Q1 2024 Full House Resorts Inc Earnings Call

Operator: Greetings and welcome to the Full House Resorts First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference call, please press star then zero on your telephone keypad.

Greetings and welcome to the full house resorts first quarter earnings call at.

At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference call. Please press Star then zero on your telephone keypad.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Lewis Fanger, CFO of Full House Resorts. Thank you. Please go ahead. Thank you, and good afternoon, everyone.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Mr. Louis Panga CFO of full house resorts. Thank you. Please go ahead.

Lewis A. Fanger: Thank you and good afternoon, everyone welcome to our first 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.

Lewis A. Fanger: Welcome to our first 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 these anticipated results or 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.

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 broadcasting this conference call at FullHouseResorts.com, where you can find today's earnings release as well as all of our SEC filings. With that said, there's a lot of good stuff to talk about from the quarter. The biggest of all is American Place in Waukegan. We had a really good first quarter there.

Could differ materially from these anticipated.

Lewis A. Fanger: From the anticipated results in these forward looking statements. Please see today's press release under the caption forward looking statements for the discussion of risks that may affect our results also we may make reference to non-GAAP measures such as adjusted EBITDA for a reconciliation of those measures. Please see our website as well as the various press releases that we issue.

And lastly, we're broadcasting this conference call. It full house resorts Dot Com, where you can find today's earnings release as well as all of our SEC filings.

Speaker Change: With that said, there's a lot of good stuff to talk about from the quarter are the biggest evolves American place in Waukegan, and we had a really good first quarter there.

Lewis A. Fanger: We've been setting record after record for monthly property gaming revenues recently. We hit our property record in December, we beat it in February, and we beat it again in March, and we don't think we're done growing yet. April gaming revenues were put out yesterday by the state of Illinois, and we rose 39% versus April of 2023. From an EBITDA point of view, we are now consistently generating about $3 million of EBITDA per month.

Speaker Change: We've been setting record after record for prep for a monthly property gaming revenues recently, we had a property record in December we beat it in February and we beat it again in March and we don't think we're done growing yet APRA.

Speaker Change: April gaming revenues were put out yesterday by the state of Illinois, and we rose 39% versus April of 2023 from an EBITDA point of view, we are now consistently generating about $3 million of EBITDA per month.

Lewis A. Fanger: We did roughly that in each of February, March, and again in April. That puts us on a current run rate of $36 million per year of EBITDA, which is about double the $18 million of EBITDA that we generated at American Place in 2023. That's a good prologue for what we expect to happen over at Chamonix since its opening parallels the opening of American Place in many ways. The most obvious is that, much like the early days of American Place, Chamonix isn't fully open yet.

Lewis A. Fanger: Did roughly that in each of February March and again in April that puts us on a current run rate of $36 million per year of EBITDA, which is about double the $18 million of EBITDA that we generated at American place during 2023.

Lewis A. Fanger: Oh, that's a good part of work for what we expect to happen over at Chamonix since its opening parallels the opening of American place in many ways. The most obvious is that much like the early days of American place, Germany isn't fully opened yet that's being opened in phases and during the first quarter, our full 300 Guestroom Ho.

Lewis A. Fanger: It's being opened in phases, and during the first quarter, our full 300-guest room hotel gradually came online and is fully open today. A couple of weeks ago, on April 19th, we opened our high-end steakhouse, 980 Prime.

Lewis A. Fanger: Ciao gradually came online and is fully open today.

Speaker Change: Couple of weeks ago on April 19th we opened our high end Steakhouse 980, Prime our goal was to create a restaurant that could draw people from all over Colorado and earlier early reviews have been very good. It's a very good experience. The service is very on point the food is delicious and just like the new steakhouses in American place was important.

Lewis A. Fanger: Our goal was to create a restaurant that could draw people from all over Colorado, and early reviews have been very good. It's a very good experience, the service is very on point, the food is delicious, and just like the new steakhouse at American Place was important for our best guests, the same will be very true at Chamonix. The next amenity to open will be the pool and spa, which we're expecting in the next few weeks.

Speaker Change: For our best guess, the same will be very true over at Chamonix.

Speaker Change: The next day money to open will be the pool and spa, which we're expecting in the next few weeks.

Lewis A. Fanger: Now, we did have some weather complications in the quarter. The rough winter weather that you've heard about on everyone else's earnings call certainly applies to us here. The weekends are our most important part of the week. Unfortunately, the winter snow kept falling on the weekends. In Colorado, we had three snow-affected weekends in January, three more in February, and two in March. There was a snowstorm in March that cut off electricity to the entire town of Cripple Creek for three days.

Speaker Change: Now we did have.

Speaker Change: Some weather complications in the quarter are the rough winter weather that you've heard about on everyone else's earnings call.

Speaker Change: Certainly applies to us here the weekends are our most important part of the week. Unfortunately, the winter snow kept falling on weekends in Colorado, We had three snow affected weekends in January three more in February and two in March there was a snow storm in March that cut off electricity to the entire town of Cripple Creek for three days.

Lewis A. Fanger: And so, with all of those affected weekends, it certainly was not a normal quarter, but it did allow us time to fix some of the opening kinks that we needed to work through. In terms of profitability at Chamonix, we're on the right track. We lost money in the early days when we carried a lot of excess costs, but that improved as the first quarter progressed. For the first quarter, our adjusted property EBITDA was a loss of about $400,000.

Speaker Change: And so with all of those affected weekends. It certainly was not a normal quarter, but it did allow us time to fix some of the opening kinks that we needed to work through.

Speaker Change: In terms of profitability at Chamonix, we're on the right track we've lost money in the early days when we carried a lot of excess cost that improved as the first quarter progressed for the first quarter. Our adjusted property EBITDA was a loss of about $400000. We have not closed the books yet for April but it looks like that should be a breakeven month.

Lewis A. Fanger: We have not closed the books yet for April, but it looks like that should be a break-even month. As we go into the summer, our amenities should be largely complete, we should have much better weather, and our targeted marketing plan should start to kick in. All of that should continue to propel Chamonix forward and result in a pretty meaningful, positive EBITDA contribution. Elsewhere in the portfolio, that same winter weather affected us.

Speaker Change: As we go into the summer our amenities should be largely complete we should have much better weather and our targeted marketing plan should start to kick in and all of that should continue to propel us how many forward and result in a pretty meaningful positive EBITDA contribution.

Speaker Change: Elsewhere in the portfolio that same winter weather affected us I'll keep it short on the rest, but if if you look at our core customer outside of those weather events. It feels like theres been stability in terms of their spend with us and perhaps a bright spot elsewhere I know in the past we've specifically.

Lewis A. Fanger: I'll keep it short on the rest, but if you look at our core customer outside of those weather events, it feels like there's been stability in terms of their spend with us. And perhaps a bright spot elsewhere. I know in the past we've specifically called out some costs like property insurance at Silver Slipper. That, over the last few years, has just grown outrageously. Some good news there; we just wrapped up our property insurance renewal, and those costs will actually go down by 19% starting on May 15th. That's about $900,000 in savings over the coming 12 months. That's my quick highlight. Stan, anything you want to add?

Speaker Change: I called out some costs like property insurance at silver slipper that over the last few years has just grown outrageously. Some good news there we just wrapped up our property insurance renewal and those costs will actually go down by 19% starting on May 15th that's about $900000 in savings over the coming 12 months.

Speaker Change: That's my quick colleagues, Dan anything you want add.

Speaker Change: Yeah.

Stan: I'll address American Place first. Obviously, everything is going in the right direction. I don't know that we can keep this pace going for the rest of the year, up 40% of revenues, but we've had two months in a row now up 40%, and I think we will be up strongly as the year goes on. Obviously, the comparisons get more difficult as the year goes on, but I think we'll be up strongly, and we're also running margins above 30%, which is obviously a good thing. And just to put it in perspective, we're making almost the same revenue as the downtown Chicago property. It opened in September, didn't have any impact on us at all, and that's still the case.

Dan: Address American place first obviously, it's everything's going in the right direction I don't know that we can keep the pace going for the rest of the year up 40% of revenues, but had two months in a row now of 40% and I think we will be up strongly as the year goes on obviously the comparisons get more difficult to see.

Dan: Where it goes out, but I think we'll be up strongly and.

Dan: And we're also running margins above 30%.

Stan: Which is Oh, obviously, a good thing.

Speaker Change: And.

Speaker Change: Just to put it in perspective, we're doing almost the same revenues as the downtown Chicago property.

Speaker Change: It opened in September didn't have any impact on us at all and that's still the case.

Stan: And our gaming tax rate is a full 10 points lower than theirs, and so we're in pretty good shape. And the requirement to build the permanent casino, we have until, we can operate the temporary casino until August of 2027, which is a special bill the legislature approved for us. I assume Valleys would probably have to seek something similar because they have a pretty short timeline.

Stan: And our gaming tax rate is a full 10 points lower than theirs.

Speaker Change: So uh huh, that's what we're in pretty good shape and the requirement to build the permanent we have until we can operate the temporary until August of 2027, which is a a special build legislature approved for us.

Speaker Change: Bally's would probably have to seek something similar because.

Stan: Anyway, our commitment going forward is about $325 million to build the permanent, and we're designing the permanent to fit that. A lot of what we invested in the temporary will be used for the permanent, like the construction of the parking lots and storm sewers and so on. Anyway, we're very happy with American Place. We always knew we were the closest casino to a million people and that, eventually, they would find their way into our tent.

Speaker Change: They have a pretty short timeline anyway.

Speaker Change: Yeah.

Stan: Our commitment going forward is about $325 million to build the permanent and we're designing the permanent to fit that number.

Speaker Change: A lot of what we invested in the temporary yeah. It will be used for the permanent like the construction of the parking lots and that structure works and so on so.

Speaker Change: Anyway. So we're very happy with American place, we always knew we were the closest casino to a million people and then eventually they would find their way into our tent. It's it's not very impressive from the outside but once you go in and it's it's arguably one of the nicest casinos in the state. So so I think they were in good shape.

Stan: It's not very impressive from the outside, but once you go in, it's arguably one of the nicest casinos in the state, so I think we're in good shape there. Lewis mentioned that at Chamonix we're opening in stages, and they said the hotel gradually came online during the first quarter. Well, that's part of it. We now have all the guest rooms done.

Speaker Change: Sir Louis mentioned that it's Chamonix, we're opening in stages and then he said that the hotel gradually came online during the first quarter well. That's just that's part of it we now have all the Guestrooms done.

Stan: And, you know, at any given night, there might be a handful that are out of service trying to fix something, but in effect, we have all 300 rooms. But occupancy also builds gradually. And so we've been running pretty decent occupancy on weekends, but it drops off during the week, absent blizzards and stuff.

Speaker Change:

Speaker Change: And you know at any given night, there might be a handful that are out of service trying to fix something but but in effect, we have all 300 rooms.

Speaker Change: But the occupancy also builds gradually and so its been running a.

Speaker Change: Pretty decent occupancy on weekends, but it drops off during the week.

Stan: Well absent blizzards and stuff.

Stan: [laughter].

Stan: So, like most regional casinos, we're now preparing to roll out programs designed to help build the mid-week business. You know, like if you're staying with us two nights and a weekend, you can get a stay one more night on a Thursday or a Friday at a much improved rate or even free, and that sort of thing to try to build occupancy mid-week. That will take some time, but the seasonality helps. I mean, we open this in the deadest part of the year. We're now coming up on summer.

Stan: So like most regional casinos were now are preparing to rollout programs designed to help build to make mid week business. You know like if you're staying with US two nights on a weekend you can get stay one more night on a Thursday or Friday had a much improved rate or even free.

Speaker Change: And that sort of thing to try to build occupancy mid week that will take some time, but the.

Speaker Change: Seasonality helps I mean, we opened this and that that is part of the year. We're now coming up on summer Ah summers are beautiful up in the mountains of Colorado, and and so I think we will be able to fill our hotel. It's just about every night July and August and so we should be quite.

Stan: Summers are beautiful up in the mountains of Colorado, and so I think we will be able to fill our hotel just about every night in July and August, and so we should be quite profitable during the summer. And, you know, we're focused on getting meetings and groups in in the fall so that when the normal vacationers start to go away. We have a lot of very good meeting space to help fill the hotel during the slower season. The Silver Slipper and Rising Star were off a little bit; some of that was weather.

Stan: Quite profitable to it in the summer and you know we're focused on getting meetings groups. It in the fall so that when the normal.

Speaker Change: Vacation or start to go away Oh, we have a lot of very good meeting space to help fill the hotel during the slower season.

Stan: Hum.

Speaker Change: The silver slipper and rising star were off a little bit some of that was weather.

Stan: Fortunately, they're not as important. I mean, American Place earns more than everything else in the company combined these days, and eventually, Chamonix probably will as well. But that's not that we're overlooking it. We're also looking at programs at those places to get them back to where we want them to be. In Northern Nevada, we have a lease on the Grand Lodge Casino that expires at year-end.

Stan: And Oh, the unfortunately, there they're not as important I'm, an American place earns more than everything else in the company combined these days and eventually Chamonix, probably will as well.

Stan: But that's not that we're overlooking it. We're also looking at programs that those places to get them back.

Speaker Change: Back to where we want them to be.

Speaker Change: Northern Nevada, we have a lease on the Grand Lodge casino that expires at year end, we've had some indications from highest that they would like to extend it yet again, it's been extended several times. So we're trying to get that inked and and then we still have a small casino in fallon.

Stan: We've had some indications from Hyatt that they would like to extend it, yet again, it's been extended several times, so we're trying to get that inked, and then we still have the small casino in Fallon. So that's kind of where we are. We're still finishing.

Stan: Is there.

Stan: So that's kind of where we are we're still finishing.

Stan: So we've got a jewelry store, we've got one more kind of unique speakeasy bar to get done, and the spa will be open just before Memorial Day. We won't have all the treatment rooms, but we'll have enough treatment rooms that we can offer massages and the pool and the weight room and the locker rooms and all that's done. The salon is being put together as we speak so people can get a haircut and stuff.

Speaker Change: So we've got a jewelry store, we got one more cut of unique speakeasy bar to get done. Despite the open just before memorial day, we won't have all of the treatment rooms, but we will have enough treatment rooms that we can offer massages.

Speaker Change: And the pool and the wait for them in the locker room stalled at all that's done the Salon is being put together as we speak so just people get a haircut and stuff so I.

Stan: I guess that's it. I mean, we're at the point where, as a company, we will start, we are already producing positive cash flow, and I think that will build significantly as we go ahead. You take our interest expense, about $35 to $36 million a year. American Place alone should earn that. And everything else does in the mid-20s, plus Chamonix. Everything else, excluding Chamonix, does something in the mid-20s.

Stan: I guess, that's it I mean, we're at the point, where as a company will start where we are already producing positive cash flow and and I think that will build significantly as we go ahead and.

Speaker Change:

Stan: You know if you.

Speaker Change: You take our interest expense is about 35 36 million a year American place alone should earn that everything else does so in the mid twenties, plus chamonix everything else, excluding Chamonix does something in the mid Twenty's and then Chamonix will come on.

Stan: And then Chamonix will come on, and I will point out that it's not unusual. A lot of times, I find investors think you open the doors of a casino and it's an instant slam dunk profit generator, and that's really never the case. Even Bellagio, for the first quarter or two, was far less than what we expected, and then it kicked in, and it's been making 500 million a year for 20 odd years now. And the same with La Berge and Beaurevage and all these other regional casinos. And so, the good news is that Chamonix is beautiful.

Speaker Change: And I will point out that it's not unusual.

Speaker Change: That's it.

Speaker Change: A lot of times I find investors. Thank you opened the doors of a casino and its instant Slam dunk.

Speaker Change: Profit generator, and that's really never the case, even last year, the first quarter or two was.

Speaker Change: Far less than what we expected and then it kicked in and that's been making 509 a year for 20 odd years now in the sand with little bearish in Dore bars, and all this other regional casinos and so the good news is Germany is beautiful that's getting all sorts of great accolades even.

Stan: It's getting all sorts of great accolades. We hosted the Hotel Association of Colorado, which had the GMs and presidents of all the different top hotels from Vail and Aspen, and Denver and Colorado Springs all came to our place and had dinner at our new restaurant. And without saying names, the president of several of the prominent high-end hotels in the state came and told us that we thought we had the best restaurant in the state, even better than theirs.

Stan: We hosted the Hotel Association of Colorado, which had the GFS presidents of all the different top hotels for sale with Aspen.

Speaker Change: Denver, and Colorado Springs, all we're at our place and had dinner at our new restaurants.

Stan: And without St named President of several prominent high end hotels and the state came and told US that we felt we had that we had the best restaurant in the state even better than their own and and so we're very proud of our team for that and now we just need to fill it.

Stan: And so we're very proud of our team for that, and now we just need to fill it with people. And we will. Anyway, that's it. We're just trying to finish those things out, in the very early stages. Not very early, but we're early in the designs of the permanent facility in Waukegan. Frankly, we've been pretty focused on Chamonix. We have until August of 2027, as I mentioned. And that's not even a requirement to open the permanent account.

Stan: With people.

Speaker Change: And we will.

Speaker Change: Anyway, that's that's it that's Oh, we're just trying to finish those things out.

Stan: Very early stages on.

Speaker Change: But that's not very early but we're really in the designs of the permanent in Waukegan.

Speaker Change: Frankly, we've been pretty focused on Germany.

Speaker Change: We have until August of 2027 as I mentioned.

Speaker Change: And that's not even a requirement of two opened the permanent that's just the outside date at which we can operate the temporary and you really want don't want there to be a gap.

Stan: That's just the outside data which we can operate on the temporary site, and you really don't want there to be a gap. You want to be able to move customers and employees seamlessly to the new place. So that means we really have to start construction about two years ahead of that. So, in August of 2025, which means we have 15 to 18 months to raise the money before we start construction. But even that is not a requirement because the early stages of construction aren't a whole lot of money.

Speaker Change: So I have been able to move customers employees seamlessly to the new place so.

Speaker Change: That means we really have to start construction about two years ahead of that so August of 2025, which means we had 15 to 18 months.

Speaker Change: To raise the money before we start construction, but even that is not a requirement because the early stages of construction arent a whole lot of money and so there's probably six months of construction we could do.

Stan: And so there's probably six months of construction we could do just out of free cash flow. And so we have a couple of years to figure out the financing, and our bonds have come back. They're not quite back to par, but they're well off their bottom.

Stan: Just out of free cash flow and so we have a couple of years to figure out are the financing.

Speaker Change:

Speaker Change: Our bonds have come back are there not quite back to par, but there well off their bottom and and so our guess is that the right time, we go to the high yield market and refinance our debt Oh.

Operator: And so our guess is that at the right time, we will go to the high-yield market and refinance our debt. But it's not imminent, and let's get Colorado making good money, and then people will see that we're actually less levered than most casino companies. And at that point, we should be able to refinance the debt on favorable terms with the extra money to build American Place. So that's the plan. That's the plan. So on that, I'm happy to take any questions.

Speaker Change: But we but it's not imminent and let's say, let's get Colorado, making good money and then people will see that we're actually.

Speaker Change: Less levered than most casino companies and at that point, we should be able to refinance the debt on favorable terms with the extra money to build American place. So that's the that's the strategy. That's the plan so on that happy to take any questions.

Speaker Change: Okay.

Operator: Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker Change: Thank you.

Speaker Change: We will now be conducting a question and answer session. If you'd like to ask a question. Please press Star then one on your telephone keypad a.

Speaker Change: A confirmation tone will indicate your line is in the question queue you.

Speaker Change: You May press Star then Terry if he would like to hear maybe a question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star kids.

Operator: You may press star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Your first question comes from Ryan Sigdahl from Craig Helen. Please go ahead. Good afternoon, this is Will on behalf of Ryan. Thanks for taking our questions. First question here: how do you think you've shifted your share in the overall Cripple Creek market? Obviously, it's a pretty slow start to the season, given a lot of that snow on the weekends, but curious where you think it's at right now and where it could ideally be long term.

Speaker Change: Your first question comes from Ryan signal from Craig Hallum. Please go ahead.

Speaker Change: Alright.

Speaker Change: Good afternoon. This is will on for Ryan Thanks for taking our questions. Our first question here, how do you think you've shifted share in the overall Cripple Creek market, obviously, it's a pretty slow start to the season, giving given a lot of those a lot of that snow on the weekends, but curious where you think it's at right now and where you could idea.

Speaker Change: Be long term.

Stan: Well, I think long term we grow the market. And, you know, we get this a lot like, you know, they clearly we, we, we account for more than 100% of the increase in Cripple Creek has been showing increases. But that's not the whole picture. You have to almost look at all of Colorado, and when I look at where our pricing should be or our promotion should be, we look at what Ameristar and Monarch are doing up in Blackhawk because they're comparable to us in scale and quality. I think we're nicer, maybe not quite as big.

Speaker Change: Long term, we grow the market and Oh, yeah, and we get this a lot like Oh.

Speaker Change: Clearly, we we we account for more than a 100% of the increase in Cripple Creek has been showing increases.

Speaker Change: <unk>.

Speaker Change: But that's not the whole picture you have to almost look at all of Colorado, and when I look at where pricing should be or a promotion should be we look at what America <unk> and monarch are doing up in Blackhawk, because theyre comparable to us in scale and quality I think.

Stan: We have 300 guest rooms. They each have about 500, but we are nicer, and frankly, it's a more romantic environment. Black Hawk is, I think, legally a historical mining town, but if you go there, you see very few vestiges of it.

Speaker Change: We're nicer, maybe not quite as big we have 300 guest rooms, they each have about 500.

Speaker Change: But we are nice and frankly, it's a it's a more romantic environment I mean.

Speaker Change: Black Hawk is I think legally a historical mining town, but if you go there you see very few vestiges of it and Cripple Creek are it feels a little bit like colonial Williamsburg brick and so what I think we're at a better environment now distance wise.

Stan: And Cripple Creek feels a little bit like Colonial Williamsburg out of brick. And so I think we're a better environment. Now, distance-wise... The southern parts of the Denver MSA are about equal distance, so Centennial.

Speaker Change: The southern parts of the Denver MSA are about equal distance so centennial.

Stan: Castle Rock and so on, they can go to us as easily as they can go to Black Hawk. And so. You know, obviously, we're doing double the revenue. Well, last year's revenues weren't very high. We're doing double, and that's not even close to what we should be doing and will be doing.

Stan: Castle rock and so on they can go to us as easily as they can go to black Hawk.

Speaker Change: And.

Speaker Change: And so.

Speaker Change: <unk>.

Speaker Change: Yeah, obviously Uh huh.

Speaker Change: Doing a double the rate of them last.

Stan: Last year's revenues weren't very high we're doing double and that's not even close to what we should be doing and we'll be doing.

Stan: But I think it comes from growing the market. I mean, the gaming per capita in Colorado Springs is one of the lowest places I know of in the country, and there's no inherent reason for that. So I think we'll grow the market. You know, we have a few good competitors in Cripple Creek. I mean, Golden Nugget, having bought Wildwood and re-granted it, that's very professionally run now, and that's positive for them, of course, and for us as well. They have a hundred rooms, and their rooms are about the quality of a Fairfield Inn. But they do fine, you know.

Stan: But I think it comes from going to the market I mean, the the gaming per capita in Colorado Springs is one of the lowest places I know of in the country and there's no inherent reason for that so I think we we grow the market Oh, we have a few good competitors in and Cripple Creek came in Golden I.

Speaker Change: Having bought Wildwood and rebranded it it's a very professionally run now and that's a positive for them of course and for us as well Uh huh.

Stan: 100 drums in their rooms are about the quality of the Fairfield Inn.

Speaker Change: But they do fine you now.

Stan: And then Triple Crown is our other major competitor right across the street from us, and also across the street from us is the original Century Casino. And, you know, they're right next to us, so the people staying at our hotel will end up going over there sometimes. There is a weak competitor in town called the Double Eagle, and the owner, I think the second of the two owners has now passed away, and so it's a little bit tied up in probate and so on. It's a pretty big facility, but not close to us, and it's probably the weaker sister in town. If somebody gets hit, it's probably them. But they've been the weak sister for an awfully long time.

Speaker Change: And then Triple Crown is our other major competitor right across the street from US and also across the street from US as the original century casino and and.

Speaker Change: And you know, they're there right next to us so.

Stan: The people staying at our hotel end up going over there sometimes.

Speaker Change: There was a weak competitor in town called the double Eagle and the owner at that I think that's the second of two owners has now passed away and so it's a little bit tied up in probate so on.

Speaker Change: It's a pretty big facility.

Speaker Change: But not close to us and and is probably the weak sister in town somebody gets hit it's it's probably down but they've been the weak sister for an awfully long time.

Stan: So, that's the Cripple Creek Market. It's pretty simple. Then there are two tiny, tiny little places that are just being bought by MecoGon, and I think their strategy is to have a place for our employees to go after work. And that's a perfectly fine strategy for a small casino. And that's pretty much it, but you can't, you almost have to look at Colorado as a whole, because to a very large extent, we view, particularly Monarch, as our competitor. I don't think we're going to take them. I don't think we're going to hurt them either.

Speaker Change: So that's that's the Cripple Creek market, that's pretty simple then theres two tiny tiny little places that are just being bought by my Coke on that I think their strategy is to have a place work for our employees to go after work.

Speaker Change: It's a perfectly fine strategy for a small casino.

Speaker Change: <unk>.

Speaker Change: That's that's pretty much it but he can't.

Speaker Change: You almost have to look at Colorado, as a whole and because it and into a very large extent we view.

Speaker Change: Yeah, particularly monarch as our competitor I don't think we're going to take I don't think we're gonna hurt them either even the Denver market is underserved and if you start looking at what people and say Seattle Campbell well when people in Seattle have to drive up into the mountains to cause the gaming is all on Indian reservations, but the quality.

Stan: Even the Denver market is underserved. And if you start looking at what people in, say, Seattle gamble, well, people in Seattle have to drive up into the mountains, too, because the gaming is all on Indian reservations. But the quality of the stuff that the tribes have built in Washington is quite good.

Speaker Change: But the stuff that the tribes have built in Washington is quite good and that's one of the few states you can actually get the tribal casino gaming revenues and when you look at it people in the state of Washington are gambling about three I think its $3 75 per capita now.

Stan: And that's one of the few states you can actually get tribal casino gaming revenues. And when you look at it, people in the state of Washington are gambling about, I think it's $3.75 per capita now, which is over double what the people in Colorado are gambling. And there are no inherent differences in religion or education or something that would explain that.

Stan: I would think people in Colorado will eventually gamble as much as people in Washington. And there are other markets too you can look at. For example, in California, they gamble about $350 per capita too.

Stan: Just over double what the people of Colorado are gambling and ni.

Speaker Change: And there's no inherent differences in religion or education or something that would explain that I would I would think people in Colorado, who will eventually campbell as much as people in Washington.

Speaker Change: And then there's other markets too you can look at like in California, There's they Campbell about $350 per catheter to and most of the people do not live near casino. They have to drive an hour to get to a travel casino or four hours to get to Las Vegas, and so when you start looking at.

Stan: And most of the people do not live near a casino. They have to drive an hour to get to a tribal casino or four hours to get to Las Vegas. And so when you start looking at Denver, which is somewhere around $200 per capita in gambling, and Colorado Springs was even lower than that, I think as people understand the quality of what we've built, we grow the market. Yeah, I think there's not a lot to glean from the first quarter for what it's worth.

Speaker Change: At our Denver, and which is.

Speaker Change: Somewhere around $200 per capita gambling in Colorado Springs was even lower than that.

Speaker Change: I think as people understand the quality of what we've built we grow the market Yeah I think.

Speaker Change: Not a lot to glean from the first quarter for what it's worth that when got winter weather on the weekend. If there's just we're just pretty ratcheted I think.

Stan: That winter weather on the weekends was just pretty wretched. Maybe the more important takeaway is we have a market that isn't trained yet to go to Cripple Creek when it snows because they're used to there not being any rooms in town. And I think conversely, when you look at Blackhawk, I've been to Blackhawk during a snowstorm before, and I've been to Monarch specifically during a snowstorm on accident, but what I can tell you is that it was a casino that was still pretty busy because people knew that they had their rooms. People don't yet know that in Colorado Springs, for us. They assume that if there's a snowstorm and they drive our way, they might get stuck there without a place to sleep for the night.

Speaker Change: Maybe the more important takeaway is is we have a market that isn't trained yet to go to cripple Creek when it snows because they're used to there not being any rooms in town and I think Conversely, when you look at Blackhawk I've been to Blackhawk during a snowstorm before and I've been a monarch specifically during a snowstorm.

Speaker Change: An accident, but what I can tell you was it was the casino that was still pretty bustling because.

Speaker Change: People know that they are they they know that they have their rooms.

Stan: People don't yet know that in Colorado Springs for us they assume that if there was a snowstorm and they drive our way they might get stuck there without a place to sleep through the night and so this is all stuff that will change in time, but.

Stan: And so this is all stuff that will change in time. But look, I'll tell you where I find comfort. We always worry heading into these openings, did we build the right thing? Did we build something that's approachable, that's nice, that people will feel comfortable in? And I'll tell you overwhelmingly, I think the answer to that is yes.

Stan: Oh look it's I'll.

Speaker Change: I'll tell you where I find comfort is we always worry heading into these openings did we build the right thing do we build something that's approachable. That's nice that people will feel comfortable in and I'll tell you overwhelmingly I think the answer to that is yes.

Stan: I mean, I've had a number of customers say it's a miniature version of Bellagio. And, of course, we don't have the fountains and so on, but the point is that the quality of the finishes is what you would have at Wynn or one of the high-end MGM places. Not surprisingly, we used a lot of the same designers. And no, we're not very big.

Stan: I mean, I've had a number of customers say, it's a miniature version of Palazzo.

Stan: Of course, we don't have the house and so on.

Speaker Change: The point being that the quality of the finishes are what you would have it at when you're one of the high end MGM places not surprisingly we used a lot of the same designers and no whenever it back but only 300 room. So we're a 10th the number of Guestrooms are the typical Las Vegas casino.

Stan: We've got only 300 rooms, so we're a tenth the number of guest rooms of a typical Las Vegas casino. And our casino itself has a few hundred slot machines instead of a few thousand. So we're smaller. But you only stay in one guest room at a time. You only play one slot machine at a time.

Stan: And our casino itself is a few hundred slot machines instead of a few thousand.

Speaker Change: So we're smaller but you're only stay in one guest room at a time you only play one slot machine at a time, how many guestrooms do you really need and so Oh, we will eventually educate people oh, the quality of it and a little bit more of a problem here. It actually is pretty similar to lake Charles when we dealt there there were really crappy casino.

Stan: How many guest rooms do you really need? And so we will eventually educate people on the quality of it. And a little bit more of a problem here, actually; it's pretty similar to Lake Charles when we dealt there. There were really crappy casinos in Lake Charles before La Verge opened. And you almost had to re-educate people in Houston that there was something nice in Lake Charles. They thought of it as a chemical dump. And here, people have been to Cripple Creek before, but the product wasn't very good.

Stan: Lake Charles before the Bearish open and you almost had to reeducate people in Houston that there was something nice in Lake Charles They thought of it as a chemical dump and here people have been to Cripple Creek before the product wasn't very good it had a $5 maximum bet, etc, and now to say no you really got to come and take them.

Stan: It had a $5 maximum bet, et cetera. Now to say, no, you really have to come and take a look at it again; it's different. And there's a... I had an acquaintance there who owns a liquor distributorship, and he came up to Cripple Creek for the opening of a restaurant, and he said, "Everybody tells you how great their facility is. He was blown away when he walked in. He said he had no idea that somebody had built something that nice in Cripple Creek. And now he's coming back up with the sales force from his liquor distributing business having a meeting at our place. So word eventually gets out. Okay. Great. Thanks for that, guys. Sorry, Dan, but go ahead.

Speaker Change: Look at it again, it's different and and theirs.

Stan: I had a an acquaintance there who is owns a liquor distributor ship and he came up to Cripple Creek for the opening of the.

Speaker Change: Our restaurant.

Speaker Change: And he says everybody tells you how great their facility as he was blown away when he walked in and he said he has no idea and this is a guy whose family.

Speaker Change: Family has been in the casino business years ago, and and he said he had no idea that somebody had built something that nice in Cripple Creek and so.

Speaker Change: Now he is coming back up but he with the salesforce from his liquor distributor business, having a meeting at our place upward eventually gets out.

Speaker Change: Okay great.

Speaker Change: Great. Thanks for that guys I'm sorry.

Speaker Change: I'm sorry, Dan go ahead, yeah, I was going to say that the win per slot machine per day.

Stan: Yeah, I was going to say the wind per slot machine per day, and it turns out that about half our slot machines in Colorado are in Chamonix, and about half are in Bronco Billies. And the wind per slot machine per day in Chamonix is by far the highest in the market. And the interesting thing is the wind per slot machine per day in Bronco Billies is actually up because of spillover from Chamonix going into Bronco Billies.

Speaker Change: <unk> recognized about half of our slot machines in Colorado or in Chamonix and about half were in Bronco Billy's and the win per slot machine per day in Xiaomi is by far the highest in the market.

Dan: And the interesting thing is the win per slot machine per day, and Bronco Billy's is actually up because.

Speaker Change: Cause the spillover from Chamonix going into Bronco Billy's so yeah, we are.

Stan: So yeah, we're still not, we leave the city, we do not yet come close to Blackhawk, but again, as we fill the rooms, that'll all change in time. Let's do another question. Another question, yeah. Maybe a quick follow-up.

Speaker Change: Still not where we lead the city, we do not yet.

Speaker Change: Come close to black Hawk, but but again as we fill the rooms that will all change in time.

Stan: Let's do another question or another question here.

Speaker Change: Thanks for the color there guys.

Speaker Change: Yeah.

Stan: Yeah, just curious maybe on labor at the new properties. I know there were a few struggles maybe in the past years and just kind of industry-wide, but now that you've got a few months and a year, in the case of Waukegan, under your belt, how do you feel about that? Well, they were different challenges.

Speaker Change: Yeah, just curious maybe on labor.

Stan: At the new properties I know you know there's a few struggles maybe in past years, and just kind of industry wide, but now that you've got you know a few months in a year in the case of Waukegan under your belt I'm, how do you feel about that.

Speaker Change: Well they were different challenges in waukegan.

Stan: And while Keegan said the challenge was that every single employee must be licensed by the Gaming Commission, and it's a pretty ominous form that they have to fill out, and it's only provided in English when we're in a community that's about half Hispanic. And so the hiring process was complicated by, not the regulators, because the regulations are set in place by the state legislature, and it just is what it is. That's what the law is, and we had to adhere to it.

Speaker Change: The challenge is that.

Stan: Every single employee must be licensed by the gaming Commission and it's a pretty.

Speaker Change: Ominous for them that they have to fill out and its only provided in English when we're in a community that's about half Hispanic and and so the hiring process was complicated by.

Speaker Change: Not the regulators because the regulations are set in place by the state legislature and.

Speaker Change: It just is what it is that's what the law is when we had to adhere to it and so.

Stan: And so it took time to build a stable workforce. I think we're there now. We have a good, stable workforce and a good management team on top of that. Now, we always have some people quit, and we always have to train new people, but it is stabilized, and the first nine months were a struggle. You know, dishwashers don't have to be licensed, so it's an easier process.

Stan: It took time to build a stable workforce I think were there now we have a good stable workforce and a good management team and on top of that now we always have some people quit.

Speaker Change: We have to train new people, but it is it has stabilized.

Speaker Change: The first nine months it was a struggle.

Stan: And now in Chamonix.

Speaker Change: You know dishwashers don't have to be licensed so it's it's an easier process.

Speaker Change: And and but Youre at 10000 feet on the backside of Pikes peak and so the population of the town is 1200.

Stan: But you're at 10,000 feet on the backside of Pikes Peak, and so the population of the town is 1,200 total, and probably 40% of those are either retirement age or kids. And so there are not enough people in Chamonix to staff our place, let alone all the casinos. But there are places like Fluorescent, which is nearby, and Woodland Park. And a number of our employees actually commute from Colorado Springs, which if you live on the west side of Colorado Springs, a place called Manitou Springs and so on, that's a doable commute.

Speaker Change: Total yeah, probably 40% of those are either retirement age or kids.

Speaker Change: And so there there's not enough people in chamonix too to staff our place alone let alone all the casinos.

Stan: But theres places like fluorescent which is nearby.

Speaker Change: And woodland Park, and a number of our employees actually commute from Colorado Springs, which if you live on the west side of Colorado Springs, with a place called Mankato space. So that's a doable commute payment that's not unlike.

Stan: I mean, that's not unlike our offices in Las Vegas or here in Summerlin. And Lewis commutes from Anthem or Green Valley, on the other side of town. That's not much different than going from Colorado Springs to Cripple Creek.

Speaker Change: Our offices in Las Vegas, or her in Summerlin and Louis commutes from anthem.

Stan: Anthem, our green valley and inside of that.

Speaker Change: That's a not.

Speaker Change: Not much different than going from Colorado Springs to.

Speaker Change: Cripple Creek so.

Stan: And, you know, so it is a challenge, but we are every day able to hire some people and kind of build a team. And then we also use some outsourcing of labor, which has helped. So, for example, the cleaning of the guest rooms is being done by a cleaning company that does it for normal hotels as well as other casinos, and that's worked out pretty well. They do all the hospitals in Colorado Springs, so they have a big pool of people to draw on. It'll be a non-issue in a year.

Speaker Change: And so we are I mean.

Speaker Change: It is a challenge, but we are everyday able to hire some people and kind of build the team and.

Speaker Change: And then we also used some out sourcing of labor, which has helped so for example, the cleaning of the Guestrooms is being done by a cleaning company, who who does it for normal hotels as well as other casinos and that's worked out pretty well they do all the hospitals in Colorado Springs, and so they had a big pool.

Speaker Change: People could draw.

Speaker Change: Yeah, it'll be a non issue in a year, we're not we're not too worried about it is it is if you are unemployed or any other casino in town you you see the.

Stan: We're not too worried about it. If you're an employee at any other casino in town, you see the very big difference between our quality and others. Especially if you're in a tipped position, it becomes an easy move into our building. And you do find some surprises. For example, we have a... Pastry Chef who's world-class.

Speaker Change: Very big difference between our quality and and and others and if you're especially if you are an attempt to position it becomes that easy.

Stan: Move into into our building.

Stan: You do find some surprises like for example, we have a.

Stan: He's written books about it. He's done a terrific job. Every time I'm there, I have to remind myself not to eat too many of his pastries, or I won't fit in my suits anymore. And he used to be in Denver, and he wanted to live in the mountains with his big dogs, so he kind of sought us out. And he's enjoying the mountain life, so sometimes it does work in your

Speaker Change: Pastry chef is world class is written books about it has done a terrific job.

Stan: Everytime I am there I have to remind myself not to eat to many of his pastries right won't trip message anymore.

Speaker Change: And he used to be in Denver, and he wanted to live in the mountains with this big dogs. So he kind of sought us out and he's enjoying the mountain life. So sometimes it does work in your benefit.

Operator: Good to hear. Thanks, guys. Thank you. Your next question comes from Ricardo Chinchilla from Deutsche Bank. Please go ahead.

Speaker Change: Good to hear thanks, guys.

Speaker Change: Yeah.

Speaker Change: Thank you. The next question comes from Ricardo Chinchilla from Deutsche Bank. Please go ahead.

Operator: Okay, guys, thank you so much for taking the question and for the great color. I was going in a different direction. There's potentially, you know, some assets of the right size that might come to the market, let's say, six to nine months. You know, somebody like Cesar talked about it.

Luis Ricardo Chinchilla: Hey, guys. Thank you so much for taking the question and for all the great color.

Luis Ricardo Chinchilla: I was doing them in a different direction.

Luis Ricardo Chinchilla: Potentially you know some assets of the REIT side that might come to the market, let's say six to nine months you know someone somebody like Keith is talking about it are you guys committed Q.

Stan: Are you guys committed to leveraging or building cash for the facility? Or, you know, the right opportunity for acquisition is something that could be too tempting for you guys with regard to your strategy and capital allocation priorities? Well, if the Sears guys are willing to sell Sears pellets for four times cash flow, we'll figure it out. But, you know, we look at a lot of things. You almost always learned something from it.

Luis Ricardo Chinchilla: Two deleveraging or to build cash for it if it's a linear or you know the right opportunity for occupancy shouldn't be something that could be too tempting for you guys.

Luis Ricardo Chinchilla: With regards to your strategy and capital allocation priorities.

Speaker Change: Well, if the Caesars guys are willing to sell Caesars Palace for four times cash flow, we'll figure it out.

Speaker Change: But are.

Speaker Change: You know, we we look at a lot of things you almost always learned something from it.

Stan: We did get into the Colorado market through acquisition. We acquired Bronco Phillies for six times cash flow at the time, and I had a bunch of surplus land, and then we added to the surplus land, which allowed us to build a shed. But it's not, we don't have to. I mean, and frankly, If you run the math and just say, OK, just get this stuff mature, and you get Chamonix up to, I mean, Monarch is making over $100 million a year. We have two-thirds as many guest rooms as them. Can we make 50?

Stan: We did get into the Colorado market through acquisition, we acquired Bronco Billy's at six times cash flow at the time and I had a bunch of our surplus land and then we added to the surplus land, which allowed us to build chamonix.

Luis Ricardo Chinchilla: But it's not we don't have to I mean in and frankly.

Luis Ricardo Chinchilla: If all you had if you run the math and just say, okay, just get this stuff mature.

Luis Ricardo Chinchilla: And you get Chamonix up to I mean monarch is making over 100 million here. We have two thirds as many guestrooms is that can we make 50, we should be able to it's not going to happen tomorrow, but but we should be able to get to that sort of number and it might take us couple of years to get there, but and then in.

Stan: We should be able to. It's not going to happen tomorrow, but we should be able to get to that sort of number, and it might take us a couple of years to get there. Well, Keegan, I mean, we're going to do, you know, 35 to 40 this year and probably better than that next year. And then the permanent casino is probably a big notch up from that. And if you start playing with the numbers and say, well, they have to spend $325 million to build the permanent plant, but about half of that is probably generated from free cash flow. And so the debt today is $450. On the permanent opens, we might be for something like $600.

Stan: Well, Kevin I mean, we're gonna do you know 35 to 40, this year and probably better than that next year and then the permanent casino is probably a big notch up from that.

Luis Ricardo Chinchilla: And if you start playing with the numbers and say well.

Keegan: Yeah, they have to spend $325 million to build the permanent but about a half of that is probably generated from free cash flow.

Luis Ricardo Chinchilla: And so the the debt today is 451.

Stan: One the permanent opens we might be something like 600.

Stan: And then you say, well, if they're making $100 in Illinois and $50 in Colorado and all the other properties, and you work backwards, you know, our stock will be three or four times, five times where it is today. Lewis and I and the rest of the management team, a big part of our net worth is tied up in the company. And so we look at it as like, let's not screw that up. We have a very good story. Not even a story.

Luis Ricardo Chinchilla: And then you say well, if they're making 100 in Illinois, and 15, Colorado and <unk>.

Luis Ricardo Chinchilla: 40, and all the other properties and you work backwards you know our stock could be three or four times five times, where it is today and.

Stan: Lewis and I and the rest of the management team. It's a it's a big part of our net worth is tied up in the company.

Stan: And so we look at it as like let's not screw that up we have a very good story not even a strict we have a very good company, we just need to get this stuff to mature and stay focused on it.

Stan: We have a very good company. We just need to get this stuff to mature and stay focused on it. And, you know, you can go out and, without naming companies, there's a competitor of ours who we would look at once in a while that may be acquiring. And boy, in the last couple of years, they went out and sold their good assets to a REIT and took the money from that, leveraged it against it, and bought a bunch of shit.

Luis Ricardo Chinchilla: And you know you can go out and without naming companies. There's a competitor of ours, who we would look at once in a while that maybe acquiring.

Stan: And boy in the last couple of years, they went out and sold they're good assets to a REIT and took the money from that leveraged against it and bought a bunch of <expletive> and now we look at and say well, let's not do that okay, and and their stock has not done well I'm not naming the company, but what I just said probably placed about four.

Stan: And now we look at it, and it's like, well, let's not do that. OK, and their stock has not done well. I'm not naming the company, but what I just said probably applies to about four. And so we're very careful to not make mistakes. Bobby Baldwin used to have a saying I really liked.

Stan: No.

Stan: We're very careful to not make mistakes it Bobby Baldwin used to have a saying I really liked he says it's so hard to not do a bad deal because theres. So many bad deals out there and they're so easy to do and so I'm not going to say, we will never do an acquisition you need that'd be very compelling it needs to be very compelling.

Stan: He says it's so hard to not do a bad deal because there are so many bad deals out there and they're so easy to do. And so I'm not going to say we will never do an acquisition. You need to be very compelling. It needs to be very compelling because we want to make sure that When you say, "Are we committed to deleveraging?" Yeah, because I don't view us as highly levered now because I'm very confident in this stuff maturing as any new casino does.

Stan: Because we want to make sure that Oh and the other thing is.

Stan: When you say are we committed to deleveraging.

Stan: Yeah, because just the.

Luis Ricardo Chinchilla: I don't view us as highly Levered now because I'm very confident this stuff maturing as any new casino does and so I look at it and say I don't I don't think that that highly levered now, but we will delever as Germany comes online it becomes a more profitable one as waukegan continues to do better.

Stan: And so I look at it and say, I don't think we're that highly levered now, but we will delever as Chamonix comes online and becomes more profitable and as Waukegan continues to do better. And then we'll lever up a little bit, but still less than most casino companies to go build the permanent. And when the permanent casino opens, we'll be one of the least leveraged casino companies. Now, I don't think it makes sense for us to have no leverage. But I also don't want to be highly leveraged all the time.

Stan: And then we'll lever up a little bit, but still less than most casino companies to go build the permanent and when the permanent opens we'll be one of the least leveraged casino companies now I.

Stan: I don't think it makes sense for us to have to go leverage but I also don't want to be highly levered. All the time. So if we can be in a spot where our E. B D. I T as two or three or four times interest expense, that's a very comfortable place to be and we're not too far from being in that range now.

Stan: So if we can be in a spot where our EBDIT is two, three, four times interest expense, that's a very comfortable place to be, and we're not too far from being in that range now. As someone that covers bonds, I'm sure you're very happy with that answer there. But look, to Dion's point, this is a company that last year did whatever it was, $48-$49 million of EBITDA, and we think that number realistically should be somewhere in the low to mid-hundreds. I don't know if the number is a take-or-pick-on number, whether it's 120, 130, 150, or whatever number you want to use.

Stan: So.

Luis Ricardo Chinchilla: And some of that covers the bonds I'm sure you're very happy with that.

Stan: But I look to Dan's point. This is a company that last year did whatever it was 48 or $49 million of EBITDA, and we think that number realistically should be somewhere in the low to mid hundreds when everything.

Luis Ricardo Chinchilla: If the number is a take or pick a number whether it's $121 31 50, whatever number you want to use them throwing out numbers by the way I'm, not giving you guidance, but but realistically, that's where everything should be ramping up towards and so we need to make sure that that works correctly that will always be.

Stan: We're throwing out numbers, by the way; I'm not giving you guidance. But realistically, that's where everything should be ramping up to. And so we need to make sure that that works correctly. That will always be job number one here for us, because that is massive, massive growth on assets that we've already invested the capital in. And, you know, I don't want to be completely wedded to this, but just... strategically.

Stan: Job number one here for us because that is a massive massive growth on assets that we've already invested the capital N and M D.

Stan: I don't want to be completely wedded to this but just <unk>.

Stan: Strategically.

Stan: You know, we do view ourselves as having multiple, what is the word, stakeholders. It's not just shareholders. Now, legally, we know shareholders in most states, I think, including Nevada. That is our primary responsibility. But if you look back at the track record that I had at Merage and that Lewis and I had at Pinnacle, both of those companies were gradually improving their credit ratings the entire time we were there. And so we may lever up to go build something, but we don't just lever up to get a loan.

Stan: We do view ourselves as having.

Stan: Multiple.

Stan: What is the word stakeholders.

Stan: It's not just shareholders now legally we know shareholders in most states I think including Nevada that is our primary responsibility.

Stan: But if you look back at the track record that I had at Mirage and that Lewis and I had it at pinnacle.

Stan: Both of those companies were gradually improving credits the entire time, we were there and so you know.

Stan: We may lever up to go build something but we don't just lever up to lever up and Oh, we do pay attention to try to be in.

Stan: And we do pay attention to try to be an improving credit as well. And so there's lots of different aspects to this. And I'll just seal it out. And there's no ego in wanting to be big just to be big, either, for what it's worth. Yeah, in fact, I mean. I kind of, I will freely tell you I admire a monarch.

Stan: An improving credit as well so there's lots of different aspects to this and I'll just fill it out and there's there's no ego and wanting to be big just to be big either for what it's worth yeah in fact that I mean.

Stan: And.

Stan: I kind of I will freely tell you I admire monarch.

Stan: And they are a pretty good company, and they trade pretty well. They only have two stores, and they stay very focused on those two. And it doesn't seem to hurt their valuation. And so, as we evolve, we're going to have two principal places, which are the two new ones, and then the silver slipper will still be important, and the other stuff is pretty small. It's not that we don't love the team at Rising Sun, because I'm sure you're listening to this.

Stan: And they are a pretty good company and they trade pretty well they only have two places and they stay very focused on the two.

Stan: And it doesn't seem to hurt their valuation.

Stan: And.

Stan: And so as we evolve.

Stan: We're gonna have two principal places, which of the two new ones and then the silver slipper will still be important and the other stuff is pretty small.

Stan: So.

Stan: Okay.

Stan: It's not that we don't love the team at rising Sun, because I'm sure you're listening on this.

Stan: It has 300 guest rooms and a golf course, and they're doing a terrific job. But, being realistic, we make more money in a couple of months in Waukegan than we do in a year at Rising Sun. All right, next question. Got it. Oh, Steve, I see. Was that Steve I just heard?

Stan: 300, Guestrooms and a golf course, and they're doing a terrific job, but being realistic.

Stan: We make more money in a couple of months and color in waukegan than we do in a year at rising Sun. So.

Speaker Change: Alright next question God is.

Stan: Yeah.

Speaker Change: Oh, Steve I saw there was that Steve registered.

Operator: Thank you so much, guys. As a bond analyst, I appreciate all the color, and that's kind of what you want to hear being, you know, covering the bonds. Thank you. Thank you, thank you. Thank you. Your next question comes from Jordan Bender from Citizens JMP Securities. Please go ahead. Hi, this is Eric Ross, on behalf of Jordan.

Speaker Change: No. Thank you so much guys I know the.

Eric Ross: But I always thought I appreciate all the color and that's kind of what you wanted to hear being you know covering the bonds. Thank you.

Eric Ross: Thank you. Thank you.

Eric Ross: Thank you. Your next question comes from Jordan Bender from citizens JMP Securities. Please go ahead.

Operator: Hi, This is Eric Ross on for Jordan, Thanks for taking our question now.

Operator: Thanks for taking our question. Now that you've operated the temporary for about a year plus, and with the delay of the American Place lawsuit. Has customer behavior or preference for the property changed any of your thinking around what should ultimately be built there in terms of amenities? I mean, we have designed a place that can be easily expanded. And we're going to start with kind of the core of it, and then as the business builds somewhere down the road, it can be expanded. And by the way, I do that conceptually all the time.

Eric Ross: Now that you've operated the temporary for about a year plus and with the delay of the American place with the lawsuit.

Operator: As customer behavior, our preference at the property changed any of your thinking around what is ultimately built there in terms of amenities.

Operator: Alright.

Speaker Change: Go ahead, well I mean, we have designed to place that can be easily expanded.

Operator: And we're gonna start with kind of the core of it.

Operator: And then as the business builds somewhere down the road it can be expanded and by the way that I do that conceptually all the time, we have a way to add rooms that Germany also we have a way to add rooms at the silver slipper and we're not doing our job if we're not thinking through of where it might go to a public company goes forever. So 10 years from now so many might go build those roads.

Stan: We have a way to add rooms at Chamonix also. We have a way to add rooms at the Silver Slipper. And we're not doing our job if we're not thinking through where it might go. A public company goes forever. So 10 years from now, somebody might go build those hotel towers. And no.

Stan: Cell towers.

Stan: And no N N.

Stan: And you know, we have learned some things from Waukegan. I mean, that Rivers is a very loyal clientele. We haven't nicked them very much. And in fact, I think we had very little impact on them. The Bally's Casino seems to have had a little bit of an impact on it, but they are still the 500 pound gorilla in the state. They make far more revenue than anybody else in the state. And, you know, maybe that's convenience. Like, there you pull into a strip shopping mall, you park your car, and you walk in. You're 20 feet from the slot machine.

Stan: You know, we we have learned some things from waukegan them in that that.

Stan: There is a very loyal clientele, we haven't Nick them very much and in fact, I think we had very little impact on them. The bally's casino seems to have had a little bit of an impact on it but they are still the same.

Stan: 500 pound gorilla in the state they they makes far more revenue than anybody else in the state.

Stan: I thought we would impact the video lottery machines more than we have that was interesting and we've been kind of scratching. Our heads, saying why are people still going to the closet of tobacco liquor store to place six slot machines, when our environments much nicer and maybe that's convenience like their U.

Stan: Well, maybe we need to think about, you know, offering valet parking that we don't do today. We're trying to figure out how we can get into that market. People don't eat as much, and that's interesting.

Stan: Poland just strip shopping mall you Park your car and you walk in you 20 feet from the slot machine well, maybe we need to think about you know offering valet parking that we don't today are trying to figure out how to how do we get into that market.

Stan: People don't eat as much.

Stan: And that's interesting and you know we have we have two pretty good sized restaurants, and then we two months ago opened the high end restaurants. The high end restaurant seems to have kicked our casino revenues up quite a bit that was that it it's a little if.

Stan: And we have two pretty good-sized restaurants, and then we opened the high-end restaurant two months ago. The high-end restaurant seems to have kicked our casino revenues up quite a bit. It's a bit.

Stan: If you look at the turnstile, and you know you're getting 2,000 people a day in the casino, and then you look at the steakhouse that's serving 150 people a day at best, and it's like, really? But those 150 people are perhaps your most important people, and so keeping it open. But if you look at the... food costs relative to the gaming revenue. You know, I mean, Lewis and I live here in Las Vegas, and we.

Stan: If you look at the turnstile and you know you're getting 2000 people a day in the casino and then you look at the Steakhouse at serving 150 people a day at best that's like really but those 150 people are perhaps your most important people and so getting it opened but if you look at the.

Stan: Food covers relative to the gaming revenue.

Stan: You know I mean, Lewis and I live here in Las Vegas, and we.

Stan: Frequently, I end up walking into the Red Rock Casino or Durango Station or something for a meal because they have great restaurants. You don't even think twice about it. That pattern has not happened in Illinois. The number of people who go to restaurants and a casino is relatively small. And that's interesting. And it's kind of like, OK, why is that? And part of that is you have to go through security and show your driver's license and all that, whereas in Nevada, you don't.

Stan: Frequently ended up walking into the Red rock casino or Durango station or something for a meal because they have great restaurants, you're not even think twice about it.

Stan: That pattern has not happened in Illinois, a number of people who go to a restaurant and a casino is relatively small and that and that's interesting and it's kind of like okay. Why is that and you know part of that is you have to go through the security and show your.

Stan: Driver's license and all that whereas in Nevada, who don't so part of that is is perhaps the regulations.

Stan: So part of that is perhaps the regulations. Part of that's the design. And so, for example, Durango Station, and I will tell you, I think they did a fantastic job at Durango Station. And when I go in there, they have probably the best. Food Quest, not even a food court, what do they call it?

Stan: Part of that's the design and so for example.

Stan: Durango station when and I will tell you I think stations did a fantastic job at Durango station.

Stan: And HEICO in there they have probably the best.

Stan: Food, Chris name in a food court, what do they call. It food Hall food Hall that I've ever seen it was very well done lots of different brands and so on and we're scratching our heads saying, okay. How do we do something like that in Waukegan.

Stan: Food Hall. The biggest food hall that I've ever seen. And it's very well done. Lots of different brands and so on.

Stan: And we're scratching our heads saying, okay, how do we do something like that in Waukegan? And maybe it's like part in, part out of the casino environment so you can kind of get around the regulations. So, you know, you learn a lot. Durango Station did not have a large, system of corridors underneath the casino to get the food from one loading dock to the restaurants.

Stan: And maybe it's like part in part out of the casino environment. So you can kind of.

Stan: You can get around the regulation. So so you know.

Stan: You learn a lot.

Stan: Go station did not have a large.

Stan: <unk>.

Stan: Our system of corridors underneath the casino to get the food from one loading back to the restaurants. They designed it more like a shopping mall, where the rest of each restaurant has its own luck loading docket, two restaurants will share a loading dock and on the outside of the Bill is kind of camouflage that its a loading dock that's pretty typical in shopping malls, but not very.

Stan: They designed it more like a shopping mall where each restaurant has its own loading dock, or two restaurants will share a loading dock. And on the outside of the building, it's kind of camouflaged that it's a loading dock. That's pretty typical in shopping malls but not very typical in casinos. Well, it saves a lot of money. And when I realized what they were doing, I was like, okay, let's... Let's think about this for Waukegan because we can save the money of building these expensive corridors so that the food gets distributed throughout the property. Just make Cisco make multiple stops at their expense.

Stan: Typical in casinos, well it saves a lot of money and when I realized what they were doing its like okay, let's let's.

Stan: Let's think about this for waukegan, because we can save the money of building. These expensive corridors. So that the food gets distributed throughout the property.

Stan: Just make sysco make multiple stops at their expense.

Stan: And so there are things we've learned. The customers, it is built. I thought it might ramp up a little faster than it is. And when I look at why it isn't, I think the outside of the building is a big part of that. I mean, we tried to build this very quickly, and we used a sprung structure. At night, we project things on the sprung structure, and try to make it look interesting.

Stan: And so there are things we've learned.

Stan: The customers.

Stan: It is built.

Stan:

Stan: I thought it might ramp up a little faster than it is.

Stan: And when I look at why it's not I think the outside of the building is a big part of that I mean, we tried to build this very quickly and we used to sprung structure at night, We project things on this branch structure and tried to make it look interesting, but it's not affecting building, it's not like if you drive down the strip and see blusher with the fountains going.

Stan: But it's not a fetching building. It's not like if you drive down the strip and see Bellagio with the fountains going, every bone in your body wants to get into the building on the other side. It draws you in. You know, and our tent doesn't do that. It looks like where the Department of Public Works stores salt for the winter.

Stan: Every bone in your body wants to get into the building on the other side. It draws you win and and.

Stan: And in our tent doesn't do that it looks like with the department of public works store salt for the winter and and so we've been getting past that.

Stan: And so we've been getting past that. When we build the permanent casino, it will be fetching. It will draw you in. And I think it's pretty remarkable that we're doing $9.5 million a month in revenue in a Stretched Kevlar Fabric Tent, and it kind of shows you what can be done at the permanent location. The Potawatomi lawsuit, which I am convinced is a nuisance lawsuit, I was there when they made their presentation, and if I were on city council, I would have just said, you operate a tribal casino across the state line that pays much less in taxes, and none of it goes to Illinois. Why the hell would we choose you?

Stan: When we build the permanent casino it will be fetch it will draw you out.

Stan: And I think it's pretty remarkable that were doing nine and a half million dollars a month in revenue.

Stan:

Stan: Stretched kevlar fabric tent.

Stan: And and it kind of shows you what can be done at the permanent and Don.

Speaker Change: There you go.

Stan: The that the delay from the Potawatomi lawsuit, which I am convinced is a nuisance law suit I was there when they made their presentation.

Stan: And if I were on the city Council I would've just said you operate a tribal casino across the state line that pays much less in taxes and none of it goes to Illinois, why the Hell would we choose U. That's all you needed to say, but if you didn't know that and you just saw their presentation. It's like that is the ugliest piece of <expletive> I've ever seen I wouldn't pick him for that.

Stan: That's all you needed to say. But if you didn't know that, and you just saw their presentation, it's like, that is the ugliest piece of shit I've ever seen. I wouldn't pick them for that. So I don't think there's any leg they can stand on where they should have gotten this license.

Stan: So I don't think there's any leg they can stand on where they should have gotten this license I think they're just they they make a lot of money in Milwaukee, they're using a piece of it to try to delay us.

Stan: I think they're just, they make a lot of money in Milwaukee, and they're using a piece of it to try to delay us, but that delay is perhaps good, because it's allowed the high yield market to come back, I think it will come back stronger, it allows us to get Chamonix open and get it ready, and have it contributing cash flow that can be used for the permanent casino, and allows us time to think more about the permanent So don't get me wrong; it would have been better if the Potawatomi had not filed the lawsuit, and we could have moved faster.

Stan: But that delay is perhaps good because it's allowed the high yield market to come back I think it will come back more allows us to get Chamonix open and get it ready.

Stan: And have it being contributing cash flow that can be used for the permanent and allows us time to think more about the permanent. So we had we build the smartest and best casino possible. So don't get me wrong. It would would've been better if the Potawatomi had not filed the lawsuit.

Stan: And we could have moved faster, but the fact that they did have some benefits to us as well.

Stan: But the fact that they did so has some benefits for us as well. Only because we're running out of time, a quick thing here too: I will tell you what always catches my eyes every month when I look at the gaming report from Illinois is number one in the state, like in April, $42 million from Rivers, number two, $12 million of gaming revenue, so a $30 million gap between number one and number two in the state.

Stan: Only because we're running out of time quick quick thing here too I will tell you what always catches my eye every month when I look at the gaming report from Illinois is number one in the state like in April all $42 million from rivers number $212 million of gaming revenue.

Stan: The $30 million gap between number one and number two in the state. It is of bananas thing to look at and then when he started thinking well wait a minute that is our closest competitor and we havent northern shore or in order to shorten these northern suburbs of Chicago that are just still underpenetrated in terms of overall.

Stan: I'm not saying that we're going to hit $42 million in gaming revenue, by the way, but it just keeps my eyes wide open as to what the ultimate potential will be for us when we have a beautiful building that people actually want to walk inside of. So, anyway.

Stan: Gaming spend I'm, not saying that we're gonna hit $42 million of gaming revenue by the way, but it just it keeps my eyes wide open as to what the what the ultimate potential will be for us when we have a beautiful building that people actually want to walk inside of so anyway. The Potawatomi is up in Milwaukee also.

Stan: Yeah, and the Potawatomies up in Milwaukee also generate $450 million a year in revenue. And so we're doing 25% of what either of them are doing. And I think we can do it in one of the wealthiest counties in the country, Kansas or Oklahoma that's getting some recognition as a potential Indian reservation southwest of Chicago.

Stan: Generate $450 million a year in revenue, yeah, and so we're doing 25% of what either of them are doing yeah and.

Stan: And I think we can do and one of the wealthiest counties in the country. So I think we're in a great location, great barriers of entry nobody else can get a casino anywhere near us.

Stan: I've got a flurry of stuff, there's a Indian tribe out of Kansas or Oklahoma, that's getting some recognition of a potential Indian reservation.

Stan: Southwest of Chicago, and I got a bunch of phone calls wealthy they're obviously doing this to try to get a casino is that kind of impact you. If you get out a map I'd look at it as a long ways from us and May impact I forget whether it was I think it's a right it's not too far from them that's not us.

Stan: And I got a bunch of phone calls, well, they're obviously doing this to try to get a casino. Is that going to impact you? If you get out a map and look at it, it's a long ways from us. It may impact, I forget whether it was Aurora or not. I think it was Aurora.

Stan: It's not too far from them. That's not us. And then there's a different Indian tribe who's trying to get another casino up in Wisconsin. I think the Pottawattamese are pretty opposed to that, and the Pottawattamese are a force to be reckoned with in Wisconsin.

Stan: So and then there's different Indian tribe who's trying to get another casino up in Wisconsin, I think the potawatomi or pretty opposed to that other part of automation are a force to be reckoned with in Wisconsin.

Stan: <unk>.

Stan: You know, so there's lots of barriers to entry. Doesn't mean people won't try, but it's very hard to build a new casino there, whereas in a place like Nevada, Mississippi, Atlantic City, there are very few barriers to entry.

Stan: So theres lots of barriers to entry doesn't mean people won't try but it's very hard to build a new casino there, whereas in a place like Nevada, Mississippi Atlantic City, there's very few barriers to entry.

Stan: Okay.

Stan: Okay. Okay, yeah, that's great to hear. And then maybe just a quick follow-up. We expect them to perform better.

Speaker Change: Okay. Yeah, that's great to hear and then maybe just a quick follow up could you speak about the trends you've seen our legacy portfolio and the first quarter and I expect those properties to perform for the rest of the year.

Stan: We expect them perform better.

Stan: Yeah at the silver slipper was a weaker quarter and I don't have a good reason for it other.

Stan: The Silver Slipper was a weaker quarter, and I don't have a good reason for it other than we were a little distracted with Colorado, and we want to get back in and understand what they're doing and either the We've got to get smarter at marketing, or smarter at controlling the payroll, or both. And that happens sometimes. It's still going okay, but it should be making a little more money than it is. Rising Sun is doing okay.

Stan: Then we were a little distracted with Colorado, and we wanted to get back in and understand what theyre doing in either the.

Stan: We gotta get smarter at marketing of course smarter at controlling the payroll or both.

Stan: And then that happens sometimes it's still it's still doing okay, but it should be making more money than it is.

Stan: It's always been a tough property. There is a new casino that opened in Northern Kentucky in September of 2018. I guess it was, and it's been, you know, building some market share, which has been a little bit of a challenge. We've done relatively well despite that.

Stan: Rising Sun is doing okay for you know, it's always been a tough property. There is a new Racine Oh that opened in northern Kentucky and September of 'twenty two.

Stan: Two I guess it was and.

Stan: It's been building.

Stan: Building some market share would spend a little bit of a challenge we've done relatively well despite that and then Churchill also has built some stuff down in Louisville, the other side of us.

Stan: Well, we're hanging in there.

Stan:

Stan: Tahoe, it softened driven by weather what goes on in incline village.

Stan: If we if we get a normal month all of a sudden will upgrade income and then all of a sudden will have too much snow or too little snow.

Stan: It's just the nature of the tourist places like that and Fallon it depends on whether there's a isn't really an 80 basis, yeah, and and and then and then in March and April than the Navy had increase in visitation even happened in January and February but it was back in March and April.

Stan: It's a little bit when the aircraft carriers go into San Diego.

Stan: And then Churchill also has built some stuff down in Louisville, on the other side of us. But we're hanging in there. Tahoe, it's often driven by weather, what goes on in Incline Village. [inaudible] Before when I met people, a lot of people didn't know this when when the plane takes off. To take off a plane on an aircraft carrier, the carrier has to be moving. And you need that headwind of like 10 miles an hour, 15 miles an hour for the planes to get off the carrier. And so when it goes into San Diego Harbor, before it gets to the harbor, any plane that is capable of being flown is taken off.

Stan: Before.

Stan: But a lot of people don't know this one when the planes.

Stan: Take off a plane on an aircraft carrier the carrier has to be moving.

Stan: And you need that headwind of like 10 miles an hour 15 miles an hour for the planes to get off the carrier.

Stan: And so when it goes into San Diego Harbor before it gets to the heartburn.

Stan: The plane that is capable of being flown has taken off.

Stan: And then they go land at a naval air station. Well, then, while that boat is being outfitted or people are on leave and so on, the pilots and co-pilots and mechanics and everything, they go up to Fallon for training. And so it's a naval air station kind of in the middle of Nevada. And it gets a little frustrating because our business surges whenever there's a, what do they call it, CAG, Carrier Air Group, in town.

Stan: And then they go land and Naval Air station, well, then while that vote is being outfitted or are people, who are on leave and so on the pilots and co pilots and mechanics to everything they go up the Fallon for training and so it's a naval air station kind of in the middle of Nevada, and it gets a little frustrating.

Stan: As our business surges whenever theres, a cat carrier Air group in town, but it's like considered a national secret when they're coming so the air Force base doesn't tell us Oh, Yeah, we've got a whole bunch of people coming next week.

Stan: But it's considered a national secret when they're coming. So the Air Force base doesn't tell us, oh yeah, we've got a whole bunch of people coming next week. All of a sudden, we just find people in uniforms showing up in our casino, and then we're scrambling to accommodate them. So yeah, it's a unique little market. Yeah, it's a very small force at this point, but it's okay.

Stan: All of a sudden we just find people in uniform showing up in our casino and then were scrambling to to accommodate them. So yeah, it's a unique little market.

Stan: Yeah, very small for us at this point.

Stan: But.

Stan: We have two last people in the queue, so let's try to get through them real quick. Oh, I should mention sports betting. Illinois, which is the bulk of it, is doing fine, and some of the other licenses are not being used now, and we continue to look for either partners or the possibility of doing something very modest where we don't lose money and offer sports betting online ourselves, mainly for the people who are in our database as kind of an amenity, and I think that could be done without losing money. Have other questions?

Stan: But it's a it's okay. We have to last people in the queue. So I'll try to get through them real quick.

Stan: I should mention the sports betting the Illinois, which is the bulk of it is doing fine.

Stan: And some of the other licenses are not big news now and we continue to look for either partners or possibility of doing something very modest where we don't lose money.

Stan: <unk> offer sports betting online ourselves mainly for the people who are in our database is kind of an amenity and I think that could be done.

Stan: Without losing money.

Speaker Change: So the question.

Operator: Thank you. Your next question comes from Chad Beynon from Macquarie. Please go ahead. Hi, this is Sam on behalf of Chad.

Stan: Thank you. Your next question comes from Chad Beynon from Macquarie. Please go ahead.

Operator: Thanks for taking our questions. So monthly GGR at the temporary in Waukegan is taking a step up into the $9 to $10 million range. What's further required at the temporary to get another step up into the $11 million range? And what do you think run rate EBITDA would be at that mark?

Operator: Hi, This is Sam on for Chad, Thanks for taking our questions.

Operator: So a monthly GTR the temporary in Waukegan has taken a step up into the $9 million to $10 million range.

Operator: What further required at the temporary to get another step up into the $11 million range and what do you think run rate EBITDA would be at that Mark.

Stan: Well, I'll be frank. It's time. I look, and it is.

Speaker Change: Well I'll be Frank it's time I look at it is I think people don't realize sometimes that when you open these new casinos different marketing promotions work.

Stan: In some places and they don't work in others and so for US it feels like we've really crack the code for us on Thursday, Friday Saturday Sunday.

Stan: Are there other days of the week it feels like we're still making tweaks and figuring out what brings in those players in real time in and.

Speaker Change: And I am not going to.

Stan: I think people don't realize sometimes that when you open these new casinos, different marketing promotions work in some places and they don't work in others. And so for us, it feels like we've really cracked the code for us on, you know, Thursday, Friday, Saturday, Sunday, other days in the week. It feels like we're still making tweaks and figuring out what brings in those players in real time. And, and I'm not going to do I don't don't spill the secret sauce for what we've learned already.

Speaker Change: Dan don't don't spill the secret sauce for what we've learned already we spent the last year and changed learning it ourselves, but I will tell you. We've run some recent events that we think are promising and so I think I think we're getting there, but you know at the end of the day that database continues to grow that's probably the most important thing we were over 71.

Stan: People in the database now and it's that and really just just learning and and and and quite honestly using that steakhouse now to maximum benefit last year at this call. We would've been talking about 10 or 20000 people in the database.

Stan: But actually the other thing I'd noticed yesterday when the.

Stan: We spent the last year and a half learning it ourselves. But I will tell you, we've run some recent events that we think are promising. And so I think I think we're getting there. But, you know, at the end of the day, that database continues to grow. That's probably the most important thing. We have over 71,000 people in the database now. And it's that and really just just learning and, quite honestly, using that staycast now to maximum benefit. Illinois results came out from the Gaming Commission, and I'm looking through it, and they have a column of square footage, and it shows us 70,000 square feet, and Rivers is only a little bigger than us.

Stan: Illinois results came out from the gaming Commission I'm looking through it and they have a column of square footage.

Stan: And it shows US a 70000 square feet.

Stan: And rivers, only a little bigger than us.

Stan: And I looked at it, and I thought, it shows us as being one of the largest in the state in square footage. And I actually stopped and thought, I wonder if that's including our restaurants that are in the tent or not including the restaurants. I'm not sure. But I think it's, the more I think about it, I think it's probably accurate because places like Grand Vic and Aurora and Joliet are river boats.

Stan: <unk> based and I looked at it I thought it shows us as being one of the largest in the state.

Stan: Square footage.

Stan: I actually stopped and thought I wonder if that's including our restaurants that are in the tent or not including the restaurants I'm not sure but.

Stan: I think it's the more I think about it I think it's probably accurate because places like Grand Vic and Aurora Joliet, those wood River boats.

Stan: And they are stacked and crowded and not a whole lot of square footage. Our place is a large single-level casino, 70,000 square feet. And so, you know, I don't think we're, if you go in there on a Friday night, sure, it's busy. I mean, of course it's busy, but we're not close to capacity. I mean, I remember the Bears down in Lake Charles; we used to do $500 per machine per day. We're not doing that here yet.

Stan: And they are stacked and crowded in that not a whole lot of square footage.

Stan: Our places are large single level casino 70000 square feet and so you know.

Stan: I don't think where if you go in there on a Friday night sure. It's busy I mean of course, it's busy but we're not close to capacity.

Stan: I remember at the bare stone in Lake Charles we used to do $500 per machine per day, we're not doing that here yet.

Stan: It's interesting to look up what Rivers is doing; they might be close, but we can make a lot more revenue in our 70,000 square foot space than we do now, and I think it will continue to build. Thank you, and then, as a follow-up, what are the marketing plans for Chamonix as we head into the summer months and the potential for increasing group hotel revenue? Well, the groups book quite a ways in advance, so we have a sales team now. It's very small.

Stan: Interestingly, a couple where versus doing they might be close, but it's we can do a lot more revenue than our 70000 square foot than we're doing now and then.

Stan: And I think it will continue to build.

Stan: So.

Speaker Change: Thank you and then as a follow up.

Stan: What are the marketing plans for Sherman answer you head into the summer months and the potential for increasing group hotel revenue.

Stan: Well the group's book quite a ways in advance. So we're trying to we have a sales team now is for very small we're trying to augment it and that's really about putting business on the books for the fall the winter and thereafter.

Stan: We're trying to augment it, and that's really about putting business on the books for the fall, the winter, and thereafter. If you call up a group now and say, hey, why don't you bring your group to our place in June?

Speaker Change: Because if you.

Stan: If you call up the group now and say Hey, why.

Stan: Why don't you bring your group to replace in June while they already have it book somewhere they've already told their attendees, where they are and so on.

Stan: Well, they already have it booked somewhere. They've already told their attendees where they are and so on. So that's a more long-term thing. Now, in summer, people go to the mountains in the summer.

Stan: So that's a that's a more long term thing no summers.

Stan: People go to the mountains in the summer. So I think we will fill with gamblers and retail customers in July and August even midweek.

Stan: So I think we will fill up with gamblers and retail customers in July and August, even midweek. But there's a lot of stuff. Part of the way the hotel business has evolved, the Expedia contract says if you offer a $150 rate on your website, then Expedia is allowed to offer a $150 rate on their website, and they keep 20% of it before they give you 80% of it.

Stan: But there there's a lot of stuff.

Stan: If you go.

Stan: Yeah.

Stan: In.

Stan: Part of the way the hotel business has evolved the Expedia contract says if you offer 150 dollar rate on your website than Expedia is allowed to offer 150 dollar rate on their website and they keep 20% of it before they give you 80% of it.

Stan: And.

Stan: And so, whenever you're booking, go to the hotel website where you're traveling and look for a button that says offers. And they will have offers. And it's very hard for the Expedia bot to try to compare those offers.

Stan: And so whenever youre booking it go to the hotel website, where you're traveling and look for a button that says offers.

Stan: And they will have offers and it's very hard for the Expedia bought just try to compare the offers and all of a sudden you'll see well our rooms $150, but if I do this weekend package I get free valet parking and breakfast and in a bottle of champagne in the room or something.

Stan: And all of a sudden, you'll see, well, a room's $150, but if I do this weekend package, I get free valet parking and breakfast and a bottle of champagne in the room or something. And then it's, oh, wait a minute.

Stan: And then say Oh wait a minute that's much better than booking and expedia and so more and more youll see hotel change kind of doing that well. If you go and look at our competition in Colorado and click on the offers but theres all sorts of creative stuff there.

Stan: That's much better than booking on Expedia. And so, more and more, you'll see hotel chains kind of doing that. Well, if you go and look at our competition in Colorado and click on the Offers button, there's all sorts of creative stuff there that we will have as well soon that says, hey, if you know.

Stan: We will have as well soon that says hey, if any and you try to direct business to the mid week and and so you know an email that goes out to people that maybe theres a database that we've been able to purchase that tells US. These are retired people in castle rock who tend to gamble.

Stan: And you try to direct business to the midweek. And so an email goes out to people that maybe there's a database that we've been able to purchase that tells us these are retired people in Castle Rock who tend to gamble. And we will send them something that says, "Hey, come on up and try us."

Stan: And we will send them a thing that says hey come on up and try US we'll give you.

Stan: We'll give you a meal coupon on the weekend. But if you want to come during the week, we'll give you a hotel room. And so you try to drive business during the midweek. And that's the key. That's always been the key in Las Vegas as well. I mean, the hotels in Las Vegas would naturally fill every weekend with people who drove over from LA. And that's still the case.

Stan: Our meal coupon on the weekend, but if you want to come during the week, we will give you a hotel room.

Stan: And so you try to drive business to the mid week and that's the case, that's always been the key in Las Vegas, as well I mean, the the hotels in Las Vegas would naturally fill every weekend by people who drove over from L. A and that's still the case and and the entire convention business. That's been built up here.

Stan: And the entire convention business that's been built up here in 60 years is about trying to fill the midweek. And that's why you'll notice when the Comdex show starts, it's like, well, it starts on Monday morning because they want you to fly in on Sunday night because their hotel is otherwise going to be empty on Sunday night. But the hotels on the Strip want that convention out of here before the weekend because you're likely to get people who are more prone to gamble and pay more for their rooms and their food retail than you do for meetings and groups. That's just the hotel business, and Time. And time will help too.

Stan: 60 years is about trying to fill the mid week and Thats why youll notice when Comtech show starts it's like well it starts on Monday morning, because they want you to fly in on Sunday night, because their hotel, it's otherwise going to be empty on Sunday night, but the hotels on the strip want that convention how to hear before the weekend because youre likely to.

Stan: Get people, who are more prone to gamble and pay more for their rooms in their food.

Stan: Retail than you do for meetings and groups anyway. That's that's just the hotel business.

Stan: You know, that database will continue to grow. I mean, we picked up about 5,000 people in that database in the first quarter. That's going to get kicked into the next level of overdrive in the second and third quarters with better weather. And so with that database, it's obviously important as well.

Stan: <unk>.

Stan: And time will help to you we that database will look well will continue to grow I mean, we picked up about 5000 people in that database in the first quarter, that's going to get kicked into a next level of overdrive in the second and third quarter with better weather and so with that database, it's obviously important as well.

Speaker Change: Thanks, guys best of best of luck.

Stan: Thanks, guys. Best of luck. Thank you. Oh my gosh, I think we have time for one last question if you can be quick here.

Speaker Change: Okay. Thank you Oh, my Gosh I think we have time for one last question. If you can be quick here.

Operator: Thank you. Your last question comes from David Hargreades from Barclays. Please go ahead.

Stan: Thank you. Your last question comes from David Hargreaves from Barclays. Please go ahead.

Operator: Hi, congrats on the successful opening. I'm just wondering if there are any more adjustments to where the final budget is shaking out? And could you talk about the cadence of pay payments over the next few months?

David Hargreaves: Hi, Congrats on the successful opening I'm just wondering if there's any anymore.

David Hargreaves: Adjustments to where the final budget is shaking out and could you talk about the cadence of pay payments over the next few months.

Stan: I assume there's probably some construction payables; anything you could give us on that would be helpful. Thank you. Well, there's roughly $20 million of restricted cash in the restricted cash account still, and that should pay for completion. There are some small amounts outside of that, but they're small and not very material.

David Hargreaves: I assume there's probably some construction payables anything you could give us on that would be helpful. Thank you.

Stan: There's a 20 roughly $20 million of restricted cash and restricted cash account still and that should pay for completion of it.

Stan: There's some small amounts outside of that but they're small and not very material and so.

Stan: When we started this process and issued the bonds, the bond buyers and the underwriters requested that we have a construction reserve account. And actually, that's kind of nice for us, because it's a third party who monitors all the construction expenditures and makes sure that you're in balance, that you always have enough money in the construction reserve account to complete the project. And so I think we're fine. It's been a relatively slow spend from here.

Stan: You know that when we when we started this process and issued.

Stan: Issued the bonds are the bond buyers and the underwriters.

Stan: Requested that we have a construction reserve account and and actually that it's kind of nice for us because there's a third party who monitors all the construction expenditures and make sure that you are in balance that you always have enough money in the construction reserve account to complete the project and.

Stan: And so I think we're fine.

Stan: And.

Stan: It's been a relatively.

Stan: Slow spend from here a lot of it honestly just sitting in and retention for what it's worth.

Stan: A lot of it, honestly, is just sitting in retention for what it's worth. Last month, I think our draw was a little over $3 million, so it's kind of trickling out at this point. But certainly, by the time you head into October, it's going to be a little bit lower. Oh my gosh, my gut says by the end of the third quarter, you'll see that they've been exhausted, but it could drag on slightly longer than that. I mean, to give you an example, we have a big surface parking lot across the car.

Stan: Last month, I think our draw was like three with three little over 3 million box. So it's a it's kind of trickling out at this point, but certainly by the time you head into <unk>.

Stan: Oh My Gosh, My gut says end of third quarter, you'll see that have been exhausted, but but it could drag on slightly longer.

Stan: To give you. An example, we have a big surface parking lot across car.

Stan: Midway through construction, we were able to buy three houses that finished off the rectangle, so it's a clear rectangle. Well, that makes that parking lot a little bigger than it was before, so there's some additional curbing and asphalting that wasn't covered in the construction reserve number and will be paid for separately, but it's not a big number. That's the sort of thing you run into. Got it. Do you guys think you'll file the Q tonight or soon? Uh, we, yeah, I think in the next 30.

Stan: Midway to construction, we were able to buy three houses fin.

Stan: Finished off the rectangles, so it's a clear rectangle.

Stan: Well that makes that parking lot a little bigger than it was before so theres. Some additional curbing and asphalt thing that wasn't covered in the construction reserve number and will be paid for separately, but it's not a big number that's that's sort of thing you run into.

Stan: So.

Stan: Got it you guys think you file the Q Tonight or.

Stan: Jim.

Stan: We.

Speaker Change: Yeah, I think in the next 30, that's the goal.

Stan: That's the goal. Watch for it. If you have a really boring night ahead, David, you'll have that reading for you. Thanks very much. Congratulations again. Thank you. Thank you. All right. We're done? Yeah.

Stan: Watch for it if I if you have a really boring neither had David you'll have that reading for Ya.

Stan: Thanks, very much congrats again.

Speaker Change: Okay. Thank you alright, well that yeah, I'm going to wrap it up there. Thank you.

Stan: You want to wrap it up, Dan? Everybody, I would actually urge you to get to these places if you can, because they speak for themselves. When you walk into Chamonix, you go, Oh, my gosh. Actually, when you pull up to Chamonix, you say, Oh, my gosh. Whereas in Waukegan, when you pull up to it, you say, "This looks like a public works garage." And then when you walk in, it's surprising. And even for me, sometimes I stopped in there on a weeknight, two or three weeks ago, and I walked in, and the place was surprisingly busy on a Wednesday night.

Stan: And I was replacement to actually visit these things once in a while, so both for us running it and for you guys investing in it. Anyway, thank you very much for your support, and we'll see you in a couple months. Thank you. This concludes today's teleconference. You may disconnect your lines at this time.

Stan: Everybody if you I would actually urge you to get to these places if you can.

Stan: And because they they.

Stan: Speak for themselves. So when you walk into Germany, you go Oh My gosh.

Stan: Actually when you pull up to Chamonix, you say Oh my gosh.

Stan: Whereas in Waukegan, when you pull up to it you say this looks like a public works for US and then when you walk in it's surprising and and even for me sometimes they stepped in there on a weeknight.

Stan: Two or three weeks ago, and I walked in and the placement of surprisingly busy. Unlike a Wednesday night and I was like Okay. That's that's nice to see so it is there is there is.

Stan: No.

Stan: Replacement to actually visiting these things once in a while so both both for US running it in for you guys investing in it so.

Stan: Anyway. Thank you very much for your support and we'll see you in a couple of months.

Stan: Yeah.

Stan: Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.

Stan: [music].

Stan: Hum.

Stan: Hum.

Operator: Thank you for your participation. © The Full House Resorts Inc. [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? Thanks for watching! and Full House Resorts Inc. © The Full House Resorts Inc. [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? Thanks for watching! [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? [inaudible] ?? ?? ?? ?? Go to www. FullHouseResorts.com to learn more. ?? ?? ?? Thanks for watching! [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? © The Full House Resorts Inc. [inaudible] ?? ?? ?? ??

Stan: Okay.

Stan: Hmm.

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