Full House Details Expansion Opportunities in Indiana, Illinois
Full House Resorts Inc. may have a full plate in the months to come.
The small Las Vegas-based company led by longtime Nevada casino manager Dan Lee reported healthy third-quarter results on Monday for the period ending September 30.
Full House reported net income of $ 4.6 million, 13 cents per share, on revenue of $ 47.2 million for the quarter. That compares to net income of $ 7.7 million, 28 cents per share, on revenue of $ 42 million in the same quarter a year earlier.
Lee, President and CEO of Full House, told investors on Monday that the 40.3% drop in net income was the result of additional interest charges related to financing the construction of his new Chamonix property in Cripple Creek, Colorado.
Chamonix is ââone of three projects in the Full House development pipeline and Lee spent most of a call with investors talking about the potential of projects that could more than double the size of the company.
Lee also said revenue generated in the quarter, although 12.4% higher than a year ago, could have been higher without Hurricane Ida affecting the Silver Slipper’s operations in Bay St. Louis. , Mississippi, and the nearby wildfires affecting business at the Nevada Casino that he manages at the Grand Lodge Casino, a Hyatt property in Incline Village.
Lee said although the Silver Slipper was only closed for a few days as the storm blew through the area, many repeat customers lost power and stayed away once the casino reopened.
In Lake Tahoe, the Incline Village property was never threatened by fire, but the smoke “as thick as fog in San Francisco on a June day” kept guests away over the weekend. normally busy Labor Day end, Lee said.
New casino under construction
Lee also spoke about the new casino under construction at Cripple Creek near the Colorado Springs area.
He said the company is currently spending around $ 1 million per week building Chamonix, a 300-room property next to its existing Bronco Billy’s casino. The company said the property will have the first luxury guest rooms on the market.
Workers worked on relocating utilities and installing footings and foundation walls. Lee said the project will go vertical after steel arrives on site over the next three weeks. One tower is expected to be completed in April and another in August.
Lee said the company would ask city officials for waivers requiring the property to be completed by Dec.31, 2022, as he expects it will not meet that construction deadline and will open. most likely in early 2023.
The existing Bronco Billy’s, Lee said, is at a competitive disadvantage during the project because the free parking designated for the property is used for the construction of Chamonix. While Bronco Billy’s revenue was stable, the Cripple Creek market climbed about 16%, in part due to the removal of limits on casino games.
Future growth plans
Full House is one of two finalists for a project in Waukegan, Ill., A town halfway between Chicago and Milwaukee. The company is expected to have a response by January on a proposal submitted for review to the Illinois Gaming Board.
Due to its location, the Waukegan Project was cited as a potential competitor for a downtown Chicago casino.
Full House could get a response as early as November 17 on a third development plan in Terre Haute, Indiana. Lee said his company was among four potential developers who will be making presentations to the Indiana Gaming Commission on that date. The commission said it would deliberate and make a decision on the development later today.
The Full House proposal, called American Place, would feature a 100-room hotel with a rooftop pool and restaurant elevated above an interior green landscape. “The hotel appears to be floating above a fountain that surrounds its base,” notes a company statement about the design.
Lee said that if the company was selected for the Waukegan and Terre Haute projects, it would have the funding available to complete them as well as the Chamonix project.
Full House shares, traded on the Nasdaq stock exchange, did not budge from their opening price of $ 10.48 in average trading volume on Monday. After office hours, the value rose 27 cents, 2.6 percent, to $ 10.75 per share.