Nasdaq:FLL
Full House Resorts Announces Fourth Quarter and Full-Year Results
– Revenues Increased 13.1% Over Prior-Year’s Fourth Quarter and 43.5% from 2020
– Full-Year Operating Income Increased to $37.6 Million in 2021 from $10.5 Million in 2020;
Net Income Rose to $11.7 Million from $0.1 Million;
Adjusted EBITDA in 2021 Increased to $47.2 Million from $19.7 Million
– Company Selected to Develop Its American Place Entertainment Destination in Waukegan, Illinois;
Plans to Open Temporary Casino in Waukegan in Summer 2022
– Construction of Chamonix Casino Hotel Continues, with an Expected Opening in the Second Quarter of 2023
LAS VEGAS, March 08, 2022 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2021.
On a consolidated basis, revenues in the fourth quarter of 2021 were $43.3 million, a 13.1% increase from $38.3 million in the prior-year period. Both periods reflect a full quarter of reopened operations, as all of the Company’s properties reopened by June 2020 after closing in March 2020 due to the pandemic. Net income for the fourth quarter of 2021 was $5.0 million, or $0.14 per diluted common share, despite $1.7 million of expenses for corporate initiatives that did not occur in 2020 and are not expected to recur in 2022. The fourth quarter also reflects timing differences for the sale of “free play” in Indiana, which occurred in the third quarter for the recent year and the fourth quarter in 2020, as well as a gain on the extinguishment of the Company’s CARES Act loans and additional interest expense related to the funding of the Company’s Chamonix development project in Cripple Creek, Colorado. In the prior-year period, net income was $3.5 million, or $0.12 per diluted common share. Adjusted EBITDA(a) in the 2021 fourth quarter was $7.9 million, reflecting strength in the Company’s Mississippi segment, the additional $1.7 million of corporate expenses noted above, and the continued ramp-up of the Company’s contracted sports wagering segment. As of December 1, 2021, all of the Company’s sports wagering “skins” were contractually live. Adjusted EBITDA in the 2020 fourth quarter was $9.8 million, which includes $2.1 million for the sale of “free play” in Indiana. As noted above, a similar “free play” sale for $2.1 million occurred during 2021, but in the third quarter.
For the full year, revenues in 2021 were $180.2 million, a 43.5% increase from $125.6 million in the prior-year period. Net income in 2021 rose to $11.7 million, or $0.33 per diluted common share, from $0.1 million, or $0.01 per diluted common share, in 2020. Adjusted EBITDA in 2021 increased to $47.2 million, a 140.2% increase from $19.7 million in 2020.
“We are proud of our continued growth in 2021,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Due to several years of investments in our properties and in new technology, as well as the hard work of our team in managing expenses, Adjusted EBITDA increased to $47.2 million from $19.7 million in 2020. All of our segments achieved their highest profits in any of the past five years and some properties, like the Silver Slipper, reached new all-time records for financial performance. It was an extremely strong year throughout the Company.
“We expect 2022 to be a similarly transformative year for Full House Resorts,” continued Mr. Lee. “While our permanent American Place facility in Waukegan, Illinois, will require approximately three years to construct, we expect to introduce American Place to the area’s residents much sooner – this upcoming summer – via The Temporary. We have spent several months designing a temporary casino facility and expect to begin erecting the casino structure in the next month, when major components of the structure begin to arrive on-site.
“Our other major construction project, Chamonix in Cripple Creek, Colorado, should continue the transformation of our Company when it opens in the second quarter of 2023. Our confidence in Chamonix has reached new highs, driven by the success of a recent casino opening in Black Hawk, Colorado, and the significant growth in Colorado’s gaming revenues since the elimination of betting maximums in April 2021. Chamonix will be the first high-quality casino hotel in Cripple Creek, and we expect it to meaningfully grow the market’s gaming revenue and generate a strong return on investment for our Company, similar to what has occurred in Black Hawk.”
Fourth Quarter Highlights and Subsequent Events
- Mississippi. The Silver Slipper Casino and Hotel’s operational performance continues to reflect a focus on marketing and labor improvements, as well as the benefit of numerous investments in the property in recent years. Such investments include a substantial renovation of the casino and the buffet, a renovated porte cochere, repainted exterior, new energy-efficient building signage, the Beach Club, the Oyster Bar, and the introduction of on-site sports betting. For the fourth quarter of 2021, revenues at Silver Slipper increased 22.7% to $22.5 million, reflecting the relaxation of pandemic-related business restrictions that were in place. Adjusted Segment EBITDA increased 31.3% to $6.7 million from $5.1 million. For the full year, revenues increased 45.0% to $90.6 million and Adjusted Segment EBITDA increased 103.4% to $29.8 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Indiana. Rising Star Casino Resort’s revenues were $9.7 million in the fourth quarter of 2021, a decrease from $10.5 million in the fourth quarter of 2020, reflecting adverse hold in the recent quarter. Adjusted Segment EBITDA of $1.1 million in the fourth quarter of 2021 compares to $3.2 million in the prior-year period. The decrease was primarily due to timing differences related to the Company’s annual sale of “free play.” The state’s casinos are permitted to transfer “free play” to other casino operators within Indiana. Because Indiana has a progressive gaming tax system and Rising Star is one of the smaller casinos in the state, the property has consistently sold its ability to deduct “free play” in computing gaming taxes to operators in higher tax tiers. Such sale resulted in $2.1 million of revenue and income in the fourth quarter of 2020. Rising Star also sold its “free play” for $2.1 million during 2021, albeit in the third quarter. For the full year, revenues increased 40.3% to $41.4 million and Adjusted Segment EBITDA increased 257.4% to $8.7 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Colorado. This segment includes Bronco Billy’s Casino and Hotel and, upon its opening, will include Chamonix Casino Hotel. Revenues for this segment were $5.0 million in the fourth quarter of 2021, a decrease from $5.4 million in the fourth quarter of 2020. Adjusted Segment EBITDA of $0.5 million in the fourth quarter of 2021 compares to $1.3 million in the prior-year period. Results in the current period were impacted by the loss of all of the property’s on-site parking due to the construction of Chamonix. To alleviate the lack of on-site parking, the Company introduced complimentary valet parking, as well as a free shuttle service to an off-site parking lot. For the full year, revenues increased 20.6% to $23.7 million and Adjusted Segment EBITDA increased 46.3% to $5.5 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
As discussed above, construction continues on Chamonix Casino Hotel, located adjacent to Bronco Billy’s. When complete, Chamonix will include a new casino, approximately 300 luxury guest rooms and suites, parking garage, meeting and entertainment space, outdoor pool, spa, and fine-dining restaurant. Vertical construction commenced in late 2021, with work currently being performed on the second floor of the hotel tower and the fifth floor of the parking garage. The three principal guestroom towers are anticipated to “top out” between April and August 2022. For detailed renderings of the project and two webcams of the construction underway, please visit www.ChamonixCO.com.
- Nevada. This segment consists of the Grand Lodge Casino, which is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, and Stockman’s Casino, which is located in Fallon, Nevada. This segment is historically the smallest of the Company’s segments. During the fourth quarter of 2021, the segment continued to benefit from the relaxation of pandemic-related restrictions, including at the Naval air station near Stockman’s and at the ski areas near Grand Lodge. Revenues increased 25.5% to $4.3 million in the fourth quarter of 2021. Adjusted Segment EBITDA rose to $0.8 million, a 102.1% increase from $0.4 million in the fourth quarter of 2020. For the full year, revenues increased 57.8% to $18.5 million and Adjusted Segment EBITDA increased 986.6% to $4.9 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Contracted Sports Wagering. This segment consists of the Company’s on-site and online sports wagering “skins” (akin to websites) in Colorado and Indiana. Revenues and Adjusted Segment EBITDA were both $1.8 million in the fourth quarter of 2021. These results reflect an additional skin that contractually went live on December 1, 2021. As a result, all of the Company’s six permitted sports wagering skins were in operation in the fourth quarter of 2021. For the fourth quarter of 2020, when three sports wagering skins were live, revenues and Adjusted Segment EBITDA were $0.6 million.
In February 2022, one of the Company’s contracted parties for sports wagering informed us of its intent to cease operations on May 15, 2022, which will create one available skin in each of Colorado and Indiana. Full House is currently negotiating with other companies to be the replacement operator for such skins.
Additionally, the Company expects to have an available sports skin in Illinois, as the Company was recently chosen by the Illinois Gaming Board (“IGB”) to develop and operate a casino in Waukegan, Illinois, as discussed below. Illinois law allows one sports skin for each physical casino license, resulting in fewer total sports skins than in each of Colorado and Indiana. Illinois is also the sixth most populous state in the country, with approximately 12.8 million residents. As a result, the Company expects to receive better terms for its Illinois skin than for any of its individual skins in Colorado or Indiana.
- Corporate. Corporate expenses increased during the fourth quarter of 2021, primarily due to $1.7 million of expenses related to corporate initiatives that are not expected to recur in 2022. For the full year, expenses related to such initiatives totaled $2.1 million. Corporate expenses also increased due to additional professional fees, a gradual resumption of activities in late 2020 following the closure period, and an increase in accrued bonus compensation, reflecting the Company’s improved operating results.
- American Place. In December 2021, Full House was chosen by the IGB to develop American Place, a new gaming and entertainment destination located in Waukegan, Illinois, a northern suburb of Chicago, subject to final regulatory approvals. The permanent American Place facility is slated to include a world-class casino with a state-of-the-art sports book; a premium boutique hotel comprised of 20 luxurious villas, each ranging from 1,500 to 2,500 square feet with full butler service; a 1,500-seat live entertainment venue; a gourmet restaurant that will rival the finest restaurants in Chicago; additional eateries and bars; and other amenities that will attract gaming and non-gaming patrons from throughout Chicagoland and beyond.
While the larger, more lavish, permanent facility is under construction, the Company will operate a temporary casino facility, aptly named The Temporary by American Place. The Temporary is slated to include approximately 1,000 slot machines, 50 table games, a fine-dining restaurant, two additional restaurants, and a center bar. We intend to open The Temporary in Summer 2022, pending customary gaming approvals.
In preparation for the opening of The Temporary, the Company recently agreed to purchase a “Sprung structure,” which has an area of approximately 1.5 football fields and will house most of the temporary casino. The Sprung structure is expected to arrive on-site in April 2022. Additionally, the Company recently entered into an agreement to purchase approximately 10 acres of land adjoining the approximately 30-acre casino site to be leased from the city, providing space for additional parking and access to the casino site from a major road. Next week, the Company is holding a career fair to begin interviewing applicants for available jobs throughout The Temporary.
Liquidity and Capital Resources
As of December 31, 2021, the Company had $265.3 million in cash and cash equivalents (including $176.6 million of cash reserved for the construction of Chamonix) and $310.0 million in outstanding senior secured notes due 2028. During the fourth quarter of 2021, the Company’s $5.6 million of unsecured loans obtained under the CARES Act were fully forgiven.
Subsequent to year-end, the Company successfully completed its funding of The Temporary at American Place, which is intended to open in Summer 2022. In February 2022, the Company closed a private offering of $100.0 million aggregate principal amount of its 8.25% Senior Secured Notes due 2028 (the “Additional Notes”). The Additional Notes were sold at a price of 102.0% of the principal amount and were issued pursuant to an indenture under which the Company issued $310.0 million of identical senior secured notes in February 2021. The Company also amended its revolving credit agreement to, among other things, increase its borrowing capacity from $15.0 million to $40.0 million, all of which was available to draw upon as of March 8, 2022. The interest rate for borrowings under the credit facility, based on today’s rates, would be less than 4%.
Conference Call Information
The Company will host a conference call for investors today, March 8, 2022, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2021 fourth quarter results. Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (888) 254-3590 or, for international callers, (323) 794-2551.
A replay of the conference call will be available shortly after the conclusion of the call through March 22, 2022. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (844) 512-2921 or, for international callers, (412) 317-6671 and using the passcode 2361210.
(a) Reconciliation of Non-GAAP Financial Measure
The Company utilizes Adjusted Segment EBITDA, a financial measure in accordance with generally accepted accounting principles (“GAAP”), as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment. The Company also utilizes Adjusted EBITDA (a non-GAAP measure), which is defined as Adjusted Segment EBITDA net of corporate-related costs and expenses.
Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, the Company believes this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. The Company utilizes this metric or measure internally to focus management on year-over-year changes in core operating performance, which it considers its ordinary, ongoing and customary operations and which it believes is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.
A reconciliation of Adjusted EBITDA is presented below. However, you should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities, or any other measure for determining our operating performance or liquidity that is calculated in accordance with GAAP. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 31,214 | $ | 27,196 | $ | 130,431 | $ | 90,812 | ||||||||
| Food and beverage | 6,714 | 5,170 | 27,347 | 19,766 | ||||||||||||
| Hotel | 2,434 | 2,206 | 9,624 | 7,410 | ||||||||||||
| Other operations, including contracted sports wagering | 2,909 | 3,697 | 12,757 | 7,601 | ||||||||||||
| 43,271 | 38,269 | 180,159 | 125,589 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 11,078 | 9,863 | 43,765 | 33,749 | ||||||||||||
| Food and beverage | 6,270 | 4,925 | 23,757 | 19,378 | ||||||||||||
| Hotel | 1,112 | 1,110 | 4,444 | 3,773 | ||||||||||||
| Other operations | 458 | 414 | 1,980 | 1,855 | ||||||||||||
| Selling, general and administrative | 16,754 | 12,253 | 59,965 | 47,585 | ||||||||||||
| Project development costs | 291 | — | 782 | 423 | ||||||||||||
| Preopening costs | — | — | 17 | — | ||||||||||||
| Depreciation and amortization | 1,771 | 1,798 | 7,219 | 7,666 | ||||||||||||
| Loss on disposal of assets, net | 2 | 245 | 676 | 684 | ||||||||||||
| 37,736 | 30,608 | 142,605 | 115,113 | |||||||||||||
| Operating income | 5,535 | 7,661 | 37,554 | 10,476 | ||||||||||||
| Other (expense) income, net | ||||||||||||||||
| Interest expense, net of capitalized interest | (6,126 | ) | (2,494 | ) | (23,657 | ) | (9,823 | ) | ||||||||
| Gain (loss) on extinguishment of debt, net | 5,695 | — | (409 | ) | — | |||||||||||
| Adjustment to fair value of warrants | — | (1,757 | ) | (1,347 | ) | (598 | ) | |||||||||
| (431 | ) | (4,251 | ) | (25,413 | ) | (10,421 | ) | |||||||||
| Income before income taxes | 5,104 | 3,410 | 12,141 | 55 | ||||||||||||
| Income tax expense (benefit) | 56 | (90 | ) | 435 | (92 | ) | ||||||||||
| Net income | $ | 5,048 | $ | 3,500 | $ | 11,706 | $ | 147 | ||||||||
| Basic earnings per share | $ | 0.15 | $ | 0.13 | $ | 0.36 | $ | 0.01 | ||||||||
| Diluted earnings per share | $ | 0.14 | $ | 0.12 | $ | 0.33 | $ | 0.01 | ||||||||
| Basic weighted average number of common shares outstanding | 34,231 | 27,114 | 32,517 | 27,094 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 36,749 | 28,428 | 34,946 | 27,784 | ||||||||||||
Full House Resorts, Inc.
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Mississippi | $ | 22,495 | $ | 18,334 | $ | 90,628 | $ | 62,513 | ||||||||
| Indiana(2) | 9,685 | 10,504 | 41,435 | 29,524 | ||||||||||||
| Colorado(2) | 5,032 | 5,364 | 23,660 | 19,614 | ||||||||||||
| Nevada | 4,299 | 3,426 | 18,516 | 11,732 | ||||||||||||
| Contracted Sports Wagering(2) | 1,760 | 641 | 5,920 | 2,206 | ||||||||||||
| $ | 43,271 | $ | 38,269 | $ | 180,159 | $ | 125,589 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Mississippi | $ | 6,747 | $ | 5,140 | $ | 29,843 | $ | 14,669 | ||||||||
| Indiana(2) | 1,120 | 3,213 | 8,736 | 2,444 | ||||||||||||
| Colorado(2) | 453 | 1,344 | 5,545 | 3,790 | ||||||||||||
| Nevada | 760 | 376 | 4,933 | 454 | ||||||||||||
| Contracted Sports Wagering(2) | 1,768 | 619 | 5,890 | 2,086 | ||||||||||||
| Adjusted Segment EBITDA | 10,848 | 10,692 | 54,947 | 23,443 | ||||||||||||
| Corporate | (2,930 | ) | (890 | ) | (7,733 | ) | (3,789 | ) | ||||||||
| Adjusted EBITDA | $ | 7,918 | $ | 9,802 | $ | 47,214 | $ | 19,654 | ||||||||
__________
(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level.
(2) The Company made certain minor reclassifications to 2020 amounts to conform to current-period presentation for enhanced comparability. Such reclassifications had no effect on the previously reported results of operations or financial position.
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income | $ | 5,048 | $ | 3,500 | $ | 11,706 | $ | 147 | |||||||
| Income tax expense (benefit) | 56 | (90 | ) | 435 | (92 | ) | |||||||||
| Interest expense, net of amounts capitalized | 6,126 | 2,494 | 23,657 | 9,823 | |||||||||||
| (Gain) loss on extinguishment of debt, net | (5,695 | ) | — | 409 | — | ||||||||||
| Adjustment to fair value of warrants | — | 1,757 | 1,347 | 598 | |||||||||||
| Operating income | 5,535 | 7,661 | 37,554 | 10,476 | |||||||||||
| Project development costs | 291 | — | 782 | 423 | |||||||||||
| Preopening costs | — | — | 17 | — | |||||||||||
| Depreciation and amortization | 1,771 | 1,798 | 7,219 | 7,666 | |||||||||||
| Loss on disposal of assets, net | 2 | 245 | 676 | 684 | |||||||||||
| Stock-based compensation | 319 | 98 | 966 | 405 | |||||||||||
| Adjusted EBITDA | $ | 7,918 | $ | 9,802 | $ | 47,214 | $ | 19,654 | |||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended December 31, 2021 | |||||||||||||||||||
| Adjusted | |||||||||||||||||||
| Segment | |||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | ||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | ||||||||||||||
| Reporting segments | |||||||||||||||||||
| Mississippi | $ | 6,070 | $ | 677 | $ | — | $ | — | $ | — | $ | 6,747 | |||||||
| Indiana | 558 | 562 | — | — | — | 1,120 | |||||||||||||
| Colorado | 88 | 363 | 2 | — | — | 453 | |||||||||||||
| Nevada | 625 | 135 | — | — | — | 760 | |||||||||||||
| Contracted Sports Wagering | 1,768 | — | — | — | — | 1,768 | |||||||||||||
| 9,109 | 1,737 | 2 | — | — | 10,848 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (3,574 | ) | 34 | — | 291 | 319 | (2,930 | ) | |||||||||||
| $ | 5,535 | $ | 1,771 | $ | 2 | $ | 291 | $ | 319 | $ | 7,918 | ||||||||
| Three Months Ended December 31, 2020 | ||||||||||||||||
| Adjusted | ||||||||||||||||
| Segment | ||||||||||||||||
| Operating | Depreciation | Loss on | Stock- | EBITDA and | ||||||||||||
| Income | and | Disposal | Based | Adjusted | ||||||||||||
| (Loss) | Amortization | of Assets | Compensation | EBITDA | ||||||||||||
| Reporting segments | ||||||||||||||||
| Mississippi | $ | 4,239 | $ | 657 | $ | 244 | $ | — | $ | 5,140 | ||||||
| Indiana | 2,592 | 621 | — | — | 3,213 | |||||||||||
| Colorado | 1,002 | 342 | — | — | 1,344 | |||||||||||
| Nevada | 236 | 140 | — | — | 376 | |||||||||||
| Contracted Sports Wagering | 619 | — | — | — | 619 | |||||||||||
| 8,688 | 1,760 | 244 | — | 10,692 | ||||||||||||
| Other operations | ||||||||||||||||
| Corporate | (1,027 | ) | 38 | 1 | 98 | (890 | ) | |||||||||
| $ | 7,661 | $ | 1,798 | $ | 245 | $ | 98 | $ | 9,802 | |||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Year Ended December 31, 2021 | ||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||
| Segment | ||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||
| Reporting segments | ||||||||||||||||||||||
| Mississippi | $ | 26,553 | $ | 2,701 | $ | 589 | $ | — | $ | — | $ | — | $ | 29,843 | ||||||||
| Indiana | 6,396 | 2,340 | — | — | — | — | 8,736 | |||||||||||||||
| Colorado | 3,959 | 1,482 | 87 | — | 17 | — | 5,545 | |||||||||||||||
| Nevada | 4,386 | 547 | — | — | — | — | 4,933 | |||||||||||||||
| Contracted Sports Wagering | 5,890 | — | — | — | — | — | 5,890 | |||||||||||||||
| 47,184 | 7,070 | 676 | — | 17 | — | 54,947 | ||||||||||||||||
| Other operations | ||||||||||||||||||||||
| Corporate | (9,630 | ) | 149 | — | 782 | — | 966 | (7,733 | ) | |||||||||||||
| $ | 37,554 | $ | 7,219 | $ | 676 | $ | 782 | $ | 17 | $ | 966 | $ | 47,214 | |||||||||
| Year Ended December 31, 2020 | |||||||||||||||||||
| Adjusted | |||||||||||||||||||
| Segment | |||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | ||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | ||||||||||||||
| Reporting segments | |||||||||||||||||||
| Mississippi | $ | 11,421 | $ | 3,004 | $ | 244 | $ | — | $ | — | $ | 14,669 | |||||||
| Indiana | (34 | ) | 2,478 | — | — | — | 2,444 | ||||||||||||
| Colorado | 2,336 | 1,450 | 4 | — | — | 3,790 | |||||||||||||
| Nevada | (562 | ) | 581 | 435 | — | — | 454 | ||||||||||||
| Contracted Sports Wagering | 2,086 | — | — | — | — | 2,086 | |||||||||||||
| 15,247 | 7,513 | 683 | — | — | 23,443 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (4,771 | ) | 153 | 1 | 423 | 405 | (3,789 | ) | |||||||||||
| $ | 10,476 | $ | 7,666 | $ | 684 | $ | 423 | $ | 405 | $ | 19,654 | ||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by Full House and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budget, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix; our expected construction budget, estimated commencement and completion dates, expected amenities, expected acreage and our expected operational performance for American Place, including The Temporary; our expectations regarding our ability to receive regulatory approval for American Place and The Temporary; and our expectations regarding our ability to replace any terminated sports wagering contracts in Colorado and Indiana and our ability to enter into a new sports wagering contract in Illinois, including the expected revenues and expenses and the expected timing for such contracts. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Full House. Such risks include, without limitation, our ability to repay our substantial indebtedness; the potential for additional adverse impacts from the COVID-19 pandemic, including the emergence of variants, on our business, construction projects, indebtedness, financial condition and operating results; potential actions by government officials at the federal, state or local level in connection with the COVID-19 pandemic, including, without limitation, additional shutdowns, travel restrictions, social distancing measures or shelter-in-place orders; our ability to effectively manage and control expenses as a result of the pandemic; our ability to complete Chamonix, American Place, and The Temporary on-time and on-budget; the successful closing of our purchase of additional land in Waukegan, including approval from the Illinois Gaming Board; various approvals that are required to lease the primary American Place site from the City of Waukegan, including approvals from the Illinois Gaming Board; the successful entry into replacement sports wagering contracts in Colorado and Indiana and a new sports wagering contract in Illinois; changes in guest visitation or spending patterns due to COVID-19 or other health or other concerns; a decrease in overall demand as other competing entertainment venues continue to re-open; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; inflation and its potential impacts on labor costs and the prices of food, construction, and other materials; the effects of potential disruptions in the supply chains for goods, such as food, lumber, and other materials; general macroeconomic conditions; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports Full House files with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. The Company is currently constructing Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado. In December 2021, the Company was chosen by the Illinois Gaming Board to develop American Place, a new gaming and entertainment destination to be built in Waukegan, Illinois, subject to final regulatory approvals. For further information, please visit www.fullhouseresorts.com.
Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
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LAS VEGAS, Nov. 15, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) (the “Company”) today announced that it has named Jeff Michie as vice president and general manager of its Rising Star Casino Resort in Rising Sun, Indiana, subject to customary gaming approvals. Mr. Michie will replace Angi Truebner-Webb who, as previously reported, will become the general manager of the Company’s Silver Slipper Casino Hotel in Hancock County, Mississippi.
Mr. Michie joins Rising Star from Casino del Sol, a large casino resort in Tucson, Arizona. As the chief financial officer of Casino del Sol, Mr. Michie oversaw the property’s finance, surveillance and golf course departments. Mr. Michie has also served in senior management positions at several casinos that directly compete with Rising Star, including as the senior vice president of operations and finance of Hard Rock Casino Cincinnati, and as assistant general manager and CFO for Belterra Casino Resort & Spa. During his extensive career, Mr. Michie has also served as general manager for several properties, including the Belle of Baton Rouge Casino & Hotel in Baton Rouge, Louisiana, and the Horizon Casino & Hotel in Vicksburg, Mississippi. He earned his bachelor’s degree in finance and public administration from San Diego State University. He has also been a long-time resident of nearby Lawrenceburg, Indiana.
In connection with his hiring, the compensation committee of the Company’s board of directors (the “Compensation Committee”) approved a grant of an inducement equity award of 19,921 restricted shares to Mr. Michie. Subject to his continuing service through the vesting dates, one-third of the total number of shares granted will vest on each of November 11, 2025, 2026, and 2027, the anniversary dates of Mr. Michie’s commencement of employment and the grant of restricted shares.
Additionally, in connection with their hirings, the Compensation Committee approved grants of inducement equity awards to two additional employees: Kimberly Bender and Katelynn May were each granted 4,107 restricted shares. For both Ms. Bender and Ms. May, one-third of the total number of shares granted will vest on each of November 12, 2025, 2026, and 2027, subject to their continuing service through the vesting dates, which are the anniversary dates of the grants of restricted shares.
The awards were granted outside of the Company’s 2015 Equity Incentive Plan and were approved by the Compensation Committee in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement to the above individuals’ entry into employment with the Company.
Forward-looking Statements
This press release contains statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, dependence on existing management, competition, uncertainties over the development and success of our acquisition and expansion projects, the financial performance of our finished projects and renovations, general macroeconomic conditions, legal risks, and regulatory and business conditions in the gaming industry. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800
– Revenues Increased Significantly Compared to the Third Quarter of 2023
– Chamonix Casino Hotel Celebrated Its Official Grand Opening This Past Weekend
– American Place Casino Continued Its Expected Ramp-Up of Operations,
With Revenues Rising 17.7% in the Third Quarter of 2024
– Agreed to Sell Stockman’s Casino for $9.2 Million
LAS VEGAS, Nov. 06, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the third quarter ended September 30, 2024.
On a consolidated basis, revenues in the third quarter of 2024 were $75.7 million. Revenues in the prior-year period were $71.5 million, which included $5.8 million from the accelerated recognition of deferred revenue from two sports wagering agreements. Net loss for the third quarter of 2024 was $8.5 million, or $(0.24) per diluted common share, which includes $0.1 million of preopening and development costs, a $2.0 million gain on the sale of Stockman’s Casino, and depreciation and amortization charges related to our new American Place and Chamonix facilities. In the prior-year period, net income was $4.6 million, or $0.13 per diluted common share, reflecting $1.1 million of preopening and development costs and $5.8 million related to the accelerated recognition of deferred revenue. Adjusted EBITDA(a) of $11.7 million in the third quarter of 2024 reflects strong continued growth at American Place, as well as elevated costs at Chamonix as it continues to ramp-up its operations. In the prior-year period, Adjusted EBITDA was $20.6 million, benefiting from the accelerated recognition of deferred revenue noted above.
“American Place continued its meaningful growth during the third quarter of 2024,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “This still relatively-new property, which opened in February 2023, grew revenues and Adjusted Property EBITDA by 17.7% and 13.6%, respectively. We look forward to further growth at American Place in 2025 and beyond.
“At our expanded operations in Cripple Creek, Colorado,” continued Mr. Lee, “gaming revenues continued to set new monthly records, resulting in a 115% increase during the current quarter when compared to the prior-year period. Hotel occupancy rose dramatically during the third quarter, reaching 88.5% in September 2024 as guests discover – and revisit – our new casino hotel. For comparison, hotel occupancy averaged approximately 52% in the second quarter of 2024. Total revenues from our Colorado operations rose 178% from the third quarter of 2023.
“These revenue gains were despite the lack of a large-scale marketing campaign. Such a campaign was largely on hold until recently, when construction was complete. Accordingly, awareness of Chamonix remains in the early stages in the key markets of Colorado Springs and Denver. This past weekend, we celebrated Chamonix’s official Grand Opening with a VIP party, complete with major celebrity entertainment. This week, as political ad spending wanes, we will commence our first post-opening awareness campaign for Chamonix. We believe Chamonix is an unparallelled casino for the region. We remain confident in its earnings potential over the coming quarters and in the longer-term.
“We also remain excited for our future permanent American Place facility. Construction of such casino is on hold, pending litigation that we believe will be resolved in the next few quarters.
“While our temporary casino is performing very well, we think the permanent casino will perform much better. Another gaming company in Illinois operated a temporary casino for several years, in the city of Rockford. It is a market quite analogous to our market in Lake County. That temporary casino recently transitioned into a permanent facility and the early results have been very strong. In September 2024, for example, the Illinois Gaming Board reported that the permanent Rockford casino’s gaming revenues were $13.7 million, a 139% increase from $5.7 million produced in September 2023 in a temporary facility. Their revenue growth reinforces our excitement for our own transition from our temporary American Place casino, which we are currently permitted to operate until August 2027, into a permanent casino facility.”
Third Quarter Highlights and Subsequent Events
- Midwest & South. This segment includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and American Place. Revenues for the segment were $54.5 million in the third quarter of 2024, a 3.7% increase from $52.6 million in the prior-year period. Adjusted Segment EBITDA was $10.2 million, a 12.8% decrease from $11.8 million in the prior-year period. These results reflect continuing growth at American Place, but an active storm season in the Silver Slipper’s Mississippi Gulf Coast area, where several significant storms during the third quarter of 2024 adversely impacted visitation to the property. In the third quarter of 2024, American Place generated $28.1 million of revenue and $7.7 million of Adjusted Property EBITDA, or increases of 17.7% and 13.6%, respectively, compared to the third quarter of 2023.
As noted in the press, we recently began exploring the potential relocation of our Rising Star Casino Resort from Rising Sun to other locations within Indiana. Any potential relocation requires the state legislature’s approval and would require several years to take effect.
- West. This segment includes Grand Lodge Casino (located within the Hyatt Regency Lake Tahoe resort in Incline Village), Stockman’s Casino, Bronco Billy’s Casino, and Chamonix Casino Hotel, which began its phased opening on December 27, 2023. Bronco Billy’s and Chamonix are two integrated and adjoining casinos, and are operated as a single entity. Revenues for the segment rose 74.9% to $19.4 million in the third quarter of 2024, versus $11.1 million in the prior-year period. Reflecting the high operating expenses of our new casino in Colorado that was not yet fully open, Adjusted Segment EBITDA was $1.2 million in the third quarter of 2024, versus $2.3 million in the prior-year period. Such opening costs include the training of new employees, as well as the cost of operating many amenities at the new resort while continuing to complete construction. As noted above, Chamonix recently celebrated its official Grand Opening last weekend and its broader advertising program is just commencing.
On July 1, 2024, Gaming Entertainment (Nevada) LLC, our wholly-owned subsidiary that operates Grand Lodge Casino, entered into a Seventh Amendment to Casino Operations Lease (the “Amendment”) with Incline Hotel LLC (the “Landlord”). Prior to the Amendment, Grand Lodge’s casino lease was scheduled to expire on December 31, 2024. The Amendment extends the term of the lease by ten years to December 31, 2034; increases annual rent from $2,000,000 in 2024 to $2,010,857 for 2025, followed by annual increases of 2% for the remainder of the term; and makes certain other conforming changes. The new longer-term lease can be cancelled prior to its expiration on terms specified in the lease. We first began operating the Grand Lodge casino under a short-term lease in 2011. That lease had been extended several times, reflecting the ongoing and excellent relationship between us and the operators of the hotel.
On August 28, 2024, we entered into an agreement with privately-owned Clarity Game LLC (“Clarity”) to sell the operating assets of Stockman’s for aggregate cash consideration of $9.2 million, plus certain expected working capital adjustments at closing. The asset sale was designed to be completed in two phases: the sale of Stockman’s real property for $7.0 million, which closed on September 27, 2024; and the sale of certain remaining operating assets for $2.2 million (excluding any expected positive adjustments for working capital), upon the receipt of customary gaming approvals. Upon completion of the second phase, we will transfer all of Stockman’s daily operations to Clarity. During the third quarter of 2024, we recognized a $2.0 million gain from the sale of Stockman’s real property.
- Contracted Sports Wagering. This segment consists of our on-site and online sports wagering “skins” (akin to websites) in Colorado, Indiana, and Illinois. Revenues and Adjusted Segment EBITDA in the third quarter of 2024 were $1.8 million and $2.0 million, respectively. Results during the current quarter reflect the absence of a sports wagering agreement that ceased operating in Colorado after April 2024, as well as the recapture of earnings from prior period losses due to a settlement agreement in Indiana in July 2024. In the third quarter of 2023, revenues and Adjusted Segment EBITDA were both $7.9 million, reflecting $5.8 million of accelerated revenues related to two sports wagering agreements that ceased operations during that quarter.
Liquidity and Capital Resources
As of September 30, 2024, we had $33.6 million in cash and cash equivalents, including $7.7 million of cash reserved under our bond indentures to complete the construction of Chamonix. Our debt consisted primarily of $450.0 million in outstanding senior secured notes due 2028, which became callable at specified premiums in February 2024, and $27.0 million outstanding under our revolving credit facility.
Conference Call Information
We will host a conference call for investors today, November 6, 2024, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2024 third quarter results. Investors can access the live audio webcast from our website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through November 13, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13748672.
(a) Reconciliation of Non-GAAP Financial Measures
Our presentation of non-GAAP Measures may be different from the presentation used by other companies, and therefore, comparability may be limited. While excluded from certain non-GAAP Measures, depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred. Each of these items should also be considered in the overall evaluation of our results. Additionally, our non-GAAP Measures do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, and other items both in our reconciliations to the historical GAAP financial measures and in our condensed consolidated financial statements, all of which should be considered when evaluating our performance.
Our non-GAAP Measures are to be used in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP Measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. These non-GAAP Measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.
Adjusted Segment EBITDA. We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment.
Same-store Adjusted Segment EBITDA. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Adjusted EBITDA. We also utilize Adjusted EBITDA, which is defined as Adjusted Segment EBITDA, net of corporate-related costs and expenses. Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, we believe this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. We utilize this metric or measure internally to focus management on year-over-year changes in core operating performance, which we consider our ordinary, ongoing and customary operations, and which we believe is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.
Full House Resorts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 56,116 | $ | 50,240 | $ | 162,474 | $ | 131,586 | ||||||||
| Food and beverage | 11,100 | 9,086 | 31,272 | 25,419 | ||||||||||||
| Hotel | 4,693 | 2,560 | 11,287 | 7,052 | ||||||||||||
| Other operations, including contracted sports wagering | 3,778 | 9,657 | 14,070 | 16,974 | ||||||||||||
| 75,687 | 71,543 | 219,103 | 181,031 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 22,582 | 19,437 | 63,876 | 49,771 | ||||||||||||
| Food and beverage | 11,561 | 8,330 | 32,035 | 24,815 | ||||||||||||
| Hotel | 3,160 | 1,164 | 7,706 | 3,611 | ||||||||||||
| Other operations | 610 | 691 | 2,391 | 1,878 | ||||||||||||
| Selling, general and administrative | 26,738 | 22,017 | 76,958 | 61,823 | ||||||||||||
| Project development costs | 52 | 21 | 55 | 45 | ||||||||||||
| Preopening costs | 42 | 1,051 | 2,462 | 12,634 | ||||||||||||
| Depreciation and amortization | 10,493 | 8,468 | 31,444 | 22,482 | ||||||||||||
| Loss on disposal of assets | — | 7 | 18 | 7 | ||||||||||||
| Gain on sale of Stockman’s | (2,000 | ) | — | (2,000 | ) | — | ||||||||||
| 73,238 | 61,186 | 214,945 | 177,066 | |||||||||||||
| Operating income | 2,449 | 10,357 | 4,158 | 3,965 | ||||||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense, net | (11,047 | ) | (5,867 | ) | (32,320 | ) | (16,319 | ) | ||||||||
| Gain on settlements | — | 29 | — | 384 | ||||||||||||
| (11,047 | ) | (5,838 | ) | (32,320 | ) | (15,935 | ) | |||||||||
| (Loss) income before income taxes | (8,598 | ) | 4,519 | (28,162 | ) | (11,970 | ) | |||||||||
| Income tax (benefit) provision | (126 | ) | (74 | ) | 211 | 452 | ||||||||||
| Net (loss) income | $ | (8,472 | ) | $ | 4,593 | $ | (28,373 | ) | $ | (12,422 | ) | |||||
| Basic (loss) earnings per share | $ | (0.24 | ) | $ | 0.13 | $ | (0.82 | ) | $ | (0.36 | ) | |||||
| Diluted (loss) earnings per share | $ | (0.24 | ) | $ | 0.13 | $ | (0.82 | ) | $ | (0.36 | ) | |||||
| Basic weighted average number of common shares outstanding | 34,944 | 34,583 | 34,749 | 34,497 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 34,944 | 36,673 | 34,749 | 34,497 | ||||||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Midwest & South | $ | 54,510 | $ | 52,553 | $ | 164,599 | $ | 143,267 | ||||||||
| West | 19,387 | 11,085 | 47,571 | 27,297 | ||||||||||||
| Contracted Sports Wagering | 1,790 | 7,905 | 6,933 | 10,467 | ||||||||||||
| $ | 75,687 | $ | 71,543 | $ | 219,103 | $ | 181,031 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Midwest & South | $ | 10,249 | $ | 11,750 | $ | 35,206 | $ | 31,830 | ||||||||
| West | 1,198 | 2,308 | 1,928 | 2,538 | ||||||||||||
| Contracted Sports Wagering | 2,037 | 7,852 | 6,549 | 10,373 | ||||||||||||
| Adjusted Segment EBITDA | 13,484 | 21,910 | 43,683 | 44,741 | ||||||||||||
| Corporate | (1,742 | ) | (1,280 | ) | (5,391 | ) | (3,479 | ) | ||||||||
| Adjusted EBITDA | $ | 11,742 | $ | 20,630 | $ | 38,292 | $ | 41,262 | ||||||||
__________
(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profitability in assessing performance and allocating resources at the reportable segment level.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Same-store Revenues and Adjusted Segment EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | Increase / | September 30, | Increase / | |||||||||||||||||||||||
| Reporting segments | 2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||||||||||||||||
| Midwest & South | ||||||||||||||||||||||||||
| Midwest & South same-store total revenues(1) |
$ | 26,385 | $ | 28,663 | (7.9 | ) | % | $ | 83,422 | $ | 88,629 | (5.9 | ) | % | ||||||||||||
| American Place | 28,125 | 23,890 | 17.7 | % | 81,177 | 54,638 | 48.6 | % | ||||||||||||||||||
| Midwest & South total revenues | $ | 54,510 | $ | 52,553 | 3.7 | % | $ | 164,599 | $ | 143,267 | 14.9 | % | ||||||||||||||
| Midwest & South same-store Adjusted Segment EBITDA(1) |
$ | 2,543 | $ | 4,966 | (48.8 | ) | % | $ | 12,533 | $ | 17,341 | (27.7 | ) | % | ||||||||||||
| American Place | 7,706 | 6,784 | 13.6 | % | 22,673 | 14,489 | 56.5 | % | ||||||||||||||||||
| Midwest & South Adjusted Segment EBITDA |
$ | 10,249 | $ | 11,750 | (12.8 | ) | % | $ | 35,206 | $ | 31,830 | 10.6 | % | |||||||||||||
| Contracted Sports Wagering | ||||||||||||||||||||||||||
| Contracted Sports Wagering same-store total revenues(2) |
$ | 315 | $ | 1,370 | (77.0 | ) | % | $ | 1,690 | $ | 3,932 | (57.0 | ) | % | ||||||||||||
| Accelerated revenues due to contract terminations(3) |
— | 5,794 | N.M. | 893 | 5,794 | (84.6 | ) | % | ||||||||||||||||||
| Illinois | 1,475 | 741 | 99.1 | % | 4,350 | 741 | 487.0 | % | ||||||||||||||||||
| Contracted Sports Wagering total revenues |
$ | 1,790 | $ | 7,905 | (77.4 | ) | % | $ | 6,933 | $ | 10,467 | (33.8 | ) | % | ||||||||||||
| Contracted Sports Wagering same-store Adjusted Segment EBITDA(2) |
$ | 620 | $ | 1,336 | (53.6 | ) | % | $ | 1,448 | $ | 3,857 | (62.5 | ) | % | ||||||||||||
| Accelerated revenues due to contract terminations(3) |
— | 5,794 | N.M. | 893 | 5,794 | (84.6 | ) | % | ||||||||||||||||||
| Illinois | 1,417 | 722 | 96.3 | % | 4,208 | 722 | 482.8 | % | ||||||||||||||||||
| Contracted Sports Wagering Adjusted Segment EBITDA |
$ | 2,037 | $ | 7,852 | (74.1 | ) | % | $ | 6,549 | $ | 10,373 | (36.9 | ) | % | ||||||||||||
__________
N.M. Not meaningful.
(1) Same-store operations exclude results from American Place, which opened on February 17, 2023.
(2) Same-store operations exclude results from Illinois, which contractually commenced on August 15, 2023. For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations.
(3) For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. Such adjustments reflect one sports skin that ceased operations in the second quarter of 2024, and two sports skins that ceased operations in the third quarter of 2023.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net (Loss) Income and Operating Income to Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (8,472 | ) | $ | 4,593 | $ | (28,373 | ) | $ | (12,422 | ) | ||||
| Income tax (benefit) provision | (126 | ) | (74 | ) | 211 | 452 | |||||||||
| Interest expense, net | 11,047 | 5,867 | 32,320 | 16,319 | |||||||||||
| Gain on settlements | — | (29 | ) | — | (384 | ) | |||||||||
| Operating income | 2,449 | 10,357 | 4,158 | 3,965 | |||||||||||
| Project development costs | 52 | 21 | 55 | 45 | |||||||||||
| Preopening costs | 42 | 1,051 | 2,462 | 12,634 | |||||||||||
| Depreciation and amortization | 10,493 | 8,468 | 31,444 | 22,482 | |||||||||||
| Loss on disposal of assets | — | 7 | 18 | 7 | |||||||||||
| Gain on sale of Stockman’s | (2,000 | ) | — | (2,000 | ) | — | |||||||||
| Stock-based compensation | 706 | 726 | 2,155 | 2,129 | |||||||||||
| Adjusted EBITDA | $ | 11,742 | $ | 20,630 | $ | 38,292 | $ | 41,262 | |||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Gain on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Sale of | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | Stockman’s | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 4,091 | $ | 6,158 | $ | — | $ | — | $ | — | $ | — | $ | 10,249 | ||||||||||||||
| West | (1,141 | ) | 4,297 | (2,000 | ) | — | 42 | — | 1,198 | |||||||||||||||||||
| Contracted Sports Wagering | 2,037 | — | — | — | — | — | 2,037 | |||||||||||||||||||||
| 4,987 | 10,455 | (2,000 | ) | — | 42 | — | 13,484 | |||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (2,538 | ) | 38 | — | 52 | — | 706 | (1,742 | ) | |||||||||||||||||||
| $ | 2,449 | $ | 10,493 | $ | (2,000 | ) | $ | 52 | $ | 42 | $ | 706 | $ | 11,742 | ||||||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 4,156 | $ | 7,828 | $ | 7 | $ | — | $ | (241 | ) | $ | — | $ | 11,750 | |||||||||||||
| West | 406 | 610 | — | — | 1,292 | — | 2,308 | |||||||||||||||||||||
| Contracted Sports Wagering |
7,852 | — | — | — | — | — | 7,852 | |||||||||||||||||||||
| 12,414 | 8,438 | 7 | — | 1,051 | — | 21,910 | ||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (2,057 | ) | 30 | — | 21 | — | 726 | (1,280 | ) | |||||||||||||||||||
| $ | 10,357 | $ | 8,468 | $ | 7 | $ | 21 | $ | 1,051 | $ | 726 | $ | 20,630 | |||||||||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Gain on | Project | Stock- | EBITDA and | ||||||||||||||||||||||||||
| Income | and | Disposal | Sale of | Development | Preopening | Based | Adjusted | |||||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Stockman’s | Costs | Costs | Compensation | EBITDA | |||||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||||||
| Midwest & South | $ | 16,134 | $ | 18,935 | $ | 18 | $ | — | $ | — | $ | 119 | $ | — | $ | 35,206 | ||||||||||||||||
| West | (10,827 | ) | 12,412 | — | (2,000 | ) | — | 2,343 | — | 1,928 | ||||||||||||||||||||||
| Contracted Sports Wagering |
6,549 | — | — | — | — | — | — | 6,549 | ||||||||||||||||||||||||
| 11,856 | 31,347 | 18 | (2,000 | ) | — | 2,462 | — | 43,683 | ||||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||||||
| Corporate | (7,698 | ) | 97 | — | — | 55 | — | 2,155 | (5,391 | ) | ||||||||||||||||||||||
| $ | 4,158 | $ | 31,444 | $ | 18 | $ | (2,000 | ) | $ | 55 | $ | 2,462 | $ | 2,155 | $ | 38,292 | ||||||||||||||||
| Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 1,322 | $ | 20,640 | $ | 7 | $ | — | $ | 9,861 | $ | — | $ | 31,830 | ||||||||||||||
| West | (1,985 | ) | 1,750 | — | — | 2,773 | — | 2,538 | ||||||||||||||||||||
| Contracted Sports Wagering | 10,373 | — | — | — | — | — | 10,373 | |||||||||||||||||||||
| 9,710 | 22,390 | 7 | — | 12,634 | — | 44,741 | ||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (5,745 | ) | 92 | — | 45 | — | 2,129 | (3,479 | ) | |||||||||||||||||||
| $ | 3,965 | $ | 22,482 | $ | 7 | $ | 45 | $ | 12,634 | $ | 2,129 | $ | 41,262 | |||||||||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by us and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix and American Place, including its permanent facility; our expectations regarding the timing of the ramp-up of operations of Chamonix and American Place; our expectations regarding the potential relocation of Rising Star to another location in Indiana, including the legislative and approval processes; and our expectations regarding the operation and performance of our other properties and segments. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, our ability to repay our substantial indebtedness; our ability to finance the construction of the permanent American Place facility; inflation and its potential impacts on labor costs and the price of food, construction, and other materials; the effects of potential disruptions in the supply chains for goods, such as food, lumber, and other materials; general macroeconomic conditions; our ability to effectively manage and control expenses; our ability to complete construction at American Place, on-time and on-budget; legal or regulatory restrictions, delays, or challenges for our construction projects, including American Place or the potential relocation of Rising Star; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; cyber events and their impacts to our operations; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
LAS VEGAS, Oct. 16, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its third quarter 2024 financial results on Wednesday, November 6, 2024, followed by a conference call at 4:30 p.m. ET (1:30 p.m. PT). Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through November 13, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13748672.
Forward-looking Statements
This press release may contain statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino, both in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. (702) 221-7800 www.fullhouseresorts.com
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