Delaware | 1-32583 | 13-3391527 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
4670 S. Fort Apache Road, Suite 190 Las Vegas, Nevada | 89147 | |
(Address of principal executive offices) | (Zip Code) |
N/A | ||
(Former name or former address, if changed since last report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits | |
Exhibit 99.1 | Press Release of the Company dated May 4, 2016* |
Full House Resorts, Inc. | ||
Date: May 4, 2016 | /s/ Lewis A. Fanger | |
Lewis A. Fanger, Senior Vice President, Chief Financial Officer & Treasurer |
Exhibit No. | Description | |
99.1 | Press Release of the Company dated May 4, 2016* |
• | Net revenues at the Silver Slipper Casino and Hotel rose 8.2% in the first quarter of 2016 to $14.8 million from $13.7 million in the prior-year quarter. Adjusted Property EBITDA was flat at $2.7 million for the first quarter of both years. Results in the 2016 period were affected by the flooding of roads throughout the Gulf Coast area, which impacted customer traffic to our property, particularly on a few key weekends. Additionally, we had an increase in operating costs related to the Silver Slipper's new hotel, which opened in stages between May 2015 and September 2015. Hotel occupancy improved throughout the quarter, rising from 72% in January 2016 to 91% in March 2016. |
• | At the Rising Star Casino Resort, net revenues increased by 10.2% to $12.2 million in the 2016 first quarter, the result of several new marketing initiatives. Careful cost controls resulted in Adjusted Property EBITDA rising to $1.3 million, a $1.1 million improvement from Adjusted Property EBITDA of $205,000 in the first quarter of 2015. |
• | The Northern Nevada segment consists of the Grand Lodge and Stockman’s casinos. The Grand Lodge Casino benefited from improved snowfall and visitation to the ski resorts surrounding Grand Lodge, as well as an increase in the table games hold percentage. Stockman's Casino benefited from casino layout and carpet improvements in November 2015, as well as marketing enhancements and certain management and operational changes. Northern Nevada net revenues rose 15.8% to $4.9 million from $4.2 million in the 2015 first quarter. Adjusted Property EBITDA for the Northern Nevada segment more than doubled to $767,000 in the first quarter of 2016 from $363,000 in the 2015 period. |
• | On September 27, 2015, the Company entered into an agreement to purchase the assets and certain liabilities of Bronco Billy's Casino and Hotel in Cripple Creek, Colorado for $30.0 million, subject to working capital and other certain adjustments. Upon entering the agreement, the Company made a $2.5 million deposit which would be forfeited under most circumstances if the transaction is not consummated. Targeting the approximately 700,000 people in the Colorado Springs MSA, Bronco Billy's has approximately 830 slot and video poker machines, 13 table games, a 24-room hotel, a steakhouse, four casual dining outlets, and an outdoor amphitheater. We expect to close on this acquisition in mid-May, in connection with the refinancing of the Company's outstanding first and second lien debt and subject to regulatory approvals and completion of other customary closing conditions. |
• | On March 16, 2016, the Company amended the hotel lease for The Lodge at Rising Star, one of two hotels that the Company operates at Rising Star Casino Resort. The Company and the hotel's landlord, Rising Sun/Ohio County First, Inc., agreed to: (i) extend the initial term of the hotel lease by four years to October 1, 2027, and (ii) reduce the monthly rent from April 2016 through March 2020 by approximately $1 million in total. In return for such revisions, the Company committed to invest at least $1 million in capital improvements at the Rising Star property. Effectively, the transaction helps fund a portion of the planned improvements on terms that are attractive to the Company. |
• | In July 2015, the Company reached a settlement with the Nambe Pueblo tribe related to funds previously advanced by the Company to Nambe Pueblo as part of a development agreement and a security and reimbursement agreement from 2005. In consideration for the release of any future claims and other items as defined within the settlement agreement, Nambe Pueblo was expected to pay a total of $500,000 to the Company. The first installment of $250,000 was received in July 2015. The remaining $250,000 balance was received in the first quarter of 2016. |
• | The Company incurred approximately $287,000 of project development and acquisition expenses during the first quarter of 2016. This amount primarily consists of costs related to the Company's pending acquisition of Bronco Billy's Casino and Hotel and its pursuit of growth opportunities in Indianapolis and other potential markets. |
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues | |||||||
Casino | $ | 29,130 | $ | 26,354 | |||
Food and beverage | 6,229 | 5,849 | |||||
Hotel | 1,965 | 1,279 | |||||
Other operations | 739 | 638 | |||||
Gross revenues | 38,063 | 34,120 | |||||
Less promotional allowances | (6,056 | ) | (5,036 | ) | |||
Net revenues | 32,007 | 29,084 | |||||
Operating costs and expenses | |||||||
Casino | 14,685 | 13,732 | |||||
Food and beverage | 1,966 | 2,100 | |||||
Hotel | 202 | 120 | |||||
Other operations | 303 | 268 | |||||
Selling, general and administrative | 11,340 | 10,844 | |||||
Project development, acquisition costs and other | 287 | 42 | |||||
Depreciation and amortization | 1,693 | 1,992 | |||||
30,476 | 29,098 | ||||||
Operating income (loss) | 1,531 | (14 | ) | ||||
Other expense, net | |||||||
Interest expense, net of capitalized interest | (1,762 | ) | (1,525 | ) | |||
Other | — | 12 | |||||
(1,762 | ) | (1,513 | ) | ||||
Loss before income taxes | (231 | ) | (1,527 | ) | |||
Provision for income taxes | 99 | 228 | |||||
Net loss | $ | (330 | ) | $ | (1,755 | ) | |
Basic and diluted loss per share | $ | (0.02 | ) | $ | (0.09 | ) | |
Basic and diluted weighted average number of common shares outstanding | 18,969 | 18,877 |
Three months ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Net Revenues | |||||||
Silver Slipper Casino and Hotel | $ | 14,845 | $ | 13,724 | |||
Rising Star Casino Resort | 12,246 | 11,115 | |||||
Northern Nevada Casinos | 4,916 | 4,245 | |||||
$ | 32,007 | $ | 29,084 | ||||
Adjusted EBITDA | |||||||
Silver Slipper Casino and Hotel | $ | 2,661 | $ | 2,696 | |||
Rising Star Casino Resort | 1,301 | 205 | |||||
Northern Nevada Casinos | 767 | 363 | |||||
Corporate | (1,161 | ) | (1,123 | ) | |||
3,568 | 2,141 | ||||||
Depreciation and amortization | (1,693 | ) | (1,992 | ) | |||
Impairments | — | (84 | ) | ||||
Pre-opening costs | — | (38 | ) | ||||
Project development & acquisition costs | (287 | ) | (4 | ) | |||
Stock compensation | (57 | ) | (37 | ) | |||
Operating income (loss) | 1,531 | (14 | ) | ||||
Non-operating expense, net | |||||||
Interest expense, net of capitalized interest | (1,762 | ) | (1,525 | ) | |||
Other | — | 12 | |||||
(1,762 | ) | (1,513 | ) | ||||
Loss before income taxes | (231 | ) | (1,527 | ) | |||
Provision for income taxes | 99 | 228 | |||||
Net loss | $ | (330 | ) | $ | (1,755 | ) |
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