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, Nov. 15, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) (the “Company”) today announced that it has named Jeff Michie as vice president and general manager of its Rising Star Casino Resort in Rising Sun, Indiana, subject to customary gaming approvals. Mr. Michie will replace Angi Truebner-Webb who, as previously reported, will become the general manager of the Company’s Silver Slipper Casino Hotel in Hancock County, Mississippi.
Mr. Michie joins Rising Star from Casino del Sol, a large casino resort in Tucson, Arizona. As the chief financial officer of Casino del Sol, Mr. Michie oversaw the property’s finance, surveillance and golf course departments. Mr. Michie has also served in senior management positions at several casinos that directly compete with Rising Star, including as the senior vice president of operations and finance of Hard Rock Casino Cincinnati, and as assistant general manager and CFO for Belterra Casino Resort & Spa. During his extensive career, Mr. Michie has also served as general manager for several properties, including the Belle of Baton Rouge Casino & Hotel in Baton Rouge, Louisiana, and the Horizon Casino & Hotel in Vicksburg, Mississippi. He earned his bachelor’s degree in finance and public administration from San Diego State University. He has also been a long-time resident of nearby Lawrenceburg, Indiana.
In connection with his hiring, the compensation committee of the Company’s board of directors (the “Compensation Committee”) approved a grant of an inducement equity award of 19,921 restricted shares to Mr. Michie. Subject to his continuing service through the vesting dates, one-third of the total number of shares granted will vest on each of November 11, 2025, 2026, and 2027, the anniversary dates of Mr. Michie’s commencement of employment and the grant of restricted shares.
Additionally, in connection with their hirings, the Compensation Committee approved grants of inducement equity awards to two additional employees: Kimberly Bender and Katelynn May were each granted 4,107 restricted shares. For both Ms. Bender and Ms. May, one-third of the total number of shares granted will vest on each of November 12, 2025, 2026, and 2027, subject to their continuing service through the vesting dates, which are the anniversary dates of the grants of restricted shares.
The awards were granted outside of the Company’s 2015 Equity Incentive Plan and were approved by the Compensation Committee in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement to the above individuals’ entry into employment with the Company.
Forward-looking Statements
This press release contains statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, dependence on existing management, competition, uncertainties over the development and success of our acquisition and expansion projects, the financial performance of our finished projects and renovations, general macroeconomic conditions, legal risks, and regulatory and business conditions in the gaming industry. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800
– Revenues Increased Significantly Compared to the Third Quarter of 2023
– Chamonix Casino Hotel Celebrated Its Official Grand Opening This Past Weekend
– American Place Casino Continued Its Expected Ramp-Up of Operations,
With Revenues Rising 17.7% in the Third Quarter of 2024
– Agreed to Sell Stockman’s Casino for $9.2 Million
LAS VEGAS, Nov. 06, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the third quarter ended September 30, 2024.
On a consolidated basis, revenues in the third quarter of 2024 were $75.7 million. Revenues in the prior-year period were $71.5 million, which included $5.8 million from the accelerated recognition of deferred revenue from two sports wagering agreements. Net loss for the third quarter of 2024 was $8.5 million, or $(0.24) per diluted common share, which includes $0.1 million of preopening and development costs, a $2.0 million gain on the sale of Stockman’s Casino, and depreciation and amortization charges related to our new American Place and Chamonix facilities. In the prior-year period, net income was $4.6 million, or $0.13 per diluted common share, reflecting $1.1 million of preopening and development costs and $5.8 million related to the accelerated recognition of deferred revenue. Adjusted EBITDA(a) of $11.7 million in the third quarter of 2024 reflects strong continued growth at American Place, as well as elevated costs at Chamonix as it continues to ramp-up its operations. In the prior-year period, Adjusted EBITDA was $20.6 million, benefiting from the accelerated recognition of deferred revenue noted above.
“American Place continued its meaningful growth during the third quarter of 2024,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “This still relatively-new property, which opened in February 2023, grew revenues and Adjusted Property EBITDA by 17.7% and 13.6%, respectively. We look forward to further growth at American Place in 2025 and beyond.
“At our expanded operations in Cripple Creek, Colorado,” continued Mr. Lee, “gaming revenues continued to set new monthly records, resulting in a 115% increase during the current quarter when compared to the prior-year period. Hotel occupancy rose dramatically during the third quarter, reaching 88.5% in September 2024 as guests discover – and revisit – our new casino hotel. For comparison, hotel occupancy averaged approximately 52% in the second quarter of 2024. Total revenues from our Colorado operations rose 178% from the third quarter of 2023.
“These revenue gains were despite the lack of a large-scale marketing campaign. Such a campaign was largely on hold until recently, when construction was complete. Accordingly, awareness of Chamonix remains in the early stages in the key markets of Colorado Springs and Denver. This past weekend, we celebrated Chamonix’s official Grand Opening with a VIP party, complete with major celebrity entertainment. This week, as political ad spending wanes, we will commence our first post-opening awareness campaign for Chamonix. We believe Chamonix is an unparallelled casino for the region. We remain confident in its earnings potential over the coming quarters and in the longer-term.
“We also remain excited for our future permanent American Place facility. Construction of such casino is on hold, pending litigation that we believe will be resolved in the next few quarters.
“While our temporary casino is performing very well, we think the permanent casino will perform much better. Another gaming company in Illinois operated a temporary casino for several years, in the city of Rockford. It is a market quite analogous to our market in Lake County. That temporary casino recently transitioned into a permanent facility and the early results have been very strong. In September 2024, for example, the Illinois Gaming Board reported that the permanent Rockford casino’s gaming revenues were $13.7 million, a 139% increase from $5.7 million produced in September 2023 in a temporary facility. Their revenue growth reinforces our excitement for our own transition from our temporary American Place casino, which we are currently permitted to operate until August 2027, into a permanent casino facility.”
Third Quarter Highlights and Subsequent Events
- Midwest & South. This segment includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and American Place. Revenues for the segment were $54.5 million in the third quarter of 2024, a 3.7% increase from $52.6 million in the prior-year period. Adjusted Segment EBITDA was $10.2 million, a 12.8% decrease from $11.8 million in the prior-year period. These results reflect continuing growth at American Place, but an active storm season in the Silver Slipper’s Mississippi Gulf Coast area, where several significant storms during the third quarter of 2024 adversely impacted visitation to the property. In the third quarter of 2024, American Place generated $28.1 million of revenue and $7.7 million of Adjusted Property EBITDA, or increases of 17.7% and 13.6%, respectively, compared to the third quarter of 2023.
As noted in the press, we recently began exploring the potential relocation of our Rising Star Casino Resort from Rising Sun to other locations within Indiana. Any potential relocation requires the state legislature’s approval and would require several years to take effect.
- West. This segment includes Grand Lodge Casino (located within the Hyatt Regency Lake Tahoe resort in Incline Village), Stockman’s Casino, Bronco Billy’s Casino, and Chamonix Casino Hotel, which began its phased opening on December 27, 2023. Bronco Billy’s and Chamonix are two integrated and adjoining casinos, and are operated as a single entity. Revenues for the segment rose 74.9% to $19.4 million in the third quarter of 2024, versus $11.1 million in the prior-year period. Reflecting the high operating expenses of our new casino in Colorado that was not yet fully open, Adjusted Segment EBITDA was $1.2 million in the third quarter of 2024, versus $2.3 million in the prior-year period. Such opening costs include the training of new employees, as well as the cost of operating many amenities at the new resort while continuing to complete construction. As noted above, Chamonix recently celebrated its official Grand Opening last weekend and its broader advertising program is just commencing.
On July 1, 2024, Gaming Entertainment (Nevada) LLC, our wholly-owned subsidiary that operates Grand Lodge Casino, entered into a Seventh Amendment to Casino Operations Lease (the “Amendment”) with Incline Hotel LLC (the “Landlord”). Prior to the Amendment, Grand Lodge’s casino lease was scheduled to expire on December 31, 2024. The Amendment extends the term of the lease by ten years to December 31, 2034; increases annual rent from $2,000,000 in 2024 to $2,010,857 for 2025, followed by annual increases of 2% for the remainder of the term; and makes certain other conforming changes. The new longer-term lease can be cancelled prior to its expiration on terms specified in the lease. We first began operating the Grand Lodge casino under a short-term lease in 2011. That lease had been extended several times, reflecting the ongoing and excellent relationship between us and the operators of the hotel.
On August 28, 2024, we entered into an agreement with privately-owned Clarity Game LLC (“Clarity”) to sell the operating assets of Stockman’s for aggregate cash consideration of $9.2 million, plus certain expected working capital adjustments at closing. The asset sale was designed to be completed in two phases: the sale of Stockman’s real property for $7.0 million, which closed on September 27, 2024; and the sale of certain remaining operating assets for $2.2 million (excluding any expected positive adjustments for working capital), upon the receipt of customary gaming approvals. Upon completion of the second phase, we will transfer all of Stockman’s daily operations to Clarity. During the third quarter of 2024, we recognized a $2.0 million gain from the sale of Stockman’s real property.
- Contracted Sports Wagering. This segment consists of our on-site and online sports wagering “skins” (akin to websites) in Colorado, Indiana, and Illinois. Revenues and Adjusted Segment EBITDA in the third quarter of 2024 were $1.8 million and $2.0 million, respectively. Results during the current quarter reflect the absence of a sports wagering agreement that ceased operating in Colorado after April 2024, as well as the recapture of earnings from prior period losses due to a settlement agreement in Indiana in July 2024. In the third quarter of 2023, revenues and Adjusted Segment EBITDA were both $7.9 million, reflecting $5.8 million of accelerated revenues related to two sports wagering agreements that ceased operations during that quarter.
Liquidity and Capital Resources
As of September 30, 2024, we had $33.6 million in cash and cash equivalents, including $7.7 million of cash reserved under our bond indentures to complete the construction of Chamonix. Our debt consisted primarily of $450.0 million in outstanding senior secured notes due 2028, which became callable at specified premiums in February 2024, and $27.0 million outstanding under our revolving credit facility.
Conference Call Information
We will host a conference call for investors today, November 6, 2024, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2024 third quarter results. Investors can access the live audio webcast from our website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through November 13, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13748672.
(a) Reconciliation of Non-GAAP Financial Measures
Our presentation of non-GAAP Measures may be different from the presentation used by other companies, and therefore, comparability may be limited. While excluded from certain non-GAAP Measures, depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred. Each of these items should also be considered in the overall evaluation of our results. Additionally, our non-GAAP Measures do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, and other items both in our reconciliations to the historical GAAP financial measures and in our condensed consolidated financial statements, all of which should be considered when evaluating our performance.
Our non-GAAP Measures are to be used in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP Measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. These non-GAAP Measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.
Adjusted Segment EBITDA. We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment.
Same-store Adjusted Segment EBITDA. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Adjusted EBITDA. We also utilize Adjusted EBITDA, which is defined as Adjusted Segment EBITDA, net of corporate-related costs and expenses. Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, we believe this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. We utilize this metric or measure internally to focus management on year-over-year changes in core operating performance, which we consider our ordinary, ongoing and customary operations, and which we believe is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.
Full House Resorts, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 56,116 | $ | 50,240 | $ | 162,474 | $ | 131,586 | ||||||||
| Food and beverage | 11,100 | 9,086 | 31,272 | 25,419 | ||||||||||||
| Hotel | 4,693 | 2,560 | 11,287 | 7,052 | ||||||||||||
| Other operations, including contracted sports wagering | 3,778 | 9,657 | 14,070 | 16,974 | ||||||||||||
| 75,687 | 71,543 | 219,103 | 181,031 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 22,582 | 19,437 | 63,876 | 49,771 | ||||||||||||
| Food and beverage | 11,561 | 8,330 | 32,035 | 24,815 | ||||||||||||
| Hotel | 3,160 | 1,164 | 7,706 | 3,611 | ||||||||||||
| Other operations | 610 | 691 | 2,391 | 1,878 | ||||||||||||
| Selling, general and administrative | 26,738 | 22,017 | 76,958 | 61,823 | ||||||||||||
| Project development costs | 52 | 21 | 55 | 45 | ||||||||||||
| Preopening costs | 42 | 1,051 | 2,462 | 12,634 | ||||||||||||
| Depreciation and amortization | 10,493 | 8,468 | 31,444 | 22,482 | ||||||||||||
| Loss on disposal of assets | — | 7 | 18 | 7 | ||||||||||||
| Gain on sale of Stockman’s | (2,000 | ) | — | (2,000 | ) | — | ||||||||||
| 73,238 | 61,186 | 214,945 | 177,066 | |||||||||||||
| Operating income | 2,449 | 10,357 | 4,158 | 3,965 | ||||||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense, net | (11,047 | ) | (5,867 | ) | (32,320 | ) | (16,319 | ) | ||||||||
| Gain on settlements | — | 29 | — | 384 | ||||||||||||
| (11,047 | ) | (5,838 | ) | (32,320 | ) | (15,935 | ) | |||||||||
| (Loss) income before income taxes | (8,598 | ) | 4,519 | (28,162 | ) | (11,970 | ) | |||||||||
| Income tax (benefit) provision | (126 | ) | (74 | ) | 211 | 452 | ||||||||||
| Net (loss) income | $ | (8,472 | ) | $ | 4,593 | $ | (28,373 | ) | $ | (12,422 | ) | |||||
| Basic (loss) earnings per share | $ | (0.24 | ) | $ | 0.13 | $ | (0.82 | ) | $ | (0.36 | ) | |||||
| Diluted (loss) earnings per share | $ | (0.24 | ) | $ | 0.13 | $ | (0.82 | ) | $ | (0.36 | ) | |||||
| Basic weighted average number of common shares outstanding | 34,944 | 34,583 | 34,749 | 34,497 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 34,944 | 36,673 | 34,749 | 34,497 | ||||||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Midwest & South | $ | 54,510 | $ | 52,553 | $ | 164,599 | $ | 143,267 | ||||||||
| West | 19,387 | 11,085 | 47,571 | 27,297 | ||||||||||||
| Contracted Sports Wagering | 1,790 | 7,905 | 6,933 | 10,467 | ||||||||||||
| $ | 75,687 | $ | 71,543 | $ | 219,103 | $ | 181,031 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Midwest & South | $ | 10,249 | $ | 11,750 | $ | 35,206 | $ | 31,830 | ||||||||
| West | 1,198 | 2,308 | 1,928 | 2,538 | ||||||||||||
| Contracted Sports Wagering | 2,037 | 7,852 | 6,549 | 10,373 | ||||||||||||
| Adjusted Segment EBITDA | 13,484 | 21,910 | 43,683 | 44,741 | ||||||||||||
| Corporate | (1,742 | ) | (1,280 | ) | (5,391 | ) | (3,479 | ) | ||||||||
| Adjusted EBITDA | $ | 11,742 | $ | 20,630 | $ | 38,292 | $ | 41,262 | ||||||||
__________
(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profitability in assessing performance and allocating resources at the reportable segment level.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Same-store Revenues and Adjusted Segment EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | Increase / | September 30, | Increase / | |||||||||||||||||||||||
| Reporting segments | 2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||||||||||||||||
| Midwest & South | ||||||||||||||||||||||||||
| Midwest & South same-store total revenues(1) |
$ | 26,385 | $ | 28,663 | (7.9 | ) | % | $ | 83,422 | $ | 88,629 | (5.9 | ) | % | ||||||||||||
| American Place | 28,125 | 23,890 | 17.7 | % | 81,177 | 54,638 | 48.6 | % | ||||||||||||||||||
| Midwest & South total revenues | $ | 54,510 | $ | 52,553 | 3.7 | % | $ | 164,599 | $ | 143,267 | 14.9 | % | ||||||||||||||
| Midwest & South same-store Adjusted Segment EBITDA(1) |
$ | 2,543 | $ | 4,966 | (48.8 | ) | % | $ | 12,533 | $ | 17,341 | (27.7 | ) | % | ||||||||||||
| American Place | 7,706 | 6,784 | 13.6 | % | 22,673 | 14,489 | 56.5 | % | ||||||||||||||||||
| Midwest & South Adjusted Segment EBITDA |
$ | 10,249 | $ | 11,750 | (12.8 | ) | % | $ | 35,206 | $ | 31,830 | 10.6 | % | |||||||||||||
| Contracted Sports Wagering | ||||||||||||||||||||||||||
| Contracted Sports Wagering same-store total revenues(2) |
$ | 315 | $ | 1,370 | (77.0 | ) | % | $ | 1,690 | $ | 3,932 | (57.0 | ) | % | ||||||||||||
| Accelerated revenues due to contract terminations(3) |
— | 5,794 | N.M. | 893 | 5,794 | (84.6 | ) | % | ||||||||||||||||||
| Illinois | 1,475 | 741 | 99.1 | % | 4,350 | 741 | 487.0 | % | ||||||||||||||||||
| Contracted Sports Wagering total revenues |
$ | 1,790 | $ | 7,905 | (77.4 | ) | % | $ | 6,933 | $ | 10,467 | (33.8 | ) | % | ||||||||||||
| Contracted Sports Wagering same-store Adjusted Segment EBITDA(2) |
$ | 620 | $ | 1,336 | (53.6 | ) | % | $ | 1,448 | $ | 3,857 | (62.5 | ) | % | ||||||||||||
| Accelerated revenues due to contract terminations(3) |
— | 5,794 | N.M. | 893 | 5,794 | (84.6 | ) | % | ||||||||||||||||||
| Illinois | 1,417 | 722 | 96.3 | % | 4,208 | 722 | 482.8 | % | ||||||||||||||||||
| Contracted Sports Wagering Adjusted Segment EBITDA |
$ | 2,037 | $ | 7,852 | (74.1 | ) | % | $ | 6,549 | $ | 10,373 | (36.9 | ) | % | ||||||||||||
__________
N.M. Not meaningful.
(1) Same-store operations exclude results from American Place, which opened on February 17, 2023.
(2) Same-store operations exclude results from Illinois, which contractually commenced on August 15, 2023. For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations.
(3) For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. Such adjustments reflect one sports skin that ceased operations in the second quarter of 2024, and two sports skins that ceased operations in the third quarter of 2023.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net (Loss) Income and Operating Income to Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (8,472 | ) | $ | 4,593 | $ | (28,373 | ) | $ | (12,422 | ) | ||||
| Income tax (benefit) provision | (126 | ) | (74 | ) | 211 | 452 | |||||||||
| Interest expense, net | 11,047 | 5,867 | 32,320 | 16,319 | |||||||||||
| Gain on settlements | — | (29 | ) | — | (384 | ) | |||||||||
| Operating income | 2,449 | 10,357 | 4,158 | 3,965 | |||||||||||
| Project development costs | 52 | 21 | 55 | 45 | |||||||||||
| Preopening costs | 42 | 1,051 | 2,462 | 12,634 | |||||||||||
| Depreciation and amortization | 10,493 | 8,468 | 31,444 | 22,482 | |||||||||||
| Loss on disposal of assets | — | 7 | 18 | 7 | |||||||||||
| Gain on sale of Stockman’s | (2,000 | ) | — | (2,000 | ) | — | |||||||||
| Stock-based compensation | 706 | 726 | 2,155 | 2,129 | |||||||||||
| Adjusted EBITDA | $ | 11,742 | $ | 20,630 | $ | 38,292 | $ | 41,262 | |||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Gain on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Sale of | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | Stockman’s | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 4,091 | $ | 6,158 | $ | — | $ | — | $ | — | $ | — | $ | 10,249 | ||||||||||||||
| West | (1,141 | ) | 4,297 | (2,000 | ) | — | 42 | — | 1,198 | |||||||||||||||||||
| Contracted Sports Wagering | 2,037 | — | — | — | — | — | 2,037 | |||||||||||||||||||||
| 4,987 | 10,455 | (2,000 | ) | — | 42 | — | 13,484 | |||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (2,538 | ) | 38 | — | 52 | — | 706 | (1,742 | ) | |||||||||||||||||||
| $ | 2,449 | $ | 10,493 | $ | (2,000 | ) | $ | 52 | $ | 42 | $ | 706 | $ | 11,742 | ||||||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 4,156 | $ | 7,828 | $ | 7 | $ | — | $ | (241 | ) | $ | — | $ | 11,750 | |||||||||||||
| West | 406 | 610 | — | — | 1,292 | — | 2,308 | |||||||||||||||||||||
| Contracted Sports Wagering |
7,852 | — | — | — | — | — | 7,852 | |||||||||||||||||||||
| 12,414 | 8,438 | 7 | — | 1,051 | — | 21,910 | ||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (2,057 | ) | 30 | — | 21 | — | 726 | (1,280 | ) | |||||||||||||||||||
| $ | 10,357 | $ | 8,468 | $ | 7 | $ | 21 | $ | 1,051 | $ | 726 | $ | 20,630 | |||||||||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Gain on | Project | Stock- | EBITDA and | ||||||||||||||||||||||||||
| Income | and | Disposal | Sale of | Development | Preopening | Based | Adjusted | |||||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Stockman’s | Costs | Costs | Compensation | EBITDA | |||||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||||||
| Midwest & South | $ | 16,134 | $ | 18,935 | $ | 18 | $ | — | $ | — | $ | 119 | $ | — | $ | 35,206 | ||||||||||||||||
| West | (10,827 | ) | 12,412 | — | (2,000 | ) | — | 2,343 | — | 1,928 | ||||||||||||||||||||||
| Contracted Sports Wagering |
6,549 | — | — | — | — | — | — | 6,549 | ||||||||||||||||||||||||
| 11,856 | 31,347 | 18 | (2,000 | ) | — | 2,462 | — | 43,683 | ||||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||||||
| Corporate | (7,698 | ) | 97 | — | — | 55 | — | 2,155 | (5,391 | ) | ||||||||||||||||||||||
| $ | 4,158 | $ | 31,444 | $ | 18 | $ | (2,000 | ) | $ | 55 | $ | 2,462 | $ | 2,155 | $ | 38,292 | ||||||||||||||||
| Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| Segment | ||||||||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||||||
| Midwest & South | $ | 1,322 | $ | 20,640 | $ | 7 | $ | — | $ | 9,861 | $ | — | $ | 31,830 | ||||||||||||||
| West | (1,985 | ) | 1,750 | — | — | 2,773 | — | 2,538 | ||||||||||||||||||||
| Contracted Sports Wagering | 10,373 | — | — | — | — | — | 10,373 | |||||||||||||||||||||
| 9,710 | 22,390 | 7 | — | 12,634 | — | 44,741 | ||||||||||||||||||||||
| Other operations | ||||||||||||||||||||||||||||
| Corporate | (5,745 | ) | 92 | — | 45 | — | 2,129 | (3,479 | ) | |||||||||||||||||||
| $ | 3,965 | $ | 22,482 | $ | 7 | $ | 45 | $ | 12,634 | $ | 2,129 | $ | 41,262 | |||||||||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by us and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix and American Place, including its permanent facility; our expectations regarding the timing of the ramp-up of operations of Chamonix and American Place; our expectations regarding the potential relocation of Rising Star to another location in Indiana, including the legislative and approval processes; and our expectations regarding the operation and performance of our other properties and segments. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, our ability to repay our substantial indebtedness; our ability to finance the construction of the permanent American Place facility; inflation and its potential impacts on labor costs and the price of food, construction, and other materials; the effects of potential disruptions in the supply chains for goods, such as food, lumber, and other materials; general macroeconomic conditions; our ability to effectively manage and control expenses; our ability to complete construction at American Place, on-time and on-budget; legal or regulatory restrictions, delays, or challenges for our construction projects, including American Place or the potential relocation of Rising Star; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; cyber events and their impacts to our operations; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
LAS VEGAS, Oct. 16, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its third quarter 2024 financial results on Wednesday, November 6, 2024, followed by a conference call at 4:30 p.m. ET (1:30 p.m. PT). Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through November 13, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13748672.
Forward-looking Statements
This press release may contain statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino, both in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. (702) 221-7800 www.fullhouseresorts.com
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