Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.6.0.2
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 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). We began including Bronco Billy's Casino and Hotel on May 13, 2016, its acquisition date.

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 year ended December 31, 2016 and 2015 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):

For the year ended December 31, 2016
(In thousands)
 
 
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Bronco Billy's Casino & Hotel
 
Rising Star
Casino Resort
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
59,093

 
$
16,220

 
$
49,472

 
$
21,207

 
$
—

 
$
145,992

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
9,994

 
$
3,423

 
$
2,931

 
$
3,941

 
$
—

 
$
20,289

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
3,308

 
1,215

 
2,645

 
746

 
14

 
7,928

Loss on asset disposals, net
32

 
8

 
9

 
295

 
—

 
344

Corporate expenses
—

 
—

 
—

 
—

 
4,105

 
4,105

Project development and acquisition costs
—

 
—

 
—

 
—

 
1,314

 
1,314

Stock compensation
—

 
—

 
—

 
—

 
409

 
409

Operating income (loss)
6,654

 
2,200

 
277

 
2,900

 
(5,842
)
 
6,189

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
18

 
—

 
208

 
—

 
9,260

 
9,486

Debt modification costs
—

 
—

 
—

 
—

 
624

 
624

Adjustment to fair value of warrants and other
—

 
—

 
—

 
—

 
543

 
543

Non-operating expense
18

 
—

 
208

 
—

 
10,427

 
10,653

Income (loss) before income taxes
6,636

 
2,200

 
69

 
2,900

 
(16,269
)
 
(4,464
)
Provision for income taxes
402

 
209

 
—

 
—

 
19

 
630

Net income (loss)
$
6,234

 
$
1,991

 
$
69

 
$
2,900

 
$
(16,288
)
 
$
(5,094
)



For the year ended December 31, 2015
(In thousands)
 
 
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Bronco Billy's Casino & Hotel
 
Rising Star
Casino Resort
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
56,836

 
$
—

 
$
47,557

 
$
20,038

 
$
—

 
$
124,431

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
9,925

 
$
—

 
$
4,005

 
$
3,877

 
$
—

 
$
17,807

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4,383

 
—

 
2,714

 
781

 
15

 
7,893

Write-offs, recoveries and asset disposals
3

 
—

 
—

 
80

 
(446
)
 
(363
)
Pre-opening costs
156

 
—

 
—

 
—

 
—

 
156

Corporate expenses
—

 
—

 
—

 
—

 
3,843

 
3,843

Project development and acquisition costs
—

 
—

 
—

 
—

 
891

 
891

Stock compensation
—

 
—

 
—

 
—

 
343

 
343

Operating income (loss)
5,383

 
—

 
1,291

 
3,016

 
(4,646
)
 
5,044

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
18

 
—

 
179

 
—

 
6,518

 
6,715

Other
—

 
—

 
(11
)
 
—

 
(1
)
 
(12
)
Non-operating expense
18

 
—

 
168

 
—

 
6,517

 
6,703

Income (loss) before income taxes
5,365

 
—

 
1,123

 
3,016

 
(11,163
)
 
(1,659
)
Provision (benefit) for income taxes
307

 
—

 
(343
)
 
(168
)
 
(138
)
 
(342
)
Net income (loss)
$
5,058

 
$
—

 
$
1,466

 
$
3,184

 
$
(11,025
)
 
$
(1,317
)


Selected balance sheet data as of December 31, 2016 and 2015 is as follows:
At December 31, 2016 (In thousands)
 
 
 
 
 
 
 
 
Silver Slipper Casino and Hotel
 
Bronco Billy's Casino and Hotel
 
Rising Star
Casino
Resort
 
Northern Nevada
 
Corporate
 
 
Consolidated
Total assets
$
79,975

 
$
36,732

 
$
36,444

 
$
12,722

 
$
11,375

 
$
177,248

Property and equipment, net
58,856

 
16,020

 
29,819

 
6,202

 
568

 
111,465

Goodwill
14,671

 
4,806

 
—

 
1,809

 
—

 
21,286

 
At December 31, 2015 (In thousands)
 
 
 
 
 
 
 
 
Silver Slipper Casino and Hotel
 
Bronco Billy's Casino and Hotel
 
Rising Star
Casino
Resort
 
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