Welcome to Century Casino's Q2 2019 Earnings Conference Call. This call will be recorded. [Operator Instructions] I would now like to introduce our host for today's call, Mr. Peter Hoetzinger. Mr. Hoetzinger, you may begin.

Thank you, Emily. 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'd 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 encourage you to review these filings. In addition, throughout our call, we 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 SEC filings, available in the investor section of our website at cnty.com. I'll now provide a brief review of the company's financial results for the second quarter 2019. Following the prepared remarks, there will be a Q&A session. Well, this was another very good and very active quarter for us. Net operating revenue was up 32%. Adjusted EBITDA increased by 44% but that includes $900,000 in nonrecurring expenses related to the write-down in connection with the casino aboard the Chinese cruise vessel Glory Sea, which stopped operating and has an uncertain future. Excluding that, what I would call real adjusted EBITDA is $7.6 million for the quarter and that's actually 62% higher than last year. For now, Canada remains our strongest segment, generating 42% of our consolidated revenue. In local currency, the Canadian operations grew revenues by 49% and adjusted…

[Operator Instructions] And our first question comes from the line of Mike Malouf from Craig-Hallum.

Great. I'd love to focus in on these three acquisitions -- on the three casinos that you acquired. Just a little bit, you said you just went and visited them and went through some of the operations. I'd love to sort of get a real time, a little bit more color with regards to what you're thinking about your ability to drive revenues and profitability at those over the next couple of years after you get ownership?

Erwin, please?

Yes. We -- as Peter said, everything that we saw in our previous visits was confirmed and more than confirmed, great teams that are working very well together. It is our intent -- we would like to keep everybody, from the manager down. No need to change anything and I think that the first course of action will be, as I said, to leave everything the same. And our financial model works if we trust or repeat the same EBITDA than what has been done by the previous owners before we came. And then as we go and then we'll continue discussions with our -- with the local managements there. I would imagine that there is a number of possibilities to further increase EBITDA. It's still early to give any details and as I said, we're not even in yet. We have to go slowly and cautious. So I think it's important for the existing staff to know that we just -- we don't want to come in and turn everything upside down. We want to keep things as they are and then look for opportunities as we started discussing and that they started presenting to us in the one-on-ones that I had the opportunities to have with the various department heads.

Okay, great. And can you remind us or at least a little bit of an update if there's been any change with regards to timing of the closing of these?

No. We'll still close in early 2020.

Early 2020; okay, great. And then just a follow-up on Century Mile. When you take a look at the margins and expect sort of normal margins, can you give us a sense of timing on something like that and where you think normal margins shake out?

Go ahead.

It should probably kick in, in about a year from now and with normal margins, we do not mean the same margins that we generate at Century Downs. But it is -- but simply due to the fact that at Century Downs, the rent that we paid for the land comes below the EBITDA line and at Century Mile, it is above the EBITDA line, and Peggy can give more detail on that. I think it's because it's a financial lease at Century Downs. Right, Peggy?

That's correct. It's a financing lease at Century Downs where it's not at Century Mile.

So where do you think those numbers end up shaking out?

At Century Downs, they are in the very high 30s, and sometimes even in the 40s. And at Century Mile, that will probably be somewhere in the high 20s or low 30s.

[Operator Instructions] And there are no further questions. I will now turn the call back to Mr. Hoetzinger for closing remarks.

Yes, okay. Thank you very much, everybody, for your interest in Century Casinos and for your participation in the call. For a recording of the call, please visit the financial results section of our website at cnty.com. Thank you and goodbye.

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