NEW ROYAL HOLDCO I INC. Q3 FY2023 earnings call

• Generated revenue of $258 million and EBITDA of $53.2 million in Q3. • Received $260 million from sale of Rocky Gap Casino Resort in Maryland and $109 million from sale of Montana distributed gaming business. • Net proceeds increased liquidity by nearly $300 million, allowing repayment of $175 million term loan, special dividend of $2 per share, and stock buybacks. • Nevada Casino Resorts: STRAT had 8% revenue growth and 16% EBITDA growth due to improved occupancy; completed room renovations at STRAT. Laughlin had more entertainment events and successful new bingo room. • Tavern operations: Taverns have attractive ROIs, expect to close 4 locations by year-end and 2 in Q1. • Balance sheet: Pro forma net leverage 2.5x post transactions, expected to be <2x post sale of Nevada distributed business.

For the third quarter, revenue was $258 million and EBITDA was $53.2 million. Nevada Casino Resorts: Revenue increased 7%, EBITDA improved 2%. STRAT revenue up 8% with EBITDA up 16% due to improved occupancy; occupancy at STRAT was 75% vs 68% last year. Laughlin revenue up 6%, EBITDA down 4% due to higher labor and other operating costs. Nevada locals casinos: Revenue and EBITDA in line with last year, stable performance. Nevada tavern operations: Revenue flat to last year, EBITDA down 9% due to Nevada's July minimum wage increase. Nevada third-party distributed operations: Revenue down 9%, EBITDA decreased 23%.

• Pro forma net leverage anticipated to be reduced to less than 2x after close of sale of Nevada distributed business. • Intend to be opportunistic with future stock buybacks, with $91 million remaining under authorization. • Expect STRAT to benefit from higher occupancy and new amenities like Atomic Golf opening in January, with positive trajectory without construction disruption.

• Impact of highway disruptions south of the strip potentially dissuading some customers. • Cyber hack had minor spillover to STRAT, not material. • Potential union labor contract impacts on STRAT, but good relationships expected to mitigate issues.

Q: Weak driving data and impact on Laughlin/STRAT?

A: No material impact, highway disruption south of strip but not affecting property performance.

Q: Benefit from cyber hack at STRAT?

A: Little spillover, not material, maybe for a weekend or so.

Q: Las Vegas locals consumer temperature?

A: Strong, local market performing better, population migration from California continuing, healthy local economy with high employment and low unemployment.

Q: M&A thoughts?

A: Focus on West US, strategic assets near existing footprint, use stock if trading below 7x forward for value acquisition.

Q: Nevada casino operations unrated customer degradation?

A: Database healthy, distinct players increased, distinct gaming days increased, actual slot and table revenue from those players up.

Q: Laughlin tavern margins and expense creep?

A: Labor costs from minimum wage, one more increase next year but adding taverns will drive EBITDA growth in segment.

Q: STRAT occupancy recovery and OTA mix?

A: Still deficit in midweek occupancy, OTA mix improved from 80% to 65%, bullish on future performance with positive trajectory without disruption.

Q: F1 event impact?

A: Additive for the city, tail effect will benefit STRAT, Super Bowl demand stronger than F1 currently