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FULL HOUSE RESORTS INC (FLL)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue rose 21.5% year over year to $73.0M, driven by American Place ramp (+27.5% revenue YoY) and Chamonix completion, while Adjusted EBITDA increased 42% to $10.4M; diluted EPS was $(0.35) versus $(0.36) YoY .
  • Midwest & South segment grew revenue 12.1% and Adjusted Segment EBITDA 46.3% YoY, with American Place delivering $28.5M revenue and $6.7M Adjusted Property EBITDA in the quarter .
  • West segment revenue rose 87.2% YoY with Chamonix fully opened, but early operational inefficiencies and snowy weather reduced segment EBITDA to $(3.2)M; management is refocusing on profitability and installed a new GM .
  • Liquidity: $40.2M cash; debt consists of $450.0M senior secured notes due 2028 (callable at 102.063% of par) and $27.0M drawn on revolver; revolver maturity extended to Jan 1, 2027 .
  • Catalysts: Illinois Supreme Court ruling clears path for financing and breaking ground on permanent American Place (~$325M project; management expects no equity financing), plus operational improvements at Chamonix and database marketing upgrades; Street estimate comparisons were unavailable in this session .

What Went Well and What Went Wrong

What Went Well

  • American Place continued strong ramp: Q4 revenue +27.5% YoY to $28.5M; Adjusted Property EBITDA +71.9% to $6.7M, reflecting service quality and market share gains; recognized in Chicago Tribune Top Workplaces .
  • Consolidated Q4 Adjusted EBITDA +42% YoY to $10.4M; Midwest & South segment Adjusted Segment EBITDA +46.3% YoY to $10.5M on American Place strength .
  • Strategic progress: Illinois Supreme Court decision confirms Waukegan license, enabling financing for permanent American Place; management reiterated “no equity” plan and confidence in debt market solutions .
    Quote: “We are very intent on doing this without any issuance of equity whatsoever… We think we can do this all in the debt markets on very favorable terms.”

What Went Wrong

  • West segment operating losses as Chamonix ramps: Q4 West Adjusted Segment EBITDA fell to $(3.2)M despite revenue growth, citing opening inefficiencies and snowy weather .
  • Elevated interest expense weighing on EPS: Q4 net interest expense rose to $10.9M from $6.7M YoY, contributing to diluted loss per share of $(0.35) .
  • Contracted Sports Wagering revenue down due to fewer active skins; although Q4 Adjusted Segment EBITDA benefited from a $1.2M recovery settlement, run-rate visibility remains limited with partners exiting CO/IN in 2025 .

Financial Results

Quarterly Sequential Comparison

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$73.492 $75.687 $72.962
Diluted EPS ($USD)$(0.25) $(0.24) $(0.35)
Adjusted EBITDA ($USD Millions)$14.141 $11.742 $10.356
Operating Income (Loss) ($USD Millions)$2.315 $2.449 $(1.408)

Year-over-Year Quarterly Comparison

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$60.029 $72.962
Diluted EPS ($USD)$(0.36) $(0.35)
Adjusted EBITDA ($USD Millions)$7.295 $10.356
Operating Income (Loss) ($USD Millions)$(5.127) $(1.408)

Segment Breakdown (Revenue and Adjusted Segment EBITDA)

SegmentQ4 2023 Revenue ($M)Q3 2024 Revenue ($M)Q4 2024 Revenue ($M)Q4 2023 Adj. Seg. EBITDA ($M)Q3 2024 Adj. Seg. EBITDA ($M)Q4 2024 Adj. Seg. EBITDA ($M)
Midwest & South$49.094 $54.510 $55.026 $7.198 $10.249 $10.530
West$8.588 $19.387 $16.078 $(0.130) $1.198 $(3.229)
Contracted Sports Wagering$2.347 $1.790 $1.858 $1.290 $2.037 $2.954

KPIs and Operational Metrics

KPIQ2 2024Q3 2024Q4 2024
American Place Revenue ($M)$27.246 $28.125 $28.487
American Place Adjusted Property EBITDA ($M)$7.585 $7.706 $6.736
West Segment Revenue ($M)$15.151 $19.387 $16.078
Contracted Sports Wagering Revenue ($M)$2.883 $1.790 $1.858
Chamonix Market Share (Q4, %)N/AN/A26.9%
Recovery Settlement in Sports Wagering ($M)N/A~$2.1M Indiana settlement in Q3 $1.2M Colorado recovery in Q4
Cash & Cash Equivalents ($M)N/A$33.6 (9/30/24) $40.2 (12/31/24)
Debt SummaryN/A$450.0M notes; $27.0M revolver (9/30/24) $450.0M notes (callable 102.063%); $27.0M revolver; revolver maturity to 1/1/27

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Permanent American Place – Project CostConstruction phase~$300–$325M discussed; timing contingent on litigation (Q3) ~$325M; break ground later 2025; target ready by Aug 2027; finance via debt, no equity Clarified timeline; reiterated financing approach
Corporate Expense Run-rateFY 2025Not explicitly guided prior~$6M annual (note Q4 had reversals) New / clarified
CapEx (ex-American Place)FY 2025Not explicitly guided prior~$7M total; ~$5M maintenance; ~$2M Italian restaurant at Bronco Billy’s New / clarified
American Place Early Spend2H 2025Not previously quantified~$10M architectural fees; potentially ~$20M in 2H (dependent on financing) New / quantified
Revolving Credit Facility MaturityFacility terms3/31/2026 [implied prior terms]Extended to 1/1/2027 Extended
Stockman’s Asset SaleClosing timelineReal property closed; operating asset sale pending approvals (Q3) Operating assets expected to close “in coming weeks” post approvals Maintained with near-term timing

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
American Place ramp & permanent financingStrong ramp; Q2 AP Rev $27.2M; APEBITDA $7.6M; design work continuing AP Rev $28.1M; litigation delaying permanent; comp: Rockford permanent revenue +139% YoY Sept; confidence in permanent AP Rev $28.5M; +27.5% YoY; Supreme Court ruling clears path; “no equity” financing; break ground later 2025 Improving clarity; strong momentum
Chamonix operations & marketingPhased opening; amenities ramp; occupancy rising; spa/pool opened Grand opening; broader advertising commencing; West rev +74.9% YoY; early inefficiencies West rev +87.2% YoY; targeted cost fixes; new GM; focus on tables, database marketing; market share 26.9% Transitioning from build-out to optimization
Tariffs/supply chain impactN/AN/ADesigning permanent AP assuming higher material costs; not hedging; thoughtful design to mitigate Risk-aware cost planning
Indiana license relocation (Rising Star)N/AExploring relocation; legislative process noted; precedents (Gary, Terre Haute) Senate study bill; pursuing relocation over sessions; new GM at Rising Star Longer-term optionality
Contracted sports wageringQ2 accelerated revenue $0.9M due to CO skin termination; settlement expected Q3 Q3 Rev/EBITDA impacted by terminations/settlement; Illinois ramp Q4 $1.2M recovery settlement; notices of operator exits in CO/IN; long-term run-rate concentrated in IL Mixed; consolidation to IL partner
Regional trends (Chicago/Denver)N/AMarketing starting; storms affected Silver Slipper Strong AP January +34% YoY; Denver/Southern suburbs lighting up; aim for mid-$10M monthly AP GGR Positive demand signals

Management Commentary

  • Financing posture: “There will be no equity involved at these prices… we think we can do this all in the debt markets on very favorable terms.”
  • Permanent AP economics: “If we only do the average, it would be about $200 million in revenue… close to $100 million in EBDIT [on casino revenue].”
  • Chamonix earnings potential: “I’m still very convinced it will make $50 million a year at some point,” citing Black Hawk comps and demographic reach .
  • Operational fixes at Chamonix: “We lost $1.5 million on that buffet… spending $100 a cover and charging $45… we won’t do stupid things like that anymore,” and focus on table games, baccarat, dealer staffing .
  • Market share: “Our market share in the fourth quarter was 26.9%… we more than doubled… without hitting anyone in the market” .

Q&A Highlights

  • American Place margins: email marketing replacing physical mail; aiming for >$10.5M monthly gaming revenue; pathway to ~$40M EBITDA as revenue scales .
  • Sports wagering skins: Illinois run-rate ~$5.6M including amortization of upfront market access fee; partners exiting CO/IN in 2025; limited probability of adding skins beyond Circa .
  • Tariffs/materials: No hedging currently; design incorporating higher cost assumptions; avoiding misplacement of mechanicals to enable future expansion .
  • M&A and long-term model: CEO’s internal model suggests significant upside by 2030 via execution, caution on acquisitions; emphasis on leverage-driven growth and asset quality .
  • CapEx: ~$7M ex-American Place in 2025; American Place architectural fees ~$10M; potentially ~$20M in 2H 2025 depending on financing .

Estimates Context

  • Wall Street consensus estimates (S&P Global) were unavailable in this session due to a system limitation; as a result, “vs. estimates” comparisons cannot be assessed. Where estimates may need to adjust: upward bias to revenue trajectory at American Place (January +34% YoY cited) and improved West profitability as Chamonix optimization progresses; interest expense remains a headwind to EPS .

Key Takeaways for Investors

  • American Place is the key earnings driver; permanent facility plan de-risked by Illinois Supreme Court ruling; financing to be debt-only, a potential stock positive on dilution avoidance .
  • Chamonix has strong revenue growth but needs operational optimization; new GM and tactical fixes (table games, F&B rationalization, marketing/database upgrades) target margin inflection through 2025 .
  • Near-term EPS constrained by interest expense; deleveraging or refinancing alongside permanent AP financing could be a medium-term catalyst .
  • Contracted sports wagering shifts to Illinois concentration; expect volatility near term from CO/IN exits, but settlement recoveries provide episodic offsets .
  • Liquidity and revolver extension support buildout timeline; breaking ground in 2025 with major spend weighted to 2H 2026–1H 2027 aligns with temporary authorization expiry .
  • Narrative drivers: “no equity” stance, permanent AP timeline clarity, and demonstrable operational improvements at Chamonix should dominate stock reaction; watch monthly Illinois/Colorado state reports for continued momentum .

Appendix: Additional Q4 Data Points

  • Consolidated Q4 revenue mix: Casino $54.406M; F&B $10.599M; Hotel $4.422M; Other ops incl. sports wagering $3.535M .
  • Q4 operating expenses: SG&A $27.163M; depreciation & amortization $10.657M; preopening costs $0.002M .
  • Same-store vs AP contribution (Q4): Midwest & South same-store revenue $26.539M; American Place $28.487M; same-store Adj. Segment EBITDA $3.794M; American Place $6.736M .