Q2 2023 Red Rock Resorts Inc Earnings Call
[music].
Good afternoon, and welcome to Red Rock Resorts' second quarter 2023 conference call all participants will be in listen only mode. Please note. This conference is being recorded.
I'd now like to turn the conference over to Steven QD Executive Vice President Chief Financial Officer, and Treasurer of Red Rock Resorts. Please go ahead.
Thank you operator, and good afternoon, everyone.
Thank you for joining us today for Red Rock Resorts second quarter 2023 earnings Conference call. Joining me on the call today are Frank and Lorenzo Fertitta, Scott Kreger, and our executive management team.
I would like to remind everyone that our call. Today will include forward looking statements under the safe Harbor provisions of the United States Federal Securities laws.
<unk> results may differ from those projected.
During this call. We will also discuss non-GAAP financial measures for definitions and complete reconciliation of these figures to GAAP. Please refer to our financial tables in our earnings press release form 8-K, and Investor deck, which were filed this afternoon. Prior to the call also please note that this call is being recorded.
Before we get into any of the details the second quarter represented yet another strong quarter for the company.
<unk> represented our third best second quarter in the history of our company in terms of same store net revenue adjusted EBITDA adjusted EBITDA margin only surpassed by the extremely strong second quarter of 2021 and 2022.
Within the quarter the month of April provided a particularly tough year over year comparison and accounted for the majority of the year over year decline in our results within the quarter with May and June performing more in line with last year's stellar results. Despite a tough April the management team execute on our core strategy of keeping the property is fresh and relevant for our guests and delivering another extreme.
Strong quarter with the quarter, marking the 12th consecutive quarter. The company delivered adjusted EBITDA margins in excess of 45%.
Now, let's take a look at our second quarter results on a consolidated basis.
Second quarter net revenue was $416 million down $6 1 million from the prior year second quarter.
Adjusted EBITDA was $175 3 million down $13 $6 million year over year.
Our adjusted EBITDA margin was 42, 1% for the quarter, a decrease of 260 basis points year over year.
With respect to our Las Vegas operations second quarter net revenue was $412 6 million down $7 5 million from the prior year second quarter.
Adjusted EBITDA was $193 1 million down $14 $8 million year over year, our adjusted EBITDA margin was 46, 8% a decrease of 268 basis points year over year.
In the quarter, we converted 29% of our adjusted EBITDA to operating free cash flow generating $51 million or <unk> 49 per share or.
Our free cash flow conversion was lower in the quarter due to the timing of our estimated tax payments when combining the first and second quarters. It shows that we continue to generate strong cash flow converting 54% of our adjusted EBITDA to operating cash flow generating $198 6 million or.
<unk> 90 per share.
This significant level of free cash flow was reinvested in our long term growth strategy, including our Durango project, where was returned to our stakeholders via debt paydown or dividends.
Throughout the quarter, we remain operationally disciplined and focused on our core local gas as well as well as continue to grow our regional and national segments.
When comparing our results to last year's second quarter, we continue to see upside from strong visitation in our regional and national segments. This strength, coupled with strong pet spend per visit across our entire portfolio allowed us to enjoy near record second quarter revenue and adjusted EBITDA results across our gaming segments.
Turning to our non gaming segments, both hotel and food and beverage continued to grow year over year and deliver record profitability in the second quarter, Our hotel division experienced its highest quarterly revenue and profit in our company's history, driven by higher occupancy and ADR across our hotel portfolio food.
Food and beverage experienced near record second quarter revenue and record second quarter profitability, driven by higher check average across our food and beverage outlets and continued strength of our catering business.
Our catering revenue continues to surpass 2019 levels as this quarter represented the eighth consecutive quarter of double digit year over year growth in the business segment.
<unk> our group sales business, we continue to see positive momentum driven by growth in both room nights and ADR.
Pipeline continues to grow to the back half of 2023.
As we begin the third quarter, our business across our gaming and non gaming segments remained stable, but we will continue to face challenging year over year comparisons for the remainder of the year.
On the expense side, we remain operationally disciplined and continue to look for ways to become more efficient while providing best in class customer service to our guests and continue to be the top employer of choice in the Las Vegas Valley.
Despite a tougher year over year comparable the company was able to generate near record financial performance and continue to return capital to our shareholders.
These results demonstrate the resilience of our business model the sustainability of our operating margin and the ability of our management team to execute on our long term growth strategy and take a balanced approach in returning capital to our shareholders.
While we remain vigilant to the macroeconomic picture, we are committed to disciplined investing in our core strategy, which includes expanding our footprint in Las Vegas, and investing in new amenities to our guests bring new amenities to our guests at our existing locations built.
Building upon the successful openings of our high limit table and slot rooms, as well as new casino BARDA Red Rock Casino resort. This quarter, we opened up Polaris High end Casino bar located at our Green Valley Ranch resort.
The early results from this new amenity and have been very promising and we look forward to bringing additional complementary amenities to our Green Valley property later this year.
Now, let's cover a few balance sheet and capital items, the company's cash and cash equivalents at the end of the second quarter were $100 9 million and the total principal amount of debt outstanding was $3 2 billion, resulting in net debt of $3 1 billion.
As of the end of the second quarter, the company's net debt to EBITDA and interest coverage ratios were four to five times and four four times respectively.
As we stated on our previous earnings calls our leverage will continue to tick upwards as we complete the construction of our Durango project.
On the completion of Durango, we expect to Delever towards our long term net leverage target of three times net leverage.
Capital spend in the second quarter was $201 6 million, which includes approximately $172 $7 million in investment capital inclusive of Durango, as well as $28 9 million in maintenance capital.
The full year 2023, we expect to spend between 70% and $90 million in maintenance capital and a total of $600 million to $650 million of growth capital inclusive of Durango.
Now let's provide.
An update on our development pipeline.
Starting with our Durango development, we're excited to announce that we are targeting Monday November 20th as the opening date for the Durango resort as we've mentioned before we are extremely excited about this project, which is situated on a 50 acre site ideally located off the $2 15 Expressway in Durango drives and the southwest Las Vegas Valley.
Project is located in the fastest growing area in the Las Vegas Valley with a very favorable demographic profile no unrestricted gaming competitors within a five mile radius.
This quarter, we completed the closure of the resort as well as power up the central plant as we move to commence a fit out of the resort.
As we progress through the current quarter, we are beginning to handover key areas of the resort to our operational staff in order to start preparing for our resort opening.
The current budget remains unchanged at approximately $780 million, which includes all design cost construction hard and soft costs preopening expenses and a financing costs associated with the project the.
The company still anticipates the return profile for Durango to be consistent with our prior greenfield developments.
Turning now to North Fork as we noted last quarter after a favorable resolving all of its other litigation that drive as a single remaining case in the California courts. We do not believe this case will interfere with the right or the ability of North Fork to conduct gaming on its federal Trust land and we continue to work with the tribe to them.
Our efforts with respect to this project, including working toward approval.
The management agreement continue continuing our work on the development and design and having preliminary talks with respective lending partners. We will continue to provide updates on our quarterly earnings calls.
On the real estate front, you may have read in the press that we have made significant progress with respect to the sale of our former Texas station and Fiesta Rancho properties.
Cannot disclose the terms we believe we may be in a position report on the closing of these two real estate parcels in the coming months.
These potential transactions represent the continued execution of our long term real estate development strategy as we look to reposition and upgrade our real estate portfolio for the next chapter of growth at station casinos.
Lastly on August 2nd the Companys Board of directors declared a cash dividend of <unk> 25 per class a common share payable on September 29, two class a shareholders of record on September 15.
With our current best in class assets and locations coupled with our development pipeline of seven owned development site located in the most desirable locations in the Las Vegas Valley.
We have an unparalleled growth story will allow us to double the size of our portfolio and capitalize on a very favorable long term demographic trends and high barriers to entry the characterized Las Vegas locals market.
We would like to recognize and extend our thanks to all of our team members for their hard work.
Excess starts with them and they continue to be the primary reason why our guests return time after time.
Like again to thank them for boating as top casino employer in the Las Vegas Valley for the third consecutive year.
We're also very proud to share the Forbes selected us selected Red Rock Casino resort and Spa at the top overall casino resort hotel in Las Vegas in Las Vegas, which we consider a tremendous recognition of our efforts and those of our team members.
And finally, we'd like to thank our guests for their loyal support each of the last six decades.
Operator. This concludes our prepared remarks for today and we'd like to turn the call over to take questions.
Thank you.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
Youre using a speakerphone, please pick up your handset or Christine Magee.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Joe Greff with Jpmorgan. Please go ahead.
Good afternoon, everybody as Steve your comments about.
The majority of the <unk> declines.
It took place in April .
Obviously, our friends at Boyd said the same thing.
When they reported.
What do you think happens in April I mean, I don't think either one of you really kind of called that out.
Go on prior earnings calls.
What do you think actually transpired.
With your consumer in April .
Why do you think thats changed in May and in June and July and then I have a follow up.
Sure I mean I'll start it off.
I'll hand, it over to Scott I mean, I think first and foremost we are dealing with incredibly tough comparables, particularly in March particularly in April if you look at back in April 'twenty, One and April 22 in the history of our 46 years on an EBITDA per day basis, because you've got a 30 day calendar April 22 represents the best month in the history of our company April 'twenty one.
Presents the second best history of the company. So I think it has less to do about the consumer and more to do with <unk>.
Huge uphill climb we're making.
Yes, I think I could add a bit to that just the quantum of that.
Represents about 85% of the decline for gaming in the quarter was in April .
And there is another piece of nuance in that we did.
<unk> unfavorable hold through the Golden Knights Road to the Stanley Cup. So we have a lot of local folks on the Golden Knights side.
Hold well as it relates to that and that attributed as well, but if you parse out April and.
Look at the May June and even into July .
See that gaming revenues are in line with what we've been experiencing for the rest of the year.
Great that's helpful and then.
How do you see the relationship between.
Year over year variance in revenues versus year over year variance in operating expenses obviously.
Yet revenues down in Opex up into Q2, how do you do you see that to be more in line is there is there a way that.
If we are see flattish or down a little bit in revenues can can opex sort of match that year over year revenue trend or is there something.
Just.
Whether it's labor, whether youre carrying more cost in front of Durango, which I guess would that those expenses will be capitalized, but can you help us understand that Steve going forward in terms of sort of margin trends if we're.
In a revenue environment, where things are down a little bit year over year.
Yes.
Sure I mean again I just want to reemphasize that this is the <unk> quarter in a row that we have.
Held margins over 45% and yes, while we did experience a slight decline in margin as Scott mentioned and as <unk> pointed out well April was the majority of that margin decline and youre dealing with really just in the majority of that decline was due to the.
Not only that the gaming issues, but also the hold issue that Scott mentioned and Additionally, we spent $2 $1 million in repairs and maintenance or year over year and that is a.
As long as it's not a quarter by quarter decision, we're making that is core to our operating strategy of keeping our properties fresh.
And inviting to our guests and our view on that is dealing with small problems now prevents larger problems down the road.
No we own our real estate. So that's why we take we take we take a good care of it.
It said R&M, we feel we have our properties are in fantastic shape. There are no deferred maintenance costs. So that is a lever that we can pull going forward. If if we needed to get going down the road. The other kind of material costs I would point out that integrated margins slightly was we experienced roughly a $700000 increase in utilities, and I think thats going to be.
<unk> across the entire loss of that Las Vegas Valley. So that's not a station a nuance of station.
Great and then my last question with respect to the November 20th Durango opening.
My my flight after I get off the call with you guys.
To that is that a is that a full fledge opening is that a soft opening is can you help us explain.
That versus.
Opening later in the year around new year's and that's all for me. Thanks.
Yes sure Joe This is Lorenzo.
Yes that will be a full fledge opening we opened properties every aspect of the property is open and ready to go we'll open the doors and let her rip for customers. So it'll be it'll be full on that day.
Great. Thanks, guys.
Okay.
Our next question comes from Carlo Santarelli with Deutsche Bank. Please go ahead.
Hey, guys good afternoon.
When you guys and I know look last year was somewhat unusual right everybody benefited from from.
But that really strong <unk> that followed a tougher <unk>.
But when you when you look at kind of last year in review.
Obviously, the second quarter I would imagine you would say was your most challenging comparison of the year.
I just want to verify that that's the way that youre looking at it and how you would categorize kind of the <unk> and the <unk> of <unk> 22 in terms of the current levels of demand that youre seeing in some of the cost headwinds that are currently involved.
Yes, I can take the carload Scott.
Yes look I think when we look at where we've been and where we're headed.
We have been mentioning that we're up against tough comps in April certainly.
Was one of the tough ones, if we look forward.
Forward projection is call it a 90 day look.
<unk> of July we like where we're headed we like where we are at the mid point of the year.
Hence what we'd expect to do for the full year.
But we all in consensus utilize the rest of the year has tough comps as well.
No.
We are encouraged with where we are.
Year to date.
Our operating teams are ready to face the challenge of any necessary.
Expense management, they are already doing a great job of that when youre talking about flavor cost of sales. All of these things are being managed very well all of these inflationary pressures, but we're very focused on what we think is going to be pretty competitive comps for the remainder of the year.
Great. Thank you for that Scott and then if I could just as you guys start to.
Kind of 90 day stretch maybe less.
Until <unk>.
<unk> opened could you talk a little bit about the hiring environment or the experienced thus far in terms of staffing up that property.
Yes. This is Scott again.
You're right we're down to the final stretch I think were inside of about 100 days. So we have done our internal recruitment campaign.
A lot of interested team members to come over to the new properties. So thats the base of our of our employee pool and that's an employee that understands our brand is loyal to the company and really kind of brings over the DNA of what we do.
We are off to kick off the external campaigned on the 14th.
And we're already getting unsolicited interest.
So we feel confident that we're going to be a order to fill our needed employment with high quality employers. If you go back and look at what we've said in previous calls a long time ago, we right sized our payroll changes or benefits. We are best in class employer in the market.
And we knew this was coming and we got ahead of this probably well over a year ago.
So that we have competitive wages competitive benefits.
They are not to be completely.
No.
Immune to the X.
The other factors, we do have Fontainebleau coming online we do have the sphere coming online. So there is a competitive market out there, but we think we're going to compete very well.
Yes.
Thanks again, thank you guys.
Our next question comes from Steve <unk>.
<unk> with Stifel. Please go ahead.
Hey, guys good afternoon.
So it's going to be another margin question, So bear with me.
So Steve you mentioned that the majority of the margin pressure occurred.
In April so.
Based on what you witnessed in May and June and now you have July under your belt as well.
Do you think it's possible to have margins.
For the back half of the year be in the range of last year or you called out things like how utilities are or are there other factors that might not allow you to.
To do that and this is assuming no.
What you saw in May June and I assume July is kind of status quo.
Yes, I mean, I think that the top line answer is yes, we can.
We've been very consistent with that message that we expect to be in that.
The new historical range right.
As Scott alluded to we have a lot of the inflationary pressures are already built in and the team. The team is doing a fantastic job managing through them labor for the most part.
We are now driven by a volume base labor. So payroll is going up as we bring on more people to two.
To fill demand, particularly in our non gaming segments cost of goods sold relatively flat and so we aren't managing through those so and then as I.
<unk> with R&M, and there's probably a variety of other levers that we can so theres a lot of controllable that we feel we could pull out of the cost structure if need be.
But right now we feel pretty good in the business.
Don't see any reason to change our current strategy, yes, Steve I mean, this is Lorenzo and I think as we've mentioned in prior calls as well.
Part of the margin question is going to be determined by gaming revenue as well right. So.
If we're able to and we believe that we will be able to maintain the trend of our own and we should we should.
Be able to maintain the margins.
As Steve said, we have a very laser focus on expenses throughout the company.
One last factor is acquisition cost.
Still.
Julien, we're very stable and rational promotional market and we don't expect that to change through the rest of the year.
Okay got you thanks for that color and then.
Question on the on the hotel side Im not sure Steve If you've mentioned where <unk> were in the quarter, but it seems like they were probably up slightly as kind of I guess and I don't know Scott if you can.
Yeah go ahead.
Okay I cut you off.
So I just wanted to see if Scott you kind of comment on.
How he views.
<unk> price action at this point in terms of.
On the room side.
And basically just trying to understand if there's been any real pushback yet on you guys continuing to push room rates.
So I'll start with the facts and Scott can get the <unk>.
Good question Scott.
So I mean ADR was up about five 2% so.
Almost at $194, Mark with an which is well above where pre COVID-19 levels, though but from an occupancy standpoint, I think thats going to lean into what Scott said, you're going to say on pricing is we're in that 80 88, 5% occupancy. So overall are up 340 basis points, we're still below our pre COVID-19, so theres still room to grow on the occupancy side.
Yes.
I'll jump in here just that all comes down to Revpar. So revpar was up about 9%.
And then if you look at a little deeper into the components of that.
Catering was up 40% year over year.
Catering is also associated with group group room nights.
And there is always a question as it relates to 2019 and where are we in comparison to 2019 and I recall us saying at one point were about to get there to.
To be comparable I can tell you at this point.
This year, we're about 78% above 2019 numbers.
In catering sales.
Look forward into what we call same time last year, meaning what's on the books now.
We're looking and what was on the books forward looking last year.
Sales revenue was up about 43%.
Catering.
Revenue is up about 56%.
So we're really encouraged not only with the quarters performance.
<unk> hotel and.
In catering, but also the forward look.
And to add to Scott's point again going back to the.
A mix of in that group sales you are now predominantly corporate and corporate is a great great mix because that leads to other ancillary revenue throughout the casino floor.
Okay got you great color guys I appreciate it thanks.
Our next question comes from Barry Jonas with <unk> Securities. Please go ahead.
Hey, there this is actually remain <unk> on for Barry.
Can you talk about some.
What do you think the impact will be.
From the event calendar with F. One Super Bowl coming up long.
Yes, I know theres been this Lorenzo theres been a lot of talk about.
F One and Super Bowl and obviously we're excited.
Both of those weekends as is everybody in the industry, but when we talk about it around here I mean, it's Las Vegas is unbelievable in the sense that it seems like there is there is something major going on almost every weekend. So.
It's really it's just two four data points that we're going to be great but.
For us as we see our business unfolding. It just is.
Two weekends out of a lot of great weekends that are coming up for us. So.
I think thats part of why our forward look looks as it does as Scott kind of outlined in the last question.
Got it.
And then just a quick follow up.
The A's are out.
And on the potential of vivo land sale, what's your view on including gaming gaming entitlements to the increased value there.
Well the problem.
Listen we were obviously excited about the opportunity that we were talking to us about it didn't obviously end up happening I can tell you one thing from a positive standpoint that has come out of that is that now a lot of people are aware of how great of a side that it is with 100 <unk>.
Acres, there right off of the Las Vegas strip on the corner of <unk> and Tropicana.
The property currently has gaming entitlements associated with it because.
Because we had the wild west casino on that property for some time, which was a.
Our full casino license here and.
We've worked on that property for a number of years and.
Currently the till for development, but also.
We've had a number of inbounds of people that are also interested in the entire property or parts of the property. So we'll just continue to have those discussions, but like I said I think the real big positive that came out of that as a kind of put a spotlight on how valuable that piece of property is and how rare it is to be able to have a 100 acres.
Property that magnitude within what is essentially the resort corridor.
Got it thank you so much.
Okay.
Our next question comes from Dan <unk> with Wells Fargo. Please go ahead.
Hey, good afternoon, everyone and thanks for taking my questions.
Wanted to touch on Durango, I mean, after you saw that flip into April .
You think about demand, maybe being a little bit more fragile than three months ago is it still how you think about cannibalization at this point.
Are you still thinking about full speed ahead on in terms of phase two of that debt property expansion.
So we're currently working on phase two from a planning standpoint, which is kind of how we always have operated.
Our anticipation is that we're going to open Durango on November 20th that it's going to be a successful opening and theres going to be sufficient demand for that to be able to hit our targeted returns.
We want to be in a position that we can pull the trigger on a potential phase III.
As soon as soon as it makes sense for us to do that we would be looking to add.
Some gaming capacity as well as some additional entertainment options.
So.
That that is.
One of the projects. We're currently working on as we had mentioned in the past as well. We're also working on <unk>.
Plans and entitlements for the <unk> project, which is located in Henderson another great area without a lot of gaming capacity in a great location in an area. That's got great demographics as well. So those are kind of the two that.
The.
If you include the <unk> phase III gives us essentially a projects for us to grow the company that we actually control.
As a company that we can rollout over a number of years here, but those would be the two that would be next in line in our minds.
Did I answer your question.
Yes.
And the other point I would add though too I mentioned the blip in April .
We don't view Durango is a blip in April when I look at it like Red Rock Casino resort opened up in April .
And it's been growing ever since so these are 40 year assets. So.
That one blip, which it was a blip doesn't know hazard.
It's like a blip from the greater sponsoring a history a couple yes, right, it's not a book.
And you did mention cannibalization.
We hope everybody who wants to go.
Check out Durango.
Patient and they will.
But when you look at Red rock.
The dynamic growth that we're seeing in red rock and the surrounding.
Residential development redox on its own growth trajectory relative to summerlin Western high net worth people moving into the valley. So any cannibalization that comes is going to be a short term Durango will be short term and backfill very quickly.
Got it and then just for my follow up obviously, there's been some pretty extreme heat out west I mean is there.
Any impact in terms of driving customer or alternatively more locals.
Tom that would result in maybe pronounced seasonality.
No I think the seasonality in Q2 was in line with what we've seen in the past history, maybe not in the past relative to 'twenty, one to 'twenty, two but historical seasonality, yes, I mean, typically Las Vegas locals do tend to go on vacation and.
In the Summertime is very hot here wherever they go to get out of the heat or just have their summer vacation.
But as we mentioned I don't think it's anything out of the norm of what we've seen outside of 'twenty, one 'twenty, two which obviously.
We didn't see any seasonality in those years.
Thanks, I appreciate all the detail.
I appreciate it.
Our next question comes from Chad Beynon.
With Macquarie. Please go ahead.
Good afternoon, Thanks for taking my question.
Just wanted to dig a little bit more into the gross gaming revenue I know roughly 80% to 85% of your GDR comes from slots and we've seen probably some some stronger numbers on slots versus maybe some deteriorating numbers on tables not sure. If that is really just kind of highlighting how strong.
Some of the table revenues were last year from from a retail customer but is that kind of what you guys were seeing in your business as the core slot business did that hold up well in the months that that.
You were talking about thanks.
Okay.
I think when you look at look on absolute dollar slots were the largest decline when you look at table games actually from a volume perspective.
Games dropped were actually up.
So we had some holden.
They will contribute.
<unk> to the decline.
And then when we look at sports as we said, it's really a function of the Golden Knights, we can triangulate right against that and our whole percentage issue.
For sports.
Okay, great. Thanks.
So that is kind of conducive to our core strategy is cables up we've invested a lot of money in our <unk>.
In our table rows, yes, we are.
New high limit room for slots and a new high limit room for tables coming on Green Valley Ranch towards the end of the year and then we also have a.
New high limit room at Santa Fe coming online. So this is all part of us investing in high net worth high profitable high profit customer segments.
Okay. Thank you and then from a capital allocation and leverage standpoint could you just kind of remind us.
When you would start moving forward on the next project or when you would start returning to share repurchases. After Durango opens in the fourth quarter. Thank you.
I think from a leverage standpoint.
Kind of walk through or we're going to get Durango open so leverage should peak out Q4, and then as Durango loads up.
Ramps up we will start to naturally delever down the board.
Considers capital allocation every quarter, both from a dividend perspective, and a share repurchase perspective.
We've made it very clear.
The share repurchase program in the past because we are in the throes of Durango.
And once that launches that's to your point I think we're going to return to a more balanced approach to returning capital to our shareholders.
Thanks, Steve looking forward to the opening I appreciate it.
Okay.
Yes.
Our next question comes from David Katz with Jefferies. Please go ahead.
Hi afternoon, everyone. Thanks for taking my questions.
You covered a lot of ground already.
Wanted to ask about is how youre thinking about Omnichannel strategy technology digital et cetera, digital wallet was something you were.
Working out rolling out et cetera, and update there would be helpful too.
Yes, it's a great time to ask that question, we're rolling out a bunch of new tax.
It all revolves around transaction ease.
Less friction for the customer.
Mobile device. So we are complement of products, starting with a new mobile app.
And that will bring transactional.
Sure.
Features for the customer this would include.
Digital cash digital wallet.
Mark or tracts, which is retail credit lines up to $5000 microcredit microcredit.
We will also add a bunch of new functionality into the app related to booking reservations and different things like that.
It will also.
Corporate the new sports mobile system, and then all of this will be under a singular wallet.
And a singular password construct.
Enrollment construct that allows you to not have to enroll separately and all of these different applications. So there was our target to have all of that online before the opening of Durango and we're in the throes of having either roll those things out or rolling them out.
Thank you.
Thanks, David.
This concludes our question and answer session I would like to turn the conference back over to Stephen <unk> for any closing remarks.
Thank you very much for everyone joining the call and we look forward to talking more at the Durango approaches later this fall I take care.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.