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Core Insights - Caesars Entertainment reported a revenue of $2.87 billion for the quarter ended September 2025, reflecting a slight decline of 0.2% year-over-year and a miss of 0.68% against the Zacks Consensus Estimate of $2.89 billion [1] - The company's earnings per share (EPS) was -$0.27, a significant drop from -$0.04 in the same quarter last year, resulting in an EPS surprise of -145.45% compared to the consensus estimate of -$0.11 [1] Financial Performance Metrics - In Las Vegas, the table game drop was reported at $658 million, below the average estimate of $717.4 million, while the table game hold was 17.4%, lower than the estimated 19.5% [4] - The slot handle in Las Vegas was $2.54 billion, missing the average estimate of $2.62 billion [4] - Caesars Digital's iGaming handle was $4.76 billion, compared to the estimated $5.03 billion, with an iGaming hold of 3.6%, matching the estimates [4] - The sports betting hold for Caesars Digital was 7.8%, exceeding the average estimate of 7.1% [4] - Net revenues from Las Vegas were $952 million, significantly below the average estimate of $1 billion, marking a year-over-year decline of 10.4% [4] - Regional net revenues were reported at $1.54 billion, slightly above the average estimate of $1.48 billion, reflecting a year-over-year increase of 6.2% [4] - Caesars Digital net revenues were $311 million, below the average estimate of $325.06 million, but showing a year-over-year growth of 2.6% [4] - Managed and branded net revenues reached $73 million, surpassing the average estimate of $69.07 million, with a year-over-year increase of 7.4% [4] - Corporate and other net revenues were reported at -$3 million, worse than the estimated -$1.7 million, representing a 40% decline year-over-year [4] - Las Vegas casino net revenues were $260 million, below the average estimate of $270.53 million, indicating an 11.6% year-over-year decrease [4] Stock Performance - Over the past month, shares of Caesars Entertainment have declined by 19.1%, contrasting with a 3.6% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The third quarter net revenue was $475.6 million, up 1.6% from the prior year's third quarter, with adjusted EBITDA of $190.9 million, up 4.5% [10] - The adjusted EBITDA margin was 40.1%, an increase of 110 basis points from the prior year [10] - The company generated $128.5 million in operating free cash flow, translating to $1.21 per share, bringing year-to-date cumulative free cash flow to $335.3 million, or $3.17 per share [10][11] Business Line Data and Key Metrics Changes - Las Vegas operations achieved a record third-quarter net revenue of $468.6 million, up almost 1% year-over-year, with adjusted EBITDA of $209.4 million, up 3.4% [9] - The hotel segment performed exceptionally well, generating near-record results despite renovations, with occupancy increasing across the portfolio [12] - The food and beverage segment achieved record revenue and near-record profitability, supported by higher cover counts [12] Market Data and Key Metrics Changes - The company reported continued strength in carded slot play across its database, including regional and national segments, with robust visitation and net theoretical win [11] - The local market is expected to add more than 6,000 new households within a three-mile radius of the Durango property over the next few years [9] Company Strategy and Development Direction - The company is focused on executing its development pipeline, including significant investments in Durango Casino Resort, Sunset Station, and Green Valley Ranch [11][17] - The next phase of the Durango Master Plan will expand the property significantly, adding new amenities to enhance guest experience and drive repeat visitation [8][9] - The company aims to maintain operating discipline and enhance shareholder returns through a balanced capital allocation strategy [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the business, despite ongoing construction disruptions [13][22] - The Las Vegas locals' market is viewed as fundamentally different from the Strip, with a loyal customer base driving consistent revenue [42] - The company anticipates continued stability in its core slot and table games business, with a return to normal hold in sports betting [12][32] Other Important Information - The company approved an increase in regular cash quarterly dividends to $0.26 per Class A share, reflecting confidence in long-term earnings power [20] - The total project cost for the Durango expansion is estimated at approximately $385 million, with construction expected to begin in January [8][9] Q&A Session Summary Question: Can you talk about the rationale for the Durango expansion? - Management highlighted the strong performance of Durango and the lack of competition in the area, expecting similar returns on the expansion as the initial build [27][28] Question: What was the impact of sports betting hold this quarter? - Management noted a return to normal hold after an unfavorable hold last year, estimating a disruption impact of about $2.5 to $3 million for the quarter [32] Question: How did the hotel segment perform compared to the Strip? - The hotel segment showed resilience, with occupancy up and RevPAR only slightly down, outperforming the Strip by about 25% on an ADR basis [38] Question: What is the expected disruption from ongoing construction projects? - Management expects disruption to extend beyond 2025 into 2026, with estimated impacts of around $8 million for Q4 [32][94] Question: How is the tavern business performing? - The company has eight taverns under contract, with two operational and positive early performance indicators, attracting a younger customer base [96][97]

Core Viewpoint - Caesars Entertainment (CZR) stock is currently trading within a support range of $22.21 to $24.54, from which it has historically rebounded significantly [2][3] Group 1: Stock Performance - Over the last decade, CZR stock has attracted buying activity at its current support levels four times, yielding an average peak return of 115.7% [3] - The stock has experienced significant declines in the past, including a nearly 90% drop during the Covid pandemic and a 73% decline amid inflation shocks [5] Group 2: Company Overview - Caesars Entertainment operates as a gaming and hospitality entity, managing 52 properties across the U.S. with approximately 55,700 gaming machines [3] - The company has recorded a revenue growth of -0.1% over the last twelve months and an average growth of 3.2% over the past three years [6] Group 3: Financial Metrics - CZR has a free cash flow margin of nearly 0.4% and an operating margin of 19.3% for the last twelve months [6] - The stock is currently trading at a price-to-earnings (PE) multiple of -25.1, indicating that the company is currently operating at a loss [6] Group 4: Investment Considerations - Compared to the S&P 500, CZR offers a lower valuation and revenue growth but has superior operating margins [6] - The Trefis High Quality (HQ) Portfolio, which includes CZR, has historically outperformed its benchmark indices, providing superior returns with reduced risk [8]

Company Overview - Accel Entertainment appointed Brett Summerer as CFO, effective immediately, succeeding acting CFO Mark Phelan [5] - Summerer previously served as CFO for Verano, where he led a finance and IT team and managed over 20 M&A deals [2] - The company operates more than 27,000 regulated electronic gaming machines, including slot machines [4] Financial Strategy and M&A Focus - Accel is actively evaluating M&A opportunities for expansion in the local gaming industry, with a focus on disciplined and accretive transactions [3][8] - The company aims to execute a multipronged growth strategy targeting revenue, cash flow, and adjusted EBITDA growth [7] - Accel recently closed a $900 million senior secured credit facility to enhance liquidity and reduce capital costs, which includes $300 million in revolving credit and a $600 million term loan [8][9] Recent Financial Performance - For Q2 ended June 30, Accel reported record quarterly revenue of $335.9 million, an 8.6% increase year-over-year [10] - However, net income fell 50.2% year-over-year to $7.3 million, attributed partially to a loss on the change in the fair value of contingent earnout shares [10]

Core Viewpoint - Butler National Corporation has initiated a new stock repurchase program of $5 million, closing its previous 2016 program, reflecting the company's commitment to enhancing shareholder value and confidence in long-term growth prospects [2][3]. Group 1: Stock Repurchase Details - The company has repurchased 2.41 million shares of its common stock since April 30, 2025, at an average price of $1.51 per share [1]. - The new stock repurchase program is authorized through April 2027 and allows for the repurchase of approximately 4.8% of the 64,854,736 outstanding shares at current market prices [2]. - As of July 31, 2025, the company has paid $2.9 million for the repurchased shares, with remaining payment obligations of $0.9 million due before December 31, 2025 [4]. Group 2: Management and Strategic Intent - The Board of Directors has prioritized stock repurchases, with management actively seeking opportunities to repurchase shares through private transactions [3]. - The new stock repurchase program is indicative of the Board's commitment to enhancing shareholder value and reflects confidence in the company's long-term growth prospects [3]. Group 3: Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [6]. - The Aerospace Products segment includes design, manufacture, and service of structural modifications and electronic systems for various aircraft, while the Professional Services segment manages a gaming facility in Dodge City, Kansas [6].

Financial Performance & Strategic Review - Century Casinos' Q2 2025 net operating revenue reached $15081 million[122] - Adjusted EBITDAR for Q2 2025 was $3030 million[122] - The company initiated a strategic review process to explore options for enhancing shareholder value, including potential asset sales, partnerships, or a company sale[108] Regional Market Overview - US regional Gross Gaming Revenue (GGR) has shown stable growth since 2001[20] - Missouri's gaming revenue was approximately $19 billion in 2024, with over 9% growth since 2019[63] - West Virginia's gaming market experienced 43% growth from 2019 to 2024[39] Capital Expenditures & Debt - Total growth capital expenditures are estimated at $385 million, excluding VICI funding[101] - Regular maintenance capital expenditures are projected at $68 million spent and $81 million remaining for 2025[101] - The company's total principal debt as of June 30, 2025, was $3381 million[99] - Net debt leverage was 62x, with expectations to trend towards 47-60x by the end of 2025[96]

Financial Data and Key Metrics Changes - In Q2 2025, Xcel generated record quarterly revenue of $336 million, representing a year-over-year growth of 9% [5][13] - Adjusted EBITDA for the second quarter was $53 million, a year-over-year increase of 7% compared to Q2 2024 [13] - Total revenue without the Fairmont Park acquisition was $317 million, reflecting a year-over-year growth of 2.4% [13] Business Line Data and Key Metrics Changes - Revenue from the Illinois distributed gaming market was $245 million, up over 8% year-over-year [6] - Montana's distributed gaming route grew revenue by 2.6% [7] - Revenue from developing markets, Nebraska and Georgia, increased by 26% and 35.5% respectively, while Nevada's revenue declined by 7.7% due to the loss of a key customer [7][8] Market Data and Key Metrics Changes - Xcel operated approximately 27,400 terminals across more than 4,400 locations, representing year-over-year increases of 3.4% and 3.1% respectively [13] - The local gaming market is estimated at over $15 billion nationally, with Xcel focusing on smaller, less professional operators for acquisition opportunities [11][30] Company Strategy and Development Direction - Xcel aims to leverage its competitive position and healthy balance sheet to pursue a multi-pronged growth strategy, focusing on overlooked M&A opportunities [6][11] - The company plans to enhance its operating expertise and expand its footprint while maintaining strong financial discipline [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the local gaming segment's resilience and growth potential, expecting continued revenue and EBITDA growth [6][22] - The company is optimistic about the contributions from the Fairmont Park Casino and Racing, as well as the revenue-sharing agreement with FanDuel [10][22] Other Important Information - Capital expenditures for Q2 totaled approximately $26 million, with a full-year forecast of $75 million to $80 million [19][20] - The company repurchased 634,000 shares at an average price of $10.58 per share, totaling $6.7 million in Q2 [20] Q&A Session Summary Question: Growth in Illinois market - Management noted consistent growth throughout the quarter without significant peaks or valleys [26] Question: M&A opportunities and leverage - Management stated they are opportunistic in acquisitions but will not leverage the company excessively, maintaining a conservative approach [28][29] Question: Impact of Tito implementation in Illinois - Management indicated it is too early to assess the impact of Tito, with expectations for improved player experience and reduced collection costs in the future [38] Question: Nevada market growth post key customer loss - Management reported slight revenue growth year-over-year despite the loss of a key customer, focusing on higher-margin locations [40][41] Question: Performance expectations for Fairmont Park - Management expressed positive indicators for Fairmont Park, aligning with internal expectations, and anticipates significant contributions in 2026 [44][45]

Core Points - Butler National Corporation has adopted new Corporate Governance Guidelines to enhance the structure and practices of its Board of Directors [1][2] - The Guidelines include a mandatory retirement age for directors at 75 years old, alongside existing policies like stock ownership guidelines and annual performance reviews [2][3] - The company has made significant strides in corporate governance, including annual elections for all directors and separating the roles of Chairman and CEO [3][4] Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [5] - The Aerospace Products segment involves design, manufacture, and service of aircraft modifications and electronic systems, while the Professional Services segment includes managing a gaming facility in Dodge City, Kansas [5]