Full House Resorts(FLL) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a disappointing quarter, particularly in Colorado, with total expenses rising significantly from $4.3 million in Q1 2023 to$ 13.7 million in Q3 2024, while revenues increased from $3.7 million in Q1 2023 to$ 13.0 million in Q3 2024, indicating that revenue growth was only keeping pace with expense growth [7][8][9]. - The EBITDA for Colorado was a loss of $0.7 million compared to a profit of$ 0.1 million in the previous year, reflecting operational challenges [26]. Business Line Data and Key Metrics Changes - The American Place casino showed strong performance with EBIT of $7.7 million, a 13.3% increase year-over-year, and a 17.6% increase in revenues, marking its best quarter to date [46]. - The Silver Slipper's EBITDA decreased from$ 3.6 million to $2.6 million due to adverse weather conditions affecting customer attendance [30]. Market Data and Key Metrics Changes - The company noted that occupancy rates in Colorado improved significantly, reaching over 80% in September 2024, up from 50% in the spring [11]. - The mailing list marketing strategy yielded mixed results, with one successful campaign achieving a 3% response rate, while a larger, less targeted list resulted in only 0.8% response [14][19]. Company Strategy and Development Direction - The company plans to enhance its marketing efforts by hiring a new VP of Advertising and increasing the number of casino hosts to improve customer acquisition and retention [23][24]. - There is a proposal to relocate the Rising Star casino to Fort Wayne, Indiana, which is expected to enhance revenue potential, although it requires legislative approval [38][39]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in 2025, as they expect revenues to grow faster than expenses, leading to improved margins [10][52]. - The company is focusing on building a mailing list and improving customer engagement through targeted marketing campaigns and events [20][90]. Other Important Information - The company sold the Fallon property in a two-stage transaction for a total of$ 9 million, which is seen as a positive move to streamline operations [53]. - The company is experiencing a rebound in October, with slot volumes up 13% and table game volumes up 46% compared to the previous year [58]. Q&A Session Summary Question: What is the outlook for Chamonix and margin progression? - Management indicated that 2025 is expected to show meaningful margin improvement, with steady revenue growth anticipated over the next few years [68][75]. Question: What is the growth outlook for the legacy portfolio outside of Illinois and Colorado? - Management expressed confidence in the Silver Slipper's potential to achieve higher earnings and mentioned that the Tahoe property could benefit from improvements made by its owner, Larry Ellison [99][100].