Financial Data and Key Metrics Changes - For Q4 2024, the company's consolidated revenue was $137.8 million, a decrease of 4% from the previous year's fourth quarter. Adjusted EBITDA was $21.1 million, down 17% [5][6]. - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [28]. Business Line Data and Key Metrics Changes - U.S. operations saw a revenue decline of 3% and EBITDA down 8%. Retail and low-end customer segments remained weak due to macroeconomic factors [6][7]. - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 27% and 32% respectively in the four months since opening [8][12]. - The Century Casino Hotel Cape Girardeau experienced an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [14][16]. Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to a 7% overall revenue decline [18]. - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, faced a 7% revenue decline and a 29% drop in EBITDA, primarily due to lower-end customer performance [20][21]. Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [32][33]. - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [17][34]. Management's Comments on Operating Environment and Future Outlook - Management noted that the lower-end consumer segment remains a significant concern, impacting overall revenue forecasts [38][39]. - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives and a reduction in capital expenditures [31][34]. Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend just €4 million on growth projects and €14 million on maintenance CapEx [30][31]. - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, due to lower contributions to EBITDA and cash flow [27][95]. Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the lower-end consumer weakness is the primary driver of the lower estimates, while mid and upper tiers are performing well [38]. Question: How is the revenue decline at the Nugget being addressed? - Management noted that the decline in casino revenue is closely tied to hotel revenue, and efforts are being made to revitalize the property and increase conference business [44][45]. Question: What impact will the Alberta Gaming Commission's suspension of gaming machines have? - Management does not expect any meaningful negative impact, estimating it to be around half a percent [49]. Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, focusing on revenue sharing models [82]. Question: Is there a consideration for stock buybacks? - Management expressed interest in stock buybacks but is restricted by insider laws and blackout periods [108].

Century Casinos (CNTY) came out with a quarterly loss of $0.69 per share versus the Zacks Consensus Estimate of a loss of $0.59. This compares to loss of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.95%. A quarter ago, it was expected that this casino operator would post a loss of $0.28 per share when it actually produced a loss of $0.26, delivering a surprise of 7.14%.Over the last four quarters, the company has ...

Financial Performance - Terminated agreements with Circa Sports and Tipico resulted in a total of $2.7 million in payments, including breakage fees and owed sports betting revenue, contributing $1.7 million in other revenue for the year ended December 31, 2024 [34]. - The increase in the slot machine net sales percentage from 15% to 17% is estimated to have increased net operating revenue by approximately $2.9 million at Canadian properties for the year ended December 31, 2024 [50]. - Earnings from operations in 2024 were $4.3 million, with a potential $1.3 million increase if the US dollar depreciated by 10% against the Canadian dollar and Polish zloty [310]. Projects and Developments - The new land-based casino and hotel in Caruthersville, Missouri opened on November 1, 2024, with a project cost of approximately $51.9 million funded through financing provided by VICI PropCo [31]. - The Cape Girardeau location opened a 69-room hotel called The Riverview on April 4, 2024, with a construction cost of approximately $30.5 million financed with cash on hand [32]. - The company plans to partner with sports betting operators to conduct sports betting at its Missouri facilities, with expectations for sports betting to begin in late 2025 [39]. - The company is exploring additional potential gaming projects and acquisition opportunities, although various risks could affect the feasibility of these projects [33]. Employment and Community Engagement - As of December 31, 2024, the company had 3,181 full-time employees and 886 part-time employees, with 252 employees at CPL casinos in Poland belonging to trade unions [56]. - Employee development programs are in place to enhance leadership skills and career progression [58]. - The company is committed to community support through charitable contributions and initiatives [59]. Competition and Market Conditions - The company faces intense competition from larger casinos with greater resources, and it focuses on targeted marketing efforts to attract customers [35]. - The Polish market has 52 casino licenses available, with competition from other casinos and online gaming potentially impacting operations [46]. - The company operates in various jurisdictions, subject to extensive regulations, which could materially affect its gaming operations if licenses are not maintained [50]. Financial Risks - As of December 31, 2024, the company has a total debt of $339.6 million, with the majority being variable-rate debt [306]. - A 1% change in the variable-rate debt would result in a $3.4 million change in annual cash interest expenses [306]. - The company is exposed to foreign currency exchange risk, particularly with the US dollar against the Canadian dollar and Polish zloty [308]. - In 2024, the change in the relative value of the US dollar resulted in a $2.4 million increase in accumulated other comprehensive loss [308]. - The company has not hedged against foreign currency exchange rate changes related to its international operations [307]. - The assets and liabilities of foreign subsidiaries are primarily held in local currencies, leading to volatility in earnings [307]. - The translation of revenue and expenses is done at each period's average exchange rate, affecting operational results [310].

Financial Performance - Net operating revenue for Q4 2024 was $137.8 million, a decrease of 4% compared to Q4 2023, while full-year revenue increased by 5% to $575.9 million[6]. - Loss from operations for Q4 2024 was ($36.2) million, a change of (388%), and for the full year, it was $4.3 million, a decrease of (93%) compared to 2023[6]. - Net loss attributable to Century Casinos, Inc. shareholders for Q4 2024 was ($64.9) million, a change of (500%), and for the full year, it was ($128.2) million, a change of (355%) compared to 2023[6]. - Adjusted EBITDAR for Q4 2024 was $21.1 million, a decrease of (17%), and for the full year, it was $102.7 million, a decrease of (10%) compared to 2023[6]. - Total operating costs and expenses increased to $173,920,000 in Q4 2024, up 32.5% from $131,209,000 in Q4 2023[17]. - The net loss attributable to Century Casinos, Inc. shareholders for Q4 2024 was $64,894,000, compared to a net loss of $10,821,000 in Q4 2023[17]. - Basic and diluted net loss per share for Q4 2024 was $(2.11), compared to $(0.36) in Q4 2023[17]. - For the year ended December 31, 2024, the net loss attributable to Century Casinos, Inc. shareholders was $128,170,000, compared to a net loss of $28,198,000 in 2023[24]. - Interest expense for the year 2024 was $100,723,000, an increase from $91,811,000 in 2023[24]. - Adjusted EBITDAR margin for the year ended December 31, 2024, was 18%, down from 21% in 2023[28]. - Net earnings margin for the United States segment was (51%) for Q4 2024, compared to 1% in Q4 2023[28]. Asset and Liability Management - As of December 31, 2024, the Company had $98.8 million in cash and cash equivalents, down from $171.3 million at the end of 2023[14]. - Outstanding debt as of December 31, 2024, was $339.6 million, a decrease from $346.8 million at the end of 2023[14]. - Total assets decreased to $1,226,312,000 as of December 31, 2024, down from $1,359,662,000 in 2023[18]. - Current liabilities decreased to $86,044,000 in 2024 from $93,619,000 in 2023[18]. Impairment and Valuation - The impairment of goodwill at the Nugget Casino Resort resulted in a $43.7 million expense, significantly impacting earnings from operations[4][9]. - The company recognized a goodwill impairment of $43,716,000 in Q4 2024[21]. - The Company recorded a valuation allowance on net deferred tax assets, contributing to the increased net loss attributable to shareholders[11]. Market Conditions and Trends - The company continues to face weak trends from retail and low-end customers due to macroeconomic factors affecting consumer spending[2]. - Canada segment reported net operating revenue of $17.9 million for Q4 2024, down 6.7% from $19.2 million in Q4 2023[28]. - Poland segment's net operating revenue decreased to $19.9 million in Q4 2024 from $21.6 million in Q4 2023, a decline of 8.1%[28]. Future Outlook and Projects - The new land-based casino and hotel in Caruthersville, Missouri opened on November 1, 2024, which is expected to improve cash flow and Adjusted EBITDAR in 2025[2]. - The company continues to pursue various projects, including the recently opened land-based casino and hotel in Caruthersville, Missouri[41]. - The company plans to focus on licensing and reopening its casinos in Poland, which are currently under development[41]. - The company expects Adjusted EBITDAR and cash flow to improve in 2025, reflecting ongoing operational adjustments and market conditions[41].

Financial Data and Key Metrics Changes - The company reported net revenue of $156 million, a decrease of 3% compared to Q3 of the previous year [5] - Adjusted EBITDAR was $32.9 million, down just 1%, while the consolidated EBITDAR margin increased from 20.6% to 21.1% [5] - The company ended the quarter with $119 million in cash and cash equivalents, and $340 million in outstanding debt, resulting in a net debt of $221 million [15] Business Line Data and Key Metrics Changes - The East segment, including Mountaineer and Rocky Gap, saw revenue increase by 7% and EBITDAR up by 5% [7] - The Midwest segment, covering Missouri and Colorado, had flat revenue, with EBITDAR down 5% due to disruptions from the new land-based facility in Caruthersville [8] - The West segment, including the Nugget Casino Resort, experienced a 40% sequential revenue increase and doubled EBITDAR compared to Q2, although still lagging behind last year's Q3 [12] Market Data and Key Metrics Changes - In Poland, the reopening of a key casino is expected to restore annual EBITDAR to between $10 million and $12 million [14] - The Canadian operations saw a decrease in net operating revenue primarily due to one casino, Century Downs, which lost about $1 million in revenue [28] - The company noted stable consumer trends across its markets, with low-end customers remaining weak but stable [6] Company Strategy and Development Direction - The company plans to focus on operational efficiencies and cost control to improve profitability [12][17] - Future capital expenditures are expected to decrease significantly from $38 million this year to about $16 million next year, which will enhance free cash flow [16] - The company is optimistic about the performance of new properties and plans to buy back stock opportunistically [17] Management's Comments on Operating Environment and Future Outlook - Management indicated that the current year is a transitory period, with a clear path to generating cash and improving results in 2025 [17] - The company expects to see a strong uplift in results from the new Caruthersville property, although initial growing pains may affect EBITDA for a quarter or two [9] - Management remains confident in the stability of the Polish market following the reopening of casinos [14] Other Important Information - The company has no debt maturities until 2029 and can refinance its term loan at any time without penalty [15] - The Nugget Casino has completed its CapEx program for the year, with additional spending planned for elevator upgrades next year [13] Q&A Session Summary Question: Update on licenses in Poland - Management confirmed that some licenses expired but were granted again, with the reopening of the Roslov casino restoring normal operations [19][21] Question: Performance of the Nugget Casino - Management noted that the negative impact on performance was primarily in July, with improvements seen in August and September, continuing into October [25] Question: Canadian assets revenue decline - The decrease was attributed to the Century Downs casino and a competitor's impact, but operational efficiencies led to an increase in EBITDAR [28][29]

Summary of Century Casinos' Quarterly Performance Core Insights - Century Casinos reported a quarterly loss of $0.26 per share, which was better than the Zacks Consensus Estimate of a loss of $0.28, and an improvement from a loss of $0.47 per share a year ago [1] - The company generated revenues of $155.7 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.52% and down from $161.18 million year-over-year [2] - The stock has underperformed significantly, losing about 32.2% since the beginning of the year compared to the S&P 500's gain of 20.1% [3] Financial Performance - The earnings surprise for the recent quarter was 7.14%, while the previous quarter saw a significant miss with an actual loss of $1.36 against an expected loss of $0.40, resulting in a surprise of -240% [1][2] - Over the last four quarters, Century Casinos has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $158.1 million, and for the current fiscal year, it is -$2.33 on revenues of $598.7 million [7] - The estimate revisions trend for Century Casinos is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Gaming industry, to which Century Casinos belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Century Casinos may also be influenced by the upcoming results of Red Rock Resorts, another company in the same industry, which is expected to report a quarterly earnings decline of 38.3% [9]

Financial Performance - Net operating revenue for Q3 2024 was $155.7 million, a decrease of 3% compared to Q3 2023[2] - Earnings from operations increased by 24% to $17.9 million in Q3 2024 compared to Q3 2023[2] - Net loss attributable to Century Casinos, Inc. shareholders decreased by 43% to ($8.1) million, with a basic net loss per share of ($0.26) in Q3 2024[2] - Adjusted EBITDAR for Q3 2024 was $32.9 million, a decrease of 1% from Q3 2023[2] - Net operating revenue for Q3 2024 was $155.7 million, a decrease of 3.0% from $161.2 million in Q3 2023[15] - Total operating costs and expenses decreased to $137.8 million in Q3 2024, down 6.1% from $146.7 million in Q3 2023[15] - Net loss attributable to Century Casinos, Inc. shareholders for Q3 2024 was $8.1 million, an improvement from a net loss of $14.2 million in Q3 2023[15] - Adjusted EBITDAR for Q3 2024 was $29.2 million, compared to $33.3 million in Q3 2023, reflecting a decrease of 11.5%[19] - Net loss per share attributable to Century Casinos, Inc. shareholders for Q3 2024 was $(0.26), an improvement from $(0.47) in Q3 2023[15] - For the nine months ended September 30, 2024, net loss attributable to Century Casinos, Inc. shareholders was $63.3 million, compared to a loss of $17.4 million for the same period in 2023[23] Assets and Liabilities - Cash and cash equivalents decreased to $118.8 million as of September 30, 2024, down from $171.3 million at the end of 2023[11] - Outstanding debt as of September 30, 2024, was $339.6 million, a decrease from $346.8 million at the end of 2023[11] - Total assets as of September 30, 2024, were $1.3 billion, down from $1.4 billion as of December 31, 2023[16] - Current liabilities decreased to $86.8 million as of September 30, 2024, from $93.6 million at the end of 2023[16] Segment Performance - The United States segment reported net operating revenue of $117.1 million for Q3 2024, a slight increase from $116.9 million in Q3 2023[7] - Canada segment reported net operating revenue of $20,921 thousand for the three months ended September 30, 2023, with a net earnings margin of (8%) and an adjusted EBITDAR margin of 23%[26] - Poland segment's net operating revenue for the three months ended September 30, 2023, was $23,397 thousand, with a net earnings margin of 3%[26] Future Plans and Developments - The new land-based casino and hotel in Caruthersville, Missouri opened on November 1, 2024, costing approximately $51.9 million and increasing gaming positions by 50%[4] - The Wroclaw casino in Poland reopened on October 24, 2024, which is expected to reduce disruptions in the Poland segment[3] - Century Casinos, Inc. plans to continue focusing on market expansion and new product development to drive future growth[19] - Century Casinos is focused on the licensing and reopening of its casinos in Poland, with expectations for growth in this segment moving forward[39] - Century Casinos is preparing for future results and expectations for 2024 and 2025, indicating a long-term growth strategy[39] Expenses and Financial Obligations - The Company recorded a valuation allowance on net deferred tax assets resulting in a tax expense of $23.8 million during Q2 2024[9] - Interest expense related to credit agreements for the nine months ended September 30, 2023, was $29,601 thousand, compared to $29,054 thousand in the same period of 2022[27] - Cash rent payments for the three months ended September 30, 2024, were $13,190 thousand, an increase from $11,923 thousand in the same period of 2023[29] - The company has obligations under the Goldman Credit Agreement and its Master Lease, impacting its financial strategy and debt repayment plans[39] Shareholder Information - The company reported a total of 30.7 million weighted average common shares for both basic and diluted calculations in Q3 2024[15] - Net earnings attributable to Century Casinos, Inc. shareholders for the nine months ended September 30, 2023, were $(17,377) thousand, with a significant interest expense of $67,099 thousand[24] - Adjusted EBITDAR for the nine months ended September 30, 2023, was $88,686 thousand, with a margin of 19%[26]

Financial Performance - Gaming revenue for Q3 2024 was $105.45 million, a decrease of $5.78 million or 5.2% compared to Q3 2023[1]. - Net operating revenue for the nine months ended September 30, 2024, increased by $31.7 million or 7.8% to $438.15 million compared to the same period in 2023[1]. - Hotel revenue for Q3 2024 was $15.35 million, down $0.59 million or 3.7% from Q3 2023, while food and beverage revenue increased by $0.14 million or 0.7% to $18.63 million[1]. - Net loss attributable to Century Casinos, Inc. shareholders for Q3 2024 was $8.12 million, a decrease of $6.06 million or 42.7% compared to Q3 2023[1]. - The Nugget acquisition contributed $29.2 million in net operating revenue and $0.7 million in net earnings for Q3 2024[190]. - Rocky Gap operations generated $18.7 million in net operating revenue but incurred a net loss of $1.8 million for Q3 2024[191]. - Interest expense increased by $1.7 million for Q3 2024 compared to Q3 2023, primarily due to the addition of Rocky Gap and increased interest rates[192]. - Net operating revenue in the United States increased by $0.3 million or 0.2% for Q3 2024, while Canada saw a decrease of $0.6 million or 3.1%[199]. - The company experienced a 21.8% decrease in net operating revenue from Poland for Q3 2024, amounting to a decline of $5.1 million[199]. - Earnings from operations increased by $3.5 million, or 23.9%, for the three months ended September 30, 2024 compared to the same period in 2023[201]. - Adjusted EBITDAR for the three months ended September 30, 2024 was $32.9 million, compared to $33.3 million for the same period in 2023[212]. - Net earnings attributable to Century Casinos, Inc. shareholders for the nine months ended September 30, 2024, were $17,026,000, compared to a loss of $40,334,000 in the same period of 2023, representing a significant improvement[216]. - Total long-term debt as of September 30, 2024, was $327,493,000, down from $333,086,000 a year earlier, indicating a reduction in debt levels[219]. - Net Debt increased to $220,850,000 as of September 30, 2024, compared to $158,918,000 in the previous year, reflecting a decrease in cash and cash equivalents[219]. - Gaming revenue for the nine months ended September 30, 2024, was $222,094,000, an increase of 11.0% from $200,089,000 in the same period of 2023[220]. - Adjusted EBITDAR for the nine months ended September 30, 2024, was $88,686,000, compared to $76,086,000 in the previous year, showing a year-over-year increase[216]. Operational Developments - The company reported a project cost of approximately $51.9 million for the new land-based casino in Caruthersville, Missouri, which opened on November 1, 2024[182]. - The company opened a 69-room hotel called The Riverview at its Cape Girardeau location on April 4, 2024, with a project cost of approximately $30.5 million[183]. - The new land-based casino and hotel in Caruthersville opened on November 1, 2024, featuring 599 slot machines and nine live table games, marking a 50% increase in gaming positions[220]. - The Riverview in Cape Girardeau, opened in April 2024, is a six-story building with 69 rooms, enhancing the company's hospitality offerings[221]. - The company began consolidating Nugget and Smooth Bourbon in the United States segment on April 3, 2023, following the Nugget Acquisition, and Rocky Gap on July 25, 2023, after the Rocky Gap Acquisition[222]. - A petition campaign in Missouri to allow sports wagering will appear on the November 2024 ballot, which could lead to legalization by mid-2025, potentially expanding the company's gaming operations[223]. - The company closed the Krakow casino in May 2024 and the LIM Center casino in Warsaw in July 2024 due to the expiration of gaming licenses[174]. - The company closed its Wroclaw casino in November 2023 due to the expiration of the gaming license but reopened it at a new location on October 24, 2024[252]. Market Conditions - The average exchange rate for the Canadian dollar (CAD) was 1.3641 for the three months ended September 30, 2024, reflecting a 1.7% decrease compared to the previous year[186]. - The company reported a 5.7% increase in the average exchange rate for the Polish zloty (PLN) to 3.9007 for the three months ended September 30, 2024[186]. - The average exchange rate between the US dollar and Polish zloty increased by 5.7% and 6.4% for the three and nine months ended September 30, 2024, respectively, impacting results[253]. - The company anticipates that worsening economic conditions could reduce consumer discretionary spending, impacting net income and cash flows[178]. - The company anticipates potential negative impacts on operations due to increased competition in both the Central City and Edmonton markets[226][243]. Cash Flow and Investments - Cash, cash equivalents, and restricted cash as of September 30, 2024, totaled $119,101,000, down from $189,243,000 in 2023[274]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $46,258,000 compared to $189,370,000 in 2023, indicating a significant decrease[274]. - Interest income for the nine months ended September 30, 2024, was $2,110,000, a substantial increase of 520.6% from $340,000 in 2023[266]. - Interest expense for the nine months ended September 30, 2024, was $77,426,000, up from $67,439,000 in 2023, marking a 14.8% increase[266]. - Cash flows from operations decreased primarily due to $12.2 million in income tax payments related to the Canada Real Estate Sale[275]. - Cost recovery income of $1.1 million was received by CDR for the nine months ended September 30, 2024, related to infrastructure built during the development of the Century Downs REC project[270]. - As of September 30, 2024, total debt was $327.5 million, with long-term debt at $322.5 million and a current portion of $5.0 million[281]. - Estimated cash payments due under the Master Lease for the remainder of 2024 are $14.2 million, including a CPI increase[283]. - The company had $118.8 million in cash and cash equivalents as of September 30, 2024, down from $171.3 million at the end of 2023[289]. - Planned capital expenditures for the remainder of 2024 include approximately $7.6 million in gaming equipment and renovations[290]. - The company has a shelf registration statement effective for issuing up to $100 million in various securities[291]. - Approximately $68.2 million of the total $118.8 million in cash and cash equivalents is held by foreign subsidiaries and not available for US operations unless repatriated[293]. - The company did not repurchase any common stock during the nine months ended September 30, 2024, leaving $14.7 million remaining under the repurchase program[288].

Core Points - Century Casinos, Inc. announced the opening of its new land-based casino and hotel in Caruthersville, Missouri on November 1, 2024 [1] - The Missouri Gaming Commission approved the move of the gaming license from the temporary location to the new casino [1] Group 1 - The new Century Casino & Hotel Caruthersville will feature 599 slot machines and nine live table games, representing a 50% increase in gaming positions compared to the temporary location [2] - The number of hotel rooms will double to 74 [2] - The construction of the new facility began in December 2022, with an estimated project cost of $51.9 million, funded by VICI Properties Inc. [2] Group 2 - VICI Properties Inc. will own the real estate improvements associated with the Caruthersville project, which will be included in the Company's triple net master lease agreement with VICI subsidiaries [2] - Annual rent under the lease will increase by approximately $4.2 million [2] - A ribbon-cutting event will take place at 11:30 a.m. Central Time on November 1, followed by various activities over the opening weekend [2] Group 3 - Century Casinos operates multiple segments across the United States, including locations in West Virginia, Maryland, Missouri, Colorado, and Nevada, as well as casinos in Canada and Poland [3]

Financial Data and Key Metrics Changes - The company reported net revenue of $146 million for Q2 2024, a 7% increase compared to Q2 2023, driven by the addition of Rocky Gap in Maryland and strong performance in Canada [3] - Adjusted EBITDAR was $27 million, down 6% year-over-year, impacted by construction disruptions and temporary closures in Poland [3][4] - Traditional net leverage stood at 4.6x, while lease adjusted net leverage was 6.5x, elevated due to recent acquisitions and investments [13] Business Line Data and Key Metrics Changes - The Midwest segment, including Missouri and Colorado, saw a 4% increase in revenue, but EBITDAR decreased by 5% due to construction disruptions [5] - The East segment, which includes the newly acquired Rocky Gap Casino Resort, experienced a 60% increase in revenue and nearly doubled EBITDAR [8] - The West segment, particularly the Nugget Casino Resort in Reno, faced a disappointing 23% revenue decline, attributed to renovation disruptions and lower slot hold [9][10] Market Data and Key Metrics Changes - Revenue in Canada grew by 5% with EBITDAR up 7%, supported by strong performance in Alberta [11] - Two casinos in Poland remained closed during the quarter, significantly impacting revenues, but are expected to reopen in October [12] - The company noted a 10% decline in non-rated play across its portfolio, primarily due to macroeconomic factors affecting lower-end customers [4] Company Strategy and Development Direction - The company is focused on operational discipline and efficiency improvements, particularly at the Nugget, while also planning to generate cash for potential stock buybacks and deleveraging [15][27] - A new land-based facility in Caruthersville is set to open in mid-November, expected to enhance operational efficiencies and increase revenue [6][14] - The company is considering entering the online gaming space to capture players lost to iGaming states [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance, anticipating improved cash flow and revenue growth from upcoming casino openings in Poland and Caruthersville [15][16] - The management acknowledged the challenges faced in the current economic environment but believes the worst is behind them, with expectations for consumer sentiment to improve as interest rates decrease [30][31] - The company is reassessing its portfolio, particularly regarding the sale of Polish operations, and is open to divesting underperforming assets [32][34] Other Important Information - The company ended the quarter with $123 million in cash and cash equivalents, and $342 million in outstanding debt, resulting in net debt of $219 million [12] - CapEx for the quarter was approximately $13 million, with expectations to decrease to about $12 million next year, which will enhance free cash flow [14] Q&A Session Summary Question: Can you walk through the changes to the 2024 and 2025 revenue and margin expectations? - Management indicated that the primary driver for revisions was the performance of the Nugget Casino and market conditions in Poland [18][19] Question: Is the unrated decline weakening, and when do easier comps begin? - Management believes the worst is behind them but is awaiting interest rate reductions to improve consumer sentiment [30][31] Question: What is the outlook for the convention business at the Nugget? - Management stated it is too early to provide specific numbers but indicated a friendly outlook for future bookings [41] Question: What is the current state of the Reno market? - The Reno market is highly competitive, with recent weakness in the hotel market attributed to the economic situation [43] Question: What is the company's strategy regarding acquisitions and improvements? - The company focuses on acquiring undervalued properties and improving them, as demonstrated by past successes [44][45]