| SEGMENT REPORTING |
The following tables reflect selected information for the Company’s reporting segments for
the three and nine months ended September 30, 2011 and 2010. The casino operations segment
includes the Rising Star Hotel and Casino’s operation in Rising Sun, Indiana, the Grand
Lodge Casino operation in Lake Tahoe, Nevada 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 is 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 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 September 30:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
3,340,887 |
|
|
$ |
24,060,931 |
|
|
$ |
6,066,093 |
|
|
$ |
— |
|
|
$ |
33,467,911 |
|
|
Selling, general and
administrative expense
|
|
|
895,864 |
|
|
|
5,848,882 |
|
|
|
163,077 |
|
|
|
1,339,296 |
|
|
|
8,247,119 |
|
|
Depreciation and
amortization
|
|
|
248,928 |
|
|
|
1,238,588 |
|
|
|
593,052 |
|
|
|
2,726 |
|
|
|
2,083,294 |
|
|
Operating gains (losses)
|
|
|
(4,500,000 |
) |
|
|
— |
|
|
|
702,301 |
|
|
|
— |
|
|
|
(3,797,699 |
) |
|
Operating income (loss)
|
|
|
(4,148,282 |
) |
|
|
1,164,480 |
|
|
|
5,969,188 |
|
|
|
(1,405,713 |
) |
|
|
1,579,673 |
|
|
Net income (loss)
attributable to Company
|
|
|
(2,737,802 |
) |
|
|
743,425 |
|
|
|
2,509,532 |
|
|
|
(1,654,648 |
) |
|
|
(1,139,493 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
2,032,056 |
|
|
$ |
— |
|
|
$ |
6,604,204 |
|
|
$ |
— |
|
|
$ |
8,636,260 |
|
|
Selling, general and administrative expense
|
|
|
428,937 |
|
|
|
— |
|
|
|
191,985 |
|
|
|
926,933 |
|
|
|
1,547,855 |
|
|
Depreciation and amortization
|
|
|
237,302 |
|
|
|
— |
|
|
|
593,197 |
|
|
|
25,374 |
|
|
|
855,873 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
1,531,900 |
|
|
|
— |
|
|
|
1,531,900 |
|
|
Operating income (loss)
|
|
|
309,666 |
|
|
|
— |
|
|
|
7,350,922 |
|
|
|
(1,100,617 |
) |
|
|
6,559,971 |
|
|
Net income (loss) attributable to Company
|
|
|
206,600 |
|
|
|
— |
|
|
|
2,758,909 |
|
|
|
(728,547 |
) |
|
|
2,236,962 |
|
Selected statement of operations data for the nine months ended September 30:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
7,341,965 |
|
|
$ |
47,251,568 |
|
|
$ |
18,347,774 |
|
|
$ |
— |
|
|
$ |
72,941,307 |
|
|
Selling, general and administrative
expense
|
|
|
1,841,926 |
|
|
|
11,052,326 |
|
|
|
446,275 |
|
|
|
3,549,750 |
|
|
|
16,890,277 |
|
|
Depreciation and amortization
|
|
|
723,878 |
|
|
|
2,458,771 |
|
|
|
1,779,395 |
|
|
|
25,135 |
|
|
|
4,987,179 |
|
|
Operating gains (losses)
|
|
|
(4,500,000 |
) |
|
|
— |
|
|
|
2,878,468 |
|
|
|
— |
|
|
|
(1,621,532 |
) |
|
Operating income (loss)
|
|
|
(3,608,860 |
) |
|
|
3,149,266 |
|
|
|
18,475,417 |
|
|
|
(3,774,366 |
) |
|
|
14,241,457 |
|
|
Net income (loss) attributable to
Company
|
|
|
(2,381,619 |
) |
|
|
1,213,457 |
|
|
|
7,226,438 |
|
|
|
(4,193,805 |
) |
|
|
1,864,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
6,221,049 |
|
|
$ |
— |
|
|
$ |
18,784,908 |
|
|
$ |
— |
|
|
$ |
25,005,957 |
|
| |
|
Selling, general and administrative
expense
|
|
|
1,289,763 |
|
|
|
— |
|
|
|
593,200 |
|
|
|
2,946,947 |
|
|
|
4,829,910 |
|
|
Depreciation and amortization
|
|
|
723,375 |
|
|
|
— |
|
|
|
1,779,586 |
|
|
|
73,888 |
|
|
|
2,576,849 |
|
|
Operating gains
|
|
|
— |
|
|
|
— |
|
|
|
3,592,332 |
|
|
|
— |
|
|
|
3,592,332 |
|
|
Operating income (loss)
|
|
|
1,085,475 |
|
|
|
— |
|
|
|
20,003,113 |
|
|
|
(3,303,217 |
) |
|
|
17,785,371 |
|
|
Net income (loss) attributable to
Company
|
|
|
719,436 |
|
|
|
— |
|
|
|
7,177,779 |
|
|
|
(2,180,521 |
) |
|
|
5,716,694 |
|
Selected balance sheet data as of September 30, 2011 and December 31, 2010:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Casino |
|
|
Casino |
|
|
|
|
|
|
|
|
|
|
| |
|
Operations |
|
|
Operations |
|
|
Development/ |
|
|
|
|
|
|
|
| |
|
Nevada |
|
|
Mid-West |
|
|
Management |
|
|
Corporate |
|
|
Consolidated |
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total assets
|
|
$ |
17,993,963 |
|
|
$ |
53,895,503 |
|
|
$ |
14,073,777 |
|
|
$ |
11,523,220 |
|
|
$ |
97,486,463 |
|
|
Property and
equipment, net
|
|
|
7,559,195 |
|
|
|
30,033,585 |
|
|
|
— |
|
|
|
23,998 |
|
|
|
37,616,778 |
|
|
Goodwill
|
|
|
5,808,520 |
|
|
|
1,647,198 |
|
|
|
— |
|
|
|
— |
|
|
|
7,455,718 |
|
|
Liabilities
|
|
|
3,490,499 |
|
|
|
6,906,831 |
|
|
|
1,302,225 |
|
|
|
30,942,610 |
|
|
|
42,642,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|