Full House Resorts Announces Solid Third Quarter Results
- Net Revenues Increase 6.0% in the Third Quarter, Reflecting Growth in All of the Company's Business Segments
- Two Growth Projects, the Rising Star RV Park and
Completed in Third Quarter of 2017
- Company Has Assembled a Site for Significant Expansion of
Includes Option to Lease or
On a consolidated basis, net revenues in the third quarter of 2017 increased 6.0% to
For the nine-month period, revenues rose 14.5% to
"We are pleased with our recent results, with both Silver Slipper and
Continued Mr. Lee, "We also made significant headway on our designs for an expansion of our
Third Quarter 2017 Highlights and Subsequent Events
- Net revenues at
Silver Slipper Casino and Hotel rose 9.6% in the third quarter of 2017 to$16.4 million from$15.0 million in the prior-year quarter. Adjusted Property EBITDA increased 32.6% to$3.1 million in the third quarter of 2017, up from$2.3 million in the prior-year period. InSeptember 2017 , the Company received$675,000 to favorably settle its outstanding legal claims related to defects in the initial construction of the parking garage at Silver Slipper and which, accordingly, positively affected Adjusted Property EBITDA in the third quarter of 2017. Silver Slipper also benefited from the addition of several new amenities, including a new oyster bar on the casino floor (opened inlate-June 2017 ) and a new pool and beach club along the white sand beach fronting the property (opened inAugust 2017 ). - At Rising Star Casino Resort, net revenues rose 1.2% for the third quarter of 2017 to
$12.7 million . Adjusted Property EBITDA of$728,000 in the third quarter of 2017 compares to$751,000 in the prior-year period. InAugust 2017 , the Company opened a new 56-space RV park convenient to the casino. RV parks are common at casinos in other regions and theRecreation Vehicle Industry Association estimates that more than 60% of all recreation vehicles are manufactured inIndiana . Despite this, theRV Park at Rising Star is the first and only RV park at a casino in the region. Additionally, the Company is awaiting approval of its ferry boat plans by theU.S. Army Corps of Engineers , whose approval is necessary for construction of the roads and ramps on both sides of the river, as well as certain other governmental approvals. The ferry boat itself, meanwhile, is under construction. The Company hopes to commence the ferry boat operation in the spring of 2018. - At
Bronco Billy's Casino and Hotel, net revenues improved 5.8% to$7.5 million and Adjusted Property EBITDA rose 9.9% to$1.8 million . InJuly 2017 , we transformed an underperforming bar into a new pizza, beer, and coffee concept named the Crippled Cow. The Company also plans to build a significant expansion atBronco Billy's , including a new luxury hotel tower, spa, parking garage, convention and entertainment center, and high-end restaurant. This expansion will integrate seamlessly with the existing casino. For renderings of the proposed expansion, as well as a presentation discussing the Company's rationale for itsBronco Billy's expansion, please visit the investor section of www.fullhouseresorts.com and click on "News and Events/Presentations." - The
Northern Nevada segment consists of theGrand Lodge and Stockman’s casinos. Combined,Northern Nevada net revenues were$7.1 million and$6.6 million for the third quarter of 2017 and 2016, respectively. Adjusted Property EBITDA for theNorthern Nevada segment was approximately flat at$1.9 million for the same periods. The Company recently completed construction of a significant renovation atGrand Lodge , which the Company expects will benefit results during the winter season. It is also nearing completion of a new porte cochere and landscaping improvements at Stockman's Casino. - The Company maintains a
Facebook page to provide work-in-progress photos to investors of our various growth projects and other activities. To access thatFacebook page, please visit www.facebook.com/FHResorts.
Liquidity and Capital Resources
As of
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
Forward-looking Statements
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; the impact of our finished projects and renovations on our results of operations; our proposed expansion of
(a) Reconciliation of Non-GAAP Financial Measure
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. Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles (“GAAP”), we believe this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity. We utilize Adjusted EBITDA 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 is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA is presented below. However, you should not consider this measure in isolation or as a substitute 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, 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 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) (Unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Casino | $ | 39,009 | $ | 36,967 | $ | 110,702 | $ | 97,093 | |||||||
Food and beverage | 8,760 | 8,282 | 24,759 | 21,438 | |||||||||||
Hotel | 2,408 | 2,361 | 6,724 | 6,488 | |||||||||||
Other operations | 1,234 | 1,252 | 3,250 | 3,094 | |||||||||||
Gross revenues | 51,411 | 48,862 | 145,435 | 128,113 | |||||||||||
Less promotional allowances | (7,685 | ) | (7,601 | ) | (21,968 | ) | (20,309 | ) | |||||||
Net revenues | 43,726 | 41,261 | 123,467 | 107,804 | |||||||||||
Operating costs and expenses | |||||||||||||||
Casino | 20,102 | 19,380 | 57,556 | 49,910 | |||||||||||
Food and beverage | 3,466 | 2,817 | 9,598 | 7,090 | |||||||||||
Hotel | 348 | 297 | 826 | 768 | |||||||||||
Other operations | 483 | 475 | 1,333 | 1,236 | |||||||||||
Selling, general and administrative | 13,076 | 12,747 | 39,889 | 36,508 | |||||||||||
Project development, acquisition costs and other | 65 | 439 | 249 | 1,211 | |||||||||||
Depreciation and amortization | 2,193 | 2,203 | 6,428 | 5,795 | |||||||||||
39,733 | 38,358 | 115,879 | 102,518 | ||||||||||||
Operating income | 3,993 | 2,903 | 7,588 | 5,286 | |||||||||||
Other (expense) income | |||||||||||||||
Interest expense, net of capitalized interest | (2,718 | ) | (2,748 | ) | (8,102 | ) | (6,740 | ) | |||||||
Debt modification costs | — | (24 | ) | — | (624 | ) | |||||||||
Adjustment to fair value of warrants | (302 | ) | 181 | (272 | ) | (60 | ) | ||||||||
(3,020 | ) | (2,591 | ) | (8,374 | ) | (7,424 | ) | ||||||||
Income (loss) before income taxes | 973 | 312 | (786 | ) | (2,138 | ) | |||||||||
Provision for income taxes | 184 | 177 | 552 | 458 | |||||||||||
Net income (loss) | $ | 789 | $ | 135 | $ | (1,338 | ) | $ | (2,596 | ) | |||||
Basic earnings (loss) per share | $ | 0.03 | $ | 0.01 | $ | (0.06 | ) | $ | (0.13 | ) | |||||
Diluted earnings (loss) per share | $ | 0.03 | $ | — | $ | (0.06 | ) | $ | (0.13 | ) | |||||
Basic weighted average number of common shares outstanding | 22,891 | 19,689 | 22,877 | 19,666 | |||||||||||
Diluted weighted average number of common shares outstanding | 23,663 | 19,996 | 22,877 | 19,666 | |||||||||||
Full House Resorts, Inc. Supplemental Information Segment Revenues and Adjusted Property EBITDA and Reconciliation of Adjusted EBITDA to Operating Income and Net Income (Loss) (In Thousands, Unaudited) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Revenues | |||||||||||||||
Silver Slipper Casino and Hotel | $ | 16,425 | $ | 14,987 | $ | 49,520 | $ | 44,326 | |||||||
Rising Star Casino Resort | 12,698 | 12,553 | 37,498 | 36,852 | |||||||||||
Bronco Billy's Casino and Hotel | 7,505 | 7,092 | 20,140 | 10,427 | |||||||||||
Northern Nevada Casinos | 7,098 | 6,629 | 16,309 | 16,199 | |||||||||||
$ | 43,726 | $ | 41,261 | $ | 123,467 | $ | 107,804 | ||||||||
Adjusted Property EBITDA(1) and Adjusted EBITDA | |||||||||||||||
Silver Slipper Casino and Hotel | $ | 3,054 | $ | 2,304 | $ | 9,013 | $ | 7,335 | |||||||
Rising Star Casino Resort | 728 | 751 | 2,671 | 2,483 | |||||||||||
Bronco Billy's Casino and Hotel | 1,769 | 1,610 | 4,092 | 2,698 | |||||||||||
Northern Nevada Casinos | 1,892 | 1,864 | 2,391 | 3,256 | |||||||||||
Adjusted Property EBITDA | 7,443 | 6,529 | 18,167 | 15,772 | |||||||||||
Corporate | (1,064 | ) | (889 | ) | (3,518 | ) | (3,165 | ) | |||||||
Adjusted EBITDA | $ | 6,379 | $ | 5,640 | $ | 14,649 | $ | 12,607 | |||||||
Depreciation and amortization | (2,193 | ) | (2,203 | ) | (6,428 | ) | (5,795 | ) | |||||||
Project development and acquisition costs | (53 | ) | (130 | ) | (238 | ) | (902 | ) | |||||||
Gain (loss) on asset disposals, net | (12 | ) | (309 | ) | 2 | (309 | ) | ||||||||
Share-based compensation | (128 | ) | (95 | ) | (397 | ) | (315 | ) | |||||||
Operating income | 3,993 | 2,903 | 7,588 | 5,286 | |||||||||||
Other (expense) income | |||||||||||||||
Interest expense | (2,718 | ) | (2,748 | ) | (8,102 | ) | (6,740 | ) | |||||||
Debt modification costs | — | (24 | ) | — | (624 | ) | |||||||||
Adjustment to fair value of warrants | (302 | ) | 181 | (272 | ) | (60 | ) | ||||||||
(3,020 | ) | (2,591 | ) | (8,374 | ) | (7,424 | ) | ||||||||
Income (loss) before income taxes | 973 | 312 | (786 | ) | (2,138 | ) | |||||||||
Provision for income taxes | (184 | ) | (177 | ) | (552 | ) | (458 | ) | |||||||
Net income (loss) | $ | 789 | $ | 135 | $ | (1,338 | ) | $ | (2,596 | ) | |||||
- The Company utilizes Adjusted Property EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level.
About
Contact:Lewis Fanger , Chief Financial OfficerFull House Resorts, Inc. 702-221-7800 www.fullhouseresorts.com
Source: Full House Resorts, Inc.