The Temporary casino has helped drive a 73 per cent increase for Full House Resorts in its third quarter ended September 30, 2023, with marked increases in both is Midwest, West and South segments.
“As envisioned, results at The Temporary by American Place continued to improve during the third quarter,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Our table games business at The Temporary was strong initially, and continued to build as we hired more dealers and increased the number of available table games. Our slots business also continues to ramp up, aided by our guest database that continues to grow meaningfully in size with every passing week. As a result, both revenues and Adjusted Property EBITDA at The Temporary increased from the second quarter of this year, reaching $23.9 million and $6.8 million, respectively. The Temporary’s available amenities also continue to expand, with the on-site sportsbook welcoming its first bets approximately one month ago. We are close to unveiling the last remaining amenity at The Temporary – North Shore Steaks and Seafood, the property’s high-end dining option – which we expect to open at the end of the fourth quarter.
“Meanwhile, at our Chamonix project in Cripple Creek, Colorado, significant construction continues in advance of the destination’s opening on December 26. Workers are currently installing furniture throughout the hotel. Within the casino, we are about to begin installation of slot bases, followed by the final placement of slot machines throughout November and early December. In our convention space, we recently installed chandeliers in the main ballroom and are preparing to install furniture. We are excited to welcome guests to Chamonix – designed to be the best casino in the state of Colorado – in less than two months.”
On a consolidated basis, revenues in the third quarter of 2023 were $71.5m, a 72.8 per cent increase from $41.4m in the prior-year period. These results reflect the February 2023 opening of The Temporary, as well as $5.8m of accelerated revenue for two sports wagering agreements that ceased operations during the third quarter of 2023. Net income for the third quarter of 2023 was $4.6m, or $0.13 per diluted common share, which includes $1.1m of preopening and development costs, primarily related to our Chamonix construction project, and significant depreciation and amortization charges related to The Temporary.
In the Midwest & South segment, which includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and The Temporary by American Place, revenues were $52.6m in the third quarter of 2023, a 77.4 per cent increase from $29.6m in the prior-year period. Adjusted Segment EBITDA rose to $11.8m, a 110.6 per cent increase from $5.6m in the prior-year period. These results reflect the February 17, 2023 opening of The Temporary, our newest casino located in Waukegan, Illinois. In the third quarter of 2023, The Temporary generated $23.9m of revenue and $6.8m of Adjusted Property EBITDA. We expect The Temporary’s results to continue to increase in the longer-run, as the property’s database continues to expand and marketing, labor and other early costs normalize.
Excluding results from The Temporary, same-store revenues declined to $28.7m from $29.6m. Same-store Adjusted Segment EBITDA declined to $5m from $5.6m, reflecting increases in insurance costs at Silver Slipper, as well as general increases in labor expenses.
The West segment, which includes Grand Lodge Casino (located within the Hyatt Regency Lake Tahoe resort in Incline Village), Stockman’s Casino, Bronco Billy’s Casino and Hotel and, upon its expected opening in December 2023, will include Chamonix Casino Hotel, revenues improved to $11.1m in the third quarter of 2023, versus $10.7m in the prior-year period. Adjusted Segment EBITDA was $2.3mfor both periods. Results in both periods reflect the temporary loss of all on-site parking and on-site hotel rooms at Bronco Billy’s to accommodate the construction of neighboring Chamonix. Upon the opening of Chamonix, Bronco Billy’s is expected to benefit from its integration with Chamonix, including its new parking garage and approximately 300 on-site guestrooms.
In sportsbetting, which consists of the company’s on-site and online sports wagering skins in Colorado, Indiana, and Illinois. Revenues and Adjusted Segment EBITDA were both $7.9m in the third quarter of 2023, reflecting the contractual launch of its permitted Illinois sports skin in mid-August 2023, which contributed $0.7m to both revenues and Adjusted Segment EBITDA in the third quarter. These results also include $5.8m of accelerated revenues related to two sports wagering agreements that ceased operations during the third quarter of 2023.
The company is currently permitted to operate three sports skins in Colorado, three in Indiana, and one in Illinois. Of such permitted skins, two sports skins are currently live in Colorado, one in Indiana, and one in Illinois.
The company stated: “Under our agreements with various third parties to operate such skins, we receive a percentage of revenues, as defined in the contracts, subject to an annualized minimum amount that currently totals $8m. We continue to evaluate whether to operate our remaining idle skins ourselves or to have other third parties operate them. However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.”