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Best of Chris Sieroty

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Chris Sieroty
 

Full House Resorts quarterly earnings disappoint analysts

10 August 2012

LAS VEGAS -- Full House Resorts, Inc. on Thursday reported second-quarter earnings that fell short of analysts' expectations, as the company's results were affected by a weak economic recovery and increased competition.

The Las Vegas-based firm reported second-quarter earnings of $700,000, or 4 cents a share, compared with earnings of $1.4 million, or 8 cents a share in the same period last year.

Revenue was $27.4 million, which was up from $25.2 million in the second quarter of last year.

Analysts surveyed by Yahoo Finance expected earnings of 5 cents a share on revenue of $32.38 million.

"Given a stagnating economy and new competition in Ohio, we were satisfied with the results of our Rising Star Casino Resort and very pleased with the strong performance at our Northern Nevada properties," said Andre Hilliou, chairman and CEO of Full House Resorts.

Revenues from Stockman's and Grand Lodge casinos in Northern Nevada were $5.2 million in the second quarter, compared with $2 million last year. Hilliou said the increase was primarily because of the addition of the Grand Lodge casino in September.

Stockman's Casino is located in Fallon, while Grand Lodge is in Incline Village.

Rising Star Casino in Rising Sun, Ind., posted revenues of $22.3 million, down from $23.32 million in the second quarter of 2011. The company attributed the decline partially to lower table games hold in the second quarter.

Management fees from Buffalo Thunder casino in Santa Fe, N.M., were $400,000.

"During the quarter, we obtained financing ... for our impending acquisition of the Silver Slipper Casino and we remain on track to close the acquisition ... early in the fourth quarter of this year," Hilliou said.

Hilliou said the company was looking forward to adding the Silver Slipper Casino as it continues to make the transition to "an owner-operator of strong locals-oriented casinos."

Full House Resorts announced the $70 million acquisition in April, before securing $75 million in new financing a month later. The Silver Slipper, with a 37,000-square-foot casino, is in Hancock County, Mississippi.

Shares of Full House Resorts lost 7 cents, or 2.53 percent, to close Thursday at $2.70 a share on the New York Stock Exchange AMEX. Full House Resorts has a market cap of $50.05 million.