Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of the expected margin progression for Chamonix in 2025? A: Daniel R. Lee, CEO, explained that while the casino has been growing revenues, expenses have also increased. However, he is optimistic about future growth, citing the potential for significant revenue increases as the market matures. He expects steady revenue growth over the next two to three years, which should exceed expense growth, resulting in higher margins.
Q: How is the marketing strategy evolving, particularly with mailing lists and conventions? A: Daniel R. Lee, CEO, acknowledged the mixed success of recent mailing list campaigns and emphasized the importance of learning from these experiences. The company plans to be more selective with future campaigns and is also focusing on building its sales and marketing team to drive convention business, which is crucial for midweek occupancy.
Q: What is the outlook for the legacy portfolio outside of Illinois and Colorado? A: Daniel R. Lee, CEO, mentioned that the Silver Slipper should be earning more, and he has high hopes for improvements under new management. The Grand Lodge Casino at Lake Tahoe is expected to remain stable, while Rising Star Casino faces challenges but has potential growth opportunities if relocated to Fort Wayne.
Q: How is the competitive landscape in Cripple Creek affecting your operations? A: Daniel R. Lee, CEO, noted that Full House Resorts is responsible for over 100% of the growth in Cripple Creek and the state, indicating that while competitors may not be significantly impacted, the market is expanding due to their new offerings.
Q: What are the plans for capital expenditures and free cash flow in the coming years? A: Lewis Fanger, CFO, stated that maintenance CapEx is expected to remain in the single-digit millions annually. The timing of significant expenditures for the permanent casino in Waukegan will depend on market conditions and financing availability, with flexibility in the timeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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