8-K: Full House Resorts Announces Strong Q4 and Full-Year 2024 Results Driven by American Place and Chamonix Casino Hotel

Full House Resorts reports a 21% increase in both quarterly and annual revenues, fueled by the ramp-up of American Place and the opening of Chamonix Casino Hotel.

Summary

• Full House Resorts announced its financial results for the fourth quarter and year ended December 31, 2024.
• Revenues for Q4 2024 increased by 21.5% to $73.0 million, compared to $60.0 million in the prior-year period.
• The net loss for Q4 2024 was $12.3 million, or $(0.35) per diluted common share, including $0.3 million in preopening and development costs.
• Adjusted EBITDA for Q4 2024 increased by 42.0% to $10.4 million, compared to $7.3 million in the prior-year period.
• For the full year 2024, revenues increased by 21.2% to $292.1 million, compared to $241.1 million in the prior year.
• The net loss for the full year 2024 was $40.7 million, or $(1.16) per diluted common share, including $2.8 million in preopening and development costs.
• Adjusted EBITDA for the full year 2024 was flat at $48.6 million.
• The company expects to break ground on the permanent American Place casino later this year and complete construction by August 2027.
• In January 2025, the Illinois Supreme Court ruled in favor of Full House Resorts regarding the Waukegan casino license.
• The company extended the maturity date of its revolving credit facility from March 31, 2026, to January 1, 2027, in March 2025.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook, highlighting revenue growth and strategic developments. However, the net losses and flat Adjusted EBITDA for the full year temper the overall sentiment.

Positives

• Significant revenue growth driven by American Place and Chamonix Casino Hotel.
• Strong Adjusted EBITDA growth in Q4 2024.
• Favorable ruling from the Illinois Supreme Court regarding the Waukegan casino license.
• American Place recognized in the Chicago Tribune's Top Workplaces 2024 list.
• Extension of the revolving credit facility maturity date provides financial flexibility.

Negatives

• Net losses reported for both Q4 2024 and the full year 2024.
• Adjusted EBITDA for the full year 2024 was flat.
• Elevated costs at Chamonix due to the ramp-up of operations.
• Adjusted Segment EBITDA for the West segment was negative in Q4 2024 and for the full year 2024.
• Contracted Sports Wagering segment revenues and Adjusted Segment EBITDA decreased for the full year 2024.

Risks

• The company's ability to repay its substantial indebtedness.
• The company's ability to finance the construction of the permanent American Place facility.
• Potential impacts of inflation, tariffs, and immigration policies on costs.
• Potential disruptions in supply chains for goods.
• General macroeconomic conditions.
• The company's ability to effectively manage and control expenses.
• The company's ability to complete construction at American Place on time and on budget.
• Legal or regulatory restrictions, delays, or challenges for construction projects.
• Construction risks, disputes, and cost overruns.
• Dependence on existing management.
• Competition in the gaming industry.
• Uncertainties over the development and success of expansion projects.
• The financial performance of finished projects and renovations.
• Effectiveness of expense and operating efficiencies.
• Cyber events and their impacts to operations.
• Regulatory and business conditions in the gaming industry.

Future Outlook

The company anticipates continued growth at American Place and Chamonix, with expectations for the permanent American Place casino to significantly outperform the temporary facility. They are also focused on improving profitability and sustainable growth in Colorado.

Management Comments

• Daniel R. Lee, President and Chief Executive Officer of Full House Resorts, commented that the Illinois Supreme Court ruling essentially confirmed their selection as the Waukegan licensee.
• Mr. Lee stated that while the temporary casino is performing very well, they believe the permanent casino will perform much better.
• Mr. Lee noted that Chamonix continues to impress visitors and remains poised for long-term success.
• Mr. Lee stated that Chamonix's increase in revenues primarily reflects growth in the market, proving that their feeder market is indeed underserved.

Industry Context

Full House Resorts is operating in a competitive gaming market. The company's performance is influenced by factors such as the opening of new casinos, regulatory changes, and macroeconomic conditions. The reference to the Rockford casino's performance after transitioning to a permanent facility provides a benchmark for the potential of American Place.

Comparison to Industry Standards

• The document references another gaming company in Illinois that operated a temporary casino in Rockford.
• The permanent Rockford casino's gaming revenues between September 2024 and January 2025 totaled $60 million, more than double the amount generated in its temporary facility in the prior-year period.
• This is used as an example of the potential upside for American Place when it transitions to a permanent facility.

Management Changes

Legal Proceedings

• In 2021, an unsuccessful bidder sued the City of Waukegan and the Illinois Gaming Board, alleging unfair treatment in the license selection process.
• In January 2025, the Illinois Supreme Court unanimously ruled against that unsuccessful bidder, essentially confirming Full House Resorts' selection as the Waukegan licensee.

Stakeholder Impact

• Shareholders: Potential for increased value due to revenue growth and strategic developments.
• Employees: American Place recognized as a top workplace, indicating a positive work environment.
• Customers: Improved amenities and experiences at American Place and Chamonix.
• Suppliers: Continued business relationships and potential for increased demand.
• Creditors: Extension of the revolving credit facility provides financial stability.

Next Steps

• Break ground on the permanent American Place casino later this year.
• Complete construction of the permanent American Place casino by August 2027.
• Continue to ramp up operations at Chamonix Casino Hotel.
• Close on the second part of the transaction to sell the operating assets of Stockmans Casino.
• Evaluate options for financing the permanent American Place facility.

Key Dates