Century Casinos Inc (CNTY) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Century Casinos Q2 2024 Earnings Call. Please note this meeting is being recorded. (Operator Instructions)

大家好，歡迎參加 Century Casinos 2024 年第二季財報電話會議。請注意，本次會議正在錄製中。（操作員說明）

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

現在我很高興將會議交給 Peter Hoetzinger。請繼續。

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-CEO, Erwin Haitzmann; and our CFO, Margaret Stapleton, will join me for that.

大家早安，感謝您參加我們的財報電話會議。在我們準備好發言後，我們將開始電話詢問您的問題。我的聯合執行長歐文‧海茨曼 (Erwin Haitzmann)；我們的財務長瑪格麗特·斯特普爾頓 (Margaret Stapleton) 將和我一起做這件事。

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

在開始之前，我們想提醒您，我們將討論前瞻性訊息，其中涉及可能導致實際結果與我們的前瞻性陳述不同的風險和不確定性。

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

本公司不承擔更新或修改前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。我們在 SEC 文件中討論了風險因素，並鼓勵您查看這些文件。

Throughout our call, we refer to several non-GAAP financial measures, including, but not limited to, adjusted EBITDAR. Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings available in the Investors section of our website at cnty.com.

在我們的電話會議中，我們提到了多項非公認會計準則財務指標，包括但不限於調整後的 EBITDAR。我們的非 GAAP 衡量標準與適當 GAAP 衡量標準的對帳可在我們網站 cnty.com 投資者部分的新聞稿和 SEC 文件中找到。

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 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.

我們今天上午發布了 2024 年第二季業績。我們實現淨收入 1.46 億美元，比去年第二季成長 7%。成長來自於馬裡蘭州 Rocky Gap 的增加以及加拿大的良好業績，但被施工中斷、裡諾 Nugget 的糟糕業績以及波蘭兩家賭場的暫時關閉所抵消。

Adjusted EBITDAR was $27 million, down 6% from last year. That is disappointing, but the results were also impacted by onetime transitory issues, namely the construction disruption at some U.S. properties and the temporary closure in Poland.

調整後 EBITDAR 為 2,700 萬美元，比去年下降 6%。這令人失望，但結果也受到了暫時性問題的影響，即美國一些房產的施工中斷和波蘭的暫時關閉。

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.

正如您從我們的遊戲同行和其他非必需消費品業務中看到和聽到的那樣，零售客戶以及來自資料庫低端的客戶仍然相對較弱。我們整個投資組合中的非評級遊戲下降了 10%。我們認為這主要是由於我們市場的宏觀經濟和錢包疲軟造成的。

We would anticipate as inflation comes down and relieving credit market is coming, 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. In fact, April was responsible for all of the quarterly year-over-year EBITDAR decline.

我們預計，隨著通貨膨脹的下降和信貸市場的緩解，這將開始轉向娛樂支出與需求支出。為了更深入地研究本季度，我們發現幾個月的表現不如其他月份。四月的情況相當糟糕。事實上，4 月是所有季度 EBITDAR 年比下降的原因。

May was up almost 20%. To was down just a little, close to flat. Looking at segment results. We start with the Midwest, which includes Missouri and Colorado. Revenue of that segment was up 4%. EBITDAR was down 5%. With the disruption we experienced at Caruthersville in Missouri from the development of the new land-based facility, the team delivered another strong quarter.

5 月上漲近 20%。To 略有下降，接近持平。查看細分結果。我們從中西部開始，其中包括密蘇裡州和科羅拉多州。該部門的收入增長了 4%。息稅折舊攤提前利潤 (EBITDAR) 下降 5%。由於新的陸上設施的開發，我們在密蘇裡州卡魯瑟斯維爾經歷了中斷，該團隊再次實現了強勁的季度業績。

And I'm happy to report that construction is progressing on budget and ahead of schedule, prepare for soft opening in mid-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 old river boat and a 50% increase compared to our current temporary location.

我很高興地向您報告，建設工作正在按照預算進行，並提前完成，並已為 11 月中旬的試營運做好準備。新物業將擁有總共74間酒店客房和超過660個博彩位置，比舊河船增加20%，比我們目前的臨時地點增加50%。

Our new facility will transition the Caruthersville operation from an old riverboat and small temporary locations to 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.

我們的新設施將把卡魯瑟斯維爾的營運從舊的河船和小型臨時場所轉變為現代風格的陸上設施，顯著增強非博彩設施，擴大博彩選項並為客人提供便利的停車位。它將顯著提高營運效率並增加我們的服務範圍。

We expect a strong uplift on the overall performance from that property, both in revenue and EBITDAR. Cape Girardeau saw 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. The number of occupied room nights increased sequentially throughout the quarter with an ADR higher than budgeted.

我們預計該酒店的整體業績（收入和息稅折舊攤提前利潤）將大幅提升。由於玩家數量的增加和訪問率的提高，開普吉拉多出現了積極的收入趨勢。我們在本季度初開設的酒店繼續增長。本季入住夜數連續增加，平均房價高於預算。

The team is in the process of fine-tuning operational expenses for the hotel and F&B operations to further increase profitability. In Colorado, our property in Cripple Creek continues to benefit from the new 300-room hotel that opens directly across the street from us earlier this year. Coining was up, table drop was up and F&B revenue was also up significantly, all because there is higher volume of visitors in town.

該團隊正在微調飯店和餐飲業務的營運費用，以進一步提高獲利能力。在科羅拉多州，我們位於 Cripple Creek 的酒店繼續受益於今年早些時候在我們街對面開業的擁有 300 間客房的新酒店。鑄幣量增加，餐桌流失量增加，餐飲收入也顯著增加，所有這些都是因為鎮上的遊客量增加了。

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. 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%.

另一方面，中心城因飯店裝修工程（我們在六月完成）以及每次旅行的支出較低而受到了一些影響。我們的東部部分包括西維吉尼亞州的 Mountaineer Casino Resort 和新收購的馬裡蘭州 Rocky Gap Casino Resort。由於這項新收購，該部門的收入成長了 60%。

EBITDAR almost doubled. At Mountaineer, the low end of the database produced less trips as well as lower spend per trip. In addition, slot hold 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.

息稅折舊攤提前利潤 (EBITDAR) 幾乎翻了一番。在 Mountaineer，資料庫的低端產生的行程較少，每次行程的支出也較低。此外，老虎機持有量較去年同期也有所下降。好消息是，人員配備不再是一個重大挑戰，我們設法保持所有設施開放，不受勞動力限制。

Results at Rocky Gap has been impacted by reduced number of trips as well as a noticeable decrease in unrated play. We believe this is a combination of metro and local economics as well as the continued growth of iGaming in Pennsylvania and West Virginia.

洛基蓋普 (Rocky Gap) 的表現受到行程次數減少以及未評級比賽明顯減少的影響。我們相信這是大都會和當地經濟以及賓州和西維吉尼亞州 iGaming 持續成長的結合。

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 to our winner cell database. It increased by 16% year over year. As the economy improves, that will be a great upside potential.

然而，我們確實看到了我們吸引以前未開發的支線市場（例如華盛頓都會區）的努力所帶來的第一個好處。該酒店在捕獲我們的獲勝者細胞資料庫方面也做得很好。較去年同期成長16%。隨著經濟的好轉，這將是一個巨大的上升潛力。

Continuing to the West segment, which includes the Nugget Casino Resort in Reno, Nevada. The market was the disappointment of the quarter. There's no way around it. We knew we had to deal with disruptions from renovation and refurbishment works on and around the gaming floor, but we did not forecast a 23% revenue decline.

繼續前往西段，其中包括內華達州里諾的金塊賭場度假村。本季市場表現令人失望。沒有辦法解決這個問題。我們知道我們必須應對博彩場地及其周圍的翻修和整修工程造成的干擾，但我們並沒有預測收入會下降 23%。

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. Market has undergone a leadership change and is implementing rightsizing and cost-cutting initiatives to improve its performance.

是的，老虎機和賭桌的持有量與去年相比明顯下降，但這只能解釋下降的一小部分。所以我們做了一些艱難的決定。Market 經歷了領導層變動，正在實施規模調整和成本削減舉措，以提高業績。

We've appointed Eric Rose as 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 includes leadership roles in S&B, marketing and as General Manager.

我們已任命 Eric Rose 擔任飯店的高級副總裁兼總經理。Eric 是一位在遊戲和酒店業擁有 32 年經驗的資深人士，之前曾擔任我們科羅拉多州的營運副總裁。他的職業生涯實際上始於內華達州，曾擔任 S&B、行銷部門的領導職務以及總經理。

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.

在他的整個職業生涯中，艾瑞克已經證明了自己是一位致力於在競爭激烈的賭場市場中發展卓越的酒店服務和卓越的財務紀律的領導者。隨著埃里克·羅斯被任命為金塊隊的最高領導職務，我們正在完成該財產的過渡和整合，並為其未來的成功做好準備。

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 CapEx and the disruption that comes with it are behind us now.

我們還對酒店進行了升級，配備了 120 多台新老虎機、一間高限額房間、兩家餐廳的翻新、外部重新粉刷以及外部和內部簽名和展示套餐。現在，大部分過渡性非常費用以及大部分資本支出及其帶來的干擾都已成為過去。

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 a substantial improvement and show the markets full potential.

酒店未來 12 個月的娛樂和特別活動日曆看起來很棒。所有這些都讓我們樂觀地認為，明年我們將看到顯著的改善並展示市場的全部潛力。

Moving to Canada, revenue in Canada grew by 5% and EBITDAR 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.

轉向加拿大，加拿大的收入成長了 5%，EBITDAR 成長了 7%。我們在艾伯塔省的所有業務均表現穩定，符合我們的預期。在本季度，我們看到了核心客戶群的實力以及埃德蒙頓和卡加利地區零售業的持續穩定。

In Poland, two casinos were still closed during the quarter, one of which is a very important one in the city of Roslov which resulted in a significant drop in revenues. That casino in Roslov has been re-licensed already and will be up and running again in October.

在波蘭，本季仍有兩家賭場關閉，其中一家位於羅斯洛夫市的一家非常重要的賭場，導致收入大幅下降。羅斯洛夫的那家賭場已經重新獲得許可，並將於 10 月重新投入營運。

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 EBITDAR. The sales process is also progressing well. There is new momentum with additional parties having expressed serious interest over the last couple of months.

正如我們上次財報電話會議所示，重新開業後，我們預計很快就會恢復到正常水平，年度 EBITDAR 約為 1200 萬美元。銷售過程也進展順利。過去幾個月，更多各方表達了濃厚興趣，出現了新的勢頭。

With that, let's discuss our balance sheet and liquidity position. We ended the quarter with $123 million in cash and cash equivalents and $342 million in outstanding debt, resulting in net debt of $219 million. The main reason for the decrease in our cash position versus the end of last year and the cash payments of $12 million for tax on our Canada real estate sales, a $4 million onetime principal paydown of debt, as well as a $34 million investment in property and equipment.

接下來，我們來討論一下我們的資產負債表和流動性狀況。本季結束時，我們的現金和現金等價物為 1.23 億美元，未償債務為 3.42 億美元，淨債務為 2.19 億美元。與去年年底相比，我們的現金部位減少的主要原因是我們的加拿大房地產銷售稅現金支付了 1,200 萬加元，一次性償還債務本金 400 萬加元，以及房地產投資 3,400 萬加元和設備。

Traditional net leverage is 4.6 times and lease adjusted 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 land-based facility in Caruthersville open. But from then on, it should ramp down quite quickly as we look to deliver to about 3 times traditional and less than 5 times lease adjusted for next year.

傳統淨槓桿率為4.6倍，租賃調整後淨槓桿率為6.5倍。由於我們最近的收購和投資，槓桿率有所提高。保持在長期區間之上，直到我們在波蘭的賭場和卡魯瑟斯維爾的陸上設施開業。但從那時起，它應該很快就會下降，因為我們希望明年的交付量達到傳統的約 3 倍，調整後的租賃額不到 5 倍。

We have no debt maturities until 2029 and we have additional borrowing capacity of $30 million under our revolver. We can reprice or refinance our entire term loan at any time without penalty. And as soon as the winter opens, we want to act on it and improve our terms.

我們的債務在 2029 年之前到期，我們的左輪手槍還有 3000 萬美元的額外借款能力。我們可以隨時對整個定期貸款重新定價或再融資，而無需支付罰款。一旦冬季來臨，我們就會立即採取行動並改善我們的條件。

Turning to CapEx. During the quarter, we remain 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 CapEx program as we are finishing several projects in the second half of this year, for approximately $13 million.

轉向資本支出。在本季度，我們仍然致力於在現有地點進行策略性投資並為客人提供新的設施，以推動未來的客流量和消費增量。我很高興地向大家報告，我們的資本支出計劃已接近尾聲，因為我們將在今年下半年完成多個項目，耗資約 1300 萬美元。

We expect these to be solid investments over the medium and long term and look forward to moving beyond the disruption challenges the properties have 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.

我們預計這些將是中長期可靠的投資，並期待克服房地產所面臨的顛覆性挑戰。明年，我們預計總資本支出將大幅下降至約 1,200 萬美元，為自由現金流的大幅增加奠定基礎。

We'll see that increase in cash flow from the casino opening in Poland in October and the Caruthersville opening in mid-November onwards. Cash flow will be improving substantially from revenue growth due to the improved facilities, as well as from the major reduction in CapEx.

我們將看到 10 月在波蘭開業的賭場和 11 月中旬開業的卡魯瑟斯維爾賭場帶來的現金流增加。由於設施改善帶來的收入成長以及資本支出的大幅減少，現金流將大幅改善。

The presentation posted on our website today shows you the bridge from negative cash flow this year to the positive cash generation of $1 per share in 2025. Shifting to 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 adjusted EBITDAR in the range of $105 million to $115 million.

今天發佈在我們網站上的簡報向您展示了從今年的負現金流到 2025 年每股 1 美元的正現金流的橋樑。轉向我們對今年剩餘時間和明年的展望。鑑於今年上半年的業績，我們目前預計 2024 年營收為 6.02 億美元，調整後的 EBITDAR 在 1.05 億至 1.15 億美元之間。

For 2025, we see revenues between $650 million and $675 million and adjusted EBITDAR between $150 million 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 Nugget.

2025 年，我們預計營收將在 6.5 億至 6.75 億美元之間，調整後的 EBITDAR 將在 1.5 億至 1.6 億美元之間。展望未來，我們對未來的業務前景充滿信心。在費用和勞動力方面，我們將專注於營運紀律，並繼續尋找提高效率的方法，尤其是在掘金。

Again, we are still in a transitory period, but we have a clear plan to focus on generating cash to deleverage and opportunistically also buy back stock later this year and next. I want to reiterate our enthusiasm, especially for next year. We see results and free cash flow improving significantly as we have the Polish casinos and Caruthersville will open in just a few months from now.

同樣，我們仍處於過渡期，但我們有一個明確的計劃，即專注於產生現金以去槓桿化，並在今年晚些時候和明年趁機回購股票。我想重申我們的熱情，尤其是明年的熱情。我們看到業績和自由現金流顯著改善，因為我們擁有波蘭賭場，卡魯瑟斯維爾將在幾個月後開業。

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

我們準備好的演講到此結束。我們現在將開始問答環節。接線員，請繼續。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Jeff Santiago, Stifel.

傑夫·聖地亞哥，斯蒂菲爾。

Hey, good morning, everyone. Thanks for taking our questions. Maybe starting off here on the revisions to 2024 and 2025 revenue and margin expectations, Peter, that you just walked through towards the end there. Can you just spend a minute sort of walking through some of the changes to the assumptions?

嘿，大家早安。感謝您回答我們的問題。也許從這裡開始對 2024 年和 2025 年收入和利潤率預期的修訂，Peter，你剛剛完成了這一點。您能花一點時間來了解假設的一些變化嗎？

It sounds like based on your commentary that Nugget Casino and some of the stabilization work under their is 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 revision, that would be helpful as well. Thanks.

根據您的評論，聽起來好像掘金賭場及其下的一些穩定工作是主要驅動力。但是，如果您能夠詳細了解每個驅動因素以及它們對收入調整的貢獻程度，這也會有所幫助。謝謝。

Thanks, Jeff. Peter, can you say something to that? Or would you like me to try and?

謝謝，傑夫。彼得，你能對此說些什麼嗎？或者你想讓我嘗試嗎？

Yes. It's mostly market in Poland, but the others as well. And with that back to you, Erwin.

是的。主要銷往波蘭市場，但也銷往其他國家。回到你身邊，艾爾文。

Yes. I mean, we don't have it property by property in terms of margin improvement. I don't know if would you like it to go through it property by property, or what exactly are you looking for?

是的。我的意思是，我們並沒有逐一提高利潤率。我不知道您是否希望它逐一屬性地進行檢查，或者您到底在尋找什麼？

I think rank order of which properties are lagging your expectations and how that contributes to the forecast revisions would be great. And if not, we could also follow up off-line.

我認為哪些房產落後於您的預期的排名順序以及這對預測修正的貢獻將是巨大的。如果沒有，我們也可以線下跟進。

Okay. Now let's may start like that Alberta is performing exceptionally 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.

好的。現在讓我們開始認為艾伯塔省的表現非常出色。我們對此非常滿意。我們預計這種情況將在今年剩餘時間以及明年持續下去。

And in Poland, which you can see in the numbers, we're also very comfortable. Let me just give you one number here. If we're looking at same-store sales comparison of the EBITDAR of 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, EBITDAR is up plus 71%.

在波蘭，你可以從數字看到，我們也很舒服。讓我在這裡給你一個數字。如果我們比較萬豪希爾頓酒店和 Lodge Casino 第二季度的同店銷售額比較，那麼如果您只拿這三個賭場並將 24 年第二季度與 23 年第二季度進行比較，EBITDAR 上漲了 71% 。

As I say, you don't see that because some of the casinos are closed. But once we're open again, and like Peter said, even, we expect it to contribute with $12 million in EBITDAR again like it did in the past.

正如我所說，你看不到這一點，因為一些賭場已經關閉。但一旦我們再次開業，正如彼得所說，我們預計它會像過去一樣再次貢獻 1200 萬美元的 EBITDAR。

Moving maybe from East to West geographically at the Rocky Gap, we did a few things that we think are very beneficial for the -- again, for the coming quarters and for next year. One of them is that we have introduced a beach.

也許從東部到西部的洛基峽，我們做了一些我們認為對未來幾季和明年非常​​有益的事情。其中之一是我們引入了海灘。

We got the permission to use part of the lake in front of our hotel and with a few cabanas and that just rounds 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 -- in the consumers' attitude.

我們獲得了使用酒店前面的部分湖泊和一些小屋的許可，這很好地完善了酒店賭場度假村的產品。在Rocky Gap，我們主要等待降息和經濟——消費者態度的改變。

The reason why we were hurt in 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 20 miles or so. And there is -- you have to know that the average household income of the area there is about half of the average household income of Maryland.

我們在Rocky Gap受到傷害的原因主要是因為我們主要在無卡比賽中損失了收入，而無卡玩家通常來自20英里左右的範圍。你必須知道，該地區的平均家庭收入約為馬裡蘭州平均家庭收入的一半。

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 are typically suffering. Mountaineer, it's a similar picture. The erosion came from the higher market and also from the -- and mid-tier and below.

我確信您之前從其他人那裡聽說過，在資料庫的低端，這就是我們通常遇到的問題。登山者，這是類似的圖片。侵蝕來自高端市場，也來自中端及以下市場。

When it comes to Cape Girardeau and Caruthersville, we had increases in revenue in 6.7% in Cape Girardeau and 0.4% in Caruthersville in spite of the fact that we are still in this very tight and small interim casino, just waiting to open a new one.

當談到開普吉拉多和卡魯瑟斯維爾時，我們在開普吉拉多和卡魯瑟斯維爾的收入增長了6.7%，在卡魯瑟斯維爾增長了0.4%，儘管我們仍在這個非常緊張且小型的臨時賭場中，只是​​等待開設新賭場。

We see that with the hotel that we opened in Cape Girardeau with the one that we will open in Caruthersville, we will be able to expand our reach, and that will be certainly beneficial for the numbers. So we are convinced to see in the second half of '20 as well as in '25.

我們看到，透過我們在開普吉拉多開設的酒店以及我們將在卡魯瑟斯維爾開設的酒店，我們將能夠擴大我們的業務範圍，這肯定會對人數有利。因此，我們有信心在 20 年下半年以及 25 年看到這一點。

As far as Cripple Creek is concerned, on the tour gate side, we think that that's the most difficult one with regard to upside as it stands. We're the only ones that drive the market here in Central City. There is nobody really that is helping the traffic there.

就 Cripple Creek 而言，在旅遊門方面，我們認為就目前的上升趨勢而言，這是最困難的。我們是唯一推動中心城市場的公司。沒有人真正幫助那裡的交通。

But we think that due to the fact that we have the prime position together with our parking garage in the center of Central City, this will be a market where we will be able to hold a stable $4 million to $5 million in EBITDAR.

但我們認為，由於我們擁有中心城市中心的黃金地段和停車場，這將是一個我們能夠穩定持有 400 萬至 500 萬美元 EBITDAR 的市場。

Coming from Cripple Creek on the other hand, the effect of the new 300-room hotel, as Peter mentioned, has been positive. So, we have very positive spillover effect, and we think that will continue also for the foreseeable future, which leads us coming 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.

另一方面，正如 Peter 所提到的，來自 Cripple Creek 的新酒店擁有 300 間客房，其效果是積極的。所以，我們有非常積極的溢出效應，我們認為在可預見的未來，這種情況也會持續下去，這會讓我們回到掘金，我認為這確實是——這是我們已經並將繼續創造的地方最顯著的變化。

We believe there is still a lot of upside in the detail, and we are fully motivated, together with the new GM area growth to put that into action from now on, hopefully seeing results soon. One thing to know is when you look at the Nugget second quarter is that we -- the main reason for the significant reduction in revenues is that last year, we had significantly more conventions and exhibitions booked.

我們相信細節上仍然有很多好處，我們充滿動力，加上新的通用汽車領域的成長，從現在開始將其付諸行動，希望很快就能看到結果。要知道的一件事是，當您查看第二季的掘金時，我們會發現收入大幅減少的主要原因是去年我們預訂了更多的會議和展覽。

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 exhibitions are planned two, three years ahead.

因此，我們 24 年的集團銷售額明顯低於去年。現在對於會議和展覽來說，這不是你可以為下一年（下一年）計劃或工作的事情，因為大多數會議和展覽都是提前兩三年計劃的。

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

所以，今年的疲軟日曆並不是我們工作的結果，因為當我們進來時，計劃 - 銷售是在 26 年、27 年等。所以，可以這麼說，我們必須接受我們繼承的東西。這是對您有幫助的概述嗎？

That was extremely helpful and thorough. Thank you, Erwin, 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 as CapEx rolls off and we get into the back half and into early 2025.

這是非常有幫助和徹底的。謝謝你，艾爾文，給我所有的顏色。如果我可以再問彼得一個問題的話。我在最後聽到了您關於隨著資本支出下降以及我們進入下半年和 2025 年初的一些潛在機會主義回購的評論。

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 to materialize that would likely result in some potential divestitures to satisfy antitrust.

同時，有傳言，我們會看看有多可信，但有傳言稱，您的一些競爭對手可能會進行大規模併購，如果這些傳言成為現實，可能會導致一些潛在的資產剝離，以滿足反壟斷的要求。

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 230 today? Any color there would be great. Thank you.

我想，你如何看待平衡持續的資產負債表改善和達到這樣的程度：如果有事情發生，你可以投機取巧，而不是利用股票的一些錯位，因為我們今天盯著 230 點？任何顏色都會很棒。謝謝。

Go ahead, Peter.

繼續吧，彼得。

Yes. I mean we don't -- it's pretty simple for us at this stage, depending on the stock [price is]. But if it's around the area where these days, then we simply do not see any better casino investment out there for us than CNTY.

是的。我的意思是我們不——現階段這對我們來說非常簡單，取決於庫存[價格是]。但如果是在現在的地區，那我們根本看不到比 CNTY 更好的賭場投資。

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 deleveraging, or a combination thereof. And at these levels, we don't see any better investment than our own stock.

未來 12 到 18 個月，我們的重點顯然是專注於我們所擁有的，產生盡可能多的現金，然後決定是否將這些現金用於股票回購、去槓桿化，或兩者兼而有之。在這樣的水平上，我們看不到比我們自己的股票更好的投資。

It's perfect. We agree as well over here. Thank you Peter. Thank you everyone. I'll pass it on.

太完美了。我們在這裡也同意。謝謝彼得。謝謝大家。我會把它傳遞下去。

Chad Beynon, Macquarie.

查德貝農，麥格理。

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 tell us that maybe there 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?

你好。早安.感謝您的所有評論。你提到，我認為 4 月是 EBITDA 下降的大部分（如果不是全部），這告訴我們也許存在一點異常，而且聽起來你已經採取了措施來解決某些問題。但也許有點回到了業務的核心。這是未評級的下降，還是疲軟？

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. 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.

我們什麼時候開始面對更容易的比賽呢？我想你說過六月看起來更好了。我們看到一些 7 月的數據似乎相當穩定。那麼，未評級業務是否正在疲軟，可能會損害第三季的一些近期利潤率？或者您認為最糟糕的時期已經過去，其中大部分是在四月感受到的？謝謝。

I think it's fair to say we think that the worst is behind us. However, we are equally awaiting the first reduction in interest rates, which -- and which subsequently hopefully changing the consumer sentiment.

我認為可以公平地說，我們認為最糟糕的時期已經過去了。然而，我們同樣也在等待首次降息，這有望改變消費者信心。

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

好的，謝謝。那麼，您認為這可能成為該消費者的催化劑嗎？

Yes, we think so. Because on the higher end, we're doing fine in the high end, it's not so concerned with that. But on the lower end, where people even save with food costs, that's the area where the improvement is needed in the sentiment.

是的，我們這麼認為。因為在高端領域，我們在高端領域做得很好，所以對此並不那麼在意。但在低端，人們甚至節省食品成本，這就是情緒需要改善的領域。

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? 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?

好的，謝謝。然後，當我們考慮目前的投資組合時，考慮到修訂後的指導意見，在可能剝離投資組合中某些內容的緊迫性或觀點方面是否發生了變化？或者，當您走出困境並在 25 年開始推動自由現金流時，您仍然認為當前的投資組合最有意義嗎？

Yes, Peter, why don't you take that?

是的，彼得，你為什麼不接受這個？

Yes, Chad, as we have said, we are in the process of selling our Polish operations, and we'll then reassess. But certainly, we have some operations that are today a bit problematic with the 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.

是的，乍得，正如我們所說，我們正在出售我們的波蘭業務，然後我們將重新評估。但當然，我們的一些業務目前存在一些問題，而我們正在採取改進措施，根據未來六個月左右的結果，我們將重新評估我們的投資組合。我並不想排除任何事情。所以——但首先是波蘭。

Okay. 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?

好的。波蘭可能會獲得強勁的同店業績和部分續約，這會在未來 6 到 12 個月內發生嗎？

Yes.

是的。

Great. Okay. Thank you, both. Appreciate it.

偉大的。好的。謝謝你們，兩位。欣賞它。

Thanks, Chad. Thank you.

謝謝，查德。謝謝。

[Jordan], Citizens JMP.

[約旦]，公民 JMP。

Hey, good morning, everyone. I kind of want to continue that last conversation. 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?

嘿，大家早安。我有點想繼續上次的對話。對於波蘭資產，我認為租賃期限是我們今天所能達到的最長期限。您是否看到興趣上升？

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 lease is?

我知道它可能已經出售了幾年了，但是隨著時間的推移，您是否看到更多的潛在買家進入了這個畫面，因為我們在租賃方面達到了最佳點？

Peter?

彼得？

Yes, we have. You have Jordan. It is a result of what you just said. The lease terms are pretty favorable right now. It is also because, as Erwin said, the results of the casinos that have been opened last year and are open this year, this April-to-April comparison is very favorable.

是的，我們有。你有喬丹。這是你剛才說的結果。現在的租賃條件相當優惠。也是因為，正如歐文所說，去年已經開業的賭場和今年開業的賭場的業績，這個四月份對比是非常有利的。

And also, the other interested parties have finally realized that the ROI in the Ukraine just doesn't have an impact on not 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.

而且，其他有興趣的各方終於意識到，烏克蘭的投資報酬率不會對玩家、供應商或員工產生影響。所有這些事情加在一起導致了最近出現了一些新的政黨。

Got it. Thank you. And then you kind of mentioned that you could be losing some customers to some of the iGaming states. And this is a totally different direction for the company that you're kind of currently ongoing.

知道了。謝謝。然後您提到您可能會因為某些 iGaming 州而失去一些客戶。對於您目前正在進行的公司來說，這是一個完全不同的方向。

But could you see yourself potentially like white label some form of online gaming platform, very low cost, 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.

但是，您是否認為自己可能喜歡白標某種形式的線上遊戲平台，成本非常低，只是為了捕獲一些邊緣玩家，無論是在西弗吉尼亞州，還是在科羅拉多州的體育博彩，只是為了再次捕獲一些邊緣玩家那些你認為你可能會失去的球員。

Peter, you want to go?

彼得，你想去嗎？

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

這是我們時不時考慮的事情，而且肯定是有可能的。這肯定是有可能的。

Got it. Okay. Thanks everyone.

知道了。好的。謝謝大家。

Thank you.

謝謝。

Thanks, Chad.

謝謝，查德。

(Operator Instructions)

（操作員說明）

J.T. Waters, Private Investor.

J.T.沃特斯，私人投資者。

Hey, good morning, 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 gulf there with nothing, which hurt the results.

嘿，大家早安。感謝您接聽我的電話。我想是彼得，你提到了金塊隊的會議業務，該業務在兩到三年內具有前瞻性，但我們之間存在著鴻溝，什麼都沒有，這損害了結果。

Can you give us any kind of outlook as since it is so forward-looking, what does that look like for the -- really for the next two to three years as far as bookings go? And then I have a follow-up question.

您能否給我們任何一種展望，因為它是如此具有前瞻性，就預訂而言，未來兩到三年的情況是什麼樣的？然後我有一個後續問題。

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 be -- we can't give numbers at this point in time.

是我艾爾文說的。目前，給您展望還為時過早。我可以說這看起來很友好，但我們不會——我們目前無法提供數字。

Okay. Great. And then just commentary on the -- go ahead, sorry.

好的。偉大的。然後只是評論——抱歉，繼續吧。

Yes, 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 are having either our outdoor venue with 8,555 seats and also indoors in winter with 2,000, 2,500 seats maximum.

是的，我想說的是，除了會展業務之外，另一個驅動因素也是音樂會，我們的室外場館有8,555個座位，冬天的室內場館最多有2,000、2,500個座位。

And we are very actively working also on having a significant more content schedule of concerts, 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.

我們也非常積極地制定更多內容的音樂會時間表，其中一些已經在今年剩餘時間內進行，明年還會進行更多，原因是這些活動可以計劃的交貨時間要短得多。

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 weren't pleased with our quarter at the Nugget. But what does the market look like in Reno as a whole?

偉大的。謝謝。然後我有兩個問題，我會聽。所以，如果您能對整個裡諾市場發表評論的話。顯然，我們對金塊隊的這個季度並不滿意。但裡諾的整個市場是什麼樣的呢？

And then also just an overview question. I've been a shareholder, gosh, of 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 what are we good at, right?

然後也只是一個概述問題。不管你信不信，自從你們公開以來，我一直是股東，天哪。而我依然過得很辛苦。如果你能談談你的精神，我們擅長什麼，對嗎？

Do you guys look for undervalued properties where we can put some CapEx into it and improve it? Or kind of give me just what is our -- what does Century Casinos good at, if you will? And I'll listen. Thank you, guys.

你們是否正在尋找被低估的房產，我們可以在其中投入一些資本支出並對其進行改進？或是告訴我我們的——世紀賭場擅長什麼，如果你願意的話？我會聽。謝謝你們，夥計們。

Okay. I'll answer 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 the, call it 0.5 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.

好的。我將回答第一個問題，然後將第二個問題交給彼得。裡諾市場是一個競爭激烈的市場，市場上的營運商非常有經驗，在某種程度上，不僅要看到居住在大里諾地區的50 萬人，還要看到居住在其集水區的人口，主要人群主要來自加州北部、薩克拉門托、舊金山。

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.

最近，飯店市場非常疲軟，我們和我想我們的同事可能也會將其歸因於此時的經濟狀況。彼得，也許你想回答第二個問題。

Yes. Thanks for the second question. Over the many years, we have started mostly with developing our casinos from the ground up. We did in Colorado, we did that in Canada, smaller properties sold.

是的。謝謝你的第二個問題。多年來，我們主要從頭開始開發我們的賭場。我們在科羅拉多州這樣做了，我們在加拿大也這樣做了，出售了較小的房產。

And as we move into larger units, as we move into bigger sizes, 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.

當我們進入更大的單位、更大的規模、更大的市場時，我們專注於尋找價值收購、被當前所有權忽視的房產，然後嘗試改進。

We've 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 were a bit missing the love and attention from ownership because ownership -- previous ownership had bigger fish to fry.

我們在 2019 年開始了這一進程，當時我們從埃爾多拉多（Eldorado）（現在的凱撒集團）購買了三個賭場。這正是我們所尋找的。這三處房產有點缺乏所有權的愛和關注，因為所有權——以前的所有權有更大的魚要炸。

And so we took them over, and there was a success from day one, all three properties increased revenue and EBITDAR under our operation, even though Eldorado was at that time and are considered to be very, very good operators.

所以我們接手了他們，從第一天起就取得了成功，所有三個房產在我們的運營下都增加了收入和息稅折舊攤銷前利潤（EBITDAR），儘管埃爾多拉多當時被認為是非常非常好的營運商。

So, it was an excellent success and that we had to close because of COVID. After opening, it was even greater success. We tried to do similar things with the Nugget and Rocky Gap 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 Nugget, we took out the Term Loan B, and we did that a few weeks before Russia innovated the Ukraine.

所以，這是一次巨大的成功，但由於新冠疫情，我們不得不關閉。開業後，更是取得了更大的成功。最近我們嘗試對 Nugget 和 Rocky Gap 做類似的事情。我們仍然認為這兩種房產具有相同的上漲潛力。問題是，如你所知，為了收購金塊，我們拿出了定期貸款 B，而我們是在俄羅斯創新烏克蘭之前幾週這樣做的。

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. So that was a bit of a double problem for us, both at the Nugget and Rocky Gap. In any case, you still believe in the potential of these properties.

然後利率上升，這不僅損害了我們的利息支出，而且正如歐文已經提到的，我們很大一部分客戶正遭受高利率的困擾。所以這對我們來說是一個雙重問題，無論是在金塊隊還是在洛基峽隊。無論如何，您仍然相信這些屬性的潛力。

It will just take us a bit longer to create the same success story as we did from 2019 with the other three properties in Missouri and West Virginia.

我們需要更長的時間才能創造出與 2019 年密蘇裡州和西維吉尼亞州其他三處房產相同的成功故事。

Got it. Thank you.

知道了。謝謝。

Thank you. And we show no further questions at this time. I will turn the call back to management before closing.

謝謝。目前我們沒有提出任何進一步的問題。我會在結束前將電話轉回給管理階層。

All right. Thanks, everybody. We appreciate you joining our call today. We will talk again after the third quarter. Until then, thank you, and goodbye.

好的。謝謝大家。我們感謝您今天加入我們的電話會議。我們將在第三季之後再談。到那時，謝謝你，再見。

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

今天的節目到此結束，感謝您的參與。您可以隨時斷開連線。