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Full House Resorts Announces Strong Third Quarter Results
Источник: Nasdaq GlobeNewswire / 08 ноя 2023 16:05:01 America/New_York
- Revenues Increased 72.8% to $71.5 Million;
Net Income Improved to $4.6 Million;
Adjusted EBITDA Rose 165.9% to $20.6 Million- Operations at The Temporary by American Place Continue to Ramp;
Illinois Sportsbook Operations are Now Live- Opening of Chamonix Casino Hotel in Colorado Slated for December 26, 2023
LAS VEGAS, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the third quarter ended September 30, 2023, including updates regarding its growth pipeline.
“As envisioned, results at The Temporary by American Place continued to improve during the third quarter,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Our table games business at The Temporary was strong initially, and continued to build as we hired more dealers and increased the number of available table games. Our slots business also continues to ramp up, aided by our guest database that continues to grow meaningfully in size with every passing week. As a result, both revenues and Adjusted Property EBITDA at The Temporary increased from the second quarter of this year, reaching $23.9 million and $6.8 million, respectively. The Temporary’s available amenities also continue to expand, with the on-site sportsbook welcoming its first bets approximately one month ago. We are close to unveiling the last remaining amenity at The Temporary – North Shore Steaks and Seafood, the property’s high-end dining option – which we expect to open at the end of the fourth quarter.
“Meanwhile, at our Chamonix project in Cripple Creek, Colorado, significant construction continues in advance of the destination’s opening on December 26. Workers are currently installing furniture throughout the hotel. Within the casino, we are about to begin installation of slot bases, followed by the final placement of slot machines throughout November and early December. In our convention space, we recently installed chandeliers in the main ballroom and are preparing to install furniture. We are excited to welcome guests to Chamonix – designed to be the best casino in the state of Colorado – in less than two months.”
On a consolidated basis, revenues in the third quarter of 2023 were $71.5 million, a 72.8% increase from $41.4 million in the prior-year period. These results reflect the February 2023 opening of The Temporary, as well as $5.8 million of accelerated revenue for two sports wagering agreements that ceased operations during the third quarter of 2023. Net income for the third quarter of 2023 was $4.6 million, or $0.13 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 $3.6 million, or $(0.10) per diluted common share, reflecting $2.4 million of preopening and development costs. Adjusted EBITDA(a) was $20.6 million in the 2023 third quarter, rising 165.9% from $7.8 million in the prior-year period, reflecting the items mentioned above.
For project renderings and live construction webcams of our Chamonix project, please visit www.ChamonixCO.com.
Third 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 $52.6 million in the third quarter of 2023, a 77.4% increase from $29.6 million in the prior-year period. Adjusted Segment EBITDA rose to $11.8 million, a 110.6% increase from $5.6 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 third quarter of 2023, The Temporary generated $23.9 million of revenue and $6.8 million of Adjusted Property EBITDA. We expect The Temporary’s results to continue to increase in the longer-run, as the property’s database continues to expand and marketing, labor and other early costs normalize.
Excluding results from The Temporary, same-store revenues declined to $28.7 million from $29.6 million. Same-store Adjusted Segment EBITDA declined to $5.0 million from $5.6 million, reflecting increases in insurance costs at Silver Slipper, as well as general increases in labor expenses. - 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 improved to $11.1 million in the third quarter of 2023, versus $10.7 million in the prior-year period. Adjusted Segment EBITDA was $2.3 million for both periods. 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. Upon the opening of Chamonix, Bronco Billy’s is expected to benefit from its integration with Chamonix, including its new parking garage and approximately 300 on-site guestrooms.
- 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 were both $7.9 million in the third quarter of 2023, reflecting the contractual launch of our permitted Illinois sports skin in mid-August 2023, which contributed $0.7 million to both revenues and Adjusted Segment EBITDA in the third quarter. These results also include $5.8 million of accelerated revenues related to two sports wagering agreements that ceased operations during the third quarter of 2023.
The Company is currently permitted to operate three sports skins in Colorado, three in Indiana, and one in Illinois. Of such permitted skins, two sports skins are currently live in Colorado, one in Indiana, and one in Illinois. Under our agreements with various third parties to operate such skins, we receive a percentage of revenues, as defined in the contracts, subject to an annualized minimum amount that currently totals $8 million. We continue to evaluate whether to operate our remaining idle skins ourselves or to have other third parties operate them. However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.
Liquidity and Capital Resources
As of September 30, 2023, we had $84.0 million in cash and cash equivalents, including $58.0 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, November 8, 2023, at 4:30 p.m. ET (1:30 p.m. PT) to discuss our 2023 third quarter results. Investors can access the live audio webcast from our website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470.A replay of the conference call will be available shortly after the conclusion of the call through November 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 13742216.
(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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Casino $ 50,240 $ 29,721 $ 131,586 $ 88,293 Food and beverage 9,086 6,811 25,419 20,255 Hotel 2,560 2,490 7,052 7,076 Other operations, including contracted sports wagering 9,657 2,371 16,974 11,575 71,543 41,393 181,031 127,199 Operating costs and expenses Casino 19,437 10,292 49,771 30,273 Food and beverage 8,330 6,814 24,815 20,134 Hotel 1,164 1,256 3,611 3,524 Other operations 691 587 1,878 1,594 Selling, general and administrative 22,017 15,218 61,823 44,795 Project development costs, net 21 (149 ) 45 33 Preopening costs 1,051 2,594 12,634 4,914 Depreciation and amortization 8,468 2,386 22,482 6,012 Loss on disposal of assets 7 — 7 3 61,186 38,998 177,066 111,282 Operating income 10,357 2,395 3,965 15,917 Other (expense) income Interest expense, net (5,867 ) (5,838 ) (16,319 ) (19,225 ) Loss on modification of debt — (105 ) — (4,530 ) Gain on settlements 29 — 384 — (5,838 ) (5,943 ) (15,935 ) (23,755 ) Income (loss) before income taxes 4,519 (3,548 ) (11,970 ) (7,838 ) Income tax (benefit) provision (74 ) 29 452 (16 ) Net income (loss) $ 4,593 $ (3,577 ) $ (12,422 ) $ (7,822 ) Basic earnings (loss) per share $ 0.13 $ (0.10 ) $ (0.36 ) $ (0.23 ) Diluted earnings (loss) per share $ 0.13 $ (0.10 ) $ (0.36 ) $ (0.23 ) Basic weighted average number of common shares outstanding 34,583 34,390 34,497 34,339 Diluted weighted average number of common shares outstanding 36,673 34,479 34,497 34,399
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Midwest & South $ 52,553 $ 29,620 $ 143,267 $ 92,501 West 11,085 10,675 27,297 28,600 Contracted Sports Wagering 7,905 1,098 10,467 6,098 $ 71,543 $ 41,393 $ 181,031 $ 127,199 Adjusted Segment EBITDA(1) and Adjusted EBITDA Midwest & South $ 11,750 $ 5,578 $ 31,830 $ 21,816 West 2,308 2,316 2,538 4,508 Contracted Sports Wagering 7,852 1,083 10,373 6,047 Adjusted Segment EBITDA 21,910 8,977 44,741 32,371 Corporate (1,280 ) (1,219 ) (3,479 ) (4,130 ) Adjusted EBITDA $ 20,630 $ 7,758 $ 41,262 $ 28,241 __________
(1) The Company utilizes Adjusted Segment EBITDA as the measure of segment operating profitability in assessing performance and allocating resources at the reportable segment level.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Same-store Revenues and Adjusted Segment EBITDA
(In thousands, Unaudited)Three Months Ended Nine Months Ended September 30, Increase / September 30, Increase / Reporting segments 2023 2022 (Decrease) 2023 2022 (Decrease) Midwest & South Midwest & South
same-store total revenues(1)$ 28,663 $ 29,620 (3.2 ) % $ 88,629 $ 92,501 (4.2 ) % The Temporary by American Place 23,890 — N.M. 54,638 — N.M. Midwest & South total revenues $ 52,553 $ 29,620 77.4 % $ 143,267 $ 92,501 54.9 % Midwest & South same-store
Adjusted Segment EBITDA(1)$ 4,966 $ 5,578 (11.0 ) % $ 17,341 $ 21,816 (20.5 ) % The Temporary by American Place 6,784 — N.M. 14,489 — N.M. Midwest & South
Adjusted Segment EBITDA$ 11,750 $ 5,578 110.6 % $ 31,830 $ 21,816 45.9 % Contracted Sports Wagering Contracted Sports Wagering
same-store total revenues(2)$ 1,370 $ 1,098 24.8 % $ 3,932 $ 4,457 (11.8 ) % Accelerated revenues due to
contract terminations(3)5,794 — N.M. 5,794 1,641 253.1 % Illinois 741 — N.M. 741 — N.M. Contracted Sports Wagering
total revenues$ 7,905 $ 1,098 619.9 % $ 10,467 $ 6,098 71.6 % Contracted Sports Wagering same-store
Adjusted Segment EBITDA(2)$ 1,336 $ 1,083 23.4 % $ 3,857 $ 4,406 (12.5 ) % Accelerated revenues due to
contract terminations(3)5,794 — N.M. 5,794 1,641 253.1 % Illinois 722 — N.M. 722 — N.M. Contracted Sports Wagering
Adjusted Segment EBITDA$ 7,852 $ 1,083 625.0 % $ 10,373 $ 6,047 71.5 % __________
N.M. Not meaningful.
(1) Same-store operations exclude results from The Temporary by American Place, which opened on February 17, 2023.
(2) Same-store operations exclude results from Illinois, which contractually commenced on August 15, 2023. For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations.
(3) For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. Such adjustments reflect two sports skins that ceased operations in the third quarter of 2023, and two sports skins that ceased operations in the second quarter of 2022.
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Income (Loss) and Operating Income to Adjusted EBITDA
(In thousands, Unaudited)Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ 4,593 $ (3,577 ) $ (12,422 ) $ (7,822 ) Income tax (benefit) provision (74 ) 29 452 (16 ) Interest expense, net 5,867 5,838 16,319 19,225 Loss on modification of debt — 105 — 4,530 Gain on settlements (29 ) — (384 ) — Operating income 10,357 2,395 3,965 15,917 Project development costs, net 21 (149 ) 45 33 Preopening costs 1,051 2,594 12,634 4,914 Depreciation and amortization 8,468 2,386 22,482 6,012 Loss on disposal of assets 7 — 7 3 Stock-based compensation 726 532 2,129 1,362 Adjusted EBITDA $ 20,630 $ 7,758 $ 41,262 $ 28,241
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)Three Months Ended September 30, 2023 Adjusted Segment Operating Depreciation Loss on Project Stock- EBITDA and Income and Disposal Development Preopening Based Adjusted (Loss) Amortization of Assets Costs Costs Compensation EBITDA Reporting segments Midwest & South $ 4,156 $ 7,828 $ 7 $ — $ (241 ) $ — $ 11,750 West 406 610 — — 1,292 — 2,308 Contracted Sports Wagering 7,852 — — — — — 7,852 12,414 8,438 7 — 1,051 — 21,910 Other operations Corporate (2,057 ) 30 — 21 — 726 (1,280 ) $ 10,357 $ 8,468 $ 7 $ 21 $ 1,051 $ 726 $ 20,630 Three Months Ended September 30, 2022 Adjusted Segment Operating Depreciation Project Stock- EBITDA and Income and Development Preopening Based Adjusted (Loss) Amortization Costs Costs Compensation EBITDA Reporting segments Midwest & South $ 2,062 $ 1,279 $ — $ 2,237 $ — $ 5,578 West 1,138 821 — 357 — 2,316 Contracted Sports Wagering 1,083 — — — — 1,083 4,283 2,100 — 2,594 — 8,977 Other operations Corporate (1,888 ) 286 (149 ) — 532 (1,219 ) $ 2,395 $ 2,386 $ (149 ) $ 2,594 $ 532 $ 7,758
Full House Resorts, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)Nine Months Ended September 30, 2023 Adjusted Segment Operating Depreciation Loss on Project Stock- EBITDA and Income and Disposal Development Preopening Based Adjusted (Loss) Amortization of Assets Costs Costs Compensation EBITDA Reporting segments Midwest & South $ 1,322 $ 20,640 $ 7 $ — $ 9,861 $ — $ 31,830 West (1,985 ) 1,750 — — 2,773 — 2,538 Contracted Sports Wagering 10,373 — — — — — 10,373 9,710 22,390 7 — 12,634 — 44,741 Other operations Corporate (5,745 ) 92 — 45 — 2,129 (3,479 ) $ 3,965 $ 22,482 $ 7 $ 45 $ 12,634 $ 2,129 $ 41,262 Nine Months Ended September 30, 2022 Loss / Adjusted (gain) Segment Operating Depreciation on Project Stock- EBITDA and Income and Disposal Development Preopening Based Adjusted (Loss) Amortization of Assets Costs Costs Compensation EBITDA Reporting segments Midwest & South $ 14,088 $ 3,831 $ 8 $ — $ 3,889 $ — $ 21,816 West 1,655 1,833 (5 ) — 1,025 — 4,508 Contracted Sports
Wagering6,047 — — — — — 6,047 21,790 5,664 3 — 4,914 — 32,371 Other operations Corporate (5,873 ) 348 — 33 — 1,362 (4,130 ) $ 15,917 $ 6,012 $ 3 $ 33 $ 4,914 $ 1,362 $ 28,241 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 operation and usage of our available idle sports skins. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks include, without limitation, our ability to repay our substantial indebtedness; 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 Chamonix and 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 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:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
- 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 $52.6 million in the third quarter of 2023, a 77.4% increase from $29.6 million in the prior-year period. Adjusted Segment EBITDA rose to $11.8 million, a 110.6% increase from $5.6 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 third quarter of 2023, The Temporary generated $23.9 million of revenue and $6.8 million of Adjusted Property EBITDA. We expect The Temporary’s results to continue to increase in the longer-run, as the property’s database continues to expand and marketing, labor and other early costs normalize.