On August 6, 2024, Full House Resorts Inc (FLL, Financial) released its 8-K filing announcing its second-quarter results for the period ending June 30, 2024. The company, which owns, operates, develops, manages, and invests in casinos and related hospitality and entertainment facilities, reported a significant increase in revenue but also a widening net loss.
Performance Overview
Full House Resorts Inc (FLL, Financial) reported a 23.8% increase in revenue, reaching $73.5 million in Q2 2024, up from $59.4 million in the same period last year. This growth was primarily driven by the continued ramp-up of operations at American Place, which opened in mid-February 2023, and the phased opening of Chamonix Casino Hotel, which began in late-December 2023.
Despite the revenue growth, the company reported a net loss of $8.6 million, or $(0.25) per diluted share, compared to a net loss of $5.6 million, or $(0.16) per diluted share, in the prior-year period. This includes $0.8 million of preopening and development costs, as well as depreciation and amortization charges related to the new American Place and Chamonix facilities.
Financial Achievements and Challenges
Adjusted EBITDA rose 34.6% to $14.1 million from $10.5 million in the prior-year period, reflecting strong growth from American Place and $0.9 million of accelerated revenue from an online sports wagering "skin" that ceased operations in Colorado. However, the net loss widened due to higher depreciation charges and preopening costs.
“Our newest destination casino, Chamonix Casino Hotel in Cripple Creek, Colorado, continues to build its customer base,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Since its opening, hotel occupancy has steadily increased, with occupied room-nights rising from approximately 2,100 in January 2024 to approximately 5,900 in June 2024.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $73.5 million | $59.4 million |
| Net Loss | $(8.6) million | $(5.6) million |
| Adjusted EBITDA | $14.1 million | $10.5 million |
Segment Performance
The Midwest & South segment, which includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and American Place, generated the majority of the revenue, contributing $55.5 million, up 11.1% from $49.9 million in Q2 2023. The West segment, which includes Grand Lodge, Stockman's Casino, Bronco Billy's Casino and Hotel, and Chamonix Casino Hotel, saw a significant increase in revenue to $15.2 million from $8.1 million in the prior-year period.
Liquidity and Capital Resources
As of June 30, 2024, Full House Resorts Inc (FLL, Financial) had $44.7 million in cash and cash equivalents, including $13.6 million reserved under bond indentures to complete the construction of Chamonix. The company's debt primarily consists of $450.0 million in outstanding senior secured notes due 2028 and $27.0 million outstanding under its revolving credit facility.
Conclusion
While Full House Resorts Inc (FLL, Financial) has shown impressive revenue growth driven by new openings, the widening net loss and increased preopening costs present challenges. The company's ability to manage these costs while continuing to grow its revenue will be crucial for its future performance.
Explore the complete 8-K earnings release (here) from Full House Resorts Inc for further details.
