Q2 2022 Full House Resorts Inc Earnings Call
Okay.
[music].
Good day and welcome to the full house resorts second quarter earnings call. Today's conference is being recorded at this time I would like to turn the conference over to Lewis Fanger, Chief Financial Officer of full House resorts you may begin.
Thank you and good afternoon, everyone welcome to our second quarter earnings call as always before we begin we remind you that todays conference call may contain forward looking statements that we're making under the safe Harbor provision of federal Securities laws.
I'd also like to remind you that the company's actual results could differ materially from the anticipated results. In these forward looking statements. Please see today's press release under the caption forward looking statements for the discussion of risks that may affect our results.
Also we may make reference to non-GAAP measures such as adjusted EBITDA for a reconciliation of those measures. Please see our website as well as the various press releases that we issue.
We're broadcasting this conference call. It full house resorts Dot Com, where you can find today's earnings release as well as all of our SEC filings and then lastly, we did include a small handful of pictures as well.
Our projects with some update photos so.
You should be able to see that directly through the press release.
You certainly can see them through our website via the press release or the SEC filings with that said, where we're ready to go down.
Okay, well I guess the.
The main things that address everybody's attention to us really the headlines so that's that.
There's two big projects, they're both coming along or taken.
<unk> taken a lot of our attention and time.
By the time, we talk at the end of the next quarter, we should be in.
In the process of opening in Waukegan.
And it'll be right about the time, we report third quarter earnings I think so in the fourth quarter and then a year from now we will be opening germinate so they're very important.
Each of them is probably going to contribute more in earnings in all of our existing five casinos combined so that's the important part of the company.
Second.
We're sitting on about 300 million of cash.
When our cash on hand, and our credit facilities and what we earn.
We're very confident that we have more than enough money to finish construction of these two projects, but I keep hearing these rumors that we're somehow going to raise money and we have no need to raise money and we certainly don't want to issue stock at these prices and we don't want to go to the debt market in these conditions, we have no need for it.
Yeah.
We can complete all of these we will need to raise money eventually to build the permanent one in waukegan, but that's two years away and we have a standby.
The credit facility with a major.
And that's one company but.
But I think we can do it on better terms than that but the bond market was bad we could always turn to that so.
So we don't need money our debt is essentially all fixed rate at this point not just essentially I don't think we have any floating rate debt in the company I'm not $100. So so the what interest rates are doing what the bond market is doing is pretty irrelevant to us These days.
Obviously, we'd like the bonds to trade better be better for the bond investors.
But it doesn't really have any impact on the company.
We did reach a nice agreement with the circa sports, where they paid us $5 million market access fee and we will get a percentage of their revenues.
Revenues from operating in Illinois, with a floor of $5 million a year once they can be up and operating which will be.
Once we get the temporary casino opening in Illinois.
And so that was a nice plus that come up in the quarter.
And then the quarter itself fell behind last year's results, but that's largely because they were the big stimulus checks last year.
That augmented resorts at all of our casinos and I think just about every casino in the country and Ah Ah results, where we're actually decent.
But just not compared to last year.
In Colorado were pretty rip ripped up with construction at the moment that also didn't help.
But the main thing in the year to year comparisons was just a difficult comparison in the second quarter of last year. So at the back of the financials.
We added some pictures.
The first one is.
Is off the roof of the Springhill suites, that's next door to US. This is the sprung structure in waukegan.
You can see the end of it is starting to be enclosed as is the other and so it's just about done I think this is literally from yesterday.
Inside that sprung structure is one and a half football fields.
And when it opens in the fourth quarter. It will have 1000 slot machines 50 table games and two significant restaurants that seat about 500 people and we've also ordered a diner that will be attached to that you'll see another 150 people or so.
We may not be able to get enough dealers have all 50 table games open and it's also possible the slot companies don't give us all 1000 slot machines that we've heard from other people both new casinos to anticipate that if you order 1000 machines you might only ended up with 800, and that's probably just fine because when we first opened.
We can use the space to have places for people to sign up for players club. So forget all of that was the slot machines that'd be great.
We'll open with what we get and that's not the slot machines at Campbell's to people that gamble and so.
In a few months, we think we'll be quite busy at this place and it would be very.
I wanted to include a map.
But we couldn't put that in the press release without getting the rights from a Google for Google maps or whatever the map sources and that was a little complicated, but I'd encourage anybody to pull it up yourself.
We are at the site is at a place called fountain place its an old shopping mall town square Fountain square, it's an old shopping mall and its 30 acres plus 10 that we acquired so there's 30 that we leased in the city and 10, we acquired.
If you look at that sprung structure to the left Youll see kind of a grassy area, that's where the permanent casino goes and the dirt area and throughout the world.
B parking lots for the temporary and eventually parking lots for the permanent.
There is some stuff we're doing now it's not that major stuff, but there's some stuff. We're doing now that is benefiting the permanent for example, Oh as we pave all this area we have to.
Put in some infrastructure to deal with the storm water when it rains and so on and that's really for the permanent but but it has to go in now.
And.
You can see in the distance a hotel.
I forget, which one that is but right now ballpark theres a springhill suites.
One center suites, a courtyard hotel, a sonesta hotel Sonesta, Es suites hotel and the Hampton Inn. So we're kind of surrounded by hotels, which is why in our first phase we don't actually have a hotel other than 20 high roller suites with little boutique hotel for high rollers.
And the temporary we will not have any hotel rooms of course.
About getting slot machines open.
And running here as quickly as possible.
But if you look at a map you will see that.
We are in the center of Lake County, and that's called Waukegan, but well Keegan was the is the county seat for Lake County, which has about 700000 people. That's one of the wealthiest counties in the whole country.
I believe it's the second wealthiest county in the state of Illinois.
And we will be the only casino there.
There are some towns in Lake County, including Waukegan that have.
Slot machines in bars, you can have up to six per bar and the ones and what he can do actually quite well, which I think bodes well for us because if we go and look at what they are.
It's usually just a dingy little borrowers took slot machines in the back and yet they're doing pretty well.
And I think that bodes well for us.
And then.
We will be you know even.
Even the temporary casino, which on the outside it's pretty unimpressive on the inside we do have quite a bit of the court going in so that we intend to be a positive surprise people when they go in.
And.
Our competition.
Is.
The rivers casino, which does huge numbers like five or $600 billion, a year $500 million and its pretty nice, but they're they run two levels multiple grams of their kind of squeezed on pretty small footprint.
And yet they do extremely well.
And one big flat floor.
Which is usually what the customers prefer.
If you go up to.
Milwaukee to our north.
Potawatomi pretty decent travel casino, it's also a different rooms multiple levels.
If you go beyond those two are pretty much all the other competition in anywhere near US our old River boats that are 25 years old with low ceilings of multiple decks and so even our temporary casino compares pretty well.
With the competition and our permanent casino would be head and shoulders above the competition. So that's that.
Sport before you move on down I, just want to make two quick points. One is is that Gan is right about our location and not being repaired, but what is quite nice is we're one of the few casinos that are located right off a major freeway you can see our site right from the freeway.
And if you compare that to the two big ones that I know of one would be rivers that makes $500 million a year in gaming revenue as Dan mentioned the other is a relatively new one its the hard rock casino in Gary Indiana that opened in May of 2021.
That's doing almost $400 million a year in gaming revenue and.
It's a big flat floor right off the freeway, that's exactly right and Thats that freeway location is quite quick go ahead, yeah, yeah. So.
The other thing is if you if you pull up a population density map, you'll see you know obviously the suburbs of Chicago were very densely populated.
Two our north it gets less densely populated into our west it gets less densely populated so we're kind of at the north end of the most densely populated suburbs and so we think more of our customers come from the south and from the north.
And it's a long gap between us and Rockford with a temporary hard rock casinos operating and there's talk about travel casino out that way it doesn't have much impact on us.
And we are between the two main freeways that north south.
In this area.
And in fact, the commuting train lines come out of Chicago and go North.
They work about 10 miles south of us and the one pork goes up along the coast through our Lake Forest Lake Bluff in Waukegan.
Waukegan and on up to Milwaukee, the left for it goes out through Liberty, Bill and kind of angles northwest and we're in the middle of the Fork and not surprisingly the population tends to live along those train lengths, even though I think most people today don't commute into Chicago, but historically they did.
And so the population centers tended to follow those trend lines and this is a great location relative to where everybody lives.
The next pictures are of Chamonix.
And this is a complex building.
Complex site and I can tell.
And we are between Bennett Avenue and.
So on behalf of its car park.
Sure.
And the car is quite a bit higher than Bennett. So on the one picture you'll see our parking garage.
With a crane in front of it and the hotel rooms are just starting to go up above that.
That's on car and this picture is taken from 60 feet above the lowest part of our site and yet it's all laid out in such with the customers will not perceived all of this should go to the parking garage you can take an elevator down you walk out like casino.
And the second picture shows the front of it.
Because it's tal around the fresh and it isn't a bath because then it is lower than <unk>.
<unk>.
And you can see is coming together to the right of the crane.
On the picture that shows the fraud that debt.
All are building with the big Windows in it that's the casino.
It ends up with big arched windows with the sheer curtains, where those openings are.
And to the left is the specialty restaurants spa and swimming pool on that structure, and obviously hotel rooms in the hotel lobby.
The center.
And that building is now topped out.
You can see in that picture to the right the parking garage. The other picture shows the back of that perfect Raj and there's three levels of rooms that go on top of the parking garage. The first level is just about done and then they will start doing the second level and then if.
If you go to the rendering of what it looks like when it's done.
You can see how there is essentially three buildings.
Main one is the one in the middle.
And that anchors the casino and has the spa in the restaurant and behind it is meeting room space, which has been frame now and so on to the right is the parking garage and three levels of rooms on top of that so that's really a second tower. If you will and then in the back there's a third tower and that's just starting to come up now.
<unk>.
So it's quite quite impressive when you there in person and it's actually it's hard to get a good picture of it because it kind of sprawls.
It's a historic district, so we Couldnt do a 30 storey high rise like has been done in Blackhawk.
But we get to a significant size by sprawling out.
And so in Waukegan.
Waukegan, we're pretty excited by the.
The results of what we see around whether its the vlt's that operated in Lake County.
In a fire.
If your experience and what we're going to provide or the competition or even.
The hard rock.
Gary as Louis mentioned.
Chicago is still an underserved market in Lake County is a very underserved market because it has no casino and so we think we'll do very well there.
<unk>.
Colorado and again I wanted to include in that footprint and have the rights to put a map up on our press release, but if you pull up a math and look at it you'll see we are one hour a little less about an hour from Colorado Springs, and about two hours from Denver, Colorado Springs, including Pueblo and Canyon City, which is in the MSA.
That's about 1 million people today and growing rapidly Denver is about 4 million people and also growing rapidly. So our most important market will be Colorado Springs, but Denver will also be an important secondary market now Blackhawk is about an hour west of Denver and two hours.
Colorado Springs, that's why.
I think Denver will not be our most important market despite being a bigger population because people there will tend to go to black Hawk, but we might get 5% of the gaming trips from Denver might make a longer trip to see us.
5% of the gaming trips from Colorado Springs might take the longer trip to go to Blackhawk.
Obviously, because Denver is bigger than Colorado Springs would be the beneficiary of that.
But we will rival.
And quality any casino in the state I actually think will be the nicest casino in the state.
We're not on a narrow footprint like monarch monarch did a pretty good job with what's a very narrow footprint and so they have a very long narrow casino.
<unk> is also squeezed out a pretty small footprint and their casinos on multiple levels and yet both of those places do extremely well. They both have about 500 drums and they're both doing we think over $100 million a year of <unk>. We will have 300 Guestrooms. We don't think we'll do $100 million of <unk>, but.
We think we'll make more here than whole company does today and.
And we will get a very good investment.
Good return on investment of $250 million.
And I was kind of playing with some math if you look at our existing operations, we've done about $20 million of EBIT in the first half of the year.
Couple of things benefitted us there the sale of free play and.
Churchill Downs exiting.
Sports business sale of free play ended up in the second quarter this year rather than in the third quarter, that's something we do in.
Indiana, we've done it every year for several years, where we're basically arbitrage in the tax rate that favors small companies.
Pretty small casinos I should say.
And those.
Those are a little bit of unusual things that happened in the first half.
On the other hand, we have the circuit deal, which was not in the current results and will be going forward.
And so our run rate is about $20 million for the first half if you make all those adjustments and so call it $40 million a year, which is below last year, but but it gives you a ballpark of where existing apps or going in and.
I said, thats, probably less than either company or the temporary should earn going forward.
If you look at our stock price, we have 37 million shares outstanding and I was pondering gosh, what <unk> do we need to have to to equal that share price to equate to that share price.
And if you if you assume the company should be worth eight to 10 times cash flow, which is pretty typical for casino companies. These days.
It works out we have $400 million of debt. When we're done building. All this stuff we will have some surplus cash, but let's just ignore that for the moment.
And so.
If you kind of say well.
What is the work out to if you run that math, it's like $60 million to $80 million <unk>, if it's a.
A 10 multiple if we traded at a 10 multiple and this stuff is all done you'd have to have about $60 million <unk> or $20 million more than we're doing now in our existing operations, which would be like.
We could do that and half of that sprung structure in waukegan.
And if it's trading at a multiple we need 80, which is also not a big hurdle.
And that's why you can see we focused on what we're building and the resources, we have to complete it and.
And our existing operations had a tough comparison, but but were otherwise.
Otherwise about as we expected so.
On that day.
Okay.
Okay.
So we're trying to do this little quickly because we know caesars as their earnings call coming up so we're happy to take any questions.
And if you would like to ask a question. Please signal by pressing star one on your telephone keypad.
Using a speaker phone. Please make sure your mute function is turned off to allow your signal.
Again press Star one to ask a question.
Well go to our first question from Ryan signal with Craig Hallum Capital Group.
Good afternoon guys.
Yeah.
Curious.
I appreciate the color on the projects agree that's the focus.
Mentioned in the press release that the launch dates that slipped a few weeks can.
Can you talk to that I guess, the temporary I think previously it was expected late October you're saying Q4 now. So can you just put a finer point on that launch timing.
That's right.
We don't control everything and we're going as quickly as we can but.
Construction problems have there or is it things arise. So the main thing thats been an issue for US there was there was a.
Our union.
Forget the full name of the unions local $1 50, or something there the union that represents guys who crush rock.
And you need crushed rock for both asphalt and concrete and we need to asphalt and concrete.
And they were on strike for about six weeks and as a result, the asphalt plants in the concrete plants were closed and.
We need concrete and asphalt we have some we bought some kind of.
Anticipating it which is how we were able to get a ring structure.
Around in the rest of the.
Strong shifts that we have.
They settled that strike about a week ago.
And now the plants are ramping back up and of course, they have a big backlog of stuff.
We're trying to get it as quickly as possible.
That's just one example, it seems like every day there is some phone call about something else right.
And you deal with it and that's just a normal part of construction to be honest.
You think you've.
Turning to build anything these days with all the supply chain issues as a as a challenge and we're fighting through it.
And I think we had properly anticipated when we did the budgets.
We had to increase the budget quite a bit in chamonix, when we realized how hard it would be to build.
And based on that we used to.
Big contingency in Waukegan, So I think we had that.
But yes.
There's stuff like Con Edison told us they could not provide transformers con Edison could not buy transformers and they weren't.
For a while there I thought well, we're going to have to open with generators months about an 18 Wheeler trucks or something and then our contractor was able to find some transformers that we bought and told Con Edison that we have transformers and that was a few hundred thousand dollars.
And that we are offering to transfer to con Edison.
So that we could have normal power so.
There's stuff like that we had troubles finding pumps for the sprinkler systems and we finally found them.
And.
Yeah. So we've had our challenges, but yes at the end of the day.
It almost feels like Oh.
I think I hate to use the comparison, a little bit of whack a mole, but it also provides me of these guys in the Ukraine are sending artillery shots at each other we have shot our missile and we think we know where it's going to land and we think it's going to be in the fourth quarter and at this point you kind of monitor it there's not a lot you can do about it.
Unless you want to spend over time, but we don't want to spend over so youre encouraging everybody to go as quickly as possible.
And it'll open once open there's no we're not going to open until it's ready and you can't open until they give you approval both the building department and the gaming Commission so on and so forth. So so we think it will be fourth quarter.
We have started to hire employees, we've hired a lot of the management team and we have a number of job offers out to people with them starting work at the end of October which gives you some idea of when we.
To open we will open a dealer school pretty soon we will be paying people to go to a dealer school to become dealers because the dealers I think that's one of our big challenges is getting enough dealers to open all these table games and.
And getting them all licensed which is a challenge and I.
I mean recognize.
Uh huh.
This placement will kick it's gonna have like agent employees.
That's not a whole lot fewer than our whole company has today.
And then that's also going to have several hundred employees. So.
We got a lot of work ahead of us this year.
And our best guess is what we said in terms of the timing and or.
Put it another way we were.
I think we're okay on budget and it's going to be a little later than we really wanted to on timing and I don't want to spend over time to try to change that so yes, but we're not that far off from where we were last quarter for what it's worth Ryan I think last quarter. We said late October early November and <unk>.
Fight those challenges that Dan mentioned, we're still we've come to satisfactory resolution on all those items and continue to target that same ballpark. So.
In Germany to give you. Another example.
Get up there I get to each of these places once or twice a month now because things are happening.
And maybe a month ago, you can see from the pictures, we're using what's called the light gauge steel you erectus kind of steel structure, and then of course lab above it and the steel structure supports it.
And so there's gangs of people and subcontractors, who specialize in that direction of light gauge steel.
Up there in the young.
Young man, who is in charge of this for Huntsville, Phelps's very smart very hard working.
I was frustrated because he was having turned some of those teams away because the light gauge steel had not arrived on time and when we went back into it because this stuff is kind of manufactured offsite and brought in on trucks and they didn't arrive on time. So we had workers ready to direct it and we didn't have the material for them direct and when we went back to <unk>.
Further the guy doing the fabrication of that steel civil he didn't get his plans from our architect sometimes when you finally traced it down it was basically our architecture firm I don't know what they were working on but there were like five guys, who didn't get the plans out on time to the other people and after I blew a fuse or two on that we were able to.
That get caught up but you find stuff like that that is that just.
Just slows you down something in that and that's by the way. That's every project every trial. This is I think my 13th and 14th major casino projects. In every one of them has kind of standard little things like that.
Deal with them.
I mean, we had a we had a fun one here I was walking around Germany, and I walked into the loading.
Loading dock area that is designed for stuff to arrive.
And I am standing there and it's just in the early stages, it's just and I standing there looking at Where's the Doc.
And the construction because what do you mean as to both the truck backs in here and you need something that's four feet tall to take the pallets of stuff off the truck.
And he's looking at it says Oh My God, Let's go look at the drawings, we went and looked at the drawings and there was a space labeled loading dock.
But there was no duck right and it was like just a mistake somebody made and where like you need a thing four feet tough for them to pull the power itself and.
So we have now made that adjustment in the trucks come in and it's not a flat, Florida, a little bit of a ramp Florida to get the truck down so that the yeah.
That's just the normal that doesn't really cost anything, but if you don't walk it while it's under construction.
And you'd say like.
Why does it take the CEO to discover that well I I Scream that a few times like what idiot architect did not put a doc and the loading dock and then how many people looked at this and Didnt realize it and then I finally had to discover walking it well that's why you walk it and God knows how many things are construction people discovered and fixed before I got there.
And that's part of construction.
That's why we've done a lot of these well I'll give you something else to ponder as we wrap up this question for Ryan.
The next time that we talk to you and others on these earnings calls will be late October early November so we'll be on the verge of either just about to open waukegan or will have a much more definitive date for you so and I think unlike a.
Some other casinos, we've built in our past and most casinos I do think that the ramp up period for this casino will be on the very short sighted sometimes you might take 12 months or so before you fully ramp up a property.
I think this will be a swift ramp and in part because of the competitors that Dan mentioned and in part because we're just so darn close to so many people, yes, its pent up demand and they have no existing casino.
And I think we'll wrap up pretty fast in Germany, as well, but we're going to ramp up very fast in Waukegan and Germany. There are existing casinos were just a lot nicer than any of the others. So.
Got something else Ryan are good yeah.
Maybe my second question.
Just curious what you're seeing on the demand side, if you've seen any deterioration in consumer be sure.
The July <unk>.
Dan you mentioned kind of $20 million EBITDA in the first half youre going to lose the $2 million of free play, but is that kind of a realistic because if you look at the back half what you see in current demand and everything going on with construction at your existing facilities.
Well the stimulus checks benefited mostly the second quarter.
They came out very late in the end of the first quarter and.
And so like in July .
We were still off a little in July at the <unk>.
Slipper in particular that I recall, it versus prior year versus prior year, but much but the decline was much less than it was in the second quarter now is that recession.
Generally the regional casinos hold up much better in recessions, because we're cheap trick it's easy for somebody to drive to us there's usually a three people per car.
And whereas and we don't do a large convention business like Las Vegas, The convention business. The first thing that could fit in a recession and.
And so it's hard for us to tell but I think our business is not really feeling much of an impact.
Year over year comparisons are getting easier because we're lapping the stimulus checks of last year.
And.
And just from last recessions.
Our business is pretty reassessed it recession resistant because we're an inexpensive way to Campbell, yes.
I'll add Ryan sequentially, so not looking versus last year, but at the last couple of months.
Things continue to be on a relatively similar trend pretty pretty pleased with where it looks like July will have shaken out for us.
The exception to that would be in Colorado, where as you know the construction.
Disruption continues and we had a little bit of a separate problem, where our construction created this weird river.
Floodwater pattern that.
That created some flooding issues in our casino over that fourth of July weekend that wasn't helpful. But.
Yeah.
That that set aside things continue as we would've expected sequentially.
We also have.
A lot at least probably half of what was historically Bronco Billy's is closed.
And part of that is closed because it becomes part of Chamonix. So it's under construction, but we also closed.
The center prior to Bronco Billy's.
Do a light refresh of it and still close.
We're putting it back together now and so Bronco Billy's is operating at much smaller capacity than it had in the past.
So.
Great. Thanks, Dan Lewis Good luck, guys look forward to catching up.
The temporary is about to open.
Yeah.
Well, you're not too far away.
Yeah, well you.
Are there.
Yeah.
Any other questions.
We will take our next question from Chad Beynon with Macquarie.
Hi, Jeff Hi. This is hey, this is actually Eric on for Chad. Thanks for taking my question.
With respect we would have we would've taken after your name anyway.
I appreciate that.
With respect to the competition to be temporary or to American place can you help us understand the situation in Kenosha, where you've heard about potential development.
But I think this would still need some major approvals correct.
That's correct.
I don't know, how they say it but the mini me tribe economic Menominee Menominee like mini me better which is a they have a.
Bingo oriented bingo palace type of casino nor.
North of Milwaukee quite a ways up that's a relatively small casino and they have tried to get in the Kenosha before.
The Potawatomi, who would be impacted by at the most because they are just north of that in Milwaukee.
Killed it.
10 years ago.
So this time there are many me is backed by the Seminoles who get involved in these things sometimes.
And they said, they're going to try to put a casino in Kenosha.
And we think most of our customers come from the South and Theres a pretty good gap.
Between us in Kenosha, and so I don't think it has that big an impact on us, but I also think they are a long ways from <unk>.
Having the governor's approval on putting land in trust and then actually building. It. So I think it's a long ways from done and.
And I think a lot of uncertainty whether it ever happens, but even if it does happen it doesn't really change our numbers very much.
Yes.
I'll add a couple of other thoughts in there I mean traditionally well two things one pull up that that Google a satellite photo and what Youll see is what Dan mentioned earlier.
A lot of population density right, where we are going to the south going to the west, but actually start to go north up by.
Up towards Kenosha, what you see is a lot of more formal farmland and so from a density population density point of view.
The density is where we are.
Historically.
What youll see as casinos will do well, if you have quality or distance closeness on your side and in this case will have both and so we feel pretty good.
Both of those reasons the other thing I would maybe point out as well if you're on a cusp city.
Where's Alex again he lives in.
Well Matt.
Our our head of development lives over in the Chicago land area, but it but a lot of those cities that are are there around Evanston and whatnot you are from a mileage point of view, probably a little bit closer to the rivers casino.
But if you pull up a Google map, what you'll see is a lot of yellow and red on that on the pads going towards downtown in a lot of people in that area. I think are going to be predisposed to not want to travel towards downtown.
And we will end up spending a minute maybe five minutes more perhaps even less actually with traffic going our way instead and so if you were to include some of those people that are on the cusp.
I think that that additional population will largely offset any impact that youll get from that Kenosha trial, we still feel very very good.
Sure thing.
Yes.
I guess the seminal has funded the purchase of a piece of land, but it's pretty insignificant to the Seminoles.
And but that's what's caused the publicity the potawatomi.
And go look at their website, they have a pretty serious casino.
Only once in Milwaukee, Milwaukee's, a city of 2 million people.
I'm guessing they make.
Well north of $100 million, a year of EBITDA at that place, it's a guess, but just from looking at it.
So there's a pretty wealthy tribe.
This would cut into them. So I think we're going to have a little tribal warfare here.
And there are.
Both in the state of Wisconsin, and you need the governors sign off on it.
And so and the Governor has said he is not studied the issue yet so.
But it is a much more serious competitor for the Potawatomi, because they have kind of a monopoly in Milwaukee at the moment.
And Kenosha is kind of a distant suburb of Milwaukee and.
So.
I think it's.
A long ways from done very yes, yes that process is going to take a very very long time.
Got you perfect. Thank you.
And then as my follow up how are you thinking about the size of the full house portfolio would there be benefits to potentially selling one of your smaller assets to help improve the balance sheet and allow you to.
Spend more time on development.
Yeah.
Well, yes, and no I mean, frankly, the small assets, we have would be principally the ones in northern Nevada in there kind of a nice cash cow and it doesn't take a lot of our time.
<unk>.
And we don't need to sell them.
We don't need the money to be honest and so that's kind of like well if we did have.
Money from selling an asset I'm not sure what we do with it.
And.
So we don't really need it and frankly, they're nice businesses.
As they are so.
I will say that the it always I always scratching my head a little bit because we get a lot of interest from people looking at those northern Nevada asset specifically over in Fallon.
A lot more than you would expect.
So.
But Dan is right.
From a time point of view and from a cash flow point of view there.
Consistent for us and don't require too much of us and we have a good management team up there that are.
They're kind of room jointly tahoe, but.
With the separate GM and pelon and.
We fixed up both of them in the last five years. So they are both in pretty good shape.
We have a conference call.
For about an hour once a month with those properties and they do fine.
I get up there and visit maybe once or twice a year.
So it's not it's not like.
But when I was CEO of Pinnacle, we had like 15 properties, including four in Argentina and boy, sometimes you couldn't even remember which property you were talking about we have five properties and we're building to it's really not.
Yeah.
And so it's not like we need to sell one for.
Financing and it's not a it's not a.
The thing we have to do to have more focus.
And what we're doing.
Okay perfect. Thanks, so much.
Thank you.
Again, if you would like to ask questions.
Go ahead.
Okay.
And if you would like to ask a question. Please press star one at this time again that is star one for questions.
And it appears there are no further questions at this time.
Okay, well. Thank you everybody I think our I think our stock is pretty cheap that's kind of implied by my little analysis of how little we have to earn in the new places in order to justify the current stock price.
And hopefully we will learn much more than that and the stock will rebound.
In the near future.
In the meantime, we're going to get ready to open will kick in so that the.
Next time, we talk that's either opened or about to open in <unk> and then as I mentioned at the opening of Germany. So.
Very much everybody.
This concludes today's call. Thank you for your participation you may now disconnect.
[music].
Yeah.