Operator News

US – Reopenings see Full House revenues jump by 226.9 per cent

By Phil - 12 August 2021

Full House Resorts bounced back in the second quarter of 2021 with revenues of $47.4m, marking a 226.9 per cent jump from $14.5m in the prior-year period.

The prior-year period reflects the pandemic-related closure of all of the company’s properties from mid-March 2020 through late-May 2020 for Silver Slipper, and through June 2020 for its other properties. Net income for the second quarter of 2021 improved to $5.5m from a net loss of $6.7m.

The strong growth in the 2021 period was due to operational and marketing improvements that bore results beginning in the second half of 2020 and continuing through the second quarter of 2021. Results for the second quarter of 2021 also include $1.5m of revenue related to the company’s Contracted Sports Wagering segment. Currently, five of the company’s six permitted sports wagering “skins” in Indiana and Colorado are live, as two additional sports wagering websites launched on April 1 and April 23, 2021. The last remaining sports skin is expected to begin operations in the coming months.

“As with last quarter, our financial results continue to benefit from structural changes throughout the company,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Revenues in the second quarter of 2021 increased approximately 227 per cent, reflecting the mandated closure of our properties for much of last year’s second quarter. Adjusted EBITDA increased by more than $16m to $14.9m in the second quarter of 2021, reflecting labor and marketing improvements. For the year-to-date period, Adjusted EBITDA totaled $25.7m. These operating results are significantly above not only the 2020 period, but also meaningfully above any second quarter or first-half results in at least the past five years.

“These strong continued results have allowed us to continue to re-invest in, and improve, our properties. For example, with the ramp-up of our new marketing systems at Bronco Billy’s and Rising Star largely complete, we now look forward to upgrading the casino marketing systems at our two Nevada properties, scheduled for this year’s fourth quarter. Our Silver Slipper property, after several years of adding new amenities and with a new exterior color scheme, is essentially a new and reinvigorated destination. We also continue to invest in new slot product throughout the Company. In many ways, our current results are the product of several years of investments in our casinos and new technology, as well as the diligent efforts of our team across the country.”

Mr. Lee added: “At our Chamonix project in Cripple Creek, we have completed the major portion of the on-site utility work. Installation of micro-piles for the project’s foundation is approximately 25 per cent complete. As construction prepares to go vertical, we recently installed the highest crane tower, in terms of cab height above sea level, in Colorado’s history. Substantial completion of the project is expected in the fourth quarter of 2022. It is still relatively early in the construction process, so estimates of cost and completion dates still contain substantial uncertainty.

“We continue to believe that Colorado’s gaming markets – especially Cripple Creek – remain significantly underpenetrated and do not have enough guestrooms. Recent hotel expansions in Cripple Creek and elsewhere in Colorado appear to be performing well. The development plan for our Chamonix site allows us to add an additional hotel wing. We are currently evaluating whether to build this additional hotel wing now, given the ease to do so while we construct the broader Chamonix project. That additional wing, if constructed, would increase the total size of our hotel by 23% to approximately 370 guestrooms. We believe that it could be funded, along with the rest of the project, from our existing cash balances, which totaled $281.5 million at the end of the second quarter. Such addition requires approvals from the Cripple Creek Historic Preservation Commission and Cripple Creek City Council.

“We also continue to pursue other growth opportunities in the longer-term, including our proposed American Place project in Waukegan, Illinois. The Illinois Gaming Board recently hired a consultant to help evaluate each of the three proposals remaining in the process. We look forward to the opportunity, perhaps later this year, to share our vision for a new casino destination for the Waukegan community.

“Also, the Indiana Gaming Commission recently issued a request for proposals (RFP) to develop a casino in Terre Haute, Indiana, which is approximately one hour west of Indianapolis. Full House had previously proposed development of a casino in Terre Haute and is considering responding to the RFP.”

In Mississippi, The Silver Slipper Casino and Hotel saw its revenues increase 165.7 per cent to $24.2m. Revenues of $9.1m in the second quarter of 2020 reflected the pandemic-related closure of the property from mid-March 2020 until May 21, 2020. Adjusted Segment EBITDA grew to $9m in the 2021 second quarter, a 648.6 per cent increase from $1.2m in the prior-year period. Revenue and Adjusted Segment EBITDA in the second quarter of 2019 were $18.9m and $3.6m, respectively.

In Indiana, Rising Star Casino Resort’s revenues were $10.6m in the second quarter of 2021, an increase from $2.2m in the second quarter of 2020. In Colorado, which includes Bronco Billy’s Casino and Hotel and, upon its opening, will include Chamonix Casino Hotel, revenues were $6.4m in the second quarter of 2021, an increase from $1.6m. In Nevada, which consists of the Grand Lodge Casino and Stockman’s Casino, revenues were $4.7m and $1.1m for the second quarters of 2021 and 2020, respectively, reflecting the temporary closure of Grand Lodge and Stockman’s from mid-March 2020 until June 4, 2020.

The company’s on-site and online sports wagering skins in Colorado and Indiana generated revenues and Adjusted Segment EBITDA of both $1.5m in the second quarter of 2021, reflecting the launch of two additional sports wagering skins on April 1 and April 23, 2021. Currently, five of the Company’s six permitted sports wagering skins are live. For the second quarter of 2020, when only two sports wagering skins were live, revenues and Adjusted Segment EBITDA were $463,000 and $447,000, respectively. We believe that the Company’s last remaining skin will commence operations in the next few months.