Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.3.0.814
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
We manage our casinos based on geographical regions within the United States. The casino/resort segments include the Silver Slipper Casino and Hotel in Bay St. Louis, 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. The Development/Management segment includes costs associated with casino-related development and management projects, including our management contract with the Pueblo of Pojoaque that expired in September 2014.

In 2015, the Company's management began utilizing 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, preopening 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 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 and nine months ended September 30, 2015 and 2014 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):
For the three months ended September 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
6,809

 
$
12,563

 
$
14,894

 
$
—

 
$
—

 
$
34,266

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,227

 
$
2,455

 
$
2,413

 
$
—

 
$
—

 
$
7,095

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
199

 
678

 
1,322

 
—

 
4

 
2,203

Preopening costs
—

 
—

 
21

 
—

 
—

 
21

Corporate expenses
—

 
—

 
—

 
—

 
844

 
844

Project development and acquisition costs
—

 
—

 
—

 
709

 
—

 
709

Stock compensation
—

 
—

 
—

 
—

 
57

 
57

Operating income (loss)
2,028


1,777


1,070


(709
)

(905
)
 
3,261

Non-operating expense:
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
—

 
40

 
4

 
—

 
1,785

 
1,829

Non-operating expense
—


40


4


—


1,785


1,829

Income (loss) before income taxes
2,028


1,737


1,066


(709
)

(2,690
)

1,432

Provision (benefit) for income taxes
—

 
(61
)
 
3

 
—

 
(545
)
 
(603
)
Net income (loss)
$
2,028


$
1,798


$
1,063


$
(709
)

$
(2,145
)
 
$
2,035

For the three months ended September 30, 2014
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
7,134

 
$
13,399

 
$
12,111

 
$
273

 
$
—

 
$
32,917

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,463

 
$
1,650

 
$
1,736

 
$
273

 
$
—

 
$
6,122

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
209

 
766

 
1,419

 
—

 
4

 
2,398

Corporate expenses
—

 
—

 
—

 
—

 
936

 
936

Project development and acquisition costs
—

 
—

 
—

 
72

 
—

 
72

Stock compensation
—

 
—

 
—

 
—

 
59

 
59

Operating income (loss)
2,254

 
884

 
317

 
201

 
(999
)
 
2,657

Non-operating expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
—

 
62

 
5

 
—

 
1,547

 
1,614

Settlement loss
—

 
—

 
—

 
—

 
1,700

 
1,700

Other
21

 
31

 
9

 
—

 
—

 
61

Non-operating expense
21

 
93

 
14

 
—

 
3,247

 
3,375

Income (loss) before income taxes
2,233


791


303


201


(4,246
)

(718
)
Provision (benefit) for income taxes
759

 
471

 
103

 
159

 
(1,444
)
 
48

Net income (loss)
$
1,474


$
320


$
200


$
42


$
(2,802
)

$
(766
)


For the nine months ended September 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
15,665

 
$
35,444

 
$
42,967

 
$
—

 
$
—

 
$
94,076

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
3,269

 
$
3,251

 
$
7,774

 
$
—

 
$
—

 
$
14,294

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
593

 
2,039

 
3,582

 
—

 
11

 
6,225

Write-offs, recoveries and asset disposals
80

 
—

 
—

 
—

 
(446
)
 
(366
)
Preopening costs
—

 
—

 
134

 
—

 
—

 
134

Corporate expenses
—

 
—

 
—

 
—

 
2,964

 
2,964

Project development and acquisition costs
—

 
—

 
—

 
760

 
—

 
760

Stock compensation
—

 
—

 
—

 
—

 
285

 
285

Operating income (loss)
2,596

 
1,212

 
4,058

 
(760
)
 
(2,814
)
 
4,292

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
—

 
124

 
13

 
—

 
4,739

 
4,876

Other
—

 
(11
)
 
—

 
—

 
(1
)
 
(12
)
Non-operating expense
—

 
113

 
13

 
—

 
4,738

 
4,864

Income (loss) before income taxes
2,596

 
1,099

 
4,045

 
(760
)
 
(7,552
)
 
(572
)
Provision (benefit) for income taxes
—

 
(61
)
 
8

 
—

 
(372
)
 
(425
)
Net income (loss)
$
2,596


$
1,160


$
4,037


$
(760
)

$
(7,180
)

$
(147
)




For the nine months ended September 30, 2014
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
16,543

 
$
40,188

 
$
36,879

 
$
1,066

 
$
—

 
$
94,676

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
3,847

 
$
2,503

 
$
6,009

 
$
1,066

 
$
—

 
$
13,425

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
640

 
2,305

 
4,207

 
—

 
13

 
7,165

Impairment
—

 
11,547

 
—

 
—

 
—

 
11,547

Write-offs, recoveries and asset disposals
—

 
8

 
13

 
—

 
30

 
51

Corporate expenses
—

 
—

 
—

 
—

 
3,091

 
3,091

Project development and acquisition costs
—

 
—

 
—

 
407

 
—

 
407

Stock compensation
—

 
—

 
—

 
—

 
219

 
219

Operating income (loss)
3,207

 
(11,357
)
 
1,789

 
659

 
(3,353
)
 
(9,055
)
Non-operating expense:
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
—

 
157

 
7

 
—

 
4,538

 
4,702

Settlement loss
—

 
—

 
—

 
—

 
1,700

 
1,700

Other
20

 
31

 
17

 
—

 
—

 
68

Non-operating expense
20

 
188

 
24

 
—

 
6,238

 
6,470

Income (loss) before income taxes
3,187

 
(11,545
)
 
1,765

 
659

 
(9,591
)
 
(15,525
)
Provision (benefit) for income taxes
1,084

 
(3,821
)
 
600

 
212

 
(3,261
)
 
(5,186
)
Net income (loss)
$
2,103


$
(7,724
)

$
1,165


$
447


$
(6,330
)

$
(10,339
)
Selected balance sheet data as of September 30, 2015 and December 31, 2014 follows:

As of September 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
Northern
Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Total assets
$
12,110

 
$
37,231

 
$
83,035

 
$
2,742

 
$
11,168

 
$
146,286

Property, equipment and capital lease, net
6,220

 
31,792

 
61,856

 
242

 
24

 
100,134

Goodwill
1,809

 
—

 
14,671

 
—

 
—

 
16,480

Liabilities
1,649

 
10,856

 
4,048

 
—

 
72,098

 
88,651


As of December 31, 2014
(In thousands)
 
Casino/Resort Operations
 
 
 
Northern
Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Total assets
$
12,471

 
$
39,101

 
$
76,898

 
$
—

 
$
12,474

 
$
140,944

Property, equipment and capital lease, net
6,656

 
33,801

 
54,548

 
—

 
35

 
95,040

Goodwill
1,809

 
—

 
14,671

 
—

 
—

 
16,480

Liabilities
1,970

 
11,543

 
4,182

 
—

 
65,752

 
83,447