Full House Resorts Reports Strong Growth Amid Challenges

Full House Resorts ((FLL)) has held its Q3 earnings call. Read on for the main highlights of the call.

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The recent earnings call for Full House Resorts painted a generally positive picture, with strong growth in key areas such as American Place and Chamonix. The company reported significant improvements in adjusted EBITDA, although challenges persist in some properties and logistical aspects of future projects. Overall, the positive developments slightly outweigh the challenges, indicating a cautiously optimistic outlook.

Record Revenue and Growth at American Place

American Place in Illinois achieved record revenue and profitability, with a 14% increase in revenues to $32 million in the third quarter. The adjusted property EBITDA rose by 16% to $9 million, highlighting the robust performance of this property.

Chamonix Performance Improvement

Chamonix in Colorado demonstrated notable improvement, with revenues increasing by more than 7%. The adjusted property EBITDA rose from a negative $0.7 million last year to a positive $2.1 million. A significant highlight was the 53% increase in table game revenues compared to last year’s third quarter.

Adjusted EBITDA Growth

Company-wide adjusted EBITDA saw a 26% increase, reaching $14.8 million despite several unusual items. This growth underscores the company’s ability to enhance profitability across its operations.

Permanent American Place Project Progress

The Permanent American Place project received unanimous site approval from the Waukegan City Council, and the project’s total budget was reduced from $325 million to $302 million, reflecting efficient project management.

Rising Star and Silver Slipper Performance

The performance of Rising Star and Silver Slipper was essentially flat on a combined basis, indicating stable operations without significant growth or decline.

Challenges at Grand Lodge

Grand Lodge faced challenges due to renovation disruptions at the Hyatt Lake Tahoe, impacting its performance during the quarter.

Temporary Casino Complications

The temporary casino in Waukegan may require an extension beyond its initial deadline, necessitating legislative approval, which could pose logistical challenges.

Forward-Looking Guidance

Looking ahead, Full House Resorts reported a revenue increase to $78 million, up from $75.7 million the previous year, with a 5% growth on an apples-to-apples basis. Adjusted EBITDA rose by 26% to $14.8 million, potentially reaching $15.2 million if not for several unusual items. The company continues to focus on cost reductions, efficiency improvements, and expanding its customer base and market reach, particularly at American Place and Chamonix.

In summary, Full House Resorts’ earnings call revealed a generally positive sentiment, driven by strong performances at American Place and Chamonix. While challenges remain, particularly with the Grand Lodge and temporary casino logistics, the company’s strategic focus on growth and efficiency improvements suggests a promising outlook.