Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended: December 31, 2022 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ Commission File No. 001-32583 FULL HOUSE RESORTS, INC. (Exact name of registrant as specified in its charter) Delaware 13-3391527 (State or Other ...

Full House Resorts, Inc. (NASDAQ:FLL) Q4 2022 Results Conference Call March 7, 2023 4:30 PM ET Company Participants Lewis Fanger - Chief Financial Officer Daniel Lee - President and Chief Executive Officer Conference Call Participants David Bain - B. Riley Securities Ryan Sigdahl - Capital Group Chad Beynon - Macquarie Edward Engel - ROTH MKM Jordan Bender - JMP Securities John DeCree - CBRE Operator Greetings, and welcome to the Full House Resorts Inc., Fourth Quarter Earnings Call. At this time, all parti ...

Financial Data and Key Metrics Changes - The company reported a significant improvement in property margins, increasing from approximately 13.5% in 2019 to about 25.5% year-to-date [29] - The company experienced a net income impact due to pre-opening costs of about $2.5 million, which is considered an investment for future net income [19] Business Line Data and Key Metrics Changes - The company is preparing to open the Waukegan casino, which is expected to significantly increase revenue, as existing casinos in the area generate substantial revenue [6][7] - The Bronco Billy's property has been operating with reduced gaming capacity due to refurbishments, impacting its financial performance [17] Market Data and Key Metrics Changes - The company noted that existing casinos in the vicinity of Waukegan are generating approximately $1.2 billion in revenue, indicating a strong market potential [6][7] - The company is facing competition from new entrants in the market, particularly in Mississippi and Louisiana, which has affected some of its gaming win [25][26] Company Strategy and Development Direction - The company is focused on opening the Waukegan casino and the Chamonix project, which are seen as critical to future growth [5][28] - The company is also exploring opportunities in online sports betting and online gambling, anticipating future legalization in their operating states [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming openings and the potential for growth, citing strong local demographics and market conditions [48][49] - The company is preparing for potential challenges in the macroeconomic environment, including inflation and competition, but remains confident in its growth trajectory [54][55] Other Important Information - The company has a strong financial position with fixed-rate debt and does not require immediate financing, allowing it to focus on its upcoming projects [58][59] - The company is actively hiring for the Waukegan casino, facing challenges in staffing due to the number of table games [11] Q&A Session Summary Question: What are the major items determining the Waukegan opening timeline? - Management emphasized the importance of ensuring all systems and staffing are ready before opening, with a likely opening in January [38][41] Question: Are there any macroeconomic factors affecting the return calculus? - Management expressed increased optimism based on local market performance and population growth, indicating a favorable outlook for both Waukegan and Chamonix [48][49] Question: Can you provide insights on CapEx for the quarter? - The company reported spending approximately $34 million at Chamonix and $15 million at Waukegan, with significant expenditures expected in the upcoming quarter [61][62] Question: What trends are observed in the current business? - Management noted a slight decline in lower-tier customer play but emphasized that higher-tier customers are spending similarly, with operational costs impacting margins [65][66]

Company Operations - Full House Resorts operates five casinos and is constructing two additional properties: Chamonix Casino Hotel in Colorado and The Temporary in Illinois[120]. - The company has seven permitted sports wagering "skins," with five contracted and four currently operational as of September 30, 2022[120]. - An agreement with Circa Sports was established to develop and manage on-site sportsbooks at The Temporary and American Place, with a non-refundable market access fee of $5 million received[133]. Financial Performance - Consolidated total revenues decreased by $5.8 million (12.4%) for the three months ended September 30, 2022, and by $9.7 million (7.1%) for the nine months ended September 30, 2022, primarily due to the absence of government stimulus programs and competitive pressures from online sports wagering[144]. - Operating expenses increased by $2.9 million (8.0%) for the three months and by $6.4 million (6.1%) for the nine months ended September 30, 2022, mainly due to preopening costs for new projects and higher insurance and food costs[145]. - Net loss for the three months ended September 30, 2022, was $(3,577) thousand compared to a net income of $4,619 thousand in the prior year, representing a decrease of 177.4%[144]. - Adjusted EBITDA for the three months ended September 30, 2022, was $7.8 million, compared to $13.6 million in the prior-year period[182]. - The company experienced a net loss of $3.6 million for the three months ended September 30, 2022, compared to a net income of $4.6 million in the prior-year period[182]. Revenue Breakdown - The company’s revenues are primarily derived from slot machines, table games, keno, sports betting, hotels, and food and beverage outlets[124]. - Casino revenues from slots decreased by $2,839 thousand (9.9%) for the three months and by $9,092 thousand (10.5%) for the nine months ended September 30, 2022[144]. - Non-casino revenues, net of food and beverage, decreased by $1,281 thousand (4.0%) for the three months and remained relatively stable with a decrease of $378 thousand (1.8%) for the nine months[144]. - Total revenues for the Mississippi segment decreased by 7.2% to $19,981,000 for the three months ended September 30, 2022, and by 8.4% to $62,432,000 for the nine months ended September 30, 2022, primarily due to declines in casino revenue[158]. - Total revenues for the Indiana segment decreased by 23.4% to $9,639,000 for the three months ended September 30, 2022, and by 5.3% to $30,069,000 for the nine months ended September 30, 2022[161]. - Total revenues for the Colorado segment decreased by 30.8% to $4,385,000 for the three months ended September 30, 2022, and by 31.6% to $12,732,000 for the nine months ended September 30, 2022, due to construction disruptions[166]. - Total revenues for the Nevada segment increased by 22.6% to $6,290,000 for the three months ended September 30, 2022, and by 11.6% to $15,868,000 for the nine months ended September 30, 2022[158]. Segment Performance - Adjusted Segment EBITDA for the Mississippi segment decreased by 34.7% to $4,235,000 for the three months ended September 30, 2022, and by 33.1% to $15,442,000 for the nine months ended September 30, 2022[160]. - Adjusted Segment EBITDA for the Indiana segment decreased by 64.8% to $1,343,000 for the three months ended September 30, 2022, and by 16.3% to $6,374,000 for the nine months ended September 30, 2022[165]. - Adjusted Segment EBITDA for the Colorado segment decreased by 97.7% to $36,000 for the three months ended September 30, 2022, and by 101.0% to $(49,000) for the nine months ended September 30, 2022[169]. - Adjusted Segment EBITDA for the Nevada segment increased by 48.3% to $2,280,000 for the three months ended September 30, 2022, and by 9.2% to $4,557,000 for the nine months ended September 30, 2022[160]. Costs and Expenses - Interest expense increased to $8,682 thousand for the three months ended September 30, 2022, compared to $6,557 thousand in the prior year, reflecting higher costs associated with new debt issuance[149]. - The effective income tax rate for the three months ended September 30, 2022, was (0.8%), compared to 2.0% in the prior year, primarily due to tax amortization effects and valuation allowances[152]. - Corporate expenses declined by 14.6% (or $0.2 million) and 14.0% (or $0.7 million) for the three and nine months ended September 30, 2022, primarily due to a decrease in accrued bonus compensation[179]. Future Outlook - The Temporary project is expected to open within the next three months, while the Chamonix project is anticipated to open in mid-2023, contributing to future revenue growth[145]. - The Illinois sports operations are anticipated to begin in Spring 2023, with a minimum expected revenue contribution of $5 million annually from a third-party agreement[178]. - The company plans to invest approximately $100 million in Chamonix for 2022 and $125 million in 2023, with an expected opening in mid-2023[197]. - The company plans to invest approximately $40 million in 2022 and $60 million in 2023 for The Temporary, including significant upfront gaming license payments[198]. Cash Flow and Debt - As of September 30, 2022, the company had $241.8 million in cash and equivalents, including $156.1 million in restricted cash for Chamonix's construction[188]. - Cash provided by operations during the nine months ended September 30, 2022, was $40,000, a decrease from $19.3 million in the prior-year period, primarily due to reduced revenues and income[189]. - Cash used in investing activities during the nine months ended September 30, 2022, was $117.2 million, mainly for capital expenditures related to Chamonix and The Temporary/American Place[190]. - Cash provided by financing activities during the nine months ended September 30, 2022, was $93.7 million, compared to $235.5 million in the prior-year period[191]. - Long-term debt as of September 30, 2022, was $410.0 million, with no drawn amounts under the Credit Facility[193]. - The company has significant outstanding debt and contractual obligations, with principal debt maturing in February 2028[192]. - The company expects current cash balances and available borrowing capacity to meet liquidity needs for the next 12 months[188]. Operational Challenges - The company faces significant fluctuations in quarterly operating results due to seasonality and variations in gaming hold percentages[125]. - Economic uncertainty from the COVID-19 pandemic has led to increased costs, labor shortages, and supply chain disruptions impacting operations and construction projects[128]. - The construction budget for Chamonix was revised from $180 million to approximately $250 million due to supply chain issues and inflation[197]. Internal Controls and Legal Matters - The company completed an evaluation of its disclosure controls and procedures as of September 30, 2022, concluding they are effective at a reasonable assurance level[210]. - There have been no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[212]. - The company is subject to various legal and administrative proceedings but does not expect these to have a material adverse effect on its consolidated financial position or results of operations[213].

Table of Contents | --- | --- | --- | |-----------------------------------------------|---------------------|-----------------------------------------------------| | Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | | Common Stock, $0.0001 par value per | FLL | The Nasdaq Stock Market LLC | share Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 1 ...

Full House Resorts, Inc. (NASDAQ:FLL) Q2 2022 Earning Conference Calls August 2, 2022 4:30 PM ET Company Participants Lewis Fanger - Chief Financial Officer Dan Lee - Director, President & Chief Executive Officer Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group Aaron Lee - Macquarie Group Operator Good afternoon and welcome to the Full House Resorts Second Quarter Earnings Call. Today's call is being recorded. At this time, I would now like to turn the conference over to Lewis Fanger, ...

Full House Resorts, Inc. (NASDAQ:FLL) Q1 2022 Earnings Conference Call May 9, 2022 4:30 PM ET Company Participants Dan Lee – Director, President & Chief Executive Officer Lewis Fanger – Chief Financial Officer Alex Stolyar – Senior Vice President & Chief Development Officer Conference Call Participants Ryan Sigdahl – Craig-Hallum Capital Group Chad Beynon – Macquarie Edward Engel – ROTH Capital David Levine – MidOcean Operator Good afternoon and welcome to Full House Resorts First Quarter Earnings Conferenc ...

Financial Performance - Consolidated total revenues decreased by 1.9% (or $0.8 million) to $41.423 million, primarily due to the absence of government stimulus programs and adverse hold percentages at two properties[137] - Operating expenses increased by 7.8% (or $2.6 million) to $36.120 million, driven by higher food and beverage costs and preopening costs for The Temporary[139] - Casino revenues decreased by 9.3% to $29.084 million, with slot revenues down 5.7% to $25.527 million and table game revenues down 15.3% to $3.275 million[137] - Non-casino revenues increased by 21.6% to $12.339 million, with "Other" revenues rising significantly by 99.2% to $3.649 million[137] - The company reported a net income of $110, compared to a net loss of $3,445 in the prior year, marking a 103.2% increase[137] - Adjusted EBITDA for the same period was $8,397 million, down from $10,769 million in the prior year, reflecting a decrease of approximately 22%[172] - Cash used in operations during the three months ended March 31, 2022, was $8.0 million, compared to cash provided by operations of $8.3 million in the prior-year period[177] Segment Performance - Total revenues for the Mississippi segment decreased by 4.7% to $21.3 million, with casino revenue declining by 8.5% or $1.4 million[151] - Adjusted Segment EBITDA for the Mississippi segment decreased to $6.0 million from $7.6 million in the prior year, impacted by competition from online sports wagering in Louisiana[153] - Total revenues for the Colorado segment decreased by 28.3% to $4.2 million, largely due to planned business disruptions for the Chamonix construction project[157] - Adjusted Segment EBITDA for the Colorado segment decreased by 118.7% to ($0.3 million) due to construction disruptions and increased operating expenses[161] - Total revenues for the Nevada segment increased by 1.0% to $4.4 million, driven by a 6.9% increase in slot revenue[164] - Adjusted Segment EBITDA for the Nevada segment decreased to $0.8 million from $1.2 million in the prior year, reflecting adverse table games hold and increased labor costs[165] - Contracted Sports Wagering segment revenues increased to $2.8 million from $1.0 million in the prior year, reflecting the addition of a new skin and acceleration of deferred revenue[167] Construction and Development - The company is constructing two additional properties: Chamonix Casino Hotel in Colorado and The Temporary in Illinois, expected to open in Fall 2022[117] - The construction budget for Chamonix was revised to approximately $250 million, up from $180 million, due to supply chain issues and inflation[185] - The company plans to invest approximately $125 million in Chamonix in 2022 and $100 million in 2023, with an expected opening in Q2 2023[185] - The company is expected to invest approximately $100 million throughout 2022 for The Temporary, pending regulatory approvals[186] Financing and Cash Flow - The company closed a private offering of $100 million in additional 8.25% Senior Secured Notes due 2028 to fund development and general corporate purposes[129] - Cash used in investing activities was $31.9 million, primarily for capital expenditures related to Chamonix and The Temporary, compared to $3.4 million in the prior-year period[178] - Cash provided by financing activities was $94.1 million, a decrease from $235.4 million in the prior-year period, largely due to different financing activities undertaken[179] - As of March 31, 2022, the company had $319.5 million in cash and equivalents, including $210.5 million of restricted cash for Chamonix construction[176] - Long-term debt as of March 31, 2022, was $410.0 million, with no drawn amounts under the credit facility[181] Corporate Governance and Compliance - The company completed an evaluation of its disclosure controls and procedures as of March 31, 2022, concluding they are effective at a reasonable assurance level[198] - There have been no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[200] - The company is subject to various legal and administrative proceedings but does not believe these will have a material adverse effect on its consolidated financial position[201] Economic and Market Conditions - The company anticipates ongoing impacts from COVID-19, including supply chain disruptions and inflationary pressures affecting operations and construction projects[125] - Interest expense increased to $6.4 million for the three months ended March 31, 2022, compared to $4.5 million in the prior year, primarily due to the issuance of Additional Notes in February 2022[142] - The company expects to reverse the tax benefit recognized as of March 31, 2022, in future periods as pre-tax book income offsets the year-to-date pre-tax loss[144]

Financial Performance - Casino revenues increased to $130,431,000 in 2021, up 43.7% from $90,812,000 in 2020[358] - Net income for 2021 was $11,706,000, compared to a net income of $147,000 in 2020, representing a significant increase[358] - Basic earnings per share rose to $0.36 in 2021, compared to $0.01 in 2020[358] - The company reported operating income of $37,554,000 in 2021, a substantial increase from $10,476,000 in 2020[358] - Total revenues for the Company in 2021 reached $180.159 million, with casino revenues contributing $130.431 million[515] - Adjusted Segment EBITDA for 2021 was $54.947 million, reflecting strong operational performance across segments[515] - The Company reported a net income of $11.706 million for the year, with income before income taxes at $12.141 million[515] - The Company incurred total depreciation and amortization expenses of $7.219 million in 2021[515] - Interest expense for the year was reported at $23.657 million, impacting overall profitability[515] Financial Position - Total assets increased to $473,842,000 in December 2021, up from $212,616,000 in December 2020[360] - Cash and equivalents grew to $88,721,000 in December 2021, compared to $37,698,000 in December 2020[360] - Long-term debt increased to $301,619,000 in December 2021, up from $106,832,000 in December 2020[360] - Total cash and cash equivalents as of December 31, 2021, amounted to $265.3 million, including $176.6 million of restricted cash for the Chamonix project[374] - The balance of accounts receivable reserves at the end of 2021 was $257,000, up from $176,000 in 2020, indicating a cautious approach to credit risk[522] Internal Controls and Audit - The Company maintained effective internal control over financial reporting as of December 31, 2021, based on criteria established in the Internal Control — Integrated Framework (2013) issued by COSO[338] - The audit opinion expressed by Deloitte & Touche LLP on the financial statements was unqualified, indicating no material misstatements were found[339] - The Company’s management is responsible for maintaining effective internal control over financial reporting and assessing its effectiveness[340] - The audit included evaluating the accounting principles used and significant estimates made by management, ensuring the financial statements are free of material misstatement[349] - The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[342] Tax and Deferred Assets - The Company reported a valuation allowance for its US federal and certain state deferred tax assets amounting to $9.9 million as of December 31, 2021[352] - As of December 31, 2021, the Company had federal net operating loss carryforwards totaling $14.1 million and state tax carryforwards of $86.3 million[481] - The Company recorded a valuation allowance against its deferred tax assets (DTAs) as it has not met the "more likely than not" threshold for realization[483] - The Company has $1.1 million and $0.6 million of deferred tax liabilities relating to goodwill and other indefinite-lived intangibles as of December 31, 2021, and 2020, respectively[484] - Deferred income tax asset valuation allowance decreased to $9,866,000, down from $11,108,000 in 2020, reflecting improved tax asset management[523] Strategic Initiatives and Expansion - The company plans to continue expanding its market presence and investing in new projects to drive future growth[361] - The company is developing the Chamonix Casino Hotel in Cripple Creek, Colorado, which is expected to expand its operational footprint[365] - The company plans to open a temporary casino facility named The Temporary by American Place in Waukegan, Illinois, in Summer 2022[366] - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[517] Debt and Financing - The company raised $310 million from Senior Secured Notes due 2028 and $42.9 million from an equity offering, enhancing its liquidity position[363] - The Company issued $310 million aggregate principal amount of 8.25% Senior Secured Notes due 2028, refinancing prior notes and adding approximately $8 million to unrestricted cash[434] - The Company closed a private offering of $100 million aggregate principal amount of additional 8.25% Senior Secured Notes due 2028, sold at a price of 102.0% of the principal amount[435] - The Company entered into a First Amendment to Credit Agreement, increasing the borrowing capacity from $15.0 million to $40.0 million, maturing on March 31, 2026[444] - The Company has no drawn amounts under the Credit Facility as of December 31, 2021[447] Lease and Property Management - The company recognized total lease costs of $6.808 million for 2021, an increase from $5.840 million in 2020[472] - The company purchased Carr Manor for $2.8 million, adding approximately 1.6 acres to its land ownership in Cripple Creek[476] - The company has future minimum lease payments totaling $41.625 million for operating leases and $3.748 million for financing leases[474] - The company has a finance lease for a hotel at Rising Star Casino Resort, with a purchase option based on the original cost of $7.7 million, currently netting $3.3 million[469] Stock Options and Compensation - As of December 31, 2021, the Company had 3,221,956 stock options outstanding with a weighted average exercise price of $2.19[500] - The Company recognized compensation expense of $966,000 for stock options in 2021, up from $405,000 in 2020[500] - The weighted-average grant date fair value of options granted in 2021 was $5.68, significantly up from $0.95 in 2020 and $0.94 in 2019[504] - Expected volatility for 2021 was 65.99%, an increase from 60.78% in 2020 and 46.17% in 2019[503]

Full House Resorts, Inc. (NASDAQ:FLL) Q4 2021 Earnings Conference Call March 8, 2022 4:30 PM ET Company Participants Lewis Fanger - Chief Financial Officer Dan Lee - Director, President & Chief Executive Officer Alex Stolyar - Senior Vice President & Chief Development Officer Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group Chad Beynon - Macquarie Edward Engel - ROTH Capital David Levine - MidOcean Operator Good day, ladies and gentlemen and welcome to the Full House Resorts Fourth Qua ...