LV-based Full House Resorts sees revenue increase

By Steve Green (contact)

Wednesday, Nov. 11, 2009 | 10:31 a.m.

Las Vegas-based Full House Resorts Inc. reported higher revenue and its profit grew in the third quarter as the FireKeepers Casino in Battle Creek, Mich., opened Aug. 5.

The company earned $3 million or 17 cents per share vs. a profit in the year-ago quarter of $539,000 or 3 cents. Revenue of $7.9 million was up from $2.4 million.

Management fees from Gaming Entertainment (Michigan) LLC, a 50 percent-owned joint venture related to the Huron Band of Indians' FireKeepers Casino – were $5.8 million.

FireKeepers has a 107,000-square-foot gaming floor with 2,680 slot machines, 78 table games, a 120-seat poker room, a bingo hall and five restaurants.

"The first two months of operations at FireKeepers Casino exceeded our expectations in terms of revenue and operating margins, and we are very proud of the work accomplished by the management team," Andre Hilliou, chairman and chief executive officer of Full House, said in a statement Monday.

He said Full House continues to generate free cash flow and, with no required current debt repayments or maturities, is "in a strong position to take advantage of acquisition opportunities going forward."

The Michigan performance was offset by a decrease in casino and food and beverage revenue of $220,506, or 12 percent; and $55,951, or 11 percent; respectively.

That was primarily due to continued economic weakness in the Northern Nevada market, where Full House owns the Stockman’s Casino in Fallon. It has 265 gaming machines, four table games and a keno game.

Also, Full House said a dispute emerged regarding management fees for Harrington Raceway and Casino in Delaware. The company's partner in June initiated arbitration of the dispute.

"Management has engaged counsel and is contesting the claim. At this stage of the dispute, based in part on counsel’s advice, the company is unable to predict the outcome or estimate the minimum amount of potential loss, if any, and accordingly, has made no provision for this matter," Full House said in its financial report.

Full House has also been working with the Northern Cheyenne Nation of Montana for the development and management of a casino on tribal land.