Century Casinos, Inc. (NASDAQ:CNTY) Q4 2022 Earnings Call Transcript

Erwin Haitzmann: Maybe to give you some flavor, last talking to our general manager there after we moved from the boat to the temporary facility in what we call Pavilion, he said he has not seen one single customer who has been unhappy about the boat not being there anymore. People are really happy about it. I mean it’s a wonderful, nice, little — you would say it’s a wonderful interfacility. It’s not such we’re going to build, of course. That will be brand new, and then it takes much better. But what was possible, it has a very good feel for both the table games and the slot machine side and is very well accepted, and we’re really happy that, I mean, the old circumstances are difficult growth that we, together with a lot of support from the lot authority. We’re able to get the approval for that move into this in terms of facility.

Operator: We will take our next question from Edward Engel. Your line is open.

Edward Engel: As some of these acquisitions kind of closed throughout the year and then you just start generating substantial free cash flow, where does this kind of free cash flow get focused to? Are you still open on the M&A front? Does it just go completely averaging? Are there other kind of CapEx projects across the portfolio? Just kind of wondering how that capital application shifts as these acquisitions close.

Peter Hoetzinger: We see a mix of certain things. Deleveraging is one. And yes, we want to become active again on the M&A front. Probably, once we close the Rocky Gap acquisition in the summertime, we may also want to give a little bit back to our shareholders. So it will be a combination of all those things, a little bit dependent on how busy the M&A situation will get come Q3 and Q4.

Edward Engel: And then you’re helpful in giving the pro forma net leverage once these things close. Just wondering, do you have a target net leverage you have in mind in a steady-state environment, I guess, non-M&A environment?

Peter Hoetzinger: Lease adjusted around 4 times, 4.5 times is where we feel very comfortable.

Operator: It appears we have no questions at this time.

Peter Hoetzinger: Well, we appreciate everybody joining our call today. For a recording of the call, please visit the financial results section of our website at cnty.com. And if you have any follow-up questions, please feel free to reach out to us. Thank you.

Operator: Thank you, ladies and gentlemen. This concludes today’s program. You may now disconnect.