Full House Resorts Announces Three Month and Full Year Results for the Period Ended December 31, 2012
Full House Resorts (NASDAQ: FLL) today announced results for the full
year ended December 31, 2012 with net income of $27.8 million or $1.49
per common share compared with net income of $2.3 million or $0.13 per
common share for the same period in 2011. Net loss attributable to the
Company for the three months ended December 31, 2012 was $0.8 million,
or $0.04 per common share, compared to net income of $0.5 million, or
$0.03 per common share, in the prior-year period. Excluding
acquisition-related costs of $1.4 million and severance expenses of
approximately $0.3 million in the fourth quarter of 2012, net income
attributable to the Company per common share in the fourth quarter of
2012 would have been $0.02.
Fourth Quarter 2012 Highlights and Subsequent Events
-
Adjusted EBITDA, as defined below, for the fourth quarter of 2012 was
$3.1 million versus $4.8 million in the prior-year period. Prior-year
period adjusted EBITDA results include $2.4 million from the Company’s
FireKeepers Casino management agreement (“GEM”), which was sold at the
end of March 2012; excluding GEM, adjusted EBITDA in the fourth
quarter of 2011 would have been $2.4 million.
-
On October 1, 2012, the Company closed on the acquisition of the
Silver Slipper Casino in Hancock County, Mississippi. For the fourth
quarter 2012, the Company recorded Silver Slipper Casino revenue of
$12.9 million and adjusted EBITDA for the same quarter was $1.9
million.
-
On February 26, 2013, the Company successfully amended the Silver
Slipper Casino land lease to extend its term to 2058 and extend the
Option to purchase to 2027, providing additional flexibility to the
Company.
-
At its Rising Star Casino Resort for the fourth quarter 2012, the
Company recorded revenue of $19.1 million compared to revenue of $21.7
million in the prior-year quarter. Rising Star adjusted EBITDA for the
fourth quarter 2012 was $1.3 million versus $2.2 million in the
prior-year quarter due to increased competition from Ohio and severe
weather in December 2012 compared to December 2011.
-
Northern Nevada casino revenue for the fourth quarter of 2012 was $4.8
million compared to $5.0 million in the prior-year period. Adjusted
EBITDA for the fourth quarter 2012 was $0.6 million, an increase from
$0.5 million in the prior-year period.
-
As of December 31, 2012, Full House Resorts had $20.6 million in cash
and $68.8 million in outstanding debt on its balance sheet.
“Our fourth quarter was challenging on many levels as we were impacted
by increased competition, difficult weather conditions compared with
last year and continued consumer weakness,” said Andre Hilliou, Chairman
and Chief Executive Officer of Full House. “Despite these challenges, we
were pleased with our overall operations. We completed our first quarter
of operations at the Silver Slipper and thus far we are impressed with
the team there. Although results for the quarter were below our internal
expectations, due to a weak overall economic environment and increased
promotional activity by our Gulf Coast competitors, we are working with
our Silver Slipper team to implement operating efficiencies and improve
performance in the near-term. We are excited about the new hotel at
Rising Star and expect it to greatly enhance the overall profitability
of the property when it is expected to open during Q4 this year.
Further, we continue to evaluate the opportunity to put a much-needed
hotel at our Silver Slipper property and hope to have some news on that
in the near future.”
Fourth Quarter 2012 Results
For the quarter ended December 31, 2012, the Company reported casino,
food and beverage, and other revenue (other than management fees) of
$36.8 million, up from $26.7 million in the prior-year period, primarily
due to the addition of the Silver Slipper Casino on October 1, 2012 and
partially offset by a $2.6 million decline in revenue from the Rising
Star Casino Resort.
Last year’s fourth quarter included approximately $5.0 million in
management fees from GEM, which the Company sold in March 2012,
resulting in no contribution to revenue or income from GEM in the fourth
quarter of 2012.
Operating expenses for the fourth quarter 2012 were $38.6 million
compared to $27.6 million in the prior-year period, primarily due to the
addition of the Silver Slipper Casino, acquisition-related costs of $1.4
million and severance costs of $0.3 million. The Company also recorded
$0.3 million of stock compensation expense during the fourth quarter of
2012 and the prior-year period.
Adjusted EBITDA, as defined below, was $3.1 million for the fourth
quarter of 2012 versus $4.8 million in the prior-year period; excluding
GEM, adjusted EBITDA in the prior-year period would have been $2.4
million.
Net loss for the fourth quarter 2012 was $0.8 million, or $0.04 per
share, compared to net income of $0.5 million, or $0.03 per common
share, in the prior-year period. The decline in the fourth quarter 2012
was primarily due to lack of contributions from GEM due to its sale in
March 2012 and acquisition-related costs, partially offset by the
addition of operating profits from the Silver Slipper Casino. Excluding
Silver Slipper Casino acquisition-related costs of $1.4 million and
severance expenses of approximately $0.3 million in the fourth quarter
of 2012, net income attributable to the Company per common share in the
fourth quarter of 2012 would have been $0.02.
Full Year 2012 Results
For the full year ended December 31, 2012, the Company reported casino,
food and beverage, and other revenue (other than management fees) of
$121.6 million, an increase from $81.3 million in the prior year,
primarily due to a full year contribution from Rising Star Casino Resort
and the Grand Lodge Casino and the addition of the Silver Slipper on
October 1, 2012. In addition, during the full year ended December 31,
2012, the Company recorded GEM management fees of $5.3 million for
FireKeepers Casino, compared to management fees of $23.3 million for the
prior year. The Company also recorded equity in net income in the prior
year from its Delaware management agreement, which expired in August
2011, of $3.3 million.
Operating expenses for the full year ended December 31, 2012 were $120.3
million compared to $84.7 million in the prior year, primarily due to
the addition of the Rising Star Casino Resort, Grand Lodge Casino and
Silver Slipper Casino. The Company also recorded $1.2 million of stock
compensation expense for the full year ended December 31, 2012, compared
to $0.7 million in the prior year.
Operating income for the full year ended December 31, 2012 was $49.6
million, compared to operating income of $19.2 million in the prior
year, due to a $41.2 million gain on sale of joint venture related to
the sale of the Company’s interest in GEM. Excluding the gain on sale,
operating income for the full year ended December 31, 2012 was $8.4
million. Adjusted EBITDA, as defined below, was $15.9 million for the
full year ended December 31, 2012, versus $21.2 million in the prior
year.
The Company reported net income attributable to the Company per common
share of $1.49 and $0.13 for the full years ended December 31, 2012 and
2011, respectively. Excluding the $41.2 million gain on sale of joint
venture, a $1.7 million pre-tax loss on debt extinguishment, $1.8
million of Silver Slipper Casino transaction-related costs, $0.3 million
of severance costs for the full year ended December 31, 2012, $4.9
million in non-cash impairment charges, and $0.7 million in acquisition
costs and other one-time expenses for the full year ended December 31,
2011, net income attributable to the Company per common share would have
been $0.19 and $0.31 for the full years ended December 31, 2012 and
2011, respectively.
Liquidity and Capital Resources
As of December 31, 2012, Full House had $20.6 million in cash and $68.8
million in outstanding debt on its balance sheet.
Conference Call Information
The Company will host a conference call and webcast today at 11:00 AM
EST. Both the call and webcast are open to the general public.
The conference call can be accessed live over the phone by dialing
888-244-2414 or for international callers by dialing 1-913-312-0733. A
replay will be available two hours after the call and can be accessed by
dialing 877-870-5176 or for international callers by dialing
1-858-384-5517; the passcode is 6452562. The replay will be available
until Wednesday, March 13, 2013. The conference call can also be
accessed live by webcast from the Company’s website at www.fullhouseresorts.com
under the investor relations section.
|
|
|
|
|
Selected unaudited Statements of Operations data for the three
months ended
December 31 (in thousands),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
|
Development/
Management
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
|
Revenues
|
|
|
$
|
4,805
|
|
$
|
19,147
|
|
$
|
12,861
|
|
|
$
|
646
|
|
|
|
$
|
-
|
|
|
|
$
|
37,459
|
|
|
|
|
|
|
Selling, general & administrative expense
|
|
|
|
1,631
|
|
|
4,651
|
|
|
4,669
|
|
|
|
-
|
|
|
|
|
1,888
|
|
|
|
|
12,839
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
202
|
|
|
733
|
|
|
1,211
|
|
|
|
-
|
|
|
|
|
2
|
|
|
|
|
2,148
|
|
|
|
|
|
|
Operating gains (losses)*
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
|
-
|
|
|
|
|
(11
|
)
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
388
|
|
|
555
|
|
|
663
|
|
|
|
(790
|
)
|
|
|
|
(1,949
|
)
|
|
|
|
(1,133
|
)
|
|
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
|
256
|
|
|
245
|
|
|
456
|
|
|
|
185
|
|
|
|
|
(1,973
|
)
|
|
|
|
(831
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
|
Development/
Management
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
|
Revenues
|
|
|
$
|
4,971
|
|
$
|
21,706
|
|
$
|
-
|
|
|
$
|
5,843
|
|
|
|
$
|
-
|
|
|
|
$
|
32,520
|
|
|
|
|
|
|
Selling, general & administrative expense
|
|
|
|
1,699
|
|
|
5,326
|
|
|
-
|
|
|
|
164
|
|
|
|
|
1,350
|
|
|
|
|
8,539
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
327
|
|
|
1,092
|
|
|
-
|
|
|
|
593
|
|
|
|
|
3
|
|
|
|
|
2,015
|
|
|
|
|
|
|
Operating gains
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
175
|
|
|
1,091
|
|
|
-
|
|
|
|
4,356
|
|
|
|
|
(690
|
)
|
|
|
|
4,932
|
|
|
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
|
116
|
|
|
37
|
|
|
-
|
|
|
|
1,534
|
|
|
|
|
(1,208
|
)
|
|
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
Selected unaudited Statements of Operations data for the full
year ended
December 31 (in thousands),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
Revenues
|
|
$
|
22,313
|
|
|
$
|
86,291
|
|
$
|
12,861
|
|
$
|
7,295
|
|
$
|
-
|
|
|
$
|
128,760
|
|
|
|
|
|
|
Selling, general & administrative expense
|
|
|
6,292
|
|
|
|
19,398
|
|
|
4,670
|
|
|
136
|
|
|
6,507
|
|
|
|
37,003
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
909
|
|
|
|
4,163
|
|
|
1,211
|
|
|
592
|
|
|
9
|
|
|
|
6,884
|
|
|
|
|
|
|
Operating gains*
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
41,189
|
|
|
-
|
|
|
|
41,189
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
3,851
|
|
|
|
5,746
|
|
|
663
|
|
|
46,196
|
|
|
(6,818
|
)
|
|
|
49,638
|
|
|
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
2,539
|
|
|
|
2,158
|
|
|
456
|
|
|
30,108
|
|
|
(7,427
|
)
|
|
|
27,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
Revenues
|
|
$
|
12,313
|
|
|
$
|
68,957
|
|
$
|
-
|
|
$
|
24,186
|
|
$
|
5
|
|
|
$
|
105,461
|
|
|
|
|
|
|
Selling, general & administrative expense
|
|
|
3,541
|
|
|
|
16,378
|
|
|
-
|
|
|
610
|
|
|
4,900
|
|
|
|
25,429
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
1,051
|
|
|
|
3,550
|
|
|
-
|
|
|
2,372
|
|
|
28
|
|
|
|
7,001
|
|
|
|
|
|
|
Operating gains (losses)*
|
|
|
(4,500
|
)
|
|
|
-
|
|
|
-
|
|
|
2,878
|
|
|
-
|
|
|
|
(1,622
|
)
|
|
|
|
|
|
Operating income (loss)
|
|
|
(3,433
|
)
|
|
|
4,240
|
|
|
-
|
|
|
23,556
|
|
|
(5,190
|
)
|
|
|
19,173
|
|
|
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
(2,266
|
)
|
|
|
1,250
|
|
|
-
|
|
|
9,079
|
|
|
(5,720
|
)
|
|
|
2,343
|
|
|
|
|
|
|
|
|
*Operating gains (losses) include impairment losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA before unrealized
gains/losses on notes receivable from tribal
governments,
and other items for the three months ended December 31 (in
thousands),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Non-Controlling Interest
|
|
|
2012
|
|
Casino Operations
Nevada
|
|
Casino Operations
Midwest
|
|
Casino Operations
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
GEM
|
|
50%
|
|
Development/
Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
388
|
|
$
|
555
|
|
|
$
|
663
|
|
$
|
(790
|
)
|
|
$
|
(1,949
|
)
|
|
$
|
(1,133
|
)
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(790
|
)
|
|
$
|
(1,133
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
310
|
|
|
|
310
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
310
|
|
|
|
Severance
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
330
|
|
|
|
330
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
330
|
|
|
|
Silver Slipper acquisition costs expensed
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
1,425
|
|
|
|
-
|
|
|
|
1,425
|
|
|
|
|
-
|
|
|
-
|
|
|
1,425
|
|
|
|
1,425
|
|
|
|
Depreciation and amortization
|
|
|
202
|
|
|
733
|
|
|
|
1,211
|
|
|
-
|
|
|
|
2
|
|
|
|
2,148
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
2,148
|
|
|
|
Gain (Loss) on sale of joint venture
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
11
|
|
|
|
-
|
|
|
|
11
|
|
|
|
|
-
|
|
|
-
|
|
|
11
|
|
|
|
11
|
|
|
|
Adjusted EBITDA
|
|
$
|
590
|
|
$
|
1,288
|
|
|
$
|
1,874
|
|
$
|
646
|
|
|
$
|
(1,307
|
)
|
|
$
|
3,091
|
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
646
|
|
|
$
|
3,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Non-Controlling Interest
|
|
|
2011*
|
|
Casino Operations
Nevada
|
|
Casino Operations
Midwest
|
|
Casino Operations
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
GEM
|
|
50%
|
|
Development/
Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
175
|
|
$
|
1,091
|
|
|
$
|
-
|
|
$
|
4,356
|
|
|
$
|
(690
|
)
|
|
$
|
4,932
|
|
|
|
$
|
4,385
|
|
$
|
2,192
|
|
$
|
2,165
|
|
|
$
|
2,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rising Star re-branding costs
|
|
|
-
|
|
|
(3
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
Rising Star acquisition costs
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
0
|
|
|
|
-
|
|
|
|
0
|
|
|
|
|
-
|
|
|
-
|
|
|
0
|
|
|
|
0
|
|
|
|
Grand Lodge acquisition costs expensed
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
0
|
|
|
|
-
|
|
|
|
0
|
|
|
|
|
-
|
|
|
-
|
|
|
0
|
|
|
|
0
|
|
|
|
Stock Compensation
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
310
|
|
|
|
310
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
310
|
|
|
|
Depreciation and amortization
|
|
|
328
|
|
|
1,092
|
|
|
|
-
|
|
|
593
|
|
|
|
3
|
|
|
|
2,016
|
|
|
|
|
431
|
|
|
216
|
|
|
377
|
|
|
|
1,800
|
|
|
|
Adjusted EBITDA
|
|
$
|
503
|
|
$
|
2,180
|
|
|
$
|
-
|
|
$
|
4,949
|
|
|
$
|
(377
|
)
|
|
$
|
7,255
|
|
|
|
$
|
4,816
|
|
$
|
2,408
|
|
$
|
2,542
|
|
|
$
|
4,847
|
|
|
*Certain minor reclassifications in prior year balances have been made
to conform to the current presentation, which had no effect on
previously reported net income.
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA before unrealized
gains/losses on notes receivable from tribal
governments,
and other items for the full year ended December 31 (in thousands),
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Non-Controlling Interest
|
|
|
2012
|
|
Casino Operations
Nevada
|
|
Casino Operations
Midwest
|
|
Casino Operations
Gulf Coast
|
|
Development/ Management
|
|
Corporate
|
|
Consolidated
|
|
|
GEM
|
|
50%
|
|
Development/ Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
3,851
|
|
|
$
|
5,746
|
|
$
|
663
|
|
$
|
46,196
|
|
|
$
|
(6,818
|
)
|
|
$
|
49,638
|
|
|
|
$
|
4,773
|
|
$
|
2,387
|
|
$
|
43,809
|
|
|
$
|
47,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
1,242
|
|
|
|
1,242
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
1,242
|
|
|
|
Severance costs
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
330
|
|
|
|
330
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
330
|
|
|
|
Silver Slipper acquisition costs expensed
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
1,558
|
|
|
|
-
|
|
|
|
1,558
|
|
|
|
|
-
|
|
|
-
|
|
|
1,558
|
|
|
|
1,558
|
|
|
|
Depreciation and amortization
|
|
|
909
|
|
|
|
4,163
|
|
|
1,211
|
|
|
594
|
|
|
|
8
|
|
|
|
6,885
|
|
|
|
|
431
|
|
|
215
|
|
|
379
|
|
|
|
6,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) on sale of joint venture
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(41,189
|
)
|
|
|
-
|
|
|
|
(41,189
|
)
|
|
|
|
-
|
|
|
-
|
|
|
(41,189
|
)
|
|
|
(41,189
|
)
|
|
|
Adjusted EBITDA
|
|
$
|
4,760
|
|
|
$
|
9,909
|
|
$
|
1,874
|
|
$
|
7,159
|
|
|
$
|
(5,238
|
)
|
|
$
|
18,464
|
|
|
|
$
|
5,204
|
|
$
|
2,602
|
|
$
|
4,557
|
|
|
$
|
15,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Non-Controlling Interest
|
|
|
2011*
|
|
Casino Operations
Nevada
|
|
Casino Operations
Midwest
|
|
Casino Operations
Gulf Coast
|
|
Development/ Management
|
|
Corporate
|
|
Consolidated
|
|
|
GEM
|
|
50%
|
|
Development/ Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
(3,433
|
)
|
|
$
|
4,240
|
|
$
|
-
|
|
$
|
23,556
|
|
|
$
|
(5,190
|
)
|
|
$
|
19,173
|
|
|
|
$
|
20,930
|
|
|
10,465
|
|
$
|
13,091
|
|
|
$
|
8,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rising Star acquisition costs expensed
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
482
|
|
|
|
-
|
|
|
|
482
|
|
|
|
|
-
|
|
|
-
|
|
|
482
|
|
|
|
482
|
|
|
|
Rising Star re-branding costs
|
|
|
-
|
|
|
|
209
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
209
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
209
|
|
|
|
Grand Lodge acquisition costs expensed
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
44
|
|
|
|
-
|
|
|
|
44
|
|
|
|
|
-
|
|
|
-
|
|
|
44
|
|
|
|
44
|
|
|
|
Impairment
|
|
|
4,500
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
4,500
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
4,500
|
|
|
|
Stock Compensation
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
724
|
|
|
|
724
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
724
|
|
|
|
Depreciation and amortization
|
|
|
1,051
|
|
|
|
3,551
|
|
|
-
|
|
|
2,372
|
|
|
|
28
|
|
|
|
7,002
|
|
|
|
|
1,724
|
|
|
862
|
|
|
1,510
|
|
|
|
6,140
|
|
|
|
Nambé note impairment
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
420
|
|
|
|
-
|
|
|
|
420
|
|
|
|
|
-
|
|
|
-
|
|
|
420
|
|
|
|
420
|
|
|
|
Unrealized loss on notes receivable, tribal governments
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
|
-
|
|
|
|
8
|
|
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
|
8
|
|
|
|
Adjusted EBITDA
|
|
$
|
2,118
|
|
|
$
|
8,000
|
|
$
|
-
|
|
$
|
26,882
|
|
|
$
|
(4,438
|
)
|
|
$
|
32,562
|
|
|
|
$
|
22,654
|
|
$
|
11,327
|
|
$
|
15,555
|
|
|
$
|
21,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain minor reclassifications in prior year balances have been made
to conform to the current presentation, which had no effect on
previously reported net income.
|
|
|
|
|
|
|
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
|
Twelve months
ended December 31,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
$
|
33,905
|
|
|
$
|
24,880
|
|
|
|
$
|
112,649
|
|
|
$
|
74,708
|
|
|
|
Food and beverage
|
|
|
|
|
2,149
|
|
|
|
1,249
|
|
|
|
|
6,223
|
|
|
|
4,517
|
|
|
|
Management fees
|
|
|
|
|
631
|
|
|
|
5,838
|
|
|
|
|
7,180
|
|
|
|
24,186
|
|
|
|
Other operations
|
|
|
|
|
774
|
|
|
|
553
|
|
|
|
|
2,708
|
|
|
|
2,050
|
|
|
|
|
|
|
|
|
37,459
|
|
|
|
32,520
|
|
|
|
|
128,760
|
|
|
|
105,461
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
|
18,548
|
|
|
|
14,310
|
|
|
|
|
62,976
|
|
|
|
42,509
|
|
|
|
Food and beverage
|
|
|
|
|
2,166
|
|
|
|
1,198
|
|
|
|
|
5,973
|
|
|
|
4,469
|
|
|
|
Other operations
|
|
|
|
|
1,396
|
|
|
|
1,459
|
|
|
|
|
5,614
|
|
|
|
4,465
|
|
|
|
Project development and acquisition costs
|
|
|
|
|
1,484
|
|
|
|
67
|
|
|
|
|
1,861
|
|
|
|
793
|
|
|
|
Selling, general and administrative
|
|
|
|
|
12,839
|
|
|
|
8,539
|
|
|
|
|
37,003
|
|
|
|
25,429
|
|
|
|
Depreciation and amortization
|
|
|
|
|
2,148
|
|
|
|
2,015
|
|
|
|
|
6,884
|
|
|
|
7,001
|
|
|
|
|
|
|
|
|
38,581
|
|
|
|
27,588
|
|
|
|
|
120,311
|
|
|
|
84,666
|
|
|
|
Operating gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of joint venture
|
|
|
|
|
(11
|
)
|
|
|
--
|
|
|
|
|
41,189
|
|
|
|
--
|
|
|
|
Equity in net income of unconsolidated joint venture, and related
guaranteed payments
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
3,306
|
|
|
|
Impairment losses
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
(4,920
|
)
|
|
|
Unrealized losses on notes receivable, tribal governments
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
(11
|
)
|
|
|
--
|
|
|
|
|
41,189
|
|
|
|
(1,622
|
)
|
|
|
Operating income (loss)
|
|
|
|
|
(1,133
|
)
|
|
|
4,932
|
|
|
|
|
49,638
|
|
|
|
19,173
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(1,926
|
)
|
|
|
(822
|
)
|
|
|
|
(2,731
|
)
|
|
|
(2,838
|
)
|
|
|
Gain (loss) on derivative instrument
|
|
|
|
|
--
|
|
|
|
50
|
|
|
|
|
8
|
|
|
|
(513
|
)
|
|
|
Other income (expense)
|
|
|
|
|
(15
|
)
|
|
|
1
|
|
|
|
|
(6
|
)
|
|
|
8
|
|
|
|
Loss on extinguishment of debt
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
(1,719
|
)
|
|
|
--
|
|
|
|
|
|
|
|
|
(1,941
|
)
|
|
|
(771
|
)
|
|
|
|
(4,448
|
)
|
|
|
(3,343
|
)
|
|
|
Income before income taxes
|
|
|
|
|
(3,074
|
)
|
|
|
4,161
|
|
|
|
|
45,190
|
|
|
|
15,830
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
(2,243
|
)
|
|
|
(1,372
|
)
|
|
|
|
15,175
|
|
|
|
3,240
|
|
|
|
Net income (loss)
|
|
|
|
|
(831
|
)
|
|
|
2,789
|
|
|
|
|
30,015
|
|
|
|
12,590
|
|
|
|
Income attributable to non-controlling interest in consolidated
joint venture
|
|
|
|
|
--
|
|
|
|
(2,310
|
)
|
|
|
|
(2,181
|
)
|
|
|
(10,247
|
)
|
|
|
Net income (loss) attributable to the Company
|
|
|
|
$
|
(831
|
)
|
|
$
|
479
|
|
|
|
$
|
27,834
|
|
|
$
|
2,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Company per common share
|
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
|
|
$
|
1.49
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
18,679,681
|
|
|
|
18,673,681
|
|
|
|
|
18,677,544
|
|
|
|
18,397,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Full House Resorts, Inc.
Full House owns, develops and manages gaming facilities. The Company
owns the Rising Star Casino Resort in Rising Sun, Indiana. The Rising
Star Casino has 40,000 square feet of gaming space with almost 1,300
slot and video poker machines and 37 table games. The property includes
a 190-room hotel, a pavilion with five food and beverage outlets, an
18-hole Scottish links golf course and a large, multi-purpose Grand
Theater for concerts and performance events as well as meetings and
conventions. The Company acquired the Silver Slipper Casino in Hancock
County, Mississippi on October 1, 2012, which has 37,000 square feet of
gaming space with almost 1,000 slot and video poker machines, 26 table
games, a poker room and the only live Keno game on the Gulf Coast. The
property includes a fine dining restaurant, buffet, quick service
restaurant and two casino bars. Full House also owns Stockman’s Casino
in Fallon, Nevada and operates the Grand Lodge Casino at the Hyatt
Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on
the north shore of Lake Tahoe under a five-year lease agreement with the
Hyatt organization. In addition, the Company has a management agreement
with the Pueblo of Pojoaque for the operations of the Buffalo Thunder
Casino and Resort in Santa Fe, New Mexico along with the Pueblo’s Cities
of Gold and Sports Bar casino facilities.
Further information about Full House Resorts can be viewed on its
website at www.fullhouseresorts.com.
Forward-looking Statements
Some of the statements made in this release are forward-looking
statements. These forward-looking statements are based upon Full House’s
current expectations and projections about future events and generally
relate to Full House’s plans, objectives and expectations for Full
House’s business. Although Full House’s management believes that the
plans and objectives expressed in these forward-looking statements are
reasonable, the outcome of such plans, objectives and expectations
involve risks and uncertainties including without limitation, regulatory
approvals, including the ability to maintain a gaming license in
Indiana, Nevada and Mississippi, financing sources and terms,
integration of acquisitions, competition and business conditions in the
gaming industry, including competition from Ohio casinos and any
possible authorization of gaming in Kentucky. 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.
