Financial Data and Key Metrics Changes - In Q2 2025, the company's Las Vegas operations achieved net revenue of $513.3 million, a 6.2% increase year-over-year, and adjusted EBITDA of $239.4 million, up 7.3% from the previous year [6][7] - Consolidated net revenue, including $10 million from the North Fork project, was $526.3 million, reflecting an 8.2% increase year-over-year, while adjusted EBITDA was $229.4 million, up 13.7% [6][7] - The adjusted EBITDA margin for the quarter was 43.6%, an increase of 212 basis points from the prior year [7] Business Line Data and Key Metrics Changes - The gaming segment reported the highest revenue and profitability in the company's history, driven by strong visitation and spending per visit [8] - The hotel division recorded its highest second-quarter revenue and profit, supported by increased average daily rates (ADR) and occupancy [8] - The food and beverage division achieved near-record results, benefiting from higher cover counts across outlets [8] Market Data and Key Metrics Changes - The Durango Casino Resort has added over 108,000 new customers since its opening in December 2023, contributing to the growth of the Las Vegas locals market [4] - The company expects full revenue recovery over the next couple of years, supported by strong demographic growth in the Las Vegas Valley, particularly in Summerlin [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities and improve customer service while returning capital to shareholders [5] - Significant investments are being made in the Durango Casino Resort, Sunset Station, and Green Valley Ranch properties, with ongoing renovations expected to drive future growth [11][13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and long-term growth prospects, despite expected seasonal visitation patterns and construction disruptions [9][10] - The company anticipates that recent tax legislation will enhance discretionary income for customers, positively impacting the locals market [34][36] Other Important Information - The company declared a regular cash dividend of $0.25 per Class A common share and a special dividend of $1 per Class A common share [16] - Year-to-date capital expenditures are projected to be between $325 million and $375 million, with a focus on investment capital for ongoing projects [11] Q&A Session Summary Question: Can you unpack where you're finding incremental operating leverage? - Management noted strength across all business lines, with the best table and slot hold in company history and record hotel revenue and profitability [22] Question: Any impact from renovations in the quarter? - Minimal impact was reported from renovations, with most disruption expected in Q3 and Q4 due to ongoing construction [24][30] Question: What is the timing of construction disruption? - Management indicated that the bulk of disruption would occur in Q3 and Q4, particularly at Green Valley Ranch [30] Question: How does the new tax legislation affect the locals market? - Management expects the tax legislation to increase discretionary income for customers, benefiting the company [34][36] Question: What are the trends in new customer sign-ups? - The company reported strong growth in new customer sign-ups, particularly from the Durango property, which added 108,000 new customers [44] Question: What is the outlook for group sales and catering? - Positive forward bookings were noted, with mid-twenty percent increases in group sales expected [49] Question: How is the company positioned regarding hotel rate competition? - Management acknowledged competitive pressures but emphasized that hotel revenue represents only about 10% of overall revenue [56] Question: What is the ideal leverage range for the company? - Management expressed comfort with the current leverage position, supported by a flexible credit agreement [94] Question: How do new customers from Durango behave compared to existing customers? - New customers from Durango exhibit similar behavior to existing customers but tend to have higher spending on food and beverage [100][102]