Full House Resorts, Inc.

Announcement: FLL 8-K Special Filing

Part 1: Analysis of the Performance of Full House Resorts Inc.

Full House Resorts Inc. has recorded strong results in the first quarter of 2023, as reflected in its segments and properties' table in the 'Executive Overview' section. The company owns and operates six casinos that offer hotel accommodations, dining, golf, RV camping, sports betting, entertainment, and retail outlets, among other amenities. It is noteworthy that Full House Resorts Inc. has placed increased emphasis on sports betting, evidenced by its seven permitted sports wagering 'skins.' Three of these are located in Colorado, three in Indiana, and one in Illinois. Other companies operate or will operate these online sports wagering websites under their brands, and in exchange, Full House Resorts will receive a percentage of revenues, as defined, and subject to annual minimum amounts.

The company’s quarterly operating results are subject to fluctuations due to seasonality, variations in gaming hold percentages, and other factors. It is worth noting that the company's financial results depend heavily on patronage to their properties and the amounts guests spend per visit. The gaming revenues are primarily derived from slot machines, that includes table games, keno, and sports betting. Full House Resorts derive revenues from its hotels and its food and beverage outlets. Due to the company's focus on improving the operating margins of its existing properties through revenue growth and expense management, it has generated consistent revenues in the past few quarters, displaying a strong performance even amidst the current economic climate.

Part 2: Forward-Looking Analysis of Full House Resorts Inc.

Full House Resorts Inc. has recently opened a temporary facility, "The Temporary by American Place" in Waukegan, Illinois, which will begin to generate revenue as the company designs and constructs the larger permanent 'American Place' facility expected to open later in the year. The larger American Place facility is expected to include a world-class casino with a state-of-the-art sportsbook; a premium boutique hotel comprised of 20 luxurious villas; a 1,500-seat live entertainment venue and various food and beverage outlets. Full House Resorts has had a prolonged focus on growth and development opportunities; it may include capital investments at its existing properties, the development of new properties, and the acquisition of existing properties.

Furthermore, Full House Resorts currently has seven permitted sports wagering 'skins,' three being located in Colorado, three in Indiana, and one in Illinois. Full House Resorts will increase its focus on sports betting and may look towards investing and growing this segment of its business further. It is prudent to consider potential fluctuations in the company's quarterly operating results due to seasonality, variations in gaming hold percentages, and other factors.

Therefore, despite the promising recent developments, investors must note that Full House Resorts Inc.'s performance is subject to inherent risks due to the cyclical trends of the gaming industry and the unfavorable economic climate. Moreover, the company's expansion plans and its reliance on the hospitality and entertainment industry for revenues mean that it continues to carry significant debt levels and may have to access external financing, which can affect the company's financial position. Investors should keep track of any economic developments that could exert downside risks on the company's revenue and stock price.

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Full House Resorts Q1 Results Show Strong Performance Amidst Economic Climate

Full House Resorts Inc. (NASDAQ: FLL) has reported a 21.4% YoY increase in revenues, bringing it to $50.4 million in the first quarter ended March 31, 2023. The company also reported an Adjusted EBITDA growth of 20.8%, with $11.6 million in the latest quarter. These results demonstrate the ongoing success of the company's growth pipeline. 

The company's marketing database of approximately 25,000 people is growing steadily, and the continuation of ramping up operations at The Temporary since the soft opening in February is promising. Full House Resorts expects to begin 24-hour casino operations and remove restrictions on table game limits and operating hours on weekends from May 12th. The company expects to complete its opening of The Temporary by June with the addition of 22 more table games, a fine-dining restaurant, and an on-site sportsbook.

Full House Resorts has also finalized an opening day for Chamonix on December 26, 2023. This new construction project is currently under development, and $142.6 million of cash is reserved under its bond indentures to complete the construction. The company has also recently aligned its South, West, and Contracted Sports Wagering segments to further the use of resources and allocate performance segmentation more efficiently.

Although Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, Full House Resorts believes that this non-GAAP financial measure provides meaningful supplemental information regarding its performance and liquidity. The company utilizes this metric internally to focus management on core operating performance changes year-over-year, which it believes is useful information for investors.

Overall, Full House Resorts appears to be on track with its growth pipeline plans and has a significant construction project underway with a promising opening date. Investors will be keenly interested in the continued ramp-up of operations at The Temporary and the growth in the company's marketing database.

Form 8-K - Current report - Item 2.02 Item 9.01

$FLL reports 21.4% YoY increase in Q1 revenues to $50.4 million and plans to expand operations with the opening of The Temporary and Chamonix, while aligning sports wagering segments for more efficient allocation of resources.

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

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Announcement: FLL 10-K Annual Report

Analyst Summary:
Full House Resorts (Nasdaq: FLL) announced its Q4 and year-end results, reporting a net loss of $46.1 million for the year, compared to a net loss of $36.4 million last year. Despite this, the company's President and CEO, Daniel R. Lee, expressed optimism about the growth pipeline, noting the strong response from guests to The Temporary casino. The company plans to continue growing its casino operations by increasing the number of available games and opening new restaurants. Additionally, the company is making good progress in construction of the Chamonix project in Cripple Creek, Colorado, and expects to open it later this year. However, the company also faced challenges in 2022 due to competition from online sports wagering in Louisiana, and rising expenses related to property insurance and food costs. The company is still maintaining its workforce, despite reduced activity levels, in anticipation of the need for the larger workforce required to open and operate Chamonix. The company's adjusted EBITDA, a non-GAAP measure, grew 21% YoY, aided by the increase in skin that contractually went live on December 1, 2021, as well the acceleration of deferred revenue for two agreements that ceased operations in May 2022. The company utilized its cash reserves and outstanding senior secured notes to complete the construction of Chamonix, and expects to generate attractive returns from its future American Place destination. However, investors should be aware that forward-looking statements made in this press release are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and beyond the control of the company.

$FLL Reports Q4 and Year-End Results Despite Challenges and Optimistic Growth Pipeline

Form 8-K - Current report - Item 1.01 Item 2.03 Item 9.01