Full House Resorts Announces Three-Month Results for the Period Ended March 31, 2010
Record First Quarter with Earnings per Share of $0.11
LAS VEGAS--(BUSINESS WIRE)-- Full House Resorts (NYSE Amex US: FLL) today announced results for the three-month period ended March 31, 2010. Net income attributable to the Company for the three months ended March 31, 2010 was $2.0 million, or $0.11 per common share, compared to $0.5 million, or $0.03 per common share, in the prior-year period.
First Quarter 2010 Highlights and Subsequent Events
-- Management fees for Gaming Entertainment (Michigan), LLC ("GEM"), a
50%-owned joint venture that manages FireKeepers Casino, were $6.2
million. FireKeepers Casino opened August 5, 2009.
-- In February 2010, GEM received payment of its $5.0 million tribal
receivable from FireKeepers Development Authority. The cash proceeds
were split between the GEM members on an equal basis.
-- As of March 31, 2010, Full House Resorts had $12.3 million in cash, no
outstanding debt and approximately $8.2 million of availability on its
revolving credit facility.
-- In April 2010, Full House received a favorable decision in the
arbitration proceeding initiated against it by Harrington Raceway, Inc.
The term of the Management Agreement is through August 2011 and Full
House expects to continue to receive at least the 5% minimum annual
increase in payments as set forth in the agreement, which is providing
the Company with protection from competition, tax increases and other
economic pressures.
"The first quarter of 2010 was another successful one for Full House, as we once again achieved record revenue and earnings per share," said Andre Hilliou, Chairman and Chief Executive Officer of Full House. "FireKeepers continues to impress since its opening last summer, and we have been very pleased with its results, as GEM earned approximately $16 million in management fees in the first eight months of operations. Stockman's Casino had a challenging quarter due to poor weather and continued economic weakness in Northern Nevada; however, our market share of slot revenue remained steady. With significant cash on hand and no outstanding debt, we are in prime position this year to take advantage of acquisition and management opportunities that will provide our shareholders with long-term value."
First Quarter 2010 Results
For the quarter ended March 31, 2010, Full House reported casino, food and beverage, and other revenue of $2.1 million, a decline of 7% from the prior-year period, primarily caused by lower casino revenue at Stockman's Casino due to general weakness in the economy and inclement weather in Northern Nevada. In addition, during the first quarter of 2010, Full House recorded GEM management fees of $6.2 million for FireKeepers Casino, which opened on August 5, 2009.
Full House recorded equity in net income of unconsolidated joint venture and related guaranteed payments of $1.4 million, an increase of 15% from the prior-year period, due to the 5% guaranteed increase and the timing of cash payments. The equity in net income of unconsolidated joint venture represents Full House's 50% ownership interest in Gaming Entertainment (Delaware), LLC, a joint venture between the Company and Harrington Raceway, Inc.
Operating expenses for first quarter 2010 were $3.7 million, an increase of 28% from the prior-year period, primarily due to increased amortization of contract rights and incentive compensation expenses.
Operating income for first quarter 2010 was $6.0 million, compared to operating income of $0.9 million in the prior-year period. EBITDA, net of RAM's share of GEM results, was $3.9 million versus $1.0 million last year.
Full House reported record net income attributable to Full House per common share of $0.11 for the three months ended March 31, 2010, as compared to $0.03 for the three months ended March 31, 2009.
Liquidity and Capital Resources
As of March 31, 2010, Full House had $12.3 million in cash and approximately $8.2 million of availability on its revolving credit line with Nevada State Bank.
There was no debt outstanding as of March 31, 2010. In February 2010, GEM received the final payment on its $5.0 million tribal receivable from FireKeepers Development Authority. The cash proceeds were split between the GEM members on an equal basis, following which the remaining GEM debt was repaid. In March, Full House began collecting payment on the remaining $3.1 million it is due from GEM, and the company expects to be fully repaid by this fall.
Conference Call Information
The Company will host a conference call and webcast on Tuesday, May 11th at 9:00 a.m. EDT. Both the call and webcast are open to the general public.
The conference call number is 877-941-1430; international callers can access the call by dialing 1-480-629-9667. Please call five minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call on the Internet at http://www.fullhouseresorts.com (select Investors and then Upcoming Events). Please log-on fifteen minutes in advance to ensure that you are connected prior to the call's initiation. Questions and answers will be reserved for call-in analysts and investors. Following its completion, a replay of the call can be accessed for one week on the Internet at the above link or by calling either 800-406-7325 or 1-303-590-3030 and providing passcode 4295946.
Selected unaudited Statements of Operations (from continuing operations) data
for the three months ended March 31,
2010 Casino Operations Development/ Corporate Consolidated
Management
Revenues $ 2,149,124 $ 6,162,107 $ - $ 8,311,231
Selling, general
and 446,277 245,410 1,074,046 1,765,733
administrative
expense
Depreciation and 245,083 593,195 23,065 861,343
amortization
Operating gains -- 1,431,352 -- 1,431,352
Operating income 434,833 6,754,456 (1,164,391 ) 6,024,898
(loss)
Net income (loss)
attributable to 287,114 2,486,120 (764,617 ) 2,008,617
Company
2009 Casino Operations Development/ Corporate Consolidated
Management
Revenues $ 2,319,936 $ - $ - $ 2,319,936
Selling, general
and 446,666 123,921 959,306 1,529,893
administrative
expense
Depreciation and 256,885 13,449 20,218 290,552
amortization
Operating gains -- 1,505,925 -- 1,505,925
Operating income 555,816 1,353,560 (980,225 ) 929,151
(loss)
Net income (loss)
attributable to 365,923 838,754 (668,472 ) 536,205
Company
Reconciliation of EBITDA before unrealized gains on tribal advances (unaudited)
Net of Non-Controlling
Interest
Casino Development/ GEM, net of Development/
2010 Operations Management Corporate Consolidated intercompany 50% Management Consolidated
eliminations
Operating
income $ 434,833 $ 6,754,456 $ (1,164,391 ) $ 6,024,898 $ 5,585,610 $ 2,792,805 $ 3,961,651 $ 3,232,093
(loss)
Add Back:
Unrealized
loss on
notes - 10,764 - 10,764 - - 10,764 10,764
receivable,
tribal
governments
Depreciation
and 245,083 593,195 23,065 861,343 431,168 215,584 377,611 645,759
amortization
- - -
EBITDA
before
unrealized $ 679,916 $ 7,358,415 $ (1,141,326 ) $ 6,897,005 $ 6,016,778 $ 3,008,389 $ 4,350,026 $ 3,888,616
loss on
tribal
advances
Net of Non-Controlling
Interest
Casino Development/ GEM, net of Development/
2009 Operations Management Corporate Consolidated intercompany 50% Management Consolidated
eliminations
Operating
income $ 555,816 $ 1,353,560 $ (980,225 ) $ 929,151 $ 52,574 $ 26,287 $ 1,327,273 $ 902,864
(loss)
Add Back:
Depreciation
and 256,885 13,449 20,218 290,552 144 72 13,377 290,480
amortization
Deduct:
Unrealized
gain on
notes - 253,749 - 253,749 190,938 95,469 158,280 158,280
receivable,
tribal
governments
EBITDA
before
unrealized $ 812,701 $ 1,113,260 $ (960,007 ) $ 965,954 $ (138,220 ) $ (69,110 ) $ 1,182,370 $ 1,035,064
gain on
tribal
advances
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months
ended March 31,
2010 2009
Revenues
Casino $ 1,712,012 $ 1,868,942
Food and beverage 417,191 430,734
Management fees 6,162,107 --
Other 19,921 20,260
8,311,231 2,319,936
Operating costs and expenses
535,907 579,910
Casino
Food and beverage 487,025 480,660
Project development costs 67,677 15,695
Selling, general and administrative 1,765,733 1,529,893
Depreciation and amortization 861,343 290,552
3,717,685 2,896,710
Operating gains (losses)
Equity in net income of unconsolidated joint 1,442,116 1,252,176
venture and related guaranteed payments
Unrealized (losses) gains on notes receivable, (10,764 ) 253,749
tribal governments
1,431,352 1,505,925
Operating income 6,024,898 929,151
Other income (expense)
Interest and other income 112,841 22,655
Interest expense, including amortization of debt (3,655 ) (88,809 )
costs of $3,655 and $8,395
Income before income taxes 6,134,084 862,997
Income taxes (1,538,649 ) (385,972 )
Net income 4,595,435 477,025
(Income) loss attributable to non-controlling (2,586,818 ) 59,180
interest in consolidated joint venture
Net income attributable to the Company $ 2,008,617 $ 536,205
Net income attributable to the Company per common
share
Basic and diluted $ 0.11 $ 0.03
Weighted-average number of common shares
outstanding
Basic and diluted 18,001,681 18,103,688
Disclosures necessary to conform to GAAP and SEC Regulations S-X have been
omitted.
About Full House Resorts, Inc.
Full House owns, develops and manages gaming facilities. Full House owns Stockman's Casino in Fallon, Nevada which has 8,400 square feet of gaming space with approximately 260 gaming machines, four table games and a keno game. The casino has a bar, a fine dining restaurant and a coffee shop. Full House has a management agreement with the Nottawaseppi Huron Band of Potawatomi Indians for FireKeepers Casino in Battle Creek, Michigan with 2,680 gaming devices, 78 table games and a 120-seat poker room. For further information, go to www.FireKeepersCasino.com. Full House also receives a guaranteed fee from the operation of Harrington Raceway and Casino at the Delaware State Fairgrounds in Harrington, Delaware. Harrington Raceway and Casino has a total of approximately 2,100 gaming devices, a buffet, gourmet steakhouse, other food and beverage outlets and an entertainment lounge. 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, financing sources and terms, integration of acquisitions, competition and business conditions in the gaming industry. 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.
For the foregoing reasons, readers and investors are cautioned that there also can be no assurance that the outcomes expressed in Full House's forward-looking statements included in this release and otherwise will prove to be accurate. In light of the significant uncertainties inherent in such forward-looking statements, the inclusion of such information should not be regarded as a representation or warranty by Full House or any other person that Full House's objectives and plans will be achieved in any specified time frame, if at all. Full House does not undertake any obligation to update any forward-looking statements or to announce revisions to any forward-looking statements.
Source: Full House Resorts
Released May 10, 2010