Full House Resorts Posts FY 2023 Results, Enters Inflection Point

American casino & hospitality company Full House Resorts unveiled a “new phase” for its business as it published its unaudited Q4 and FY 2023 results.

Overall, Full House reported Q4 revenues of $60 million, representing a 66.4% year-on-year increase, primarily driven by its American Place property. Adjusted EBITDA for the period skyrocketed, reaching $7.3 million, or an increase of 87.4%.

Net loss for the period stood at $12.5 million, including $3.1 million of preopening and development costs. For reference, Full House’s net loss for Q4 2022 stood at $7 million.

In terms of full-year results, Full House Resorts posted revenues of $241.1 million. This marked a 47.6% increase from $163.3 million in FY 2022, driven by the opening of American Place. Adjusted EBITDA for the period was $48.6 million, 51.1% up from FY 2022.

Full-year net loss reached $24.9 million, which includes $15.7 million of preopening and development costs.

As of December 31, the company had $73.8 million in cash and cash equivalents. Its debts included $450 million in outstanding senior secured notes and $27 million outstanding under its revolving credit facility.

Full House Opened New Casinos

In 2023, the company opened two new casinos and ramped up its business. The new properties included American Place in Illinois and Chamonix in Colorado.

The former just celebrated its one-year anniversary. In December, American Place also hit a new gaming revenue record of $8.2 million – a figure it later exceeded in February 2024. American Place is currently using a temporary facility after securing approval to operate this facility until 2027. This approval provides Full House with ample time to complete the permanent venue.

On December 27, Full House opened its Chamonix Casino, just in time for the New Year celebrations. At first, only 40% of the guest rooms were functional but the company eventually completed the rollout of the property’s amenities. Full House added that Chamonix’s high-end steakhouse is expected to open by the end of this month.

According to Full House Resorts’ president and chief executive, Daniel Lee, the company has now reached an inflection point. As a result, his team expects significant free cash flow from its investments within the next few years.

Lee added that his team should complete the permanent American Place facility within two years and pointed out that Full House will be able to fund a significant portion of the construction costs thanks to its operating cash flows.

Lee concluded: “For the remaining balance, we remain highly confident in our ability to fund it entirely in the debt capital markets at the appropriate time.”