PENN Entertainment (PENN) 2 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Joseph Jaffoni	Investor Relations
Timothy Wilmott	Chief Executive Officer
Jay Snowden	President and Chief Operating Officer
William Fair	Chief Financial Officer
Harry Curtis	Nomura/Instinet
Steven Wieczynski	Stifel, Nicolaus & Co.,
Felicia Hendrix	Barclays Capital Inc.
Barry Jonas	SunTrust Robinson Humphrey
Carlo Santarelli	Deutsche Bank
Chad Beynon	Macquarie Capital Securities
Joseph Greff	J.P. Morgan & Co.
Thomas Allen	Morgan Stanley & Co. LLC.
Shaun Kelley	Bank of America Merrill Lynch
David Katz	Jefferies & Co.

Call transcript

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Operator

Greetings, and welcome to the Penn National Gaming First Quarter Conference Call.

During the presentation all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Mr. Joe Jaffoni, Investor Relations. sir. ahead, go Please

Joseph Jaffoni

your morning, XXXX thank We'll first and Harbor well management's Good I'll but Penn the review get for National presentation Safe as as momentarily Gaming's quarter comments and everyone, Sylvana. answers, you first and disclosure. joining to questions Thanks, conference call.

These anticipates Reform statements risks In within the of intends, the or conditions, can Act XXXX, will, conference performance, Such forward-looking involve of statements Litigation similar which of to and uncertainties. not by seeks, and expenditures plans, as or addition or of of facts risks call identified beliefs, today's and results. the meaning by developments, terminology, variations Private and current may, including forward-looking projects, historical are future expects, the operating contains events, statements be other Securities these words forward-looking performance. plans, estimates, future believes, current acquisitions, use strategies should uncertainties, such or Company's expectations but capital of strategies, negative discussions or statements or or of the reflect guarantees future

non-GAAP today's such, announcement financial Company's Tim? pleasure results on the the Securities Wilmott. in can directly As Form including accordance Exchange from financial associated in Today's turn for website. G. today's National's with the in and vary to expectations. with and found And the statements. when GAAP within to it's forward-looking Penn Commission, National release comparable actual will meaning press the call forward-looking to materially filings Form presented described the a are my most with now calculated your required, of patience Regulation measures and and as risks of all in or CEO, the and reconciliation SEC financial on Company's any you over non-GAAP Tim statements call revise with Gaming The Penn include be publicly reports that, may XX-Q. measure measures and to well the Thank as XX-K assumes Company's update uncertainties and no webcast obligation news

Timothy Wilmott

Joe. be President Thank first After I'll then Jay National's good quarter Snowden, followed comments, I Financial morning be XXXX Chief call. Chief by some following provide Penn Operating Officer. introductory Officer. B. our you, Fair, conference will and Jay J. And our And to

primarily we the talk our managed softer very structure results loyalty about Let's And our you period able in were adjusted of very, well. million. little volumes of quarter couple to guidance bit a EBITDA acknowledge our Midwest, out really meet our as marketing to Despite we $XXX.X cost adjustment team to prior Northeast. first one-time the for begin who after looked whether in have back results. in first program, months at operations due the the to the the I

Our cleared, improvement results and XX finished results. comment demonstrated EBITDA facilitate the that quarter month points. the margin strong for the very to help in do March, of basis I weather after a want by these year-over-year And

by program, end are At we're achieved by $XX rate the which be in million. of end by of mychoice completion our loyalty of end be at the at $XX to cost this will estimate we place that other about at implementation million the our We will Pinnacle where achieved first revenue XXXX, and XXXX. the with million believe we of We're end and that And quarter, to did we've on on Moving in XXXX the of million to of still the million now announce run synergies. by XXXX million July. $XXX $XX the million. of of properties of XX% $XX Most synergies be update $XX will that for cost catalyst today be run increasing the all $XXX a will an the the synergies integration. from that of of and realized rate our coming

Turning closed XXXX. announced we to City Margaritaville early development Bossier in January in of M&A an as acquisition in our activity, on we update

are working pending them We and with their Michigan approval. regulators

expect $XXX purchase then landlord. category assets by to VICI of operating in and New specifically end Morgantown. in the four We York on Greektown in close Detroit Pennsylvania, as our on the in our the with May, in casinos of And million partnership update

of lease under sheet just by able I'd provide turn target balance reduce expect in to the we're we Jay? the just Pennsylvania. we there to $XXX to XXXX through the of and cash reduce we first color quarter, the and what's million on remain traditional in and over return. little open Hollywood our Penn We second more to our going adjusted Snowden deleveraging end process Jay of National, quarter operating approval continue half on free that, finally, reiterate, cannibalization on by X.Xx XXXX. Central to the utilizing And at call both to leverage to of on in work Casino net $XX generate to and of believe debt segments a flow north will first focused the under to With and the investment million the bit we This combined remain business. like XX% a our cash including in our cash

Jay Snowden

orthodoxies. definitely $XX Also, first Tim Thanks, $XXX be best-in-class brings in accelerating offset of results, and unique separate Well, quarter. aside. million are on efforts as across to best the as corporate industry to to Tim. long impacts current to the $X our that of of and the as in from property everyone winter the March, very monthly million is and challenge The the XXXX Transaction, our million mentioned, incremental helped this sharing These the into demonstrated energies $XXX our mentioned, still million from of in was target weather $X continuing the incremental forward Those pulled Pinnacle total the and last million realized Tim are program later another in held our $XX XXXX. of speaks bring consolidated and rate mychoice to $XX the $XX the momentum properties was synergies of gain The run in XXXX player synergies with January, XX launch current across were portfolio. were organization we the as announced call. leaders identify and summer. as costs enterprise million, million cost all-time We to million harsh weather in in our cost able quarter affinity strong morning health March to to consumer. nine posted we to performance pleased general EBITDAR practices particularly which $XX million. prepare energy February Good record revenue of we results wide beginning QX the

March, Moving back ultimately January topline Northeast Pennsylvania, in the and that markets to first the Council played impacted results February severe EBITDA and in and aforementioned Chicago quarter in our overcome softness negatively was the that in first to quarter. regions regional weather and much bounce cause results, our despite Bluffs too Midwest

by a property that the of with top region, and and line, a in Colorado. West Hawk margins highlighted an record experienced are and we weather year-over-year the EBITDA quarter both quarter revenue, solid Black issue in less on to bottom Moving

issues in year-over-year. Finally south the significant no region, weather which experience

QX the smoking versus EBITDA note City impact ban growth of bridge produced is Lake by in over double-digit EBITDA acquired grew recently and work the inclusive Charles. including the Margaritaville south, percentages our X% of property I-XXX in Rouge half of of properties in Baton Our in Of the Bossier XXXX.

the on by a good shifting continue VIP results Now lower table year-over-year Mississippi. as some due and state us refine statements, continued betting high West to to robust sports about per we while introduction state across visit story rollout very games trends partly in country. EBITDA. and quarter mixed books legalization growth all profitability strongest and Virginia, across our work database to of excited Pennsylvania filters we visitation retail our more the year-over-year and These a is bag sports with have the work record, maximize level were trends, to posted of at the statements remains declines spend

that, due of As good the mobile states will employment, it With in May, the the B. at we predominantly to the about have the tax or year. stock betting, year-over-year prepare casino near markets us market in off sports company to on growth, consumer as of values April, and close the operating have we Penn end opportunities creating future. performance, far any wage regional remain near shift the be regard gaming, significant and refund indicators XX Greektown well value hand iCasino all-time and in results With to home That J. as of transaction noise. presenting highs of the feeling at some I'll confidence most in U.S., economic the remainder said, Easter by to the mixed soon for been

William Fair

I'd and assumptions update good Jay, May, Greektown to by that guidance our does I'll an are Thanks, close everyone. XXXX projecting end include for we to not our provision morning, to the although remind of guidance. everyone provide Greektown any or like performance.

underlying second for to guidance release. guidance revenue full-year million XXXX $X full-year and quarter flow our only high detailed $X.XXX the assumptions of an a reduction or Tunica. in of resorts the first reduction guidance includes the are the on is addition, billion. the the results the with identified and associated release. closing release X revenue through is item $XX attributable in the in guidance plus updated press update a guidance of and of property synergies found provided our On in revenue primarily X announced In The previously The for Pages the to the guidance. level, operating line cost our We've million incremental the quarter

guidance estimated EBITDAR remainder first adjusted billion, the operating through reflects Our the but the quarter full-year otherwise the maintains the for our be for which of EBITDAR year. is flow of $X.XXX results, to

million. lease, the lease total Master amended forecasted lease, the to the lease, Penn including year Meadows Pinnacle $XXX the Margaritaville and for are the be lease payments Our

coverages for the is other years. as net escalators guidance. and flow hand change the $XXX Free lease our Penn at no the million. incur identified taxes obligations lease was on did to after expect full the cash the mandatory release Our the lease. lease amended We and November lease X/XX/XXXX as are there's of expect $XXX maintenance escalation was CapEx and X.XX, $XXX and to or follows; each debt Meadows their under amended payments under Meadows lease end is We Penn Pinnacle to not free are do cash year generation at flow of respective million. for interest Cash estimated Cash of expected cash million lease in X/XX/XXXX as Master trailing X.XX. at XX the was months the incur Master lease was Pinnacle X.XX, rent in and

Our and gross lease of and respectively. X.XX was ratios as net X.XX adjusted leverage X/XX/XXXX

generation the XX Our cash of pace X.Xx to remains XX EBITDAR of months X.Xx return our to close on Greektown. following flow ratio to target to leverage within

covenants will All of be comfortably our met. debt

So just quarter. the to regarding explanation one final the we that accrual note point one-time adjustment in liability prior that periods was took related of an

migration we important was EBITDAR Company database customer to of accounting worth and of to loyalty also our new adjustment, account. accrual financial was amount million reports in customer to the the for the with discrepancy the revenue discrepancy adjusted no $X the had believe contra customer The we charge identify discrepancy During to the our guidance. the that individual reporting, it a years of since material was The our point our performance noting absent impact accounts. was system, incorporated consistent our only to related not prior accounting upgraded operating the related It's but the is to accrual. liability

depressing to has that, first by of it the it our Tim. quarter $X And turn also So back million. impact with revenues I'll

Timothy Wilmott

B. Thank from we're our to take ready you, now Operator, questions audience. J.

Operator

of question Instructions] line comes your Curtis proceed Please Instinet. with with Harry you. question. first Thank [Operator our And the from

Harry Curtis

at to locations talk Good Or you like question. fill? I've morning, the are your that part there of when in going everyone. you drive could shareholder the forward here? with are about using you're to a Thanks. And map U.S., then value you're Tim, if got then going two you'd be satisfied holes look the strategies satisfied, you from your to distribution? that if

Timothy Wilmott

certain Jay be in to But Penn Harry don't we certainly going in representation we're could as for commentary, are that be different jurisdictions. an XX play there have one-off that opportunistic said in National. Well, his markets

the the said and a integrations I've tuck-in we to as And like transactions So return delever on plate current remainder we in XXXX as flow our footprint. synergies M&A we opportunity to certainly execute our to accretive the appropriate that, just if soon geographic to transaction, we give of realize transaction, generating Margaritaville be shareholders. that set completed that'll were to about realize the as lot as going Pinnacle and continue the calls, in of shareholders lot XXXX, against on cash do to hopefully prior of a with Greektown synergies acquisitions those transaction, us free execute we've into and capital be think got to the are to that to our to if to continue those and

So else, we to think this next of to generate our lot value for balance come. absent into nothing is the to years a on going execute shareholders have I to year over year that the

Harry Curtis

to point this on sense point? the follow-up strip? an the this quick Based aggressive Is a the unrealistic for looking it it maybe and Thanks cycle asset that. on think are multiples makes the where strip at today just to on on in that at on

Timothy Wilmott

plate the our at where that on couldn't that. the multiples Harry, given I focus team on landlord the use certainly be enough to now. right it on to think points I do It on certainly acquisition. us said we We focus where certainly in the strip alone. to kind would we've need multiples as mean, and are of But execute ability I their things challenging for before, a near-term that to has do got our to some

Harry Curtis

good. Appreciate you. Okay. Thank Very it.

Operator

with Our Wieczynski next Steve the line your comes of from question. Stifel. with Please question proceed

Steven Wieczynski

morning. Good guys. Hi, Yes.

tiered pretty and I the your of care around promotional most Jay the spend have here seen guess, don't comment But change I'm customer tier those guess general, lower at weakness I the that around customer to really said customer. you about in environment marketing that So just And guess is I you're which is or about gravitate properties given seeing, getting the competitors low rational level, you you expected what country? is in administering customers. you question overall

Jay Snowden

level It now. parts have and Chicago And even in a at it we And the Steve. of Sure. up industry really the the points flare is given some the at way worth look is typically statements year profitable. [indiscernible]. the of of Mississippi year rational customers saw just last that or low right Northern number those on last we reinvestment in there's of on in

migration there customers. seen around But less we've you the a you're have seen we'd but come providing of are be is why shift, what low are trips them any profitable. property, to worth thoughtful years. offers number a several the a coming to unrated unrated so And frequently. That's that customers inducements they're times still seen what which rated when segment where the receiving those really they're frequency And not we've last Many from those database. growth in And is that then down. are they visit, more, why is for to

So the we're comfortable with migration.

gaming in also think regional within I Penn seeing across general. just the it but not database, you're

lot to competitors I years going a these think and probably you're see are the if that quarters, movement come. to trends same not Our I making continue to think of for are

Steven Wieczynski

Gotcha. Okay. I Jay, then, another you And guess. for question

saw south the a weather more was looked talked kind March south receipts being, of the where I help for stuff kind And you something you strong, I guess, think visitation I tax just function or talked quarter, it used was specifically at it's it because seen in so choppy to those market Do think where as look you know levels little kind you've choppy just, April no maybe you there think off along guidance it your the impact think of is that. of kind I that. bit like word I or and around you March said and about what still maybe that, more that's what if second fall the lines. like something of markets is of of you a something, but of you April you about is, or saw think a some about those us in is maybe is or was you

Jay Snowden

Yes.

in Easter - the was due month entirely year, the shift. it of month last or entirely an in in of most it we're your was what chop and is of think the it entirely It term almost I why I use largely mixed seeing the April mentioned April. March was to

So I've you have a weekend, last weekend. only four

You have five Tuesdays. Mondays and five

of So comps. April the that we'll not to remainder was be anticipate the we strong. set up year-over-year have great And year

calendar hard set only that bit us same for It's through, mentioned starting going is in May I quarter and some little going play to that and the consolidating mentioning program. as specific the in that aggressively card we're of a that place year. of the to Tim June did market and be player is think platform, we're takes favorable and that program lot XXX% second have April work You second loyalty The a on a half thing loyalty more then is up you the other and disruption QX. to mychoice, system, and worth for our same

And the half year, second half be so anticipate the of stronger we year. the the it'd than first

Steven Wieczynski

Appreciate Thanks Okay, great. guys. it.

Operator

from with Our Hendrix comes next line Please proceed your Felicia question. question Barclays. of with the

Felicia Hendrix

Hi, here. that hot good you Jay, seat keep morning thanks. we'll on and

think should pull wondering understand you how forward go any in us to to forward a to $X realize and first that confirm in realized understand quarter, this you basis synergies if just I'm wondering was energies? the it quarter. if mechanically, I incremental and you you in then there's then about by way that initial we guidance million could to were that on entirely what incremental help And us of just that So could the able do help was wanted your the quarter.

Jay Snowden

Felicia. Sure,

into incremental had was that XXXX million QX into what pulled and the yes, to forward $X - previously stated. So we we

So XXXX, at rate today, we're of million in $XX in had now synergies and XXXX million run XXXX we and and $XX in communicated $XX before of rate $XX XXXX. run synergies million in

So though on and incremental initiatives little identified had brought at the of is cost incremental as also there's an we've in comfortable to QX. move have and $XXX side a $XX and we've we've of that up but corporate was process, just what at months, we of can there's gotten going some areas in six Look, million the into planned better QX synergies. us forward. QX forward what that on or the the labor that million we lot bit a efficiencies with feel throughout procurement categories, number acceleration of synergies. to so the just we then a in cost level, happen level, of It's and And marketing not we last minimum new management as of come hit a lead property

Felicia Hendrix

how quantify so And quarter, kind are you that guidance to about think when of of coming is much we from willing synergies? second

William Fair

million X is way Felicia to modeling probably per remaining probably it. I the quarter million think think it's to in rate safe you've that XXXX, for purposes easiest about assume run so got $XX

Felicia Hendrix

use from opening you the some guidance in in just headwinds. you And as wondering you just, helpful. listed And of also - a But Monarch Plainridge, that maybe your one couple super what there's impact that that you or of June? for That's of then positioning light the could just of - are some the Okay. in release is just just was have about property [indiscernible] I of way of lot advantage terms wind Plainridge terms of any your that opening in thinking well-known initial your to things, on had opening. if you're you the how Casino. assumptions that a regionally, wondering in then

Timothy Wilmott

Sure.

going end delay that did QX. read earnings the So a Monarch expansion from and hitting up we first, to the hotel release by to Monarch be casino time the there's open

think the I headset end previously of QX.

to very happy just our have phase understand. at to opening close Black our we're Is a any modeling Black Hawk that as Hawk We of regards So it results enough not adjusted with property. with not throughout look QX? the we're

margins had best of and we business in mentioned momentum bottom we've is a ever, our extremely there. prepared remarks, topline, quarter got my I line As lot strong. and VIP

think those while reasons renovation competitors with to I to business give and move forward. up as we plan picked going some customers us we expansion are we or through stay

we With we about a remainder anticipate So modeled. property. nine did six, certainty for there to the was our always build June what the around I had would Plainridge, modeling. not that Black the now XX of been months. date. year, for date QX now certainly there out into solid opening That regards that has Hawk But That's

guided we quarter, opening on forecasted for the and And for them knew so we the always date. year, that as that and date second anticipated

not did moving impact it our forward. So guidance

Felicia Hendrix

a X.X that thanks. your inclusive full-year back before for the then quick J. or from that And just Okay, B. quarter? million question is housekeeping of first add guidance, that the

William Fair

the all It's That's inclusive of rolled forward. $X.X million.

Felicia Hendrix

you. Okay, great. All right, Thank super.

Operator

question next Barry line of from the comes proceed with Our Jonas Please question. your SunTrust. with

Barry Jonas

to relates said, else. in guess which the Hi lower accounting miss? all a guys. your got I just about $X $X.X through the things to guidance you of see as and wanted part to Ohio you've true maybe I $X.X the the the that those before. then But assumption, - compositionally then or of rent QX the that I bit flowed flow little million there's QX. and up it's through million also as something million rent how to really how just Thanks. then in - as guidance million the believe float $X.X with trying I escalators synergies the dig you million, I'm than understand $X.X just another composition. full-year changing,

William Fair

Yes, Barry. is J. This B.

the the resolved well did a as from million liability. of rent the some well. You're $X reduction side, as rent escalators percentage Ohio which positive have right up, in the with We primarily the on ended on $X that myths again million associated million the in point as has with change $X the

well our through LIBOR first cash tier to change some we associated as of able of positive be a were the revolver. which of interest we up addition, also the rates with ended in being as, flow enough our a level as quarter for - to had were in in on so conservative we our interest, fortunate And result cash a

so bit actually in lower were we And a that little tier.

there. talked of positive also up cash ended we noise, closing flow So guidance and they some cash as resorts a ended items items the up in additional some flow. about were that and we property There we for the severance as go a side negative with and costs Tunica, we other some in created that other through have to run the

hopefully it So clears that up you. for

Barry Jonas

Got just Lake Charles. question on it. And a then

up understanding Our the construction finish little of on early. could XXX a bit

latest what could some to curious Just upside perspective if guidance? potentially the is your from and there that cause

Timothy Wilmott

hearing the Yes. incentive early for our complete we're December. contractor days, which Barry, an in anticipating year project end versus is we're what completion. XX to latest would There the still that, have of that from perspective, excuse October, finish is by me in

it of remainder focused For year. be the And that through we're impact if good us. obviously anticipated to up on for trying to stay the moves would news now October

Barry Jonas

Great. And one then me for just for betting. sports last

think larger you've thinking how third at deals this or are or one but specific with you I state point? parties, two about partnerships JVs done just

Jay Snowden

We're of we'll country. number to licenses we strategy that lot both articulate a secondary betting across I we've given strategy. primary next our the the have states our we And exciting got then and to with by some closer our earnings strategies as pretty to and forward. be regards move that we'll be able casino - would Barry, call ready getting anticipate sports

more on So to come that.

Timothy Wilmott

Barry, going it additional retail and be states thing, also now, there's not to retail not. we're they're per enabling How and or in only betting, online, be we're The to be or or in other skins going right whether sports to legislation licensee going whether watching for it's session.

moving I a to the in we're of going how more days, there's of we'll as think this Jay clear and lot to next So parts be a now of strategy take XX right articulate advantage opportunity. able to XXX said,

Barry Jonas

Fantastic. Thanks guys. much so

Operator

with proceed your of Deutsche with Santarelli the comes Our Please question. next question Carlo from Bank. line

Carlo Santarelli

It's Hey, the great. bit of to provided outlook. just is look off kind delta then follow-up anything, and million I mixed. revenue you color. think Tunica, very since When could $X difficult been modestly or some some seen since lop guess But January wanted second I Jay, February, is I in obviously like the see real April revenue changed. December so we've you know, you the was I seen little you of and kind the calculated. if If a it just well on time had outlook at I the a what strength. some half Resorts we've was quarter

sense kind in guidance fair? now Is my more guys see non-weather of confidence topline you the is non-calendar from that impacted So what largely impacted, the periods. stems on seeing from you're that

Jay Snowden

loyalty year. also consolidated because I should that drivers of strong got Carlo. have the fuel little as we're I Penn And and launched program and year for second new think we're growth some the bullish going to before, bit in topline mentioned that's our fair second fully a more on the we've some half half of the

Carlo Santarelli

includes your the for million million debt for shift assuming first a free by $X then the about $X the And I thanks. cash up so overall, just about quickly, Great, B. taxes X% in that net misguidance includes J., and I'm year $X cash a that that is million, or up flow imagine? just quarter EBITDA is so guidance

William Fair

was that Carlo, to taxes No it our in. we interest remain same, cash the a change had cash

in cash quarter interest was assumptions. first of washed change in up they really and kind our the million and results if expense basically the $X ended rent So improvement operating

Carlo Santarelli

you, both. Great. Thank

Operator

Our with of next question line the from question. Macquarie. Beynon Chad comes Please your proceed with

Chad Beynon

for my taking morning. Good Thanks questions.

just XXbX-X situation be of you release, then you Can you programmatic implemented? you. if what the the stock one a bigger and little a I you plan we've replaced in first the kind earlier in remind through believe Thank that us on automatic share bit XXbX-X be believe the dislocation a kind of as that and worked I quarter retiring will allocation, mentioned implementing a of the obviously of capital on kind could from plan. First with quarter. is had repurchase has purchases

William Fair

left well plan Chad, B. repurchase last we purchase not could as the first open said that quarter. shares is any we market release implement this did In a we J. do open as what our in it We purchases.

we that quarter that think And been really the our as and we've that's I primarily previously, focused the going forward. we in reduction. first focusing been on debt seeing focus had we've

As delivering is price occasion, I look, now. share as overall were our mean, determining price obviously right that extremely is think right we now. at we is the we capital in really looked we our well it, focus But our think I where right

Timothy Wilmott

short-term and get like consider tuck-in B. give short-term options us that'll we'll Chad, right capital focus will In But returning now also to said point, are to back is delever other M&A to has shareholders. and to our deliver. before, mentioned J. I then the a and that

Chad Beynon

sense. higher thanks. spread there is Board $XX then you Makes any cost through in particular million could of anticipated across synergies? or flow kind regarding the one Was that higher Okay, And What before? have geographically geography that the had then?

Timothy Wilmott

country. be particular modeling level would pronouncing the I might I think well, little but it any of part corporate spread regions. bit incremental the There purposes, at as just a not evenly across for Chad, the it's

Chad Beynon

very you Thank much. Okay.

Operator

Morgan. of next Greff comes the Joseph J.P. with question. your Our question from with Please line proceed

Joseph Greff

whether mixed much you know per seasonality sequential and and morning, is I different the talked good you What reasons expected this related? like to question it for a the weather? the relates Two you growth visitation of visitation great. that spend versus Bridge of have that in the do of from prepared the your was XQ, it's bad Charles second a there questions that's the my have full in all remarks addressed How you. one-time may about Hi, the And fine But bag. weather scope And then XQ XQ. more that's But baked seasonality issues the much somewhat. Thank would great historical is talk in have you seasonality, Jay, that How guys. Lake just for in outside of it's comments? I that's XQ Can me. guidance. of visit of work? years is,

Jay Snowden

mentioned year-over-year a really database remarks statements exactly play. that or look all the that is a level visiting did of at the but quarter. weather Joe. levels then I my know work tell last and of as over the continued And strong. spend showed don't reader profitably per factor see the I basis We more unrated in that due this to migration of visitation on they're much at, different customers it's I shifting they and how declines visit Yes. you the lower at VIP incentives across Yes, when the weather. would was in tiers; first prepared of and to also receiving growth confluence are visit

excuse our the some back some there's July. or shift And weather have given that I only real continued disruption our we quarter there Look the that April. have in to we're impact the for other April mentioned, our be all is the we were as of So end half the disruption in for knew is the of that would for going trends there's year, out put some that impact we Penn to regards properties as have very to heavy to with then we're mychoice by of guidance strategic comfortable not anticipated unique any shift live with. month Easter we us me we and visitation the guidance And that the there's to that going we significant once be might well year. as second in noise

we to to pretty going noise we So there'll levels as half will always to the be the be year of is the second do topline a us. and is get on for of throughout second little the quarter strong margins the manage bit think forecast

Joseph Greff

Great. you. Thank

Operator

of Morgan proceed. Please Allen Our line with Thomas next Stanley. the comes from question

Thomas Allen

Good you. morning. thank Hey,

outperforming the happening on south region quarter first that's as the stood Thank you. out supporting that meaningfully really it And just have results, strength? assume much other broadly expectations. weather impact anything So I really didn't

Timothy Wilmott

was for March. our well the live customer has And us of that in that by we've have arm then will and and we we right anniversary Rouge of we the business the pleased now. terrace, with Baton terrific. months. Yes, last It's at smoking property year-over-year invest a side. the results that legacy of momentum have that that real went in we Baton acquisition new from got been has in headwind on shot X. flat And ban Thomas, we more been million back Pinnacle But June a the combination that the on early received of gotten Rouge generally, were Margaritaville did it's the ever about very couple still smoking the of loss tremendous south. base quarter their in best Customer the Property timing very factors. a of the had just properties, Penn $X properties.

lot weather We being pursued have have more we there's when generally in that gains. south don't helps and in in impacts having the year-over-year implemented full-year is the I you certainly which south anticipate think But strong work synergy region, outsize good we and a saw and the why concentration of region. a region

Thomas Allen

freak all? a in Thanks. the you to-date. been impacted on quarter follow-up the has quarter guidance bad And then just some weather Has at Midwest second there that

Timothy Wilmott

bit. ready when getting in land, for little A Saturday We had spring. just Chicago snow last you're

with hit has baked noise. our second some a Easter get guidance weather It guidance We put is for into help. Chicago. snowstorm that out the the You quarter. with some comfortable that doesn't QX been feel All There's we noise. in

Thomas Allen

that quantify weather hood the in quarter? Any second way to

Timothy Wilmott

I don't and looking May and We're think at June anticipate results so. point April we what Thomas. just for this at

Thomas Allen

perfect. Okay, Thank you.

Operator

question. Lynch. of of your Our next Merrill with proceed Shaun the question with from Bank comes line Please Kelley America

Shaun Kelley

everyone. Good morning Hi.

me, I derivative a could little precisely I the markets. for one have are you volumes training? thought are patterns remarks lot I in and opening on on that more interesting. to Just floor? of activity is elaborate seeing? just a casino seeing the going are was games was bit of in Just levels wondering behavior just interesting. of on are it you was sort the a those traffic you that but What if - how since What seeing been about thought you comment table sports activity what already covered, betting ground guys you

Timothy Wilmott

your - we've game now food slightly table that and bump a beverage properties and down best well were think to Look, volumes see properties seeing sports properties. significant as and volumes. and a you a be the the seen Race between in at Virginia West the in then are growth on And Yes. X% have Course property and I in And would bump relative basis. flattish Penn our food documented, those retail XX% for it's beverage Town us. driven pretty well and National of books The table you see property where Charles proxies as as our where games best or

mobile, So will saw country, large exactly, results going but markets properties food to to the books some and that volumes, the books helpful, the just others particularly you retail, retail sports only what sports and strong. tell Madness, tough have say it's table have the are book, certainly retail you're and across March the during in retail be sports especially have I we not but results events, to great to going are very our at that beverage a were game going our

Shaun Kelley

the open, are sports current about little we've what you the of have profitability more retail while kind a follow-up, states Perfect. what's been thought side not end big standalone this, impacting for and or a sort where in side of since I just numbers Thanks, maybe not traffic it's thinking it or few Jay. line sort on you a done in are an both what theoretically. medium places a now little overview overall a bit seeing of then traditionally do thinking would early the we've the about on you have or do and as And then the prognosis impact of thinking in more but thought Again, betting what would I on guys just environment, type think competitive profit the environment how hard online? And sort could marketing more or with huge Is have that have the thought reviews marketing P&L. that up or than driver you mean long-term.

Timothy Wilmott

Yes. New Jersey significant and betting that Look, we don't has operate only sports a there. online market the is business

the of appropriate. of because healthy meant for difficult that hard have elsewhere in we're that the running margins any more the is whatsoever. a for monetize and rate tax and you and driver because retail sports drive the color and high profit it's to tax to it's the Virginia us has me in a makes on West impact you it brick I basis real in we standalone guests what book casino give extraordinarily level those to volume Mississippi So sports rate to Pennsylvania, very books. on with tell any an is that would mortar

very millions and news bit of level and our, on more basis, is it's not for book going a a acquisition The in it followed markets, But to can that said, profit we country the good using tool certainly a are state are in and significant, the us. Jay are Pennsylvania rollout it's good didn't we're the driving are believe margin basis the no We the single-digit across in Pennsylvania range, not margins because is profit certainly have states the were in capital So invest reason other differently. to but we is slim The an mistake and, which wouldn't with rate. XX% standalone low returns us. as of lot and a most that is XX% I Pennsylvania's there property as extrapolate operation a be on of realized. rest tax where and XX% use sports going to we with tax to this the Charlestown immaterial every drive Pennsylvania, that's and be rate for there because

Shaun Kelley

the for Thank color. you all

Operator

with line Jefferies. question the question. proceed final your comes from of David our Katz And with Please

David Katz

boundaries to delever would of just that next returns looking be is of more into - more we sure you we'll back point? wanted there there sure to to I are. capital bit everyone. so. some to of I just that Tim, harvest this the months could at more you've M&A heard out I I wanted correctly with covered And morning, make a But just Obviously, or XX to on another that wanted lot other mode. you acquisition announcement commentaries where a some drift ground, our I appreciate make go towards that time. large consider what that. are during probability understand the Good suggested one

Timothy Wilmott

on David balance for and our XXXX. it on lot What of the I to against said execute we have was specifically a XXXX plate

I to for are There at we opportunities think don't had us that activity M&A obviously comment a was question on look or Harry and specific take the raised. Curtis first book. so any

what's course say a it's operationally with we'll sense Pinnacle it there's math sense, deal fits no it. makes focus We like we But advantage or we'll sense into business is our M&A and look at accretion, increase continue Really not and in years against our look look makes if - have Margaritaville opportunities we'll our in would so. But the already at if on post we past, we've normal I no distribution And of not for execute decrease take certainly do as lessened. opportunities for us makes as to at the the strategy to If as heightened both Greektown. at it. shareholder I our plate. looked said, take it continue to it and of

David Katz

the the one just into specific back that property there's at circumstance us current close, you financial matter told whether with have Got can the and looking impact if Tunica just I detail, that factored some it. guidance? benefits or And follow-up that's for

William Fair

we able second We point, revenues. to David, profitable half the and of Tunica this of the XXXX in rebranded short-term the haven't EBITDA XX% to valleys drive to move customers at valleys, and in overall communicated Xst other from properties very We that will that as from properties, when small if market. of we which we and get this. But resorts into the anticipate two being in the came can has incremental Tunica, impact knew EBITDA tell our we EBITDA beyond two been at to acquired Jackpot. Time our we the look, for a And year Mississippi in than a the you them other levels to anything we plan and it into point, we good a as have place Tunica, with about time in lot of of working close revenue Tunica think we to we put and EBITDA. went and that view But the competitors our we're to and property elsewhere hire never to most a want place our this folks how two we can't neutral stayed people's lives that if a lot those obviously doing at of very to them that properties. close in impacts impact and thought that and regulators

Jay Snowden

for just everything our the clear, on all And is the costs be the of all David, running that as included in there. revenue the to the guidance, associated impact well the closed so with of being year, in half as closure second of is

David Katz

Got it. Perfect. Thank you very much.

Timothy Wilmott

David. Thanks,

Operator

no I'll the call there at time. to further turn are back this you. questions And

Timothy Wilmott

morning. you, your Thank time for thanks Well, and this operator. attention

continue so close with be at about May. a We we of on also quarter provide morning. second our will thanks regulatory results. to to XX for talk or this materialize. occur, said, attention days expect to back updates things as in Again, approval will pending Greektown call end we to that, And another I your the And should, as

Operator

ask participation for line. That you the does conference disconnect thank your and your conclude We today. please you call for that

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