Full House Resorts(FLL) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2024, increased by 5.8% to $75.687 million compared to$71.543 million in the same period of 2023[126]. - Operating expenses rose by 19.7% to $73.238 million for the three months ended September 30, 2024, compared to$61.186 million in the prior year[126]. - Operating income decreased by 76.4% to $2.449 million for the three months ended September 30, 2024, down from$10.357 million in 2023[126]. - Net loss for the three months ended September 30, 2024, was $8.472 million, a decline of 284.5$4.593 million in the same period of 2023[126]. - Total revenues increased by 5.8% (or $4.1 million) for the three months ended September 30, 2024, and 21.0$38.1 million) for the nine months ended September 30, 2024, compared to the prior-year periods[130]. - Adjusted EBITDA for the three months ended September 30, 2024, was $11.7 million, down from$20.6 million in the prior-year period[165]. Revenue Breakdown - Casino revenues for slots rose by 14.1% to $47,007 thousand for the three months and by 22.4$135,609 thousand for the nine months ended September 30, 2024[127]. - Non-casino revenues from food and beverage increased by 22.2% to $11,100 thousand for the three months and by 23.0$31,272 thousand for the nine months ended September 30, 2024[127]. - The Midwest & South segment revenues increased by 3.7% to $54,510 thousand for the three months and by 14.9$164,599 thousand for the nine months ended September 30, 2024[141]. - The West segment revenues surged by 74.9% to $19,387 thousand for the three months and by 74.3$47,571 thousand for the nine months ended September 30, 2024[141]. - Same-store revenues in the Midwest & South segment declined by 7.9% (or $2.3 million) and 5.9$5.2 million) for the respective three and nine months ended September 30, 2024, attributed to adverse weather conditions[150]. Operating Expenses and EBITDA - Operating expenses increased by 19.7% (or $12.1 million) for the three months and 21.4$37.9 million) for the nine months ended September 30, 2024, primarily due to new operations at American Place and Chamonix[131]. - Adjusted Segment EBITDA decreased by 38.5% to $13,484 thousand for the three months and by 2.4$43,683 thousand for the nine months ended September 30, 2024[141]. - Adjusted Segment EBITDA for the Midwest & South segment decreased by 12.8% (or $1.5 million) for the three months ended September 30, 2024, but increased by 10.6$3.4 million) for the nine months ended September 30, 2024[153]. - Adjusted Segment EBITDA for the West segment declined by $1.1 million and$0.6 million for the respective three and nine months ended September 30, 2024, reflecting operational inefficiencies during the phased opening of Chamonix[158]. Sports Wagering - Contracted sports wagering agreements were amended in July 2024, resulting in the collection of $2.1 million in overdue payments[120]. - Contracted Sports Wagering total revenues decreased by 77.4$6.115 million) for the three months ended September 30, 2024, and by 33.8% (or $3.534 million) for the nine months ended September 30, 2024[149]. - Adjusted Segment EBITDA for Contracted Sports Wagering declined by 74.1$5.815 million) for the three months ended September 30, 2024, and by 36.9% (or $3.824 million) for the nine months ended September 30, 2024[149]. - The Illinois sports wagering agreement contributed$1.5 million to revenues and $1.4 million to Adjusted Segment EBITDA for the three months ended September 30, 2024[161]. Capital Expenditures and Cash Flow - Cash used in investing activities during the nine months ended September 30, 2024, was$37.7 million, primarily for Chamonix's construction, compared to $169.8 million in the prior year[176]. - Significant capital investments were made for Chamonix's completion, with expectations for similar investments for the permanent American Place facility[179]. - As of September 30, 2024, the company reported cash and equivalents of$33.6 million, including $7.7 million in restricted cash for Chamonix's construction[174]. - Cash used in operations for the nine months ended September 30, 2024, was$1.0 million, a decrease from cash provided by operations of $3.2 million in the prior year[175]. Corporate and Operational Developments - Corporate expenses increased by 36.1$1.7 million for the three months ended September 30, 2024, compared to $1.3 million in the prior-year period[163]. - Corporate expenses for the nine months ended September 30, 2024, rose by 55.0$5.4 million from $3.5 million in the prior-year period[163]. - The phased opening of Chamonix was completed in October 2024, with various amenities opening throughout 2024[180]. - The temporary American Place facility opened in February 2023, with operations extended to August 2027 due to legal proceedings[181]. - The company expects to internally generate funds for the permanent American Place facility but may require additional financing[181].