Full House Resorts Announces Three-Month Results for the Period Ended March 31, 2013
Full House Resorts (NASDAQ: FLL) today announced results for the
three-month period ended March 31, 2013. Net income attributable to the
Company for the three months ended March 31, 2013 was $0.6 million, or
$0.03 per common share, compared to net income of $25.8 million, or
$1.38 per common share, in the prior-year period. Excluding a $40.8
million gain on sale of the Company’s interest in Gaming Entertainment
(Michigan), LLC (“GEM”) and its FireKeepers management agreement, and a
$1.7 million pre-tax loss on debt extinguishment in the first quarter of
2012, the Company would have reported net income attributable to the
Company per common share of $0.03 for the three months ended March 31,
2012.
First Quarter 2013 Highlights
-
Adjusted EBITDA, as defined below, for the first quarter of 2013 was
$5.7 million versus $5.2 million in the prior-year period.
-
At its Silver Slipper Casino in Hancock County, Mississippi for the
first quarter 2013, the Company recorded revenue of $13.7 million and
adjusted EBITDA of $2.8 million. The Silver Slipper Casino was
acquired on October 1, 2012.
-
At its Rising Star Casino Resort for the first quarter 2013, the
Company recorded revenue of $19.6 million compared to revenue of $22.6
million in the prior-year quarter due to increased competition from
recently opened Ohio casinos. Despite the $3.0 million decline in
revenue, Rising Star adjusted EBITDA for the first quarter 2013 was
$2.7 million versus $3.1 million in the prior-year quarter due to
successful cost containment.
-
Northern Nevada casino revenue for the first quarter of 2013 was $5.3
million compared to $4.9 million in the prior-year period. Adjusted
EBITDA for the first quarter 2013 was $1.1 million, an increase from
$0.6 million in the prior-year period.
-
In February 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.
-
In April 2013, the Company announced that its lease with an affiliate
of Hyatt Hotels Corporation for the Grand Lodge Casino at Hyatt
Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada
has been extended and is now scheduled to expire on August 31, 2018.
All other terms of the lease remain unchanged.
-
As of March 31, 2013, Full House Resorts had $24.6 million in cash and
$68.8 million in outstanding debt on its balance sheet.
“We are pleased with the overall performance of our casinos in the face
of additional competition and a weak economy, as it speaks volumes of
the strength and depth of our management team,” said Andre Hilliou,
Chairman and Chief Executive Officer of Full House. “Construction on the
new third-party hotel at Rising Star is on schedule, and we expect it to
provide a boost to the property upon its opening in the fourth quarter
of this year. We are still evaluating opportunities to put a much-needed
hotel at our Silver Slipper property. Finally, we were pleased with the
recent extension of our lease for the Grand Lodge Casino, which has
performed extremely well.”
First Quarter 2013 Results
For the quarter ended March 31, 2013, the Company reported casino, food
and beverage, and other revenue (other than management fees) of $38.6
million, up from $27.5 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 $3.0 million decline in revenue from the Rising
Star Casino Resort due to increased competition.
Last year’s first quarter included approximately $5.3 million in
management fees from GEM, which the Company sold in March 2012.
Operating expenses for the first quarter 2013 were $36.0 million
compared to $27.8 million in the prior-year period, primarily due to the
addition of the Silver Slipper Casino. The Company also recorded $0.3
million of stock compensation expense in both the first quarter of 2013
and 2012.
Adjusted EBITDA, as defined below, was $5.7 million for the first
quarter of 2013 versus $5.2 million in the prior-year period; excluding
GEM, adjusted EBITDA in the prior-year period would have been $2.6
million.
Net income for the first quarter 2013 was $0.6 million, or $0.03 per
share, compared to net income of $25.8 million, or $1.38 per common
share, in the prior-year period. Excluding a $40.8 million gain on sale
of the Company’s interest in GEM and its FireKeepers management
agreement, and a $1.7 million pre-tax loss on debt extinguishment in the
first quarter of 2012, net income attributable to the Company per common
share in the first quarter of 2012 would also have been $0.03.
Liquidity and Capital Resources
As of March 31, 2013, Full House had $24.6 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 Thursday, May 9,
2013 at 11:00 AM EDT.
The conference call can be accessed live over the phone by dialing
888-389-5988 or for international callers by dialing 1-719-325-2244. 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 1376507. The replay will be available
until Thursday, May 16, 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 March 31 (in thousands),
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
2013
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
Revenues
|
|
$
|
5,325
|
|
$
|
19,614
|
|
|
$
|
13,710
|
|
$
|
477
|
|
$
|
-
|
|
|
$
|
39,126
|
|
|
|
Selling, general & administrative expense
|
|
|
1,484
|
|
|
4,405
|
|
|
|
4,606
|
|
|
-
|
|
|
1,739
|
|
|
|
12,234
|
|
|
|
Depreciation & amortization
|
|
|
180
|
|
|
747
|
|
|
|
1,281
|
|
|
-
|
|
|
2
|
|
|
|
2,210
|
|
|
|
Operating income (loss)
|
|
|
960
|
|
|
1,955
|
|
|
|
1,502
|
|
|
435
|
|
|
(1,741
|
)
|
|
|
3,111
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
634
|
|
|
965
|
|
|
|
990
|
|
|
381
|
|
|
(2,394
|
)
|
|
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
2012
|
|
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development/
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
Revenues
|
|
$
|
4,887
|
|
$
|
22,630
|
|
|
$
|
-
|
|
$
|
5,810
|
|
$
|
-
|
|
|
$
|
33,327
|
|
|
|
Selling, general & administrative expense
|
|
|
1,568
|
|
|
5,017
|
|
|
|
-
|
|
|
136
|
|
|
1,840
|
|
|
|
8,561
|
|
|
|
Depreciation & amortization
|
|
|
242
|
|
|
1,028
|
|
|
|
-
|
|
|
593
|
|
|
2
|
|
|
|
1,865
|
|
|
|
Operating gains
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
40,762
|
|
|
-
|
|
|
|
40,762
|
|
|
|
Operating income (loss)
|
|
|
358
|
|
|
2,062
|
|
|
|
-
|
|
|
45,812
|
|
|
(1,908
|
)
|
|
|
46,324
|
|
|
|
Net income (loss) attributable to the Company
|
|
|
234
|
|
|
(1,038
|
)
|
|
|
-
|
|
|
30,109
|
|
|
(3,456
|
)
|
|
|
25,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted EBITDA before unrealized gains/losses on
notes receivable from tribal governments, and other items for the three
months ended March 31 (in thousands),
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development /
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
960
|
|
$
|
1,955
|
|
$
|
1,502
|
|
$
|
435
|
|
|
$
|
(1,741
|
)
|
|
$
|
3,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
343
|
|
|
|
343
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper acquisition costs expensed
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky Project costs expensed
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
43
|
|
|
|
-
|
|
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
180
|
|
|
747
|
|
|
1,281
|
|
|
-
|
|
|
|
2
|
|
|
|
2,210
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
1,140
|
|
$
|
2,702
|
|
$
|
2,783
|
|
$
|
469
|
|
|
$
|
(1,396
|
)
|
|
$
|
5,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Non-Controlling Interest
|
|
|
|
Casino Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
Nevada
|
|
Midwest
|
|
Gulf Coast
|
|
Development /
Management
|
|
Corporate
|
|
Consolidated
|
|
|
|
GEM
|
|
50%
|
|
Development /
Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
358
|
|
$
|
2,062
|
|
$
|
-
|
|
$
|
45,812
|
|
|
$
|
(1,908
|
)
|
|
$
|
46,324
|
|
|
|
|
$
|
4,773
|
|
|
2,387
|
|
|
$
|
43,425
|
|
|
$
|
43,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper acquistion costs expensed
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
31
|
|
|
|
-
|
|
|
|
31
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
31
|
|
|
|
31
|
|
|
Stock Compensation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
310
|
|
|
|
310
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
310
|
|
|
Depreciation and amortization
|
|
|
242
|
|
|
1,028
|
|
|
-
|
|
|
593
|
|
|
|
2
|
|
|
|
1,865
|
|
|
|
|
|
431
|
|
|
215
|
|
|
|
379
|
|
|
|
1,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) on sale of joint venture
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(40,762
|
)
|
|
|
-
|
|
|
|
(40,762
|
)
|
|
|
|
|
-
|
|
|
-
|
|
|
|
(40,762
|
)
|
|
|
(40,762
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
600
|
|
$
|
3,090
|
|
$
|
-
|
|
$
|
5,674
|
|
|
$
|
(1,596
|
)
|
|
$
|
7,768
|
|
|
|
|
$
|
5,204
|
|
$
|
2,602
|
|
|
$
|
3,074
|
|
|
$
|
5,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31,
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
|
$
|
35,792
|
|
|
|
$
|
25,715
|
|
|
Food and beverage
|
|
|
|
|
|
2,146
|
|
|
|
|
1,327
|
|
|
Hotel
|
|
|
|
|
|
127
|
|
|
|
|
116
|
|
|
Management fees
|
|
|
|
|
|
477
|
|
|
|
|
5,810
|
|
|
Other operations
|
|
|
|
|
|
584
|
|
|
|
|
359
|
|
|
|
|
|
|
|
|
39,126
|
|
|
|
|
33,327
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
|
|
18,050
|
|
|
|
|
14,771
|
|
|
Food and beverage
|
|
|
|
|
|
2,075
|
|
|
|
|
1,175
|
|
|
Hotel
|
|
|
|
|
|
130
|
|
|
|
|
144
|
|
|
Other operations
|
|
|
|
|
|
1,273
|
|
|
|
|
1,152
|
|
|
Project development and acquisition costs
|
|
|
|
|
|
43
|
|
|
|
|
97
|
|
|
Selling, general and administrative
|
|
|
|
|
|
12,234
|
|
|
|
|
8,561
|
|
|
Depreciation and amortization
|
|
|
|
|
|
2,210
|
|
|
|
|
1,865
|
|
|
|
|
|
|
|
|
36,015
|
|
|
|
|
27,765
|
|
|
Operating gains
|
|
|
|
|
|
|
|
|
|
Gain on sale of joint venture
|
|
|
|
|
|
--
|
|
|
|
|
40,762
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
40,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
3,111
|
|
|
|
|
46,324
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
(1,885
|
)
|
|
|
|
(734
|
)
|
|
Gain on derivative instrument
|
|
|
|
|
|
--
|
|
|
|
|
8
|
|
|
Other (expense) income
|
|
|
|
|
|
(3
|
)
|
|
|
|
5
|
|
|
Loss on extinguishment of debt
|
|
|
|
|
|
--
|
|
|
|
|
(1,719
|
)
|
|
Other expense, net
|
|
|
|
|
|
(1,888
|
)
|
|
|
|
(2,440
|
)
|
|
Income before income taxes
|
|
|
|
|
|
1,223
|
|
|
|
|
43,884
|
|
|
Income tax expense
|
|
|
|
|
|
647
|
|
|
|
|
15,854
|
|
|
Net income
|
|
|
|
|
|
576
|
|
|
|
|
28,030
|
|
|
Income attributable to non-controlling interest in consolidated
joint venture
|
|
|
|
|
|
--
|
|
|
|
|
(2,181
|
)
|
|
Net income attributable to the Company
|
|
|
|
|
$
|
576
|
|
|
|
$
|
25,849
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the Company per common share
|
|
|
|
|
$
|
0.03
|
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
|
18,721,816
|
|
|
|
|
18,673,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Hyatt Regency
Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the
north shore of Lake Tahoe under a lease agreement (expiring on August
31, 2018) with an affiliate of Hyatt Hotels Corporation. 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.
