| SEGMENT REPORTING |
The Company’s operations are composed of two primary business segments. The following
tables reflect selected segment information for the three and six months ended June 30, 2011
and 2010. The casino operations segment includes the Grand Victoria Hotel and Casino’s
operation in Rising Sun, Indiana and Stockman’s Casino operation in Fallon, Nevada. The
Company reviews operating results, assesses performance and makes decisions related to the
allocation of resources on a property-by-property basis, and therefore management believes
that each property is an operating segment that are appropriately aggregated and presented
as one reportable segment. To enhance disclosure, the Company also chooses to include
regional information on this segment. The development/management segment includes costs
associated with tribal casino development and management projects and the Michigan and
Delaware joint ventures. The Corporate segment includes general and administrative expenses
of the Company.
Selected statement of operations data for the three months ended June 30:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
2,021,239 |
|
|
$ |
23,190,637 |
|
|
$ |
5,912,294 |
|
|
$ |
— |
|
|
$ |
31,124,170 |
|
|
Selling, general and
administrative expense
|
|
|
484,098 |
|
|
|
5,203,444 |
|
|
|
130,958 |
|
|
|
1,170,950 |
|
|
|
6,989,450 |
|
|
Depreciation and amortization
|
|
|
236,135 |
|
|
|
1,220,183 |
|
|
|
593,147 |
|
|
|
2,676 |
|
|
|
2,052,141 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
661,270 |
|
|
|
— |
|
|
|
661,270 |
|
|
Operating income (loss)
|
|
|
255,590 |
|
|
|
1,984,787 |
|
|
|
5,849,459 |
|
|
|
(1,259,685 |
) |
|
|
6,830,151 |
|
|
Net income (loss)
attributable to Company
|
|
|
168,773 |
|
|
|
470,033 |
|
|
|
2,426,110 |
|
|
|
(1,668,396 |
) |
|
|
1,396,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
2,039,869 |
|
|
$ |
— |
|
|
$ |
6,018,598 |
|
|
$ |
— |
|
|
$ |
8,058,467 |
|
|
Selling, general and administrative expense
|
|
|
414,550 |
|
|
|
— |
|
|
|
155,416 |
|
|
|
945,966 |
|
|
|
1,515,932 |
|
|
Depreciation and amortization
|
|
|
240,990 |
|
|
|
— |
|
|
|
593,195 |
|
|
|
25,449 |
|
|
|
859,634 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
629,081 |
|
|
|
— |
|
|
|
629,081 |
|
|
Operating income (loss)
|
|
|
340,977 |
|
|
|
— |
|
|
|
5,897,734 |
|
|
|
(1,038,209 |
) |
|
|
5,200,502 |
|
|
Net income (loss) attributable to Company
|
|
|
225,724 |
|
|
|
— |
|
|
|
1,932,747 |
|
|
|
(687,356 |
) |
|
|
1,471,115 |
|
Selected statement of operations data for the six months ended June 30:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
4,001,078 |
|
|
$ |
23,190,637 |
|
|
$ |
12,276,681 |
|
|
$ |
— |
|
|
$ |
39,468,396 |
|
|
Selling, general and administrative
expense
|
|
|
946,062 |
|
|
|
5,203,444 |
|
|
|
283,197 |
|
|
|
2,210,455 |
|
|
|
8,643,158 |
|
|
Depreciation and amortization
|
|
|
474,950 |
|
|
|
1,220,183 |
|
|
|
1,186,343 |
|
|
|
22,409 |
|
|
|
2,903,885 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
2,181,167 |
|
|
|
— |
|
|
|
2,181,167 |
|
|
Operating income (loss)
|
|
|
539,421 |
|
|
|
1,984,787 |
|
|
|
12,988,307 |
|
|
|
(2,850,731 |
) |
|
|
12,661,784 |
|
|
Net income (loss) attributable to
Company
|
|
|
356,184 |
|
|
|
470,033 |
|
|
|
5,035,078 |
|
|
|
(2,857,331 |
) |
|
|
3,003,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
4,188,993 |
|
|
$ |
— |
|
|
$ |
12,180,704 |
|
|
$ |
— |
|
|
$ |
16,369,697 |
|
|
Selling, general and administrative
expense
|
|
|
860,826 |
|
|
|
— |
|
|
|
400,824 |
|
|
|
2,020,014 |
|
|
|
3,281,664 |
|
|
Depreciation and amortization
|
|
|
486,072 |
|
|
|
— |
|
|
|
1,186,389 |
|
|
|
48,515 |
|
|
|
1,720,976 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
2,060,433 |
|
|
|
— |
|
|
|
2,060,433 |
|
|
Operating income (loss)
|
|
|
775,809 |
|
|
|
— |
|
|
|
12,652,190 |
|
|
|
(2,202,599 |
) |
|
|
11,225,400 |
|
|
Net income (loss) attributable to
Company
|
|
|
512,836 |
|
|
|
— |
|
|
|
4,418,869 |
|
|
|
(1,451,973 |
) |
|
|
3,479,732 |
|
Selected balance sheet data as of June 30, 2011 and December 31, 2010:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
19,177,360 |
|
|
$ |
55,808,380 |
|
|
$ |
14,785,785 |
|
|
$ |
7,004,475 |
|
|
$ |
96,776,000 |
|
|
Property and equipment, net
|
|
|
7,009,533 |
|
|
|
30,617,739 |
|
|
|
— |
|
|
|
25,146 |
|
|
|
37,652,418 |
|
|
Goodwill
|
|
|
10,308,520 |
|
|
|
1,647,198 |
|
|
|
— |
|
|
|
— |
|
|
|
11,955,718 |
|
|
Liabilities
|
|
|
1,371,129 |
|
|
|
6,267,182 |
|
|
|
1,206,714 |
|
|
|
32,206,834 |
|
|
|
41,051,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
19,949,159 |
|
|
$ |
— |
|
|
$ |
16,705,051 |
|
|
$ |
19,796,576 |
|
|
$ |
56,450,786 |
|
|
Property and equipment, net
|
|
|
7,325,852 |
|
|
|
— |
|
|
|
241 |
|
|
|
46,158 |
|
|
|
7,372,251 |
|
|
Goodwill
|
|
|
10,308,520 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,308,520 |
|
|
Liabilities
|
|
|
1,319,064 |
|
|
|
— |
|
|
|
1,621,394 |
|
|
|
715,481 |
|
|
|
3,655,939 |
|
|