Full House returns to net profit in Q1
Total revenue for the three months to 31 March 2022 was $41.4m (£33.5m/€39.1m), down 1.9% from $42.2m in the corresponding period last year.
Casino revenue fell 9.4% year-on-year to $29.1m, though food and beverage revenue was up 6.6% to $6.5m, hotel revenue remained flat at $2.2m, while other operations, including contracted sports wagering, doubled from $1.8m to $3.6m.
Breaking down this performance, Full House said its operations in Mississippi, namely at the Silver Slipper Casino and Hotel, generated $21.3m, more than half of all revenue during the quarter.
Indiana revenue from the Rising Star Casino Resort reached $8.6m, while Colorado revenue at Bronco Billy’s Casino reached $4.2m, and Nevada revenue from Grand Lodge Casino and Stockman’s Casino was $4.4m.
Full House also noted that contracted sports betting, which consists of its on-site and online skins in Colorado and Indiana, generated $2.8m in Q1, almost triple the $1.0m posted last year. Plans are also in place to extend this offering to Illinois.
Turning to costs, operating expenses were 8.7% higher at $36.1m, which meant that operating profit slipped 39.1% from $8.7m to $5.3m. Other expenses were 9.2% lower at $10,.8m, but pre-tax loss widened from $3.2m to $5.5m.
However, Full House received $5.6m in income tax benefits, whereas last year it paid out $202,000 in tax. This meant net profit for the quarter amounted to $110,000, compared to a $3.4m net loss in 2021.
Full House did also note, however, the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 22.2% lower at $8.4m.
Reflecting on the results, Full House president and chief executive Daniel Lee praised the operator’s performance during the quarter, despite it being impacted by construction work at a number of locations.
This included the Chamonix project in Cripple Creek, Colorado, with the new casino due to open next year.
“We believe Chamonix will be the first high-quality casino hotel in Cripple Creek when it opens in the second quarter of 2023,” Lee said. We expect it to meaningfully grow the market’s gaming revenue and generate a strong return on investment for our company, similar to what has occurred in Black Hawk when higher-quality casinos have been added to that market.”
Elsewhere, after the end of the quarter, work began on a temporary casino location in Waukegan, Illinois, ahead of a new, permanent casino opening at the location.
“We received approvals last week to begin construction on The Temporary at American Place, and immediately began work on site fencing and erosion control so that excavation for the foundations can begin this week,” Lee said. “Fabrication of the sprung structure is complete and is expected to begin arriving on-site in early June.
“Additionally, we have begun hiring our senior management team for The Temporary, and continue to progress toward an expected opening later this year. It took longer than expected to begin construction, moving our projected opening date from the summer into the fall.”