Full House Resorts suggests that a strong first quarter performance is the consequence of structural changes that were being implemented prior to the pandemic-related shutdown of operations.
The company adds that its performance during the quarter ending March 31, 2021 is “significantly above not only the 2020 period, but also meaningfully above any first quarter in at least the past five years”
Revenue during the quarter increased 36.8 per cent year-on-year to $42.2m (2020: $30.9m), however the prior-year period reflected the temporary pandemic-related closure of all of the company’s properties from mid-March 2020.
Net loss for the quarter improved from $4.4m to £3.4m, with adjusted EBITDA finishing up at $10.8m as opposed to a loss of $1.2m during the first quarter of 2020.
This growth, says Full House, reflects operational and marketing improvements that bore results beginning in the second half of 2020, and continuing through the first quarter of 2021.
Results for Q1 also include $1m of revenue related to a full quarter of operations for three of the company’s six permitted sports wagering skins in Colorado and Indiana
During the second quarter of the year, two more skins commenced operations, with the last remaining entity expected to begin operation in the coming months. All six should generate a minimum of $7m per year of sports gaming revenues.
Daniel Lee, president and CEO of Full House Resorts, commented: “Our first quarter results continued to benefit from structural changes that we began to implement before the pandemic-related shutdown.
“Revenues in the first quarter of 2021 increased approximately 37 per cent from last year’s first quarter, when all of our properties were required to shut down in mid-March 2020 to help prevent the spread of the pandemic.
“Adjusted EBITDA increased by more than $12m to $10.8m, reflecting labour and marketing improvements, as well as approximately two weeks of lost income in the prior-year period.
“Our first quarter results are significantly above not only the 2020 period, but also meaningfully above any first quarter in at least the past five years.”
Before offering an update on the group’s recently named Chamonix Casino Hotel Cripple Creek development: “Regarding Chamonix, we commenced significant construction more than two months ago, beginning with demolition and site preparation work. We have designed Chamonix to bring the luxury of the French Alps to the Rockies, combining ‘European Elegance with Colorado Comfort.’
“When complete, Chamonix will feature approximately 300 four-star guest rooms and VIP suites – the first luxury guest rooms in the market – as well as a spacious, new, elegant and exciting casino gaming area.
“Its fine dining experience is being designed to attract culinary travelers from throughout Colorado, including nearby Colorado Springs, Pueblo and Cañon City, as well as the Denver Metropolitan Area. Chamonix will also feature extensive meeting and convention space that can host concerts and other entertainment, a rooftop pool, a luxurious spa, and a new self-parking garage that can accommodate more than 300 vehicles. We look forward to welcoming guests to Chamonix toward the end of next year.”
