Full House Resorts Inc. (NASDAQ:FLL) Q3 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 04:30 pm ET
Good day everyone and welcome to the Full House Resorts Third Quarter Earnings Call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Mr. Lewis Fanger, CFO of Full House Resorts. You may now begin.
Thank you, and good afternoon, everyone. Welcome to our third quarter earnings call.
(Forward-Looking Cautionary Statement)
And so just really quick, if you go back a year ago and listen to our earnings call from the third quarter of 2017, or read the press release, we called out a $675,000 benefit related to the settlement of some outstanding parking garage litigation. That benefit was included in 2017 EBITDA and it created a challenge and comparison for us here in the third quarter of 2018. Despite that, we still grew adjusted EBITDA over last year up to $6.5 million for the company as a whole and so digging into each of the properties beginning with Mississippi, Silver Slipper had two unique aspects going on this year; one was that parking garage settlement that I just mentioned which was a $675,000 benefit. We also had a competitor that underwent a pretty significant $75 million expansion that opened up in June of this year. Despite both of those items, Silver Slippers results grew. Net revenue this year was $17.9 million; that's the best net revenue that we've ever had in the properties entire history. Gross gaming revenue was its best quarterly figure since its first year of operations back in 2007 and it missed the record by about only $200,000.
Guest counts were the highest for any quarter since the first year of operations and adjusted EBITDA was our best quarter for any third quarter against its opening year. So pretty proud and excited at the work that that team has done and nice growth there. Looking over at Rising Star, we did show some signs of strength as well. Despite our revenue decline, their EBITDA increased. Part of that is we have a great new general manager there, Ben Douglas (ph), he transferred over from our Stockman's casino. He's really gone in and reinvigorated every bit of the processes over there from our labor levels to how people are performing tasks, marketing and efficiencies; just going down the line.
Bronco Billy's, we had flat revenues for the quarter and we continued to be impacted on the labor side from the minimum wage increase. We also purposely left our labor counts a little bit high. Part of that was really in preparation for the Christmas casino that we just opened up; Dan will give you quite a bit more detail on that shortly but we worked on that almost completely in-house; everything from designing the Christmas casino, the decorations, the actual outfitting of every bit of that casino was done in-house and done by that Bronco team down there. So kudos to that group, it is a beautiful place and I'll let Dan give you a little more detail on that. And