For Immediate Release
FULL HOUSE RESORTS ANNOUNCES FIRST QUARTER RESULTS FOR
THE PERIOD ENDED MARCH 31, 2008
Reports Earnings per Share of $0.05 for First Quarter
2008
Las
Vegas – May 14, 2008 – Full House
Resorts (AMEX: FLL) today announced results for its first quarter ended March 31,
2008. For the three months ended March 31, 2008, income from continuing operations
increased to $2.5 million compared to $0.2 million in the prior-year period mainly
due to a $1.9 million unrealized gain on notes receivable recognized in the
first quarter of 2008 and a full quarter of results from the Stockman’s Casino
acquired at the end of January 2007. Net income during the first quarter of
2008 was $1.0 million compared to net income of $0.1 million in the first quarter
of 2007. Earnings per share in the first quarter of 2008 were $0.05 compared
to $0.00 in the prior-year period based on diluted common shares outstanding of
19.3 million and 19.2 million, respectively.
First
Quarter 2008 Highlights and Subsequent Events
- On
February 20, 2008, Full House closed on the sale of the Holiday Inn
Express in Fallon, Nevada. The Company received net proceeds at that time
of $7.0 million, which were applied to the Company’s revolving loan with
Nevada State Bank, reducing the balance on the loan from $10.9 million to
$3.9 million while the Company’s availability under the facility increased
to approximately $4.8 million. In addition, future amortization
requirements were reduced on a pro-rata basis and the Company has no required
principal payments on the facility until January 2016.
- Earnings
from the Harrington Raceway and Casino management agreement increased from
$1.0 million to $1.2 million as a result of the guaranteed minimum growth
rate negotiated in 2007. In February 2008, the expansion and renovation
of the Harrington Raceway and Casino was completed, which brought the
total number of slot units to approximately 2,100.
- On May 6, 2008, the FireKeepers
Development Authority closed on a $340 million Senior Secured Note financing
and a $35 million F&E facility to fund the FireKeepers Casino project in Battle Creek , Michigan. Full House owns 50% of the joint venture Gaming Entertainment
Michigan, LLC (GEM), which has been and will continue to oversee on behalf of
the Authority the construction of the facility and has a seven-year management
agreement which begins when the facility opens. Construction has commenced on
the facility and it is expected to open in the summer of 2009.
- With
the closing of financing, GEM received reimbursement from the FireKeepers
Development Authority of approximately $9.3 million for previously advanced
development costs. The funds were used to retire the $9.5 million
obligation to Green Acres carried by the Company as debt. The Company agreed
to leave the remaining $5.0 million receivable in the project until 180
days following opening. The balance will be paid from the construction
disbursement account provided funds are available.
Commenting
on first quarter results, CEO Andre Hilliou said, “We were pleased with first quarter
results considering the difficult business environment we are operating in. In
Delaware, we are locked into a minimum 8% management fee growth this year. Our
Stockman’s Casino performed within expectations, although we have seen some
weakness in the Northern Nevada market. In addition, during the quarter, we completed
the sale of the Holiday Inn Express at a very favorable multiple which allowed
us to substantially reduce our debt. And most importantly, we are extremely
pleased to have assisted the FireKeepers Development Authority in raising their
project financing which has allowed construction to commence in earnest last
week. We remain confident that the FireKeepers Casino will be a major driver
of shareholder value upon its opening in the summer of 2009.”
First
Quarter Results
For
the quarter ended March 31, 2008, Full House reported casino, food and beverage,
and other revenue of $2.6 million, compared to revenue of $1.7 million in the
first quarter of 2007. The prior-year period included only two months of
operations for Stockman’s Casino which was acquired on January 31, 2007.
The
Company recorded equity in net income of unconsolidated joint venture and
management fee income of $1.2 million compared to $1.0 million in the
prior-year period. The equity in net income of unconsolidated joint venture
represents Full House Resorts’ 50% ownership interest in GED, a joint venture
between the Company and Harrington Raceway, Inc.
Operating expenses for first quarter
2008 were $3.1 million compared to $2.9 million in the prior-year period,
primarily as a result of a full quarter’s worth of Stockman’s operations in
2008 as opposed to only two months of operations in 2007. Development expenses
and corporate level SG&A declined on a year-over-year basis.
Income from operations for first
quarter 2008 was $2.5 million compared to $0.2 million in the prior-year
period. The 2008 figure includes a $1.9 million unrealized gain on notes
receivable compared to $0.4 million last year, primarily due to the repayment
of $9.3 million related to previously discussed financing for the FireKeepers
Casino.
The
Company reported earnings per share of $0.05 and $0.00 for the three months
ended March 31, 2008 and 2007, respectively.
Liquidity
and Capital Resources
As
of March 31, 2008, the company had $7.2 million in cash and approximately $4.8 million
of availability on a revolving credit line. Long-term debt outstanding
including current maturities and the Green Acres obligation at the end of the first
quarter was $15.2 million. Aided by the closing of the sale of the Holiday Inn
Express, the company prepaid $8.0 million of debt during the quarter. Following
the closing of financing on the FireKeepers Casino in May 2008 and the
subsequent retirement of the Green Acres obligation, the Company has
approximately $6.4 million cash on hand, has reduced the long-term debt
outstanding, including current maturities, to $5.8 million and has
approximately $4.8 million of availability on the Nevada State Bank Revolving
Credit facility.
Conference
Call Information
The Company will
host a conference call and webcast on Thursday, May 15, 2008 at 11:00 a.m. EDT. Both the call and webcast are open to the general public.
The conference
call number is 800-218-0530; international callers can access the call by dialing 1-303-262-2131. 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 800-405-2236 or 1-303-590-3000 and
providing passcode 11113998.
Selected audited Statements of Operations
(for continuing operations) data for the three months ended March 31,
Reconciliation of EBITDA before unrealized gains on tribal advances for the three months ended March 31,
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, formerly Midway Slots and
Simulcast at the Delaware State Fairgrounds in Harrington, Delaware. Harrington Raceway and Casino recently completed an expansion resulting in 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 2,500 gaming
devices, 90 table games and 20 poker tables in the Battle Creek, Michigan area, which is currently under construction. In addition, Full House
has been working with the Northern Cheyenne Nation of Montana for the
development and management of a 27,000 square foot gaming facility.
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.
# # #
For
further information, contact:
Mark Miller, Chief Financial
Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
Or
William R. Schmitt
Integrated Corporate
Relations
203-682-8200
investors@fullhouseresorts.com
