Q4 2023 Full House Resorts Inc Earnings Call

Greetings and welcome to full house resorts fourth quarter earnings call. At this time, all participants are in a listen only mode.

Operator: Greetings. Welcome to Full House Resorts' fourth quarter earnings call. At this time, all participants are in a listen-only mode.

Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Lewis Fanger, CFO. Thank you. You may begin. Thank you and good afternoon, everyone.

Question and answer session will follow the formal presentation, if anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Lewis Fanger CFO. Thank you you may begin.

Thank you and good afternoon, everyone welcome to our fourth 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 security laws I would also like to remind you that the company's actual results could differ materially from the.

Lewis A. Fanger: Welcome to our fourth-quarter earnings call. As always, before we begin, we remind you that today's conference call may contain forward-looking statements that we are making under the safe harbor provision of federal security laws. I would 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 a discussion of risks that may affect our results. Also, we may make reference to non-GAAP measures such as adjusted EBITDA.

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 release press releases that we issue and last.

Lewis A. Fanger: For a reconciliation of those measures, please see our website as well as the various press releases that we issue. And lastly, we're also broadcasting this conference call at fullhouseresorts.com, where you can find today's earnings release as well as all of our SEC filings. And with that said, I'll give a few comments, and then Dan will chip in with any cleanup here.

We're also 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 with that said I'll.

I'll give a few comments and then Dan will chip in with any clean up here, but as we said in our earnings release, where that transition point now with our company. We borrowed in large part to fund two large casino projects are legacy properties have historically carried the burden of that debt largely covering interest expense on their own post COVID-19.

Lewis A. Fanger: But, as we said in our earnings release, we're at a transition point now with our company. We borrowed in large part to fund two large casino projects. Our legacy properties have historically carried the burden of that debt, largely covering interest expense on their own.

Lewis A. Fanger: Post-COVID, business at our legacy properties feels like it has largely settled down to around 30 or 35 million dollars of adjusted EBITDA per year, again largely covering our annual interest expense. With American Place and Chamonix both now open and construction CapEx winding down, we are now set up for significant free cash flow generation. We have long said we expect $100 million of incremental earnings in total from our temporary American Place facility and Chamonix after they have ramped up, and we continue to believe strongly in those figures. Those amounts are on top of the $30-plus million generated by our legacy properties. And so when you start looking at those figures, hopefully, you also see that our company is transitioning now into a large free cash flow generation. Somewhat related, we recently received all of the necessary approvals to operate our temporary American Place facility until August 2027. That is an important development that many have missed. For casino construction projects, you'll typically spend 40 to 50 percent of your project budget in the six months before opening.

Business at our legacy properties feels like it is largely settled down to around 30 or $35 million or so of adjusted EBITDA per year again, largely covering our annual interest expense.

With American place in Chamonix, both now open and construction Capex winding down we are now set up for a significant free cash flow generation. We have long said, we expect $100 million of incremental earnings in total from our temporary American place facility and Chamonix. After they have ramped up and we continue to believe strongly in that.

As figures those amounts are on top of the 30 plus million dollars generated by our legacy properties and so when you start looking at those figures hopefully you also see that our company is transitioning now into a large free cash flow generator.

Somewhat related we recently received all the necessary approvals to operate our temporary American place facility until August 2027 that is an important development that many have missed for casino construction projects, you'll typically spend 40% to 50% of your project budget and the six months before opening that mean.

Lewis A. Fanger: That means we won't start investing large amounts into the permanent American Place facility until the second half of 2026 and into 2027. That's important for two reasons. First, contrary to what we have heard from many investors recently, it means we do not need to be in the debt markets right now. We don't expect the need to finance the permanent American Place casino for a few years. That additional time should be our friend. Over the next few years, the debt markets have the potential to show continued improvement with the potential for interest rate cuts between now and that future financing day. It also means that our two newest casinos will have time to season, allowing their EBITDA to ramp up to the full potential that we expect from them. If we hit the EBITDA levels that we expect, gross debt to EBITDA should be around three times, which is a low figure historically for any gaming company.

We want them, we won't start investing large dollars into the permanent American place facility until the second half of 2026 and into 2027, that's important for two reasons first contrary to what we have heard from many investors recently it means we do not need to be in the debt markets right. Now we don't expect the need to finance the permanent <unk>.

It can place casino for a few years.

That additional time should be our friend over the next few years the debt markets have the potential to show continued improvement with a potential for interest rate cuts between now and that future financing day. It also means that our two newest casinos will have time to season, allowing their EBITDA to ramp up into the full potential that we expect from them. If we hit the EBITDA levels that we.

Specced gross debt to EBITDA should be around three times, which is a low figure historically for any gaming company and most importantly, the August 20th twenty-seven extension offers us more time to generate even more positive free cash flow, allowing us to self fund a large portion of our permanent American place facility.

Lewis A. Fanger: Most importantly, the August 2027 extension offers us more time to generate even more positive free cash flow, allowing us to self-fund a large portion of our permanent American Place facility. Going back to American Place for a second, our temporary American Place facility has recently kicked into a new gear. In December, American Place reported gaming revenue of $8.2 million. That record will be short-lived.

Going back to American place for a second are temporary American place facility has recently kicked into a new gear recently in December American place reported gaming revenue of $8 $2 million that record will be short lived for February you'll see a figure north of $9 million at American places anniversary party of few.

Lewis A. Fanger: For February, you'll see a figure north of $9 million. At American Place's anniversary party a few weeks ago, we did double the coin-in of opening night and had coin-in that was about 50% higher than our previous record for a single day. March is also off to a good start.

Ago, we did double the coin end up opening night and had coin and that was about 50% higher than our previous record for a single day March is also off to a good start.

Lewis A. Fanger: At Chamonix, we purposely crafted a phased opening. Despite some brutal snowstorms recently, two things are clear to us so far. One is that there is no high-quality gaming product in the Colorado Springs market akin to what we offer at Chamonix. And two, guests are clamoring for something nice in town. It appears that our rooms will be very easy to fill on weekends when we can easily fill those rooms above 80 and even 90 percent occupancy. For the midweek period, group business will be important.

At Xiaomi, we purposely crafted a phased opening despite some brutal snow storms recently two things are clear to us. So far one is that there's no high quality gaming product in the Colorado Springs market akin to what we offer at Chamonix and two guests are clamoring for something nice in town.

It appears that our rooms will be very easy to fill on weekends. When we can easily fill those rooms above 80, and even 90% occupancy for the midweek period group business will be important group business will start to come into play over the coming months now that meeting planners can see the beautiful facilities that we've created and can be assured that construction.

Lewis A. Fanger: Group business will start to come into play over the coming months now that meeting planners can see the beautiful facilities that we've created and can be assured that construction will not interfere with their meeting plans. We also have our high-end steakhouse on the verge of opening. Chef Barry is renowned for his Barry's Prime Steakhouse and Nine Steakhouse in Las Vegas, and he'll be bringing his culinary talents to Chamonix around the end of the month.

<unk> will not interfere with their meeting plants.

We also have our high end steakhouse on the verge of opening chef Barry is renowned for its various prime steakhouse and nine steakhouse in Las Vegas, and he'll be bringing his culinary talents to chamonix around the end of the month. Once that's open while we won't have our full breadth of amenities. We will have the most important elements our casino our parking garage.

Lewis A. Fanger: Once that's open, while we won't have our full breadth of amenities, we will have the most important elements, our casino, our parking garage, all of our hotel rooms, and our high-end restaurant. We can then turn on our marketing heading into the summer months, which is seasonally the strongest period for the Cripple Creek gaming market. That's what I had, Dan.

All of our hotel rooms, and our high end restaurant, we can then turn on our marketing.

Heading into the summer months, which is seasonally the strongest period for the Cripple Creek gaming market.

That's what I had Dan you want to do some clean up there are some Q&A you did a lot of stuff, but let me just touch a couple of things we've been very focused on getting our Colorado Open. Meanwhile, Illinois continues to mature which is nice.

Daniel R. Lee: You want to do some cleanup there, or should we do a Q&A? You did a lot of stuff, but let me... I'd like to touch a couple of things.

Daniel R. Lee: We've been very focused on getting Colorado open. Meanwhile, Illinois continues to mature, which is nice. I was actually editing our 10K today, and there's all this historical language in there about Mississippi being our most important property, and it's no longer the case. It's still important, but we actually make more money in Illinois now, and pretty soon, Colorado is going to give it a run for its money.

Actually editing our 10-K today and there's all this.

Uh huh.

Historic language in there about Mississippi being our most important property and it's no longer the case, it's still important but we actually make more money and Illinois, now and a pretty soon enough, Colorado is going to give it a run for its money.

Daniel R. Lee: But, you know, getting Colorado completed in a small town on the backside of Pikes Peak has been a challenge, but it's mostly done now. The high-end restaurant will open later this month, and then there's a jewelry store shortly thereafter, and we have one significant bar, one Italian restaurant that's going to be a little later, and the spa. So it's coming, but it's not done yet. But in effect, we've been saying for quite some time that the company is going to at least triple in size, and that's what it's in the process of doing. It's also kind of reassuring because when we issued the bonds and then we did the add-on for the temporary casino, we basically borrowed all the money in advance of construction. So we've been paying the interest expense on all this stuff without having it open. And every month, the total cash balance, including the restricted cash, would decline.

But getting Colorado completed in a small town in the backside of Pikes peak has been a challenge, but it's mostly done now.

The high end restaurant will open later this month and then there's a jewelry store shortly thereafter in the one significant bar, one Italian restaurants, and it can be a little later in the spa. So it's it's it's coming but it's not done yet.

But in effect, we have been saying for quite some time that the company is going to at least triple in size and that's or it's in the process of doing.

It's also kind of reassuring because when we issued the bonds and then we did the add on for the temporary casino, we basically borrowed all the money in advance of construction. So we've been paying the interest expense on all of this stuff without having it open.

And you know every every month, the total cash balance, including the restricted cash would decline as and so you're playing this game of trying to make sure you have enough money to complete construction and everything and and now it's kind of at an inflection point and it's starting to go up and if you play with the math a little bit you can see her.

Daniel R. Lee: And so you're playing this game of trying to make sure you have enough money to complete construction and everything, and now it's kind of at an inflection point, and it's starting to go up. And if you play with the math a little bit, you can see our free cash flow per share, I mean, after interest expense, and we're pretty well sheltered for taxes, not only with tax loss carry forwards but with a lot of depreciation on the new stuff we've built. So, effectively, we pay little or no income taxes.

Free cash flow per share I mean, after interest expense and we were pretty well sheltered for taxes, not only with tax loss carryforwards, but with a lot of depreciation from the new stuff we built.

So effectively we paid little or no income taxes, so our free cash flow per share is about a dollar headed for $2.

Daniel R. Lee: So our free cash flow per share is about a dollar headed for $2, and we should be able to generate quite a bit of cash in the next three years in order to build American Place, the permanent. The commitment to the state was $500 million, of which we've invested about $175 million to date, so we have three and a half to go, and that's a permanent casino with a small high-end hotel and a bunch of food and beverage facilities. So a figure half the size of Durango Station, if you will. We can probably generate about half of that internally, and so we need to fund $150 million in debt. We won't do that this year. The money actually isn't needed until a later date. The Potawatomi lawsuit won't be resolved until the fourth quarter of this year or the first quarter of next year.

And and we should be able to generate.

Quite a bit of cash in the next three years of in order to build amira.

Place the permanent the commitment to the state was $500 million of which we've invested about 175 to date. So we have three in a quarter to go and that's a permanent casino with a small high end hotel and a bunch of food and beverage facilities. So figure half size of Durango station, if you will.

We can probably generate about half of that internally.

And so we need to fund the $150 million of debt.

We won't do that this year the money you're actually isn't needed until a later date the potawatomi lawsuit won't be resolved until the fourth quarter of this year or the first quarter of next year.

We think it's just a nuisance law suit designed to forestall us from building, but they are trying to get the city or state to kind of restart the selection process and give them. Another shot at it now there were I think five proposals and the outside independent consultant ranked theirs is the least.

Daniel R. Lee: We think it's just a nuisance lawsuit designed to forestall us from building, but they are trying to get the city or state to kind of restart the selection process and give them another shot at it. Now, there were, I think, five proposals, and the outside independent consultant ranked theirs as the least attractive of all five proposals on like eight of nine different measures or something, and I was there, and their proposal was pretty bad. Nevertheless, you have a lawsuit out there saying, you know, we think whether Full House should have this license is debatable. We're pretty sure we'll win.

Attractive.

All five proposals unlike eight of nine different measures or something in and I was there and it was there their proposal was pretty bad.

Unless you have the lawsuit out there, saying you know we think the weather full house should have this license is debatable.

We're pretty sure will win them.

Daniel R. Lee: If we don't, we would have certain legal rights that we would pursue. But in the meantime, we continue to operate the temporary facility and won't seek the... Additional financing for the permanent until it's resolved. And so it's probably a year from now. We're looking at that, but at that point, our EBDIT will be three or four times what our interest expense is, and will actually be under levered compared to most casino companies, so the task of raising $150 million for the balance of the American place would not be difficult. Please see the complete disclaimer at https://sites.google.com or at www.sites.google.com. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in question. You may press star 2 if you would like to remove your question from the queue.

If we don't we would have a certain legal rights that we would pursue them.

But in the meantime.

We continue to operate the temporary.

And won't seek the.

Additional financing for the permanent until it's resolved and so it's probably a year from now we're looking at that.

Well at that point.

E B D O T O b, three or four times, what our interest expenses will actually be under levered compared to most casino companies. So the task of raising $150 million for the balance of the American place would not be difficult.

In fact.

It'd be prone to do it we'd have to probably refinance the bonds anyway, which are due in 2028 I believe they are callable.

But it may not increase the size of the bond deal you might just want to create a carve out to a low of term loan or bank facility.

Because once the permanent American places open we're going to be paying down debt very very fast. So anyway, that's five additional thoughts a little bit redundant with what Louis said, but happy.

Happy to take questions.

Thank you if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.

Jordan Maxwell Bender: And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question is from Jordan Bender with Citizens JMP. Please proceed. Good afternoon, everyone.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Our first question is from Jordan Bender with citizens JMP. Please proceed.

Great. Good afternoon, everyone. Lewis, you really or you reiterated the $100 million EBITDA target I believe that half of it is coming from Colorado half from Illinois, but in Waukegan can you just talk about how much of that is coming from revenue uplift you talked about some of the records.

Lewis A. Fanger: Lewis, you reiterated the $100 million EBITDA target. I believe that half of that is coming from Colorado, half from Illinois. But in Waukegan, can you just talk about how much of that is coming from revenue uplift? You talked about some of the records in February versus how much of that is coming from more right-sizing the cost structure and just seeing margin improvement off current levels. Thank you.

In February versus how much is that is coming from more right sizing the cost structure and just seeing margin improvement off of current levels. Thank you.

Well, it's mostly revenue improvement and a large portion of that falls to the bottom line.

Lewis A. Fanger: Well, it's mostly revenue improvement, and a large portion of that falls to the bottom line. We're trying to get a little more efficient with our marketing, but it's more about trying to get more revenue numbers for the same dollars of marketing by targeting the marketing. But as you go through the numbers, at least half of the incremental revenue has fallen to the bottom line, and that will probably continue to be the case. We did have some extra marketing spend. So in the fourth quarter, as an example, we spent about $1.2 million more on media and advertising in the fourth quarter than we did in the third quarter.

We're trying to get a little more of a first efficient on our marketing, but it's more about trying to get more revenue numbers for the same dollars of marketing, but targeting the marketing better.

But as you go through the numbers are at.

At least half of the incremental revenue has fallen to the bottom line and and that'll probably continue to be the case I mean, we did have some extra marketing spend so in the fourth quarter. As an example, we spent about $1.2 million more on media and advertising in the fourth quarter than we did in the third quarter.

Lewis A. Fanger: We did kind of... You mentioned that in passing on our last earnings call, for what it's worth. But you do those things not necessarily for the sake of the quarter. You do them for the sake of the longer term of the business. And a lot of that has been stripped back here in the first quarter.

We did kind of.

You mentioned that in passing on our last earnings call for what it's worth.

But you know you do those things not necessarily for the sake of the quarter you do it for the sake of the longer term of the business and a lot of that has been stripped back here in the first quarter. You know there's the question of did we run a lot of extra spend and then it helped that that's what helps us.

Lewis A. Fanger: You know, there's the question of, did we run a lot of extra spend, and then it helped – that's what helped us in the first quarter, right? At the time we did it, we kind of wondered, well, that didn't seem to work. We ran a TV ad and so on and didn't see a lift in our revenues. But then when we stopped running it, we did see a lift in our revenues. So maybe it was a delayed lift. So it, but that's a judgment call.

Right. Its at the time, we did it we kind of wondered well, but that didn't seem to work with ran a T V at and so on and that didn't see a lift in our revenues, but then when we stopped running it we did see a lift in our revenue. So maybe it was a delayed lift.

So it but that's a judgment call, but I think most of the improvement going forward will be from revenues, Yeah, I mean, I'll I'll I'll I'll flip it around you on a little bit I was looking at our monthly gaming revenue last year, and we had numbers that were consistently around 7576 in that ballpark.

Lewis A. Fanger: But I think most of the improvement going forward will be from revenues. Yeah, I mean, I'll flip it around a little bit. I was looking at our monthly gaming revenue last year, and we had numbers that were consistently around seven, five, seven, six in that ballpark. So when we crossed $8 million for the first time in December, I went around telling people, look, we think eight is the new four, not seven. Now, January was its own exception where you had some crazy snow everywhere in the country, including here in Waukegan, and that dinged January.

And so when we crossed $8 million for the first time in December I ran around selling people look we think eight is a new floor not seven.

Now January was its own exception, where you had some crazy snow everywhere in the country, including here in Waukegan and that that Ding January but looking into February and even March I mean look I'm I'm.

Lewis A. Fanger: But looking into February and even March, I mean, look, eight is clearly looking like it's the new floor, and nine may well be the new floor. And I think what people have forgotten recently is that these casinos' best months aren't in the first 12 months of opening. It's, you know, you don't have your best month in year one or year two; it's after that.

Eight eight is clearly looking like it's the new floor in nine may well be the new floor and I think what people have forgotten.

Recently is that the these casinos there best their best months arent in the first 12 months of opening. It's you know you don't have your best month in year, one or year two it's after that so where we fully believe that that are of.

Lewis A. Fanger: So we fully believe that there is more revenue uplift that you're gonna see from here. Yeah, and basically, if half the incremental revenue falls to the bottom line, that brings up margins because the margins are still lower than they will be at maturity. Most of the way we get there is improvement.

That there that there is more revenue uplift that youre going to see from here.

And basically a hefty incremental revenue falls to the bottom line that brings up margins because the margins are still lower than they are will be at maturity, but.

Most of the way we get there is improved revenue.

Yeah.

Lewis A. Fanger: And then just on the follow-up, the legacy business that you talked about, the 30 to 35 million of EBITDA, some commentary out there has been that labor levels or wages continue to go up and impact margins. How should we think about that legacy portfolio and maybe the growth profile into 24? Well, it's a little different in different parts of the country.

Great and then just on the follow up the the legacy business that you talked about the 30% to $35 million of EBITDA.

Just some commentary out there has been labor levels of wage wages continue to go up and impact margins, how should we think about that legacy portfolio and maybe the growth profile into 'twenty four.

Well, it's a it's a little different in different parts of the country, Colorado for example keeps increasing their minimum wage or actually the increased it years ago, but it goes up every year under the law. So it's somewhere around $15 an hour now which is about twice what it is in Mississippi.

Lewis A. Fanger: You know, Colorado, for example, keeps increasing their minimum wage. Actually, they increased it years ago, but it goes up every year under the law. So it's somewhere around $15 an hour now, which is about twice what it is in Mississippi. And Mississippi has not seen an increase in the minimum wage in a long time. And, of course, we've operated in Mississippi for a long time, and Cripple Creek is challenging. I mean, we're trying to staff a place that will employ four or five hundred people in a town that has twelve hundred total residents. So getting people to commute to this mountain community and work is a challenge, but we've been doing that. In Waukegan, there are a lot of people around here, so that's not so hard. But even a dishwasher has to be licensed by the Gaming Commission, and that's an ominous 25-page form. And that's been a little bit of a challenge, but we're working through that, and we now have a pretty stable workforce here, and we're pretty happy with it. So it varies from different parts of the country.

And Mississippi is not seen an increase in minimum wage in a long time.

And of course, we've operated in Mississippi for a long time in Cripple Creek is challenging I mean, we're trying to staff up a place little employee four or 500 people and tell them that has 1200 total residents so getting people to commute to this mountain community.

And work.

As a challenge and.

But we've been doing that in <unk>.

Waukegan Theres a lot of people around here that that's not so hard but even a dishwasher has to be licensed by the gaming Commission and that's an ominous 25 page form and.

That's been a little bit of a challenge, but we're working through that and we now have a pretty stable.

Workforce here and and.

We're pretty happy with it so it varies from different parts of the country.

Yeah, and the other thing I'd just be aware of is is I think like any other business if if the.

Lewis A. Fanger: You know, and the other thing you just need to be aware of is, I think like any other business, if the cost of labor is going up, and the availability of labor is tight. You look for ways to be more efficient with the labor. Whether it's technology that allows you to operate the casino floor a little more effectively, you know, is it going to be, like somebody came in and was pitching me on the artificial intelligence stuff, and I said, you know, we have these video blackjack games that have a recording of somebody dealing it. Imagine how much more effective they would be if you used artificial intelligence, the person talking to you about, hey, that was a good bet, and so on.

Cost of labor is going up and the availability of labor is tight you look for ways to be more efficient with the labor whether it's.

The technology that allows you to operate the casino floor, a little more effectively.

You know is it is it going to be.

Like if somebody came in and was pitching the artificial intelligence stuff and I said you know we have these video.

Blackjack games that have a recording of somebody dealing it imagine how much more effective they would be if you use artificial intelligence that the.

The person talks to you about hey that was a good bet and so on and that's I'm sure somewhere down the road and if you could make it more of a.

Lewis A. Fanger: And that's, I'm sure, somewhere down the road. And if you can make it more of an interactive thing, then all of a sudden, maybe people are less necessary to have an actual dealer. And so now you go to the dealing games, there would only be higher minimums. And we've done that in a number of our markets. And by the way, the dealers ultimately like that because if you don't have low minimum games, the tips tend to be higher.

Interactive thing then all of a sudden maybe people are less necessary to have an actual dealer and so now you would go to to the dealing games would only be higher minimums.

And we've done that in a number of our markets and by the way the dealers ultimately like that because if you don't have low minimum games, the tips tend to be higher fewer dealers and higher minimums and the dealers. We have some dealers who are making really good money and we have a lot of it was made good money, but we have some in some markets that are.

Lewis A. Fanger: You have fewer dealers and higher minimums, and the dealers, we have some dealers who are making really good money. And we have a lot of dealers who make good money, but we have some in some markets that are double what they are in other markets. So, you know, and the same thing in the food and beverage area. If you go to, as airports have renovated, they now have this place where you sit at an iPad and you order your meal, and you never see the waiter until they bring you your meal. At some point, people will be accustomed to that enough that maybe we can do that in our facilities, and then the same waiter can serve more people. So you're constantly looking for ways to be more efficient with the payroll, and at the end of the day, that's also good for the employees because we can pay people more per person if we have fewer people, as long as we're providing the same good service. And so, if it's done right, it's a win-win. Great. Thank you very much.

Double what they are in other markets. So.

And the same thing in the food and beverage area you find like if you go to.

As airports have renovated they now have a place where you sit at an iPad and you order your meal and you'll never see the waiter until they bring you your meal.

At some point people will be accustomed to that enough that maybe we can do that in our facilities and then the same waiter can serve more people.

So you're constantly looking for ways to.

Be more effective with payroll and and at the end of the day.

That's also good for the employees because we can pay people more per person. If we have fewer people as long as we're providing the same good service.

So if it's done right, it's a win win.

Great. Thank you very much.

Our next question is from Ryan <unk> with Craig Hallum. Please proceed.

Ryan Ronald Sigdahl: Our next question is from Ryan Sigdahl with Craig Hallam. Please proceed. Hey, good afternoon, Dan Lewis. Two on Chamonix.

Hey, good afternoon, Dan Lewis two on Chamonix. So first firsthand experience. It is beautiful, it's it's gonna be remarkable in that market, but with the soft opening several inconveniences I'll say that negatively impacted the player experience in.

Daniel R. Lee: So, firsthand experience, it is beautiful. It's, it's going to be remarkable in that market. But with the soft opening, there were several inconveniences that negatively impacted the player experience in the first days, weeks following the soft opening. So I guess, fairly minor, corrected with the ongoing construction. But what feedback have you heard from those early visitors? Have you got them back to try it once, once more things are done?

In the first days weeks following soft opening so I guess fairly minor corrected with the ongoing construction, but what feedback have you heard from those early visitors have you got them back to try it once once more things are done, but just kind of curious the trends you've seen from visitors and feedback.

Daniel R. Lee: But just kind of curious, the trends you've seen from visitors and feedback. Well, recognize that the hotel for the first few weeks was pretty much only for invited casino guests. And so then we went back and said, hey, we're sorry. Our televisions weren't working right. Or so, you know, the little things you run into. Like, I was up there one day, and all of a sudden, the cable television wasn't working. It turns out that some ice had slid off the top of the building and pancaked the dish.

We recognize the the hotel for the first few weeks was pretty much only invited casino guests and.

And so then we went back and said Hey, we're sorry, our televisions weren't working writer. So you know the little things you run into as I said I was up there one day and all of a sudden the cable TV wasn't working turns out some ice had slid off the top of the building and pancake the dish.

Daniel R. Lee: And I was like, OK, we need to get a new dish. And maybe we should put it in a different spot, you know? And so there were a lot of issues like that. And we had no problem going back to those people and saying, hey, mea culpa. Please come back and give us another shot.

Okay, we need to get a new dish and maybe we should put it in a different spot.

And so there are lot of issues like that and we have no problem going back to those people and say hey may of Copa Please come back and give us another shot frankly.

Daniel R. Lee: Frankly, they're casino customers. We would invite them any time. So now we have no excuse to have them back. You know, we have some little things, little annoyances. They really annoy the heck out of me, but our architect put in one of our towers. The guest rooms are supposed to have four panels of glass so you have this expansive view. For some idiotic reason, our architect had some solid panels put in. I guess at first he said it was for the energy code, but it turns out it's not the energy code. I think it was just he liked the look of them on the outside.

And frankly their casino customers, we would invite them anytime. So now we have a no excuse to have them back.

You know we have a.

Some little things that little annoyances, there they really annoy the heck out of me, but there are.

Our architect put.

In one of our towers.

The guestrooms are supposed to four panels of glass. So you have this expansive view.

For some idiotic reason, our architect had some solid panels put in because I guess at first he said it was the energy code, but it turns out it's not the energy code.

I think it was just like the look of it on the outside I don't know by the time, we figured it out the glaciers putting up some of these panels and I think there's 25 rooms that have Ah if the panels on the edge of the room it doesn't matter that much because the curtains would hide it because it's about twenty-five instances where the panels in the middle. So you opened the curtains and you ever saw.

Daniel R. Lee: I don't know. By the time we figure it out, the glacier's putting up some of these panels, and I think there are 25 rooms that have them. If the panel's on the edge of the room, it doesn't matter that much because the curtains would hide it. But there are about 25 instances where the panel's in the middle. So you open the curtains, and you have a solid panel blocking your view.

<unk> panel block in your view.

And we can't fix at the middle of the winter, we'll fix it in the spring.

Daniel R. Lee: And we can't fix that in the middle of the winter. We'll fix it in the spring. And so, kind of tongue-in-cheek, we put a little sign on those that said, "Sorry, we blocked your view. Our architects screwed up." At one point, I had a cell phone number on the thing.

And so we kind of tongue in cheek.

Put a little sign on those that said the.

Sorry, we blocked your view or architect screwed up one point ahead of cell phone number I'm. The thing we decided maybe that was a little too much and and we said, but we're willing we're happy to give you $20 off your room rate or $20 a free play.

Daniel R. Lee: We decided maybe that was a little too much. And we said, but we're happy to give you $20 off your room rate or $20 of free play upon request because we blocked your view. And the funny thing is that, I won't say who, but the CEO of one of our competitors stayed in our hotel, happened to get one of those rooms, and asked for his $20. So we gave it to him, right?

Upon request because we blocked your view and the funny thing is the I won't say, who but the CEO of one of our competitors stayed in our hotel happen to get one of those rooms, and Astra is $20. So she came to them right. So southern and some of those things that you know you're just working through and I think any new.

Daniel R. Lee: So there are some of those things that you're just working through. And I think any new hotel has those issues. It's certainly harder.

Hotel has those issues.

It's certainly harder.

You have to appreciate this is one of the largest buildings built.

Daniel R. Lee: You have to appreciate, this is one of the largest buildings built in any kind of rural Colorado ever. I mean, it's bigger than anything in Vail or Aspen. You know, the only buildings similar to this were Ameristar and Monarch and Black Hawk, and they had similar issues. You didn't have enough of a workforce to get everything built all at once, so we couldn't do like Durango Station where you open everything at once because we just didn't have enough finished carpenters and so on.

In like kind of rural Colorado ever I mean, its bigger than anything in Vail or Aspen.

You know the only building similar to this where a mere start in monarch in Black Hawk and they had similar issues you didn't have enough of a workforce to get everything built all at once so we couldnt do like Durango station, where you open everything at once because we just didn't have enough finished carpenters and so on so so we had them focus on the casino.

Oh, and the hotel and now they're focused on the a steakhouse and then the spa. So we are opening in stages and it's.

Daniel R. Lee: So we had them focus on the casino and the hotel, and now they're focused on the steakhouse and then the spa. So we are opening in stages, and it's a little fortuitous in a way as well. We opened into the winter, it's seasonally weakest in the winter, and so during this ramp-up phase, it gives us the chance to kind of season our employees, get all of our amenities up and running before you get the big summer seasonal rush, before we put our big marketing spend out there as well. So we knew that there were going to be issues with the opening. Every single casino opening that I've been to, that Dan's been to, has had some issues, and I can tell you about issues at Wind Palace, I can tell you about issues at Fontainebleau, Bellagio, Mirage, you can go through the list. Unfortunately, it must have been a quiet news day because some of our issues got made it into the local paper, but look, we don't like having issues.

So it's a little fortuitous in a way as well you know we opened into into the winter its seasonally weakest in the winter and so during this ramp up phase and it gives us the chance to kind of season, our employees get all of our amenities up and running before you get the big summer seasonal rush before we put our big marketing spend out there as well so.

You know, it's we knew that there were going to be issues with the opening every single casino opening that I've been to that Dan spend too has had some issue and I can tell you about issues at Wynn Palace I can tell you about issues at Fontainebleau Palazzo Mirage. We you can go through the list and on.

Unfortunately, it must have been a quiet newsday because some of our issues got.

It made it into the local paper, but.

But you know look we don't like having issues, we want everyone to have a good experience and for US. It is about making sure that the people that were inconvenienced will have a very very good experience. There. The next time they come back yeah, I still remember are like.

Daniel R. Lee: We want everyone to have a good experience and for us it is about making sure that the people that were inconvenienced will have a very, very good experience there the next time they come back. Yeah, I still remember... Like at Le Verge, we had one vertical column in the hotel that didn't have hot water, somebody had screwed it up and there was a whole bunch of rooms that didn't have hot water we had to deal with. At Bellagio, remember we had spent a lot of money to have the fountains that could go on a windy day they'd have a low fountains and on a calm day they'd be the full bore fountains so there were actually three different stages of fountains and and it was all designed that way and then I think early on we decided to never use the the low ones because people would stand there and say that's it I thought this was supposed to be spectacular so now they just announced that it's too windy to run the show and they just don't run it right but on opening night everybody was out there in their tuxedos and and my wife had a very expensive silk gown and and it was kind of windy and at one point I could see they were getting ready to let the fountains go and I said to my wife we have to get inside she says what do you mean I said there's no way Steve Wynn's gonna let him run the low wind fountains we got to get out of here and she was like resisting and I kind of dragged her into the building just as the fountains went and they drenched the crowd and everybody was came in running into the place just drenched in their tuxedos and gowns and so on so every place has their their issues and but I think we've and and I think there's also a little difference when we opened Bellagio you didn't have Yelp and you didn't have Mr. advisor you you didn't have people could go broadcast their unsatisfaction and and and so on and and usually the satisfied people don't go out and complain, right? It's the unsatisfied people.

At Lebaron <unk>, we had one vertical column in the hotel that didn't have hot water. So many that screwed it up and there was a whole bunch of rooms that didn't have hot water, we need to deal with it.

Bless you remember we had spent a lot of money to have the fountains that could go on a windy day they'd have a low our fountains and then comdata they'd be the full bore fountains. So there were actually three different stages of phones.

And and it was all designed that way and then I think early on we decided to never use the the low ones because people would stand there and say that's it I thought this was supposed to be spectacular. So now they're just announced that its two window to run the show and they just don't run it right, but on opening night everybody was out there in their tuxedos.

And my wife had a very expensive silk gown and and it was kind of windy and at one point I could see they were getting ready to lift the fountains go and I said to my wife, we have to get insights is what do you mean I said, there's no way, Steve Wynn is going to let them run the low wind phones, we gotta get out of here and she was like resisting and I kind of dragged her into the building.

Just as the fountains went and they drenched the crowd and everybody was came in running into the place just drenched in their tuxedos and gowns and so and so.

Every place says there their issues.

And but I think we've and I think there's also a little difference when we opened blush ago, you didn't have yelp, putting you didn't have menstrual advisor and yet you didn't have people could go broadcast their unsatisfactory and so on and.

And usually the satisfied people don't.

Go out and complaint right, it's the unsatisfied people and.

But we're working our way through it I think people are.

I literally think and and then and you mentioned I Hope you agree with me I think we built.

Daniel R. Lee: But we're working our way through it. I think people are, I literally think, and you mentioned, I hope you agree with me, I think we built the prettiest, not the biggest, but the prettiest regional casino in the whole country. You walk in, and it's every bit the quality that Wynn and Bellagio are, and we used a lot of the same designers, and so I think it will be a long-term asset for us, and it will get there.

The prettiest not the biggest but the prettiest regional casino in the whole country.

You walk in and and it's every bit the quality that win in blood as you are and we used a lot of the same designers.

And so I think it will be a long term asset for us and it will it will get there its getting all these accolades and.

But you know there are things like we didn't have a dinner restaurant. So we've been serving dinner at a makeshift buffet in the meeting room space that'll be rectified in the other week.

Daniel R. Lee: It's getting all these accolades, but you know, there are things, like we didn't have a dinner restaurant, so we've been serving dinner at a makeshift buffet in the meeting room space, and that will be rectified in another week. And actually here at American Place, it took us a long time, but we finally got the steakhouse done that's a diner, I shouldn't call it a diner, it's a modular structure that we bought from a diner company, but the finishes are not what you think of in a diner, it's more like Fog City Diner in San Francisco, and it's been open just a couple weeks and already you know, people were saying, well, I'm accumulating all these points, but all I can do is eat in the coffee shop, and now we have a high-end restaurant with a nice decor and steaks and stuff that you know is competitive with anything around us or anything at the competing casinos. Anyway, uh... Good. Well, despite all that, I did pay for my room, so you got some money out of me, and the casino floor was packed. So it was good from that standpoint. I will tell you an inside story that when you say there's always a surprise.

And actually here at American place, we felt it took us a long time, but we finally got the steakhouse done that's a diner.

I shouldn't call it a diner it it's a modular structure that we bought from a diner company, but the finishes or not what you think of in a diner, it's more like fog city diner in San Francisco.

That's been open just a couple of weeks in and and already you know people people were saying well I'm accumulating all of these points, but all I can do is eaten the coffee shop and now we have a high end restaurant with the a nice decor and stakes and stuff that are.

It is competitive with anything around us or anything that the competing casinos.

Anyway.

Good well despite all that I did I did pay for my room. So you got some money out of me and in the casino floor was packed so oh it was.

Excellent.

I will tell you it inside story that that.

When you said, there's always a surprise.

Lewis and Adam and I were there the night before it was supposed to open and we were checking out the ice palace down the street and we walk back into the place at about 10 30 at night and there were some dealers doing last minute training and.

Daniel R. Lee: Lewis, Adam, and I were there the night before it was supposed to open, and we were checking out the Ice Palace down the street. We walked back into the place at about 10:30 at night, and there were some dealers doing last-minute training. And as we walk into the building, they come running up to me and said, Mr. Lee, there's water coming out of the ceiling, and they show me where it is in the elevator lobby. And while we're standing there, It went from a trickle to a flood. And what had happened was that it had been very windy and very cold.

And as we welcome the building they come running up demand Mr. Lee, There's there's water coming out of the ceiling.

In the show me, where it's in the elevator lobby and as we're standing there.

It went from a trickle to a flood.

And what had happened is it had been very windy and very cold and it blew some of the flashing off one of the expansion joints between the building and was lying cold there ended the attic part of the building and coincidentally one of the heating units had failed.

Daniel R. Lee: And it blew some of the flashing off one of the expansion joints between the buildings and was allowing cold air into the attic part of the building. And coincidentally, one of the heating units had failed. And so there was this attic area that had gotten very, very cold, and it froze the sprinkler pipes. And there was a three-inch sprinkler pipe that froze, and it broke the end cap on it, but nothing happened because it had a plug of ice in it that kept it shut.

And so there was this attic area that had gotten very very cold.

And it froze the sprinkler pipes and there was a three inch sprinkler pipe that froze and it broke the end cap on it.

But nothing happened because the had a had a plug a voice in it that kept it shut.

And the contractor and figured out the heating issue and got the heating unit back up and had put temporary installation with a flashing was missing and we happen to walk in just as that ice plugged had melted a little bit and they kicked in when it leaks a little.

Daniel R. Lee: And the contractor had figured out the heating issue and got the heating unit back up and had put temporary insulation where the flashing was missing. And we happened to walk in just as that ice plug had melted a little bit, and it kicked in. You know, when it leaks a little, the fire suppression system says, oh, the pressure is down in the sprinkler system, turn on the fire pump, which is like a thousand gallons a minute and puts out the fire.

The fire suppression system says Oh, the pressure is down in the sprinkler system turned on the fire pump, which is like a thousand gallons a minute, it's going to put out the fire and when it did that plug of ice went through a wall across our server room and embedded in a wall on the other side and the water came gushing.

Daniel R. Lee: And when it did, that plug of ice went through a wall across our server room and embedded itself in a wall on the other side, and the water came gushing out. And right at the edge of our casino, where we had spent, you know, $1,500 a foot on decor and everything. And I went running up to the second floor. Fortunately, I had the speed dial for the construction guys, and they'd all gone to bed, but the third one answered his phone. And I told him we had water, and he hung up and came running down, and he and I almost ran into each other on the second floor.

Out and right on the edge of our casino, where we had spent you know $500 a foot under core and everything and.

I went running up to the second floor, but Fortunately I had the speed for the construction guys and they'd all gone to bed, but the third one answered his phone.

And I told them, we got water and he hung up and came running down and he and I am as Gran N. Each other in the second floor I'm looking for where the water is coming from he knew where to turn off the fire pump and they opened this closet and Theres a thing that looked like a real lot of a submarine and he turned off the water to the property.

Daniel R. Lee: I'm looking for where the water's coming from. He knew where to turn off the fire pump, and he opened this closet, and there was a thing that looked like a wheel out of a submarine, and he turned off the water to the property. And then we had everybody from Bronco Billies and everything there with towels and shop vacs and everything else soaking up all the water so it wouldn't get to the casino floor. The water sailed over our servers but didn't actually damage any of them. And the next morning, we had the pipe repaired, and the state fire marshal, who we were trying to get his permission from, kind of shrugged and said, "It's Colorado; pipes freeze all the time. That really wasn't an issue for him."

And then we had everybody Bronco, Billy's and everything there with towels and shop, Vacs and everything else soaking up all the water. So it wouldn't get to the casino floor for the water sale the over our servers, but didn't actually damage any of them and.

And the next morning, we had the pipe repaired and the state fire Marshal we were trying to get his permission kind of shrugged and said, it's Colorado pipes freeze all the time, there really wasn't an issue for them and we open the next day at noon and.

I will tell you the midnight the night before we were very close to having a river of water going right through the middle of the casino.

So every opening has it surprised him hopefully that's the worst surprised we're going to have at this one.

Daniel R. Lee: And we opened the next day at noon. And I will tell you, at midnight the night before, we were very close to having a river of water going right through the middle of the casino. So every opening has its surprise, and hopefully, that's the worst surprise we're going to have at this one.

But now you know why your visit was a little affected.

Ah, Yes look for look forward to the next one maybe a quicker one Louis just on west flip to negative EBITDA in the quarter I guess, how much was that from the last week in the quarter with the opening of Xiaomi versus Preopening versus.

Lewis A. Fanger: But now you know why your visit was a little affected. Yes, I look forward to the next one. Maybe a quicker one, Lewis, just on the west flip to negative EBITDA in the quarter. I guess how much was that from the last week of the quarter with the opening of Chaminee versus pre-opening versus maybe performance from the two smaller properties in Nevada? Well, we made money that last week from Chamonix, for what it's worth. You saw the casino; it was a pretty packed casino. But really, that was a carryover of the money that Bronco Billiards was losing for the rest of the quarter. We only had Chamonix for, what, four days in the fourth quarter?

Maybe performance from the two smaller properties in Nevada.

Yeah, well, we we made money that last week from Chamonix for what it's worth is you saw the casino is a pretty packed casino.

Really that was a carryover of the money that Bronco Billy's was losing for the rest of the quarter. We only we only had chamonix for what four days in the fourth quarter.

Great. Thanks, guys. Good luck.

Yes.

Okay.

Our next question is from Ricardo Chinchilla with Deutsche Bank. Please proceed.

Hey, guys. Thank you so much for taking my question.

Wondering if you could quickly comment on you know.

Ryan Ronald Sigdahl: Great. Thanks, guys. Good luck.

Ricardo Chinchilla: Yeah. Our next question is from Ricardo Chinchilla of Deutsche Bank. Please proceed.

The first quarter in terms of have you seen any impact from your competitors. He neither the only having the ability to operate 24, seven and to market to you know more effectively is there has been a change in dynamic you see more competition and how's the promotional environment there.

Daniel R. Lee: Hey guys, thank you so much for taking my question. I was wondering if you could quickly comment on the first quarter in terms of whether you have seen any impact from your competitors in Illinois having the ability to operate 24-7 and to market more effectively? Has there been a change in dynamics? Do you see more competition, and how's the promotional environment there? Well, you know, we're quite a ways away from the Bally's facility. Our main competitors are rivers and the Pottawatomie River to our north, and the slot machines at bars and liquor stores around us. And they've been 24 hours a day, 7 days a week for quite some time. And Bally's being not only an hour drive away, but on the other side of the river. Downtown Chicago to us, you have to drive past rivers, and you're halfway to us when you drive past rivers.

<unk>.

Well you know.

We're quite a ways away from the Dallas facility. Our main competitors are rivers and the Potawatomi to our north.

And the and the slot machines at borrowers and liquor stores around us.

They've been 24 hours a day seven days a week for quite some time.

And valleys being that on the an.

An hour drive away, but on the other side of rivers in other words to get from.

Downtown Chicago to US you have to drive past rivers, and you're halfway to us wouldn't drive best rivers and so what happens there is a.

It doesn't have much impact on us I mean, probably the biggest thing. We've seen is we lost some employees to bally's when they were opening and they've come back a number of them. So.

Daniel R. Lee: And so what happens there doesn't have much impact on us. I mean, probably the biggest thing we've seen is we lost some employees to valleys when they were opening, and they've come back, a number of them. So I wish them well, but they don't have much impact on us. Got it perfect.

I wish them, well, but they don't have much impact on us so.

Got it perfect you know when thinking about.

These fate opening of the of the property do you guys have like a target margin or like.

Daniel R. Lee: You know, when thinking about, you know, these phase openings of the property, do you guys have like a target margin or even a target generation for the year or how should we think about the, you know..., the cadence of the profitability of the Greenville Creek property? We have a target, obviously, for each of them, and Lewis kind of alluded to that, but when do we get there? It's a tougher thing to forecast, right, because you're trying to build up to it and everything. So, you know, as long as it's still trending in the right direction, and so, for example, at American Place, I thought we would be where, before we opened, I would have thought we would be where we are now several months ago.

Good.

Generation for the for the year or you know how should we think about the you know.

The U.

Cadence of deep profitability.

He got people Creek property.

We have a target obviously in each of them and Louis kind of alluded to that.

But when do we get there is a tougher thing to forecast right, because you're trying to build to it and everything so.

You know as long as there's still trending the right direction and so for example at American place I thought we would be where before we opened I would've thought we would be where we are now several months ago.

Daniel R. Lee: But we are where we are now, and it continues to get better every month, and that's great. And, you know, people forget that Bellagio did not make $500 million in its first year, or its second year, or its third year. But I think from about its fifth year to today, which is 25 years, it's made about $500 million a year.

But we are where we are now and it continues to get better every month and that's great and you know people forget that last year did not make $500 million in its first year or its second year or its third year, but I think from about its fifth year to today, which is 25 years, it's made about $500 million a year and these are.

Daniel R. Lee: And these are not short-term assets. So, and the same thing at Chamonix, I mean, we are trending in the right direction, but we're nowhere near the profitability that we expect to have as it matures.

Not short term asset so and the same thing at Chamonix I mean, we are trending the right direction, we're nowhere near the profitability that we expect to have as it matures.

Daniel R. Lee: You know, we don't even have, I mean, if you were there on a Wednesday, there are sometimes we have as many construction people wandering around the property as we have guests. You know, we're still trying to finish the construction. Now on the weekends, we have a lot of guests. And you know, as something that Lewis mentioned, which is pretty important, that facility, given where it is, it's a little bit like Las Vegas. You have to, Las Vegas fills on weekends, and you fill midweek with meetings and conventions. And that will be the same thing at Cripple Creek. It's the same thing in Blackhawk.

You know, we don't even have I mean, if you were there on a Wednesday.

There are sometimes we have as many construction people wandering around the property as we have gas you know we're still trying to finish the construction now on weekends, where you have a lot of guess.

And you know there's as is something that Louis mentioned, which is pretty important that facility given where it is a it's a little bit like Las Vegas, you have to.

Las Vegas pills on weekends, and you fill midweek with meetings and conventions and that would be the same thing at Cripple Creek. It's the same thing in black Hawk, but those meetings and conventions, it's hard to book them before you open them.

Daniel R. Lee: But those meetings and conventions, it's hard to book them before you open. You can promise that it's going to be a wonderful place and so on, but that meeting planner wants to see it, wants to feel it, wants to look at it. And so those things tend to be booked later. And so, at the moment, we're using our smaller meeting room space as a temporary restaurant. And we're really not supplanting any meetings that were going to be in there. But in the next few months, we have to get out of that meeting room space because there are meetings on the books. And there will be more meetings on the books. And as we fill in the midweek, we'll have more meetings. That's what you need in order to get to the numbers that we have, and that's a gradual process. Now, in the summer, filling midweek will be easy because it's nice up at night.

You can promise that it's going to be a wonderful place and so on but that meeting planner wants to see it wants to feel it wants to look at it and so those things tend to be booked later.

So at the moment, we're using our smaller meeting room space as a temporary restaurant.

And we're really not supplanting any meetings that were going to be in there but in the next few months, we have to get out of that meeting room space because of our meetings on the books and there will be more meetings on the books and as we fill in the midweek.

That that's what you need in order to get to the numbers that that we have and that's a gradual process now in the summer filling midweek will will be because its nice up in the mountains, but in the shoulder seasons and then the winter that meeting and convention business is very important and there and Theres a lot of it you know I I remember.

Being at Ameritrade before we started construction I would go up to Black Hawk and look around because were pretty similar to him aerostar, our monarch, which are both very successful and there was a meeting at Amira start and it was quite busy and I was trying to figure out who is this meeting so I went to their meeting it was the call.

Daniel R. Lee: But in the shoulder seasons and in the winter, the meeting and convention business is very important, and there's a lot of it. You know, I remember being at Ameristar, before we started construction, I would go up to Blackhawk and look around because we're pretty similar to Ameristar or Monarch, which are both very successful. And there was a meeting at Ameristar, and it was quite busy, and I was trying to figure out who was in this meeting. So I went to their meeting. It was the first. Colorado Association of Court Stenographers, And I thought, huh, there are enough court stenographers in the state of Colorado to keep Ameristar pretty busy for three or four days.

Laredo Association of courts to Naga first.

Uh Huh, there's enough court's denial prefers in the state of Colorado to keep <unk> pretty busy for three or four days and it just gives you an idea of the types of meetings that are out. There that are you may not think about but yes court's denial prefers haven't annual convention and maybe one of these days, we'll get them to Cripple Creek.

So.

Yeah, and I don't know if it's helpful to give you a little bit of a winter color. You know January was certainly a challenging month systemwide with snow everywhere Crazy levels. This now I'm sure you had it there in New York, where you were too.

Daniel R. Lee: And it just gives you an idea of the types of meetings that are out there that you may not think about. But yes, court stenographers have an annual convention. And maybe one of these days, we'll get them to Cripple Creek. Yeah, and I don't know if it's helpful to give you a little bit of winter color.

So we weren't immune to that over in Cripple Creek.

And so don't expect us to have made significant amount of cash in the month of January but as we kind of move out of the winter and into the summer the script flips pretty meaningfully as snow stays away the flip the script script flips pretty easily as well I can't talk today.

Lewis A. Fanger: You know, January was certainly a challenging month system-wide with snow everywhere and crazy levels of snow. I'm sure you had it there in New York where you were, too, and so we weren't immune to that over in Cripple Creek, and so don't expect us to have made a significant amount of cash in the month of January, but as we kind of move out of the winter and into the summer, the script flips pretty meaningfully. As snow stays away, the script flips pretty easily, as well. I can't talk today, but... Well, at the moment, you know, if you've seen the news, Tahoe has like 10 feet of snow, and so all the roads going in and out of Incline Village have been closed. I don't know if they're open right now, but they were closed this weekend.

At the moment you know if you've seen the news Tahoe has like 10 feet of snow and so all the roads going in and out.

One villager.

Had been closed I don't have to open right now, but they were closed this weekend.

On the other hand, the casino still open as much people hired who couldnt get out so we did a little bit of business, but.

I hope that I'll always has whether you just don't know what the weather is but it always says weather.

But February in general shaped up to be really good month and we.

I don't have the final numbers, yet, but we know it's going to be pretty good.

I appreciate all the color that was very helpful.

Youre welcome. Thank you.

Our next question is from Chad Beynon with Macquarie.

Macquarie. Please proceed.

Afternoon, guys. Thanks for taking my question maybe.

Maybe first just kind of thinking about Capex. Louis you talked about the the permanent.

Project, Capex being being pushed well into into 'twenty six 'twenty seven how should we think about just kind of overall capex for 'twenty four 'twenty five either from a from a maintenance standpoint paying the rest of the bills on show many kind of what's left here in the first half just trying to bridge that free cash flow. Thanks.

Lewis A. Fanger: On the other hand, our casino's still open, and there were a bunch of people at the Hyatt who couldn't get out, so we did a little bit of business, but... Tahoe always has weather; you just don't know what the weather is, but it always has weather. But February, in general, shaped up to be a really good month. We don't have the final numbers yet, but we know it's going to be. I appreciate all the callers. That was very helpful. You're welcome.

Yes, well also so xiaomi just think of of the restricted cash account largely taken care of that we had about $38 million left in that restricted cash account at the end of the year.

Chad C. Beynon: Thank you. Our next question is from Chad Beynon with Macquarie. Please proceed. Afternoon, guys.

Lewis A. Fanger: Thanks for taking my question. Maybe first, just kind of thinking about CapEx, Lewis. You talked about the permanent project CapEx being pushed well into 26 and 27. How should we think about just kind of overall CapEx for 24 and 25, either from a maintenance standpoint, you know, paying the rest of the bills on Chamonix, kind of what's left here in the first half, just trying to bridge that free cash flow? Thanks.

I think in real time.

Literally as of today I've got $20 million sitting in that account now so.

Food for thought there so we'll work through that balance before the end of the second quarter maintenance Capex historically has been on the lighter side. So we've been trending closer to 3 million I tell people generally $3 million to $5 million a year for maintenance Capex, maybe that creeps up slightly as we buy things like more slot machines, but the the.

Lewis A. Fanger: Yes, well, Shawmini, just think of the restricted cash account largely taking care of that. We had about $38 million left in that restricted cash account at the end of the year. I think in real time, literally as of today, I've got $20 million sitting in that account now.

The nice thing is while we have some newer properties. They are new and so there isn't a lot of maintenance capex outside of things like slot machines.

So it's.

It's not going to be a it's not going to be a crazy year.

You know as you go into kind of end of 'twenty four and into 'twenty five.

Lewis A. Fanger: So, food for thought there. So we'll work through that balance before the end of the second quarter. Maintenance CapEx historically has been on the lighter side. So we've been trending close to $3 million. I generally tell people $3 to $5 million a year for maintenance CapEx.

And we start generating some pretty meaningful cash flow, we'll start looking at things like.

Completing the construction quality blueprints for American place and things like that maybe even doing some site work, but that work is is very very small in terms of cost I mean, it might be 10 or 15 out of the 325 yeah.

Lewis A. Fanger: Maybe that creeps up slightly as we buy things like more slot machines. But the nice thing is, while we have some newer properties, they are new. And so there isn't a lot of Maintenance CapEx outside of things like slot machines. So it's not going to be a crazy year. As you go into the end of 2024 and the end of 2025, and we start generating some pretty meaningful cash flow, we'll start looking at things like completing the construction quality blueprints for American Place and things like that, maybe even doing some site work. But that work is very, very small in terms of cost.

Uh huh.

So.

Perfect. Thank you and then as we think about kind of the completion of American place permanent.

Any updated view in terms of that 325 thats left to spend.

What type of return we should get on that you know will the property significantly change in terms of who's in the property how much it will cost to run the property.

How are you thinking about that kind of medium term, what that can mean and that deep population market.

Lewis A. Fanger: Yeah, I mean, it might be $10 or $15 out of the $325. Yeah. Perfect. Thank you. And then, as we think about kind of the completion of American Place Permanent, any updated view in terms of that $325,000 that's left to spend? What type of return should we get on that?

Yeah, it's kind of a little bit of a complicated algorithm, because where we're not allowed to operate the temporary indefinitely right. So so.

How do you how do you really look at it right but.

But the the temporary is making what it's making an a and a tent sprung structure and during the day it looks like where the department of motor vehicles store Salt I mean, it really is pretty unimpressive at night, we project images on it too. So it's not just a black hole, but it doesn't have the <unk>.

Daniel R. Lee: You know, will the property significantly change in terms of who's in the property, how much it'll cost to run the property? How are you thinking about that kind of medium-term, and what that can mean in that deep population market? Yeah, it's kind of a little bit of a complicated algorithm because we're not allowed to operate the temporary indefinitely, right? So, you know, we're not going to be able to. How do you really look at it, right? But the temporary structure is making what it's making in a tent, a sprunk structure. And during the day, it looks like where the Department of Motor Vehicles stores salt. I mean, it is really pretty unimpressive.

<unk> appeal that you drive by and say well look at that.

Once you walk in it's it's a much nicer than you expect from the outside but getting people to walk in the doors, a little bit of a challenge. So the the the permanent we'll have much better curb appeal and be even nicer on the inside.

It'll be somewhat bigger.

And you know you start looking at.

Yeah.

I mean, I remember rivers is making.

300 million of your EBITDA T. We figured and I think the Potawatomi is about $200 million a year sounds right right and you know we're trying to get a 100 and if you look at the demographics that should be doable with the permanent facility, it's not doable with the temporary facility a temporary.

Daniel R. Lee: At night, we project images on it so it's not just a black hole. But it doesn't have the curb appeal that you drive by and say, well, look at that. Once you walk in, it's much nicer than you expect from the outside. But getting people to walk in the door is a little bit of a challenge. So the permanent will have much better curb appeal and be even nicer on the inside. It'll be somewhat bigger. And you start looking at... River, I mean, I remember Rivers is making.

Facility may be able to achieve half of that so if you say well, there's an incremental $50 million for $325 million investment.

That's a that's an okay return now that the we've invested 175, so far but a good chunk of that is stuff that will go into the permanent for example, there's 20 odd million dollars of slot machines that we will move next door. There's we had put in storm sewers and <unk>.

Daniel R. Lee: 300 million a year EBDIT, we figured, and I think the Potawatomi are about 200 million a year. That sounds right, doesn't it?

Surface parking lots in a fence around the place that is all part of the permanent and then our recruiting and training our workforce.

Daniel R. Lee: And, you know, we're trying to get to 100. And if you look at the demographics, that should be doable with a permanent facility. It's not doable with a temporary facility.

Which is tens of millions of dollars of Preopening expenses, we now have a workforce that can move next door very easily so.

Daniel R. Lee: A temporary facility may be able to achieve half of that. So if you say, well, there's an incremental 50 million for the $325 million investment, that's an okay return. Now we've invested $175 so far, but a good chunk of that is stuff that will go into the permanent. You know, for example, there's 20 odd million dollars of slot machines that we will move next door. There We had to put in storm sewers and surface parking lots and a fence around the place that is all part of the permanent.

So three years or four years of marketing at a place right. It's there are a lot of that sort of stuff. So there's a lot of ways to look at it you can look at it as is.

The temporary what it earns if you say well maybe of the 175. We've spent so far maybe 100 is the temporary and 75 is stuff that's really for the permanent I'm, making these numbers up now.

And so.

The temporary will pay for itself and then produce cash towards the permanent.

And so the net cost of the permanent is not really $500 million you end up.

Building the permanent for 400 million net of what you did in the temporary and and then you make a $109 a year.

Daniel R. Lee: And then recruiting and training a workforce, which is tens of millions of dollars of pre-opening expenses. We now have a workforce that can move next door very easily. So three years or four years of marketing the place, right? It's a lot of that sort of stuff.

A lot of different ways to analyze it it's kind of a complicated algorithm, but just about any way you analyze it.

You've got a pretty good return, which is what happens if you have the closest casino to 1 million people.

Daniel R. Lee: So there's a lot of ways to look at it. You can look at it as, You know, the temporary, what it earns, you know, if you say, well, maybe of the 175 we've spent so far, maybe 100 is the temporary, and 75 is stuff that's really for the permanent. I'm making these numbers up now. And so the temporary will pay for itself and then produce cash towards the permanent. And so the net cost of the permanent is not really 500 million dollars. You end up building the permanent for 400 million net of what you did in the temporary, and then you make 100 million a year. There are a lot of different ways to analyze it.

I go to Durango station, and I kind of drilled because frankly, they did a very nice job. There in fact, there's some stuff. They did there that that we're going to kind of take note of when were.

Complete the designs of the permanent American place.

They are probably the closest casino to three or 400000 people that slice of Las Vegas, it's on the southwest side of town and.

And you look at how many people they have in the place and part of that is in Las Vegas, we're very accustomed to thinking well, we're going out to dinner, let's go to Red Rock station, let's go to Durango station and that isn't here yet people, we don't get a lot of people who come in to have dinner at our place and then they'll gamba before or after and so.

Daniel R. Lee: It's kind of a complicated algorithm, but just about any way you analyze it, you get a pretty good return, which is what happens if you have the closest casino to 1 million people. You know, I go to Durango Station, and I kind of drool because, frankly, they did a very nice job there. And in fact, there's some stuff they did there that we're going to kind of take note of when we complete the designs of the Permanent American Place. They are probably the closest casino to 300,000 or 400,000 people, that slice of Las Vegas that's on the southwest side of town.

There is a learning process that will come on but the demographics of what we have here is significantly better than what they have at Durango station.

Now, we're not we're not going to spend the type of money, where we're not going to be as big as they are I think we can be the same quality that they are but they they spent $750 million, we're not we're going to spend about half that.

And but we can be the same quality just not as big and we've designed it in a way that it can be expanded later quite easily so.

It's funny, sometimes Chad because when you think about where we are were located in one of the wealthiest counties in the entire country.

And when I look at our gaming database, sometimes we have customers in there that that have already gambled.

Daniel R. Lee: And you'll look at how many people they have in the place. And part of that is, in Las Vegas, we're very accustomed to thinking, well, we're going out to dinner. Let's go to Red Rock Station.

Spent $5 six figures and our casino and I scratch my head, sometimes and I say wow. They they despite the tense look on the outside they have come inside and then saying Oh My gosh. This is a great place on the inside the people are unbelievably kind of the service is great and but but the thing.

Daniel R. Lee: Let's go to Durango Station. And that isn't here yet. We don't get a lot of people who come in to have dinner at our place, and then they'll gamble before or after.

Daniel R. Lee: And so there's a learning process that'll come along. But the demographics of what we have here are significantly better than what they have at Durango Station. Now, we're not going to spend the type of money. We're not going to be as big as they are.

Is there a lot of other people in this very wealthy county that will never get past. The fact that that is a 10th on the outside and where the permanent will make.

Daniel R. Lee: I think we could be the same quality as they are, but they spent $750 million. We're going to spend about half that. But we can be the same quality, just not as big.

A lot more sense is that that building in itself will be a draw for the first time for a lot of people.

Thanks, guys I appreciate it.

Daniel R. Lee: And we've designed it in a way that it can be expanded later quite easily. You know, it's funny sometimes, Chad, because when you think about where we are, we're located in one of the wealthiest counties in the entire country. And when I look at our gaming database sometimes, we have customers in there that have already gambled, you know, spent five, six figures in our casino. And I scratch my head sometimes, and I say, wow, despite the tent look on the outside, they have come inside and then seen, oh my gosh, this is a great place on the inside. The people are unbelievably kind.

I would I would tell you rivers is a great location, but it's not great curb appeal, yeah drive by they have some back lit.

Glue glass, it's a we will have better curb appeal then.

<unk>.

They have a great location.

Our next question is from John Mccaffery with C. B R. E Securities. Please proceed.

Good afternoon, Dan and good afternoon Lewis.

Just wanted to revisit an earlier question, we've been getting a lot of questions about the temporary in the quarter I think Louis maybe earlier, you've talked about elevated marketing if I heard correctly about a million two or so in.

Lewis A. Fanger: The service is great, but the thing is, there are a lot of other people in this very wealthy county that will never get past the fact that that it is a tent on the outside. And where the permanent will make a lot more sense is that that building, in itself, will be a draw for the first time for a lot of people. Thanks guys. I appreciate it. Yeah, I would tell you Rivers is a great location, but it's not a great carpet peel. Yeah, when you drive by, they have some backlit Blue Glass.

In the quarter, but I think even adding that back the margin.

Was it stepped down sequentially than we would've expected. So I was wondering if there's any other costs in the <unk> in waukegan, either temporary or permanent structure.

Structurally that we should think about and then the follow up I'll just I'll just tag into cancer all at once.

Daniel R. Lee: We will have a better curb repeal than rivers. They have a great location. Our next question is from John McCree with CBRE Security. Good afternoon.

Marketing obviously your decision that you guys made.

But is there more of those decisions to be made in 2024, I guess bigger question, how do we how do we think about the margin.

John G. DeCree: Dan, good afternoon. Just wanted to revisit an earlier question; we've been getting a lot of questions about the temporary in the quarter. I think Lewis, maybe earlier you've talked about elevated marketing, if I heard correctly, about a million two or so in the quarter. But I think even adding that back, the margin was a step down sequentially than we would have expected. So I was wondering if there are any other costs in the 4Q in Waukegan, either temporary or permanent, structurally, that we should think about. And then to follow up, I'll just tag in so you can answer all at once.

Going forward from here or the cost structures.

<unk> marketing normalize next year or might you still think about kind of picking some spots, where you see opportunity to grow the database or get some new customers in the door.

Yeah, well you had a couple of things going on at the at the temporary here. We you you did have about $1 million less in gaming revenue. So.

The reverse flow through I guess.

Dings, Johnny on the other way right, so and that really was a function more of just some some a little bit of a winter seasonality versus the third quarter.

Lewis A. Fanger: Marketing, obviously, a decision that you guys made, but are there more of those decisions to be made in 2024? I guess a bigger question: how do we think about the margin going forward from here or the cost structures? Kind of see marketing normalized next year, or might you still think about kind of picking some spots where you see opportunity to grow the database or get some new customers in the door? Yeah, well, you had a couple things going on at the temporary location here. You did have about a million less in gaming revenue. So, you know, the reverse flow through, I guess, it dings you on the other way, right?

We had some actually I'm looking at Adam as I say this we actually had some catch up accruals that benefited us in the third quarter as well so it's not quite an apples on apples to apples between <unk> and <unk>.

So we're a little bit of color there.

Great.

And seasonally the fourth quarters are weakest quarter in most markets. So.

So.

Okay.

And sorry did you have a second part to that I know.

It was related to.

Cost structure there in 2024, you highlighted specifically the.

Lewis A. Fanger: And that really was a function more of just a little bit of winter seasonality versus the third quarter. We had some, I'm looking at Adam as I say this, we actually had some catch-up accruals that benefited us in the third quarter as well. So, it's not quite an apples-to-apples comparison between 3Q and 4Q. So, a little bit of color there.

The elevated marketing, which you had talked about as you know that in <unk> and I think even <unk> is as well that you'd be doing that but should we expect.

Some more opportunistic kind of marketing dollars like that in 2024 or or does the marketing budgets start to normalize next year.

I should say.

As of right now when I look at Dan and Jeff as I say this it does feel like we're going to be a lot more in a normal mode not in an excessive mode. Here in 2024, I mean, there there are a few things you know look it's challenging when you opened any new casino because you have to go out and do general marketing period end.

Lewis A. Fanger: Great. Thank you. That's very helpful.

Lewis A. Fanger: And seasonally, the fourth quarter is our weakest quarter in most markets. And sorry, did you have a second part to that? It was related to the cost structure there in 2024. You highlighted specifically the elevated marketing, which you had talked about, as you noted, in 3Q and I think even 2Q as well, that you'd be doing that. But should we expect some more opportunistic marketing dollars like that in 2024? Or does the marketing budget start to normalize next year? As of right now, when I look at Dan and Jeff as I say this, it does feel like we're going to be a lot more in a normal mode, not in an excessive mode here in 2024. I mean, there are a few things. Look, it's challenging when you open any new casino because you have to go out and do general marketing, period. And it was doubly difficult in this case because we had zero people in the database the day that we opened.

And it was doubly difficult in this case, because we had zero people in the database. The data we opened today, we're closing in on 65000 people in the database and so we can be a lot more targeted to those 65000 people, but on top of that.

Don't have to go out those general messages anymore. We can also start to look at honing in on ZIP codes and everything else. So it becomes a lot more of a science today than what we would've had a year ago.

Got it thanks, Thanks, and congratulation guys on getting Chamonix opening in December.

Yeah, you know, it's kind of funny everybody's trying to figure out what the earnings are like this quarter next quarter and and and so are we to be honest, we want it to be trending positively to get to that $50 million in each place in $30 million from the traditional places and whether we get.

They're in three quarters or six quarters or eight quarters.

Lewis A. Fanger: Today, we're closing in on 65,000 people in the database. And so we can be a lot more targeted to those 65,000 people. But on top of that, we don't have to send out those general messages anymore. We can also start to look at honing in on zip codes and everything else. So it has become a lot more of a science today than what we would have had a year ago.

Isn't as important as the fact that we get there and so we're focused on it.

But we don't sweat it.

I, sometimes think that the analyst community tends to be very much like what what's this quarter's earnings and it's like well, let me try to get the steakhouse opening I'll, let you know right because you do try to try to fix those things.

Lewis A. Fanger: Got it. Thanks, Lewis, and congratulations, guys, on getting Chamonix open in December. Yeah, you know, it's kind of funny; everybody's trying to figure out what the earnings are like this quarter, next quarter. And, and, and so are we. To be honest, you know, we want it to be trending positively to get to that 50 million in each place and 30 million from the traditional places, and whether we get there in three quarters or six quarters or eight quarters isn't as important as the fact that we get I sometimes think that the analyst community tends to be very much like, "What's this quarter's earnings?" And it's like, well, let me try to get the steakhouse open, I'll let you know, right? Because you do try to fix those things.

But I mean.

Recognize we just finished a year, where we had $48 million of EBITDA at its best year in the history of the company.

We had interest expense cash interest expense before capitalized stuff up about $35 million. So we comfortably paid our interest expense.

Without having much of anything from Chamonix. It was only open the last four days of the year and the property here in Illinois was ramping up but it didn't didn't do a whole lot of cash flow in the first half of the year and so.

We constantly get this well aren't you both to do some financing to do American places like no actually we're not not even close and the bond market is gradually getting better, but we don't have a need for the money now.

And that's at least a year away and the need that we have a year away is a lot less than people think.

Daniel R. Lee: But, you know, I mean, we just finished a year where we had 48 million in EBDIT. It's the best year in the history of the company. We had interest expense cash interest expense before capitalized stuff of about 35 million. So we comfortably paid our interest expense without having much of anything from Chamonix.

Because we were producing really.

Really good free cash flow and and that's just going to augment itself throughout the year I mean, how many stacks do you know that are trading at between five and three times free cash flow and that's approximately where stockist and.

Daniel R. Lee: It was only open the last four days of the year, and the property here in Illinois was ramping up. It didn't make a whole lot of cash flow in the first half of the year. And so, you know, we constantly get this, well, aren't you about to do some financing to buy American places? No, actually, we're not, not even close.

Which is a little bit nuts, and I think people have.

Just.

They're looking at the fact that we have to build the permanent American place like some big number and it actually isn't and we've already spent quite a bit of the money needed to build the permanent America place. So that's that's where we are.

One more question yes.

We have time for one last one.

Our final question is from David Hargreaves with Barclays. Please proceed.

Hmm.

Daniel R. Lee: And the bond market's gradually getting better, but we don't have a need for the money now, and it's at least a year away. And the need that we have a year away is a lot less than people think because we're producing, you know, really good free cash flow. And that's just going to augment itself throughout the year. I mean, how many stocks do you know that are trading at, you know, between five and three times free cash flow? And that's approximately where our stock is, which is a little bit nuts. And I think people are just...

Hello.

I understand if I heard correctly listening to the sorry I'm at the airport. So if I Miss some stuff in the press release I apologize I think you opened the steakhouse.

In February at what Keegan and I'm interested in what the impact is there and then just kicking liquidity from another angle.

I'm curious as to.

How much liquidity you expect to have left over and what your plans might be for it.

Well the.

That's easy I mean, we're gonna buildup, some cashier and then.

Daniel R. Lee: They're looking at the fact that we have to build the Permanent American Place like it's some big number, and it actually isn't, and we've already spent quite a bit of the money needed to build the Permanent American Place. So, anyway, that's where we are. One more question. Yeah. Probably time for one last question. Our final question is from David Hargreades with Barkley.

As to the firm in American place that would build a two to three years from now.

So that's your second question.

We're not we're not out in the market for dividends or or quite.

Quite frankly, our indenture doesn't allow for a meaningful stock buybacks or anything like that so it really is for us.

Taking that cash preserving it in and then investing in in the Permian American place for now, yes, I mean, we have I think Lou.

David Hargreaves: Hi, hello, so I understand if I heard correctly listening to the, sorry, I'm at the airport so if I missed some stuff in the press release, I apologize. I think you opened the steakhouse in February in Waukegan. And I'm interested in what the impact is there.

Louis mentioned, we have I think 23 million drawn under our credit facility will probably pay that down this year 27 27.

What was the first question.

The first thing is about other steakhouse yeah.

Daniel R. Lee: And then, just taking liquidity from another angle, I'm curious as to how much liquidity you expect to have left over and what your plans might be. Well, that's easy. I mean, we're going to build up some cash here and then take it to the permanent American place that we built two to three years ago. So that's your second question. Yeah, we're not in the market for dividends, or, quite frankly, our indenture doesn't allow for meaningful stock buybacks or anything like that.

I don't I don't know look I, what you'd probably Miss David was was we had a February is going to be our best month ever in the history of this property.

After December having a month of $8 2 million and we think February is gonna be north of 9 million not think we know it's going to be north of $9 million.

Published gaming revenue so.

So no. It was a very very good month I was here I got here on Saturday afternoon, and walk the casino and had dinner with with our G M. Jeff at the Steakhouse and the first thing that I said to them was Jeff there is a completely different energy in this building now good for you. It is a it is a very very dynamic floor, especially on the weekend.

Lewis A. Fanger: So it really is for us to take that cash, preserve it, and then invest it in the permanent American place for now. Yeah, I mean we have, I think Lewis mentioned, we have I think 23 million drawn under a credit facility. We'll probably pay that down this year. 27, 27.

Yeah.

What's the last part of what we needed to get out.

Okay.

Lewis A. Fanger: What was the first question? Oh, and the first one was about the steakhouse. Yeah, I don't know.

You know it's hard to say did you know can you say, we have the best month of the property's history, because the Steakhouse result.

Half of the month.

Lewis A. Fanger: Look, what you probably missed, David, was we had... February is going to be our best month ever in the history of this property. That's after December having a month of 8.2 million. We think February is going to be north of 9 million. Not think, we know. It's going to be north of 9 million in published gaming revenue.

It was a contributor but I think we probably would've had the best month anyway yeah.

But it is an important addition for a good a good high end customers.

If needed a minimum budget.

That's right you get how many people through the building today.

Through the building 2000, a day yeah, we got 2000 people a day at the front door and were doing 120 covers a night.

Lewis A. Fanger: So no, it was a very, very good month. I was here, I got here on Saturday afternoon and walked the casino and had dinner with our GM, Jeff, at the steakhouse. And the first thing that I said to him was, Jeff, there is a completely different energy in this building now. Good for you. It is a very, very dynamic floor, especially on the weekends.

It's still a relatively small portion of the people.

Coming in the front door eaten the steakhouse, but the people, who do where the more important customers.

And if I recall February.

The ice festival in Cripple Creek is a pretty important months how's that going.

It was a very good week for us in Cripple Creek without ice first yes.

Okay, great. Thank you so much and congrats hey, congrats.

Lewis A. Fanger: Yeah, and that was the last part of what we needed to get over now. Thank you all. Now, you know, it's hard to say that, you know, can you say we had the best month in the property's history because the steakhouse was open for half the month? Well, it was a contributor, but I think we probably would have had the best month anyway.

Congrats on your new job too David.

Thank you Doug.

Hey, Ken.

A question and answer session I will now turn the call over to Dan Lee for closing remarks.

Just going to say, we're in the process of tripling the size of the company and we're making progress every quarter so well.

We will talk to you next quarter.

Daniel R. Lee: Yeah, but it is an important addition for a good, a good high-end customer, a much needed amenity. You get how many people through the building a day? Through the building, 2,000 people a day. Yeah, we get 2,000 people a day at the front door, and we're doing 120 covers a night. Yeah, so it's still relatively small.

You very much everybody. Thanks for your support.

Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

[music].

Daniel R. Lee: People coming in the front door eat in the steakhouse, but the people who do are the more important customers. Thank you. And, if I recall, February is the Ice Festival month in Cripple Creek. How's that going? It was a very good week for us in Cripple Creek with that ice fest.

Daniel R. Lee: Okay, great. Thank you so much, and congrats. Hey, congrats on your new job, too, David. Thank you, Bill. We have reached the end of our question and answer session. I will now turn the call over to Dan Lee for closing remarks. We're in the process of tripling the size of the company, and we're making progress every quarter. We'll talk to you next quarter.

Yes.

[music].

Daniel R. Lee: So thank you very much, everybody. Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. Full House Resorts Inc., www.FullHouseResorts.com, [inaudible]