Full House Resorts (NYSE Amex US: FLL) today announced results for the three and six-month periods ended June 30, 2011. Net income attributable to the Company for the three months ended June 30, 2011 was $1.4 million, or $0.08 per common share, compared to $1.5 million, or $0.08 per common share, in the prior-year period. Excluding $0.4 million of non-cash loss on financing swap derivatives and acquisition costs, net income attributable to the Company per common share in the second quarter of 2011 would have been $0.09.
Second Quarter 2011 Highlights
- On April 1, 2011, the Company closed on the acquisition of the Grand Victoria Casino and Resort located in Rising Sun, Indiana. For the second quarter 2011, the Company recorded revenue of $23.2 million and EBITDA of $3.2 million at the property.
- Management fees for Gaming Entertainment (Michigan), LLC (“GEM”), a 50%-owned joint venture that manages FireKeepers Casino, were $5.9 million in the second quarter of 2011, compared to management fees of $6.0 million for second quarter 2010.
- EBITDA as defined below, and other items for the second quarter of 2011 was $6.0 million versus $3.1 million in the prior-year period.
- As of June 30, 2011, Full House Resorts had $11.5 million in cash, $31.4 million in outstanding debt (inclusive of swap agreement liability) and approximately $4.8 million of availability on its revolving credit facility.
- In May, subject to approval of the National Indian Gaming Commission (NIGC), the Company entered into a three-year management agreement with the Pueblo of Pojoaque for the operations of the Buffalo Thunder Casino and Resort in Santa Fe, New Mexico along with the Pueblo’s Cities of Gold and Sports Bar casino facilities. The Company will receive a base management fee of $100,000 per month plus a success fee based on achieving certain financial targets and expects to incur only minimal incremental operating costs related to the contract. The approval of the NIGC is expected in the third quarter.
- In June, the Company entered into a five-year lease agreement with Hyatt Equities L.L.C. for the Grand Lodge Casino at Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe. In addition, the Company entered in an agreement with HCC Corp., an affiliate of HGMI Gaming Inc., to acquire the operating assets and certain liabilities related to the Grand Lodge Casino for approximately $0.6 million, exclusive of operating cash and working capital. The Grand Lodge Casino features approximately 260 slot machines, 25 table games and a sports book, and is integrated into Hyatt Regency Lake Tahoe Resort, Spa and Casino and had prior annual revenue of approximately $12.5 million. These agreements are conditioned on approval by the Nevada Gaming Control Board and Nevada Gaming Commission which is expected by the end of August.
“The second quarter of 2011 was successful and newsworthy for Full House, as we added the Grand Victoria Casino and Resort to our family and once again achieved solid earnings per share,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “We are very pleased with the hard work that the entire Grand Victoria team has accomplished to effect a smooth transition and an excellent quarter in Indiana. We believe the property will be a significant driver of long-term value in the months and years to come. In addition, despite weather disruptions in the quarter and increased competition, FireKeepers continues to perform strongly. Finally, subject to approvals, we entered into a management agreement with the Pueblo of Pojoaque which will provide for additional high margin revenue, and we are expanding our Nevada presence to Lake Tahoe. We will continue to seek and act upon value-added opportunities when they are presented.”