Nasdaq:FLL
Full House Resorts Announces Strong Second Quarter Results
– Revenues Increase 226.9% Over Prior-Year’s Second Quarter
– Operating Income Improved to $12.2 Million from an Operating Loss of $4.2 Million;
Net Income Improved to $5.5 Million from a Net Loss of $6.7 Million;
Adjusted EBITDA Increased to $14.9 Million from an Adjusted EBITDA Loss of $1.4 Million
– Construction of Chamonix Casino Hotel Continues
– Two Sports Wagering Providers Launched Operations in April 2021;
Five of Six Permitted “Skins” are Now Operating
LAS VEGAS, Aug. 10, 2021 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the second quarter ended June 30, 2021.
On a consolidated basis, revenues in the second quarter of 2021 were $47.4 million, a 226.9% increase from $14.5 million in the prior-year period. The prior-year period reflects the pandemic-related closure of all of the Company’s properties from mid-March 2020 through late-May 2020 for Silver Slipper, and through June 2020 for its other properties. Net income for the second quarter of 2021 improved to $5.5 million, or $0.15 per diluted common share, from a net loss of $6.7 million, or $(0.25) per diluted common share, in the prior-year period. Net loss in the 2020 period was affected by an adjustment to the fair market value of outstanding warrants, all of which the Company repurchased and retired in February 2021. Adjusted EBITDA(a) in the 2021 second quarter was $14.9 million, versus an Adjusted EBITDA loss of $1.4 million in the second quarter of 2020. The strong growth in the 2021 period was due to operational and marketing improvements that bore results beginning in the second half of 2020 and continuing through the second quarter of 2021, as well as the mandated closures noted above. Results for the second quarter of 2021 also include $1.5 million of revenue related to the Company’s Contracted Sports Wagering segment. Currently, five of the Company’s six permitted sports wagering “skins” in Indiana and Colorado are live, as two additional sports wagering websites launched on April 1 and April 23, 2021. The last remaining sports skin is expected to begin operations in the coming months.
“As with last quarter, our financial results continue to benefit from structural changes throughout the company,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Revenues in the second quarter of 2021 increased approximately 227%, reflecting the mandated closure of our properties for much of last year’s second quarter. Adjusted EBITDA increased by more than $16 million to $14.9 million in the second quarter of 2021, reflecting labor and marketing improvements. For the year-to-date period, Adjusted EBITDA totaled $25.7 million. These operating results are significantly above not only the 2020 period, but also meaningfully above any second quarter or first-half results in at least the past five years.
“These strong continued results have allowed us to continue to re-invest in, and improve, our properties. For example, with the ramp-up of our new marketing systems at Bronco Billy’s and Rising Star largely complete, we now look forward to upgrading the casino marketing systems at our two Nevada properties, scheduled for this year’s fourth quarter. Our Silver Slipper property, after several years of adding new amenities and with a new exterior color scheme, is essentially a new and reinvigorated destination. We also continue to invest in new slot product throughout the Company. In many ways, our current results are the product of several years of investments in our casinos and new technology, as well as the diligent efforts of our team across the country.”
Continued Mr. Lee, “At our Chamonix project in Cripple Creek, we have completed the major portion of the on-site utility work. Installation of micro-piles for the project’s foundation is approximately 25% complete. As construction prepares to go vertical, we recently installed the highest crane tower, in terms of cab height above sea level, in Colorado’s history. Substantial completion of the project is expected in the fourth quarter of 2022. It is still relatively early in the construction process, so estimates of cost and completion dates still contain substantial uncertainty.
“We continue to believe that Colorado’s gaming markets – especially Cripple Creek – remain significantly underpenetrated and do not have enough guestrooms. Recent hotel expansions in Cripple Creek and elsewhere in Colorado appear to be performing well. The development plan for our Chamonix site allows us to add an additional hotel wing. We are currently evaluating whether to build this additional hotel wing now, given the ease to do so while we construct the broader Chamonix project. That additional wing, if constructed, would increase the total size of our hotel by 23% to approximately 370 guestrooms. We believe that it could be funded, along with the rest of the project, from our existing cash balances, which totaled $281.5 million at the end of the second quarter. Such addition requires approvals from the Cripple Creek Historic Preservation Commission and Cripple Creek City Council.
“We also continue to pursue other growth opportunities in the longer-term, including our proposed American Place project in Waukegan, Illinois. The Illinois Gaming Board recently hired a consultant to help evaluate each of the three proposals remaining in the process. We look forward to the opportunity, perhaps later this year, to share our vision for a new casino destination for the Waukegan community.
“Also, the Indiana Gaming Commission recently issued a request for proposals (RFP) to develop a casino in Terre Haute, Indiana, which is approximately one hour west of Indianapolis. Full House had previously proposed development of a casino in Terre Haute and is considering responding to the RFP.”
Second Quarter Highlights and Subsequent Events
- Mississippi. The Silver Slipper Casino and Hotel’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. We are close to completing the repainting of the exterior of the property with a new color scheme, as well as installation of a brighter, energy-efficient digital sign. For the second quarter of 2021, revenues at Silver Slipper increased 165.7% to $24.2 million. Revenues of $9.1 million in the second quarter of 2020 reflected the pandemic-related closure of the property from mid-March 2020 until May 21, 2020. Adjusted Segment EBITDA grew to $9.0 million in the 2021 second quarter, a 648.6% increase from $1.2 million in the prior-year period. Revenue and Adjusted Segment EBITDA in the second quarter of 2019 were $18.9 million and $3.6 million, respectively.
The Company has been evaluating the potential construction of an additional hotel tower and related amenities at Silver Slipper, a portion of which would extend out over the adjoining Gulf of Mexico. In contemplation for such potential future expansion, the Company paid $5,000 for an option agreement – entered into by the Company on June 8, 2021 and approved by the Governor of Mississippi on July 13, 2021 – for a 30-year lease of approximately a half-acre of tidelands, with a term extension for another 30 years, if exercised. This initial six-month option can be renewed for three additional six-month increments of $5,000 upon each option renewal. Upon commencement of the land lease, rent during construction would be $10,000 for each six-month period until the earlier of six months after hotel operations have started or December 31, 2022. Thereafter, annual rent would be $105,300, with adjustments based on the consumer price index at each anniversary. Before construction can commence, additional entitlements are necessary, including certain environmental approvals. There can be no certainty that the tidelands lease option will be exercised or that the contemplated Silver Slipper expansion will be built.
- Indiana. Rising Star Casino Resort’s revenues were $10.6 million in the second quarter of 2021, an increase from $2.2 million in the second quarter of 2020, when efforts to control the pandemic resulted in the closure of the property from mid-March 2020 until June 15, 2020. Adjusted Segment EBITDA increased to $2.7 million in the second quarter of 2021 from a loss of $1.4 million in the prior-year period. These 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, and labor efficiencies from more appropriately matching the operating hours of table games and food and beverage outlets to the demand for such services, as well as approximately 2.5 months of closed operations during the 2020 second quarter. Revenue and Adjusted Segment EBITDA in the second quarter of 2019 were $11.6 million and $0.6 million, respectively.
- Colorado. This segment includes Bronco Billy’s Casino and Hotel and, upon its opening, will include Chamonix Casino Hotel. Revenues for this segment were $6.4 million in the second quarter of 2021, an increase from $1.6 million in the second quarter of 2020, when the property was closed from mid-March 2020 until June 15, 2020 due to efforts to control the pandemic. Adjusted Segment EBITDA rose to $1.8 million in the second quarter of 2021 from a loss of $0.2 million in the prior-year period. The increase in Adjusted Segment EBITDA was due to an improved customer experience and analytics from Bronco Billy’s new slot marketing system and labor controls (partially offset by certain labor expenses related to the pandemic), as well as approximately 2.5 months of closed operations during the 2020 second quarter. Revenue and Adjusted Segment EBITDA in the second quarter of 2019 were $6.9 million and $0.9 million, respectively.
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 (and, potentially, a total of 370 guest rooms and suites), parking garage, meeting and entertainment space, outdoor rooftop pool, spa, and fine-dining restaurant. We recently completed all of the major required utility work, including the movement and expansion of existing power, cable, phone, gas, and sanitary and storm sewer lines. Installation of micro-piles to support the foundations are approximately 25% complete. 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 near the Naval Air Station in Fallon. This segment is historically the smallest of the Company’s segments. During the second quarter of 2021, the Nevada segment began to recover as destination travel to the Hyatt resumed and pandemic-related restrictions eased. Revenues were $4.7 million and $1.1 million for the second quarters of 2021 and 2020, respectively, reflecting the temporary closure of Grand Lodge and Stockman’s from mid-March 2020 until June 4, 2020. Adjusted Segment EBITDA was $1.4 million in the second quarter of 2021, versus a loss of $0.6 million in the prior-year period. Revenue and Adjusted Segment EBITDA in the second quarter of 2019 were $4.3 million and $0.4 million, respectively.
- Contracted Sports Wagering. This segment consists of the Company’s on-site and online sports wagering skins in Colorado and Indiana. Revenues and Adjusted Segment EBITDA were both $1.5 million in the second quarter of 2021, reflecting the launch of two additional sports wagering skins on April 1 and April 23, 2021. Currently, five of the Company’s six permitted sports wagering skins are live. For the second quarter of 2020, when only two sports wagering skins were live, revenues and Adjusted Segment EBITDA were $463,000 and $447,000, respectively. We believe that the Company’s last remaining skin will commence operations in the next few months.
We receive a percentage of defined revenues of each skin, subject to annual minimums. When all six skins are in operation, we should receive a contractual minimum of $7 million per year of annualized revenues, with minimal related expenses.
Liquidity and Capital Resources
As of June 30, 2021, the Company had $281.5 million in cash and cash equivalents (including $176.6 million of cash reserved for the construction of Chamonix), $310 million in outstanding senior secured notes due 2028, and $5.6 million in outstanding unsecured loans obtained under the CARES Act. The Company believes that the CARES Act loans will qualify for forgiveness, but there is no certainty that any or all of such loans will be forgiven. The Company also has a $15 million senior secured revolving credit facility, all of which was available to draw upon as of June 30, 2021.
2019 Results
Because of the pandemic closure period in 2020, the Company is also providing the results from 2019 for the corresponding periods as a supplemental disclosure.
Conference Call Information
The Company will host a conference call for investors today, August 10, 2021, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2021 second 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 (800) 430-8332 or, for international callers, (323) 347-3277.
A replay of the conference call will be available shortly after the conclusion of the call through August 24, 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 6767582.
(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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 34,647 | $ | 10,955 | $ | 66,711 | $ | 31,706 | ||||||||
| Food and beverage | 7,440 | 1,994 | 13,541 | 8,984 | ||||||||||||
| Hotel | 2,510 | 719 | 4,721 | 2,693 | ||||||||||||
| Other operations, including online/mobile sports | 2,845 | 843 | 4,677 | 1,981 | ||||||||||||
| 47,442 | 14,511 | 89,650 | 45,364 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 11,087 | 3,470 | 21,426 | 13,803 | ||||||||||||
| Food and beverage | 5,928 | 2,083 | 11,288 | 9,219 | ||||||||||||
| Hotel | 1,140 | 377 | 2,196 | 1,550 | ||||||||||||
| Other operations | 551 | 273 | 946 | 835 | ||||||||||||
| Selling, general and administrative | 14,007 | 9,796 | 28,420 | 22,777 | ||||||||||||
| Project development costs | 126 | 259 | 173 | 315 | ||||||||||||
| Depreciation and amortization | 1,829 | 1,980 | 3,629 | 4,020 | ||||||||||||
| Loss on disposal of assets, net | 568 | 439 | 672 | 439 | ||||||||||||
| 35,236 | 18,677 | 68,750 | 52,958 | |||||||||||||
| Operating income (loss) | 12,206 | (4,166 | ) | 20,900 | (7,594 | ) | ||||||||||
| Other (expense) income, net | ||||||||||||||||
| Interest expense, net of capitalized interest | (6,670 | ) | (2,447 | ) | (11,126 | ) | (4,938 | ) | ||||||||
| Gain (loss) on extinguishment of debt | 30 | — | (6,104 | ) | — | |||||||||||
| Adjustment to fair value of warrants | — | (94 | ) | (1,347 | ) | 1,562 | ||||||||||
| (6,640 | ) | (2,541 | ) | (18,577 | ) | (3,376 | ) | |||||||||
| Income (loss) before income taxes | 5,566 | (6,707 | ) | 2,323 | (10,970 | ) | ||||||||||
| Income tax provision (benefit) | 82 | (4 | ) | 284 | 91 | |||||||||||
| Net income (loss) | $ | 5,484 | $ | (6,703 | ) | $ | 2,039 | $ | (11,061 | ) | ||||||
| Basic income (loss) per share | $ | 0.16 | $ | (0.25 | ) | $ | 0.07 | $ | (0.41 | ) | ||||||
| Diluted income (loss) per share | $ | 0.15 | $ | (0.25 | ) | $ | 0.06 | $ | (0.46 | ) | ||||||
| Basic weighted average number of common shares outstanding | 34,156 | 27,079 | 30,776 | 27,077 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 36,628 | 27,079 | 33,156 | 27,259 | ||||||||||||
Full House Resorts, Inc.
Supplemental Information
Segment Revenues and Adjusted Segment EBITDA
(In Thousands, Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Mississippi | $ | 24,239 | $ | 9,122 | $ | 18,892 | $ | 46,596 | $ | 24,215 | $ | 38,174 | ||||||||||||
| Indiana(2) | 10,577 | 2,207 | 11,598 | 19,167 | 9,454 | 22,465 | ||||||||||||||||||
| Colorado(2) | 6,382 | 1,633 | 6,877 | 12,286 | 6,614 | 13,317 | ||||||||||||||||||
| Nevada | 4,715 | 1,086 | 4,296 | 9,083 | 4,194 | 8,201 | ||||||||||||||||||
| Contracted Sports Wagering(2) | 1,529 | 463 | — | 2,518 | 887 | — | ||||||||||||||||||
| $ | 47,442 | $ | 14,511 | $ | 41,663 | $ | 89,650 | $ | 45,364 | $ | 82,157 | |||||||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||||||||||
| Mississippi | $ | 8,983 | $ | 1,200 | $ | 3,594 | $ | 16,613 | $ | 3,032 | $ | 7,440 | ||||||||||||
| Indiana(2) | 2,666 | (1,361 | ) | 604 | 3,799 | (2,851 | ) | 1,007 | ||||||||||||||||
| Colorado(2) | 1,839 | (199 | ) | 876 | 3,548 | (669 | ) | 1,491 | ||||||||||||||||
| Nevada | 1,412 | (562 | ) | 417 | 2,636 | (953 | ) | 408 | ||||||||||||||||
| Contracted Sports Wagering(2) | 1,500 | 447 | — | 2,477 | 836 | — | ||||||||||||||||||
| Adjusted Segment EBITDA | 16,400 | (475 | ) | 5,491 | 29,073 | (605 | ) | 10,346 | ||||||||||||||||
| Corporate | (1,472 | ) | (910 | ) | (1,240 | ) | (3,376 | ) | (2,029 | ) | (2,518 | ) | ||||||||||||
| Adjusted EBITDA | $ | 14,928 | $ | (1,385 | ) | $ | 4,251 | $ | 25,697 | $ | (2,634 | ) | $ | 7,828 | ||||||||||
__________
(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 | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net income (loss) | $ | 5,484 | $ | (6,703 | ) | $ | (1,010 | ) | $ | 2,039 | $ | (11,061 | ) | $ | (2,627 | ) | |||||||
| Income tax provision (benefit) | 82 | (4 | ) | 143 | 284 | 91 | 285 | ||||||||||||||||
| Interest expense, net of amounts capitalized | 6,670 | 2,447 | 2,931 | 11,126 | 4,938 | 5,634 | |||||||||||||||||
| (Gain) loss on extinguishment of debt | (30 | ) | — | — | 6,104 | — | — | ||||||||||||||||
| Adjustment to fair value of warrants | — | 94 | (141 | ) | 1,347 | (1,562 | ) | (101 | ) | ||||||||||||||
| Operating income (loss) | 12,206 | (4,166 | ) | 1,923 | 20,900 | (7,594 | ) | 3,191 | |||||||||||||||
| Project development costs | 126 | 259 | 142 | 173 | 315 | 275 | |||||||||||||||||
| Depreciation and amortization | 1,829 | 1,980 | 2,083 | 3,629 | 4,020 | 4,174 | |||||||||||||||||
| Loss (gain) on disposal of assets, net | 568 | 439 | (4 | ) | 672 | 439 | (5 | ) | |||||||||||||||
| Stock-based compensation | 199 | 103 | 107 | 323 | 186 | 193 | |||||||||||||||||
| Adjusted EBITDA | $ | 14,928 | $ | (1,385 | ) | $ | 4,251 | $ | 25,697 | $ | (2,634 | ) | $ | 7,828 | |||||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended June 30, 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 | $ | 7,742 | $ | 675 | $ | 566 | $ | — | $ | — | $ | 8,983 | |||||||
| Indiana | 2,073 | 593 | — | — | — | 2,666 | |||||||||||||
| Colorado | 1,452 | 385 | 2 | — | — | 1,839 | |||||||||||||
| Nevada | 1,274 | 138 | — | — | — | 1,412 | |||||||||||||
| Contracted Sports Wagering | 1,500 | — | — | — | — | 1,500 | |||||||||||||
| 14,041 | 1,791 | 568 | — | — | 16,400 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (1,835 | ) | 38 | — | 126 | 199 | (1,472 | ) | |||||||||||
| $ | 12,206 | $ | 1,829 | $ | 568 | $ | 126 | $ | 199 | $ | 14,928 | ||||||||
| Three Months Ended June 30, 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 | $ | 398 | $ | 802 | $ | — | $ | — | $ | — | $ | 1,200 | |||||||
| Indiana | (1,977 | ) | 616 | — | — | — | (1,361 | ) | |||||||||||
| Colorado | (579 | ) | 376 | 4 | — | — | (199 | ) | |||||||||||
| Nevada | (1,145 | ) | 148 | 435 | — | — | (562 | ) | |||||||||||
| Contracted Sports Wagering | 447 | — | — | — | — | 447 | |||||||||||||
| (2,856 | ) | 1,942 | 439 | — | — | (475 | ) | ||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (1,310 | ) | 38 | — | 259 | 103 | (910 | ) | |||||||||||
| $ | (4,166 | ) | $ | 1,980 | $ | 439 | $ | 259 | $ | 103 | $ | (1,385 | ) | ||||||
| Three Months Ended June 30, 2019 | ||||||||||||||||||||
| Adjusted | ||||||||||||||||||||
| Segment | ||||||||||||||||||||
| Operating | Depreciation | Gain on | Project | Stock- | EBITDA and | |||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | |||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | |||||||||||||||
| Reporting segments | ||||||||||||||||||||
| Mississippi | $ | 2,725 | $ | 869 | $ | — | $ | — | $ | — | $ | 3,594 | ||||||||
| Indiana | 11 | 593 | — | — | — | 604 | ||||||||||||||
| Colorado | 446 | 434 | (4 | ) | — | — | 876 | |||||||||||||
| Nevada | 268 | 149 | — | — | — | 417 | ||||||||||||||
| Contracted Sports Wagering | — | — | — | — | — | — | ||||||||||||||
| 3,450 | 2,045 | (4 | ) | — | — | 5,491 | ||||||||||||||
| Other operations | ||||||||||||||||||||
| Corporate | (1,527 | ) | 38 | — | 142 | 107 | (1,240 | ) | ||||||||||||
| $ | 1,923 | $ | 2,083 | $ | (4 | ) | $ | 142 | $ | 107 | $ | 4,251 | ||||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Six Months Ended June 30, 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 | $ | 14,690 | $ | 1,335 | $ | 588 | $ | — | $ | — | $ | 16,613 | |||||||
| Indiana | 2,590 | 1,209 | — | — | — | 3,799 | |||||||||||||
| Colorado | 2,732 | 732 | 84 | — | — | 3,548 | |||||||||||||
| Nevada | 2,359 | 277 | — | — | — | 2,636 | |||||||||||||
| Contracted Sports Wagering | 2,477 | — | — | — | — | 2,477 | |||||||||||||
| 24,848 | 3,553 | 672 | — | — | 29,073 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (3,948 | ) | 76 | — | 173 | 323 | (3,376 | ) | |||||||||||
| $ | 20,900 | $ | 3,629 | $ | 672 | $ | 173 | $ | 323 | $ | 25,697 | ||||||||
| Six Months Ended June 30, 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 | $ | 1,386 | $ | 1,646 | $ | — | $ | — | $ | — | $ | 3,032 | |||||||
| Indiana | (4,089 | ) | 1,238 | — | — | — | (2,851 | ) | |||||||||||
| Colorado | (1,436 | ) | 763 | 4 | — | — | (669 | ) | |||||||||||
| Nevada | (1,685 | ) | 297 | 435 | — | — | (953 | ) | |||||||||||
| Contracted Sports Wagering | 836 | — | — | — | — | 836 | |||||||||||||
| (4,988 | ) | 3,944 | 439 | — | — | (605 | ) | ||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (2,606 | ) | 76 | — | 315 | 186 | (2,029 | ) | |||||||||||
| $ | (7,594 | ) | $ | 4,020 | $ | 439 | $ | 315 | $ | 186 | $ | (2,634 | ) | ||||||
| Six Months Ended June 30, 2019 | ||||||||||||||||||||
| Adjusted | ||||||||||||||||||||
| Segment | ||||||||||||||||||||
| Operating | Depreciation | Gain on | Project | Stock- | EBITDA and | |||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | |||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | |||||||||||||||
| Reporting segments | ||||||||||||||||||||
| Mississippi | $ | 5,725 | $ | 1,716 | $ | (1 | ) | $ | — | $ | — | $ | 7,440 | |||||||
| Indiana | (192 | ) | 1,199 | — | — | — | 1,007 | |||||||||||||
| Colorado | 614 | 881 | (4 | ) | — | — | 1,491 | |||||||||||||
| Nevada | 106 | 302 | — | — | — | 408 | ||||||||||||||
| Contracted Sports Wagering | — | — | — | — | — | — | ||||||||||||||
| 6,253 | 4,098 | (5 | ) | — | — | 10,346 | ||||||||||||||
| Other operations | ||||||||||||||||||||
| Corporate | (3,062 | ) | 76 | — | 275 | 193 | (2,518 | ) | ||||||||||||
| $ | 3,191 | $ | 4,174 | $ | (5 | ) | $ | 275 | $ | 193 | $ | 7,828 | ||||||||
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; the potential further expansion of the Chamonix hotel and our ability to fund the project from existing cash balances; our expected construction budget, estimated completion date, expected amenities, and our expected operational performance for Chamonix; our expectations regarding our sports wagering contracts with third-party providers, including the expected revenues and expenses and the expected timing for the launch of the sports betting ‘skins’ related thereto; our intentions regarding the potential future expansion at Silver Slipper, including the exercise of the tidelands lease option or receipt of any entitlements thereto; our expectations regarding the Waukegan proposal, including the timing of the RFP process, our ability to obtain the casino license and, if we are awarded such license, to obtain financing; and our intentions regarding a response to the Indiana Gaming Commission’s request for proposal to develop a casino in Terre Haute, Indiana. 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; 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 Chamonix 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; 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, and is one of three finalists for consideration by the Illinois Gaming Board to develop a casino in Waukegan, Illinois. 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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LAS VEGAS, April 22, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its first quarter 2024 financial results on Wednesday, May 8, 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 May 22, 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 13746178.
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
– 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.
“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.”
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.
(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.
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.
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 | |||||||||
| 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
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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