Full House Resorts (NYSE Amex US: FLL) today announced results for the three-month and full-year periods ended December 31, 2011. Net income attributable to the Company for the three months ended December 31, 2011 was $0.5 million, or $0.03 per common share, compared to net income of $2.0 million, or $0.11 per common share, in the prior-year period.
Fourth Quarter 2011 Highlights and Subsequent Events
- At its Rising Star Casino Resort for the fourth quarter 2011, the Company recorded revenue of $21.7 million and EBITDA of $2.2 million (including a $0.2 million benefit from a one-time outstanding chip liability pick-up), bringing total adjusted EBITDA, as defined below, for the first nine months of the Company’s ownership to $8.0 million.
- Management fees and success fees from the Pueblo of Pojoaque for the fourth quarter 2011 were $0.9 million. The Company’s three-year management agreement with the Pueblo commenced on September 23, 2011.
- Management fees for Gaming Entertainment (Michigan), LLC (“GEM”), a 50%-owned joint venture that manages FireKeepers Casino, were $4.9 million in the fourth quarter of 2011, compared to $5.8 million in the fourth quarter 2010.
- Adjusted EBITDA and other items, as defined below, for the fourth quarter of 2011 was $4.5 million versus $3.8 million in the prior-year period. Prior-year period results include $1.5 million in equity in net income from the Company’s Delaware management contract, which expired in August 2011.
- As of December 31, 2011, Full House Resorts had $14.7 million in cash, $26.9 million in outstanding debt (inclusive of swap agreement liability) and approximately $4.3 million of availability on its revolving credit facility.
- On February 27, 2012, the Company and its partner in GEM, RAM Entertainment LLC, announced that it had signed a letter of intent to sell their interests in the management agreement to the FireKeepers Development Authority. In accordance with the terms of the letter of intent, the purchase price would be $97.5 million. The closing for the transaction is expected in the second quarter, conditioned on the Authority obtaining financing and the completion of definitive documents and other customary closing conditions. The Company intends to use a portion of the after-tax proceeds to pay off the Company’s remaining outstanding debt.
“We were pleased with our fourth quarter performance, as our Rising Star Casino Resort continues to perform beyond our expectations, and we received our first full quarter of management and success fees from Buffalo Thunder,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “In addition, last week’s announcement of the letter of intent to sell our interest in the GEM management agreement begins the closing of a very successful chapter in Full House’s history. We would like to thank the Nottawaseppi Huron Band of the Potawatomi for being excellent partners throughout our relationship and wish them the best of luck in the future. We intend to pay off our remaining debt with our share of the sale proceeds and will be positioned to continue looking for properties that fit our acquisition and growth strategy.”