Nasdaq:FLL
Full House Resorts Announces Fourth Quarter Results
– The Temporary by American Place Officially Opened on February 17th; Illinois Sports Skin Expected to Commence Operations in the Coming Months
– Construction Continues at Chamonix Casino Hotel, with an Opening Expected in the Second Half of 2023
– Executed New Sports Skin Agreement in Colorado
– Lease Agreement to Operate Grand Lodge Casino in Lake Tahoe Extended to December 31, 2024
– Completed a $40 Million Bond Deal in February, Further Ensuring That No Additional Capital Will be Required Prior to Arranging Financing for the Permanent American Place Casino
LAS VEGAS, March 07, 2023 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2022, including updates regarding its growth pipeline.
“On February 17th, The Temporary by American Place officially opened to the public,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “We are very pleased with the positive response received from guests thus far, with many commenting that The Temporary is one of the nicest casinos in the area, despite being in a temporary structure. In its first twelve days of operation, we welcomed more than 40,000 guests through its doors.
“Typical of many new casinos, we opened at less than full capacity. On opening night, for example, only approximately 80% of our slot floor and 60% of our permitted table games were available. Over the coming weeks, we expect to further augment the number of available games on our floor and increase the hours of operation for our table games, which currently operate from 2 p.m. to 2 a.m. As our team gains more experience, we also expect to operate the casino 24 hours per day, versus our current schedule of 8 a.m. to 4 a.m.
“We are currently operating only one of our restaurants, L’Américain. We expect to open our Asia-Azteca fusion restaurant in the next few weeks. A third restaurant, North Shore Steaks and Seafood, is expected to be completed and open in the second quarter. Given the early response to The Temporary, we remain confident in our ability to generate attractive returns from both The Temporary and our future American Place destination.”
Continued Mr. Lee, “At our Chamonix project in Cripple Creek, Colorado, we continue to make substantial progress. Drywall is being installed in guest rooms and the public areas. We recently installed the escalators from the entry level up to the second-floor meeting space, and are preparing for the installation of elevators. We continue to target an opening of Chamonix later this year, potentially with a phased opening beginning in the third quarter of 2023.”
For project renderings and live construction webcams, please visit www.AmericanPlace.com and www.ChamonixCO.com.
On a consolidated basis, revenues in the fourth quarter of 2022 were $36.1 million, a decrease from $43.3 million in the prior-year period. Net loss for the fourth quarter of 2022 was $7.0 million, or a loss of $0.20 per diluted common share, which includes $4.8 million of preopening and development costs. In the prior-year period, net income was $5.0 million, or $0.14 per diluted common share, including $0.3 million of development costs. Adjusted EBITDA(a) in the 2022 fourth quarter, which is a seasonally slow quarter, was $3.9 million versus $7.9 million in the prior-year period. The change reflects adverse weather in December 2022; construction disruptions at Bronco Billy’s; the launch of competing online sports wagering in Louisiana; and increases in certain expenses, notably for property insurance and food costs.
For the full year, revenues were $163.3 million, net loss was $14.8 million, and Adjusted EBITDA was $32.1 million in 2022. In 2021, which benefited from guests receiving government stimulus checks, revenues were $180.2 million, net income was $11.7 million, and Adjusted EBITDA was $47.2 million.
Fourth Quarter Highlights and Subsequent Events
- Mississippi. Silver Slipper Casino and Hotel’s revenues were $18.4 million in the fourth quarter of 2022, versus $22.5 million in the prior-year period. Results in the fourth quarter of 2022 were adversely affected by the competitive launch of online sports wagering within nearby Louisiana that started in January 2022, colder than normal temperatures, and significant marketing promotions at a nearby competitor. Adjusted Segment EBITDA was $4.0 million, reflecting the revenue declines noted above, as well as an increase in certain operating expenses, including an increase of $0.2 million for property insurance. Adjusted Segment EBITDA was $6.7 million in the prior-year period.
Similar factors affected Silver Slipper’s annual results. Revenues declined from $90.6 million in 2021 to $80.9 million in 2022, primarily as a result of the absence of government stimulus checks in 2022 and new competition from online sports betting in Louisiana. The cost of property insurance and certain food items also increased significantly. As a result, Adjusted Segment EBITDA in 2022 was $19.5 million, versus $29.8 million in 2021. Despite being down from the prior year, the Silver Slipper’s revenues and Adjusted Segment EBITDA in 2022 were the second highest in its 16-year history.
- Indiana. Rising Star Casino Resort’s revenues were $9.0 million in the fourth quarter of 2022, compared to $9.7 million in the fourth quarter of 2021. As with the Company’s other casinos, significant snowstorms adversely affected Rising Star, especially in December 2022. Additionally, a competitor in nearby Northern Kentucky with “historical racing machines” (which are a form of slot machine) opened in September 2022. Adjusted Segment EBITDA was $0.5 million in the fourth quarter of 2022, versus $1.1 million in the prior-year period.
For the year, revenues in the Indiana segment fell 5.7%, due to the absence of government stimulus checks and a new competitor that opened in September 2022 in nearby Northern Kentucky. Operating expenses declined, helping to offset the decline in revenues. Adjusted Segment EBITDA for 2022 was $6.9 million, versus $8.7 million in 2021. Even at that reduced level, Rising Star’s Adjusted Segment EBITDA in 2022 was its second best overall in ten years.
- Colorado. This segment includes Bronco Billy’s Casino and Hotel and, upon its opening, Chamonix Casino Hotel. The Colorado gaming market, including Cripple Creek, has shown significant growth since betting limits were eliminated in May 2021. Bronco Billy’s, however, has incurred significant construction disruption, including temporarily-reduced gaming and restaurant capacity and the temporary absence of all on-site hotel rooms and on-site self-parking. 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.
Prior to the pandemic and commencement of construction, Bronco Billy’s had 827 slot machines and 10 table games. Approximately 41% of its pre-existing gaming space was closed in November 2021 to facilitate construction of Chamonix. Then, in May 2022, additional gaming capacity was closed, as well as the property’s steakhouse, for refurbishment. The refurbished portion of the casino reopened in late December, though the property continues to operate today with approximately half the gaming positions than it had prior to the pandemic. The steakhouse is being recast as an Italian restaurant and is expected to open in the third quarter. Hence, during virtually all of the fourth quarter and a significant portion of the year, Bronco Billy’s was operating with approximately 45% of the gaming space that it had prior to the pandemic and commencement of construction, as well as significantly fewer food and beverage options. The casino has meanwhile maintained much of its payroll, despite reduced activity levels, anticipating the need for the larger workforce required to open and operate Chamonix. Partially offsetting this, some expenses, such as the cost of food and beverages, vary with activity levels. Revenues were $3.5 million in the fourth quarter of 2022, versus $5.0 million in the prior-year period. Adjusted Segment EBITDA in this off-season quarter reflected a small loss, versus a small profit in the prior year period.
Construction likewise affected results for the year. Revenues in 2022 were $16.2 million, versus $23.7 million in 2021. Adjusted Segment EBITDA was a loss of $688,000 for 2022, versus positive Adjusted Segment EBITDA of $5.5 million in 2021. When Chamonix opens later this year, Bronco Billy’s will share the significant on-site parking garage, valet and surface parking capacity of the new casino. It will also benefit from Chamonix’s adjoining 300-guestroom hotel.
- 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 $4.1 million in the fourth quarter of 2022, compared to $4.3 million in the prior-year period. Results in the fourth quarter of 2022 reflect a significant snowstorm in the Lake Tahoe area, with snowfall lasting until late on the important New Year’s Eve holiday. Adjusted Segment EBITDA of $0.4 million in the fourth quarter of 2022 compares to $0.8 million in the prior-year period.
For the year, the Nevada segment’s revenues rose 7.7% over the prior year, despite the absence of government stimulus checks. This largely reflected the recovery of tourism to the Lake Tahoe region. Adjusted Segment EBITDA was approximately flat at $4.9 million in both years.
In February 2023, the Company extended the expiration of its agreement to lease the Grand Lodge Casino from August 31, 2023 to December 31, 2024, after which time portions of the Hyatt Lake Tahoe are expected to undergo enhancement work.
- 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 $1.1 million in the fourth quarter of 2022, versus $1.8 million in the prior-year period. These results reflect two agreements that ceased operations in May 2022, when one of the Company’s contracted parties ended its online operations. In December 2022, the Company executed an agreement with a replacement operator for its available Colorado sports skin, which began its contractual term this week. The Company continues to evaluate the best use for its available skin in Indiana, including whether to utilize such skin itself or find a replacement third-party operator.
For the year, this segment’s revenues grew 21.6%, from $5.9 million in 2021 to $7.2 million in 2022, and Adjusted Segment EBITDA rose 21.0%, from $5.9 million to $7.1 million. The increase reflects an additional skin that contractually went live on December 1, 2021, as well as an acceleration of deferred revenue for two agreements that ceased operations in May 2022, as noted above.
The results of this segment do not yet include income contribution from the Company’s Illinois sports skin or the recently-executed agreement for its Colorado sports skin. Similar to the Company’s other sports wagering agreements, the Company will receive a percentage of revenues, as defined in the contracts, with minimal expected expenses. The total annualized minimum amount for all six of the Company’s sports wagering agreements will be $10 million once these two additional skins are live. The new Colorado sports skin began its contractual term in March 2023, and the Company believes that its Illinois sports skin will begin operations in Spring 2023, pending customary regulatory approvals.
Liquidity and Capital Resources
As of December 31, 2022, the Company had $191.2 million in cash and cash equivalents, including $134.6 million of cash reserved under its bond indentures to complete the construction of Chamonix. Its debt consisted primarily of $410.0 million in outstanding senior secured notes due 2028, which become callable at specified premiums beginning in February 2024. In February 2023, the Company further augmented its available liquidity through the issuance of $40.0 million of additional senior secured notes due 2028, which are likewise callable beginning in February 2024. Prior to the February 2023 issuance of additional notes – and in anticipation of the payment of significant gaming license fees related to The Temporary’s opening – the Company drew $36.0 million from its revolver, which currently remains outstanding.
Conference Call Information
The Company will host a conference call for investors today, March 7, 2023, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2022 fourth quarter results. Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through March 21, 2023. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13736741.
(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 | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenues | |||||||||||||||
| Casino | $ | 25,583 | $ | 31,214 | $ | 113,876 | $ | 130,431 | |||||||
| Food and beverage | 6,239 | 6,714 | 26,494 | 27,347 | |||||||||||
| Hotel | 2,206 | 2,434 | 9,282 | 9,624 | |||||||||||
| Other operations, including contracted sports wagering | 2,054 | 2,909 | 13,629 | 12,757 | |||||||||||
| 36,082 | 43,271 | 163,281 | 180,159 | ||||||||||||
| Operating costs and expenses | |||||||||||||||
| Casino | 9,515 | 11,078 | 39,788 | 43,765 | |||||||||||
| Food and beverage | 6,238 | 6,270 | 26,372 | 23,757 | |||||||||||
| Hotel | 1,282 | 1,112 | 4,806 | 4,444 | |||||||||||
| Other operations | 574 | 458 | 2,168 | 1,980 | |||||||||||
| Selling, general and administrative | 14,911 | 16,754 | 59,706 | 59,965 | |||||||||||
| Project development costs, net | 195 | 291 | 228 | 782 | |||||||||||
| Preopening costs | 4,644 | — | 9,558 | 17 | |||||||||||
| Depreciation and amortization | 1,918 | 1,771 | 7,930 | 7,219 | |||||||||||
| Loss on disposal of assets, net | 39 | 2 | 42 | 676 | |||||||||||
| 39,316 | 37,736 | 150,598 | 142,605 | ||||||||||||
| Operating (loss) income | (3,234 | ) | 5,535 | 12,683 | 37,554 | ||||||||||
| Other (expense) income | |||||||||||||||
| Interest expense, net | (3,763 | ) | (6,126 | ) | (22,988 | ) | (23,657 | ) | |||||||
| Gain (loss) on modification and extinguishment of debt, net | — | 5,695 | (4,530 | ) | (409 | ) | |||||||||
| Adjustment to fair value of warrants | — | — | — | (1,347 | ) | ||||||||||
| (3,763 | ) | (431 | ) | (27,518 | ) | (25,413 | ) | ||||||||
| (Loss) income before income taxes | (6,997 | ) | 5,104 | (14,835 | ) | 12,141 | |||||||||
| Income tax (benefit) expense | (15 | ) | 56 | (31 | ) | 435 | |||||||||
| Net (loss) income | $ | (6,982 | ) | $ | 5,048 | $ | (14,804 | ) | $ | 11,706 | |||||
| Basic (loss) earnings per share | $ | (0.20 | ) | $ | 0.15 | $ | (0.43 | ) | $ | 0.36 | |||||
| Diluted (loss) earnings per share | $ | (0.20 | ) | $ | 0.14 | $ | (0.43 | ) | $ | 0.33 | |||||
| Basic weighted average number of common shares outstanding | 34,401 | 34,231 | 34,355 | 32,517 | |||||||||||
| Diluted weighted average number of common shares outstanding | 34,401 | 36,749 | 34,355 | 34,946 | |||||||||||
Full House Resorts, Inc.
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenues | |||||||||||||||
| Mississippi | $ | 18,430 | $ | 22,495 | $ | 80,860 | $ | 90,628 | |||||||
| Indiana | 9,021 | 9,685 | 39,090 | 41,435 | |||||||||||
| Colorado | 3,452 | 5,032 | 16,185 | 23,660 | |||||||||||
| Nevada | 4,082 | 4,299 | 19,950 | 18,516 | |||||||||||
| Contracted Sports Wagering | 1,097 | 1,760 | 7,196 | 5,920 | |||||||||||
| $ | 36,082 | $ | 43,271 | $ | 163,281 | $ | 180,159 | ||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | |||||||||||||||
| Mississippi | $ | 4,047 | $ | 6,747 | $ | 19,488 | $ | 29,843 | |||||||
| Indiana | 513 | 1,120 | 6,888 | 8,736 | |||||||||||
| Colorado | (638 | ) | 453 | (688 | ) | 5,545 | |||||||||
| Nevada | 351 | 760 | 4,908 | 4,933 | |||||||||||
| Contracted Sports Wagering | 1,079 | 1,768 | 7,127 | 5,890 | |||||||||||
| Adjusted Segment EBITDA | 5,352 | 10,848 | 37,723 | 54,947 | |||||||||||
| Corporate | (1,459 | ) | (2,930 | ) | (5,589 | ) | (7,733 | ) | |||||||
| Adjusted EBITDA | $ | 3,893 | $ | 7,918 | $ | 32,134 | $ | 47,214 | |||||||
__________
| (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 | Year Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
| Net (loss) income | $ | (6,982 | ) | $ | 5,048 | $ | (14,804 | ) | $ | 11,706 | ||||
| Income tax (benefit) expense | (15 | ) | 56 | (31 | ) | 435 | ||||||||
| Interest expense, net | 3,763 | 6,126 | 22,988 | 23,657 | ||||||||||
| (Gain) loss on modification and extinguishment of debt, net | — | (5,695 | ) | 4,530 | 409 | |||||||||
| Adjustment to fair value of warrants | — | — | — | 1,347 | ||||||||||
| Operating (loss) income | (3,234 | ) | 5,535 | 12,683 | 37,554 | |||||||||
| Project development costs, net | 195 | 291 | 228 | 782 | ||||||||||
| Preopening costs | 4,644 | — | 9,558 | 17 | ||||||||||
| Depreciation and amortization | 1,918 | 1,771 | 7,930 | 7,219 | ||||||||||
| Loss on disposal of assets, net | 39 | 2 | 42 | 676 | ||||||||||
| Stock-based compensation | 331 | 319 | 1,693 | 966 | ||||||||||
| Adjusted EBITDA | $ | 3,893 | $ | 7,918 | $ | 32,134 | $ | 47,214 | ||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Three Months Ended December 31, 2022 | ||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||
| Segment | ||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | |||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||
| Reporting segments | ||||||||||||||||||||||
| Mississippi | $ | 3,325 | $ | 683 | $ | 39 | $ | — | $ | — | $ | — | $ | 4,047 | ||||||||
| Indiana | (86 | ) | 599 | — | — | — | — | 513 | ||||||||||||||
| Colorado | (1,417 | ) | 373 | — | — | 406 | — | (638 | ) | |||||||||||||
| Nevada | 157 | 194 | — | — | — | — | 351 | |||||||||||||||
| Contracted Sports Wagering | 1,079 | — | — | — | — | — | 1,079 | |||||||||||||||
| 3,058 | 1,849 | 39 | — | 406 | — | 5,352 | ||||||||||||||||
| Other operations | ||||||||||||||||||||||
| Corporate | (6,292 | ) | 69 | — | 195 | 4,238 | 331 | (1,459 | ) | |||||||||||||
| $ | (3,234 | ) | $ | 1,918 | $ | 39 | $ | 195 | $ | 4,644 | $ | 331 | $ | 3,893 | ||||||||
| Three Months Ended December 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 | $ | 6,070 | $ | 677 | $ | — | $ | — | $ | — | $ | 6,747 | |||||||
| Indiana | 558 | 562 | — | — | — | 1,120 | |||||||||||||
| Colorado | 88 | 363 | 2 | — | — | 453 | |||||||||||||
| Nevada | 625 | 135 | — | — | — | 760 | |||||||||||||
| Contracted Sports Wagering | 1,768 | — | — | — | — | 1,768 | |||||||||||||
| 9,109 | 1,737 | 2 | — | — | 10,848 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (3,574 | ) | 34 | — | 291 | 319 | (2,930 | ) | |||||||||||
| $ | 5,535 | $ | 1,771 | $ | 2 | $ | 291 | $ | 319 | $ | 7,918 | ||||||||
Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)
| Year Ended December 31, 2022 | |||||||||||||||||||||||
| Loss / | Adjusted | ||||||||||||||||||||||
| (gain) | Segment | ||||||||||||||||||||||
| Operating | Depreciation | on | Project | Stock- | EBITDA and | ||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | |||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | |||||||||||||||||
| Reporting segments | |||||||||||||||||||||||
| Mississippi | $ | 16,684 | $ | 2,757 | $ | 47 | $ | — | $ | — | $ | — | $ | 19,488 | |||||||||
| Indiana | 4,532 | 2,356 | — | — | — | — | 6,888 | ||||||||||||||||
| Colorado | (3,544 | ) | 1,429 | (5 | ) | — | 1,432 | — | (688 | ) | |||||||||||||
| Nevada | 3,938 | 970 | — | — | — | — | 4,908 | ||||||||||||||||
| Contracted Sports Wagering | 7,127 | — | — | — | — | — | 7,127 | ||||||||||||||||
| 28,737 | 7,512 | 42 | — | 1,432 | — | 37,723 | |||||||||||||||||
| Other operations | |||||||||||||||||||||||
| Corporate | (16,054 | ) | 418 | — | 228 | 8,126 | 1,693 | (5,589 | ) | ||||||||||||||
| $ | 12,683 | $ | 7,930 | $ | 42 | $ | 228 | $ | 9,558 | $ | 1,693 | $ | 32,134 | ||||||||||
| Year Ended December 31, 2021 | ||||||||||||||||||||||
| 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 | $ | 26,553 | $ | 2,701 | $ | 589 | $ | — | $ | — | $ | — | $ | 29,843 | ||||||||
| Indiana | 6,396 | 2,340 | — | — | — | — | 8,736 | |||||||||||||||
| Colorado | 3,959 | 1,482 | 87 | — | 17 | — | 5,545 | |||||||||||||||
| Nevada | 4,386 | 547 | — | — | — | — | 4,933 | |||||||||||||||
| Contracted Sports Wagering | 5,890 | — | — | — | — | — | 5,890 | |||||||||||||||
| 47,184 | 7,070 | 676 | — | 17 | — | 54,947 | ||||||||||||||||
| Other operations | ||||||||||||||||||||||
| Corporate | (9,630 | ) | 149 | — | 782 | — | 966 | (7,733 | ) | |||||||||||||
| $ | 37,554 | $ | 7,219 | $ | 676 | $ | 782 | $ | 17 | $ | 966 | $ | 47,214 | |||||||||
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 budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix and American Place, including The Temporary; and our expectations regarding our ability to replace any terminated sports wagering contracts in Colorado and Indiana, our ability to operate sports wagering contracts ourselves and the success of any new sports wagering contracts or operations 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; our ability to effectively manage and control expenses; our ability to complete Chamonix and American Place on-time and on-budget; 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 The Temporary by American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. The Company is currently constructing Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
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LAS VEGAS, April 22, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its first quarter 2024 financial results on Wednesday, May 8, 2024, followed by a conference call at 4:30 p.m. ET (1:30 p.m. PT). Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through May 22, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13746178.
Forward-looking Statements
This press release may contain statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino, both in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. (702) 221-7800 www.fullhouseresorts.com
– Revenues Increased 66.4% to $60.0 Million in the Fourth Quarter of 2023;
Annual Revenues Grew 47.6%
– Chamonix Casino Hotel Began Its Phased Opening on December 27, 2023
– Approvals Received to Operate American Place in Its Temporary Configuration Until August 2027
LAS VEGAS, March 05, 2024 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2023.
“After several years of construction, we are entering a new phase for our company,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “We opened two new casinos during 2023: American Place in Waukegan, Illinois, and Chamonix, in Cripple Creek, Colorado. Our first new casino – American Place – celebrated its one-year anniversary a few weeks ago. As expected, it continues to ramp up its operations. In December 2023, American Place reached a new monthly gaming revenue record of $8.2 million, as reported by the Illinois Gaming Board. It subsequently set a new monthly all-time record for revenues in February 2024, despite it being a short month. We expect American Place’s gaming revenues to continue to grow in 2024, with the property’s high-end North Shore Steaks & Seafood now open and overall awareness continuing to improve. American Place is currently in a temporary facility, built in less than one year after being chosen by the Illinois Gaming Board to develop this newly-created license. We recently received the necessary approvals to operate the temporary facility until August 2027, providing us with meaningful additional time before the anticipated opening of the permanent American Place facility.
“On December 27, we welcomed guests to our newest casino, Chamonix Casino Hotel in Cripple Creek, Colorado, which is less than one hour from Colorado Springs and approximately two hours from Denver. By design, it was a soft opening, with the casino, meeting rooms, and approximately 40% of the property’s guest rooms initially open. Over the past few weeks, we have continued the rollout of the property’s amenities, including completion of the destination’s remaining hotel rooms and its parking garage. We are currently putting the finishing touches on 980 Prime, Chamonix’s high-end steakhouse led by famed chef Barry Dakake. We expect it to open in late March. Chamonix was designed to be the most beautiful casino in the state of Colorado, and we look forward to the completion of all of its amenities over the next few months.”
On a consolidated basis, revenues in the fourth quarter of 2023 were $60.0 million, a 66.4% increase from $36.1 million in the prior-year period. These results primarily reflect the February 2023 opening of American Place. Net loss for the fourth quarter of 2023 was $12.5 million, or $(0.36) per diluted common share, which includes $3.1 million of preopening and development costs, primarily related to the phased opening of our Chamonix project, and significant depreciation and amortization charges related to the temporary American Place facility. In the prior-year period, net loss was $7.0 million, or $(0.20) per diluted common share, reflecting $4.8 million of preopening and development costs. Adjusted EBITDA(a) rose 87.4% in the fourth quarter of 2023 to $7.3 million, compared to $3.9 million in the prior-year period.
For the full year, revenues in 2023 were $241.1 million, a 47.6% increase from $163.3 million in the prior year. These results reflect the February 2023 opening of American Place, as well as $5.8 million of accelerated revenue under two of our sports wagering agreements with third-party operators that ceased operations during the third quarter of 2023. Net loss in 2023 was $24.9 million, or $(0.72) per diluted common share, which includes $15.7 million of preopening and development costs, primarily related to our Chamonix construction project, and significant depreciation and amortization charges related to the temporary American Place facility. For 2022, net loss was $14.8 million, or $(0.43) per diluted common share, reflecting $9.8 million of preopening and development costs. Adjusted EBITDA was $48.6 million in 2023, rising 51.1% from $32.1 million in the prior-year period, reflecting the items mentioned above.
“Our Company recently reached an inflection point,” noted Mr. Lee. “In 2023, our total cash interest expense was approximately $38.4 million and Adjusted EBITDA, as noted, was $48.6 million, despite construction disruptions in Colorado and the gradual ramp-up of operations at American Place. Our debt during that period included substantially all of the funding for Chamonix, which did not open until year-end. While some construction continues at Chamonix, the bulk of our capital expenditures for these projects is behind us. This fact, along with expected future earnings from these new facilities, should result in the generation of significant free cash flow over the next few years. Also, recognize that we continue to have significant tax-loss carryforwards and we benefit, for tax purposes, from accelerated depreciation related to our new developments.”
Added Mr. Lee, “Regarding American Place, the State of Illinois recently passed legislation allowing us to operate our temporary facility until August 2027. This was because a tribal entity that operates a competing casino in Wisconsin filed a lawsuit against the City of Waukegan and the Illinois Gaming Board, alleging that the tribe was not provided due consideration in its effort to obtain the Waukegan gaming license. We were chosen for that license after a robust public process, whereby an independent consultant hired by the City of Waukegan rated the tribal proposal as being inferior in most respects to all four of the other proposals, including that of Full House Resorts. We believe the lawsuit is without merit. The City and the Illinois Gaming Board have sought review of the dispute by the Illinois Supreme Court, which has agreed to hear the case. We anticipate a ruling by that court by early 2025.”
Concluded Mr. Lee, “We estimate that construction of the permanent American Place facility will require approximately two years, with a significant portion of the project’s capital expenditures not expected until the second half of 2026 and during 2027. We believe that the Company’s operating cash flows should be able to fund significant portions of the construction cost for the permanent American Place facility between now and its anticipated opening in 2027. For the remaining balance, we remain highly confident in our ability to fund it entirely in the debt capital markets at the appropriate time.”
Fourth Quarter Highlights and Subsequent Events
- Midwest & South. This segment includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and American Place. Revenues for the segment were $49.1 million in the fourth quarter of 2023, a 78.8% increase from $27.5 million in the prior-year period. Adjusted Segment EBITDA rose to $7.2 million, a 57.9% increase from $4.6 million in the prior-year period. These results reflect the February 17, 2023 opening of American Place, our casino located in Waukegan, Illinois. In the fourth quarter of 2023, American Place generated $22.4 million of revenue and $3.9 million of Adjusted Property EBITDA. American Place’s results reflect some winter seasonality, as well as elevated marketing expenses related to a marketing campaign that is expected to benefit the casino in the longer-run.
For the full year, this segment similarly benefited from the opening of American Place in February 2023. Revenues increased 60.4% from $120.0 million to $192.4 million, and Adjusted Segment EBITDA grew 48.0% from $26.4 million to $39.0 million. Of such amount, American Place contributed $77.0 million and $18.4 million to the segment’s revenues and Adjusted Segment EBITDA, respectively.
- West. This segment includes Grand Lodge Casino (located within the Hyatt Regency Lake Tahoe resort in Incline Village), Stockman’s Casino, Bronco Billy’s Casino and Hotel, and Chamonix Casino Hotel, which opened on December 27, 2023. Revenues for the segment rose 14.0% to $8.6 million in the fourth quarter of 2023, versus $7.5 million in the prior-year period. Adjusted Segment EBITDA of $(0.1) million in the fourth quarter of 2023 compares to $(0.3) million in the prior-year period. Results in both periods reflect the temporary loss of all on-site parking and on-site hotel rooms at Bronco Billy’s to accommodate the construction of neighboring Chamonix. With Chamonix now open, Bronco Billy’s is benefiting from its integration with Chamonix, including its new parking garage and approximately 300 on-site guest rooms.
For the year, revenues and Adjusted Segment EBITDA were $35.9 million and $2.4 million in 2023, respectively. In 2022, such amounts were $36.1 million and $4.2 million, respectively. As noted above, construction-related disruptions at Bronco Billy’s are expected to dissipate in 2024 with the return of on-site guest rooms and on-site parking.
- Contracted Sports Wagering. This segment consists of our on-site and online sports wagering “skins” (akin to websites) in Colorado, Indiana, and Illinois. Revenues and Adjusted Segment EBITDA in the fourth quarter of 2023 were $2.3 million and $1.3 million, respectively. These results reflect the contractual launch of our permitted Illinois sports skin in August 2023, as well as a provision for credit losses on sports wagering receivables of $1.0 million, which negatively affected Adjusted Segment EBITDA. For the fourth quarter of 2022, both revenues and Adjusted Segment EBITDA were $1.1 million.
For the year, this segment’s revenues grew 78.1%, from $7.2 million in 2022 to $12.8 million in 2023, and Adjusted Segment EBITDA rose 63.6%, from $7.1 million to $11.7 million. Results for 2022 reflect the acceleration of revenues under two of our sports wagering agreements with third-party operators that ceased operations in May 2022. In 2023, results increased due to the launch of our Illinois sports skin noted above, the launch of a replacement operator in Colorado in March 2023, and accelerated revenues related to two other sports wagering agreements with operators that ceased operations during the third quarter of 2023. Additionally, the $1.0 million provision for credit losses, as mentioned, negatively affected Adjusted Segment EBITDA during 2023.
The Company is currently permitted to operate three sports skins in Colorado, three in Indiana, and one in Illinois. Of such permitted skins, two sports skins are currently live in Colorado, one in Indiana, and one in Illinois. Under our agreements with various third parties to operate such skins, we receive a percentage of revenues, as defined in the contracts, subject to an annualized minimum amount that currently totals $8 million. We continue to evaluate whether to operate our remaining idle skins ourselves or to have other third parties operate them. However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.
Liquidity and Capital Resources
As of December 31, 2023, we had $73.8 million in cash and cash equivalents, including $37.6 million of cash reserved under our bond indentures to complete the construction of Chamonix. Our debt consisted primarily of $450.0 million in outstanding senior secured notes due 2028, which became callable at specified premiums in February 2024, and $27.0 million outstanding under our revolving credit facility.
Conference Call Information
We will host a conference call for investors today, March 5, 2024, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2023 fourth quarter results. Investors can access the live audio webcast from our website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through March 19, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13744400.
(a) Reconciliation of Non-GAAP Financial Measures
Our presentation of non-GAAP Measures may be different from the presentation used by other companies, and therefore, comparability may be limited. While excluded from certain non-GAAP Measures, depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred. Each of these items should also be considered in the overall evaluation of our results. Additionally, our non-GAAP Measures do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, and other items both in our reconciliations to the historical GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
Our non-GAAP Measures are to be used in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP Measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. These non-GAAP Measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.
Adjusted Segment EBITDA. We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, certain impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment.
Same-store Adjusted Segment EBITDA. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, certain impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Adjusted EBITDA. We also utilize Adjusted EBITDA, which is defined as Adjusted Segment EBITDA, net of corporate-related costs and expenses. Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, we believe this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. We utilize this metric or measure internally to focus management on year-over-year changes in core operating performance, which we consider our ordinary, ongoing and customary operations, and which we believe is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.
Full House Resorts, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 45,347 | $ | 25,583 | $ | 176,933 | $ | 113,876 | ||||||||
| Food and beverage | 8,561 | 6,239 | 33,980 | 26,494 | ||||||||||||
| Hotel | 2,376 | 2,206 | 9,428 | 9,282 | ||||||||||||
| Other operations, including contracted sports wagering | 3,745 | 2,054 | 20,719 | 13,629 | ||||||||||||
| 60,029 | 36,082 | 241,060 | 163,281 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 18,290 | 9,515 | 68,061 | 39,788 | ||||||||||||
| Food and beverage | 8,425 | 6,238 | 33,240 | 26,372 | ||||||||||||
| Hotel | 1,229 | 1,282 | 4,840 | 4,806 | ||||||||||||
| Other operations | 1,620 | 574 | 3,498 | 2,168 | ||||||||||||
| Selling, general and administrative | 23,923 | 14,911 | 85,746 | 59,706 | ||||||||||||
| Project development costs, net | 8 | 195 | 53 | 228 | ||||||||||||
| Preopening costs | 3,051 | 4,644 | 15,685 | 9,558 | ||||||||||||
| Depreciation and amortization | 8,610 | 1,918 | 31,092 | 7,930 | ||||||||||||
| Loss on disposal of assets | — | 39 | 7 | 42 | ||||||||||||
| 65,156 | 39,316 | 242,222 | 150,598 | |||||||||||||
| Operating (loss) income | (5,127 | ) | (3,234 | ) | (1,162 | ) | 12,683 | |||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense, net | (6,658 | ) | (3,763 | ) | (22,977 | ) | (22,988 | ) | ||||||||
| Loss on modification of debt | — | — | — | (4,530 | ) | |||||||||||
| Gain on settlements | — | — | 384 | — | ||||||||||||
| (6,658 | ) | (3,763 | ) | (22,593 | ) | (27,518 | ) | |||||||||
| Loss before income taxes | (11,785 | ) | (6,997 | ) | (23,755 | ) | (14,835 | ) | ||||||||
| Income tax expense (benefit) | 697 | (15 | ) | 1,149 | (31 | ) | ||||||||||
| Net loss | $ | (12,482 | ) | $ | (6,982 | ) | $ | (24,904 | ) | $ | (14,804 | ) | ||||
| Basic loss per share | $ | (0.36 | ) | $ | (0.20 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
| Diluted loss per share | $ | (0.36 | ) | $ | (0.20 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
| Basic weighted average number of common shares outstanding | 34,588 | 34,401 | 34,520 | 34,355 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 34,588 | 34,401 | 34,520 | 34,355 | ||||||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Revenues | ||||||||||||||||
| Midwest & South | $ | 49,094 | $ | 27,451 | $ | 192,358 | $ | 119,950 | ||||||||
| West | 8,588 | 7,534 | 35,888 | 36,135 | ||||||||||||
| Contracted Sports Wagering | 2,347 | 1,097 | 12,814 | 7,196 | ||||||||||||
| $ | 60,029 | $ | 36,082 | $ | 241,060 | $ | 163,281 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Midwest & South | $ | 7,198 | $ | 4,560 | $ | 39,028 | $ | 26,376 | ||||||||
| West | (130 | ) | (287 | ) | 2,408 | 4,220 | ||||||||||
| Contracted Sports Wagering | 1,290 | 1,079 | 11,663 | 7,127 | ||||||||||||
| Adjusted Segment EBITDA | 8,358 | 5,352 | 53,099 | 37,723 | ||||||||||||
| Corporate | (1,063 | ) | (1,459 | ) | (4,542 | ) | (5,589 | ) | ||||||||
| Adjusted EBITDA | $ | 7,295 | $ | 3,893 | $ | 48,557 | $ | 32,134 | ||||||||
__________
(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profitability in assessing performance and allocating resources at the reportable segment level.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Same-store Revenues and Adjusted Segment EBITDA
(In thousands, Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||||
| December 31, | Increase / | December 31, | Increase / | ||||||||||||||||||
| Reporting segments | 2023 |
2022 | (Decrease) | 2023 | 2022 | (Decrease) | |||||||||||||||
| Midwest & South | |||||||||||||||||||||
| Midwest & South same-store total revenues(1) |
$ | 26,744 | $ | 27,451 | (2.6 | ) | % | $ | 115,371 | $ | 119,950 | (3.8 | ) | % | |||||||
| American Place | 22,350 | — | N.M. | 76,987 | — | N.M. | |||||||||||||||
| Midwest & South total revenues | $ | 49,094 | $ | 27,451 | 78.8 | % | $ | 192,358 | $ | 119,950 | 60.4 | % | |||||||||
| Midwest & South same-store Adjusted Segment EBITDA(1) |
$ | 3,280 | $ | 4,560 | (28.1 | ) | % | $ | 20,619 | $ | 26,376 | (21.8 | ) | % | |||||||
| American Place | 3,918 | — | N.M. | 18,409 | — | N.M. | |||||||||||||||
| Midwest & South Adjusted Segment EBITDA |
$ | 7,198 | $ | 4,560 | 57.9 | % | $ | 39,028 | $ | 26,376 | 48.0 | % | |||||||||
| Contracted Sports Wagering | |||||||||||||||||||||
| Contracted Sports Wagering same-store total revenues(2) |
$ | 841 | $ | 1,097 | (23.3 | ) | % | $ | 4,773 | $ | 5,555 | (14.1 | ) | % | |||||||
| Accelerated revenues due to contract terminations(3) |
— | — | N.M. | 5,794 | 1,641 | 253.1 | % | ||||||||||||||
| Illinois | 1,506 | — | N.M. | 2,247 | — | N.M. | |||||||||||||||
| Contracted Sports Wagering total revenues |
$ | 2,347 | $ | 1,097 | 113.9 | % | $ | 12,814 | $ | 7,196 | 78.1 | % | |||||||||
| Contracted Sports Wagering same-store Adjusted Segment EBITDA(2) |
$ | (140 | ) | $ | 1,079 | (113.0 | ) | % | $ | 3,717 | $ | 5,486 | (32.2 | ) | % | ||||||
| Accelerated revenues due to contract terminations(3) |
— | — | N.M. | 5,794 | 1,641 | 253.1 | % | ||||||||||||||
| Illinois | 1,430 | — | N.M. | 2,152 | — | N.M. | |||||||||||||||
| Contracted Sports Wagering Adjusted Segment EBITDA |
$ | 1,290 | $ | 1,079 | 19.6 | % | $ | 11,663 | $ | 7,127 | 63.6 | % | |||||||||
__________
N.M. Not meaningful.
(1) Same-store operations exclude results from American Place, which opened on February 17, 2023.
(2) Same-store operations exclude results from Illinois, which contractually commenced on August 15, 2023. For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations.
(3) For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. Such adjustments reflect two sports skins that ceased operations in the third quarter of 2023, and two sports skins that ceased operations in the second quarter of 2022.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Loss and Operating Income (Loss) to Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
||||||||||||
| Net loss | $ | (12,482 | ) | $ | (6,982 | ) | $ | (24,904 | ) | $ | (14,804 | ) | |||
| Income tax expense (benefit) | 697 | (15 | ) | 1,149 | (31 | ) | |||||||||
| Interest expense, net | 6,658 | 3,763 | 22,977 | 22,988 | |||||||||||
| Loss on modification of debt | — | — | — | 4,530 | |||||||||||
| Gain on settlements | — | — | (384 | ) | — | ||||||||||
| Operating (loss) income | (5,127 | ) | (3,234 | ) | (1,162 | ) | 12,683 | ||||||||
| Project development costs, net | 8 | 195 | 53 | 228 | |||||||||||
| Preopening costs | 3,051 | 4,644 | 15,685 | 9,558 | |||||||||||
| Depreciation and amortization | 8,610 | 1,918 | 31,092 | 7,930 | |||||||||||
| Loss on disposal of assets | — | 39 | 7 | 42 | |||||||||||
| Stock-based compensation | 753 | 331 | 2,882 | 1,693 | |||||||||||
| Adjusted EBITDA | $ | 7,295 | $ | 3,893 | $ | 48,557 | $ | 32,134 | |||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Three Months Ended December 31, 2023 | ||||||||||||||||||||
| Adjusted | ||||||||||||||||||||
| Segment | ||||||||||||||||||||
| Operating | Depreciation | Project | Stock- | EBITDA and | ||||||||||||||||
| Income | and | Development | Preopening | Based | Adjusted | |||||||||||||||
| (Loss) | Amortization | Costs | Costs | Compensation | EBITDA | |||||||||||||||
| Reporting segments | ||||||||||||||||||||
| Midwest & South | $ | (894 | ) | $ | 7,953 | $ | — | $ | 139 | $ | — | $ | 7,198 | |||||||
| West | (3,669 | ) | 627 | — | 2,912 | — | (130 | ) | ||||||||||||
| Contracted Sports Wagering | 1,290 | — | — | — | — | 1,290 | ||||||||||||||
| (3,273 | ) | 8,580 | — | 3,051 | — | 8,358 | ||||||||||||||
| Other operations | ||||||||||||||||||||
| Corporate | (1,854 | ) | 30 | 8 | — | 753 | (1,063 | ) | ||||||||||||
| $ | (5,127 | ) | $ | 8,610 | $ | 8 | $ | 3,051 | $ | 753 | $ | 7,295 | ||||||||
| Three Months Ended December 31, 2022 | |||||||||||||||||||||||
| Adjusted | |||||||||||||||||||||||
| Segment | |||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | |||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | |||||||||||||||||
| Reporting segments | |||||||||||||||||||||||
| Midwest & South | $ | (1,035 | ) | $ | 1,318 | $ | 39 | $ | — | $ | 4,238 | $ | — | $ | 4,560 | ||||||||
| West | (1,260 | ) | 567 | — | — | 406 | — | (287 | ) | ||||||||||||||
| Contracted Sports Wagering | 1,079 | — | — | — | — | — | 1,079 | ||||||||||||||||
| (1,216 | ) | 1,885 | 39 | — | 4,644 | — | 5,352 | ||||||||||||||||
| Other operations | |||||||||||||||||||||||
| Corporate | (2,018 | ) | 33 | — | 195 | — | 331 | (1,459 | ) | ||||||||||||||
| $ | (3,234 | ) | $ | 1,918 | $ | 39 | $ | 195 | $ | 4,644 | $ | 331 | $ | 3,893 | |||||||||
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Adjusted | |||||||||||||||||||||||
| Segment | |||||||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | |||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | |||||||||||||||||
| Reporting segments | |||||||||||||||||||||||
| Midwest & South | $ | 428 | $ | 28,593 | $ | 7 | $ | — | $ | 10,000 | $ | — | $ | 39,028 | |||||||||
| West | (5,654 | ) | 2,377 | — | — | 5,685 | — | 2,408 | |||||||||||||||
| Contracted Sports Wagering | 11,663 | — | — | — | — | — | 11,663 | ||||||||||||||||
| 6,437 | 30,970 | 7 | — | 15,685 | — | 53,099 | |||||||||||||||||
| Other operations | |||||||||||||||||||||||
| Corporate | (7,599 | ) | 122 | — | 53 | — | 2,882 | (4,542 | ) | ||||||||||||||
| $ | (1,162 | ) | $ | 31,092 | $ | 7 | $ | 53 | $ | 15,685 | $ | 2,882 | $ | 48,557 | |||||||||
| Year Ended December 31, 2022 | ||||||||||||||||||||||||
| Loss / | Adjusted | |||||||||||||||||||||||
| (gain) | Segment | |||||||||||||||||||||||
| Operating | Depreciation | on | Project | Stock- | EBITDA and | |||||||||||||||||||
| Income | and | Disposal | Development | Preopening | Based | Adjusted | ||||||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Costs | Compensation | EBITDA | ||||||||||||||||||
| Reporting segments | ||||||||||||||||||||||||
| Midwest & South | $ | 13,053 | $ | 5,150 | $ | 47 | $ | — | $ | 8,126 | $ | — | $ | 26,376 | ||||||||||
| West | 394 | 2,399 | (5 | ) | — | 1,432 | — | 4,220 | ||||||||||||||||
| Contracted Sports Wagering |
7,127 | — | — | — | — | — | 7,127 | |||||||||||||||||
| 20,574 | 7,549 | 42 | — | 9,558 | — | 37,723 | ||||||||||||||||||
| Other operations | ||||||||||||||||||||||||
| Corporate | (7,891 | ) | 381 | — | 228 | — | 1,693 | (5,589 | ) | |||||||||||||||
| $ | 12,683 | $ | 7,930 | $ | 42 | $ | 228 | $ | 9,558 | $ | 1,693 | $ | 32,134 | |||||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by us and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix and American Place; our expectations regarding the legal proceedings related to the process whereby we were granted the gaming license for American Place; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; and our expectations regarding the operation and usage of our available idle sports skins. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, our ability to repay our substantial indebtedness; our ability to finance the construction of the permanent American Place facility; inflation and its potential impacts on labor costs and the price of food, construction, and other materials; the effects of potential disruptions in the supply chains for goods, such as food, lumber, and other materials; general macroeconomic conditions; our ability to effectively manage and control expenses; our ability to complete the amenities at Chamonix; our ability to complete construction at American Place, on-time and on-budget; legal or regulatory restrictions, delays, or challenges for our construction projects, including American Place; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; cyber events and their impacts to our operations; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
LAS VEGAS, Feb. 09, 2024 (GLOBE NEWSWIRE) — Full House Resorts (NASDAQ: FLL) announced today that it will report its fourth quarter 2023 and full-year financial results on Tuesday, March 5, 2024, followed by a conference call at 4:30 p.m. ET (1:30 p.m. PT). Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.
A replay of the conference call will be available shortly after the conclusion of the call through March 19, 2024. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (412) 317-6671 and using the passcode 13744400.
Forward-looking Statements
This press release may contain statements by Full House Resorts, Inc. that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports we file with the SEC, including, but not limited to, our Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law. Actual results may differ materially from those indicated in the forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include The Temporary by American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s Casino and Hotel, both in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. For further information, please visit www.fullhouseresorts.com.
CONTACT: Contact: Lewis Fanger, Chief Financial Officer Full House Resorts, Inc. (702) 221-7800 www.fullhouseresorts.com
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