Core Viewpoint - The earnings season for casino stocks has been generally positive, with companies like MGM Resorts and Las Vegas Sands performing well, while Bally's Corp has struggled, missing revenue targets for the sixth consecutive quarter but surprising with a profit [1][3]. Company Performance - Bally's reported revenue of $580.4 million, down 5.1% year-over-year, with 78% of this revenue coming from its casino business, which also saw a decline of 4.2% year-over-year [5]. - Despite missing revenue targets, Bally's achieved a profit of 58 cents per share, contrasting with analysts' expectations of a loss of 76 cents per share [3]. - The stock price of Bally's has only decreased by 2% following the earnings report, indicating some resilience in the face of volatility [4]. Market Context - The consumer discretionary sector is under scrutiny as investors assess the state of consumer spending, particularly in entertainment and gambling for 2024 and beyond [2]. - Bally's is expanding its omnichannel business, holding online sports betting licenses in 13 jurisdictions and growing its international presence through its Interactive International division [6]. Growth Strategy - Bally's is optimistic about its growth through acquisition strategy, having completed transactions that could add nearly 50% to its topline in the current year [7]. - The company has not held an earnings call for the third consecutive quarter, which has left analysts to interpret results without additional commentary [13]. Analyst Sentiment - Analysts have maintained a cautious stance on Bally's, with Barclays lowering its price target from $14 to $13 while keeping an Equal Weight rating [14]. - Bally's is not currently favored among top-rated analysts, who suggest alternative stocks for investment [15].

Core Viewpoint - Full House Resorts, Inc. has appointed Joshua Le Duff as Senior Vice President and Chief Marketing Officer, pending customary gaming approvals [1] Group 1: Appointment Details - Joshua Le Duff has extensive marketing experience in the casino industry, previously serving as Vice President of Marketing at Pala Casino Spa Golf Resort, where he led revenue growth and improved marketing returns [2] - Le Duff has held leadership positions at Isle of Capri Casinos, supporting brand and database growth prior to its acquisition by Eldorado Resorts [2] Group 2: Compensation Structure - The Compensation Committee approved a grant of 29,940 restricted shares as an inducement equity award to Le Duff, with one-third vesting on each of May 12 for the years 2026, 2027, and 2028 [3] - The award was granted outside of the Company's 2015 Equity Incentive Plan and complies with Nasdaq Listing Rule 5635(c)(4) [3] Group 3: Company Overview - Full House Resorts owns, leases, develops, and operates gaming facilities across the United States, including properties in Illinois, Mississippi, Colorado, Indiana, and Nevada [5]

Financial Data and Key Metrics Changes - Revenues for Q1 were $130.4 million, with EBITDAR at $20.2 million, maintaining operating margins consistent with Q1 of the previous year despite challenges [4][5] - The impact of weather, leap year, and reduced sports betting revenue in Colorado was estimated to be around $2 million compared to Q1 last year [5] - Carded gaming revenue increased by 1%, while uncarded gaming revenue decreased by 2.5% across all U.S. properties [5] Business Line Data and Key Metrics Changes - In Missouri, the new Carratus property saw carded gaming revenue grow by 12% and uncarded revenue increase by 23%, leading to a total gaming revenue increase of 17% or $2.1 million compared to Q1 last year [6][7] - The Century Casino and Hotel in Cape Girardeau experienced a 5% increase in patrons and a 2% increase in trips, although gaming win was flat due to lower hold [12] - In Colorado, carded revenue grew by 7% in Central City, while uncarded revenue decreased by 36% [13][14] Market Data and Key Metrics Changes - Total visitor volume decreased by 3%, with a notable reduction in visits from the 50 age group, partially offset by a 1% increase from younger guests [6] - The number of patrons living more than 75 miles from the Carratus property increased by 34%, contributing to a 23% increase in total visitors [9] - In the East segment, high-end customers outperformed low to mid-tier customers, with gaming revenue from the upper segment increasing by 10% [16] Company Strategy and Development Direction - The company is focusing on expanding its market presence, particularly in Missouri, with plans for sports betting to go live towards the end of the year [13] - There is a commitment to operational discipline and efficiency improvements, with expectations for higher EBITDA and cash flow moving forward [24] - The company plans to balance a conservative CapEx program with returning capital to shareholders, including stock buybacks [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving consumer behavior and spending patterns since mid-March, with April showing an estimated 5% increase in EBITDA compared to last year [25][26] - Despite economic uncertainties, management is more confident in the long-term prospects of the company than in the previous year [26] - The company does not anticipate significant competitive supply impacting its operations this year or next [27] Other Important Information - The company's cash and cash equivalents at the end of the quarter were $85 million, with a total principal amount of debt outstanding at €340 million [23] - The company expects to spend $4 million on growth projects and $14 million on maintenance CapEx this year [24] - The company is in discussions regarding the potential sale of its Polish operations, with two interested parties emerging [22] Q&A Session Summary Question: Have you noticed any softening in consumer behavior for your Canadian assets? - Management indicated that lower revenue is not significant and attributed it to weather and one less gaming day, expressing no concerns [33] Question: Can you provide an update on initiatives at Rocky Gap? - Management mentioned completed renovations and marketing initiatives targeting the Baltimore and Washington DC areas to attract higher net worth guests [36] Question: What has changed regarding year-end leverage targets? - Management noted a positive trend since mid-March but remained cautious about projecting this trend for the full year [44] Question: Are you looking to monetize your casino database in Alberta? - Management mentioned potential partnerships with the Alberta Gaming Commission for database sharing but did not see other opportunities at this time [48] Question: What is the strategy for revenue growth in Missouri? - Management confirmed a proactive approach to push revenue up while maintaining cost discipline, particularly targeting the 75+ mile customer base [55] Question: What is the timeline for the sale of Polish assets? - Management believes the sale could happen in 2025 but acknowledged previous misestimations regarding the timeline [57] Question: What is the capacity for stock buybacks? - Management indicated plans to start stock buybacks with a single-digit million dollar volume between now and the next earnings release [59]

Financial Performance & Leverage - Q1 2025 net operating revenue was $13044 million[97], compared to $13602 million in Q1 2024[97] - Q1 2025 Adjusted EBITDAR was $2016 million[120], compared to $2125 million in Q1 2024[120] - The company anticipates net debt leverage to trend towards 47-60x by the end of 2025[100] - The company's lease adjusted net leverage is expected to trend towards 66-72x by the end of 2025[102] Regional Operations - US operations contributed 79% of the company's revenue in Q1 2025[99] - Canada accounted for 13% of the company's revenue in Q1 2025[97] - Poland represented 16% of the company's revenue in Q1 2025[97] - West Virginia's gaming market has grown 43% from 2019 to 2024[38] - Missouri's gaming revenue was approximately $19 billion in 2024, growing over 9% since 2019[68] Capital Expenditures & Projects - The Caruthersville project, financed by VICI, cost approximately $519 million, with rent increasing by approximately $42 million (8%) per year[77] - Total growth capital expenditures are estimated at $389 million (excluding VICI funding), with $17 million spent and $18 million remaining[105]

Core Viewpoint - Analysts forecast that Bally's (BALY) will report a quarterly loss of $0.90 per share, reflecting a year-over-year increase of 72.4%, with anticipated revenues of $612.57 million, a decline of 1% compared to the previous year [1] Financial Projections - The consensus estimate for 'Revenue- Casinos & Resorts' is projected to reach $354.10 million, indicating a year-over-year increase of 3.4% [4] - 'Revenue- International Interactive' is expected to be $209.75 million, showing a decline of 10.6% from the prior-year quarter [4] - 'Revenue- North America Interactive' is estimated at $53.90 million, suggesting a year-over-year increase of 30% [4] Adjusted EBITDAR Estimates - Analysts estimate 'Adjusted EBITDAR- International Interactive' to be $80.25 million, down from $83.53 million in the same quarter last year [5] - The estimate for 'Adjusted EBITDAR- Casinos & Resorts' is $87.80 million, compared to $89.42 million in the previous year [5] Market Performance - Over the past month, Bally's shares have declined by 17%, while the Zacks S&P 500 composite has increased by 13.7% [5] - Bally's holds a Zacks Rank 1 (Strong Buy), indicating a potential for outperformance in the upcoming period [5]

Financial Data and Key Metrics Changes - The first quarter results were in line with expectations, primarily impacted by the absence of last year's Super Bowl in Las Vegas, particularly affecting The Strat [5] - EBITDA from other casinos increased year over year, while EBITDA from taverns stabilized [5] - The company ended the quarter with over $400 million in debt, $50 million in cash, and $225 million in remaining availability under the revolving credit facility, with a low net leverage of 2.4 times EBITDA [9][10] Business Line Data and Key Metrics Changes - The Strat experienced a 5% decline in occupancy for the quarter, with a 13% drop in February, leading to a $3 million EBITDA headwind [6] - In Laughlin, EBITDA increased by reducing expenses and focusing on more profitable concerts, maintaining leading market share [7] - Revenue for Nevada locals casinos was flat year over year, but EBITDA increased by 2%, with consistent performance and EBITDA margins at 46% for the second consecutive quarter [8] Market Data and Key Metrics Changes - The company observed increasing strength in the locals business in April, indicating a strong start for Q2 [8] - The tavern segment saw slight declines in revenue and EBITDA year over year, but sequentially improved over Q4 [9] Company Strategy and Development Direction - The company is focused on a disciplined reinvestment strategy and has prioritized share repurchases over M&A opportunities due to current market conditions [10][19] - The management believes that the current macroeconomic environment allows for continued reinvestment in assets, paying dividends, and opportunistically acquiring stock [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the business remains resilient and is improving despite an uncertain macroeconomic environment [11] - The company is optimistic about the upcoming months, with April showing stable operating trends and May starting strong [5][11] Other Important Information - The company has repurchased 3.2 million shares totaling nearly $100 million since the start of 2024 and paid out $35 million in dividends [10] - A nationally recognized food and beverage concept is set to open at The Strat, which is expected to enhance the property’s offerings [45] Q&A Session Summary Question: Can you provide insights on The Strat's booking window and OTA mix? - Management indicated that the booking window is relatively short, with 25% to 30% of occupancy materializing within a seven-day period, and the OTA mix is currently around 65%, trending downward as they improve direct bookings [13][17] Question: How is the M&A environment affecting discussions? - Management stated that the current market dislocation has dampened strategic M&A discussions, with high price expectations for marketed assets [18][19] Question: Can you elaborate on the tavern business and competition from smaller operators? - Management noted increased promotional activity from smaller operators but emphasized that such trends are typically unsustainable and that their disciplined approach has led to improved performance [24][28] Question: How is the company addressing capital allocation and potential leverage for stock repurchases? - Management confirmed a commitment to aggressive stock buybacks, utilizing available liquidity, but expressed skepticism about the effectiveness of tender offers in the gaming space [66] Question: What are the key drivers for increasing hotel room rates at The Strat? - Management highlighted the importance of citywide events and improved direct booking strategies, with a focus on midweek occupancy to drive higher rates [70][72]

Financial Data and Key Metrics Changes - Adjusted property EBITDA at Silver Slipper grew by 21% year-over-year despite a slight decline in property revenue, with expectations of reaching mid-teens in adjusted EBITDA for the current year [5][6] - American Place achieved an all-time record gaming revenue month in March, crossing $10 million for the first time, with continued growth in the guest database [11][12] - The company extended the maturity date of its revolver from March 2026 to January 2027 and reduced the revolver balance to $25 million [13] Business Line Data and Key Metrics Changes - At Chamonix and Bronco Billy's, revenue grew by 34% in the first quarter, although expenses grew at a similar pace, resulting in a slight EBITDA loss [7][8] - Significant cost savings were identified across various departments, including over $1.5 million in food and beverage and $800,000 from reduced overtime costs [9][10] Market Data and Key Metrics Changes - The company has doubled its gaming market share without significantly impacting other operators, indicating a strong position in an undersaturated market [9] - The gaming revenue in the market has been affected by external factors such as weather conditions during peak periods like Mardi Gras [116] Company Strategy and Development Direction - The company is focusing on management upgrades and operational improvements across its properties, with new general managers appointed to key locations [15][84] - Plans are underway to build a permanent facility for American Place, with a target to break ground in the second half of the year [26][36] - The strategy includes relocating the Rising Star casino to capitalize on better market opportunities in Indiana [56][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in Q2 and expects continued revenue growth as properties mature [19][23] - The company is monitoring the bond market for refinancing opportunities to fund the construction of the permanent American Place [35][126] - Management acknowledged the challenges posed by competition in the sports wagering market, dominated by a few large players [67][70] Other Important Information - The company has made significant management changes to improve operations, including hiring a new Chief Marketing Officer to enhance marketing strategies [14][15] - The company is exploring various financing options for the construction of the permanent facility, including refinancing existing debt [126] Q&A Session Summary Question: Update on Colorado's performance and expenses - Management expects Q2 to be more profitable than Q1, with continued revenue growth and identified cost-saving opportunities [19][20] Question: Strategic outlook for the portfolio post Stockman's sale - The company views its three major properties as a stable foundation and is focused on optimizing operations and exploring relocation opportunities for Rising Star [52][56] Question: Expectations for sports wagering contracts - The market is dominated by a few large firms, making it challenging to replace lost contracts, but the company is actively seeking opportunities [67][70] Question: Timeline for reaching $20 million EBITDA - Management anticipates reaching $20 million in EBITDA within three to five years, with a focus on positive growth trajectories [74][76] Question: Margins at American Place - Margins are expected to remain around 30% for the temporary facility, with potential increases once the permanent facility opens [101][102] Question: Changes in customer visitation and spending - No significant changes in visitation frequency or spending patterns have been observed, although external factors like weather have impacted revenues [116][121] Question: Capital expectations and liquidity for the second half of the year - The company is in good liquidity shape and plans to refinance existing debt while monitoring cash flow for construction expenses [124][126]

Financial Data and Key Metrics Changes - Adjusted property EBITDA at Silver Slipper grew by 21% year-over-year despite a slight decline in property revenue, with expectations of reaching mid-teens in adjusted EBITDA for the current year [6][7] - American Place achieved an all-time record gaming revenue month in March, crossing $10 million for the first time, with continued growth in the guest database [12][13] - The company extended the maturity date of its revolver from March 2026 to January 2027 and reduced the revolver balance to $25 million [14] Business Line Data and Key Metrics Changes - At Chamonix and Bronco Billy's, revenue grew by 34% in the first quarter, although EBITDA remained slightly negative due to expenses growing at a similar pace [9] - Significant cost savings were identified across various departments, including over $1.5 million in food and beverage and $800,000 from reduced overtime costs [10][11] Market Data and Key Metrics Changes - The company has doubled its gaming market share without significantly impacting other operators, indicating an undersaturated market [10] - The gaming revenue in the market is expected to grow as the company continues to attract customers who historically have not visited [10] Company Strategy and Development Direction - The company is focusing on management upgrades and operational improvements across its properties, with new general managers appointed to key locations [5][16] - Plans are underway to open a permanent facility for American Place, with a target to break ground in the second half of the year [26][28] - The company is exploring relocation opportunities for Rising Star to capitalize on more favorable market conditions in larger cities [55][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in Q2 and expects continued revenue growth as properties mature [19][23] - The company is monitoring the bond market for refinancing opportunities to fund the construction of the permanent American Place [35][123] - Management acknowledged the challenges posed by tariffs but indicated potential benefits from a recession in terms of construction costs [43][44] Other Important Information - The company has completed the sale of Stockman's and is now focusing on its three primary properties [13][51] - A new Chief Marketing Officer has been hired to enhance marketing strategies, particularly in Colorado [12][15] Q&A Session Summary Question: Update on Colorado's performance and expenses - Management expects Q2 to be more profitable than Q1, with continued revenue growth and identified cost-saving opportunities [19][20] Question: Strategic outlook for the portfolio post-sale of Stockman's - The company views its three main properties as a strong foundation and is cautious about new acquisitions, focusing on existing opportunities [51][64] Question: Trajectory of sports wagering contracts - The market is dominated by a few large players, making it challenging to replace lost contracts, but the company is exploring options [66][68] Question: Timeline for reaching $20 million EBITDA - Management aims for a five-year timeline to exceed $20 million in EBITDA, with expectations of significant revenue growth from the permanent facility [72][74] Question: Confidence in new management teams - Management believes that fresh perspectives from new hires will lead to improved performance, citing past successes of new leadership [83][89] Question: Changes in customer visitation and spending - No significant changes in visitation frequency or spending have been noted, with some fluctuations attributed to weather and market conditions [110][114] Question: Capital expectations and liquidity for the second half of the year - The company is in good liquidity shape and plans to refinance existing debt while funding the construction of the permanent facility [121][123]

Full House Resorts (FLL) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Afternoon, ladies and gentlemen, and welcome to the Full House Resorts First Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Thursday, 05/08/2025. I would now like to turn the conference over to Adam Campbell. Please go ahead. Speaker1 Thank you. Good afternoon. Welcome to our firs ...

Core Insights - Full House Resorts, Inc. reported a 7.3% increase in consolidated revenues for Q1 2025, reaching $75.1 million compared to $69.9 million in the same period last year [2] - The company experienced a net loss of $9.8 million in Q1 2025, an improvement from a net loss of $11.3 million in the prior-year period [2][24] - Adjusted EBITDA for Q1 2025 was $11.5 million, down from $12.4 million in the previous year [2][22] Revenue Performance - American Place Casino achieved a record monthly gaming revenue of $10.9 million in March 2025 [1] - Revenues from Colorado operations increased significantly by 33.9% year-over-year [6] - The Midwest & South segment generated revenues of $57.2 million, a 4.6% increase from $54.6 million in the prior-year period [7][22] - The West segment saw revenues rise by 19.8% to $15.6 million, reflecting the full opening of Chamonix Casino Hotel [8][22] Operational Highlights - American Place Casino's player database surpassed 100,000 members, indicating strong customer engagement [3] - Silver Slipper Casino benefited from new leadership, resulting in improved operating income despite a revenue decline [5] - Chamonix Casino Hotel is focusing on cost efficiencies and has identified several million dollars in potential annual savings [6] Financial Position - As of March 31, 2025, the company had $30.7 million in cash and cash equivalents, with total debt primarily consisting of $450 million in senior secured notes due 2028 [10] - The maturity date of the revolving credit facility was extended to January 1, 2027, allowing for better financial flexibility [11] Future Outlook - The company anticipates significant performance improvements upon transitioning from the temporary American Place facility to the planned permanent casino [4] - Management is evaluating financing options for the permanent American Place facility, which may include refinancing existing debt [11]