Full House Resorts, Inc. (Nasdaq: FLL) today announced results for
the third quarter ended September 30, 2020.
On a consolidated basis, revenues in the third quarter of 2020
were $42.0 million, versus $44.3 million in the prior-year period,
reflecting operating limitations during the COVID-19
pandemic. Net income for the third quarter of 2020 rose to
$7.7 million, or $0.28 per diluted common share, from $0.9 million,
or $0.03 per diluted common share, in the prior-year period.
Net income in both periods was affected by the accounting for the
fair market value of outstanding warrants. Adjusted EBITDA(a)
in the 2020 third quarter was $12.5 million, an increase of 115.6%
from $5.8 million in the third quarter of 2019. This strong growth
primarily reflects new marketing programs and staffing improvements
at the Company’s properties. Results for the third quarter of 2020
also include $0.7 million of revenue related to a full quarter of
operations for two of the Company’s six permitted sports wagering
websites.
“We had a phenomenal third quarter,” said Daniel R. Lee,
President and Chief Executive Officer of Full House Resorts. “As we
noted last quarter, we chose to reopen our properties
conservatively in terms of amenities and hours of operation, given
the uncertainty of the customer response to reopening in the midst
of a pandemic. We are pleased that customers have generally
responded positively, recognizing that it is possible to operate a
casino with appropriate social distancing and health safety
measures. We think our positive results also reflect that people
generally drive rather than fly to our casinos and that we do not
rely on potentially pandemic-unfriendly amenities such as shows,
nightclubs or convention facilities. Finally, we installed new slot
management systems at two of our more important properties in late
2019. We used the pandemic-closure period to familiarize ourselves
with those systems, analyze our customer data from late 2019 and
early 2020, and reinvent our key marketing strategies, including
our loyalty programs. All of these factors helped our operating
income more than triple, and our Adjusted EBITDA more than double,
over the prior-year quarter. We think that much of this improvement
is sustainable. All of our properties still have operating
restrictions in order to maintain social distancing, including the
number of slot machines that we are permitted to operate, the
number of people that we can accommodate at each table game, and
restrictions on the types of food service we can offer, as well as
the seating capacity of our bars and restaurants. In Colorado, we
are still unable to offer any table games. Even with these
restrictions, several of our properties, including our Colorado
property, had their best months in history during the quarter.”
Continued Mr. Lee, “We also had our first full quarter of
operations for one of our three permitted ‘skins’ in Colorado and
our third full quarter of operations for one of our three permitted
‘skins’ in Indiana. These two sports wagering websites represent a
minimum of $2.5 million per year of annual contractual
revenue. Our six agreements are with three different companies,
each permitted to operate under our licenses in Indiana and
Colorado for a minimum 10-year period. One of those companies is
now operating in Indiana, while a different company is operating in
Colorado. We expect each to start operations in the other state
shortly. The third company recently commenced its first mobile
gaming operations in another state and intends to expand into
Indiana and Colorado within the next few months. When all six
‘skins’ are in operation, the Company should receive a contractual
minimum of $7 million per year of sports gaming revenues.
Since the Company incurs very little expense related to these
operations, almost all of such revenues should translate into
income.
“On Tuesday, Colorado voters approved several changes to the
state’s gaming laws. In particular, the state law now allows local
communities, namely Cripple Creek, Black Hawk and Central City, to
set betting maximums and approve new table games, such as baccarat.
Those changes will ultimately benefit the entire state, but most
significantly, the local communities. This change will allow the
state’s casinos, including Bronco Billy’s, to attract a wealthier
clientele and to offer a broader gaming experience. We continue to
evaluate a potential major expansion of Bronco Billy’s, which was
put on hold when we were required to close due to COVID-19.”
Concluded Mr. Lee, “Finally, we continue to be one of three
companies vying for a gaming license in Waukegan, Illinois. Last
week, the Illinois Gaming Board indicated that it expects to choose
its preferred developer in 2021, seemingly most likely in the
spring or summer. We believe our American Place proposal is the
most creative and dynamic of the proposals and should generate the
greatest amount of investment, tax revenues and jobs for Waukegan
and its surrounding communities. To augment our application, we
recently executed a commitment letter to fund American Place,
including both a temporary casino and the permanent facility. The
commitment letter is with a multi-billion-dollar investment
management firm that has experience with casino construction
projects. Under the commitment letter and if chosen by the Illinois
Gaming Board, Full House would invest $25 million in the
project as equity, will own no less than 60% of the project, and
will receive management fees for operating the casino and related
amenities. As noted, the Company currently has $34 million of
cash and equivalents. All of the project financing is anticipated
to be limited to the Waukegan project and would not be guaranteed
by Full House or its other subsidiaries. We look forward to the
opportunity to formally present our proposal to the Illinois Gaming
Board in the coming months.”
Third Quarter Highlights and Subsequent
Events
- At Silver Slipper Casino and Hotel in Mississippi, revenues
grew 10.5% in the third quarter of 2020 to $20.0 million. Revenues
increased despite restrictions on the number of available slot
machines and the seating capacity at each table game, in order to
accommodate proper “social distancing.” Adjusted Property EBITDA
rose 115.9% to $6.5 million in the 2020 third quarter, reflecting
focused efforts to manage marketing and labor expenses at the
property. Silver Slipper achieved these strong results despite a
very active hurricane season in 2020, which resulted in several
brief closures of the property, more so than occurred in the
prior-year period.
- At Rising Star Casino Resort in Indiana, revenues (excluding
contractual minimums related to the property’s sports revenue
agreements) declined for the third quarter of 2020 to $9.6 million
from $11.7 million. This reflected COVID-19 limitations on
operations and an increase in competition. A casino near Louisville
opened a large new casino in December 2019, replacing its original
casino boat. Additionally, in January 2020, racetrack casinos near
Indianapolis began offering live table games. Adjusted Property
EBITDA (excluding the sports revenue agreements) of $2.0 million in
the third quarter of 2020 compares to $0.2 million in the
prior-year period. These strong results reflect the positive impact
of a new slot marketing system installed in the fourth quarter of
2019, the launch of an improved loyalty program in June 2020, and
labor efficiencies from more appropriately matching the operating
hours of table games and food and beverage outlets to the demand
for such services.Including the contracted sports revenues, total
revenues and Adjusted Property EBITDA for the third quarter of 2020
were $10.0 million and $2.4 million, respectively, versus
$11.7 million and $0.2 million in the prior-year period, when the
sportsbook business was not yet in operation. Currently, one of our
three contracted sports wagering websites is operating in Indiana.
The remaining two sports wagering websites are expected to commence
operations in the coming months. When all three websites have
commenced operations in Indiana, our sports wagering revenue, based
on the contractual minimums, should total at least $3.5 million on
an annualized basis with few related expenses. Accordingly, we
expect that almost all of this amount will be reflected in Adjusted
Property EBITDA and operating income.
- At Bronco Billy’s Casino and Hotel in Colorado, revenues
(excluding contractual minimums related to the property’s sports
revenue agreements) declined for the third quarter of 2020 to
$7.6 million from $8.1 million. The decline was due to
state-mandated restrictions on operations in response to the
continuing pandemic, including the continued shutdown of all table
games at the property and a steep reduction in the number of slot
machines being operated. Adjusted Property EBITDA (excluding
contractual minimums related to the property’s sports revenue
agreements) nearly doubled to $3.1 million from
$1.6 million. The increase in Adjusted Property EBITDA was due
to improved analytics from Bronco Billy’s new slot marketing
system, allowing the property to market much more efficiently, as
well as labor controls. Additionally, Bronco Billy’s had a $424,000
benefit in the third quarter of 2020 from the elimination of point
redemption liabilities that accrued under the property’s prior
loyalty program.Bronco Billy’s also benefited from reduced
operations in the current quarter of the Christmas Casino, which
was a satellite casino that the property opened in November 2018.
The Christmas Casino helped to modestly increase the Company’s
overall revenues in Colorado in 2019, but the increase was
insufficient to offset the additional operating costs. The Company
completed the closure of the Christmas Casino in September 2020,
after the Colorado Limited Gaming Control Commission approved the
reabsorption of the Christmas Casino license back into Bronco
Billy’s main casino operations.Including the contracted sports
revenues, total revenues and Adjusted Property EBITDA for the third
quarter of 2020 were $7.9 million and $3.4 million,
respectively. In June 2020, one of the Company’s three permitted
sports wagering websites launched operations in Colorado. The
remaining two sports wagering websites are expected to commence
operations in the coming months. Similar to Indiana, when all three
of our contracted sports wagering websites have commenced
operations in Colorado, our sports wagering revenue, based on the
contractual minimums, should total at least $3.5 million on an
annualized basis with few related expenses. Accordingly, we expect
that almost all of this amount will be reflected in Adjusted
Property EBITDA and operating income. The Company also launched
on-site sports wagering at Bronco Billy’s in September 2020.
- The Northern Nevada segment consists of the Grand Lodge and
Stockman’s casinos and is historically the smallest of the
Company’s segments. Northern Nevada’s total revenues were $4.1
million and $6.3 million for the third quarters of 2020 and 2019,
respectively. Adjusted Property EBITDA was $1.0 million and $2.1
million, respectively.Grand Lodge Casino is located within the
Hyatt Regency Lake Tahoe luxury resort in Incline Village, Nevada.
Its customer base includes the local community, as well as visitors
to the Hyatt. Some of the hotel’s customers fly to the region,
while others attend meetings and conventions held at the Hyatt.
Meanwhile, Stockman’s Casino is in Fallon, Nevada, home to a large
Naval Air Station, where aircraft carrier pilots and crews visit
for training at the famed “Top Gun” school. The Navy has restricted
much of its personnel from leaving the base station. This segment
of the Company’s operations has been the most negatively affected
by the COVID-19 pandemic, as people are understandably hesitant to
fly or attend conventions, and the Navy is understandably
restricting the movement of its personnel to protect the health of
both its servicemembers and the host community.
- The Company continues to be one of three bidders for the
opportunity to build a new casino in Waukegan, Illinois, midway
between Chicago and Milwaukee. If chosen, the Company plans to
complete the development employing project financing. Accordingly,
the Company recently signed a commitment letter with a
multi-billion-dollar investment management firm that has experience
with casino construction projects. The commitment letter
anticipates fully funding the project, named “American Place.”
Under the terms of the commitment letter, the investment firm would
provide approximately $300 million of non-recourse,
development capital to construct American Place, as well as a
temporary casino while the permanent facility is under
construction. The Company would be required to invest
$25 million in the project as equity, will own no less than
60% of the project, and will receive management fees for operating
the casino and related amenities. The commitment letter is
conditioned upon the Company being awarded the Waukegan casino
license by the Illinois Gaming Board. The financing commitment is
also subject to, and contingent upon, the Illinois Gaming Board’s
review and the investment firm’s further due diligence review,
among other items. All of the project financing is anticipated to
be limited to the Waukegan project and would not be guaranteed by
Full House or its other subsidiaries.
- In March 2020, in its efforts to preserve liquidity in the face
of coronavirus-related shutdowns across the country, the Company
suspended construction of its new parking garage at Bronco Billy’s.
In July 2020, the Company opened a temporary surface parking lot in
such location. In November 2020, Colorado voters approved the
elimination of the $100 bet limit and additional table games, such
as baccarat. The Company believes that these changes will allow
Colorado’s casinos to attract wealthier customers. It continues to
evaluate the potential construction of a major expansion at Bronco
Billy’s.
- In May 2020, the Company’s Bronco Billy’s and Rising Star
subsidiaries received approximately $5.6 million of total loan
proceeds under the CARES Act. Such funds were principally used, in
accordance with the CARES Act, to rehire several hundred employees
at Rising Star and Bronco Billy’s in advance of, and subsequent to,
their reopenings in mid-June. These loans have a 1.0% interest rate
and a maturity date that was recently extended by legislation from
May 2022 to May 2025. Such loans may be forgiven, either in whole
or in part, depending on the amount of such proceeds that are used
for certain eligible expenses, including primarily the payroll and
health benefits of employees who would otherwise have been without
jobs or health benefits. The Company believes that it will fully
use such proceeds for eligible expenses in the allowed 24-week time
period. There is no certainty, however, that any or all of such
loans will be forgiven.
Liquidity and Capital
ResourcesAs of September 30, 2020, the
Company had $34.0 million in cash and equivalents,
$107.1 million in outstanding senior secured notes, and
$5.6 million in outstanding unsecured loans obtained under the
CARES Act. Similar to prior quarters and in response to the
pandemic-related shutdowns that lasted from March 2020 through
June 2020, the Company’s lenders have agreed to a debt
amendment that waives its leverage ratio covenant for the period
ending September 30, 2020.
Conference Call InformationThe
Company will host a conference call for investors today, November
5, 2020, at 4:30 p.m. ET (1:30 p.m. PT) to discuss its 2020 third
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 (877) 226-2890 or, for international callers,
(303) 223-0118.
A replay of the conference call will be available shortly after
the conclusion of the call through November 19, 2020. 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 21971273.
(a) Reconciliation of Non-GAAP Financial
MeasureThe Company utilizes Adjusted Property
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 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.
The Company also utilizes Adjusted EBITDA (a non-GAAP measure),
which is defined as Adjusted Property 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 version of Adjusted EBITDA (known as
Consolidated EBITDA, as defined in the indenture governing the
Company’s senior secured notes) is also used to determine
compliance with certain covenants.
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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
31,910 |
|
|
$ |
30,644 |
|
|
$ |
63,616 |
|
|
$ |
87,392 |
|
Food and beverage |
|
|
5,612 |
|
|
|
9,262 |
|
|
|
14,596 |
|
|
|
26,783 |
|
Hotel |
|
|
2,511 |
|
|
|
3,077 |
|
|
|
5,204 |
|
|
|
8,843 |
|
Other operations, including online/mobile sports operations |
|
|
1,923 |
|
|
|
1,276 |
|
|
|
3,904 |
|
|
|
3,398 |
|
Total revenues |
|
|
41,956 |
|
|
|
44,259 |
|
|
|
87,320 |
|
|
|
126,416 |
|
Operating costs
and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
|
10,125 |
|
|
|
12,188 |
|
|
|
23,886 |
|
|
|
35,565 |
|
Food and beverage |
|
|
5,234 |
|
|
|
10,154 |
|
|
|
14,453 |
|
|
|
28,972 |
|
Hotel |
|
|
1,113 |
|
|
|
2,522 |
|
|
|
2,663 |
|
|
|
7,321 |
|
Other operations |
|
|
564 |
|
|
|
1,189 |
|
|
|
1,441 |
|
|
|
3,030 |
|
Selling, general and administrative |
|
|
12,555 |
|
|
|
12,485 |
|
|
|
35,332 |
|
|
|
38,172 |
|
Project development costs |
|
|
108 |
|
|
|
228 |
|
|
|
423 |
|
|
|
503 |
|
Depreciation and amortization |
|
|
1,848 |
|
|
|
2,089 |
|
|
|
5,868 |
|
|
|
6,263 |
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
10 |
|
|
|
439 |
|
|
|
5 |
|
|
|
|
31,547 |
|
|
|
40,865 |
|
|
|
84,505 |
|
|
|
119,831 |
|
Operating
income |
|
|
10,409 |
|
|
|
3,394 |
|
|
|
2,815 |
|
|
|
6,585 |
|
Other (expense)
income, net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of capitalized interest |
|
|
(2,391 |
) |
|
|
(2,428 |
) |
|
|
(7,329 |
) |
|
|
(8,062 |
) |
Adjustment to fair value of warrants |
|
|
(403 |
) |
|
|
(262 |
) |
|
|
1,159 |
|
|
|
(161 |
) |
|
|
|
(2,794 |
) |
|
|
(2,690 |
) |
|
|
(6,170 |
) |
|
|
(8,223 |
) |
Income (loss)
before income taxes |
|
|
7,615 |
|
|
|
704 |
|
|
|
(3,355 |
) |
|
|
(1,638 |
) |
Income tax (benefit)
provision |
|
|
(93 |
) |
|
|
(234 |
) |
|
|
(2 |
) |
|
|
51 |
|
Net income
(loss) |
|
$ |
7,708 |
|
|
$ |
938 |
|
|
$ |
(3,353 |
) |
|
$ |
(1,689 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share |
|
$ |
0.28 |
|
|
$ |
0.03 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.06 |
) |
Diluted earnings
(loss) per share |
|
$ |
0.28 |
|
|
$ |
0.03 |
|
|
$ |
(0.17 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number
of common shares outstanding |
|
|
27,106 |
|
|
|
26,980 |
|
|
|
27,087 |
|
|
|
26,963 |
|
Diluted weighted average
number of common shares outstanding |
|
|
27,464 |
|
|
|
27,501 |
|
|
|
27,220 |
|
|
|
26,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full House Resorts,
Inc.Supplemental
InformationSegment Revenues and
Adjusted Property EBITDA(In
Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
19,966 |
|
|
$ |
18,066 |
|
|
$ |
44,181 |
|
|
$ |
56,238 |
|
Rising Star Casino Resort(1) |
|
|
9,967 |
|
|
|
11,735 |
|
|
|
20,225 |
|
|
|
34,202 |
|
Bronco Billy's Casino and Hotel(1) |
|
|
7,910 |
|
|
|
8,114 |
|
|
|
14,607 |
|
|
|
21,431 |
|
Northern Nevada Casinos |
|
|
4,113 |
|
|
|
6,344 |
|
|
|
8,307 |
|
|
|
14,545 |
|
|
|
$ |
41,956 |
|
|
$ |
44,259 |
|
|
$ |
87,320 |
|
|
$ |
126,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Property EBITDA(2) and Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
6,495 |
|
|
$ |
3,009 |
|
|
$ |
9,526 |
|
|
$ |
10,448 |
|
Rising Star Casino Resort(1) |
|
|
2,436 |
|
|
|
156 |
|
|
|
348 |
|
|
|
1,163 |
|
Bronco Billy's Casino and Hotel(1) |
|
|
3,393 |
|
|
|
1,582 |
|
|
|
2,798 |
|
|
|
3,074 |
|
Northern Nevada Casinos |
|
|
1,032 |
|
|
|
2,108 |
|
|
|
79 |
|
|
|
2,516 |
|
Adjusted
Property EBITDA |
|
|
13,356 |
|
|
|
6,855 |
|
|
|
12,751 |
|
|
|
17,201 |
|
Corporate |
|
|
(870 |
) |
|
|
(1,064 |
) |
|
|
(2,899 |
) |
|
|
(3,582 |
) |
Adjusted
EBITDA |
|
$ |
12,486 |
|
|
$ |
5,791 |
|
|
$ |
9,852 |
|
|
$ |
13,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amounts related to the property’s contracted sports
revenue in 2020.(2) The Company utilizes Adjusted Property EBITDA
as the measure of segment operating profit in assessing performance
and allocating resources at the reportable segment level.
Full House Resorts,
Inc.Supplemental
InformationReconciliation of Net
Income (Loss) and Operating Income (Loss) to Adjusted
EBITDA(In Thousands,
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income (loss) |
|
$ |
7,708 |
|
|
$ |
938 |
|
|
$ |
(3,353 |
) |
|
$ |
(1,689 |
) |
Income tax (benefit) provision |
|
|
(93 |
) |
|
|
(234 |
) |
|
|
(2 |
) |
|
|
51 |
|
Interest expense, net of amounts capitalized |
|
|
2,391 |
|
|
|
2,428 |
|
|
|
7,329 |
|
|
|
8,062 |
|
Adjustment to fair value of warrants |
|
|
403 |
|
|
|
262 |
|
|
|
(1,159 |
) |
|
|
161 |
|
Operating
income |
|
|
10,409 |
|
|
|
3,394 |
|
|
|
2,815 |
|
|
|
6,585 |
|
Project development costs |
|
|
108 |
|
|
|
228 |
|
|
|
423 |
|
|
|
503 |
|
Depreciation and amortization |
|
|
1,848 |
|
|
|
2,089 |
|
|
|
5,868 |
|
|
|
6,263 |
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
10 |
|
|
|
439 |
|
|
|
5 |
|
Stock-based compensation |
|
|
121 |
|
|
|
70 |
|
|
|
307 |
|
|
|
263 |
|
Adjusted
EBITDA |
|
$ |
12,486 |
|
|
$ |
5,791 |
|
|
$ |
9,852 |
|
|
$ |
13,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full House Resorts,
Inc.Supplemental
InformationReconciliation of
Operating Income (Loss) to Adjusted Property EBITDA and Adjusted
EBITDA(In Thousands,
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
5,793 |
|
|
$ |
702 |
|
$ |
— |
|
$ |
— |
|
$ |
6,495 |
|
Rising Star Casino Resort(1) |
|
|
1,817 |
|
|
|
619 |
|
|
— |
|
|
— |
|
|
2,436 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
3,048 |
|
|
|
345 |
|
|
— |
|
|
— |
|
|
3,393 |
|
Northern Nevada Casinos |
|
|
888 |
|
|
|
144 |
|
|
— |
|
|
— |
|
|
1,032 |
|
|
|
|
11,546 |
|
|
|
1,810 |
|
|
— |
|
|
— |
|
|
13,356 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,137 |
) |
|
|
38 |
|
|
108 |
|
|
121 |
|
|
(870 |
) |
|
|
$ |
10,409 |
|
|
$ |
1,848 |
|
$ |
108 |
|
$ |
121 |
|
$ |
12,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
2,119 |
|
|
$ |
883 |
|
$ |
7 |
|
$ |
— |
|
$ |
— |
|
$ |
3,009 |
|
Rising Star Casino Resort |
|
|
(445 |
) |
|
|
601 |
|
|
— |
|
|
— |
|
|
— |
|
|
156 |
|
Bronco Billy’s Casino and Hotel |
|
|
1,156 |
|
|
|
423 |
|
|
3 |
|
|
— |
|
|
— |
|
|
1,582 |
|
Northern Nevada Casinos |
|
|
1,964 |
|
|
|
144 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,108 |
|
|
|
|
4,794 |
|
|
|
2,051 |
|
|
10 |
|
|
— |
|
|
— |
|
|
6,855 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,400 |
) |
|
|
38 |
|
|
— |
|
|
228 |
|
|
70 |
|
|
(1,064 |
) |
|
|
$ |
3,394 |
|
|
$ |
2,089 |
|
$ |
10 |
|
$ |
228 |
|
$ |
70 |
|
$ |
5,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amounts related to the property’s contracted sports
revenue.
Full House Resorts,
Inc.Supplemental
InformationReconciliation of
Operating Income (Loss) to Adjusted Property EBITDA and Adjusted
EBITDA(In Thousands,
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
7,180 |
|
|
$ |
2,346 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
9,526 |
|
Rising Star Casino Resort(1) |
|
|
(1,509 |
) |
|
|
1,857 |
|
|
— |
|
|
— |
|
|
— |
|
|
348 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
1,685 |
|
|
|
1,109 |
|
|
4 |
|
|
— |
|
|
— |
|
|
2,798 |
|
Northern Nevada Casinos |
|
|
(797 |
) |
|
|
441 |
|
|
435 |
|
|
— |
|
|
— |
|
|
79 |
|
|
|
|
6,559 |
|
|
|
5,753 |
|
|
439 |
|
|
— |
|
|
— |
|
|
12,751 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(3,744 |
) |
|
|
115 |
|
|
— |
|
|
423 |
|
|
307 |
|
|
(2,899 |
) |
|
|
$ |
2,815 |
|
|
$ |
5,868 |
|
$ |
439 |
|
$ |
423 |
|
$ |
307 |
|
$ |
9,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
7,844 |
|
|
$ |
2,599 |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
10,448 |
|
Rising Star Casino Resort |
|
|
(637 |
) |
|
|
1,800 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,163 |
|
Bronco Billy’s Casino and Hotel |
|
|
1,770 |
|
|
|
1,304 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,074 |
|
Northern Nevada Casinos |
|
|
2,070 |
|
|
|
446 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,516 |
|
|
|
|
11,047 |
|
|
|
6,149 |
|
|
5 |
|
|
— |
|
|
— |
|
|
17,201 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(4,462 |
) |
|
|
114 |
|
|
— |
|
|
503 |
|
|
263 |
|
|
(3,582 |
) |
|
|
$ |
6,585 |
|
|
$ |
6,263 |
|
$ |
5 |
|
$ |
503 |
|
$ |
263 |
|
$ |
13,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amounts related to the property’s contracted sports
revenue.
Forward-looking StatementsThis
press release contains statements by Full House and its 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 are neither
historical facts nor assurances of future performance. Some
forward-looking statements in this press release include those
regarding the impact of the COVID-19 pandemic; our expectations for
our continued operating performance; expectations regarding the
timing for commencement of the remaining four sports wagering
websites by our contracting parties in Indiana and Colorado,
anticipated revenues and related expenses from the sports wagering
agreements we have entered into; expectations regarding the
intended use and the potential forgiveness of loans received under
the CARES Act; expectations regarding current or future covenant
waivers or amendments with our lenders; our expectations regarding
the Waukegan proposal; our expectations regarding the impact of the
elimination of betting maximums and approval of additional table
games in Colorado; and our ability to use our CARES Act loan
proceeds for eligible expenses in the permitted time period.
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
adverse impact of the COVID-19 pandemic on our business,
constructions projects, financial condition and operating results,
including on our ability to continue as a going concern; actions by
government officials at the federal, state or local level with
respect to steps to be taken, including, without limitation,
additional shutdowns, travel restrictions, social distancing
measures or shelter-in place orders, in connection with the
COVID-19 pandemic; our ability to effectively manage and control
expenses as a result of the pandemic; the impact of additional
temporary or extended shutdowns on our ability to maintain
compliance with the terms and conditions of our indenture and other
material contracts; changes in guest visitation or spending
patterns due to COVID-19 or other health or other concerns,
including a decrease in overall demand after the initial spike
following the reopening our casinos; the impact of social
distancing requirements and other health and safety protocols
implemented at our properties, including a reduction in our
operating margins (or negative operating margins); potentially
uninsurable liability exposure to customers and staff should they
become (or allege that they have become) infected with COVID-19
while at one of our resorts; unwillingness of employees to report
to work due to the adverse effects of the COVID-19 pandemic or to
otherwise conduct work under any revised work environment
protocols; the potential of increases in state and federal taxation
to address budgetary and other impacts of the COVID-19 pandemic;
the potential of increased regulatory and other burdens to address
the direct and indirect impacts of COVID-19 pandemic; a continuing
inability of the global response to contain the COVID-19 pandemic
or to develop an effective vaccine or a rebound of the virus;
changes by the SBA or other governmental authorities regarding the
CARES Act, loan programs established under the CARES Act, or
related administrative matters; our ability to comply with the
terms of the loans and the CARES Act and to use the loans for
permissible expenses and in a manner that results in forgiveness of
some or all of the loans; the availability of forgiveness of the
CARES Act loans in whole or in part; the failure to obtain and/or
maintain regulatory approvals (including in Colorado, Indiana,
Nevada and Mississippi); the inability to obtain financing upon
reasonable terms or at all (including for projects such as the
Bronco Billy’s expansion or the Waukegan project) or, if
applicable, our inability to negotiate definitive agreements in
accordance with the terms of the commitment letter related to the
Waukegan project; the potential increase in Full House’s
indebtedness due to the expansion of Bronco Billy’s or the Waukegan
project; construction risks and cost overruns; dependence on
existing management; competition; uncertainties over the
development and success of our acquisition and expansion projects;
the financial performance of our finished projects and renovations;
effectiveness of expense and operating efficiencies; general
macroeconomic conditions; risks related to entering into sports
betting operations (including our ability to establish and maintain
relationships with key partners or vendors, the ability and/or
willingness of our sports wagering providers to sustain sports
betting operations should they experience an extended period of
unprofitability, and the ability to replace existing partners or
vendors on similar terms as our existing contractual minimums); 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 Full House’s
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, its Form 10-K for the
most recently ended fiscal year and the Company’s other periodic
reports filed with the Securities and Exchange Commission. The
Company is under no obligation to (and expressly disclaims any such
obligation to) update or revise its 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.
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;
and Stockman’s Casino in Fallon, Nevada. The Company also operates
the Grand Lodge Casino at the Hyatt Regency Lake Tahoe Resort, Spa
and Casino in Incline Village, Nevada under a lease agreement with
the Hyatt organization. Further information about Full House
Resorts can be viewed on its website at
www.fullhouseresorts.com. The information contained on, or
that may be accessed through, our website, our Facebook page,
www.BroncoBillysCasino.com or www.americanplace.us, is not
incorporated by reference into, and is not a part of, this
document.
Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
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