| SEGMENT REPORTING AND DISAGGREGATED REVENUE |
SEGMENT REPORTING AND DISAGGREGATED REVENUE
The Company manages its 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 its ferry boat operations (connecting Rising Sun, Indiana with Boone County, Kentucky); Bronco Billy’s Casino and Hotel (including the Christmas Casino & Inn, both 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, pre-opening 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 June 30, 2019 |
|
Silver Slipper Casino and Hotel |
|
Rising Star Casino Resort |
|
Bronco Billy’s Casino and Hotel |
|
Northern Nevada Casinos |
|
Corporate |
|
Total |
Revenues |
|
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|
|
|
|
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|
|
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Casino |
$ |
11,636 |
|
|
$ |
7,526 |
|
|
$ |
5,563 |
|
|
$ |
3,725 |
|
|
$ |
— |
|
|
$ |
28,450 |
|
Food and beverage |
5,515 |
|
|
1,800 |
|
|
1,051 |
|
|
497 |
|
|
— |
|
|
8,863 |
|
Hotel |
1,305 |
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|
1,560 |
|
|
186 |
|
|
— |
|
|
— |
|
|
3,051 |
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Other operations |
436 |
|
|
712 |
|
|
77 |
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|
74 |
|
|
— |
|
|
1,299 |
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|
$ |
18,892 |
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|
$ |
11,598 |
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|
$ |
6,877 |
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|
$ |
4,296 |
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|
$ |
— |
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$ |
41,663 |
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|
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|
|
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Net income (loss) |
$ |
2,655 |
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|
$ |
(41 |
) |
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$ |
397 |
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|
$ |
245 |
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|
$ |
(4,266 |
) |
|
$ |
(1,010 |
) |
Interest expense, net |
5 |
|
|
52 |
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|
— |
|
|
— |
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|
2,874 |
|
|
2,931 |
|
Adjustment to fair value of warrants |
— |
|
|
— |
|
|
— |
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|
— |
|
|
(141 |
) |
|
(141 |
) |
Income tax provision |
65 |
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— |
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|
49 |
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|
23 |
|
|
6 |
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|
143 |
|
Operating income (loss) |
2,725 |
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|
11 |
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|
446 |
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|
268 |
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(1,527 |
) |
|
1,923 |
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Depreciation and amortization |
869 |
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|
593 |
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|
434 |
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|
149 |
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|
38 |
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|
2,083 |
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Gain on sale or disposal of asset, net |
— |
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— |
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(4 |
) |
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— |
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|
— |
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(4 |
) |
Project development and acquisition costs |
— |
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|
— |
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|
— |
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|
— |
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|
142 |
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|
142 |
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Share-based compensation |
— |
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|
— |
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|
— |
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|
— |
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|
107 |
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|
107 |
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Corporate |
— |
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— |
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— |
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|
— |
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|
1,240 |
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|
1,240 |
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Adjusted Property EBITDA |
$ |
3,594 |
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$ |
604 |
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$ |
876 |
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$ |
417 |
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$ |
— |
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$ |
5,491 |
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(In thousands, unaudited) |
Three Months Ended June 30, 2018 |
|
Silver Slipper Casino and Hotel |
|
Rising Star Casino Resort |
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Bronco Billy’s Casino and Hotel |
|
Northern Nevada Casinos |
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Corporate |
|
Total |
Revenues |
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Casino |
$ |
11,438 |
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|
$ |
7,974 |
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|
$ |
5,373 |
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|
$ |
3,847 |
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|
$ |
— |
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|
$ |
28,632 |
|
Food and beverage |
4,824 |
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|
2,291 |
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|
1,182 |
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|
486 |
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|
— |
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|
8,783 |
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Hotel |
835 |
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|
1,586 |
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|
161 |
|
|
— |
|
|
— |
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|
2,582 |
|
Other operations |
395 |
|
|
677 |
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|
79 |
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|
79 |
|
|
— |
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|
1,230 |
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|
$ |
17,492 |
|
|
$ |
12,528 |
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|
$ |
6,795 |
|
|
$ |
4,412 |
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|
$ |
— |
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|
$ |
41,227 |
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|
|
|
|
|
|
|
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Net income (loss) |
$ |
2,302 |
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|
$ |
114 |
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|
$ |
762 |
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$ |
265 |
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|
$ |
(4,104 |
) |
|
$ |
(661 |
) |
Interest expense, net |
5 |
|
|
58 |
|
|
— |
|
|
— |
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|
2,403 |
|
|
2,466 |
|
Adjustment to fair value of warrants |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
80 |
|
|
80 |
|
Income tax provision |
65 |
|
|
— |
|
|
49 |
|
|
— |
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|
4 |
|
|
118 |
|
Operating income (loss) |
2,372 |
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|
172 |
|
|
811 |
|
|
265 |
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(1,617 |
) |
|
2,003 |
|
Depreciation and amortization |
811 |
|
|
603 |
|
|
377 |
|
|
208 |
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|
39 |
|
|
2,038 |
|
Loss on sale or disposal of asset, net |
— |
|
|
1 |
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|
68 |
|
|
— |
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|
— |
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|
69 |
|
Project development and acquisition costs |
— |
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|
— |
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|
— |
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|
— |
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|
130 |
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|
130 |
|
Share-based compensation |
— |
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|
— |
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|
— |
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|
— |
|
|
175 |
|
|
175 |
|
Corporate |
— |
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|
— |
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|
— |
|
|
— |
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|
1,273 |
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|
1,273 |
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Adjusted Property EBITDA |
$ |
3,183 |
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|
$ |
776 |
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|
$ |
1,256 |
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|
$ |
473 |
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|
$ |
— |
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|
$ |
5,688 |
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(In thousands, unaudited) |
Six Months Ended June 30, 2019 |
|
Silver Slipper Casino and Hotel |
|
Rising Star Casino Resort |
|
Bronco Billy’s Casino and Hotel |
|
Northern Nevada Casinos |
|
Corporate |
|
Total |
Revenues |
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Casino |
$ |
24,015 |
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|
$ |
14,869 |
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|
$ |
10,806 |
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|
$ |
7,058 |
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|
$ |
— |
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|
$ |
56,748 |
|
Food and beverage |
10,886 |
|
|
3,613 |
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|
2,025 |
|
|
997 |
|
|
— |
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|
17,521 |
|
Hotel |
2,449 |
|
|
2,983 |
|
|
334 |
|
|
— |
|
|
— |
|
|
5,766 |
|
Other operations |
824 |
|
|
1,000 |
|
|
152 |
|
|
146 |
|
|
— |
|
|
2,122 |
|
|
$ |
38,174 |
|
|
$ |
22,465 |
|
|
$ |
13,317 |
|
|
$ |
8,201 |
|
|
$ |
— |
|
|
$ |
82,157 |
|
|
|
|
|
|
|
|
|
|
|
|
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Net income (loss) |
$ |
5,582 |
|
|
$ |
(298 |
) |
|
$ |
515 |
|
|
$ |
60 |
|
|
$ |
(8,486 |
) |
|
$ |
(2,627 |
) |
Interest expense, net |
12 |
|
|
106 |
|
|
— |
|
|
(1 |
) |
|
5,517 |
|
|
5,634 |
|
Adjustment to fair value of warrants |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(101 |
) |
|
(101 |
) |
Income tax provision |
131 |
|
|
— |
|
|
99 |
|
|
47 |
|
|
8 |
|
|
285 |
|
Operating income (loss) |
5,725 |
|
|
(192 |
) |
|
614 |
|
|
106 |
|
|
(3,062 |
) |
|
3,191 |
|
Depreciation and amortization |
1,716 |
|
|
1,199 |
|
|
881 |
|
|
302 |
|
|
76 |
|
|
4,174 |
|
Gain on sale or disposal of asset, net |
(1 |
) |
|
— |
|
|
(4 |
) |
|
— |
|
|
— |
|
|
(5 |
) |
Project development and acquisition costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
275 |
|
|
275 |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
193 |
|
|
193 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,518 |
|
|
2,518 |
|
Adjusted Property EBITDA |
$ |
7,440 |
|
|
$ |
1,007 |
|
|
$ |
1,491 |
|
|
$ |
408 |
|
|
$ |
— |
|
|
$ |
10,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
(In thousands, unaudited) |
Six Months Ended June 30, 2018 |
|
Silver Slipper Casino and Hotel |
|
Rising Star Casino Resort |
|
Bronco Billy’s Casino and Hotel |
|
Northern Nevada Casinos |
|
Corporate |
|
Total |
Revenues |
|
|
|
|
|
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|
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|
Casino |
$ |
22,488 |
|
|
$ |
15,499 |
|
|
$ |
10,347 |
|
|
$ |
7,268 |
|
|
$ |
— |
|
|
$ |
55,602 |
|
Food and beverage |
9,169 |
|
|
4,348 |
|
|
2,258 |
|
|
947 |
|
|
— |
|
|
16,722 |
|
Hotel |
1,612 |
|
|
2,974 |
|
|
279 |
|
|
— |
|
|
— |
|
|
4,865 |
|
Other operations |
732 |
|
|
934 |
|
|
153 |
|
|
150 |
|
|
— |
|
|
1,969 |
|
|
$ |
34,001 |
|
|
$ |
23,755 |
|
|
$ |
13,037 |
|
|
$ |
8,365 |
|
|
$ |
— |
|
|
$ |
79,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
4,294 |
|
|
$ |
(88 |
) |
|
$ |
944 |
|
|
$ |
44 |
|
|
$ |
(10,141 |
) |
|
$ |
(4,947 |
) |
Interest expense, net |
9 |
|
|
116 |
|
|
— |
|
|
— |
|
|
4,881 |
|
|
5,006 |
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,673 |
|
|
2,673 |
|
Adjustment to fair value of warrants |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(423 |
) |
|
(423 |
) |
Income tax provision |
131 |
|
|
— |
|
|
99 |
|
|
— |
|
|
7 |
|
|
237 |
|
Operating income (loss) |
4,434 |
|
|
28 |
|
|
1,043 |
|
|
44 |
|
|
(3,003 |
) |
|
2,546 |
|
Depreciation and amortization |
1,631 |
|
|
1,232 |
|
|
849 |
|
|
416 |
|
|
78 |
|
|
4,206 |
|
Loss on sale or disposal of asset, net |
1 |
|
|
9 |
|
|
69 |
|
|
— |
|
|
— |
|
|
79 |
|
Project development and acquisition costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
167 |
|
|
167 |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
407 |
|
|
407 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,351 |
|
|
2,351 |
|
Adjusted Property EBITDA |
$ |
6,066 |
|
|
$ |
1,269 |
|
|
$ |
1,961 |
|
|
$ |
460 |
|
|
$ |
— |
|
|
$ |
9,756 |
|
|
|
|
|
|
|
|
|
|
(In thousands) |
June 30,
2019 |
|
December 31,
2018 |
|
(Unaudited) |
|
|
Total Assets |
|
|
|
Silver Slipper Casino and Hotel |
$ |
87,526 |
|
|
$ |
79,094 |
|
Rising Star Casino Resort |
40,110 |
|
|
39,722 |
|
Bronco Billy’s Casino and Hotel |
43,327 |
|
|
42,780 |
|
Northern Nevada Casinos |
18,739 |
|
|
12,395 |
|
Corporate and Other |
15,397 |
|
|
8,281 |
|
|
$ |
205,099 |
|
|
$ |
182,272 |
|
|