LAS VEGAS - Full House Resorts, Inc. (NASDAQ:FLL) has agreed to sell Stockman's Casino in Fallon, Nevada, to Clarity Game LLC for a total consideration of approximately $9.2 million. The transaction is structured in two parts, with the real estate portion amounting to $7.0 million, expected to close by late September 2024. The remaining operating assets will be sold for $2.2 million, pending customary gaming approvals.
The company will continue to operate the casino, paying a monthly rent of $50,000 to Clarity until the finalization of the second transaction. At that point, daily operations will be handed over to Clarity.
Daniel R. Lee, President and CEO of Full House Resorts, expressed that the decision to sell comes as the company shifts focus to its larger properties, including the recently opened Chamonix and American Place casinos. Lee conveyed confidence in the new owners, Michael Gaughan III and David Ross, to foster continued improvement of Stockman's Casino.
This news comes with the usual cautionary note regarding forward-looking statements, as the sale is subject to regulatory approvals and other potential unforeseen obstacles.
Full House Resorts is known for owning, leasing, developing, and operating gaming facilities across the United States. The company's portfolio includes properties in Illinois, Mississippi, Colorado, Indiana, and Nevada.
The information provided in this article is based on a press release statement.
In other recent news, Full House Resorts reported significant growth at its Chamonix property for the second quarter of 2024, alongside a positive EBITDA. The company announced plans for the American Place project, with construction expected to begin in August 2025 and a substantial investment committed. In the pursuit of increasing gaming revenues, Full House Resorts plans to open an Italian restaurant at the old Bronco Billy's location and aims to attract more table games.
The company is contemplating issuing new bonds to finance the American Place project, which is estimated to cost around $325 million. Aiming to boost midweek room occupancy, Full House Resorts is focusing on attracting group and convention business, with plans to hire more sales personnel. The company has set a target of achieving $10.5 million of monthly gaming revenue with margins over 30%, emphasizing the importance of marketing and revenue growth.
Despite facing a lawsuit from the Potawatomi tribe, which could potentially affect the timeline of the American Place project, Full House Resorts remains optimistic about the long-term success of its Chamonix casino. Notably, gaming revenues at Chamonix more than doubled compared to a year ago. These recent developments underline Full House Resorts' strategic financial planning and commitment to growth.
InvestingPro Insights
As Full House Resorts, Inc. (NASDAQ:FLL) moves forward with the sale of Stockman's Casino, it's worth noting that the company has been operating with a significant debt burden, which is an essential factor for investors to consider. Moreover, analysts are expecting sales growth in the current year, which could signify a positive outlook for the company's larger properties such as the Chamonix and American Place casinos.
Looking at the financial data provided by InvestingPro, Full House Resorts has a market capitalization of $177.83 million, indicating its size in the gaming and casino industry. Despite not being profitable over the last twelve months, the company has seen an impressive revenue growth of 47.08% in the same period. This growth is a testament to the company's potential to increase its market share and improve financial performance in the future.
Investors should be aware of the company's P/E ratio, which currently stands at -6.25, reflecting the market's expectations of future earnings. Additionally, the company's price to book ratio of 2.99 suggests that the stock might be valued fairly in relation to its assets, although it's trading at a high EBIT valuation multiple.
For those interested in further details and analysis, InvestingPro offers additional tips on Full House Resorts. These tips delve deeper into the company's financial health and prospects, providing a more comprehensive understanding for investors. In total, there are 12 additional InvestingPro Tips available for Full House Resorts, which can be accessed through the link: InvestingPro Full House Resorts.
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