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Nasdaq:FLL

Full House Resorts Announces Strong First Quarter Results

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– Revenues Rose 36.8% Over Prior-Year Quarter

– Operating Income Improved to $8.7 Million from an Operating Loss of $3.4 Million;
Net Loss Improved to $3.4 Million from a Net Loss of $4.4 Million;
Adjusted EBITDA Increased to $10.8 Million from an Adjusted EBITDA Loss of $1.2 Million

– Company Strengthened Its Balance Sheet and
Fully Funded Its Chamonix Casino Hotel Growth Project in Cripple Creek, Colorado

– Construction of Chamonix Casino Hotel is Underway,
With Its Opening Expected in the Fourth Quarter of 2022

– Two Sports Wagering Providers Launched Operations in April 2021;
Five of Six Permitted “Skins” are Now Operating

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LAS VEGAS, May 10, 2021 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the first quarter ended March 31, 2021.

On a consolidated basis, revenues in the first quarter of 2021 were $42.2 million, a 36.8% increase from $30.9 million in the prior-year period. The prior-year period reflected the temporary pandemic-related closure of all of the Company’s properties beginning in mid-March 2020. Net loss for the first quarter of 2021 improved to a net loss of $3.4 million, or $(0.13) per diluted common share, from a net loss of $4.4 million, or $(0.22) per diluted common share, in the prior-year period. Net loss in both periods was affected by adjustments to the fair market value of outstanding warrants, all of which the Company repurchased and retired in February 2021. Net loss in the first quarter of 2021 was also affected by costs related to the early extinguishment of debt. Adjusted EBITDA(a) in the 2021 first quarter was $10.8 million, versus an Adjusted EBITDA loss of $1.2 million in the first quarter of 2020. The strong growth in the 2021 period reflects operational and marketing improvements that bore results beginning in the second half of 2020 and continuing through the first quarter of 2021. Results for the first quarter of 2021 also include $1.0 million of revenue related to a full quarter of operations for three of the Company’s six permitted sports wagering websites. During the second quarter of 2021, two more sports wagering “skins” commenced operations; the last remaining sports skin is expected to begin operations in the coming months.

“Our first quarter results continued to benefit from structural changes that we began to implement before the pandemic-related shutdown,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Revenues in the first quarter of 2021 increased approximately 37% from last year’s first quarter, when all of our properties were required to shut down in mid-March 2020 to help prevent the spread of the pandemic. Adjusted EBITDA increased by more than $12 million to $10.8 million, reflecting labor and marketing improvements, as well as approximately two weeks of lost income in the prior-year period. Our first quarter results are significantly above not only the 2020 period, but also meaningfully above any first quarter in at least the past five years.

“Our 2021 results reflect a change in our operating segments. We now break out our on-site and online sports wagering skins in Colorado and Indiana as their own segment, Contracted Sports Wagering. As we have previously noted, we receive a percentage of defined revenues of each skin, subject to annual minimums. When all six skins are in operation, we should receive a contractual minimum of $7 million per year of sports gaming revenues. The first quarter of 2021 included three of our six permitted skins, resulting in approximately $1.0 million of revenue. Two more skins recently launched in April 2021, and we believe the last remaining skin will launch in the next few months.

“We also significantly strengthened our balance sheet during the first quarter,” continued Mr. Lee. “We issued $310 million of new senior secured notes, completed a $46 million equity offering and entered into a new $15 million revolving credit facility. Those transactions allowed us to fully finance our Chamonix Casino Hotel and to repurchase all of our outstanding warrants. They also created additional liquidity as we contemplate future growth projects, including our American Place proposal in Waukegan, Illinois, and our potential future expansion of the Silver Slipper.

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“Regarding Chamonix, we commenced significant construction more than two months ago, beginning with demolition and site preparation work. We have designed Chamonix to bring the luxury of the French Alps to the Rockies, combining ‘European Elegance with Colorado Comfort.’ When complete, Chamonix will feature approximately 300 four-star guest rooms and VIP suites – the first luxury guest rooms in the market – as well as a spacious, new, elegant and exciting casino gaming area. Its fine dining experience is being designed to attract culinary travelers from throughout Colorado, including nearby Colorado Springs, Pueblo and Cañon City, as well as the Denver Metropolitan Area. Chamonix will also feature extensive meeting and convention space that can host concerts and other entertainment, a rooftop pool, a luxurious spa, and a new self-parking garage that can accommodate more than 300 vehicles. We look forward to welcoming guests to Chamonix toward the end of next year.”

First Quarter Highlights and Subsequent Events

  • Our Mississippi segment consists of the Silver Slipper Casino and Hotel. Silver Slipper’s operational performance reflects a focus on marketing and labor improvements, as well as the benefit of numerous investments in the property in recent years. Such investments included a substantial renovation of the casino and the buffet, a renovated porte cochere and other sense-of-arrival improvements, the Beach Club, the Oyster Bar, and the introduction of on-site sports betting. We are currently in the process of repainting the exterior of the property with a new color scheme. For the first quarter of 2021, revenues at Silver Slipper increased 48.1% to $22.4 million. Revenues of $15.1 million in the first quarter of 2020 were affected by the pandemic-related closure of the property in mid-March 2020. Adjusted Segment EBITDA grew to $7.6 million in the 2021 first quarter, a 316.7% increase from $1.8 million in the prior-year period. Revenue and Adjusted Segment EBITDA in the first quarter of 2019 were $19.3 million and $3.8 million, respectively.
  • Our Indiana segment consists of Rising Star Casino Resort. Rising Star’s revenues were $8.6 million in the first quarter of 2021, an 18.5% increase from $7.2 million in the first quarter of 2020, when efforts to control the pandemic resulted in the closure of the property in mid-March 2020. Adjusted Segment EBITDA increased to $1.1 million in the first quarter of 2021 from a loss of $1.5 million in the prior-year period. These results reflect the positive impact of a new slot marketing system installed in the fourth quarter of 2019, the launch of an improved loyalty program in June 2020, and labor efficiencies from more appropriately matching the operating hours of table games and food and beverage outlets to the demand for such services, as well as two weeks of closed operations during the 2020 first quarter. Revenue and Adjusted Segment EBITDA in the first quarter of 2019 were $10.9 million and $0.4 million, respectively.
  • Our Colorado segment includes Bronco Billy’s Casino and Hotel and, upon its opening in late 2022, will include Chamonix Casino Hotel. Revenues for this segment were $5.9 million in the first quarter of 2021, an 18.5% increase from $5.0 million in the first quarter of 2020, when the property was closed in mid-March 2020 due to the ongoing pandemic. Adjusted Segment EBITDA rose to $1.7 million in the first quarter of 2021 from a loss of $0.5 million in the prior-year period. The increase in Adjusted Segment EBITDA was due to an improved customer experience and analytics from Bronco Billy’s new slot marketing system and labor controls (partially offset by certain labor expenses related to the pandemic), as well as a full quarter of operations in the 2021 period. Revenue and Adjusted Segment EBITDA in the first quarter of 2019 were $6.4 million and $0.6 million, respectively.
  • In November 2020, Colorado voters approved favorable changes to the state’s gaming laws, including the elimination of betting limits and allowing Colorado casinos to offer new table games, such as baccarat and pai gow poker. To reflect the new opportunity created by those changes, the Company increased the size of its planned Cripple Creek expansion by 67% to approximately 300 luxury guest rooms and suites, from its previously planned 180 guest rooms. Such plans were approved by the Cripple Creek Historic Preservation Commission and Cripple Creek City Council in January and February 2021. Other planned amenities for the new casino hotel – including a new parking garage, meeting and entertainment space, outdoor rooftop pool, spa, and fine-dining restaurant – remain largely unchanged. The Company fully financed the project through the issuance of new senior secured notes, as further discussed below. In March 2021, the Company began relocating some significant storm sewers and other underground utilities that transit the project site. For detailed renderings of the project, please visit www.ChamonixCO.com.
  • The Nevada segment consists of the Grand Lodge and Stockman’s casinos and is historically the smallest of the Company’s segments. This segment of the Company’s operations has been the most negatively affected by the COVID-19 pandemic. Despite this, revenues were $4.4 million and $3.1 million for the first quarters of 2021 and 2020, respectively, reflecting higher slot handle and hold percentages at both casinos and a higher table games hold percentage at Grand Lodge in the 2021 period. Similar to our other properties, these results reflect the temporary closure of Grand Lodge and Stockman’s in mid-March 2020. Adjusted Segment EBITDA was $1.2 million in the first quarter of 2021, versus a loss of $0.4 million in the prior-year period. Revenue and Adjusted Segment EBITDA in the first quarter of 2019 were $3.9 million and $(9,000), respectively.

    Grand Lodge Casino is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, Nevada. Its customer base includes the local community, as well as visitors to the Hyatt. The pandemic adversely affected visitation to the Hyatt, including visitation for its meeting and convention business. The pandemic also affected the capacity of nearby ski areas this past winter. To ensure social distancing, ski areas were required to operate their lifts at substantially less than full capacity. Many ski areas limited lift ticket sales to attempt to control the resultant lift lines. This affected visitation to the region, including to the Hyatt and our casino.

    Stockman’s Casino is in Fallon, Nevada, home to a large Naval Air Station, where Navy pilots and crews visit for training. To protect the health of both its servicemembers and the host community, the Navy has restricted much of its personnel from leaving the base.

  • The Contracted Sports Wagering segment consists of the Company’s on-site and online sports wagering skins in Colorado and Indiana. Revenues and Adjusted Segment EBITDA were both approximately $1.0 million in the first quarter of 2021, reflecting a full quarter of operations of three of the Company’s six permitted sports wagering skins. For the first quarter of 2020, when only one sports wagering skin was live, such amounts were both approximately $0.4 million.

    On April 1 and April 23, 2021, respectively, the Company’s fourth and fifth sports wagering skins commenced operations. We believe that the Company’s last remaining skin will commence operations in the next few months. We receive a percentage of defined revenues of each skin, subject to annual minimums. When all six skins are in operation, we should receive a contractual minimum of $7 million per year of annualized revenues with minimal related expenses.

  • On February 12, 2021, the Company issued $310 million of new 8.25% senior secured notes due 2028 (the “2028 Notes”). The proceeds from the offering were used to redeem all $106.8 million of the Company’s senior secured notes due 2024 and to repurchase all of the Company’s outstanding warrants. Additionally, the proceeds will be used to fund the Company’s Chamonix project in Cripple Creek, Colorado, and for general corporate purposes.
  • On March 29, 2021, the Company issued approximately 6.9 million shares of its common stock, resulting in gross proceeds of approximately $46.0 million. The Company intends to use the net proceeds from the offering for development, working capital and general corporate purposes. Management believes that the improvement to the Company’s balance sheet with the net proceeds from this offering significantly strengthens its application for the proposed American Place casino in Waukegan, Illinois. The Illinois Gaming Board has received three applications for such license, each endorsed by the City of Waukegan.

    The use of proceeds could also include construction of a new hotel tower and other amenities at the Company’s Silver Slipper Casino and Hotel. Certain regulatory approvals and entitlements are still required to enable such construction and there is no certainty as to the timing or receipt of such approvals.

  • On March 31, 2021, the Company entered into an agreement for a five-year, senior secured revolving credit facility. The $15.0 million credit facility may be used for working capital, letters of credit, and other ongoing general purposes, excluding project costs for Chamonix, which was separately funded. Until the completion of the Company’s Chamonix project in Cripple Creek, Colorado, the interest rate per annum applicable to loans under the credit facility will be, at the Company’s option, either (i) LIBOR plus a margin equal to 3.5%, or (ii) a base rate plus a margin equal to 2.5%. After completion of Chamonix (as defined in the credit agreement), the interest rate per annum applicable to loans under the credit facility reduces to, at the Company’s option, either (i) LIBOR plus a margin equal to 3.0%, or (ii) a base rate plus a margin equal to 2.0%. The commitment fee per annum is 0.5% of the unused portion of the credit facility. There are currently no drawn amounts under the credit facility.

Liquidity and Capital Resources
As of March 31, 2021, the Company had $277.9 million in cash and cash equivalents, including $179.9 million of restricted cash dedicated to the construction of Chamonix; $310 million in outstanding 2028 Notes; and $5.6 million in outstanding unsecured loans obtained under the CARES Act. The Company believes that the CARES Act loans will qualify for forgiveness, but there is no certainty that any or all of such loans will be forgiven. The Company also has a $15 million senior secured revolving credit facility, all of which was available to draw upon as of March 31, 2021.

2019 Results
Because of the pandemic closure period in 2020, the Company is also providing the results of the 2019 first quarter as a supplemental disclosure.

Conference Call Information
The Company will host a conference call for investors today, May 10, 2021, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2021 first quarter results. Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (866) 248-8441 or, for international callers, (323) 289-6581.

A replay of the conference call will be available shortly after the conclusion of the call through May 24, 2021. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (844) 512-2921 or, for international callers, (412) 317-6671 and using the passcode 8858326.

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(a) Reconciliation of Non-GAAP Financial Measure
The Company utilizes Adjusted Segment EBITDA, a financial measure in accordance with generally accepted accounting principles (“GAAP”), as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment. The Company also utilizes Adjusted EBITDA (a non-GAAP measure), which is defined as Adjusted Segment EBITDA net of corporate-related costs and expenses.

Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, the Company believes this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. The Company utilizes this metric or measure internally to focus management on year-over-year changes in core operating performance, which it considers its ordinary, ongoing and customary operations and which it believes is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.

A reconciliation of Adjusted EBITDA is presented below. However, you should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities, or any other measure for determining our operating performance or liquidity that is calculated in accordance with GAAP. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

    Three Months Ended
    March 31, 
    2021     2020  
Revenues            
Casino   $ 32,064     $ 20,751  
Food and beverage     6,101       6,990  
Hotel     2,211       1,974  
Other operations, including online/mobile sports     1,832       1,138  
      42,208       30,853  
Operating costs and expenses            
Casino     10,339       10,333  
Food and beverage     5,360       7,136  
Hotel     1,056       1,173  
Other operations     395       562  
Selling, general and administrative     14,413       12,981  
Project development costs     47       56  
Depreciation and amortization     1,800       2,040  
Loss on disposal of assets, net     104        
      33,514       34,281  
Operating income (loss)     8,694       (3,428 )
Other (expense) income, net            
Interest expense, net of capitalized interest     (4,456 )     (2,491 )
Loss on extinguishment of debt     (6,134 )      
Adjustment to fair value of warrants     (1,347 )     1,656  
      (11,937 )     (835 )
Loss before income taxes     (3,243 )     (4,263 )
Income tax provision     202       95  
Net loss   $ (3,445 )   $ (4,358 )
             
Basic loss per share   $ (0.13 )   $ (0.16 )
Diluted loss per share   $ (0.13 )   $ (0.22 )
             
Basic weighted average number of common shares outstanding     27,357       27,076  
Diluted weighted average number of common shares outstanding     27,357       27,440  

Full House Resorts, Inc.
Supplemental Information
Segment Revenues and Adjusted Segment EBITDA
(In Thousands, Unaudited)

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    Three Months Ended March 31, 
    2021     2020     2019  
Revenues                  
Mississippi   $ 22,356     $ 15,092     $ 19,281  
Indiana(2)     8,590       7,247       10,868  
Colorado(2)     5,905       4,982       6,440  
Nevada     4,368       3,108       3,905  
Contracted Sports Wagering(2)     989       424        
    $ 42,208     $ 30,853     $ 40,494  
                   
Adjusted Segment EBITDA(1) and Adjusted EBITDA                  
Mississippi   $ 7,630     $ 1,831     $ 3,845  
Indiana(2)     1,134       (1,490 )     404  
Colorado(2)     1,710       (471 )     615  
Nevada     1,224       (390 )     (9 )
Contracted Sports Wagering(2)     976       390        
Adjusted Segment EBITDA     12,674       (130 )     4,855  
Corporate     (1,905 )     (1,119 )     (1,278 )
Adjusted EBITDA   $ 10,769     $ (1,249 )   $ 3,577  

(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level.
(2) The Company made certain minor reclassifications to 2020 amounts to conform to current-period presentation for enhanced comparability. Such reclassifications had no effect on the previously reported results of operations or financial position.

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA
(In Thousands, Unaudited)

    Three Months Ended March 31, 
    2021     2020     2019  
Net loss   $ (3,445 )   $ (4,358 )   $ (1,617 )
Income tax provision     202       95       142  
Interest expense, net of amounts capitalized     4,456       2,491       2,703  
Loss on extinguishment of debt     6,134              
Adjustment to fair value of warrants     1,347       (1,656 )     40  
Operating income (loss)     8,694       (3,428 )     1,268  
Project development costs     47       56       133  
Depreciation and amortization     1,800       2,040       2,091  
Loss (gain) on disposal of assets, net     104             (1 )
Stock-based compensation     124       83       86  
Adjusted EBITDA   $ 10,769     $ (1,249 )   $ 3,577  

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)

Three Months Ended March 31, 2021
                                  Adjusted
                                  Segment
    Operating   Depreciation   Loss on   Project   Stock-   EBITDA and
    Income   and   Disposal   Development   Based   Adjusted
    (Loss)   Amortization   of Assets   Costs   Compensation   EBITDA
Reporting segments                                    
Mississippi   $ 6,948     $ 660   $ 22   $   $   $ 7,630  
Indiana     518       616                 1,134  
Colorado     1,281       347     82             1,710  
Nevada     1,085       139                 1,224  
Contracted Sports Wagering     976                       976  
      10,808       1,762     104             12,674  
Other operations                                    
Corporate     (2,114 )     38         47     124     (1,905 )
    $ 8,694     $ 1,800   $ 104   $ 47   $ 124   $ 10,769  

Three Months Ended March 31, 2020
                            Adjusted
                            Segment
    Operating   Depreciation   Project   Stock-   EBITDA and
    Income   and   Development   Based   Adjusted
    (Loss)   Amortization   Costs   Compensation   EBITDA
Reporting segments                              
Mississippi   $ 988     $ 843   $   $   $ 1,831  
Indiana     (2,112 )     622             (1,490 )
Colorado     (858 )     387             (471 )
Nevada     (540 )     150             (390 )
Contracted Sports Wagering     390                   390  
      (2,132 )     2,002             (130 )
Other operations                              
Corporate     (1,296 )     38     56     83     (1,119 )
    $ (3,428 )   $ 2,040   $ 56   $ 83   $ (1,249 )

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Three Months Ended March 31, 2019
                                  Adjusted
                                  Segment
    Operating   Depreciation   Gain on   Project   Stock-   EBITDA and
    Income   and   Disposal   Development   Based   Adjusted
    (Loss)   Amortization   of Assets   Costs   Compensation   EBITDA
Reporting segments                                    
Mississippi   $ 2,999     $ 847   $ (1 )   $   $   $ 3,845  
Indiana     (202 )     606                   404  
Colorado     168       447                   615  
Nevada     (162 )     153                   (9 )
Contracted Sports Wagering                              
      2,803       2,053     (1 )             4,855  
Other operations                                    
Corporate     (1,535 )     38           133     86     (1,278 )
    $ 1,268     $ 2,091   $ (1 )   $ 133   $ 86   $ 3,577  

Cautionary Note Regarding Forward-looking Statements
This press release contains statements by Full House and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected results of operations; our anticipated use of proceeds from the issuance of the 2028 Notes; our expected construction budget, estimated completion date, expected amenities, and our expected operational performance for Chamonix; our expectations regarding our sports revenue agreements with third-party providers, including the expected revenues and expenses and the expected timing for the launch of the sports betting ‘skins’ related thereto; the details of, and our expectations regarding, the potential future expansion of Silver Slipper; and our expectations regarding the Waukegan proposal, including our ability to obtain the casino license and, if we are awarded such license, to obtain financing. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Full House. Such risks include, without limitation, our ability to repay our substantial indebtedness; the potential for additional adverse impacts from the COVID-19 pandemic on our business, construction projects, indebtedness, financial condition and operating results; actions by government officials at the federal, state or local level with respect to steps to be taken, including, without limitation, additional shutdowns, travel restrictions, social distancing measures or shelter-in-place orders, in connection with the COVID-19 pandemic; our ability to effectively manage and control expenses as a result of the pandemic; our ability to complete Chamonix on-time and on-budget; changes in guest visitation or spending patterns due to COVID-19 or other health or other concerns; a decrease in overall demand as other competing entertainment venues continue to re-open; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; general macroeconomic conditions; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports Full House files with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. The Company is currently constructing Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado, and is one of three finalists for consideration by the Illinois Gaming Board to develop a casino in Waukegan, Illinois. For further information, please visit www.fullhouseresorts.com.

Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com

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Nasdaq:FLL

Chamonix, Colorado’s Newest and Most Luxurious Casino Hotel, Opens at Noon on Wednesday, December 27, 2023

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Located in charming Cripple Creek, Chamonix is conveniently located less than an hour from Colorado Springs and approximately two hours from Denver

CRIPPLE CREEK, Colo., Dec. 26, 2023 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced the opening details for its newest gaming destination – Chamonix Casino Hotel. Chamonix’s stylish new casino and luxurious 300-guestroom hotel effortlessly blend Colorado comfort with classic European elegance. It is located in historic Cripple Creek, approximately 45 miles from Colorado Springs and 80 miles from Denver’s southern suburbs. Chamonix is adjacent to – and integrated with – Bronco Billy’s Casino, also owned by Full House Resorts.

Chamonix features an elegant casino floor, with a wide variety of the newest slot machines, a high-limit slot salon, and the state’s most elegant table games area. Many of Chamonix’s hotel guestrooms and suites offer balconies and sweeping views of Cripple Creek, Pikes Peak and the spectacular Sangre de Cristo mountains.

On Wednesday at noon, Chamonix will open its entire casino, a portion of its 300-guestroom hotel, and its convenient valet, garage and surface parking. It will operate a temporary restaurant (Chamonix Bistro) and buffet in its elegant meeting room area. Within a week, the Company expects to open the balance of its guestrooms. In approximately one month, Chamonix plans to open its high-end 980 Prime restaurant, featuring the cuisine and supervision of Las Vegas celebrity chef Barry Dakake. Shortly thereafter, Chamonix will unveil Ore and Alloy, its freestanding jewelry and luxury retail store, and its opulent Chamonix Spa. The spa features a rooftop pool and deck; winter garden; large workout room with modern exercise equipment; eight massage rooms; and an assortment of saunas, steam rooms and other amenities. The spa also offers a full-service salon with hairdressers, barbers, and manicure and pedicure capabilities. In the spring, the adjoining Bronco Billy’s Casino will introduce its new Italian restaurant, Firenze.

Chamonix is named after the “Queen of Alpine” resorts in France, located at the foot of Mont Blanc and site of the first Winter Olympics in 1924. The name is particularly appropriate, as Colorado Springs is home to the U.S. Olympic Committee and Training Center. Our Chamonix destination in Colorado will add to the region’s century of high-end hospitality, which includes the world’s longest-running Forbes Five-Star and AAA Five-Diamond resort.

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“Chamonix is a special place, unlike any other casino hotel in the state. It offers a high-end, Las Vegas experience in our beautiful Colorado mountain setting,” said Baxter Lee, General Manager of Chamonix Casino Hotel. “We are overjoyed to open Chamonix’s doors on December 27 and to welcome our friends from Colorado and beyond.”

For more information on Chamonix Casino Hotel or to reserve a room, please visit www.ChamonixCO.com.

About Full House Resorts, Inc.
Full House Resorts (Nasdaq: FLL) owns, leases, develops and operates gaming facilities throughout the country. Our properties include Chamonix Casino Hotel and Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; 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.

Forward-looking Statements
This press release may contain 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 the opening timeline for Chamonix and its expected amenities. 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. 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.

CONTACT: Media:
Tyler Rabel
Two by Four
[email protected]
(312) 445-4728

Investors:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
(702) 221-7800

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Nasdaq:FLL

Chamonix Casino Hotel Announces Reservations Are Now Open

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The Casino and Hotel will officially open on December 26, 2023

CRIPPLE CREEK, Colo., Nov. 03, 2023 (GLOBE NEWSWIRE) — Chamonix Casino Hotel announced today that hotel reservations for Colorado’s newest casino destination are now open. The 300-room hotel will feature the first luxury guest rooms in the Cripple Creek market, skillfully blending the comfort and charm of Colorado with European elegance. Both the casino and hotel are scheduled to open to the public on December 26, 2023.

Located adjacent to our existing Bronco Billy’s Casino, Chamonix will feature a spacious, new, stylish and exciting casino gaming area; a fine-dining restaurant operated by Barry Dakake, a celebrated chef known for leading several steakhouses in Las Vegas; a rooftop pool and high-end spa; entertainment and meeting space, including a 5,100-square-foot ballroom; and approximately 300 luxurious guest rooms and VIP suites. Fireplaces, soaking tubs, and balconies with spectacular views of The Rockies are just some of the highlights awaiting discovery in many of Chamonix’s guest rooms.

Guests can also experience Pikes Peak and the surrounding area’s natural beauty by hiking, mountain biking, rock climbing, fishing, fossil hunting, and exploring local gold-mining operations and historic railways.

“We are so incredibly proud and excited to unveil this beautiful property,” said Baxter Lee, General Manager of Chamonix Casino and Hotel. “Cripple Creek is an area with a rich history that we wanted to honor with this new property. We set out to create a casino and hotel that the residents of this town can be proud of. I’m excited to officially open our doors in December and show off all our hard work. Reserve your room today; this will be a special place you will want to visit.”

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For more information on Chamonix Casino and Hotel or to reserve a room, please visit www.ChamonixCO.com.

About Chamonix Casino and Hotel
Scheduled to open on December 26, 2003, Chamonix Casino and Hotel will feature a stylish new casino, extensive entertainment and meeting space, and a new fine dining steakhouse. Guests will also be able to enjoy a luxurious hotel that will include a variety of guest rooms, including several two-story suites, rooftop pool, and soon-to-open spa. Located in historic Cripple Creek, Colorado, the property blends the comfort of Colorado with European elegance creating a unique experience unlike anything else in the state. For more information, visit www.ChamonixCO.com.

About Full House Resorts, Inc.
Full House Resorts (Nasdaq: FLL) owns, leases, develops and operates gaming facilities throughout the country. Our 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. We are currently constructing Chamonix Casino Hotel, a new luxury hotel and casino scheduled to open in December 2023 in Cripple Creek, Colorado. For further information, please visit www.fullhouseresorts.com.

Forward-looking Statements
This press release may contain 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 Chamonix’s expected opening date and expected amenities. 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 complete Chamonix on-time and on-budget. 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.

Media Contact
Tyler Rabel
Two by Four
[email protected]
(312) 445-4728

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Nasdaq:FLL

Full House Resorts Announces Second Quarter Results

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– Revenues Increased 33.8% to $59.4 Million

– The Temporary by American Place Completes Its First Full Quarter of Operations;
Illinois Sportsbook Expected to Commence Operations Shortly

– Opening of Chamonix Casino Hotel in Colorado Slated for December 26, 2023

LAS VEGAS, Aug. 08, 2023 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the second quarter ended June 30, 2023, including updates regarding its growth pipeline.

“The Temporary by American Place completed its first full quarter of operations, recording $20.3 million in revenue and $4.1 million in Adjusted Property EBITDA,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “The trends at The Temporary are similar to those of many other successful casinos. The number of visitors surged at opening in mid-February and then, after a short lull, has grown steadily since April. Meanwhile, its win per admission, while still less than more-established casinos in Illinois, has grown steadily since opening, as regular players replace people who were more tourists than gamblers. Note that in July, our fifth full month of operations, the property’s reported gaming revenues ranked sixth out of the 13 casinos in operation in Illinois. Our expenses relative to revenues have been higher than we expect them to be at ‘maturity,’ reflecting primarily our costs to train new personnel, especially dealers, and additional advertising and marketing costs. We currently have 48 table games on the casino floor, of our planned 50 tables. Due to staffing challenges, however, we are currently operating only approximately 30 of those tables on a typical weekend evening. The shortage of dealers also affects the number of tables that we operate in non-peak periods. We continue to operate our own dealer school, where potential dealers are paid during their several weeks of training, which affects margins and profitability, but is necessary to reach the property’s potential. Our marketing expenses are also expected to gradually become more efficient over time, as we build a database and achieve broader brand recognition.

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“The Temporary initially opened to the public on February 17, 2023, just 14 months after we were selected by the Illinois Gaming Board to develop the Waukegan opportunity. It opened with limited food service, limited hours of operation, and low table game limits. We currently operate two restaurants on most days, one in the evenings and the other for lunch. The property’s high-end restaurant, North Shore Steaks and Seafood, is expected to open later this year. Our casino is now open 24 hours per day on weekends and from 8:00 a.m. to 4:00 a.m. during the week. As of May 13, we have been able to set our own table game betting limits, which are now up to $5,000 per hand. Table limits may increase further as our casino staff gains greater experience. As noted, we continue to hire and train dealers, which will allow us to operate more table games during busy periods. Our on-site sportsbook, which will be operated in partnership with Circa Sports, is expected to open shortly. Circa Sports is also expected to begin online sports betting in Illinois soon, with the first payment under our agreement due in mid-August.”

Continued Mr. Lee, “At our Chamonix project in Cripple Creek, Colorado, meaningful construction continues, with exteriors now largely complete. Within the main hotel tower, our contractor is completing guest rooms and we anticipate beginning the installation of furniture shortly. The extensive millwork in the casino and high-end restaurant is also underway. We expect to begin taking hotel reservations for Chamonix at www.ChamonixCO.com shortly. We look forward to welcoming guests to our Chamonix Casino Hotel on December 26, 2023. It will be the first luxury casino hotel in the Colorado Springs area, and we believe it will be one of the best casino hotels in the entire Midwest.”

On a consolidated basis, revenues in the second quarter of 2023 were $59.4 million, a 33.8% increase from $44.4 million in the prior-year period. Net loss for the second quarter of 2023 was $5.6 million, or $(0.16) per diluted common share, which includes $1.1 million of preopening and development costs, primarily related to our Chamonix construction project, and significant depreciation and amortization charges related to The Temporary. In the prior-year period, net loss was $4.4 million, or $(0.13) per diluted common share, reflecting $1.6 million of preopening and development costs, Rising Star’s sale of “free play” (which also occurred during 2023, though in the first quarter instead of the second quarter), and the acceleration of deferred revenue for two sports wagering agreements that ceased operations in May 2022. Adjusted EBITDA(a) was $10.5 million in the 2023 second quarter, versus $12.1 million in the prior-year period, reflecting the items mentioned above, plus elevated marketing, training expenses, and other ramp-up costs for the newly-opened Temporary.

For project renderings and live construction webcams of our Chamonix project, please visit www.ChamonixCO.com

Second Quarter Highlights and Subsequent Events

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  • Midwest & South. This segment includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and The Temporary by American Place. Revenues for the segment were $49.9 million in the second quarter of 2023, a 51.5% increase from $32.9 million in the prior-year period. Adjusted Segment EBITDA rose to $9.4 million, a 2.6% increase from $9.1 million in the prior-year period. These results reflect the February 17, 2023 opening of The Temporary, our newest casino located in Waukegan, Illinois. In the second quarter of 2023, The Temporary generated $20.3 million of revenue and $4.1 million of Adjusted Property EBITDA. We expect The Temporary’s results to increase in the coming quarters, as the property’s database continues to expand and marketing, labor and other early costs normalize. Additionally, results for the prior-year’s second quarter include Rising Star’s sale of “free play,” which resulted in $2.1 million of revenue and income. Rising Star also sold its “free play” for $2.1 million during 2023, though in the first quarter instead of the second quarter.

    Excluding results from The Temporary, same-store revenues declined to $29.6 million from $32.9 million, largely due to the sale of “free play” at Rising Star, as noted above. Same-store Adjusted Segment EBITDA declined to $5.3 million from $9.1 million, due largely to the “free play” sale and increases in labor expenses and insurance costs at Silver Slipper.

  • 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, upon its expected opening in December 2023, will include Chamonix Casino Hotel. Revenues for the segment were $8.1 million in the second quarter of 2023 versus $9.3 million in the prior-year period. Adjusted Segment EBITDA was $0.2 million versus $1.7 million. 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. Additionally, the current period reflects heavy winter snowfall in the Lake Tahoe region, which delayed the return of seasonal residents to Incline Village.
  • Contracted Sports Wagering. This segment consists of our on-site and online sports wagering “skins” (akin to websites) in Colorado, Indiana and, upon launch, Illinois. Revenues and Adjusted Segment EBITDA were both $1.4 million in the second quarter of 2023, reflecting all three of our permitted skins now contractually live in Colorado and two of our three skins live in Indiana. Revenues and Adjusted EBITDA were both $2.2 million in the prior-year period, reflecting an acceleration of deferred revenue for two agreements that ceased operations in May 2022, when one of our contracted parties ended its online operations.

    The results of this segment do not yet include income contribution from our Illinois sports skin. For this sports skin, we will receive a percentage of revenues, as defined in the contract, subject to a minimum amount of $5 million per year. Under the agreement, we begin to receive revenue payments for our Illinois sports skin in August 2023, irrespective of whether online sports wagering operations have begun. The total annualized minimum amount for all six of our current sports wagering agreements will be $10 million once this Illinois skin is live.

Liquidity and Capital Resources
As of June 30, 2023, we had $113.6 million in cash and cash equivalents, including $78.1 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 become callable at specified premiums beginning 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, August 8, 2023, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2023 second 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 August 22, 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 13739434.

(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, 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.

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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 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   Six Months Ended
    June 30,    June 30, 
       2023      2022      2023      2022
Revenues                            
Casino   $ 45,359     $ 29,488     $ 81,346     $ 58,572  
Food and beverage     8,673       6,933       16,333       13,444  
Hotel     2,348       2,407       4,492       4,586  
Other operations, including contracted sports wagering     3,002       5,555       7,317       9,204  
      59,382       44,383       109,488       85,806  
Operating costs and expenses                          
Casino     16,990       10,106       30,334       19,981  
Food and beverage     9,030       6,752       16,485       13,320  
Hotel     1,228       1,197       2,447       2,268  
Other operations     705       545       1,187       1,007  
Selling, general and administrative     21,577       14,184       39,806       29,577  
Project development costs     17       17       24       182  
Preopening costs     1,086       1,534       11,583       2,320  
Depreciation and amortization     8,155       1,834       14,014       3,626  
(Gain) loss on disposal of assets           (5 )           3  
      58,788       36,164       115,880       72,284  
Operating income (loss)     594       8,219       (6,392 )     13,522  
Other (expense) income                        
Interest expense, net     (5,633 )     (6,988 )     (10,452 )     (13,387 )
Loss on modification of debt           (19 )           (4,425 )
Gain on insurance settlement                 355        
      (5,633 )     (7,007 )     (10,097 )     (17,812 )
(Loss) income before income taxes     (5,039 )     1,212       (16,489 )     (4,290 )
Income tax provision (benefit)     561       5,567       526       (45 )
Net loss   $ (5,600 )   $ (4,355 )   $ (17,015 )   $ (4,245 )
                         
Basic loss per share   $ (0.16 )   $ (0.13 )   $ (0.49 )   $ (0.12 )
Diluted loss per share   $ (0.16 )   $ (0.13 )   $ (0.49 )   $ (0.12 )
                         
Basic weighted average number of common shares outstanding     34,496       34,364       34,453       34,313  
Diluted weighted average number of common shares outstanding     34,496       34,416       34,453       34,358  
                                 

Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)

                         
    Three Months Ended   Six Months Ended
    June 30,    June 30, 
       2023      2022      2023      2022
Revenues                        
Midwest & South   $ 49,911     $ 32,936     $ 90,713     $ 62,882  
West     8,089       9,278       16,213       17,924  
Contracted Sports Wagering     1,382       2,169       2,562       5,000  
    $ 59,382     $ 44,383     $ 109,488     $ 85,806  
Adjusted Segment EBITDA(1) and Adjusted EBITDA                        
Midwest & South   $ 9,391     $ 9,149     $ 20,077     $ 16,239  
West     177       1,684       234       2,191  
Contracted Sports Wagering     1,361       2,196       2,522       4,964  
Adjusted Segment EBITDA     10,929       13,029       22,833       23,394  
Corporate     (422 )     (943 )     (2,201 )     (2,911 )
Adjusted EBITDA   $ 10,507     $ 12,086     $ 20,632     $ 20,483  

__________

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(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       Six Months Ended      
    June 30,    Increase /   June 30,    Increase /
       2023      2022      (Decrease)      2023      2022      (Decrease)
Midwest & South same-store total revenues(1)   $ 29,584   $ 32,936   (10.2 )%   $ 59,966   $ 62,882   (4.6 )%  
The Temporary by American Place     20,327       N.M.       30,747       N.M.    
Midwest & South total revenues   $ 49,911   $ 32,936   51.5   $ 90,713   $ 62,882   44.3  %  
                                   
Midwest & South same-store
Adjusted Segment EBITDA(1)
  $ 5,258   $ 9,149   (42.5 )%   $ 12,372   $ 16,239   (23.8 )%  
The Temporary by American Place     4,133       N.M.       7,705       N.M.    
Midwest & South Adjusted Segment EBITDA   $ 9,391   $ 9,149   2.6 %   $ 20,077   $ 16,239   23.6  %  

__________

N.M. Not meaningful.
(1)   Same-store operations exclude results from The Temporary by American Place, which opened on February 17, 2023.

Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Loss and Operating Income (Loss) to Adjusted EBITDA
(In thousands, Unaudited)

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  Three Months Ended   Six Months Ended
  June 30,    June 30, 
  2023      2022      2023      2022
Net loss $ (5,600 )   $ (4,355 )   $ (17,015 )   $ (4,245 )
Income tax provision (benefit)   561       5,567       526       (45 )
Interest expense, net   5,633       6,988       10,452       13,387  
Loss on modification of debt         19             4,425  
Gain on insurance settlement               (355 )      
Operating income (loss)   594       8,219       (6,392 )     13,522  
Project development costs   17       17       24       182  
Preopening costs   1,086       1,534       11,583       2,320  
Depreciation and amortization   8,155       1,834       14,014       3,626  
(Gain) loss on disposal of assets         (5 )           3  
Stock-based compensation   655       487       1,403       830  
Adjusted EBITDA $ 10,507     $ 12,086     $ 20,632     $ 20,483  
 

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 June 30, 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   $ 1,830     $ 7,556   $   $ 5   $   $ 9,391  
West     (1,473 )     569         1,081         177  
Contracted Sports Wagering     1,361                       1,361  
      1,718       8,125         1,086         10,929  
Other operations                                        
Corporate     (1,124 )     30     17         655     (422 )
    $ 594     $ 8,155   $ 17   $ 1,086   $ 655   $ 10,507  

                                           
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                                               
Midwest & South   $ 7,003     $ 1,281   $     $   $ 865   $   $ 9,149  
West     496       524     (5 )         669         1,684  
Contracted Sports Wagering     2,196                             2,196  
      9,695       1,805     (5 )         1,534         13,029  
Other operations                                               
Corporate     (1,476 )     29           17         487     (943 )
    $ 8,219     $ 1,834   $ (5 )   $ 17   $ 1,534   $ 487   $ 12,086  
 

Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)

                                     
Six Months Ended June 30, 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   $ (2,836 )   $ 12,812   $   $ 10,101   $   $ 20,077  
West     (2,389 )     1,141         1,482         234  
Contracted Sports Wagering     2,522                       2,522  
      (2,703 )     13,953         11,583         22,833  
Other operations                                        
Corporate     (3,689 )     61     24         1,403     (2,201 )
    $ (6,392 )   $ 14,014   $ 24   $ 11,583   $ 1,403   $ 20,632  

                                           
Six Months Ended June 30, 2022
                                      Adjusted
                Loss (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   $ 12,028     $ 2,552   $ 8     $   $ 1,651   $   $ 16,239  
West     515       1,012     (5 )         669         2,191  
Contracted Sports
Wagering
    4,964                             4,964  
      17,507       3,564     3           2,320         23,394  
Other operations                                                 
Corporate     (3,985 )     62           182         830     (2,911 )
    $ 13,522     $ 3,626   $ 3     $ 182   $ 2,320   $ 830   $ 20,483  
 

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 The Temporary; and our expectations regarding the success and commencement dates 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 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 Chamonix or other construction projects, including 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; 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.

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About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. Our 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. We are currently constructing Chamonix Casino Hotel, a new luxury hotel and casino expected to open in December 2023 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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