Full House Resorts(US:FLL)2023-08-09 04:16Financial Data and Key Metrics Changes - The company reported a 34% increase in revenues, primarily driven by the performance of the temporary casino in Illinois [78] - Adjusted EBITDA declined, but the temporary casino generated $4.1 million despite accounting charges, indicating a respectable performance for its first full quarter of operations [67][68] - The gaming revenue in July reached approximately $7.8 million, up about $1 million from the previous month, showing positive trends [104] Business Line Data and Key Metrics Changes - The temporary casino is ramping up operations and has become the third in the state for table games, indicating strong market penetration [51][80] - The company is focusing on increasing the number of table games and has expanded from 28 to 48 tables, although staffing limitations currently allow for only 30 to be operational on weekends [72][71] - The Silver Slipper property faced cost issues, with payroll rising significantly without a corresponding increase in revenue, which the company is working to control [68] Market Data and Key Metrics Changes - The company is experiencing competitive pressures in Indiana due to a new casino opening, impacting revenue performance [106] - In Illinois, the company is preparing for the opening of the Chamonix casino, which is expected to enhance market presence and revenue generation [57][60] Company Strategy and Development Direction - The company is actively designing the permanent American Place casino, incorporating lessons learned from the temporary operations, although construction has not yet started due to legal challenges [61] - The Chamonix casino is set to open on December 26, 2023, with significant investments in high-end amenities and marketing strategies to attract customers [58][82] - The company plans to enhance its marketing efforts to build a customer database, which is crucial for long-term revenue growth [105][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upward trends in admissions and gaming revenue, indicating a positive outlook for the temporary casino's performance [79][104] - The company is facing challenges with rising construction costs and competitive pressures but remains focused on long-term growth and profitability [106][108] - Management highlighted the importance of building a strong customer database to improve marketing efficiency and drive future revenue [81][105] Other Important Information - The company is not considering equity issuance for financing, indicating a preference for other funding sources [8] - The sports book operation is expected to start generating revenue in mid-August, contributing to overall financial performance [65] Q&A Session Summary Question: What are the expected margins for the Colorado property as it ramps up? - Management indicated that current EBITDA margins are in the high teens, with expectations that they will exceed 20% as operations stabilize and marketing efforts drive more traffic [100][104] Question: How is the Silver Slipper property performing amid competition? - Management noted that while competitive pressures exist, the primary issue has been rising internal costs, which they are working to control [106] Question: What is the timeline for financing the permanent casino? - Management stated that refinancing existing bonds will become cheaper starting in February, allowing for more favorable financing conditions [49][108]