FLL - Full House Resorts stock falls on earnings miss

2023-03-07 16:51:04 ET

Shares of Full House Resorts ( NASDAQ: FLL ) fell sharply in Tuesday’s extended session after posting a wider than expected loss and a steeper than anticipated decline in revenue.

For the fourth quarter, a loss of $0.20 per share nearly doubled the loss expected by the Street. The Nevada-based casino operator reported an over 16% drop in revenue from Q4 2021 to $36.08M, missing consensus estimates by $3.45M.

“Typical of many new casinos, we opened at less than full capacity. On opening night, for example, only approximately 80% of our slot floor and 60% of our permitted table games were available,” CEO Daniel R. Lee said. “Over the coming weeks, we expect to further augment the number of available games on our floor and increase the hours of operation for our table games, which currently operate from 2 p.m. to 2 a.m. As our team gains more experience, we also expect to operate the casino 24 hours per day, versus our current schedule of 8 a.m. to 4 a.m.”

He also updated progress on the construction of the Chamonix Casino Hotel in Cripple Creek.  Lee expects the location to open its doors in the third quarter of 2023. Management also announced a lease agreement to operate the Grand Lodge Casino in Lake Tahoe through December 31, 2024

Elsewhere, the company completed a $40M bond deal to ensure financing for The Permanent American Place Casino in Illinois. As of December 31, 2022, the Company had $191.2M in cash and cash equivalents, $134.6M of which is reserved under bond indentures to complete the construction of Chamonix later in 2023. The company debt “consisted primarily of $410M in outstanding senior secured notes due 2028, which become callable at specified premiums beginning in February 2024,” according to the earnings release.

Shares of Full House ( FLL ) fell 9.37% in after hours trading on Tuesday.

Read more on CBRE’s optimistic outlook for Full House .

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