Full House reports profit growth for second quarter

By Steve Green

Tuesday, Aug. 11, 2009 | 12:14 p.m.

Full House Resorts Inc. of Las Vegas, which last week opened a big Indian casino in Michigan, on Monday reported its profit for the second quarter improved even as revenue declined.

Full House said it earned $167,000 or 1 cent per share vs. $33,000 or flat per-share earnings in the year-ago quarter. Revenue fell slightly from $2.387 million to $2.364 million.

The new FireKeepers Casino in Battle Creek, Mich., has 2,680 slot machines, 78 table games, a poker room and five restaurants.

Full House also owns the 260-slot Stockman’s Casino in Fallon in Northern Nevada and has a stake in the Harrington Raceway and Casino at the Delaware State Fairgrounds in Harrington, Del.

Full House said casino revenue for the quarter increased 5 percent compared to the prior-year period, primarily because of a higher slot hold percentage at Stockman’s. Food and beverage revenue for the quarter was down 17 percent due to the weak economy and increased competition.

Because of lower costs at Stockman’s, earnings before interest, taxes, depreciation and amortization there increased from $600,000 to $900,000, Full House said.

The company said it was encouraged by the second-quarter events and activity at the FireKeepers property.

"We are extremely excited over the successful opening of FireKeepers Casino last week and while we were pleased that we were able to maintain profitability in the second quarter in the face of a continued difficult economy, we continue to be vigilant in controlling costs and deploying marketing dollars carefully," Andre Hilliou, chairman and chief executive, said in a statement. "The construction of FireKeepers came in ahead of schedule and under budget despite increasing the number of slot machines and parking spaces from the original plan. Traffic at the casino is currently at capacity levels and we are pleased to announce that we opened the doors with over 60,000 customers already in our (rewards club). We look forward to a mutually beneficial partnership with the Huron Band as FireKeepers takes its place among the top destinations in Michigan. Furthermore, we continue to generate free cash flow, while the company continues to have no significant current debt repayments or maturities, putting us in a strong position to take advantage of acquisition opportunities going forward."