Full House Resorts, Inc. · NASDAQ:FLL
Full House Resorts — Investor Presentation (January 2009)
34 slides from Full House Resorts's investor presentation, January 2009
Slide 1: Investor Presentation
Investor Presentation Dana Point, CA - January 2009 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: Who We Are
Who We Are ¾ Full House Resorts owns, develops and manages gaming facilities ¾ Through 50% joint venture – Gaming Entertainment Michigan (GEM) – managing the construction of FireKeepers Casino in Battle Creek, Michigan. Upon opening in summer 2009, GEM will manage the property - seven years, 26% of
Slide 5: Business Strategy
Business Strategy ¾ Successfully manage the construction and pre-opening activities of FireKeepers Casino, leading to a summer 2009 opening ¾ Actively pursuing additional accretive value-added acquisitions in regional gaming markets 5
Slide 6: Team Accomplishments
Team Accomplishments ¾ Received NIGC approval of the GEM management agreement for FireKeepers Casino project in December 2007. ¾ GEM acquired Green Acres Casino Management’s 15% interest in the FireKeepers Casino management agreement for $10 million. ¾ May 6, 2008 – assisted the Authority in obtaini
Slide 7: Team Accomplishments
Team Accomplishments ¾ Acquired Stockman’s Casino and Holiday Inn Express in Fallon, Nevada in January 2007 for $28.1 million. ¾ Sold Holiday Inn Express in February 2008 for $7.2 million in gross proceeds; $7.0 million of net proceeds applied to reduce debt, reducing investment in Stockman’s to $21
Slide 8: Experienced Board of Directors
Experienced Board of Directors ¾ J. MICHAEL PAULSON – CHAIRMAN since 2004. Founder, owner and President of Nevastar Investments Corp. and Construction Specialists of Nevada, Inc. ¾ LEE A. IACOCCA – DIRECTOR since 1998. Former Chief Executive Officer and Chairman of the Board of Directors of Chrysler
Slide 9: Operations
Operations 9
Slide 10: Adult (+25) Population 25 Mile 50 Mile
Adult (+25) Population 25 Mile 25,569 50 Mile 50,297 Home of Fallon Naval Air Station 10
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Slide 12: Stockman's Casino milestones
¾ January 2007 - Acquired Stockman’s Casino & Holiday Inn Express for $28.1 million ¾ October 2007 – Announced sale of Holiday Inn Express for $7.2 million or approximately 10x EBITDA ¾ December 2007 - Renovation of coffee shop completed ¾ January 2008 – Renovated and reopened the Steakhouse ¾ Febru
Slide 13: Adult (+25) Population 25 Mile 50 Mile
Adult (+25) Population 25 Mile 177,202 50 Mile 680,716 100 Mile 9,868,262 13
Slide 14: Harrington Raceway management JV
¾ 50% JV with Harrington Raceway for the management of the facility ¾ Management agreement through August 2011 ¾ Guaranteed minimum annual increase of 8% in 2008 and 5% 2009-2011 ¾ 2008 management income is expected to be approximately $4.5 million ¾ Harrington Raceway and Casino has approximately 2
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Slide 16: FireKeepers in Battle Creek, MI
FireKeepers in Battle Creek, MI ¾ GEM – a 50% owned JV – has a seven-year management agreement with the Huron Potawatomi Tribe to develop and manage their casino for a fee equal to 26% of net income. ¾ Full House – through GEM – has been pursuing this development opportunity for over 10 years ¾ In 2
Slide 17: Construction Site
Construction Site Aerial Photograph of the FireKeepers Casino Project Site 17
Slide 18: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan 18
Slide 19: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan 19
Slide 20: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan 20
Slide 21: FireKeepers Floor Plan
Firekeepers Floor Plan LEGEND GAMING FLOOR GAMING ROOMS, WAITING, VESTIBULE RESTAURANTS & BARS, GRAB&GO @ GiFTsHOP MB MONEY HANDLING ® RESTROOMS ® LOCKER ROOMS KITCHEN, SERVICE BARS Mi MECHANICAL , ELECTRICAL GARAGE & STORAGE @sTAIRS @ ADMINISTRATION
Slide 22: South Central Michigan Location
South Central Michigan Location ¾ Primary local market of 1.1 million adults within 50 miles and no competing casinos ¾ Key feeder markets include Battle Creek, Grand Rapids, Kalamazoo and Lansing ¾ Easily accessible from major highways: I-94, I-69 ¾ Mean household income of $61,951 Milwaukee Grand
Slide 23: South Central Michigan Location
South Central Michigan Location ¾ Secondary market of 5.1 million adults within 1-2 hour drive-time ¾ Includes Ann Arbor, Birmingham, Brighton, Flint, Grand Haven, Toledo and Fort Wayne ¾ Only two other competing gaming facilities (we will be the only casino within a 75- mile radius and a 100-mile d
Slide 24: FireKeepers - a first class facility
FireKeepers - a first class facility ¾ Gaming: ¾ 2,500 Class III Slot Machines ¾ 90 Table Games ¾ 20 Poker Tables ¾ High Limit Gaming and VIP areas ¾ Five restaurants and three bars ¾ 2,078-space parking garage attached to the facility ¾ Moderately sized single level construction reduces constructio
Slide 25: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan 25
Slide 26: FireKeepers Casino, Michigan
FireKeepers Casino, Michigan 26
Slide 27: Acquisition Strategy
Acquisition Strategy ¾ Opportunistic strategic buyer ¾ Criteria ¾ Market leading properties in local markets ¾ Near-term geographic preference in Nevada ¾ Size - Similar to Stockman’s Casino ¾ Overlooked Asset - Conservative balance sheet ¾ $5.0 million cash, $5.7 million currently available on line
Slide 28: 2008 Financial Review
2008 Financial Review 28
Slide 29: 2008 Financial Highlights
2008 Financial Highlights ¾ On February 20, we closed on the sale of the Holiday Inn Express in Fallon, Nevada. ¾ Total net proceeds of $7.0 million were applied to the Company’s revolving loan ¾ On May 6, we assisted FireKeepers Development Authority in closing on a $340 million Senior Secured Note
Slide 30: Nine Months '08 Financial Summary
Nine Months ’08 Financial Summary Nine months (unaudited) ended September 30, 2008 2007 Revenue Casino $ 5,694,645 $ 5,385,458 Food and beverage 1,633,989 1,452,885 Other operating income 72,285 333,108 Total Revenue 7,400,919 7,171,451 Operating costs and expenses Operating Costs 3,573,887 3,071,24
Slide 31: Summary Balance Sheet
Summary Balance Sheet September 30, December 31, (unaudited) 2008 2007 Cash $ 6,620,762 $ 7,975,860 Accounts receivable, net 631,714 319,865 Other current assets 784,039 523,778 Assets held for sale 45,000 6,960,762 Net PP&E 8,756,455 9,227,113 Notes receivable for tribal projects 4,985,177 12,178,4
Slide 32: Summary Cash Flow Statement
Summary Cash Flow Statement Nine months ended September 30, (unaudited) 2008 2007 Net cash provided by operating activities $ 1,550,235 $ 2,150,515 Investing activities: Deposits and other cash costs of Stockman's acquisition - (8,317,493) Acquisition of contract rights and other assets (2,092,720)
Slide 33: Conclusion
Conclusion ¾ The Company’s management team is highly focused on the construction and pre-opening effort for the FireKeepers Casino. It is our goal to maximize management fee income beginning at opening ¾ The Company is in a strong liquidity position ¾ We are pursuing additional acquisitions that fit
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