Nevada-based casino operator Full House reported second-quarter revenue of 47.4 million compared to the same period last year as covid-era savings dried up while the business faced construction-related disruptions. $44.4 million, down 6.3%.
Earnings before interest, taxes, depreciation and amortization (EBITDA) also decreased 18.8% to $12.1 million from $14.9 million a year ago. Full House has framed this decline as a result of both planned construction costs and the end of covid-era stimulus.
Much of the construction costs were planned and part of Full House’s business plan, but the company’s plans for a temporary casino in Waukegan, Illinois, were hit by industrial action in certain sections of its supply chain. Delayed to 4th quarter.
Ongoing construction work at the Chamonix Creek Casino has also affected the adjacent Bronco Billy’s Casino, resulting in reduced admissions from this venue.
But Colorado, home to both Chamonix Creek and Bronco Billy’s Casino, accounts for a relatively small portion of the company’s total revenue. Income from the state declined from $6.4 million in the second quarter of 2021 to $4.1 million in the second quarter of 2022.
The Silver Slipper Casino and Hotel in Mississippi is the largest full-house property by revenue, with $21.1 million in Q2 2022 compared to $24.2 million in Q2 2021.
Casinos continue to command a dominant share of revenue, but their share of total revenue has declined from 74.6% to 72.7% in the three months to 30 June. Revenue from ‘other business’, which includes sports betting, increased from $2.8 million to $5.6 million.
The business added that part of the reason for the decline was the record high for the comparable period.
“Last year’s second quarter was the company’s strongest in recent years as customers received government subsidy payments due to the Covid-19 pandemic.”
Fullhouse also allocated a significant portion of the business’s cash reserves to the ongoing development of the Chamonix Casino and the construction of a temporary casino in Illinois. In total, construction and licensing are estimated to cost him $100 million.
Full House CFO Lewis Fanger outlined the details:
“As of June 30, 2022, we had $298.4 million in cash and equivalents, including $190.2 million in cash reserved for the completion of Chamonix. , has a $40 million line of credit that is currently unused except for a $1 million stand-by letter of credit, and we rely on existing cash, the availability of lines of credit, and cash from operations. We are confident that Flow will be sufficient to complete both the temporary casino and Chamonix.”
Mixed financial results contrasted with 2021 results. Full-year resultssales increased by 43.6% year-on-year.
During the earnings call, analysts asked whether it made economic sense for companies to sell some of their smaller assets to survive cash shortages.
Despite the pressure, President and CEO Dan Lee didn’t sound worried.
“To be honest, I don’t need the money,” he said.
