Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.4.0.3
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
We manage our casinos based on geographic regions within the United States. The casino/resort segments include the Silver Slipper Casino and Hotel in Hancock County, Mississippi; the Rising Star Casino Resort in Rising Sun, Indiana; and the Northern Nevada segment, which consists of the Grand Lodge Casino in Incline Village, Nevada and Stockman’s Casino in Fallon, Nevada. We no longer have a Development/Management segment as we did not manage any properties for others during the reporting periods.

The Company's management utilizes Adjusted Property EBITDA as the primary profit measure for its segments. Adjusted Property EBITDA is a non-GAAP measure defined as Adjusted EBITDA before corporate-related costs and expenses that are not allocated to each property. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, pre-opening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, board and executive transition costs, project development and acquisition costs, and non-cash share-based compensation expense. Adjusted EBITDA or Adjusted Property EBITDA should not be construed as an alternative to operating income or net income for use as an indicator of our performance; or as an alternative to cash flows from operating activities for use as a measure of liquidity; or as an alternative to any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA or Adjusted Property EBITDA information may calculate Adjusted EBITDA or Adjusted Property EBITDA in a different manner.

The following tables reflect selected operating information for our reporting segments for the three months ended March 31, 2016 and 2015 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):
For the three months ended March 31, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Corporate
 
Consolidated
Revenues, net
$
4,916

 
$
12,246

 
$
14,845

 
$
—

 
$
32,007

 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
767

 
$
1,301

 
$
2,661

 
$
—

 
$
4,729

 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
191

 
669

 
829

 
4

 
1,693

Corporate expenses
—

 
—

 
—

 
1,161

 
1,161

Project development and acquisition costs
—

 
—

 
—

 
287

 
287

Stock compensation
—

 
—

 
—

 
57

 
57

Operating income (loss)
576


632


1,832


(1,509
)
 
1,531

Non-operating expense:
 
 
 
 
 
 
 
 


Interest expense
—

 
53

 
4

 
1,705

 
1,762

Non-operating expense
—


53


4


1,705


1,762

Income (loss) before income taxes
576


579


1,828


(3,214
)

(231
)
Provision for income taxes
—

 
1

 
98

 
—

 
99

Net income (loss)
$
576


$
578


$
1,730


$
(3,214
)
 
$
(330
)
For the three months ended March 31, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Corporate
 
Consolidated
Revenues, net
$
4,245

 
$
11,115

 
$
13,724

 
$
—

 
$
29,084

 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
363

 
$
205

 
$
2,696

 
$
—

 
$
3,264

 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
200

 
688

 
1,100

 
4

 
1,992

Impairments
80

 
—

 
—

 
4

 
84

Corporate expenses
—

 
—

 
—

 
1,123

 
1,123

Project development and acquisition costs
—

 
—

 
—

 
4

 
4

Pre-opening
—

 
—

 
38

 
—

 
38

Stock compensation
—

 
—

 
—

 
37

 
37

Operating income (loss)
83

 
(483
)
 
1,558

 
(1,172
)
 
(14
)
Non-operating expense:
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
—

 
42

 
5

 
1,478

 
1,525

Other
—

 
(11
)
 
—

 
(1
)
 
(12
)
Non-operating expense
—

 
31

 
5

 
1,477

 
1,513

Income (loss) before income taxes
83


(514
)

1,553


(2,649
)

(1,527
)
Provision for income taxes
2

 
2

 
219

 
5

 
228

Net income (loss)
$
81


$
(516
)

$
1,334


$
(2,654
)

$
(1,755
)






Selected balance sheet data as of March 31, 2016 and December 31, 2015 follows:
As of March 31, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
Northern
Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Corporate
 
Consolidated
Total assets
$
11,435

 
$
35,957

 
$
80,889

 
$
10,142

 
$
138,423

Property, equipment and capital lease, net
5,909

 
30,735

 
60,411

 
346

 
97,401

Goodwill
1,809

 
—

 
14,671

 
—

 
16,480

Liabilities
1,818

 
10,108

 
3,216

 
67,031

 
82,173

As of December 31, 2015
(In thousands)
 
Casino/Resort Operations
 
 
Northern
Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Corporate
 
Consolidated
Total assets
$
12,105

 
$
37,141

 
$
82,621

 
$
9,600

 
$
141,467

Property, equipment and capital lease, net
6,098

 
31,391

 
61,150

 
343

 
98,982

Goodwill
1,809

 
—

 
14,671

 
—

 
16,480

Liabilities
1,834

 
10,034

 
3,389

 
69,687

 
84,944