Full House Resorts (NASDAQ:FLL) today announced results for the three-month and nine-month periods ended September 30, 2013. Net loss attributable to the Company for the three months ended September 30, 2013 was $2.2 million or $0.11 per common share, compared to net income of $2.1 million, or $0.11 per common share, in the prior-year period. Excluding a $4.0 million goodwill impairment loss, net of tax effect, related to Stockman’s Casino, the Company would have reported net income attributable to the Company per common share of $0.02 for the three months ended September 30, 2013.
Third Quarter 2013 Highlights and Subsequent Events
- Adjusted EBITDA, as defined below, for the third quarter of 2013 was $5.3 million versus $4.7 million in the prior-year period.
- At its Silver Slipper Casino in Hancock County, Mississippi for the third quarter 2013, the Company recorded revenue of $13.0 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 third quarter 2013, the Company recorded revenue of $17.0 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 third quarter 2013 was $1.1 million versus $2.7 million in the prior-year quarter.
- Northern Nevada casino revenue for the third quarter of 2013 was $7.2 million compared to revenue of $7.4 million in the prior-year period. Adjusted EBITDA for the third quarter 2013 was $2.3 million, a decrease from $2.6 million in the prior-year period due primarily to continuing revenue weakness at Stockman’s Casino.
- As of September 30, 2013, Full House Resorts had $25.4 million in cash and $66.3 million in outstanding debt on its balance sheet.
- On August 26, 2013, the Company closed on an amendment to its First Lien Credit Agreement to provide for a $10.0 million loan from its first lien facility lenders to fund a portion of the $17.7 million construction of the 142-room hotel at the Silver Slipper Casino. The Company has commenced construction on the hotel and expects the opening to occur during the fourth quarter of 2014.
- On November 1, 2013, the Company voluntarily prepaid its next two amortization payments due under the First Lien Credit Agreement on January 1, 2014 and April 1, 2014 in the total amount of $2.5 million.
“While we encountered a challenging third quarter due to increased competition and the continuing slow economy, there were still some positive developments which keep us optimistic for Full House’s long-term future,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “In Indiana, construction of the new hotel adjacent to Rising Star is nearing completion, and we expect it to provide a boost to Rising Star upon its opening next week. We also expect to begin realizing additional gaming tax savings at our Rising Star property beginning next year as the result of legislation passed earlier this year. In addition, we closed on the necessary financing for a much-needed hotel at our Silver Slipper property and have begun construction on the facility. We remain focused on building Full House into a locals-oriented regional casino company and continue to evaluate opportunities to achieve this end in a measured and conservative manner.”
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