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Sep 30, 2020
Full House Resorts Q3 2020 Earnings Report
Full House Resorts announced strong Q3 results with increased operating income and adjusted EBITDA.
Key Takeaways
Full House Resorts reported a net income of $7.7 million, or $0.28 per diluted share, and an adjusted EBITDA of $12.5 million, which is a 115.6% increase compared to the prior-year quarter. Revenues were $42.0 million, slightly down from $44.3 million in the prior-year period due to COVID-19 operating limitations.
Operating income more than tripled and Adjusted EBITDA more than doubled compared to the prior-year quarter.
Company executed a commitment letter to potentially fund its Waukegan casino proposal.
Colorado voters approved positive changes to the state’s gaming legislation.
Total cash and equivalents increased to $34.0 million at the end of the third quarter.
Full House Resorts
Full House Resorts
Forward Guidance
Company expects the Illinois Gaming Board to choose its preferred developer in 2021, seemingly most likely in the spring or summer.
Positive Outlook
- The Company believes its American Place proposal is the most creative and dynamic.
- The Company expects its proposal should generate the greatest amount of investment, tax revenues and jobs for Waukegan and its surrounding communities.
- The Company recently executed a commitment letter to fund American Place, including both a temporary casino and the permanent facility.
- The Company would invest $25 million in the project as equity, will own no less than 60% of the project, and will receive management fees for operating the casino and related amenities.
- All of the project financing is anticipated to be limited to the Waukegan project and would not be guaranteed by Full House or its other subsidiaries.
Challenges Ahead
- Our ability to repay our substantial indebtedness
- The adverse impact of the COVID-19 pandemic on our business, constructions projects, financial condition and operating results, including on our ability to continue as a going concern
- Changes in guest visitation or spending patterns due to COVID-19 or other health or other concerns, including a decrease in overall demand after the initial spike following the reopening our casinos
- The impact of social distancing requirements and other health and safety protocols implemented at our properties, including a reduction in our operating margins
- The potential of increased regulatory and other burdens to address the direct and indirect impacts of COVID-19 pandemic