Full House posts revenue of $50.1M in Q2, boosted by opening of Waukegan’s The Temporary
Full House Resorts has reported revenue of $50.1 million, a 33.8% rise year-on-year, for the second quarter of the year. However, despite the strong revenue growth, the business also announced a widened net loss of $5.6 million, of which $1.1 million was attributed to preopening and development costs associated with the Chamonix construction project in Cripple Creek, Colorado; and significant depreciation and amortization charges related to The Temporary in Waukegan, Illinois.
During Q2, casino operations accounted for a majority of the revenue at $45.3 million, a rise of 55.8% year-on-year. Food and beverage revenue was $8.6 million, and hotel revenue was $2.3 million. Other operations, including contracted sports wagering, were $3 million, down by 45.9%.
Operating costs totaled $58.7 million for the quarter, a rise of 62.5% from the same period last year. The higher operating costs caused a sharp decline in operating income which fell from $8.2 million to $594,000. Interest expenses came to $5.6 million for the period, for a pre-tax profit of $5 million, a drop of $6.2 million year-on-year.
Adjusted EBITDA for Q2 was $10.5 million in the 2023 second quarter, versus $12.1 million in the prior-year period. The Midwest & South segment, which includes the aforementioned The Temporary property along with the Silver Slipper Casino and the Rising Star Casino Resort, saw its revenue rise to $49.9 million, a 51.5% increase from $32.9 million in the prior-year period.
The strong Q2 results, and the company's earnings call, partly reflected the opening of The Temporary, which took place on February 17 this year. During the period, the temporary venue generated $20.3 million in revenue and $4.1 million in Adjusted Property EBITDA. The company expects the property's results to increase in the coming quarters, as the casino's database continues to expand and marketing, labor and other early costs normalize.
Daniel R. Lee, President and Chief Executive Officer of Full House Resorts, said: “The number of visitors surged at the opening in mid-February and then, after a short lull, has grown steadily since April. Meanwhile, its win per admission, while still less than more-established casinos in Illinois, has grown steadily since opening, as regular players replace people who were more tourists than gamblers.”
“In July, our fifth full month of operations, the property's reported gaming revenues ranked sixth out of the 13 casinos in operation in Illinois,” he noted.
The Temporary's opening ceremony in February
The West segment, which includes the Grand Lodge Casino, Stockman's Casino, Bronco Billy's Casino and Hotel, and will include Chamonix Casino Hotel once it opens on December 26 this year, reported revenue of $8.1 million, versus $9.3 million in the prior year. Adjusted Segment EBITDA was $0.2 million versus $1.7 million.
Results in both periods reflect the temporary loss of all on-site parking and on-site hotel rooms at Bronco Billy's to accommodate the construction of neighboring Chamonix. Additionally, the current period reflects heavy winter snowfall in the Lake Tahoe region, which delayed the return of seasonal residents to Incline Village.
“At our Chamonix project in Cripple Creek, Colorado, meaningful construction continues, with exteriors now largely complete. Within the main hotel tower, our contractor is completing guest rooms and we anticipate beginning the installation of furniture shortly,” the CEO noted.
“The extensive millwork in the casino and high-end restaurant is also underway. We expect to begin taking hotel reservations for Chamonix shortly. It will be the first luxury casino hotel in the Colorado Springs area, and we believe it will be one of the best casino hotels in the entire Midwest,” he concluded.
As for the Contracted Sports Wagering segment, which consists of on-site and online sports wagering “skins” in Colorado and Indiana, revenues fell by 36.2% to $1.3 million in the second quarter of 2023. Illinois, via Temporary, will soon be added.
Rendering for the Chamonix Casino Hotel
For the six months ended June 30, revenue reached $109.4 million, up 27.5% from the first six months of 2022. Nevertheless, the Illinois launch contributed to higher operating costs of $115.8 million, which mean a rise of 60.3%. This resulted in operating profit dropping 147.2% year-on-year to $6.3 million.
Total other expenses came to $10 million. After considering the income tax benefit of $526,000, the total net loss for the six months was $17 million, a decline of $12.7 million from the prior year. Adjusted EBITDA, on the other hand, was flat year-on-year at $20.6 million.
See Full House Resorts' full Q2 report here.
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