Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Given the challenges at Chamonix, has that changed your plans for American Place in terms of design, gaming floor, size, amenities, or the overall minimum guaranteed spend? A: No, it hasn't changed our plans. The guaranteed minimum spend is $500 million, of which $175 million has already been spent. We are confident in our approach and have been inspired by successful projects like Hard Rock in Rockford and Durango Station. Our focus is on creating a unique experience tailored to the Waukegan market, which is different from Chamonix's mountain location.
Q: Are you seeing any changes in prices for construction materials due to tariffs, and is there a way to hedge against these costs as you start construction in Illinois? A: While there are ways to hedge, such as buying steel futures, we haven't done so. We are assuming higher costs in our design to build within the $325 million budget. We are also being smart in our design to mitigate potential cost increases.
Q: Are you actively looking for other M&A opportunities, and what are the guardrails if you pursue this path? A: We are not actively looking for acquisitions. Our focus is on executing our current projects, which we believe will lead to significant growth. We are cautious about acquisitions as we want to ensure any deal is beneficial and doesn't disrupt our current trajectory.
Q: Can you provide more color on the ramp-up at Chamonix, particularly regarding operating expenses and gaming volumes? A: It's challenging to assess on a month-to-month basis, but we aim for $10 to $15 million in EBDIT this year. We are addressing staffing shortages in areas like dealers and masseuses, which are crucial for revenue growth. We are confident in reaching our targets as we refine operations and management.
Q: What are the February results for American Place, and how does the customer base look? A: While we hesitate to provide exact numbers, American Place has consistently shown revenue growth of around 20% year-over-year. The customer base remains robust, particularly in underpenetrated markets like Waukegan and Colorado, which bodes well for future performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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