Full House Resorts (FLL) Q2 2024 earnings summary

Executive summary

• Revenues rose 23.8% year-over-year to $73.5 million in Q2 2024, driven by the ramp-up at American Place and phased opening of Chamonix Casino Hotel, with both properties setting new records in occupancy and gaming revenue.

• Adjusted EBITDA increased 34.6% to $14.1 million, reflecting improved property performance, with American Place and Chamonix as key contributors.

• Net loss widened to $8.6 million, or $(0.25) per diluted share, mainly due to higher interest, preopening, and operating expenses.

• Contracted sports wagering revenue more than doubled year-over-year, aided by Illinois launch and a $0.9 million accelerated revenue from a terminated skin.

• Grand Lodge Casino lease extended by ten years to December 31, 2034, with annual rent increases.

Financial highlights

• Q2 2024 revenue: $73.5M (+23.8% YoY); Adjusted EBITDA: $14.1M (+34.6% YoY); net loss: $8.6M.

• Casino revenues reached $54.7M, food and beverage $10.4M, hotel $3.7M, and other operations $4.7M in Q2 2024.

• Interest expense nearly doubled to $11.0M in Q2 2024 due to higher debt and reduced capitalized interest.

• Cash and cash equivalents totaled $44.7M as of June 30, 2024, with $450M in senior secured notes and $27M on the revolver.

• Sports skins annual run rate is $5.6M, with a $2.05M–$2.1M settlement payment expected in Q3.

Outlook and guidance

• Chamonix construction expected to complete in Q3 2024, with final spa and jewelry store openings and focus on increasing midweek occupancy.

• Permanent American Place facility design underway, with construction planned to break ground in 2025 and major capital outlays in 2026–2027.

• Management expects current liquidity and credit facility to cover needs for the next 12 months.

• American Place targets $10.5M in monthly gaming revenue and 30%+ EBITDA margins, aiming for $40M+ annual EBITDA.

• Settlement agreement in Q3 2024 to recover $2.1M from a contracted sports wagering party, reducing future annual minimums.