Full House Resorts Announces Three-Month Results for the Period Ended March 31, 2013

Full House Resorts Announces Three-Month Results for the Period Ended March 31, 2013

LAS VEGAS--(BUSINESS WIRE)-- Full House Resorts (NAS: 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