Full House Resorts, Inc. · NASDAQ:FLL
Full House Resorts — Shareholder Meeting (April 2011)
30 slides from Full House Resorts's shareholder meeting presentation, Apr 26, 2011
Slide 1: 2011 Annual Shareholder Meeting
— vs Ee. q my te] FULL HOU SE RESOR TS 2011 Annual Shareholder Meeting Rising Sun, Indiana April 26, 201 |
Slide 2: Forward-looking statements safe harbor
The following statements are made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these presentations, we may make certain statements that are forward-looking, such as statements regarding Full House’s future results an
Slide 3: Full House Resorts properties and management agreements
FireKeepers - Through 50% joint venture – Gaming Entertainment Michigan (GEM) – manages FireKeepers Casino in Battle Creek, Michigan. GEM is managing the property, which opened on August 5, 2009, for seven years, receiving 26% of net income (50% interest in management fees) Grand Victoria - On A
Slide 4: 2010 highlights
Record earnings in 2010 FireKeepers performance exceeded expectations in 2010 and continues to perform well in 2011 Entered into the agreement to acquire the Grand Victoria and completed the acquisition on April 1, 2011 Continue to have a strong balance sheet post-Grand Victoria acquisition
Slide 5: 2010 financial results
Net revenues of $32.9 million vs. $19.0 million in 2009 Full year of FireKeepers management fees vs. five months in 2009 Net Income of $7.7 million vs. $4.8 million in 2009 EPS of $0.43 vs. $0.26 in 2009 5
Slide 6: FireKeepers management fee and operating metrics
Management fee income was $24.5 million for 2010 Fourth quarter management fees grew 37% year over year Slot Win per Unit per Day was $251 Table Win per Unit per Day was $1,101 EBITDAM margin was approx. 64.0% 2011 results remain strong and comparable with the prior year Development of
Slide 7: FireKeepers strengths and management team
Excellent location and strong close in demographics – over 1.1 million adults within 50 miles Modestly improving economic environment Strong management team GEM Team led by experienced developers and operators Andre Hilliou,Wes Elam, Jim Dacey, Mark Miller Bruce McKee – General Manager
Slide 8: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan
Slide 9: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan
Slide 10: Excellent South Central Michigan Location
Excellent South Central Michigan Location
Slide 11: Grand Victoria Casino & Resort
aN GRAND VICTORIA’ CASINO & RESORT
Slide 12: Grand Victoria acquisition completed April 1, 2011
On April 1, 2011 Full House completed the purchase of the Grand Victoria Casino & Resort Located in Rising Sun, Indiana on the Ohio River Purchase price of $43 million, exclusive of net working capital balances and fees and expenses as of the closing date. The purchase price multiple (exclus
Slide 13: Grand Victoria property facilities
300 acres, $143 million property with $57 million in capital improvements since opening 40,000 square foot gaming floor – can hold 2,700 patrons 1,388 class III slot machines 37 table games 201-room hotel, with 2,856 square feet of meetings space 1,140 person capacity, 12,000 square foot
Slide 14: Grand Victoria market and accessibility
5.2 million adults within 100-mile radius, most within driving distance Includes Cincinnati, Indianapolis, Lexington, Louisville, Frankfort and Dayton Average annual income in Ohio Valley region is 7.1% higher than the national average Two other gaming facilities within 50-mile radius Acce
Slide 15: Grand Victoria Casino & Resort, Indiana
Grand Victoria Casino & Resort, Indiana 15
Slide 16: Grand Victoria Casino & Resort, Indiana
Grand Victoria Casino & Resort, Indiana 16
Slide 17: Grand Victoria Casino & Resort, Indiana
Grand Victoria Casino & Resort, Indiana
Slide 18: Cincinnati casino and regional competition
Rock Gaming and Harrah’s Entertainment are targeting the opening of the Cincinnati casino in late 2012 $400 million project according to press reports Two of the seven proposed racinos would be within 100-mile radius of Grand Victoria Lebanon Raceway River Downs (42 miles) Lebanon Raceway
Slide 19: $38 million credit facility
$38 million Credit Facility $33 million term loan – fully drawn at closing of the Grand Victoria $5 million revolving credit facility – undrawn Bears interest at Libor +550 with a 150 floor $20 million of the facility is swapped Under 2x levered Total cash of $10 million 19
Slide 20: Growth strategy: management agreements and acquisitions
Management agreements Native American casinos seeking performance improvements thru proven operators Creditor/owners also seeking licensed proven operator Opportunistic strategic buyer – Acquisition must meet certain hurdles Attractive valuation - competitive multiple Well managed, well
Slide 21: Strategic priorities
Pro-actively manage FireKeepers, Stockman’s and the Grand Victoria for profitability without sacrificing quality and customer service Actively pursuing accretive value-added acquisitions in regional gaming markets Maintain a strong capital base to position the company to take advantage of mark
Slide 22: Financial Review
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Slide 23: Income statement, years ended December 31, 2010 and 2009
Full year ended December 31, 2010 2009 Revenue Casino $ 6,529,773 $ 7,194,476 Food and beverage 1,728,879 1,775,623 Management fees 24,473,066 9,953,009 Other operating income 165,411 89,575 Total Revenue 32,897,129 19,012,683 Operating costs and expenses Operating costs 4,175,593 4,241,646 Project
Slide 24: Balance sheet, December 31, 2010 and 2009
December 31, December 31, 2010 2009 Cash $ 13,294,496 $ 9,198,399 Notes receivable for tribal projects, current - 4,682,420 Accounts receivable and other current assets 3,880,393 2,401,646 Net PP&E 7,372,251 7,961,734 Notes receivable for tribal projects 427,567 430,467 Contract rights 13,244,811 15
Slide 25: $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 2005 2006 2007
$0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 2005 2006 2007 2008 2009 2010 25
Slide 26: Summary and outlook
Record financial performance in 2010 boosted by successful management of FireKeepers Casino Officially closed Grand Victoria acquisition on April 1, 2011 The Company is well-positioned with the fully-owned Grand Victoria and continuing to receive significant income from the FireKeepers contrac
Slide 27: Appendix
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Slide 28: 2010 operating results commentary
Operating results for 2010 were ahead of the prior year due to a full year’s management of FireKeepers Casino During 2010, GEM received management fees of $24.5 million (50% split between FHR and RAM) from the operations of FireKeepers Casino. Strong management, a first-class facility, top-shelf
Slide 29: 2010 EBITDA, net income and cash
2010 Consolidated EBITDA of $15.2 million, net of RAM’s share of the GEM management fees, was up from the prior year amount of $8.3 million. Net income attributable to the Company for 2010 was approximately $7.7 million and earnings per share were $0.43, boosted by the additional income received
Slide 30: EBITDA reconciliation by segment
Net of Non-Controlling Interest Casino Development / Development / Year ended December 31, 2010 Operations Management Corporate Consolidated GEM 50% Management Consolidated Operating income (loss) $ 1,472,935 $ 26,545,979 $ (4,479,875) $ 23,539,039 $ 22,200,684 $ 11,100,342 $ 15,445,637 $ 12,438,697
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