Full House Resorts expected to reopen all casinos by June 14

As reported by the company, net revenues in the first quarter of 2020 decreased 23.8% to $30.9 million from $40.5 million in the prior-year period. Net loss for the first quarter of 2020 was $4.4 million, compared to a net loss of $1.6 million in the prior-year period. Net loss in both periods was affected by the accounting for the fair market value of outstanding warrants. Adjusted EBITDA in the 2020 first quarter was $1.2 million versus $3.6 million in the first quarter of 2019.

Results for the first quarter of 2020 also include $0.4 million of revenue guarantees related to a full quarter of operations for one of the company’s three permitted sports wagering websites in Indiana.
"We are now approximately two months into the shutdown of our properties," said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “These and other government-mandated closures appear to have helped slow the spread of the coronavirus. With the worst days of the pandemic hopefully behind us, we are now beginning to look forward to reopening our properties and safely welcoming back our customers and employees.

"We have spent the last several weeks of the shutdown examining many aspects of our business, from how we sanitize our properties to how we interact with and entertain our guests. We began using infrared devices to test employee temperatures prior to our casino shutdowns. We now also intend to screen guest temperatures when we reopen. We also intend to allow customers to block adjoining slot machines to ensure social distancing, and we will provide gloves, masks and hand sanitizer to our employees and guests. In some locations, we are installing dividers between our most popular slot machines. We will also continuously wipe and disinfect our slot machines, paying particular attention to high-touch surfaces, such as buttons and screens. In our restaurants, we are spacing our tables more widely apart and, where appropriate, installing separating screens.

"We also spent our weeks in shutdown to reset and relaunch the marketing programs at our Rising Star and Bronco Billy’s casinos. At both properties, we recently completed installation of a new slot system. We believe this new slot system is a huge improvement and, at Rising Star in particular, replaced a system that was 17 years old. Through the improved analytics of our new slot system, we should be able to market more effectively and efficiently to our guests, while also providing an improved guest experience."

"The likely first of our properties to reopen is also our most important property, the Silver Slipper. It appears that the Silver Slipper and other casinos in Mississippi, armed with new safety protocols, will reopen by May 22, just in time for Memorial Day weekend. Our other properties are expected to follow shortly thereafter, with Stockman’s Casino and Grand Lodge Casino expected to reopen before the end of May, Bronco Billy’s expected to reopen in early June, and Rising Star expected to reopen on June 14. Given the fluid nature of the coronavirus situation, these dates may change, but we look forward to welcoming back our guests and employees in relatively short order.

"Regarding the first quarter, we began the year well at several properties. At the Silver Slipper, our results through the end of February were ahead of the prior-year period until the arrival of coronavirus-related concerns in March. Similarly, through the end of February, financial results at our Northern Nevada operations were meaningfully ahead of the prior-year period. At both Bronco Billy’s and Rising Star, our new slot systems were ramping up. The momentum at our properties was disrupted by the coronavirus and state-mandated closure in March 2020.

"Online sports wagering made significant strides during the first quarter. In Indiana, we had our first full quarter of one of our three permitted ‘skins,’ or sports wagering websites, during the quarter. Sports wagering contributed $0.4 million to Rising Star’s financial results during the first quarter. We expect our two other websites in Indiana to launch shortly, pending the receipt of customary regulatory approvals. In Colorado, we are also permitted three sports wagering websites, and all three operators of those skins received their gaming licenses in April 2020. When all of our sports wagering websites have commenced operations – which we believe will be by the third quarter of this year – our sports wagering revenue guarantees should total at least $7.0 million per year. As we have noted, our sports wagering contracts have ten-year minimum terms, with each of our providers having two five-year extension options. Our three sports wagering providers are significant operators in the gaming and/or sportsbook industry. As mobile sports wagering ramps up, we believe it should contribute a significant portion of the Company’s income," the CEO concluded.

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