Full House Resorts (NASDAQ: FLL) today announced results for the three-month and six-month periods ended June 30, 2013. Net income (loss) attributable to the Company for the three months ended June 30, 2013 was near break-even or $0.00 per common share, compared to net income of $0.7 million, or $0.04 per common share, in the prior-year period. Excluding a $0.4 million gain on the sale of the Company’s interest in Gaming Entertainment (Michigan), LLC (“GEM”), and its FireKeepers management agreement and Silver Slipper related acquisition costs in the second quarter of 2012, the Company would have reported net income attributable to the Company per common share of $0.03 for the three months ended June 30, 2012.
Second Quarter 2013 Highlights
- Adjusted EBITDA, as defined below, for the second quarter of 2013 was $4.4 million versus $2.9 million in the prior-year period.
- At its Silver Slipper Casino in Hancock County, Mississippi for the second quarter 2013, the Company recorded revenue of $13.4 million and adjusted EBITDA of $2.5 million. The Silver Slipper Casino was acquired on October 1, 2012.
- At its Rising Star Casino Resort for the second quarter 2013, the Company recorded revenue of $17.8 million compared to revenue of $22.3 million in the prior-year quarter due to increased competition from recently opened Ohio casinos. Rising Star adjusted EBITDA for the second quarter 2013 was $1.8 million versus $2.8 million in the prior-year quarter.
- Northern Nevada casino revenue for the second quarter of 2013 was $5.2 million, comparable with the prior-year period. Adjusted EBITDA for the second quarter 2013 was $1.1 million, an increase from $1.0 million in the prior-year period.
- In April 2013, the Company announced that its lease 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 has been extended and is now scheduled to expire on August 31, 2018. All other terms of the lease remain unchanged.
- As of June 30, 2013, Full House Resorts had $22.8 million in cash and $66.3 million in outstanding debt on its balance sheet.
- On August 2, 2013, the Company received a commitment for a $10.0 million loan from its first lien facility lenders led by Capital One. The terms and conditions of the commitment, subject to completion of loan documentation, are: the First Lien Credit Agreement (1) will be increased by $10.0 million; (2) interest rate will be lowered by 1.0%; (3) will be extended to a new maturity date of June 29, 2016; and (4) certain financial ratio covenants will be revised to accommodate the additional extension of credit. The new First Lien Credit Agreement contracts are currently being drafted. The proceeds will be used to fund a portion of the $17.5 million construction of a 140-room hotel at the Company’s Silver Slipper property. The remaining $7.5 million of the construction will be funded from available cash. The Company anticipates closing the loan, signing construction contracts, and giving a notice-to-proceed within the next 30 days, and estimates that construction will take approximately one year from ground-breaking.
“Despite increased competition and a stagnant economy, our casinos continued to perform well in the second quarter,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “In terms of new development, construction on the new third-party hotel adjacent to Rising Star remains on schedule, and we expect it to provide a boost to Rising Star upon its opening in the fourth quarter of this year. In addition, we continue to move forward on a much-needed hotel at our Silver Slipper property and expect to finalize financing and commence construction within the next 30 days. Our goal of building Full House into a locals-oriented regional casino company remains strong and we continue to evaluate opportunities to achieve this end in a measured and conservative manner.”
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