$FLL Full House Resorts Investment thesis

Full House Resorts $FLL

Introduction

Full House Resorts is a US small-cap company in the Resorts & Casinos industry. It owns and operates seven casino facilities in regional U.S. markets, including Colorado, Mississippi, Illinois, Indiana, and Nevada.

$FLL went public in 1993 and was a microcap for many years (Its market cap was less than $50MM until 2015). In fact, the former board was trying to sell the company in 2014, which led to a shareholder coup to gain control of the board,resulting in the removal of the former CEO and the appointment of Mr. Lee as CEO, a position he has held until today.

Mr. Lee is a distinctive CEO who typically speaks plainly about his thoughts. His leadership has transformed the company from a nanocap that produced barely $10MM EBITDA to a company that is expected to close this year with more than $50MM and is expected to double this amount in the next two years.

The explanation for this is that 2023 has been a transformational year for the company with the opening of its two largest casinos/flagship projects. The Temporary, opened in February and operational while The American Place is built (more about this later), and Chamonix, opened on December 27, 2023. Its contribution to EBITDA23 is almost nil.

Full House Resorts, which has lost more than 50% of its market value in the last 12 months, has caught our attentionnot only due to imminent catalysts on the horizon but also because of the tremendous story of transformation and growth since the current CEO and his team took over.

Today’s analysis, conducted after reviewing all the 10Ks from the years under the current management and the 10Qs and Conference Calls from recent years, explains in detail its properties, management, capital structure, the size of the opportunity (with forecasts of revenues, EBITDA, debt model, interest payments, etc.) and analyses in detail the present risks that we have identified.

Full House Resorts revenues

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