Nasdaq:FLL
Full House Resorts Announces Second Quarter Results and Provides Construction Updates for Its Growth Projects
- Construction of Company’s Two Major Growth Projects Continues, with Significant Progress in the Quarter
- Erection of the Sprung Structure is Nearly Complete at The Temporary in Waukegan, Illinois
- Casino Opening Anticipated in the Fourth Quarter of 2022
- Tower One of Chamonix Casino Hotel in Cripple Creek, Colorado, has Topped Off
- Second Hotel Tower Will Top Off Within a Few Weeks
- Last Hotel Tower is Beginning to Rise from its Foundations, as Scheduled
- Opening is Anticipated in Mid-2023
- Erection of the Sprung Structure is Nearly Complete at The Temporary in Waukegan, Illinois
- Management is Confident that its Existing Cash On-Hand and Other Existing Resources are Sufficient to Complete Both The Temporary and Chamonix
- Agreement Reached with Circa Sports for Internet and On-site Sports Wagering in Illinois
- Operating Results Compared Well to Pre-Pandemic Results, but Lagged Prior-Year Results Principally due to Absence of Stimulus Spending, Construction Disruption in Colorado and Increased Property Insurance Costs
LAS VEGAS, Aug. 02, 2022 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the second quarter ended June 30, 2022, including a construction update for its two major new casinos.
“We made significant progress on our growth projects during the second quarter,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Our casino site in Waukegan, Illinois, has been transformed, with the Sprung structure now nearly complete. We are now installing utilities within the structure for items like bathrooms, bars, and slot machines, and expect to pour the floor slab within the next month. We have identified and are placing orders for The Temporary’s approximately 1,000 slot machines, have hired much of the management team for the property, and have begun hosting job fairs for positions throughout the casino. When The Temporary opens, as anticipated, in the fourth quarter of 2022, it will be the only casino in Lake County, Illinois, which has a population of approximately 700,000 and ranks as one of the wealthiest counties in the U.S.
“At our Chamonix project in Cripple Creek, Colorado, construction also continues at a swift pace,” continued Mr. Lee. “The central tower, which anchors the casino and includes the spa, has topped out. The parking garage is complete, and the guest rooms above the garage are starting to take shape. Foundations for the final guest room tower are currently being completed. Brick and glass are now being installed on the facade. When complete, Chamonix will be one of the larger casino hotels in Colorado and easily the largest and most luxurious casino hotel in Cripple Creek, which is the primary casino destination for the Colorado Springs market. Cripple Creek is approximately one hour from the roughly one million people who live in the Colorado Springs MSA and two hours from the approximately four million people who reside in the Denver area. Chamonix is currently anticipated to open in mid-2023.”
For project renderings and live construction webcams, please visit www.AmericanPlace.com and www.ChamonixCO.com.
“Our anticipated opening dates have slipped a few weeks, reflecting supply issues and normal construction challenges. Our anticipated investment in each project, however, remains within budgets,” added Lewis Fanger, the Company’s Chief Financial Officer.
“The Temporary is expected to cost in the neighborhood of $100 million, which consists largely of the Sprung structure; slot machines, decor and facilities within the Sprung structure; surrounding site work; preopening costs; and an estimated $33 million of upfront license fees. A significant portion of the $100 million budget, including payments for the purchase of slot machines, will not be due until after the opening of The Temporary. We anticipate some additional investments for storm sewers and other site infrastructure that is required for construction of the permanent casino, which is planned to be built on land adjoining The Temporary. The permanent American Place casino is anticipated to open by late 2025, within three years of the opening of The Temporary.”
Continued Mr. Fanger, “The construction cost of Chamonix is still estimated to be within its budget of $250 million, including contingencies. This does not include refurbishment of the adjoining, existing Bronco Billy’s casino. We are currently doing a light remodel of certain portions of Bronco Billy’s, estimated to cost approximately $2 million. While we have plans for a more extensive refurbishment of Bronco Billy’s, we have decided to defer such potential project until after the opening of Chamonix.
“At June 30, 2022, we had $298.4 million of cash and equivalents, including $190.2 million of cash that is reserved for the completion of Chamonix. We also have a $40 million credit facility, which is currently unutilized except for a $1 million standby letter of credit. We are confident that our existing cash, credit line availability and cash flows from operations will be sufficient to complete both The Temporary and Chamonix.
“Eventually, we anticipate requiring additional financing for construction of the permanent American Place facility,” concluded Mr. Fanger. “The costs of planning and construction for the early stages of that project are relatively modest. Some of those costs are being incurred now, with the construction of The Temporary, as mentioned previously. Management does not anticipate needing to arrange the balance of the financing for the permanent American Place until 2024, after both The Temporary and Chamonix have been open for some period of time. At that point, we anticipate that our leverage will be lower than historical leverage ratios in the gaming industry. With our existing bonds, which have a fixed rate and comprise most of our debt, becoming callable in February 2024, we anticipate arranging the additional debt financing needed for construction of the permanent American Place as part of the refinancing of those bonds. Finally, note that if the financial markets at that time are unfavorable, we still have in place a back-up financing arrangement with a major financial institution.”
On a consolidated basis, revenues in the second quarter of 2022 were $44.4 million, a decrease from $47.4 million in the prior-year period. Net loss for the second quarter of 2022 was $(4.4) million, or $(0.13) per diluted common share, which includes $1.6 million of preopening and development costs related to the Company’s growth projects. In the prior-year period, net income was $5.5 million, or $0.15 per diluted common share, including $126,000 of project development costs. Adjusted EBITDA(a) in the 2022 second quarter was $12.1 million versus $14.9 million in the prior-year period, largely due to planned construction disruptions at Bronco Billy’s; 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 second quarter was the Company’s strongest in recent years, having benefited from customers receiving government subsidy payments due to the COVID-19 pandemic.
Second Quarter Highlights and Subsequent Events
- Mississippi. Silver Slipper Casino and Hotel’s revenues were $21.1 million in the second quarter of 2022, versus $24.2 million in the prior-year period. The prior-year period was the best second quarter in the property’s history, having benefited from customers receiving government stimulus payments due to the COVID-19 pandemic, and thus making for a difficult comparison. The revenue decline also reflects the competitive launch of online sports wagering within nearby Louisiana, with sports wagering revenues declining from $0.5 million to $0.1 million in the second quarter of 2022. Adjusted Segment EBITDA was $5.3 million, reflecting the revenue declines noted above, as well as a $0.6 million increase in normal operating expenses, primarily property insurance and food costs. Adjusted Segment EBITDA was $9.0 million in the prior-year period.
Reportedly due to high damage claims in recent years, the cost of property insurance has risen significantly in recent years, both for our Company and, reportedly, in general. Property insurance costs at the Silver Slipper, for example, have increased from $2.5 million in 2020 to $3.2 million in 2021 and are anticipated to be $4.9 million in 2022. The increase in such costs in the second quarter was $0.4 million over the prior-year period. Management believes that such costs will improve in future years, at least relative to our operations. First, we believe the cost of insurance tends to go in cycles, with today’s high pricing potentially attracting more companies to the property insurance market, increasing competition. Second, the new properties that we are currently building are larger, in many respects, than our existing properties and are not located in hurricane zones. We believe that diversity should allow us to negotiate better terms for our insurance. Finally, as the Silver Slipper becomes a smaller portion of the Company’s overall financial position, we may reexamine the appropriate terms of the property insurance for that asset.
- Indiana. Rising Star Casino Resort’s revenues were $11.8 million in the second quarter of 2022, an 11.5% increase from $10.6 million in the second quarter of 2021. The increase was the result of the sale of “free play,” which resulted in $2.1 million of revenue and income in the second quarter of 2022. Rising Star also sold its “free play” for $2.1 million during 2021, although not until the third quarter. Excluding the free play sale, segment revenues declined in the second quarter of 2022, as Rising Star benefited from customers receiving government stimulus payments in the prior-year period. Adjusted Segment EBITDA was $3.9 million in the second quarter of 2022, up 46.1% from the prior-year period. The free play sale, as well as a $0.1 million reduction in normal operating expenses, helped offset a decline in total casino revenue.
- 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 second quarter of 2022 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 major portions of the casino. To alleviate the lack of on-site parking, Bronco Billy’s currently offers complimentary valet parking and a free shuttle service to an off-site parking lot, both of which resulted in increased operating expenses. The casino has also maintained much of its payroll, despite reduced activity levels, anticipating the need for the larger workforce required to open and operate Chamonix. Nevertheless, some expenses, such as gaming taxes and costs of food and beverages, vary with activity levels. Revenues were $4.1 million in the second quarter of 2022, versus $6.4 million in the prior-year period. Adjusted Segment EBITDA was $0.2 million, versus $1.8 million.
- 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 $5.2 million in the second quarter of 2022, an increase from $4.7 million in the prior-year period. Both properties in this segment benefitted in the prior-year period from customers receiving federal stimulus checks. Grand Lodge, moreover, also benefitted from a gradual recovery from the pandemic, such that the recent quarter achieved more normal levels of operation than did the year-ago quarter. Adjusted Segment EBITDA for both quarters was $1.4 million, with the increase in revenue offset by an increase in labor costs.
- 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 $2.2 million in the second quarter of 2022, an increase from $1.5 million in the prior-year period. These results reflect an acceleration of deferred revenue for two agreements that ceased operations in May 2022, when one of the Company’s contracted parties ceased operations. We anticipate entering into new agreements for the utilization of such skins, one each in Indiana and Colorado, but there can be no assurance that we will be able to replace these agreements on similar or better 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 based on a percentage of sports betting revenues, with a minimum annualized payment of $5 million. The term of the agreement is for eight years, followed by two four-year extension opportunities at the option of Circa Sports.
Liquidity and Capital Resources
As of June 30, 2022, the Company had $298.4 million in cash and cash equivalents (including $190.2 million of cash reserved to complete the construction of Chamonix) and $410.0 million in outstanding senior secured notes due 2028. As of August 2, 2022, there were no drawn amounts under the Company’s $40 million 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, August 2, 2022, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2022 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 (888) 220-8451 or, for international callers, (323) 794-2588.
A replay of the conference call will be available shortly after the conclusion of the call through August 16, 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 2259060.
(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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 29,488 | $ | 34,647 | $ | 58,572 | $ | 66,711 | ||||||||
| Food and beverage | 6,933 | 7,440 | 13,444 | 13,541 | ||||||||||||
| Hotel | 2,407 | 2,510 | 4,586 | 4,721 | ||||||||||||
| Other operations, including contracted sports wagering | 5,555 | 2,845 | 9,204 | 4,677 | ||||||||||||
| 44,383 | 47,442 | 85,806 | 89,650 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 10,106 | 11,087 | 19,981 | 21,426 | ||||||||||||
| Food and beverage | 6,752 | 5,928 | 13,320 | 11,288 | ||||||||||||
| Hotel | 1,197 | 1,140 | 2,268 | 2,196 | ||||||||||||
| Other operations | 545 | 551 | 1,007 | 946 | ||||||||||||
| Selling, general and administrative | 14,184 | 14,007 | 29,577 | 28,420 | ||||||||||||
| Project development costs | 17 | 126 | 182 | 173 | ||||||||||||
| Preopening costs | 1,534 | — | 2,320 | — | ||||||||||||
| Depreciation and amortization | 1,834 | 1,829 | 3,626 | 3,629 | ||||||||||||
| (Gain) loss on disposal of assets, net | (5 | ) | 568 | 3 | 672 | |||||||||||
| 36,164 | 35,236 | 72,284 | 68,750 | |||||||||||||
| Operating income | 8,219 | 12,206 | 13,522 | 20,900 | ||||||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense, net of capitalized interest | (6,988 | ) | (6,670 | ) | (13,387 | ) | (11,126 | ) | ||||||||
| (Loss) gain on modification and extinguishment of debt, net | (19 | ) | 30 | (4,425 | ) | (6,104 | ) | |||||||||
| Adjustment to fair value of warrants | — | — | — | (1,347 | ) | |||||||||||
| (7,007 | ) | (6,640 | ) | (17,812 | ) | (18,577 | ) | |||||||||
| Income (loss) before income taxes | 1,212 | 5,566 | (4,290 | ) | 2,323 | |||||||||||
| Income tax provision (benefit) | 5,567 | 82 | (45 | ) | 284 | |||||||||||
| Net (loss) income | $ | (4,355 | ) | $ | 5,484 | $ | (4,245 | ) | $ | 2,039 | ||||||
| Basic (loss) earnings per share | $ | (0.13 | ) | $ | 0.16 | $ | (0.12 | ) | $ | 0.07 | ||||||
| Diluted (loss) earnings per share | $ | (0.13 | ) | $ | 0.15 | $ | (0.12 | ) | $ | 0.06 | ||||||
| Basic weighted average number of common shares outstanding | 34,364 | 34,156 | 34,313 | 30,776 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 34,416 | 36,628 | 34,358 | 33,156 | ||||||||||||
Full House Resorts, Inc.
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | ||||||||||||||||
| Mississippi | $ | 21,139 | $ | 24,239 | $ | 42,450 | $ | 46,596 | ||||||||
| Indiana | 11,797 | 10,577 | 20,432 | 19,167 | ||||||||||||
| Colorado | 4,112 | 6,382 | 8,347 | 12,286 | ||||||||||||
| Nevada | 5,166 | 4,715 | 9,577 | 9,083 | ||||||||||||
| Contracted Sports Wagering | 2,169 | 1,529 | 5,000 | 2,518 | ||||||||||||
| $ | 44,383 | $ | 47,442 | $ | 85,806 | $ | 89,650 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Mississippi | $ | 5,255 | $ | 8,983 | $ | 11,206 | $ | 16,613 | ||||||||
| Indiana | 3,894 | 2,666 | 5,033 | 3,799 | ||||||||||||
| Colorado | 236 | 1,839 | (86 | ) | 3,548 | |||||||||||
| Nevada | 1,448 | 1,412 | 2,277 | 2,636 | ||||||||||||
| Contracted Sports Wagering | 2,196 | 1,500 | 4,964 | 2,477 | ||||||||||||
| Adjusted Segment EBITDA | 13,029 | 16,400 | 23,394 | 29,073 | ||||||||||||
| Corporate | (943 | ) | (1,472 | ) | (2,911 | ) | (3,376 | ) | ||||||||
| Adjusted EBITDA | $ | 12,086 | $ | 14,928 | $ | 20,483 | $ | 25,697 | ||||||||
__________
(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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net (loss) income | $ | (4,355 | ) | $ | 5,484 | $ | (4,245 | ) | $ | 2,039 | |||||
| Income tax provision (benefit) | 5,567 | 82 | (45 | ) | 284 | ||||||||||
| Interest expense, net of amounts capitalized | 6,988 | 6,670 | 13,387 | 11,126 | |||||||||||
| Loss (gain) on modification and extinguishment of debt, net | 19 | (30 | ) | 4,425 | 6,104 | ||||||||||
| Adjustment to fair value of warrants | — | — | — | 1,347 | |||||||||||
| Operating income | 8,219 | 12,206 | 13,522 | 20,900 | |||||||||||
| Project development costs | 17 | 126 | 182 | 173 | |||||||||||
| Preopening costs | 1,534 | — | 2,320 | — | |||||||||||
| Depreciation and amortization | 1,834 | 1,829 | 3,626 | 3,629 | |||||||||||
| (Gain) loss on disposal of assets, net | (5 | ) | 568 | 3 | 672 | ||||||||||
| Stock-based compensation | 487 | 199 | 830 | 323 | |||||||||||
| Adjusted EBITDA | $ | 12,086 | $ | 14,928 | $ | 20,483 | $ | 25,697 | |||||||
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, 2022 | |||||||||||||||||||||||
| Adjusted | |||||||||||||||||||||||
| Segment | |||||||||||||||||||||||
| Operating | Depreciation | Gain on | Project | Stock- | EBITDA and | ||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | |||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | |||||||||||||||||
| Reporting segments | |||||||||||||||||||||||
| Mississippi | $ | 4,561 | $ | 694 | $ | — | $ | — | $ | — | $ | — | $ | 5,255 | |||||||||
| Indiana | 3,307 | 587 | — | — | — | — | 3,894 | ||||||||||||||||
| Colorado | (781 | ) | 353 | (5 | ) | — | 669 | — | 236 | ||||||||||||||
| Nevada | 1,277 | 171 | — | — | — | — | 1,448 | ||||||||||||||||
| Contracted Sports Wagering | 2,196 | — | — | — | — | — | 2,196 | ||||||||||||||||
| 10,560 | 1,805 | (5 | ) | — | 669 | — | 13,029 | ||||||||||||||||
| Other operations | |||||||||||||||||||||||
| Corporate | (2,341 | ) | 29 | — | 17 | 865 | 487 | (943 | ) | ||||||||||||||
| $ | 8,219 | $ | 1,834 | $ | (5 | ) | $ | 17 | $ | 1,534 | $ | 487 | $ | 12,086 | |||||||||
| 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 | ||||||||
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, 2022 | |||||||||||||||||||||||
| Adjusted | |||||||||||||||||||||||
| Segment | |||||||||||||||||||||||
| Operating | Depreciation | Loss (gain) on | Project | Stock- | EBITDA and | ||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | |||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | |||||||||||||||||
| Reporting segments | |||||||||||||||||||||||
| Mississippi | $ | 9,813 | $ | 1,385 | $ | 8 | $ | — | $ | — | $ | — | $ | 11,206 | |||||||||
| Indiana | 3,866 | 1,167 | — | — | — | — | 5,033 | ||||||||||||||||
| Colorado | (1,445 | ) | 695 | (5 | ) | — | 669 | — | (86 | ) | |||||||||||||
| Nevada | 1,960 | 317 | — | — | — | — | 2,277 | ||||||||||||||||
| Contracted Sports Wagering | 4,964 | — | — | — | — | — | 4,964 | ||||||||||||||||
| 19,158 | 3,564 | 3 | — | 669 | — | 23,394 | |||||||||||||||||
| Other operations | |||||||||||||||||||||||
| Corporate | (5,636 | ) | 62 | — | 182 | 1,651 | 830 | (2,911 | ) | ||||||||||||||
| $ | 13,522 | $ | 3,626 | $ | 3 | $ | 182 | $ | 2,320 | $ | 830 | $ | 20,483 | ||||||||||
| 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 | ||||||||
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 our control. Such risks include, without limitation, our ability to repay our substantial indebtedness; 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; 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; 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; 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. 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:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
Photos accompanying this announcement are available at
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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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