• Revenue: Increased from $8.7 million in Q1 2024 to $13.0 million in Q3 2024.
• Expenses: Rose from $9.1 million in Q1 2024 to $13.7 million in Q3 2024.
• EBITDA (Colorado): Loss of $0.7 million in Q3 2024 compared to a profit of $0.1 million in Q3 2023.
• EBITDA (Grand Lodge Casino): $1.8 million in Q3 2024, down from $2.2 million in Q3 2023.
• EBITDA (Silver Slipper): $2.6 million in Q3 2024, down from $3.6 million in Q3 2023.
• EBITDA (American Place): $7.7 million in Q3 2024, a 13.3% increase over Q3 2023.
• Occupancy Rate: Increased to over 80% in September 2024 from 50% in the spring.
• Mailing List Growth: Adding about 5,000 people per month.
• Slot Volume (American Place): Up 13% in October 2024 compared to October 2023.
• Table Game Volume (American Place): Up 46% in October 2024 compared to October 2023.

• Warning! GuruFocus has detected 4 Warning Signs with FLL.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Full House Resorts Inc (NASDAQ:FLL) reported a significant increase in revenues at American Place, with a 17.6% rise, marking its best quarter to date.
• The company successfully hosted a grand opening weekend for VIP players at Chamonix, featuring Jay Leno, which was well-received and aimed at boosting customer engagement.
• Full House Resorts Inc (NASDAQ:FLL) is adding approximately 5,000 people per month to its mailing list, indicating a growing customer base.
• The company has hired a new VP of advertising with over 20 years of industry experience to enhance targeted marketing efforts.
• Full House Resorts Inc (NASDAQ:FLL) is exploring the potential relocation of its Rising Star Casino to Fort Wayne, Indiana, which could significantly increase its profitability.

Negative Points

• The third quarter was not favorable for Full House Resorts Inc (NASDAQ:FLL), with expenses growing at the same rate as revenues, resulting in a small loss.
• Marketing expenses, including a failed mailing list campaign, negatively impacted the quarter's financial performance.
• The Silver Slipper Casino experienced a decline in EBITDA due to an active hurricane season affecting customer attendance.
• The Grand Lodge Casino faced weaker occupancy due to postponed construction plans at the hotel, impacting its financial results.
• The company's Rising Star Casino continues to face challenges due to competition from newer casinos in the region, limiting its profitability.

Q & A Highlights

Q: Can you provide an overview of the expected margin progression for Chamonix in 2025? A: Daniel R. Lee, CEO, explained that while the casino has been growing revenues, expenses have also increased. However, he is optimistic about future growth, citing the potential for significant revenue increases as the market matures. He expects steady revenue growth over the next two to three years, which should exceed expense growth, resulting in higher margins.

Q: How is the marketing strategy evolving, particularly with mailing lists and conventions? A: Daniel R. Lee, CEO, acknowledged the mixed success of recent mailing list campaigns and emphasized the importance of learning from these experiences. The company plans to be more selective with future campaigns and is also focusing on building its sales and marketing team to drive convention business, which is crucial for midweek occupancy.

Q: What is the outlook for the legacy portfolio outside of Illinois and Colorado? A: Daniel R. Lee, CEO, mentioned that the Silver Slipper should be earning more, and he has high hopes for improvements under new management. The Grand Lodge Casino at Lake Tahoe is expected to remain stable, while Rising Star Casino faces challenges but has potential growth opportunities if relocated to Fort Wayne.

Q: How is the competitive landscape in Cripple Creek affecting your operations? A: Daniel R. Lee, CEO, noted that Full House Resorts is responsible for over 100% of the growth in Cripple Creek and the state, indicating that while competitors may not be significantly impacted, the market is expanding due to their new offerings.

Q: What are the plans for capital expenditures and free cash flow in the coming years? A: Lewis Fanger, CFO, stated that maintenance CapEx is expected to remain in the single-digit millions annually. The timing of significant expenditures for the permanent casino in Waukegan will depend on market conditions and financing availability, with flexibility in the timeline.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.