Operator News

US – Full House up 12.6 per cent in third quarter

By Phil - 15 November 2021

Full House Resorts, operator of casinos in Mississippi, Colorado, Indiana and Nevada, generated revenues in the third quarter of 2021 of $47.2m, a 12.6 per cent increase from $42m in the prior-year period. Both periods reflect a full quarter of reopened operations, as all of the company’s properties reopened by June 2020 after closing in March 2020 due to the pandemic.

Net income for the third quarter of 2021 was $4.6m, or $0.13 per diluted common share, reflecting additional interest expense related to the funding of the Company’s Chamonix development project in Cripple Creek, Colorado, and a credit in the prior-year quarter related to warrants that were retired in early 2021. In the prior-year period, net income was $7.7m, or $0.28 per diluted common share. Adjusted EBITDA in the 2021 third quarter was $13.6m, an 8.9 per cent increase from $12.5m in the third quarter of 2020. Growth in the 2021 period was due to improved results from the Company’s Nevada segment and the sale of ‘free play’ that Indiana’s casinos are permitted to transfer to other casino operators within the state, partially offset by the temporary closure of Silver Slipper due to the passage of Hurricane Ida and the impact of wildfires in the communities surrounding Grand Lodge Casino. Results for the third quarter of 2021 also include $1.6m of revenue related to the company’s Contracted Sports Wagering segment, compared to $0.7m in the prior-year period. Currently, five of the company’s six permitted sports wagering “skins” in Indiana and Colorado are live.

“We had another strong quarter, with revenue and operating income increases despite some weather challenges,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Revenues in the third quarter of 2021 increased 12.6 per cent, reflecting the relaxation of pandemic-related restrictions, our sale of ‘free play’ in Indiana (in this year’s third quarter instead of the fourth quarter in prior years), and a continued strong overall performance. Adjusted EBITDA increased to $13.6m from $12.5m in the third quarter of 2020.”

Continued Mr. Lee: “At the Silver Slipper, guest visitation remained robust except for a brief downturn as Hurricane Ida made landfall. We had little damage from the hurricane, but it significantly hampered our operations for four days. At Bronco Billy’s, we continue to try and mitigate the impact of Chamonix’s construction on Bronco Billy’s neighboring operations. Despite the loss of on-site parking, Bronco Billy’s continued to perform strongly relative to its average performance over the past decade. Rising Star continues to do well. As noted above, Rising Star benefited in the quarter from the sale of ‘free play,’ whereas prior years had a similar transaction in the fourth quarter. At our Nevada segment, Stockman’s Casino has largely returned to pre-pandemic levels, while Grand Lodge Casino was adversely affected by a low table games hold percentage and smoke from nearby wildfires, particularly over the Labor Day weekend.

“At our Chamonix project in Cripple Creek, we are currently installing footings and structural walls for the hotel tower and are preparing for the start of vertical construction. It is still relatively early in the construction process, so estimates of cost and completion dates still contain substantial uncertainty, but we are in the process of completing the bidding for a substantial portion of the construction budget.

“We also continue to pursue other growth opportunities in Waukegan, Illinois, and Terre Haute, Indiana. In Illinois, we recently presented our proposal to the Illinois Gaming Board for a new destination casino in Waukegan, a northern suburb of Chicago. Similarly, we are scheduled to present our unique proposal to the Indiana Gaming Commission next week for an iconic casino hotel in Terre Haute, approximately one hour west of Indianapolis. The respective gaming commissions have indicated that they intend to select their winning proposals on November 17 (Indiana) and by early January (Illinois). Both new casinos would be named ‘American Place.’

“Our management team at Full House has a long history of developing some of the most iconic casinos in the world. We look forward to the potential of developing both of these unique proposals over the next few years.”