Full House Resorts announced Monday results for the first quarter of 2022. Revenues in the first quarter of 2022 were $41.4 million, a 1.9% decrease from $42.2 million in the prior-year period. Meanwhile, net income for the first quarter of 2022 was $0.1 million, a return to profitability despite the small drop in revenue, while in the prior-year period, the company posted a net loss of $3.4 million.
“Our first-quarter results were solid, given adverse hold percentages at two of our properties and meaningful – but planned –construction disruptions at Bronco Billy’s to hasten the completion of Chamonix,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts.
Adjusted EBITDA in the 2022 first quarter was $8.4 million versus $10.8 million in the prior-year period, largely due to the aforementioned construction disruptions at Bronco Billy’s; adverse hold at Rising Star and Grand Lodge; the launch of online sports wagering in Louisiana, which adversely affected Silver Slipper’s sports wagering revenues; and increases in certain costs.
“Silver Slipper had a solid quarter, though the launch of online sports wagering in nearby Louisiana has resulted in declines in its on-site sports wagering operations. On-site sports wagering operations contributed less than 5% of the property’s Adjusted Segment EBITDA in 2021. Otherwise, our properties continue to perform as expected in recent weeks,” added Lee.
“More importantly, we made significant progress on our expansion plans,” the executive continued. “In Waukegan, Illinois, 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.”
Fabrication of the Sprung structure for the temporary venue is complete and is expected to begin arriving on-site in early June. Additionally, the company has begun hiring a senior management team for The Temporary and continues 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,” Lee added.
“At our Chamonix project in Cripple Creek, Colorado, we have ‘topped out’ the elevator towers and are working on the guest room and meeting areas,” the company’s CEO commented. “We believe Chamonix will be the first high-quality casino hotel in Cripple Creek when it opens in the second quarter of 2023.”
The business expects it to meaningfully grow the market’s gaming revenue and generate a strong return on investment, similar to what has occurred in Black Hawk when higher-quality casinos were added to that market.
Chamonix Casino Hotel render.
In Mississippi, Silver Slipper Casino and Hotel’s revenues were $21.3 million in the first quarter of 2022, a 4.7% decline from $22.4 million in the prior-year period. Adjusted Segment EBITDA was $6.0 million, reflecting the competitive launch of online sports wagering within nearby Louisiana, as well as cost increases for food and other supplies.
In the prior-year period, the property had record first-quarter results, as it – and all of the company’s properties – benefited from customer-related government stimulus checks due to the COVID-19 pandemic. Adjusted Segment EBITDA was $7.6 million in the prior-year period.
In Indiana, Rising Star Casino Resort’s revenues were $8.6 million in each of the first quarters of 2022 and 2021. Adjusted Segment EBITDA was $1.1 million, again for both periods. Results in the recent quarter were adversely affected by a low table games hold percentage of 10.1%, versus the trailing three-year average of 17.2%.
Conversely, table games hold percentage of 26.0% in the first quarter of 2021 was meaningfully higher than the trailing three-year average, which benefited results in the prior year’s quarter. Table games revenue is less significant to operating results at the property than slot win, which remained stable. The increase in slot revenues from higher volumes in the first quarter of 2022 offset the decrease in the table games hold percentage.
In Colorado, the gaming market, including Cripple Creek, has shown significant growth since betting limits were eliminated in May 2021. However, due to disruptions caused by the construction of the Chamonix Casino Hotel, revenues and Adjusted Segment EBITDA declined in the quarter versus the prior-year period.
Revenues were $4.2 million in the first quarter of 2022, versus $5.9 million in the prior-year period, and Adjusted Segment EBITDA was $(0.3) million, versus $1.7 million. Furthermore, the company recently began the staged refurbishment of Bronco Billy’s, which is expected to impact its contribution to earnings until the expanded amenities open in 2023.
Bronco Billy’s Casino
In Nevada, revenues were $4.4 million in each of the first quarters of 2022 and 2021, despite adverse table games hold percentage in the 2022 period. Adjusted Segment EBITDA was $0.8 million in the first quarter of 2022, reflecting an increase in labor costs, versus $1.2 million in the prior-year period. Income would have been approximately flat if the table games hold percentage had been comparable with the prior-year period.
Revenues and Adjusted Segment EBITDA were both $2.8 million in the first quarter of 2022 for on-site and online sports wagering “skins” in Colorado, Indiana, and, upon launch, Illinois.
The company has also recently entered into an agreement whereby Full House and Circa Sports will jointly develop and manage on-site sportsbooks at both The Temporary and American Place. In addition to the on-site sportsbook, Circa Sports will utilize Full House’s expected mobile sports skin in Illinois to conduct Internet sports wagering throughout the state, subject to customary regulatory approvals.
Rendering for Waukegan's American Place casino.
In December 2021, Full House was chosen by the Illinois Gaming Board to develop American Place, a $400 million new gaming and entertainment destination located in Waukegan, Illinois. While the permanent facility is under construction, the company will operate a temporary casino facility, The Temporary by American Place, scheduled to open in fall 2022, pending customary gaming approvals.