LAS VEGAS-Full House Resorts, coming off a quarter in which it reported record revenue and earnings, is on the lookout to own and operate more casinos. Full House chairman and CEO Andre Hilliou said in Tuesday's quarterly earnings conference call with investors that the gaming company is "actively pursuing deals where we would either own the asset outright or receive a management fee to operate it, or a combination of the two."
As the company has stated in the past, Hilliou said, ownership and/or management deals represent the company's long-term growth strategy. "We are actively looking at properties in all gaming jurisdictions, including Northern Nevada, Mississippi the Midwest and other areas, and considering management agreements of various types," Hilliou said.
Regarding the company's quest for acquisitions, Hilliou said, "As time goes on, it will be easier for buyers and sellers to agree on price, and as a conservative company, our key word is today's earnings, not yesterday's." When Full House finds the right opportunity, he said, it will move quickly.
One reason that Full House will be able to move quickly is that the company has "significant cash on hand and no outstanding debt," Hilliou noted. "We are in prime position this year to take advantage of acquisition and management opportunities," he said.
Among the first-quarter highlights that Hilliou cited was the performance of its FireKeepers Casino in Battle Creek, MI, which "continues to impress since its opening last summer," according to Hilliou. Full House owns a 50% interest in Gaming Entertainment Michigan (GEM), which manages FireKeepers. Hilliou noted that GEM earned approximately $16 million in management fees in the first eight months of operations.
Hilliou also outlined the performance of Stockman’s Casino in Northern Nevada, which "had a challenging quarter due to poor weather and continued economic weakness in Northern Nevada," according to the Full House chairman. "However, our market share of slot revenue remained steady" despite the tough conditions, he said.
The company reported net income of $2 million and 11 cents per share for the quarter ended March 31, compared with $500,000 and three cents per share in the same quarter a year ago. The company achieved the results in spite of a 7% decline in casino, food and beverage, and other revenue in comparison with the same quarter last year. It said the decline was caused primarily by lower casino revenue at Stockman’s Casino due to general weakness in the economy and inclement weather in Northern Nevada.
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