Full House Resorts, Inc. (NASDAQ:FLL) Q3 2023 Earnings Conference Call November 8, 2023 6:00 PM ET

Company Participants

Lewis Fanger - Chief Financial Officer

Dan Lee - Chief Executive Officer

Conference Call Participants

Ryan Sigdahl - Craig-Hallam Capital Group

Chad Beynon - Macquarie

Jordan Bender - JMP Securities

Ricardo Chinchilla - Deutsche Bank

Operator

Greetings, and welcome to the Full House Resorts Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Lewis Fanger, Chief Financial Officer of Full House Resorts. Please go ahead.

Lewis Fanger

Thank you, and good afternoon, everyone. Welcome to our third quarter earnings call. As always before we begin, we remind you that today’s conference call may contain forward-looking statements that we're making under the Safe Harbor provision of federal securities laws.

I would also like to remind you that the Company's actual results could differ materially from the anticipated results in these forward-looking statements. Please see today's press release under the caption Forward-Looking Statements for the discussion of risks that may affect our results. Also, we may make reference to non-GAAP measures such as adjusted EBITDA. For a reconciliation of those measures, please see our website as well as the various press releases that we issue. We're also broadcasting this conference call at fullhouseresorts.com, where you can find today's earnings release as well as all of our SEC filings.

And then lastly we do have some slides that we uploaded as well for you. If you go to investors.fullhouseresorts.com in the middle of the page you’ll see a banner with links. Click on company inflow and in presentations and you’ll see a link to the third quarter slides that we’ll reference here.

So with all that said, we’ll get to your questions relatively quickly today, because I know MGM is on deck in about 30 minutes. But with all that said, we had a very strong third quarter. Revenues increased 73% to $71.5 million. That rise was helped out by The Temporary, which opened back in February of this year, and it continues to ramp up. Compared to the second quarter of this year, The Temporary showed pretty meaningful sequential improvement.

Revenues at The Temporary improved about 18% from $20 million in the second quarter of 2023 to almost $24 million in this third quarter. Adjusted property EBITDA rose 64% from $4.1 million to $6.8 million. Circa did open their on-site sportsbook at The Temporary in the third quarter, but really the meaningful addition that we're waiting for is the high-end restaurant, which is on-site and going through its final paces. The hiring process has already begun, and we expect to have that open at the end of this year.