Full House Resorts posted a 21.9 percent increase in net revenues to $41.8 million year-over-year, but net income was just $0.1 million – resulting in a $0.00 earnings per share, the company announced Friday morning.
Adjusted EBITDA was down to $5.6 million from $6.3 million for the prior year quarter, a figure that includes the recent acquisition of Bronco Billy’s Casino and Hotel in Cripple Creek just west of Colorado Springs.
“We had a solid third quarter despite a few minor headwinds,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resort, detailing how several of the company’s properties had faced unusual circumstances during the quarter.
“In August 2016, severe flooding in Louisiana affected customers from several of the Silver Slipper’s feeder markets, though guest volumes recently began returning to more normal levels,” he explained. “At Rising Star, this year’s results were adversely affected by lower table games hold, which was 3.5 percentage points lower than in the third quarter of 2015.”
Full House also announced Friday the conclusion of a rights offering to raise equity capital in a cost-effective manner that allowed current shareholders to partake. The company raised $5 million through issuing roughly 3.8 million shares of common stock priced at $1.30.
“We have been prudently investing in new marketing initiatives and we recently concluded a $5 million rights offering to help fund $10 million of growth projects at our existing properties,” said Lee.
With the offering, Lee and his family now own 5.6 percent of the company’s outstanding stock, and he has stock options for more than one million additional shares.
With the new capital, Full House is investing in a redesign of the parking areas and main entrances at Stockman’s Casino, located to the east of Reno, and will begin a separate improvement project at Grand Lodge Casino on Lake Tahoe.
Full House’s largest properties largely broke even for the third quarter. The Silver Slipper Casino and Hotel in St. Louis posted $15 million in revenues and $2.3 million in EBITDA – both roughly even with the prior year quarter. The Rising Star Casino Resort in Indiana experienced a similar stagnation with $12.6 million in net revenue and a $1.7 million drop in EBITDA, largely driven by a lower table games hold percentage.
Revenues from the Northern Nevada segment also remained stagnant at $6.7 million, a slight year-over-year drop.
