Financial Data and Key Metrics Changes - The first quarter net revenue for Las Vegas operations was $495 million, up 1.9% from the prior year's first quarter [9] - Adjusted EBITDA for Las Vegas operations was $235.9 million, an increase of 2.7% from the prior year [9] - Consolidated first quarter net revenue was $497.9 million, up 1.8% from the prior year [10] - Adjusted EBITDA on a consolidated basis was $215.1 million, up 2.8% from the prior year [10] - The adjusted EBITDA margin for the quarter was 43.2%, an increase of 42 basis points from the prior year [10] - The company converted 43% of adjusted EBITDA into operating free cash flow, generating $93 million or $0.88 per share [10] Business Line Data and Key Metrics Changes - The Durango Casino Resort continued to grow the Las Vegas locals market, adding over 95,000 new customers to the database [5] - The hotel division recorded its second highest first quarter revenue, driven by increased occupancy [11] - The food and beverage division achieved near record performance supported by higher cover counts across outlets [11] - Group sales and catering faced challenges but are expected to improve throughout 2025 [12] Market Data and Key Metrics Changes - The Las Vegas Valley is projected to add approximately 34,000 new households due to demographic growth, particularly in Summerlin [6] - The company expects full revenue recovery over the next couple of years, supported by strong long-term demographic growth [6] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities while delivering best-in-class customer service [8] - Capital expenditures for 2025 are expected to be between $350 million and $400 million, down $25 million from previous guidance [14] - The company is making investments in Sunset Station and Green Valley Ranch properties to capture growth in the Henderson area [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the Las Vegas locals market, noting that the company has historically grown during recessions [40] - The company is well-positioned to manage through any potential recession due to its efficient business model and strong balance sheet [41] - Management highlighted the importance of customer convenience, proximity, and affordability in maintaining consistent visitation [40] Other Important Information - The company declared a special cash dividend of $1 per Class A common share, reflecting confidence in the business model and the Las Vegas locals market [19] - The company has returned approximately $159 million to shareholders in 2025 [19] - The North Fork project is progressing well, with a total expected cost of approximately $750 million [17] Q&A Session Summary Question: OpEx growth and flow-through in Las Vegas - Management noted subdued OpEx growth with a flow-through above 60%, attributed to better sports win performance and flat COGS [23][25] Question: Backfill efforts at Red Rock - Management indicated that backfill is running about six months ahead of schedule, with cannibalization expected to be around 10% [30][31] Question: Special dividend decision - The special dividend reflects a balanced approach to long-term growth and returning capital to shareholders, coinciding with the return of capital from North Fork [35] Question: Resilience of the Las Vegas locals market - Management emphasized that the locals market has shown resilience during past recessions and is expected to continue performing well [40][41] Question: Construction environment and cost management - Management is actively managing procurement to mitigate impacts from tariffs and does not expect material impacts on current projects [46][52] Question: Non-gaming spend trends - Non-gaming spend remains stable, with food and beverage covers up despite slight revenue decline [85] Question: California-based customer demand - Management reported stable visitation from California, with no material impacts noted [93][94] Question: Future of operating leased properties - Management remains open to opportunities but prefers owning properties due to the benefits observed during downturns [76] Question: Changes in the lowest end of the customer database - Management noted stability in the lower end of the database while seeing growth in VIP and regional segments [77] Question: Forward group bookings - Group bookings for the remainder of 2025 are substantially up compared to the previous year [86]

Financial Data and Key Metrics Changes - In the first quarter, Las Vegas operations achieved net revenue of $495 million, up 1.9% year-over-year, and adjusted EBITDA of $235.9 million, up 2.7% year-over-year [7][8] - Consolidated net revenue for the first quarter was $497.9 million, an increase of 1.8% from the previous year, with adjusted EBITDA of $215.1 million, up 2.8% year-over-year [8] - The adjusted EBITDA margin for Las Vegas operations was 47.7%, an increase of 34 basis points, while the consolidated adjusted EBITDA margin was 43.2%, up 42 basis points [7][8] Business Line Data and Key Metrics Changes - The hotel division recorded its second highest first quarter revenue and profit, driven by increased occupancy [9] - The food and beverage division achieved near record performance, supported by higher cover counts across outlets [9] - Group sales and catering faced challenges but are expected to improve throughout 2025 [10] Market Data and Key Metrics Changes - The Durango Casino Resort has added over 95,000 new customers to the database and is on track to become one of the highest margin properties, generating a return net of cannibalization of nearly 16% [4][5] - The Las Vegas Valley is projected to add approximately 34,000 new households due to demographic growth, particularly in Summerlin [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities while maintaining operational discipline [6] - Expansion plans for Durango include adding over 25,000 square feet of casino space and a new parking garage [5][6] - The company is also investing in Sunset Station and Green Valley Ranch properties to capture growth in Henderson [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business prospects moving forward, citing strong customer engagement and robust spending [10] - The company anticipates full revenue recovery from cannibalization effects over the next couple of years [5] - Management highlighted the resilience of the Las Vegas locals market, which has historically performed well during recessions [38] Other Important Information - The company declared a special cash dividend of $1 per Class A common share, reflecting confidence in the business model and market resilience [17] - Capital expenditures for 2025 are expected to be between $350 million and $400 million, down $25 million from previous estimates [12] Q&A Session Summary Question: OpEx growth and flow-through in Las Vegas - Management noted subdued OpEx growth with a flow-through above 60%, attributed to better sports win performance and flat COGS [20][22] Question: Backfill efforts at Red Rock - Management indicated that cannibalization is expected to be about 10% and they are ahead of schedule in backfilling revenue [27] Question: Special dividend and capital allocation - The special dividend reflects a balanced approach to long-term growth and shareholder returns, with ongoing evaluations of capital allocation [32][34] Question: Resilience of the Las Vegas locals market - Management emphasized the market's resilience during past recessions and its ability to maintain consistent visitation [38] Question: Construction environment and cost management - Management is actively managing procurement to mitigate impacts from tariffs and expects minimal material impact on current projects [42][48] Question: Non-gaming spend trends - Non-gaming spend remains stable, with food and beverage covers up despite slight revenue decline [78][80] Question: California-based customer demand - Management reported stable visitation from California, with gas prices making travel to Las Vegas still affordable [91][92]