| SEGMENT REPORTING |
SEGMENT REPORTING
We manage our casinos based on geographic regions within the United States. The casino/resort operations include four segments: Silver Slipper Casino and Hotel (Hancock County, Mississippi); Rising Star Casino Resort, consisting of Rising Star Casino Resort (Rising Sun, Indiana) and our ferry boat operations (connecting Rising Sun, Indiana with Boone County, Kentucky); Bronco Billy’s Casino and Hotel (including the Christmas Casino & Inn, in Cripple Creek, Colorado); and the Northern Nevada segment, consisting of Grand Lodge Casino (Incline Village, Nevada) and Stockman’s Casino (Fallon, Nevada).
The Company utilizes Adjusted Property EBITDA as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Property EBITDA is 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, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
The following tables present the Company’s segment information:
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(In thousands, unaudited) |
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net Revenues |
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
$ |
17,887 |
|
|
$ |
16,425 |
|
|
$ |
51,888 |
|
|
$ |
49,520 |
|
Rising Star Casino Resort |
12,228 |
|
|
12,698 |
|
|
35,983 |
|
|
37,498 |
|
Bronco Billy’s Casino and Hotel |
7,520 |
|
|
7,505 |
|
|
20,557 |
|
|
20,140 |
|
Northern Nevada Casinos |
6,393 |
|
|
7,098 |
|
|
14,758 |
|
|
16,309 |
|
|
$ |
44,028 |
|
|
$ |
43,726 |
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|
$ |
123,186 |
|
|
$ |
123,467 |
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Adjusted Property EBITDA |
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Silver Slipper Casino and Hotel |
$ |
3,072 |
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|
$ |
3,054 |
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|
$ |
9,138 |
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|
$ |
9,013 |
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Rising Star Casino Resort |
831 |
|
|
728 |
|
|
2,100 |
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|
2,671 |
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Bronco Billy’s Casino and Hotel |
1,463 |
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|
1,769 |
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|
3,424 |
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|
4,092 |
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Northern Nevada Casinos |
2,066 |
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|
1,892 |
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|
2,526 |
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|
2,391 |
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|
7,432 |
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|
7,443 |
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|
17,188 |
|
|
18,167 |
|
Other operating costs and expenses: |
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Depreciation and amortization |
(2,094 |
) |
|
(2,193 |
) |
|
(6,300 |
) |
|
(6,428 |
) |
Corporate expenses |
(960 |
) |
|
(1,064 |
) |
|
(3,311 |
) |
|
(3,518 |
) |
Preopening costs |
(140 |
) |
|
— |
|
|
(140 |
) |
|
— |
|
Project development and acquisition costs |
(390 |
) |
|
(53 |
) |
|
(557 |
) |
|
(238 |
) |
Gain (loss) on disposals |
— |
|
|
(12 |
) |
|
(79 |
) |
|
2 |
|
Share-based compensation |
(114 |
) |
|
(128 |
) |
|
(521 |
) |
|
(397 |
) |
Operating income |
3,734 |
|
|
3,993 |
|
|
6,280 |
|
|
7,588 |
|
Other (expense) income: |
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Interest expense |
(2,513 |
) |
|
(2,718 |
) |
|
(7,519 |
) |
|
(8,102 |
) |
Loss on extinguishment of debt |
— |
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|
— |
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|
(2,673 |
) |
|
— |
|
Adjustment to fair value of warrants |
463 |
|
|
(302 |
) |
|
886 |
|
|
(272 |
) |
|
(2,050 |
) |
|
(3,020 |
) |
|
(9,306 |
) |
|
(8,374 |
) |
Income (loss) before income taxes |
1,684 |
|
|
973 |
|
|
(3,026 |
) |
|
(786 |
) |
Provision for income taxes |
119 |
|
|
184 |
|
|
356 |
|
|
552 |
|
Net income (loss) |
$ |
1,565 |
|
|
$ |
789 |
|
|
$ |
(3,382 |
) |
|
$ |
(1,338 |
) |
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(In thousands) |
September 30,
2018 |
|
December 31,
2017 |
|
(Unaudited) |
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Total Assets |
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Silver Slipper Casino and Hotel |
$ |
79,358 |
|
|
$ |
80,780 |
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Rising Star Casino Resort |
40,302 |
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|
36,327 |
|
Bronco Billy’s Casino and Hotel |
40,893 |
|
|
35,567 |
|
Northern Nevada Casinos |
11,998 |
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|
12,235 |
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Corporate and Other |
9,839 |
|
|
8,576 |
|
|
$ |
182,390 |
|
|
$ |
173,485 |
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