Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.3.1.900
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING

We manage our casinos based on geographic regions within the United States. The casino/resort segments include the Silver Slipper Casino & Hotel in Hancock County, 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 year ended December 31, 2015 and 2014 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):

Year Ended December 31, 2015 (In thousands)
 
 
 
 
 
 
 
 
 
  Casino Operations
 
 
 
 
 
 
 
Northern Nevada
 
Rising Star Casino Resort
 
Silver Slipper Casino & Hotel
 
Development/ Management
 
Corporate
 
Consolidated
Revenues, net
$
20,194

 
$
47,557

 
$
56,837

 
$
—

 
$
—

 
$
124,588

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
3,877

 
$
4,005

 
$
9,925

 
$
—

 
$
—

 
$
17,807

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
781

 
2,714

 
4,383

 
—

 
15

 
7,893

Write-offs, recoveries and asset disposals
80

 
—

 
3

 
—

 
(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)
3,016

 
1,291

 
5,383

 
—

 
(4,646
)
 
5,044

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

 
(179
)
 
(18
)
 
—

 
(6,518
)
 
(6,715
)
Other
 
 
11

 
—

 
 
 
1

 
12

Non-operating expense
—

 
(168
)
 
(18
)
 
—

 
(6,517
)
 
(6,703
)
Income (loss) before income taxes
3,016

 
1,123

 
5,365

 
—

 
(11,163
)
 
(1,659
)
Provision (benefit) for income taxes
(168
)
 
(343
)
 
307

 
—

 
(138
)
 
(342
)
Net income (loss)
$
3,184

 
$
1,466

 
$
5,058

 
$
—

 
$
(11,025
)
 
$
(1,317
)
 
 
 
 
 
 
 
 
 
 
 
 

Year Ended December 31, 2014 (In thousands)
 
 
 
 
 
 
 
 
 
  Casino Operations
 
 
 
 
 
 
 
Northern Nevada
 
Rising Star Casino Resort
 
Silver Slipper Casino & Hotel
 
Development/ Management
 
Corporate
 
Consolidated
Revenues, net
$
21,222

 
$
51,110

 
$
48,023

 
$
1,066

 
$
—

 
$
121,421

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
4,466

 
$
2,174

 
$
7,501

 
$
1,066

 
$
—

 
$
15,207

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
857

 
2,997

 
5,312

 
—

 
17

 
9,183

Impairment
—

 
11,547

 
—

 
—

 
—

 
11,547

Write-offs, recoveries and asset disposals
—

 
372

 
—

 
—

 
152

 
524

Board and executive transition costs
—

 
—

 
—

 
—

 
2,741

 
2,741

Corporate expenses
—

 
—

 
—

 
—

 
4,506

 
4,506

Project development and acquisition costs
—

 
—

 
—

 
—

 
296

 
296

Stock compensation
—

 
—

 
—

 
—

 
248

 
248

Operating income (loss)
3,609

 
(12,742
)
 
2,189

 
1,066

 
(7,960
)
 
(13,838
)
Non-operating expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
—

 
(203
)
 
(12
)
 
—

 
(6,057
)
 
(6,272
)
Settlement loss
—

 
 
 
 
 
 
 
(1,700
)
 
(1,700
)
Other
(21
)
 
(25
)
 
(16
)
 
—

 
39

 
(23
)
Non-operating expense
(21
)
 
(228
)
 
(28
)
 
—

 
(7,718
)
 
(7,995
)
Income (loss) before income taxes
3,588

 
(12,970
)
 
2,161

 
1,066

 
(15,678
)
 
(21,833
)
Provision (benefit) for income taxes
224

 
(522
)
 
222

 
(23
)
 
(889
)
 
(988
)
Net income (loss)
$
3,364

 
$
(12,448
)
 
$
1,939

 
$
1,089

 
$
(14,789
)
 
$
(20,845
)
 
 
 
 
 
 
 
 
 
 
 
 
 

Selected balance sheet data as of December 31, 2015 and 2014 is as follows:
At December 31, 2015 (In thousands)
 
 
 
 
 
 
 
 
Casino Operations
 
 
 
 
 
 
 
Northern
Nevada
 
Rising Star
Casino
Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
 
Consolidated
Total assets
$
12,105

 
$
37,086

 
$
82,621

 
$
—

 
$
10,958

 
$
142,770

Property and equipment, net
6,098

 
31,391

 
61,150

 
—

 
343

 
98,982

Goodwill
1,809

 
—

 
14,671

 
—

 
—

 
16,480

Liabilities
1,834

 
9,979

 
3,389

 
—

 
71,045

 
86,247

 
At December 31, 2014 (In thousands)
 
 
 
 
 
 
 
 
Casino 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 and equipment, 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