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

  1. 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 |

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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 

  8. Slide 8: FireKeepers Casino, Michigan

    FireKeepers Casino, Michigan

  9. Slide 9: FireKeepers Casino, Michigan

    FireKeepers Casino, Michigan

  10. Slide 10: Excellent South Central Michigan Location

    Excellent South Central Michigan Location

  11. Slide 11: Grand Victoria Casino & Resort

    aN GRAND VICTORIA’ CASINO & RESORT

  12. 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

  13. 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

  14. 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

  15. Slide 15: Grand Victoria Casino & Resort, Indiana

    Grand Victoria Casino & Resort, Indiana 15

  16. Slide 16: Grand Victoria Casino & Resort, Indiana

    Grand Victoria Casino & Resort, Indiana 16

  17. Slide 17: Grand Victoria Casino & Resort, Indiana

    Grand Victoria Casino & Resort, Indiana

  18. 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

  19. 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

  20. 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

  21. 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

  22. Slide 22: Financial Review

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  23. 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

  24. 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

  25. 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

  26. 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

  27. Slide 27: Appendix

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  28. 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

  29. 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

  30. 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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