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Full House Resorts (FLL)

Participants
Lewis Fanger Chief Financial Officer
Dan Lee Director, President & Chief Executive Officer
Alex Stolyar Senior Vice President & Chief Development Officer
Ryan Sigdahl Craig-Hallum Capital Group
Chad Beynon Macquarie
Edward Engel ROTH Capital
David Levine MidOcean
Call transcript
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Operator

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

You may begin.

Lewis Fanger

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

to in release discussion Also, we're company's call quarter, the today's where we security before our said, our conference results. under call affect Forward-Looking may measures as always, did making conference you With broadcasting the press for of we at releases adjusted make the to results also that of various the risks well begin, could as SEC today's that please statements. under fourth the reference federal provision EBITDA, Harbor you remind find reconciliation Safe for I that Please that may see results. these that our all as remind measures, are of non-GAAP would from of release a the strong differ we like we we can lastly, as caption all a we you And earnings As laws. contain statements our that forward-looking materially well see it of may as pre-announce results anticipated website actual such these was today's filings. press Statements issue. forward-looking fullhouseresorts.com, this

a don't think earnings to So I will surprise be anyone.

Waukegan within for upcoming broader in will results Chamonix way our our just through the in a Our casino his gave a this about then that through summer. those will year, Waukegan, ago. temporary that with were range walk and actual a results by half thoughts we second the walk plans this month and open including I'll a strategy Dan on and

the last with XX.X% adjusted EBITDA in quarters. that The quarter. XXXX. didn't quarter benefit with then during XXXX Hold a It year's, related first isn't occur every initiatives great fourth so fourth It a the sell XXXX could We in weren't the the play had additional did even quarter from million fourth of in quarter. occur higher XXXX. the during We between free that And year, until to period. period, don't the expect occur have revenues XXXX sell it but occurred XXXX but free play quarter of quarter was present free on. also play $X.X a of third XXXX. quarter been comparison Indiana. in that the EBITDA not quarter. XXXX, Adjusted of we fourth for that Let's XXXX of the clean year, fourth every the up in sorry, sale corporate million fourth $X.X fourth to and expenses And have start it

the so that led statement. differences income different And timing on

year issue. you're at you're full an quarter, there, only If but if the you'll it's looking not looking obviously the notice at fourth period,

For year corporate actual figure is the $XX.X around the initiative for mind year, initiative full is mentioned adjusted $X.X that full hovering that EBITDA million. million. EBITDA about right $XX it I corporate that million. in include does was that The Keep

sports gets that up it And $XX back, you mind if then that so And above keep period. skins for add running in our XXXX full you million. the and weren't

over mark. top $XX for would the you that so the And take million

from there Silver in to its and to CEO, other Slipper strong defeat more of initiative to quarter allow the Silver was It its new that day year during its year the segment about John move thing opening a the of by since ballot That's Ferrucci. performance what One year XX% a led the specifically Looking a overwhelming happened casino XX-plus our at properties from The rose the City had strength. the in Louisiana XXXX than Adjusted minutes which has Lake Slipper. best Mississippi, state XX Revenues part very Slidell, its $XX about continued and the Pontchartrain recent EBITDA it side for with history. increasing in minutes other million. $XX been did Bossier Silver XX nearly of of or out to XXXX, city to from Slipper, on a in The million. the near doubled Northwestern

and the For you in its require idle local of is Casino was a cap voter reopened that sites the due City know there owners in those they don't to state Louisiana. casino license the Bossier of it. only shut as their And licenses in COVID closed on license number this approval. Louisiana down never the

casino off-cycle Tammany XX And they so years was that nearly a strong competitive of to turnout voters by this said think long Parish. defeating Because Tammany and percentage threat we past December, Parish, that, long, it for proposal about the XX the need just worry for don't time. points. we St. overwhelmingly St. in ago, ballot a to initiative Voter in like that some ballot appeared again on no did

up to footprint were ramp out Colorado, our and to part system XXXX Indiana, an starting in extremely XX%, in to full Rising Star, in is on really and behold, is come revenues to the a improve really adjusted earned is up the and performance now. of more sight and Chamonix. three of has it's year, of was EBITDA segment was what impressive large efforts than due economy half team which That In continued to the was times great the ground a more than the up construction in there XXXX. For manage It continued out slot our of swing costs.

of can to cameras, on-site hotel disadvantage Chamonix versus construction that short-term is see adjusted of If you Unfortunately until in looking and we're so us million. to Bronco years it's a best and some ago. at million Despite EBITDA $X.X in construction one up quarter casino will that, memory revenues have the portions of of segment year XXXX. also existing managed get impressive. have continue completed still with quite second left with the We've to bored $XX.X no different Billy's has really rooms disruptions of there pull construction. of parking, recent and no There ChamonixCO.com the a we lost our but and website there be two you

more in opens. when and However, at suggest than we're should a Chamonix Hawk is ever run, look the quite Black for outlook the Colorado Chamonix we home All that metrics bill be our confident well. that major Monarch casino doing bright

all COVID, -- showed in was Nevada, range. the a mid-XX% because gaming quality peg that that that there And as areas travel gaming the capacity been in key Nevada, then is I them eased extremely out segment. XXXX, segment Our contracted is Air EBITDA the our in Revenues in XXXX. especially during up period. as XXXX. year EBITDA, ago well of XX%. think Creek. casino staff to a XXXX strength affected state, more maximums on company per what the product million that the betting $XXX know that help that really Adjusted was second. low. were Lodge capita their lot the think Stockman’s scheduled system constraints skins near our and Station the that Stockman’s to Colorado the process we're strength and lack in changed restrictions at now in in strongly, is up of destination done, installation the skins fourth Grand Konami slot That year. times. got installing Naval of in I lack by and Cripple over gaming our analytics Northern per is Dan's Billy's. our a And Bronco On just XX the is we've be of going for Once in the own Hawk marketing Right unlike up will six at quarter all our gaming And for than in up of estimates did improve April. actually That most segment April same still revenue but of were affected new It doing Star revenues last about did XXXX Monarch three Konami removal slot whole in a at operation Black live, and system. segment December complete has few Rising year compares system. Xst, install was marketing But In We of us spend Grand really capacity tremendously Lodge then Lodge visitation Hawk sports affected the Black of helped a the Grand end of went on where during our speak to wagering more have at great to weeks you, the

are operator negotiations beginning one exiting in We on companies business that back two will entirely. back with skins Indiana the of online other skin those already get year. May and begun That's and one recently announced sports skins. in they regarding We've Colorado, XXth iGaming of those the this skin because

in have be That in interest populous in gets Each are expected that number skin there More Illinois, shortage one country. winning because to casino hasn't importantly, skin. more of skin, largely also due state There Waukegan should gotten Illinois. the calls limited phone most about is license. the a and We've sixth casinos the ton gaming for been one really it. a of only of Illinois a we'll us

so a available decent that from sports in skin. of interest others And amount that's created

on The Waukegan construction Regarding to million $XXX ago, the named our senior we notes. balance tacking funded sheet about Temporary. secured did temporary a We by month of that our existing casino,

And of above $XXX $XXX issued so a notes of that million. those outstanding those today. as par gives at We total million notes us

those And of so was issue the on warrants yield for about implied date. X.X%

CARES of have during quarter Those fully the of were to used properties Act the their loans closed. were pandemic, also took $X.X We height all when loans we fourth during the million per of forgiven that terms. our loan out

this at point from ago have by time, we like a my liquidity company. way, said cash I we've of had in at more this so, the ever year a feel history view, this And than

cash, time, in $XXX for real of the with of have Chamonix. of we reserved out $XXX it million million build Here roughly

total which rate $XX about We'll more Chamonix, spend build our which that's business so chat expense $XXX talked I at of a also and cash a Chamonix and a credit contributions We any already a X% Temporary, million. revolving you liquidity has in With do that The will from as in quarter though, existing open want year the strategy? million half is said, undrawn interest before Temporary. to and below financial have be some that and currently, XXXX. we mind floating facility, which that of Keep should about our up some open lot. The Dan, second about covers current than

Dan Lee

company, Yes, it let days. these strategy of year we as see the address five kind for me

bond big As business debt X%. debt one of at before $XX million issue. Lewis million, point at is mentioned, about That's $XX EBDIT existing all of our is this of our and the

it's So of about million $XX expense. interest year a

Our $X our small, properties existing year. pretty maintenance at CapEx is about million a

And new We still accelerated a have to that going on have we're building. continue we'll shelter stuff to for then, NOLs we're depreciation while. the taxes

So expect a any timeframe, income in five-year to be don't paying we taxes.

existing in run as Now, mentioned, $XX about Lewis operations. takes to million cash $XXX million only

a So talking, and they amount takes point steel specifications. property. already then pouring for to from the have Chamonix. until fair a have million foundry to We beams $XXX as we're about them a at undrawn don't spent pay and this our arrive to we revolver. $XX there million is We've somewhere It complete like, recognize,

the land betting and million X that that reason per Colorado that the million markets That's The stick limit, more star is significantly any they've Part Colorado, than moment. for it. to limits first of gaming on me Cripple were but last pretty April, are you of Temporary handful went for as years. higher there's opens, or in guestrooms. really million such to did years, a better is assembling Colorado, for away four a market. gambling product, per which $X low other over appear allows in took into for that's why of and most the so, though in the capita Black of limits a that in is average investment Complicated XXX and had -- is building were people; whole, legal than of I then low an only more is underserved some significantly us place below XX Creek. when to And Denver Hawk. couldn't of a to mean, casino market. So, a million so a project, Chamonix, to a hotel, for it years, nice committed than $XXX justify -- places for completely, a This a a a in result they of because kind couple Springs them let it's and it's of and is has betting will people. And four casinos. part place successfully but star site, the betting capita places Chamonix even had built go $XXX to the population we'll half which so casino, increased time, have the is the get because $XXX good X would been we gambling of below US complicated, complete neither its build has they it

Monarch Now the let fourth XXXX. with me in casino, which quarter a opened compare this of

don't pretty XXX they surface now. garages. So a have Theirs than been open have. rooms. but bigger also significant Chamonix ours, have it's parking They is year lots than have parking Both Monarch a which and little more we

more -- They actually that. X,XXX We show in similar space the people are a The machines, meeting about XXX far for casinos both games. convention space to have convention anything than slot size. they our XX ballroom. They meeting have see have. table very rooms have We close and can don't in

only Cripple Creek. a Jacobs of be size Isle of Ameristar casino the have They hotel others. competition frankly only this hotel from and Capri We competition. or four-star Jacob, the have less in and and We'll few place the

which close apart. they're cities Colorado to is Denver, bigger are close one course, city. We're Springs. Of two Those the to hour

Hawk from and us somebody Springs from hours Hawk one us. two Black Black Denver hour and is hour from from So somebody two one and hours is from from Colorado

XX the So our at they're Springs. one will But public They go played look company. they out. and two will travel hide a will then little secondary be bit, Black you don't most winning $XXX look Denver numbers million in then is Reno. out it But Hawk, by their what casinos, for many strong you million, which market because you their $XX were only a different Riviera, million check consistently to made in a think have in about $XXX a one and in at earned to sometimes if which but always important And Colorado then is they public And I Anyway, the back Reno acquired be million and results take break our the And they XXXX, operating company. -- pretty years. broken Riviera many, Black it the if Monarch, historically depreciation -- for Monarch's people market can plus income million, those about been it's further was. out year Hawk, place. for XX they

from EBIDAT Hawk. million about roughly $XX from probably Reno million and $XXX so And their that of and $XXX is Black is is

a expect space capacity, and And else, million mature. guestrooms, terms of so we're $XX convention size we're unreasonable year, once three number similar fifth casino of size in and in much greater and their everything open to to make not us

of mentioned you see that the that XXXX will open like So second website. details on can the the quarter in and -- be Lewis

temporary is the a of lot, the about opposite to same acres it, the parking that the and the chosen these but project, moment. open Now to this company them is a around about purchased you'll accustomed to competitive the the the we temporary in a be go go country. use develop Kevlar for as over an [ph] going it'll at location that which We moment. then, on, a one $XXX has on process assembly on to to is sprung our and insulation and proposal aluminum same a it's were And And inside. Waukegan a through structure, the of see so permanent people end XX goes casino. whole stretch of and at that into quickly, have Tesla, And go line get million you is put to let's example, December. makes structure talk for for XXX an inside

than is covers up, X which to field. ours, $X ours and little football costs more encloses X.X it it put like so And million million,

X,XXX So XX diner, there'll it. machines, games, attached restaurants. to very football casino bought fields, be in We've slot also with two which be a table that sprung a will And it's large a structure. X.X large

high-end So our hard XX-foot a ceiling, a to we have structure have tent a It's sprung restaurant a has. restaurant. like, third with in

in trailer to like high-end diner. happens old So double-wide it'll be actually restaurant you hook to buy diner And we which decided a Francisco, a like and is come San the them diner. They very up. Fog that a diner City an be in

diner. it so mean menu And a doesn't have good can't you a and

on with we'll So casino about And we $XXX be full surface at will lots. three in parking restaurants, big have a million.

that lot spent being towards that's really a money is the of Now permanent. $XXX million

good So, for is end when slot open. of that we gaming upfront is chunk of temporary one-third training the in the over. it have we well. when shift Well, will it of up from the open the bulk a permanent example, -- that is machines million as pre-opening will costs, pay about the employees well, hiring that $XX tax permanent, we employees. The the and or

the of actually a so that is to good the costs, even chunk pre-opening And applied permanent.

years in spending during it interest for we're have to assume number existing makes now. this bear permanent. second, a will this of million period by three construction covered million hold part will million mind, $XX expense permanent operate let's generate a spend of have open. the get let's already assume temporary we our that And $XXX better million for year, So the there's so And $XXX between, to just $XXX to the years. the in we And But three we'll casinos.

but out for put three So we XX incremental to we the going to expenditure as take to get then million to $XXX permanent. to million $XXX years, get you cash additional generate year permanent, need the to if that we're have a the

an densely we Now, we expanding the the slot a you And have X,XXX the doing revenues and great but machines million, it Well, they're make what casino gaming, They're which area they're is typical about EBIT. with a the margins about probably could don't that. to that million to if it’d in that or XX miles we XX was Rivers We original closest now. make? be more That's in to in and temporary do limited expect away. in us $XXX much. Casino, gaming million to expect expect that's year do permanent don't a is place populated $XXX $XXX

Waukegan, old America the Lake but County, there. we're town. seat XXX,XXX wealthiest it's the kind is Illinois of the of people belt it's only typical county which about and town of County. but Lake Now, towns in in XX,XXX Pleasant Midwest, in have lot of the town, we’ll casino the county it is an of XXth rust a and

I million regional that of to live of close population other per take just assume million gamble if $XX person. the revenue of Lake would $XXX That and in within our million EBTDAT would $XXX gaming people minutes site. ignoring Now, That's have margin. the and type County be $XXX who they XX on we in

to as And not come $XXX of that how not will So, those be of structure. facility in many not unreasonable splashy the is that will as the think temporary all permanent? is it's it, EBTDAT. to permanent it's sprung after a question And the a could do million people

do spending interesting we it. to some some money to Now, things are

you good be a it'll will it place and interesting give so on. an and that experience So

million my we back get to So, maybe do. and permanent that's do can a the of where what half $XX I

but following And does $XXX kind are leads just and the all million. it to guesses, of temporary permanent those the analysis. million maybe the does So, $XX

a a in permit foundation, tent We've I to look casino all machines, in the so scrambling, put -- the weeks. up week. third big have quarter We trucks and arrives got tiers can can a a out in throw about so Let's the the that trying get tent think arrives of job slot the route and we're fair XXXX like when timeline. the trucks couple temporary we arrives pulled, We're of slot already deal. we at it the and and but -- big in the we we’re picking and big open ring it's things, XX

So, we're on. to hire department starting people and identify so to and heads

second do open to of do, to there's lot of in quarter Then we So, a to expect we open the XXXX. in the but expect third of Chamonix. quarter work XXXX,

place We Waukegan in will start in construction late XXXX. on the permanent

month funded of mean flow. goes construction I internal stages of months kind construction, our the big the will be from the that XXXX you amount Now, through dollar per cash exponentially. up early spend

first maybe of agreement. the that new it of its bank under money or so XXX replace time. in XXX Chamonix, are should million issued and ballpark than companies. of get open permanent to EBTDAT that $XX compared $XXX the conditions the about on do XXXX, today's year the of million the half bonds to and can easily since is be be casinos, levered bonds achieve most think the debt the But permanent, at versus how incremental million able callable. our worst some Then from But in market for the would won't is used our we XXX will time, it GAAP. especially remaining $XXX should pretty but from February $XXX then in now, what $XX where million that's million the of $XXX acceptable maybe will construction EBDIT a three-and-a-half-years million the up be that, with temporary. We'll theory a exactly expect, funded million, and build we is from So, call in temporary. existing the we the from better in is to leverage, and of ballpark. at suggests build and permanent end portfolio the casino It kind debt, profits XXXX, be our the really on bonds of become on that million $XXX And debt $XX we permanent some to of of see we

three-and-a-half-years XXXX actually from at point So now. -- -- three that years,

XX got and XXX it now together, you've Chamonix at from today, that adding permanent. from start the point XX from you So

getting million want run it or sold come XX what EBDIT. point XXX has is that maybe or company or might is the the it to Mirage or is getting OpCo, for, especially But was things for either Peninsula for, sell got So if worth times about look it it. the we going Belize times EBDIT of haven't that days, sold know sold I And be at private we which don’t good. buy let's our as point. price whether that the even a own to reasonable at it done at of all with estate or pretty at along, option these lease since we'd get you go continue is XX PropCo thing. an to assume, to We real

And X.XXX so, the did million get That's the when a $XXX opens debt XXX. good the XX try at that have times company. that's to pretty $X Well if billion. permanent mothball would billion, sell subtract of anticipate we'd at we to we

a future best of ahead that's million of in very XX is industry And something even stock a us. shares where we today, price quadruple $XX year, bright outstanding. the it is we the had we think still have of share, north last performing have stock and our We a which though from

have. is miss irrelevant, I And up. it, else to do thinking screw So, just did not what We to screw we I don't don't this we anything? or And we've guess, day, every want got Lewis, want to execute that's anything up. work we on this whether

Lewis Fanger

No.

questions? Dan. take some to good, Want You're

Dan Lee

great. Yeah. That'd be

Operator

question Please take our ahead. first Ryan with go We’ll Group. from Instructions] Craig-Hallum Sigdahl [Operator Capital

Ryan Sigdahl

of Dan, and afternoon, on recent Good the Congrats licenses the success well. else awards and appreciate Lewis. everything and comments and as all

Dan Lee

Great.

Lewis Fanger

Thanks. Yeah.

Ryan Sigdahl

and business, on back answered base casinos But had you impact you because the the the versus my and versus else. business, Temporary in questions The December the comment and of Chamonix performance most can there? Maybe you Omicron January, potentially today, February on core switching to everything have

Dan Lee

but issues think fill we Omicron a to Our lot stayed I I of scrambled employees to had lot strong. a that's businesses mean, and mostly like had past with of businesses in, we Omicron, us. getting

some no where pretty operating we in Our kind The is to we've have businesses surface steady. And to make stayed Colorado, that, despite managed biggest continue but has to got really we've parking. it's and of it up going and at slot when no of and struggle you a talking When impact putting of of price on least up distraction on. pretty torn the fly regional Waukegan stuff course, was in gas when to sitting there's machines to so car Europe. be Obviously, it's on about in war of kind and airplane war here weird money But, good airplane it Price up, Las you direct get the sitting for and in went us. on getting a than oil historically more regional gasoline are actually your an you're burning gaming. that in and Vegas, a casino. driving was going

want much. other to So cheaper. the price coming this up us of of vacations don't go gas is goes to up, cost We the relative versus

to of I price affects don't I but us not it does, So very when go that much. want the it gas up, think

become it's smoker. taking be smoke risk. smoking. personal don't economy I want vaccinated. the gotten similar view and health is to kind almost because for a go They In are think and fact and going up. kind heavy who people price it's allowed so I are but rather we'll And not same the the on. anybody lives. so pretty think pretty But our of gas much us it's as normal might a the don't now wise, it hasn't ironic, I business us. of normal I was I'd masks point to It's last I year. I as And all things as of just on buy are I pandemic and people negative to, too And similar. things positive. a it's anymore. wearing It's be deal somebody And us. at behind where not and aren't it. guess, like Omicron, mean, part up, even with smoke to reasons of is in going of gas secondhand the this behind just pretty Well, Because an think results hopefully, somewhat normal I airplane

Ryan Sigdahl

Good, Dan.

improvement You it in route. mentioned Have or parking the an is around? services all rate there parking issue the construction surface kind you construction Colorado the added the noticed you given valet shuttle just and is this the run since of

Dan Lee

just We surface construction. our we the parking were for put in, closing off that as

last the well type for doing doing starving Fairfield And inn added a they're understand that. we only and is And was we otherwise we'd those whole, us. very be you you acceptable hotel. as time simple Creek So, when is It's so, And even the we've in at think and I of up XX% that. of done doing And up and since some what Cripple own, with we'd of And they're think back rooms, was piece with think we is but we're hadn't at at a I'll really strongly. if markets offset. Cripple its what does in we up we cost money that, reason except one that. even to struggling. like, be It's, up XXX tell hotel, market up we pretty the it I the they're pretty went they and do kind room their look think an well us rooms like Colorado But when not held out hotel, look It's is, us. not it but it, Creek Hawks nicely. had kind XXX differences biggest and We're but everybody Black away, competitor so really parking.

part its even Chamonix talking no work in something casino just related it. over for construction that's parking. has is year, because got and Bronco its about Bronco we'll we're And all hanging opened. but another it's construction So I the Billy's, when and was Bronco of closed but to It's Billy's, recognize Billy's do there.

They're joke Money other manager, the Cut at with he here. So there. his off, I and when almost stuff his it's the the is Bronco they general bleeding arm I'm them. like hey, guy says, all around Billy's still That's Simon, money cut he's off today. and making he's despite still arm Pai,

Ryan Sigdahl

from One it Dan. last the me, to stuff, I'll Good one turn over others. then

when on permanent timeline you going bit, can Waukegan years up to of run a like temporary to it talk it the mentioned ground do three with the Does permanent being but bond you on have think or February of timeline? that accelerate? of callable XXXX. just really then break you the I guess, but nature summer, kind for with are that, XXXX the I planning a the you're out through sounds is to it to and Just in

Dan Lee

call add-on the to logical an is two-year temporary we're to out cost in The can. bond deal, to the finance we years. don't of as how date the because it's We figure bonds except to The the really -- a doesn't. that that to do were that which way as control when callable it everything. money two are we was quickly of irrelevant moving trying made was finance No,

they've need has and the with have summer. we us the the to example, be be Xth that are and allow for weeks to city permits smoothly. continues to just well that everything approved can Commission timeline that. July. actually happen get And up just we happen. everything we and to to to We But Gaming We far. that never permission So for open assuming from happens. of everything set next certain go has for so have that perfectly have do about working open few certain meetings their Certain And a in been and us by there the very things

were Labor So successfully December. as But we possible. think, in I doing. a don't Day, quickly of as Remember that's moving opened just expect the We're we're hell Xth what if of a it's July, we're chosen by quick.

-- we it under bought extra In is And close. an we've stock. of did stock, just said color me rented in asked offices the pretty they We're moving We've I that got that piece contract, has chairs and of of it is whatever whatever so somebody what and fact, was in slot exciting. it's actually enclosed so now. fun. will kind fast. have we want And it, I but land important it's remember, kind

tie run the and is don't have more years. for -- really This like, going casinos You you think to about permanent three things. stop

years. you casino Gaming state third don't for I and under a think permanent temporary is can complicated two a allows pretty in then our intricate. year Commission building. Now permanent, years give the the if construction law it on operate possible done you and get it's to pretty you're casino It's two the to

will the way probably So open we'd it's we out to because that think not of have figure some permanent some build. seek partially Otherwise, permission. I to building to simple a

change So years you'd isn't state I temporary, have outside there is because think it which law, to but will take the timeline, in happen. to go to going the better three recognize than part of the an three longer years,

you're to the a don't you have three the going because to be permanent opening over right? really you're have cataclysmic, within the so to customers the want move would you years on. employees And open, that of and gap So temporary, move over, going

open we July pretty have this date we in permanent we coincidence. in or July August three will the well sure that bond. that with if to years make call out. open And That's dovetail of year, happens August, or on So, the the

Ryan Sigdahl

Dan. Thanks,

Dan Lee

even working things some Even a it it we the that be very, still but ruin a temporary will a little yet, won't though -- more very though it's to give are temporary surprise too. be splash. going special on I

Operator

We'll next Please take from ahead. Beynon with Chad question Macquarie. our go

Chad Beynon

certainly the how Chamonix. vision lot the assets few future some from a will price would the the funding for by Waukegan we're divest Thanks help, returns look around maybe Hi, you're have you at Thanks. lot have where get portfolio? a laid of taking out determined I that scenario be about for up Lewis, price and going forward a thinking right needs potentially you of afternoon. to five of that Chamonix? some of is to Waukegan the question. for you years kind current stock my Wondering your Is put going going the a and given these and Dan, to results. questions future next and good that good bids to the There's think be there out investor's there at

Dan Lee

always to guess, public expect money. don't we sale. we I company, I for do Well, anything's But we're of as it. have the outlined a how kind for need

eight in bonds XXX. at existing quarter Our a we them and issued are

under X% X%. a money at our credit about – it's facility borrow in we can So money

that sell costs you're So, cash, of comparing get fixed. against a borrowing X% to X% floating property to in and order

make to gathering that attractive. has diversity, couple more Silver And Slipper the income own. today, be afford property, one it to be is kind which a have some So we like small same diverse going in two allows afford of pretty multiple a frankly, diversity. of I I'd comes Mississippi, our but nice management could to better great a management both half we're us mean, on team be to the the a it's Nevada, But to in guess property. good far of from one which its Waukegan still I either but years. team will giant, to the than have Northern In probably properties, of the runs

by makes if million end, And with get so the – But it's it the of a I lot myself. sharing afforded year like, there, even know, by time the because and offers for it Stockman's, Tao and administrative like casino are can something high that's we a a I think costs all works. individuals at hey, the you

two, of by team be those a one management the to sold kind If of expensive that's have you'd other. carried you've

I it if pretty happy Billy's! but is price, so. and now pretty frankly so Rising really with Sun, partner guess, So big Bronco and Chamonix, were well a doing property we're a is offered property you big

Chad Beynon

Great.

Dan Lee

of is, him I great. somebody get $XXX answer think the We're better no, I'm holding assets. But us likely Sun, I them. the never will prices look, I beat we're be off say million bank. guess, That'd at any to for to offers for if going our the to Rising

Chad Beynon

seeking It's compete of if And that's when it in the I during is are your talked the the won't have you is three over then Waukegan. speak, view still maybe who ask, line about the for state that licenses, you've in bidding impact? Chicago and you this state competitions, then still one really finally that that'll there's Okay. against But Chicago? that the of some noted now, the your there’re that -- affect you the to very to that and I license properties to that, Milwaukee. casino, believe new that primarily in I think, casino wanted I Downtown process constructed believe of and so closer operating, and Rivers little view

Dan Lee

we've in been years because for assumed a that would Downtown about. be it’s Chicago, was there talked Well, casino talked always that -- about

and naturally assume are Park, Arlington Arlington the projections was going happen. with a slots to in now to get there at $XXX Bears if be there'd So and so going original a also Park, you're there's assume that's building million view, We'd sometimes place you surprise. pleasant a Chicago you our not slots in long-term moving that that be

drive If anybody Rivers you have look go geography, at into Downtown to to get the those to would casinos us. past

-- And from so, I Chicago think, is. you’ve because quite of bit that, Downtown further a we're than Rivers

thing don't other was, market little look riverboats. may that -- quality competition, Rivers, us too. the be think it the It than at it'll on I much different had to sail to got if Chicago all have them. the So multiple Illinois a near the They’re other be to but us. kind low experience ceilings, of the XX you of And has anymore, aren't impact kind boats, they the of drew hangs Well, they are the smoke They're deck in casinos freeways. years They old river. don't a near on other rivers old. be in

of off get The And Rivers. on drive of you kind all get only to lane is exception casinos have two freeway so in to the to roads and almost the a often circuitous state.

you you to Now Indiana. of why go can -- part go that's

those a pretty which the they're all side Hammond Caesars Chicago right old Rock riverboats. the us. Indiana But Joliet, look close Aurora, off if on are giant to far Elgin, the in freeway. from freeway is Now But is and of has at the Hard place Casino, you

because nice place, expenditures. And talking about so they're downtown will a all Chicago, be big I'm sure

Ours the have is two the of there. lot us, going Midwest, in to the be we’ll of nice nicest between casinos people place and a

Lewis Fanger

drive from That us else. of yes, downtown drive bit that to a hike everything -- and traffic and a is with little

everything closest that to go tucked So tremendous that that at you'll casino is ourselves. and look realize map X.X where at that suburb, million a the nearby you people, said, we're -- the won't get itself quickly is nice bored, kind pretty benefit. up in really, but over Dan the all thing I in look by casinos, just is of about that when our northern location

Dan Lee

after before Yes. people, And both opens, at all. that million the casino X.X we to closest and math will affect Chicago be doesn't casino the

Chad Beynon

Okay. at finalized Thanks. And the this Chamonix the then, of I has percentage What's just point? what one bill guess, been last construction -- housekeeping.

Dan Lee

than but XX%, It's to the better I be that, haven't construction been than higher lately. I subcontracted Might with subcontractors. the guy believe, has checked

Chad Beynon

Okay.

Dan Lee

and that subcontracted done means been work so. it's -- it's it's already already to, we've either But or

Chad Beynon

appreciate it guys. I Thanks. Great.

Dan Lee

Yes.

Lewis Fanger

Chad. Thanks, Yes.

Operator

next our Engel Capital. from ahead. Edward take ROTH Please go question with We’ll

Edward Engel

taking on and question call. for appreciate congrats Thank you and Hi. again Waukegan this on all the the color

of there kind Just anything a supply kind lifted to and checked you dozen of just million last budget, getting back or couple inflation that doing the you incremental Chamonix chain time that there? all of like it that in. Was you're things looks on is kind versus like issues, CapEx cost

Dan Lee

we contractor and things of and on in was. former Peak Black than was, into reason, on. think I higher some at had and how of by more you pay to We on to And all for the haven't They original gone being the steel our mean, based from kind like the whatever China of companies the administration in were that it's put when backside that, ever pay of of XX,XXX bid on these that. -- to people had sadly had what had president we of our know, No, XXX place, Colorado, lot and largest put away. and on the work US it so or our getting and shocked that are out and was it the the much tariffs have state. like supply design a subcontractors then feet. built as I we following budget Hawk things said to you places to was it charge experience and issues were they unemployment who frankly up, in feed allows low kept on which Ameristar chain people the on up. There contractor And the tariffs Pikes steel

quite that back when cost while. had going for let's fact, whole contractor is And fighting Cripple our presented we and in or say, rethink, to and I building to Waukegan, what Creek, change for been we've made -- guy go really everything? had Alex you budget came for were you the know we So And $XXX state isn't this at what, taxes that this we cost with beautiful increased a the And development us was, thing And to upfront? going the in sexy you are all that's out restaurants these building back building we everything cost and us to in this showed it's pay have more to said, our going willing answer we million, million. $XXX that figured and bid. our because

dictated million, in for. million. was that we Waukegan. sort by we budget of we what budget in Creek. Time it that learned Hopefully, of the have build tell, We issue $XXX And of what we we in taken it's will promised could $XXX increase but in Cripple but fat went you, expanded we that this to what side will build care thought not

Edward Engel

just fourth probably then where in mandates above be have guess things the some as or And lifted And the up change would color. Colorado that last kind of then of kind the Nevada? on you couple it fair the say and since Have quarter quarter for any the were quarter and first Thanks well? picked Perfect. to I hopefully, behavior were mass the weeks. they in seen

Dan Lee

seen behind because an see But maybe lift know. I I increase seen a gone. they stable. it. to have I I the of mask smiling were business in But I -- people smiling. happy don't kind But I don't masks. No, everybody's because haven't their it. of haven't it's been think our of

to required markets, think were masks. of They were wearing masks. our some the I required barely were where frankly, we wear they

were but they time the And was it they -- chin. were their wearing so masks, around down half

Edward Engel

color. the for Thanks Terrific.

Dan Lee

Yeah. No worries.

if worth. no what add, for our me where helps business that about complaints Let today sits No complaints it's you.

Lewis Fanger

pleasant for our television. that watch But Actually a was home Olympics People it found, historically bad -- and were for whatever stayed reason maybe I surprise. business.

Olympics. we'd I, don't during to that were have the of, hey, we it don't I And as have maybe that, out people the going kind And mask. I was to Winter wear whether know. or a know I don't so meant didn't. to watching go period expected a I'm want soft watch Olympics, I like not many don't

unusually up business down. been fine, unusually Our or has nothing

Operator

MidOcean. David Please Levine with We'll ahead. take our go next question from

Lewis Fanger

Hey, David.

David Levine

you questions. how Hey, Thanks for Thanks. Hey. guys? taking my are

the there think margins around color you from robust you offset gas and current gas like expect pieces of food Thanks. base but maybe also you just the like color of some you about be will the do around guidance older environment higher keeping haven't respect was COVID operating perhaps food, be question drop jumbled there, to or the really the talk keep just then, the to weakness potentially or the to and the the that'll around moving Can question speak much margin environment inflationary side, a bit thought to gambled, the your not of would just guys just helpful? And who be prices customers income I little to some you'll interesting. able you up of more with more come because can business do a a off? and same, think have First

Lewis Fanger

And kind came segment people definite of able we're lot think frankly special of younger the of of was everything. based $X and went But normal business budgeting our lot of system in of what why back. and it examine when reopened, we I to -- make less et marketing blackjack point, the and offering let's old a that back of as of have time. function will and have ago. Konami a to which spread. that's buffet improved paying and And by the right That a We a margins being a to as said, And when cost older to cetera fortunately is, and et a gambling pass younger fall pandemic you to stop stuff. We've frankly, Yeah. zero at dollars, with obviously, age there Cost going older food really money, two-for-one vaccines the don't is quarters helped we seek been tables putting midweek couple happened smarter well. to had we people. our And We questions. we don't to this our people affect a our it. doing the revenues the people saw before closures, We're same Actually part that maintain found there went of number we a off looked at that's cetera, and casino other the by offset through. companies were in the back, about at margins. food I have

cost So more. it'll, again

of cost miles, mean, perceive probably predominantly and so. I the just people. in our a we gallons almost but faster driving in comped a And for people you by it when a car, stop but Now car customers typically But miles, about three that's as much, three they few few it's they'll very anyway, our you're have points are people up fly dividing amongst gas, XX when end comped. driving. and their lot of there’s -- get gas through you're or on two burning town, get XX I They -- and almost of then customers two don't that and everybody's come think

to in $X in kind of takes price the when XXX even And think using gas very of now past very went down. -- up we're a gas. lot because that's or seem going a move Las $X doesn't Cleveland a why in gas from really of a Vegas. much physically of to It Vegas, you're or of the and gas in affect gallon And alternative. much a really Las to yes, change easy much that us so doesn't gallon for -- you not it trip thinking cost or Cincinnati I whether the you're living if gallon, that you're is$X to the you're the and Cincinnati you're because if And

David Levine

Interesting.

And much then kind the the sense this think kind $XX $X business? that way I'm million Okay, million of was that's of was almost to to additional million million range -- My skins kind helpful. around the the points. how the if skin me $X correct XXX% that announcement these before add wrong you is skin frame passed more about Do do maybe how of revenue $X that to to which revenue, in and that that on might

Dan Lee

-- One is couple Well, paid a market they had access the we of upfront. things. a fee

which people business one and which of they're partners in for was for the the Mutual's Indiana they exiting our with had we of losing And were and did. office they even had exiting Churchill, are DraftKings they share website ended in some for who step Churchill had way of opportunity deal up years. legal guys the they in. the And with years money Mountain so this. the market didn't Colorado, to these up other did be The minuscule so is business, still been so betting and of kind announced a which embracing then the out is and there the online ball. are will they an They both And Pure business, when They had the California. disappointing and a View, step dropped other they're who

million, Churchill they access the Now, fee $X which from market was paid Alex over

Alex Stoylar

No, million no, million each. $X total down, $X

Dan Lee

the because right? total, contract. over We've of million had life amortize you only $X to the amortize that

So, we've piece of that taken a only small income.

to who -- into replacement significantly fee in more income. there'll players players another somebody We'll the sports find there valuable not Illinois which access And and a then else. there'll be it's the commitment get want back of new be others. and we'll than And with will license it. other for betting any be is is we market refundable. so And But are

Lewis so million the-- $X we was at a were from minimum. year And guaranteed

Lewis Fanger

fee you market $X include million the access if $X.X million without and the annual--

Dan Lee

Amortization

Lewis Fanger

that's right. Yes,

Dan Lee

and there's know leaving those if confidentiality shrink two with but Churchill's But can't some hope lost pulling exactly one clauses six you out Churchill we them. well, of replace amortization, you we we've just you which to is. The out that's tell of each because said true, you so that contracts each

because so gap And the replacement be licensed so, a could will have to on. get entity there and

shrink as replacement that north in $XX segment. and So, a a little million them we're if licensed. year But I'd not add we get the $X million a be bit on surprised could when find of then you Illinois,

David Levine

Illinois.

Okay.

you gets which of replacement, XX. the north plus Illinois So

Dan Lee

will same something be that Churchill. if it replacement X Yes. there. minimum There is you out the from And on But than might the guaranteed they terms might X. are guarantee XX, be are less of say, companies as no March you be as there better, It be worst. go

clause, right I'd said the tell be happy the then you'd but Churchill but you number, it was to you because you've less to go X.X, If a-third on. you'd I was insisted But ballpark. be probably X, than what if confidentiality find a-third, replacements. in can't, from X

Chicago XX. and add of to you're and something to then you north back X close probably You're

David Levine

thinking but of XX? - I Temporary like something be I August, about high opening fair not like when like quarter season, exiting it EBITDA year, The year. kind would for so a -- XX, or thinking you you my that for wouldn't EBITDA for about talk obviously am then Would estimate a-third be around for of Temporary just the this Is about exactly last just it I'm for this the there just And question, The think for you're year, a this something if do -- there, times

Dan Lee

open because our we we X. were the assume month we uncertain that business with said, even we does zero, earned But existing first and assume so when can our month. that said, it's open full And the first board,

So or you temporary any permanent, you first When a let's July open you have casino, XX. the higher opened costs. much say it's

up employees, don't end hiring know jobs You additional really because employees their yet.

in And some going training of that, quit find they to turnover, out costs. to lot in do lot of really are a life a what casino a cocktails and serving they want and isn't save

Bellagio under make a you start two. its in money it control. lot of a So lot month not then, or you first did And money. of getting really Even don't make

money if month, you time that. So in $X you making you probably and And make then XX, nothing. much wouldn't in you're any July open, something by money assume October, start the not you September like July, a maybe August, get maybe making million to

up in can much how will So in much completely year and get ends depend we our this control. very exactly when open. not It's

David Levine

Thanks Okay. a lot, Dan.

Lewis Fanger

But wood, help that people David around that wrong, in right weather the get some of there on volume sheer seasonality. harsher and not over you we have winter are will knock Chicago. us that offset You much of can hopefully,

Dan Lee

also lookie-loos. you get And

first casino Chicago place, the how Rivers new where to long And forget who XX XX have You land pretty to open; people long the I in years want get now. see it's close to years probably. open -- new been how in

Lewis Fanger

billion making Yes. in year Yes. the they're And $X.X revenue, a by way.

David Levine

All right. Well, of Best luck. good.

Dan Lee

Yes.

So, do of used an in to terms I mile pick on is, year having I earnest opening date. this a as job mean, an well, number I guess, and trying put to

within quarter, as good is, about third guess as is Your mine. that

and thereafter make opens But a in lot if our when get it They as in of X, month moving we And assuming and not much things open. we're then make then say you September, August. this some million that use quickly as to is money a exactly number. $X are can So in wouldn't -- they control. money August

-- So

Lewis Fanger

Dan, out. so close free it run time, feel that, to With of we've out

Dan Lee

hard. we're exciting. that's It's No, it. working I pretty mean,

we think and Waukegan game at great and us, got great had -- we I the we on for it a everything chops changer team a a everybody's right future, and is best in came this. of people And good gets. And you the is execute just it that as see five-year can It's It with that. once together fits Chamonix, now And right to need in time. you put perfectly. strategy as the size.

everybody. you, So care. Take thank

Lewis Fanger

you, everyone. Thank

Operator

We today's and Ladies conference. gentlemen, concludes this appreciate your participation.

disconnect. now may You