Nasdaq:FLL
Full House Resorts Announces First Quarter Results
– Construction of The Temporary at American Place has Begun,
with an Expected Opening in Fall 2022
– Agreement Reached with Circa Sports for Internet Sports Wagering Throughout Illinois
and On-Site Sportsbooks at The Temporary and American Place
– Construction of Chamonix Casino Hotel Continues, with an Expected Opening in the Second Quarter of 2023
LAS VEGAS, May 09, 2022 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the first quarter ended March 31, 2022.
On a consolidated basis, revenues in the first quarter of 2022 were $41.4 million, a 1.9% decrease from $42.2 million in the prior-year period. Net income for the first quarter of 2022 was $0.1 million, or $0 per diluted common share, which includes $4.4 million of debt modification costs related to the Company’s offering of additional notes in February 2022. In the prior-year period, net loss was $3.4 million, or $(0.13) per diluted common share, reflecting an extinguishment of debt charge and expenses related to the redemption of the Company’s previously-outstanding warrants. Adjusted EBITDA(a) in the 2022 first quarter was $8.4 million versus $10.8 million in the prior-year period, largely due to planned construction disruptions at Bronco Billy’s; adverse hold at Rising Star and Grand Lodge; the launch of online sports wagering in Louisiana, which adversely affected Silver Slipper’s sports wagering revenues; and increases in certain costs. The prior-year’s first quarter was the Company’s strongest in recent years, having benefited from customer-related government subsidy checks due to the COVID-19 pandemic.
“Our first quarter results were solid, given adverse hold percentages at two of our properties and meaningful – but planned –construction disruptions at Bronco Billy’s to hasten the completion of Chamonix,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Silver Slipper had a solid quarter, though the launch of online sports wagering in nearby Louisiana has resulted in declines in its on-site sports wagering operations. On-site sports wagering operations contributed less than 5% of the property’s Adjusted Segment EBITDA in 2021. Otherwise, our properties continue to perform as expected in recent weeks.”
“More importantly, we made significant progress on our expansion plans,” continued Mr. Lee. “In Waukegan, Illinois, we received approvals last week to begin construction on The Temporary at American Place, and immediately began work on site fencing and erosion control so that excavation for the foundations can begin this week. Fabrication of the Sprung structure is complete and is expected to begin arriving on-site in early June. Additionally, we have begun hiring our senior management team for The Temporary, and continue to progress toward an expected opening later this year. It took longer than expected to begin construction, moving our projected opening date from the summer into the fall.
“At our Chamonix project in Cripple Creek, Colorado, we have ‘topped out’ the elevator towers and are working on the guest room and meeting areas. We believe Chamonix will be the first high-quality casino hotel in Cripple Creek when it opens in the second quarter of 2023. We expect it to meaningfully grow the market’s gaming revenue and generate a strong return on investment for our Company, similar to what has occurred in Black Hawk when higher-quality casinos have been added to that market.”
First Quarter Highlights and Subsequent Events
- Mississippi. Silver Slipper Casino and Hotel’s revenues were $21.3 million in the first quarter of 2022, a 4.7% decline from $22.4 million in the prior-year period. Adjusted Segment EBITDA was $6.0 million, reflecting the competitive launch of online sports wagering within nearby Louisiana, as well as cost increases for food and other supplies. In the prior-year period, the property had record first quarter results, as it – and all of the Company’s properties – benefited from customer-related government stimulus checks due to the COVID-19 pandemic. Adjusted Segment EBITDA was $7.6 million in the prior-year period.
- Indiana. Rising Star Casino Resort’s revenues were $8.6 million in each of the first quarters of 2022 and 2021. Adjusted Segment EBITDA was $1.1 million, again for both periods. Results in the recent quarter were adversely affected by a low table games hold percentage of 10.1%, versus the trailing three-year average of 17.2%. Conversely, a table games hold percentage of 26.0% in the first quarter of 2021 was meaningfully higher than the trailing three-year average, which benefited results in the prior-year’s quarter. Table games revenue is less significant to operating results at the property than slot win, which remained stable. The increase in slot revenues from higher volumes in the first quarter of 2022 offset the decrease in the table games hold percentage.
- Colorado. This segment includes Bronco Billy’s Casino and Hotel and, upon its opening, will include Chamonix Casino Hotel. The Colorado gaming market, including Cripple Creek, has shown significant growth since betting limits were eliminated in May 2021. Nevertheless, due to significant construction disruption, revenues and Adjusted Segment EBITDA declined in the quarter versus the prior-year period. These disruptions include the temporary loss of all of the property’s on-site parking and all on-site hotel rooms, as well as the temporary loss of portions of the casino. To alleviate the lack of on-site parking, Bronco Billy’s currently offers complimentary valet parking, as well as a free shuttle service to an off-site parking lot. Revenues were $4.2 million in the first quarter of 2022, versus $5.9 million in the prior-year period, and Adjusted Segment EBITDA was $(0.3) million, versus $1.7 million.
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, a parking garage, new surface parking lots, meeting and entertainment space, an outdoor pool, a spa, and a fine-dining restaurant. Construction work is currently being performed on the third floor of the arrival tower and recently began on the meeting and entertainment space. Structural work also recently began on the hotel structure that will sit atop Chamonix’s parking garage. For detailed renderings of the project and two webcams of the construction underway, please visit www.ChamonixCO.com.
We also recently began the staged refurbishment of Bronco Billy’s itself, so this property’s contribution to earnings will, as expected, be impacted until its new, expanded amenities open, which we expect to be in 2023.
- Nevada. This segment consists of the Grand Lodge Casino, which is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, and Stockman’s Casino, which is located in Fallon, Nevada. Revenues were $4.4 million in each of the first quarters of 2022 and 2021, despite an adverse table games hold percentage in the 2022 period. Adjusted Segment EBITDA was $0.8 million in the first quarter of 2022, reflecting an increase in labor costs, versus $1.2 million in the prior-year period. Income would have been approximately flat if the table games hold percentage had been comparable with the prior-year period.
- Contracted Sports Wagering. This segment consists of the Company’s on-site and online sports wagering “skins” (akin to websites) in Colorado, Indiana and, upon launch, Illinois. Revenues and Adjusted Segment EBITDA were both $2.8 million in the first quarter of 2022, an increase from $1.0 million in the prior-year period. These results reflect an additional skin that contractually went live on December 1, 2021, as well as an acceleration of deferred revenue for two agreements that will cease operations in May 2022. In the prior-year period, only three skins were in operation. As previously disclosed, in February 2022, one of the Company’s contracted parties for sports wagering informed us of its intent to cease operations on May 15, 2022, which will create one available skin in each of Colorado and Indiana. We are currently negotiating with several potential replacement companies for such skins, but there can be no assurance that we will be able to replace these agreements on similar terms as our existing agreements or at all.
In May 2022, the Company entered into an agreement whereby affiliates of Full House and Circa Sports will jointly develop and manage on-site sportsbooks at both The Temporary and American Place. Circa Sports currently operates at Circa Resort & Casino in Las Vegas, and offers online sports wagering in several states. In addition to the on-site sportsbook, Circa Sports will utilize Full House’s expected mobile sports skin in Illinois to conduct Internet sports wagering throughout the state, subject to customary regulatory approvals. In exchange for such rights, the Company received a market access fee of $5 million in May 2022 and will also receive payments totaling at least $5 million per year, on an annualized basis, once Circa Sports launches its mobile sports skin in Illinois. The term of the agreement is for eight years, with two four-year extension opportunities at the option of Circa Sports.
- American Place. In December 2021, Full House was chosen by the Illinois Gaming Board to develop American Place, a new gaming and entertainment destination located in Waukegan, Illinois, a northern suburb of Chicago, subject to customary regulatory approvals. The permanent American Place facility is slated to include a world-class casino with a state-of-the-art sports book; a premium boutique hotel comprised of 20 luxurious villas, each ranging from 1,500 to 2,500 square feet with full butler service; a 1,500-seat live entertainment venue; a gourmet restaurant that will rival the finest restaurants in Chicago; additional eateries and bars; and other amenities that will attract gaming and non-gaming patrons from throughout Chicagoland and beyond. While the larger, more lavish, permanent facility is under construction, the Company will operate a temporary casino facility, aptly named The Temporary by American Place. The Temporary is slated to include approximately 1,000 slot machines, 50 table games, a sportsbook, a fine-dining restaurant, two additional restaurants, and a center bar.
In March 2022, the Company acquired ten acres of land adjoining approximately 30 acres owned by the City of Waukegan. The Company also recently entered into a lease for nearby office space.
Last week, the Company entered into a memorandum of understanding (“MOU”) with the City of Waukegan, which documents the material terms of the lease for the approximately 30 acres owned by the City. Upon execution of the MOU, the Company received certain approvals enabling the start of construction for The Temporary. Fabrication of The Temporary’s “Sprung structure” is now complete and is scheduled for arrival beginning in early June. We expect to open The Temporary in Fall 2022, pending customary gaming approvals.
- Corporate. Corporate expenses increased modestly during the first quarter of 2022, primarily due to additional professional fees and other expenses related to the Company’s growth. Segment expenses were $2.0 million and $1.9 million for the first quarters of 2022 and 2021, respectively.
Liquidity and Capital Resources
As of March 31, 2022, the Company had $319.5 million in cash and cash equivalents (including $210.5 million of cash reserved for the construction of Chamonix) and $410.0 million in outstanding senior secured notes due 2028. In February 2022, the Company closed a private offering of $100.0 million aggregate principal amount of additional 8.25% senior secured notes due 2028 (the “Additional Notes”). The Additional Notes were sold at a price of 102.0% of the principal amount and were issued pursuant to an indenture under which the Company issued $310.0 million of identical senior secured notes in February 2021. The Company also amended its revolving credit agreement to, among other things, increase its borrowing capacity from $15.0 million to $40.0 million. The proceeds from the expansion of the Company’s debt facilities are expected to be used to fund the approximately $100 million needed to construct and outfit The Temporary, as well as the upfront tax payments required to be paid to the State of Illinois when the casino opens. As of May 9, 2022, there were no drawn amounts under the credit facility and an outstanding standby letter of credit of $1 million related to the American Place project.
Conference Call Information
The Company will host a conference call for investors today, May 9, 2022, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2022 first 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 (844) 826-3035 or, for international callers, (412) 317-5195.
A replay of the conference call will be available shortly after the conclusion of the call through May 23, 2022. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (844) 512-2921 or, for international callers, (412) 317-6671 and using the passcode 10166705.
(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 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 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 | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenues | ||||||||
| Casino | $ | 29,084 | $ | 32,064 | ||||
| Food and beverage | 6,511 | 6,101 | ||||||
| Hotel | 2,179 | 2,211 | ||||||
| Other operations, including contracted sports wagering | 3,649 | 1,832 | ||||||
| 41,423 | 42,208 | |||||||
| Operating costs and expenses | ||||||||
| Casino | 9,875 | 10,339 | ||||||
| Food and beverage | 6,568 | 5,360 | ||||||
| Hotel | 1,071 | 1,056 | ||||||
| Other operations | 462 | 395 | ||||||
| Selling, general and administrative | 15,393 | 14,413 | ||||||
| Project development costs | 165 | 47 | ||||||
| Preopening costs | 786 | — | ||||||
| Depreciation and amortization | 1,792 | 1,800 | ||||||
| Loss on disposal of assets, net | 8 | 104 | ||||||
| 36,120 | 33,514 | |||||||
| Operating income | 5,303 | 8,694 | ||||||
| Other expense | ||||||||
| Interest expense, net of capitalized interest | (6,399 | ) | (4,456 | ) | ||||
| Loss on modification and extinguishment of debt | (4,406 | ) | (6,134 | ) | ||||
| Adjustment to fair value of warrants | — | (1,347 | ) | |||||
| (10,805 | ) | (11,937 | ) | |||||
| Loss before income taxes | (5,502 | ) | (3,243 | ) | ||||
| Income tax (benefit) provision | (5,612 | ) | 202 | |||||
| Net income (loss) | $ | 110 | $ | (3,445 | ) | |||
| Basic earnings (loss) per share | $ | — | $ | (0.13 | ) | |||
| Diluted earnings (loss) per share | $ | — | $ | (0.13 | ) | |||
| Basic weighted average number of common shares outstanding | 34,262 | 27,357 | ||||||
| Diluted weighted average number of common shares outstanding | 36,623 | 27,357 | ||||||
Full House Resorts, Inc.
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenues | ||||||||
| Mississippi | $ | 21,313 | $ | 22,356 | ||||
| Indiana | 8,636 | 8,590 | ||||||
| Colorado | 4,233 | 5,905 | ||||||
| Nevada | 4,411 | 4,368 | ||||||
| Contracted Sports Wagering | 2,830 | 989 | ||||||
| $ | 41,423 | $ | 42,208 | |||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||
| Mississippi | $ | 5,950 | $ | 7,630 | ||||
| Indiana | 1,138 | 1,134 | ||||||
| Colorado | (319 | ) | 1,710 | |||||
| Nevada | 828 | 1,224 | ||||||
| Contracted Sports Wagering | 2,767 | 976 | ||||||
| Adjusted Segment EBITDA | 10,364 | 12,674 | ||||||
| Corporate | (1,967 | ) | (1,905 | ) | ||||
| Adjusted EBITDA | $ | 8,397 | $ | 10,769 | ||||
__________
(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.
Supplemental Information
Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Net income (loss) | $ | 110 | $ | (3,445 | ) | |||
| Income tax (benefit) provision | (5,612 | ) | 202 | |||||
| Interest expense, net of amounts capitalized | 6,399 | 4,456 | ||||||
| Loss on modification and extinguishment of debt | 4,406 | 6,134 | ||||||
| Adjustment to fair value of warrants | — | 1,347 | ||||||
| Operating income | 5,303 | 8,694 | ||||||
| Project development costs | 165 | 47 | ||||||
| Preopening costs | 786 | — | ||||||
| Depreciation and amortization | 1,792 | 1,800 | ||||||
| Loss on disposal of assets, net | 8 | 104 | ||||||
| Stock-based compensation | 343 | 124 | ||||||
| Adjusted EBITDA | $ | 8,397 | $ | 10,769 | ||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended March 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 | ||||||||||||||||||||||
| Mississippi | $ | 5,251 | $ | 692 | $ | 7 | $ | — | $ | — | $ | — | $ | 5,950 | ||||||||
| Indiana | 558 | 580 | — | — | — | — | 1,138 | |||||||||||||||
| Colorado | (662 | ) | 342 | 1 | — | — | — | (319 | ) | |||||||||||||
| Nevada | 683 | 145 | — | — | — | — | 828 | |||||||||||||||
| Contracted Sports Wagering | 2,767 | — | — | — | — | — | 2,767 | |||||||||||||||
| 8,597 | 1,759 | 8 | — | — | — | 10,364 | ||||||||||||||||
| Other operations | ||||||||||||||||||||||
| Corporate | (3,294 | ) | 33 | — | 165 | 786 | 343 | (1,967 | ) | |||||||||||||
| $ | 5,303 | $ | 1,792 | $ | 8 | $ | 165 | $ | 786 | $ | 343 | $ | 8,397 | |||||||||
| Three Months Ended March 31, 2021 | |||||||||||||||||||
| Adjusted | |||||||||||||||||||
| Segment | |||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | ||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | ||||||||||||||
| Reporting segments | |||||||||||||||||||
| Mississippi | $ | 6,948 | $ | 660 | $ | 22 | $ | — | $ | — | $ | 7,630 | |||||||
| Indiana | 518 | 616 | — | — | — | 1,134 | |||||||||||||
| Colorado | 1,281 | 347 | 82 | — | — | 1,710 | |||||||||||||
| Nevada | 1,085 | 139 | — | — | — | 1,224 | |||||||||||||
| Contracted Sports Wagering | 976 | — | — | — | — | 976 | |||||||||||||
| 10,808 | 1,762 | 104 | — | — | 12,674 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (2,114 | ) | 38 | — | 47 | 124 | (1,905 | ) | |||||||||||
| $ | 8,694 | $ | 1,800 | $ | 104 | $ | 47 | $ | 124 | $ | 10,769 | ||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by Full House and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budget, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix and American Place, including The Temporary; our expectations regarding our ability to receive regulatory approvals for American Place and The Temporary; and our expectations regarding our ability to replace any terminated sports wagering contracts in Colorado and Indiana and the success of any new sports wagering contracts in Colorado, Indiana or Illinois. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Full House. Such risks include, without limitation, our ability to repay our substantial indebtedness; the potential for additional adverse impacts from the COVID-19 pandemic, including the emergence of variants, on our business, construction projects, indebtedness, financial condition and operating results; potential actions by government officials at the federal, state or local level in connection with the COVID-19 pandemic, including, without limitation, additional shutdowns, travel restrictions, social distancing measures or shelter-in-place orders; our ability to effectively manage and control expenses as a result of the pandemic; our ability to complete Chamonix, American Place, and The Temporary on-time and on-budget; various approvals that are required to lease the primary American Place site from the City of Waukegan, including approvals from the Illinois Gaming Board; the successful entry into replacement sports wagering contracts in Colorado and Indiana; 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 The Temporary at American Place, a new casino in Waukegan, Illinois; and Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado. 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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