Q4 2019 Earnings Call

Good afternoon, ladies and gentlemen, and welcome to the Great Canadian Gaming Corporation fourth quarter and annual 2019 results conference call. At this time no that all lines are not listen only mode. Following the presentation, we will conduct a question and answer session.

[laughter] anytime during the call you acquired muted the systems. Please press star zero for the operator, well. So no call is being recorded today Tuesday March 3rd 2020, and I would like to tend to come talk to Mr. parents <unk>. Please go ahead Sir.

Thank you and good afternoon, everyone and welcome to Great Canadian Gaming Corporation's Conference call to review the Companys financial results for the fourth quarter and year ended December 31st 29 team.

Joining me on the call today is Rod Baker, the company Chief Executive Officer.

Athens, and the company's Chief operating officer Charmer, So the company's general counsel and cheap privacy officer and they're in caused the company's executive Vice President Finance.

I would like to remind listeners that the latter portion of this call is reserved for institutional investors and analysts any media related inquiries can be directed towards Chuck healing Executive Vice President stakeholder relations team responsible gaming [noise].

He can be reached out six all four to 474197 [noise].

Before we begin I must caution all listeners to this conference call may contain forward looking statements that reflects management's expectations regarding the company's future [noise].

These statements, which will be identified by words, such as anticipate believe except or similar expressions are based on information currently available to the company [laughter] investors should not place undue reliance upon these statements, which involve significant risks uncertainties and assumptions.

These statements are made as if the data this call and the company assumes no obligations to update or revise them to reflect new events or circumstances.

Unless otherwise indicated all financial information on this call is presented in Canadian dollars and is in accordance with international financing reporting standards for IRS.

Except for adjusted EBITDA, which is a non IRS term defined in the Companys mdna.

Unless otherwise noted all financial information for the current and comparative periods exclude the financial results for the U.S. regions as they have been presented as discontinued operations. After Great American Gaming Corporation was sold on June 27 2019.

I'll now pass the call the Rod will begin with some opening remarks, Matt will then review great Canadians financial results and old and overall operations and Rob will follow with some commentary on the company's strategic outlook Rob.

Thank you Karen good afternoon, everyone and thank you for joining us today I want to introduce to you our new Chief operating officer, If my answer Hanson, who joined US in December 2019.

That brings the skills and experience required to optimize on operational opportunities the credit facilities as well as developed strategies to successfully launch our new properties under development.

Welcome Matt.

[noise] I'd like to spend a bit of time to recap the key highlights a great. Canadian in 2019, then I will pass the call to Matt who will provide an overview of the company's fourth quarter and annual 2019 financial results.

Commentary on the Companys overall operations I will then discuss the company strategic outlook.

[noise] 2019, with a productive year with construction activities wrapping up on several significant developments that will continue through 2020 in 2021.

And in June 2019, we successfully completed the sale of our U.S. operations, which allows the company to focus on its short and medium term development plans within its core growth markets, particularly in Ontario.

In November 2019, we were able to increase our ownership interest in both the West T T partnerships in the Ci partnership.

We're also pleased with our recent efforts to enhance the company's capital structure as we move into a busy 2020, including the increasing capacity is the company's revolving facility closing the senior unsecured debenture offering.

Well as the substantial issuer bid offer to shareholders, which I will discuss in more detail later in the call.

I'm now going to pass the call them not to comment on the financial highlights for the fourth quarter and full year 2019, Matt.

Thank you Ryan Great Canadians revenues have increased by 8% or $26 million from $331.4 million to $357.4 million during the fourth quarter, 2019, and increased by 15% or $175.8 million.

So $1.356 billion during the full year 2019, when compared to the same periods in 2018.

The increase in revenues was attributable to the expansion of gaming and non gaming amenities and the Ontario properties.

Revenues for the full year of 2019, including an additional 22 and 120 days operations from the GCA gaming bundle and the West DTA game bundle, respectively, when compared to 2018.

Adjusted EBITDA was $152 million for the fourth quarter 2018, which included a 21.1 million dollar positive impact from I for 16, New lease accounting standard adopted on January 1st 2019.

Adjusted EBITDA for the full year up 29 team was $557.3 million, which included an 83.7 million dollar positive impact from I for 16, adjusted EBITDA for the full quarter and full year of 2018 were $117.8 million and 400.

$66 million respectively.

The increase in adjusted EBITDA was also attributable to the above mentioned increased revenues and the Ontario region, partially offset by increased operating costs related to expanding gaming in Ontario readers are cautioned that the financial results for the comparative period and 28 team has not been adjusted for I for six.

[noise] shareholders net earnings from continuing operations was $45.8 million or 81 cents per common share for the fourth quarter 2019, an increase of $19.5 million or 37 cents per common share from the fourth quarter 2018.

The increase for the quarter was primarily due to increased adjusted EBITDA in Ontario, and lower interest in financing costs on the company senior secured credit facilities. After the redemption of the 6.6% to 5% $450 million senior unsecured notes and the associated early redemption.

Premium of $9.9 million and write off of an amateur ice transaction costs incurred in the fourth quarter 2018, partially offset by increased amortization related to capital investments for the Ontario developments increased income taxes and the net effect of adopting I have for 16.

For the full year 2019 shareholders net earnings from continuing operations was $174.4 million or $3 per common share increased by $28.3 million or 60 cents per common share when compared to the prior year.

The increase in the air was primarily due to increased adjusted EBITDA in Ontario gain on sale of a parcel of vacant land NBC, partially offset by increased amortization related to capital investments for the Ontario development increased income taxes, and the net effect of adopting I for 16.

[noise] during 2018, we made significant development progress incurring capital costs of over $400 million to complete several exciting upgrades and enhancements. These capital expenditures relate most notably to the ongoing development over Ontario gaming bundles, including the New building addition at great Lou.

Aaron gaming expansions elements casino Mohan and elements casino clamber, all the building expansion that elements casino Grand River as well as introductions of new food and beverage offerings to complement gave me an improved guest experiences at several Ontario gaming facility.

Greenfield development of Pickering Casino resort, which will feature a full scope of gaming and entertainment amenities as well under way the casino building portion at the Pickering Casino resort with various dining amenities as near completion and is expected to open by the end of first quarter 20 point.

We have also been making great headway on the expansion of casino Woodbine structural and foundation work continues to progress.

For the remainder of 2020, we continue to enhance their properties in Ontario, which include completing several renovations at the west GCA gaming facilities in spring 2000, 2020 further developments to the great Blue hearing casino with the hotel at great to hear and expect it to complete in the second quarter 2020, and the hotel.

Entertainment venue at the Pickering Casino resort to open by the end of 2020.

I'll now pass the call back to ride for an update on great Canadians strategic outlook Rod [noise].

Thank you, Matt well done considering your volley been here for about 80 days [laughter].

As of December 31 to 2019, the company remains at a stable financial position with cash.

$330 million available capacity of $347 million on the senior secured credit facilities $703 million or the chichi partnerships revolving and capital expenditures credit facilities $87.4 million on the revolving credit facility of the West you T. partnership at 18.

Like $1 million on the revolving credit facility of Oak Hill, each subject compliance with applicable financial covenants.

Subsequent to December 31 in 2019 capacity of the revolving facility under the company's senior secured credit facility increased $550 million subject Covenant [noise].

Great Canadian continues to enhance its capital structure as demonstrated by the extension of the company's senior secured credit facilities for another year the increase in the revolving facility subsequent to yearend and amendments made to the revolving credit facility.

Wes GTH partnership during the fourth quarter of 2019.

Amendments of our credit facilities provide improved financial flexibility that will enhance the company's ability to achieve its should strategic objectives.

Furthermore, the senior unsecured debentures closed in 2020 will provide the company with a diversified financing structure by rebalancing interest rate exposure and bearing loan maturity profile.

We continue to increase shareholder interest as demonstrated by the recent completion of the current normal course issuer bid where the maximum available 3.9 million common shares were repurchased. Furthermore, on February 14th two Dolphins funny, we filed a substantial issuer bid offer to repurchase additional.

Common shares.

The bid materials were mail to all registered shareholders Odder about February 14th 2020, a copy of the bid materials can also be found on C. Darren.

Regarding our it did currently before shareholders for their review, we encouraged to all shareholders read and familiarize themselves with the bid offer and in particular section seven and eight with respect to certain conditions variation of the offer.

As you are aware their current evolving global dynamics that are fluid and that are not within the company's control. These dynamics potentially may negatively impact our business going forward.

It's not where the case would not only negatively impacts value, but more importantly, it may necessitate greater financial flexibility and liquidity than would otherwise be the case.

Our board of directors shall continue to assess the situation and exercise their fiduciary obligations to act in the best interest of the company and all shareholders. During this period of global uncertainty.

Parents, we can now invite questions. Thank you. Thanks, Rob before we begin today's question and answer session I would like to remind everyone that questions will be reserve for institutional investors and analysts I would also like to reiterate the company's investor Relations philosophy, which encourages investors and analysts to utilize the public conference call for their principal medium for.

Speaking, great Canadian Senior management, well now go to Una thank you.

Thank you ladies and gentlemen, if you do have a question. Please press star followed by one on you touched on the phone you will hear eight suite on prompt acknowledging your request should you wish to withdraw your question simply press Star followed by <unk> and we do asked that if you're losing a speaker phone to please lift your handset before pressing any keys. Please go ahead.

Adam Press Star one now if you have a question.

And first you will hear from Derek Dley at Canaccord. Please go ahead.

Hi, guys.

Right I appreciate your comments here at the end, saying I start with that can you just talk about if.

Any impact that you're seeing so far on your operations from.

Covert 19, whether that be in your Vancouver properties are in Ontario.

Sure no problem. So to date, we've seen no impact that we could identify at any of our properties.

So that's very good news and obviously if you look at our results. It was a by and large I think a fairly decent quarter as well from a math perspective.

You know prospectively going forward, we're certainly not a health experts, but we're watching very very closely the dynamics that are playing out.

It around the globe on a on a literally daily basis things are changing quite quickly I would also take the this moment in time, you know as a large organization.

We've had a crisis management plan.

Thats been prepared for many years that thankfully, we've never had to access many many components of that.

How form the nucleus of Colgate 19 strategy. If we are in fact faced with varying degrees of influence on our operations.

So were as prepared as we can be for whatever might come our way realizing a critical importance number one is a health and safety of our team members in our gas.

To be follows along with making sure that our company survives whatever is thrown at us to that the best of our abilities. Both from an operational as well as a financial perspective to the benefit of our shareholders. So it's very much on a go forward very significant concern.

You know we have no ability at this point in time, I think to narrow down.

What we think the future looks like but were as prepared as we can be I think his management team. This organization to deal with it to the best for our abilities.

Okay, and then just in terms of the S&P that you have in place. It again just following up on on I think your comments there at the end if you haven't seen anything to date that as sort of impacted your your your properties or any of your they the fundamentals of the business.

What kind of lead you to make those comments, which seemingly err on the side of caution you know.

Given the bid it does expire I believe in about.

Two weeks in a few days.

Yes, so like I think I think if we were silent without the caution how quickly things are evolving out in the in the world frankly that would almost be rack close I think looking back and even sitting here today, our business is very sound and it's.

Barry its operating in in truly the normal course.

You know that could change very quickly if you know when we're not skilled or schools in in health care dynamics.

There are obviously extremely low risks in the markets. We operate right now that being said some other markets have migrated from a containments strategy of identifying isolate up through to what they called mitigation efforts, which are encouraging or even mandating social.

Since thing and you know our business has been through many shocks and you know those that had been financial in nature are interesting because they very much hurt.

Many many businesses our business in terms of social distance thing out would be acutely impact it and so I think it's it's incumbent upon all of us to realize that it's a very fluid situation and all thing although things are.

Solidly good right now if we didn't discuss it.

You know people might be misconstruing, what might happen even over the short term here. So we don't want to be overly alarmist, but I think it'd be naive to not understand that things could change quite materially over a very short period of time and in fact, you know if you look at things when we launched the S&P not for a long ago February 14th.

Frankly, the world was in a very very different place than it is right now in this respect so it's been already I think it very significant migration through many parts of the world and we're very hopeful that Canada.

And obviously the world you know theres lot of mitigation and things don't get worse.

Before they get better that being said right now in many places around the world things are getting much worse before they get better. So I think it's I think it's just a heads up for everybody. So people are not naive and I would tell you I won't represent the board and their duties around how they should that manage our company through this peer.

Yes, I would just I would just reflect management's view as I did not see there a moment ago clearly.

Not only a thoughtful operational plan is very important through a period of uncertainty, but maximum financial stability and flexibility are paramount importance to be able to whether whatever storm comes our way and again, that's a financial orientation.

As I mentioned first and foremost the health and safety of our team members and gas is is you know order business number one here, but following along from that.

To be rock solid through any type of a crisis of sorts I think is doing our job on behalf of shareholders. So I think.

And that's I'd be a $500 million. That's that's a that's a big amount of outflow.

And sitting here today things Theres been no change, but we're still a ways away from March 20th when that's going to expire. So I just want people to be aware of that and make sure they've read through the circular with front to Conversely, I understand exactly what all of the causes meaning there.

Okay. No. That's that's extremely helpful. Appreciate the color there.

Just as it relate to that financial flexibility. When we look ahead to this year 2020.

You know what should we expect in terms of that the magnitude of Capex should we expect something similar to the Capex that you spent in 2019.

Yes. So I think you haven't had an opportunity to drill down so the number that we've published for 2020 $550 million than we were just over 400 million for 2019. So I think you know we've got a west G T a sort of finishing up in Q1 here and.

Pickering, which has been going well has been you know sort of Notionally split between 19 and 20 in terms of the actual dollars and then we're obviously as Matt mentioned, we continue to proceed in earnest with our would buying development. So the combination of those three a significant items in particular.

Invented by some smaller initiatives throughout the rest of the portfolio get us to a pretty healthy number that obviously, we would like to continue if at all possible through a period of uncertainty. So that's a pretty big number that we need to factor in as well.

If we're not generating the same type of cash flow in a status quo type of situation like we were thinking even not too long ago. So I think that that puts a another big number out there for you to factor and as you go through some of your modeling here, yes. Okay. That's helpful. And then just the last one for me.

Just looking at Ontario drilling down a little bit into that into.

The numbers.

Table hold was up quite a bit.

Anything different going on there is it more related to mix or is it just a factor of you know yet you guys had a lucky quarter and then number two slot coin in was down slightly in Ontario year over year and has that is that a function of just some player shifting towards the expanded table offering.

Well I don't know if I should be scary since mats Hollywood here for like 80 something days.

Did you want to do this or do you want me to do this no I think if we address the.

Some of the questions.

We look at the table hold specifically in Ontario.

It's not necessarily that we're changing the mix of the operations. Those are then set up for bringing more of the product online were programming more of the product right now.

But in reality.

You know, we just constantly look at the take the utilization of the Taming table games, what our guests want we're in markets that you know our guess they let us know what they want and so we're not necessarily moving to a higher hold mix. When you look at a the whole deals last year versus this year.

It's not it's 100 till 200 basis points not hugely and.

It doesn't it's not huge doesn't point on to me hugely that there was this there's a mix change, but more along the lines of.

Not only lot, but you know just bringing more product online as far as the market goes maybe.

Increasing some of the normalization I think that when you look at 20%, 19% that's more of where we want to be going forward and what will focus on as far as a company.

And I think on to slide side, I mean, we've had.

Frankly, not a lot of slot growth through 2019 in Ontario like net net.

I'm very excited Matt and his thinking its are coming to the table I think we have more opportunity to continue to do things and optimize our operations in that respect obviously, we've got a you know Woodbine has been <unk>. He key driver of that and it doing you know it's like the isn't it.

The tie that rises the boat so little bit and then or makes them go down. So we've got a very significant focus in that respect.

We hope will be augmented by a really fantastic Pickering opening as well through 2020. So it's still as we've been for several quarters been very much a work in progress, particularly Woodbine with not a lot of change, but we're trying to do some things within the four walls right now that we think will serve us.

Incrementally better through 2020.

Great. Thank you very much.

Okay. Thanks to our.

Thank you, ladies and gentlemen, I will remind us if you do have a question. Please press star followed by one I know you touched on <unk>.

And your likes your next question will be some spot Khan.

<unk>. Please go ahead.

Alright, Thanks, just a one on a the S&P I guess you know historically your balance sheet span in a relatively under leveraged compared to some of your peers on.

I guess, what kind of led you to change your mind with regards to your kind of capital strategy to kinda used some of your balance sheet to buyback stock was it where you are in the redevelopment process or was it something I just want I understand that thought process behind that.

So.

I think it's a very good question and I think I wouldn't necessarily say changing our mining.

I think things have continued to.

Evolve as Weve seasoned are experiencing exposure to both the GCA and the west GTK, but as you know weve been when we thought our stock represented exceedingly good value.

We've been very active with our and JB. If you were also a really close student to it when our stock was maybe the delta in our minds at least wasn't as big we weren't as aggressive with it. So even if you look at this past year, we were fairly aggressive down around 41, and a half dollars when the stock was frankly higher than that.

We were not active so you know I wanted to not pick at your commentary because we have been doing that obviously this is a much bigger swing all at once in terms of a half a billion dollars. So I think it's a very fair comment to make and you know we've we've we've.

Very big businesses and along with those purchases made at our and are very focused and excited about very significant capital programs and obviously when you buy things and you entered new markets and you start to develop things.

They come with learnings and frankly, the come with risk.

Because of lack of knowledge and understanding and we've got to a point.

Between where we are positioned from a development program as well as from an operating model.

To be comfortable in I would call. It a status quo world I mean, it coated world I think we need to talk about things differently extremely hypothetically, but differently, but put that aside for a moment, but in terms of the thinking of the board a supported by management when that was launched we felt obviously that.

Long term value was not represented in our stock price at an ability to offer a significant premium depending on the desired level to shareholders too.

Repatriate some of their capital.

We want it to afford them that opportunity to decide what made sense from their perspective, what we what we actually felt that despite the significant capital development program still ahead of US the way, we have set up our businesses and with the stability that we felt was inherent in them despite threshold type changes going forward.

Award.

And the financing structures that we had in place both at the partnership levels in Ontario, and then at the Great Canadian level upstairs that this was something that although it was levering up it wasn't as far away from our core principles as the big number actually looked when you played it all through and work through so.

That's how the board got there a upon working with management through a this initiative.

Okay, and then just more of a logistical question on the Sobi I guess the offer is out I guess, what the market volatility that's been taking place over the last few weeks is there.

Are you able to modify that us I'd be a dollar ones. It's out there you have to wait until the investors get back to and Ben you can make a decision.

Got you know the price range or the volume.

Yes, so basically I mean, I don't want to paraphrase it and legal heuristically, that's why I encourage everybody to read the circuit or especially section seven and eight.

In terms of varying terms.

Financial or nonfinancial, or even terminating our there's a lot out legal language, there and I think it's important to read that to familiarize yourself with the amount of latitude and flexibility that the company in the board retain through the offering circular.

Okay. So yes. It basically basically we have there is the ability to do that everything that you asked there, but I don't want to go and paraphrase it because I think it should be read technically for what exists in the document there I think it's just safer for me and it'll be more straightforward and appropriate for you if you actually going.

Right the language.

Okay. Thanks, and then you brought in a new seal obviously last year I guess can you maybe give us some insight into that thought process was it you know with a bigger operation you want it to brand somebody would that has experience managing large properties or where are you looking for somebody to come in and change you know certain programs are marketing things like that's one understand.

The thought process around that and then any examples you can give me a little girls. So you know what some of the changes today have been that'd be helpful.

Sorry, if you're talking if you're talking about Matt and staring out and right now here. So I don't like to flatter people like that's actually not my style here, so I need to be very careful what I say look.

We've more than tripled the size of our company in the last few years.

And I think you know the assets that were also creating are much more global and even more amenity and more complex and more interesting than the portfolio that we frankly have created organically over the last 38 years and I'm the kind a guy as is the rest of our team if.

We can have more better smarter that come with other experience that can help us be battery of what we do collectively as a team. That's the way you make a lot of success and we've brought lots of good people then.

Including Jon Rousseau is on the phone here over the last few years, obviously, all of whom our most of whom Darrin who's in the room as well a a few years ago that you've never heard of that or toiling away you know providing fantastic leadership throughout the organization. So this is just.

Another example of a model that we've done that frankly, it's enabled us to do I think a lot of amazing things over a very short amount of time.

With a passing great like fairly well.

Matt I think is a tremendous new asset for us at the most senior leadership level here.

And look the last thing any company wants to do is drink its own cooley. So when we bring new team members and we very much value and support them for their individual ism as well as experience they bring to the table that all has so far always proven to be highly complementary to what we have in terms of our skills and.

Now if you want to drill down this specifically the Matt I could go on for a long period of time, He's had a very successful career going through many areas of the.

Caesars in pre Caesars organizations.

And I think has a fantastic track record of what he's done and when you look at places like Pickering in that and it was in my prepared remarks, and we've put in there in particular 'cause it's true.

Recurring and would buy obviously in addition to the rest for assets I think what Matt brings to the table.

It is hugely valuable and it's going to provided that much better if an opportunity to do our very best job at at bringing those assets online in the most appropriate fashion and making the most of them. So you know and I don't want to put too much on a shoulder squeeze just one guy no. One person does anything me or Terrence income.

Could it so it's to lead a team the right way to do some really really amazing things with all of your capital that we've put to work here. So you know it and it's early days and but he's been awesome you know he's gone here in read all the stuff and he's been to 20 sites in the first 28 days and I think it's really been engaging well with her team members.

And I have very very high hopes that.

Not only the three of us Terence and Matt and myself, but the rest of our senior leadership are going to continue to execute well and everyone's right, but guinea sitting here. So I don't want to see nice things about them.

Thanks, and then just a last one for me on more kind of the Ontario market or more though.

You tier market on the would've been facility you know you added tables, there a while back they can you give us what your learnings have been since you added that gaming capacity with regards to tables, you know as the take up been inline with what you expected does it give you more or less confidence and the amount of gaming capacity, you're adding across kind of all your facilities around the GTN and lastly.

Do you think your cost structure and this GTL bundle at least for now is that a good place with regards just cheniere like have you been able to get to a good level based on what you've seen.

Around usage over the last year and I was just want to get an idea you know the progress I'm your middle of last year and a half than what you've learned from the trends.

So I'd like to do part of this firstly and then I think Matt non polluted external lessons from the rest of the World I think we'll be also a refreshing perspective. So we.

We time to market on gaming capacity, you know time is money to a large extent. So we were very focused on bringing our assets online obviously, improving the slot business as best we could but in particular tables being launched.

At Woodbine for the first real gaming tables within that proper GTK within seven months. After closing the bundle I think that was a that was a very significant and positive.

Financial opportunity that shareholders in the company benefited by a and we've done that I think there has been very good learnings incrementally since that point in time and if you continue to look as we like let already circled a the introduction of those tables that continued growth in.

The tables business off a.

Look at it.

It's a very good asset, but it is as we've talked about the very beginning its very limited and its amenities and its presentation of a true gaming casino experience. If you look at the math side of it you can see this the team has continued to optimize and to reach into the marketplace and suit not in massive X.

But then show, but certainly incremental growth rate type numbers. There. So we're encouraged by that we think the team has done a good job I do think Matt when he comes in not only at Woodbine, but obviously pickering as well can take his global learnings and experience and continue to work with the team and to improve those.

Both rates going forward and what is still I think when you look at the market broad based a significantly underserved market, particularly if you could offer up a true an appropriate gaming experience for them. So that maybe that's enough low value stuff for me Matt over do you I think some of your early days impressions would be helpful. No I think if I.

Look at my first couple of months here I I was taken back by the amount of scale that this team you interference brought online and then it's hard enough in the gaming industry to essentially opened one casino and tables. When you take that times 5678, its unbelievably to take a look back and.

See what has actually been accomplished and so we've been talking about the last couple of months of acquisition phase versus operating phase and anytime you open up a casino. These days you just simply can't opened the doors and people show up and you make a bunch of money.

You can see that any investments the United States. We're now it's one or two years. So I guess, what we're learning here and what we continue to learn going forward is that it's not a business that today is how it's going to be tomorrow or whatnot. Your continually learning from what I've seen in early days.

It's still growing it's growing it feels good but I'll also from the cost side. We're now pivoting from this get it open get it right to now really sizing it to what we think the market can be which factoring in the markets still growing by the way. So so these are the type of things that we're looking at but.

At the end of the day, you do want to make sure that as you bring this new product online as you add these new assets online your efficiencies improve and so that's what's going to happen going forward and I think you know we continue to learn on the revenue side I think that the two products.

Want to everybody listening on the two products that were opening in this market are in my mind very different from what we've had so far and so it's going to be another learning opportunity for us as we bring this asset online to really figuring out.

And really refining what this market is and so I think I think this team nailed what these two products need to be and I think that we're doing very well and getting it opening on time and within budget.

I think that what you'll see is more growth and us really focused in on the cost structure I decided business, making sure that it flows incrementally to the bottom line.

Okay. Thanks Bye.

Did you have any further questions con.

No I'm good thank you.

Okay. Thanks have a.

Thank you, ladies and gentlemen, as a reminder, if you would like to ask a question. Please press star followed by one on your Touchtone phone.

And your next question will be some Jane Lipinski Ensign funds. Please go ahead.

Hi, Good afternoon, I just had a quick housekeeping question.

On the financials, so if I look quarter over quarter.

In Ontario, I see gaming revenues increased by.

About 18.6 million.

But if I look.

Gee are.

Is it was down slightly so can you just kind of bridge is there something else in gaming revenues that maybe can bridge that gap Pcs or something.

So as we've talked about a few of the quarters. They don't necessarily a line up this quarter. There was also.

I don't alignment in terms of the ratios the too, particularly as it relates to the west you today, we've talked about the west DTA with some delays that we've had and so there was a misalignment there that was reconciled in this quarter, which assisted the results I would tell you said, we don't foresee that type of for.

Sure this ratio adjustments going forward. So that's sort of like a onetime thing that exists there that is going to.

I would say mess with those ratios that you just talked about a little bit.

And so the quantum or the magnitude of that.

I just back of envelope math would suggest around just north of $20 million is that kind of in the ballpark and so it's actually not it's not that high it's actually lower than not but as I said, there's other noise in there there is.

The way, we actually track the gaming revenues. It does not like poker revenues doesn't have a bunch other things in so they don't actually lineup dollar for dollar. So I apologize for that so I think I think you should only look at them Directionally, but you can't actually go in and have them type back in dollar for dollar.

You're not going to you're gonna get closer, but you're not going to get like close.

Got it okay. Okay. Thanks, very much okay, you're welcome.

Thank you.

And at this time is to dwell we have no further questions. Please proceed.

Thank you Sobi and thank you everyone for participating this afternoon before we conclude I would like to remind listeners that forward looking statements were made during this call.

For those who joined midway I encourage you to listen to the replay of this call to hear my earlier comments regarding these forward looking statements. This replay will be available through the investor relations sections of our website at Www Dot GC gaming Dot Com. This now concludes our call. Thanks, everyone.

Thank you, Sir ladies and gentlemen, this doesn't do you conclude your conference call. So today once again, thank you for attending and at this time, we do assets. You. Please disconnect your lines have a lovely evening.

[music].

Okay.

[music].

<unk>.

[music].