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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 8-K/A
AMENDMENT NO. 1 TO CURRENT REPORT
Pursuant to Section 13 or 15(D) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) MAY 12, 1998
FULL HOUSE RESORTS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-20630 13-3391527
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification no.)
FULL HOUSE RESORTS, INC.
12555 HIGH BLUFF DRIVE
SUITE 380
SAN DIEGO, CALIFORNIA 92130
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (619) 350-2030
DEADWOOD GULCH RESORT, HIGHWAY 85 SOUTH, DEADWOOD, SOUTH DAKOTA 57732
(Former name or former address, if changed since last report.)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
THE FOLLOWING DOCUMENTS ARE FILED WITH, AND AS A PART OF, THIS FORM
8-K/A:
(B) PRO FORMA FINANCIAL INFORMATION
Pro Forma Consolidated Financial Information
Pro Forma Consolidated Balance Sheet as of March 31, 1998
Pro Forma Consolidated Statement of Operations for the Three
Months Ended March 31, 1998
Pro Forma Consolidated Statement of Operations for the Year
Ended December 31, 1997
Notes to Pro Forma Consolidated Financial Statements
-2-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
FULL HOUSE RESORTS, INC.
By: /s/ GREGG R. GIUFFRIA
--------------------------------------
July 23, 1998 Gregg R. Giuffria, President and Chief
Operating Officer
-3-
<PAGE>
PRO FORMA CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
BASIS OF PRESENTATION
On February 2, 1998 the Company signed a Purchase and Sale Agreement
for the purchase of the Deadwood Gulch Resort by Todd Young; an individual
acting on behalf of a group of South Dakota businessmen led by Ron Island. The
sale of the Deadwood Gulch Resort was completed on May 12, 1998 for $6,000,000
cash and the proration of certain related items.
The following pro forma consolidated balance sheet as of March 31,
1998, gives pro forma effect to the sale as if such transaction had been
completed on March 31, 1998. The pro forma consolidated statements of operations
for the three months ended March 31, 1998 and for the year ended December 31,
1997 give pro forma effect to the sale as if the transaction had been completed
on January 1, 1998 and January 1, 1997 respectively.
The pro forma consolidated financial statements do not purport to
represent what the Company's operating results for the three months ended March
31, 1998 or the year ended December 31, 1997 and its financial position would
actually have been had the sale described above in fact occurred at January, 1,
1998, January 1, 1997 or March 31, 1998 or to project the Company's financial
position or operating results for any future date or period.
The pro forma adjustments are described in the notes hereto and are
based upon available information and upon certain assumptions that the Company
believes are reasonable in the circumstances.
-4-
<PAGE>
<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEETS
MARCH 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
HISTORICAL PRO FORMA PRO FROMA
COMPANY ADJUSTMENTS RESULTS
------- ----------- -------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,160,136 $5,700,000 (a) $3,899,852
26,230 (b)
(3,496,054) (c)
509,540 (d)
Restricted cash 509,540 (509,540) (d) 0
Accounts receivable 11,019 (3,620) (a) 5,492
(1,907) (b)
Receivable from related party 105,608 0 105,608
Inventories 82,455 (82,455) (b) 0
Prepaid expenses 178,604 (43,426) (a) 118,878
(16,300) (b)
Receivable from joint ventures 356,484 0 356,484
------------------- ------------------- -------------------
Total current assets 2,403,846 2,082,468 4,486,314
ASSETS HELD FOR SALE - net 5,236,382 (5,236,382) (a) 0
LAND HELD FOR DEVELOPMENT 4,568,090 0 4,568,090
GOODWILL - net 1,771,950 0 1,771,950
NOTE RECEIVABLE - JOINT VENTURE 29,249 0 29,249
INVESTMENT JOINT VENTURE 5,081,066 0 5,081,066
OTHER ASSETS - net 309,365 0 309,365
------------------- ------------------- -------------------
TOTAL $19,399,948 ($3,153,914) $16,246,034
=================== =================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $2,737,326 ($362,326) (c) $2,375,000
Accounts payable 94,532 (37,570) (c) 56,962
Accrued expenses 503,862 (67,119) (b) 131,962
(304,781) (c)
------------------- ------------------- -------------------
Total current liabilities 3,335,720 (771,796) 2,563,924
------------------- ------------------- -------------------
------------------- ------------------- -------------------
LONG-TERM DEBT, net or current portion 5,791,377 (2,791,377) (c) 3,000,000
------------------- ------------------- -------------------
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 70 0 70
Common stock, par value $.0001, 25,000,000 shares
authorized; 10,340,380 shares issued and outstanding 1,034 0 1,034
Additional paid in capital 17,057,367 0 17,057,367
Accumulated deficit (6,785,620) 416,572 (a) (6,376,361)
(7,313) (b)
------------------- ------------------- -------------------
Total stockholders' equity 10,272,851 409,259 10,682,110
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL $19,399,948 ($3,153,914) $16,246,034
=================== =================== ===================
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
HISTORICAL PRO FORMA PRO FORMA
COMPANY ADJUSTMENTS RESULTS
------- ----------- -------
<S> <C> <C> <C>
OPERATING REVENUES:
Casino $181,358 ($181,358) (e) $0
Hotel/RV park 234,598 (234,598) (e) 0
Retail 221,201 (221,201) (e) 0
Food and beverage 169,759 (169,759) (e) 0
Fun park 88 (88) (e) 0
Joint ventures 827,393 0 827,393
------------------- ------------------- -------------------
1,634,397 (807,004) 827,393
Less: promotional allowances (40,067) 40,067 (e) 0
------------------- ------------------- -------------------
Net operating revenues 1,594,330 (766,937) 827,393
------------------- ------------------- -------------------
OPERATING COSTS AND EXPENSES:
Casino 159,521 (159,521) (e) 0
Hotel/RV park 111,473 (111,473) (e) 0
Retail 218,939 (218,939) (e) 0
Food and beverage 123,554 (123,554) (e) 0
Fun park 7,922 (7,922) (e) 0
Sales and marketing 63,592 (63,592) (e) 0
General and administrative 579,294 (147,764) (e) 431,530
Depreciation and amortization 129,160 0 129,160
------------------- ------------------- -------------------
Total operating costs and expenses 1,393,455 (832,765) 560,690
------------------- ------------------- -------------------
INCOME FROM OPERATIONS 200,875 (65,828) 266,703
OTHER INCOME (EXPENSE):
Interest expense and debt issue costs (223,682) 121,400 (e) (102,282)
Interest income and other income 37,885 (6,862) (e) 31,023
------------------- ------------------- -------------------
INCOME BEFORE INCOME TAXES 15,078 (180,366) 195,444
PROVISION FOR INCOME TAXES 64,525 0 64,525
------------------- ------------------- -------------------
NET INCOME/(LOSS) ($49,447) ($180,366) 130,919
=================== ===================
Less, undeclared dividends
on cumulative preferred stock (52,500)
-------------------
NET INCOME APPLICABLE TO COMMON SHARES $78,419
===================
NET INCOME PER COMMON SHARE, BASIC AND DILUTED $0.01
===================
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 10,340,380
===================
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
-6-
<PAGE>
<TABLE>
<CAPTION>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATION
FOR THE YEAR ENDED DECEMBER 31, 1997 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
HISTORICAL PRO FORMA PRO FORMA
COMPANY ADJUSTMENTS RESULTS
------- ----------- -------
<S> <C> <C> <C>
OPERATING REVENUES:
Casino $1,271,413 ($1,271,413) (e) $0
Hotel/RV park 1,580,340 (1,580,340) (e) 0
Retail 1,171,001 (1,171,001) (e) 0
Food and beverage 755,621 (755,621) (e) 0
Fun park 564,958 (564,958) (e) 0
Joint Venture 3,109,865 0 3,109,865
------------------- ------------------- -------------------
8,453,198 (5,343,333) 3,109,865
Less: promotional allowances (154,409) 154,409 (e) 0
------------------- ------------------- -------------------
Net operating revenues 8,298,789 (5,188,924) 3,109,865
------------------- ------------------- -------------------
OPERATING COSTS AND EXPENSES:
Casino 916,783 (916,783) (e) 0
Hotel/RV park 539,031 (539,031) (e) 0
Retail 1,103,401 (1,103,401) (e) 0
Food and beverage 579,122 (579,122) (e) 0
Fun park 338,224 (338,224) (e) 0
Sales and marketing 286,195 (286,195) (e) 0
General and administrative 2,194,897 (580,220) (e) 1,614,677
Depreciation and amortization 524,049 0 524,049
Impairment allowance 3,220 (3,220) (e) 0
------------------- ------------------- -------------------
Total operating costs and expenses 6,484,922 (4,346,196) 2,138,726
------------------- ------------------- -------------------
INCOME FROM OPERATIONS 1,813,867 (842,728) 971,139
OTHER INCOME (EXPENSE):
Interest expense and debt issue costs (696,052) 439,247 (e) (256,805)
Interest income and other income 144,625 (18,114) (e) 126,511
------------------- ------------------- -------------------
NET INCOME BEFORE INCOME TAXES 1,262,440 (421,595) 840,845
PROVISION FOR INCOME TAXES 275,641 0 275,641
------------------- ------------------- -------------------
NET INCOME $986,799 ($421,595) 565,204
=================== ===================
Less, undeclared dividends
on cumulative preferred stock (210,000)
-------------------
NET INCOME APPLICABLE TO COMMON SHARES $355,204
===================
NET INCOME PER COMMON SHARE, BASIC AND DILUTED $0.03
===================
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 10,340,284
===================
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
-7-
<PAGE>
FULL HOUSE RESORTS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(a) To record the sale of Deadwood Gulch Resort ("DGR"). An increase in
cash of $5,700,000 for the purchase price of $6,000,000 less a
non-refundable deposit of $300,000 which had already been received, a
reduction of accounts receivable of $3,620 for items over 30 days old,
a reduction in prepaid expenses of $43,426 for slot machine licenses
paid through June 30, 1998, a reduction of assets held for sale of
$5,236,382 and a decrease in accumulated deficit of $416,572 to reflect
the gain on sale.
(b) To record the proration of certain items. An increase in cash of
$26,230 for the sale of pro rated items, a decrease in accounts
receivable of $1,907 for items less than 30 days old, a reduction in
inventories of $82,455, a reduction in prepaid expenses of $16,300, a
reduction in accrued expenses of $67,119 for advance deposits received
and an increase to accumulated deficit of $7,313 for agreed upon
repairs to the property.
(c) To record the repayment of DGR debt and current obligations totaling
$3,496,055 as a result of the sale of DGR. Cash is decreased by
$3,496,054, current portion of long-term debt is decreased by $362,326,
long-term debt is decreased by $2,791,377, accounts payable are
decreased by $37,570 and accrued expenses are decreased by $304,781.
(d) Restricted cash becomes unrestricted due to the repayment of the
long-term debt of DGR.
(e) To record the pro forma effect on operations and net income per share
of the sale of DGR.
-8-
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