Core Insights - The article emphasizes the importance of in-depth research in the casino and gaming sector, highlighting the value of actionable insights for investors [1] - Howard Jay Klein, with 30 years of experience in major casino operations, leads a group focused on providing research for investments in the casino, online betting, and entertainment industries [2] Company Insights - Howard Jay Klein has a background with notable casinos such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace, indicating a strong foundation in the industry [2] - The House Edge, led by Klein, serves as a platform for sharing actionable research, suggesting a focus on value investing and management quality [2] Industry Insights - The casino and gaming sector is characterized by a network of intelligence that spans from customer-facing employees to senior management, indicating a comprehensive understanding of the market dynamics [2] - The article suggests that the sector is ripe for investment opportunities, particularly through informed research and analysis [1][2]

Company Leadership Changes - Full House Resorts, Inc. has promoted Lewis Fanger to President, Chief Financial Officer, and Treasurer, effective July 11, 2025 [1] - The title of President was previously held by Daniel Lee, who is the Company's Chief Executive Officer [1] Company Growth and Development - Under the leadership of Daniel Lee, Full House Resorts has transformed from a small regional casino operator to one of the fastest-growing companies in the industry over the past ten years [2] - Lewis Fanger's financial leadership has been instrumental in the company's growth, enabling improvements in existing assets and expansions through new developments such as American Place and Chamonix [2] Company Overview - Full House Resorts owns, leases, develops, and operates gaming facilities across the United States, including properties like American Place in Illinois, Silver Slipper Casino in Mississippi, and Chamonix Casino Hotel in Colorado [4]

Financial Performance - Total revenues increased by 33.8% from $44.4 million to $59.4 million[8] - The Temporary generated $20.3 million in revenue[8] - Adjusted EBITDA declined from $12.1 million to $10.5 million[8] - The Temporary contributed $4.1 million to Adjusted EBITDA in 2Q23[8] - Midwest & South total revenues increased from $32.936 million to $49.911 million[40] - Midwest & South Adjusted Segment EBITDA increased from $9.149 million to $9.391 million[40] The Temporary Operations - The Temporary's table games revenue was third in the state in July[15] - Same-store revenues for Midwest & South excluding The Temporary decreased from $32.936 million to $29.584 million[42] - Same-store Adjusted Segment EBITDA for Midwest & South excluding The Temporary decreased from $9.149 million to $5.258 million[42] Chamonix Project - The Chamonix project is a $250 million project in Cripple Creek, Colorado[21] - Opening of Chamonix is scheduled for December 26, 2023[21]

Chamonix Casino Resort - Chamonix construction is essentially complete, with the jewelry store opening recently[4] - The grand opening weekend has just concluded[4] - The first broad post-opening advertising campaign is starting this week[4, 9, 10] - Chamonix's hotel occupancy has shown strong improvement since the introduction of new amenities in May 2024[14] Financial Performance (Three Months Ended September 30, 2024 vs 2023) - Midwest & South revenues decreased from $52.553 million to $54.510 million[29] - West revenues increased from $11.085 million to $19.387 million[29] - Contracted Sports Wagering revenues decreased significantly from $7.905 million to $1.790 million[29] - Midwest & South Adjusted Segment EBITDA decreased from $11.750 million to $10.249 million[29] - West Adjusted Segment EBITDA decreased from $2.308 million to $1.198 million[29] - Contracted Sports Wagering Adjusted Segment EBITDA decreased significantly from $7.852 million to $2.037 million[29]

Core Insights - The article discusses the investment positions held by the analyst in FLL and GDEN stocks, indicating a bullish outlook on these companies [1]. Company Analysis - FLL has been identified as a stock of interest, with the analyst holding a beneficial long position, suggesting confidence in its future performance [1]. - GDEN is also highlighted as a stock in which the analyst has a long position, further indicating a positive sentiment towards its market potential [1]. Industry Context - The article does not provide specific industry-wide trends or data, focusing instead on individual stock positions and opinions [1].

Core Viewpoint - Full House Resorts, Inc. has appointed Joshua Le Duff as Senior Vice President and Chief Marketing Officer, pending customary gaming approvals [1] Group 1: Appointment Details - Joshua Le Duff has extensive marketing experience in the casino industry, previously serving as Vice President of Marketing at Pala Casino Spa Golf Resort, where he led revenue growth and improved marketing returns [2] - Le Duff has held leadership positions at Isle of Capri Casinos, supporting brand and database growth prior to its acquisition by Eldorado Resorts [2] Group 2: Compensation Structure - The Compensation Committee approved a grant of 29,940 restricted shares as an inducement equity award to Le Duff, with one-third vesting on each of May 12 for the years 2026, 2027, and 2028 [3] - The award was granted outside of the Company's 2015 Equity Incentive Plan and complies with Nasdaq Listing Rule 5635(c)(4) [3] Group 3: Company Overview - Full House Resorts owns, leases, develops, and operates gaming facilities across the United States, including properties in Illinois, Mississippi, Colorado, Indiana, and Nevada [5]

Revenue Performance - Consolidated total revenues increased by 7.3% (or $5.1 million) for the three months ended March 31, 2025, compared to the prior-year period, primarily due to the ramp-up of operations at American Place and Chamonix [138]. - Total revenues for the three months ended March 31, 2025, increased by 7.3% (or $5.1 million) compared to the same period in 2024, reaching $75.1 million [149]. - Casino revenue increased by 7.7% (or $3.1 million) for the three months ended March 31, 2025, with slot revenue up by 6.6% (or $2.2 million) and table games revenue up by 12.6% (or $1.0 million) [151]. - Casino revenues for the three months ended March 31, 2025, were $55.3 million, a 7.0% increase from $51.7 million in the prior year, with slot revenues increasing by 5.8% and table game revenues increasing by 13.5% [136]. Operating Expenses and Financial Performance - Operating expenses increased by 5.4% (or $3.8 million) for the three months ended March 31, 2025, primarily due to increased costs associated with the ramp-up of operations at American Place and Chamonix [139]. - Adjusted EBITDA for the three months ended March 31, 2025, was $11.5 million, a decrease of 7.4% compared to $12.4 million in the prior-year period [163]. - The net loss for the three months ended March 31, 2025, was $9.8 million, a 13.4% improvement from a net loss of $11.3 million in the prior year [134]. - Interest expense, net, was relatively flat at $10.3 million for the three months ended March 31, 2025, compared to $10.25 million in the prior year [142]. Segment Performance - Adjusted Segment EBITDA for the Midwest & South segment rose by 3.4% (or $0.4 million) to $13.1 million, while the West segment's Adjusted Segment EBITDA declined by $2.3 million to $(2.5) million [152][157]. - The Midwest & South segment's total revenues increased by 4.6% (or $2.5 million) due to growth at American Place, which offset declines at Silver Slipper and Rising Star [150]. - Non-casino revenue declined by 4.3% (or $0.6 million) primarily due to decreases at Silver Slipper, with food and beverage revenue down by 4.0% (or $0.3 million) and hotel revenue down by 15.3% (or $0.3 million) [151]. - Non-casino revenue in the West segment increased by 91.8% (or $2.1 million) for the three months ended March 31, 2025, largely due to the phased opening of Chamonix [156]. Cash Flow and Financing - Cash used in operations for the three months ended March 31, 2025, was $9.5 million, an increase from $4.4 million in the prior-year period [168]. - Cash used in investing activities during the same period was $2.9 million, significantly lower than $22.6 million in the prior-year period, primarily related to Chamonix construction [169]. - Cash provided by financing activities was $2.8 million for the three months ended March 31, 2025, compared to cash used of $0.5 million in the prior-year period [170]. - The company has $450.0 million in long-term debt and $30.0 million outstanding under the Credit Facility as of March 31, 2025 [173]. - The company may need additional financing for capital expenditures and plans to arrange such funding through refinancing existing debt [175]. Future Plans and Investments - Significant capital investments are expected for the permanent American Place facility, with construction potentially starting in the second half of 2025 [174]. - The temporary American Place facility opened in February 2023, and the company expects to generate a portion of the funds needed for the permanent facility internally [175]. - The company operates six casinos and benefits from seven permitted sports wagering skins across Colorado, Indiana, and Illinois [119]. - The company opened a temporary facility at American Place in February 2023, with plans for a permanent gaming facility to be built on adjoining land [119]. Tax and Regulatory Considerations - The company does not expect to pay any federal income taxes for 2025 due to tax carryforwards from prior years [145]. - The company’s operations are subject to various financial and regulatory risks that could impact future performance [172]. - Forward-looking statements indicate uncertainty regarding growth strategies and financial performance, emphasizing the potential for actual results to differ materially [182].

Financial Data and Key Metrics Changes - Adjusted property EBITDA at Silver Slipper grew by 21% year-over-year despite a slight decline in property revenue, with expectations of reaching mid-teens in adjusted EBITDA for the current year [5][6] - American Place achieved an all-time record gaming revenue month in March, crossing $10 million for the first time, with continued growth in the guest database [11][12] - The company extended the maturity date of its revolver from March 2026 to January 2027 and reduced the revolver balance to $25 million [13] Business Line Data and Key Metrics Changes - At Chamonix and Bronco Billy's, revenue grew by 34% in the first quarter, although expenses grew at a similar pace, resulting in a slight EBITDA loss [7][8] - Significant cost savings were identified across various departments, including over $1.5 million in food and beverage and $800,000 from reduced overtime costs [9][10] Market Data and Key Metrics Changes - The company has doubled its gaming market share without significantly impacting other operators, indicating a strong position in an undersaturated market [9] - The gaming revenue in the market has been affected by external factors such as weather conditions during peak periods like Mardi Gras [116] Company Strategy and Development Direction - The company is focusing on management upgrades and operational improvements across its properties, with new general managers appointed to key locations [15][84] - Plans are underway to build a permanent facility for American Place, with a target to break ground in the second half of the year [26][36] - The strategy includes relocating the Rising Star casino to capitalize on better market opportunities in Indiana [56][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in Q2 and expects continued revenue growth as properties mature [19][23] - The company is monitoring the bond market for refinancing opportunities to fund the construction of the permanent American Place [35][126] - Management acknowledged the challenges posed by competition in the sports wagering market, dominated by a few large players [67][70] Other Important Information - The company has made significant management changes to improve operations, including hiring a new Chief Marketing Officer to enhance marketing strategies [14][15] - The company is exploring various financing options for the construction of the permanent facility, including refinancing existing debt [126] Q&A Session Summary Question: Update on Colorado's performance and expenses - Management expects Q2 to be more profitable than Q1, with continued revenue growth and identified cost-saving opportunities [19][20] Question: Strategic outlook for the portfolio post Stockman's sale - The company views its three major properties as a stable foundation and is focused on optimizing operations and exploring relocation opportunities for Rising Star [52][56] Question: Expectations for sports wagering contracts - The market is dominated by a few large firms, making it challenging to replace lost contracts, but the company is actively seeking opportunities [67][70] Question: Timeline for reaching $20 million EBITDA - Management anticipates reaching $20 million in EBITDA within three to five years, with a focus on positive growth trajectories [74][76] Question: Margins at American Place - Margins are expected to remain around 30% for the temporary facility, with potential increases once the permanent facility opens [101][102] Question: Changes in customer visitation and spending - No significant changes in visitation frequency or spending patterns have been observed, although external factors like weather have impacted revenues [116][121] Question: Capital expectations and liquidity for the second half of the year - The company is in good liquidity shape and plans to refinance existing debt while monitoring cash flow for construction expenses [124][126]

Financial Data and Key Metrics Changes - Adjusted property EBITDA at Silver Slipper grew by 21% year-over-year despite a slight decline in property revenue, with expectations of reaching mid-teens in adjusted EBITDA for the current year [6][7] - American Place achieved an all-time record gaming revenue month in March, crossing $10 million for the first time, with continued growth in the guest database [12][13] - The company extended the maturity date of its revolver from March 2026 to January 2027 and reduced the revolver balance to $25 million [14] Business Line Data and Key Metrics Changes - At Chamonix and Bronco Billy's, revenue grew by 34% in the first quarter, although EBITDA remained slightly negative due to expenses growing at a similar pace [9] - Significant cost savings were identified across various departments, including over $1.5 million in food and beverage and $800,000 from reduced overtime costs [10][11] Market Data and Key Metrics Changes - The company has doubled its gaming market share without significantly impacting other operators, indicating an undersaturated market [10] - The gaming revenue in the market is expected to grow as the company continues to attract customers who historically have not visited [10] Company Strategy and Development Direction - The company is focusing on management upgrades and operational improvements across its properties, with new general managers appointed to key locations [5][16] - Plans are underway to open a permanent facility for American Place, with a target to break ground in the second half of the year [26][28] - The company is exploring relocation opportunities for Rising Star to capitalize on more favorable market conditions in larger cities [55][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in Q2 and expects continued revenue growth as properties mature [19][23] - The company is monitoring the bond market for refinancing opportunities to fund the construction of the permanent American Place [35][123] - Management acknowledged the challenges posed by tariffs but indicated potential benefits from a recession in terms of construction costs [43][44] Other Important Information - The company has completed the sale of Stockman's and is now focusing on its three primary properties [13][51] - A new Chief Marketing Officer has been hired to enhance marketing strategies, particularly in Colorado [12][15] Q&A Session Summary Question: Update on Colorado's performance and expenses - Management expects Q2 to be more profitable than Q1, with continued revenue growth and identified cost-saving opportunities [19][20] Question: Strategic outlook for the portfolio post-sale of Stockman's - The company views its three main properties as a strong foundation and is cautious about new acquisitions, focusing on existing opportunities [51][64] Question: Trajectory of sports wagering contracts - The market is dominated by a few large players, making it challenging to replace lost contracts, but the company is exploring options [66][68] Question: Timeline for reaching $20 million EBITDA - Management aims for a five-year timeline to exceed $20 million in EBITDA, with expectations of significant revenue growth from the permanent facility [72][74] Question: Confidence in new management teams - Management believes that fresh perspectives from new hires will lead to improved performance, citing past successes of new leadership [83][89] Question: Changes in customer visitation and spending - No significant changes in visitation frequency or spending have been noted, with some fluctuations attributed to weather and market conditions [110][114] Question: Capital expectations and liquidity for the second half of the year - The company is in good liquidity shape and plans to refinance existing debt while funding the construction of the permanent facility [121][123]

Financial Data and Key Metrics Changes - Adjusted property EBITDA at Silver Slipper grew by 21% year-over-year despite a slight decline in property revenue, with expectations of reaching mid-teens in adjusted EBITDA for the current year [5][6] - American Place achieved an all-time record gaming revenue month in March, crossing $10 million for the first time, with continued growth in guest database [11][12] - The company extended the maturity date of its revolver from March 2026 to January 2027 and reduced the revolver balance to $25 million [13] Business Line Data and Key Metrics Changes - At Chamonix and Bronco Billy's, revenue grew by 34% in the first quarter, although expenses grew at a similar pace, resulting in a slight EBITDA loss [7][8] - Significant cost savings were identified across various departments, including over $1.5 million in food and beverage and $800,000 from reduced overtime costs [9][10] Market Data and Key Metrics Changes - The company has doubled its gaming market share without significantly impacting other operators, indicating an undersaturated market [9] - The gaming revenue in the market has shown resilience despite challenges, with the company optimistic about future growth [11][12] Company Strategy and Development Direction - The company is focusing on management upgrades and operational improvements across its properties, with new general managers in key locations [4][15] - Plans are underway for the permanent American Place, with a target to break ground in the second half of the year, leveraging expertise from a top architectural firm [26][28] - The company is exploring opportunities for relocating Rising Star to more lucrative markets, particularly Indianapolis and Fort Wayne [55][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in Q2, with expectations for continued revenue growth and cost reductions [19][23] - The company is monitoring the bond market for financing options for the permanent American Place, with a focus on refinancing existing debt [35][123] - Management acknowledged the potential impact of economic conditions on operations but remains optimistic about the company's positioning in the market [44][46] Other Important Information - The company has made significant management changes to enhance operational efficiency and address past mismanagement issues [15][90] - The company is actively working on improving its marketing strategies to better target customers and enhance revenue [10][14] Q&A Session Summary Question: Update on Colorado's performance and expectations for Q2 - Management expects Q2 to be significantly better than Q1, with hopes of profitability driven by revenue growth and cost reductions [19][20] Question: Strategic positioning of the remaining portfolio - The company views its three major properties as a stable foundation and is considering relocation opportunities for Rising Star to capitalize on better markets [51][55] Question: Outlook for sports wagering contracts - The sports wagering market is dominated by a few major players, making it challenging for the company to secure new partnerships [65][66] Question: Expectations for EBITDA growth - Management anticipates reaching $20 million in EBITDA within five years, with a focus on positive growth trajectories [71][73] Question: Changes in customer visitation and spending - No significant changes in visitation frequency or spending patterns were noted, with some fluctuations attributed to weather conditions [110][114] Question: Capital expectations and liquidity for the second half of the year - The company is in good liquidity shape and plans to refinance its debt while monitoring cash flow as construction for the permanent facility begins [121][123]