- Revenues Increased 66.4% to
Annual Revenues Grew 47.6%
-
- Approvals Received to
“After several years of construction, we are entering a new phase for our company,” said Daniel R. Lee, President and Chief Executive Officer of
“On
On a consolidated basis, revenues in the fourth quarter of 2023 were
For the full year, revenues in 2023 were
“Our Company recently reached an inflection point,” noted
Added
Concluded
Fourth Quarter Highlights and Subsequent Events
- Midwest & South. This segment includes
Silver Slipper Casino and Hotel, Rising Star Casino Resort, andAmerican Place . Revenues for the segment were$49.1 million in the fourth quarter of 2023, a 78.8% increase from$27 .5 million in the prior-year period. Adjusted Segment EBITDA rose to$7.2 million , a 57.9% increase from$4 .6 million in the prior-year period. These results reflect theFebruary 17, 2023 opening ofAmerican Place , our casino located inWaukegan, Illinois . In the fourth quarter of 2023,American Place generated$22 .4 million of revenue and$3 .9 million of Adjusted Property EBITDA. American Place’s results reflect some winter seasonality, as well as elevated marketing expenses related to a marketing campaign that is expected to benefit the casino in the longer-run.
For the full year, this segment similarly benefited from the opening ofAmerican Place inFebruary 2023 . Revenues increased 60.4% from$120.0 million to$192.4 million , and Adjusted Segment EBITDA grew 48.0% from$26.4 million to$39 .0 million. Of such amount,American Place contributed$77.0 million and$18.4 million to the segment’s revenues and Adjusted Segment EBITDA, respectively. - West. This segment includes
Grand Lodge Casino (located within theHyatt Regency Lake Tahoe resort inIncline Village ), Stockman’s Casino, Bronco Billy’s Casino and Hotel, andChamonix Casino Hotel , which opened onDecember 27, 2023 . Revenues for the segment rose 14.0% to$8.6 million in the fourth quarter of 2023, versus$7 .5 million in the prior-year period. Adjusted Segment EBITDA of $(0.1) million in the fourth quarter of 2023 compares to$(0.3) million in the prior-year period. 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 neighboringChamonix . WithChamonix now open, Bronco Billy’s is benefiting from its integration withChamonix , including its new parking garage and approximately 300 on-site guest rooms.
For the year, revenues and Adjusted Segment EBITDA were$35.9 million and$2.4 million in 2023, respectively. In 2022, such amounts were$36.1 million and$4.2 million , respectively. As noted above, construction-related disruptions at Bronco Billy’s are expected to dissipate in 2024 with the return of on-site guest rooms and on-site parking.
- Contracted Sports Wagering. This segment consists of our on-site and online sports wagering “skins” (akin to websites) in
Colorado ,Indiana , andIllinois . Revenues and Adjusted Segment EBITDA in the fourth quarter of 2023 were$2 .3 million and$1.3 million , respectively. These results reflect the contractual launch of our permittedIllinois sports skin inAugust 2023 , as well as a provision for credit losses on sports wagering receivables of$1 .0 million, which negatively affected Adjusted Segment EBITDA. For the fourth quarter of 2022, both revenues and Adjusted Segment EBITDA were$1.1 million .
For the year, this segment’s revenues grew 78.1%, from$7.2 million in 2022 to$12.8 million in 2023, and Adjusted Segment EBITDA rose 63.6%, from$7.1 million to$11.7 million . Results for 2022 reflect the acceleration of revenues under two of our sports wagering agreements with third-party operators that ceased operations inMay 2022 . In 2023, results increased due to the launch of ourIllinois sports skin noted above, the launch of a replacement operator inColorado inMarch 2023 , and accelerated revenues related to two other sports wagering agreements with operators that ceased operations during the third quarter of 2023. Additionally, the$1 .0 million provision for credit losses, as mentioned, negatively affected Adjusted Segment EBITDA during 2023.
The Company is currently permitted to operate three sports skins inColorado , three inIndiana , and one inIllinois . Of such permitted skins, two sports skins are currently live inColorado , one inIndiana , and one inIllinois . 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
Conference Call Information
We will host a conference call for investors today,
A replay of the conference call will be available shortly after the conclusion of the call through
(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, certain impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment.
Same-store Adjusted Segment EBITDA. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, certain impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Adjusted EBITDA. We also utilize Adjusted EBITDA, which is defined as Adjusted Segment EBITDA, net of corporate-related costs and expenses. Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, we believe this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. We utilize this metric or measure internally to focus management on year-over-year changes in core operating performance, which we consider our ordinary, ongoing and customary operations, and which we believe is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | ||||||||||||||||
Casino | $ | 45,347 | $ | 25,583 | $ | 176,933 | $ | 113,876 | ||||||||
Food and beverage | 8,561 | 6,239 | 33,980 | 26,494 | ||||||||||||
Hotel | 2,376 | 2,206 | 9,428 | 9,282 | ||||||||||||
Other operations, including contracted sports wagering | 3,745 | 2,054 | 20,719 | 13,629 | ||||||||||||
60,029 | 36,082 | 241,060 | 163,281 | |||||||||||||
Operating costs and expenses | ||||||||||||||||
Casino | 18,290 | 9,515 | 68,061 | 39,788 | ||||||||||||
Food and beverage | 8,425 | 6,238 | 33,240 | 26,372 | ||||||||||||
Hotel | 1,229 | 1,282 | 4,840 | 4,806 | ||||||||||||
Other operations | 1,620 | 574 | 3,498 | 2,168 | ||||||||||||
Selling, general and administrative | 23,923 | 14,911 | 85,746 | 59,706 | ||||||||||||
Project development costs, net | 8 | 195 | 53 | 228 | ||||||||||||
Preopening costs | 3,051 | 4,644 | 15,685 | 9,558 | ||||||||||||
Depreciation and amortization | 8,610 | 1,918 | 31,092 | 7,930 | ||||||||||||
Loss on disposal of assets | — | 39 | 7 | 42 | ||||||||||||
65,156 | 39,316 | 242,222 | 150,598 | |||||||||||||
Operating (loss) income | (5,127 | ) | (3,234 | ) | (1,162 | ) | 12,683 | |||||||||
Other (expense) income | ||||||||||||||||
Interest expense, net | (6,658 | ) | (3,763 | ) | (22,977 | ) | (22,988 | ) | ||||||||
Loss on modification of debt | — | — | — | (4,530 | ) | |||||||||||
Gain on settlements | — | — | 384 | — | ||||||||||||
(6,658 | ) | (3,763 | ) | (22,593 | ) | (27,518 | ) | |||||||||
Loss before income taxes | (11,785 | ) | (6,997 | ) | (23,755 | ) | (14,835 | ) | ||||||||
Income tax expense (benefit) | 697 | (15 | ) | 1,149 | (31 | ) | ||||||||||
Net loss | $ | (12,482 | ) | $ | (6,982 | ) | $ | (24,904 | ) | $ | (14,804 | ) | ||||
Basic loss per share | $ | (0.36 | ) | $ | (0.20 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
Diluted loss per share | $ | (0.36 | ) | $ | (0.20 | ) | $ | (0.72 | ) | $ | (0.43 | ) | ||||
Basic weighted average number of common shares outstanding | 34,588 | 34,401 | 34,520 | 34,355 | ||||||||||||
Diluted weighted average number of common shares outstanding | 34,588 | 34,401 | 34,520 | 34,355 | ||||||||||||
Supplemental Information
Segment Revenues, Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | ||||||||||||||||
Midwest & South | $ | 49,094 | $ | 27,451 | $ | 192,358 | $ | 119,950 | ||||||||
West | 8,588 | 7,534 | 35,888 | 36,135 | ||||||||||||
Contracted Sports Wagering | 2,347 | 1,097 | 12,814 | 7,196 | ||||||||||||
$ | 60,029 | $ | 36,082 | $ | 241,060 | $ | 163,281 | |||||||||
Adjusted Segment EBITDA(1) and Adjusted EBITDA | ||||||||||||||||
Midwest & South | $ | 7,198 | $ | 4,560 | $ | 39,028 | $ | 26,376 | ||||||||
West | (130 | ) | (287 | ) | 2,408 | 4,220 | ||||||||||
Contracted Sports Wagering | 1,290 | 1,079 | 11,663 | 7,127 | ||||||||||||
Adjusted Segment EBITDA | 8,358 | 5,352 | 53,099 | 37,723 | ||||||||||||
Corporate | (1,063 | ) | (1,459 | ) | (4,542 | ) | (5,589 | ) | ||||||||
Adjusted EBITDA | $ | 7,295 | $ | 3,893 | $ | 48,557 | $ | 32,134 |
__________
(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.
Supplemental Information
Same-store Revenues and Adjusted Segment EBITDA
(In thousands, Unaudited)
Three Months Ended | Year Ended | ||||||||||||||||||||
Increase / | Increase / | ||||||||||||||||||||
Reporting segments | 2023 | 2022 | (Decrease) | 2023 | 2022 | (Decrease) | |||||||||||||||
Midwest & South | |||||||||||||||||||||
Midwest & South same-store total revenues(1) | $ | 26,744 | $ | 27,451 | (2.6 | ) | % | $ | 115,371 | $ | 119,950 | (3.8 | ) | % | |||||||
22,350 | — | N.M. | 76,987 | — | N.M. | ||||||||||||||||
Midwest & South total revenues | $ | 49,094 | $ | 27,451 | 78.8 | % | $ | 192,358 | $ | 119,950 | 60.4 | % | |||||||||
Midwest & South same-store Adjusted Segment EBITDA(1) | $ | 3,280 | $ | 4,560 | (28.1 | ) | % | $ | 20,619 | $ | 26,376 | (21.8 | ) | % | |||||||
3,918 | — | N.M. | 18,409 | — | N.M. | ||||||||||||||||
Midwest & South Adjusted Segment EBITDA | $ | 7,198 | $ | 4,560 | 57.9 | % | $ | 39,028 | $ | 26,376 | 48.0 | % | |||||||||
Contracted Sports Wagering | |||||||||||||||||||||
Contracted Sports Wagering same-store total revenues(2) | $ | 841 | $ | 1,097 | (23.3 | ) | % | $ | 4,773 | $ | 5,555 | (14.1 | ) | % | |||||||
Accelerated revenues due to contract terminations(3) | — | — | N.M. | 5,794 | 1,641 | 253.1 | % | ||||||||||||||
1,506 | — | N.M. | 2,247 | — | N.M. | ||||||||||||||||
Contracted Sports Wagering total revenues | $ | 2,347 | $ | 1,097 | 113.9 | % | $ | 12,814 | $ | 7,196 | 78.1 | % | |||||||||
Contracted Sports Wagering same-store Adjusted Segment EBITDA(2) | $ | (140 | ) | $ | 1,079 | (113.0 | ) | % | $ | 3,717 | $ | 5,486 | (32.2 | ) | % | ||||||
Accelerated revenues due to contract terminations(3) | — | — | N.M. | 5,794 | 1,641 | 253.1 | % | ||||||||||||||
1,430 | — | N.M. | 2,152 | — | N.M. | ||||||||||||||||
Contracted Sports Wagering Adjusted Segment EBITDA | $ | 1,290 | $ | 1,079 | 19.6 | % | $ | 11,663 | $ | 7,127 | 63.6 | % |
__________
(1) Same-store operations exclude results from
(2) Same-store operations exclude results from
(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.
Supplemental Information
Reconciliation of Net Loss and Operating Income (Loss) to Adjusted EBITDA
(In thousands, Unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net loss | $ | (12,482 | ) | $ | (6,982 | ) | $ | (24,904 | ) | $ | (14,804 | ) | |||
Income tax expense (benefit) | 697 | (15 | ) | 1,149 | (31 | ) | |||||||||
Interest expense, net | 6,658 | 3,763 | 22,977 | 22,988 | |||||||||||
Loss on modification of debt | — | — | — | 4,530 | |||||||||||
Gain on settlements | — | — | (384 | ) | — | ||||||||||
Operating (loss) income | (5,127 | ) | (3,234 | ) | (1,162 | ) | 12,683 | ||||||||
Project development costs, net | 8 | 195 | 53 | 228 | |||||||||||
Preopening costs | 3,051 | 4,644 | 15,685 | 9,558 | |||||||||||
Depreciation and amortization | 8,610 | 1,918 | 31,092 | 7,930 | |||||||||||
Loss on disposal of assets | — | 39 | 7 | 42 | |||||||||||
Stock-based compensation | 753 | 331 | 2,882 | 1,693 | |||||||||||
Adjusted EBITDA | $ | 7,295 | $ | 3,893 | $ | 48,557 | $ | 32,134 |
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
Three Months Ended | ||||||||||||||||||||
Adjusted | ||||||||||||||||||||
Segment | ||||||||||||||||||||
Operating | Depreciation | Project | Stock- | EBITDA and | ||||||||||||||||
Income | and | Development | Preopening | Based | Adjusted | |||||||||||||||
(Loss) | Amortization | Costs | Costs | Compensation | EBITDA | |||||||||||||||
Reporting segments | ||||||||||||||||||||
Midwest & South | $ | (894 | ) | $ | 7,953 | $ | — | $ | 139 | $ | — | $ | 7,198 | |||||||
West | (3,669 | ) | 627 | — | 2,912 | — | (130 | ) | ||||||||||||
Contracted Sports Wagering | 1,290 | — | — | — | — | 1,290 | ||||||||||||||
(3,273 | ) | 8,580 | — | 3,051 | — | 8,358 | ||||||||||||||
Other operations | ||||||||||||||||||||
Corporate | (1,854 | ) | 30 | 8 | — | 753 | (1,063 | ) | ||||||||||||
$ | (5,127 | ) | $ | 8,610 | $ | 8 | $ | 3,051 | $ | 753 | $ | 7,295 |
Three Months Ended | |||||||||||||||||||||||
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 | $ | (1,035 | ) | $ | 1,318 | $ | 39 | $ | — | $ | 4,238 | $ | — | $ | 4,560 | ||||||||
West | (1,260 | ) | 567 | — | — | 406 | — | (287 | ) | ||||||||||||||
Contracted Sports Wagering | 1,079 | — | — | — | — | — | 1,079 | ||||||||||||||||
(1,216 | ) | 1,885 | 39 | — | 4,644 | — | 5,352 | ||||||||||||||||
Other operations | |||||||||||||||||||||||
Corporate | (2,018 | ) | 33 | — | 195 | — | 331 | (1,459 | ) | ||||||||||||||
$ | (3,234 | ) | $ | 1,918 | $ | 39 | $ | 195 | $ | 4,644 | $ | 331 | $ | 3,893 |
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Segment EBITDA and Adjusted EBITDA
(In thousands, Unaudited)
Year Ended | |||||||||||||||||||||||
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 | $ | 428 | $ | 28,593 | $ | 7 | $ | — | $ | 10,000 | $ | — | $ | 39,028 | |||||||||
West | (5,654 | ) | 2,377 | — | — | 5,685 | — | 2,408 | |||||||||||||||
Contracted Sports Wagering | 11,663 | — | — | — | — | — | 11,663 | ||||||||||||||||
6,437 | 30,970 | 7 | — | 15,685 | — | 53,099 | |||||||||||||||||
Other operations | |||||||||||||||||||||||
Corporate | (7,599 | ) | 122 | — | 53 | — | 2,882 | (4,542 | ) | ||||||||||||||
$ | (1,162 | ) | $ | 31,092 | $ | 7 | $ | 53 | $ | 15,685 | $ | 2,882 | $ | 48,557 |
Year Ended | ||||||||||||||||||||||||
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 | $ | 13,053 | $ | 5,150 | $ | 47 | $ | — | $ | 8,126 | $ | — | $ | 26,376 | ||||||||||
West | 394 | 2,399 | (5 | ) | — | 1,432 | — | 4,220 | ||||||||||||||||
Wagering | 7,127 | — | — | — | — | — | 7,127 | |||||||||||||||||
20,574 | 7,549 | 42 | — | 9,558 | — | 37,723 | ||||||||||||||||||
Other operations | ||||||||||||||||||||||||
Corporate | (7,891 | ) | 381 | — | 228 | — | 1,693 | (5,589 | ) | |||||||||||||||
$ | 12,683 | $ | 7,930 | $ | 42 | $ | 228 | $ | 9,558 | $ | 1,693 | $ | 32,134 |
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
About
Contact:Lewis Fanger , Chief Financial OfficerFull House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
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2024 GlobeNewswire, Inc., source