Welcome to Century Casinos' Q3, 2017 Earnings Conference Call. This call will be recorded. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to introduce our host for today's call, Mr. Peter Hoetzinger. Mr. Hoetzinger, you may begin.

Good morning, everyone, and thank you for joining our earnings call. With me on the call are my Co-CEO and the Chairman of Century Casinos, Erwin Haitzmann; as well as our Executive Vice President of Finance, Margaret Stapleton. Before we begin, we would like to remind you that we will be discussing forward-looking information, which involves a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings. In addition, throughout our call, we may refer to several non-GAAP financial measures, including but not limited to, adjusted EBITDA. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our news release and in the filing from this morning, available in the Investor section of our website at cnty.com. We will now provide a brief review of the company's financial results for the third quarter of 2017 and following our prepared remarks there will be a question-and-answer session. The third quarter results reflect excellent performances from our all operating segments and Canada demonstrated the earnings power of our international portfolio of casino assets. Net operating revenue was up 19% and adjusted EBITDA was up 20%. During the quarter we released the valuation allowance on our US differed tax assets, resulting in a tax benefit of $5.1million. We analyzed the likelihood of future realization of the differed tax assets and based on this analysis, we concluded that the operations in the US, has attained a sustained level of profitability sufficient to reduce the valuation…

[Operator Instructions] And your first question comes from Mike Malouf with Craig-Hallum Capital Group. Please go ahead.

Hi, thanks for taking my questions. Well done this quarter. I wonder if you could just - can just talk a little bit more about Poland. When you take a look at the new large casino that's ramping there and then when you take a look at the ones that are sort of waiting for approval and the third one that you've just won, what kind of size are we talking about with regards to those casinos?

Hi, this is Erwin. Warsaw historically was our second big casino that was before the Hilton came in. So, Warsaw was number two, in both revenue and EBITDA, behind the Marriott casino. If and when it's open again now, we expect it to be number the behind the two Warsaw properties. Kraków at Dwór Kościuszko portfolio will be mid-size let's say and [indiscernible] is a smaller casino in a smaller town.

Okay, and then in the last quarter I think you kind of highlighted a lower whole percentage in Poland, I think it was 17% and then this quarter was 19%. Where do you expect that to bounce back and have you seen hold percentages like this last for such a long period of time? Thanks.

This, the hold percentage is not there again so by nature is subject to volatility. In this last quarter, for example we had one large player who contributed significantly and then had an impact on the hold as well. So, you're expected that there is a range where the whole percentage would go up and bound, particularly when you look at it on a quarter-by-quarter basis. Over the year it's clearly your basic percentage and we can think of leveling out.

Okay and that the key hoping on Poland. But, when you take a look at late 2018 after we get some of these other - after everything's ramped up, and you open up some of these other, two or three? Where do you expect, where could you hope to have that EBITDA margin reach, because obviously we've been kind of pursuing the September quarter down at the low point, where can that go to over the next couple of years?

I wouldn't want to predict.

Michael, we had it at the very high teens already, before we started order, on the Hilton Casino and we had to reapply for those licenses. So, I mean that's an indication of where it can be because of high teens. We've said previously that to go like mid 20s and up is not possible because of their gaming tax. Gaming tax issues is very high in Poland, 65% of revenue and that's why we can't really jump into the mid 20s or higher.

But theoretically could get 20% of everything is kind of humming on all sonar's right?

That's a goal that we will see, yeah.

Okay, thanks a lot for taking my questions.

[Operator Instructions] Your next question comes from David Bain with Roth Capital. Please go ahead.

Hey, thank you. Just a follow-up on the Poland margins, I believe I heard you say that an extra 500,000 was of the added expenses that you mentioned on the call. So, it looks like you are up 200 basis points sequentially normalized. Did those expenses bleed into 4Q and then also on top of that is, is the Marriott up to for margin extraction or is it still a little bit of kind of one-time marketing going on in that facility to get it ramped up?

I think you the need the new one at the Hilton.

I'm sorry, yes.

As long as we don't have to take these licenses in hand and we can open, yes, we have some extra related costs and expenses because as we've said, we keep the staff and we have other expenses like lease payments as well. Now, we expect those licenses any week, but I think we met those costs.

And Erwin, in terms of additional or extra marketing or promotional expenses at the Hilton, are we at the run rate that will like to continue or is that - is the M&A closing [ph] going on right now?

No, with the run rate the main reason being that we can't really do a whole lot due to the restrictions in marketing in Poland.

Okay, and then overall in Canada, can have much better than we had but, it looks like Calgary had the largest outside variance versus our estimate. You spoke a little bit about the thoroughbred racing addition, maybe if you can give us a little bit of sense as to what type of player that's bringing in if there's mixed shift there in the calendar for thoroughbred going forward there. And then when you at the Century Mile development, is there a key take away from that with the future mix that we should think about when we are modeling Century Mile.

Yeah, the customers, the people who come to [indiscernible] spend more both in betting on the horses as well as in the casinos and also in F&B. It's the kinds - the type of players come to the race and hang around, has few drinks at the bar, which is different from the kind of standard for players. Take your way from a tension mind, if you may know we'll be bigger, better, totally state of the art, it is a fantastic property, we're going through the revised plans. I think it will really, really good and we'll be as Peter said, would be really surprised if we could not hit that 25% margin.

Awesome, okay, thank you very much.

And, there are no further questions at this time. And, I'll turn the call back over to the presenters.

Great, thank you. Thanks everybody for your interest in Century Casino and your participation in the call. For a recording of the call, please visit the financial results section of our website at cnty.com. Goodbye.

This concludes today's conference call. Thank you for attending.