Good afternoon, and welcome to Red Rock Resorts Second Quarter 2023 Conference Call. All participants will be in listen-only mode. Please note this conference is being recorded. I would now like to turn the conference over to Stephen Cootey, Executive Vice President, Chief Financial Officer, and Treasurer of Red Rock Resorts. Please go ahead. Thank you, operator, good afternoon, everyone. Thank you for joining us today for Red Rock Resorts Second Quarter 2023 Earnings Conference Call. Joining me on the call today are Frank and Lorenzo Fertitta, Scott Kreeger, and our executive management team. I'd like to remind everyone that our call today will include forward-looking statements under the safe harbor provisions of the U.S. federal securities laws. Developments and results may differ from those projected. During this call, we will also discuss non-GAAP financial measures. For definitions and a complete reconciliation of these figures to GAAP, please refer to our financial tables and our earnings press release, Form 8-K and Investor Deck, which were filed this afternoon prior to the call. Please note that this call is being recorded. Before we get into any of the details, the second quarter represented yet another strong quarter for the company. The quarter represented our third-best second quarter in the history of our company in terms of same-store net revenue, Adjusted EBITDA, Adjusted EBITDA margin, only surpassed by the extremely strong second quarter of 2021 and 2022. Within the quarter, the month of April provided a particularly tough year-over-year comparison and accounted for the majority of the year-over-year decline in our results within the quarter, with May and June performing more in line with last year's stellar results. Despite a tough April, the management team executed on our core strategy of keeping the properties fresh and relevant for our guests and delivering another extremely strong quarter, with the quarter marking the twelfth consecutive quarter that the company delivered Adjusted EBITDA margins in excess of 45%. Let's take a look at our second quarter results. On a consolidated basis, second quarter net revenue was $416 million, down $6.1 million from the prior year's second quarter. Adjusted EBITDA was $175.3 million, down $13.6 million year-over-year. Our Adjusted EBITDA margin was 42.1% for the quarter, a decrease of 260 basis points year-over-year. With respect to our Las Vegas operations, second quarter net revenue was $412.6 million, down $7.5 million from the prior year's second quarter. Adjusted EBITDA was $193.1 million, down $14.8 million year-over-year. Our Adjusted EBITDA margin was 46.8%, a decrease of 268 basis points year-over-year. In the quarter, we converted 29% of our Adjusted EBITDA to operating free cash flow, generating $51 million or $0.49 per share. Our free cash flow conversion was lower in the quarter due to the timing of our estimated tax payments. When combining the first and second quarters, it shows that we continue to generate strong cash flow, converting 54% of our Adjusted EBITDA to operating cash flow, generating $198.6 million or $1.90 per share. This significant level of free cash flow was reinvested in our long-term growth strategy, including our Durango project, or was returned to our stakeholders via debt paydown or dividends. Throughout the quarter, we remained operationally disciplined and focused on our core local guests, as well as, as well as continued to grow our regional and national segments. When comparing our results to last year's second quarter, we continue to see upside from strong visitation in our regional and national segments. This strength, coupled with strong spend per visit across our entire portfolio, allowed us to enjoy near record second quarter revenue and Adjusted EBITDA results across our gaming segments. Turning to our non-gaming segments, both hotel and food and beverage continued to grow year-over-year and deliver record profitability in the second quarter. Our our hotel, hotel division experienced its highest quarterly revenue and profit in our company's history, driven by higher occupancy and ADR across our hotel portfolio. Food and beverage experienced near-record second-quarter revenue and record second-quarter profitability, driven by higher check average across our food and beverage outlets and continued strength of our catering business. Our catering revenue continues to surpass 2019 levels, as this quarter represented the eighth consecutive quarter of double-digit year-over-year growth in the business segment. With regard to our group sales business, we continue to see positive momentum driven by growth in both room nights and ADR. The pipeline continues to grow into the back half of 2023. As we begin the third quarter, our business across our gaming and non-gaming segments remain stable. We will continue to face challenging year-over-year comparisons for the remainder of the year. On the expense side, we remain operationally disciplined and continue to look for ways to become more efficient while providing best-in-class customer service to our guests and continue to be the top employer of choice in the Las Vegas Valley. Despite a tougher year-over-year comparable, the company was able to generate near-record financial performance and continued to return capital to our shareholders. These results demonstrate the resilience of our business model, the sustainability of our operating margin, and the ability of our management team to execute on our long-term growth strategy and take a balanced approach in returning capital to our shareholders. While we remain vigilant to the macroeconomic picture, we are committed to disciplined investing in our core strategy, which includes expanding our footprint in Las Vegas and investing in new amenities to our guests-- bringing new amenities to our guests at our existing locations. Building upon the successful openings of our high-limit table and slot rooms, as well as new casino bar at our Red Rock Casino Resort, this quarter, we opened up Polaris, a high-end casino bar located at our Green Valley Ranch Resort. The early results from this new amenity have been very promising, and we look forward to bringing additional complimentary amenities to our Green Valley property later this year. Now, let's cover a few balance sheet and capital items. The company's cash and cash equivalents at the end of the second quarter were $100.9 million, and the total principal amount of debt outstanding was $3.2 billion, resulting in net debt of $3.1 billion. As of the end of the second quarter, the company's net debt-to-EBITDA and interest coverage ratios were 4.25 x and 4.4x, respectively. As we stated on our previous earnings calls, our leverage will continue to tick upwards as we complete the construction of our Durango project. On the completion of Durango, we expect to de-leverage towards our long-term net leverage target of 3x n et leverage. Capital spend in the second quarter was $201.6 million, which includes approximately $172.7 million in investment capital, inclusive of Durango, as well as $28.9 million in maintenance capital. For the full year 2023, we expect to spend between $70 million-$90 million in maintenance capital and a total of $600 million-$650 million in growth capital, inclusive of Durango. Now, let's provide an update on our development pipeline. Starting with our Durango development, we are excited to announce that we are targeting Monday, November 20th, as the opening date for the Durango resort. As we've mentioned before, we're extremely excited about this project, which is situated on a 50 acre site, ideally located off the 215 Expressway in Durango Drive in the southwest Las Vegas Valley. The project is located in the fastest-growing area in the Las Vegas Valley, with a very favorable demographic profile and no unrestricted gaming competitors within a five mile radius. This quarter, we completed the enclosure of the resort as well as powered up the central plant as we move to commence the fit-out of the resort. As we progress through the current quarter, we are beginning to hand over key areas of the resort to our operational staff in order to start preparing for our resort opening. The current budget remains unchanged at approximately $780 million, which includes all design costs, construction, hard and soft costs, pre-opening expenses, and any financing costs associated with the project. The company still anticipates the return profile for Durango to be consistent with our prior greenfield developments. Turning now to North Fork. As we noted last quarter, after favorably resolving all of its other litigation, the tribe has a single remaining case in the California courts. We do not believe this case will interfere with the right or the ability of North Fork to conduct gaming on its federal trust land, and we continue to work with the tribe to progress our efforts with respect to this project, including working toward approval of the management agreement, continuing our work on the development and design, and having preliminary talks with our respective lending partners. We will continue to provide updates on our quarterly earnings calls. On the real estate front, you may have read in the press that we've made significant progress with respect to the sale of our former Texas Station and Fiesta Rancho properties. While we cannot disclose the terms, we believe we may be in a position to report on the closing of these two real estate parcels in the coming months. These potential transactions represent the continued execution of our long-term real estate development strategy as we look to reposition and upgrade our real estate portfolio for the next chapter of growth at Station Casinos. Lastly, on August 2nd, the company's board of directors declared a cash dividend of $0.25 per Class A common share, payable on September 29th to Class A shareholders of record on September 15th. With our current best-in-class assets and locations, coupled with our development pipeline of seven owned development sites located in the most desirable locations in the Las Vegas Valley, we have an unparalleled growth story that will allow us to double the size of our portfolio and capitalize on the very favorable long-term demographic trends and high barriers to entry that characterize the Las Vegas locals market. We would like to recognize and extend our thanks to all of our team members for their hard work. Our success starts with them, and they continue to be the primary reason why our guests return time after time. We would like again to thank them for voting as Top Casino Employer in the Las Vegas Valley for the third consecutive year. We are also very proud to share that Forbes selected us selected Red Rock Casino Resort & Spa as a top overall casino resort hotel in Las Vegas, which we consider a tremendous recognition of our efforts and those of our team members. Finally, we'd like to thank our guests for their loyal support each of the last six decades. Operator, this concludes our prepared remarks for today, and we'd like to turn the call over to take questions. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Joe Greff with J.P. Morgan. Please go ahead. Good afternoon, everybody. Steve, your comments about, you know, the majority of the 2Q declines, you know, took place in April. Obviously, our friends at Boyd said the same thing when they reported. What do you think happened in April? I mean, I don't think either one of you really kind of called that out a quarter ago on prior earnings calls. What do you think actually transpired with your consumer in April? You know, why do you think it's changed in May, and in June, and in July? Then I have a follow-up. Sure. I mean, I'll start and then, I'll hand it over to Scott. I mean, I think the first and foremost, we're dealing with incredibly tough comparables, particularly in March, I mean, particularly in April. If you're looking back at April 2021 and April 2022 in the history of our 46 years, you know, on an EBITDA per day basis, because you got a 30-day calendar, you know, April 2022 represents the best month in the history of our company. April 2021 represents the second-best history of the company. I think it's less to do about the consumer and more to do with just it's a huge uphill climb we're making. Yeah, and I, I think I could add a bit to that. Just the quantum of that represents about 85% of the decline for gaming in the quarter was in April. There's another piece of nuance in that. We did have unfavorable hold through the Golden Knights Road to the Stanley Cup. We had a lot of local folks on the Golden Knight side, which didn't hold well as it relates to that, and that attributed as well. If you parse out April and look at the, the May, June, and, and even into July, we see that gaming revenues are in line with what we've been experiencing for the rest of the year. Great. That's, that's helpful. How do you see the relationship between year-over-year variance in revenues versus year-over-year variance in operating expenses? Obviously, you had revenues down and OpEx up in, in the 2Q. How do you see that to be more in line? Is, is, is there, is there a way that, you know, if, if we are, say, flattish or, or down a little bit in revenues, can, can OpEx sort of match that year-over-year revenue trend, or is there something, just whether it's labor, whether you're carrying more costs in front of Durango, which, yeah, I guess, with that, those expenses would be capitalized. Can you help us understand that, Steve, going forward in terms of sort of margin trends, if we're, you know, in a, in a revenue, environment where, you know, things are, are down a little bit year-over-year? Sure. I mean, again, I just wanna reemphasize, this is the 12th quarter in a row that we've, you know, held margins over 45%. Yes, while we did experience a slight decline in margin, as Scott mentioned, and you, and you pointed out as well, April was the majority of that margin decline, and you're, and you're dealing with really just, the majority of that decline was due to, you know, the, the, not only the, you know, the gaming issues, but also the, the hold issue that Scott mentioned. Additionally, you know, we spent, you know, $2.1 million in repairs and maintenance, you know, year-over-year. That is a, you know, that's not a quarter-by-quarter decision we're making. That is core to our operating strategy of keeping our properties fresh and inviting to our guests. Our view on that is, you know, dealing with small problems now prevents larger problems down the road. You know, it's important to know we own our real estate, so that's why we take we take a good care of it. You know, that said, you know, R&M, we feel our properties are in fantastic shape. There are no deferred maintenance costs, so that is a lever that we can pull going forward if, you know, if we needed to get going, you know, down the road. The other kind of material cost, I'd point out, that degraded margins slightly, was we experienced roughly a $700,000 increase in utilities, and I think that's gonna be consistent across the entire Las Vegas Valley. That's not a station, you know, a nuance of station. Great. Then my last question with respect to the November 20th Durango opening. I'll book my flight after I get off the call with you guys to go to that. Is that a full-fledged opening? Is that a soft opening? Can you help us explain, you know, that versus, you know, opening, you know, later in the year around New Year's? That's all for me. Thanks. Yeah, sure, Joe. This is Lorenzo. Yeah, that will be a full-fledged opening. When we open properties, every aspect of the property is open, ready to go. We'll open the doors and let it rip for customers. It'll be full on that day. Great. Thanks, guys. Our next question comes from Carlo Santarelli with Deutsche Bank. Please go ahead. Hey, guys. Good afternoon. When you guys-- A- and I know, look, la- last year was somewhat unusual, right? Everybody benefited from, from a, a, a, that really strong 2Q that followed a, a tougher 1Q. But when you, when you look at kind of last year in review, obviously, the second quarter, I would imagine you would say, was your most challenging comparison of the year. I, I just wanna verify that that's the way that you're looking at it, and, and how you would categorize kind of the, the 3Q and the 4Q of 2022 in terms of the current levels of, of demand that you're seeing and, and some of the, you know, cost headwinds that, that are currently involved. Yeah, I can take that. Carlo, this is Scott. Yeah, look, I think when we look at where we've been and where we're headed, we've been mentioning that we're up against tough tough comps, and April certainly was one of the tough ones. If we look at forward trajectories, call it the, a 90-day look, inclusive of July, we like where we're headed. We like where we are at the midpoint of the year, against what we expect to do for the full year. We all, in consensus, feel like the rest of the year has tough comps as well. While we are encouraged with where we are year to date, and our operating teams are ready to face the challenge of any necessary, you know, expense management, they're already doing a great job of that when you're talking about labor, cost of sales, all of these things are being managed very well, all of these inflationary pressures. We're very focused on what we think is gonna be pretty competitive comps for the remainder of the year. Great. Thank you for that, Scott. If I could, just as you guys start to, you know, you're in the kind of 90-day stretch, or maybe less, until Durango opens, could you talk a little bit about the hiring environment or, or the experience thus far in, in terms of staffing up that property? Yeah, this is Scott again. You're right, we're, we're down to the final stretch. I think we're inside of about 100 days. We have done our internal recruitment campaign. We had a lot of interested team members to come over to the new property. That's the base of our employee pool. You know, that's an employee that understands our brand, is loyal to the company, and really kind of brings over the DNA of what we do. We are about to kick off the external campaign on the 14th, we're already getting unsolicited interest. We feel confident that we're gonna be able to fill our needed employment with high-quality employees. If, if you go back and look at what we said in previous calls, a long time ago, we right-sized our pay ranges, our benefits. We are a best-in-class employer in the market, and we knew this was coming, and we got ahead of this probably well over a year ago, so that we had competitive wages, competitive benefits. You know, they're not to be completely, you know, immune to the ex-- the other factors. We do have Fontainebleau coming online. We do have the Sphere coming online. There is a competitive market out there, but we think we're gonna compete very well. Thanks again. Thank you, guys. Our next question comes from Steve Wieczynski with Stifel. Please go ahead. Yeah, hey, guys. Good afternoon. It's, it's gonna be another margin question, so bear with me. Steve, you mentioned the, the majority of the margin pressure occurred, you know, in April. You know, based on what you witnessed in, in May and June, and now you have July under your belt as well, do, do you think it's possible to, you know, to have margins, you know, for the back half of the year, be in the range of last year? You know, you called out things like higher utilities, and, and, you know, are there other factors that might not allow you, you know, to do that? This is assuming the, you know, what you saw in May, June, and I assume July is, is kind of status quo. Yeah, I mean, I think that the, the top-line answer is yes, we, we, we can. We've been very consistent with that message that we expect to be in that, the new historical range, right? As, as Scott alluded to, we have a lot of the inflationary pressures already built in. I think the team is doing a fantastic job managing through them. You know, labor, for the most part, you know, we are now driven by volume-based labor, so payroll is going up as we bring on more people to, to, to fill demand, particularly in our non-gaming segments. You know, cost of goods sold, relatively flat, so we are managing through those. Then, as I mentioned with R&M, and there's probably a variety of other levers that we could pull. There's a lot of controllables that we feel we could pull out of the cost structure if need be. Right now, we feel pretty good in the business, and there's no, no, you know, we don't see any reason to change our current strategy. Yeah, Steve, I mean, this is Lorenzo. I think as we had mentioned in prior calls as well, you know, part of the margin question is gonna be determined by gaming revenue as well, right? If we're able to, and we believe that we will be, be able to maintain, you know, the trends that we're on, then we should, we should be able to maintain the margins. As Steve said, we have a very laser focus on expenses throughout the company. One last factor is acquisition costs. You know, we still are enjoying a very stable and rational promotionary market, and we don't expect that to change through the rest of the year. Okay, gotcha. Thanks for that, that color. Then, second question on the, on the hotel side. I'm, I'm not sure, Steve, if you mentioned where ADRs were in the quarter, but it, it seems like they were probably up slightly, is kind of my guess. I don't know, Scott, if you can- They were up. Yeah, go ahead. No, go ahead. I cut you off. Oh, no, no. I just wanted to see if Scott could kind of comment on, you know, how he views, you know, taking price action at this point in terms of, of, you know, on the room side, and basically just trying to understand if there's been any, you know, real pushback yet on, you know, you guys continuing to push room rates. I'll, I'll start with the facts, and then, and Scott can get, I'll leave the hard questions to Scott. I mean, ADR, you know, is up about 5.2%. We're, you know, we're, we're almost at that $194 mark, which is, you know, we're well above where pre-COVID levels go. You know, from an occupancy standpoint, that, I think that's gonna lead into what Scott's gonna say on pricing, is we're in that 88%, 88.5% occupancy. We're all up 340 basis points. We're still below our pre-COVID, so there's still room to grow on the occupancy side. Yeah, I'll, I'll jump in here. Just that all comes down to RevPAR. RevPAR was up about 9%. If you look at, a little deeper into the components of that, catering was up 40% year-over-year. Catering is also associated with group, group room nights. There's always a question as it relates to 2019 and where are we in comparison to 2019. I recall us saying at one point, you know, we're about to get there. To be comparable, I can tell you at this point, this year, we're about 78% above 2019 numbers in catering sales. As we look forward into what we call same time last year, meaning what's on the books now, forward-looking, and what was on the books forward-looking last year, sales revenue is up about 43%, and catering, revenue is up about 56%. We're really encouraged, not only with the quarter's performance on hotel, and catering, but also the forward look. To add to Scott's point, again, going back to, is the mix of in that group sales, you're now predominantly corporate, and corporate is a great, great mix because that leads to other ancillary revenue throughout the casino floor. Okay, gotcha. Great color, guys. Appreciate it. Thanks. Our next question comes from Barry Jonas with Truist Securities. Please go ahead. Hey there, this is actually Ramin Sobhani on for Barry. Can you talk about some, you know, what you think the impact will be from the event calendar with F1 and Super Bowl coming up on? Yeah, I know there's been this is Lorenzo. There's been a lot of talk about F1 and Super Bowl, and obviously, we're excited as for both of those weekends, as is everybody in the industry. When we talk about it around here, I mean, it's Las Vegas is, is, is unbelievable in the sense that it seems like there's, there's something major going on almost every weekend. You know, it's really, it's, it's just two, four data points that are gonna be great. You know, for us, as we see our business unfolding, it just is, you know, two weekends out of a lot of great weekends that are coming up for us. You know, I think that's part of why our, our, our, our forward look looks as it does, as Scott kinda outlined in the last question. Got it. Just a quick follow-up. Now that Oakland Athletics are, are out, you know, on the potential of Vivo land sale, what's your view on including gaming, gaming entitlements to to increase value there? Well, listen, you know, we were obviously excited about the opportunity that we were talking to the A's about. It didn't obviously end up happening. I can tell you one thing from a positive standpoint that has come out of that, is that now a lot of people are aware of how great of a site it, that it is, with 100 acres there, right off of the Las Vegas Strip, on the corner of I-15 and Tropicana. The property currently has gaming entitlements associated with it, if you, because we had the Wild Wild West Casino on that property for some time, which was a full casino license here. You know, we've, we've worked on that property for a number of years, and, you know, currently it's held for development. Also, you know, we've had a number of, of inbounds of people that are also interested in the entire property or parts of the property. We'll just continue having those discussions. You know, like I said, I think the real big positive that came out of that is it kind of put a spotlight on how valuable that piece of property is, and how rare it is to be able to have 100 acres of property of that magnitude within what is essentially the resort corridor. Got it. Thank you so much. Our next question comes from Dan Politzer with Wells Fargo. Please go ahead. Hey, good afternoon, everyone. Thanks for taking my questions. Hey, just wanted to touch on Durango. I mean, after you saw that, that blip in April, as you think about demand maybe being a little bit more fragile than, than three months ago? You know, how are you thinking about cannibalization at this point? You know, are you still thinking about full speed ahead in terms of phase II of that, that property expansion? We're, we're currently working on phase II from a planning standpoint, which is just kinda how we always have, have operated. Our anticipation is that we're gonna open Durango on November 20th, and it's gonna be a successful opening, and there's gonna be sufficient demand for that to be able to hit our targeted returns. We wanna be in a position that we can pull the trigger on a potential phase II, you know, as soon as, as soon as it makes sense for us to do that. We would be looking to add some gaming capacity, as well as some additional entertainment options. You know, that, that, that is one of the projects we're currently working on. As we had mentioned in the past as well, we're also working on plans and entitlements for the Inspirada project, which is located in Henderson, another great area without a lot of gaming capacity and in a great location, in an area that's got great demographics as well. Those are kind of the two that, of the eight, if you include Durango phase II, it gives us essentially eight projects for us to grow the company, that we actually control as a company, that we can roll out over a number of years here. Those would be the two that would be next in line in our minds. Did I answer your question? Yeah. Yeah. Yeah, I mean, again, the other point I would add, though, too, I mean, you mentioned the blip in April. You know, we don't view Durango as a blip in April. Yeah. I mean, you know, when I look at, like, Red Rock Casino Resort, it opened up in, what, April 6th? It opened, yeah. It, and it's been growing ever since. These are 40-year assets. That, yeah, like, so that, that one blip, which it was a blip, doesn't, has-. It's not even a blip. It's like a blip from the greatest month in the history of the company. Yeah, that's right. It's not a blip. Yes. You did, you did mention cannibalization. Look, we hope everybody wants to go and check out Durango. That's our... They will. Anticipation, they will. When you look at Red Rock and the dynamic growth that we're seeing in Red Rock and the surrounding, residential development, Red Rock's on its own growth trajectory relative to Summerlin West and high-net-worth people moving into the Valley. Any cannibalization that comes- It's gonna be short term. At Durango will be short term and backfilled very quickly. Got it. Then just for my follow-up, obviously, there's been some pretty extreme heat, out west. I mean, has there been any impact in terms of the drive-in customer or alternatively, more locals, you know, leaving town that would result in maybe pronounced seasonality? No, I think seasonality in Q2 is in line with what we've seen in the past. Historically, maybe not in the past relative to 2021 to 2022, but historical seasonality, yes. I mean, typically, you know, Las Vegas locals do tend to go on vacation in the summertime. You know, it is very hot here, wherever, you know, they go to get out of the heat or just have their summer vacation. As we mentioned, I, I don't think it's anything out of the norm of what we've seen outside of 2021 and 2022, which obviously, we didn't see any seasonality in those years. Thanks. Appreciate all the detail. Appreciate it. Our next question comes from Chad Beynon with Macquarie. Please go ahead. Afternoon. Thanks for taking my question. Just wanted to dig a little bit more into the gross gaming revenue. I know roughly 80%-85% of your GGR comes from slots. We've seen probably some, some stronger numbers on slots versus maybe some deteriorating numbers on tables. Not sure if that is really just kind of highlighting how strong, some of the table revenues were last year from, from a retail customer. Is that kind of what you guys were seeing in your business? Is, is the core slot business, did that hold up well in the months that, that, that you were talking about? Thanks. Hey, this is Scott. I think if we look, on absolute dollars, the slots were the largest decline. When you look at table games, actually from a volume perspective, table games dropped. We were actually up. We had some hold issues related to table games that contributed to the decline. Then when we look at sports, as we said, you know, it's really a function of the Golden Knights. We can triangulate right against that and a whole percentage issue for sports. Okay, great. Thanks. That's kind of conducive to our core strategy is, you know, tables is up. We've invested a lot of money in our high, you know, in our table rooms. Yeah, we have a new high-limit room for slots and a new high-limit room for tables coming on in Green Valley Ranch towards the end of the year. We also have a new high-limit room at Santa Fe coming online. This is all part of us investing in high net worth, high-profit customer segments. Okay, thank you. From a capital allocation and leverage standpoint, could you just kind of remind us, you know, when you would start moving forward on, on the next project or when you would start returning to share repurchases after Durango opens in the fourth quarter? Thank you. I think from a leverage standpoint, as we've, you know, kind of walked through, we're going to get Durango open, so, you know, leverage should peak out Q4, and then as Durango loads up, it will. You know, as it ramps up, we will start to naturally delever down. The board, you know, considers capital allocation every quarter, both from a dividend perspective and a share repurchase perspective. We've, you know, we've made it very clear, we've halted the share repurchases program in the past, because we're in the throat of Durango. You know, once that launches, that's to your point, I think we're going to return to a more balanced approach to returning capital to our shareholders. Thanks, Steve. Looking forward to the opening. Appreciate it. Our next question comes from David Katz with Jefferies. Please go ahead. Afternoon, everyone. Thanks for taking my questions. You covered a lot of ground already. What I wanted to ask about is, how you're thinking about omni-channel strategy and technology, digital, et cetera. I know digital wallet was something you were, you know, working out, rolling out, et cetera. An update there would be helpful, too. Yeah, it's a great time to ask that question. We're rolling out a bunch of new tech, and it all revolves around transaction ease and less friction for the customer and the mobile device. We have a complement of products, starting with a new mobile app that will bring transactional features for the customer. This would include digital cash, digital wallet, Marker Trax, which is retail credit lines up to $5,000. Microcredit, yeah. Microcredit. We'll also add a bunch of new functionality into the app related to booking reservations and different things like that. It'll also incorporate the new sports mobile system. All of this will be under a singular wallet and a singular password construct and enrollment construct that allows you to not have to enroll separately in all of these different applications. It was our target to have all of that online before the opening of Durango, and we're in the throes of having either rolled those things out or rolling them out. Thank you. Thanks, David. This concludes our question and answer session. I would like to turn the conference back over to Stephen Cootey for any closing remarks. Thank you very much for everyone joining the call, and we look forward to talking more as the Durango approaches later this fall. Take care. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.