Executive Overview

Fullstak is a casino and hospitality company that owns and operates 7 casinos across the Midwest, South, and West regions of the US. In February 2023, Fullstak opened a temporary casino called American Place in Illinois, which it can operate until 2027. In December 2023, Fullstak began opening its newest casino, Chamonix, located next to its existing Bronco Billy’s casino in Colorado. Fullstak also earns revenue from sports betting operations in Colorado, Indiana, and Illinois.

Fullstak’s financial performance improved in the first quarter of 2024 compared to the same period last year:

• Total revenue increased 40% to $69.9 million
• Operating loss narrowed from $7 million to $0.6 million
  
• Net loss was $11.3 million, similar to last year’s $11.4 million loss

The revenue growth was driven primarily by a full quarter of operations from the new American Place casino and the phased opening of Chamonix. Together these new properties contributed $29.4 million of the total $69.9 million in revenue. Fullstak’s other properties saw an 8.6% decline in gaming revenue due to weather issues and new competition.

Financial Performance by Segment

Fullstak divides its operations into three segments:

Midwest & South

• Total revenue rose 34% to $54.6 million
• Adjusted EBITDA grew 19% to $12.7 million
• The growth was entirely due to American Place, which contributed $25.8 million in revenue and $7.4 million in Adjusted EBITDA
• Fullstak’s same-store properties saw a 5% revenue decline and a 26% Adjusted EBITDA decline, caused by bad weather and new competition

West

• Total revenue increased 60% to $13 million
• Adjusted EBITDA was near breakeven compared to $0.1 million profit last year
• The phased opening of Chamonix drove revenue growth but also led to higher expenses for training and marketing
• Results were also impacted by bad weather and a 3-day power outage in Colorado

Contracted Sports Wagering

• Revenue doubled to $2.3 million
• Adjusted EBITDA rose 67% to $1.9 million
• Growth was driven by the launch of mobile sports betting in Illinois in August 2023

Cash Flow and Debt

• Fullstak used $4.4 million in operating cash flow during the quarter
• Cash spent on investing activities was $22.6 million, mostly on completing Chamonix
• Long-term debt stands at $479 million

In summary, Fullstak delivered strong revenue growth in the quarter driven by new casino openings, but higher costs and bad weather weighed on profits. The company remains highly leveraged with debt as it continues investing in expansion projects.