Delaware | 001-32583 | 13-3391527 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
One Summerlin 1980 Festival Plaza Drive, Suite 680 Las Vegas, Nevada | 89135 | |
(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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock | FLL | The Nasdaq Stock Market LLC |
(d) | Exhibits | ||
No. | Description | ||
99.1 |
Full House Resorts, Inc. | ||
Date: May 6, 2019 | /s/ Lewis A. Fanger | |
Lewis A. Fanger, Senior Vice President, Chief Financial Officer & Treasurer |
• | Net revenues at Silver Slipper Casino and Hotel grew 16.8% in the first quarter of 2019 to $19.3 million and Adjusted Property EBITDA rose 33.4% to $3.8 million. Operational improvements enacted in early 2018, as well as a winter without the abnormal freezing temperatures seen in the first quarter of 2018, resulted in Silver Slipper's strong performance. This is despite a major expansion at a competing property that opened in mid-2018. |
• | At Rising Star Casino Resort, net revenues declined 3.2% for the first quarter of 2019 to $10.9 million from $11.2 million. Adjusted Property EBITDA of $0.4 million in the first quarter of 2019 compares to $0.5 million in the prior-year period. Flooding and other adverse weather affected operations in both periods. Additionally, the Indiana Department of Transportation began repaving Highway 50 in March 2019, sometimes causing traffic delays. The worst of such disruption is expected to be over in May. Meanwhile, the Company's new ferry service helped offset the disruption and showed increasing usage during the quarter. The ferry carried 2,240, 652, and 3,042 vehicles in January, February, and March, respectively. It was closed for 18 days in February due to seasonal flood-stage river levels. In April, the ferry carried 6,037 vehicles. |
• | In April 2019, the Indiana legislature approved a reduction in certain gaming taxes for casino operators in the state, including Rising Star, beginning on July 1, 2021. Other items in the gaming legislation include the approval of sports betting at Indiana casinos and the approval of a competitive process for a new casino in Terre Haute, pending local voter approval. With the bill's passage, the governor now has seven days to either sign or veto the bill; otherwise, the bill becomes law on the eighth day, which is this week. |
• | At Bronco Billy's Casino and Hotel, net revenues for the first quarter of 2019 grew 3.2% to $6.4 million from $6.2 million. Adjusted Property EBITDA was $0.6 million and $0.7 million for the first quarters of 2019 and 2018, respectively. Results in the 2019 quarter primarily reflect snowfall over busier weekend periods. In April 2019, we introduced a new general manager at the property, pending customary regulatory approvals. As noted, the Company recently authorized commencement of the planned parking garage at Bronco Billy's, the major component of the property's Phase One expansion. Phase One also includes significant utility relocations; a back-of-house service building, located between the garage and the casino; and pedestrian entrances directly from the garage into the casino. The expected cost of this work is approximately $15.5 million. The Company expects to complete the parking garage and related structures by this time next year. Additionally, the Company continues to finalize its plans for the significant Phase Two expansion at Bronco Billy's. Phase Two is expected to include a new luxury hotel tower, spa, convention and entertainment center, two new restaurants, and a significant upgrade to the Bronco Billy's casino. Both the new parking garage and the Phase Two expansion will integrate seamlessly with the existing casino. For renderings of the proposed expansion, as well as a presentation discussing the Company's analysis of the Cripple Creek market, please visit the investor section of www.fullhouseresorts.com and click on "News and Events/Presentations." |
• | The Northern Nevada segment consists of the Grand Lodge and Stockman’s casinos. Combined, Northern Nevada net revenues were $3.9 million and $4.0 million for the first quarters of 2019 and 2018, respectively. Adjusted Property EBITDA for the Northern Nevada segment was approximately flat at $(9,000) and $(13,000) for the same periods, respectively. Results for the first quarter of 2019 reflect adverse table games hold at Grand Lodge, with hold of approximately 9.0% for the recent quarter and 14.6% for the first quarter of 2018. Additionally, in the prior-year period, there was a lack of snowfall in January and February at Grand Lodge, which relies on visitation to the area's ski resorts over the winter months, though March 2018 brought a significant amount of snow. At Stockman's Casino, a temporary decrease in activity at the nearby military base affected results, though we expect expansion plans at the base to generate improved results in the longer-term. |
• | Corporate expenses rose by $200,000 in the quarter versus the prior-year period, while share-based compensation decreased by $146,000. The principal reason for both changes is that senior management bonuses paid in the first quarter of 2018 (relating to the year 2017) were entirely paid in the form of restricted shares instead of cash. |
• | In mid-2018, the New Mexico Racing Commission announced a competitive process regarding the issuance of the state's sixth and final racetrack casino license. In accordance with that process, the Company presented its racetrack casino proposal -- La Posada del Llano -- to the Commission in October and November of 2018. The Racing Commission commissioned an independent study that was released publicly and concluded that the Full House proposal was superior to the other four proposals in most respects. In April 2019, the Governor of New Mexico replaced all five of the existing members of the state's racing commission with five new members, all of whom have experience in the horse racing industry. We are hopeful and confident that the newly-constituted commission will act in the best interests of the State of New Mexico. Understandably, the new Racing Commission has not yet announced when, if, or how it intends to issue the state's sixth and final racetrack casino license. If selected by the Commission, La Posada is expected to include a thoroughbred racetrack featuring a unique "Moving Grandstand," an 18-hole championship golf course, a casino with up to 750 slot machines, and a 300-guestroom hotel, among other items. For renderings and additional details on our proposal, please visit www.LaPosadaNewMexico.com. |
• | The Company maintains a Facebook page to provide work-in-progress photos to investors of our various growth projects and other activities. To access that Facebook page, please visit www.facebook.com/FHResorts. |
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenues | |||||||
Casino | $ | 28,298 | $ | 26,970 | |||
Food and beverage | 8,658 | 7,939 | |||||
Hotel | 2,715 | 2,283 | |||||
Other operations | 823 | 739 | |||||
Net revenues | 40,494 | 37,931 | |||||
Operating costs and expenses | |||||||
Casino | 11,785 | 11,084 | |||||
Food and beverage | 9,369 | 9,126 | |||||
Hotel | 2,420 | 2,487 | |||||
Other operations | 769 | 514 | |||||
Selling, general and administrative | 12,660 | 11,962 | |||||
Project development and acquisition costs | 133 | 37 | |||||
Depreciation and amortization | 2,091 | 2,168 | |||||
(Gain) loss on sale or disposal of assets, net | (1 | ) | 10 | ||||
39,226 | 37,388 | ||||||
Operating income | 1,268 | 543 | |||||
Other (expense) income, net | |||||||
Interest expense, net of capitalized interest | (2,703 | ) | (2,540 | ) | |||
Loss on extinguishment of debt | — | (2,673 | ) | ||||
Adjustment to fair value of warrants | (40 | ) | 503 | ||||
(2,743 | ) | (4,710 | ) | ||||
Income (loss) before income taxes | (1,475 | ) | (4,167 | ) | |||
Provision for income taxes | 142 | 119 | |||||
Net income (loss) | $ | (1,617 | ) | $ | (4,286 | ) | |
Basic income (loss) per share | $ | (0.06 | ) | $ | (0.18 | ) | |
Diluted income (loss) per share | $ | (0.06 | ) | $ | (0.20 | ) | |
Basic weighted average number of common shares outstanding | 26,940 | 23,212 | |||||
Diluted weighted average number of common shares outstanding | 26,940 | 23,711 |
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
Net Revenues | |||||||
Silver Slipper Casino and Hotel | $ | 19,281 | $ | 16,509 | |||
Rising Star Casino Resort | 10,868 | 11,227 | |||||
Bronco Billy's Casino and Hotel | 6,440 | 6,242 | |||||
Northern Nevada Casinos | 3,905 | 3,953 | |||||
$ | 40,494 | $ | 37,931 | ||||
Adjusted Property EBITDA(1) and Adjusted EBITDA | |||||||
Silver Slipper Casino and Hotel | $ | 3,845 | $ | 2,883 | |||
Rising Star Casino Resort | 404 | 493 | |||||
Bronco Billy's Casino and Hotel | 615 | 705 | |||||
Northern Nevada Casinos | (9 | ) | (13 | ) | |||
Adjusted Property EBITDA | 4,855 | 4,068 | |||||
Corporate | (1,278 | ) | (1,078 | ) | |||
Adjusted EBITDA | $ | 3,577 | $ | 2,990 | |||
Depreciation and amortization | (2,091 | ) | (2,168 | ) | |||
Project development and acquisition costs | (133 | ) | (37 | ) | |||
Gain (loss) on sale or disposal of assets, net | 1 | (10 | ) | ||||
Share-based compensation | (86 | ) | (232 | ) | |||
Operating income (loss) | 1,268 | 543 | |||||
Other (expense) income | |||||||
Interest expense, net of capitalized interest | (2,703 | ) | (2,540 | ) | |||
Loss on extinguishment of debt | — | (2,673 | ) | ||||
Adjustment to fair value of warrants | (40 | ) | 503 | ||||
(2,743 | ) | (4,710 | ) | ||||
Income (loss) before income taxes | (1,475 | ) | (4,167 | ) | |||
Benefit (provision) for income taxes | (142 | ) | (119 | ) | |||
Net income (loss) | $ | (1,617 | ) | $ | (4,286 | ) |
(1) | The Company utilizes Adjusted Property EBITDA as the measure of segment operating profit in assessing performance and allocating resources at the reportable segment level. |
Three Months Ended March 31, 2019 | |||||||||||||||||||||||
Operating Income (Loss) | Depreciation and Amortization | Gain on Sale of Assets | Project Development and Acquisition Costs | Share-Based Compensation | Adjusted Property EBITDA and Adjusted EBITDA | ||||||||||||||||||
Casino properties | |||||||||||||||||||||||
Silver Slipper Casino and Hotel | $ | 2,999 | $ | 847 | $ | (1 | ) | $ | — | $ | — | $ | 3,845 | ||||||||||
Rising Star Casino Resort | (202 | ) | 606 | — | — | — | 404 | ||||||||||||||||
Bronco Billy’s Casino and Hotel | 168 | 447 | — | — | — | 615 | |||||||||||||||||
Northern Nevada Casinos | (162 | ) | 153 | — | — | — | (9 | ) | |||||||||||||||
2,803 | 2,053 | (1 | ) | — | — | 4,855 | |||||||||||||||||
Other operations | |||||||||||||||||||||||
Corporate | (1,535 | ) | 38 | — | 133 | 86 | (1,278 | ) | |||||||||||||||
$ | 1,268 | $ | 2,091 | $ | (1 | ) | $ | 133 | $ | 86 | $ | 3,577 |
Three Months Ended March 31, 2018 | |||||||||||||||||||||||
Operating Income (Loss) | Depreciation and Amortization | Loss on Disposal of Assets | Project Development and Acquisition Costs | Share-Based Compensation | Adjusted Property EBITDA and Adjusted EBITDA | ||||||||||||||||||
Casino properties | |||||||||||||||||||||||
Silver Slipper Casino and Hotel | $ | 2,063 | $ | 819 | $ | 1 | $ | — | $ | — | $ | 2,883 | |||||||||||
Rising Star Casino Resort | (145 | ) | 630 | 8 | — | — | 493 | ||||||||||||||||
Bronco Billy’s Casino and Hotel | 233 | 471 | 1 | — | — | 705 | |||||||||||||||||
Northern Nevada Casinos | (222 | ) | 209 | — | — | — | (13 | ) | |||||||||||||||
1,929 | 2,129 | 10 | — | — | 4,068 | ||||||||||||||||||
Other operations | |||||||||||||||||||||||
Corporate | (1,386 | ) | 39 | — | 37 | 232 | (1,078 | ) | |||||||||||||||
$ | 543 | $ | 2,168 | $ | 10 | $ | 37 | $ | 232 | $ | 2,990 |