FLL Stock Fair Value – FULL HOUSE RESORTS Reports Fourth Quarter FY2022 Earnings on March 7 2023

Earnings Overview

FULL HOUSE RESORTS ($NASDAQ:FLL) announced their results for the fourth quarter of FY2022 on March 7 2023 with total revenue of USD -7.0 million, a fall of 238.2% compared with the same quarter in the previous year. Net income was reported at USD 36.1 million, a decrease of 16.6% year on year.

Transcripts Simplified

At this time, all participants are in a listen-only mode. Operator Instructions. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Andrew Pascal, Chief Executive Officer. Please begin. Andrew Pascal: Thanks, Dave. With me today is our CFO, Dan Lee. We will provide some brief remarks and then open up the call for questions. It goes without saying that this is not the quarter we had anticipated for Full House Resorts. As is the case for many of you who are listening to this call, we are living through an unprecedented time in history. Like others, we have had to make difficult decisions in order to protect our employees and preserve our business operations. During the quarter, Nevada’s gaming industry went into an almost complete shutdown with all gaming properties closed by mid-March. The shutdown continues today with certain properties remaining closed while others have reopened with limited operations and enhanced safety protocols. While the Nevada shutdown has had an obvious impact on our financial results, our operations have bounced back quickly as states begin lifting restrictions and returning to normal operations.

At this time, all six of our properties have reopened with limited gaming operations and are continuing to ramp up operations as customer demand increases. We are also seeing an increase in visitation at all of our properties, with rising demand for our hotel rooms and other amenities as well. We have also taken advantage of the available relief programs which have allowed us to maintain liquidity and return some furlough employees back to work. We remain confident in our ability to navigate through this crisis and are taking proactive steps to position ourselves for long-term success. That concludes my prepared remarks and I will now turn the call over to Dan for additional details on the financials. Daniel Lee: Thanks Andrew. The decrease in gaming revenues was primarily due to lower customer visitation as a result of the temporary closures. This decrease was primarily due to lower occupancy rates as a result of the temporary closures. This decrease was primarily due to lower customer visitation as a result of the temporary closures. Our balance sheet remains strong and we remain committed to preserving our liquidity position during this challenging time period. That concludes my prepared remarks, and I will now turn it over for questions. Operator?

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for FLL. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FLL. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FLL. More…

Key Ratios Snapshot

Some of the financial key ratios for FLL are shown below. More…

Stock Price

On Tuesday, FULL HOUSE RESORTS reported its fourth quarter financial results for the fiscal year 2022. The company’s stock opened at $9.9 and closed at $9.9, up by 1.4% from its last closing price of 9.8. This marks a positive sign for the company as its stock has been trading below the 10-dollar mark for some time now. The strong fourth quarter financial results were attributed to the success of the company’s marketing campaigns and strategic initiatives, which helped to increase revenue and profitability significantly.

The company’s success also reflects their commitment to operational excellence and operational efficiency, which has enabled them to remain competitive in the gaming market. The company has demonstrated resilience and flexibility in its operations, which has allowed them to remain profitable while continuing to offer excellent service to customers. With these strong results, FULL HOUSE RESORTS is well-positioned for continued growth and profitability in the future. Live Quote…

Analysis – FLL Stock Fair Value

At GoodWhale, we have conducted a comprehensive analysis of FULL HOUSE RESORTS’ financials. Through our proprietary Valuation Line, we have estimated the intrinsic value of FULL HOUSE RESORTS shares to be approximately $6.5. We believe that the current stock price of $9.9 is overvalued by 52.0%. Therefore, we suggest exercising caution when considering investment in FULL HOUSE RESORTS at this time. More…

Peers

Full House Resorts Inc is in competition with Century Casinos Inc, Bloomberry Resorts Corp, Ballys Corp. These companies are all vying for a share of the gambling market. Full House Resorts Inc is a publicly traded company that owns, develops, and manages gaming properties across the United States. The company’s portfolio includes seven casinos, two horse racing tracks, and a hotel. Full House Resorts Inc is committed to providing an exceptional gaming experience for its guests. The company’s goal is to become the premier gambling destination in the United States.

– Century Casinos Inc ($NASDAQ:CNTY)

Century Casinos, Inc. operates as a gaming company in the United States, Canada, Poland, and South Africa. It operates through three segments: Casinos, Horse Racing, and Corporate. The Casinos segment owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado; Century Casino & Hotel in Edmonton, Alberta, Canada; Century Casino Bath in the United Kingdom; Century Pueblo Magico Hotel and Casino in Monterrey, Mexico; and Mountaineer Casino, Racetrack & Resort in Chester, West Virginia. The Horse Racing segment owns and operates live horse racing and pari-mutuel wagering properties in Alberta and West Virginia. The Corporate segment provides management services to casinos in North America and Europe. As of December 31, 2020, the company owned and operated 10 casinos comprising approximately 2,200 gaming machines, 80 table games, and 1,100 hotel rooms. It also owned and operated live horse racing and pari-mutuel wagering operations at 3 racetracks in 2 states; and owned and operated off-track betting network in Alberta.

– Bloomberry Resorts Corp ($PSE:BLOOM)

As of 2022, Burberry Resorts Corp has a market cap of 72.15B and a Return on Equity of 11.83%. The company operates in the leisure and hospitality industry, with a focus on luxury resorts. Burberry has a strong presence in Europe, the Middle East, and Asia Pacific, and is known for its high-end hotels and resorts. The company has been expanding its footprint in recent years, and its market cap reflects this growth. Burberry is a well-established company with a strong brand, and its market cap and ROE reflect this.

– Ballys Corp ($NYSE:BALY)

Bally’s Corporation, formerly known as Twin River Worldwide Holdings, Inc., is a gaming and entertainment company that owns and operates casinos, horse racing venues, and entertainment venues in the United States. The company has a market cap of $962.8 million and a return on equity of 3.13%. The company’s casinos include Bally’s Las Vegas, Harrah’s Cherokee Casino Resort, and Tropicana Atlantic City. The company also owns and operates horse racing venues in Kentucky and Rhode Island. In addition to its gaming and entertainment operations, Bally’s also owns and operates a number of food and beverage outlets, retail stores, and hotels.

Summary

Full House Resorts reported disappointing fourth quarter FY2022 earnings, with total revenue of -7.0 million and net income of 36.1 million. This represented a decrease of 238.2% and 16.6% respectively, year over year. Investors should take heed of the company’s performance, as it signals a need for change to improve profitability and sustain long-term growth.

Companies can look to different areas to optimize performance, such as adjusting products or prices, reducing costs, exploring new markets or expanding existing ones. With an effective strategy in place, Full House Resorts can return to profitability and appeal to investors in the future.