Financial Data and Key Metrics Changes - The first quarter results were in line with expectations, primarily impacted by the absence of last year's Super Bowl in Las Vegas, particularly affecting The Strat [5] - EBITDA from other casinos increased year over year, while EBITDA from taverns stabilized [5] - The company ended the quarter with over $400 million in debt, $50 million in cash, and $225 million in remaining availability under the revolving credit facility, with a low net leverage of 2.4 times EBITDA [8][9] Business Line Data and Key Metrics Changes - The Strat experienced a 5% decline in occupancy for the quarter, with a 13% drop in February, leading to a $3 million EBITDA headwind [6] - In Laughlin, EBITDA increased by reducing expenses and focusing on more profitable concerts, maintaining leading market share [7] - Revenue and EBITDA from taverns were down slightly year over year, but sequentially improved over Q4 due to better performance from newer taverns and reduced operating expenses [8] Market Data and Key Metrics Changes - Revenue for Nevada locals casinos was flat compared to the prior year, with EBITDA up 2% driven by operational efficiencies [7] - The locals business showed increasing strength in April, indicating a strong start for Q2 [8] Company Strategy and Development Direction - The company is focused on a disciplined reinvestment strategy and has prioritized share repurchases over M&A opportunities due to current market conditions [10][19] - The management believes that the current valuation dislocation presents a better opportunity for repurchasing equity rather than pursuing acquisitions [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite an uncertain macroeconomic environment, highlighting stable operating trends in April and a strong start in May [5][11] - The company is optimistic about the performance of The Strat, with occupancy pacing up 6% year over year in May and showing strength in June [6][11] Other Important Information - The company has repurchased 3.2 million shares totaling nearly $100 million since the start of 2024 and paid out $35 million in dividends [10] - A nationally recognized food and beverage concept is set to open at The Strat, expected to enhance revenue [45] Q&A Session Summary Question: Booking trends and OTA mix at The Strat - Management noted a shorter booking window at The Strat, with occupancy materializing within a seven-day period, and the OTA mix is currently around 65%, trending downward as they improve direct bookings [13][16] Question: M&A environment and macro impact - The management indicated that the current macro environment has dampened M&A discussions due to value dislocation and uncertainty about future conditions [18][19] Question: Tavern business competition - Management acknowledged increased promotional activity from smaller operators but expressed confidence in their disciplined approach and market position [24][28] Question: Local segment margins and operational efficiencies - The company highlighted strong margins of 46% for the local segment, attributed to rightsizing labor and streamlining operations [50][51] Question: Capital allocation and stock repurchase strategy - Management confirmed a commitment to aggressive stock repurchases, leveraging available liquidity, but expressed skepticism about the effectiveness of tender offers in the gaming space [63][66] Question: Future hotel room rates at The Strat - The management indicated that driving higher room rates will depend on citywide promotions and improved midweek occupancy, with ongoing efforts to enhance direct bookings [70][72]