FULL HOUSE RESORTS ANNOUNCES FOURTH QUARTER RESULTS

- Silver Slipper’s Operating Results Grew to Record Levels in 2019

- Mobile Sports Wagering Began in Indiana in Late 2019 with One of the Company’s Three Contracted Parties;
Remaining Two Mobile “Skins” Expected to Launch in Second Quarter in Indiana

- Colorado Sports Wagering Remains On-Track to Launch in May 2020

- Indiana and Colorado Sports Wagering, When All “Skins” are Operational,
are Expected to Generate $7.0 Million of Annual Revenue Guarantees for Ten Years

- No Discernible Impact of Coronavirus Situation to Date

- Company Had $29.9 Million of Cash and Restricted Cash at Year-End;
Total Debt Outstanding was $107.9 Million

- Company Advances its Proposal for a Major New Casino in Waukegan, Illinois

LAS VEGAS, March 12, 2020 (GLOBE NEWSWIRE) -- Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter ended December 31, 2019.

Coronavirus
The Company is carefully monitoring the coronavirus situation. As of today, it knows of no confirmed cases of the virus at any of its properties. Nevertheless, it has implemented additional cleaning and disinfection procedures at each of its properties. Beginning yesterday, for the protection of its employees and customers, the Company* began testing employee temperatures with infrared monitors as they arrive for work. Any employee registering greater than 100°F is told to return home and to contact his or her usual health care provider. Yesterday, the first day of the screening procedures, the Company had zero employees reporting for work registering such a fever.

The Company is carefully monitoring the situation and will, of course, cooperate with all local health and regulatory agencies. Although this may change, to date our business activity has shown no discernible impact from either the virus or the stock market. Note that our casinos have negligible meeting and convention business and that few of our customers travel by air to visit us. Furthermore, as online sports wagering continues to ramp up over the next few months, it should contribute a significant portion of the Company’s income.

Fourth Quarter and Full Year
On a consolidated basis, net revenues in the fourth quarter of 2019 decreased 4.1% to $39.0 million from $40.7 million in the prior-year period.  Net loss for the fourth quarter of 2019 was $4.1 million, or $(0.15) per diluted common share, compared to a net loss of $1.0 million, or $(0.07) per diluted common share, 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^(a) in the 2019 fourth quarter was $2.3 million versus $3.8 million in the fourth quarter of 2018, reflecting casino downtime during the installation of new slot systems at Bronco Billy’s and Rising Star, as well as a temporary increase in marketing expenses at Rising Star.  On December 30, 2019, one of the Company’s three permitted mobile “skins” commenced operations in Indiana, thereby beginning the annual revenue guarantee related to that particular skin.

For the full year, net revenues increased 0.9% to $165.4 million in 2019 from $163.9 million in the prior year.  Net loss for 2019 was $5.8 million, or $(0.22) per diluted common share, compared to a net loss of $4.4 million, or $(0.23) per diluted common share, in the prior year.  Net loss in both periods was affected by the accounting for the fair market value of outstanding warrants, as well as a loss on the extinguishment of debt in 2018 related to the Company’s debt refinancing.  Adjusted EBITDA^(a) in 2019 was $15.9 million versus $17.7 million in 2018, reflecting incremental costs related to operating the Christmas Casino at Bronco Billy’s, in addition to the items mentioned above.  Silver Slipper’s operations continued to improve to its best year ever.

“Late in the fourth quarter, the first of the sports wagering ‘skins’ associated with our Rising Star gaming license commenced operations in Indiana,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts.  “With that launch, the first of our annual revenue guarantees also began, though it contributed to earnings for only the last two days of the quarter.  We expect the annual revenue guarantees for our two other permitted sports wagering ‘skins’ to commence operations in Indiana in the second quarter of 2020.

“Additionally, the State of Colorado continues to progress swiftly with their pending launch of sports betting.  Similar to Indiana, we are permitted three sports wagering ‘skins’ in Colorado, one ‘skin’ for each of the three Colorado gaming licenses that we hold.  When all of our sports wagering ‘skins’ in both Indiana and Colorado 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 previously noted, our sports wagering contracts have ten-year minimum terms, and all three of the contracting companies are significant operators in the gaming and/or sports book industry.  We believe that our sports wagering agreements are transformational for our company.”

Continued Mr. Lee, “Regarding existing operations, the Silver Slipper achieved new record financial results despite adverse hold in the fourth quarter.  Net revenues for 2019 increased 5.6% to a record $73.2 million and Adjusted Property EBITDA rose to $13.2 million, reflecting investments over the past several years and the launch of on-site sports wagering in 2018.  Our Northern Nevada operations were also affected by adverse hold in the fourth quarter, as well as a temporary decline in visitor activity at the nearby Naval base. 

“At both our Bronco Billy’s and Rising Star properties, our efforts to upgrade those properties temporarily affected results.  We installed new slot systems at both these properties during the fourth quarter, resulting in downtime at both casinos.  The downtime was significantly longer at Rising Star, with nearly half of the property’s slot machines offline for several weeks in November.  With the new slot systems now in place, we believe that we will be able to compete and market more effectively.  At Bronco Billy’s, we launched the Christmas Casino in late 2018 in a building located near – but not adjoining – the existing Bronco Billy’s facility.  We did this as part of a strategic decision to control an important corner in Cripple Creek.  The opening of the Christmas Casino, however, resulted in more than $1 million of incremental expenses during the year without a sufficient increase in revenues to offset it.  We are in the process of evaluating ways to reduce the cost of our Christmas Casino operations while preserving our strategic goals, including the possibility of using the space for other Christmas-related concepts.  In total, those events at Bronco Billy’s and Rising Star – along with a temporary mass marketing campaign at Rising Star – adversely affected Adjusted EBITDA by an estimated $3 million in 2019.

“Lastly,” concluded Mr. Lee, “during the fourth quarter, we advanced our proposal for a new gaming resort destination in Waukegan, Illinois, located north of Chicago.  Our American Place proposal was one of three proposals advanced by the City of Waukegan to the Illinois Gaming Board.  Over the coming months, we expect that the Illinois Gaming Board will evaluate each of the three proposals and schedule public presentations.  We look forward to presenting what we believe is the most unique and beneficial casino destination for both the City of Waukegan and the State of Illinois.”

Fourth Quarter and Full-Year 2019 Highlights and Subsequent Events

Liquidity and Capital Resources
As of December 31, 2019, the Company had $29.9 million in cash, restricted cash, and cash equivalents, as well as $107.9 million in outstanding senior secured notes.

Conference Call Information
The Company will host a conference call for investors today, March 12, 2020, at 11:00 a.m. ET (8:00 a.m. PT) to discuss its 2019 fourth quarter results. Investors can access the live audio webcast from the Company’s website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (888) 394-8218 or, for international callers, (323) 794-2591.

A replay of the conference call will be available shortly after the conclusion of the call through March 26, 2020. To access the replay, please visit www.fullhouseresorts.com.  Investors can also access the replay by dialing (844) 512-2921 or, for international callers, (412) 317-6671 and using the passcode 6716522.

* At all properties except Grand Lodge Casino at the Hyatt Regency Lake Tahoe (which is following Hyatt’s policies).

(a) Reconciliation of Non-GAAP Financial Measure
The Company utilizes Adjusted Property EBITDA, a financial measure in accordance with generally accepted accounting principles (“GAAP”), as the measure of segment profit in assessing performance and allocating resources at the reportable segment level.  Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.  The Company also utilizes Adjusted EBITDA (a non-GAAP measure), which is defined as Adjusted Property EBITDA net of corporate-related costs and expenses.

Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP, the Company believes this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity.  The Company utilizes this metric or measure internally to focus management on year-over-year changes in core operating performance, which it considers its ordinary, ongoing and customary operations and which it believes is useful information to investors.  Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations.  A version of Adjusted EBITDA (known as Consolidated EBITDA, as defined in the indenture governing the Company’s senior secured notes) is also used to determine compliance with certain covenants.

A reconciliation of Adjusted EBITDA is presented below. However, you should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities, or any other measure for determining our operating performance or liquidity that is calculated in accordance with GAAP. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

Full House Resorts, Inc.
Supplemental Information
Segment Revenues and Adjusted Property EBITDA
(In Thousands, Unaudited)

(1)   The Company utilizes Adjusted Property EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level.

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA
(In Thousands, Unaudited)

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Property EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)

Full House Resorts, Inc.
Supplemental Information
Reconciliation of Operating Income (Loss) to Adjusted Property EBITDA and Adjusted EBITDA
(In Thousands, Unaudited)

Forward-looking Statements
This press release contains statements by Full House and its officers that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Some forward-looking statements in this press release include those regarding our operating trends and expected results of operations; our future growth prospects and opportunities; the impact of our finished projects and renovations on our results of operations and ability to compete; our proposed expansion of Bronco Billy’s, our ability to obtain financing for it, and our expected returns from that project; our construction budgets, time lines and disruption expectations; expectations regarding being awarded a license by the IGB with respect to our proposal to construct and operate a casino development in Waukegan, Illinois; expectations regarding the commencement and financial impact of legalized sports wagering in Indiana and Colorado, anticipated revenues from sports wagering and related expenses, the related sports wagering agreements we have entered into and the transformational nature of such agreements; expectations regarding our taxes and tax loss carryforwards; potential effects of legislative changes in Indiana; expectations regarding our new Konami casino management system and our ability to compete and market more effectively; expectations regarding the effects of the coronavirus; and expectations regarding our ability to reduce the cost of our Christmas Casino operations while preserving our strategic goals. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Full House. Such risks include, without limitation, changes in the Company’s business strategies, interest rate risks, disruptions in our operations and loss of revenue due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as the coronavirus; the failure to obtain and/or maintain regulatory approvals (including in Colorado, Indiana, Nevada and Mississippi), the ability to obtain financing upon reasonable terms (including for projects such as the Bronco Billy’s expansion and the Waukegan proposal), the potential increase in Full House’s indebtedness due to the expansion of Bronco Billy’s, construction risks and cost overruns, dependence on existing management, competition, uncertainties over the development and success of our acquisition and expansion projects, the financial performance of our finished projects and renovations, effectiveness of expense and operating efficiencies, general macroeconomic conditions, risks related to entering into sports betting operations (including our ability to establish and maintain relationships with key partners or vendors, the ability and/or willingness of our partners to sustain sports betting operations should they experience an extended period of unprofitability, and the ability to replace existing partners or vendors on similar terms as our existing revenue guarantees), changes in guest visitation or spending patterns due to health or other concerns, and regulatory and business conditions in the gaming industry (including the possible authorization or expansion of gaming in the states we operate or nearby states). Additional information concerning potential factors that could affect Full House’s financial condition and results of operations is included in the reports Full House files with the Securities and Exchange Commission, including, but not limited to, its Form 10-K for the most recently ended fiscal year and the Company’s other periodic reports filed with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update or revise its forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those indicated in the forward-looking statements.

About Full House Resorts, Inc.
Full House Resorts owns, leases, develops and operates gaming facilities throughout the country. The Company’s properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; and Stockman’s Casino in Fallon, Nevada. The Company also operates the Grand Lodge Casino at the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada under a lease agreement with the Hyatt organization.  Further information about Full House Resorts can be viewed on its website at www.fullhouseresorts.com.  The information contained on, or that may be accessed through, our website, our Facebook page, www.BroncoBillysCasino.com or www.americanplace.us, is not incorporated by reference into, and is not a part of, this document.

Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com