Full House Resorts, Inc. (Nasdaq: FLL) today announced results for
the second quarter ended June 30, 2020.
Due to the COVID-19 pandemic, various state regulatory agencies
required all of the Company’s casinos to close in mid-March 2020.
The Company’s properties began reopening when permitted by local
authorities, beginning with the Silver Slipper Casino and Hotel on
May 21, 2020, Grand Lodge Casino and Stockman’s Casino on June 4,
2020, and Bronco Billy’s Casino and Hotel and Rising Star Casino
Resort on June 15, 2020.
Because all of the Company’s operations were closed in the first
half of the quarter, the year-over-year comparisons are not
particularly meaningful. The Company has thus, on a supplemental
basis, provided the results for the month of June, in addition to
the quarterly results. Recognize that not all of the Company’s
operations were open for the entirety of the month of June 2020,
but management believes the June 2020 to June 2019 comparison to be
more relevant than the year-over-year second quarter comparisons.
The Company does not intend to release monthly results on an
ongoing basis.
June Results
“After a few months of closure to help slow the spread of the
coronavirus, we began the process of reopening our properties in
late-May. By mid-June, all of our properties were open,” said
Daniel R. Lee, President and Chief Executive Officer of Full House
Resorts. “We still have significant constraints on our operations
in order to ensure social distancing and address appropriate health
safety concerns. For example, we are not operating table games in
Colorado and we have significantly limited our table game capacity
in other markets. We are not offering entertainment or any special
events that would result in group gatherings. Our restaurants are
operating with reduced hours and reduced capacity. We are currently
operating only about 1,650 slot machines to ensure proper
distancing between slot players, versus the nearly 3,000 slot
machines that we operated in the first quarter. We are also
incurring additional costs to sanitize equipment between guests, to
police social distancing, to take temperature scans at every
entrance, to have employees serve guests at buffets that were
previously self-serve, and to provide masks and other protective
equipment to employees and guests.
“Despite these constraints, our properties have performed very
well on an overall basis. In June 2020, for example, consolidated
Adjusted EBITDA(a) increased 60% versus June 2019. That strong
performance was led by our most important property, the Silver
Slipper, which was our only property open for the entire month. On
several metrics, June 2020 was the best month in the Silver
Slipper’s 14-year history. Adjusted Property EBITDA at the Silver
Slipper improved 28% in June 2020 from June 2019. Both Bronco
Billy’s and Rising Star also performed well in June, despite not
reopening until midway through the month. Their partial months of
operation were strong enough to carry the full month of rent,
utilities and other overhead expenses and still outperform the
prior-year period, when they were open for the entire month. Partly
offsetting the strong results from our larger properties, our
Northern Nevada segment saw its operating performance decline in
June 2020, as destination travel to our Lake Tahoe location is down
and most visitors to the Navy’s air station in Fallon, where
substantial training is performed, are prohibited from leaving the
base.”
Continued Mr. Lee, “Several months ago, we invested in new slot
marketing systems at Rising Star and Bronco Billy’s. Those new slot
systems provide an improved guest experience, as well as vastly
improved analytics. This helps us market more effectively and
efficiently. After extensive analysis during the shutdown period,
we relaunched the loyalty programs at both properties upon
reopening. We also used the shutdown period to reexamine our
staffing levels company-wide and we chose to open 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 casino
resort amenities such as shows, nightclubs or convention
facilities, which by their nature, result in group
gatherings.
“Regarding online sports wagering, we continue to make great
strides. Two of our six permitted ‘skins,’ or sports wagering
websites, are now live, as Smarkets launched its sports wagering
app in Colorado on June 4, 2020. It joins Churchill Downs’
BetAmerica, which launched in Indiana at the end of last year. Our
final four skins are expected to launch this quarter, pending the
receipt of customary regulatory approvals. When all of our
contracted sports wagering websites have commenced operations, our
sports wagering revenue, based on the contractual minimums, should
total at least $7.0 million on an annualized basis.
“Lastly,” concluded Mr. Lee, “we continue to focus on our
financial liquidity. At the start of the pandemic, we stopped
construction of our parking garage at Bronco Billy’s in order to
conserve capital. We are currently in the process of finalizing a
covenant waiver with our lenders for the June 30 period, and
continue to discuss covenant amendments for future quarters. We
continue to be very cautious, recognizing that the risks of the
pandemic period are not yet entirely behind us.”
Second Quarter Results
As noted, the Company’s casinos did not operate for much of the
recent second quarter. Accordingly, consolidated net revenues in
the second quarter of 2020 decreased to $14.5 million from $41.7
million in the prior-year period. Net loss for the second quarter
of 2020 was $(6.7) million, or $(0.25) per diluted common share,
compared to a net loss of $(1.0) million, or $(0.04) per diluted
common share, in the prior-year period. Net loss in both
periods was affected by the accounting for the fair market value of
outstanding warrants. Adjusted EBITDA in the 2020 second quarter
was $(1.4) million versus $4.3 million in the second quarter of
2019. Results for the second quarter of 2020 also include $0.5
million of revenue related to a full quarter of operations for one
of the Company’s three permitted sports wagering websites in
Indiana, as well as approximately one month of newly-launched
operations for one of the Company’s three permitted sports wagering
websites in Colorado.
Second Quarter Highlights and Subsequent
Events
- At Silver Slipper Casino and Hotel, net revenues in the month
of June 2020 were $6.4 million versus $6.6 million in June 2019.
Adjusted Property EBITDA in June 2020 increased 28% to $1.7 million
from $1.3 million in June 2019, despite the numerous operating
restrictions. For the full quarter, net revenues at Silver Slipper
Casino and Hotel declined to $9.1 million in the second quarter of
2020 from $18.9 million in the prior-year quarter. Adjusted
Property EBITDA was $1.2 million and $3.6 million for the second
quarters of 2020 and 2019, respectively. These results reflect the
mandatory closure of the property from March 16, 2020 until May 21,
2020. As discussed above, operating profits at Silver Slipper since
reopening have been meaningfully ahead of prior-year levels.
- At Rising Star Casino Resort, net revenues in the month of June
2020 were $2.3 million versus $3.8 million in June 2019. Adjusted
Property EBITDA in June 2020 increased 33% to $168,000 from
$126,000 in June 2019.For the full quarter, net revenues at Rising
Star (excluding contractual minimums related to the property’s
sports revenue agreements) declined for the second quarter of 2020
to $2.2 million from $11.6 million, reflecting the mandatory
closure of the property from March 16, 2020 until June
15, 2020, as well as an increase in competition. A casino near
Louisville opened a large new casino in mid-December, replacing its
original casino boat. Additionally, on January 1, 2020, racetrack
casinos near Indianapolis began offering live table games. Adjusted
Property EBITDA (excluding contractual minimums related to the
property’s sports revenue agreements) of $(1.4) million in the
second quarter of 2020 compares to $0.6 million in the prior-year
period. Including the contracted sports revenues, revenues and
Adjusted Property EBITDA for the second quarter of 2020 were $2.6
million and $(1.0) million, respectively. The Company completed
installation of a new slot system at Rising Star in the fourth
quarter of 2019. The new slot system was installed to improve the
customer experience, as well as the effectiveness and efficiency of
the property’s marketing efforts.
- At Bronco Billy’s Casino and Hotel, net revenues in the month
of June 2020 were $1.7 million versus $2.3 million in June 2019.
Adjusted Property EBITDA in June 2020 increased 95% to $677,000
from $348,000 in June 2019.For the full quarter, net revenues at
Bronco Billy’s (excluding contractual minimums related to the
property’s sports revenue agreements) declined for the second
quarter of 2020 to $1.6 million from $6.9 million. Adjusted
Property EBITDA (excluding contractual minimums related to the
property’s sports revenue agreements) declined to $(0.2) million
from $0.9 million. The decline in results represents the
effect of the state-mandated closure of casinos from March 17, 2020
until June 15, 2020. Including the contracted sports revenues,
revenues and Adjusted Property EBITDA for the second quarter of
2020 were $1.7 million and $(0.1) million, respectively. Similar to
Rising Star, the Company completed installation of a new slot
system at Bronco Billy’s in the fourth quarter of 2019.
- The Northern Nevada segment consists of the Grand Lodge and
Stockman’s casinos. Combined, Northern Nevada net revenues in the
month of June 2020 were $1.1 million versus $1.6 million in June
2019. Adjusted Property EBITDA was $208,000 in June 2020 versus
$257,000 in June 2019, reflecting restrictions prohibiting most
Navy personnel from leaving the base station near Stockman’s
Casino, as well as a decline in guests to the hotel that houses
Grand Lodge Casino.For the full quarter, Northern Nevada’s net
revenues were $1.1 million and $4.3 million for the second quarters
of 2020 and 2019, respectively. Adjusted Property EBITDA for the
Northern Nevada segment was $(562,000) and $417,000, respectively.
These results principally reflect the effect of the state-mandated
closure of casinos from March 17, 2020 until June 4, 2020.
- On June 4, 2020, the first of the Company’s three permitted
sports wagering websites in Colorado commenced operations. As
previously disclosed, the Company entered into six sports wagering
agreements, three related to its gaming licenses in Colorado and
three related to its Indiana gaming license. Under these
agreements, the Company receives a share of net sports wagering
revenues, as defined, with Full House’s portion of the revenues
contracted to total at least $7.0 million on an annualized basis
upon the launch of all six sports wagering websites. The Company
expects to have minimal ongoing expenses related to these revenues.
As of August 5, 2020, one of the Company’s three permitted sports
wagering websites is operational in Colorado and one of three
permitted websites is operational in Indiana. The Company believes
that the four remaining websites will commence operations during
the third quarter of 2020.
- During the 2020 second quarter, the Company wrote down assets
at Stockman’s Casino by $0.4 million. This write-off was related to
the Company’s plans to build new office space at the casino.
Previously, the property’s offices were located in front of the
casino’s main entrance, limiting casino visibility from the street.
In September 2016, the Company demolished that office building,
replacing it with convenient customer parking. The plan was to
expand the casino building on its east side to house new offices.
The property’s executives were temporarily housed in construction
trailers at the back of the property. In the interim years, the
Company prioritized its capital expenditures to favor projects that
would directly improve the customer experience, which these offices
would not. Hence, the offices were not built. During the closure
period, the property’s management was restructured, reducing the
need for offices, and allowing for a far less expensive and smaller
office area to be built within the existing building. The write-off
reflects the design costs of the now-abandoned office project, plus
the trailer rent during the interim period, which had been
capitalized.
- While the Company remains focused on the conservative use of
its capital, it 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 anticipates
developing this casino in a joint venture, employing project
financing. There is no certainty that the Company will be chosen to
develop such casino, that it will find a suitable partner, or that
project financing will be available.
- 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. Whether or not the Company will be able to complete
the parking garage in the near future will depend on the operating
results of its casinos over the next several months, as well as the
capital markets that might be available to the Company at some
future date.
- In May 2020, the Company’s Bronco Billy’s and Rising Star
subsidiaries (FHR-Colorado and Gaming Entertainment (Indiana),
respectively) received approximately $5.6 million of total loan
proceeds under the CARES Act. Such funds were principally used 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 mature in May 2022,
though recently-passed legislation allows for the maturity date to
potentially be extended 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 be 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 that any or all
of such loans will be forgiven.
- In July 2018, the Company paid $125,000 for options to purchase
approximately 520 acres of adjoining land in Clovis, New Mexico as
part of its racetrack casino proposal to the New Mexico Racing
Commission. The proposal was in response to the New Mexico Racing
Commission’s request for proposals related to the potential
issuance of the state’s sixth racing license (“RFP”). In July 2019,
the Company paid an additional $125,000 to renew these land
options. In August 2019, the New Mexico Racing Commission announced
that it would not issue the sixth racing license at this time. Due
to uncertainties surrounding the timing of the RFP process, as well
as uncertainties created by the ongoing pandemic, the Company
elected to let the New Mexico land options expire in July 2020.
Accordingly, the Company wrote off deposits totaling $250,000 in
the second quarter of 2020, reflected on the income statement under
“Project development costs.”
Liquidity and Capital
ResourcesAs of June 30, 2020, the
Company had $26.5 million in cash and equivalents, as well as
$107.4 million in outstanding senior secured notes and
$5.6 million in outstanding unsecured loans obtained under the
CARES Act.
Conference Call InformationThe
Company will host a conference call for investors today, August 6,
2020, at 3:00 p.m. ET (12:00 p.m. PT) to discuss its 2020 second
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 (800) 926-5124 or, for international callers,
(303) 223-0113.
A replay of the conference call will be available shortly after
the conclusion of the call through August 20, 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
21967193.
(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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
10,955 |
|
|
$ |
28,450 |
|
|
$ |
31,706 |
|
|
$ |
56,748 |
|
Food and beverage |
|
|
1,994 |
|
|
|
8,863 |
|
|
|
8,984 |
|
|
|
17,521 |
|
Hotel |
|
|
719 |
|
|
|
3,051 |
|
|
|
2,693 |
|
|
|
5,766 |
|
Other operations, including online/mobile sports operations |
|
|
843 |
|
|
|
1,299 |
|
|
|
1,981 |
|
|
|
2,122 |
|
Net
revenues |
|
|
14,511 |
|
|
|
41,663 |
|
|
|
45,364 |
|
|
|
82,157 |
|
Operating costs
and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
|
3,470 |
|
|
|
11,592 |
|
|
|
13,803 |
|
|
|
23,377 |
|
Food and beverage |
|
|
2,083 |
|
|
|
9,449 |
|
|
|
9,219 |
|
|
|
18,818 |
|
Hotel |
|
|
377 |
|
|
|
2,379 |
|
|
|
1,550 |
|
|
|
4,799 |
|
Other operations |
|
|
273 |
|
|
|
1,072 |
|
|
|
835 |
|
|
|
1,841 |
|
Selling, general and administrative |
|
|
9,796 |
|
|
|
13,027 |
|
|
|
22,777 |
|
|
|
25,687 |
|
Project development costs |
|
|
259 |
|
|
|
142 |
|
|
|
315 |
|
|
|
275 |
|
Depreciation and amortization |
|
|
1,980 |
|
|
|
2,083 |
|
|
|
4,020 |
|
|
|
4,174 |
|
Loss (gain) on disposal of assets, net |
|
|
439 |
|
|
|
(4 |
) |
|
|
439 |
|
|
|
(5 |
) |
|
|
|
18,677 |
|
|
|
39,740 |
|
|
|
52,958 |
|
|
|
78,966 |
|
Operating (loss)
income |
|
|
(4,166 |
) |
|
|
1,923 |
|
|
|
(7,594 |
) |
|
|
3,191 |
|
Other (expense)
income, net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of capitalized interest |
|
|
(2,447 |
) |
|
|
(2,931 |
) |
|
|
(4,938 |
) |
|
|
(5,634 |
) |
Adjustment to fair value of warrants |
|
|
(94 |
) |
|
|
141 |
|
|
|
1,562 |
|
|
|
101 |
|
|
|
|
(2,541 |
) |
|
|
(2,790 |
) |
|
|
(3,376 |
) |
|
|
(5,533 |
) |
Loss before
income taxes |
|
|
(6,707 |
) |
|
|
(867 |
) |
|
|
(10,970 |
) |
|
|
(2,342 |
) |
Income tax (benefit)
provision |
|
|
(4 |
) |
|
|
143 |
|
|
|
91 |
|
|
|
285 |
|
Net
loss |
|
$ |
(6,703 |
) |
|
$ |
(1,010 |
) |
|
$ |
(11,061 |
) |
|
$ |
(2,627 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share |
|
$ |
(0.25 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.10 |
) |
Diluted loss per
share |
|
$ |
(0.25 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number
of common shares outstanding |
|
|
27,079 |
|
|
|
26,969 |
|
|
|
27,077 |
|
|
|
26,955 |
|
Diluted weighted average
number of common shares outstanding |
|
|
27,079 |
|
|
|
27,186 |
|
|
|
27,260 |
|
|
|
27,187 |
|
Full House Resorts,
Inc.Supplemental
InformationSegment Revenues and
Adjusted Property EBITDA(In
Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Month Ended |
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel(1) |
|
$ |
6,441 |
|
|
$ |
6,615 |
|
|
$ |
9,122 |
|
|
$ |
18,892 |
|
|
$ |
24,215 |
|
|
$ |
38,174 |
|
Rising Star Casino Resort(2)(3) |
|
|
2,253 |
|
|
|
3,818 |
|
|
|
2,587 |
|
|
|
11,598 |
|
|
|
10,258 |
|
|
|
22,465 |
|
Bronco Billy's Casino and Hotel(3)(4) |
|
|
1,694 |
|
|
|
2,313 |
|
|
|
1,716 |
|
|
|
6,877 |
|
|
|
6,697 |
|
|
|
13,317 |
|
Northern Nevada Casinos(5) |
|
|
1,061 |
|
|
|
1,578 |
|
|
|
1,086 |
|
|
|
4,296 |
|
|
|
4,194 |
|
|
|
8,201 |
|
|
|
$ |
11,449 |
|
|
$ |
14,324 |
|
|
$ |
14,511 |
|
|
$ |
41,663 |
|
|
$ |
45,364 |
|
|
$ |
82,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Property EBITDA(6) and Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
1,674 |
|
|
$ |
1,303 |
|
|
$ |
1,200 |
|
|
$ |
3,594 |
|
|
$ |
3,032 |
|
|
$ |
7,440 |
|
Rising Star Casino Resort(3) |
|
|
168 |
|
|
|
126 |
|
|
|
(995 |
) |
|
|
604 |
|
|
|
(2,088 |
) |
|
|
1,007 |
|
Bronco Billy's Casino and Hotel(3) |
|
|
677 |
|
|
|
348 |
|
|
|
(118 |
) |
|
|
876 |
|
|
|
(596 |
) |
|
|
1,491 |
|
Northern Nevada Casinos |
|
|
208 |
|
|
|
257 |
|
|
|
(562 |
) |
|
|
417 |
|
|
|
(953 |
) |
|
|
408 |
|
Adjusted
Property EBITDA |
|
|
2,727 |
|
|
|
2,034 |
|
|
|
(475 |
) |
|
|
5,491 |
|
|
|
(605 |
) |
|
|
10,346 |
|
Corporate |
|
|
(145 |
) |
|
|
(422 |
) |
|
|
(910 |
) |
|
|
(1,240 |
) |
|
|
(2,029 |
) |
|
|
(2,518 |
) |
Adjusted
EBITDA |
|
$ |
2,582 |
|
|
$ |
1,612 |
|
|
$ |
(1,385 |
) |
|
$ |
4,251 |
|
|
$ |
(2,634 |
) |
|
$ |
7,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reopened on May 21, 2020.(2) Reopened on June 15, 2020.(3)
Includes amounts related to the property’s contracted sports
revenue in 2020.(4) Reopened on June 15, 2020.(5) Reopened on June
4, 2020.(6) 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Month Ended |
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income
(loss) |
|
$ |
430 |
|
|
$ |
(93 |
) |
|
$ |
(6,703 |
) |
|
$ |
(1,010 |
) |
|
$ |
(11,061 |
) |
|
$ |
(2,627 |
) |
Income tax (benefit) provision |
|
|
(4 |
) |
|
|
143 |
|
|
|
(4 |
) |
|
|
143 |
|
|
|
91 |
|
|
|
285 |
|
Interest expense, net of amounts capitalized |
|
|
685 |
|
|
|
903 |
|
|
|
2,447 |
|
|
|
2,931 |
|
|
|
4,938 |
|
|
|
5,634 |
|
Adjustment to fair value of warrants(1) |
|
|
94 |
|
|
|
(141 |
) |
|
|
94 |
|
|
|
(141 |
) |
|
|
(1,562 |
) |
|
|
(101 |
) |
Operating income
(loss) |
|
|
1,205 |
|
|
|
812 |
|
|
|
(4,166 |
) |
|
|
1,923 |
|
|
|
(7,594 |
) |
|
|
3,191 |
|
Project development costs |
|
|
255 |
|
|
|
51 |
|
|
|
259 |
|
|
|
142 |
|
|
|
315 |
|
|
|
275 |
|
Depreciation and amortization |
|
|
635 |
|
|
|
695 |
|
|
|
1,980 |
|
|
|
2,083 |
|
|
|
4,020 |
|
|
|
4,174 |
|
Loss (gain) on disposal of assets, net |
|
|
436 |
|
|
|
(4 |
) |
|
|
439 |
|
|
|
(4 |
) |
|
|
439 |
|
|
|
(5 |
) |
Stock-based compensation |
|
|
51 |
|
|
|
58 |
|
|
|
103 |
|
|
|
107 |
|
|
|
186 |
|
|
|
193 |
|
Adjusted
EBITDA |
|
$ |
2,582 |
|
|
$ |
1,612 |
|
|
$ |
(1,385 |
) |
|
$ |
4,251 |
|
|
$ |
(2,634 |
) |
|
$ |
7,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The fair value of the warrants is measured at the end of
each quarter, not on a monthly basis.
Full House Resorts,
Inc.Supplemental
InformationReconciliation of
Operating Income (Loss) to Adjusted Property EBITDA and Adjusted
EBITDA(In Thousands,
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Month Ended
June 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 |
|
$ |
1,424 |
|
|
$ |
250 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,674 |
|
Rising Star Casino Resort(1) |
|
|
(37 |
) |
|
|
205 |
|
|
— |
|
|
— |
|
|
— |
|
|
168 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
557 |
|
|
|
120 |
|
|
— |
|
|
— |
|
|
— |
|
|
677 |
|
Northern Nevada Casinos |
|
|
(277 |
) |
|
|
49 |
|
|
436 |
|
|
— |
|
|
— |
|
|
208 |
|
|
|
|
1,667 |
|
|
|
624 |
|
|
436 |
|
|
— |
|
|
— |
|
|
2,727 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(462 |
) |
|
|
11 |
|
|
— |
|
|
255 |
|
|
51 |
|
|
(145 |
) |
|
|
$ |
1,205 |
|
|
$ |
635 |
|
$ |
436 |
|
$ |
255 |
|
$ |
51 |
|
$ |
2,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Month Ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Gain 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 |
|
$ |
1,012 |
|
|
$ |
291 |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
1,303 |
|
Rising Star Casino Resort |
|
|
(73 |
) |
|
|
199 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
126 |
|
Bronco Billy’s Casino and Hotel |
|
|
208 |
|
|
|
144 |
|
|
(4 |
) |
|
|
— |
|
|
— |
|
|
348 |
|
Northern Nevada Casinos |
|
|
208 |
|
|
|
49 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
257 |
|
|
|
|
1,355 |
|
|
|
683 |
|
|
(4 |
) |
|
|
— |
|
|
— |
|
|
2,034 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(543 |
) |
|
|
12 |
|
|
— |
|
|
|
51 |
|
|
58 |
|
|
(422 |
) |
|
|
$ |
812 |
|
|
$ |
695 |
|
$ |
(4 |
) |
|
$ |
51 |
|
$ |
58 |
|
$ |
1,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 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 |
|
$ |
398 |
|
|
$ |
802 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,200 |
|
Rising Star Casino Resort(1) |
|
|
(1,611 |
) |
|
|
616 |
|
|
— |
|
|
— |
|
|
— |
|
|
(995 |
) |
Bronco Billy’s Casino and Hotel(1) |
|
|
(498 |
) |
|
|
376 |
|
|
4 |
|
|
— |
|
|
— |
|
|
(118 |
) |
Northern Nevada Casinos |
|
|
(1,145 |
) |
|
|
148 |
|
|
435 |
|
|
— |
|
|
— |
|
|
(562 |
) |
|
|
|
(2,856 |
) |
|
|
1,942 |
|
|
439 |
|
|
— |
|
|
— |
|
|
(475 |
) |
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,310 |
) |
|
|
38 |
|
|
— |
|
|
259 |
|
|
103 |
|
|
(910 |
) |
|
|
$ |
(4,166 |
) |
|
$ |
1,980 |
|
$ |
439 |
|
$ |
259 |
|
$ |
103 |
|
$ |
(1,385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Gain 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 |
|
$ |
2,725 |
|
|
$ |
869 |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
3,594 |
|
Rising Star Casino Resort |
|
|
11 |
|
|
|
593 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
604 |
|
Bronco Billy’s Casino and Hotel |
|
|
446 |
|
|
|
434 |
|
|
(4 |
) |
|
|
— |
|
|
— |
|
|
876 |
|
Northern Nevada Casinos |
|
|
268 |
|
|
|
149 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
417 |
|
|
|
|
3,450 |
|
|
|
2,045 |
|
|
(4 |
) |
|
|
— |
|
|
— |
|
|
5,491 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,527 |
) |
|
|
38 |
|
|
— |
|
|
|
142 |
|
|
107 |
|
|
(1,240 |
) |
|
|
$ |
1,923 |
|
|
$ |
2,083 |
|
$ |
(4 |
) |
|
$ |
142 |
|
$ |
107 |
|
$ |
4,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 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 |
|
$ |
1,386 |
|
|
$ |
1,646 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3,032 |
|
Rising Star Casino Resort(1) |
|
|
(3,326 |
) |
|
|
1,238 |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,088 |
) |
Bronco Billy’s Casino and Hotel(1) |
|
|
(1,363 |
) |
|
|
763 |
|
|
4 |
|
|
— |
|
|
— |
|
|
(596 |
) |
Northern Nevada Casinos |
|
|
(1,685 |
) |
|
|
297 |
|
|
435 |
|
|
— |
|
|
— |
|
|
(953 |
) |
|
|
|
(4,988 |
) |
|
|
3,944 |
|
|
439 |
|
|
— |
|
|
— |
|
|
(605 |
) |
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(2,606 |
) |
|
|
76 |
|
|
— |
|
|
315 |
|
|
186 |
|
|
(2,029 |
) |
|
|
$ |
(7,594 |
) |
|
$ |
4,020 |
|
$ |
439 |
|
$ |
315 |
|
$ |
186 |
|
$ |
(2,634 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Gain 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 |
|
$ |
5,725 |
|
|
$ |
1,716 |
|
$ |
(1 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
7,440 |
|
Rising Star Casino Resort |
|
|
(192 |
) |
|
|
1,199 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1,007 |
|
Bronco Billy’s Casino and Hotel |
|
|
614 |
|
|
|
881 |
|
|
(4 |
) |
|
|
— |
|
|
— |
|
|
1,491 |
|
Northern Nevada Casinos |
|
|
106 |
|
|
|
302 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
408 |
|
|
|
|
6,253 |
|
|
|
4,098 |
|
|
(5 |
) |
|
|
— |
|
|
— |
|
|
10,346 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(3,062 |
) |
|
|
76 |
|
|
— |
|
|
|
275 |
|
|
193 |
|
|
(2,518 |
) |
|
|
$ |
3,191 |
|
|
$ |
4,174 |
|
$ |
(5 |
) |
|
$ |
275 |
|
$ |
193 |
|
$ |
7,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
operating performance in July 2020 and beyond; expectations
regarding the timing for commencement of the remaining four sports
wagering websites by our contracting parties in Indiana and
Colorado, anticipated revenues from sports wagering and related
expenses, and the related sports wagering agreements we have
entered into; expectations regarding the new slot systems;
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; and our expectations regarding the Waukegan proposal.
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 in the fall; 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 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 (including for projects such
as the Bronco Billy’s expansion and the Waukegan proposal); the
potential increase in Full House’s indebtedness due to the
expansion of Bronco Billy’s; 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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