Item 2.02 Results of Operations and Financial Condition
On January 19, 2022, Full House Resorts, Inc. (the "Company") issued a press
release announcing its preliminary results for the fourth quarter ended
December 31, 2021. A copy of the press release is attached hereto as
Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
On January 19, 2022, the Company issued a press release announcing updates to
its American Place temporary casino and Chamonix projects.
Regarding The Temporary by American Place, the Company plans to invest
approximately $100 million in its temporary facility, which includes significant
upfront gaming license payments and the purchase of slot machines expected to be
transferred to the permanent casino. The Company intends to finance The
Temporary with new debt and expects to open the facility in mid-2022 with
approximately 1,000 slot machines and 50 table games, subject to regulatory
approval.
Regarding Chamonix Casino Hotel, which is currently under construction in
Cripple Creek, Colorado, the Company announced revisions to the project's
budget. The revised Chamonix budget is $250 million, reflecting completion of
sub-contracting of much of its hard-dollar construction budget. The increased
construction costs reflect supply chain issues, inflation, and a difficult
construction environment. Management believes that there will not be further
budget increases. The Company has sufficient cash and resources to complete the
project at the higher budget number and is, accordingly, transferring cash to
its restricted construction cash account to fund the increased construction
costs, in accordance with its debt covenants. The Company continues to expect to
open Chamonix in the second quarter of 2023.
Forward-looking Statements
This Current Report on Form 8-K (and the exhibits attached hereto) contains
statements by the Company 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 expected results of operations;
the expected construction budgets, expected completion dates, and expected
amenities for our Chamonix, The Temporary and American Place projects and the
ability to obtain debt financing for The Temporary. Such risks include, without
limitation, our ability to repay our substantial indebtedness; potential actions
by government officials at the federal, state or local level in connection with
the COVID-19 pandemic, including, without limitation, additional shutdowns,
travel restrictions, social distancing measures or shelter-in-place orders; our
ability to effectively manage and control expenses as a result of the pandemic;
our ability to complete Chamonix, The Temporary or American Place on-time and
on-budget; changes in guest visitation or spending patterns due to COVID-19 or
other health or other concerns; a decrease in overall demand as other competing
entertainment venues continue to re-open; construction risks, disputes and cost
overruns; dependence on existing management; competition; uncertainties over the
development and success of our expansion projects; inflation and its potential
impacts on labor costs and the prices of food, construction, and other
materials; the effects of potential disruptions in the supply chains for goods,
such as food, lumber, and other materials; general macroeconomic conditions; 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
our 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, Part I, Item 1A. Risk Factors and Part II, Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations of our
Annual Report on Form 10-K for the most recently ended fiscal year and our other
periodic reports filed with the Securities and Exchange Commission. We are under
no obligation to (and expressly disclaim any such obligation to) update or
revise our 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. Therefore, you should not rely on any of
these forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
No. Description
99.1 Press Release of the Company dated January 19, 2022*
104 Cover Page Interactive Data File - the cover page XBRL tags
are embedded within the Inline XBRL document
* This exhibit related to Items 2.02 and 7.01 shall be deemed to be furnished
and not filed.
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