Full House Resorts (FLL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose to $75.7 million, up 5.8% year-over-year, driven by American Place and the phased opening of Chamonix, though higher expenses led to a net loss of $8.5 million.

• Chamonix Casino Hotel completed construction and officially opened, with strong hotel occupancy and guest sign-ups following a grand opening event.

• American Place delivered robust revenue and EBITDA growth, with revenues up 17.7% year-over-year and continued margin improvement.

• Sale of Stockman's Casino was initiated for $9.2 million, generating a $2 million gain in Q3 2024.

• Leadership changes included new general managers at Rising Star and Silver Slipper, and a new VP of advertising was hired.

Financial highlights

• Q3 2024 revenues were $75.7 million, with casino revenues at $56.1 million, food and beverage at $11.1 million, and hotel at $4.7 million.

• Adjusted EBITDA for Q3 2024 was $11.7 million, down from $20.6 million in Q3 2023, reflecting higher costs and lower sports wagering activity.

• Net loss for Q3 2024 was $8.5 million, or $(0.24) per share, compared to net income of $4.6 million in Q3 2023.

• Interest expense nearly doubled to $11.0 million in Q3 2024 due to higher debt and reduced capitalized interest.

• Cash and equivalents at September 30, 2024, were $33.6 million, with $7.7 million restricted for Chamonix.

Outlook and guidance

• Management expects improved profitability in 2025 as Chamonix and American Place mature, with new marketing campaigns underway to boost guest sign-ups and occupancy.

• Steady revenue growth is projected for Chamonix, targeting $50 million EBITDA at maturity, and American Place EBITDA is expected to rise, with a stretch goal in the mid to upper $30 million range.

• Additional financing will likely be needed for the permanent American Place facility, with current debt maturing in February 2028.

• Sufficient liquidity is available for the next 12 months, with $27 million under a revolving credit facility.

• Maintenance CapEx is expected to remain in the low single-digit millions annually, with major project CapEx dependent on lawsuit resolution and financing.