Full House Resorts, Inc. (Nasdaq: FLL) today announced results for
the first quarter ended March 31, 2024.
On a consolidated basis, revenues in the first quarter of 2024
were $69.9 million, a 39.6% increase from $50.1 million
in the prior-year period. These results reflect the continued
ramp-up of operations at American Place, which opened in
mid-February 2023, and the phased opening of Chamonix Casino
Hotel, beginning in late-December 2023. Net loss for the first
quarter of 2024 was $11.3 million, or $(0.33) per diluted
common share, which includes $1.7 million of preopening costs,
as well as depreciation and amortization charges related to our new
American Place and Chamonix facilities of $5.5 million and
$3.7 million, respectively. In the prior-year period, net loss
was $11.4 million, or $(0.33) per diluted common share,
reflecting $10.5 million of preopening and development costs.
Adjusted EBITDA(a) rose 22.6% in the first quarter of
2024 to $12.4 million from $10.1 million in the
prior-year period, reflecting strong growth from American Place,
partially offset by the adverse effects of heavy snowfall in
several of our markets.
“We had a strong quarter of growth, led by American Place,” said
Daniel R. Lee, President and Chief Executive Officer of
Full House Resorts. “Typical of most new casino openings,
American Place has continued to improve its operations since its
opening just over a year ago. During the first quarter, quarterly
revenues at American Place rose to their highest yet – $25.8
million. Similarly, Adjusted Property EBITDA rose to $7.4 million.
As reported by the Illinois Gaming Board, monthly revenues at
American Place reached a new record in December 2023, only to then
exceed that record in February 2024 and again in March 2024. March
was the first month with full year-over-year comparisons, and
gaming revenues in that month rose 34% compared to March 2023. The
strong first quarter results were assisted by the opening of our
high-end restaurant, North Shore Steaks & Seafood, which opened
on February 14, 2024. We look forward to continued growth
at American Place as its database continues to grow and operations
continue to season.
“We believe that American Place provides a reasonable case study
for how Chamonix should perform in the nearer-term,” continued Mr.
Lee, “modestly at first, with meaningful improvement in revenues
and profitability as we progress through years one and two. Similar
to American Place, we elected to open Chamonix in phases, beginning
with Chamonix’s casino, meeting space, and approximately one-third
of its guestrooms in late-December. The remainder of Chamonix’s 300
guestrooms came online gradually during the first quarter. Our
high-end steakhouse, 980 Prime by Barry Dakake, began welcoming its
first guests on April 19; our pool and spa should begin operations
before Memorial Day weekend. We believe Chamonix is far superior to
the other casinos in Cripple Creek, and its guestrooms and
amenities rival those of Colorado destinations such as Aspen and
Vail. Driven by the new casino, revenues from our Colorado
operations have more than doubled amounts seen in 2023, but we
expect significantly more growth in the future. As Chamonix’s full
breadth of amenities come online, operations continue to season,
and its customer database expands, revenue and profitability should
follow. The early seeds for Chamonix’s success are there, which
give us increased confidence in the longer-term success of our
Colorado investment.”
First Quarter Highlights
- Midwest &
South. This segment includes Silver Slipper Casino and
Hotel, Rising Star Casino Resort, and American Place. Revenues for
the segment were $54.6 million in the first quarter of 2024, a
33.9% increase from $40.8 million in the prior-year period.
Adjusted Segment EBITDA rose to $12.7 million, an 18.7% increase
from $10.7 million in the prior-year period. These results
reflect the February 17, 2023 opening of American Place,
our casino located in Waukegan, Illinois. In the first quarter of
2024, American Place generated $25.8 million of revenue and
$7.4 million of Adjusted Property EBITDA, or increases of
147.7% and 106.6%, respectively, compared to the first quarter of
2023. Additionally, results include Rising Star’s sale of
“free play,” which resulted in $2.1 million of revenue and income
in the first quarters of both 2023 and 2024.
- West. This segment includes Grand Lodge Casino
(located within the Hyatt Regency Lake Tahoe resort in Incline
Village), Stockman’s Casino, Bronco Billy’s Casino, and Chamonix
Casino Hotel, which began its phased opening on
December 27, 2023. Bronco Billy’s and Chamonix are two
integrated and adjoining casinos, and are operated by our
management team in Colorado as a single entity. Revenues for the
segment rose 60.4% to $13.0 million in the first quarter of 2024,
versus $8.1 million in the prior-year period. Adjusted Segment
EBITDA of $(0.1) million in the first quarter of 2024 compares
to $0.1 million in the prior-year period. Current-period results
reflect the phased opening of Chamonix Casino Hotel, which includes
elevated expenses that are expected to normalize in future periods,
such as the training of new employees and additional marketing
costs expected to benefit future operations. Results in the current
period also reflect significant snowfall over several weekends,
when guest traffic at our casinos is typically strongest, and the
loss of electrical power to the entire city of Cripple Creek for
three days.
- Contracted Sports Wagering. This segment
consists of our on-site and online sports wagering “skins” (akin to
websites) in Colorado, Indiana, and Illinois. Revenues and Adjusted
Segment EBITDA in the first quarter of 2024 were $2.3 million
and $1.9 million, respectively. These results reflect the
contractual launch of our permitted Illinois sports skin in
August 2023, as well as a provision for credit losses on
sports wagering receivables of $0.3 million, which adversely
affected Adjusted Segment EBITDA. For the first quarter of 2023,
both revenues and Adjusted Segment EBITDA were $1.2 million.
Liquidity and Capital ResourcesAs of
March 31, 2024, we had $46.3 million in cash and
cash equivalents, including $20.6 million of cash reserved
under our bond indentures to complete the construction of Chamonix.
Our debt consisted primarily of $450.0 million in outstanding
senior secured notes due 2028, which became callable at specified
premiums in February 2024, and $27.0 million outstanding under
our revolving credit facility.
Conference Call InformationWe will host a
conference call for investors today, May 8, 2024, at 4:30 p.m. ET
(1:30 p.m. PT) to discuss our 2024 first 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 May 22, 2024. To access the
replay, please visit www.fullhouseresorts.com. Investors can also
access the replay by dialing (412) 317-6671 and using the passcode
13746178.
(a) Reconciliation of Non-GAAP Financial
MeasuresOur presentation of non-GAAP Measures may be
different from the presentation used by other companies, and
therefore, comparability may be limited. While excluded from
certain non-GAAP Measures, depreciation and amortization expense,
interest expense, income taxes and other items have been and will
be incurred. Each of these items should also be considered in the
overall evaluation of our results. Additionally, our non-GAAP
Measures do not consider capital expenditures and other investing
activities and should not be considered as a measure of our
liquidity. We compensate for these limitations by providing the
relevant disclosure of our depreciation and amortization, interest
and income taxes, and other items both in our reconciliations to
the historical GAAP financial measures and in our condensed
consolidated financial statements, all of which should be
considered when evaluating our performance.
Our non-GAAP Measures are to be used in addition to, and in
conjunction with, results presented in accordance with GAAP. These
non-GAAP Measures should not be considered as an alternative to net
income, operating income, or any other operating performance
measure prescribed by GAAP, nor should these measures be relied
upon to the exclusion of GAAP financial measures. These non-GAAP
Measures reflect additional ways of viewing our operations that we
believe, when viewed with our GAAP results and the reconciliations
to the corresponding historical GAAP financial measures, provide a
more complete understanding of factors and trends affecting our
business than could be obtained absent this disclosure. Management
strongly encourages investors to review our financial information
in its entirety and not to rely on a single financial measure.
Adjusted Segment EBITDA. We utilize Adjusted Segment EBITDA as
the measure of segment profitability in assessing performance and
allocating resources at the reportable segment level. Adjusted
Segment EBITDA is defined as earnings before interest and other
non-operating income (expense), taxes, depreciation and
amortization, preopening expenses, certain impairment charges,
asset write-offs, recoveries, gain (loss) from asset disposals,
project development and acquisition costs, non-cash share-based
compensation expense, and corporate-related costs and expenses that
are not allocated to each segment.
Same-store Adjusted Segment EBITDA. Same-store Adjusted Segment
EBITDA is Adjusted Segment EBITDA further adjusted to exclude the
Adjusted Property EBITDA of properties that have not been in
operation for a full year. Adjusted Property EBITDA is defined as
earnings before interest and other non-operating income (expense),
taxes, depreciation and amortization, preopening expenses, certain
impairment charges, asset write-offs, recoveries, gain (loss) from
asset disposals, project development and acquisition costs,
non-cash share-based compensation expense, and corporate-related
costs and expenses that are not allocated to each property.
Adjusted EBITDA. We also utilize Adjusted EBITDA, which is
defined as Adjusted Segment EBITDA, net of corporate-related costs
and expenses. Although Adjusted EBITDA is not a measure of
performance or liquidity calculated in accordance with GAAP, we
believe this non-GAAP financial measure provides meaningful
supplemental information regarding our performance and liquidity.
We utilize this metric or measure internally to focus management on
year-over-year changes in core operating performance, which we
consider our ordinary, ongoing and customary operations, and which
we believe is useful information to investors. Accordingly,
management excludes certain items when analyzing core operating
performance, such as the items mentioned above, that management
believes are not reflective of ordinary, ongoing and customary
operations.
Full House Resorts, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations (Unaudited)(In thousands, except per
share data)
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
|
2023 |
|
Revenues |
|
|
|
|
|
Casino |
$ |
51,673 |
|
|
$ |
35,987 |
|
Food and beverage |
|
9,769 |
|
|
|
7,660 |
|
Hotel |
|
2,852 |
|
|
|
2,144 |
|
Other operations, including contracted sports wagering |
|
5,630 |
|
|
|
4,315 |
|
|
|
69,924 |
|
|
|
50,106 |
|
Operating costs and
expenses |
|
|
|
|
|
Casino |
|
20,575 |
|
|
|
13,344 |
|
Food and beverage |
|
9,760 |
|
|
|
7,455 |
|
Hotel |
|
2,163 |
|
|
|
1,219 |
|
Other operations |
|
791 |
|
|
|
482 |
|
Selling, general and administrative |
|
24,935 |
|
|
|
18,229 |
|
Project development costs |
|
— |
|
|
|
7 |
|
Preopening costs |
|
1,663 |
|
|
|
10,497 |
|
Depreciation and amortization |
|
10,625 |
|
|
|
5,859 |
|
Loss on disposal of assets |
|
18 |
|
|
|
— |
|
|
|
70,530 |
|
|
|
57,092 |
|
Operating
loss |
|
(606 |
) |
|
|
(6,986 |
) |
Other (expense)
income |
|
|
|
|
|
Interest expense, net |
|
(10,250 |
) |
|
|
(4,819 |
) |
Gain on insurance settlement |
|
— |
|
|
|
355 |
|
|
|
(10,250 |
) |
|
|
(4,464 |
) |
Loss before income
taxes |
|
(10,856 |
) |
|
|
(11,450 |
) |
Income tax provision
(benefit) |
|
416 |
|
|
|
(35 |
) |
Net loss |
$ |
(11,272 |
) |
|
$ |
(11,415 |
) |
|
|
|
|
|
|
Basic loss per
share |
$ |
(0.33 |
) |
|
$ |
(0.33 |
) |
Diluted loss per
share |
$ |
(0.33 |
) |
|
$ |
(0.33 |
) |
|
|
|
|
|
|
Basic weighted average number of
common shares outstanding |
|
34,590 |
|
|
|
34,410 |
|
Diluted weighted average number
of common shares outstanding |
|
34,590 |
|
|
|
34,410 |
|
Full House Resorts, Inc. and
SubsidiariesSupplemental
InformationSegment Revenues, Adjusted Segment
EBITDA and Adjusted EBITDA(In thousands,
Unaudited)
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
|
2023 |
|
Revenues |
|
|
|
|
|
Midwest & South |
$ |
54,632 |
|
|
$ |
40,802 |
|
West |
|
13,032 |
|
|
|
8,124 |
|
Contracted Sports Wagering |
|
2,260 |
|
|
|
1,180 |
|
|
$ |
69,924 |
|
|
$ |
50,106 |
|
Adjusted Segment
EBITDA(1) and
Adjusted EBITDA |
|
|
|
|
|
Midwest & South |
$ |
12,682 |
|
|
$ |
10,687 |
|
West |
|
(133 |
) |
|
|
56 |
|
Contracted Sports Wagering |
|
1,935 |
|
|
|
1,161 |
|
Adjusted Segment EBITDA |
|
14,484 |
|
|
|
11,904 |
|
Corporate |
|
(2,075 |
) |
|
|
(1,779 |
) |
Adjusted EBITDA |
$ |
12,409 |
|
|
$ |
10,125 |
|
__________
(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
SubsidiariesSupplemental
InformationSame-store Revenues and Adjusted
Segment EBITDA(In thousands,
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31, |
|
Increase / |
Reporting segments |
|
2024 |
|
2023 |
|
(Decrease) |
Midwest &
South |
|
|
|
|
|
|
|
|
|
Midwest & South same-store total revenues(1) |
|
$ |
28,824 |
|
$ |
30,382 |
|
(5.1 |
) |
% |
American Place |
|
|
25,808 |
|
|
10,420 |
|
147.7 |
|
% |
Midwest & South total
revenues |
|
$ |
54,632 |
|
$ |
40,802 |
|
33.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
Midwest & South same-store
Adjusted Segment EBITDA(1) |
|
$ |
5,301 |
|
$ |
7,114 |
|
(25.5 |
) |
% |
American Place |
|
|
7,381 |
|
|
3,573 |
|
106.6 |
|
% |
Midwest & South Adjusted
Segment EBITDA |
|
$ |
12,682 |
|
$ |
10,687 |
|
18.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
Contracted Sports
Wagering |
|
|
|
|
|
|
|
|
|
Contracted Sports Wagering
same-store total revenues(2) |
|
$ |
825 |
|
$ |
1,180 |
|
(30.1 |
) |
% |
Illinois |
|
|
1,435 |
|
|
— |
|
N.M. |
Contracted Sports Wagering
total revenues |
|
$ |
2,260 |
|
$ |
1,180 |
|
91.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
Contracted Sports Wagering
same-store Adjusted Segment EBITDA(2) |
|
$ |
546 |
|
$ |
1,161 |
|
(53.0 |
) |
% |
Illinois |
|
|
1,389 |
|
|
— |
|
N.M. |
Contracted Sports Wagering
Adjusted Segment EBITDA |
|
$ |
1,935 |
|
$ |
1,161 |
|
66.7 |
|
% |
__________N.M. Not meaningful.(1) Same-store operations exclude
results from American Place, which opened on February 17, 2023.(2)
Same-store operations exclude results from Illinois, which
contractually commenced on August 15, 2023.
Full House Resorts, Inc. and
SubsidiariesSupplemental
InformationReconciliation of Net Loss and
Operating Loss to Adjusted EBITDA(In thousands,
Unaudited)
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
|
2023 |
|
Net loss |
$ |
(11,272 |
) |
|
$ |
(11,415 |
) |
Income tax expense (benefit) |
|
416 |
|
|
|
(35 |
) |
Interest expense, net |
|
10,250 |
|
|
|
4,819 |
|
Gain on insurance settlement |
|
— |
|
|
|
(355 |
) |
Operating
loss |
|
(606 |
) |
|
|
(6,986 |
) |
Project development costs |
|
— |
|
|
|
7 |
|
Preopening costs |
|
1,663 |
|
|
|
10,497 |
|
Depreciation and amortization |
|
10,625 |
|
|
|
5,859 |
|
Loss on disposal of assets |
|
18 |
|
|
|
— |
|
Stock-based compensation |
|
709 |
|
|
|
748 |
|
Adjusted
EBITDA |
$ |
12,409 |
|
|
$ |
10,125 |
|
Full House Resorts, Inc. and
SubsidiariesSupplemental
InformationReconciliation of Operating Income
(Loss) to Adjusted Segment EBITDA and Adjusted
EBITDA(In thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment |
|
Operating |
|
Depreciation |
|
Loss on |
|
|
|
Stock- |
|
EBITDA and |
|
Income |
|
and |
|
Disposal |
|
Preopening |
|
Based |
|
Adjusted |
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Reporting
segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midwest & South |
$ |
5,809 |
|
|
$ |
6,736 |
|
$ |
18 |
|
$ |
119 |
|
$ |
— |
|
$ |
12,682 |
|
West |
|
(5,536 |
) |
|
|
3,859 |
|
|
— |
|
|
1,544 |
|
|
— |
|
|
(133 |
) |
Contracted Sports Wagering |
|
1,935 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,935 |
|
|
|
2,208 |
|
|
|
10,595 |
|
|
18 |
|
|
1,663 |
|
|
— |
|
|
14,484 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
(2,814 |
) |
|
|
30 |
|
|
— |
|
|
— |
|
|
709 |
|
|
(2,075 |
) |
|
$ |
(606 |
) |
|
$ |
10,625 |
|
$ |
18 |
|
$ |
1,663 |
|
$ |
709 |
|
$ |
12,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment |
|
Operating |
|
Depreciation |
|
Project |
|
|
|
Stock- |
|
EBITDA and |
|
Income |
|
and |
|
Development |
|
Preopening |
|
Based |
|
Adjusted |
|
(Loss) |
|
Amortization |
|
Costs |
|
Costs |
|
Compensation |
|
EBITDA |
Reporting
segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midwest & South |
$ |
(4,666 |
) |
|
$ |
5,256 |
|
$ |
— |
|
$ |
10,097 |
|
$ |
— |
|
$ |
10,687 |
|
West |
|
(916 |
) |
|
|
572 |
|
|
— |
|
|
400 |
|
|
— |
|
|
56 |
|
Contracted Sports Wagering |
|
1,161 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,161 |
|
|
|
(4,421 |
) |
|
|
5,828 |
|
|
— |
|
|
10,497 |
|
|
— |
|
|
11,904 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
(2,565 |
) |
|
|
31 |
|
|
7 |
|
|
— |
|
|
748 |
|
|
(1,779 |
) |
|
$ |
(6,986 |
) |
|
$ |
5,859 |
|
$ |
7 |
|
$ |
10,497 |
|
$ |
748 |
|
$ |
10,125 |
|
Cautionary Note Regarding Forward-looking
StatementsThis 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; and
our expectations regarding the operation and performance of our
additional properties and segments. Forward-looking statements are
neither historical facts nor assurances of future performance.
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Such risks include, without limitation, our
ability to repay our substantial indebtedness; our ability to
finance the construction of the permanent American Place facility;
inflation and its potential impacts on labor costs and the price of
food, construction, and other materials; the effects of potential
disruptions in the supply chains for goods, such as food, lumber,
and other materials; general macroeconomic conditions; our ability
to effectively manage and control expenses; our ability to complete
the amenities at Chamonix; our ability to complete construction at
American Place, on-time and on-budget; legal or regulatory
restrictions, delays, or challenges for our construction projects,
including American Place; construction risks, disputes and
cost overruns; dependence on existing management; competition;
uncertainties over the development and success of our expansion
projects; the financial performance of our finished projects and
renovations; effectiveness of expense and operating efficiencies;
cyber events and their impacts to our operations; and regulatory
and business conditions in the gaming industry (including the
possible authorization or expansion of gaming in the states we
operate or nearby states). Additional information concerning
potential factors that could affect our financial condition and
results of operations is included in the reports we file with the
Securities and Exchange Commission, including, but not limited to,
Part I, Item 1A. Risk Factors and Part II,
Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations of our Annual Report on Form
10-K for the most recently ended fiscal year and our other periodic
reports filed with the Securities and Exchange Commission. We are
under no obligation to (and expressly disclaim any such obligation
to) update or revise our forward-looking statements as a result of
new information, future events or otherwise. Actual results may
differ materially from those indicated in the forward-looking
statements. Therefore, you should not rely on any of these
forward-looking statements.
About Full House Resorts, Inc.Full House
Resorts owns, leases, develops and operates gaming facilities
throughout the country. Our properties include American Place
in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock
County, Mississippi; Chamonix Casino Hotel and Bronco Billy’s
Casino in Cripple Creek, Colorado; Rising Star Casino Resort in
Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand
Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort,
Spa and Casino in Incline Village, Nevada. For further information,
please visit www.fullhouseresorts.com.
Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
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