FULL HOUSE RESORTS INC Q1 FY2025 earnings call

Management Statement and Operational Highlights

• Silver Slipper: New GM Angie Trimmer Webb, new department heads, ~$2M annualized cost savings, adjusted EBITDA up 21%.
• Chamonix and Bronco Billy's: New GM Brandon Lent Lenton, revenue growth 34%, cost savings ~$3.5M, new CMO starting, marketing improvements.
• American Place: Year-over-year growth, record gaming revenue in March, crossed 100k guests in database, sold Stockman's, extended revolver maturity.
• Rising Star: Strategy to relocate to Fort Wayne/Indianapolis, legislative bill passed, study to be done by year-end, economics of relocation favorable.
• Tahoe: Good relationship with Hyatt, owner fixing the property, making good money.

Segment Performance

• Silver Slipper: Adjusted property EBITDA grew 21% vs last year's first quarter despite a small decline in property revenue. Annualized cost savings exceed $2 million. Last year's adjusted EBITDA was ~$12 million, with a goal of mid-teens this year.
• Chamonix and Bronco Billy's: New GM Brandon Lent Lenton joined late in Q1. Revenue grew 34% but expenses grew similarly, resulting in a loss. Sequentially improved from Q4 2024. Found ~$3.5 million in annualized cost savings (food & beverage, overtime, minibar, slot). A new CMO starts next week.
• American Place: Consistently had year-over-year growth. Record gaming revenue month in March, crossed $10M, almost $11M. Crossed 100,000 guests in database. Sold Stockman's on April 1. Extended revolver maturity to Jan 2027 and started paying down debt.

Guidance

• Colorado expected to be profitable in Q2, aiming for profit in 2025 and growth thereafter.
• American Place margins approaching 30%, expecting higher margins with permanent facility.
• Rising Star relocation strategy with favorable economics.
• Long-term EBITDA goals for Chamonix/Bronco Billy's, aiming for well above $20M by 2030.

Risks

• Bond market volatility affecting financing for permanent American Place.
• Seasonal fluctuations impacting revenues in certain segments.
• Political and regulatory challenges in casino relocations and expansions.

Question and Answer

Q: April and May performance in Colorado, expense outlook?

A: Dan Lee stated Q2 is seasonally better than Q1, expecting to be profitable in Q2. Found low-hanging fruit in expenses, made wholesale management changes.

Q: Strategic portfolio, Rising Star relocation?

A: Dan Lee mentioned a three-legged stool (Mississippi, Chicago, Colorado), with Rising Star planning to relocate to Fort Wayne/Indianapolis, legislative support, and favorable economics for relocation.

Q: EBITDA targets, margins at American Place?

A: Dan Lee aimed for long-term EBITDA well above $20M by 2030, and American Place margins approaching 30%, expecting higher margins with the permanent facility.

Q: Visitation frequency, spend per trip?

A: Dan Lee noted no significant change in visitation frequency, with weather (rainy Mardi Gras) and seasonal variations in other segments impacting results.

Q: Capital expectations, bond market impact?

A: Dan Lee and Lewis Fanger discussed liquidity being good, planning to refinance debt, joint ventures and REIT options, and legislative support if needed in case of bond market issues