Full House Resorts(FLL) - 2022 Q1 - Quarterly Report

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]