Full House Resorts Announces First Quarter of 2017 Results
- Net Revenues Increase 23.8% in the Quarter, Reflecting the Successful Acquisition of
- Construction Continues on Company's Growth Projects; Projects Scheduled for Completion Beginning With
On a consolidated basis, net revenues in the first quarter of 2017 increased 23.8% to
"We had a solid first quarter, with strong operating results in March offsetting the effects of significant snowfall at several of our properties in January and early February," said
"At our other properties," continued Mr. Lee, "we are nearing completion of several projects that we believe will lead to continued growth for our Company. Several of these projects should be complete in the next few months and include a new RV park at Rising Star, a beach club and swimming pool at the Silver Slipper, a thorough renovation of the
First Quarter 2017 Highlights and Subsequent Events
- Net revenues at the
Silver Slipper Casino and Hotelrose 12.2% in the first quarter of 2017 to $16.7 millionfrom $14.8 millionin the prior-year quarter. Adjusted Property EBITDA increased 14.7% to $3.1 millionin the first quarter of 2017, up from $2.7 millionin the prior-year period. Hotel occupancy for the first quarter of 2017 improved to 89% from 85% in the 2016 period. The Company continues to analyze ways to improve its midweek business in both the hotel and the casino. Among those efforts, the Company expects to open a new pool and beach club within the next few weeks, as well as a new oyster bar in the casino later in 2017. We are also refurbishing a large sign at a key intersection leading to the Silver Slipper, including the addition of two large state-of-the-art readerboards.
- At the Rising Star Casino Resort, net revenues were flat for the first quarter at
$12.2 million. Adjusted Property EBITDA was also similar for both the first quarter of 2017 and 2016 at $1.3 million. The Company is nearing completion of a 56-space RV park at the property, with a public opening for the $1.5 milliongrowth project slated for June. RV parks are common at casinos in other regions and the Recreation Vehicle Industry Associationestimates that more than 60% of all recreation vehicles are made in Indiana. Despite this, the RV Parkat Rising Star will be the first at a casino in the market. Bronco Billy'sCasino and Hotel, acquired on May 13, 2016, had net revenues of $5.9 millionand Adjusted Property EBITDA of $0.8 millionfor the first quarter of 2017.
Northern Nevadasegment consists of the Grand Lodge and Stockman’s casinos. Adverse weather conditions affected visitation to both of the Company's Northern Nevadaproperties. Additionally, Grand Lodge Casinowas affected by significant renovation work, with such construction work slated for completion in June 2017. Combined, Northern Nevadanet revenues were $4.9 millionfor both the 2017 and 2016 first quarters. Adjusted Property EBITDA for the Northern Nevadasegment of $0.6 millionin the first quarter of 2017 compares to $0.8 millionin the 2016 period.
- The Company has been working with its landlord, the Hyatt organization, and the award-winning design firm TAL Studios on a
$5.0 millionrenovation of the Grand Lodge Casino, $1.5 millionof which will be funded by Full House Resorts. The renovation, which is currently in progress, is occurring in phases without closure of the casino. As mentioned above, we expect to complete the renovation in June 2017.
September 2016, the Company began construction work for the $1.5 millionredesign of the entrances and parking improvements at Stockman's Casino. In late 2016, we completed the new parking lot and installed a new digital marquee at the property. We expect to complete the property's new porte cochère and landscaping in mid-2017. Construction of new administrative offices, which will now connect directly to the casino, is slated for later this year.
- The Company incurred approximately
$0.1 millionof project development and acquisition expenses during the first quarter of 2017. This amount primarily consists of costs related to the Company's development efforts in Terre Haute, Indiana. On February 16, 2017, the Public Policy Committeeof the Indiana State Senatevoted 5-5 on a bill that would have authorized such a casino. The bill required a majority vote to move to the Senatefloor. The Company continues to explore ways to utilize its unused, permitted gaming capacity in Terre Hauteor elsewhere in Indiana, which we believe would provide significant jobs and tax revenues to the state and a growth opportunity to the Company's shareholders and employees.
Liquidity and Capital Resources
Net cash provided by operating activities was an estimated
Conference Call Information
The Company will host a conference call for investors today,
A replay of the conference call will be available shortly after the conclusion of the call through
This press release contains statements by Full House 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 operating trends and expected results of operations, our construction budgets and time lines, our pursuit of the
(a) Reconciliation of Non-GAAP Financial Measures
We define “Adjusted EBITDA” as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, pre-opening expenses, project development and acquisition costs, and non-cash share-based compensation expense. “Adjusted Property EBITDA” is Adjusted EBITDA before corporate-related costs and expenses which are not allocated to each property. "Adjusted Property EBITDA margin" is Adjusted Property EBITDA divided by net revenues for such property. Although Adjusted EBITDA, Adjusted Property EBITDA and Adjusted Property EBITDA margin are not measures of performance or liquidity calculated in accordance with generally accepted accounting principles (“GAAP”), we believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity. We utilize Adjusted EBITDA, Adjusted Property EBITDA and Adjusted Property EBITDA margin internally to focus management on year-over-year changes in our core operating performance, which we consider our ordinary, ongoing and customary operations and which we believe is useful information to investors. Accordingly, management excludes certain items when analyzing core operating performance, such as the items mentioned above, that management believes are not reflective of ordinary, ongoing and customary operations. A version of Adjusted EBITDA (as defined in our credit agreements) is also used to determine compliance with certain covenants and the appropriate interest rate under such agreements.
In addition, because Adjusted EBITDA and Adjusted Property EBITDA are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA and Adjusted Property EBITDA is presented below. However, you should not consider these measures in isolation or as substitutes for operating income, cash flows from operating activities, or any other measure for determining our operating performance or liquidity that is calculated in accordance with GAAP. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA and Adjusted Property EBITDA, you should be aware that, in the future, we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA and Adjusted Property EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
|FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|Three Months Ended
|Food and beverage||7,898||6,229|
|Less promotional allowances||(7,037||)||(6,056||)|
|Operating costs and expenses|
|Food and beverage||2,973||1,966|
|Selling, general and administrative||13,084||11,340|
|Project development and acquisition costs||131||287|
|Depreciation and amortization||2,097||1,693|
|Loss on disposal of assets, net||13||—|
|Loss before income taxes||(418||)||(231||)|
|Provision for income taxes||184||99|
|Basic and diluted loss per share||$||(0.03||)||$||(0.02||)|
|Basic and diluted weighted average number of common shares outstanding||22,865||19,640|
|Full House Resorts, Inc.
Segment Revenues and Adjusted EBITDA and
Reconciliation of Adjusted EBITDA to Operating Income and Net Loss
(In Thousands, Unaudited)
|Three months ended|
|Silver Slipper Casino and Hotel||$||16,658||$||14,845|
|Rising Star Casino Resort||12,205||12,246|
|Bronco Billy's Casino and Hotel||5,861||—|
|Northern Nevada Casinos||4,896||4,916|
|Silver Slipper Casino and Hotel||$||3,052||$||2,661|
|Rising Star Casino Resort||1,319||1,301|
|Bronco Billy's Casino and Hotel||846||—|
|Northern Nevada Casinos||552||767|
|Depreciation and amortization||(2,097||)||(1,693||)|
|Loss on disposal of assets, net||(13||)||—|
|Project development and acquisition costs||(131||)||(287||)|
|Loss before income taxes||(418||)||(231||)|
|Provision for income taxes||184||99|
Lewis Fanger, Chief Financial Officer Full House Resorts, Inc.702-221-7800 www.fullhouseresorts.com