Full House Resorts, Inc. · NASDAQ:FLL
Full House Resorts — IPO Roadshow (December 2006)
42 slides from Full House Resorts's IPO roadshow presentation, Dec 12, 2006
Slide 1: Investor Presentation November/December 2006
1 Investor Presentation November/December 2006 Free Writing Prospectus Filed pursuant to Rule 433 Registration Statement No. 333-136341 The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you sho
Slide 2: Free writing prospectus legend
2 “The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete inform
Slide 3: Safe Harbor Statement
3 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
Slide 4: Full House Resorts is an established gaming company with a two-pronged business model
4 Full House Resorts, Inc. is an established gaming company with a two-pronged business model: • FLL develops, manages and operates local casinos for American Indian Tribes and other independent gaming companies • FLL acquires, improves and operates independent local casinos Full House manages and o
Slide 5: Offering summary
5 Issuer: Full House Resorts, Inc. Ticker/ Listing: FLL / AMEX Shares Offered: 6,000,000 Over-allotment: 15% Shares Outstanding post-offering: 17,708,380 Price (as of 11/22/06): $3.29 Expected Pricing: Week of December 11 Underwriter: Sterne, Agee & Leach, Inc. Use of Proceeds: Acquisition, Working
Slide 6: Use of Proceeds
6 Stockman's Casino 10,500,000 Indian Gaming Development 2,500,000 1992 Preferred Dividend 3,000,000 Transaction Expenses 2,000,000 General Corporate Purposes 4,000,000 22,000,000 $ USE OF PROCEEDS USE OF PROCEEDS
Slide 7: Historical Stock Appreciation
7 Historical Stock Appreciation Historical Stock Appreciation FLL = Blue AMEX = Red NASDAQ = Green Midway Expansion Nambe selects FLL as Manager Northern Cheyenne select FLL as Manager FLL begins trading on the AMEX Stockman’s Announcement
Slide 8: Management Vision Statement
8 To provide: superior return to its investors security to its employees opportunity to its partners and vendors and support to our host communities Management Vision Statement Management Vision Statement • • • •
Slide 9: Strategy
9 Provide superior development and management services to well-placed and successful Native American gaming operations Acquire at reasonable multiples, and operate well-managed and successful local casinos Look for greenfield opportunities in the local casino arena Strategy Strategy • • •
Slide 10: Business Model
10 Two areas of development: Development and Management Services: Indian and Other Gaming • Opportunity: Revenue and Earnings Growth • Challenge: Development Projects have long lead time Acquisition and Operation: Commercial Casinos • Opportunity: Quickly accretive to earnings Operations benefit fro
Slide 11: Board of Directors
11 LEE A. IACOCCA -DIRECTOR since April, 1998. He founded EV Global Motors and is former Chief Executive Officer and Chairman of the Board of Directors of Chrysler Corporation. He is Chairman of the Iacocca Foundation and Chairman of the Committee for Corporate Support of Joslin Diabetes Foundation.
Slide 12: Tribal development process
12 1) Initial contacts with Tribes are based on referrals from lenders , contractors, architects and others. 2) A Letter of Intent is secured from the Tribe after making a presentation on the qualifications of Full House. 3) An independent market study is performed to determine the viability of the
Slide 13: Acquisition Strategy
13 Accretive to Earnings Strong Pattern of Revenue Growth Strong Management willing to remain Market Leader Strong Operational Base Expansion Opportunities Availability of operations for training Indian Casino Employees Acquisition Strategy Acquisition Strategy
Slide 14: Management experience
14 Andre Hilliou - over 25 years gaming experience. Turn around experience. Senior positions with public companies. Opened and operated major casino developments in Atlantic City and Sydney Australia. Greg Violette - 14 years executive experience in Native American & commercial gaming development an
Slide 15: Team Accomplishments
15 Increased annual earnings growth by improving current operations. Currently three projects in development anticipated to open in 2007 or early 2008. Recovery of $1 million from Torres Martinez tribe on project previously thought unrecoverable. Company in aggressive growth mode with marketing plan
Slide 16: Management Team
16 Management Team Management Team Andre M. Hilliou President, CEO and Director Barth F. Aaron Secretary & General Counsel T. Wesley Elam VP Operations & Project Management James D. Meier CFO & Treasurer Greg Violette Executive VP of Development James P. Dacey VP Development Accounting Staff
Slide 17: Organizational Structure
17 Full House Resorts, Inc. AMEX:FLL Gaming Management Projects Developer/Manager Company Owned Gaming Projects Owner/ Operator Harrington Raceway’s Midway Slots, Harrington, DE Firekeepers Casino, Battle Creek, MI Nambe Casino, Santa Fe, NM Tongue River Casino, Decker, MT Stockman’s Casino, Fallon,
Slide 18: Project Locations
Project Locations —— eres
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Slide 20: Harrington Raceway's Midway Slots population map
Slide 21: Experienced Management Team
21 Full House’s operating expertise and proven track record of financing, developing and managing gaming facilities, including overseeing significant expansion efforts will be invaluable to future projects Full House has successfully developed, financed and managed Midway Slots and Simulcast in Harr
Slide 22: Firekeepers' Casino, Michigan
22 Firekeepers’ Firekeepers’ Casino, Michigan Casino, Michigan
Slide 23: Location of Firekeepers Casino, Michigan
Location of Firekeepers* Casino; Michigan
Slide 24: Marketing the Firekeepers' Casino, Battle Creek, Michigan
24 City Center Population (1) Median Household Income (2) 1 Ann Arbor (Washtenaw County) 341,847 $51,990 2 Battle Creek (Calhoun County) 139,191 $38,918 3 Birmingham (Oakland County) 1,214,361 $61,907 4 Brighton (Livingston County) 181,517 $67,400 5 Grand Haven (Ottawa County) 255,406 $52,347 6 Gran
Slide 25: Firekeepers site advantages
25 Close Proximity to Chicago and Detroit in addition to other major Michigan metropolitan markets • Closest casino for over a million Michigan Residents • Diverse and strong local economy • Numerous attractions and strong visitation trends Proposed site is irreplaceable, and provides the Tribe with
Slide 26: Project Status
26 CONTRUCTION BEGIN: 1Q-2Q/07 GRAND OPENING: 3Q/08 STATUS: 4Q 2006 3Q 2007 1Q-2Q 2007 Yes Expected Yes Yes Expected Expected MICHIGAN PROJECT FIREKEEPERS CASINO Compact Signed Land In Trust Financing Complete NIGC Approval Environmental Assessment Management Agreement Project Status Project Status
Slide 27: Industry Comparables
27 Greektown Motor City MGM Grand Detroit Blue Chip Casino Owner Sault Ste. Marie Tribe of Chippewa Indians Marian Bayoff Ilitch MGM Boyd Gaming Corporation Slots 2,422 2,463 2,840 2,171 Tables 80 88 72 54 Positions 2,902 2,991 3,272 2,495 Win Per Position Per Day, net $317 $395 $385 $322 Net Revenu
Slide 28: Nambe Casino
NAMBE CASINO DCSW ARCHITECTS, INC 28
Slide 29: Nambe population estimates map
werk INLEY TENE ess Ca alice glrs_ A gE zaved MIGUEL Creek [Population Estimates TrenertnaPO, AD MLUPE 145,131 611,488
Slide 30: Project Status
30 CONTRUCTION BEGIN: 1Q-2Q/2007 GRAND OPENING 4Q/2007 STATUS: Yes Yes Expected Yes Expected Expected 4Q 2006 1Q-2Q 2007 1Q-2Q 2007 Environmental Assessment NAMBE PROJECT SANTA FE, NEW MEXICO Compact Signed Land In Trust Management Agreement Financing Complete NIGC Approval Project Status Project St
Slide 31: Industry Comparables
31 Casino Tribe/Pueblo Slots Tables Positions Win (1) Win per Day Cities of Gold (1) Pojoaque 717 12 801 18,248,007 $ 84.38 $ OhKay Casino Resort San Juan 690 5 725 26,993,695 $ 102.01 $ Big Rock Casino Santa Clara 350 7 399 18,739,488 $ 128.67 $ Camel Rock Casino Tesuque 674 7 723 30,526,799 $ 115.
Slide 32: Tongue River Casino
TONGUE RIVER CASINO NORTHERN CHEYENNE TRIBE ENO EO Une RS RAS, DCSW ARCHITECTS, INC
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Slide 34: Project Status
34 CONTRUCTION BEGIN: 2Q/2007 GRAND OPENING 4Q/2007 STATUS: Yes Yes Expected Yes Expected Expected 4Q 2006 1Q-2Q 2007 2Q 2007 NORTHERN CHEYENNE PROJECT DECKER, MONTANA TONGUE RIVER CASINO Land In Trust Environmental Assessment Management Agreement Financing Complete NIGC Approval Compact Signed Proj
Slide 35: Industry Comparables
35 County Jurisdiction Establishments Positions 2004 Gaming Tax Renenues Annual Gaming Revenue Annual Revenue/ Machine Win/Machine Big Horn County 3 20 $33,725 $224,833 $11,242 $31 Hardin 10 126 $466,138 $3,107,587 $24,663 $68 Yellowstone County 28 266 $713,298 $4,755,320 $17,877 $49 Billings 133 19
Slide 36: Acquisition of Stockman's Hotel and Casino
36 Acquisition of Stockman’s Hotel and Casino Acquisition of Stockman’s Hotel and Casino
Slide 37: Acquisition: Stockman's Casino
37 On April 6, 2006, FLL signed an agreement to acquire Stockman’s Casino and Holiday Inn Express in Fallon, Nevada. Closing expected on or before January 31, 2007 upon obtaining of regulatory approvals. Stockman’s Casino consists of Approximately 8,400 square feet of gaming space 280 slot machines
Slide 38: Acquisition Strategy
38 Accretive to Earnings Strong Pattern of Revenue Growth Strong Management willing to remain Market Leader Strong Operational Base Expansion Opportunities Acquisition Strategy Acquisition Strategy
Slide 39: Stockman's Casino
39 Stockman’s Casino Stockman’s Casino
Slide 40: Holiday Inn Express
EXPRESS
Slide 41: Stockman's Financial Summary
41 9-months 12-months 12-months Unaudited Audited Audited Sept 2006 2005 2004 Revenues 8,866,085 $ 11,256,964 $ 10,578,839 $ EBITDA - adjusted 3,516,746 $ 4,418,377 $ 4,223,892 $ EBITDA - adj. % 40% 39% 40% Note: Financial EBITDA is adjusted as outlined in purchase agreement. Stockman’s Financial Su
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