Full House Resorts sees 12% annual drop in Q3 revenue
The company remains confident its two new casino openings will improve future results.
Full House Resorts has announced its results for Q3, which includes a construction update for its two major new casinos. It posted $41.4m in revenue, which is down 12% year-on-year from $47.2m.
Its adjusted EBITDA also saw an annual decline from $13.6m in Q3 of 2021 to $7.8m this quarter – a 42% fall. The company attributed this to new sports wagering competition in Louisiana, increased expenses due to a rise in the cost of living and stimulus cheques doled out by the US Government last year.
Full House Resorts CEO Danil R. Lee also pointed to its two new casinos – the Chamonix Casino Hotel, Colorado and American Place Casino, Illinois – and the difficulties entailed in their development.
Discussing the American Place, Lee commented: “The testing of the slot machines, surveillance systems and other technology is a complicated process. Imagine connecting 1,000 slot machines, from several different manufacturers, through many miles of low-voltage wiring to central servers – and ensuring that every machine operates flawlessly.”
Full House Resorts highlighted its current ambition and liquidity, with $241.8m in cash – including $156.1m of cash that is reserved for the completion of the Chamonix. It has not yet drawn from its $40m credit facility.
The company’s CFO Lewis Fanger commented: “Our anticipated investments in both of these growth projects remain within budget. We remain confident that our cash balances, cash flows from operations, and credit line availability will be sufficient to complete both The Temporary and Chamonix.”
Lee emphasized that land-based expansion created cause for optimism despite the negative revenue and EBITDA results. He said: “We continue to make progress on our two new casinos, with the first of them on the verge of opening. In Waukegan, Illinois, we are installing décor and are preparing for the installation of slot machines this week.
“At our Chamonix project in Cripple Creek, Colorado, construction reached its ‘topping off’ milestone back in September.”
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