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Nasdaq:FLL

Full House Resorts Announces Strong Fourth Quarter Results

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– Operating Income Improved to $7.7 Million from an Operating Loss of $0.4 Million;
Net Income Improved to $3.5 Million from a Net Loss of $4.1 Million;
Adjusted EBITDA More Than Quadrupled from Prior-Year Quarter

– Company Issued New 8.25% Senior Secured Notes due 2028;
Proceeds Used to Refinance Its Existing Debt, Retire Warrants to Purchase Approximately One Million Shares,
and Fully Fund Its New Casino Hotel in Cripple Creek, Colorado

– Construction of Augmented Cripple Creek Project has Restarted;
New Casino Hotel is Expected to Open in the Fourth Quarter of 2022

– Third Sports Wagering Provider Launched Operations in December 2020;
Remaining Three “Skins” Expected to Begin Operations Shortly

– As of February 28, 2021, Company Has Approximately $232 Million of Cash and Equivalents,
Including $180 Million in a Construction Reserve Account

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LAS VEGAS, March 08, 2021 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter ended December 31, 2020.

On a consolidated basis, revenues in the fourth quarter of 2020 were $38.3 million, versus $39.0 million in the prior-year period. Net income for the fourth quarter of 2020 rose to $3.5 million, or $0.12 per diluted common share, from a net loss of $4.1 million, or $(0.15) per diluted common share, in the prior-year period. Net income in both periods was affected by the accounting for the fair market value of outstanding warrants, which the Company repurchased in February 2021 for $4.0 million. Adjusted EBITDA(a) in the 2020 fourth quarter was $9.8 million, versus $2.3 million in the fourth quarter of 2019. This strong growth primarily reflects new marketing programs and staffing improvements enacted in late 2019 and early 2020 at the Company’s properties. Results for the fourth quarter of 2020 also include $0.6 million of revenue related to a full quarter of operations for two of the Company’s six permitted sports wagering websites and approximately one week of operations from a third sports wagering website. The Company expects the other three websites to begin operations shortly.

For the full year, total revenues declined to $125.6 million in 2020 from $165.4 million in the prior year, reflecting approximately three months of pandemic-related closures for all of the Company’s properties last spring. Net income for 2020 was $0.1 million, or $0.01 per diluted common share, compared to a net loss of $5.8 million, or $(0.22) per diluted common share, in the prior year. Despite several months of closure, Adjusted EBITDA in 2020 rose 23.3% to $19.7 million from $15.9 million in 2019, reflecting operational and marketing improvements that bore results in the second half of 2020.

“Much like our third quarter, we had a phenomenal fourth quarter,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “The fourth quarter tends to be seasonally weaker than the third quarter, but our properties continued to perform extremely well adjusted for the seasonality. Adjusted EBITDA for the second half of 2020 was more than the total for all of 2019. We now have approximately eight months of successful ‘reset operations’ behind us. While capacity restrictions remain, as well as some additional costs related to the pandemic, so do the structural changes that we have made regarding our marketing and the ways we operate. We continue to believe that these results of the past several months are sustainable.”

Continued Mr. Lee, “Many of the changes to our business operations were in the implementation process prior to the pandemic. For example, at both Bronco Billy’s and Rising Star, we replaced antiquated slot marketing systems late in 2019. With the improved systems, we are now able to provide a better customer experience, while the improved analytics of those systems have allowed us to eliminate unprofitable marketing offerings that cost us more than the incremental revenue they created.

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“Physical improvements that we made in recent years have also helped our results. We refurbished the casino and buffet at the Silver Slipper, for example, in 2019. We built a new restaurant at Rising Star, also in 2019, which now supplants the unprofitable buffet we had been operating. The ferry boat service we implemented at Rising Star in 2018 has now become a contributor to our results when one considers the same-day gaming activity of ferry boat passengers, which we can track with the new system.

“Our sports ‘skins’ also continue to go live. In late 2020, an affiliate of Wynn Resorts launched its sports offering through one of our licenses in Colorado. As of today, two of our three permitted skins are live in Colorado and one of our three permitted skins is live in Indiana. We receive a percentage of defined revenues of each skin, subject to annual minimums. Combined, these three sports wagering websites represent a minimum of $3.5 million of annualized contractual revenue. We continue to expect our three remaining skins to go live shortly. When all six skins are in operation, we should receive a contractual minimum of $7 million per year of sports gaming revenues. Since we incur very little expense related to these operations, almost all of such revenues should result in income.”

Commented Lewis Fanger, Chief Financial Officer of Full House Resorts, “We made significant strides with our balance sheet in recent weeks. In February 2021, we issued $310 million of new 8.25% senior secured notes, marking our debut with the high-yield debt markets. That debt issuance was important for several reasons. First, it replaced our existing floating rate notes with new fixed rate debt, at largely the same interest rate. Our new notes no longer have a quarterly leverage test that we must meet, thereby eliminating the quarterly waiver fees that we were previously incurring after several months of shutdown operations. Second, we used bond proceeds to redeem all of our outstanding warrants totaling approximately one million shares. Using our closing stock price on February 12, the day we completed the warrant redemption, the net repurchase price would have been more than $6.0 million. Our actual repurchase price to redeem the warrants was $4.0 million, a 34% discount to such amount. Most importantly, our new debt issuance included $180 million of proceeds dedicated to the construction of our Cripple Creek project, enabling us to now build that luxury casino hotel all at once, rather than in phases.”

Concluded Mr. Lee, “Prior to completing the funding of our Cripple Creek project, we expanded the project’s size. In November, Colorado voters eliminated betting limits and permitted new table games, which significantly enhanced the already-favorable feasibility of the project. To address this larger opportunity, we increased the size of our Cripple Creek hotel by 67% to 300 guest rooms, leaving other aspects of the project largely unchanged. For various reasons, this required the approval of the Cripple Creek City Council and the city’s Historic Preservation Commission, which we received in January and February. The total remaining investment to complete our Cripple Creek project is approximately $180 million, which was fully funded through our recent debt offering. We believe that our project will be transformational for Cripple Creek. It is not an expansion of our existing Bronco Billy’s casino; it is an entirely new casino hotel, with its own unique name and personality, that happens to be located adjacent to, and behind, Bronco Billy’s. We look forward to disclosing that name and personality at a future date. With funding complete, we recently restarted construction of the project and plan to welcome guests to our new casino hotel beginning in the fourth quarter of 2022. Bronco Billy’s will remain open during construction and points earned in the Bronco Billy’s loyalty program will be redeemable at the new property, which will be connected to Bronco Billy’s.”

Fourth Quarter and Full-Year 2020 Highlights and Subsequent Events

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  • Revenues at Silver Slipper Casino and Hotel in the fourth quarter of 2020 increased 8.1% to $18.3 million from $17.0 million in the prior-year period. Silver Slipper’s operating results improved despite continuing capacity limitations throughout the property’s casino and dining outlets. Adjusted Property EBITDA grew to $5.1 million in the 2020 fourth quarter, an 89.6% increase from $2.7 million in the prior-year period. For the full year, Silver Slipper’s operational performance reflects a focus on marketing and labor improvements, as well as the benefit of numerous investments in the property in recent years. Such investments included a substantial renovation of the casino and the buffet, a renovated porte cochere and other sense-of-arrival improvements, the Beach Club, the Oyster Bar, and the introduction of on-site sports betting. Revenues were $62.5 million in 2020, reflecting its pandemic-related closure for more than two months in early 2020, compared to $73.2 million in 2019. Adjusted Property EBITDA rose to $14.7 million in 2020, an 11.5% increase from $13.2 million in 2019, despite being closed for more than two months in Spring 2020.
  • At Rising Star Casino Resort, revenues declined for the fourth quarter of 2020 to $10.8 million from $11.4 million. This decline reflects pandemic-related limitations on operations and an increase in competition, as a casino near Louisville replaced its original casino boat with a large new casino in December 2019. Additionally, in January 2020, racetrack casinos near Indianapolis began offering live table games. Adjusted Property EBITDA was $3.5 million in the fourth quarter of 2020, a significant increase from $0.2 million in the prior-year period. These strong results reflect the positive impact of a new slot marketing system installed in the fourth quarter of 2019, the launch of an improved loyalty program in June 2020, labor efficiencies from more appropriately matching the operating hours of table games and food and beverage outlets to the demand for such services, a full quarter of operations of one of the Company’s three permitted sports betting “skins” in Indiana, and additional sales of “free play” that the state’s casinos are permitted to transfer 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, as it is permitted to do under state law. Such sales resulted in $2.1 million and $1.0 million of revenue in the fourth quarters of 2020 and 2019, respectively.

    For the full year, revenues and Adjusted Property EBITDA at Rising Star were $31.0 million and $3.8 million, respectively, in 2020, with both amounts including $1.5 million from the sports revenue agreements and reflecting approximately three months of closure in early 2020 due to the pandemic. In 2019, such amounts were $45.6 million and $1.3 million, respectively, including $0.1 million from the sports revenue agreements.

  • At Bronco Billy’s Casino and Hotel in Colorado, revenues declined for the fourth quarter of 2020 to $5.7 million from $6.1 million. The decline was due to state-mandated restrictions on operations in response to the continuing pandemic, including the temporary shutdown of all table games at the property from Spring 2020 until late-February 2021 and a steep reduction in the number of slot machines being operated. Revenues in the fourth quarter of 2020 include $0.3 million from two of the Company’s three permitted sports wagering websites in Colorado, which launched in June 2020 and December 2020, respectively. The remaining sports wagering website is expected to commence operations shortly. Adjusted Property EBITDA rose to $1.7 million in the fourth quarter of 2020 from a loss of $0.1 million in the prior-year period. The increase in Adjusted Property EBITDA was due to an improved customer experience and analytics from Bronco Billy’s new slot marketing system, labor controls (partially offset by certain labor expenses related to the pandemic), and the launch of two sports “skins” in 2020. Results also benefited from the closure of the small, free-standing Christmas Casino, which operated from November 2018 to September 2020. While the unique decor of the small casino resulted in an increase in overall revenues, the increase was not sufficient to offset the additional costs of operations.

    For the full year, revenues and Adjusted Property EBITDA at Bronco Billy’s were $20.3 million and $4.5 million, respectively, in 2020, with both amounts including $0.7 million from the sports revenue agreements and reflecting approximately three months of closure in early 2020 due to the pandemic. In 2019, such amounts were $27.5 million and $3.0 million, respectively. None of Bronco Billy’s sports agreements were active in 2019.

  • In November 2020, Colorado voters approved favorable changes to the state’s gaming laws, including the elimination of betting limits and allowing Colorado casinos to offer new table games, such as baccarat and pai gow poker. To reflect the new opportunity created by those changes, the Company increased the size of its planned Cripple Creek expansion by 67% to approximately 300 luxury guest rooms and suites, from its previously planned 180 guest rooms. Such plans were approved by the Cripple Creek Historic Preservation Commission and Cripple Creek City Council in January and February 2021. Other planned amenities for the new casino hotel – including a new parking garage, meeting and entertainment space, outdoor rooftop pool, spa, and fine-dining restaurant – remain largely unchanged. The expected remaining investment to complete the Cripple Creek expansion is $180 million, which the Company financed through the issuance of new senior secured notes, as further discussed below. With funding fully in place, the Company no longer intends to complete the project in phases, but rather all at once, with an expected opening in the fourth quarter of 2022. In late-February 2021, the Company began relocating some significant storm sewers and other underground utilities that transit the project site, allowing construction of the foundations to begin within the next few weeks. A live webcam of the construction project is available at www.BroncoBillysCasino.com.
  • The Northern Nevada segment consists of the Grand Lodge and Stockman’s casinos and is historically the smallest of the Company’s segments. This segment of the Company’s operations has been the most negatively affected by the COVID-19 pandemic. Revenues were $3.4 million and $4.6 million for the fourth quarters of 2020 and 2019, respectively. Adjusted Property EBITDA was $0.4 million and $0.6 million, respectively. For the full year, revenues were $11.7 million in 2020, reflecting approximately three months of pandemic-related closures, versus $19.1 million in 2019. Adjusted Property EBITDA was $0.5 million in 2020 and $3.2 million in 2019.

    Grand Lodge Casino is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, Nevada. Its customer base includes the local community, as well as visitors to the Hyatt. The pandemic has adversely affected visitation to the Hyatt, including visitation for its meeting and convention business. The pandemic also affected the capacity of nearby ski areas this winter. To ensure social distancing, ski areas are currently required to operate their lifts at substantially less than full capacity. Many ski areas have also limited lift ticket sales to attempt to control the resultant lift lines. This has affected visitation to the region, including to the Hyatt and our casino.

    Stockman’s Casino is in Fallon, Nevada, home to a large Naval Air Station, where Navy pilots and crews visit for training. To protect the health of both its servicemembers and the host community, the Navy has restricted much of its personnel from leaving the base.

  • On February 12, 2021, the Company closed on its issuance of $310 million of new 8.25% senior secured notes due 2028 (the “2028 Notes”). The proceeds from the offering were used to redeem all $106.8 million of the Company’s senior secured notes due 2024 (the “2024 Notes”) and to redeem all outstanding warrants totaling 1,006,568 shares. Additionally, the proceeds will be used to fund the Company’s expansion project in Cripple Creek, Colorado, to pay expenses related to the offer and sale of the 2028 Notes, and for general corporate purposes.
  • The Company continues to be one of three bidders for the opportunity to build a new casino in Waukegan, Illinois, an area midway between Chicago and Milwaukee with high population density and no existing casino. The Company’s proposal involves construction of a temporary casino, which would generate tax revenues and jobs quickly. Profits from the temporary casino would help fund a permanent casino on the same site, to be named “American Place.” The site is owned by the City of Waukegan and would be leased by the Company.

    In October 2020, the Company signed a commitment letter with a multi-billion-dollar investment management firm that has experience with casino construction projects. The commitment letter anticipates fully funding the project with non-recourse development capital. The Company would be required to invest $25 million in the project as equity, will own no less than 60% of the project, and will receive management fees for operating the casino and related amenities. The commitment letter is conditioned upon the Company being awarded the Waukegan casino license by the Illinois Gaming Board and the investment firm’s further due diligence review, among other items.

Liquidity and Capital Resources
As of December 31, 2020, the Company had $37.7 million in cash and cash equivalents, $106.8 million in outstanding senior secured notes due 2024, and $5.6 million in outstanding unsecured loans obtained under the CARES Act. As discussed above, in February 2021, the Company issued $310 million of new senior secured notes due 2028 and used a portion of the proceeds to redeem all $106.8 million of its outstanding 2024 Notes. As of February 28, 2021, the Company had approximately $232 million of cash and equivalents (including $180 million held in a construction reserve account).

Conference Call Information
The Company will host a conference call for investors today, March 8, 2021, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2020 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 (866) 248-8441 or, for international callers, (323) 289-6576.

A replay of the conference call will be available shortly after the conclusion of the call through March 22, 2021. 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 6818562.

(a) Reconciliation of Non-GAAP Financial Measure
The Company utilizes Adjusted Property 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 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 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. The Company also utilizes Adjusted EBITDA (a non-GAAP measure), which is defined as Adjusted Property 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.

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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, 
       2020        2019        2020        2019  
Revenues                        
Casino   $ 27,196     $ 25,998     $ 90,812     $ 113,390  
Food and beverage     5,170       8,286       19,766       35,069  
Hotel     2,206       2,692       7,410       11,535  
Other operations, including online/mobile sports     3,697       2,040       7,601       5,438  
      38,269       39,016       125,589       165,432  
Operating costs and expenses                        
Casino     9,863       16,658       33,749       50,673  
Food and beverage     4,925       4,827       19,378       33,950  
Hotel     1,110       463       3,773       5,608  
Other operations     414       951       1,855       3,557  
Selling, general and administrative     12,253       13,881       47,585       56,052  
Project development costs           534       423       1,037  
Depreciation and amortization     1,798       2,068       7,666       8,331  
Loss on disposal of assets, net     245       3       684       8  
      30,608       39,385       115,113       159,216  
Operating income (loss)     7,661       (369 )     10,476       6,216  
Other expense, net                        
Interest expense, net of capitalized interest     (2,494 )     (2,666 )     (9,823 )     (10,728 )
Adjustment to fair value of warrants     (1,757 )     (1,069 )     (598 )     (1,230 )
      (4,251 )     (3,735 )     (10,421 )     (11,958 )
Income (loss) before income taxes     3,410       (4,104 )     55       (5,742 )
Income tax (benefit) expense     (90 )     29       (92 )     80  
Net income (loss)   $ 3,500     $ (4,133 )   $ 147     $ (5,822 )
                         
Basic earnings (loss) per share   $ 0.13     $ (0.15 )   $ 0.01     $ (0.22 )
Diluted earnings (loss) per share   $ 0.12     $ (0.15 )   $ 0.01     $ (0.22 )
                         
Basic weighted average number of common shares outstanding     27,114       27,029       27,094       26,980  
Diluted weighted average number of common shares outstanding     28,428       27,029       27,784       26,980  

Full House Resorts, Inc.
Supplemental Information
Segment Revenues and Adjusted Property EBITDA
(In Thousands, Unaudited)

                         
    Three Months Ended   Year Ended
    December 31,    December 31, 
    2020        2019        2020        2019  
Revenues                        
Silver Slipper Casino and Hotel   $ 18,334     $ 16,961     $ 62,513     $ 73,201  
Rising Star Casino Resort(1)     10,802       11,419       31,028       45,620  
Bronco Billy’s Casino and Hotel(1)     5,707       6,076       20,316       27,507  
Northern Nevada Casinos     3,426       4,560       11,732       19,104  
    $ 38,269     $ 39,016     $ 125,589     $ 165,432  
                         
Adjusted Property EBITDA(2) and Adjusted EBITDA                            
Silver Slipper Casino and Hotel   $ 5,140     $ 2,711     $ 14,669     $ 13,159  
Rising Star Casino Resort(1)     3,493       167       3,841       1,330  
Bronco Billy’s Casino and Hotel(1)     1,683       (74 )     4,479       3,000  
Northern Nevada Casinos     376       645       454       3,161  
Adjusted Property EBITDA     10,692       3,449       23,443       20,650  
Corporate     (890 )     (1,128 )     (3,789 )     (4,710 )
Adjusted EBITDA   $ 9,802     $ 2,321     $ 19,654     $ 15,940  

(1)   Includes amounts related to the property’s contracted sports revenue in 2020.
(2)   The Company utilizes Adjusted Property EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level.

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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, 
       2020        2019        2020        2019  
Net income (loss)   $ 3,500     $ (4,133 )   $ 147     $ (5,822 )
Income tax (benefit) expense     (90 )     29       (92 )     80  
Interest expense, net of amounts capitalized     2,494       2,666       9,823       10,728  
Adjustment to fair value of warrants     1,757       1,069       598       1,230  
Operating income (loss)     7,661       (369 )     10,476       6,216  
Project development costs           534       423       1,037  
Depreciation and amortization     1,798       2,068       7,666       8,331  
Loss on disposal of assets, net     245       3       684       8  
Stock-based compensation     98       85       405       348  
Adjusted EBITDA   $ 9,802     $ 2,321     $ 19,654     $ 15,940  

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Property EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)

                               
Three Months Ended December 31, 2020
                                           Adjusted
                            Property
    Operating   Depreciation   Loss on   Stock-   EBITDA and
    Income   and   Disposal   Based   Adjusted
    (Loss)   Amortization   of Assets   Compensation   EBITDA
Casino properties                              
Silver Slipper Casino and Hotel   $ 4,239     $ 657   $ 244   $   $ 5,140  
Rising Star Casino Resort(1)     2,872       621             3,493  
Bronco Billy’s Casino and Hotel(1)     1,341       342             1,683  
Northern Nevada Casinos     236       140             376  
      8,688       1,760     244         10,692  
Other operations                                   
Corporate     (1,027 )     38     1     98     (890 )
    $ 7,661     $ 1,798   $ 245   $ 98   $ 9,802  
                                     
Three Months Ended December 31, 2019
                                  Adjusted
                                Property
    Operating   Depreciation   Loss on   Project   Stock-   EBITDA and
    Income   and   Disposal   Development   Based   Adjusted
    (Loss)   Amortization   of Assets   Costs   Compensation   EBITDA
Casino properties                                        
Silver Slipper Casino and Hotel   $ 1,856     $ 855   $   $   $   $ 2,711  
Rising Star Casino Resort     (459 )     626                 167  
Bronco Billy’s Casino and Hotel     (473 )     396     3             (74 )
Northern Nevada Casinos     492       153                 645  
      1,416       2,030     3             3,449  
Other operations                                        
Corporate     (1,785 )     38         534     85     (1,128 )
    $ (369 )   $ 2,068   $ 3   $ 534   $ 85   $ 2,321  

(1)   Includes amounts related to the property’s contracted sports revenue.

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Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Property EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)

                                     
Year Ended December 31, 2020
                                  Adjusted
                                  Property
    Operating   Depreciation   Loss on   Project   Stock-   EBITDA and
    Income   and   Disposal   Development   Based   Adjusted
       (Loss)      Amortization      of Assets      Costs      Compensation      EBITDA
Casino properties                                        
Silver Slipper Casino and Hotel   $ 11,421     $ 3,004   $ 244   $   $   $ 14,669  
Rising Star Casino Resort(1)     1,363       2,478                 3,841  
Bronco Billy’s Casino and Hotel(1)     3,025       1,450     4             4,479  
Northern Nevada Casinos     (562 )     581     435             454  
      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  
                                     
Year Ended December 31, 2019
                                                    Adjusted
                                Property
    Operating   Depreciation   Loss on   Project   Stock-   EBITDA and
    Income   and   Disposal   Development   Based   Adjusted
    (Loss)   Amortization   of Assets   Costs   Compensation   EBITDA
Casino properties                                    
Silver Slipper Casino and Hotel   $ 9,700     $ 3,454   $ 5   $   $   $ 13,159  
Rising Star Casino Resort     (1,096 )     2,426                 1,330  
Bronco Billy’s Casino and Hotel     1,297       1,700     3             3,000  
Northern Nevada Casinos     2,562       599                 3,161  
      12,463       8,179     8             20,650  
Other operations                                          
Corporate     (6,247 )     152         1,037     348     (4,710 )
    $ 6,216     $ 8,331   $ 8   $ 1,037   $ 348   $ 15,940  

(1)    Includes amounts related to the property’s contracted sports revenue.

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 results of operations; our anticipated use of proceeds from the issuance of the 2028 Notes; our expected construction budget, estimated completion date, and the opening timeline for the Cripple Creek project; our expectations regarding our sports revenue agreements with third-party providers, including the expected revenues and expenses and the expected timing for the launch of the sports betting ‘skins’ related thereto; and our expectations regarding the Waukegan proposal, including our ability to obtain the casino license and, if we are awarded such license, to obtain financing. 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 on our business, construction projects, indebtedness, financial condition and operating results; actions by government officials at the federal, state or local level with respect to steps to be taken, including, without limitation, additional shutdowns, travel restrictions, social distancing measures or shelter-in-place orders, in connection with the COVID-19 pandemic; our ability to effectively manage and control expenses as a result of the pandemic; our ability to complete the planned Cripple Creek expansion project on-time and on-budget; 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; 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; and Stockman’s Casino in Fallon, Nevada. The Company also operates the Grand Lodge Casino at the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada under a lease agreement with the Hyatt organization. The Company is currently constructing a new luxury hotel and casino in Cripple Creek, Colorado, adjacent to its existing Bronco Billy’s property. Further information about Full House Resorts can be viewed on its website at www.fullhouseresorts.com.

CONTACT: Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com

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Nasdaq:FLL

Full House Resorts Announces Fourth Quarter and Full-Year Results

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full-house-resorts-announces-fourth-quarter-and-full-year-results

– Revenues Increased 66.4% to $60.0 Million in the Fourth Quarter of 2023;
Annual Revenues Grew 47.6%

– Chamonix Casino Hotel Began Its Phased Opening on December 27, 2023

– Approvals Received to Operate American Place in Its Temporary Configuration Until August 2027

LAS VEGAS, March 05, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2023.

“After several years of construction, we are entering a new phase for our company,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “We opened two new casinos during 2023: American Place in Waukegan, Illinois, and Chamonix, in Cripple Creek, Colorado. Our first new casino – American Place – celebrated its one-year anniversary a few weeks ago. As expected, it continues to ramp up its operations. In December 2023, American Place reached a new monthly gaming revenue record of $8.2 million, as reported by the Illinois Gaming Board. It subsequently set a new monthly all-time record for revenues in February 2024, despite it being a short month. We expect American Place’s gaming revenues to continue to grow in 2024, with the property’s high-end North Shore Steaks & Seafood now open and overall awareness continuing to improve. American Place is currently in a temporary facility, built in less than one year after being chosen by the Illinois Gaming Board to develop this newly-created license. We recently received the necessary approvals to operate the temporary facility until August 2027, providing us with meaningful additional time before the anticipated opening of the permanent American Place facility.

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“On December 27, we welcomed guests to our newest casino, Chamonix Casino Hotel in Cripple Creek, Colorado, which is less than one hour from Colorado Springs and approximately two hours from Denver. By design, it was a soft opening, with the casino, meeting rooms, and approximately 40% of the property’s guest rooms initially open. Over the past few weeks, we have continued the rollout of the property’s amenities, including completion of the destination’s remaining hotel rooms and its parking garage. We are currently putting the finishing touches on 980 Prime, Chamonix’s high-end steakhouse led by famed chef Barry Dakake. We expect it to open in late March. Chamonix was designed to be the most beautiful casino in the state of Colorado, and we look forward to the completion of all of its amenities over the next few months.”

On a consolidated basis, revenues in the fourth quarter of 2023 were $60.0 million, a 66.4% increase from $36.1 million in the prior-year period. These results primarily reflect the February 2023 opening of American Place. Net loss for the fourth quarter of 2023 was $12.5 million, or $(0.36) per diluted common share, which includes $3.1 million of preopening and development costs, primarily related to the phased opening of our Chamonix project, and significant depreciation and amortization charges related to the temporary American Place facility. In the prior-year period, net loss was $7.0 million, or $(0.20) per diluted common share, reflecting $4.8 million of preopening and development costs. Adjusted EBITDA(a) rose 87.4% in the fourth quarter of 2023 to $7.3 million, compared to $3.9 million in the prior-year period.

For the full year, revenues in 2023 were $241.1 million, a 47.6% increase from $163.3 million in the prior year. These results reflect the February 2023 opening of American Place, as well as $5.8 million of accelerated revenue under two of our sports wagering agreements with third-party operators that ceased operations during the third quarter of 2023. Net loss in 2023 was $24.9 million, or $(0.72) per diluted common share, which includes $15.7 million of preopening and development costs, primarily related to our Chamonix construction project, and significant depreciation and amortization charges related to the temporary American Place facility. For 2022, net loss was $14.8 million, or $(0.43) per diluted common share, reflecting $9.8 million of preopening and development costs. Adjusted EBITDA was $48.6 million in 2023, rising 51.1% from $32.1 million in the prior-year period, reflecting the items mentioned above.

“Our Company recently reached an inflection point,” noted Mr. Lee. “In 2023, our total cash interest expense was approximately $38.4 million and Adjusted EBITDA, as noted, was $48.6 million, despite construction disruptions in Colorado and the gradual ramp-up of operations at American Place. Our debt during that period included substantially all of the funding for Chamonix, which did not open until year-end. While some construction continues at Chamonix, the bulk of our capital expenditures for these projects is behind us. This fact, along with expected future earnings from these new facilities, should result in the generation of significant free cash flow over the next few years. Also, recognize that we continue to have significant tax-loss carryforwards and we benefit, for tax purposes, from accelerated depreciation related to our new developments.”

Added Mr. Lee, “Regarding American Place, the State of Illinois recently passed legislation allowing us to operate our temporary facility until August 2027. This was because a tribal entity that operates a competing casino in Wisconsin filed a lawsuit against the City of Waukegan and the Illinois Gaming Board, alleging that the tribe was not provided due consideration in its effort to obtain the Waukegan gaming license. We were chosen for that license after a robust public process, whereby an independent consultant hired by the City of Waukegan rated the tribal proposal as being inferior in most respects to all four of the other proposals, including that of Full House Resorts. We believe the lawsuit is without merit. The City and the Illinois Gaming Board have sought review of the dispute by the Illinois Supreme Court, which has agreed to hear the case. We anticipate a ruling by that court by early 2025.”

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Concluded Mr. Lee, “We estimate that construction of the permanent American Place facility will require approximately two years, with a significant portion of the project’s capital expenditures not expected until the second half of 2026 and during 2027. We believe that the Company’s operating cash flows should be able to fund significant portions of the construction cost for the permanent American Place facility between now and its anticipated opening in 2027. For the remaining balance, we remain highly confident in our ability to fund it entirely in the debt capital markets at the appropriate time.”

Fourth 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 $49.1 million in the fourth quarter of 2023, a 78.8% increase from $27.5 million in the prior-year period. Adjusted Segment EBITDA rose to $7.2 million, a 57.9% increase from $4.6 million in the prior-year period. These results reflect the February 17, 2023 opening of American Place, our casino located in Waukegan, Illinois. In the fourth quarter of 2023, American Place generated $22.4 million of revenue and $3.9 million of Adjusted Property EBITDA. American Place’s results reflect some winter seasonality, as well as elevated marketing expenses related to a marketing campaign that is expected to benefit the casino in the longer-run.

    For the full year, this segment similarly benefited from the opening of American Place in February 2023. Revenues increased 60.4% from $120.0 million to $192.4 million, and Adjusted Segment EBITDA grew 48.0% from $26.4 million to $39.0 million. Of such amount, American Place contributed $77.0 million and $18.4 million to the segment’s revenues and Adjusted Segment EBITDA, respectively.

  • 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 Hotel, and Chamonix Casino Hotel, which opened on December 27, 2023. Revenues for the segment rose 14.0% to $8.6 million in the fourth quarter of 2023, versus $7.5 million in the prior-year period. Adjusted Segment EBITDA of $(0.1) million in the fourth quarter of 2023 compares to $(0.3) million in the prior-year period. Results in both periods reflect the temporary loss of all on-site parking and on-site hotel rooms at Bronco Billy’s to accommodate the construction of neighboring Chamonix. With Chamonix now open, Bronco Billy’s is benefiting from its integration with Chamonix, including its new parking garage and approximately 300 on-site guest rooms.

    For the year, revenues and Adjusted Segment EBITDA were $35.9 million and $2.4 million in 2023, respectively. In 2022, such amounts were $36.1 million and $4.2 million, respectively. As noted above, construction-related disruptions at Bronco Billy’s are expected to dissipate in 2024 with the return of on-site guest rooms and on-site parking.

  • 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 fourth quarter of 2023 were $2.3 million and $1.3 million, respectively. These results reflect the contractual launch of our permitted Illinois sports skin in August 2023, as well as a provision for credit losses on sports wagering receivables of $1.0 million, which negatively affected Adjusted Segment EBITDA. For the fourth quarter of 2022, both revenues and Adjusted Segment EBITDA were $1.1 million.

    For the year, this segment’s revenues grew 78.1%, from $7.2 million in 2022 to $12.8 million in 2023, and Adjusted Segment EBITDA rose 63.6%, from $7.1 million to $11.7 million. Results for 2022 reflect the acceleration of revenues under two of our sports wagering agreements with third-party operators that ceased operations in May 2022. In 2023, results increased due to the launch of our Illinois sports skin noted above, the launch of a replacement operator in Colorado in March 2023, and accelerated revenues related to two other sports wagering agreements with operators that ceased operations during the third quarter of 2023. Additionally, the $1.0 million provision for credit losses, as mentioned, negatively affected Adjusted Segment EBITDA during 2023.

    The Company is currently permitted to operate three sports skins in Colorado, three in Indiana, and one in Illinois. Of such permitted skins, two sports skins are currently live in Colorado, one in Indiana, and one in Illinois. Under our agreements with various third parties to operate such skins, we receive a percentage of revenues, as defined in the contracts, subject to an annualized minimum amount that currently totals $8 million. We continue to evaluate whether to operate our remaining idle skins ourselves or to have other third parties operate them. However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.

Liquidity and Capital Resources
As of December 31, 2023, we had $73.8 million in cash and cash equivalents, including $37.6 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, March 5, 2024, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2023 fourth 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 March 19, 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 13744400.

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(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 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, certain 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.

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, certain 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 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.

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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,
    2023
  2022
  2023
  2022
Revenues                        
Casino   $ 45,347     $ 25,583     $ 176,933     $ 113,876  
Food and beverage     8,561       6,239       33,980       26,494  
Hotel     2,376       2,206       9,428       9,282  
Other operations, including contracted sports wagering     3,745       2,054       20,719       13,629  
      60,029       36,082       241,060       163,281  
Operating costs and expenses                        
Casino     18,290       9,515       68,061       39,788  
Food and beverage     8,425       6,238       33,240       26,372  
Hotel     1,229       1,282       4,840       4,806  
Other operations     1,620       574       3,498       2,168  
Selling, general and administrative     23,923       14,911       85,746       59,706  
Project development costs, net     8       195       53       228  
Preopening costs     3,051       4,644       15,685       9,558  
Depreciation and amortization     8,610       1,918       31,092       7,930  
Loss on disposal of assets           39       7       42  
      65,156       39,316       242,222       150,598  
Operating (loss) income     (5,127 )     (3,234 )     (1,162 )     12,683  
Other (expense) income                        
Interest expense, net     (6,658 )     (3,763 )     (22,977 )     (22,988 )
Loss on modification of debt                       (4,530 )
Gain on settlements                 384        
      (6,658 )     (3,763 )     (22,593 )     (27,518 )
Loss before income taxes     (11,785 )     (6,997 )     (23,755 )     (14,835 )
Income tax expense (benefit)     697       (15 )     1,149       (31 )
Net loss   $ (12,482 )   $ (6,982 )   $ (24,904 )   $ (14,804 )
                         
Basic loss per share   $ (0.36 )   $ (0.20 )   $ (0.72 )   $ (0.43 )
Diluted loss per share   $ (0.36 )   $ (0.20 )   $ (0.72 )   $ (0.43 )
                         
Basic weighted average number of common shares outstanding     34,588       34,401       34,520       34,355  
Diluted weighted average number of common shares outstanding     34,588       34,401       34,520       34,355  
                                 

Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)

                         
    Three Months Ended   Year Ended
    December 31,    December 31, 
    2023
  2022
  2023
  2022
Revenues                        
Midwest & South   $ 49,094     $ 27,451     $ 192,358     $ 119,950  
West     8,588       7,534       35,888       36,135  
Contracted Sports Wagering     2,347       1,097       12,814       7,196  
    $ 60,029     $ 36,082     $ 241,060     $ 163,281  
Adjusted Segment EBITDA(1) and Adjusted EBITDA                        
Midwest & South   $ 7,198     $ 4,560     $ 39,028     $ 26,376  
West     (130 )     (287 )     2,408       4,220  
Contracted Sports Wagering     1,290       1,079       11,663       7,127  
Adjusted Segment EBITDA     8,358       5,352       53,099       37,723  
Corporate     (1,063 )     (1,459 )     (4,542 )     (5,589 )
Adjusted EBITDA   $ 7,295     $ 3,893     $ 48,557     $ 32,134  

__________
(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         Year Ended      
    December 31,    Increase /   December 31,    Increase /
Reporting segments   2023
  2022   (Decrease)   2023   2022   (Decrease)
Midwest & South                                    
Midwest & South
same-store total revenues(1)
  $ 26,744     $ 27,451   (2.6 ) %   $ 115,371   $ 119,950   (3.8 ) %
American Place     22,350         N.M.         76,987       N.M.    
Midwest & South total revenues   $ 49,094     $ 27,451   78.8   %   $ 192,358   $ 119,950   60.4   %
                                     
Midwest & South same-store
Adjusted Segment EBITDA(1)
  $ 3,280     $ 4,560   (28.1 ) %   $ 20,619   $ 26,376   (21.8 ) %
American Place     3,918         N.M.         18,409       N.M.    
Midwest & South
Adjusted Segment EBITDA
  $ 7,198     $ 4,560   57.9   %   $ 39,028   $ 26,376   48.0   %
                                     
Contracted Sports Wagering                                    
Contracted Sports Wagering
same-store total revenues(2)
  $ 841     $ 1,097   (23.3 ) %   $ 4,773   $ 5,555   (14.1 ) %
Accelerated revenues due to
contract terminations(3)
            N.M.         5,794     1,641   253.1   %
Illinois     1,506         N.M.         2,247       N.M.    
Contracted Sports Wagering
total revenues
  $ 2,347     $ 1,097   113.9   %   $ 12,814   $ 7,196   78.1   %
                                     
Contracted Sports Wagering same-store
Adjusted Segment EBITDA(2)
  $ (140 )   $ 1,079   (113.0 ) %   $ 3,717   $ 5,486   (32.2 ) %
Accelerated revenues due to
contract terminations(3)
            N.M.         5,794     1,641   253.1   %
Illinois     1,430         N.M.         2,152       N.M.    
Contracted Sports Wagering
Adjusted Segment EBITDA
  $ 1,290     $ 1,079   19.6   %   $ 11,663   $ 7,127   63.6   %

__________
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 two sports skins that ceased operations in the third quarter of 2023, and two sports skins that ceased operations in the second quarter of 2022.

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Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Loss and Operating Income (Loss) to Adjusted EBITDA
(In thousands, Unaudited)

                       
  Three Months Ended   Year Ended
  December 31,    December 31, 
  2023
  2022
  2023
  2022
Net loss $ (12,482 )   $ (6,982 )   $ (24,904 )   $ (14,804 )
Income tax expense (benefit)   697       (15 )     1,149       (31 )
Interest expense, net   6,658       3,763       22,977       22,988  
Loss on modification of debt                     4,530  
Gain on settlements               (384 )      
Operating (loss) income   (5,127 )     (3,234 )     (1,162 )     12,683  
Project development costs, net   8       195       53       228  
Preopening costs   3,051       4,644       15,685       9,558  
Depreciation and amortization   8,610       1,918       31,092       7,930  
Loss on disposal of assets         39       7       42  
Stock-based compensation   753       331       2,882       1,693  
Adjusted EBITDA $ 7,295     $ 3,893     $ 48,557     $ 32,134  


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 December 31, 2023
                                  Adjusted
                                  Segment
    Operating   Depreciation   Project       Stock-   EBITDA and
    Income   and   Development   Preopening   Based   Adjusted
    (Loss)   Amortization   Costs   Costs   Compensation   EBITDA
Reporting segments                                        
Midwest & South   $ (894 )   $ 7,953   $   $ 139   $   $ 7,198  
West     (3,669 )     627         2,912         (130 )
Contracted Sports Wagering     1,290                       1,290  
      (3,273 )     8,580         3,051         8,358  
Other operations                                  
Corporate     (1,854 )     30     8         753     (1,063 )
    $ (5,127 )   $ 8,610   $ 8   $ 3,051   $ 753   $ 7,295  

                                           
Three Months Ended December 31, 2022
                                        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   $ (1,035 )   $ 1,318   $ 39   $   $ 4,238   $   $ 4,560  
West     (1,260 )     567             406         (287 )
Contracted Sports Wagering     1,079                           1,079  
      (1,216 )     1,885     39         4,644         5,352  
Other operations                                        
Corporate     (2,018 )     33         195         331     (1,459 )
    $ (3,234 )   $ 1,918   $ 39   $ 195   $ 4,644   $ 331   $ 3,893  


Full House Resorts, Inc. and Subsidiaries

Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)

                                           
Year Ended December 31, 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   $ 428     $ 28,593   $ 7   $   $ 10,000   $   $ 39,028  
West     (5,654 )     2,377             5,685         2,408  
Contracted Sports Wagering     11,663                           11,663  
      6,437       30,970     7         15,685         53,099  
Other operations                                        
Corporate     (7,599 )     122         53         2,882     (4,542 )
    $ (1,162 )   $ 31,092   $ 7   $ 53   $ 15,685   $ 2,882   $ 48,557  
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Year Ended December 31, 2022
                Loss /                     Adjusted
                (gain)                     Segment
    Operating   Depreciation   on   Project       Stock-   EBITDA and
    Income   and   Disposal   Development   Preopening   Based   Adjusted
    (Loss)   Amortization   of Assets   Costs   Costs   Compensation   EBITDA
Reporting segments                                          
Midwest & South   $ 13,053     $ 5,150   $ 47     $   $ 8,126   $   $ 26,376  
West     394       2,399     (5 )         1,432         4,220  
Contracted Sports
Wagering
    7,127                             7,127  
      20,574       7,549     42           9,558         37,723  
Other operations                                          
Corporate     (7,891 )     381           228         1,693     (5,589 )
    $ 12,683     $ 7,930   $ 42     $ 228   $ 9,558   $ 1,693   $ 32,134  


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; our expectations regarding the legal proceedings related to the process whereby we were granted the gaming license for American Place; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; and our expectations regarding the operation and usage of our available idle sports skins. 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 the amenities at Chamonix; 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; 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 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. 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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Nasdaq:FLL

Full House Resorts Announces Fourth Quarter Earnings Release Date

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LAS VEGAS, Feb. 09, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its fourth quarter 2023 and full-year financial results on Tuesday, March 5, 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 March 19, 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 13744400.

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 The Temporary by American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino and Hotel, 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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Nasdaq:FLL

Chamonix, Colorado’s Newest and Most Luxurious Casino Hotel, Opens at Noon on Wednesday, December 27, 2023

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Located in charming Cripple Creek, Chamonix is conveniently located less than an hour from Colorado Springs and approximately two hours from Denver

CRIPPLE CREEK, Colo., Dec. 26, 2023 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced the opening details for its newest gaming destination – Chamonix Casino Hotel. Chamonix’s stylish new casino and luxurious 300-guestroom hotel effortlessly blend Colorado comfort with classic European elegance. It is located in historic Cripple Creek, approximately 45 miles from Colorado Springs and 80 miles from Denver’s southern suburbs. Chamonix is adjacent to – and integrated with – Bronco Billy’s Casino, also owned by Full House Resorts.

Chamonix features an elegant casino floor, with a wide variety of the newest slot machines, a high-limit slot salon, and the state’s most elegant table games area. Many of Chamonix’s hotel guestrooms and suites offer balconies and sweeping views of Cripple Creek, Pikes Peak and the spectacular Sangre de Cristo mountains.

On Wednesday at noon, Chamonix will open its entire casino, a portion of its 300-guestroom hotel, and its convenient valet, garage and surface parking. It will operate a temporary restaurant (Chamonix Bistro) and buffet in its elegant meeting room area. Within a week, the Company expects to open the balance of its guestrooms. In approximately one month, Chamonix plans to open its high-end 980 Prime restaurant, featuring the cuisine and supervision of Las Vegas celebrity chef Barry Dakake. Shortly thereafter, Chamonix will unveil Ore and Alloy, its freestanding jewelry and luxury retail store, and its opulent Chamonix Spa. The spa features a rooftop pool and deck; winter garden; large workout room with modern exercise equipment; eight massage rooms; and an assortment of saunas, steam rooms and other amenities. The spa also offers a full-service salon with hairdressers, barbers, and manicure and pedicure capabilities. In the spring, the adjoining Bronco Billy’s Casino will introduce its new Italian restaurant, Firenze.

Chamonix is named after the “Queen of Alpine” resorts in France, located at the foot of Mont Blanc and site of the first Winter Olympics in 1924. The name is particularly appropriate, as Colorado Springs is home to the U.S. Olympic Committee and Training Center. Our Chamonix destination in Colorado will add to the region’s century of high-end hospitality, which includes the world’s longest-running Forbes Five-Star and AAA Five-Diamond resort.

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“Chamonix is a special place, unlike any other casino hotel in the state. It offers a high-end, Las Vegas experience in our beautiful Colorado mountain setting,” said Baxter Lee, General Manager of Chamonix Casino Hotel. “We are overjoyed to open Chamonix’s doors on December 27 and to welcome our friends from Colorado and beyond.”

For more information on Chamonix Casino Hotel or to reserve a room, please visit www.ChamonixCO.com.

About Full House Resorts, Inc.
Full House Resorts (Nasdaq: FLL) owns, leases, develops and operates gaming facilities throughout the country. Our properties include Chamonix Casino Hotel and Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; 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.

Forward-looking Statements
This press release may contain 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 the opening timeline for Chamonix and its expected amenities. 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. 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.

CONTACT: Media:
Tyler Rabel
Two by Four
[email protected]
(312) 445-4728

Investors:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
(702) 221-7800

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