Q1 2020 Earnings Call

Welcome to the would resorts first quarter 2020 earnings cool all participants are on the snow only until the question answer session of today's called.

You asked a question pressed or 100 Touchtone phone record your name and I will introduce you. Please let me herself to one question in one followed question.

Coal is being recorded if you have any objection to me disconnect at this time, Oh, they'll turn the law and order credibility President and Chief Financial Officer, Sir you maybe again.

Q operating good afternoon, everyone.

On the call with me today.

Medics in Las Vegas, and on the phone line, Marilyn Spiegel, Yeah, and call and then to Chan drunken rather <unk> frantically, but <unk>.

I want to remind you that we may make forward looking statements under safe Harbor Federal Securities laws in those statements may or may not come true Oh, now trying to call over them.

Well, thanks, Greg and.

Not everyone I I hope that you are all safe and a healthy frankly working from home right now.

Instead of just jumping right into our first quarter results, what I'd like to do you spend some time talking about how we've handled.

Pandemic and the way that we've been thinking about it.

So well before we close our facilities in North America, because of our Macalik experience.

I reached down to one of the leading experts in really in the world in terms of a pandemic research in global Health Security, It's the director for Global Security from Georgetown University.

And engage that team months ago.

And the space.

<unk> conversations with that team trying to understand the situation and what was going on and how best we can protect our customers in our employees and provide information to our medical communities.

To our state and local governments, we actually because of that led the industry, both in Massachusetts and in Nevada in closing our casinos, we suggested to the Massachusetts Gaming Commission in mid mid March that it was time for us to close.

On the data based on the science and the potential community spread that we were saying.

We actually closed our resorts in Las Vegas in advance of the state declaration to close and and we were the first that led that.

And we did it because at that time it was the right thing to do.

And we knew that we needed to be early and to make that move.

We also new during that time, asking our 30000 employees team members $15 and have them in the in North America and 15000 in mckell.

That a pandemic is upon us that we're closing our resorts.

We felt that we should invest in our culture right now because it's taken years and years and years to build the best team in the industry.

We chose Nite shows to pay Oliver people since we've closed the end of May.

We are one of the outliers in our industry or in hospitality in general that have done that.

But I believe that investing in culture right now.

And making sure that your team members feel safe during these times as a corporate responsibility and I also believe it's a great investments.

Not sure how long this last and I'm not sure how much longer winking continuous practices currently to may 31st.

But what I know.

As when we do reopened.

And whatever state that is in Las Vegas and in Massachusetts.

What our team members data smiles other face it'll be underneath the mask, but it'll still radiate through because we're in the business of making people happy.

And only if our customers and our customers will only be happy if our employees felt like they were part of the family.

So that's been my focus is to really make sure that we're doing this as a family and to think about the future. Because you can quickly disrupt the culture that takes years and years to build.

It also allowed US I think to be to act quite fast in the way that we're thinking about or reopening because of the resources we got it.

As an example.

I believe we were we were one of the first companies in the nation, not interested or industry, but in the nation.

To produce a detailed reopening player.

We published in for the World to see on April 19th.

It's a 23 page plan that goes department by departments area by area space by space.

In terms of Howard one to keep our employees safe in our customers safe.

It's actually become known as the wind plan and I've had sports teams call to walk through it airlines call and walk through it retail large landlords, calling about through it developers.

Dozens of C.E. shows.

To look at the when plan and to think about it and apply it to their own business and we did that because we want to help lead the conversation to at reopening.

Our economy data phased approach and then a safe approach and focused on the data.

We've been working with our experts in state and local officials on benchmarks to track that should be public and transparent.

We've crafted with our medical community here in Nevada benchmarks based on disease gross.

Which is a case grows coupled with hospitalizations and deaths and the disease growth needs to be at a certain level before you consider reopening we have set benchmarks for I.C.U. capacity with our medical community as well as ventilator capacity that you need the ability to achieve two times surging covert.

Patients in your eyes, you without needing crisis care to begin a phased approach to opening as well as.

Activity rate, so the which really measures the amount of tests are being conducted in an area.

Those benchmarks I have been a widely distributed they're going to be quite public.

And it's really a a great way that our medical community's looking at this to think about phased openings of the economy.

In Nevada, our governor as launched a the concept of a phased opening.

The phase one shouldn't begin and in the next week or so sometime around maybe you know mid may and then based on the bench marks in the data I believe will continue to see in phase two openings of additional businesses.

And potentially opening of our business in late May but again that is assuming that we stayed in line with the benchmarks and that the environment say for customers and for all of our employees.

Massachusetts, They have formed a task force at the state level and I want to come in both Governor says slack and Governor Baker <unk> earlier fast action and for their tireless work on this effort.

Massachusetts is also I believe will be coming out with the phased approach to opening they have clearly had a much more difficult time, then Nevada has given the high amount of cases in death's there, but their medical community has handled it really is as good as has been handled around.

In the globe and it should be commended.

On the testing front, we think a lot about this and in fact, we in Las Vegas is signed a partnership with the University Medical Center. The research hospital in Las Vegas, whereby any of our employees can get tested for cope with 19.

In fact, we have onsite testing tomorrow set up an 85000 square football room with 25 nurses from U.M.C., all appropriately spaced out and we believe that we'll have over the next couple of days thousands of employees that we'll have been tested.

These are the types of things that we're doing now in early intervention will lead up to opening our properties.

In the cow, we as we've been really remained open <unk>.

Out after the closure it's free in the first two weeks of February. However is all of you on this phone no. They're you know the mckell volumes are really not been there because there's a 14 day quarantine of going in and out of the cow from Hong Kong or mainland China.

What are some encouraging things that we have seen them a cow is first their habit there hasn't been a new code the case and the cow in weeks.

Second in mainland, China, and Mckowen, Hong Kong teachers, and students are back to school as of last week.

There's continued to be progress and and the Mccain government has probably talked about it in the Hell check system, which in China as I'm sure a lot of you're aware on your mobile phone you have a red yellow or green system, they give access to it.

Yes areas.

And the cow has been working very closely with with long dogs to make sure that those health checks are in line.

All of those seem to be in our progress.

So we would anticipate.

As as everyone else is that progress will continue in terms of reopening the borders and a cautious way resuming tourism at a cautious way.

And the the amount of progress that's been made over there has been extraordinary.

Just looking at the results high level before closure in Las Vegas, rather far was up eight per cent in Massachusetts, we were on our way to record even and wouldn't bring it up or day before closure was up all the slot floor about 13%.

In a cow as we laid out for all of you on the first quarter call. During the closure, we were roughly between 2.2 and 2.6 million a day.

Burn.

And what we saw from February 20th to roughly March 20th after we reopened was a gradual increase in gaming volumes and particularly led by VIP in premium segment to the point, where our burn way in a matter of three weeks from two and a half million dollars a day to $800000 day.

And we were back to roughly 25% of our volumes in the fourth quarter.

So we are right, we're continuing to be optimistic about what's going to happen in the cow as be cautious reopening of the border continues. We're we're focused on her three pillars that we talk about on these calls which in the cow and in North America in the cab particular investing in our people which reduce.

<unk>.

Investing in our communities, which includes the greater Bay area, and really helping to position when it to be beneficial in the greater Bay area and and working on investments throughout the region and investing in our assets. So during these times we have continued extensive designed.

<unk> work design work on our Crystal pavilion projects in the cow and we May we were made very excited about it.

[noise], so that that's really where we are right now we I believe we're going to continue to lead in our industry in Las Vegas, and in Massachusetts, We're working very carefully and closely on a daily basis with state and local officials and the gaming regulatory bodies.

And I believe that the data will be transparent has to opening dates based on benchmarks and it will be ready to begin in the new normal atmosphere.

With that I'd like to turn it over to kragh to talk about some of our financial results.

<unk>.

This quarter all focus my remarks on the company's client liquidity position and I expect expected cash burden rate.

The onset of the outbreak of the virus in both Asia and the U.S., we took a media and decisive action to bolster or global liquidity position.

Maximize our financial flexibility and preserve catch on April 30, or global cash liquidity position was nearly $3.4 billion, providing the company was significant runway to whether the impact and dynamic on a business.

In the cow, where we drew down a revolving credit facility in February we had approximately 1.8 billion up availability of available liquidity as of April 30th and then the you asked me a total available liquidity of approximately 1.6 billion at the end of April.

Are already strong domestic liquidity position was recently bolstered by the issuance of 600 million of unsecured notes in April.

The transaction was Upsized from 350 million euros, approximately eight times over subscribes you were pleased to be the first company or industry to issue on secure notes and two onset of the pandemic once again, highlighting the strength about brands and I'll be.

We also obtained a covenant waiver for U.S. credit facility further increasing financial flexibility.

Well positioned to bridge, the current pretty dumb uncertainty into thrive operationally strategically during your public area.

Turning to our cash burn rate on the closure casino operations in the cow in February as Matt just alluded to we announced in expected daily AAPEX burn rate in the cow 2.5 million.

As he also mentioned upon reopening in late February or normalized <unk> approximately 800000 per day in March.

And with the subsequent implementation of additional public health measures quarantines and border closures. This rate in April was approximately 2 million per day reflective of limited business farms until the Reimplementation IFISA schemes and full reopening of trampled to Hong Kong, we expected daily burn rate in the 2 million to 2.5 million raging mckell, excluding and.

<unk>.

In the U.S., we have currently committed to pay all our team members there for wages and benefits under this approach our daily Opic's burn rate in the U.S. is approximately 3.6 million inclusive of corporate expense.

Locally cash interest expense and are scaled down cap X. program combined or approximately 1.7 million per day and also current global worst case, all in daily cash burn way.

And we 7.8 million per day meeting, we have sufficient liquidity runway and a worst case no revenue full pay environment until at least the third quarter of 2021.

We will of course continue to actively assess our cash off our backs usage and recorded the position is the situation involves and we'll make adjustments as required based on the facts on the ground, including likely reopening days.

<unk>, we have postponed the when Las Vegas room, remodel, which was slated to begin in June conserving approximately 170 million cash liquidity.

We're fortunate to have the highest quality product in Las Vegas, and we plan to revisit the project again as we plan for 2021.

We will also be very judicious with our global normal course maintenance capital spending over the coming quarters only proceeding with our highest priority projects are pretty construction planning work on the Crystal Pavilion at when Palace continues with our in House development team has mentioned.

And in order to further solidify the company's financial position or board, along with senior management have decided to temporarily suspend the company's quarterly dividend preserving over 100 million of liquidity per quarter.

We look forward to resuming the dividend wouldn't business conditions permit.

Lastly, Ah quickly note that are recorded.

The U.S. properties in the first quarter was negatively impacted by a 75.7 million dollar a cool associated with our commitment to pay our domestic team members full wages and benefits after a quarter range from April 1st through May 15th 56.4 million a basic rule was from in Las Vegas, and 19.3 million was for Boston.

With that we will now open up a call to keep it.

Thank you to ask a question for store one on your Touchtone phone.

Record your name clearly after the prompt an hour it's true she.

She's limit yourself to one question.

The question to withdraw your question I start to.

Our first question comes from Carla Center.

No.

Hey, not <unk>, how how are you guys. Thanks for the comments.

Maybe you could talk a little eight about obviously, we have some time now <unk>. So complex some of those quarantined and these restrictions I.D.S.P.'s restrictions <unk> a little bit when you start thinking out a little bit the summer months, how did you would.

<unk>, it's across the segments.

So <unk>.

Just based on our limited experience <unk> between you know February 20th March 20th we definitely the V.I.P.M. premium segments come back faster, there's clearly pent up demand for activity. If you look at what's going on in Beijing, and Shanghai you know the.

Go back to work and resume production campaign that has been launched there's a lot of activity. So I I do believe that there'll be demand for the cow without a doubt I am also very happy that we're in the business of the premium and hired which requires less people.

And and you know and more revenue.

So you know it where to we're not a you know we're not looking for 100000 people a day to be going through our properties. That's never been our business. We've always been focused on the premium did and I believe that that will definitely be the segment that comes back first in the county.

Yeah Carlo I would just add to that as as map mentioned when we reopened in in February and March we got back to 25% to 30% of our queue for 19 gaming volumes.

That really reduce the cash primary and frankly wasn't far off from the 45% or so of two 420 19, GDR volumes that we need to hit heap adopt break even.

So you'll have your own view of the cow wide G.G.R. mix share et cetera, but whether it's B.I.P. or premium left mass led we feel like the snap back will be pretty quick.

Obviously help our cash flow position.

And Craig up about 45% that's break even I'm, assuming you're you're assuming that's the same split as generated in the ports you that you mentioned, yes.

<unk> and then if I could just won't follow up on for either of you. How much do you think about the president's more or less stuff out the five to 10 year view that.

Patient cow will take as it pertains to the <unk>.

<unk>, you will process and the importance of of the capital spending clearly guides have.

The crystal and.

And whatnot, but in terms of that renewal process. How much do you think that five to 10 year plan for factor into a deep thinking like a session.

So <unk> you know, we we believe and what's happening in the greater Bay area, and and or make out in China. We are focused on doing the best began to be a part of it and to invest in our people our communities and are.

Sets. So we we put that plan together at the beginning of this year. It's still our plan. We're focused on it we think it makes a lot of sense for the community for our people in for our shareholders. So you know that's really where we are and that you know we're we're not we have not deviating from that plan.

Thank you very much got.

Next question is from joke rough with J.P. Morgan Your line is no.

I'm good afternoon.

<unk>. Thank you for your prepared comments and soft.

The first question relates to make how obviously you saw street <unk> going to be 18 opinions hadn't internet period in February and March.

Can you talk about data of your top junkets, where the top junkie tune the cow, yeah, what kind of financial position or are they in how mindful do we all have to be this has a consideration too assess the V.I.P. segment recovery.

Would you be willing and where you are you anticipating lending work of junk, it's and directly to the I.P. players.

So Joe you know.

We're we're obviously in a very close contact with the large joke. It's fair I think everyone's trying to understand what liquidity will look like we don't have any answers right now and how much will be wanting to do our joke is but it does seem like the larger junket operators are still.

Okay on the liquidity side and everybody's just waiting to see what's going to happen and you have any thoughts on that.

<unk>.

Anecdotally locally the joke, it's or just like the rest of us are waiting for the borders to ease and to get back into business. They like the rest of us have kept their teams together in anticipation of business picking up we can see the pent up demand I think the may holiday is giving people a lot of it.

<unk> something we talk about locally use the <unk> advantage.

We have proximity to China, we've got proximity to Guam Dong and the big as well to use province in China 140 million people. All the 49 I.V.S. cities in China 21 of them are in quantum dogs. It looks like our borders will be opening up over the next couple of months and I take care.

Everybody's anticipating goes building business very nicely the respect optimized in China, what we've seen over the many holidays a lot of resort and luxury driven travel a lot of family driven travel, which was very good for cold site. We saw trim long resort just a stone's throw from a cow.

<unk> over the May holiday.

There are people that want to calm and once the borders ease we will have players when we would have customers back and the junk around the same position.

And and I think just to clarify that may holiday traffic that we witnessed whereas in mainland China not not necessarily cow.

But Jim languages, you know right intention island had really strong volumes and as well as lots of resorts around so I think that the grade point, there's clear demand for for the product that we offer.

Great. Thank you and then switching over to Las Vegas, <unk> can you talk about your.

Current thoughts on on on how you're opening I'm presuming, it's going to be one of the the two assets on the strip and and when you think of you know what sort of on a percentage of revenue either adopt break even threshold <unk> you need there that would be helpful. Understanding how are you thinking that I call for me.

Sure.

So Joe I'll I'll start off with this in in Las Vegas, We're still working through what our opening plan is going to look like.

We were working closely with the state officials and gaining control board here. It. It's you know unclear if it'll just be one of the two assets I'm currently given all the occupancy limitations that we will have self imposed.

You know it will it could barely likely be both of the assets open, but just a with occupancy restrictions.

We do anticipate.

As we get closer to an opening weeks from now that there will be pent up demand and leisure segment.

We've seen that in a lot of surveys that have happened out there and so you know we're working through that I think each day people's mentality changes, depending on where they live in what they're experiencing.

And you know if you look at what's happening in in Texas, right now with the you know various food and beverage outlets.

What's happening you know on the beaches in southern California, we're going to have a very safe environment, but we will have an environment that I think a lotta people want to to come and participate in.

We won't be opening large math gathering places nightclubs are convention areas are shows, but we will be opening you know most of our restaurants and working with our retail partners.

To try to have an experience that will be safe and fun.

So, Maryland D. of anything you want to add to that.

No I think that's really the essence of what we're going to do I mean, we do see demand and we see the leisure market coming back to drive in markets for sure the casino customers the value oriented ones and some of our hosted customers can't wait to come through the door like when whatever we open it's going to be an integrated.

We don't want experience that well rival any other hotel that is going to be opening up any other resorts have I'll open up.

And Joe the answer to your question on the it's cracked here that the answers your question occupancy it really depends on how much of the campus. We open it has met alluded to which you know we'll make that decision based on public health considerations in our view of demand over the course of 20 looking forward over the course of all of 2020, so depending upon what we open.

We would expect to break even at the 50% to 60% occupancy level.

Thank you.

Next question is from Felicia Hendrix from Barclays Open.

Hi, Thanks, So much did you hear from you all thanks for all the detailed comments Craig on on liquidity given us a decent amount of information I'm. Just wondering if we could take one step father, you know just in the extreme case that you didn't need to access more liquidity I'm. Just wondering if you could walk us through the incremental letters you have.

<unk> and on the U.S. side.

Sure I I think you saw to access the market just last month and so we have the we think we have the ability to do that to the extent that we need to but with 3.4 billion on the balance sheet and really being at peak burn now I don't anticipate we'll need to do that but I think the capital markets. The capital market showed that day.

We're we're more than happy to.

Embrace us.

Okay. So there's no limitation in any of your you know.

That.

<unk> new component in Macau is at the the concessionaire level on a senior secured basis. So we would have access to the bond market. It W.M.L. and in the U.S., we actually got a a covenant waiver even mobile systems kick out when we got a covenant waiver on our U.S. facility. So so we have handled.

Room to add liquidity to the extent, we we need it though again I don't anticipate we will.

Yeah, great. Thank you and then and then you also just was mentioning <unk>. That's just already give you could get into a little bit more keep her walking through kind of how you're thinking about capital spending you know 'cause this year and and next year and you did mention some of that relative.

You know with things shot you know you that give you an opportunity to get a headstart on or accelerate your.

Plan.

Yeah.

Hey, Matt So we went through our long rest of capital projects, and Massachusetts, Las Vegas, and in mechanical and we've effectively probably all of the short term things on hold outside of something that under construction now for example, Delilah in Las Vegas that was halfway through <unk>.

Structure, and we're going to finish that but the large projects room remodels. Some of the other things that we were looking at we have to put on hold until we're cash flow positive. So you know, we're really focused on maintaining our liquidity right now.

Okay. That's helpful. Thank you.

The next question is from Sean Kelly Bank of America.

Great. Thank you and just wanted to pass along my sentiments in thanks for all to just keeping all the employees on the payroll I mean, you're one of the the few operators across all of the companies that we cover that's doing that and I think that that needs to be set that that it's a really big statement to your local communities I think that's a big deal.

But <unk> just just overall if you could comment just you mentioned in your prepared remarks, you're talking to a number of C.E.O.'s and partners. You know out there was curious specifically online you know if any of this conversation that moved into 'em, specifically airline partners as it relates to lift into.

Into Los Vegas, because that's pretty important particularly to get into the higher higher price point 10, It obviously <unk> need to be something that works together with the broader industry out there. So just how are you thinking about that.

Yes, that's a a great question <unk> you know, we I personally spoken to the airlines the as.

You know lots of lip mask in particular, inter Las Vegas, and and you know in the month of May and June there's a dramatic reduction they lift capacities you can imagine.

You know some of the large airlines are starting to put their plans out there, saying his nation plans, which we've been encouraging them to be transparent add to it to start putting that out I think that there's continued disagreement between the airlines and T.S.A. on temperature checkers, which is you know kind of a logistical problem is.

Or are they going to do the minutes, so who's doing them. So there's some behind the scenes work that needs to happen and but you know there's the airlines or are definitely focused on it.

And there there can track and less now but based on my conversations it's been fairly short term because trying to predict what demand will be 60 or 90 days from now is almost impossible.

Given the speed of the information you know in the economy that we're all learning every day.

Thanks for that and then maybe the other question along the same dynamic would just be you know having been through one crisis not not terribly long ago, you know the the pricing strategy you know within Vegas and across the strip is also going to be an important variable here and obviously you know you <unk> you.

Position very much at the premium end, but you have to be you know impacted by what else is going on in the market to how do how do you think or.

You know both the sort of the balance of new supply coming back along relative to how you can kinda retain some rate integrity and and and because he kind of have to have both those variables work for this to be successful reopening should just how are you thinking about managing it.

Yeah, I think that you know fondness supply side that in the early days I don't think you know.

A lot is going to reopen in my opinion I I don't know how many resorts are going to reopen but it's certainly not even close to the entire Las Vegas trip.

Clearly the you know our base group in the you know is well not is nonexistent.

In the first few months after we reopen so we're really focused on a casino add on leisure and trying to capture a disproportionate amount of of that market people coming to Las Vegas.

So you know I I think that it'll be a slow ran because the group will not be there, but there's also not a lot of I don't think it'd be a lot of supply either so our our pricing power I believe will help dictate Ah how full we want our properties to be.

Thank you very much.

X. question comes from Thomas Island, with Morgan Stanley airline is no open.

Afternoon, <unk> you were at the White House last week meeting with the President what do you learn there in terms of one the government's expectation in terms of the pace of recovery and too.

Interesting comments from other corporate surround demand to start coming back to Vegas like.

I think there there's clearly a focus on a safe reopening of the economy I think that the the.

You know, it's obvious what's happening with this rapidly decelerating curve with our economy that you know that has to be blunt that as we brought to the the growth of covert 19, and so there was a real focus on how to do that you know it testing is continuing to be a real point to focus in in.

You know on that I think that there's been tremendous progress in terms of testing and testing capacity hundreds and hundreds of thousands of test likely will be performed over the next couple of weeks on a daily basis.

In Las Vegas, like I said, we're going to add the ability at working with U.M.C. When we open at win any employee and any customer that one for throb test you can get it we have on site.

Anybody we have three various antibody test that are going through.

Approval right now and one that already has it that we're working on that'll also be available. So I you know I I think that intelligent commodity businesses themselves need to work with medical communities to make sure that that those are available. It's we're we're definitely doing that but there were there was a clear focused.

On how to reopen the economy and and to start moving in that direction.

Okay, and then just as my fog question obvious when they reported two weeks ago.

Being more interested in right now do you think there won't be more industry consolidation and where it is when at the company for that.

Yeah, I'm I'm not sure about that I think they during these times, there's usually a transactions that are out there and there could be some really interesting assets that could that could come up that I think everybody will be watching.

<unk>.

The next question is from Harry Curtis.

No.

Hello, everyone.

My first question it relates to they said just the timing of opening in in in the kind of what do you think the authorities are waiting for particularly given the opening Tim long and the fact that there there haven't been any cases and cogut in yeah into account for weeks.

I you know I'll start with this and then turn it over to end. So I think that situation. There's been handled it really well in Macau I I think it's been almost 28 days without a case.

There's been clarity daily press conferences lots of interaction operators are focused on it employees are being very compliant in terms of you know wearing masks and what they need to be doing in hand, standardization and there seems to be a really deep collaboration and cooperation with the cow.

And and in Guangdong in terms of these health checks and you know to begin to move in a very reasonable and data driven way. So to me. It seems like every two weeks, there's progress there's real progress and in a way that is measurable and.

And people can understand yeah, and what do you think.

<unk>.

Beep.

This is in the chief executive in his policy address said that when mccollough and the region of Guangdong are stable that they will look at the process of reopening the border restrictions they'd been very methodical about it when we face start to levels of risk with depend demick there <unk>.

Dreamy quick and decisive which we appreciated and now we really appreciate the fact that it's about safety first they're facing the lifting of restrictions they've had a very progressive development over the last two weeks. The first stage was allowing teachers and students based in Jew High who live in July.

Over to the code to attend school and teachers to work.

So they've gone through that process that process involved introducing relatives mass testing for the individuals that was very successfully done. We're now looking mccall people that are working in Macau, but actually living in July there. The next stage of the testing process.

The emerging and synchronizing of the two health codes for Guangdong and from a cow involved a lot of regional cooperation between government departments that they're deep and dialogue about that the system has been set up another try linguists and they've already altered the border.

Open enclosure hours back to where they were previously so there's a lot of things happening one of the great outcomes of this is the dialogue between Guangdong I don't recall, where the government departments level. This augurs really well for the future. When you look at Henschen Island, and how that opens up to Mccall when are we become.

It'd be good parts of the greater Bay area. So we appreciate the sequencing the measured approach and the safety first approach, but it's happening and it's imminent.

Maybe as a follow up P.N.D. a thing to testing.

Or customers wanting to either get a visa or by definition cross the border do you think testing is gonna be a prerequisite.

There's no clarity on that right now her.

Okay, Alright, and and you also mentioned Matt testing in.

In in Vegas, what what about are are you testing your employees in in the cow as well.

No where this or that just at the University Medical center, and when Las Vegas, I'm, reaching an agreement in Macau because you know the government is that are very good job. There. There are tests available for people that need them. My understanding is that that teachers are getting tested when they're going in and so.

I think it's a little bit of a different situation there well we noticed here in Las Vegas is there was testing capacity, but nobody prescribing tests because people were hitting their five or six symptoms. So we decided to cut through that.

And you know make a direct partnership with the research hospital, so that our employees would have the ability to get tested.

Thanks, everybody appreciated.

Mixer.

My next question is from Stephen Grambling with Goldman Sachs here, let us know open.

[noise]. Thanks, two questions first as a follow up to thomases question on consolidation what would make an asset more interesting or less interesting during these times or surface willing sellers and then second.

Wraps related in some ways. How is your thought process in the right capital structure specific to leverage levels and amount of liquidity evolved if we think longer term given this experience. Thanks.

So from my perspective on the consolidation <unk>.

Our expertise has been done I think always will be development and running the best assets. So we are not actively thinking about <unk> right. Now we're actively thinking about how do we have the industry leading assets in the markets, where we operate and take market shares reopen and then how do we developed the land that we have around.

Over the longer period of time.

So that that's really our our strategic goal right now Craig do you want to take the follow up sure on the capital structure side I would just reiterate.

Liquidity liquidity liquidity as King you know, we have always maintained a pretty healthy amount of liquidity and I think that that has served as well in this process I think it's a little too early to start talking about target leverage levels, we need to actually get back to generating cash flow first but certainly <unk> maintenance of liquidity is was any is.

A a really important part of of capital structure management.

In times like this.

Right. Thanks, so much.

I guess, we'll take our last question.

<unk>.

Hurt the final question is from David Cats Jeffries, you, let us know open.

Hi, everyone. Thank you for taking my question you know.

I think you're given an awful lot of detail and Matt you've obviously, you know put the company's resources behind doing a lot of research you know what thoughts or you know concerns or or views to have about the prospect of you know opening up and kind of a choppy fashion or any.

Kind of you know resurgence.

You know could delay the you know ramp up hmm not that you would predicted one way or the other but.

You know, perhaps provide contingent changed beyond just the financial one sport.

That's something that I think about and we think about every day, which is why we've continued to encourage phased openings and watch the data. So I think from my.

Health and safety perspective, we've done <unk> I believe just about everything that we could possibly think of it. If there are other good ideas. We will we will liberal that them, but well we're going to do is think about incrementally watch it and then we have to watch the data from all the communities around us and what's going on so you know.

Do I think that there'll be moments when we all will need to pull back a little bit or when we can push for it a little faster of course.

We need to make sure that our teams are prepared for that.

And that you know in that we can learn as we go.

Okay. Thank you very much appreciate all the detail.

Thanks, David So thank you everybody for joining US today, we hope everybody is stay safe and healthy.

And we'll talk to your next quarter.

<unk>.

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