Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.2.0.727
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
The casino/resort segments include the Silver Slipper Casino and Hotel in Bay St. Louis, 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, which 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 U.S. generally accepted accounting principles. 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 three and six months ended June 30, 2015 and 2014 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):
For the three months ended June 30, 2015
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
4,610

 
$
11,766

 
$
14,350

 
$
—

 
$
—

 
$
30,726

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
679

 
$
592

 
$
2,665

 
$
—

 
$
—

 
$
3,936

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
194

 
673

 
1,159

 
—

 
4

 
2,030

Impairment
—

 
—

 
—

 
—

 
—

 
—

Write-offs, recoveries and asset disposals
—

 
—

 
—

 
—

 
(450
)
 
(450
)
Preopening
—

 
—

 
75

 
—

 
—

 
75

Corporate expenses
—

 
—

 
—

 
—

 
995

 
995

Project development and acquisition costs
—

 
—

 
—

 
48

 
—

 
48

Stock compensation
—

 
—

 
—

 
—

 
191

 
191

Operating income (loss)
485


(81
)

1,431


(48
)

(740
)
 
1,047

Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
—

 
42

 
4

 
—

 
1,477

 
1,523

Other
—

 
—

 
—

 
—

 
—

 
—

Non-operating expense
—


42


4


—


1,477


1,523

Income (loss) before income taxes
485


(123
)

1,427


(48
)

(2,217
)

(476
)
Provision (benefit) for income taxes
—

 
—

 
(49
)
 
—

 
—

 
(49
)
Net income (loss)
$
485


$
(123
)

$
1,476


$
(48
)

$
(2,217
)
 
$
(427
)
For the three months ended June 30, 2014
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
5,022

 
$
13,541

 
$
12,447

 
$
300

 
$
—

 
$
31,310

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
1,019

 
$
248

 
$
2,130

 
$
300

 
$
—

 
$
3,697

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
214

 
692

 
1,402

 
—

 
4

 
2,312

Impairment
—

 
11,547

 
—

 
—

 
—

 
11,547

Write-offs, recoveries and asset disposals
—

 
—

 
7

 
—

 
30

 
37

Preopening
—

 
—

 
—

 
—

 
—

 
—

Corporate expenses
—

 
—

 
—

 
—

 
1,062

 
1,062

Project development and acquisition costs
—

 
—

 
—

 
280

 
—

 
280

Stock compensation
—

 
—

 
—

 
—

 
81

 
81

Operating income (loss)
805

 
(11,991
)
 
721

 
20

 
(1,177
)
 
(11,622
)
Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
—

 
46

 
3

 
—

 
1,522

 
1,571

Other
—

 
—

 
6

 
—

 
—

 
6

Non-operating expense
—

 
46

 
9

 
—

 
1,522

 
1,577

Income (loss) before income taxes
805


(12,037
)

712


20


(2,699
)

(13,199
)
Provision (benefit) for income taxes
273

 
(4,241
)
 
242

 
(65
)
 
(917
)
 
(4,708
)
Net income (loss)
$
532


$
(7,796
)

$
470


$
85


$
(1,782
)

$
(8,491
)


For the six months ended June 30, 2015
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
8,855

 
$
22,881

 
$
28,074

 
$
—

 
$
—

 
$
59,810

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
1,042

 
$
797

 
$
5,362

 
$
—

 
$
—

 
$
7,201

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
394

 
1,361

 
2,260

 
—

 
7

 
4,022

Impairment
—

 
—

 
—

 
—

 
—

 
—

Write-offs, recoveries and asset disposals
80

 
—

 
—

 
—

 
(446
)
 
(366
)
Preopening
—

 
—

 
113

 
—

 
—

 
113

Corporate expenses
—

 
—

 
—

 
—

 
2,121

 
2,121

Project development and acquisition costs
—

 
—

 
—

 
51

 
—

 
51

Stock compensation
—

 
—

 
—

 
—

 
228

 
228

Operating income (loss)
568

 
(564
)
 
2,989

 
(51
)
 
(1,910
)
 
1,032

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

 
84

 
9

 
—

 
2,954

 
3,047

Other
—

 
(11
)
 
—

 
—

 
(1
)
 
(12
)
Non-operating expense
—

 
73

 
9

 
—

 
2,953

 
3,035

Income (loss) before income taxes
568

 
(637
)
 
2,980

 
(51
)
 
(4,863
)
 
(2,003
)
Provision (benefit) for income taxes
—

 
1

 
178

 
—

 
—

 
179

Net income (loss)
$
568


$
(638
)

$
2,802


$
(51
)

$
(4,863
)

$
(2,182
)




For the six months ended June 30, 2014
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
 
 
Northern
 Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Revenues, net
$
9,409

 
$
26,789

 
$
24,768

 
$
793

 
$
—

 
$
61,759

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
1,383

 
$
852

 
$
4,282

 
$
793

 
$
—

 
$
7,310

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
430

 
1,539

 
2,789

 
—

 
9

 
4,767

Impairment
—

 
11,547

 
—

 
—

 
—

 
11,547

Write-offs, recoveries and asset disposals
—

 
7

 
21

 
—

 
30

 
58

Pre-opening
—

 
—

 
—

 
—

 
—

 
—

Corporate expenses
—

 
—

 
—

 
—

 
2,155

 
2,155

Project development and acquisition costs
—

 
—

 
—

 
335

 
—

 
335

Stock compensation
—

 
—

 
—

 
—

 
160

 
160

Operating income (loss)
953

 
(12,241
)
 
1,472

 
458

 
(2,354
)
 
(11,712
)
Non-operating expense (income):
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
—

 
94

 
3

 
—

 
2,991

 
3,088

Other
—

 
—

 
7

 
—

 
—

 
7

Non-operating expense
—

 
94

 
10

 
—

 
2,991

 
3,095

Income (loss) before income taxes
953

 
(12,335
)
 
1,462

 
458

 
(5,345
)
 
(14,807
)
Provision (benefit) for income taxes
324

 
(4,291
)
 
497

 
53

 
(1,817
)
 
(5,234
)
Net income (loss)
$
629


$
(8,044
)

$
965


$
405


$
(3,528
)

$
(9,573
)
Selected balance sheet data as of June 30, 2015 and December 31, 2014 follows:

As of June 30, 2015
(In thousands)
 
Casino/Resort Operations
 
 
 
Northern
Nevada
 
Rising Star
Casino Resort
 
Silver Slipper
Casino & Hotel
 
Development/
Management
 
Corporate
 
Consolidated
Total assets
$
11,800

 
$
39,362

 
$
82,804

 
$
242

 
$
9,638

 
$
143,846

Property, equipment and capital lease, net
6,339

 
32,462

 
61,406

 
242

 
27

 
100,476

Goodwill
1,809

 
—

 
14,671

 
—

 
—

 
16,480

Liabilities
1,918

 
10,750

 
4,192

 
—

 
71,443

 
88,303


As of December 31, 2014
(In thousands)
 
Casino/Resort 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, equipment and capital lease, 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