Full House Resorts (NASDAQ: FLL) today announced results for the full year ended December 31, 2012 with net income of $27.8 million or $1.49 per common share compared with net income of $2.3 million or $0.13 per common share for the same period in 2011. Net loss attributable to the Company for the three months ended December 31, 2012 was $0.8 million, or $0.04 per common share, compared to net income of $0.5 million, or $0.03 per common share, in the prior-year period. Excluding acquisition-related costs of $1.4 million and severance expenses of approximately $0.3 million in the fourth quarter of 2012, net income attributable to the Company per common share in the fourth quarter of 2012 would have been $0.02.
Fourth Quarter 2012 Highlights and Subsequent Events
- Adjusted EBITDA, as defined below, for the fourth quarter of 2012 was $3.1 million versus $4.8 million in the prior-year period. Prior-year period adjusted EBITDA results include $2.4 million from the Company’s FireKeepers Casino management agreement (“GEM”), which was sold at the end of March 2012; excluding GEM, adjusted EBITDA in the fourth quarter of 2011 would have been $2.4 million.
- On October 1, 2012, the Company closed on the acquisition of the Silver Slipper Casino in Hancock County, Mississippi. For the fourth quarter 2012, the Company recorded Silver Slipper Casino revenue of $12.9 million and adjusted EBITDA for the same quarter was $1.9 million.
- On February 26, 2013, the Company successfully amended the Silver Slipper Casino land lease to extend its term to 2058 and extend the Option to purchase to 2027, providing additional flexibility to the Company.
- At its Rising Star Casino Resort for the fourth quarter 2012, the Company recorded revenue of $19.1 million compared to revenue of $21.7 million in the prior-year quarter. Rising Star adjusted EBITDA for the fourth quarter 2012 was $1.3 million versus $2.2 million in the prior-year quarter due to increased competition from Ohio and severe weather in December 2012 compared to December 2011.
- Northern Nevada casino revenue for the fourth quarter of 2012 was $4.8 million compared to $5.0 million in the prior-year period. Adjusted EBITDA for the fourth quarter 2012 was $0.6 million, an increase from $0.5 million in the prior-year period.
- As of December 31, 2012, Full House Resorts had $20.6 million in cash and $68.8 million in outstanding debt on its balance sheet.
“Our fourth quarter was challenging on many levels as we were impacted by increased competition, difficult weather conditions compared with last year and continued consumer weakness,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “Despite these challenges, we were pleased with our overall operations. We completed our first quarter of operations at the Silver Slipper and thus far we are impressed with the team there. Although results for the quarter were below our internal expectations, due to a weak overall economic environment and increased promotional activity by our Gulf Coast competitors, we are working with our Silver Slipper team to implement operating efficiencies and improve performance in the near-term. We are excited about the new hotel at Rising Star and expect it to greatly enhance the overall profitability of the property when it is expected to open during Q4 this year. Further, we continue to evaluate the opportunity to put a much-needed hotel at our Silver Slipper property and hope to have some news on that in the near future.”
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