Full House Resorts(FLL) - 2025 Q2 - Quarterly Results

Financial and Operational Highlights Consolidated revenue slightly increased, but net loss widened and Adjusted EBITDA decreased due to Chamonix's operational costs, prompting cost-saving and marketing initiatives Q2 2025 Consolidated Financial Summary | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $73.9 million | $73.5 million | +0.6% | | Net Loss | $(10.4) million | $(8.6) million | +20.9% | | Diluted Loss Per Share | $(0.29) | $(0.25) | +16.0% | | Adjusted EBITDA | $11.1 million | $14.1 million | -21.2% | - American Place Casino continued its strong growth, achieving record net revenue and operating profit in Q2 2025, driven by growing awareness in the Chicago suburbs, with future plans including adding a poker room[1][3] - A new management team at Chamonix focused on operational efficiency in Q2, identifying over $4 million in annual expense reductions, and launched revamped marketing efforts in Q3 to drive revenue growth[4] Segment Performance Analysis Midwest & South segment grew, while West and Contracted Sports Wagering segments declined due to asset sale, Chamonix inefficiencies, and prior-year accelerated revenue Midwest & South This segment showed revenue and Adjusted Segment EBITDA growth, primarily driven by American Place Casino's record performance Midwest & South Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $57.8 | $55.5 | +4.2% | | Adjusted Segment EBITDA | $12.8 | $12.3 | +3.9% | - Growth was primarily driven by American Place, where revenues rose 12.7% from Q2 2024 to an all-time property record of $30.7 million[10] West The West segment experienced revenue decline and an Adjusted Segment EBITDA loss, influenced by a casino sale and Chamonix's initial operational inefficiencies West Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $14.5 | $15.2 | -4.4% | | Adjusted Segment EBITDA | $(1.1) | $0.9 | N/A | - The revenue decrease was primarily due to the sale of Stockman's Casino in April 2025, and the Adjusted Segment EBITDA loss reflects initial inefficiencies from the ramp-up phase of Chamonix[10] Contracted Sports Wagering This segment saw significant declines in revenue and Adjusted Segment EBITDA, largely due to accelerated revenue in the prior-year period from a ceased operation Contracted Sports Wagering Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1.7 | $2.9 | -41.4% | | Adjusted Segment EBITDA | $1.6 | $2.6 | -38.5% | - The decline reflects a prior-year period that included $0.9 million of accelerated revenue from an online sports wagering "skin" that ceased operations[10] Financial Condition The company maintained a cash position of $32.1 million, with $450.0 million in senior secured notes and a reduced revolving credit facility balance Liquidity and Capital Resources as of June 30, 2025 (in millions) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $32.1 | | Senior secured notes due 2028 | $450.0 | | Outstanding revolving credit facility | $25.0 | Consolidated Financial Statements This section provides unaudited consolidated statements of operations, including detailed revenue and expense breakdowns, and reconciliations of GAAP to non-GAAP measures Consolidated Statements of Operations This sub-section details the company's unaudited consolidated statements of operations for the second quarter of 2025 and 2024 Q2 2025 Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $73,946 | $73,492 | | Casino Revenues | $56,983 | $54,685 | | Total Operating Costs | $74,020 | $71,177 | | Operating (Loss) Income | $(74) | $2,315 | | Interest Expense, net | $(10,354) | $(11,023) | | Net Loss | $(10,383) | $(8,629) | | Diluted Loss Per Share | $(0.29) | $(0.25) | Reconciliation of Non-GAAP Measures This sub-section reconciles GAAP net loss to non-GAAP Adjusted EBITDA, providing insights into core operating performance - The company uses non-GAAP measures like Adjusted EBITDA to provide supplemental information on core operating performance, excluding items such as depreciation, amortization, interest expense, taxes, and preopening costs[11][15] Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025 vs Q2 2024, in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(10,383) | $(8,629) | | Income tax (benefit) provision | (95) | (79) | | Interest expense, net | 10,354 | 11,023 | | Operating (loss) income | (74) | 2,315 | | Depreciation and amortization | 10,588 | 10,326 | | Preopening costs | — | 757 | | Stock-based compensation, net | 594 | 740 | | Other adjustments | 26 | 3 | | Adjusted EBITDA | $11,134 | $14,141 | Forward-Looking Statements and Company Information This section includes a safe harbor statement on forward-looking information, detailing inherent risks and uncertainties, and a description of the company's gaming facility portfolio - The press release contains forward-looking statements concerning growth projects, operational performance, and financing, which are subject to inherent risks and uncertainties like debt management, construction risks, and macroeconomic conditions[24] - Full House Resorts owns, leases, develops, and operates gaming facilities including American Place (Illinois), Silver Slipper (Mississippi), Chamonix and Bronco Billy's (Colorado), Rising Star (Indiana), and Grand Lodge (Nevada)[25]