Full House Resorts, Inc. · NASDAQ:FLL
Full House Resorts — Investor Presentation (December 2006)
42 slides from Full House Resorts's investor presentation, December 2006
Slide 1: Investor Presentation November/December 2006
Investor Presentation November/December 2006 1
Slide 2: Full House Resorts, Inc.
Full House Resorts, Inc. This presentation is not an offering of securities nor a solicitation for the sale or purchase of securities which can only be made by formal prospectus. 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement 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 Hou
Slide 4: Established gaming company with a two-pronged business model
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 ¾ Full House manages and o
Slide 5: Offering terms: Issuer, Ticker, Shares Offered
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 11th Underwriter: Sterne, Agee & Leach, Inc. Use of Proceeds: Acquisition, Working
Slide 6: Use of Proceeds
USE OF PROCEEDS 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 6
Slide 7: Historical Stock Appreciation
Historical Stock Appreciation FLL begins trading on the AMEX Stockman’s Announcement Northern Cheyenne select FLL as Manager Nambe selects FLL as Manager FLL = Blue AMEX = Red Midway Expansion NASDAQ = Green 7
Slide 8: Management Vision Statement
Management Vision Statement To provide: • superior return to its investors • security to its employees • opportunity to its partners and vendors and • support to our host communities 8
Slide 9: Strategy
Strategy • 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 9
Slide 10: Business Model
Business Model Two areas of development: ¾ Development and Management Services: Indian and Other Gaming • Opportunity: Revenue and Earnings Growth • Challenge: Development Projects have long lead time ¾ Acquisition and Operation: Commercial Casinos • Opportunity: Quickly accretive to earnings Operat
Slide 11: Board of Directors
Board of Directors 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 Diab
Slide 12: Strategy to Obtain Tribal Management Contracts
Strategy to Obtain Tribal Management Contracts 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 p
Slide 13: Acquisition Strategy
Acquisition Strategy ¾ Accretive to Earnings ¾ Strong Pattern of Revenue Growth ¾ Strong Management willing to remain ¾ Market Leader ¾ Strong Operational Base ¾ Expansion Opportunities ¾ Availability of operations for training Indian Casino Employees 13
Slide 14: Management Team
Management Team Full House Resorts, Inc. 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 Ameri
Slide 15: Team Accomplishments
Team Accomplishments ¾ Increased annual earnings growth by improving current operations. ¾ Currently three projects in development anticipated to open in 2007 or early 2008. ¾ Recovery of $1 million from Torres Martinez tribe on project previously thought unrecoverable. ¾ Company in aggressive growt
Slide 16: Management Team
Management Team Andre M. Hilliou President, CEO and Director Barth F. Aaron Greg Violette T. Wesley Elam James D. Meier Secretary & Executive VP of VP Operations & CFO & General Counsel Development Project Management Treasurer James P. Dacey Accounting Staff VP Development 16
Slide 17: Organizational Structure
Organizational Structure Full Full House House Resorts, Resorts, Inc. Inc. AMEX:FLL AMEX:FLL Company Owned Gaming Management Gaming Projects Developer/Manager Projects Owner/ Operator Harrington Firekeepers Tongue River Stockman’s Raceway’s Nambe Casino, Casino, Casino, Casino, Midway Slots, Santa F
Slide 18: Project Locations
Project Locations on e B Thunder 2 es { Se - ; 2 iy lean “Hen? montana [HORT sail ; ars Saf ayer Bek q ‘oda : MICHIGAN } San Francisco 2¥ San ety Pacific Ocean ou Vetyas BAY : i ; 9,88 Atlantic 3 a IFORHNS : D. . Los Angeles, eo rn i ms ix spo ests Ensenada" Ocean % | Hero ale. SQNORA COAHUILA ; ERU
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Slide 20: Population Estimates
Population Estimates 25 Mile 199,371 50 Mile 1,743,427 100 Mile 15,541,019 20
Slide 21: Experienced Management Team
Experienced Management Team ¾Full 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 ¾Full House has successfully developed, financed and managed Midway
Slide 22: Firekeepers' Casino, Michigan
Firekeepers’ Casino, Michigan 22
Slide 23: Location of Firekeepers' Casino: Michigan
Location of Firekeepers’ Casino: Michigan Population Estimates 25 Mile 317,384 50 Mile 1,508,858 100 Mile 8,463,572 23
Slide 24: Marketing the Firekeepers' Casino Financing Battle Creek, Michigan
Marketing the Firekeepers’ Casino Financing Battle Creek, Michigan Median Household (1) City Center Population 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) 181,5
Slide 25: Situation Overview
Situation Overview ¾ 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 ¾ Proposed site is irreplaceable, and pro
Slide 26: Project Status
Project Status MICHIGAN PROJECT FIREKEEPERS CASINO CONTRUCTION BEGIN: 1Q-2Q/07 GRAND OPENING: 3Q/08 STATUS: Compact Environmental Management Financing NIGC Signed Land In Trust Assessment Agreement Complete Approval Yes Expected Yes Yes Expected Expected 4Q 2006 3Q 2007 1Q-2Q 2007 26
Slide 27: Industry Comparables
Industry Comparables MGM Grand Greektown Motor City Detroit Blue Chip Casino Sault Ste. Marie Owner Tribe of Chippewa Marian Bayoff Boyd Gaming Indians Ilitch MGM 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 $3
Slide 28: Nambe Casino
NAMBE CASINO CONCEPTUAL DESIGN DCSW ARCHITECTS, INC.
Slide 29: Location of Nambe Casino
Location of Nambe Casino Population Estimates 25 Mile 145,131 50 Mile 611,488 100 Mile 1,003,405 29
Slide 30: Project Status
Project Status NAMBE PROJECT SANTA FE, NEW MEXICO CONTRUCTION BEGIN: 1Q-2Q/2007 GRAND OPENING 4Q/2007 STATUS: Compact Environmental Management Financing NIGC Signed Land In Trust Assessment Agreement Complete Approval Yes Yes Expected Yes Expected Expected 4Q 2006 1Q-2Q 2007 1Q-2Q 2007 30
Slide 31: Industry Comparables
Industry Comparables 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
Slide 32: Tongue River Casino
TONGUE RIVER CASINO INF@ TR sie E REN G1) EGE SNIN GE Reo eB se PAUMIEIE ISO) MOL STE RIES OVIR IL IS IDSA ININCG sNews, INXS
Slide 33: Location of Tongue River Casino
Location of Tongue River Casino Population Estimates 25 Mile 9,320 50 Mile 42,118 100 Mile 238,314 33
Slide 34: Project Status
Project Status NORTHERN CHEYENNE PROJECT DECKER, MONTANA TONGUE RIVER CASINO CONTRUCTION BEGIN: 2Q/2007 GRAND OPENING 4Q/2007 STATUS: Compact Land In Environmental Management Financing NIGC Signed Trust Assessment Agreement Complete Approval Yes Yes Expected Yes Expected Expected 4Q 2006 1Q-2Q 2007
Slide 35: Industry Comparables
Industry Comparables Annual 2004 Gaming Annual Gaming Revenue/ County Jurisdiction Establishments Positions Tax Renenues 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 $
Slide 36: Acquisition of Stockman's Hotel and Casino
Acquisition of Stockman’s Hotel and Casino 36
Slide 37: Acquisition: Stockman's Casino
Acquisition: Stockman’s Casino ¾ On April 6, 2006, FLL signed an agreement to acquire Stockman’s Casino and Holiday Inn Express in Fallon, Nevada. ¾ Closing expected on or before January 31, 2007 upon obtaining of regulatory approvals. ¾ Stockman’s Casino consists of ¾ Approximately 8,400 square fee
Slide 38: Acquisition Strategy
Acquisition Strategy ¾ Accretive to Earnings ¾ Strong Pattern of Revenue Growth ¾ Strong Management willing to remain ¾ Market Leader ¾ Strong Operational Base ¾ Expansion Opportunities 38
Slide 39: Stockman's Casino
Stockman’s Casino 39
Slide 40: Hotidoy Sun
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Slide 41: Stockman's Financial Summary
Stockman’s Financial Summary 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 agreemen
Slide 42: Full House Resorts Inc.
FULL HOUSE RESORTS INC.
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