Full House Resorts Inc. has released its financial results for the third quarter ended September 30, 2022. The casino operator reported quarterly revenue of $41.4 million, marking a 12 percent decline compared to the same period last year when revenue was $47.2 million. The company also experienced a decrease in Adjusted EBITDA, which dropped from $13.6 million to $7.8 million in Q3 2022. This downturn was attributed to factors such as new sports wagering competition in Louisiana, government stimulus cheques distributed in the previous year, and increased expenses due to the rising cost of living.
Financial Performance and Impact:
In Q3 2022, Full House Resorts posted a net loss of $3.6 million, or a loss of $0.10 per diluted common share, which included $2.4 million of preopening and development costs. In contrast, during the same period in the prior year, the company reported a net income of $4.6 million, or $0.13 per diluted common share, with $335,000 in preopening and development costs.
The company’s leadership acknowledged the challenges but expressed confidence in their ongoing growth projects, which include the opening of two new casinos in Waukegan, Illinois, and Cripple Creek, Colorado.
Progress on Growth Projects:
Daniel R. Lee, Full House Resorts’ president, and chief executive officer provided updates on the two new casinos. In Waukegan, Illinois, the company is making significant strides, with slot machines set to be installed shortly after the completion of décor installation. The company expects the casino, known as “The Temporary,” to open within the next three months. This development will be the only casino in Lake County, Illinois, serving a population of approximately 700,000 and catering to one of the wealthiest counties in the United States.
In Cripple Creek, Colorado, the Chamonix project is reaching key milestones, with the structure achieving its “topping off” status in September. Construction progress remains steady, with glass installation on the façade and ongoing drywall work inside the building. Upon completion, Chamonix will become one of the largest casino hotels in Colorado, offering the most luxurious casino hotel experience in the Cripple Creek area, the primary casino destination for the Colorado Springs market.
Financial Outlook and Funding:
Lewis Fanger, the company’s chief financial officer, affirmed that both growth projects are well within budget expectations. Despite challenges in capital markets, Full House Resorts remains confident in its ability to complete The Temporary and Chamonix, thanks to robust cash balances, cash flows from operations, and an available $40 million credit facility. As of September 30, 2022, the company’s cash reserves stood at $241.8 million, including $156.1 million reserved explicitly for the completion of Chamonix.
Full House Resorts navigated a challenging Q3 2022 marked by a 12 percent decrease in revenue and reduced Adjusted EBITDA. Despite the setbacks, the company remains focused on its growth projects, with The Temporary casino in Waukegan, Illinois, nearing its opening date. Additionally, progress on the Chamonix project in Cripple Creek, Colorado, is promising, positioning the company to cater to the burgeoning casino market in the region.
As Full House Resorts moves forward, its robust financial position, bolstered by ample cash reserves and credit line availability, instills confidence in investors and stakeholders. The company’s strategic investments in these new casinos reflect its commitment to expand its footprint and capitalize on opportunities in the highly competitive casino industry.