Nasdaq:FLL
Full House Resorts Announces Fourth Quarter and Full-Year Results
– Revenues Increased 13.1% Over Prior-Year’s Fourth Quarter and 43.5% from 2020
– Full-Year Operating Income Increased to $37.6 Million in 2021 from $10.5 Million in 2020;
Net Income Rose to $11.7 Million from $0.1 Million;
Adjusted EBITDA in 2021 Increased to $47.2 Million from $19.7 Million
– Company Selected to Develop Its American Place Entertainment Destination in Waukegan, Illinois;
Plans to Open Temporary Casino in Waukegan in Summer 2022
– Construction of Chamonix Casino Hotel Continues, with an Expected Opening in the Second Quarter of 2023
LAS VEGAS, March 08, 2022 (GLOBE NEWSWIRE) — Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2021.
On a consolidated basis, revenues in the fourth quarter of 2021 were $43.3 million, a 13.1% increase from $38.3 million in the prior-year period. Both periods reflect a full quarter of reopened operations, as all of the Company’s properties reopened by June 2020 after closing in March 2020 due to the pandemic. Net income for the fourth quarter of 2021 was $5.0 million, or $0.14 per diluted common share, despite $1.7 million of expenses for corporate initiatives that did not occur in 2020 and are not expected to recur in 2022. The fourth quarter also reflects timing differences for the sale of “free play” in Indiana, which occurred in the third quarter for the recent year and the fourth quarter in 2020, as well as a gain on the extinguishment of the Company’s CARES Act loans and additional interest expense related to the funding of the Company’s Chamonix development project in Cripple Creek, Colorado. In the prior-year period, net income was $3.5 million, or $0.12 per diluted common share. Adjusted EBITDA(a) in the 2021 fourth quarter was $7.9 million, reflecting strength in the Company’s Mississippi segment, the additional $1.7 million of corporate expenses noted above, and the continued ramp-up of the Company’s contracted sports wagering segment. As of December 1, 2021, all of the Company’s sports wagering “skins” were contractually live. Adjusted EBITDA in the 2020 fourth quarter was $9.8 million, which includes $2.1 million for the sale of “free play” in Indiana. As noted above, a similar “free play” sale for $2.1 million occurred during 2021, but in the third quarter.
For the full year, revenues in 2021 were $180.2 million, a 43.5% increase from $125.6 million in the prior-year period. Net income in 2021 rose to $11.7 million, or $0.33 per diluted common share, from $0.1 million, or $0.01 per diluted common share, in 2020. Adjusted EBITDA in 2021 increased to $47.2 million, a 140.2% increase from $19.7 million in 2020.
“We are proud of our continued growth in 2021,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Due to several years of investments in our properties and in new technology, as well as the hard work of our team in managing expenses, Adjusted EBITDA increased to $47.2 million from $19.7 million in 2020. All of our segments achieved their highest profits in any of the past five years and some properties, like the Silver Slipper, reached new all-time records for financial performance. It was an extremely strong year throughout the Company.
“We expect 2022 to be a similarly transformative year for Full House Resorts,” continued Mr. Lee. “While our permanent American Place facility in Waukegan, Illinois, will require approximately three years to construct, we expect to introduce American Place to the area’s residents much sooner – this upcoming summer – via The Temporary. We have spent several months designing a temporary casino facility and expect to begin erecting the casino structure in the next month, when major components of the structure begin to arrive on-site.
“Our other major construction project, Chamonix in Cripple Creek, Colorado, should continue the transformation of our Company when it opens in the second quarter of 2023. Our confidence in Chamonix has reached new highs, driven by the success of a recent casino opening in Black Hawk, Colorado, and the significant growth in Colorado’s gaming revenues since the elimination of betting maximums in April 2021. Chamonix will be the first high-quality casino hotel in Cripple Creek, and we expect it to meaningfully grow the market’s gaming revenue and generate a strong return on investment for our Company, similar to what has occurred in Black Hawk.”
Fourth Quarter Highlights and Subsequent Events
- Mississippi. The Silver Slipper Casino and Hotel’s operational performance continues to reflect a focus on marketing and labor improvements, as well as the benefit of numerous investments in the property in recent years. Such investments include a substantial renovation of the casino and the buffet, a renovated porte cochere, repainted exterior, new energy-efficient building signage, the Beach Club, the Oyster Bar, and the introduction of on-site sports betting. For the fourth quarter of 2021, revenues at Silver Slipper increased 22.7% to $22.5 million, reflecting the relaxation of pandemic-related business restrictions that were in place. Adjusted Segment EBITDA increased 31.3% to $6.7 million from $5.1 million. For the full year, revenues increased 45.0% to $90.6 million and Adjusted Segment EBITDA increased 103.4% to $29.8 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Indiana. Rising Star Casino Resort’s revenues were $9.7 million in the fourth quarter of 2021, a decrease from $10.5 million in the fourth quarter of 2020, reflecting adverse hold in the recent quarter. Adjusted Segment EBITDA of $1.1 million in the fourth quarter of 2021 compares to $3.2 million in the prior-year period. The decrease was primarily due to timing differences related to the Company’s annual sale of “free play.” The state’s casinos are permitted to transfer “free play” to other casino operators within Indiana. Because Indiana has a progressive gaming tax system and Rising Star is one of the smaller casinos in the state, the property has consistently sold its ability to deduct “free play” in computing gaming taxes to operators in higher tax tiers. Such sale resulted in $2.1 million of revenue and income in the fourth quarter of 2020. Rising Star also sold its “free play” for $2.1 million during 2021, albeit in the third quarter. For the full year, revenues increased 40.3% to $41.4 million and Adjusted Segment EBITDA increased 257.4% to $8.7 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Colorado. This segment includes Bronco Billy’s Casino and Hotel and, upon its opening, will include Chamonix Casino Hotel. Revenues for this segment were $5.0 million in the fourth quarter of 2021, a decrease from $5.4 million in the fourth quarter of 2020. Adjusted Segment EBITDA of $0.5 million in the fourth quarter of 2021 compares to $1.3 million in the prior-year period. Results in the current period were impacted by the loss of all of the property’s on-site parking due to the construction of Chamonix. To alleviate the lack of on-site parking, the Company introduced complimentary valet parking, as well as a free shuttle service to an off-site parking lot. For the full year, revenues increased 20.6% to $23.7 million and Adjusted Segment EBITDA increased 46.3% to $5.5 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
As discussed above, construction continues on Chamonix Casino Hotel, located adjacent to Bronco Billy’s. When complete, Chamonix will include a new casino, approximately 300 luxury guest rooms and suites, parking garage, meeting and entertainment space, outdoor pool, spa, and fine-dining restaurant. Vertical construction commenced in late 2021, with work currently being performed on the second floor of the hotel tower and the fifth floor of the parking garage. The three principal guestroom towers are anticipated to “top out” between April and August 2022. For detailed renderings of the project and two webcams of the construction underway, please visit www.ChamonixCO.com.
- Nevada. This segment consists of the Grand Lodge Casino, which is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, and Stockman’s Casino, which is located in Fallon, Nevada. This segment is historically the smallest of the Company’s segments. During the fourth quarter of 2021, the segment continued to benefit from the relaxation of pandemic-related restrictions, including at the Naval air station near Stockman’s and at the ski areas near Grand Lodge. Revenues increased 25.5% to $4.3 million in the fourth quarter of 2021. Adjusted Segment EBITDA rose to $0.8 million, a 102.1% increase from $0.4 million in the fourth quarter of 2020. For the full year, revenues increased 57.8% to $18.5 million and Adjusted Segment EBITDA increased 986.6% to $4.9 million in 2021, reflecting the mandated closure of the property for several months in 2020 due to the COVID pandemic.
- Contracted Sports Wagering. This segment consists of the Company’s on-site and online sports wagering “skins” (akin to websites) in Colorado and Indiana. Revenues and Adjusted Segment EBITDA were both $1.8 million in the fourth quarter of 2021. These results reflect an additional skin that contractually went live on December 1, 2021. As a result, all of the Company’s six permitted sports wagering skins were in operation in the fourth quarter of 2021. For the fourth quarter of 2020, when three sports wagering skins were live, revenues and Adjusted Segment EBITDA were $0.6 million.
In February 2022, one of the Company’s contracted parties for sports wagering informed us of its intent to cease operations on May 15, 2022, which will create one available skin in each of Colorado and Indiana. Full House is currently negotiating with other companies to be the replacement operator for such skins.
Additionally, the Company expects to have an available sports skin in Illinois, as the Company was recently chosen by the Illinois Gaming Board (“IGB”) to develop and operate a casino in Waukegan, Illinois, as discussed below. Illinois law allows one sports skin for each physical casino license, resulting in fewer total sports skins than in each of Colorado and Indiana. Illinois is also the sixth most populous state in the country, with approximately 12.8 million residents. As a result, the Company expects to receive better terms for its Illinois skin than for any of its individual skins in Colorado or Indiana.
- Corporate. Corporate expenses increased during the fourth quarter of 2021, primarily due to $1.7 million of expenses related to corporate initiatives that are not expected to recur in 2022. For the full year, expenses related to such initiatives totaled $2.1 million. Corporate expenses also increased due to additional professional fees, a gradual resumption of activities in late 2020 following the closure period, and an increase in accrued bonus compensation, reflecting the Company’s improved operating results.
- American Place. In December 2021, Full House was chosen by the IGB to develop American Place, a new gaming and entertainment destination located in Waukegan, Illinois, a northern suburb of Chicago, subject to final regulatory approvals. The permanent American Place facility is slated to include a world-class casino with a state-of-the-art sports book; a premium boutique hotel comprised of 20 luxurious villas, each ranging from 1,500 to 2,500 square feet with full butler service; a 1,500-seat live entertainment venue; a gourmet restaurant that will rival the finest restaurants in Chicago; additional eateries and bars; and other amenities that will attract gaming and non-gaming patrons from throughout Chicagoland and beyond.
While the larger, more lavish, permanent facility is under construction, the Company will operate a temporary casino facility, aptly named The Temporary by American Place. The Temporary is slated to include approximately 1,000 slot machines, 50 table games, a fine-dining restaurant, two additional restaurants, and a center bar. We intend to open The Temporary in Summer 2022, pending customary gaming approvals.
In preparation for the opening of The Temporary, the Company recently agreed to purchase a “Sprung structure,” which has an area of approximately 1.5 football fields and will house most of the temporary casino. The Sprung structure is expected to arrive on-site in April 2022. Additionally, the Company recently entered into an agreement to purchase approximately 10 acres of land adjoining the approximately 30-acre casino site to be leased from the city, providing space for additional parking and access to the casino site from a major road. Next week, the Company is holding a career fair to begin interviewing applicants for available jobs throughout The Temporary.
Liquidity and Capital Resources
As of December 31, 2021, the Company had $265.3 million in cash and cash equivalents (including $176.6 million of cash reserved for the construction of Chamonix) and $310.0 million in outstanding senior secured notes due 2028. During the fourth quarter of 2021, the Company’s $5.6 million of unsecured loans obtained under the CARES Act were fully forgiven.
Subsequent to year-end, the Company successfully completed its funding of The Temporary at American Place, which is intended to open in Summer 2022. In February 2022, the Company closed a private offering of $100.0 million aggregate principal amount of its 8.25% Senior Secured Notes due 2028 (the “Additional Notes”). The Additional Notes were sold at a price of 102.0% of the principal amount and were issued pursuant to an indenture under which the Company issued $310.0 million of identical senior secured notes in February 2021. The Company also amended its revolving credit agreement to, among other things, increase its borrowing capacity from $15.0 million to $40.0 million, all of which was available to draw upon as of March 8, 2022. The interest rate for borrowings under the credit facility, based on today’s rates, would be less than 4%.
Conference Call Information
The Company will host a conference call for investors today, March 8, 2022, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2021 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 (888) 254-3590 or, for international callers, (323) 794-2551.
A replay of the conference call will be available shortly after the conclusion of the call through March 22, 2022. To access the replay, please visit www.fullhouseresorts.com. Investors can also access the replay by dialing (844) 512-2921 or, for international callers, (412) 317-6671 and using the passcode 2361210.
(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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Casino | $ | 31,214 | $ | 27,196 | $ | 130,431 | $ | 90,812 | ||||||||
| Food and beverage | 6,714 | 5,170 | 27,347 | 19,766 | ||||||||||||
| Hotel | 2,434 | 2,206 | 9,624 | 7,410 | ||||||||||||
| Other operations, including contracted sports wagering | 2,909 | 3,697 | 12,757 | 7,601 | ||||||||||||
| 43,271 | 38,269 | 180,159 | 125,589 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Casino | 11,078 | 9,863 | 43,765 | 33,749 | ||||||||||||
| Food and beverage | 6,270 | 4,925 | 23,757 | 19,378 | ||||||||||||
| Hotel | 1,112 | 1,110 | 4,444 | 3,773 | ||||||||||||
| Other operations | 458 | 414 | 1,980 | 1,855 | ||||||||||||
| Selling, general and administrative | 16,754 | 12,253 | 59,965 | 47,585 | ||||||||||||
| Project development costs | 291 | — | 782 | 423 | ||||||||||||
| Preopening costs | — | — | 17 | — | ||||||||||||
| Depreciation and amortization | 1,771 | 1,798 | 7,219 | 7,666 | ||||||||||||
| Loss on disposal of assets, net | 2 | 245 | 676 | 684 | ||||||||||||
| 37,736 | 30,608 | 142,605 | 115,113 | |||||||||||||
| Operating income | 5,535 | 7,661 | 37,554 | 10,476 | ||||||||||||
| Other (expense) income, net | ||||||||||||||||
| Interest expense, net of capitalized interest | (6,126 | ) | (2,494 | ) | (23,657 | ) | (9,823 | ) | ||||||||
| Gain (loss) on extinguishment of debt, net | 5,695 | — | (409 | ) | — | |||||||||||
| Adjustment to fair value of warrants | — | (1,757 | ) | (1,347 | ) | (598 | ) | |||||||||
| (431 | ) | (4,251 | ) | (25,413 | ) | (10,421 | ) | |||||||||
| Income before income taxes | 5,104 | 3,410 | 12,141 | 55 | ||||||||||||
| Income tax expense (benefit) | 56 | (90 | ) | 435 | (92 | ) | ||||||||||
| Net income | $ | 5,048 | $ | 3,500 | $ | 11,706 | $ | 147 | ||||||||
| Basic earnings per share | $ | 0.15 | $ | 0.13 | $ | 0.36 | $ | 0.01 | ||||||||
| Diluted earnings per share | $ | 0.14 | $ | 0.12 | $ | 0.33 | $ | 0.01 | ||||||||
| Basic weighted average number of common shares outstanding | 34,231 | 27,114 | 32,517 | 27,094 | ||||||||||||
| Diluted weighted average number of common shares outstanding | 36,749 | 28,428 | 34,946 | 27,784 | ||||||||||||
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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Mississippi | $ | 22,495 | $ | 18,334 | $ | 90,628 | $ | 62,513 | ||||||||
| Indiana(2) | 9,685 | 10,504 | 41,435 | 29,524 | ||||||||||||
| Colorado(2) | 5,032 | 5,364 | 23,660 | 19,614 | ||||||||||||
| Nevada | 4,299 | 3,426 | 18,516 | 11,732 | ||||||||||||
| Contracted Sports Wagering(2) | 1,760 | 641 | 5,920 | 2,206 | ||||||||||||
| $ | 43,271 | $ | 38,269 | $ | 180,159 | $ | 125,589 | |||||||||
| Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
| Mississippi | $ | 6,747 | $ | 5,140 | $ | 29,843 | $ | 14,669 | ||||||||
| Indiana(2) | 1,120 | 3,213 | 8,736 | 2,444 | ||||||||||||
| Colorado(2) | 453 | 1,344 | 5,545 | 3,790 | ||||||||||||
| Nevada | 760 | 376 | 4,933 | 454 | ||||||||||||
| Contracted Sports Wagering(2) | 1,768 | 619 | 5,890 | 2,086 | ||||||||||||
| Adjusted Segment EBITDA | 10,848 | 10,692 | 54,947 | 23,443 | ||||||||||||
| Corporate | (2,930 | ) | (890 | ) | (7,733 | ) | (3,789 | ) | ||||||||
| Adjusted EBITDA | $ | 7,918 | $ | 9,802 | $ | 47,214 | $ | 19,654 | ||||||||
__________
(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 | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income | $ | 5,048 | $ | 3,500 | $ | 11,706 | $ | 147 | |||||||
| Income tax expense (benefit) | 56 | (90 | ) | 435 | (92 | ) | |||||||||
| Interest expense, net of amounts capitalized | 6,126 | 2,494 | 23,657 | 9,823 | |||||||||||
| (Gain) loss on extinguishment of debt, net | (5,695 | ) | — | 409 | — | ||||||||||
| Adjustment to fair value of warrants | — | 1,757 | 1,347 | 598 | |||||||||||
| Operating income | 5,535 | 7,661 | 37,554 | 10,476 | |||||||||||
| Project development costs | 291 | — | 782 | 423 | |||||||||||
| Preopening costs | — | — | 17 | — | |||||||||||
| Depreciation and amortization | 1,771 | 1,798 | 7,219 | 7,666 | |||||||||||
| Loss on disposal of assets, net | 2 | 245 | 676 | 684 | |||||||||||
| Stock-based compensation | 319 | 98 | 966 | 405 | |||||||||||
| Adjusted EBITDA | $ | 7,918 | $ | 9,802 | $ | 47,214 | $ | 19,654 | |||||||
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, 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 | ||||||||
| Three Months Ended December 31, 2020 | ||||||||||||||||
| Adjusted | ||||||||||||||||
| Segment | ||||||||||||||||
| Operating | Depreciation | Loss on | Stock- | EBITDA and | ||||||||||||
| Income | and | Disposal | Based | Adjusted | ||||||||||||
| (Loss) | Amortization | of Assets | Compensation | EBITDA | ||||||||||||
| Reporting segments | ||||||||||||||||
| Mississippi | $ | 4,239 | $ | 657 | $ | 244 | $ | — | $ | 5,140 | ||||||
| Indiana | 2,592 | 621 | — | — | 3,213 | |||||||||||
| Colorado | 1,002 | 342 | — | — | 1,344 | |||||||||||
| Nevada | 236 | 140 | — | — | 376 | |||||||||||
| Contracted Sports Wagering | 619 | — | — | — | 619 | |||||||||||
| 8,688 | 1,760 | 244 | — | 10,692 | ||||||||||||
| Other operations | ||||||||||||||||
| Corporate | (1,027 | ) | 38 | 1 | 98 | (890 | ) | |||||||||
| $ | 7,661 | $ | 1,798 | $ | 245 | $ | 98 | $ | 9,802 | |||||||
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, 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 | |||||||||
| Year Ended December 31, 2020 | |||||||||||||||||||
| Adjusted | |||||||||||||||||||
| Segment | |||||||||||||||||||
| Operating | Depreciation | Loss on | Project | Stock- | EBITDA and | ||||||||||||||
| Income | and | Disposal | Development | Based | Adjusted | ||||||||||||||
| (Loss) | Amortization | of Assets | Costs | Compensation | EBITDA | ||||||||||||||
| Reporting segments | |||||||||||||||||||
| Mississippi | $ | 11,421 | $ | 3,004 | $ | 244 | $ | — | $ | — | $ | 14,669 | |||||||
| Indiana | (34 | ) | 2,478 | — | — | — | 2,444 | ||||||||||||
| Colorado | 2,336 | 1,450 | 4 | — | — | 3,790 | |||||||||||||
| Nevada | (562 | ) | 581 | 435 | — | — | 454 | ||||||||||||
| Contracted Sports Wagering | 2,086 | — | — | — | — | 2,086 | |||||||||||||
| 15,247 | 7,513 | 683 | — | — | 23,443 | ||||||||||||||
| Other operations | |||||||||||||||||||
| Corporate | (4,771 | ) | 153 | 1 | 423 | 405 | (3,789 | ) | |||||||||||
| $ | 10,476 | $ | 7,666 | $ | 684 | $ | 423 | $ | 405 | $ | 19,654 | ||||||||
Cautionary Note Regarding Forward-looking Statements
This press release contains statements by Full House and our officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “expect,” “future,” “should,” “will” and similar references to future periods. Some forward-looking statements in this press release include those regarding our expected construction budget, estimated commencement and completion dates, expected amenities, and our expected operational performance for Chamonix; our expected construction budget, estimated commencement and completion dates, expected amenities, expected acreage and our expected operational performance for American Place, including The Temporary; our expectations regarding our ability to receive regulatory approval for American Place and The Temporary; and our expectations regarding our ability to replace any terminated sports wagering contracts in Colorado and Indiana and our ability to enter into a new sports wagering contract in Illinois, including the expected revenues and expenses and the expected timing for such contracts. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Full House. Such risks include, without limitation, our ability to repay our substantial indebtedness; the potential for additional adverse impacts from the COVID-19 pandemic, including the emergence of variants, on our business, construction projects, indebtedness, financial condition and operating results; potential actions by government officials at the federal, state or local level in connection with the COVID-19 pandemic, including, without limitation, additional shutdowns, travel restrictions, social distancing measures or shelter-in-place orders; our ability to effectively manage and control expenses as a result of the pandemic; our ability to complete Chamonix, American Place, and The Temporary on-time and on-budget; the successful closing of our purchase of additional land in Waukegan, including approval from the Illinois Gaming Board; various approvals that are required to lease the primary American Place site from the City of Waukegan, including approvals from the Illinois Gaming Board; the successful entry into replacement sports wagering contracts in Colorado and Indiana and a new sports wagering contract in Illinois; changes in guest visitation or spending patterns due to COVID-19 or other health or other concerns; a decrease in overall demand as other competing entertainment venues continue to re-open; construction risks, disputes and cost overruns; dependence on existing management; competition; uncertainties over the development and success of our expansion projects; the financial performance of our finished projects and renovations; effectiveness of expense and operating efficiencies; inflation and its potential impacts on labor costs and the prices of food, construction, and other materials; the effects of potential disruptions in the supply chains for goods, such as food, lumber, and other materials; general macroeconomic conditions; and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect our financial condition and results of operations is included in the reports Full House files with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year and our other periodic reports filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or revise our forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. The Company is currently constructing Chamonix Casino Hotel, a new luxury hotel and casino in Cripple Creek, Colorado. In December 2021, the Company was chosen by the Illinois Gaming Board to develop American Place, a new gaming and entertainment destination to be built in Waukegan, Illinois, subject to final regulatory approvals. For further information, please visit www.fullhouseresorts.com.
Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
Nasdaq:FLL
Chamonix, Colorado’s Newest and Most Luxurious Casino Hotel, Opens at Noon on Wednesday, December 27, 2023
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.
“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
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.”
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
– 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.
“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
- 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.
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 | ||||||||
__________
| (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)
| 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.
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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