, And segment, offset XXs, us, seen demand and more their people maybe. we’ve my senior And of to think one working are we nervous, customers home" at more XX%. is they’re saving their a keep citizen names XXs staying been course, hoping best senior like we’re as that

and you, so of something multiply you it. do, slot can do which adjust about sit slot of good, tell and it – been you’re so think having But anyway, four, but our actually is joking machine, get could I’m million it Konami And doing the will we’re the I you while you EBDIT are call things $XX that. machines a take sustainable. $XX.X we’ve a there you Zoom chunk we’re good if actually is million. playing times technologically and not pretty I exploring,

other quarters. stronger little The seasonally a third than quarter is the

each that up originally, than But little running. four, and So and right? sports get I’ll multiply all we be yet there They rent. X.X And up But There of those And of longer by companies slightly year differently is the But them four are that one when times our little. told to be it seem revenues, percentage taking us minimums you they running, more more or in the point it’s that. if when two go. to agreement, agreements any could then than a of $X mobile their just and had like defined. – one you them than add it times up skin of up, are not shouldn’t because it’s million all in year. had it a the of $X.X million a ends out was We million $X quarter $X million. enough but material This it’s million $X yet. getting minimum all year, we multiply then this does also something, they’re

and both anticipate in we’ll numbers their well, and why That’s that most, quarter probably you as running, kept like entities to Indiana has If these do a not We really we’ll in Colorado it Star and the and do Billy’s. little cellphone have miles with gave Sun, Bronco of up with if it XXX segment have Indiana, licenses bet the very auditors the make as it that’s with the it has we Our without first to the in the license Rising in Rising a and it. away because it separate casino. break from Gary, in out Rising nothing uses Sun. somebody all, to

So that become going to And gaming is legal a both be is seen or far. if It’s I’ve but where segment market approve and one is what internet which places, our already gaming, is yet. any times in more Internet pretty so not actually states two of it’s in even few material more we where gaming are of a these will important. material forward, company going mobile

so growth it’s point forward. and And going a an important of segment

been It noted proposals. had busy we’ve we the license. the The for It’s in still to There trying company pretty about our on that consultant contest small down we to were city we’ve Casino was thing a rated just originally – criteria, three except are hired winnowed do proposal best every The other is, pretty it five. the a ambitious are deal. that Waukegan three. had

that. you knowing overhang bit how if a little also going stock our have the a And good deal, for thought on was wondered it that. pay financeable. thought we And are people we so an that perhaps because we’d And answer you to it’s hell

And could financed project firm, committed on private management. a the of got a deal under multibillion they’ve somebody it breakup of of fee it basis. and pay money is use diligence They’ve financeable where entered to significant part forth. choose lots actually Subject so We’d to We dollars reason most with if do. and to cheaper. a experience us, Illinois a that this before, things. else’s get if equity they’ve comfort due provide so to into this is of additional to They little will pretty greenfield so and was to financing on have casinos But and have money give financing the we built. do to they

convertible $XXX pretty and a piece, special makes concerned than the clears, with a a equity bond our our to to us proposal is that’s private a in And a And there’s we It’s income, the should vehicle the top make whopping million, think million. the the too it’s it term not that also $XX frankly, investors on get $XX our right it end purpose and we’re relationship own or But day, there’s so million to as expected and good company company, allows subsidiary goes in And dust a special way for about sitting equity our as up it. into a get We finance we’re $XX lose equity we I and important, you us piece. lenders At less million in an and When worst equity. part our making a have. size. the XX%. or of company to loan no – come firm and off our that it, and $XX to case fees is all on good million. probably a are of and should off return part management purpose

Lewis Fanger

$XX million.

Daniel Lee

we’re this $XX generating in of point. million. that pretty is And And good $XX cash about at of clip a at course, Yes. operations. million used

can our million, share. enough Illinois and come with that no can question up they that with company can be of come up So big is there $XX their this comfortable we commitment that is

route you’re So I to the to hopefully provided going that very helps license. whole commitment reason that of letter process. for get It’s works and pay the question still how competitive answer us think is this, for that that a we’ve a

developer. One a of But and is the very, own choice Bluhm, very illogical casino the Plaines, very well-known Churchill at that’s in Downs and O’Hare the Waukegan. casino, who’s other Chicago, applicants near Des large successful Casino Neil Airport he which because is a very the closest to he’s

and be from something would would that he successful the do be I casino. as possible may little or Illinois. so argue, best motivated that cannibalizes in State And as Waukegan of not to most the interest of his And would be, not

favorite, Neil not the And so he either development he’s may rational political less be third proponent experience but than a the then far Bluhm has or favorite. And us.

to competitive it a of were they supposed a the as who end to said reach state get that would law The process. by had decision October. So

had with they in needed. there more give it could themselves the not However, a more have time also provision given they themselves time. surprisingly if pandemic, And that

body make meeting a at ultimate states, in hope a who gets other are point, kind and decision Illinois of or the presentation and they suggests in indicated, they to last the to either sometime summer. language the ask Board, the each a in XXXX, arbiters And process license. will to their presume, spring be they’ve out developer it’s plays the I in-person, call from probably some So Gaming proponent Zoom or through the the of to they like reach that of

see. Let’s

ago maximums passed. so change what gaming I a noticed that offered. referendum The of there law Colorado, was are and Actually, two the vote could they casinos approved in have the that it. betting aspects that two The statewide, the communities games a change other in thing days – to

most or casinos is already wasn’t offer, would today, we Blackjack, just is games Asian Springs, so game the people. million but of there’s Not before. or slot that Otherwise, main Mini-Baccarat. or in population machines, and Now Baccarat Craps like have that is there Denver that not one Colorado are approved Roulette, offered million That to the you Baccarat. talking no six on, but a huge seven

population, play prefer So there the often Baccarat. are to to Asians Asian who in there And people somewhere, are and there Baccarat. is non who Asians, play an like

was was deal. – maximum away. a in it bet and the kind in Teller County Cripple years $XXX goes the the ballot, citizens that few a – approved the of maximum and which to had big ago, on deal. was I So but whether, it betting changed or lot community same this, it. huge they its the $X, now is By to a play. the had state, of Originally, do mean way, fact, was that Creek restricted vote a That of

that. a but and obviously, in high-end do Billy’s casino look is land acquired a plans plus pretty have plus. Bronco hotel we to a have a it. don’t around think the Creek happened or today, they and talked and the referendum implemented Cripple state but And at lot So approved X. simple and be a X approved this will same a is on it subject plus? We build And have it eventually the for for certainly fix Billy’s. and plus. up it’s I local it’s May huge certainly it local very Bronco to Is know, big Billy’s a time, today, referendum May Bronco and a

said in pandemic. Now that, we having are still a

this supposed you pandemic. red, whole go to you’re what orange, all up, they this to try a down case comes We’re And you it the things; each same there thing. try a other different if is. It but If the really not is state Colorado think meter system. up. got has rates careful; rates go get you’re you’ve you case the your to high be bed, stay do everybody And if out see to home. I and news, to underneath to if process got system of has yellow, of that you’re go

North And rates or these sometimes Dakota, case that bars and them, means clock of have highest in different have they country. XX’o rules thinks just the except none closing to at all rules. apply these something the But you who

widely are close there vaccine taken be at as to more we in one casino have this, risk some casino, until of a Until or you that We’re don’t going than that is to time. and that’s it available concerned. people be frankly, period having a have for enough point, to of

going to and that at we’re probably And and we’re was multiple Back being now are had Now maintaining them. of the we disease work, this and better more doesn’t vaccine, about, a than vaccine know about so ago. disease. malaria cautious a what the there’s have Nobody pretty was right? least knew – we’re not liquidity, idea. it. would from far I a And we even still disease to in no bunch about know this work months whole vaccines pretty clear – that ones and starting is far March, six if it far all right? about out I distribute there tested, away and one more on it’s didn’t

have close do close. way do to Or just you or So you you not change operate. the

March, a more closure it’s out this. were lot not think weathered from of known is is last out our the came we’re completely I we and than known So, we but for it than view, called was of frankly, point before. of in still And because stronger, caution fine

miss Did anything, And I it. so guess I Lewis? that’s

Lewis Fanger

amendments really that working fact who’ve lenders flavors with That quarter to scenes We’ve all debt represent reflect or behind wrap-up essentially one-off lenders, one every and the got covenants is our – shutdown do going just to Dan. amendment fix we been March. item, been good us earlier to along, the the I and these in to had complete. that to been we’ve

to out XXX will what past. From I of funds, the wear it you’ve the in view, and then have be seen Last and point morning, exchange, more we’ll that amendment quarter, bps. So of tomorrow expect signature was it’s the complete. a cost

only And time, yes, The same in difference being, the This all quarter, premium. we upfront bps but the last XX of But as bps had it’s cost. to verge. punted on on call it’s quarter, well. essentially the this it’s XXX it – cash,

Daniel Lee

I up probably I’m I give thing ago, gaming other doesn’t that sensitive on in week is I wondering institutions Illinois fide stock blame is, choose trading super our was – And this about you and sure bona don’t one commissions of some whoever were road. a of embarrass Gaming thought waiver But for about licensure that. XX%, case, there of Most Illinois does and them they a some them. Board it, normally to the the too. down unusual being

and so wanted could And background had And officers that came in of we checks actually institutions a institution that its provide any run and of social had they X% couple so the security on to them. those numbers that directors over fell they category.

recognize, Now we’re company. a small

of they’re other of even these of So, we management. tenths our management. the two institutions, of one shareholders, bigger two their of one X% under of I hundreds assets their think X% were we under one one, though were assets And

outside might it, had told was was of handful, numbres just institutions I refusing give actually, security have – decided Director, a accommodate few One Illinois. those and what they it to think rather as been one to as than those was who I

so into couple shares one get over out. And than us Gaming rather were stock million days, sold so a their sold they of or And Board with or Illinois of they under battle something, X%. they over a the

told, to asking like, were for I and just we did, good stock them trading it, tell X%, one And going under vice our we security versa. us they them Board. They hands problem wash kind of it social we’re those were after so our of the sorry And at was And but a and cases see then us where stock numbers. you so and could in it we didn’t now were was sorry down. it okay, sell stop until they on okay, they resolved done down. saw the And of huge had volume doing a Gaming shareholder. were Illinois their least

follow and to intent the Illinois rule else. the the going they licensing, back think I with forward, XX% after normal everyone think do I initial of it’s go

Although institution was it Lansky calls way, it’s the there like company. in not the don’t I for by Meyer X%, and anything sports – law think and that was that betting

fine gotten very was it while just it but have institution. was about miniscule I a applied security this their a these days. And feet. with of people their their ours, perfectly license and and portion have they should probably and think social under assets are here a said, bother large with They could numbers it’s management, we it, shareholder would sensitive why a voted of for

going stock week, our was what in on that think. last So we was

days never You But were where few point, a know is holder later. for bigger from. sure know, trading the they coming than they a we really one at were

our was guess. that So

Lewis Fanger

That’s Dan. everything,

questions. do Let’s some

Operator

Instructions] [Operator

Daniel Lee

we Wynn stomping we When we’re sure schedule not on or these calls, make carefully Caesars. to look

Lewis Fanger

Dan. We got stomped on,

Daniel Lee

They they don’t look carefully to stomp whether on us. see

Lewis Fanger

Yes.

Daniel Lee

We have though. to call hopping to everyone’s ask do call and try some questions from something. I know

Operator

Please ahead. first go The Chad question from line of from Beynon Macquarie. the is

Jordan Bender

Chad. How for on guys. Jordan are Bender you doing? Hi,

Daniel Lee

Hey, Jordan. Good.

Jordan Bender

Good.

then some the casino that much into of and impressive You back your margins how talked about isn’t taken is down mean, were in pretty coming here, that ramp business? and up. saves marketing labor back Obviously, since the components quarter. the the your the I kind you’ve high to shut level basically of of

might to a trying gauge, Just basis? on rate where they run fall

Daniel Lee

we it. to payroll lot a I we lot like keep going are I of I get savings don’t more life, savings, spend have know. to wonder if stick we back to same probably – the a normal of our to the to marketing I revenue? think on is mean, can operating

We’re operate just customer and many too we operate the to for demand. satisfy not hours being need many what too careful restaurants to

quarter. might to in the I XX% going I it frankly, just was XX% up had always lot but this margin don’t know, And back – maybe forever? And we goes ends than of think stuff. XX%, have. it careful so to be margins really should kind at it it is this figuring we So, us and lower that more out, the kicked a XX%. of Is don’t into

sustainable? I other gaming I’ve know. have the think thing. same And sustainable. of Is said a it – all seen this I lot we’re of is regional kind don’t companies

and sustainable. lot of the thought results improved lot, they markets I it had said in regional a think a Eldorado was their

four it’s producing opened last said hit. has the was this conversation. and need wasn’t you of do to to it We’ve get really a casinos, we and of almost and everybody payroll And the Hurricane you careful said the go into home, when this everybody it has want as then been call. business for lay tell the okay, then going a time, earnings we close off, XX you really if operate, is months, every But have. very it’s to that hard people close just everything had friends an focused open people just it because with two income it’s odd since be on. regional and then to really of call have this should pushback like, been cut to And lose so and got I careful and phone call. make And normalize how they’re good for many we and everybody laying you profitable down to years off, and hours people three and payroll. neighbors early lay else or And had before L’Auberge L’Auberge because from – same Somebody part really rebuild revenues. closed much human huge we was I were for as almost – be thing. on, And reopen. month Rita when then, about kind in Rita, way. let’s very let’s was and there’s to a think L’Auberge I and When reminiscent, opportunity Pinnacle, this you on. we a you for long one it’s everything so going we and go to reopen, restart, to an you When to and we their and we’re no, shut these phone need be And well, buffet off a say, where they’ve do hard When and people that say, at we

task make of somebody good need. come work, than phone to the to asking you and what is You’re those more to calls really back not

go an And so in to zero-based of odd to way. building you kind it allows

So but And Konami we think than harsh, operating and more we we little with frankly, got going reinventing it efficiently – up. programs are really – I the time. we that were right it’s a system can the these lucky before, keep in at

reopened Rising giving And just Sun, – data, really them. striking for to people who and we so we how it pay enough at look you much gambling to weren’t marketing were the and away had once at to was when we really what giving were really

And mean, community try I That’s for so they it be give to free. for it’s be our we – customers. best great, continuing up, But show was going what we’re less. and kind feed still let’s That they on. if margins? of so have maintain If we’re the make – we don’t here well, and up, do look, for high company. like, this they’ll them well, show to so Can to pretty money. would to don’t XX%

EBDIT million of underneath hard, and and a that We land it rent. makes like have that’s as in it the year, Slipper us little out is here a comes $X.X that leased, the some stuff costs Silver

other no a long keep should you’re have might in so the comparing XX% be high reason is things But long term, maybe there that, can be might a they We whereas couple of there being that we is companies, from that if XXs. XX%. term. to like lease should mid- not us other us to companies And XX% do

Lewis Fanger

too, in just because the that in got margin are And things that side mind, some – not they’re on helping keep us operation. are we’ve out

operational margins? When absolute comes Stockman’s, But hopes goes do. you the So back bring do that games would games to if outfit you currently, table your is the level back, not They continues of EBITDA be at it table with not your look operational. that bring up. down

talked basis could down here margin. we’d little generally. be we’re no and about on making and conversations around bit of things EBITDA, Dan’s will a you, tell margins at have a profitable and the But more of margin a so lot things daily shut to tremendous absolute have looking look, a still EBITDA. we about tend I doing sure the And really levels

Daniel Lee

We actually bring point. of But up were you $X another studying tables anyway. kind blackjack

Lewis Fanger

We were.

Daniel Lee

math, run The hands the is to card on Because edge house it’s counter, a about who four-page a player, hour. read if house a but XX there’s bet at X%. normal not how edge somebody article blackjack, you at the if an blackjack,

XX And person. making So on we’re that hour, there’s hour an an $X if somebody so a betting hand. hands is hand, a making $X.XX we’re $X

making relief a dealer have on, the it, The person pay dealer supervisors comp you enough three whatever. a overwatching and if table the or blackjack So not the let for back, break shift taking sitting people the so dealer. the going you’re you’re for meal $X who’s to with the to alone, at in

table And breakeven is is so the $X blackjack, even much if proposition. a pretty full,

you’re we right? was And you’re we now in and we doing to $X do do a machine And tables, getting – wondering to then the reopen, higher gaming because And at courage have blackjack competition closed. you Stadium was and Eldorado how have a is so crazy I figure they’re looking table of this And also these that cautious and so to Well, that, cubicle. rid moving – were on. I limited as have people it be table know have how I blackjack in if a plexiglass people table. people do before each you were already aggressively can limit. your many sitting only three at It’d And blackjack. blackjack, or you over a at $X out to can we putting probably $X to the at offering Caesars. Caesars, very all gaming. trying in to it’s migrate thing too don’t to put Stadium imagine

make bit table well, to open games. of Colorado, allowed money And we haven’t we in been much, so on but table little where a games, not

Rising the a and $XX It’s want So we a at we at But a it’s player. says, $X Grand that’s well, Sun Silver positions At like, helping and generally, only our games medal. comes margins. blackjack Lodge, for Slipper, customer open. look, I And in have minimum. three the $XX it’s I’m sorry, and a game, and table have

tables, plexiglass the you we and and or bunch anybody machine before short where $X still means probably blackjack there three them tables, a there’s at money move. allows should that’s they’re very stupid a reduction so forced play now offering can in you that with the make sitting at – a our the have on. go out we a at of money four can making hand you tables that people So, setup had only that we blackjack, And if because $X stock to or pandemic weren’t blackjack effect,

so there on. And is so a anyway, like that stuff focused lot of we’re

So...

Jordan Bender

the color. And And any have XX-plus of older up? to your the the then then in people casino, on of in those seen in expect the following keep demographic, for to trickle over casino do couple things start weeks? the back the last within you trends once up open Thanks demographics younger you start to

Daniel Lee

data any that seen back". "trickling really haven’t them I shows

and much store in older – older you the fact, and they’re rates casualty people. mean at is go if I there people store it’s is pretty should XX, she’s people. look scared pretty be, In catch if just And terrified that you you my grocery careful. at an striking. eyes, to their mom they is And as and you the and very grocery look of

from I are who people so unusual tank. little you’re be person would might And people it’s bit person certainly, you’re also or of think lung on if and kind being cautious, casinos today. person, diabetic into one be that for us a And an they’re but probably right to it I think older older something, with have to cautious. be not maybe living Well, to oxygen come or our varies an silly

we’re get it people, for mean, to customer program, think the vaccine of a And get their that, about time, the us. And don’t to we continue meetings. habitual them it does get will a points, I we continue have cautious having – We sure do to make be become cautious to until them part a we and life. new they’re marketing younger them available. get we good we should I into segment know. talk now our be I is – becomes how that a older hopefully, and So, so

but So no there’s yes, question. –

get an to on go benefiting to closed from theaters. are fly that people A probably movie has to the hesitant Nobody hesitant are night. at places, XX o’clock to We to at People bars our airplane. are to of lot fact places. get

a that the are places think is there quite where people So, going casinos, and understand Konami it properties. you few tell to them. is nobody one you our what movie and into at I and finding enabled, can that theaters may our be system go now they’re reasonably open, – are in that fact, Colorado, I do safe. And a we’ve And other in enabled of will has we’ve we feature

to you It and is that a on leave, message this you card sanitizes sanitized. comes If employee when and itself has be while, an pull waiting the until sit and machine play get little down the for disables says, it you up your machine. out, machine

to a safer if want one a rally. sit And quite safe customer, machine you a you sanitary so entertainment, sanitize of lot I don’t and that around something, the few a do are our say and – that you a than that needs event relative and I going They nightclub a they machines. bar, And again. of something or a to comes And confidence it’s a Political in right? down to code think that gives customers to that pandemic other before When realize we finds offer start – forms those sporting friendly, environment it. that or but alive sanitized be goes the want machines it sanitized, you’re it. playing for to a being punch really those employee if looking

So, yes.

Lewis Fanger

And you actually it. saw

Daniel Lee

Yes.

Lewis Fanger

Dan. Thanks,

have one last question. we’ll for So time probably

Operator

from Please go The next of from question line is Ryan Sigdahl Craig-Hallum the ahead. Capital.

Ryan Sigdahl

on strong Great. really Thanks, guys results. the

Daniel Lee

little our the fourth and quarter you should go a was weak. weak, quarter mention, And pandemic. I was look, but pretty Yes. still back quarter the then and first year second better, was last

of three us. coming ahead quarters got we So, easy

Ryan Sigdahl

kind clarify all basis? on level a the corporate – excluding ways, to holding company an margin, somewhere mentioned That’s a of it thinking on number to that basis, property mid- on in perspective. but high you Dan, different from EBITDA costs? Is Or XX%. overall that just to of the points

Daniel Lee

margins. lot of mean, it as we’re margins no – about margin. the can overall. having income with Lewis I happy from Rising board, much feels improvement basically kind about a good Frankly, of this having and because to thinking a Star margins right. of improved mean, talk pretty pretty to talking but I’m was I across I XX% went is

income. day, eat So this something at at, don’t but the look you the eat end is you you margins, of

will might have So, our will do a we to though reopen add allowed margins our little, Even table we it probably if blackjack. games don’t income, hurt to in $X we’re Colorado, provided so. it

will million be times And sustainable I go back if best do Maybe not have you And then to where job world, the sports at you’re this $XX can it. know, might say, before a $XX start it’s of some your XX-ish, "Gee, you so in would some okay, to not four, is and well, so add is in they trying to out maybe – think our get $XX.X the what to so low-XXs. just that’s making XXs. to which number, million But well, the then give of going seasonality EBDIT start the the betting you’re XX, we million the low guess, to is, I’d you in adjustments sustainable, good maybe, that, XX-ish going stuff if it EBDIT we’re I’m when you the come line. I really the said, XX, the say of ongoing bottom as on pandemic. don’t were the income I you’re not on, say, to you year. turbulent company kind first I’ll but And had margins take of And

Ryan Sigdahl

trends and directionally October And Helpful. then here few the anything here? then changing first revenue, margins, days November, cost, in Good. in

Daniel Lee

to me, we have Katrina have as the us earlier, insurance, did our failed mention things damage. well last – which some roof good But and it year. hit hurricane, I covered pretty been was reminding hit this have of but just you’re we Actually, on easy comparisons shingles since to a did And of Coast. storm we by biggest Mississippi probably hotel. the the lost the It’s probably XX% Gulf to and

insurmountable. We pretty deductibles storm. it’s at storm, remember were so three have was we interruption big the it closed We last blue a days, a on things. for, few it insurance. looked you business and Nothing today, I think, tarp it if good correctly. and I if other pretty and the So, There’s Sunday do business after before after good reopened The was got on.

So – but hurricane. the business usually, a of good isn’t very in midst

pretty and the Colorado, after then same Nevada. good, playing third and two And mean, Indiana, the other that’s property – thing most in quarter the good So hurricane, weak before that good was been out. they’ve – the key two are other players the in results and the in I in happened really important property. it our northern has been

one... which Although –

Lewis Fanger

Nevada is just actually... fine, too,

Daniel Lee

than did better in October they the a but And did right? they October, they’re – small in properties, Nevada actually third decent had it’s the quarter.

So...

Lewis Fanger

Yes. helpful a It’s close on Saturday. hurricane Friday in a and never to down

that did a Dan here ago, And spot at but so Silver Slipper is so or we of have that, on. outside week

Daniel Lee

clear, sure insurance kind Yes. might. and we to of where We collect we policies, point interruption, – have but we pretty get business we’re insurance. have it’s pretty going do on and through our the Not our good we

So...

Ryan Sigdahl

Waukegan, Any On financing partner? them great hear amended that informed and Illinois Gaming feedback about for Board you your a Last Good. to proposal received from you the partner. when the me. one

Daniel Lee

to said, pretty They that for They keep face, thank poker a good be you honest. additional information.

it consideration. We will into take

may you not institution shifted budging that of creative social number the their issue, smaller it have, were into an think they will security we kind we security see. a work. institution, and provided big I But other Illinois. call. a board it they has numbers, the It’s We’ll satisfy tell might So, board social and the smaller on our entity and think it’s that that a not investment we was although idea,

actually think mean, XX. because probably work I will it’s – catch it’s I a it

with, world they sure says they they’re make to and middle then you’re me, deal we the want of net. some listen, the get going to saying, live And dealing tiny, that And broad really who in, you all with a this you’re officers time. directors, the know we this our regulators kidding tiny this have who and institution investment, investigate is these for caught have so right? all in we throw You

to so see we to institutions because the anything about, keep way reputable Let’s can and you get everybody if find there, fund everyone that, the teamsters financial questionable talking institutions, is comfortable case. something, not pension that it’s a happy we’re or the try

the forced it. with one And had to institution, portfolio the so Investment want there manager – they didn’t told Officer but his we Chief me sell, a got he but

So, anything else?

Ryan Sigdahl

That’s it luck. me, from on guys. the job Good Nice results.

Daniel Lee

everybody. Thank Okay. it? you, Is that

Lewis Fanger

it. probably That’s Yes.

Daniel Lee

All a right, afternoon. everybody. Have good Thanks.

Operator

your for will participation, can today. and That thank for the you conclude you call conference lines. We now your disconnect