U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998.
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM ________________ TO ______________
Commission File No. 0-20630
-------------
FULL HOUSE RESORTS, INC.
------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 13-3391527
- --------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Full House Resorts, Inc.
12555 High Bluff Drive
Suite 380
San Diego, California 92130
- --------------------------------------- --------------
(Address of principal executive offices) (zip code)
(619) 350-2030
(Registrant's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
As of May 7, 1998, Registrant had 10,340,380 shares of its $.0001 par value
common stock outstanding.
<PAGE>
FULL HOUSE RESORTS, INC.
TABLE OF CONTENTS
PAGE
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PART I. Financial Information
Item 1. Condensed Financial Statements
Condensed Consolidated Balance Sheets as of
March 31, 1998 and December 31, 1997 3
Condensed Consolidated Statements of Operations
for the three months ended March 31, 1998 and 1997 4
Condensed Consolidated Statements of Cash Flows
for the three months ended March 31, 1998 and 1997 5
Notes to Condensed Consolidated Financial Statements 6
Item 6. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. Other Information 12
Signatures 13
2
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<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
- -----------------------------------------------------------------------------------------------------------------
MARCH 31, DECEMBER 31,
ASSETS 1998 1997
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,160,136 $ 2,422,884
Note receivable - joint venture, current portion -- 544,911
Restricted cash 509,540 530,881
Accounts receivable 11,019 10,210
Receivable from related party 105,608 106,760
Inventories 82,455 89,437
Prepaid expenses 178,604 286,126
Receivable from joint ventures 356,484 343,200
----------- -----------
Total current assets 2,403,846 4,334,409
ASSETS HELD FOR SALE - net 5,236,382 5,542,078
LAND HELD FOR DEVELOPMENT 4,568,090 --
GOODWILL - net 1,771,950 1,898,517
NOTE RECEIVABLE - JOINT VENTURE 29,249 23,748
INVESTMENTS IN JOINT VENTURES 5,081,066 5,025,379
OTHER ASSETS 309,365 922,612
----------- -----------
TOTAL $19,399,948 $17,746,743
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 2,737,326 $ 697,100
Accounts payable 94,532 93,504
Accrued expenses 503,862 526,297
State taxes payable -- 16,862
----------- -----------
Total current liabilities 3,335,720 1,333,763
----------- -----------
LONG-TERM DEBT, net of current portion 5,791,377 6,190,562
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Cumulative, convertible preferred stock, par value
$.0001, 5,000,000 shares authorized; 700,000
shares issued and outstanding; aggregate
liquidation preference of $3,307,500 and $3,255,000 70 70
Common stock, par value $.0001, 25,000,000 shares
authorized; 10,340,380 shares issued and outstanding 1,034 1,034
Additional paid in capital 17,057,367 16,957,487
Accumulated deficit (6,785,620) (6,736,173)
------------ ------------
Total stockholders' equity 10,272,851 10,222,418
------------ ------------
TOTAL $ 19,399,948 $ 17,746,743
============ ============
See notes to condensed consolidated financial statements.
</TABLE>
3
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<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31,
1998 1997
<S> <C> <C>
OPERATING REVENUES:
Casino $ 181,358 $ 273,170
Hotel/RV park 234,598 233,476
Retail 221,201 244,353
Food and beverage 169,759 173,158
Fun park 88 747
Joint ventures 827,393 774,456
------------ ------------
1,634,397 1,699,360
Less: promotional allowances (40,067) (30,200)
------------ ------------
Net operating revenues 1,594,330 1,669,160
------------ ------------
OPERATING COSTS AND EXPENSES:
Casino 159,521 274,558
Hotel/ RV park 111,473 116,706
Retail 218,939 225,987
Food and beverage 123,554 134,361
Fun park 7,922 11,389
Sales and marketing 63,592 73,873
General and administrative 579,294 540,625
Depreciation and amortization 129,160 128,312
Impairment of long-lived assets -- 3,220
------------ ------------
Total operating costs and expenses 1,393,455 1,509,031
------------ ------------
INCOME FROM OPERATIONS 200,875 160,129
OTHER INCOME (EXPENSE):
Interest expense and debt issue costs (223,682) (176,005)
Interest and other income 37,885 44,184
------------ ------------
INCOME BEFORE INCOME TAXES 15,078 28,308
PROVISION FOR INCOME TAXES (64,525) (46,025)
------------ ------------
NET LOSS (49,447) (17,717)
Less, undeclared dividends
on cumulative preferred stock 52,500 52,500
------------ ------------
NET LOSS APPLICABLE TO COMMON SHARES $ (101,947) $ (70,217)
============ ============
LOSS PER COMMON SHARE, BASIC AND DILUTED $ (0.01) $ (0.01)
============ ============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 10,340,380 10,339,992
============ ============
See notes to condensed consolidated financial statements.
</TABLE>
4
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<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
- ------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (49,447) $ (17,717)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization 129,160 128,312
Debt issue costs and imputed interest amortization 27,632 64,278
Amortization of deferred compensation expense 99,880 25,237
Impairment of long-lived assets -- 3,220
Equity in income of joint ventures (827,393) (774,456)
Investments in joint ventures -- (88,098)
Distributions from joint ventures 771,706 771,636
Changes in assets and liabilities:
Decrease in accounts receivable 343 16,225
Decrease in restricted cash 21,341 124,641
Decrease in inventories 6,982 7,821
Decrease in prepaid expenses 107,522 118,268
Increase in other assets (3,096) (1,480)
Decrease in accounts payable and accrued expenses (38,269) (12,612)
----------- -----------
Net cash provided by operating activities 246,361 365,275
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of assets held for sale (3,616) (3,220)
Proceeds from nonrefundable
deposit on sale of assets held for sale 300,000 --
Acquisition of land held for development (3,954,340) --
(Increase) decrease in receivables from joint ventures 526,126 (468,295)
----------- -----------
Net cash used in investing activities (3,131,830) (471,515)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank loan 2,000,000 --
Proceeds from exercise of warrants -- 3,500
Repayment of debt (377,279) (70,187)
----------- -----------
Net cash provided by (used in) financing activities 1,622,721 (66,687)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,262,748) (172,927)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,422,884 1,049,183
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,160,136 $ 876,256
=========== ===========
See notes to condensed consolidated financial statements.
</TABLE>
5
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FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERIM CONDENSED FINANCIAL STATEMENTS - The interim condensed
consolidated financial statements of Full House Resorts, Inc. (the
"Company") included herein reflect all adjustments which are, in the
opinion of management, necessary to present a fair statement of the
results for the interim periods presented. All such adjustments are of a
normal recurring nature. Certain information and note disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to the rules and
regulations of the Securities and Exchange Commission.
These condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 1997.
The results of operations for the period ended March 31, 1998 are not
necessarily indicative of the results to be expected for the year ending
December 31, 1998.
CONSOLIDATION - The condensed consolidated financial statements include
the accounts of the Company and all its majority-owned subsidiaries. All
material intercompany accounts and transactions have been eliminated.
2. RECENTLY ISSUED ACCOUNTING STANDARDS
The Financial Accounting Standards Board recently issued Statement of
Financial Accounting Standards No. 130 (FASB 130), Reporting Comprehensive
Income, which is effective for fiscal years beginning after December 15,
1997. FASB 130 establishes standards for reporting and display of
comprehensive income and its components in a full set of general-purpose
financial statements. The Company adopted FASB 130 during the first
quarter of 1998 without a material effect on the disclosures in its
consolidated financial statements.
The Financial Accounting Standards Board recently issued Statement of
Financial Accounting Standards No. 131 (FASB 131), Disclosures about
Segments of an Enterprise and Related Information, which is effective for
financial statements for periods beginning after December 15, 1997. FASB
131 establishes standards for the way that public business enterprises
report information about operating segments in annual financial statements
and requires that those enterprises report selected information about
operating segments on interim financial reports issued to shareholders. It
also establishes standards for related disclosures about products and
services, geographic areas and major customers. The Company has not yet
determined the effect adoption of FASB 131 will have on disclosures in its
consolidated financial statements.
3. SUBSEQUENT EVENT
On March 25, 1998, the Company announced that it has reached an agreement
for the sale of Deadwood Gulch Resort to a group of South Dakota
businessmen. The approval of the South Dakota gaming authorities was
received and the closing of the sale occurred on May 12, 1998.
******
6
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ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
FIRST QUARTER ENDED MARCH 31, 1998 COMPARED TO FIRST QUARTER ENDED MARCH 31,
1997
Revenues for the first quarter ended March 31, 1998 decreased $74,830
or 4.5% to $1,594,330 as compared with revenues of $1,669,160 for the first
quarter ended March 31, 1997. The loss per share for the first quarters ended
March 31, 1998 and 1997 was $0.01.
JOINT VENTURE INCOME
Joint Venture income increased $52,937 or 6.8% for the first quarter
ended March 31, 1998 as compared to the same period in 1997. This increase is
due to the improved operating results from the Oregon and Delaware joint
ventures.
OREGON JOINT VENTURE. The Company's share of income from the Oregon
joint venture increased $19,756 or 8.6% for the first quarter ended March 31,
1998, as compared to 1997 as a result of improved marketing of the casino.
DELAWARE JOINT VENTURE. The Company's share of income from the Delaware
joint venture was $594,748 for the first quarter ended March 31, 1998. This was
an increase in the Company's share of income of $40,520 or 7.3%. As a result of
operating results exceeding initial projections, Midway Slots and Simulcast has
prepaid its obligation to the Delaware joint venture. The joint venture, in
turn, prepaid its obligation to the Company.
CALIFORNIA AND MICHIGAN JOINT VENTURES. As compared to the first
quarter of 1997, the Company's share of the loss from the California and
Michigan joint ventures increased by $7,339 during 1998. The majority of the
increase was due to an advance to the Torres-Martinez tribe for expenses. These
joint venture companies are still in the development stage and do not have
operating revenues.
DEADWOOD GULCH RESORT
CASINO OPERATIONS. Revenues from the casino operations decreased
$91,812 or 33.6% for the first quarter ended March 31, 1998 over the same period
in 1997 due to a significant reduction in Canadian bus tours as a result of
unfavorable currency exchange rate fluctuations. Departmental expenses decreased
$115,037 or 41.9% for the first quarter ended March 31, 1998 from 1997. As a
result of the decrease in revenues and expenses, departmental profit increased
by $23,225 as compared to the same period in 1997.
HOTEL/RV PARK. Hotel occupancy decreased 18.6% for the first quarter
ended March 31, 1998, and the average daily rate increased 20.8%. As a result,
revenues for the first quarter increased $1,122 or 0.5% for the Hotel. Expenses
decreased $5,233 or 4.5% during the three month period ended March 31, 1998 over
the previous year. As a result, Hotel/RV Park departmental profit increased
$6,355 or 5.4%. The Campground was closed for the season during the first
quarters of both 1998 and 1997.
7
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RETAIL. Revenues decreased by $23,152 or 9.5% for the first quarter
ended March 31,1998 from 1997. Expenses in 1998 decreased by $7,048 or 3.1% as
compared to 1997. As a result, departmental profit decreased by $16,104 or
87.7%.
FOOD AND BEVERAGE. Revenues for the first quarter ended March 31, 1998
were $169,759 (which includes $33,339 of promotional allowances), a decrease of
$3,399 or 2.0% from 1997 (which included $27,466 of promotional allowances). The
departmental profit after subtracting promotional allowances increased $1,535 or
13.5% from 1997. Management attributes the improvement to reduction in
departmental expenses of $10,807.
GULCHES OF FUN FAMILY CENTER. Although revenues for the first quarter
ended March 31, 1998 decreased $659 from 1997, due principally to closure of the
Center during the winter season , departmental expenses decreased $3,467 from
1997 and, as a result, departmental loss decreased $2,808.
SALES AND MARKETING EXPENSES. Sales and Marketing expenses decreased
$10,281 or 13.9%.
GENERAL AND ADMINISTRATIVE EXPENSES - RESORT. Expenses decreased
$2,067 or 1.4% in the first quarter of 1998 as compared to the comparable
period in 1997.
NON-RESORT EXPENSES
GENERAL AND ADMINISTRATIVE EXPENSES. Non-Resort expenses for the three
months ended March 31, 1998 increased $40,736 or 10.4%, as compared to the
comparable period in 1997. This increase is primarily due a stock option grant.
On January 6, 1998, Gregg Giuffria, who later became president and chief
operating officer of the Company, was granted an option to purchase 70,001
common shares at $2.03. The options vested immediately. The value of $74,644 for
the options was estimated on the date of grant using the Black-Scholes
option-pricing model with the following assumptions: expected volatility of 95
percent, risk-free interest rate of 5.4 percent, and expected life of 2.0 years.
As the options were granted to a nonemployee in return for services, consulting
expense was recognized in the first quarter of 1998. In 1998, the Company
continued to incur costs related to the investigation, due diligence and
pre-development of various ongoing opportunities for expansion of its business
and the increase in the Company's corporate structure necessary to administer
the Company's expansion.
DEPRECIATION AND AMORTIZATION. Depreciation and amortization increased
$848 for the three months ended March 31, 1998 over 1997.
IMPAIRMENT OF LONG-LIVED ASSETS. In January 1996, the Company announced
its intent to dispose of the Deadwood Gulch Resort. The Company adopted the
provisions of SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS
TO BE DISPOSED OF, during the fourth quarter of the year ended December 31,
1995. Under SFAS No. 121, the Company reviews the carrying values of its
long-lived and identifiable intangible assets for possible impairment whenever
events or changes in circumstances indicate that the carrying amount of assets
may not be recoverable. The Company sold Deadwood Gulch Resort on May 12, 1998.
INTEREST EXPENSE AND DEBT ISSUE COSTS. Interest expense and debt issue
costs increased by $47,677 primarily due to increased borrowings.
INTEREST AND OTHER INCOME. Interest and other income decreased by
$6,299 or 14.3% in 1998 as compared to 1997 due to the prepayment of the
Delaware LLC note receivable.
8
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INCOME TAX EXPENSE. State income tax expense was $64,525 for the first
quarter ended March 31, 1998 and $46,025 for the same period in 1997. At March
31, 1998, the Company had net operating loss carryforwards for federal income
tax purposes of approximately $2,620,000, which may be carried forward to offset
future taxable income. The loss carryforwards expire in 2007 through 2014. The
availability of the loss carryforwards may be limited in the event of a
significant change in ownership of the Company or its subsidiaries.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
Earnings before interest, taxes, depreciation and amortization
(EBITDA), for the three months ended March 31, 1998 improved by $38,374 or 13.2%
over 1997 to $330,035 for the three months ended March 31, 1998. EBITDA should
not be construed as an indication of the Company's operating performance, or as
an alternative to cash flows from operating activities as a measure of
liquidity. The Company has presented EBITDA solely as supplemental disclosure
because the Company believes that it enhances the understanding of the financial
performance of companies with substantial depreciation and amortization.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended March 31, 1998, cash of $246,361 was
provided by operating activities. Sources of cash included distributions from
joint ventures of $771,706, depreciation and amortization of $229,040, debt
issue costs and debt discount of $27,632 and a decrease in prepaid expenses of
$107,522, but reduced by equity in income of joint ventures of $827,393 net loss
of $49,447 more fully explained above and other net uses of cash of $12,699.
Cash from investing activities was used in the amount of $3,131,830, primarily
as a result of an acquisition of land totaling $3,954,340 and purchases of
assets held for sale of $3,616, but reduced by a decrease in receivables from
joint ventures of $526,126, and receipt of a $300,000 nonrefundable deposit.
Cash provided by financing activities was $1,622,721 which was the result of
proceeds from borrowings of $2,000,000, reduced by repayment of debt totaling
$377,279. As a result of the above factors, there was a net decrease in cash and
cash equivalents of $1,262,748.
During the first three months of 1998, the Company's working capital
declined by $3,932,520 to a working capital deficit of $931,874 as of March 31,
1998 due to the acquisition of land discussed herein.
On November 20, 1995, Full House merged a wholly-owned subsidiary into
Omega Properties Inc. (30% owned by William P. McComas, a director/stockholder
of the Company). In exchange, the shareholders of Omega received an aggregate of
500,000 shares of Full House Common Stock and a promissory note of Full House in
the principal amount of $375,000. The principal amount of this promissory note
accrues interest, payable quarterly, at a rate equal to the "prime" rate, 8.5%
at March 31, 1998, and such principal amount, together with all accrued
interest, is due and payable in full upon demand by the holder of this note.
William P. McComas received the note and Mr. Fugazy, the other stockholder of
Omega, received the shares in exchange for their interests as shareholders of
Omega. On May 11, 1998, Full House received a request for repayment of the
$375,000 note and intends to repay the note, plus all accrued interest.
Full House is a party to a series of agreements with GTECH Corporation,
a leading supplier of computerized systems and services for
government-authorized lotteries, to jointly pursue certain gaming opportunities.
Pursuant to the agreements, joint venture companies equally owned by GTECH and
Full House have been formed. Full House has contributed its rights to the North
Bend, Oregon facility and the rights to develop the Torres Martinez,
Nottawaseppi Huron Band of Potawatomi and Delaware State Fair projects to the
joint venture companies. GTECH has contributed cash and other intangible assets
and has
9
<PAGE>
agreed to loan the joint venture entities up to $16.4 million to complete the
North Bend, Oregon and Delaware facilities. Full House has agreed to guarantee
one-half of the obligations of the joint venture companies to GTECH under these
loans and has guaranteed to GTECH one-half of a $2.0 million loan to the North
Bend, Oregon Indian Tribe. GTECH also provides project management, technology
and other expertise to analyze and develop/manage the implementation of
opportunities developed by the joint venture entities. GTECH has also loaned
Full House $3 million, which loan was convertible, until January 1998 into
600,000 shares of Full House Common Stock. The loan conversion clause expired
without exercise. The note bears interest at prime. Interest is paid monthly and
the unpaid principal and interest are due on January 25, 2001. In addition, Full
House has been reimbursed by one of the joint venture companies for certain
advances and expenditures made by Full House relating to the gaming development
agreements. As part of this transaction, Allen E. Paulson, William P. McComas
and Lee Iacocca have granted to GTECH an option to purchase their shares should
they propose to transfer the same. The parties are no longer required to present
gaming opportunities to the other for joint development.
The Company advanced funds to the Delaware joint venture company
totaling $1,886,498, of which $544,911 was outstanding as of December 31, 1997.
The note was paid in full as of February 1998.
As a result of its agreements with GTECH, receipt by Full House of
revenues from the operations of projects (other than the Deadwood Gulch Resort)
is governed by the terms of the joint venture agreements applicable to such
projects. These contracts provide that net cash flow (after certain deductions)
is to be distributed monthly to Full House and GTECH. While Full House does not
believe that this arrangement will adversely impact its liquidity, no assurances
of the same can be given based upon the lack of operating experience with this
structure.
On May 31, 1995, DGR borrowed $5 million, secured by its real property.
The note bears interest at prime plus 2-1/4%, which was 10.75% at March 31,
1998. Payments are due in monthly installments of principal and interest based
on a ten-year amortization with the remaining balance due on May 31, 2002. A
portion of the loan has been guaranteed by Messrs. McComas and Paulson and a
former director of the Company. The agreements executed by DGR in connection
with the note limit payments by DGR to Full House. The agreements included
financial covenants which require maintenance of minimum tangible net worth and
debt service coverage ratios. This debt was retired with the proceeds from the
sale of the Resort on May 12, 1998.
On February 23, 1998, the Company completed the purchase of a portion
of a proposed gaming site in Biloxi, Mississippi. The Company acquired the site
for $4,155,000 and the payment of certain related costs. The Company utilized
cash on hand of $2,155,000 and obtained a $2 million bank loan in connection
with the purchase. The bank loan is due on February 25, 1999 and bears interest
at 1% above the prime rate of the bank. The loan can be renewed under certain
circumstances. Negotiations to develop a theme hotel/casino at the site, with
investment partners, remain underway. The completion of the proposed transaction
is subject to the approval of all required Mississippi gaming authorities as
well as completion of due diligence, approval by the Company's Board of
Directors, execution of definitive agreements with respect to acquisition and
development of the site, and receipt of financing for the project.
As of March 31, 1998, Full House had cumulative undeclared and unpaid
dividends in the amount of $1,207,500 on the 700,000 outstanding shares of its
1992-1 Preferred Stock. Such dividends are cumulative whether or not declared,
and are currently in arrears.
Additional financing will be required for the Company to effect its
business strategy and no assurance can be given that such financing will be
available upon commercially reasonable terms.
10
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YEAR 2000 ISSUES
The Company has implemented a Year 2000 program to ensure that its
computer systems and applications will function properly beyond 1999. The
Company believes that it has allocated adequate resources for this purpose and
expects its Year 2000 date conversion program to be completed successfully on a
timely basis. Although the ability of third parties with whom the Company
transacts business to address their Year 2000 issues is outside the Company's
control, the Company is discussing with its joint venture partners, significant
vendors and customers the possibility of any interface difficulties which may
affect the Company. The Company currently does not expect the costs necessary to
address this matter to be material to its financial condition or results of
operations.
11
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PART II - OTHER INFORMATION
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
As of March 31, 1998, cumulative dividends were $1,207,500, which
were undeclared, unpaid and were in arrears, with respect to the
Company's Series 1992-1 Preferred Stock, which class ranks prior to
the Company's Common Stock with regard to dividend and liquidation
rights.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
27.1 Financial Data Schedule
(b) Reports on Form 8-K;
Acquisition of Assets - filed March 12, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Company has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
FULL HOUSE RESORTS, INC.
Date: May 14, 1998
By /s/GREGG R GIUFFRIA
-----------------------------
Gregg R. Giuffria, President and
Principal Financial Officer
13
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EXHIBIT INDEX
EXHIBIT DESCIPTION
- ------- ----------
27.1 Finamcial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,669,676
<SECURITIES> 0
<RECEIVABLES> 502,360
<ALLOWANCES> 0
<INVENTORY> 82,455
<CURRENT-ASSETS> 2,403,846
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,399,948
<CURRENT-LIABILITIES> 3,335,720
<BONDS> 0
0
70
<COMMON> 1,034
<OTHER-SE> 10,271,747
<TOTAL-LIABILITY-AND-EQUITY> 19,399,948
<SALES> 1,594,330
<TOTAL-REVENUES> 1,594,330
<CGS> 0
<TOTAL-COSTS> 1,393,455
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 223,682
<INCOME-PRETAX> 15,078
<INCOME-TAX> 64,525
<INCOME-CONTINUING> (49,447)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (49,447)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
