Full House Resorts, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Full House Resorts first quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 8th of 2025. I would now like to turn the conference over to Adam Campbell. Please go ahead.

Thank you. Good afternoon. Welcome to our first quarter earnings call. As always, before we begin, we remind you that today's conference call may contain forward-looking statements that we're making under the safe harbor provision of federal security laws. I would also like to remind you that the company's actual results could differ materially from the anticipated results in these forward-looking statements. Please see today's press release under the caption forward-looking statements for the discussion of risks that may affect our results. Also, we may make reference to non-GAAP measures such as adjusted EBITDA. For reconciliation of those measures, please see our website as well as the various press releases that we issue. Lastly, we are broadcasting this conference call at fullhouseresorts.com where you can find today's earnings release as well as all other SEC filings. And with that said, we're ready to go.

Good afternoon, everyone. We'll be quick with the comments today and we'll go into Q&A relatively quickly. But we do have a lot of positive things to talk about this afternoon regarding the quarter, especially at our three biggest properties. At Silver Slipper, we have Angie Trubner-Webb as our new general manager there. If you recall, she came to us from Rising Star where she did a great job in taking that property from essentially break-even and earning a pretty meaningful income out of that property for the last few years. We also have several new department heads that she's brought in over there as well. That team has found ways to grow our bottom line. Adjusted property EBITDA grew by 21% versus last year's first quarter. That's despite a small decline in property revenue. We think the bulk of those changes are occurring, and we believe that so far we have more than 2 million of annualized cost savings there. To put it in perspective, last year we did about 12, a little over 12 million of adjusted EBITDA at Silver Slipper. And we think this year we've got a very good shot of hitting the mid-teens. At Chamonix and Bronco Billy's, we also have a new general manager. Brandon Lenson is our new GM there. He previously ran some casinos for Bally's and Blackhawk. He's got his start as a gaming regulator, for what it's worth, up in Canada, so he knows that side too. And then he had several senior roles at marketing companies that specifically targeted the gaming industry. Brandon came to us late in the first quarter, so the first quarter results do not include much of his efforts yet. Revenue grew 34% in the first quarter. Expenses grew at a similar pace, and so our EBITDA was still at a little bit of a loss, but sequentially we did improve versus the fourth quarter of 2024. Now we're in a phase where we can focus on continuing to grow the business while also improving the bottom line. The revenue growth piece is simple to state, but as you guys know, it always takes time. We built a beautiful building with unparalleled amenities in our market, and we intend to use that to bring a customer to town that has historically never visited. If you ever wanted proof that we're in a very under saturated market, all you need to do is look at the market's gaming revenue. We have more than doubled our gaming market share without any meaningful impact at all to the other gaming operators. On the cost side, we've already found several million dollars of costs to take out of the system on an annualized basis. They include over $1.5 million of annual savings in the food and beverage department, a new overtime approval process that has eliminated more than 90% of our overtime costs. That adds up to more than $800,000 per year and about $350,000 of annual savings by using our own team to replenish the minibars in the rooms. On the slot side, we've found another $300,000 of savings as well, simply by switching from revenue share to flat daily fee economics for some of the lease gains that we don't own in the building. On the marketing side, we've also improved, especially on the targeting of our marketing and especially on our various social channels. That should let us be more efficient, but also allow us to continue to grow the top line. A new VP of advertising started here a few months ago, and literally we have a brand new CMO that we signed yesterday. He'll be starting next week to help further improve our marketing, starting first with Chamonix. That new CMO came to us via Isle of Capri. He was the VP of marketing there for a while, left the industry for a brief moment of time, and then most recently was head of marketing for a very large Indian casino in Southern California. At American Place, we've consistently had year-over-year growth. That continued here in the first quarter, where we had an all-time record gaming revenue month in March. We crossed $10 million for the first time, almost reached $11 million. Most of you probably saw April's gaming revenues yesterday. We did well, despite having a low hold for the month of April. We crossed 100,000 guests in our database for the first time at American Place. The pace of new names going into the database has not really slowed down in recent months. That's a good sign because it strongly suggests that we aren't done growing in our temporary casino quite yet. Two other quick notes. We completed the sale of Stockman's on April 1st, so we no longer have any relation to that property. And then on the balance sheet side, we did extend the maturity date of our revolver from March of 2026 to January of 2027. We also started voluntarily paying down some of that revolver balance with our excess cash, having recently taken the balance down to $25 million. I'm sure I forgot something. Dan, you want to clean up in there?