Full House Resorts Announces EPS of $0.03 for the Three-Months Ended March 31, 2009
FireKeepers Construction Remains on Track for Opening this Summer
First Quarter 2009 Results Comparable with First Quarter 2008 Excluding One-Time Unrealized Gain on Notes Receivable in the Prior-Year Period
LAS VEGAS--(BUSINESS WIRE)-- Full House Resorts (NYSE Amex US: FLL) today announced results for the three-month period ended March 31, 2009. Net income for the three months ended March 31, 2009 was $0.5 million, or $0.03 per common share, compared to $1.0 million, or $0.05 per common share, in the prior-year period. Excluding a one-time gain in the first quarter 2008 related to the collection by Gaming Entertainment (Michigan), LLC ("GEM") of $9.3 million of the FireKeepers tribal note receivable, net income per common share was $0.03 for the three-month periods ended March 31, 2009 and 2008, respectively. Full House Resorts owns 50% of GEM, the manager of FireKeepers Casino under a management agreement with the Huron Band of Potawatomi Indians.
First Quarter 2009 Highlights and Subsequent Events
-- Construction at FireKeepers Casino is progressing on schedule and on
budget. The Casino is still expected to open this summer.
-- Casino and food and beverage revenues for the quarter declined by 10%
compared to the prior-year period, primarily the result of lower food
and beverage revenues, which were partially offset by improved cost
control both in operations and SG&A. The Company has observed
stabilizing trends in recent months.
-- Equity in net income of unconsolidated joint venture and related
guaranteed payments from the Company's 50% interest in Gaming
Entertainment (Delaware), LLC ("GED") was $1.3 million, an increase of
8% from the prior-year period.
-- During the first quarter, Full House Resorts generated net cash from
operations of $1.1 million and repaid $2.3 million of long-term debt. As
of March 31, 2009 the company had cash and equivalents of $3.9 million,
debt of $4.0 million - of which $3.3 million is an obligation of GEM -
and availability on the company's credit facility of approximately $7.9
million.
"The first quarter was challenging as expected due to the economy, but our focus on cost controls and the increased revenues from Delaware helped us maintain profitability during the quarter," said Andre Hilliou, Chief Executive Officer of Full House. "In addition, we are excited about the upcoming grand opening of FireKeepers Casino later this summer, as construction remains on schedule and we remain on budget. Further, we continue to generate free cash flow and have continued to reduce our debt and improve our overall financial flexibility. The Company has no significant upcoming debt repayments or maturities, and as a result we are poised to take advantage of opportunities for growth that will emerge during this recessionary period."
First Quarter 2009 Results
For the quarter ended March 31, 2009, Full House reported casino, food and beverage, and other revenue of $2.3 million, versus $2.6 million in the prior-year period, primarily as a result of lower food and beverage revenue at Stockman's Casino due to general weakness in the economy and increased food and beverage competition.
The Company recorded equity in net income of unconsolidated joint venture and related guaranteed payments of $1.3 million, an increase of 8% from the prior-year period. The equity in net income of unconsolidated joint venture represents Full House's 50% ownership interest in GED, a joint venture between the Company and Harrington Raceway, Inc. Quarterly results differ from the minimum 5% guaranteed growth for 2009 due to timing differences in cash payments in the current and prior year.
Operating expenses for first quarter 2009 were $2.9 million, a decrease of 7% from the prior-year period, primarily due to lower food and beverage costs, as well as lower casino and SG&A expenses, partially offset by increases related to the GEM management agreement for FireKeepers.
Operating income for first quarter 2009 was $0.9 million, compared to $2.5 million in the prior-year period. The 2009 results include an unrealized gain on notes receivable from tribal governments of $0.3 million, compared to a gain of $1.9 million in first quarter 2008, primarily as a result of a one-time $9.3 million repayment of the tribal note receivable for FireKeepers in 2008.
The Company reported net income per common share of $0.03 for the three months ended March 31, 2009, as compared to $0.05 for the three months ended March 31, 2008. Exclusive of the one-time gain on notes receivable in first quarter 2008 due to the repayment of the tribal receivable, net income per common share was $0.03 for the three months ended March 31, 2009 and 2008, respectively.
Liquidity and Capital Resources
As of March 31, 2009, the company had $3.9 million in cash and approximately $7.9 million of availability on its revolving credit line with Nevada State Bank. Debt outstanding including current maturities as of March 31, 2009 was $4.3 million, of which $3.3 million is an obligation of GEM. Full House repaid $2.3 million of debt during the quarter and used approximately $0.2 million to purchase common stock. Subsequent to March 31, 2009, Full House did not purchase any additional shares of common stock, and the common stock repurchase plan expired on April 30, 2009. The total number of shares repurchased under the plan was 1,356,595 at an average cost, including transaction costs, of $1.22. The total number of shares outstanding at March 31, 2009 is 17,993,681.
Conference Call Information
The Company will host a conference call and webcast on Tuesday, May 12th at 11:00 a.m. EDT. Both the call and webcast are open to the general public.
The conference call number is 877-941-8610; international callers can access the call by dialing 1-480-629-9819. 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 Investor Relations 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 pass code 4067917.
Selected unaudited Statements of Operations (from continuing operations) data for the three months ended March 31,
Development/
2009 Casino Operations Corporate Consolidated
Management
Revenues $ 2,319,936 $ --- $ --- $ 2,319,936
Selling, general
and administrative 446,666 123,921 959,306 1,529,893
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) 554,429 1,271,776 (1,290,000) 536,205
Development/
2008 Casino Operations Corporate Consolidated
Management
Revenues $ 2,569,601 $ --- $ 23 $ 2,569,624
Selling, general
and administrative 388,014 22,493 1,184,114 1,594,621
expense
Depreciation and 243,877 19,152 7,513 270,542
amortization
Operating gains --- 3,061,261 --- 3,061,261
Operating income 737,651 2,985,616 (1,192,396) 2,530,871
(loss)
Net income (loss) 741,488 2,108,048 (1,848,787) 1,000,749
Reconciliation of EBITDA before unrealized gains on notes receivable, tribal governments, for the three months ended March 31,
Development /
2009 Casino Operations Corporate Consolidated
Management
Operating income $ 555,816 $ 1,353,560 $ (980,225 ) $ 929,151
Add Back:
Depreciation and 256,885 13,449 20,218 290,552
amortization
Deduct:
Unrealized gain
on notes
receivable, - 253,749 - 253,749
tribal
governments
EBITDA before
unrealized gain $ 812,701 $ 1,113,260 $ (960,007 ) $ 965,954
on tribal
advances
Development /
2008 Casino Operations Corporate Consolidated
Management
Operating income $ 737,651 $ 2,985,616 $ (1,192,396 ) $ 2,530,871
Add Back:
Depreciation and 243,877 19,152 7,513 270,542
amortization
Deduct:
Unrealized gain
on notes
receivable, - 1,898,524 - 1,898,524
tribal
governments
EBITDA before
unrealized gain $ 981,528 $ 1,106,244 $ (1,184,883 ) $ 902,889
on tribal
advances
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months
ended March 31,
2009 2008
Revenues
Casino $ 1,868,942 $ 1,965,049
Food and beverage 430,734 583,986
Other operating income 20,260 20,589
2,319,936 2,569,624
Operating costs and expenses
Casino 579,910 599,786
Food and beverage 480,660 600,273
Project development costs 15,695 34,792
Selling, general and administrative 1,529,893 1,594,621
Depreciation and amortization 290,552 270,542
2,896,710 3,100,014
Operating gains
Equity in net income of unconsolidated joint 1,252,176 1,162,737
venture, and related guaranteed payments
Unrealized gains on notes receivable, tribal 253,749 1,898,524
governments
1,505,925 3,061,261
Operating income 929,151 2,530,871
Other income (expense)
Interest and other income 22,655 58,748
Interest expense (88,809 ) (179,894 )
Noncontrolling interest in net (income) loss of 59,180 (763,681 )
consolidated joint venture
Income from continuing operations before income 922,177 1,646,044
taxes
Income taxes (385,972 ) (645,295 )
Income from continuing operations 536,205 1,000,749
Income from discontinued operations, net of --- 38,141
income taxes of $23,377 in 2008
Net income $ 536,205 $ 1,038,890
Income from continuing operations per common
share
Basic and diluted $ 0.03 $ 0.05
Income from discontinued operations per common
share
Basic and diluted $ 0.00 $ 0.00
Net income per common share
Basic and diluted $ 0.03 $ 0.05
Weighted-average number of common shares
outstanding
Basic and diluted 18,103,688 19,342,276
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 the 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 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. Full House also has a management agreement with the Nottawaseppi Huron Band of Potawatomi Indians for the development and management of a first-class casino/resort with 2,680 gaming devices, 78 table games and 12 poker tables in the Battle Creek, Michigan area, which is currently under construction and scheduled to open this summer. In addition, Full House has been working with the Northern Cheyenne Nation of Montana for the development and management of a gaming facility on tribal land. Further information about Full House can be viewed on its web site 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-KSB 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 11, 2009