Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.5.0.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2016
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 and Hotel in Hancock County, Mississippi; Bronco Billy's Casino and Hotel in Cripple Creek, Colorado; 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. Bronco Billy's Casino and Hotel was purchased on May 13, 2016 and reflects information from May 13, 2016 through June 30, 2016 in the tables below. We no longer have a Development/Management segment as we did not manage any properties for others during the reporting periods.

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, 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 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 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, 2016 and 2015 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):
For the three months ended June 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Casino & Hotel
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
14,494

 
$
12,053

 
$
3,584

 
$
4,716

 
$
—

 
$
34,847

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,369

 
$
432

 
$
1,088

 
$
624

 
$
—

 
$
4,513

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
835

 
664

 
219

 
178

 
3

 
1,899

Corporate expenses
—

 
—

 
—

 
—

 
1,113

 
1,113

Project development and acquisition costs
—

 
—

 
—

 
—

 
485

 
485

Stock compensation
—

 
—

 
—

 
—

 
164

 
164

Operating income (loss)
1,534


(232
)

869


446

 
(1,765
)
 
852

Non-operating expense:
 
 
 
 
 
 
 
 
 
 


Interest expense
4

 
52

 
—

 
—

 
2,174

 
2,230

Debt modification costs
—

 
—

 
—

 
—

 
601

 
601

Adjustment to fair value of warrants
—

 
—

 
—

 
—

 
241

 
241

Non-operating expense
4


52


—


—

 
3,016


3,072

Income (loss) before income taxes
1,530


(284
)

869


446

 
(4,781
)

(2,220
)
Provision for income taxes
143

 
—

 
31

 
—

 
6

 
180

Net income (loss)
$
1,387


$
(284
)

$
838


$
446

 
$
(4,787
)
 
$
(2,400
)
For the three months ended June 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
14,350

 
$
11,766

 
$
—

 
$
4,610

 
$
—

 
$
30,726

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
2,665

 
$
592

 
$
—

 
$
679

 
$
—

 
$
3,936

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
1,159

 
673

 
—

 
194

 
4

 
2,030

Other losses (recoveries)
—

 
—

 
—

 
—

 
(450
)
 
(450
)
Corporate expenses
—

 
—

 
—

 
—

 
995

 
995

Project development and acquisition costs
—

 
—

 
—

 
—

 
48

 
48

Pre-opening
75

 
—

 
—

 
—

 
—

 
75

Stock compensation
—

 
—

 
—

 
—

 
191

 
191

Operating income (loss)
1,431

 
(81
)
 
—

 
485

 
(788
)
 
1,047

Non-operating expense:
 
 
 
 
 
 
 
 
 
 


Interest expense, net of amounts capitalized
4

 
42

 
—

 
—

 
1,477

 
1,523

Non-operating expense
4

 
42

 
—

 
—

 
1,477

 
1,523

Income (loss) before income taxes
1,427


(123
)

—

 
485

 
(2,265
)

(476
)
Provision (benefit) for income taxes
(49
)
 
—

 
—

 
—

 
—

 
(49
)
Net income (loss)
$
1,476


$
(123
)

$
—

 
$
485

 
$
(2,265
)

$
(427
)





For the six months ended June 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
29,339

 
$
24,299

 
$
3,584

 
$
9,632

 
$
—

 
$
66,854

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
5,030

 
$
1,733

 
$
1,088

 
$
1,390

 
$
—

 
$
9,241

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
1,664

 
1,333

 
219

 
368

 
7

 
3,591

Corporate expenses
—

 
—

 
—

 
—

 
2,275

 
2,275

Project development and acquisition costs
—

 
—

 
—

 
—

 
772

 
772

Stock compensation
—

 
—

 
—

 
—

 
220

 
220

Operating income (loss)
3,366

 
400

 
869

 
1,022

 
(3,274
)
 
2,383

Non-operating expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
9

 
106

 
—

 
—

 
3,877

 
3,992

Debt modification costs
—

 
—

 
—

 
—

 
601

 
601

Adjustment to fair value of warrants
—

 
—

 
—

 
—

 
241

 
241

Non-operating expense
9

 
106

 
—

 
—

 
4,719

 
4,834

Income (loss) before income taxes
3,357

 
294

 
869

 
1,022

 
(7,993
)
 
(2,451
)
Provision for income taxes
241

 
1

 
31

 
1

 
6

 
280

Net income (loss)
$
3,116

 
$
293

 
$
838

 
$
1,021

 
$
(7,999
)
 
$
(2,731
)
For the six months ended June 30, 2015
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Revenues, net
$
28,074

 
$
22,881

 
$
—

 
$
8,855

 
$
—

 
$
59,810

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
5,362

 
$
797

 
$
—

 
$
1,042

 
$
—

 
$
7,201

 
 
 
 
 
 
 
 
 
 
 
 
Other operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
2,260

 
1,361

 
—

 
394

 
7

 
4,022

Impairments
—

 
—

 
—

 
80

 
4

 
84

Other losses (recoveries)
—

 
—

 
—

 
—

 
(450
)
 
(450
)
Corporate expenses
—

 
—

 
—

 
—

 
2,121

 
2,121

Project development and acquisition costs
—

 
—

 
—

 
—

 
51

 
51

Pre-opening
113

 
—

 
—

 
—

 
—

 
113

Stock compensation
—

 
—

 
—

 
—

 
228

 
228

Operating income (loss)
2,989

 
(564
)
 
—

 
568

 
(1,961
)
 
1,032

Non-operating expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amounts capitalized
9

 
84

 
—

 
 
 
2,954

 
3,047

Other
—

 
(11
)
 
—

 
—

 
(1
)
 
(12
)
Non-operating expense
9

 
73

 
—

 
—

 
2,953

 
3,035

Income (loss) before income taxes
2,980

 
(637
)
 
—

 
568

 
(4,914
)
 
(2,003
)
Provision for income taxes
178

 
1

 
—

 
—

 
—

 
179

Net income (loss)
$
2,802

 
$
(638
)
 
$
—

 
$
568

 
$
(4,914
)
 
$
(2,182
)

Selected balance sheet data is as follows:
As of June 30, 2016
(In thousands, unaudited)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
Northern Nevada
 
Corporate
 
Consolidated
Total assets
$
80,494

 
$
36,301

 
$
35,868

 
$
12,437

 
$
8,311

 
$
173,411

Property and equipment, net
59,727

 
30,119

 
16,128

 
5,799

 
116

 
111,889

Goodwill
14,671

 
—

 
4,649

 
1,809

 
—

 
21,129

Liabilities
3,382

 
9,962

 
3,155

 
2,218

 
100,682

 
119,399


As of December 31, 2015
(In thousands)
 
Casino/Resort Operations
 
 
 
 
 
Silver Slipper
Casino & Hotel
 
Rising Star
Casino Resort
 
Bronco Billy's Hotel & Casino
 
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

Liabilities
3,389

 
10,034

 
—

 
1,834

 
69,687

 
84,944