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Best of Howard Stutz

Gaming Guru

Howard Stutz

Full House Resorts reverses third quarter net loss

12 November 2015

Regional casino operator Full House Resort reversed a third quarter net loss while cash flow jumped 20.5% for the Las Vegas-based company.

Full House, which operates casinos in Northern Nevada, Mississippi, Indiana, said Wednesday net income for the quarter than ended Sept. 30 was $2 million, or 11 cents per share. A year ago, the company lost $766,000, or 4 cents per share. Net revenue increased 4.1% to $34.3 million.

In Nevada, Full House owns Stockman's Casino in Elko and manages the Grand Lodge Casino at the Hyatt Regency Lake Tahoe.

"Our Northern Nevada segment is also showing encouraging signs," Full House CEO Dan Lee said in a statement. Casino volumes at the Grand Lodge grew in the quarter, with slot machine wagering up 5.6% and able games volume growing 11%. He said Stockman's has been helped by a "careful focus on costs and new marketing initiatives."

Net revenue at the Silver Slipper Casino in Bay St. Louis, Miss., increased 23%, due in part to the full opening of the property's 129-room hotel.

"The property continues to benefit from marketing initiatives enacted earlier in the year," Lee said.

Macquarie Securities gaming analyst Chad Beynon said the changes implemented by Lee and his management team, who took over at the end of last year, are working.

"Less than a year into new management's tenure, we feel that value is slowly being unlocked," Beynon said. "Full House is working with a worthwhile recipe to improve profitability, evidenced by numerous operational improvements, strategic acquisitions, a new property proposal and a continued urgency regarding refinancing."

Full House announced in September it was spending $30 million to acquire a hotel-casino in Cripple Creek, Colo., which targets the Colorado Springs market. Lee said the company hopes to complete the deal by the end of the year.

Beynon said the Colorado casino will become Full House's second-largest cash flow contributor once the transaction is finalized.