Delaware | 001-32583 | 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 March 6, 2017* |
Full House Resorts, Inc. | ||
Date: March 6, 2017 | /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 March 6, 2017* |
• | Net revenues at the Silver Slipper Casino and Hotel rose 6.5% in the fourth quarter of 2016 to $14.8 million from $13.9 million in the prior-year quarter. Adjusted Property EBITDA increased 23.6% to $2.7 million in the fourth |
• | At the Rising Star Casino Resort, net revenues for the fourth quarter of 2016 increased to $12.6 million from $12.1 million in the fourth quarter of 2015. Adjusted Property EBITDA in the fourth quarter of 2016 was $0.4 million, versus $0.8 million in the fourth quarter of 2015 and an Adjusted Property EBITDA loss of $0.3 million in the fourth quarter of 2014, before the 2015 launch of the Christmas Casino concept. The difference between the 2015 and 2016 results was principally the cost of renting and operating a skating rink as part of the Christmas Casino, as well as certain accounting adjustments. |
• | As mentioned above, the Company broke ground on a 56-space RV park at Rising Star Casino Resort in late February 2017 after receiving local government approvals. The Company expects to invest approximately $1.5 million in the growth project and intends to open the RV park by this upcoming Memorial Day weekend. RV parks are common at casinos in other regions and the Recreation Vehicle Industry Association estimates that more than 60% of all recreation vehicles are made in Indiana. Despite this, Rising Star's RV park will be the first at a casino in the market. |
• | Bronco Billy's Casino and Hotel, acquired on May 13, 2016, had net revenues of $5.8 million and Adjusted Property EBITDA of $0.7 million for the fourth quarter of 2016. |
• | The Northern Nevada segment consists of the Grand Lodge and Stockman’s casinos. Casino layout and other physical improvements made to Stockman's Casino beginning in late 2015 offset significant snowfall affecting access to the Grand Lodge Casino in December. Combined, Northern Nevada net revenues increased 12.0% to $5.0 million from $4.5 million in the 2015 fourth quarter. Adjusted Property EBITDA for the Northern Nevada segment improved 12.7% to $0.7 million in the fourth quarter of 2016 from $0.6 million in the 2015 period. |
• | The Company has been working with its landlord, the Hyatt organization, and the respected design firm TAL Studios on a $5.0 million renovation of the Grand Lodge Casino, $1.5 million of which will be funded by Full House Resorts. The renovation, which is currently in progress, is occurring in phases without closure of the casino. We expect to complete the renovation in June 2017. |
• | In September 2016, the Company began construction work for the $1.5 million redesign of the main entrances and parking improvements at Stockman's Casino. In late 2016, we completed the new parking lot and installed a new digital marquee at the property. We expect to complete the property's new porte cochère and landscaping in the second quarter of 2017. Construction of new administrative offices, which will now connect directly to the casino, is slated for later this year. |
• | In November 2016, Full House Resorts successfully concluded an oversubscribed rights offering. The Company received $5 million in gross proceeds through the issuance of 3,846,154 new shares of the Company's stock. The purpose of the rights offering was to strengthen the Company's balance sheet and to raise equity capital in a cost-effective manner, while also allowing current holders of common stock to participate and avoid dilution. The net proceeds are being used to partially fund approximately $10 million of growth projects at existing properties. In addition to the projects mentioned above, they include: a VIP gaming area, sense of arrival improvements, a new casino restaurant, and a ferry boat service at Rising Star Casino Resort; design work for a potential future hotel addition at Bronco Billy's Casino and Hotel; and for general corporate purposes. All of these improvements (except for the new potential hotel at Bronco Billy's) are anticipated to be completed within approximately two years. The rights offering also satisfied a condition in the Company's first lien credit facility, preventing an increase in the interest rate on such borrowings that otherwise would have occurred on May 13, 2017. |
• | The Company incurred approximately $0.4 million of project development and acquisition expenses during the fourth quarter of 2016. This amount primarily consists of costs related to the Company's acquisition of Bronco Billy's Casino and Hotel and development efforts in Indiana. The Company has proposed development of a casino hotel in Terre Haute, Indiana. Such development requires the approval of the state legislature (which is currently in session), as well as the approval or acquiescence of the Governor. There is no certainty that such approvals will be received. |
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | |||||||||||||||
Casino | $ | 34,491 | $ | 27,489 | $ | 131,584 | $ | 111,763 | |||||||
Food and beverage | 7,359 | 6,169 | 28,797 | 25,222 | |||||||||||
Hotel | 2,149 | 1,839 | 8,637 | 6,675 | |||||||||||
Other operations | 1,301 | 921 | 4,394 | 3,811 | |||||||||||
Gross revenues | 45,300 | 36,418 | 173,412 | 147,471 | |||||||||||
Less promotional allowances | (7,112 | ) | (5,963 | ) | (27,420 | ) | (23,040 | ) | |||||||
Net revenues | 38,188 | 30,455 | 145,992 | 124,431 | |||||||||||
Operating costs and expenses | |||||||||||||||
Casino | 18,217 | 13,587 | 68,127 | 57,157 | |||||||||||
Food and beverage | 2,714 | 2,360 | 9,804 | 8,992 | |||||||||||
Hotel | 201 | 431 | 969 | 1,243 | |||||||||||
Other operations | 324 | 312 | 1,561 | 1,325 | |||||||||||
Selling, general and administrative | 13,247 | 11,212 | 49,756 | 41,883 | |||||||||||
Project development and acquisition costs | 413 | 131 | 1,314 | 891 | |||||||||||
Depreciation and amortization | 2,134 | 1,668 | 7,928 | 7,893 | |||||||||||
Loss on disposal of assets | 35 | 3 | 344 | 3 | |||||||||||
37,285 | 29,704 | 139,803 | 119,387 | ||||||||||||
Operating income | 903 | 751 | 6,189 | 5,044 | |||||||||||
Other (expense) income | |||||||||||||||
Interest expense, net of capitalized interest | (2,746 | ) | (1,839 | ) | (9,486 | ) | (6,715 | ) | |||||||
Debt modification costs | — | — | (624 | ) | — | ||||||||||
Adjustment to fair value of warrants and other | (482 | ) | — | (543 | ) | 12 | |||||||||
(3,228 | ) | (1,839 | ) | (10,653 | ) | (6,703 | ) | ||||||||
Income (loss) before income taxes | (2,325 | ) | (1,088 | ) | (4,464 | ) | (1,659 | ) | |||||||
Provision (benefit) for income taxes | 173 | 82 | 630 | (342 | ) | ||||||||||
Net income (loss) | $ | (2,498 | ) | $ | (1,170 | ) | $ | (5,094 | ) | $ | (1,317 | ) | |||
Basic and diluted earnings (loss) per share | $ | (0.12 | ) | $ | (0.06 | ) | $ | (0.26 | ) | $ | (0.07 | ) | |||
Basic and diluted weighted average number of common shares outstanding | 21,428 | 19,640 | 19,602 | 19,608 |
Three months ended | Year ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Revenues | |||||||||||||||
Silver Slipper Casino and Hotel | $ | 14,767 | $ | 13,869 | $ | 59,093 | $ | 56,836 | |||||||
Rising Star Casino Resort | 12,620 | 12,113 | 49,472 | 47,557 | |||||||||||
Bronco Billy's Casino and Hotel | 5,793 | — | 16,220 | — | |||||||||||
Northern Nevada Casinos | 5,008 | 4,472 | 21,207 | 20,038 | |||||||||||
$ | 38,188 | $ | 30,454 | $ | 145,992 | $ | 124,431 | ||||||||
Adjusted EBITDA | |||||||||||||||
Silver Slipper Casino and Hotel | $ | 2,660 | $ | 2,152 | $ | 9,994 | $ | 9,925 | |||||||
Rising Star Casino Resort | 448 | 754 | 2,931 | 4,005 | |||||||||||
Bronco Billy's Casino and Hotel | 725 | — | 3,423 | — | |||||||||||
Northern Nevada Casinos | 685 | 608 | 3,941 | 3,877 | |||||||||||
Corporate | (940 | ) | (881 | ) | (4,105 | ) | (3,843 | ) | |||||||
$ | 3,578 | $ | 2,633 | $ | 16,184 | $ | 13,964 | ||||||||
Depreciation and amortization | (2,134 | ) | (1,668 | ) | (7,928 | ) | (7,893 | ) | |||||||
Write-offs, recoveries and asset disposals, net | (35 | ) | (3 | ) | (344 | ) | 363 | ||||||||
Project development, acquisition costs and other | (413 | ) | (154 | ) | (1,314 | ) | (1,047 | ) | |||||||
Stock compensation | (93 | ) | (57 | ) | (409 | ) | (343 | ) | |||||||
Operating income | 903 | 751 | 6,189 | 5,044 | |||||||||||
Non-operating expense, net | |||||||||||||||
Interest expense, net of capitalized interest | (2,746 | ) | (1,839 | ) | (9,486 | ) | (6,715 | ) | |||||||
Debt modification costs | — | — | (624 | ) | — | ||||||||||
Adjustment to fair value of warrants and other | (482 | ) | — | (543 | ) | 12 | |||||||||
(3,228 | ) | (1,839 | ) | (10,653 | ) | (6,703 | ) | ||||||||
Loss before income taxes | (2,325 | ) | (1,088 | ) | (4,464 | ) | (1,659 | ) | |||||||
Provision (benefit) for income taxes | 173 | 82 | 630 | (342 | ) | ||||||||||
Net loss | $ | (2,498 | ) | $ | (1,170 | ) | $ | (5,094 | ) | $ | (1,317 | ) |
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