Golden Entertainment Inc (GDEN) 2022 Q4 法說會逐字稿

Good day, and welcome to the Golden Entertainment Inc. 2022 Fourth Quarter Results Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. Joe Jaffoni of Investor Relations. Please go ahead, sir.

美好的一天，歡迎來到 Golden Entertainment Inc. 2022 年第四季度業績電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給投資者關係部的 Joe Jaffoni 先生。請繼續，先生。

Thank you very much, and good afternoon, everyone. On the call today is Blake Sartini, the company's Founder, Chairman and Chief Executive Officer; and Charles Protell, the company's President and Chief Financial Officer.

非常感謝，大家下午好。今天接聽電話的是公司創始人、董事長兼首席執行官 Blake Sartini；和公司總裁兼首席財務官 Charles Protell。

On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements. Additional information concerning factors that could cause actual results to materially differ from these forward-looking statements is contained in today's press release and our filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise.

在這次電話會議上，我們將根據聯邦證券法的安全港條款做出前瞻性陳述。實際結果可能與這些陳述中預期的結果存在重大差異。有關可能導致實際結果與這些前瞻性陳述存在重大差異的因素的更多信息包含在今天的新聞稿和我們向美國證券交易委員會提交的文件中。除非法律要求，否則我們不承擔因新信息或其他原因而更新這些聲明的義務。

During today's call, we will also discuss non-GAAP financial measures in talking about our performance. You can find the reconciliation of GAAP financial measures in our press release, which is available on our website. We'll start the call with Charles reviewing details of the 2022 fourth quarter results and a business update. Following that, Blake and Charles will take your question.

在今天的電話會議中，我們還將在談論我們的業績時討論非 GAAP 財務指標。您可以在我們的網站上的新聞稿中找到 GAAP 財務措施的調節。我們將與 Charles 一起開始電話會議，審查 2022 年第四季度業績的詳細信息和業務更新。之後，Blake 和 Charles 將回答您的問題。

With that, it's my pleasure to turn the call over to Charles Protell. Charles, please go ahead.

有了這個，我很高興將電話轉給 Charles Protell。查爾斯，請繼續。

Thanks, Joe. We had another solid quarter, the second highest Q4 revenue and EBITDA in our history, surpassed only by Q4 of 2021. For the quarter, we delivered revenue of $280 million and EBITDA of $64 million, lower than last year but still significantly higher than the fourth quarter of 2019, with revenue up 16% and EBITDA up 48% compared to that period. For the full year 2022, we generated record revenue of over $1.1 billion, up 2% to the prior year, highlighting strong customer spend at our properties since the pandemic. We generated full year EBITDA of $267 million, our second highest annual EBITDA on record other than 2021.

謝謝，喬。我們又迎來了一個穩定的季度，第四季度收入和 EBITDA 創歷史第二高，僅次於 2021 年第四季度。本季度，我們實現了 2.8 億美元的收入和 6400 萬美元的 EBITDA，低於去年，但仍遠高於去年2019 年第四季度，與同期相比，收入增長 16%，EBITDA 增長 48%。 2022 年全年，我們創造了超過 11 億美元的創紀錄收入，比上年增長 2%，突顯出自大流行以來客戶在我們酒店的強勁支出。我們全年的 EBITDA 為 2.67 億美元，是除 2021 年以外的第二高年度 EBITDA。

Relative to 2021, margins were largely pressured by higher payroll expense and other inflationary costs. However, relative to 2019, our operating margins maintained a 500-basis-point improvement, and our full year EBITDA is up 45%.

與 2021 年相比，利潤率在很大程度上受到更高的工資支出和其他通脹成本的壓力。然而，相對於 2019 年，我們的營業利潤率保持了 500 個基點的提高，全年 EBITDA 增長了 45%。

Before getting into more specifics on our operations, in our press release, we detailed new segment reporting that now breaks out the results of our Nevada-branded tavern operations. The results of our third-party distributed gaming operations for both Montana and Nevada will continue to be reported within our Distributed Gaming segment. This breakout provides further detail on the largest branded tavern portfolio in Las Vegas and highlights that the vast majority of our total revenue and EBITDA is derived from our owned casinos and taverns.

在詳細介紹我們的運營之前，在我們的新聞稿中，我們詳細介紹了新的細分報告，這些報告現在打破了我們內華達品牌酒館運營的結果。我們在蒙大拿州和內華達州的第三方分佈式遊戲業務的結果將繼續在我們的分佈式遊戲部門報告。這一突破提供了有關拉斯維加斯最大的品牌酒館組合的更多詳細信息，並強調我們總收入和 EBITDA 的絕大部分來自我們自有的賭場和酒館。

Within our segment results for Q4, we saw mostly flat revenue comparisons to last year with $3.5 million of additional property level labor costs being incurred across the portfolio. These increases were mostly in the Nevada Resorts segment, where we had to make the largest adjustments to keep up with the labor market at The STRAT and our 2 Laughlin assets. Further contributing to the lower EBITDA in our Nevada Casino Resorts for the fourth quarter Laughlin had 1 less concert, resulting in approximately 10,000 less visitors to our 2 properties compared to Q4 2021. For the first half of 2023, we have already booked 11 events, which should drive more visitation to our Laughlin properties than in 2022.

在我們第四季度的分部業績中，我們看到收入與去年基本持平，整個投資組合產生了 350 萬美元的額外財產級勞動力成本。這些增長主要發生在內華達度假村部分，我們必須做出最大的調整以跟上 The STRAT 和我們的 2 Laughlin 資產的勞動力市場。進一步導致第四季度我們內華達賭場度假村的 EBITDA 較低 Laughlin 的音樂會減少了 1 場，與 2021 年第四季度相比，我們 2 家酒店的訪客減少了約 10,000 人。2023 年上半年，我們已經預訂了 11 場活動，與 2022 年相比，這應該會增加對我們 Laughlin 物業的訪問量。

At The STRAT, revenue increased 3% for the quarter, while occupancy remained comparable to Q4 of 2021 at 77%. In addition to increased labor costs, margins were negatively impacted by decreased gaming revenue, which was driven by our decision to move away from volatile local [Baccarat]. We have since focused on building out a more diverse player database and attracting higher spend levels from retail guests. We have seen some recent success in these efforts with new card sign-ups up 47% in January.

在 STRAT，該季度的收入增長了 3%，而入住率與 2021 年第四季度的 77% 持平。除了勞動力成本增加外，利潤率還受到博彩收入下降的負面影響，這是由於我們決定遠離波動較大的本地 [百家樂]。從那以後，我們專注於建立一個更多樣化的玩家數據庫，並吸引零售客人的更高消費水平。我們最近在這些努力中取得了一些成功，1 月份新卡註冊量增長了 47%。

We still see a lot of potential for improvement at The STRAT. For the full year of 2022, we're still missing 144,000 midweek room nights relative to 2019 when the property maintained occupancy close to 90%. This implies potentially over $30 million of additional revenue and almost $20 million of EBITDA based on our current midweek room rates, guest spend and margin flow through. We expect to get closer to 2019 occupancy levels in the back half of 2023 with the continued recovery of conventions and international travel as well as the anticipated benefit from Formula One.

我們仍然看到 STRAT 有很大的改進潛力。對於 2022 年全年，與 2019 年相比，我們仍然缺少 144,000 個周中間夜，當時酒店的入住率接近 90%。根據我們當前的周中房價、客人支出和利潤流，這意味著可能有超過 3000 萬美元的額外收入和近 2000 萬美元的 EBITDA。隨著會議和國際旅行的持續復甦以及一級方程式的預期收益，我們預計到 2023 年下半年入住率將接近 2019 年水平。

Our Nevada local casino saw continued strong year-over-year performance, increasing revenue and EBITDA over last year's record Q4 numbers. Margins remained at 48% for the quarter, which is up slightly from last year and still up 1,400 basis points over 2019. Our improved local performance is a testament to the continued resilience of the economy and a stable promotional environment in Las Vegas.

我們的內華達本地賭場的同比表現持續強勁，收入和 EBITDA 比去年第四季度創紀錄的數字有所增加。本季度的利潤率保持在 48%，比去年略有上升，但仍比 2019 年上升 1,400 個基點。我們改善的當地業績證明了拉斯維加斯經濟的持續彈性和穩定的促銷環境。

For our Nevada tavern operations, fourth quarter revenue and EBITDA was down from last year, reflecting 64 operating in Q4 compared to 66 last year as we pruned some underperforming locations from the portfolio. In addition, we saw some extended seasonal trends as our top tavern players resume travel in the fall for the holidays that we hadn't seen coming out of COVID and in 2021. We intend to continue to grow the tavern portfolio and believe we can get 90 to 100 locations without adding additional infrastructure costs. We will target at least 4 to 6 new taverns per year. And to that end, we have agreed to acquire 4 taverns, have 1 additional tavern under construction, all 5 of which will be added to the portfolio this year.

對於我們內華達州的酒館業務，第四季度的收入和 EBITDA 比去年有所下降，反映出第四季度有 64 家酒館經營，而去年為 66 家，因為我們從投資組合中剔除了一些表現不佳的場所。此外，我們看到了一些延長的季節性趨勢，因為我們的頂級酒館玩家在秋季恢復了假期旅行，這是我們在 COVID 和 2021 年沒有看到的假期。我們打算繼續擴大酒館組合，並相信我們可以得到90 到 100 個地點，無需增加額外的基礎設施成本。我們將以每年至少 4 到 6 家新酒館為目標。為此，我們已同意收購 4 家酒館，還有 1 家正在建設中的酒館，所有 5 家都將在今年加入投資組合。

Total third-party distributed revenue was flat compared to last year, while EBITDA increased slightly. Our third-party distributed operations spanned over 1,000 locations across all of Nevada and Montana, and our results reflect our market leadership in the states where we operate and the stability of the distributed model even in an inflationary environment.

第三方分銷總收入與去年持平，而 EBITDA 略有增長。我們的第三方分佈式業務遍及內華達州和蒙大拿州的 1,000 多個地點，我們的結果反映了我們在我們運營所在州的市場領導地位以及即使在通貨膨脹環境中分佈式模型的穩定性。

Turning to Maryland. Revenue and EBITDA were both down to prior year, primarily due to weather impacting visitation in December. We have seen visitation rebound in January with more moderate weather and with the implementation of our new hotel revenue management system for the property. Last August, we announced the sale of Rocky Gap for $260 million and expect the transaction to close by the end of the second quarter.

轉向馬里蘭州。收入和 EBITDA 均低於上年，這主要是由於天氣影響了 12 月的訪問量。我們看到 1 月份的訪問量有所反彈，天氣更加溫和，並且我們對酒店實施了新的酒店收入管理系統。去年 8 月，我們宣布以 2.6 億美元的價格出售 Rocky Gap，預計交易將在第二季度末完成。

Moving to our balance sheet. In Q4, we repaid $25 million of our term loan and retired $2 million of our unsecured notes, taking our total debt repayments to $116 million in 2022 and nearly $250 million over the last 2 years. Currently, our total debt outstanding is approximately $910 million, and we ended the fourth quarter with $142 million in cash and no outstanding borrowings on our $240 million revolver.

轉到我們的資產負債表。在第四季度，我們償還了 2500 萬美元的定期貸款並退還了 200 萬美元的無擔保票據，使我們在 2022 年的總債務償還額達到 1.16 億美元，過去兩年的債務償還額接近 2.5 億美元。目前，我們的未償還債務總額約為 9.1 億美元，第四季度結束時我們有 1.42 億美元的現金，2.4 億美元的循環貸款沒有未償還的借款。

We repurchased 329,000 shares of common stock in the fourth quarter and 1.1 million shares during the full year. As of December, we had $61 million remaining under our current share repurchase authorization.

我們在第四季度回購了 329,000 股普通股，全年回購了 110 萬股。截至 12 月，根據我們當前的股票回購授權，我們還有 6100 萬美元。

Our current net leverage is 2.9x, and we intend to maintain our net leverage below 3x going forward. To support that target, we anticipate using the majority of the proceeds from the sale of Rocky Gap to reduce debt. We believe maintaining low leverage and owning our own real estate provides maximum flexibility to invest in our assets, explore strategic alternatives and return capital to shareholders.

我們目前的淨槓桿率為 2.9 倍，我們打算在未來將淨槓桿率維持在 3 倍以下。為支持該目標，我們預計將使用出售 Rocky Gap 的大部分收益來減少債務。我們相信，保持低杠桿率和擁有自己的房地產可以為我們的資產投資、探索戰略選擇和向股東返還資本提供最大的靈活性。

In 2021, our CapEx totaled approximately $30 million as we were cautious on spending coming out of the pandemic. For 2022, we finished the year at about $50 million of CapEx, which included about $10 million spent at The STRAT for renovated suites, a new Asian restaurant and some prepurchases for anticipated CapEx in 2023. So our normalized CapEx for the portfolio is about $40 million per year.

2021 年，我們的資本支出總額約為 3000 萬美元，因為我們對大流行帶來的支出持謹慎態度。到 2022 年，我們全年的資本支出約為 5000 萬美元，其中包括約 1000 萬美元用於 The STRAT 的翻新套房、一家新的亞洲餐廳以及 2023 年預期資本支出的一些預購。因此，我們投資組合的標準化資本支出約為 40 美元每年百萬。

In 2023, we intend to renovate more rooms at The STRAT to provide a more competitive product in order to capture demand from group business and citywide events like F1 and the Super Bowl. We are currently renovating additional 537 rooms, hallway corridors in our pool areas, which should be completed in the first half of the year at expected cost of approximately $30 million in 2023. This will bring the total rooms and suites that we have renovated to 1,200 out of 2,400 rooms at the property, with most of the others having been updated prior to our acquisition of The STRAT in 2017.

2023 年，我們打算翻新 The STRAT 的更多房間，以提供更具競爭力的產品，以滿足集團業務和 F1 和超級碗等全市活動的需求。我們目前正在翻新泳池區的 537 間客房和走廊走廊，預計將於 2023 年上半年完成，預計成本約為 3000 萬美元。這將使我們翻新的客房和套房總數達到 1,200 間酒店擁有 2,400 間客房，其中大部分客房在我們於 2017 年收購 The STRAT 之前已進行了更新。

In addition, Atomic Golf (sic) [Atomic Golf], a new $75 million 100-bay golf entertainment facility is under construction on our excess land behind The STRAT that we are targeting to opening in Q4. For Atomic Golf (sic) Atomic Golf , we are not contributing cash capital to project. We are only contributing a land lease in exchange for revenue participation in the project. We expect our 2023 STRAT projects to add approximately $10 million of annualized EBITDA to the property when complete.

此外，Atomic Golf (sic) [Atomic Golf] 是一個耗資 7500 萬美元的全新 100 灣高爾夫娛樂設施，正在我們 STRAT 後面的多餘土地上建設，我們的目標是在第四季度開放。對於 Atomic Golf (sic) Atomic Golf，我們不向項目提供現金資本。我們只是提供土地租賃以換取參與該項目的收入。我們預計我們的 2023 STRAT 項目在完成後將為該物業增加約 1000 萬美元的年化 EBITDA。

Additionally, we are actively pursuing new tavern opportunities in Las Vegas. Taverns are uniquely positioned to benefit from the growth of Las Vegas since we can target adding locations to areas with upcoming residential development with a modest investment.

此外，我們正在拉斯維加斯積極尋求新的酒館機會。小酒館處於獨特的位置，可以從拉斯維加斯的發展中受益，因為我們可以通過適度的投資將地點添加到即將進行的住宅開發的地區。

For 2023, we anticipate spending approximately $20 million on identified tavern acquisitions and development sites with $11 million already allocated to the 5 locations previously mentioned, which we acquired and are building in 2023. We anticipate a 20% to 25% return on our new tavern investment.

到 2023 年，我們預計將花費大約 2000 萬美元用於確定的酒館收購和開發地點，其中 1100 萬美元已經分配給我們在 2023 年收購併正在建設的上述 5 個地點。我們預計新酒館的回報率為 20% 至 25%投資。

We expect to spend a total of $90 million to $100 million in CapEx for 2023, including the growth projects at The STRAT and our targeted additional new taverns. We will be able to reduce CapEx as we did post COVID should we see a material slowdown in the business environment. Given the significant and sustained margin improvement we have achieved in our operations, the strong outlook for visitation in Las Vegas and the healthy economic conditions of Southern Nevada, our company is well positioned for future success.

我們預計 2023 年的資本支出總額將達到 9000 萬至 1 億美元，包括 The STRAT 的增長項目和我們的目標新增酒館。如果我們看到商業環境出現實質性放緩，我們將能夠像 COVID 後那樣減少資本支出。鑑於我們在運營中取得的顯著且持續的利潤率改善、拉斯維加斯的強勁前景以及南內華達州健康的經濟狀況，我們公司為未來的成功做好了充分準備。

That concludes our prepared remarks. Blake and I are now available for questions.

我們準備好的發言到此結束。布萊克和我現在可以回答問題了。

(Operator Instructions) And the first question will come from David Bain with B. Riley.

（操作員說明）第一個問題將來自 David Bain 和 B. Riley。

Great. I guess, firstly, on the labor increases in 4Q that you noted, just to be clear, the kind of higher profile union issues that some of The Strip chains will be negotiating later this year, that doesn't directly impact you, correct? You've already seen that impact?

偉大的。我想，首先，關於您提到的第 4 季度勞動力增加，需要明確的是，一些 The Strip 連鎖店將在今年晚些時候談判的那種更引人注目的工會問題，這不會直接影響您，對嗎？您已經看到這種影響了嗎？

There will be a derivative of that from one of our assets. That's The STRAT. We do have Culinary Union within that one property but not the others. So it is an important but smaller part of our labor workforce and some of those other companies you mentioned.

我們的一項資產將衍生出它。那就是戰略。我們確實在這家酒店內設有 Culinary Union，但在其他酒店內沒有。因此，它是我們勞動力和您提到的其他一些公司的重要但較小的一部分。

Yes. And just maybe for further clarification, David. I think Charles has mentioned our contract with the union labor force at The STRAT is a hybrid between a strip contract and a downtown contract. So in the past, our terms have not mimicked what they do on the South Strip.

是的。大衛，也許只是為了進一步澄清。我想查爾斯已經提到我們與 STRAT 的工會勞動力簽訂的合同是脫衣舞合同和市中心合同的混合體。所以在過去，我們的條款並沒有模仿他們在南大道所做的事情。

Okay. Great. And kind to choose one here. I guess it seems like some of the new potential markets for distributed expansion have stalled a little bit. Maybe North Carolina is still on. Maybe I'm wrong there. If you could help with that. But beyond jurisdictional growth, after the Rocky Gap sale, you're almost all in Nevada Casino and the Nevada tavern focused. You reviewed growth initiatives and taverns. How do you view that segment, the distributed segment strategically at this point? I mean there's M&A appetite out there. Resiliency valuations are reflected maybe in other companies, but I'm not sure it's reflected here or appreciated. So do we look to grow this business? Are there alternatives? Just kind of a big picture question on that division if I could.

好的。偉大的。在這裡選擇一個。我想分佈式擴展的一些新的潛在市場似乎已經停滯了一點。也許北卡羅來納州還在。也許我在那裡錯了。如果你能幫忙的話。但除了管轄區的增長之外，在出售 Rocky Gap 之後，你幾乎都在內華達賭場和內華達酒館集中精力。您審查了增長計劃和酒館。在這一點上，您如何戰略性地看待該細分市場，即分佈式細分市場？我的意思是那裡有併購的胃口。彈性估值可能反映在其他公司中，但我不確定它是否反映在這里或受到讚賞。那麼我們是否希望發展這項業務？有其他選擇嗎？如果可以的話，只是關於那個部門的一個大局問題。

Yes, it's a great question. And we share your observation obviously that the growth in these new jurisdictions has not met the pace at which we had originally anticipated. And so if you look at our portfolio of distributed assets, we actually operate in 2 distinct kind of rails if you will. One is the third-party distributor in which we support non-owned or separately owned locations with our route operations. The other side is our wholly owned tavern operations here in Nevada, which, frankly, could be transported to other states, which are currently involved in Distributed Gaming, whether it be Illinois, Pennsylvania or others that we're aware of. That side of the model can certainly be transported.

是的，這是一個很好的問題。我們顯然同意您的看法，即這些新司法管轄區的增長沒有達到我們最初預期的速度。因此，如果你看一下我們的分佈式資產組合，你會發現我們實際上在兩種不同的軌道上運作。一種是第三方分銷商，我們通過我們的路線運營支持非擁有或獨立擁有的地點。另一方面是我們在內華達州全資擁有的酒館業務，坦率地說，可以將其運送到目前參與分佈式遊戲的其他州，無論是伊利諾伊州、賓夕法尼亞州還是我們知道的其他州。模型的那一面當然可以運輸。

Specifically, to answer your question, we are pursuing, we do believe, the growth in the tavern side of the portfolio, where we actually outperformed in terms of machine [work per] units and so on, is an area that we are extremely focused on, particularly obviously here in Nevada with the leading franchise. And as well, should Distributed open up -- the pace continues to open up or the pace begin to quicken in terms of new jurisdictions opening, we would see us potentially looking at that side of the business to pursue some -- the growth in that Distributed business. So good question. We are focused on it. We're committed to it, and we like where we're at in our wholly owned side of the distributed portfolio.

具體來說，為了回答你的問題，我們正在追求，我們確實相信，在酒館方面的增長，我們在機器 [每] 單位等方面的實際表現優於其他方面，這是我們非常關注的領域繼續，特別明顯在內華達州擁有領先的特許經營權。而且，如果分佈式開放——繼續開放的步伐或在新司法管轄區開放方面的步伐開始加快，我們將看到我們可能會著眼於業務的這一方面來追求一些——增長分佈式業務。好問題。我們專注於此。我們致力於此，我們喜歡我們在分佈式投資組合中的全資擁有方面所處的位置。

Yes. And I would just add quickly to that. Like if you look at the third-party results in the fourth quarter, they're very stable to up. So I mean that really highlights the resiliency of that model, and we agree with you. It's been underappreciated in the public markets.

是的。我只想快速補充一下。就像你看一下第四季度的第三方結果一樣，它們非常穩定。所以我的意思是，這確實突出了該模型的彈性，我們同意你的看法。它在公開市場上被低估了。

Yes, I agree.

是的我同意。

Next question will come from Carlo Santarelli with Deutsche Bank.

下一個問題將來自德意志銀行的 Carlo Santarelli。

So I'm kind of going to just go along the same lines as David's prior question, but can't help but notice, obviously, you guys decided to kind of split out the Nevada taverns from Distributed Gaming. Obviously, more disclosure is more helpful. But strategically, is there anything to the rationale of splitting it out right now?

所以我有點打算沿著與大衛之前的問題相同的路線，但不禁要注意，很明顯，你們決定將內華達酒館從分佈式遊戲中分離出來。顯然，更多的披露更有幫助。但從戰略上講，現在將其拆分出來有什麼理由嗎？

And when you think about the tavern business as a feeder for you guys throughout Nevada, is that maybe a little bit more strategically sensitive than we give a credit for?

當您將小酒館業務視為內華達州你們的饋線時，這在戰略上是否比我們認為的更敏感？

Yes, I think so. Look, I mean, the taverns, I mean, obviously, the portfolio is predominantly in Las Vegas. And if you look at the size and scale of that business, it's effectively a local -- good-sized local casinos that's complementary to the rest of our portfolio. I mean, we treat them as such. We market to our players as such. We have them integrated with our casino rewards programs.

是的，我想是這樣。看，我的意思是，酒館，我的意思是，顯然，投資組合主要在拉斯維加斯。而且，如果您查看該業務的規模和規模，它實際上是一家本地大型本地賭場，與我們的其他投資組合相輔相成。我的意思是，我們這樣對待他們。我們這樣向我們的玩家推銷。我們將它們與我們的賭場獎勵計劃相結合。

So again, I think from our perspective, I think there's certainly a difference between the businesses that we control and the businesses that we service for others. We try to do both very, very well. But ultimately, the third-party Distributed business, if you look at a property EBITDA perspective, it's less than 15% of the overall operations.

因此，我再次認為，從我們的角度來看，我認為我們控制的企業與我們為他人服務的企業之間肯定存在差異。我們嘗試將兩者都做得非常非常好。但最終，第三方分佈式業務，如果你從財產 EBITDA 的角度來看，它不到整體業務的 15%。

It's important it is, quite frankly, the start of this public company that we have here today. But when you look at the rest of the portfolio, where we see the growth opportunities versus the maintained opportunities, it's more in the other business units than in -- for us -- than within our third-party distributed business that sits within the states we're operating in.

坦率地說，重要的是我們今天在這裡的這家上市公司的開端。但是，當您查看投資組合的其餘部分時，我們會看到增長機會與維持機會的對比，更多的是在其他業務部門中，而不是在我們內部，而不是在我們位於各州的第三方分佈式業務中我們在經營。

Great. And then just to rehash the color you provided, it was $30 million on The STRAT project. It was $20 million on the taverns and then that incremental $40 million to $50 million circles back to the kind of regular way maintenance that you'll spend. Is that accurate to get to that $90 million to $100 million?

偉大的。然後只是為了重複您提供的顏色，STRAT 項目耗資 3000 萬美元。小酒館是 2000 萬美元，然後增加 4000 萬到 5000 萬美元，回到你將花費的那種常規方式維護。達到 9000 萬到 1 億美元是否準確？

Yes. Yes, that's right.

是的。恩，那就對了。

Your next question will come from Cassandra Lee with Jefferies.

您的下一個問題將來自 Jefferies 的 Cassandra Lee。

Charles, you just said that owning your real estate gives you maximum flexibility. But given the misallocation of valuation between kind of private market, public marketing and kind of the OpCo, PropCo how are you thinking about potentially pursuing sale leaseback?

查爾斯，你剛才說擁有你的房地產給你最大的靈活性。但鑑於私人市場、公共營銷和 OpCo 之間的估值分配不當，PropCo 您如何考慮可能進行售後回租？

Well, right now, we think about it as optionality. I mean I think if you look at us as well as some of our peers, owning your own real estate provides you with the cash flow to actually execute on investing in your own assets, reducing leverage as well as returning capital to shareholders. I think that if we were potentially a larger scale portfolio or we were looking at strategic M&A, where synergies far outstripped the incremental rent increases that you'd see on an annualized basis, that it'd be something that we would be pursuing more earnestly.

好吧，現在，我們認為它是可選的。我的意思是，我認為如果你看看我們以及我們的一些同行，擁有自己的房地產可以為你提供現金流，以實際執行對自己資產的投資、降低杠桿率以及向股東返還資本。我認為，如果我們可能是一個更大規模的投資組合，或者我們正在考慮戰略併購，其中協同效應遠遠超過你在年度基礎上看到的增量租金增長，那將是我們會更認真地追求的事情.

That being said, I think there's an ultimate backstop to the value of the company that's embedded in the underlying real estate. And I think that over time to the extent that we are not able to see the appreciation of the value in our shares from a multiple expansion perspective, it's something that we will consider more strongly.

話雖這麼說，我認為嵌入基礎房地產的公司的價值有一個最終的支持。而且我認為，隨著時間的推移，從多重擴張的角度來看，我們無法看到我們股票價值的升值，這是我們會更強烈地考慮的事情。

Yes. And I'd like to just add to those last few comments to Charles, as I have said in my previous comments on previous calls and reiterate what Charles said in his prepared remarks, I believe owning our real estate offers us the ultimate flexibility. And by targeting a balance sheet that's less than 3x levered, gives us plenty of opportunity to drive value within this company in other ways while maintaining that flexibility of owning our own real estate. So I think Charles outlined that very well.

是的。我想補充一下對查爾斯的最後幾條評論，正如我在之前的電話評論中所說，並重申查爾斯在他準備好的發言中所說的話，我相信擁有我們的房地產為我們提供了最大的靈活性。通過將資產負債表的槓桿率設定為低於 3 倍，我們將有大量機會以其他方式在公司內部推動價值，同時保持擁有自己不動產的靈活性。所以我認為查爾斯很好地概述了這一點。

Obviously, there -- as Charles said, we look at it as kind of optionality or a backstop if you will. But at this point in time, we believe where our balance sheet sits, there's significant ways for us to drive value with this company without monetizing the real estate at this point.

顯然，正如 Charles 所說，我們將其視為一種可選性或支持，如果您願意的話。但在這個時間點，我們相信我們的資產負債表所在的位置，我們可以通過重要的方式來推動這家公司的價值，而無需在此時將房地產貨幣化。

Great. And if I may just have a very quick follow-up since you mentioned strategic M&A, can you tell us what -- how do you observe -- has there been any change in kind of the industry's M&A dynamic? Has valuation come down at all or went up since we last spoke?

偉大的。如果我可以在你提到戰略併購後快速跟進，你能告訴我們什麼——你如何觀察——行業的併購動態有什麼變化嗎？自從我們上次談話以來，估值是下降了還是上升了？

I think that the private valuations are still disconnected from the public valuations. I think you see private transactions, i.e., the private marketplace taking a longer-term view around value that we're seeing in the public markets right now given where multiples are in the sector. .

我認為私人估值仍然與公共估值脫節。我認為你會看到私人交易，即私人市場對我們現在在公開市場上看到的價值採取更長期的看法，因為該行業的倍數。 .

And that is still continuing. I think you'll still see transactions that are accretive or at premiums to where the current sector trades. I think there will still be consolidation in the sector despite higher rates as strategics and private partners take a longer-term view on the strength of this business.

而且這種情況仍在繼續。我認為你仍然會看到與當前行業交易相比具有增值性或溢價的交易。我認為儘管利率較高，但該行業仍將出現整合，因為戰略和私人合作夥伴對這項業務的實力持更長期的看法。

The next question will come from Ricardo Chinchilla with Deutsche Bank.

下一個問題將來自德意志銀行的 Ricardo Chinchilla。

You guys mentioned that some of the proceeds from the sales will be used to take out debt. Have you guys decided how the capital structure moves towards the end of the year? Do -- you guys are planning on taking out the bonds and changing the fixed versus variable debt mix? Or how are you guys thinking about any potential debt repayment?

你們提到，部分銷售收入將用於償還債務。你們有沒有決定資本結構如何走向年底？做 - 你們計劃取出債券並改變固定債務與可變債務的組合嗎？或者你們如何考慮任何潛在的債務償還？

Yes. I mean, look, I think it's a little early for that. We've certainly been thinking about it quite a bit. I think we'll have more color around that when we have more visibility on the specific timing on the closing of Rocky Gap.

是的。我的意思是，看，我認為現在還為時過早。我們當然已經考慮了很多。我認為當我們對 Rocky Gap 關閉的具體時間有更多的了解時，我們會有更多的顏色。

I would say that having a less-than-3x-levered company doesn't make it a discussion about can we do a refinancing in any way, shape or form we want to, it's a question about what is the optimal refinancing for the company at the right time.

我想說，擁有一家槓桿率低於 3 倍的公司並不能討論我們能否以我們想要的任何方式、形狀或形式進行再融資，而是關於什麼是公司的最佳再融資的問題在正確的時間。

The next question will come from John DeCree with CBRE Securities.

下一個問題將來自 CBRE Securities 的 John DeCree。

I wanted to circle back to The STRAT. Charles, I think you gave a little bit of color in your prepared remarks. But if you wouldn't mind rehashing where occupancy was in 4Q, I think you maybe said high 70s and where '19 was and your kind of view on getting back to there. This year, we obviously have a pretty busy convention calendar in 1Q. So just kind of how you're looking at the bridge and occupancy recovery and maybe some forward-looking commentary on your bookings for what looks like a pretty busy convention season in 1Q.

我想回到 The STRAT。查爾斯，我認為你在準備好的發言中加入了一些色彩。但如果你不介意重新討論第四季度的入住率，我想你可能會說 70 年代的高點和 19 年代的位置以及你對回到那裡的看法。今年，我們顯然在第一季度有一個非常繁忙的會議日曆。因此，您如何看待橋樑和入住率的恢復，以及對您的預訂的一些前瞻性評論，這些評論看起來像是 1Q 的一個非常繁忙的會議季節。

Yes. I'll give you an overview of that, and Blake will add to that, I'm sure. So I think when we -- what the comments I mentioned were that we ended up at about 77% occupancy for the quarter, very comparable to last year. But where you really see the difference is weekend versus midweek. So we were basically full on the weekends and running less than 70% occupancy during the week.

是的。我會給你一個概述，Blake 會補充，我敢肯定。所以我認為當我們 - 我提到的評論是我們本季度的入住率約為 77%，與去年非常相似。但是你真正看到區別的地方是周末和周中。所以我們基本上週末都客滿，而一周的入住率不到 70%。

I think from a rate perspective, we feel pretty comfortable about where we are and we like where we're heading. And this leads into why we feel that we should be renovating more rooms. We're getting a $15 to $20 premium on those rooms that were renovated. We saw that through the first batch. And so again, we think in order to prepare for these big traffic drivers that everyone is well aware of from F1 to Super Bowl to more conventions to March Madness coming into town that we need to have a competitive product to benefit from that.

我認為從利率的角度來看，我們對自己所處的位置感到非常自在，我們喜歡我們前進的方向。這就是為什麼我們覺得應該翻新更多房間的原因。對於那些經過翻新的房間，我們可以獲得 15 到 20 美元的溢價。我們通過第一批看到了這一點。因此，我們再次認為，為了為從 F1 到超級碗，再到更多的大會，再到瘋狂三月的到來，每個人都非常了解這些大交通司機，我們認為，我們需要有一個有競爭力的產品來從中受益。

The specifics around what are missing are 144,000 midweek room nights relative to 2019. And so if you just take the midweek rate, which is roughly around $110, including resort fee, average spend per visitor, assuming double occupancy and run that type of flow-through through the various components, whether it's gaming revenue or F&B, that is where we see $30 million in revenue and $20 million EBITDA opportunity just to get those folks back.

與 2019 年相比，缺少的具體情況是 144,000 個周中間夜。因此，如果你只採用周中房價，大約為 110 美元左右，包括度假費、每位遊客的平均消費，假設雙人入住並運行這種類型的流程——通過各種組成部分，無論是遊戲收入還是餐飲，我們都看到了 3000 萬美元的收入和 2000 萬美元的 EBITDA 機會，只是為了讓這些人回來。

So does all of that matriculate in this year with the convention calendar and those drivers? We certainly hope so. But even if we get half of that back, it's meaningful of the property in addition to those growth initiatives that we just noted.

那麼今年所有這些都與大會日曆和那些司機一起入學嗎？我們當然希望如此。但即使我們收回了其中的一半，除了我們剛剛提到的那些增長計劃之外，這對財產也很有意義。

Yes, I think, obviously, what Charles is saying is we've been focused on what's going on citywide to produce more of our room bookings going forward this year but also a key component to what we're doing. And I think you have to look at The STRAT, what we're doing at The STRAT kind of in components as we build on each component. But the capital investment as you recall, when we first took ownership of that property, there was little or no bookings -- direct bookings happening through the property. It was all OTA and online in addition to what to the city of Las Vegas and what's happening here. We are -- we have instituted a very robust casino marketing program, a very robust direct communication program with our guests that we're now generating through these investments. And I think that component, over time, will continue to build, in particular, help us midweek.

是的，我認為，很明顯，查爾斯所說的是我們一直專注於全市範圍內發生的事情，以便在今年產生更多的客房預訂，但也是我們正在做的事情的關鍵組成部分。而且我認為你必須看看 STRAT，我們在 STRAT 做的是在我們構建每個組件時在組件中做的事情。但是您還記得資本投資，當我們第一次獲得該物業的所有權時，幾乎沒有或根本沒有預訂——通過該物業進行的直接預訂。除了拉斯維加斯市和這裡正在發生的事情之外，這一切都是 OTA 和在線的。我們 - 我們已經制定了一個非常強大的賭場營銷計劃，一個非常強大的與我們現在通過這些投資產生的客人的直接溝通計劃。而且我認為隨著時間的推移，該組件將繼續構建，特別是在周中幫助我們。

In terms of a time frame, that's hard to say. I mean, we know what the special events are coming and the activities that are coming in Las Vegas. Those are pretty easy to predict. But the midweek is obviously where we're focused and we believe internally a large part of our success lies within ourselves and how we marketed that property as we begin to build out amenities that attract people for longer stays and longer time on the property.

就時間框架而言，這很難說。我的意思是，我們知道拉斯維加斯即將舉行的特別活動和活動。這些很容易預測。但周中顯然是我們關注的重點，我們相信在內部，我們成功的很大一部分在於我們自己，以及我們如何營銷該房產，因為我們開始建造吸引人們在該房產上停留更長時間的便利設施。

That's helpful. I think you guys both covered most of my thoughts -- questions there. But maybe one. When you're full on the weekends, are you seeing the ability to push rate comparable to what we see in the LVCVA monthly data? Or do you need kind of mid-week occupancy to come back to kind of help raise rates across the whole property on all days?

這很有幫助。我想你們都涵蓋了我的大部分想法——那裡的問題。但也許一個。當你在周末吃飽時，你是否看到了與我們在 LVCVA 月度數據中看到的相媲美的推動率的能力？或者您是否需要某種周中的入住率來幫助提高整個酒店所有天的利率？

No, we are pushing rates on the weekend. I mean, so that is comparable to what we see in the LVCVA. This property will potentially hurt more than others on the south side of The Strip when that midweek and convention group business isn't filling up the convention center, isn't filling up the entire town. So we will probably hurt more in the midweek than they will, but we could actually flex just as much or more on weekends with the room base.

不，我們在周末推高利率。我的意思是，這與我們在 LVCVA 中看到的相當。當周中和會議集團的業務沒有填滿會議中心，沒有填滿整個城鎮時，這處房產可能會比拉斯維加斯大道南側的其他房產受到更大的傷害。所以我們可能會在周中受到比他們更嚴重的傷害，但我們實際上可以在周末與房間基礎一樣或更多地彎曲。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Charles Protell for any closing remarks. Please go ahead, sir.

（操作員說明）我們的問答環節到此結束。我想將會議轉回給 Charles Protell 先生作閉幕詞。請繼續，先生。

Thank you all for joining the call. We'll speak with you for our Q1 results.

感謝大家加入電話會議。我們將與您討論第一季度的結果。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。