Good day, and welcome to the Full House Resorts Fourth Quarter 2014 Earnings Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Lewis Fanger, Chief Financial Officer of Full House Resorts. You may begin.

Well, hello, everyone. Welcome to the Full House Resorts fourth quarter 2014 earnings call. Just really quick, we may make some forward-looking statements on this call related to our estimated future results and other market, business, and property trends and information. We undertake no obligation to update or revise any forward-looking statements that are made today. Actual results may differ materially from those projected in any forward-looking statement as a result of certain risks and uncertainties, including, but not limited to those noted in our earnings release, our periodic reports and our other filings with the SEC. During our call today, we also may make reference to non-GAAP financial measures. For a reconciliation of historical non-GAAP to GAAP financial measures, please refer to our earnings press release and our Form 8-K furnished with the SEC today. Both of those are available under the Investors Section of our corporate website at fullhouseresorts.com. Just really quick, I’ll give you a snapshot of the quarter. Revenues, you likely saw, declined 15%, that was about $4.7 million to $26.7 million. The bulk of the decline was at Rising Star where revenues were off $3.8 million from last year. A lot of that, as you know, is due to new competition from Ohio casinos. In May of this year, we will lap the opening of Belterra Park; August of this year, we will lap the opening of Hollywood, Dayton and then we are done lapping all the openings that we expect under Ohio. Adjusted EBITDA was also down. We were at $266,000 for the year versus $1.6 million last year in the fourth quarter. A big part of that decline again is related to the expiration of the management contract that was $550,000. There was another $602,000 that was due to the write-off of some stock offering costs in the fourth quarter. Absent those costs, the quarter would have actually been down about $69,000 or so from the fourth quarter of 2013. So, our EBITDA was down about $200,000; Northern Nevada actually increased about $140,000 to $619,000 and then Rising Star was at negative $322,000 of EBITDA for the quarter. That’s a quick highlight for you. I am looking over at Dan, who is itching and ready to go.

That’s fine. I wasn’t a year and I guess that’s why we are here actually. Three of the four people here in the room are totally new to the company and even Adams has been promoted and largely new. But that’s also why the stock is down 50% from where it was last year. Last year, it traded at about $2.80 a share and had been there for a while, got down as low as I think $0.87 and it’s back a little to $1.40. But even with the recent rise, it’s still half at where it was a year ago. So if you are looking at it for the year, I mean Silver Slipper for a long time did $9 million and $10 million a year of EBITDA, ended this year at $7.5 million. Rising Star has been a falling star for quite some time and for the year was at $2.2 million, down from $5.4 million. Even that is a little understated because there is a new hotel there and I’ll mention more about it later, but that hotel was leased. It opened in November of 2013 and there is $800,000 of rent, which ends up on our interest expense line. So if you backup that rent, it was really like $1.4 million versus $5.4 million. Northern Nevada was down some $1 million down to $4.7 million. Within that, the Hyatt at Lake Tahoe where we lease and operate the casino did well and Fallon did poorly continuing the trend that Fallon’s had for a while. Management fee income was $1.1 million versus $1.7 million. The contract expired with the tribe in New Mexico chose not to renew it before we got here, so we don’t know why. And corporate was flat at $4.7 million both years, while…

[Operator Instructions] And we will take a question at this time from Chad Beynon from Macquari. Please go ahead.

Hi, guys, good afternoon. Hi, Dan, Lewis that was a great recap on the Full House story over the past couple of years and some detail around where the company can go from here. You both obviously bring a lot of credibility to shareholders and from obviously the buy and sell side community. But I was just kind of wondering what the major reasons were for you taking this job, had you looked at it before you were approached and what can the company look like few years from now just kind of big picture? Thanks.

Okay. Well I was aware that for a while, you may recall Lewis and I worked together on Mojito Pointe project in Lake Charles, which I own most of and we sold it to Ameristar and then it was sold to Golden Nugget and now it is open and it is great to see it's doing really well. Frankly, I sold it at a nice profit for us. I have mixed feelings about it. If I had kept it, I would probably be even happier, but I'm not unhappy. One of the big backers we had in that were the individuals in PENN Capital. And PENN Capital as a firm was I think at the time the largest shareholder of Full House. And so almost as soon as we sold that, they brought it up and said they were concerned about this whole company, would I take a look at it, what can we do and all this stuff. And I looked at it and the stock is about $3 a share and they had a pretty entrenched board and I said, I just don’t know what I could really do. I agreed that it was a problem and the liquidity and the stock wasn't good and so on. And then the whole Fitz Tunica thing happened, then the stock fell more. And when they got down below the $1, I said, well, at least I should buy some shares and I just bought some in my account and started looking at it. And then PENN Capital frankly sold the piece of their position to Brad Tirpak and Craig Thomas, who called me up and said we should work together on this, we can make change happen and it's something they frankly know better than I do. I know how…

Hi, Chad, it’s Lewis. I will tell you day one when I started I kind of saw some of the opportunity for things that changed around here, but now that I have been here five or six weeks and I keep pulling up the cushions on the various sofas around here and finding a $100,000 there, $10,000 there at a company that’s smallest quite joyous to find. And these are little things that don't affect the customer, they don't affect the employees at all, it’s just from the shier fact that we were over paying for some of our services. And so – just in the past month there is easily $0.5 million of stuff that you will see start to roll forward, you won’t necessarily see in the first of the year, but as contracts roll off, you will start to see that from a corporate perspective. Little things like that are exciting. I’ll tell you I am much more optimistic now than I was on day one and I was obviously more than on-board on day one, it's fun.

Got you. Thank you, guys. And then I will just kind of dive into maybe operationally. So you talked about Silver Slipper, obviously, the number one property, getting that back to $9 million or $10 million of EBITDA, hopefully will hang on a couple more million when the hotel comes on. I mean is there an opportunity once you potentially fix the balance sheet, you know you talked about a sale leaseback and potentially paying down some debt, is there an opportunity to bring on another property similar to Silver Slipper in terms of profitability to give you guys two major properties to kind of weigh out the balance?

Yes, but I don't feel an urgent need to like run for scale because I think if you have an urgent need to run for scale, you’ll make mistakes and overpay for stuff. First, we got to fix what we have. Now fixing what we have means getting Rising Sun to be a meaningful contributor again, getting Fallon up, getting the lease extended at the Hyatt. And if all that happens, Silver Slipper will be half or less of our EBITDA even with its growth. So we won’t – if we could just play with what we have and do it right, we won’t be a single property company. Now at some point, you find an opportunity to go do another Silver Slipper of course and they come along frankly once a week now I get overture from one thing or another and there will be something. But I don’t know where it is at this point and we are pretty focused on fixing what we have. Because you got to fix what we have before you can figure out how to finance something new or acquire something new. So we are focused on fixing what we have, moving the debt maturity back, a year from now we might have a different focus.

Okay, thanks. And then, Lewis, just on the cash flow statement. The K hasn’t been released yet, but do you have the number for annual cash flow from operations and then I guess for both of you may be a CapEx number for 2015, just kind of thinking about maintenance and the rest of the cost for Silver Slipper would be helpful. Thanks.

Yes. So we will file the K relatively shortly likely in the next 10 days or so. My guys are pulling up to [carry] not to give me a figure. But for last year for what it’s worth, CapEx was about $2.5 million that’s for 2014. For 2015, we are kind of plugging through some various things right now. The Dan has some ideas for Rising Star, but you could see a number in the ballpark of $4 million or $5 million.

I think what we told our banks were very preliminary discussion in refinancing was to think of maintenance CapEx of being about $3 million a year company-wide. There is about $2 million that we’d like to put into Rising Star, but that’s little bit contingent on the legislature not giving us a real raw deal. But assuming that either the table games don’t happen or there is an accompanying tax break, there is $2 million – some of that is just fixing what I would call – they didn’t spend CapEx before. So some of it is going in and trying to make it more presentable now. And then we have to complete the hotel and I think of the $20 million like $12 million of the hotel ends up in the [indiscernible] because most of the spending is backend loaded.

Yes, it is, that’s right. So to give you a little more to chat, cash from operating activities was about well over $7.5 million in ’14 and then if you actually include the construction contracts for the hotel, CapEx spend would have been around $9.5 million, $9.6 million.

Then completing with the suites at the hotel, it ends up being including capitalized interest and everything, it’s about $20 million project which has been $1 million more than it was. All but $1 million of that is being financed through the bank deal. We have the other million and then the tax refund also gives us some extra money. So we think actually apart from the money being drawn down to pay for the hotel, we will generate more cash this year than we will spend on CapEx. That’s what your question is, where we have a need for cash, no we will probably start paying down debt this year after the hotels open.

Yes, that’s what I was getting up. Thank you and best of luck to both of you.

Thank you.

Thanks, Chad.

[Operator Instructions]

Oh, we answered everyone’s questions, alright? Thank you very much and we’re working hard in doing our best.

One more in the queue.

Is it one more in that Matt?

We have one more question that queued up. This will be from Marc Franklin with Wells Fargo Advisors.

Yes, sorry guys. I was at the dentist and just tuned in and I am probably – you’ve answered this question, but I have to be at Silver Slipper day before yesterday, noticed the roads getting there were pretty bad especially that coast road with 25 miles an hour, is it county or city or whoever is in-charge going to help you out to get to the place leisure?

I honestly don’t know the answer. It’s not easy to get to we’re like 8 miles off the freeway. There is one area where you pass a school and you have to slowdown quite a bit. Most of that 8 miles though is a four-lane road. It’s when you turn off under a two-lane road and you got like three miles or four miles. And I don’t know of anything to widen that. I guess it’s kind of – if we have a good enough care at the end of the road people get there and we’re trying to improve the care. I know at Belterra, we had a very difficult road to get there and eventually we did get Kentucky to build the better road, but it took years. And I think in this case, the road is what it is.

Okay.

Frankly, I am more focused on Rising Star getting a ferryboat in really moves the needle because that takes us from a geographically challenged place to being the closest casino to something like 60,000 people. Whereas today, we are probably the closest casino at about 6,000 people. And a ferryboat is pretty easy to get in, you can have a privately run ferryboat whereas I can’t build a private road across the swamps in Southwest Mississippi. So I think the roads are kind of what they are. The good news is the property – I mean before we acquired it, this property made $11 million a year for several years even with those roads and without a hotel.

Okay, very good. And your annual meeting will be announced I guess at some point?

It’s May 5.

May 5, yes.

Okay.

We are going to have it at our law firm’s offices in Las Vegas because they have a big conference room and they have given to us for free.

Okay. Well, goo luck.

I might dream about Krispy Kreme Doughnuts or something.

Anything else?

No, thank you very much.

Okay, thanks everybody. Take care.

Ladies and gentlemen, this does conclude today’s conference call. Thank you all for your participation.