Q2 2024 Century Casinos Inc Earnings Call

August 8, 2024

Speaker Change: Good day everyone and welcome to the Century Casinos Q2 2024 earnings call. At this time all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question and answer session.

Operator: At this time, all participants are not listening only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask questions at any time by pressing the start and one on your telephone keypad. You may withdraw your question by pressing Start to.

You may register to ask questions at any time by pressing the star and 1 on your telephone keypad. You may withdraw your question by pressing star 2. Please note that this is being recorded and I will be standing by should you need any assistance.

Operator: You may withdraw your question by pressing star 2. It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead.

Operator: Please note this is recorded and it will be sent in by should you need any assistance.

Operator: It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead.

Operator: Please ask your question by pressing star 2. Please note this is being recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead.

It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead.

Peter Hoetzinger: Good morning, everyone, and thank you for joining our earnings call. After our prepared remarks, we will open the call for your questions. My co-CO, Erwin Haitzmann, our CFO, Margaret Stantial, will join me for that.

Peter Hoetzinger: Good morning, everyone, and thank you for joining our earnings call. After our prepared remarks, we will open the call to your questions.

Peter Hoetzinger: Good morning, everyone, and thank you for joining our earnings call.

Peter Hoetzinger: My co-CEO, Erwin Haitzmann, and our CFO, Margaret Stapleton, will join me for that. Before we get started, we would like to remind you that we will be discussing forward-looking information, which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statement as a result of new information, future events, or otherwise. We provide a discussion of the risk factors in our SEC filings and encourage you to review these filings.

Speaker Change: After our prepared remarks, we will open the call for your questions.

Peter Hoetzinger: My co-CEO Erwin Heitzman and our CFO Margaret Stapleton will join me for that.

Peter Hoetzinger: Before we get started, we would like to remind you that we will be discussing forward-looking information, which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements. Throughout our call, we will refer to several non-capital financial measures. That is disappointing, but the results were also impacted by one-time transitory issues, namely the construction disruption at some U.S. properties and the temporary closure in Poland. To dig a little deeper into the quarter, we've seen months that were not as strong as others. May was up almost 20 percent, and June was down just a little, close to flat. Looking at the segment results.

Peter Hoetzinger: Before we get started, we would like to remind you that we will be discussing forward-looking information, which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, but as a result of new information, future events are otherwise. You provide a discussion of the risk factors in our SDFilings and encourage you to review these findings. Throughout our call, we refer to several non-CAP financial measures, including but not limited to adjusted EBITAR. Reconciliation of our non-CAP measures to the appropriate GAAP measures can be found with our news releases and SDFilings, available in the Investor section of our website at CNTWIDERS.com.

Speaker Change: Before we get started, we would like to remind you that we will be discussing forward-looking information, which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements.

The company undertakes no obligation to update or revise the forward-looking statements.

Speaker Change: whether as a result of new information, future events, or otherwise.

We provide a discussion of the risk factors in our SEC filings and encourage you to review these filings.

Peter Hoetzinger: Throughout our call, we refer to several non-GAAP financial measures, including, but not limited to, adjusted EBITDA. Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings, available in the investor section of our website at cmty.com. Our 2024 second quarter results were released this morning. We delivered net revenue of $146 million, an increase of 7% over Q2 of last year. The increase came from the addition of Rocky Cap in Maryland, as well as a good performance in Canada, although offset by construction disruption, the poor performance of the Nugget in Reno, and the temporary closure of two casinos in Poland. Adjusted EBITDA was $27 million, down 6% from last year.

Throughout our call, we refer to several non-cap financial measures, including the following

Speaker Change: including, but not limited to, Adjusted EBITDA.

Peter Hoetzinger: Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings, available in the Investor section of our website at cnty.com.

Peter Hoetzinger: Our 2024 second quarter results were released this morning. We delivered net revenue of 146 million and increased of 7% over 2-2 of last year. The increase came from the addition of Rocky Gap in Maryland, as well as a good performance in Canada, upset by construction disruption, poor performance of the Nugget in Reno, and the temporary closure of two casinos in Poland. Adjusted EBITAR was 27 million, down 6% from last year. That is disappointing. Other results were also impacted by one-time transitory issues, namely the construction disruption of some US properties into temporary closure in Poland. As you have surely seen and heard from our gaming peers and from other consumer discretionary businesses, the retail customer, as well as the customers from the lower end of the database, are still relatively weak.

Peter Hoetzinger: Our 2024 second quarter results were released this morning.

Speaker Change: We delivered net revenue of $146 million, an increase of 7% over Q2 of last year.

Peter Hoetzinger: The increase came from the addition of Rocky Gap in Maryland, as well as a good performance in Canada, offset by construction disruption, the poor performance of The Nugget in Reno, and the temporary closure of two casinos in Poland.

Peter Hoetzinger: Adjusted EBITDA was $27 million, down 6% from last year.

Peter Hoetzinger: That is disappointing, but the results were also impacted by one-time transitory issues, namely the construction disruption at some U.S. properties and the temporary closure in Poland. As you've surely seen and heard from our gaming peers and from other consumer discretionary businesses, the retail customer, as well as the customers from the lower end of the database, are still relatively weak.

Speaker Change: As you have surely seen and heard from our gaming peers and from other consumer discretionary businesses,

Peter Hoetzinger: The retail customer, as well as the customers from the lower end of the database, are still relatively weak.

Peter Hoetzinger: Non-rated play was down 10% throughout our portfolio. We believe this is mostly due to macroeconomics and wallet softness in our markets. We wouldn't piece and dissipate as inflation comes down, and relieving credit markets is coming. This will begin to shift back to entertainment spend versus need spend. To take a little deeper into the quarter, we've seen months that are not as strong as others. April was pretty bad. In fact, April was responsible for all of the quarterly year of the EBITAR. May was up almost 20%; June was down just a little, close to flat. Looking at segment results, we start with the Midwest, which includes Missourian Colorado.

Peter Hoetzinger: Non-rated play was down 10% throughout our portfolio. We believe this is mostly due to macroeconomics and wallet softness in our market. We wouldn't anticipate inflation coming down, and relief in credit markets is coming.

Speaker Change: Non-rated play was down 10% throughout our portfolio.

Speaker Change: We believe this is mostly due to macroeconomics and wallet softness in our markets.

Speaker Change: We would anticipate, as inflation comes down and relief in credit markets is coming,

Peter Hoetzinger: This will begin to shift back to entertainment spend versus need spend. To dig a little deeper into the quarter, we've seen months that are not as strong as others. April was pretty bad.

Speaker Change: This will begin to shift back to entertainment spend versus need spend.

Peter Hoetzinger: In fact, April was responsible for all of the quarterly year-over-year EBITDA decline. May was up almost 20%, and June was down just a little, close to flat. Looking at segment results, we start with the Midwest, which includes Missouri and Colorado.

Peter Hoetzinger: To dig a little deeper into the quarter, we've seen months that are not as strong as others. April was pretty bad. In fact, April was responsible for all of the quarterly year-over-year EBITDA decline.

Speaker Change: May was up almost 20%.

Peter Hoetzinger: June was down just a little, close to flat.

Peter Hoetzinger: Looking at segment results, we start with the Midwest, which includes Missouri and Colorado.

Peter Hoetzinger: Revenue of that segment was up 4%, EBitar was down 5%. With the disruption we experienced at Karada in Missourian, from the development of the new land-based facility, the team delivered another strong water. And I'm happy to report that construction is progressing on budget and ahead of schedule in plans to soften and meet November already. The new property will have a total of 74 hotel rooms and over 660 gaming positions, which is a 20% increase compared to the older reports and the 50% increase compared to our current temporary location. Our new facility will transition the Karada School operation from an older report and small temporary location to a modern style land-based facility, adding significantly enhanced non-gaming amenities, expanded gaming options, and convenient parking for our guests.

Peter Hoetzinger: Revenue of that segment was up 4%, and EBITDA was down 5%. With the disruption we experienced at Coradersville, Missouri, from the development of the new land-based facility, the team delivered another strong order. And I'm happy to report that construction is progressing on budget and ahead of schedule. Plans are to soft open in mid-November already.

Peter Hoetzinger: Revenue of that segment was up 4%, EBITDA was down 5%.

Peter Hoetzinger: With the disruption we experienced at Coradersville, Missouri, from the development of the new land-based facility, the new property will have a total of 74 hotel rooms and over 660 gaming positions. In addition, slot code was found year over year, as well as the continued growth of iGaming in Pennsylvania and West Virginia. However, we do see first benefits from our efforts to attract previously untapped feeder markets, such as the DC metro area. The property has also done a good job of capturing leads to our Windows 7 database.

Speaker Change: with the disruption we experienced at corrado fil missri from the development of the new land-based facility

Speaker Change: The team delivered another strong order.

Speaker Change: And I'm happy to report that construction is progressing on budget and ahead of schedule. We plan to soft open in mid-November already.

Peter Hoetzinger: The new property will have a total of 74 hotel rooms and over 660 gaming positions, which is a 20% increase compared to the old riverboat and a 50% increase compared to our current temporary location. Our new facility will transition the Carradasville operation from an old riverboat and small temporary location to a modern-style land-based facility, adding significantly enhanced non-gaming amenities, expanded gaming options, and convenient parking for our guests. It will provide significant operational efficiencies and will increase our catchment area.

Peter Hoetzinger: The new property will have a total of 74 hotel rooms and over 660 gaming positions.

Peter Hoetzinger: which is a 20% increase compared to the old river boat and a 50% increase compared to our current temporary location.

Peter Hoetzinger: Our new facility will transition the Corralesville operation from an old riverboat and small temporary location to a modern-style land-based facility.

Peter Hoetzinger: adding significantly enhanced non-gaming amenities expanded gaming options and convenient parking for our guests

Peter Hoetzinger: It will provide significant operational efficiencies and will increase our catchment area. Expect a strong uplift on the overall performance from that property, both in revenue and EBITAR. Kitsurado, also a positive revenue trend, based on an increased player count and a higher visitation rate. The hotel we opened at the beginning of the water with an ADR higher than budgeted. The team is in the process of fine-tuning operational expenses for the hotel and F&B operations to further increase profitability. In Karada, our property in Creeple Creek continues to benefit from the new 300-room hotel that opened directly across the street from us earlier this year.

Peter Hoetzinger: it will provide significant operational efficiencies and wewill increase our catchment area

Peter Hoetzinger: Expect a strong uplift in the overall performance from that property, both in revenue and EBITDA. Keep Gerardo so a positive revenue trend, based on an increased player count and a higher visitation rate. The hotel we opened at the beginning of the quarter continues to ramp up. The number of occupied room nights increased sequentially throughout the quarter with an ADR higher than budgeted. The team is in the process of fine-tuning operational expenses for the hotel and F&B operations to further increase profitability.

Peter Hoetzinger: We expect a strong uplift on the overall performance from that property, both in revenue and EBITDA.

Peter Hoetzinger: Kip Girardo saw a positive revenue trend based on an increased player count and a higher visitation rate.

Peter Hoetzinger: In Colorado, our property in Cripple Creek continues to benefit from the new 300-room hotel that opened directly across the street from us earlier this year. Coining was up, table drop was up, and F&P revenue was also up significantly, all because there were a higher volume of visitors in town. Central City, on the other hand, suffered a bit from the hotel renovation works, which we finished in June, and from a lower-spent per trip. Our East segment includes the Mountaineer Casino Resort in West Virginia and the newly acquired Rocky Gap Casino Resort in Maryland. Because of that new acquisition, revenue of the segment was up 60%, and EPTAR almost doubled. At Mountaineer, the lower end of the database produced fewer trips as well as lower spend per trip.

Peter Hoetzinger: The hotel we opened at the beginning of the quarter continues to ramp. The number of occupied room nights increased sequentially throughout the quarter with an ADR higher than budgeted.

Speaker Change: The team is in the process of fine-tuning operational expenses for the hotel and F&B operations to further increase profitability.

Peter Hoetzinger: In Colorado, our property in Cripple Creek continues to benefit from the new 300-room hotel that opened directly across the street from us earlier this year.

Peter Hoetzinger: Coining was up, table prop was up, and F&B revenue was also up significantly, all because there is a higher volume of visitors in town. Central City, on the other hand, suffered a bit from the hotel renovation works, which we finished in June and from a lower spanned cut trip.

Speaker Change: Coin Inc. was up, Table Drop was up, and F&P Revenue was also up significantly.

Speaker Change: all because there's higher volume of visitors in town.

Peter Hoetzinger: Central City, on the other hand, suffered a bit from the hotel renovation works which we finished in June and from a lower spend per trip.

Peter Hoetzinger: Our eased segment includes the Mountain Newcastle Resort in West Virginia and the newly acquired Rocky Bed Casino Resort in Maryland. Because of that new acquisition, revenue of the segment was up 60 percent; EBITAR almost doubled. At Mountain Year, the lower end of the database produced less trips as well as lower spanned cut trips. In addition, slot code was down year-to-year. The good news is that staffing is no longer as significant challenge. We managed to keep all amenities open without labor limitations. Without the Rocky Gap, it has been impacted by a reduced number of trips as well as a noticeable decrease in ungraded play.

Peter Hoetzinger: Our East segment includes the Mountaineer Casino Resort in West Virginia and the newly acquired Rocky Gap Casino Resort in Maryland.

Speaker Change: Because of that new acquisition, revenue of the segment was up 60%, EBITDA almost doubled.

Peter Hoetzinger: At Mountaineer, the lower end of the database produced less trips as well as lower spend per trip.

Peter Hoetzinger: In addition, slot code was down year over year. The good news is that staffing is no longer a significant challenge. We managed to keep all amenities open without labor limitations.

Peter Hoetzinger: In addition, Sloth Hoard was down year over year.

Speaker Change: The good news is that staffing is no longer a significant challenge. We managed to keep all amenities open without labor limitations.

Peter Hoetzinger: Besides that, Rocky Gap has been impacted by a reduced number of trips, as well as a noticeable decrease in unrated play. Do you believe this is a combination of macro and local economics? as well as the continued growth of iGaming in Pennsylvania and West Virginia. However, we do see first benefits from our efforts to attract previously untapped feeder markets, such as the D.C. metro area. The property has also done a good job of capturing data to our Windows 7 database.

Peter Hoetzinger: Besides that, Rocky Gap has been impacted by reduced number of trips, as well as a noticeable decrease in unrated play.

Peter Hoetzinger: We believe this is a combination of metro and local economics. as well as the continued growth of eye gaming in Pennsylvania and West Virginia. However, we do see first benefits from our efforts to attract previously untapped feeder markets, such as the DC Metro area. The property has also done a good job of capturing into our winnersome database; it increased by 16% year-over-year. SD economy improves; that will be a great upside potential.

Speaker Change: You believe this is a combination of macro and local economics?

Peter Hoetzinger: as well as the continued growth of iGaming in Pennsylvania and West Virginia.

Peter Hoetzinger: However, we do see first benefits from our efforts to attract previously untapped feeder markets such as the DC metro area.

Peter Hoetzinger: It increased by 16% year-over-year, and we knew we had to deal with disruptions from innovation and refurbishment works on and around the gaming floor. But we did not forecast a 23% revenue decline. Yes, the hold on slots and tables was significantly lower compared to last year. We have appointed Eric Rose as Senior VP and General Manager of the property. With the appointment of Eric Rose to the Nuggets Top Leadership Role, and the Properties, Entertainment, and Special Events calendar for the next 12 months looks great. Moving to Canada.

Peter Hoetzinger: It increased by 16% year-over-year. As the economy improves, that will have great upside potential. Continuing to the west segment, which includes the Nugget Casino Resort in Reno, Nevada, The Nugget was the disappointment of the quarter. There's no way around it.

Speaker Change: the property has also done a good trum of capture into our winner cell database it increased by ' sixteen percent year-over-year

Speaker Change: If the economy improves, that will be a great upside potential.

Peter Hoetzinger: Continuing through the waste segment, which includes the nugget casino resort in Reno, Nevada. The nugget was the disappointment of the growth that there's no way around it. We knew we had to deal with disruptions from innovation and refurbishment works on and around the gaming floor, but we did not forecast the 23% revenue decline. Yes, the hold on slots and tables was significantly lower compared to last year. But that would only explain the small portion of that decline. So we've made some task decisions. Nucket has undergone a leadership change and is implementing right sizing and cost-card initiatives to improve its performance.

Speaker Change: Continuing to the west segment, which includes the Nugget Casino Resort in Reno, Nevada.

Peter Hoetzinger: We knew we had to deal with disruptions from innovation and refurbishment works on and around the gaming floor, but we did not forecast a 23% revenue decline. Yes, the hold on slots and tables was significantly lower compared to last year, but that would only explain a small portion of that decline. So we've made some tough decisions.

Speaker Change: The nugget was the disappointment of the quarter, there's no way around it.

Peter Hoetzinger: We knew we had to deal with disruptions from innovation and refurbishment works on and around the gaming floor.

Peter Hoetzinger: But we did not forecast a 23% revenue decline.

Speaker Change: Yes, the hold on slots and tables was significantly lower compared to last year, but that would only explain a small portion of that decline.

Peter Hoetzinger: Nucket has undergone a leadership change and is implementing right-sizing and cost-cutting initiatives to improve its performance. We have appointed Eric Rose as Senior VP and General Manager of the property. Eric is a 32-year veteran of gaming and hospitality and previously served as our VP of Operations in Colorado. His career actually began in Nevada and includes leadership roles in F&B, marketing, and as general manager.

Speaker Change: So we've made some tough decisions.

Speaker Change: Nucket has undergone a leadership change and is implementing right-sizing and cost-cutting initiatives to improve its performance.

Peter Hoetzinger: There's a point that Eric Rose, a senior VP and general manager of the property. Eric is a 32-year veteran in gaming and hospitality, and previously served as our VP of Operations in Colorado. His career actually began in Nevada, and it includes leadership roles in F&B, marketing, and as general manager. Throughout his career, Eric has proven himself as a leader dedicated to evolving outstanding hospitality, paired with exceptional financial discipline in highly competitive casino markets. With the appointment of Eric Rose to the Nuggets for a leadership role, we are finalizing the transition and integration of that property and setting it up for future success.

Peter Hoetzinger: We have appointed Eric Rose as Senior VP and General Manager of the property.

Speaker Change: Eric is a 32-year veteran in gaming and hospitality and previously served as our VP of Operations in Colorado.

Speaker Change: His career actually began in Nevada and includes leadership roles in F&B, marketing, and as general manager.

Speaker Change: Throughout his career, Eric has proven himself as a leader dedicated to evolving outstanding hospitality paired with exceptional financial discipline in highly competitive casino markets.

Peter Hoetzinger: Throughout his career, Eric has proven himself as a leader dedicated to evolving outstanding hospitality paired with exceptional financial discipline in highly competitive casino markets. With the appointment of Eric Rose to the Nugget's top leadership role, we are finalizing the transition and integration of that property and setting it up for future success. We've also upgraded the property with more than 120 new slot machines, a high-limit room, refreshes of two restaurants, a repaint of the exterior, as well as exterior and interior signage and display packages.

Speaker Change: with the appointment of eric growross to the narget stop leadership role we are finalizing their transition and integration of that property and setting up for future success

Peter Hoetzinger: We've also upgraded the property with more than 120 new slot machines, a high-limit room, refreshes of two restaurants, a repaint of the exterior, as well as exterior and interior signing and display packages. Most of the transitional, extraordinary expenses, as well as most cat-backs, and the disruption that comes with it, are behind us now. And the properties at the payment and special events calendar for the next 12 months looks great. All of that makes us optimistic that next year we'll see substantial improvement and show the Nuggets' full potential.

Speaker Change: We've also upgraded the property with more than 120 new slot machines, a high-limit room, refreshes of two restaurants, a repaint of the exterior, as well as exterior and interior signing and display packages.

Peter Hoetzinger: Most of the transitional, extraordinary expenses, as well as most cutbacks and the disruption that comes with them, are behind us now, and the Properties, Entertainment, and Special Events calendar for the next 12 months looks great. All of that makes us optimistic that next year we'll see substantial improvement and show the markets full potential. Moving to Canada.

Speaker Change: most of the traditional extraordinary expenses as well as most capex and the disruption that comes with it are behind us now

Peter Hoetzinger: And the Properties, Entertainment and Special Events calendar for the next 12 months looks great.

Peter Hoetzinger: All of that makes us optimistic that next year we'll see substantial improvement and show the markets full potential.

Peter Hoetzinger: Moving to Canada, revenue in Canada grew by 5%, and EB-DAR was up 7%. All of our operations in Alberta delivered a solid performance in line with our expectations. During the quarter, we saw strength from our core customer segment and continued stability in retail play across the Edmonton and Calgary regions. In Poland, two casinos were still closed during the quarter. One of which is a very important one in the city of Rodsloth, which resulted in a significant drop in revenue. That's casino and Rothschild has been realized since already, and will be up and running again in October.

Peter Hoetzinger: Revenue in Canada grew by 5%, and EBITDA was up 7%. Additionally, all four of our operations in Alberta delivered a solid performance in line with our expectations. During the quarter, we saw strength from our core customer segment and continued stability in retail play across the Edmonton and Calgary regions. In Poland, two casinos were still closed during the quarter, one of which is a very important one in the city of Wroclaw, which resulted in a significant drop in revenues.

Peter Hoetzinger: Revenue in Canada grew by 5%, and EBITDA was up 7%. During the quarter, we saw strength from our core customer segment and continued stability in retail play across the Edmonton and Calgary regions. Two casinos were still closed during the quarter, one of which is a very important one in the city of Wroclaw, which resulted in a significant drop in revenues.

Peter Hoetzinger: Moving to Canada.

Peter Hoetzinger: Revenue in Canada grew by 5% and EBITDA was up 7%.

Peter Hoetzinger: All four of our operations in Alberta delivered a solid performance in line with our expectations.

Speaker Change: during the quarter resaw strength from our quar customer segment and continued stability in retail play across the admonment calgory regions

Peter Hoetzinger: poland

Peter Hoetzinger: Two casinos were still closed during the quarter, one of which is a very important one in the city of Wroclaw, which resulted in a significant drop in revenues.

Peter Hoetzinger: The DeskCasino in Wroclaw has already been relicensed and will be up and running again in October. As indicated in our last earnings call, after the reopening, we expect to get back to normal levels quite quickly, and that's around $12 million in annual EBITDA. The sales process is also progressing well; there is new momentum, with additional parties having expressed serious interest over the last couple of months. With that in mind, let's discuss our balance sheet and liquidity position.

Peter Hoetzinger: DeskCasino in Wroclaw has been re-licensed already and will be up and running again in October .

Peter Hoetzinger: I've indicated in our last earnings call, after the reopening, we expect to get back to normal levels quite quickly, and that's around 12 million in annual EBITARA. The sales process is also progressing well. There's new momentum, with additional parties having expressed serious interest over the last couple of months.

Peter Hoetzinger: As indicated in our last earnings call, after the reopening, we expect to get back to normal levels quite quickly, and that's around $12 million in annual EBITDA. The main reasons for the decrease in our cash position versus the end of last year are the cash payments of $12 million for taxes on our Canada real estate sale, a $4 million one-time principal paydown of debt, and Lee's adjusted net leverage is 6.5 times.

Peter Hoetzinger: As indicated in our last earnings call, after the reopening, we expect to get back to normal levels quite quickly, and that's around $12 million in annual EBITDA.

Speaker Change: the saalfe process is also progressing well there s new momentum with additional parties having expressed curious interest over the last couple of months

Peter Hoetzinger: With that, let's discuss our balance sheet eligibility position. We ended the quarter with 123 million cash and cash equivalence, and 342 million in outstanding debt, resulting in net debt of 219. The main reason for the decrease in our cash position was at the end of last year, are the cash payments of 12 million for taxes on our Canada read-a-state sale, a 4 million one-time principal pay-down of debt, as well as a 34 million investment in property and equipment. Traditional net leverage is 4.6 times, and leads a trusted net leverage is 6.5 times. The leverage is elevated because of our recent acquisitions and investments.

Peter Hoetzinger: We ended the quarter with $123 million in cash and cash equivalents and $342 million in outstanding debt, resulting in net debt of $219. The main reasons for the decrease in our cash position versus the end of last year are the cash payments of $12 million for taxes on our Canada real estate sale, a $4 million one-time principal paydown of debt, as well as a $34 million investment in property and equipment. Traditional net leverage is 4.6 times, and Lee's Adjusted Net Leverage is 6.5 times.

Peter Hoetzinger: With that, let's discuss our balance sheet and legality position. We ended the quarter with $123 million in cash and cash equivalents and $342 million in outspending debt.

Peter Hoetzinger: resulting in net debt of $219.

Peter Hoetzinger: the main reason for the decrease in our cash position was at the end of last year other cash payments of twelve million for tax on our canada real estate sale

Peter Hoetzinger: A $4 million one-time principal pay-down of debt.

Peter Hoetzinger: as well as a thirty-four midd investment in property and equipment

Speaker Change: Traditional net leverage is 4.6 times.

Peter Hoetzinger: The leverage is elevated because of our recent acquisitions and investments, and it will stay above the long-term range until we have the casinos in Poland and the land-based facility in Kratos will open, as we look to deliver about three times traditional and less than five times these adjusted for next year. We have no debt maturities until 2029, and with additional borrowing capacity of $30 million under our rewards. And as soon as the window opens, we want to act on it and improve our terms.

Peter Hoetzinger: The average is elevated because of our recent acquisitions and investments, and it will stay above the long-term range until we have the casinos in Poland and the land-based facility in Kratos opens. But from then on, it should ramp down quite quickly, as we look to deliver about three times traditional and less than five times these adjusted for next year. We have no debt maturities until 2029, and with additional borrowing capacity of $30 million under our rewards, you can reprice or refinance our entire term loan at any time without penalty.

Peter Hoetzinger: and Lee's Adjusted Net Leverage is 6.5 times. The leverage is elevated because of our recent acquisitions and investments.

Peter Hoetzinger: To stay above the long-term range, until we have the casinos in Poland and the late-day specificities in Corridors will open. But from then on, it should rank down quite quickly, as we look to 11, 2.3 times, traditional, and less than 5 times, leads adjusted for next year. We have no debt maturity until 2020-09, and with additional foreign capacity of 30 million under our order.

Peter Hoetzinger: Stay above the long-term range until we have the casinos in Poland and the light-based facility in Corvadas will open.

Peter Hoetzinger: But from then on, it should ramp down quite quickly as we look to deliver to about three times traditional and less than five times these adjusted for next year.

Peter Hoetzinger: We have no debt maturities until 2029, and we have an additional borrowing capacity of $30 million under our rules.

Peter Hoetzinger: We can reprise the refinance of our entire term loan at any time without penalty, and as soon as the window opens, we want to act on it and improve our terms. Turning to CapEx. During the quarter, we remain committed to strategically investing and offering new amenities to our guests, to our existing locations, in order to drive future incremental visitation and spend. I'm glad to report that we are nearing the end of our elevated CapEx program, as we are finishing several projects in the second half of this year for approximately 13 million. Expect these to be solid investments over the medium and long-term, and to move beyond the disruption challenges the properties had to deal with.

Peter Hoetzinger: we can reprice the refinance our entire term alonean at any time our penalty

Peter Hoetzinger: And as soon as the window opens, we want to act on it and improve our terms, turning to CapEx. During the quarter, we remained committed to strategically investing and offering new amenities to our guests at our existing locations in order to drive future incremental visitation and spend. I'm glad to report that we are nearing the end of our elevated Catholics program, as we are finishing several projects in the second half of this year for approximately 13 million.

Peter Hoetzinger: And as soon as the window opens, we want to act on it and improve our terms.

Peter Hoetzinger: During the quarter, we remained committed to strategically investing and offering new amenities to our guests at our existing locations in order to drive future incremental visitation and spending. For next year, we expect total capex to come down sharply to about $12 million, setting the stage for a substantial increase in free cash flow. We'll see that increase in cash flow from the casino reopening in Poland in October and the Carusoil opening in mid-November onward.

Peter Hoetzinger: Turning to CapEx.

Speaker Change: I'm glad to report that we are nearing the end of our Elevated Catholics program.

Peter Hoetzinger: as we are finishing several projects in the second half of this year for approximately $13 million.

Peter Hoetzinger: I expect these to be solid investments over the medium and long term and look forward to moving beyond the disruption challenges the properties had to deal with. For next year, we expect total capex to come down sharply to about 12 million, setting the stage for a substantial increase in free cash flow. We'll see that increase in cash flow from the casino reopening in Poland in October and the Kratosville opening in mid-November onward.

Peter Hoetzinger: Expect these to be solid investments over the medium and long term and look forward to moving beyond the disruption challenges the properties had to deal with.

Peter Hoetzinger: For next year, expect total CapEx to come down sharply to about 12 million, setting the stage for a substantial increase in free cash flow. We'll see that increase in cash flow from the casino reopening in Poland in October, and the carados will opening in bit November onwards. Cash flow will be improving substantially from revenue growth to improve facilities, as well as from the major reduction capex. The presentation posted on our website today shows you the bridge from negative cash flow this year to the positive cash generation of a dollar per share in 2020.

Peter Hoetzinger: for next year we expect total capex to come down sharply to about twelve year

Peter Hoetzinger: setting the stage for a substantial increasing free cash flow

Peter Hoetzinger: We'll see that increase in cash flow from the Casino Reopening in Poland in October and the Carusoil Opening in mid-November onwards.

Peter Hoetzinger: Cash flow will be improving substantially from revenue growth due to the improved facilities as well as from the major reduction in cash back. The presentation posted on our website today shows you the bridge from negative cash for this year to the positive cash generation of a dollar per share in 2025. Shifting our outlook for the remainder of this year and next. Given the performance in the first half of this year, we are now projecting 2024 revenues of $602 million, and trusted EBITDA is in the range of $105 to $115 million for 2025.

Peter Hoetzinger: Cashflow will be improving substantially from revenue growth due to the improved facilities, as well as from the major reduction in capex.

Peter Hoetzinger: The presentation posted on our website today shows you the bridge from negative cash flow this year to positive cash generation of a dollar per share in 2025. As we look ahead, we are confident in our business prospects moving forward.

Peter Hoetzinger: The presentation posted on our website today shows you the bridge from negative cash for this year to the positive cash generation of a dollar per share in 2025.

Peter Hoetzinger: Shifting outlook for the remainder of this year and next. Given the performance in the first part of this year, we are now projecting 2024 revenues of $600,000,000,000 and adjusted EBITDAR in the range of $100,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 and adjusted EBITDAR between $150,000 and $160,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000000,000,000,000,000,000,000,000,000,000,000,000,000000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 Okay, now let me start like that Alberta is performing captionally well and we're totally happy with it. We expect that to continue both for the remainder of this year as well as for next year. And in Poland, which you cannot see in the numbers, we're also very comfortable. But let me just give you one number here.

Peter Hoetzinger: lo

Peter Hoetzinger: shifting our outlook for the remainder of tyearand next

Peter Hoetzinger: Given the performance in the first half of this year, we are now projecting 2024 revenues of $602 million and adjusted EBITDAR in the range of $105 to $115 million.

Peter Hoetzinger: VC revenues between $650 and $675 million and Adjusted EBITDA between $150 and $160 million. As we look ahead, we are confident in our business prospects moving forward. On the expense and labor side, we will focus on operational discipline and continue to look for ways to become more efficient, especially at the nuggets. Again, we are still in a transitory period, but we have a clear plan to focus on generating cash to de-leverage and opportunistically buy back stock later this year and next.

Peter Hoetzinger: For 2025, we see revenues between $650 and $675 million, and adjusted EBITDA between $150 and $160 million.

Peter Hoetzinger: As we look ahead, we are confident in our business prospects moving forward.

Peter Hoetzinger: On the expense and labor side, we will focus on operational discipline and continue to look for ways to become more efficient, especially at the nugget.

Peter Hoetzinger: Again, we are still in a transitory period, but we have a clear plan to focus on generating cash to de-leverage and opportunistically also buy back stock later this year and next.

Peter Hoetzinger: I want to reiterate our enthusiasm, especially for next year. We see results and free cash flow improving significantly once we have the Polish casinos and corrals open in just a few months from now. That concludes our prepared remarks. We now open the call for Q&A. Operator, go ahead, please.

Operator: Thank you. And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw your question by pressing star 2. Once again, to ask a question, please press the star and 1 on your telephone keypad. Stantial, if it's C4, please go ahead.

Speaker Change: That concludes our prepared remarks. We now open the call for Q&A. Operator, go ahead, please.

Operator: Thank you. And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad.

Speaker Change: you may withdraw your questions like everything start to

Operator: Once again, to ask a question, please press the star and 1 on your telephone keypad. I will take our first question from Jeff.

Jeffrey Stantial: Hey, good morning, everyone. Thanks for taking our questions. Maybe starting off here on the revisions to 2024 and 2025 revenue and margin expectations that you just walked through towards the end there. Could you just spend a minute sort of walking through some of the changes to the assumptions? It sounds like, based on your commentary, that Nugget Casino and some of the stabilization work under there are the primary driver. But if you can just kind of walk through each of the drivers and maybe how much they contributed to the revenue revisions, that would be helpful as well. Thanks.

Stantial: Stantial, if it's C4, please go ahead.

Speaker Change: Hey, good morning, everyone. Thanks for taking our questions. Maybe starting off here on the revisions to 2024,

Operator: and 2025 revenue and margin expectations, Peter, that you just walked through towards the end there. You know, can you just spend a minute sort of walking through...

Speaker Change: some of the changes to the assumptions. It sounds like based on your commentary that Nugget Casino and some of the stabilization work under theirs is the primary driver, but if you can just kind of walk through, you know, each of the drivers and maybe how much they contributed to the revenue revisions, that would be helpful as well. Thanks.

Operator: Thanks, Chet. Peter, can you say something about that, or would you like me to?

Speaker Change: thanks chck peter can you say something to that to would you like me too

Peter Hoetzinger: You know, it's, it's, it's. It's mostly Nugget and Poland.

Peter Hoetzinger: You know, it's, it's, it's. It's mostly Nugget and Poland, but others as well, and with that, back to you, Erwin.

Peter Hoetzinger: tryand

Peter Hoetzinger: Yeah, it's...

Peter Hoetzinger: It's mostly Nugget and Poland, but the others as well, and with that back to you, Erwin.

Erwin Haitzmann: Yeah, I mean, we don't have it property by property in terms of Marching Improvement, Peter Hoetzinger. I don't know. Would you like us to go through it property by property, or what exactly are you looking for?

Speaker Change: yesi mean we don't have it property by property in terms of

Speaker Change: of marchin improvements i don't know i would you like us to go through its property by property or how about what isexactly looking for

Jeffrey Stantial: I think a rank order of which properties are lagging in our expectations and how that contributes to the forecast revisions would be great, and if not, we could also follow up offline.

Peter Hoetzinger: I think rank order of which properties are lagging in our expectations and how that contributes to the forecast revisions would be great, and if not, we could also follow up offline.

Peter Hoetzinger: Okay, now let me start like this. Alberta is performing exceptionally well, and we're totally happy with it. We expect it to continue both for the remainder of this year as well as for next year. And in Poland, which you cannot see in the numbers, we're also very comfortable. Let me just give you one number here.

Erwin Haitzmann: Okay, now let me start like this. Alberta is performing exceptionally well, and we're totally happy with it. We expect it to continue both for the remainder of this year as well as for next year. And in Poland, which you cannot see in the numbers, we're also very comfortable. Let me just give you one number here.

Peter Hoetzinger: Okay, now let me start like that, Alberta is performing exceptionally well and we're totally happy with it. We expect it to continue both for the remainder of this year as well as for next year.

Peter Hoetzinger: And in Poland, which you cannot see in the numbers,

Erwin Haitzmann: If we're looking at names to save comparison of the EBITAR of Merriott Hilton and the Lodge Casino for Q2, then if you only take those three casinos and compare Q2 of 24 with Q2 of 23, EBITAR is up plus 71%. As I say, you don't see that because some of the casinos are closed, but once we're open again, like Peter said earlier, we expect that to contribute with Trace Millen in EBITAR again, like it did in the past. Moving maybe from east to west geographically at a rocky gap, we did a few things that we think are very beneficial for the coming quarter since for next year.

Peter Hoetzinger: If we're looking at same-store sales comparisons of Ibitar, Marriott, Hilton, and the Lodge Casino for Q2, then if you only take those three casinos and compare Q2 of 24 with Q2 of 23, Ibitar is up plus 71%. As I say, you don't see that because some of the casinos are closed, but once we're open again, like Peter said earlier, we expect that to contribute 12 million to Ibitar again, like it did in the past. The product of the Hotel Casino Resort is doing very well.

Erwin Haitzmann: If we're looking at the same-store sales comparison of the Ibitar at Marriott Hilton and the Lodge Casino for Q2, then if you only take those three casinos and compare Q2 of 24 with Q2 of 23, Ibitar is up plus 71%. As I say, you don't see that because some of the casinos are closed, but once we're open again, like Peter said earlier, we expect that to contribute 12 million to Ibitar again, like it did in the past.

Speaker Change: Let me just give you one number here. If we're looking at same-store sales comparison of the EBITDA of Marriott Hilton and the Lodge Casino for Q2.

Peter Hoetzinger: then if you only take those three casinals and compare q two of twenty four with q of twenty three eitarriis up plus seventy-one percent

Peter Hoetzinger: As I say, you don't see that because some of the casinos are closed, but once we are open again, like Peter said earlier, we expect that to contribute with Trails Million and Ibitar again, like it did in the past.

Erwin Haitzmann: Moving maybe from east to west geographically, at Rocky Gap, we did a few things that we think are very beneficial again for the coming quarters and for next year. One of them is that we have introduced a beach. We got the permission to use part of the lake in front of our hotel as a beach, and we have a few cabanas, and that just rounds up the product of the Hotel Casino Resort very well.

Speaker Change: Moving maybe from east to west geographically, at Rocky Gap, we did a few things that we think are very beneficial again for the coming quarters and for next year.

Erwin Haitzmann: One of them is that we have introduced the beach. We got the permission to use a part of the lake in front of our hotel as a beach, and with a few cabanas, they just round up the product of the hotel casino resort very well. In Rocky Gap, we are mainly waiting for a cutting interest rate and for a change in the economic consumers' attitudes. The reason why we were hurt in the rocky gap mainly is because we lost the revenue mainly in our uncarded play, and the uncarded players typically are coming from a reach between 820 miles or so.

Speaker Change: One of them is that we have introduced a beach. We got the permission to use part of the lake in front of our hotel as a beach and we have a few cabanas and that just rounds up the...

Speaker Change: the product of the hotel casino resort very well in rockyket we are mainly waiting for a cting interest rates and for a change in economic

Peter Hoetzinger: In Rocky Gap, we are mainly waiting for a cut in interest rates and for a change in the economy, and for a change in the consumer's attitudes. The reason why we were hurt in Rocky Gap mainly is because we lost revenue mainly in our uncarded play, and the uncarded players typically are coming from a radius of 20 miles or so, and you have to know that the average household income of the area is about half of the average household income in Maryland.

Erwin Haitzmann: In Rocky Gap, we are mainly waiting for a cut in interest rates and for a change in the economy, and for a change in the consumer's attitudes. The reason why we were hurt in Rocky Gap mainly is because we lost revenue mainly in our uncarded play, and the uncarded players typically are coming from a radius of 20 miles or so, and you have to know that the average household income of the area is about half of the average household income in Maryland. And that's something that I'm sure you've heard before from others, that at the lower end of the database, this is where we're typically suffering. Thank you very much. Mountaineer is a similar picture.

Peter Hoetzinger: consumers attitudes the reason why hur in rocyket mainlyis because

Peter Hoetzinger: We lost the revenue mainly in our uncarded play, and the uncarded players typically are coming from a reach between 8-20 miles or so.

Erwin Haitzmann: You have to know that every household income of the area there is about half of the average household income of Maryland. That's something that I'm sure you've heard before from other states, and the lower end of the database, this is where we are typically suffering. Mountain year is a similar picture. The erosion came from the higher market and also from the mid and mid here and below. When it comes to Cape Sherado and Caradasville, we had increases in revenue of 6.7 percent in Cape Sherado and 0.4 percent in Caradasville, in spite of the fact that we're still in this very tight and small in terms casino, just waiting to open the new one.

Peter Hoetzinger: And you have to know that the average household income of the area there is about half of the average household income of Maryland.

Peter Hoetzinger: And that's something that I'm sure you've heard before from others, that in the lower end of the database, this is where we're typically suffering. When it comes to Cape Girardeau and Carradersville, we had increases in revenue of 6.7% in Cape Girardeau and 0.4% in Carradersville in spite of the fact that we're still in this very tight and small interim casino, just waiting to open a new one. As far as Cripple Creek is concerned, on the toll gate side, we think that that's the most difficult one with regard to upside as it stands.

Peter Hoetzinger: And that's something that I'm sure you've heard before from others, that in the lower end of the database, this is where we're typically suffering.

Erwin Haitzmann: The erosion came from the Ohio market and also from the mid-tier and below. When it comes to Cape Girardeau and Carradasville, we had increases in revenue of 6.7% in Cape Girardeau and 0.4% in Carradasville, in spite of the fact that we're still in this very tight and small interim casino, just waiting to open a new one. We see that with the hotel that we open in Cape Girardeau and with the one that we will open in Corradoville, we will be able to expand our reach, and that will certainly be beneficial for the numbers we are convinced to see in the second half of 2024 as well as in 2025. As far as Cripple Creek is concerned, on the toll gate side, we think that that's the most difficult one with regard to upside as it stands.

Speaker Change: Mountaineer is a similar picture. The erosion came from the Ohio market and also from the mid and mid-tier and below.

Operator: Later you will have the opportunity to ask questions during the question and answer session. You may register to ask questions at any time by pressing the start and one on your telephone keypad. You may withdraw your question by pressing start to.

Peter Hoetzinger: when it comes to

Speaker Change: ca sureado and kt swiz we were increases

Peter Hoetzinger: in revenue, 6.7% in Cape Girardeau and 0.4% in Carradosville in spite of the fact that we're still in this very tight and small interim casino, just waiting to open a new one.

Operator: Please note this in recorded and it will be sent in by should you need any assistance.

Operator: It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead.

Erwin Haitzmann: We see that with the hotel that we open in Cape Sherado and with the one that we will open in Caradasville, we will be able to expand our reach and that will be certainly beneficial for the numbers we are convinced to see in the second half of 24 as well as in 25.

Peter Hoetzinger: We see that with the hotel that we open in Cape Girardeau and with the one that we will open in Corradoville.

Peter Hoetzinger: Good morning everyone and thank you for joining our earnings call. After our prepared remarks we will open the call for your questions. My co-CO Erwin Haitzmann, our CFO, Margaret Stantial, will join me for that. Before we get started, we would like to remind you that we will be discussing forward-looking information which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, but as a result of new information, future events are otherwise.

Speaker Change: We will be able to expand our reach.

Peter Hoetzinger: And that will be certainly beneficial for the numbers we're convinced to see in the second half of 2024 as well as in 2025.

Erwin Haitzmann: As far as critical is concerned, on the toll gate side, we think that that's the most difficult one with regard to upside, as it stands, really only ones that drive the market here in Central City. There is nobody really that is helping the traffic there, but we think that to the fact that we have the prime position together with our parking garage right in the center of Central City, this will be a market where we will be able to hold a stable 4 to 5 million in EBITDA. Coming to critical, on the other hand, the effect of the new 300 room hotel, as Peter mentioned, has been positive; we have very positive spillover effects, and we think that we will continue also for the foreseeable future.

Peter Hoetzinger: as faras crypical quick is concerned on the to tal head side we think that that's the most difficult one we to got to upside as it stands

Peter Hoetzinger: We're the only ones that drive the market here in Central City; there is nobody really that is helping the traffic there, but we think that due to the fact that we have the prime position, together with our parking garage right in the center of Central City, this will be a market where we will be able to hold a stable 4 to 5 million in EBITDA. Which leads us back to the nugget, where I think it's really important. This is the place where we have made and will continue to make the most significant changes.

Erwin Haitzmann: We're the only ones that drive the market here in Central City; there is nobody really that is helping the traffic there, but we think that due to the fact that we have the prime position, together with our parking garage right in the center of Central City, this will be a market where we will be able to hold a stable 4 to 5 million in EBITDA. Coming to Kruppelkrieg, on the other hand, the effect of the new 300-room hotel, as Peter mentioned, has been positive.

Peter Hoetzinger: We're the only ones that drive the market here in Central City, there is nobody really that is helping the traffic there.

Peter Hoetzinger: You provide a discussion of the risk factors in our SDFilings and encourage you to review these findings. Throughout our call, we refer to several non-CAP financial measures, including but not limited to adjusted EBITAR. Reconciliation of our non-CAP measures to the appropriate GAP measures can be found with our news releases and SDFilings, available in the Investor section of our website at CNTWIDERS.com.

Peter Hoetzinger: But we think that due to the fact that we have the prime position together with our parking garage right in the center of central city, this will be a market where we will be able to hold a stable 4 to 5 million in EBITDA.

Speaker Change: coming for ququiickly quick on the other hand the detect of the the new three hundred a trum modeileil as peter mentioned has been positive we have very positive pillow way effect and we think that will will continue also for the proced future

Erwin Haitzmann: We have had very positive spillover effects, and we think that will continue for the foreseeable future. Which leads us back to the Nugget, where I think it's really, this is the place where we have made and will continue to make the most significant changes. We believe there is still a lot of upside in the detail, and we are fully motivated, together with the new GM, Eric Rose, to put that into action from now on, hopefully seeing results soon.

Erwin Haitzmann: Which leaves us coming back to the market, where I think it's really that this is the place where we have made and will continue to make the most significant changes. We believe there is still a lot of upside in the detail, and we are fully motivated together with the new GM, Eric Rose, to put that into action from now on, hopefully seeing results soon. One thing to know is when you look at the second quarter is that the main reason for the significant reduction in revenues is that last year we had significantly more conventions and executions booked, so our group sales in 24 was significantly less than last year.

Peter Hoetzinger: Which leads us, coming back to the nugget, where I think it's really, this is the place

Peter Hoetzinger: have made and will continue to make the most significant changes.

Peter Hoetzinger: We believe there is still a lot of upside in the detail, and we are fully motivated, together with the new GM, Eric Rose, to put that into action from now on, hopefully seeing results soon. One thing to know when you look at the nugget second quarter is that the main reason for the significant reduction in revenues is that last year we had significantly more conventions and exhibitions booked, so our group sales in 24 were significantly less than last year.

Peter Hoetzinger: we believe there is still a lot of weupside in the detail and we are fully in motivated together with the new gm area growth

Peter Hoetzinger: to put it into action from now

Erwin Haitzmann: One thing to know when you look at the Nugget second quarter is that the main reason for the significant reduction in revenues is that last year we had significantly more conventions and exhibitions booked, so our group sales in 24 were significantly less than last year. Now, with conventions and exhibitions, this is not something that you can plan or work on for the next, for the current year, for the next year, because most of the conventions and exhibitions are planned two, three years ahead, so the week's calendar for this year was not a result of our work, because when we came in, the plans, the sales were in 26, 27, and so on, so we had to live with what we inherited, so Is that something like an overview that would be helpful for you? That was extremely helpful and thorough.

Peter Hoetzinger: 'll put a singuishides soon

Peter Hoetzinger: wanting to to know is when you look at the narget second quarterters that we the main reason for for the significant

Peter Hoetzinger: Other results were also impacted by one-time transitory issues, namely the construction disruption of some US properties into temporary closure in Poland. As you have surely seen and heard from our gaming peers and from other consumer discretionary businesses, the retail customer, as well as the customers from the lower end of the database, are still relatively weak. Non-rated play was down 10% throughout our portfolio. We believe this is mostly due to macroeconomics and wallet softness in our markets.

Peter Hoetzinger: reduction in revenues is that last year we had significantly more conventions and exhibitions booked so our group sales in 24 was significantly less than last year. Now with conventions and exhibitions this is not something that you can plan or work on for the next for the running year for the next year because most of the conventions and

Erwin Haitzmann: Now, with conventions and executions, this is not something that you can plan or work on for the next running year, for the next year, because most of the conventions and executions are planned two, three years ahead. So the weak calendar of this year was not a result of our work, because when we came in, the plans that the sales were in 26, 27 or so. So we had to live with what we inherited, so to speak.

Peter Hoetzinger: Now, with conventions and exhibitions, this is not something that you can plan or work on for the next, for the current year, for the next year, because most of the conventions and exhibitions are planned two, three years ahead, so the week's calendar for this year was not a result of our work, because when we came in, the plans, the sales were in 26, 27, and so on, so we had to live with what we inherited, so Is that something like an overview that would be helpful for you?

Peter Hoetzinger: and exhibitions are planned two or three years ahead. So, the week's calendar of this year was not a result of our work, because when we came in, the sales were in 26, 27 or so, so we had to live with what we inherited, so to speak.

Peter Hoetzinger: We wouldn't piece and dissipate as inflation comes down and relieving credit markets is coming. This will begin to shift back to entertainment spend versus need spend. To take a little deeper into the quarter, we've seen months that are not as strong as others. April was pretty bad. In fact, April was responsible for all of the quarterly year of the EBITAR. May was up almost 20%, June was down just a little, close to flat Looking at segment results, we start with the Midwest which includes Missourian Colorado.

Erwin Haitzmann: Is that something like an overview that is helpful for you? That was extremely helpful, and Thara, thank you for all of that color.

Peter Hoetzinger: Is that something like an overview that is helpful for you?

Unnamed Analyst: That was extremely helpful and thorough. Thank you, Aaron, for all of that color.

Jeffrey Stantial: That was extremely helpful and thorough. Thank you Aaron for all of that color.

Peter Hoetzinger: If I could just ask one more question, maybe for Peter with this one, I heard your commentary towards the end regarding some potential opportunistic buyback as CapEx rolls off and we get into the back half and into early 2025. At the same time, there are rumors; we'll see how credible, but there are rumors of potential large scale M&A amongst some of your competitors. Were those two materialized, that would likely result in some potential of the vestitures to satisfy antitrust? I guess, how do you think about balancing continued balance sheet improvement and getting to the point where you could be opportunistic if something came along versus taking advantage of some of the dislocation in the stock as we're staring at it at 2:30 today?

Unnamed Analyst: If I could just ask one more question, maybe for Peter on this one. I heard your commentary towards the end regarding some potential opportunistic buybacks as CapEx rolls off and we get into the back half and into early 2025. At the same time, Peter, there are rumors, we'll see how credible, but there are rumors of potential large-scale M&A amongst some of your competitors. Were those to materialize, that would likely result in some potential divestitures to satisfy antitrust, I guess. How do you think about this?

Peter Hoetzinger: If I could just ask one more question, maybe for Peter on this one. I heard your commentary towards the end regarding some potential opportunistic buybacks as CapEx rolls off and we get into the back half and into early 2025. At the same time, Peter, there are rumors, we'll see how credible, but there are rumors of potential large-scale M&A amongst some of your competitors. Were those to materialize, that would likely result in some potential divestitures to satisfy antitrust, I guess.

Unnamed Analyst: That was extremely helpful and thorough. Thank you, Aaron, for all of that color. If I could just ask one more question, maybe for Peter with this one. I heard your commentary towards the end regarding some potential opportunistic buybacks.

Unnamed Analyst: CapEx rolls off and we get into the back half and into early 2025. You know, at the same time, Peter, there are rumors, we'll see how credible, but there are rumors of potential large-scale M&A amongst some of your competitors. Were those to materialize, that would likely result.

Speaker Change: and some potential divestitures to satisfy antitrust, I guess.

Peter Hoetzinger: How do you think about balancing continued balance sheet improvement and getting to the point where you could be opportunistic if something came along versus, you know, taking advantage of some of the dislocation in the stock as we're, you know, staring at $2.30 today? That would be great. Thank you.

Peter Hoetzinger: you know, balancing continued balance sheet improvement and getting to the point where you could be opportunistic if something came along versus, you know, taking advantage of some of the dislocation in the stock. I guess we're, you know, staring at 230 today. I think that would be great. Thank you.

Peter Hoetzinger: That way, Clara, that would be great. Thank you. We go ahead, Peter. Yeah, I mean, we don't, it's pretty simple for us at this stage. Depending on the stock prices, but if it's around the area where it is this stage, then we simply do not see any better casino investment out there for us than CMTY. Our focus clearly for the next 12 to 18 months is to focus on what we have, generate as much cash as we have, and then decide whether we use that cash for stock buyback or delivering, or a combination thereof. And at these levels, we don't see any better investment than our own stock.

Peter Hoetzinger: Yeah, I mean, We don't. It's pretty simple for us at this stage, depending on where the stock is, but if it's around the area where it is these days, then we simply do not see any better casino investment out there for us than CMTY. Our focus clearly for the next 12 to 18 months is to focus on what we have, generate as much cash as we have, and then decide whether we use that cash for stock buybacks or leverage, or a combination thereof. At these levels, we don't see any better investment than ours.

Peter Hoetzinger: Go ahead, Peter.

Peter Hoetzinger: Our new facility will transition the Karada School operation from an older report and small temporary location to a modern style land-based facility, adding significantly enhanced non-gaming amenities, expanded gaming options and convenient parking for our guests. It will provide significant operational efficiencies and will increase our catchment area. Expect a strong uplift on the overall performance from that property, both in revenue and EBitar. Kitsurado, also a positive revenue trend, based on an increased player count and a higher visitation rate.

Peter Hoetzinger: yeah i mean

Peter Hoetzinger: We don't, it's pretty simple for us at this stage, depending on where the stock prices, but if it's around the area where it is these days, then we simply do not see any better casino investment out there for us than CNTY.

Peter Hoetzinger: Our focus clearly for the next 12 to 18 months is to focus on what we have, generate as much cash as we have, and then decide whether we use that cash for stock buyback or

Peter Hoetzinger: whether we use that cash for stock buybacks or leverage, or a combination thereof. And at these levels, we don't see any better investment than ours.

Peter Hoetzinger: The leveraging or a combination thereof and at these levels we don't see any better investment than our own stock.

Peter Hoetzinger: The hotel we opened at the beginning of the water with an ADR higher than budgeted. The team is in the process of fine-tuning operational expenses for the hotel and F&B operations to further increase profitability. In Karada, our property in Creeple Creek continues to benefit from the new 300 room hotel that opened directly across the street from us earlier this year. Coining was up, table prop was up, and F&B revenue was also up significantly, all because there is higher volume of visitors in town. Central City, on the other hand, suffered a bit from the hotel renovation works which we finished in June and from a lower spanned cut trip.

Peter Hoetzinger: That's perfect. We agree as well over here. Thank you, Peter. Thank you.

Jeffrey Stantial: That's perfect. We agree as well over here. Thank you, Peter. Thank you, Erwin. I'll pass it on.

Speaker Change: that's perfect we agree as well over here thank you can think igure little passadon

Operator: Thank you. The next question comes from Ms. Beynon about Meguiar. Please go ahead.

Chad Beynon: Next question comes from Chad Beynon with Maguire; please go ahead. All right, good morning. Thanks for all that commentary.

Peter Hoetzinger: Thank you. The next question comes from Ms. Beynon with Meguiar. Please go ahead.

Chad Beynon: Hi, good morning. Thanks for all that commentary. You mentioned that April was, I think, most, if not all, of the EBITDA decline, which would, you know, tell us that maybe it was a little bit of an anomaly. And it sounds like you have measures in place to kind of fix certain issues, but maybe kind of getting back to the core of the business. Is that unrated?

Chad Beynon: You mentioned that April was, I think, most if not all of the EBITDA decline, which would tell us that maybe it was a little bit of an anomaly, and it sounds like you have measures in place to kind of fix certain issues, but maybe kind of getting back to the core of the business. Is that unrated decline? Is that weakening? When do we start to face easier comps with that? And I think you talked about June looking better. We're seeing some of the July numbers that are out that seem to be pretty stable.

Speaker Change: good morning

Speaker Change: Thanks for all that commentary.

Speaker Change: you mentioned that april was i think most if not all of the ebita decline which would you know tell us that that maybe there was a little bit an anomaly and it sounds like you have measures in place to to kind of fix certain issues but maybe kind of getting back to the

Unnamed Analyst: decline. Is that weakening? When do we start to face easier competitions with that? And I think you talked about, you know, June looking better. You know, we're seeing some of the July numbers that are out that seem to be pretty stable. So is that unrated business weakening, which could hurt some near-term margins in the third quarter? Or do you think the worst is behind us, and most of that was felt in April? Thank you.

Chad Beynon: Is that weakening? When do we start to face easier competitions with that? And I think you talked about June looking better. We're seeing some of the July numbers that are out, and they seem to be pretty stable. So is that unrated business weakening, which could hurt some near-term margins in the third quarter? Or do you think the worst is behind us? And most of that was was felt in April? Thank you.

Unnamed Analyst: the core of the business. Is that unrated?

Unnamed Analyst: decline is that weakening when do we start to face easier comps with that and i think you talked about

Peter Hoetzinger: Our eased segment includes the Mountain Newcastle Resort in West Virginia and the newly acquired Rocky Bed Casino Resort in Maryland. Because of that new acquisition, revenue of the segment was up 60 percent, EBitar almost doubled. At Mountain Year, the lower end of the database produced less trips as well as lower spanned cut trips. In addition, slot code was down year-to-year. The good news is that staffing is no-long as significant challenge. We managed to keep all amenities open without labor limitations.

Unnamed Analyst: You know June looking better

Unnamed Analyst: We're seeing some of the July numbers that are out that seem to be pretty stable. So is that unrated business weakening, which could hurt some near-term margins in the third quarter, or do you think the worst is behind us and most of that was felt in April ? Thank you.

Peter Hoetzinger: So is that unrated business weakening, which could hurt some near-term margins in the third quarter, or do you think the worst is behind us than most of that was felt in April? Thank you. I think it's fair to say we think that the worst is behind us. How effort we're eagerly waiting the first reduction in interest rate, which subsequently hopefully changing the consumer sentiment. Okay, thanks. So you think that could be a catalyst for that consumer? Yeah, we think so because on the higher end we're doing fine, and the higher end is not so concerned with that. But on the lower end, where people are even safe with food costs, that's the area where the improvement is needed in the sentiment.

Erwin Haitzmann: I think it's fair to say we think that diversity is behind us, however, we are eagerly awaiting the first reduction in interest rates, which, subsequently, hopefully will change consumer sentiment.

Speaker Change: I think it's fair to say we think that diversity is behind us. However, we are eagerly awaiting the first reduction in interest rates, which subsequently hopefully changing the consumer sentiment.

Peter Hoetzinger: Okay, thanks. So you think that that could be a catalyst for that for that consumer?

Erwin Haitzmann: Okay, thanks. So you think that that could be a catalyst for that for that consumer?

Peter Hoetzinger: Without the Rocky Gap, it has been impacted by reduced number of trips as well as a noticeable decrease in ungraded play. We believe this is a combination of metro and local economics, as well as the continued growth of eye gaming in Pennsylvania and West Virginia. However, we do see first benefits from our efforts to attract previously untapped feeder markets, such as the DC metro area. The property has also done a good job of capturing into our winnersome database it increased by 16% year-over-year. SD economy improves, that will be a great upside potential.

Speaker Change: Okay, thanks. So you think that that could be a catalyst for that for that consumer?

Peter Hoetzinger: Yeah, we think so, because on the higher end, we're doing fine, and the higher end is not so concerned with that, but on the lower end, where people are even safe with food costs, that's the area where improvement is needed in the sentiment.

Erwin Haitzmann: Yeah, we think so, because on the higher end, we're doing fine, and the higher end is not so concerned with that, but on the lower end, where people are even safe with food costs, that's the area where improvement is needed in the sentiment.

Peter Hoetzinger: Yeah, we think so, because on the higher end we're doing fine and the higher end is not so concerned with that, but on the lower end, where people are even safe with food costs, that's the area where the improvement is needed in the sentiment.

Peter Hoetzinger: Okay, thanks.

Peter Hoetzinger: And then, as we think about the portfolio as it stands, given the revised guidance, has anything changed in terms of just urgency or view on potentially divesting something in the portfolio? Or do you still think that the current portfolio makes the most sense when you kind of come out of this and start driving free cash flow in 25? Yeah, Peter, why don't you take that? Yeah, Peter, as you've said, we are in the process of selling our pollution operations. We'll then reassess, but certainly we have some operations that are today a bit problematic with initiatives going on to improve, and depending on the optimal in the next six months or so, we'll reassess support for you, and I don't want to exclude really anything.

Chad Beynon: And then as we think about the portfolio as it stands, given the revised guidance, has anything changed in terms of just urgency or the view on potentially divesting something in the portfolio, or do you still think that the current portfolio makes the most sense when you kind of come out of this and start driving free cash flow in 25?

Speaker Change: Okay, thanks.

Speaker Change: And then as we think about the portfolio as it stands...

Speaker Change: given the revvisise guidance has anything changed in terms of

Speaker Change: just urgency or view on potentially divesting something in the portfolio or do you still think that the current portfolio makes the most sense when you kind of come out of this and start driving free cash flow in 25?

Peter Hoetzinger: Continuing through the waste segment, which includes the nugget Casino Resort in Reno, Nevada.

Peter Hoetzinger: Yeah, Peter, why don't you take it?

Peter Hoetzinger: The nugget was the disappointment of the growth that there's no way around it. We knew we had to deal with disruptions from innovation and refurbishment works on and around the gaming floor, but we did not forecast the 23% revenue decline. Yes, the hold on slots and tables were significantly lower compared to last year. But that would only explain the small portion of that decline. So we've made some task decisions.

Peter Hoetzinger: Peter, why don't you take that?

Peter Hoetzinger: Yeah, Chad, as you've said, we are in the process of selling our Polish operations, and we will then reassess. But certainly, we have some operations that are. Today, a bit problematic; we have initiatives going on to improve, and depending on the outcome, in the next six months or so, we will reassess our portfolio, and I don't want to exclude really anything. So, but Poland first. Okay, and Poland could be...

Speaker Change: As we have said, we are in the process of selling our Polish operations.

Peter Hoetzinger: We will then reassess.

Peter Hoetzinger: We'll then reassess.

Speaker Change: But certainly, we have some operations that are...

Speaker Change: Today, a bit problematic. We have...

Peter Hoetzinger: Nucket has undergone a leadership change and is implementing right sizing and cost-card initiatives to improve its performance. There's a point that Eric Rose, a senior VP and general manager of the property. Eric is a 32-year veteran in gaming and hospitality, and previously served as our VP of operations in Colorado. His career actually began in Nevada, and it includes leadership roles in F&B, marketing, and as general manager. Throughout his career, Eric has proven himself as a leader dedicated to evolving outstanding hospitality, paired with exceptional financial discipline in highly competitive Casino markets.

Speaker Change: initiatives initiatives going on to improve and and depending on on the outcome and the next six luts so we will reassess su portfolio and i don't want to exclude really anything

Peter Hoetzinger: But Poland first. And Poland could be given the strength of the same-store results and some of the renewals. Could that be something in the next six to twelve months? Yes. Great. Okay, thank you both. Appreciate it. Thanks, sir. Thank you.

Chad Beynon: Okay, and Poland could be, you know, given the strength of the same store results and some of the renewals, could that be something in the next 6 to 12 months? Yes. Thank you both. I appreciate it.

Speaker Change: So, but Poland first.

Speaker Change: okay and in poland could be given the strength of the same-store results and some of the renewals could that be something in the next six to twelve months

Unnamed Analyst: Great. Okay. Thank you both. I appreciate it.

Unnamed Analyst: Yes.

Unnamed Analyst: Great. Okay, thank you both. Appreciate it.

Operator: Thank you. For our next question, Jordan Bender with CitizensGP. Please go ahead.

Operator: Next question. Please go ahead.

Jeff: Thanks, Jeff. Thank you.

Speaker Change: Thank you. Our next question is from Jordan Bender with CitizensGP. Please go ahead.

Unnamed Analyst: Hey, good morning, everyone. I want to continue that last conversation.

Jordan Bender: Hey, good morning, everyone. I want to continue that last conversation.

Peter Hoetzinger: With the appointment of Eric Rose to the Nuggets for leadership role, we are finalizing the transition and integration of that property and setting it up for future success. We've also upgraded the property with more than 120 new slot machines, a high-limit room, refreshes of two restaurants, a repaint of the exterior, as well as exterior and interior signing and display packages. Most of the transitional, extraordinary expenses, as well as most cat-backs, and the disruption that comes with it, are behind us now. And the properties at the payment and special events calendar for the next 12 months looks great.

Chad Beynon: Good morning, everyone. I kind of want to continue that last conversation for the Polish assets. I think the least duration term sits the longest that they can go as we sit today. Have you seen any uptick just in terms of interest? You know, I know it's been maybe for sale for a couple of years now, but with that duration, have you seen more potential buyers kind of enter the picture now that we're kind of hitting that sweet spot with the leases? Peter? Yes, we have. You have chosen. It is a result of what you just said that these terms are pretty favorit right now.

Unnamed Analyst: For the Polish assets, I think the lease duration term sits the longest that they can go as we sit today. Have you seen any uptick just in terms of interest? I know it's been maybe for sale for a couple of years now, but with that duration, have you seen more potential buyers enter the picture now that we're hitting that sweet spot with the leases?

Jordan Bender: For the Polish assets, I think the lease duration term sits the longest that they can go as we sit today. Have you seen any uptick just in terms of interest? I know it's been maybe for sale for a couple of years now, but with that duration, have you seen more potential buyers enter the picture now that we're hitting that sweet spot with the leases?

Speaker Change: Hey, good morning, everyone. I kind of want to continue that last conversation. For the Polish assets, I think the least duration term sits the longest that they can go as we sit today. Have you seen any uptick just in terms of interest?

Unnamed Analyst: I know it's been maybe for sale for a couple of years now, but with that duration, have you seen more potential buyers kind of enter the picture now that we're kind of hitting that sweet spot with the leases?

Peter Hoetzinger: Peter? Yes. Yes, we have. You have, Jordan. It is a result of what you just said, that the lease terms are pretty favorable right now. It is also because, as Erwin said, the results of the casinos that were opened last year and are open this year. The apples-to-apples comparison is very favorable, and also. The other interested parties have finally realized that the war in the Ukraine just doesn't have an impact on players or suppliers or employees, and all of those things together have resulted in almost a handful of new parties that have come to the table. Thank you.

Unnamed Analyst: Peter? Yes, yes, we have, you have Jordan. It is a result of what you just said, that these terms are pretty favorable right now.

Peter Hoetzinger: It is also because, as Irwin said, the results of the casinos that have been opened last year and has opened this year. The April's comparison is very favorable. Also, the other interesting parties have finally realized that the war in the Ukraine just doesn't have an impact on players, or suppliers, or employees. And all of those things together has resulted in almost a handful of new parties that came to the table recently. Got it. Thank you.

Peter Hoetzinger: All of that makes us optimistic that next year we'll see substantial improvement and show the Nuggets full potential.

Unnamed Analyst: It is also because, as Erwin said, the results of the casinos that have been open last year and are open this year, the apples-to-apples comparison is very favorable.

Peter Hoetzinger: Moving to Canada, revenue in Canada grew by 5% and EB-DAR was up 7%. All of our operations in Alberta delivered a solid performance in line with our expectations. During the quarter, we saw strength from our core customer segment and continued stability in retail play across the Edmonton and Calgary regions.

Peter Hoetzinger: The other interested parties have finally realized that the war in the Ukraine just doesn't have an impact on not just players or suppliers or employees, and all of those things together have resulted in

Speaker Change: and also...

Speaker Change: The other interested parties have finally realized that the war in the Ukraine

Peter Hoetzinger: just doesn't have an impact on not on players or suppliers or employees. And all of those things together has resulted in

Peter Hoetzinger: In Poland, two casinos were still closed during the quarter. One of which is a very important one in the city of Rodsloth, which resulted in a significant drop in revenue. That's Casino and Rothschild has been realized since already, and will be up and running again in October. I've indicated in our last earnings call, after the reopening, we expect to get back to normal levels quite quickly, and that's around 12 million in annual EBITARA.

Speaker Change: almost a handful of new parties that came to the table recently.

Jordan Bender: I got it. Thank you. And then you kind of mentioned that you could be losing some customers to some of the iGaming stakes, you know, and this is a totally different direction for the company that you're currently running. But, you know, could you see yourself potentially white-labeling some form of online gaming platform, very low cost, just to kind of capture some of those players around the edges, you know, whether in West Virginia or even, you know, sports betting in Colorado, just to, you know, again, capture some of those players that you think you might be losing?

Peter Hoetzinger: And then you kind of mentioned that you could be losing some customers to some of the eye gaming states. You know, this is a totally different direction for the company that you're kind of currently ongoing. But, you know, could you see yourself potentially a white label, some form of online gaming platform, very low cost, just to kind of capture some of those players around the edges, you know, whether in West Virginia, or even, you know, sports betting in Colorado, just to, you know, then capture some of those players that you think you might be losing?

Speaker Change: got it thank you and then you kind of mention that

Speaker Change: You could be losing some customers to some of the iGaming stakes. And this is a totally different direction for the company that you're kind of currently ongoing. But, you know, could you see yourself potentially white label some form of online gaming platform, very low cost?

Peter Hoetzinger: The sales process is also progressing well. There's new momentum, with additional parties having expressed serious interest over the last couple of months.

Speaker Change: just to kind of capture some of those players around the edges, whether in West Virginia, or even sports betting in Colorado, just to, again, capture some of those players that you think you might be losing.

Peter Hoetzinger: Did you want to go? There's something that we are considering every now and then, and it's just being the cops; yeah, it's just being the cops. Got it. Okay. Thanks about. Thank you.

Erwin Haitzmann: That's something that we consider every now and then, and it's certainly in the cards. Yeah, it's certainly in the cards.

Peter Hoetzinger: Peter, you want to go?

Speaker Change: That's something that we are considering every now and then and it's certainly in the cards, yeah. It's certainly in the cards.

Unnamed Analyst: Got it. Okay. Thanks, everyone.

Jordan Bender: Got it. Okay. Thanks, everybody.

Operator: Got it. Okay. Thanks, everyone.

Speaker Change: Got it. Okay. Thanks, everyone.

Operator: And once again, that is start and one for your questions.

Operator: And once again, that is a star and one for your questions. We will move with JT waters, private investor. Please go ahead.

JT Waters: Thank you.

Operator: We will move with J.P.

J.P. Waters: Waters, private investor, please go ahead. Take it more, and everyone, thanks for taking my call. I think it was Peter; you mentioned the convention business at the Nugget that's forward-looking two to three years out and that we kind of had a goal there with nothing, which hurt the results. Can you give us any kind of outlook as you know, since it is so forward looking, what does that look like for the really for the next two to three years as far as both things go and then I have a follow-up question.

JP waters: and once again that start and one for your questions we will with jp waters private investor please go ahead

JT Waters: Hey, good morning everyone. Thanks for taking my call.

Peter Hoetzinger: Traditional net leverage is 4.6 times, and leads a trusted net leverage is 6.5 times. The leverage is elevated because of our recent acquisitions and investments. To stay above the long-term range, until we have the casinos in Poland and the late-day specificities in Corridors will open. But from then on, it should rank down quite quickly, as we look to 11, 2.3 times, traditional, and less than 5 times, leads adjusted for next year. We have no debt maturity until 2020-09, and with additional foreign capacity of 30 million under our order.

Speaker Change: take a more everyone thank for taking my call

JT Waters: I think it was Peter, you mentioned the convention business at the Nugget that's forward-looking two to three years out and that we kind of had a...

Peter Hoetzinger: I think it was Peter, you mentioned the convention business at the Nugget that's forward-looking two to three years out and that we kind of had a gulf there with nothing hurting the results. Can you give us any kind of outlook since it is so forward-looking? What does that look like really for the next two to three years as far as bookings go? And then I have a follow-up question.

Erwin Haitzmann: I think it was Peter, you mentioned the convention business at the Nugget that's forward-looking two to three years out and that we kind of had a gulf there with nothing hurting the results. Can you give us any kind of outlook since it is so forward-looking? What does that look like really for the next two to three years as far as bookings go? And then I have a follow-up question.

Peter Hoetzinger: a gulf there with nothing which hurt the results. Can you give us any kind of outlook since it is so forward-looking? What does that look like really for the next two or three years as far as bookings go? Then I have a follow-up question.

JT Waters: It was me, Erwin, who said that. At the moment, it's too early to give you an outlook. I can say it looks friendly, but we wouldn't give you numbers at this point in time.

Erwin Haitzmann: It was me, Erwin, who said that at the moment it's too early to give you an outlook. I can say it looks friendly, but we wouldn't give numbers at this point in time. Okay, great. And then just a commentary on the, okay, sorry. Some of you say what you could add is, in addition to the convention and exhibition business, another driving factor is also the concerts that we're having either, you know, outdoor venue with 8,500 and 55 seats and also indoors in winter with 2,000 and 1,500 seats maximum. And we are very actively working also on the content, on having a significantly more content schedule of concerts, and some of that is happening already for the remainder of the year and also in more next year.

Peter Hoetzinger: It was me, Erwin, who said that. At the moment, it's too early to give you an outlook. I can say it looks friendly, but we wouldn't give numbers at this point in time.

Erwin Haitzmann: Okay, great. And then just a commentary on the Oh, good. Sorry.

Speaker Change: Okay, great. And then just a commentary on the, oh good, sorry.

Peter Hoetzinger: I want to say what you could add is, in addition to the convention and exhibition business, another driving factor is also the concerts that we're having either in our outdoor venue with 8,555 seats and also indoors in winter with 2,000, 2,500 seats maximum. And we are very actively working on having a significant, more content schedule of concerts. And some of that is happening already for the remainder of the year and also more next year, the reason for that being that these are events that can be planned with a much shorter lead time.

Erwin Haitzmann: I want to say what you could add is, in addition to the convention and exhibition business, another driving factor is also the concerts that we're having either in our outdoor venue with 8,555 seats and also indoors in winter with 2,000, 2,500 seats maximum. And we are very actively working on having a significant, more content schedule of concerts. And some of that is happening already for the remainder of the year and also more next year, the reason for that being that these are events that can be planned with a much shorter lead time.

Peter Hoetzinger: And we are very actively working also on having a significant and more condensed schedule of concerts.

Peter Hoetzinger: Expect these to be solid investments over the medium and long-term, and to move beyond the disruption challenges the properties had to deal with. For next year, expect total CapEx to come down sharply to about 12 million, setting the stage for a substantial increase in free cash flow. We'll see that increase in cash flow from the casino reopening in Poland in October, and the carados will opening in bit November onwards. Cash flow will be improving substantially from revenue growth to improve facilities, as well as from the major reduction CapEx.

Peter Hoetzinger: And some of that is happening already for the remainder of the year and also and more next year. A reason for that being because these are events that can be planned with a much shorter lead time.

J.P. Waters: A reason for that being because these events that can be planned on it with a much shorter lead time. Right, thank you. And then just I have two questions, and I'll just listen. So just if you can give kind of a commentary on the Reno market as a whole and obviously we weren't pleased with our quarter of the Nugget but, you know, what does the market look like in Reno as a whole and then also just an overview question. I've been a shareholder, gosh, often on, really since you guys became public, believe it or not.

JT Waters: Great, thank you. And then I just have two questions, and I'll just listen. So just if you can give kind of a commentary on the Reno market as a whole, and obviously we weren't pleased with our quarter at the Nugget, but you know, what is the, what does the market look like in Reno as a whole? And then also, just an overview question. I've been a shareholder, gosh, off and on really since you guys became public, believe it or not.

JT Waters: Great, thank you. And then just I have two questions and I'll just listen. So just if you can give kind of a commentary on the Reno market as a whole and obviously we're

JT Waters: We weren't pleased with our quarter at the Nugget, but what does the market look like in Reno as a whole? And then also just an overview question. I've been a shareholder.

JT Waters: And I still have a hard time, if you can just kind of speak to your ethos of, you know, what are we good at, right? Do you guys look for undervalued properties where we can put some capex into them and improve them? Or, you know, kind of give me just what our moat is. What is Century Casinos good at, if you will? And I'll listen. Thank you guys.

J.P. Waters: And I still have a hard time. If you can just kind of speak to your ethos of, you know, what are we good at, right? Do you, do you guys look for undervalued properties where we can put some capex into it and improve it or, you know, kind of give me just what is our moat? What is Sentry casinos good at if you will? And I'll listen. Thank you, guys. Okay.

JT Waters: Josh, off and on, really, since you guys became public, believe it or not, and I still have a hard time, if you can just kind of speak to your ethos of, you know, what are we good at, right? Do you guys look for undervalued properties where we can put some capex into it?

Erwin Haitzmann: The presentation posted on our website today shows you the bridge from negative cash flow this year to the positive cash generation of a dollar per share in 2020. Schistings for Outlook for the remainder of this year and next. Given the performance in the first part of this year, we are now projecting 2024 revenues of $600,000,000,000,000,000,000 and adjusted EBITR in the range of $105,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000[inaudible]000,000,000,000,000,000,000000,000,000[inaudible] Okay, now let me start like that Alberta is performing captionally well and we're totally happy with it.

JT Waters: and improve it or, you know, kind of give me just what is our moat, what is Century Casinos good at, if you will, and I'll listen. Thank you, guys.

Peter Hoetzinger: I'll answer the first question and hand over the second to Peter. The Reno market is a highly competitive market with very experienced operators in the market, and it has to be seen not only as the, call it, half a million people that live in the greater Reno area but also in the catchment area, people mainly coming from the northern part of California, Sacramento, San Francisco, and quite recently, the hotel market has been really weak, and we, and I think probably our colleagues would also attribute that to the economic situation at this Peter, maybe you want to take the second question.

Erwin Haitzmann: I'll answer the first question and hand over the second to Peter. The Reno market is a highly competitive market with very experienced operators in the market, and it has to be seen not only as the, call it, half a million people that live in the greater Reno area but also in the catchment area, people mainly coming from the northern part of California, Sacramento, and San Francisco. And quite recently, the hotel market has been really weak, and we, and I think probably our colleagues would also attribute that to the economic situation at this point in time. Peter, maybe you want to take the second question?

Erwin Haitzmann: I answered the first question, and I'll hand over the second to Peter. The Reno market is a highly competitive market with very experienced operators in the market, and it's to an extent has to be seen. Not only is there half a million people that live in the greater Reno area, but also in the catchment area, mainly people mainly coming from the northern part of California, Sacramento, San Francisco, and quite recently, the hotel market has been really weak. I think probably our colleagues would also attribute that to the economic situation at this point in time. Peter, maybe you want to take the second question.

Peter Hoetzinger: Okay, I'll answer the first question and hand over the second to Peter. The renal market is a highly competitive market with very experienced operators.

Peter Hoetzinger: in the market and it to an extent has to be seen not on this callingit half a million people that living the greater we know area but also in the catchment area mainly people mainly coming from the northern part of

Peter Hoetzinger: California, Sacramento, San Francisco and quite recently the hotel market has been really weak and we and I think probably our colleagues would also attribute that to the economic situation at this point in time.

Peter Hoetzinger: Yes, thanks for the second question. Over the many years, we have started, mostly with developing casinos from the ground up. We've did that in Colorado; we did that in Canada. The smaller properties, so as we move into larger units, as we move into bigger size, bigger markets, we have focused on trying to find value acquisitions, properties that are a bit neglected by current ownership and then try to improve. We've started that process in 2019, when we bought three casinos from El Dorado, which is now Caesar's, and that was exactly what we were looking for. Those three properties were a bit missing the love and attention from ownership, because ownership, previous ownership had had bigger fish to fry.

Peter Hoetzinger: Yeah, thanks. Thanks for the second question. Over the many years, we have had Thadith, mostly with developing casinos from the ground up. We did that in Colorado; we did that in Canada. Smaller properties sold. And as we move into larger units, as we move into bigger sizes, bigger markets, we have to focus on trying to find value acquisitions properties that are a bit neglected by current ownership and then try to improve them. We started that process in 2019, when we bought three casinos from Eldorado, which is now Caesars. And that was exactly what we were looking for, those three properties.

Peter Hoetzinger: to

Peter Hoetzinger: Peter, maybe you want to take the second question?

Peter Hoetzinger: Thanks for the second question. Over the many years, we have...

Peter Hoetzinger: They started mostly with developing casinos from the ground up. We did that in Colorado; we did that in Canada.

Peter Hoetzinger: studies

Speaker Change: mostly with developing casino from from the ground up we dter in cororado dta in canada smaller properties and as we mo to larger units as we moving to bigger bigger size pakger markets

Peter Hoetzinger: Smaller properties sold. And as we move into larger units, as we move into bigger sizes, bigger markets, we have..., focus on what we tried to do with the Nugget and Rocky Gap. In any case, we still believe in the potential of these properties, and it will just take us a bit longer to create the same success story as we did for

Peter Hoetzinger: We have...

Peter Hoetzinger: focus on

Peter Hoetzinger: Try to find...

Peter Hoetzinger: value acquisitions properties that are a bit neglected by current ownership and then try to improve. We've started that process in 2019 when we bought three casinos from Eldorado, which is now Caesars.

Peter Hoetzinger: We're a bit missing the love and attention from ownership because previous ownership had bigger fish to fry. And so we took them over and. That was a success from day one; all three properties increased revenue and EBITDA under our operation, even though Eldorado was at that time and still is considered to be very, very good operators. So it was an excellent success, and then we had to close because of COVID. After opening, it was even a greater success.

Peter Hoetzinger: And that was exactly what we were looking for, those three properties.

Speaker Change: We're a bit missing the love and attention from ownership, because previous ownership had bigger fish to fry.

Peter Hoetzinger: We took them over, and there was a success from day one, all three properties increased revenue and EBITAR under our operation, even though El Dorado was at this time, and things still are considered to be very, very good operators. It was an excellent success, and then we had to close because of COVID. After opening, it was even greater success. We tried to do similar things with the Nuggets and rocket gas recently. We still think those two properties have the same upside potential. It's the problem is that, as you may know, in order to acquire the nuggets, we took out the term loan B, and we did that a few weeks before Russia innovated Ukraine.

Peter Hoetzinger: and so we took them over and

Peter Hoetzinger: That was a success from day one. All three properties increased revenue and EBITDA under our operation, even though Eldorado was at that time and I think still are considered to be very, very good operators.

Peter Hoetzinger: So it was an excellent success, and then we had to close because of COVID. After opening, it was even a greater success.

Peter Hoetzinger: We tried to do similar things with the Nugget and Rocky Gap recently. We still think those two properties have the same upside potential. The problem is that, as you may know, in order to acquire the nuggets, we took out a term loan B, and we did that a few weeks before Russia invaded Ukraine. And yeah, and then interest rates went up, and that did not only hurt our interest expense, but also, as Erwin mentioned already, a good portion of our customers is suffering from high interest rates.

Peter Hoetzinger: we tri to do

Peter Hoetzinger: similar things with the nuggget and rocket recently

Peter Hoetzinger: We still think those two properties have the same upside potential. The problem is that

Speaker Change: As you may know, in order to acquire the nuggets, we took out the term loan B and we did that

Peter Hoetzinger: a few weeks before Russia invaded Ukraine.

Peter Hoetzinger: Then interest rates went up, and that did not only hurt our interest expense, but also, as Irwin mentioned already, a good portion of our customers is suffering from high interest rates. That was a bit of a cover problem for us, both at the market and Rocket Gas. In any case, we still believe in the potential of these properties. It will just take us a bit longer to create the same success story as it is from 2019, with our three properties in the Soviet Union. Thank you.

Speaker Change: and then interest interest rates went up and that did not only heardurt our interest expense but also as uran mentioned already a good portion of our customers

Peter Hoetzinger: So that was a bit of a problem for us, both at Nugget and Rocky Cape. In any case, we still believe in the potential of these properties, and it will just take us a bit longer to create the same success story as we did with...

Peter Hoetzinger: it's suffering from from high interest rates so that was a bit of the cover problem for us both a nuket and rocket

Erwin Haitzmann: We expect that to continue both for the remainder of this year as well as for next year. And in Poland, which you cannot see in the numbers, we're also very comfortable but we'll let me just give you one number here. If we're looking at names to save comparison of the EBITAR, of Merriott Hilton and the Lodge Casino for Q2, then if you only take those three casinos and compare Q2 of 24 with Q2 of 23, EBITAR is up plus 71%.

Peter Hoetzinger: In any case, we still believe in the potential of these properties and it will just take us a bit longer to create the same success story as we did from 2019 with the R3 properties in Missouri and West Virginia.

Operator: Thank you. I will have no further questions at this time. I will turn the call back to management for closing remarks.

Operator: thank you

Operator: I will show no further questions at this time.

Operator: yeah

Operator: I will turn the call back to management for closing frameworks. All right, thanks everybody. We appreciate you joining our call today. We'll talk again after the third quarter.

Operator: Thank you. I will show no further questions at this time. I will turn the call back to management for closing remarks.

Peter Hoetzinger: All right. Thanks, everybody. We appreciate you joining us on our call today. We'll talk again after the third quarter. Until then, thank you and goodbye.

Erwin Haitzmann: As I say, you don't see that because some of the casinos are closed, but once we're open again, like Peter said earlier, we expect that to contribute with Trace Millen in EBITAR again, like it did in the past.

Peter Hoetzinger: All right. Thanks, everybody. We appreciate you joining our call today.

Operator: Until then, thank you and goodbye. Thank you for your participation. You may disconnect at any time.

Peter Hoetzinger: We'll talk again after the third quarter. Until then, thank you and goodbye.

Operator: And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

Erwin Haitzmann: Moving maybe from east to west geographically at a rocky gap, we did a few things that we think are very beneficial for the coming quarter since for next year. One of them is that we have introduced the beach. We got the permission to use a part of the lake in front of our hotel as a beach and with a few cabanas and they just round up the product of the hotel casino resort very well.

Speaker Change: they selfved conclude today program thank you for your participation you may disconnect at any time

Operator: [music]

Erwin Haitzmann: In rocky gap, we are mainly waiting for a cutting interest rate and for a change in the economic consumers' attitudes. The reason why we were hurt in the rocky gap mainly is because we lost the revenue mainly in our uncarded play and the uncarded players typically are coming from a reach between 820 miles or so. You have to know that every household income of the area there is about half of the average household income of Maryland.

Erwin Haitzmann: That's something that I'm sure you've heard before from other states and the lower end of the database, this is where we are typically suffering. Mountain year is a similar picture. The erosion came from the higher market and also from the mid and mid here and below. When it comes to Cape Sherado and Caradasville, we had increases in revenue in 6.7 percent in Cape Sherado and 0.4 percent in Caradasville in spite of the fact that we're still in this very tight and small interms casino just waiting to open the new one.

Operator: with

Erwin Haitzmann: Coming to critical on the other hand, the effect of the new 300 room hotel, as Peter mentioned, has been positive, we have very positive spillover effects, and we think that we will continue also for the foreseeable future.

¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶

Erwin Haitzmann: One thing to know is when you look at the second quarter is that the main reason for the significant reduction in revenues is that last year we had significantly more conventions and executions booked, so our group sales in 24 was significantly less than last year. Now, with conventions and executions, this is not something that you can plan or work on for the next running year, for the next year, because most of the conventions and executions are planned two, three years ahead.

Erwin Haitzmann: So the weak calendar of this year was not a result of our work, because when we came in, the plans that the sales were in 26, 27 or so. So we had to live with what we inherited so to speak. Is that something like an overview that is helpful for you?

Chad Beynon: That was extremely helpful, and Thara, thank you for all of that color. If I could just ask one more question, maybe for Peter with this one, I heard your commentary towards the end regarding some potential opportunistic buyback as CapEx rolls off and we get into the back half and into early 2025. At the same time, there are rumors, we'll see how credible, but there are rumors of potential large scale M&A amongst some of your competitors, were those two materialized that would likely result in some potential of the vestitures to satisfy antitrust?

Peter Hoetzinger: I guess, how do you think about balancing continued balance sheet improvement and getting to the point where you could be opportunistic if something came along versus taking advantage of some of the dislocation in the stock as we're staring at it at 2.30 today? That way, Clara, that would be great. Thank you. We go ahead, Peter. Yeah, I mean, we don't, it's pretty simple for us at this stage, depending on the stock prices, but if it's around the area where it is this stage, then we simply do not see any better Casino investment out there for us than CMTY.

Peter Hoetzinger: Our focus clearly for the next 12 to 18 months is to focus on what we have, generate as much cash as we have, and then decide whether we use that cash for stock buyback or delivering or a combination thereof, and at these levels, we don't see any better investment than our own stock. That's perfect. We agree as well over here. Thank you Peter, Thank you.

Chad Beynon: Next question comes from Chad Beynon with Maguire, please go ahead.

Chad Beynon: All right, good morning. Thanks for all that commentary. You mentioned that April was, I think, most if not all of the EBITDA decline, which would tell us that maybe it was a little bit of an anomaly and it sounds like you have measures in place to kind of fix certain issues, but maybe kind of getting back to the core of the business. Is that unrated decline? Is that weakening? When do we start to face easier comps with that?

Chad Beynon: And I think you talked about June looking better. We're seeing some of the July numbers that are out that seem to be pretty stable. So is that unrated business weakening, which could hurt some near-term margins in the third quarter, or do you think the worst is behind us than most of that was felt in April? Thank you. I think it's fair to say we think that the worst is behind us. How effort we're eagerly waiting the first reduction in interest rate, which subsequently hopefully changing the consumer sentiment.

Chad Beynon: Okay, thanks. So you think that could be a catalyst for that consumer? Yeah, we think so because on the higher end we're doing fine and the higher end is not so concerned with that, but on the lower end where people even safe with food costs, that's the area where the improvement is needed in the sentiment. Okay, thanks. And then as we think about the portfolio as it stands, given the revised guidance, has anything changed in terms of just urgency or view on potentially divesting something in the portfolio?

Chad Beynon: Or do you still think that the current portfolio makes the most sense when you kind of come out of this and start driving free cash flow in 25? Yeah, Peter, why don't you take that? Yeah, Peter, as you've said, we are in the process of selling our pollution operations. We'll then reassess, but certainly we have some operations that are today a bit problematic with initiatives going on to improve and depending on the optimal in the next six months or so, we'll reassess support for you, and I don't want to exclude really anything.

Chad Beynon: But Poland first. And Poland could be given the strength of the same-store results and some of the renewals. Could that be something in the next six to 12 months? Yes. Great. Okay, thank you both. Appreciate it. Thanks, sir. Thank you.

Operator: Next question.

Operator: Please go ahead.

Chad Beynon: Peter? Yes, we have. You have chosen. It is a result of what you just said that these terms are pretty favorit right now. It is also because as Irwin said, the results of the casinos that have been opened last year and has opened this year. The April's comparison is very favorable. Also, the other interesting parties have finally realized that the war in the Ukraine just doesn't have an impact on players or suppliers or employees. And all of those things together has resulted in almost a handful of new parties that came to the table recently. Got it. Thank you.

Operator: And then you kind of mentioned that you could be losing some customers to some of the eye gaming states. You know, this is a totally different direction for the company that you're kind of currently ongoing. But, you know, could you see yourself potentially a white label, some form of online gaming platform, very low cost, just to kind of capture some of those players around the edges, you know, whether in West Virginia, or even, you know, sports betting in Colorado, just to, you know, then capture some of those players that you think you might be losing?

Operator: Did you want to go? There's something that we are considering every now and then, and it's just being the cops, yeah, it's just being the cops. Got it. Okay. Thanks about. Thank you. And once again, that is start and one for your questions. We will move with J.P.

J.P. Waters: Waters, private investor, please go ahead. Take it more and everyone, thanks for taking my call. I think it was Peter, you mentioned the convention business at the nugget that's forward looking two to three years out and that we kind of had a goal there with nothing which hurt the results. Can you give us any kind of outlook as you know, since it is so forward looking, what does that look like for the really for the next two to three years as far as both things go and then I have a follow-up question.

J.P. Waters: It was me, Erwin, who said that at the moment it's too early to give you an outlook. I can say it looks friendly but we wouldn't give numbers at this point in time. Okay, great. And then just a commentary on the, okay, sorry. Some of you say what you could add is in addition to the convention and exhibition business, another driving factor is also the, also the concerts that we're having either, you know, outdoor venue with 800, 8,500 and 55 seats and also indoors in winter with 2,000 and 1,500 seats maximum.

J.P. Waters: And we are very actively working also on the content, on having a significant more content schedule of concerts and some of that is happening already for the remainder of the year and also in more next year. A reason for that being because these events that can be planned on it with a much shorter lead time. Right, thank you. And then just I have two questions and I'll just listen. So just if you can give kind of a commentary on the Reno market as a whole and obviously we weren't pleased with our quarter of the nugget but, you know, what does the market look like in Reno as a whole and then also just an overview question.

J.P. Waters: I've been a shareholder, gosh, often on really since you guys became public, believe it or not. And I still have a hard time. If you can just kind of speak to your ethos of, you know, what are we good at, right? Do you, do you guys look for undervalued properties where we can put some capex into it and improve it or, you know, kind of give me just what is our moat? What is sentry casinos good at if you will?

Peter Hoetzinger: And I'll listen. Thank you guys. Okay. I answered the first question and I'll hand over the second to Peter. The Reno market is a highly competitive market with very experienced operators in the market and it's to an extent has to be seen and not only is they call it half a million people that live in the greater Reno area but also in the catchment area mainly people mainly coming from the northern part of California Sacramento San Francisco and quite recently the hotel market has been really weak and we and I think probably our colleagues would also attribute that to the economic situation at this point in time.

Peter Hoetzinger: Peter, maybe you want to take the second question. Yes, thanks for the second question. Over the many years, we have started, mostly with developing casinos from the ground up, we've did that in Colorado, we did that in Canada. The smaller properties, so as we move into larger units, as we move into bigger size, bigger markets, we have focused on trying to find value acquisitions, properties that are a bit neglected by current ownership and then try to improve.

Peter Hoetzinger: We've started that process in 2019, when we bought three casinos from El Dorado, which is now Caesar's, and that was exactly what we were looking for. Those three properties were a bit missing the love and attention from ownership, because ownership, previous ownership had had bigger fish to fry. We took them over and there was a success from day one, all three properties, increased revenue and EBITAR under our operation, even though El Dorado was at this time and things still are considered to be very, very good operators.

Peter Hoetzinger: It was an excellent success and then we had to close because of COVID. After opening, it was even greater success. We tried to do similar things with the nuggets and rocket gas recently. We still think those two properties have the same upside potential. It's the problem is that as you may know, in order to acquire the nuggets, we took out the term loan B and we did that a few weeks before Russia innovated Ukraine.

Peter Hoetzinger: Then interest rates went up and that did not only hurt our interest expense, but also as Irwin mentioned already, a good portion of our customers is suffering from high interest rates. That was a bit of a cover problem for us, both at the market and rocket gas. In any case, we still believe in the potential of these properties. It will just take us a bit longer to create the same success story as it is from 2019, with our three properties in the Soviet Union. Thank you.

Operator: I will show no further questions at this time. I will turn the call back to management for closing frameworks. All right, thanks everybody. We appreciate you joining our call today. We'll talk again after the third quarter. Until then, thank you and goodbye. Thank you for your participation. You may disconnect at any time. John DeCree, John DeCree, John DeCree John DeCree, John DeCree, John DeCree, John DeCree John DeCree, John DeCree

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