Quarterly report pursuant to Section 13 or 15(d)

Acquisition of Grand Victoria Casino

 v2.3.0.11
Acquisition of Grand Victoria Casino
 6 Months Ended
Jun. 30, 2011
Acquisition of Grand Victoria Casino [Abstract]  
ACQUISITION OF GRAND VICTORIA CASINO
10.  
ACQUISITION OF GRAND VICTORIA CASINO
On September 10, 2010, the Company entered into definitive agreements with Grand Victoria Casino and Resort L.P. to acquire all of the operating assets of the property, located in Rising Sun, Indiana on the Ohio River. The purchase price was $43.0 million, exclusive of working capital adjustment, property cash and fees, as of March 31, 2011. The Company entered into the Credit Agreement with Wells Fargo on October 29, 2010, as discussed in Note 7, and regulatory approvals were obtained to accommodate a closing effective April 1, 2011.
Through June 30, 2011 and December 31, 2010, the Company had incurred $0.5 million and $0.2 million in acquisition related expenses, respectively, which are included in project development and acquisition expense. In conjunction with closing on the financing commitment, the Company has incurred $2.6 million in financing related fees located on the balance sheet in other intangibles.
The purchase price was allocated in the second quarter of 2011 as follows (in millions):
         
Land and land improvements
  $ 8.1  
Buildings and building improvements
    16.8  
Equipment and boat related assets
    6.3  
Gaming license
    9.9  
Player loyalty program
    1.7  
Goodwill
    1.6  
Working capital (deficit)
    (2.0 )
 
     
 
  $ 42.4  
 
     
The goodwill is the excess purchase price over the assets purchased.
The following unaudited, condensed consolidated pro forma data summarizes the Company’s results of operations for the periods indicated as if the acquisition had occurred as of January 1, 2010. This unaudited pro forma consolidated financial information is not necessarily indicative of what the Company’s actual results would have been had the acquisition been completed on that date, or of future financial results. The estimated net income attributable to the Company and the net income per share has been adjusted for Grand Victoria’s effective tax rate in the State of Indiana.
                                 
In thousands, except for per share   Three months ended June 30,     Six months ended June 30,  
amounts   2011     2010     2011     2010  
 
                               
Net revenues
  $ 31,124     $ 31,820     $ 62,585     $ 62,668  
Depreciation and amortization
    2,052       2,768       4,547       5,594  
Operating income
    6,830       2,615       13,489       6,397  
Net income attributable to the Company
    1,397       (2,181 )     2,786       (2,542 )
Net income per share
  $ 0.08     $ (0.12 )   $ 0.15     $ (0.14 )