Full House Resorts(US:FLL)2024-05-09 01:09Financial Data and Key Metrics Changes - The company reported a significant increase in gaming revenues at American Place, with a 39% rise in April 2024 compared to April 2023, setting records for monthly property gaming revenues [94] - The current run rate for EBITDA is approximately $36 million per year, which is double the $18 million generated at American Place during 2023 [116] Business Line Data and Key Metrics Changes - American Place has seen a 40% increase in revenues over the past two months, with margins above 30% [5] - Chamonix, which opened gradually, reported an adjusted property EBITDA loss of about $400,000 for the first quarter, but is expected to break even in April [118] Market Data and Key Metrics Changes - The company noted that the Denver market is underserved, with gaming per capita in Colorado Springs being one of the lowest in the country, indicating potential for growth [20][22] - The competition in Cripple Creek includes Golden Nugget and Triple Crown, but the company believes it can capture a larger market share as awareness of its facilities increases [8][14] Company Strategy and Development Direction - The company is committed to building a permanent facility at a cost of approximately $325 million, utilizing investments made in the temporary facility [6] - The management team is focused on maturing existing assets and avoiding risky acquisitions, emphasizing a strategy of organic growth and careful capital allocation [19][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of winter weather on operations but expressed confidence in the stability of core customer spending and future growth as amenities are completed [97][102] - The company is optimistic about the potential for increased revenues as marketing strategies are refined and the customer database grows, now exceeding 71,000 individuals [64][68] Other Important Information - The company has successfully reduced property insurance costs by 19%, saving approximately $900,000 over the next year [4] - The opening of a high-end steakhouse, 980 Prime, has received positive reviews and is expected to enhance the overall customer experience [117] Q&A Session Summary Question: What are the expected trends in the legacy portfolio for the first quarter? - Management noted that the legacy properties have been building market share despite challenges, with Tahoe's performance being weather-dependent [48] Question: What is the cadence of payments for construction? - The company has approximately $20 million in restricted cash for construction completion, ensuring that the project remains funded [72] Question: What are the marketing plans for Germany as summer approaches? - The company is focusing on long-term group bookings and midweek occupancy strategies to enhance revenue during slower periods [66][106]