Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.5.0.2
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
We manage our casinos based on geographic regions within the United States. The casino/resort operations includes four segments; the Silver Slipper Casino and Hotel (Hancock County, Mississippi); Bronco Billy's Casino and Hotel (Cripple Creek, Colorado); the Rising Star Casino Resort (Rising Sun, Indiana); and the Northern Nevada segment, consisting of the Grand Lodge Casino (Incline Village, Nevada) and Stockman’s Casino (Fallon, Nevada). Bronco Billy's Casino and Hotel was included beginning May 13, 2016.

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, project development and acquisition costs, and non-cash share-based compensation expense. Adjusted EBITDA and Adjusted Property EBITDA should not be construed as an alternative to operating income and net income for use as indicators 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 and/or Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA and/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, 2016 and 2015 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):
For the three months ended September 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Casino & Hotel
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
14,987

 
$
12,553

 
$
7,565

 
$
6,651

 
$
—

 
$
41,756

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,304

 
$
751

 
$
1,610

 
$
1,864

 
$
—

 
$
6,529

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
818

 
660

 
504

 
219

 
2

 
2,203

Loss on asset disposals, net
6

 
8

 
—

 
295

 
—

 
309

Corporate expenses
—

 
—

 
—

 
—

 
889

 
889

Project development and acquisition costs
—

 
—

 
—

 
—

 
130

 
130

Stock compensation
—

 
—

 
—

 
—

 
95

 
95

Operating income (loss)
1,480


83


1,106


1,350

 
(1,116
)
 
2,903

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 


Interest expense
5

 
51

 
—

 
—

 
2,692

 
2,748

Debt modification costs
—

 
—

 
—

 
—

 
24

 
24

Adjustment to fair value of warrants
—

 
—

 
—

 
—

 
(181
)
 
(181
)
Non-operating expense
5


51


—


—

 
2,535


2,591

Income (loss) before income taxes
1,475


32


1,106


1,350

 
(3,651
)

312

Provision (benefit) for income taxes
85

 
(1
)
 
88

 
—

 
5

 
177

Net income (loss)
$
1,390


$
33


$
1,018


$
1,350

 
$
(3,656
)
 
$
135

For the three months ended September 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
14,894

 
$
12,563

 
$
—

 
$
6,809

 
$
—

 
$
34,266

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,413

 
$
2,455

 
$
—

 
$
2,227

 
$
—

 
$
7,095

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
1,322

 
678

 
—

 
199

 
4

 
2,203

Corporate expenses
—

 
—

 
—

 
—

 
844

 
844

Project development and acquisition costs
—

 
—

 
—

 
—

 
709

 
709

Pre-opening
21

 
—

 
—

 
—

 
—

 
21

Stock compensation
—

 
—

 
—

 
—

 
57

 
57

Operating income (loss)
1,070

 
1,777

 
—

 
2,028

 
(1,614
)
 
3,261

Non-operating expense:
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
4

 
40

 
—

 
—

 
1,785

 
1,829

Non-operating expense
4

 
40

 
—

 
—

 
1,785

 
1,829

Income (loss) before income taxes
1,066


1,737


—

 
2,028

 
(3,399
)

1,432

Provision (benefit) for income taxes
3

 
(61
)
 
—

 
—

 
(545
)
 
(603
)
Net income (loss)
$
1,063


$
1,798


$
—

 
$
2,028

 
$
(2,854
)

$
2,035






For the nine months ended September 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
44,326

 
$
36,851

 
$
11,149

 
$
16,284

 
$
—

 
$
108,610

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
7,335

 
$
2,483

 
$
2,698

 
$
3,256

 
$
—

 
$
15,772

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
2,482

 
1,993

 
723

 
589

 
8

 
5,795

Loss on asset disposals, net
6

 
8

 
—

 
295

 
—

 
309

Corporate expenses
—

 
—

 
—

 
—

 
3,165

 
3,165

Project development and acquisition costs
—

 
—

 
—

 
—

 
902

 
902

Stock compensation
—

 
—

 
—

 
—

 
315

 
315

Operating income (loss)
4,847

 
482

 
1,975

 
2,372

 
(4,390
)
 
5,286

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
13

 
157

 
—

 
—

 
6,570

 
6,740

Debt modification costs
—

 
—

 
—

 
—

 
624

 
624

Adjustment to fair value of warrants
—

 
—

 
—

 
—

 
60

 
60

Non-operating expense
13

 
157

 
—

 
—

 
7,254

 
7,424

Income (loss) before income taxes
4,834

 
325

 
1,975

 
2,372

 
(11,644
)
 
(2,138
)
Provision for income taxes
326

 
1

 
119

 
1

 
11

 
458

Net income (loss)
$
4,508

 
$
324

 
$
1,856

 
$
2,371

 
$
(11,655
)
 
$
(2,596
)
For the nine months ended September 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
42,967

 
$
35,444

 
$
—

 
$
15,665

 
$
—

 
$
94,076

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
7,774

 
$
3,251

 
$
—

 
$
3,269

 
$
—

 
$
14,294

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
3,582

 
2,039

 
—

 
593

 
11

 
6,225

Other losses (recoveries)
—

 
—

 
—

 
80

 
(446
)
 
(366
)
Corporate expenses
—

 
—

 
—

 
—

 
2,964

 
2,964

Project development and acquisition costs
—

 
—

 
—

 
—

 
760

 
760

Pre-opening
134

 
—

 
—

 
—

 
—

 
134

Stock compensation
—

 
—

 
—

 
—

 
285

 
285

Operating income (loss)
4,058

 
1,212

 
—

 
2,596

 
(3,574
)
 
4,292

Non-operating expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
13

 
124

 
—

 
 
 
4,739

 
4,876

Other
—

 
(11
)
 
—

 
—

 
(1
)
 
(12
)
Non-operating expense
13

 
113

 
—

 
—

 
4,738

 
4,864

Income (loss) before income taxes
4,045

 
1,099

 
—

 
2,596

 
(8,312
)
 
(572
)
Provision (benefit) for income taxes
8

 
(61
)
 
—

 
—

 
(372
)
 
(425
)
Net income (loss)
$
4,037

 
$
1,160

 
$
—

 
$
2,596

 
$
(7,940
)
 
$
(147
)

Selected balance sheet data is as follows:
As of September 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Total assets
$
80,603

 
$
36,099

 
$
37,589

 
$
11,500

 
$
8,502

 
$
174,293

Property and equipment, net
59,452

 
29,583

 
16,280

 
5,782

 
132

 
111,229

Goodwill
14,671

 
—

 
4,799

 
1,809

 
—

 
21,279

Liabilities
4,157

 
10,363

 
3,459

 
2,480

 
99,592

 
120,051


As of December 31, 2015
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Total assets
$
82,621

 
$
37,141

 
$
—

 
$
12,105

 
$
9,600

 
$
141,467

Property and equipment, net
61,150

 
31,391

 
—

 
6,098

 
343

 
98,982

Goodwill
14,671

 
—

 
—

 
1,809

 
—

 
16,480

Liabilities
3,389

 
10,034

 
—

 
1,834

 
69,687

 
84,944