Full House Resorts (NYSE Amex US: FLL) today announced results for the three and nine-month periods ended September 30, 2011. Net loss attributable to the Company for the three months ended September 30, 2010, including a non-cash impairment charge and one-time rebranding and acquisition costs, was $1.1 million, or $0.06 per common share, compared to net income of $2.2 million, or $0.12 per common share, in the prior-year period. Excluding non-cash impairment charges of $4.9 million and rebranding and acquisition costs of $0.2 million for the quarter, net income attributable to the Company per common share in the third quarter of 2011 would have been $0.11.
Third Quarter 2011 Highlights and Subsequent Events
- In August, the Grand Victoria Casino & Resort in Rising Sun, Indiana property was renamed the Rising Star Casino Resort. For the third quarter 2011, the Company recorded revenue of $24.1 million and EBITDA of $2.4 million (including $0.2 million of rebranding costs), bringing total EBITDA for the first six months of the Company’s ownership to $5.6 million.
- On September 1, the Company commenced its previously announced five-year lease agreement with an affiliate of Hyatt Hotels Corporation 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 closed its agreement with HCC Corp., an affiliate of HGMI Gaming Inc., and acquired the operating assets and certain liabilities related to the Grand Lodge Casino for approximately $0.7 million, exclusive of operating cash and working capital. The Company, through a wholly-owned subsidiary, operates the Casino. 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.
- In September, the National Indian Gaming Commission (NIGC) approved the Company for its 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 has commenced management of the facilities and, as previously announced, will receive a base fee of $100,000 per month, plus a success fee based on achieving financial targets.
- Management fees for Gaming Entertainment (Michigan), LLC (“GEM”), a 50%-owned joint venture that manages FireKeepers Casino, were $6.0 million in the third quarter of 2011, compared to management fees of $6.5 million for the third quarter 2010.
- EBITDA and other items, as defined below, for the third quarter of 2011 was $5.9 million versus $4.3 million in the prior-year period, notwithstanding the Delaware management contract terminating in August 2011.
- As of September 30, 2011, Full House Resorts had $16.5 million in cash, $30.3 million in outstanding debt (inclusive of swap agreement liability) and approximately $4.5 million of availability on its revolving credit facility. In October, the Company made its regularly scheduled December 31, 2011 debt amortization payment of $1.7 million.
- In October, the Rising Sun/Ohio County First, Inc. and the Rising Sun Regional Foundation, Inc. teamed up to develop a new 100-room hotel on land currently owned by the Company at its Rising Star Casino Resort. Construction is expected to start in the next few months and be completed approximately twelve months thereafter.
“Our results for the third quarter of 2011 reflect solid performance at our current properties, as we recorded a sequential increase in revenue at our Rising Star Casino Resort, and the addition of two new casinos – Grand Lodge and Buffalo Thunder – to the Full House family,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “We are pleased to add the Grand Lodge, which is part of the first-class Hyatt Regency resort located in Incline Village on the north shore of Lake Tahoe, as well as to be working closely with the Pueblo of Pojoaque in New Mexico. At our other operations, despite increased competition, FireKeepers Casino continues to provide solid results for GEM, and construction of its hotel remains on schedule for a fourth quarter 2012 opening, which should result in an increase in revenue.”
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