Nevada | 02-0815199 | |||
State of Incorporation | IRS Employer Identification Number | |||
3755 Breakthrough Way, Suite 300 Las Vegas, Nevada 89135 | 702-341-2400 | |||
Address, including zip code, of principal executive offices | Registrant's telephone number, including area code |
Large accelerated filer | ¨ | Accelerated filer | ¨ | Non-accelerated filer | þ | Smaller reporting company | ¨ |
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12 | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
• | our ability to attract and retain customers; |
• | our expectation that customers will continue to face economic uncertainty and that their discretionary spending will remain at reduced levels in the near term; |
• | expectations regarding the operation of slot machines and table games at our casino properties; |
• | our expectation regarding the effects of our promotional campaigns and marketing program on reducing costs and improving operating margins; |
• | our anticipation that growth will come from the improvement and expansion of our existing properties or through strategic acquisitions; |
• | our ability to stabilize or improve cash flows from our properties by employing capital; |
• | implementation of business initiatives, including mobile gaming, our player loyalty club and “A-Play” card; |
• | implementation and results of key cost controls and expense savings programs, including player loyalty club points refinements, and minimum balances for redemptions; |
• | competition, including our casinos’ competitive advantages, the threat of new market entrants in our existing locations, increases in popularity of internet gambling, the potential issuance of additional gaming licenses in Midwest Markets and potential introduction of video lottery terminals in Colorado; |
• | potential imposition by state and local licensing authorities of limits, conditions or suspension of gambling or liquor licenses for violations of laws or regulations; |
• | the potential need to make additional expenditures to remain in, or to achieve, compliance with environmental laws; |
• | the impact of new laws or regulations, or material differences in interpretations by courts or governmental authorities; |
• | estimated and projected costs, capital expenditures and expense savings; |
• | the adequacy of cash flows from operations, available cash and available amounts under our credit facility to meet future liquidity needs; and |
• | our continued viability, our operations and results of operations. |
• | our debt service requirements which may adversely affect our operations and ability to compete; |
• | our ability to generate cash to service our substantial indebtedness which depends on many factors that we cannot control; |
• | the impact of restrictions under, and results of noncompliance with, the terms of our credit agreement and notes indenture; |
• | inherent construction project risks, which may hinder expansion and renovation projects; |
• | rising gasoline prices; |
• | intense competition; |
• | extensive regulation from gaming and other government authorities; |
• | changes to applicable gaming and tax laws; |
• | severe weather conditions and other natural disasters that affect visitation to our casinos; |
• | environmental contamination and remediation costs; |
• | pending and potential litigation; |
• | reductions in spending as a result of economic downturns and other factors; |
• | changes in income tax, payroll tax and health care benefits laws; |
• | additional gaming licenses being granted in or adjacent to jurisdictions where we operate; |
• | breaches of our information systems resulting in loss or compromise of customer data; |
• | changes in the smoking laws; and |
• | other factors as described in “Risk Factors” of this Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”). |
ITEM 1. | BUSINESS. |
Property | Location | Year Built1 | Acres | Gaming Square Feet | Slots | Table Games | Hotel Rooms | Parking Spaces | |||||||||||||||
Nevada | |||||||||||||||||||||||
Primm Valley | Primm | 1990 | 63 | 38,000 | 754 | 26 | 626 | 1,100 | |||||||||||||||
Buffalo Bill’s | Primm | 1994 | 61 | 62,000 | 856 | 28 | 1,243 | 2,960 | |||||||||||||||
Whiskey Pete’s | Primm | 1977 | 80 | 36,000 | 551 | 10 | 779 | 1,897 | |||||||||||||||
Silver Sevens | Las Vegas | 2006 | 12 | 25,000 | 817 | 8 | 327 | 885 | |||||||||||||||
Rail City | Sparks | 2007 | 8 | 24,000 | 852 | 5 | — | 541 | |||||||||||||||
Total Nevada | 224 | 185,000 | 3,830 | 77 | 2,975 | 7,383 | |||||||||||||||||
Midwest | |||||||||||||||||||||||
St Jo Frontier | St. Joseph, MO | 2005 | 48 | 13,000 | 509 | 10 | — | 636 | |||||||||||||||
Mark Twain2 | LaGrange, MO | 2001 | 21 | 18,000 | 636 | 13 | — | 591 | |||||||||||||||
Lakeside 2 | Osceola, IA | 2005 | 214 | 36,000 | 905 | 12 | 150 | 1,298 | |||||||||||||||
Total Midwest | 283 | 67,000 | 2,050 | 35 | 150 | 2,525 | |||||||||||||||||
Colorado | |||||||||||||||||||||||
Black Hawk Casinos | Black Hawk, CO | 3 | 4 | 36,400 | 1,049 | 19 | — | 717 | |||||||||||||||
Total | 511 | 288,400 | 6,929 | 131 | 3,125 | 10,625 |
• | Reduce mail program size to reduce cost and focus offers on higher net worth customers |
• | Direct reinvestments into the player loyalty club have been re-evaluated to focus promotional spend to enhance profitability |
• | Market based pricing on food, beverage and fuel |
• | Implementation of yield management on our hotel portfolio |
• | Full-time employees and related payroll expense are closely monitored across the enterprise to minimize operating expenses and maximize operating margins |
• | Player loyalty club point refinements to redemption periods, minimum balance for redemptions |
• | Cost of sales reduction |
• | Energy efficiency projects implemented across the portfolio to reduce energy costs |
• | Outsourced restaurants to strategically-branded third parties |
• | Payroll efficiencies |
ITEM 1A. | RISK FACTORS |
• | make it more difficult for us to satisfy our obligations with respect to the instruments governing our then outstanding indebtedness; |
• | increase our vulnerability to adverse economic and general industry conditions, including interest rate fluctuations, because a portion of our borrowings, including those under our New Credit Facility, are and will continue to be at variable rates of interest; |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, which would reduce the availability of our cash flow from operations to fund working capital, capital expenditures, strategic acquisitions or other general corporate purposes; |
• | limit our flexibility in planning for, or reacting to, competitive pressures and changes in the business and industry in which we operate; |
• | place us at a disadvantage compared to competitors that may have proportionately less debt; |
• | limit our ability to obtain additional debt or equity financing due to applicable financial and restrictive covenants in our debt agreements; and |
• | increase our cost of borrowing. |
• | our debt holders could declare all outstanding principal and interest to be due and payable; |
• | the lenders under our New Credit Facility could terminate their commitments to loan us money and foreclose against the assets securing their borrowings; and |
• | we could be forced into bankruptcy or liquidation. |
• | pay dividends or make certain redemptions, repurchases or distributions (other than customary tax distributions) or make certain other restricted payments or investments; |
• | incur or guarantee additional indebtedness or issue certain preferred stock, disqualified stock or create subordinated indebtedness that is not subordinated to the Notes or the guarantees; |
• | create liens; |
• | transfer and sell assets; |
• | merge, consolidate, or sell, transfer or otherwise dispose of all or substantially all of our assets; |
• | enter into certain transactions with affiliates; |
• | make certain investments; and |
• | create restrictions on dividends or other payments by our restricted subsidiaries. |
• | successfully integrate acquired companies, properties, systems or personnel into our existing business; |
• | minimize any potential interruption to our ongoing business; |
• | successfully enter markets in which we may have limited or no prior experience; |
• | achieve expected synergies and obtain the desired financial or strategic benefits from acquisitions; |
• | retain key relationships with employees, customers, partners and suppliers of acquired companies; and |
• | maintain uniform standards, controls, procedures and policies throughout acquired companies. |
• | pays that person any dividend or interest upon the securities; |
• | allows that person to exercise, directly or indirectly, any voting ownership right conferred through securities held by that person; |
• | pays remuneration in any form to that person for services rendered or otherwise; or |
• | fails to pursue all lawful efforts to require such unsuitable person to relinquish the securities including, if necessary, the immediate purchase of such securities for the lesser of fair value at the time of repurchase or fair value at the time of acquisition by the unsuitable holder. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Plan category | Restricted Stock Shares Awarded and Outstanding | Number of Common Stock Shares to be Issued upon Exercise of Outstanding Options | Weighted Average Exercise Price of Outstanding Options | Number of Securities Remaining Available for Future Issuance under 2011 LTIP | |||||||||
Approved by security holders | 377,247 | 330,605 | $ | 10.24 | 1,292,148 | ||||||||
Not approved by security holders | — | — | $ | — | — |
ITEM 6. | SELECTED FINANCIAL DATA |
Year Ended December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Net revenue | $ | 393,300 | $ | 385,902 | $ | 389,774 | $ | 402,376 | $ | 377,867 | |||||||||
Income (loss) from continuing operations | $ | (13,096 | ) | $ | (23,677 | ) | $ | (991 | ) | $ | 4,634 | $ | 7,872 |
December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Cash and cash equivalents | $ | 157,779 | $ | 135,175 | $ | 140,857 | $ | 126,873 | $ | 45,956 | |||||||||
Total assets | 603,734 | 614,178 | 637,944 | 651,922 | 603,740 | ||||||||||||||
Total debt 1 | 377,057 | 374,701 | 383,999 | 396,716 | 348,400 | ||||||||||||||
Owners’ equity | $ | 170,259 | $ | 182,455 | $ | 204,519 | $ | 207,130 | $ | 206,235 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Nevada | ||||
Primm Valley Casino, Resort & Spa | Primm, NV | (“Primm Valley”) | ||
Buffalo Bill’s Resort & Casino | Primm, NV | (“Buffalo Bill’s”) | ||
Whiskey Pete’s Hotel & Casino | Primm, NV | (“Whiskey Pete’s”) | ||
Silver Sevens Hotel & Casino | Las Vegas, NV | (“Silver Sevens”) | ||
Rail City Casino | Sparks, NV | (“Rail City”) | ||
Midwest | ||||
St Jo Frontier Casino | St. Joseph, MO | (“St Jo”) | ||
Mark Twain Casino | La Grange, MO | (“Mark Twain”) | ||
Lakeside Hotel & Casino | Osceola, IA | (“Lakeside”) | ||
Colorado | ||||
Golden Mardi Gras Casino | Black Hawk, CO | (“Golden Mardi Gras”) | ||
Golden Gulch Casino | Black Hawk, CO | (“Golden Gulch”) | ||
Golden Gate Casino | Black Hawk, CO | (“Golden Gate”) |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net revenue | |||||||||||
Nevada | $ | 233,202 | $ | 226,523 | $ | 230,651 | |||||
Midwest | 122,527 | 121,374 | 121,990 | ||||||||
Colorado | 37,571 | 38,005 | 37,133 | ||||||||
Total net revenue | $ | 393,300 | $ | 385,902 | $ | 389,774 | |||||
Adjusted EBITDA | |||||||||||
Nevada | $ | 40,249 | $ | 26,182 | $ | 28,609 | |||||
Midwest | 38,738 | 34,130 | 37,041 | ||||||||
Colorado | 5,279 | 4,593 | 8,322 | ||||||||
Corporate and other | (18,681 | ) | (14,359 | ) | (11,064 | ) | |||||
Total Adjusted EBITDA | $ | 65,585 | $ | 50,546 | $ | 62,908 |
Year Ended December 31, 2015 | ||||||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Goodwill and Other Impairments | Write Downs, Reserves and Recoveries | Operating Income from Continuing Operations | |||||||||||||||||
Nevada | $ | 40,249 | $ | (14,883 | ) | $ | — | — | $ | 12 | $ | 25,378 | ||||||||||
Midwest | 38,738 | (7,682 | ) | — | — | — | 31,056 | |||||||||||||||
Colorado | 5,279 | (5,264 | ) | — | (20,229 | ) | (58 | ) | (20,272 | ) | ||||||||||||
Corporate and other | (18,681 | ) | (1,199 | ) | (1,206 | ) | — | (255 | ) | (21,341 | ) | |||||||||||
Continuing operations | $ | 65,585 | $ | (29,028 | ) | $ | (1,206 | ) | (20,229 | ) | $ | (301 | ) | $ | 14,821 |
Year Ended December 31, 2014 | |||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Write Downs, Reserves and Recoveries | Operating Income from Continuing Operations | |||||||||||||||
Nevada | $ | 26,182 | $ | (14,650 | ) | $ | — | $ | 448 | $ | 11,980 | ||||||||
Midwest | 34,130 | (7,582 | ) | — | — | 26,548 | |||||||||||||
Colorado | 4,593 | (5,124 | ) | — | — | (531 | ) | ||||||||||||
Corporate and other | (14,359 | ) | (1,223 | ) | (455 | ) | (24 | ) | (16,061 | ) | |||||||||
Continuing operations | $ | 50,546 | $ | (28,579 | ) | $ | (455 | ) | $ | 424 | $ | 21,936 |
Year Ended December 31, 2013 | |||||||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Write Downs, Reserves and Recoveries | Loss on Impairment of Assets | Operating Income from Continuing Operations | ||||||||||||||||||
Nevada | $ | 28,609 | $ | (14,729 | ) | $ | — | $ | (3,125 | ) | $ | (165 | ) | $ | 10,590 | ||||||||
Midwest | 37,041 | (7,023 | ) | — | (3,100 | ) | — | 26,918 | |||||||||||||||
Colorado | 8,322 | (5,058 | ) | — | — | — | 3,264 | ||||||||||||||||
Corporate and other | (11,064 | ) | (999 | ) | (1,169 | ) | 1,459 | — | (11,773 | ) | |||||||||||||
Continuing operations | $ | 62,908 | $ | (27,809 | ) | $ | (1,169 | ) | $ | (4,766 | ) | $ | (165 | ) | $ | 28,999 |
Year Ended December 31, | Percent Change | ||||||||||||||||
2015 | 2014 | 2013 | Current Year | Prior Year | |||||||||||||
Total revenue | |||||||||||||||||
Casino | $ | 295,046 | $ | 294,998 | $ | 299,216 | — | % | (1.4 | )% | |||||||
Food and beverage | 47,536 | 49,029 | 45,494 | (3.0 | )% | 7.8 | % | ||||||||||
Lodging | 26,664 | 26,302 | 26,166 | 1.4 | % | 0.5 | % | ||||||||||
Fuel and retail | 58,471 | 58,893 | 59,011 | (0.7 | )% | (0.2 | )% | ||||||||||
Other | 13,412 | 14,482 | 13,775 | (7.4 | )% | 5.1 | % | ||||||||||
Total revenue | 441,129 | 443,704 | 443,662 | (0.6 | )% | — | % | ||||||||||
Promotional allowances | (47,829 | ) | (57,802 | ) | (53,888 | ) | (17.3 | )% | 7.3 | % | |||||||
Net revenue | $ | 393,300 | $ | 385,902 | $ | 389,774 | 1.9 | % | (1.0 | )% | |||||||
Departmental cost and expense | |||||||||||||||||
Casino | $ | 116,416 | $ | 122,404 | $ | 118,945 | (4.9 | )% | 2.9 | % | |||||||
Food and beverage | 47,188 | 48,137 | 45,375 | (2.0 | )% | 6.1 | % | ||||||||||
Lodging | 16,425 | 16,281 | 17,551 | 0.9 | % | (7.2 | )% | ||||||||||
Fuel and retail | 43,285 | 46,825 | 49,094 | (7.6 | )% | (4.6 | )% | ||||||||||
Other | 7,147 | 7,921 | 7,704 | (9.8 | )% | 2.8 | % | ||||||||||
General and administrative | 78,573 | 79,429 | 77,133 | (1.1 | )% | 3.0 | % | ||||||||||
Depreciation and amortization | 29,028 | 28,579 | 27,809 | 1.6 | % | 2.8 | % | ||||||||||
Corporate | 19,887 | 14,814 | 12,233 | 34.2 | % | 21.1 | % | ||||||||||
Goodwill and other impairments | 20,229 | — | 165 | — | % | (100.0 | )% | ||||||||||
Write downs, reserves and recoveries | 301 | (424 | ) | 4,766 | (171.0 | )% | (108.9 | )% | |||||||||
Departmental cost and expense | $ | 378,479 | $ | 363,966 | $ | 360,775 | 4.0 | % | 0.9 | % | |||||||
Departmental Adjusted EBITDA Margins | |||||||||||||||||
Gaming | 60.5 | % | 58.5 | % | 60.2 | % | |||||||||||
Food and beverage | 0.7 | % | 1.8 | % | 0.3 | % | |||||||||||
Lodging | 38.4 | % | 38.1 | % | 32.9 | % | |||||||||||
Fuel and retail | 26.0 | % | 20.5 | % | 16.8 | % | |||||||||||
Other | 46.7 | % | 45.3 | % | 44.1 | % |
• | food and beverage revenue, which we earn from sales in restaurants and outlets we own and operate at our casinos and from room service sales; |
• | lodging revenue, which we earn from rooms we provide to customers; |
• | fuel and retail revenue, which we earn from sales of fuel, food and beverage items at franchised food outlets, lottery tickets and other retail items at facilities we own at the Primm Casinos, and at facilities we own and lease to third-parties at the Primm Casinos and Lakeside; and |
• | other revenue, which we earn from sources such as consulting agreements, leasing agreements, entertainment services, and cash services at our casino properties. |
• | incur additional debt; |
• | issue preferred stock; |
• | pay dividends or make other restricted payments; |
• | make investments; |
• | create liens; |
• | allow restrictions on the ability of restricted subsidiaries to pay dividends or make other payments; |
• | sell assets; merge or consolidate with other entities; and |
• | enter into transactions with affiliates. |
Payments Due In: | ||||||||||||||||||||
Less Than One Year | One to Three Years | Three to Five Years | After Five Years | Total | ||||||||||||||||
Long-term debt | $ | 11,383 | $ | 371,362 | $ | — | $ | — | $ | 382,745 | ||||||||||
Interest payments on long-term debt | 27,431 | 32,686 | — | 60,117 | ||||||||||||||||
Operating leases | 7,785 | 15,166 | 13,861 | 151,200 | 188,012 | |||||||||||||||
Purchase obligations | 6,605 | 1,255 | 243 | — | 8,103 | |||||||||||||||
Total contractual obligations | $ | 53,204 | $ | 420,469 | $ | 14,104 | $ | 151,200 | $ | 638,977 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit Number | Description | |
2.1 | Asset and Equity Purchase Agreement, dated as of September 20, 2011, by and between Affinity Gaming (formerly Affinity Gaming, LLC) and Golden Gaming, Inc. (incorporated by reference from Exhibit 2.1 to Affinity Gaming’s Quarterly Report on Form 10-Q (File No. 000-54085) dated November 14, 2011) | |
2.2 | First Amendment and Waiver to Asset and Equity Purchase Agreement, dated as of November 17, 2011, by and between Affinity Gaming (formerly Affinity Gaming, LLC) and Golden Gaming, Inc. (incorporated by reference from Exhibit 2.2 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 30, 2012) | |
2.3 | Asset Purchase Agreement, dated as of September 20, 2011, by and between Affinity Gaming (formerly Affinity Gaming, LLC) and Golden Mardi Gras, Inc. (incorporated by reference from Exhibit 2.2 to Affinity Gaming’s Quarterly Report on Form 10-Q (File No. 000-54085) dated November 14, 2011) | |
2.4 | First Amendment and Waiver to Asset Purchase Agreement, dated as of November 17, 2011, by and between Affinity Gaming (formerly Affinity Gaming, LLC) and Golden Mardi Gras, Inc. (incorporated by reference from Exhibit 2.4 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 30, 2012) | |
2.5 | Second Amendment to Asset Purchase Agreement, dated as of February 29, 2012, by and between Affinity Gaming (formerly Affinity Gaming, LLC) and Golden Mardi Gras, Inc. (incorporated by reference from Exhibit 2.5 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 30, 2012) | |
3.1 | Articles of Incorporation of Affinity Gaming and the Addendum thereto (incorporated by reference from Exhibit 3.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated December 20, 2012) | |
3.2 | Amended and Restated Bylaws of Affinity Gaming (incorporated by reference from Exhibit 3.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated March 29, 2013) |
Exhibit Number | Description | |
3.3 | Certificate of Designation of Series A Preferred Stock of Affinity Gaming, as filed with the Secretary of State of the State of Nevada on December 21, 2012 (incorporated by reference from Exhibit 3.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated December 21, 2012) | |
3.4 | Certificate of Withdrawal of Series A Preferred Stock of Affinity Gaming, as filed with the Secretary of State of the State of Nevada on August 15, 2014 (incorporated by reference from Exhibit 3.3 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated August 13, 2014) | |
4.1 | Registration Rights Agreement, dated February 7, 2012, by and among Affinity Gaming (formerly Affinity Gaming, LLC) and SPH Investment, LLC (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated February 13, 2012). | |
4.2 | Registration Rights Agreement, dated May 9, 2012, among Affinity Gaming (formerly Affinity Gaming, LLC), Affinity Gaming Finance Corp., the guarantors party thereto and Deutsche Bank Securities Inc., acting on behalf of itself and as representative of the several initial purchasers party thereto (incorporated by reference from Exhibit 4.2 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated May 10, 2012) | |
4.3 | Indenture, dated May 9, 2012, relating to Affinity Gaming and Affinity Gaming Finance Corp.’s 9% Senior Notes due 2018, by and among Affinity Gaming (formerly Affinity Gaming, LLC), Affinity Gaming Finance Corp., the guarantors party thereto, U.S. Bank, National Association, as trustee, and Deutsche Bank Trust Company Americas, as paying agent, registrar, transfer agent and authenticating agent (incorporated by reference from Exhibit 4.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated May 10, 2012) | |
4.4 | Form of 9% Senior Note due 2018 (included in Exhibit 4.3) | |
4.5 | Supplemental Indenture, dated July 25, 2014, by and between Affinity Gaming, Affinity Gaming Finance Corp., the guarantors party thereto, U.S. | |
10.1 | Credit Agreement, dated May 9, 2012, among Affinity Gaming (formerly Affinity Gaming, LLC), as borrower, Deutsche Bank Trust Company Americas, as administrative agent and as collateral agent, the other agents party thereto and the lenders party thereto (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated May 10, 2012) | |
10.2 | Amended and Restated Ground Lease Agreement, dated as of July 1, 1993, by and between Primm South Real Estate Company and The Primadonna Corporation (incorporated by reference from Exhibit 10.2 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) | |
10.3 | First Amendment to the Amended and Restated Ground Lease Agreement and Consent and Waiver, dated as of August 25, 1997, by and between Primm South Real Estate Company and The Primadonna Corporation (incorporated by reference from Exhibit 10.3 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) | |
10.4 | Second Amendment to the Amended and Restated Ground Lease Agreement, dated as of July 1, 2002, by and between Primm South Real Estate Company and The Primadonna Company, LLC (incorporated by reference from Exhibit 10.4 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) | |
10.5 | Third Amendment to the Amended and Restated Ground Lease Agreement, dated as of September 14, 2004, by and between Primm South Real Estate Company and The Primadonna Company, LLC (incorporated by reference from Exhibit 10.5 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) | |
10.6 | Fourth Amendment to the Amended and Restated Ground Lease Agreement, dated as of September 14, 2004, by and between Primm South Real Estate Company and The Primadonna Company, LLC LLC (incorporated by reference from Exhibit 10.8 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 27, 2015) | |
10.7 | Gold Ranch Casino Lease, dated as of December 27, 2001, by and between Last Chance, Inc., Prospector Gaming Enterprises, Inc. and Target Investments, L.L.C. (incorporated by reference from Exhibit 10.15 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) |
Exhibit Number | Description | |
10.8 | Option to Purchase the Gold Ranch Casino Property and Improvements, The Leach Field Property, the Frontage Parcel, the California Lottery Station and the California Lottery Property, and the Right of First Refusal, dated as of December 27, 2001, by and among Prospector Gaming Enterprises, Inc., Target Investments, L. L. C. and Last Chance, Inc. (incorporated by reference from Exhibit 10.16 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) | |
10.9 | Form of Indemnification Agreement for Directors and Executive Officers (incorporated by reference from Exhibit 10.18 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 3, 2011) † | |
10.10 | Letter Agreement regarding offer of employment, dated as of January 12, 2011, from Affinity Gaming, LLC to, and acknowledged by, Donna Lehmann (incorporated by reference from Exhibit 10.2 to Affinity Gaming, LLC’s Current Report on Form 8-K (File No. 000-54085) dated January 12, 2011) † | |
10.11 | Letter Agreement regarding offer of employment, dated as of February 4, 2011, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Marc H. Rubinstein (incorporated by reference from Exhibit 10.23 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 31, 2011) † | |
10.12 | Executive Severance Agreement, dated as of January 11, 2011, between Affinity Gaming (formerly Affinity Gaming, LLC) and Donna Lehmann (incorporated by reference from Exhibit 10.4 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 12, 2011) † | |
10.13 | Executive Severance Agreement, dated as of February 4, 2011, between Affinity Gaming (formerly Affinity Gaming, LLC) and Marc H. Rubinstein (incorporated by reference from Exhibit 10.26 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 31, 2011) † | |
10.14 | Duty of Loyalty Agreement, dated as of January 11, 2011, between Affinity Gaming (formerly Affinity Gaming, LLC) and Donna Lehmann (incorporated by reference from Exhibit 10.6 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated January 12, 2011) † | |
10.15 | Duty of Loyalty Agreement, dated as of February 4, 2011, between Affinity Gaming (formerly Affinity Gaming, LLC) and Marc H. Rubinstein (incorporated by reference from Exhibit 10.29 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 31, 2011) † | |
10.16 | Amendment to Letter Agreement regarding offer of employment, dated as of May 6, 2011, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Donna Lehmann (incorporated by reference from Exhibit 10.4 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated May 9, 2011) † | |
10.17 | Amendment to Letter Agreement regarding offer of employment, dated as of December 27, 2012, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Donna Lehmann † (incorporated by reference from Exhibit 10.37 to Affinity Gaming 's Annual Report on Form 10-K (File No. 000-54085) dated April 1, 2013) | |
10.18 | Amendment to Executive Severance Agreement, dated as of December 27, 2012, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Donna Lehmann † (incorporated by reference from Exhibit 10.38 to Affinity Gaming 's Annual Report on Form 10-K (File No. 000-54085) dated April 1, 2013) | |
10.19 | Amendment to Duty of Loyalty Agreement, dated as of December 27, 2012, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Donna Lehmann † (incorporated by reference from Exhibit 10.39 to Affinity Gaming 's Annual Report on Form 10-K (File No. 000-54085) dated April 1, 2013) | |
10.20 | Asset Purchase Agreement, dated September 7, 2012, by and among The Sands Regent, LLC, Truckee Gaming, LLC, Affinity Gaming (formerly Affinity Gaming, LLC), Dayton Gaming, LLC and California Prospectors, Ltd. (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated September 10, 2012) | |
10.21 | Consulting Agreement, dated as of May 1, 2011, by and between Affinity Gaming (formerly Herbst Gaming, LLC) and Hotspur Casinos Nevada, Inc. (incorporated by reference from Exhibit 10.5 to Affinity Gaming's Quarterly Report on Form 10-Q (File No. 000-54085) dated August 12, 2011) |
Exhibit Number | Description | |
10.22 | Herbst Gaming, LLC 2011 Long-Term Incentive Plan (incorporated by reference from Exhibit 10.30 to Affinity Gaming's Annual Report on Form 10-K (File No. 000-54085) dated March 31, 2011) † | |
10.23 | Affinity Gaming 2011 Long-Term Incentive Plan, as amended and restated † (incorporated by reference from Exhibit 10.41 to Affinity Gaming 's Current Report on Form 8-K (File No. 000-54085) dated November 4, 2014) | |
10.24 | Amendment to Letter Agreement regarding offer of employment, dated March 20, 2013, from Affinity Gaming to, and acknowledged by, Marc H. Rubinstein (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated March 25, 2013)† | |
10.25 | First Amendment, dated December 13, 2013, to the Credit Agreement, dated May 9, 2012, among Affinity Gaming (formerly Affinity Gaming, LLC), as borrower, Deutsche Bank Trust Company Americas, as administrative agent and as collateral agent, the other agents party thereto and the lenders party thereto (incorporated by reference from Exhibit 10.46 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 28, 2014) | |
10.26 | Amendment, dated as of February 25, 2014, to Letter Agreement regarding offer of employment, the Executive Severance Agreement, and the Duty of Loyalty agreement, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Donna Lehmann (incorporated by reference from Exhibit 10.48 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 28, 2014) † | |
10.27 | Amendment, dated as of February 25, 2014, to Letter Agreement regarding offer of employment, the Executive Severance Agreement, and the Duty of Loyalty agreement, from Affinity Gaming (formerly Affinity Gaming, LLC) to, and acknowledged by, Marc H. Rubinstein (incorporated by reference from Exhibit 10.49 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 28, 2014) † | |
10.28 | Settlement Agreement, dated July 28, 2014, by and between Affinity Gaming, Z Capital Partners, L.L.C. and the other parties thereto (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated July 22, 2014) | |
10.29 | Second Amendment and Waiver to Credit Agreement, dated July 22, 2014, by and between Affinity Gaming, Deutsche Bank Trust Company Americas and the other parties thereto (incorporated by reference from Exhibit 10.2 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated July 22, 2014) | |
10.30 | Executive Employment Agreement, dated August 25, 2014, by and between Affinity Gaming and Michael Silberling (incorporated by reference from Exhibit 10.2 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated August 26, 2014) † | |
10.31 | Confidential Agreement to Amend Employment Agreements, dated February 17, 2015 between Affinity Gaming and Donna Lehmann (incorporated by reference from Exhibit 10.1 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated February 20, 2015).† | |
10.32 | Retention Agreement, dated February 17, 2015 between Affinity Gaming and Marc H. Rubinstein P.C. (incorporated by reference from Exhibit 10.2 to Affinity Gaming’s Current Report on Form 8-K (File No. 000-54085) dated February 20, 2015).† | |
10.33 | Confidential Employment Agreement, effective as of March 19, 2015, between Affinity Gaming and Walter Bogumil (incorporated by reference from Exhibit 10.3 to Affinity Gaming’s Quarterly Report on Form 10-Q (File No. 000-54085) dated May 12, 2015).† | |
10.34 | Change in Control Agreement, effective as of October 5, 2015, between Affinity Gaming and Michael Silberling.*†‡ | |
10.35 | Change in Control Agreement, effective as of October 5, 2015, between Affinity Gaming and Walter Bogumil.*†‡ | |
14.1 | Affinity Gaming Code of Business Conduct and Ethics. * |
Exhibit Number | Description | |
14.2 | Affinity Gaming (formerly Affinity Gaming, LLC) Code of Ethics for Senior Financial Officers. (incorporated by reference from Exhibit 14.2 to Affinity Gaming 's Annual Report on Form 10-K (File No. 000-54085) dated March 31, 2011) | |
21.1 | List of subsidiaries (incorporated by reference from Exhibit 21.1 to Affinity Gaming 's Annual Report on Form 10-K (File No. 000-54085) dated April 1, 2013) | |
23 | Consent of Ernst & Young LLP * | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 * | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 * | |
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 * | |
99.1 | Description of Governmental Regulations * | |
99.2 | Audit Committee Charter (incorporated by reference from Exhibit 99.1 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 27, 2015) | |
99.3 | Compensation Committee Charter (incorporated by reference from Exhibit 99.2 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 27, 2015) | |
99.4 | Governance and Nominating Committee Charter (incorporated by reference from Exhibit 99.3 to Affinity Gaming’s Annual Report on Form 10-K (File No. 000-54085) dated March 27, 2015) | |
101.INS | XBRL Instance Document** | |
101.SCH | XBRL Taxonomy Extension Schema Document** | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document** | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document** | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document** | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document** |
* | Filed herewith. |
** | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
† | Indicates a Management Contract or Compensation Plan or Arrangement. |
‡ | Confidential treatment has been requested as to certain portions of this exhibit, which portions have been omitted and submitted separately with the Securities and Exchange Commission. |
AFFINITY GAMING | ||||
(Registrant) | ||||
Date: | March 23, 2016 | By: | /s/ Michael Silberling | |
Michael Silberling | ||||
Chief Executive Officer | ||||
(principal executive officer) |
Name | Title | Date | ||
/s/ Michael Silberling | CEO (principal executive officer) | March 23, 2016 | ||
Michael Silberling | ||||
/s/ Walter Bogumil | SVP, CFO and Treasurer (principal financial and accounting officer) | March 23, 2016 | ||
Walter Bogumil | ||||
/s/ David Reganato | Director, Chairman | March 23, 2016 | ||
David Reganato | ||||
/s/ James A. Cacioppo | Director | March 23, 2016 | ||
James Cacioppo | ||||
/s/ Matthew A. Doheny | Director | March 23, 2016 | ||
Matthew A. Doheny | ||||
/s/ Andrei Scrivens | Director | March 23, 2016 | ||
Andrei Scrivens | ||||
/s/ Eric V. Tanjeloff | Director | March 23, 2016 | ||
Eric V. Tanjeloff | ||||
/s/ James J. Zenni, Jr. | Director | March 23, 2016 | ||
James J. Zenni, Jr. |
F - 1 |
F - 2 |
December 31, | |||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 157,779 | $ | 135,175 | |||
Restricted cash | 608 | 608 | |||||
Accounts receivable, net of reserve of $147 and $159, respectively | 3,217 | 3,516 | |||||
Income tax receivable | 16 | 171 | |||||
Prepaid expense | 10,079 | 10,134 | |||||
Inventory | 2,798 | 2,666 | |||||
Total current assets | 174,497 | 152,270 | |||||
Property and equipment, net | 251,908 | 261,111 | |||||
Other assets, net | 5,000 | 5,738 | |||||
Intangibles, net | 124,042 | 126,543 | |||||
Goodwill | 48,287 | 68,516 | |||||
Total assets | $ | 603,734 | $ | 614,178 | |||
LIABILITIES AND OWNERS’ EQUITY | |||||||
Accounts payable | $ | 13,220 | $ | 12,902 | |||
Accrued interest | 2,327 | 2,353 | |||||
Accrued expense | 24,158 | 22,510 | |||||
Deferred income taxes | 1,663 | 1,438 | |||||
Current maturities of long-term debt | 11,383 | — | |||||
Other current liabilities | 23 | 30 | |||||
Total current liabilities | 52,774 | 39,233 | |||||
Long-term debt, less current portion | 365,674 | 374,701 | |||||
Other liabilities | 1,932 | 1,708 | |||||
Deferred income taxes | 13,095 | 16,081 | |||||
Total liabilities | 433,475 | 431,723 | |||||
Commitments and contingencies (Note 13) | |||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued or outstanding | — | — | |||||
Common stock, $0.001 par value; 200,000,000 shares authorized; 20,377,247 and 20,300,464 shares issued and outstanding for 2015 and 2014, respectively | 20 | 20 | |||||
Additional paid-in-capital | 208,239 | 207,339 | |||||
Accumulated deficit | (38,000 | ) | (24,904 | ) | |||
Total owners’ equity | 170,259 | 182,455 | |||||
Total liabilities and owners’ equity | $ | 603,734 | $ | 614,178 |
F - 3 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
REVENUE | |||||||||||
Casino | $ | 295,046 | $ | 294,998 | $ | 299,216 | |||||
Food and beverage | 47,536 | 49,029 | 45,494 | ||||||||
Lodging | 26,664 | 26,302 | 26,166 | ||||||||
Fuel and retail | 58,471 | 58,893 | 59,011 | ||||||||
Other | 13,412 | 14,482 | 13,775 | ||||||||
Total revenue | 441,129 | 443,704 | 443,662 | ||||||||
Promotional allowances | (47,829 | ) | (57,802 | ) | (53,888 | ) | |||||
Net revenue | 393,300 | 385,902 | 389,774 | ||||||||
EXPENSE | |||||||||||
Casino | 116,416 | 122,404 | 118,945 | ||||||||
Food and beverage | 47,188 | 48,137 | 45,375 | ||||||||
Lodging | 16,425 | 16,281 | 17,551 | ||||||||
Fuel and retail | 43,285 | 46,825 | 49,094 | ||||||||
Other | 7,147 | 7,921 | 7,704 | ||||||||
General and administrative | 78,573 | 79,429 | 77,133 | ||||||||
Depreciation and amortization | 29,028 | 28,579 | 27,809 | ||||||||
Corporate | 19,887 | 14,814 | 12,233 | ||||||||
Goodwill and other impairments | 20,229 | — | 165 | ||||||||
Write downs, reserves and recoveries | 301 | (424 | ) | 4,766 | |||||||
Total expense | 378,479 | 363,966 | 360,775 | ||||||||
Operating income from continuing operations | 14,821 | 21,936 | 28,999 | ||||||||
Other expense | |||||||||||
Interest expense, net | (30,652 | ) | (29,827 | ) | (30,428 | ) | |||||
Loss on extinguishment (or modification) of debt | — | (240 | ) | (81 | ) | ||||||
Total other expense, net | (30,652 | ) | (30,067 | ) | (30,509 | ) | |||||
Loss from continuing operations before income tax | (15,831 | ) | (8,131 | ) | (1,510 | ) | |||||
Benefit from (provision for) income taxes | 2,735 | (15,546 | ) | 519 | |||||||
Loss from continuing operations | $ | (13,096 | ) | $ | (23,677 | ) | $ | (991 | ) | ||
Discontinued operations (Note 16): | |||||||||||
Loss from discontinued operations before income tax | — | — | (369 | ) | |||||||
Benefit from income taxes | — | — | 133 | ||||||||
Loss from discontinued operations | $ | — | $ | — | $ | (236 | ) | ||||
Net loss | $ | (13,096 | ) | $ | (23,677 | ) | $ | (1,227 | ) |
F - 4 |
Common Stock | ||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||
Balance December 31, 2012 | 20,257,625 | $ | 20 | $ | 207,110 | $ | — | $ | 207,130 | |||||||||
Net loss | — | — | — | (1,227 | ) | (1,227 | ) | |||||||||||
Share-based compensation | — | — | 1,169 | — | 1,169 | |||||||||||||
Repurchase of vested share-based awards | — | — | (318 | ) | — | (318 | ) | |||||||||||
Conversion to accounting for stock option awards as liabilities | — | — | (2,235 | ) | — | (2,235 | ) | |||||||||||
Shares issued under share-based compensation plans | 31,374 | — | — | — | — | |||||||||||||
Shares forfeited, canceled or expired | (45,737 | ) | — | — | — | — | ||||||||||||
Balance December 31, 2013 | 20,243,262 | 20 | 205,726 | (1,227 | ) | 204,519 | ||||||||||||
Net loss | — | — | — | (23,677 | ) | (23,677 | ) | |||||||||||
Share-based compensation | — | — | 455 | — | 455 | |||||||||||||
Canceled liability stock option awards | — | — | 1,158 | — | 1,158 | |||||||||||||
Shares issued under share-based compensation plans | 60,455 | — | — | — | — | |||||||||||||
Shares forfeited, canceled or expired | (3,253 | ) | — | — | — | — | ||||||||||||
Balance December 31, 2014 | 20,300,464 | 20 | 207,339 | (24,904 | ) | 182,455 | ||||||||||||
Net loss | — | — | — | (13,096 | ) | (13,096 | ) | |||||||||||
Share-based compensation | — | — | 971 | — | 971 | |||||||||||||
Repurchase of vested share-based awards | — | — | (71 | ) | — | (71 | ) | |||||||||||
Shares issued under share-based compensation plans | 84,101 | — | — | — | — | |||||||||||||
Shares forfeited, canceled or expired | (7,318 | ) | — | — | — | — | ||||||||||||
Balance December 31, 2015 | 20,377,247 | $ | 20 | $ | 208,239 | $ | (38,000 | ) | $ | 170,259 |
F - 5 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (13,096 | ) | $ | (23,677 | ) | $ | (1,227 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Loss from discontinued operations before income tax | — | — | 369 | ||||||||
Depreciation and amortization | 29,028 | 28,579 | 27,809 | ||||||||
Amortization of debt costs and discounts | 2,990 | 2,203 | 2,209 | ||||||||
(Gain) loss on sale of property and equipment | 39 | 1 | (42 | ) | |||||||
Unamortized loan fees related to extinguishment (or modification) of debt | — | 240 | 81 | ||||||||
Goodwill and other impairments | 20,229 | — | 165 | ||||||||
Share-based compensation | 1,206 | 455 | 1,169 | ||||||||
Environmental remediation costs | — | — | 3,185 | ||||||||
Deferred income taxes | (2,761 | ) | 15,586 | (265 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 299 | (145 | ) | 1,738 | |||||||
Prepaid expense | 54 | (275 | ) | (1,252 | ) | ||||||
Inventory | (132 | ) | 311 | (142 | ) | ||||||
Other assets | 132 | 783 | 1,092 | ||||||||
Accounts payable | 265 | (1,698 | ) | 1,886 | |||||||
Accrued interest | (26 | ) | (115 | ) | (113 | ) | |||||
Accrued expense | 1,648 | 369 | 1,119 | ||||||||
Income tax payable/receivable | 155 | 249 | (936 | ) | |||||||
Other liabilities | (44 | ) | (95 | ) | (58 | ) | |||||
Net cash provided by operating activities | 39,986 | 22,771 | 36,787 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale to Truckee Gaming, LLC | — | — | 17,447 | ||||||||
Proceeds from sale of property and equipment | 22 | 365 | 70 | ||||||||
Purchases of property and equipment | (17,303 | ) | (17,241 | ) | (31,720 | ) | |||||
Net cash used in investing activities | (17,281 | ) | (16,876 | ) | (14,203 | ) | |||||
Cash flows from financing activities: | |||||||||||
Payment on long-term debt | (30 | ) | (8,717 | ) | (11,744 | ) | |||||
Proceeds from long-term debt | — | — | 4,314 | ||||||||
Loan origination fees | — | (2,860 | ) | (852 | ) | ||||||
Repurchases of vested share-based awards | (71 | ) | — | (318 | ) | ||||||
Net cash used in financing activities | (101 | ) | (11,577 | ) | (8,600 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 22,604 | (5,682 | ) | 13,984 | |||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | 135,175 | 140,857 | 126,873 | ||||||||
End of period | $ | 157,779 | $ | 135,175 | $ | 140,857 | |||||
Cash flows from discontinued operations: | |||||||||||
Cash flows from operating activities | $ | — | $ | — | $ | 36 | |||||
Cash flows from investing activities | — | — | (4,695 | ) | |||||||
Cash flows from discontinued operations | $ | — | $ | — | $ | (4,659 | ) | ||||
Supplemental cash flow information: | |||||||||||
Cash paid during the period for interest | $ | 27,887 | $ | 27,920 | 28,867 | ||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||
Purchase of property and equipment financed through accounts payable | $ | 2,633 | $ | 2,580 | 3,779 | ||||||
Acquisition of property and equipment under capital lease | — | 82 | 363 |
F - 6 |
F - 7 |
• | Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities; |
• | Level 2 – Valuations based on observable inputs that do not meet the criteria for Level 1, including quoted prices in inactive markets and observable market data for similar, but not identical instruments; and |
• | Level 3 – Valuations based on unobservable inputs, which are based upon the best available information when external market data is limited or unavailable. |
F - 8 |
F - 9 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Lodging | $ | 10,704 | $ | 13,797 | $ | 12,891 | |||||
Food and Beverage | 28,305 | 31,726 | 28,176 | ||||||||
Other | 8,820 | 12,279 | 12,821 | ||||||||
Total | $ | 47,829 | $ | 57,802 | $ | 53,888 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Lodging | $ | 10,700 | $ | 13,797 | $ | 12,891 | |||||
Food and Beverage | 13,263 | 15,587 | 13,639 | ||||||||
Other | 7,926 | 10,861 | 11,194 | ||||||||
Total | $ | 31,889 | $ | 40,245 | $ | 37,724 |
F - 10 |
F - 11 |
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||
Previously Reported | Correction | As Adjusted | Previously Reported | Correction | As Adjusted | |||||||||||||||||||
Net Revenue | $ | 387,991 | $ | (2,089 | ) | $ | 385,902 | $ | 390,488 | $ | (714 | ) | $ | 389,774 | ||||||||||
Operating Expenses | $ | 366,055 | $ | (2,089 | ) | $ | 363,966 | $ | 361,489 | $ | (714 | ) | $ | 360,775 |
F - 12 |
December 31, | |||||||||
Estimated Life (Years) | 2015 | 2014 | |||||||
Building and improvements | 7 - 40 | $ | 185,875 | $ | 183,457 | ||||
Gaming equipment | 3 - 10 | 75,527 | 64,826 | ||||||
Furniture, fixtures, and equipment | 3 - 10 | 49,571 | 45,302 | ||||||
Leasehold improvements | 7 | 196 | 196 | ||||||
Land | — | 39,513 | 39,493 | ||||||
Barge | 30 | 15,019 | 15,019 | ||||||
Construction-in-progress | 3,185 | 3,815 | |||||||
Total property and equipment | 368,886 | 352,108 | |||||||
Less accumulated depreciation | (116,978 | ) | (90,997 | ) | |||||
Total property and equipment, net | $ | 251,908 | $ | 261,111 |
F - 13 |
December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||
Customer loyalty programs | $ | 12,164 | $ | (8,583 | ) | $ | 3,581 | $ | 12,164 | $ | (6,581 | ) | $ | 5,583 | |||||||||
Trademarks | 2,982 | (2,398 | ) | 584 | 2,982 | (1,899 | ) | 1,083 | |||||||||||||||
$ | 15,146 | $ | (10,981 | ) | $ | 4,165 | $ | 15,146 | $ | (8,480 | ) | $ | 6,666 | ||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||
Gaming license rights | $ | 110,646 | $ | 110,646 | $ | 110,646 | $ | 110,646 | |||||||||||||||
Local tradenames | 9,231 | 9,231 | 9,231 | 9,231 | |||||||||||||||||||
$ | 119,877 | $ | 119,877 | $ | 119,877 | $ | 119,877 | ||||||||||||||||
Total intangible assets | $ | 135,023 | $ | 124,042 | $ | 135,023 | $ | 126,543 |
Nevada | Midwest | Colorado | Total | ||||||||||||
Balance at December 31, 2014 | $ | 33,665 | $ | 14,622 | $ | 20,229 | $ | 68,516 | |||||||
Impairment of goodwill | — | — | (20,229 | ) | (20,229 | ) | |||||||||
Balance at December 31, 2015 | $ | 33,665 | $ | 14,622 | $ | — | $ | 48,287 |
F - 14 |
2016 | $ | 2,501 | |
2017 | 975 | ||
2018 | 689 |
December 31, | |||||||
2015 | 2014 | ||||||
Capitalized debt issuance cost, net | $ | 1,470 | $ | 2,081 | |||
Long-term deposits | 2,919 | 3,172 | |||||
Other assets | 611 | 485 | |||||
Total | $ | 5,000 | $ | 5,738 | |||
December 31, | |||||||
2015 | 2014 | ||||||
Progressive jackpot liabilities | $ | 2,984 | $ | 3,271 | |||
Accrued payroll and related | 7,441 | 6,712 | |||||
Slot club point liability | 3,213 | 3,353 | |||||
Litigation reserve | 3,100 | 3,100 | |||||
Other accrued expense | 7,420 | 6,074 | |||||
Total | $ | 24,158 | $ | 22,510 |
F - 15 |
December 31, | |||||||
2015 | 2014 | ||||||
9% Senior Unsecured Notes due 2018 | $ | 200,000 | $ | 200,000 | |||
Unamortized debt issuance cost, net | (2,203 | ) | (2,986 | ) | |||
Unamortized discount | (847 | ) | (1,148 | ) | |||
9% Senior Unsecured Notes due 2018, net | 196,950 | 195,866 | |||||
Term loan due 2017 | 182,745 | 182,745 | |||||
Unamortized debt issuance cost, net | (2,638 | ) | (3,933 | ) | |||
Term loan due 2017, net | 180,107 | 178,812 | |||||
Total debt, including current portion | 377,057 | 374,678 | |||||
Less: current maturities | (11,383 | ) | — | ||||
Plus: long-term portion of capital leases | — | 23 | |||||
Total long-term debt | $ | 365,674 | $ | 374,701 | |||
F - 16 |
Year | Percentage | ||
2015 | 104.50 | % | |
2016 | 102.25 | % | |
2017 and thereafter | 100.00 | % |
F - 17 |
Carrying Value | Estimated Fair Value | ||||||
9% Senior Unsecured Notes due 2018 | $ | 196,950 | $ | 195,965 | |||
Term loan due 2017 | 180,107 | 180,107 | |||||
Total | $ | 377,057 | $ | 376,072 |
December 31, | |||||||
2015 | 2014 | ||||||
Current deferred tax asset (liability) | $ | (1,663 | ) | $ | (1,438 | ) | |
Non-current deferred tax liability | (13,095 | ) | (16,081 | ) | |||
Net deferred tax liability | $ | (14,758 | ) | $ | (17,519 | ) | |
F - 18 |
December 31, | |||||||
2015 | 2014 | ||||||
Deferred Tax Assets | |||||||
Reserve for employee benefits | $ | 656 | $ | 715 | |||
Provision for doubtful accounts | 53 | 57 | |||||
Deferred compensation | 744 | 608 | |||||
Asset retirement obligation | 193 | 180 | |||||
Progressive slot and players’ club liabilities | 2,386 | 2,595 | |||||
Tax benefit of current year NOL | 12,901 | 13,834 | |||||
Equity compensation | 1,108 | 927 | |||||
General business credits | 1,029 | 837 | |||||
AMT credit | 330 | 213 | |||||
Litigation reserve | 1,116 | 1,116 | |||||
Gaming taxes | 1,136 | 765 | |||||
Accrued expenses | 483 | 200 | |||||
Other | 679 | 208 | |||||
Gross deferred tax assets | 22,814 | 22,255 | |||||
Valuation allowance | (21,082 | ) | (17,992 | ) | |||
Deferred tax assets, net of valuation allowance | 1,732 | 4,263 | |||||
Deferred Tax Liabilities | |||||||
Depreciation and amortization | (13,821 | ) | (18,715 | ) | |||
Debt issuance costs | (501 | ) | (453 | ) | |||
Prepaid services and supplies | (2,168 | ) | (2,614 | ) | |||
Gross deferred tax liabilities | (16,490 | ) | (21,782 | ) | |||
Net deferred tax liability | $ | (14,758 | ) | $ | (17,519 | ) |
F - 19 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
CURRENT | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Total current tax provision | — | — | — | ||||||||
DEFERRED | |||||||||||
Federal | 2,583 | (14,682 | ) | 694 | |||||||
State | 152 | (864 | ) | (175 | ) | ||||||
Total deferred tax benefit (provision) | 2,735 | (15,546 | ) | 519 | |||||||
Benefit from (provision for) income taxes related to continuing operations | 2,735 | (15,546 | ) | 519 | |||||||
Benefit from income taxes related to discontinued operations | — | — | 133 | ||||||||
Total benefit from (provision for) income tax | $ | 2,735 | $ | (15,546 | ) | $ | 652 |
F - 20 |
December 31, | |||||
2015 | 2014 | ||||
Tax at federal statutory rate | 34.0 | % | 34.0 | % | |
State income tax | 2.0 | % | 2.0 | % | |
Lobbying costs (non-deductible expense) | (0.4 | )% | (6.0 | )% | |
Other non-deductible expense | (1.3 | )% | (3.3 | )% | |
Other, net | 0.5 | % | (0.5 | )% | |
State provision adjustment | — | % | — | % | |
Valuation allowance | (19.5 | )% | (221.3 | )% | |
General business credit | 2.0 | % | 3.9 | % | |
Effective tax rate related to continuing operations | 17.3 | % | (191.2 | )% | |
Effective tax rate related to discontinued operations | — | % | — | % | |
Total effective tax rate | 17.3 | % | (191.2 | )% |
F - 21 |
Stock Options | Restricted Stock | ||||||||||||
Outstanding | Non-Vested | ||||||||||||
Shares | Weighted Average Exercise Price Per Share | Shares | Weighted Average Fair Value Per Share | ||||||||||
December 31, 2014 | 177,497 | $ | 10.99 | 70,061 | $ | 11.54 | |||||||
Granted | 212,500 | 9.75 | 84,101 | 9.75 | |||||||||
Vested | — | — | (71,872 | ) | 10.79 | ||||||||
Forfeited | (18,383 | ) | 11.61 | — | — | ||||||||
Expired | (41,009 | ) | $ | 10.36 | — | $ | — | ||||||
December 31, 2015 | 330,605 | $ | 10.24 | 82,290 | $ | 10.54 |
Vested and Exercisable | Expected to Vest | ||||||
Number of stock options | 63,610 | 329,685 | |||||
Weighted-average exercise price per share | $ | 10.69 | $ | 10.23 | |||
Aggregate intrinsic value (in thousands) | $ | 62 | $ | 474 | |||
Weighted-average remaining contractual term (in years) | 1.7 | 3.6 |
2015 | 2014 | ||||
Expected term in years | 1.8 | 1.3 | |||
Expected volatility | 45 | % | 48 | % | |
Expected dividends | — | % | — | % | |
Risk-free interest rates | 0.91 | % | 0.45 | % |
F - 22 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Compensation cost included in operating expense (in thousands) | |||||||||||
Stock options | $ | 245 | $ | 61 | $ | 338 | |||||
Restricted stock | 961 | 394 | 831 | ||||||||
Total | $ | 1,206 | $ | 455 | $ | 1,169 |
December 31, 2015 | |||
Unrecognized compensation cost for non-vested awards (in thousands) | |||
Stock options | $ | 1,087 | |
Restricted stock | 964 | ||
Total | $ | 2,051 | |
Weighted-average years to be recognized | |||
Stock options | 1.3 | ||
Restricted stock | 0.6 |
F - 23 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
CCDC litigation reserve 1 | $ | — | $ | — | $ | 3,100 | |||||
Tax penalties and interest related to bankruptcy estate 2 | — | — | (1,459 | ) | |||||||
Write off of capitalized environmental remediation costs 3 | (60 | ) | (448 | ) | 2,649 | ||||||
Amounts related to closure of Henderson Casino Bowl 4 | — | — | 476 | ||||||||
Loss on asset disposal | 47 | — | — | ||||||||
Other 5 | 314 | 24 | — | ||||||||
Write downs, reserves and recoveries | $ | 301 | $ | (424 | ) | $ | 4,766 |
1. | As discussed in Note 13, we are party to ongoing litigation with our non-profit partner, CCDC, in Lakeside, Iowa. We have accrued this amount based upon the amount stipulated in the memorandum of understanding we discussed with CCDC in contemplation of settling this litigation. Although we did not ultimately agree to the settlement and the litigation remains open, the accrual represents our best estimate of anticipated expense to settle the litigation. We recorded the expense in our Midwest segment. |
2. | During 2013, we resolved outstanding issues related to disputed claims filed by the IRS related to the Predecessor’s bankruptcy case and reversed the accrual, recording accrual, recording write downs, reserves and recoveries income at the corporate level. |
3. | During the quarter ended December 31, 2013, we recorded a correction in our Nevada segment which expensed previously-capitalized costs related to the environmental remediation work performed during the construction of our new travel center at Whiskey Pete’s Hotel & Casino. Expense (income) recorded for the years ended December 31, 2014 and 2013, are presented net of insurance recoveries. |
4. | We closed the Henderson casino on December 11, 2013. This amount represents asset write offs and other expense related to the closing. |
5. | Expenses related to Predecessor activity. |
F - 24 |
F - 25 |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | |||||||||||||||||||||
Lease payments | $ | 7,785 | $ | 7,583 | $ | 7,583 | $ | 7,139 | $ | 6,722 | $ | 151,200 | $ | 188,012 |
F - 26 |
December 31, 2015 | December 31, 2014 | ||||||
Balance at beginning of period | $ | 501 | $ | 773 | |||
Adjustment due to re-estimate | — | (319 | ) | ||||
Accretion expense | 34 | 47 | |||||
Balance at end of period | $ | 535 | $ | 501 | |||
F - 27 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Gross revenue | |||||||||||
Nevada | $ | 266,103 | $ | 265,887 | $ | 267,637 | |||||
Midwest | 132,918 | 134,072 | 133,947 | ||||||||
Colorado | 42,108 | 43,745 | 42,078 | ||||||||
Total gross revenue | 441,129 | 443,704 | 443,662 | ||||||||
Promotional allowances | |||||||||||
Nevada | (32,901 | ) | (39,364 | ) | (36,986 | ) | |||||
Midwest | (10,391 | ) | (12,698 | ) | (11,957 | ) | |||||
Colorado | (4,537 | ) | (5,740 | ) | (4,945 | ) | |||||
Total promotional allowances | (47,829 | ) | (57,802 | ) | (53,888 | ) | |||||
Net revenue | |||||||||||
Nevada | 233,202 | 226,523 | 230,651 | ||||||||
Midwest | 122,527 | 121,374 | 121,990 | ||||||||
Colorado | 37,571 | 38,005 | 37,133 | ||||||||
Total net revenue | $ | 393,300 | $ | 385,902 | $ | 389,774 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Adjusted EBITDA | |||||||||||
Nevada | $ | 40,249 | $ | 26,182 | $ | 28,609 | |||||
Midwest | 38,738 | 34,130 | 37,041 | ||||||||
Colorado | 5,279 | 4,593 | 8,322 | ||||||||
Corporate and other | (18,681 | ) | (14,359 | ) | (11,064 | ) | |||||
Total Adjusted EBITDA | $ | 65,585 | $ | 50,546 | $ | 62,908 |
F - 28 |
Year Ended December 31, 2015 | ||||||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Goodwill and Other Impairments | Write Downs, Reserves and Recoveries | Operating Income from Continuing Operations | |||||||||||||||||
Nevada | $ | 40,249 | $ | (14,883 | ) | $ | — | — | $ | 12 | $ | 25,378 | ||||||||||
Midwest | 38,738 | (7,682 | ) | — | — | — | 31,056 | |||||||||||||||
Colorado | 5,279 | (5,264 | ) | — | (20,229 | ) | (58 | ) | (20,272 | ) | ||||||||||||
Corporate and other | (18,681 | ) | (1,199 | ) | (1,206 | ) | — | (255 | ) | (21,341 | ) | |||||||||||
Continuing operations | $ | 65,585 | $ | (29,028 | ) | $ | (1,206 | ) | (20,229 | ) | $ | (301 | ) | $ | 14,821 |
Year Ended December 31, 2014 | |||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Write Downs, Reserves and Recoveries | Operating Income from Continuing Operations | |||||||||||||||
Nevada | $ | 26,182 | $ | (14,650 | ) | $ | — | $ | 448 | $ | 11,980 | ||||||||
Midwest | 34,130 | (7,582 | ) | — | — | 26,548 | |||||||||||||
Colorado | 4,593 | (5,124 | ) | — | — | (531 | ) | ||||||||||||
Corporate and other | (14,359 | ) | (1,223 | ) | (455 | ) | (24 | ) | (16,061 | ) | |||||||||
Continuing operations | $ | 50,546 | $ | (28,579 | ) | $ | (455 | ) | $ | 424 | $ | 21,936 |
Year Ended December 31, 2013 | |||||||||||||||||||||||
Adjusted EBITDA | Depreciation and Amortization | Share-Based Compensation | Write Downs, Reserves and Recoveries | Loss on Impairment of Assets | Operating Income from Continuing Operations | ||||||||||||||||||
Nevada | $ | 28,609 | $ | (14,729 | ) | $ | — | $ | (3,125 | ) | $ | (165 | ) | $ | 10,590 | ||||||||
Midwest | 37,041 | (7,023 | ) | — | (3,100 | ) | — | 26,918 | |||||||||||||||
Colorado | 8,322 | (5,058 | ) | — | — | — | 3,264 | ||||||||||||||||
Corporate and other | (11,064 | ) | (999 | ) | (1,169 | ) | 1,459 | — | (11,773 | ) | |||||||||||||
Continuing operations | $ | 62,908 | $ | (27,809 | ) | $ | (1,169 | ) | $ | (4,766 | ) | $ | (165 | ) | $ | 28,999 |
F - 29 |
December 31, 2015 | December 31, 2014 | ||||||
Total assets by reportable segment | |||||||
Nevada | $ | 224,731 | $ | 226,897 | |||
Midwest | 207,414 | 209,897 | |||||
Colorado | 57,242 | 78,766 | |||||
Reportable segment total assets | 489,387 | 515,560 | |||||
Corporate and other | 114,347 | 98,618 | |||||
Total assets | $ | 603,734 | $ | 614,178 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash paid for capital expenditures by reportable segment | |||||||||||
Nevada | $ | 7,910 | $ | 7,984 | $ | 15,063 | |||||
Midwest | 3,612 | 5,347 | 5,813 | ||||||||
Colorado | 2,170 | 2,937 | 9,717 | ||||||||
Reportable segment capital expenditures | 13,692 | 16,268 | 30,593 | ||||||||
Corporate | 3,611 | 973 | 1,127 | ||||||||
Total cash paid for capital expenditures | $ | 17,303 | $ | 17,241 | $ | 31,720 |
F - 30 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | — | $ | — | $ | 3,289 | |||||
Pretax income (loss) from discontinued operations | $ | — | $ | — | $ | (369 | ) | ||||
Discontinued operations, net of tax | $ | — | $ | — | $ | (236 | ) |
March 31 | June 30 | September 30 | December 31 | Total | |||||||||||||||
December 31, 2015 | |||||||||||||||||||
Net revenue | $ | 96,978 | $ | 101,511 | $ | 101,950 | $ | 92,861 | $ | 393,300 | |||||||||
Operating income | 10,762 | 10,085 | 9,047 | (15,073 | ) | 14,821 | |||||||||||||
Income (loss) from continuing operations | (240 | ) | 797 | 1,996 | (15,649 | ) | (13,096 | ) | |||||||||||
December 31, 2014 | |||||||||||||||||||
Net revenue | $ | 95,522 | $ | 98,916 | $ | 99,231 | $ | 92,233 | $ | 385,902 | |||||||||
Operating income | 6,846 | 5,943 | 5,210 | 3,937 | 21,936 | ||||||||||||||
Income (loss) from continuing operations | 47 | (14,367 | ) | (3,685 | ) | (5,672 | ) | (23,677 | ) |
F - 31 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Eliminating Entries | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 106,384 | $ | — | $ | 51,395 | $ | — | $ | 157,779 | |||||||||
Restricted cash | 469 | — | 139 | — | 608 | ||||||||||||||
Accounts receivable, net | 220 | — | 2,997 | — | 3,217 | ||||||||||||||
Income tax receivable | 16 | — | — | — | 16 | ||||||||||||||
Prepaid expense | 1,813 | — | 8,266 | — | 10,079 | ||||||||||||||
Inventory | — | — | 2,798 | — | 2,798 | ||||||||||||||
Total current assets | 108,902 | — | 65,595 | — | 174,497 | ||||||||||||||
Property and equipment, net | 2,002 | — | 249,906 | — | 251,908 | ||||||||||||||
Intercompany receivables | — | — | 110,150 | (110,150 | ) | — | |||||||||||||
Investment in subsidiaries | 551,953 | — | — | (551,953 | ) | — | |||||||||||||
Other assets, net | 3,444 | — | 1,556 | — | 5,000 | ||||||||||||||
Intangibles, net | — | — | 124,042 | — | 124,042 | ||||||||||||||
Goodwill | — | — | 48,287 | — | 48,287 | ||||||||||||||
Total assets | $ | 666,301 | $ | — | $ | 599,536 | $ | (662,103 | ) | $ | 603,734 | ||||||||
LIABILITIES AND OWNERS’ EQUITY | |||||||||||||||||||
Accounts payable | $ | 3,483 | $ | — | $ | 9,737 | $ | — | $ | 13,220 | |||||||||
Intercompany payables | 110,150 | — | — | (110,150 | ) | — | |||||||||||||
Accrued interest | 2,327 | — | — | — | 2,327 | ||||||||||||||
Accrued expense | 1,455 | — | 22,703 | — | 24,158 | ||||||||||||||
Deferred income taxes | 53 | 1,610 | — | 1,663 | |||||||||||||||
Current maturities of long-term debt | 11,383 | — | — | — | 11,383 | ||||||||||||||
Other current liabilities | — | — | 23 | — | 23 | ||||||||||||||
Total current liabilities | 128,851 | — | 34,073 | (110,150 | ) | 52,774 | |||||||||||||
Long-term debt, less current portion | 365,674 | — | — | — | 365,674 | ||||||||||||||
Other liabilities | 1,397 | — | 535 | — | 1,932 | ||||||||||||||
Deferred income taxes | 120 | — | 12,975 | — | 13,095 | ||||||||||||||
Total liabilities | 496,042 | — | 47,583 | (110,150 | ) | 433,475 | |||||||||||||
Common stock | 20 | — | — | — | 20 | ||||||||||||||
Other equity | 170,239 | — | 551,953 | (551,953 | ) | 170,239 | |||||||||||||
Total owners’ equity | 170,259 | — | 551,953 | (551,953 | ) | 170,259 | |||||||||||||
Total liabilities and owners’ equity | $ | 666,301 | $ | — | $ | 599,536 | $ | (662,103 | ) | $ | 603,734 |
F - 32 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Eliminating Entries | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 88,737 | $ | — | $ | 46,438 | $ | — | $ | 135,175 | |||||||||
Restricted cash | 469 | — | 139 | — | 608 | ||||||||||||||
Accounts receivable, net | 916 | — | 2,600 | — | 3,516 | ||||||||||||||
Income tax receivable | 171 | — | — | — | 171 | ||||||||||||||
Prepaid expense | 1,086 | — | 9,048 | — | 10,134 | ||||||||||||||
Inventory | — | — | 2,666 | — | 2,666 | ||||||||||||||
Total current assets | 91,379 | — | 60,891 | — | 152,270 | ||||||||||||||
Property and equipment, net | 3,016 | — | 258,095 | — | 261,111 | ||||||||||||||
Intercompany receivables | — | — | 82,764 | (82,764 | ) | — | |||||||||||||
Investment in subsidiaries | 548,541 | — | — | (548,541 | ) | — | |||||||||||||
Other assets, net | 4,223 | — | 1,515 | — | 5,738 | ||||||||||||||
Intangibles, net | — | — | 126,543 | — | 126,543 | ||||||||||||||
Goodwill | — | — | 68,516 | — | 68,516 | ||||||||||||||
Total assets | $ | 647,159 | $ | — | $ | 598,324 | $ | (631,305 | ) | $ | 614,178 | ||||||||
LIABILITIES AND OWNERS’ EQUITY | |||||||||||||||||||
Accounts payable | $ | 1,737 | $ | — | $ | 11,165 | $ | — | $ | 12,902 | |||||||||
Intercompany payables | 82,764 | — | — | (82,764 | ) | — | |||||||||||||
Accrued interest | 2,353 | — | — | — | 2,353 | ||||||||||||||
Accrued expense | 1,152 | — | 21,358 | — | 22,510 | ||||||||||||||
Deferred income taxes | 108 | — | 1,330 | — | 1,438 | ||||||||||||||
Other current liabilities | — | — | 30 | — | 30 | ||||||||||||||
Total current liabilities | 88,114 | — | 33,883 | (82,764 | ) | 39,233 | |||||||||||||
Long-term debt, less current portion | 374,678 | — | 23 | — | 374,701 | ||||||||||||||
Other liabilities | 1,207 | — | 501 | — | 1,708 | ||||||||||||||
Deferred income taxes | 705 | — | 15,376 | — | 16,081 | ||||||||||||||
Total liabilities | 464,704 | — | 49,783 | (82,764 | ) | 431,723 | |||||||||||||
Common stock | 20 | — | — | — | 20 | ||||||||||||||
Other equity | 182,435 | — | 548,541 | (548,541 | ) | 182,435 | |||||||||||||
Total owners’ equity | 182,455 | — | 548,541 | (548,541 | ) | 182,455 | |||||||||||||
Total liabilities and owners’ equity | $ | 647,159 | $ | — | $ | 598,324 | $ | (631,305 | ) | $ | 614,178 |
F - 33 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Eliminating Entries | Total | |||||||||||||||
REVENUE | |||||||||||||||||||
Casino | $ | — | $ | — | $ | 295,046 | $ | — | $ | 295,046 | |||||||||
Food and beverage | — | — | 47,536 | — | 47,536 | ||||||||||||||
Lodging | — | — | 26,664 | — | 26,664 | ||||||||||||||
Fuel and retail | — | — | 58,471 | — | 58,471 | ||||||||||||||
Other | — | — | 13,412 | — | 13,412 | ||||||||||||||
Total revenue | — | — | 441,129 | — | 441,129 | ||||||||||||||
Promotional allowances | — | — | (47,829 | ) | — | (47,829 | ) | ||||||||||||
Net revenue | — | — | 393,300 | — | 393,300 | ||||||||||||||
EXPENSE | |||||||||||||||||||
Casino | — | — | 116,416 | — | 116,416 | ||||||||||||||
Food and beverage | — | — | 47,188 | — | 47,188 | ||||||||||||||
Lodging | — | — | 16,425 | — | 16,425 | ||||||||||||||
Fuel and retail | — | — | 43,285 | — | 43,285 | ||||||||||||||
Other | — | — | 7,147 | — | 7,147 | ||||||||||||||
General and administrative | — | — | 78,573 | — | 78,573 | ||||||||||||||
Depreciation and amortization | 1,199 | — | 27,829 | — | 29,028 | ||||||||||||||
Corporate | 19,887 | — | — | — | 19,887 | ||||||||||||||
Goodwill and other impairments | — | — | 20,229 | — | 20,229 | ||||||||||||||
Write downs, reserves and recoveries | 255 | — | 46 | — | 301 | ||||||||||||||
Total expense | 21,341 | — | 357,138 | — | 378,479 | ||||||||||||||
Operating income (loss) from continuing operations | (21,341 | ) | — | 36,162 | — | 14,821 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (30,652 | ) | — | — | — | (30,652 | ) | ||||||||||||
Intercompany interest income | 30,831 | — | — | (30,831 | ) | — | |||||||||||||
Intercompany interest expense | — | — | (30,831 | ) | 30,831 | — | |||||||||||||
Income from equity investments in subsidiaries | 3,412 | — | — | (3,412 | ) | — | |||||||||||||
Total other expense, net | 3,591 | — | (30,831 | ) | (3,412 | ) | (30,652 | ) | |||||||||||
Income (loss) from continuing operations before income tax | (17,750 | ) | — | 5,331 | (3,412 | ) | (15,831 | ) | |||||||||||
Benefit from (provision for) income taxes | 4,654 | — | (1,919 | ) | — | 2,735 | |||||||||||||
Net income (loss) | $ | (13,096 | ) | $ | — | $ | 3,412 | $ | (3,412 | ) | $ | (13,096 | ) |
F - 34 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Eliminating Entries | Total | |||||||||||||||
REVENUE | |||||||||||||||||||
Casino | $ | — | $ | — | $ | 294,998 | $ | — | $ | 294,998 | |||||||||
Food and beverage | — | — | 49,029 | — | 49,029 | ||||||||||||||
Lodging | — | — | 26,302 | — | 26,302 | ||||||||||||||
Fuel and retail | — | — | 58,893 | — | 58,893 | ||||||||||||||
Other | — | — | 14,482 | — | 14,482 | ||||||||||||||
Total revenue | — | — | 443,704 | — | 443,704 | ||||||||||||||
Promotional allowances | — | — | (57,802 | ) | — | (57,802 | ) | ||||||||||||
Net revenue | — | — | 385,902 | — | 385,902 | ||||||||||||||
EXPENSE | |||||||||||||||||||
Casino | — | — | 122,404 | — | 122,404 | ||||||||||||||
Food and beverage | — | — | 48,137 | — | 48,137 | ||||||||||||||
Lodging | — | — | 16,281 | — | 16,281 | ||||||||||||||
Fuel and retail | — | — | 46,825 | — | 46,825 | ||||||||||||||
Other | — | — | 7,921 | — | 7,921 | ||||||||||||||
General and administrative | — | — | 79,429 | — | 79,429 | ||||||||||||||
Depreciation and amortization | 1,223 | — | 27,356 | — | 28,579 | ||||||||||||||
Corporate | 14,814 | — | — | — | 14,814 | ||||||||||||||
Write downs, reserves and recoveries | 24 | (448 | ) | — | (424 | ) | |||||||||||||
Total expense | 16,061 | — | 347,905 | — | 363,966 | ||||||||||||||
Operating income (loss) from continuing operations | (16,061 | ) | — | 37,997 | — | 21,936 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (29,827 | ) | — | — | — | (29,827 | ) | ||||||||||||
Intercompany interest income | 29,996 | — | — | (29,996 | ) | — | |||||||||||||
Intercompany interest expense | — | — | (29,996 | ) | 29,996 | — | |||||||||||||
Loss on extinguishment (or modification) of debt | (240 | ) | — | — | — | (240 | ) | ||||||||||||
Income from equity investments in subsidiaries | 23,298 | — | — | (23,298 | ) | — | |||||||||||||
Total other income (expense), net | 23,227 | — | (29,996 | ) | (23,298 | ) | (30,067 | ) | |||||||||||
Income from continuing operations before income tax | 7,166 | — | 8,001 | (23,298 | ) | (8,131 | ) | ||||||||||||
Benefit from (provision for) income taxes | (30,843 | ) | — | 15,297 | — | (15,546 | ) | ||||||||||||
Net income (loss) | $ | (23,677 | ) | $ | — | $ | 23,298 | $ | (23,298 | ) | $ | (23,677 | ) |
F - 35 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Eliminating Entries | Total | |||||||||||||||
REVENUE | |||||||||||||||||||
Casino | $ | — | $ | — | $ | 299,216 | $ | — | $ | 299,216 | |||||||||
Food and beverage | — | — | 45,494 | — | 45,494 | ||||||||||||||
Lodging | — | — | 26,166 | — | 26,166 | ||||||||||||||
Fuel and retail | — | — | 59,011 | — | 59,011 | ||||||||||||||
Other | — | — | 13,775 | — | 13,775 | ||||||||||||||
Total revenue | — | — | 443,662 | — | 443,662 | ||||||||||||||
Promotional allowances | — | — | (53,888 | ) | — | (53,888 | ) | ||||||||||||
Net revenue | — | — | 389,774 | — | 389,774 | ||||||||||||||
EXPENSE | |||||||||||||||||||
Casino | — | — | 118,945 | — | 118,945 | ||||||||||||||
Food and beverage | — | — | 45,375 | — | 45,375 | ||||||||||||||
Lodging | — | — | 17,551 | — | 17,551 | ||||||||||||||
Fuel and retail | — | — | 49,094 | — | 49,094 | ||||||||||||||
Other | — | — | 7,704 | — | 7,704 | ||||||||||||||
General and administrative | — | — | 77,133 | — | 77,133 | ||||||||||||||
Depreciation and amortization | 999 | — | 26,810 | — | 27,809 | ||||||||||||||
Corporate | 12,233 | — | — | — | 12,233 | ||||||||||||||
Write downs, reserves and recoveries | (1,459 | ) | — | 6,225 | — | 4,766 | |||||||||||||
Loss on impairment of assets | — | — | 165 | — | 165 | ||||||||||||||
Total expense | 11,773 | — | 349,002 | — | 360,775 | ||||||||||||||
Operating income (loss) from continuing operations | (11,773 | ) | — | 40,772 | — | 28,999 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (30,589 | ) | — | — | 161 | (30,428 | ) | ||||||||||||
Intercompany interest income | 30,595 | — | — | (30,595 | ) | — | |||||||||||||
Intercompany interest expense | — | — | (30,595 | ) | 30,595 | — | |||||||||||||
Loss on extinguishment (or modification) of debt | (81 | ) | — | — | (81 | ) | |||||||||||||
Income from equity investments in subsidiaries | 6,604 | — | — | (6,604 | ) | — | |||||||||||||
Total other income (expense), net | 6,529 | — | (30,595 | ) | (6,443 | ) | (30,509 | ) | |||||||||||
Income from continuing operations before income tax | (5,244 | ) | — | 10,177 | (6,443 | ) | (1,510 | ) | |||||||||||
Benefit from (provision for) income taxes | 4,017 | — | (3,498 | ) | — | 519 | |||||||||||||
Income (loss) from continuing operations | $ | (1,227 | ) | $ | — | $ | 6,679 | $ | (6,443 | ) | $ | (991 | ) | ||||||
Discontinued operations | |||||||||||||||||||
Income (loss) from discontinued operations before income tax | — | — | (369 | ) | — | (369 | ) | ||||||||||||
Benefit from (provision for) income taxes | — | — | 133 | — | 133 | ||||||||||||||
Loss from discontinued operations | $ | — | $ | — | $ | (236 | ) | $ | — | $ | (236 | ) | |||||||
Net income (loss) | $ | (1,227 | ) | $ | — | $ | 6,443 | $ | (6,443 | ) | $ | (1,227 | ) |
F - 36 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Total | ||||||||||||
Net cash (used in) provided by operating activities | $ | (40,957 | ) | $ | — | $ | 80,943 | $ | 39,986 | ||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of property and equipment | 14 | — | 8 | 22 | |||||||||||
Purchases of property and equipment | (3,611 | ) | — | (13,692 | ) | (17,303 | ) | ||||||||
Net cash used in investing activities | $ | (3,597 | ) | $ | — | $ | (13,684 | ) | $ | (17,281 | ) | ||||
Cash flows from financing activities: | |||||||||||||||
Change in intercompany accounts | 62,272 | — | (62,272 | ) | — | ||||||||||
Payments on long-term debt | — | — | (30 | ) | (30 | ) | |||||||||
Repurchases of vested share-based awards | (71 | ) | — | — | (71 | ) | |||||||||
Net cash provided by (used in) financing activities | $ | 62,201 | $ | — | $ | (62,302 | ) | $ | (101 | ) | |||||
Net increase in cash and cash equivalents | 17,647 | — | 4,957 | 22,604 | |||||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of year | 88,737 | — | 46,438 | 135,175 | |||||||||||
End of period | $ | 106,384 | $ | — | $ | 51,395 | $ | 157,779 |
F - 37 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Total | ||||||||||||
Net cash (used in) provided by operating activities | $ | (74,174 | ) | $ | — | $ | 96,945 | $ | 22,771 | ||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of property and equipment | — | — | 365 | 365 | |||||||||||
Purchases of property and equipment | (973 | ) | — | (16,268 | ) | (17,241 | ) | ||||||||
Net cash provided by (used in) investing activities | $ | (973 | ) | $ | — | $ | (15,903 | ) | $ | (16,876 | ) | ||||
Cash flows from financing activities: | |||||||||||||||
Change in intercompany accounts | 76,949 | — | (76,949 | ) | — | ||||||||||
Payment on long-term debt | (8,501 | ) | — | (216 | ) | (8,717 | ) | ||||||||
Proceeds from long term debt | — | — | — | — | |||||||||||
Loan origination fees | (2,860 | ) | — | — | (2,860 | ) | |||||||||
Net cash provided by (used in) financing activities | $ | 65,588 | $ | — | $ | (77,165 | ) | $ | (11,577 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (9,559 | ) | — | 3,877 | (5,682 | ) | |||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of year | 98,296 | — | 42,561 | 140,857 | |||||||||||
End of period | $ | 88,737 | $ | — | $ | 46,438 | $ | 135,175 | |||||||
F - 38 |
Affinity Gaming (Co-Issuer) | AG Finance (Co-Issuer) | Guarantor Subsidiaries | Total | ||||||||||||
Net cash (used in) provided by operating activities | $ | (30,366 | ) | $ | — | $ | 67,153 | $ | 36,787 | ||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale to Truckee Gaming, LLC | 17,447 | — | — | 17,447 | |||||||||||
Proceeds from sale of property and equipment | 20 | — | 50 | 70 | |||||||||||
Purchases of property and equipment | (1,127 | ) | — | (30,593 | ) | (31,720 | ) | ||||||||
Net cash provided by (used in) investing activities | $ | 16,340 | $ | — | $ | (30,543 | ) | $ | (14,203 | ) | |||||
Cash flows from financing activities: | |||||||||||||||
Change in intercompany accounts | 31,683 | — | (31,683 | ) | — | ||||||||||
Payment on long-term debt | (11,568 | ) | — | (176 | ) | (11,744 | ) | ||||||||
Proceeds from long term debt | 4,314 | — | — | 4,314 | |||||||||||
Loan origination fees | (852 | ) | — | — | (852 | ) | |||||||||
Repurchases of vested share-based awards | (318 | ) | — | (318 | ) | ||||||||||
Net cash provided by (used in) financing activities | $ | 23,259 | $ | — | $ | (31,859 | ) | $ | (8,600 | ) | |||||
Net increase in cash and cash equivalents | 9,233 | — | 4,751 | 13,984 | |||||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of year | 89,063 | — | 37,810 | 126,873 | |||||||||||
End of period | $ | 98,296 | $ | — | $ | 42,561 | $ | 140,857 | |||||||
Cash flows from discontinued operations: | |||||||||||||||
Cash flows from operating activities | — | — | 36 | $ | 36 | ||||||||||
Cash flows from investing activities | — | — | $ | (4,695 | ) | (4,695 | ) | ||||||||
Cash flows from discontinued operations | $ | — | $ | — | $ | (4,659 | ) | $ | (4,659 | ) |
F - 39 |
F - 40 |
[****] | Multiple |
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[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | Three (3) |
[****] | Multiple |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | [****] |
[****] | Three (3) |
I. | Introduction |
A. | General Policy and Procedures |
B. | Corporate Compliance Officer |
II. | Responsibility to Our People |
A. | Respecting One Another |
B. | Employee Privacy |
C. | Equal Opportunity Employer |
D. | Sexual and Other Forms of Harassment |
III. | Compliance with Laws and Ethical Business Conduct |
IV. | Confidentiality of Information and Insider Trading |
A. | Confidentiality of Information |
B. | Insider Trading |
V. | Conflicts of Interest |
A. | General |
B. | Business or Investment Opportunities |
C. | Employee Interest in Companies Transaction Business with the Company |
D. | Outside Employment |
E. | Improper Personal Benefits from the Company |
F. | Business Arrangements with the Company |
G. | Family Members Working in the Industry |
VI. | Fair Dealing and Antitrust Laws |
A. | Fair Dealing |
B. | Antitrust Laws |
C. | Conspiracies and Collaborations Among Competitors |
D. | Distribution Issues |
E. | Penalties |
VII. | Receipt of Gifts, Loans, Favors, or Other Resources |
VIII. | Use of the Company Funds or Other Resources |
A. | Personal Use of the Company Funds or Other Resources |
B. | Payments and Gifts |
i. | Payments and Gifts to Governmental Officials |
ii. | Payments and Gifts to Others |
IX. | Political Contributions |
X. | Corporate Records |
A. | Record Keeping |
B. | Record Retention |
XI. | Approval of Expenses |
XII. | Media, Regulatory, Legal, and Other Inquiries |
A. | General |
B. | Conduct Regarding Media and Investor Inquiries |
C. | Requests From or Visits by Regulatory Authorities |
D. | Investigations |
E. | Subpoenas or Other Legal Process |
XIII. | Disciplinary Action and Violations of the Code |
XIV. | Procedural Matters, Reports, Inquiries, and Approvals |
XV. | Application/Waivers |
XVI. | Reports Regarding Accounting Matters |
XVII. | Investigations of Suspected Violations |
XVIII. | Discipline for Violations |
XIX. | No Rights Created |
XX. | Reminder |
I. | Introduction |
A. | General Policy and Procedures |
B. | Corporate Compliance Officer |
II. | Equal Opportunity Employer |
A. | Respecting One Another |
B. | Employee Privacy |
C. | Equal Opportunity Employer |
D. | Sexual and Other Forms of Harassment |
IV. | Confidentiality of Information and Insider Trading |
A. | Confidentiality of Information |
B. | Insider Trading |
V. | Conflicts of Interest |
A. | General |
B. | Business or Investment Opportunities |
C. | Employees Interest in Companies Transacting Business with the Company |
D. | Outside Employment |
E. | Improper Personal Benefits from the Company |
F. | Business Arrangements with the Company |
G. | Family Members Working In The Industry |
VI. | Fair Dealing and Antitrust Laws |
A. | Fair Dealing |
B. | Antitrust Laws |
C. | Conspiracies and Collaborations Among Competitors |
D. | Distribution Issues |
E. | Penalties |
VII. | Receipt of Gifts, Loans, Favors, or other Gratuities and Remuneration |
VIII. | Use of the Company Funds or Other Resources |
A. | Personal Use of the Company Funds or other Resources |
B. | Payments and Gifts |
IX. | Political Contributions |
X. | Corporate Records |
A. | Record Keeping |
B. | Record Retention |
XI. | Approval of Expenses |
XII. | Media, Regulatory, Legal and Other Inquiries |
A. | General |
B. | Conduct Regarding Media and Investor Inquiries |
C. | Requests From or Visits by Regulatory Authorities |
D. | Investigations |
E. | Subpoenas or Other Legal Process |
XIII. | Disciplinary Action and Violations of the Code |
XIV. | Procedural Matters, Reports, Inquiries, and Approvals |
XV. | Application/Waivers |
• | Mail a written description of the complaint or concern to the following address: |
• | OR - |
• | Call toll-free to 1-877-756-4303 |
• | OR - |
• | Visit the website address at www.reportlineweb.com/affinitygaming |
◦ | Click on the “BEGIN A NEW REPORT” button |
XVII. | Investigations of Suspected Violations |
XVIII. | Discipline for Violations |
XIX. | No Rights Created |
XX. | Reminder |
1. | I have reviewed this annual report on Form 10-K of Affinity Gaming; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Michael Silberling | |
Michael Silberling | ||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Affinity Gaming; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By | /s/ Walter Bogumil | |
Walter Bogumil | ||
Senior VP, Chief Financial Officer and Treasurer |
1. | the accompanying Annual Report on Form 10-K for the period ended December 31, 2015 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Affinity Gaming at the dates and for the periods indicated. |
/s/ Michael Silberling | |
Michael Silberling | |
Chief Executive Officer | |
/s/ Walter Bogumil | |
Walter Bogumil | |
Senior Vice President, Chief Financial Officer and Treasurer |
• | ensure that unsuitable individuals and organizations have no role in gaming operations; |
• | establish procedures designed to prevent cheating and fraudulent practices; |
• | establish and maintain responsible accounting practices and procedures |
• | maintain effective controls over their financial practices, including establishing minimum procedures for internal fiscal affairs and the safeguarding of assets and revenues; |
• | maintain systems for reliable record keeping; |
• | file periodic reports with gaming regulators; |
• | ensure that contracts and financial transactions are commercially reasonable, reflect fair market value and are arms-length transactions; and |
• | establish programs to promote responsible gaming. |
• | adopt rules and regulations under the implementing statutes; |
• | interpret and enforce gaming laws; |
• | investigate possible violations of the laws and prosecute person alleged to have violated the laws, impose disciplinary sanctions for violations, including fines and penalties; |
• | review the character and fitness of participants in gaming operations and make determinations regarding their suitability or qualification for licensure; |
• | grant licenses for participation in gaming operations; |
• | collect and review reports and information submitted by participants in gaming operations; |
• | review and approve transactions, such as acquisitions or change-of-control transactions of gaming industry participants, securities offerings and debt transactions engaged in by such participants; and |
• | establish and collect fees and taxes. |
• | The financial stability, integrity and responsibility of the applicant, including if the operation is adequately capitalized and insured in the jurisdiction; |
• | The sources of the applicant’s financing |
• | The character, record, and reputation of all persons materially associated with the applicant |
• | The quality of the applicant's casino facilities, and whether those facilities qualify for licensure; |
• | The amount of revenue to be derived by the applicable jurisdiction through operation of the applicant's gaming facility; |
• | The applicant's practices with respect to minority hiring and training; and |
• | The effect on competition and general impact on the community. |
• | pays that person any dividend or interest upon voting securities; |
• | allows that person to exercise, directly or indirectly, any voting right conferred through securities held by that person; |
• | pays remuneration in any form to that person for services rendered or otherwise; or |
• | fails to pursue all lawful efforts to require the unsuitable person to relinquish his voting securities including, if necessary, purchasing the voting securities for cash at fair market value. |
• | pay to the unsuitable person any dividend, interest, or any distribution whatsoever; |
• | recognize any voting right by the unsuitable person in connection with the debt securities; |
• | pay the unsuitable person remuneration in any form; or |
• | make any payment to the unsuitable person by way of principal, redemption, conversion, exchange, liquidation or similar transaction. |
• | a percentage of the gross revenue received; |
• | the number of gaming devices and/or table operated; |
• | one time fees payable upon the initial filing or an application, receipt of a license and/or renewal fees. |
Document and Entity Information Document - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Mar. 15, 2016 |
Jun. 30, 2015 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Affinity Gaming | ||
Entity Central Index Key | 0001499268 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 20,377,247 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
REVENUE | |||||||||||
Casino | $ 295,046 | $ 294,998 | $ 299,216 | ||||||||
Food and beverage | 47,536 | 49,029 | 45,494 | ||||||||
Lodging | 26,664 | 26,302 | 26,166 | ||||||||
Fuel and retail | 58,471 | 58,893 | 59,011 | ||||||||
Other | 13,412 | 14,482 | 13,775 | ||||||||
Total revenue | 441,129 | 443,704 | 443,662 | ||||||||
Promotional allowances | (47,829) | (57,802) | (53,888) | ||||||||
Net revenue | $ 92,861 | $ 101,950 | $ 101,511 | $ 96,978 | $ 92,233 | $ 99,231 | $ 98,916 | $ 95,522 | 393,300 | 385,902 | 389,774 |
EXPENSE | |||||||||||
Casino | 116,416 | 122,404 | 118,945 | ||||||||
Food and beverage | 47,188 | 48,137 | 45,375 | ||||||||
Lodging | 16,425 | 16,281 | 17,551 | ||||||||
Fuel and retail | 43,285 | 46,825 | 49,094 | ||||||||
Other | 7,147 | 7,921 | 7,704 | ||||||||
General and administrative | 78,573 | 79,429 | 77,133 | ||||||||
Depreciation and amortization | 29,028 | 28,579 | 27,809 | ||||||||
Corporate | 19,887 | 14,814 | 12,233 | ||||||||
Goodwill and other impairments | 20,229 | 0 | 165 | ||||||||
Write downs, reserves and recoveries | 301 | (424) | 4,766 | ||||||||
Total expense | 378,479 | 363,966 | 360,775 | ||||||||
Operating income from continuing operations | (15,073) | 9,047 | 10,085 | 10,762 | 3,937 | 5,210 | 5,943 | 6,846 | 14,821 | 21,936 | 28,999 |
Other expense | |||||||||||
Interest expense, net | (30,652) | (29,827) | (30,428) | ||||||||
Loss on extinguishment (or modification) of debt | 0 | (240) | (81) | ||||||||
Total other expense, net | (30,652) | (30,067) | (30,509) | ||||||||
Loss from continuing operations before income tax | (15,831) | (8,131) | (1,510) | ||||||||
Benefit from (provision for) income taxes | 2,735 | (15,546) | 519 | ||||||||
Loss from continuing operations | $ (15,649) | $ 1,996 | $ 797 | $ (240) | $ (5,672) | $ (3,685) | $ (14,367) | $ 47 | (13,096) | (23,677) | (991) |
Discontinued operations (Note 16): | |||||||||||
Loss from discontinued operations before income tax | 0 | 0 | (369) | ||||||||
Benefit from income taxes | 0 | 0 | 133 | ||||||||
Loss from discontinued operations | 0 | 0 | (236) | ||||||||
Net income (loss) | $ (13,096) | $ (23,677) | $ (1,227) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable reserve | $ 147 | $ 159 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 20,377,247 | 20,300,464 |
Common stock, shares outstanding (shares) | 20,377,247 | 20,300,464 |
Organization, Consolidation and Presentation of Financial Statements |
12 Months Ended |
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Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements | NOTE 1. ORGANIZATION, CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS Organization and Business Affinity Gaming (together with its subsidiaries, “Affinity” or “we”) is a Nevada corporation, headquartered in Las Vegas, which owns and operates 11 casinos, five of which are located in Nevada, three in Colorado, two in Missouri and one in Iowa. We also provided consulting services to Hotspur Casinos Nevada, Inc. (“Hotspur”), the operator of the Rampart Casino at the JW Marriott Resort in Las Vegas until the expiration of the related consulting agreement on April 1, 2015 (the “Rampart Casino Consulting Agreement”). Hotspur previously paid us a fixed annual fee in monthly installments. On February 1, 2013, we completed the sale to Truckee Gaming, LLC (“Truckee Gaming”) of the Sands Regency Casino Hotel in Reno, Nevada, the Gold Ranch Casino & RV Resort in Verdi, Nevada, and the Dayton Depot Casino in Dayton, Nevada (“Truckee Disposition”). The results of operations of each of the properties sold are classified as discontinued operations for the years presented. Results of operations for the properties sold were previously reported in the Nevada segment results. In December 2013, we closed our casino property in Henderson, Nevada. The financial position and results of operations of the Henderson casino are not material, during any period presented, either to our consolidated financial position and results of operations or to the financial position and results of operations of our Nevada segment. As a result, we have neither reported any assets held for sale nor any discontinued operations related to the closure. We have recorded the loss on Henderson’s impaired asset in the line item Loss on impairment of assets, while we reflected all other expense related to the closure in the line item Write downs, reserves and recoveries. Consolidation We include all of our subsidiaries in our consolidated financial statements, eliminating all significant intercompany balances and transactions during consolidation. Basis of Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). While preparing our financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenue and expense during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include the fair values of assets and liabilities related to depreciation and amortization, the estimated allowance for doubtful accounts receivable and the estimated cash flows we use in assessing the recoverability of long-lived assets, as well as the estimated fair values of certain assets related to write downs and impairments, contingencies and litigation, and claims and assessments. The term “Predecessor”, as used throughout these financial statements and related disclosures, refers to Herbst Gaming, Inc and its subsidiaries, from whose consolidated bankruptcy proceedings we emerged as successor effective December 30, 2010. |
Summary of Significant Accounting Policies |
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Summary of Significant Accounting Policies | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Our cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. The carrying value of the deposits and instruments approximates their fair value due to their short-term maturities. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of our financial instruments, we prioritize those fair value measurements into one of three levels based on the nature of the inputs, as follows:
The fair value hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not be available. Accounts Receivable We periodically perform credit evaluations of our customers to minimize the risk of credit losses. To determine an allowance for potential credit losses related to our accounts receivable, we review accounts receivable balances based on our collections experience and the age of the receivables. Inventory We record our inventory, which includes food, beverage, retail items and gasoline, at the lower of cost or market value. We determine cost using the first-in, first-out method. Property and Equipment We state property and equipment at cost and depreciate such assets using the straight-line method over the estimated useful lives of each assets category. For leasehold improvements, we determine amortization using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Debt Issuance Costs We capitalize all direct, incremental costs we pay to parties other than the creditor(s) in connection with the issuance of long-term debt and amortize such costs to interest expense using the effective interest method over the terms of the related debt agreements. Any amounts we pay to the creditor(s) are recorded as a component of the premium or discount associated with the debt. With regard to transactions for which we apply modification accounting, we capitalize any new amounts paid to the creditor(s) whose debt is modified, adding it to the unamortized debt issuance cost balance of such creditor(s), and we amortize such costs to interest expense using the effective interest method over the terms of the new debt agreement(s). We expense any costs we incur with third parties. With regard to transactions for which we apply extinguishment accounting, we include the unamortized debt issuance cost related to the extinguished creditor(s) plus any new amounts paid to the extinguished creditor(s) as a component of the gain or loss on the transaction. We associate any costs we incur with third parties with the new debt, and amortize such costs to interest expense using the effective interest method over the terms of the new debt agreement(s). Self-Insurance Reserves We are self-insured up to certain stop loss amounts for costs associated with general liability claims and workers’ compensation claims arising from our operations in Nevada and Colorado. To estimate our accruals related to claims reserves, we consider historical loss experience and make judgments about the expected levels of costs per claim. We believe our estimates of future liability are reasonable based upon our methodology; however, changes in health care costs, accident frequency and severity, and other factors could materially affect the estimate for these liabilities. We include self-insurance reserves in Accrued expense on our consolidated balance sheets in the amounts of $1.5 million and $1.1 million at December 31, 2015 and 2014, respectively. Long-Lived Assets When events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we evaluate long-lived assets for potential impairment, basing our testing method upon whether the assets are held for sale or held for use. For assets classified as held for sale, we recognize the asset at the lower of carrying value or fair market value less costs of disposal, as estimated based on comparable asset sales, offers received, or a discounted cash flow model. For assets held and used, we estimate the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying value of the asset, we recognize an impairment loss for the difference between the carrying value of the asset and its fair value. During 2013, we recognized an immaterial loss on impairment of a fixed asset related to the closure of the Henderson casino. Goodwill and Intangible Assets As of October 31 of each year, we test goodwill and other indefinite-lived intangible assets for impairment. We also conduct tests between our annual tests if events occur or circumstances change which would, more likely than not, indicate a reduction in the fair values of the indefinite-lived intangible assets below their carrying values. When testing for impairment, we may choose to evaluate qualitative factors first to determine whether events and circumstances indicate that, more likely than not, an indefinite-lived intangible asset is impaired. If, after evaluating the totality of events and circumstances and their potential effect on significant inputs to the fair value determination, we determine that, more likely than not, an indefinite-lived intangible asset is impaired, we then quantitatively test for impairment. Indefinite-lived intangible assets consist primarily of license rights, which we test for impairment using a discounted cash flow approach, and trademarks, which we test for impairment using the relief-from-royalty method. Goodwill represents the excess of purchase price over fair market value of net assets acquired in business combinations. We test goodwill for relevant reporting units for impairment using a discounted cash flow analysis based on our budgeted future results which are discounted using a weighted average cost of capital. The weighted average cost of capital is developed using a standard capital asset pricing model, based on guideline companies in our industry and market indicators of terminal year capitalization rates. We make several estimates when evaluating indefinite-lived intangible assets for impairment. In particular, future cash flow estimates are, by their nature, subjective and actual results may differ materially from our estimates. In addition, the determination of capitalization rates and the discount rates used in the impairment tests are highly judgmental and dependent in large part on expectations of future market conditions. During 2015, we recorded an impairment charge of $20.2 million due to the Company’s revised estimate of future cash flows in its Colorado segment. During our regular annual testing in 2014, the estimated fair values of our reporting units with associated goodwill exceeded their carrying values for all our reporting units, so we did not record impairment charges. Revenue and Promotional Allowances We recognize casino revenue equal to the amounts wagered by patrons less the amounts we pay to winning patrons. Additionally, we recognize lodging revenue at the time guests occupy hotel rooms, and all other revenue at the time we provide the goods or services to the patron. We present revenue from retail sales net of sales tax. Total revenue from casino operations includes the retail value of food, beverage, goods and services we provide to customers on a complimentary basis; such complimentary amounts are then deducted as promotional allowances in calculating net revenue. Promotional allowances also include certain incentives earned in our guest rewards programs. The retail value of complimentary food, beverage, goods and services included in promotional allowances consists of the following (in thousands):
The estimated departmental cost of providing these promotional allowances is as follows (in thousands):
Guest Rewards Programs Our guest rewards programs allow guests to earn certain point-based cash rewards or complimentary goods and services based on the volume of the guests' gaming activity. Guests can accumulate reward points over time which they may redeem at their discretion under the terms of the programs. If a guest does not earn any reward credits over the subsequent 12- to 18-month period, depending upon the casino, that guest forfeits their reward credit balance. Because guests can accrue the reward points, we expense those reward points, after giving effect to estimated forfeitures, as the guests earn them. We base our accruals on historical data, estimates and assumptions regarding the mix of rewards that guests will redeem and the costs of providing those rewards. We record the retail value of the point-based rewards or complimentary goods and services as promotional allowance. We record the cost of free slot play and cash rewards as a reduction of revenue. Cash, Hotel and Food Coupons On a discretionary basis, we may award cash, lodging and food coupons to our gaming patrons, based in part on their play volume, to induce future play. The coupons are redeemable within a short time period (generally seven days for cash coupons and one month for lodging and food coupons), and guests cannot renew or extend the offer. We record the retail value of the good or service underlying the coupons as promotional allowance when guests redeem these coupons. The cash coupons are recorded as a reduction of casino revenue. Share-Based Compensation We grant share-based awards to employees and non-employees in exchange for services; we have neither made share-based payments in exchange for goods nor do we currently have plans to do so. For share-based payments to employees and non-employees, we recognize compensation expense over the vesting period during which the employee or non-employee provides services in exchange for the award and, in the case of share-based payments to non-employees, we recognize a prepaid asset representing the portion of total estimated compensation expense for which the non-employee has not yet provided services. To measure compensation expense related to stock options awarded, we use information available as of the reporting date to estimate the fair value of awards. We estimate the fair value of stock options using the Black-Scholes-Merton option pricing model, which requires estimates for expected volatility, expected dividends, the risk-free interest rate and the expected term of the share-based award. To measure compensation expense related to restricted stock shares awarded to employees, we use an estimate of the fair market value of our common stock on the grant date, while we use an estimate of the fair market value of our common stock on the reporting date for awards granted to non-employees. We include an estimate of the number of awards which we expect will be forfeited, and we update that number based on actual forfeitures. During the fourth quarter of 2013, we changed our accounting for stock options from classifying them as equity instruments to classifying them as liabilities. See Note 10 for more information. Income Taxes We recognize deferred tax assets and liabilities, which result from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. Any effect on deferred tax assets or liabilities resulting from a change in enacted tax rates is included in income during the period that includes the enactment date. We reduce the carrying amounts of deferred tax assets by a valuation allowance if we determine that, more likely than not, we will be unable to realize such assets. Such assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, our forecasts of future profitability, the duration of statutory carryforward periods, and our experience with the utilization of operating loss and tax credit carryforwards before expiration. Concentrations of Credit Risk We maintain cash balances at certain financial institutions located in the states in which we operate. The balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At times, cash balances may be in excess of FDIC limits. As of December 31, 2015, we do not believe we have any significant concentrations of credit risk. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases, that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. Lessees and lessors are required to apply a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, and early application is permitted. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, debt issuance costs will be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. In August 2015, the FASB issued an accounting standards update which clarifies that the guidance issued in ASU 2015-03 does not apply to line-of-credit arrangements. According to the additional guidance, line-of-credit arrangements will continue to present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the arrangement. ASU 2015-03 is effective for the annual and interim periods beginning after December 15, 2015. Early application is permitted. This ASU will not have a material effect on our financial condition, results of operations, cash flows or the reporting thereof. In August 2014, the FASB modified the Accounting Standards Codification by issuing ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The amendments in ASU 2014-15 place responsibility on management to determine whether substantial doubt exists regarding the entity’s ability to continue as a going concern. The amendments state that for each annual and interim reporting period, management should evaluate whether conditions or events, considered in the aggregate, raise doubt about the entity’s ability to continue as a going concern for one year after the financial statements are issued. If management determines that substantial doubt exists regarding the entity’s ability to continue as a going concern, the amendments require disclosure of the conditions or events that led to such determination, management’s evaluation of the significance of such conditions or events, and management’s plans to mitigate such conditions or events, including whether the plans alleviated substantial doubt. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The amendments in ASU 2014-15 will not have a material effect on our financial condition, results of operations, cash flows or the reporting thereof. In May 2014, the FASB modified the Accounting Standards Codification by issuing ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2014-09 stipulate that an entity should recognize revenue in an amount which reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers, and they provide a five-step process to assist entities with achieving that core principle. The ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. With regard to disclosures, ASU 2014-09 states that entities should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, and it requires qualitative and quantitative disclosures concerning contracts with customers, significant judgments and changes therein, and assets recognized from the costs incurred to obtain or fulfill a contract. The amendments in ASU 2014-09 have been deferred for one year and are effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and they permit either retrospective application to all prior periods or retrospective application with the cumulative effect of application recognized on the initial application date. Early adoption is permitted for annual and interim periods beginning after December 31, 2016. We are currently evaluating what effect(s) the ASU will have. We have reviewed all other recently issued accounting pronouncements and, other than those we have disclosed above or in previous filings with the SEC, we do not believe any of such pronouncements will have a material effect on our operations. Correction of Immaterial Error and Reclassifications During the third quarter of 2015, the Company identified that immaterial amounts of promotional items provided to its patrons including cash back awards to casino customers were improperly recorded as either casino expenses, general and administrative expenses or promotional allowances rather than being recorded as an offset to casino revenue. In accordance with ASC Topic 605-50, Revenue Recognition, cash incentives should be recorded as an offset to revenues. The following table compares previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles (in thousands):
There was no impact on previously reported operating income, net income (loss) or cash flows of the Company. The Company has evaluated the change in presentation on prior period financial statements taking into account the requirements of the Securities and Exchange Commission Staff Accounting Bulletin (“SAB”) No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. In accordance with the relevant guidance, we evaluated the materiality of the error from a qualitative and quantitative perspective and concluded that correcting the error did not have a material impact on any individual prior period financial statement or affect the trend of financial results. As provided by SAB No. 108, the portion of the immaterial error and reclassification that impacts previously reported net revenues and operating expenses in the annual and quarterly periods for the years ended December 31, 2014 and 2013 will not require the previously filed annual reports on Form 10-K or quarterly reports on Form 10-Q to be amended and the correction is permitted to be made the next time we file our prior period financial statements. |
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Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 3. RESTRICTED CASH Restricted cash balances at December 31, 2015 and 2014 include cash or certificates of deposit required for gaming activity in certain jurisdictions in which we operate, and for self-insured retention obligations under some of our workers compensation insurance policies. |
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Property and Equipment | NOTE 4. PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands, except estimated lives):
We recorded depreciation expense on the above assets totaling $26.5 million, $26.1 million, and $24.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill and Other Intangible Assets | NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS We determine the fair value of the indefinite-lived intangible assets other than goodwill using the discounted cash flow method, a form of the income approach. In determining the fair values, we make significant assumptions relating to variables based on past experiences and judgments about future performance. These variables include, but are not limited to: (1) the forecast earnings growth rate of each market, (2) risk-adjusted discount rate and (3) expected growth rates in perpetuity to estimated terminal values. The following table summarizes intangible assets by category (in thousands):
The following table summarizes the changes in goodwill by reportable segment during the year ended December 31, 2015:
In connection with our annual impairment testing of goodwill and other indefinite-lived assets for impairment, we determined that the carrying value of our Black Hawk reporting unit exceeded its fair value. Accordingly, we recognized a $20.2 million non-cash impairment of goodwill primarily due to reduced cash flow projections at our Black Hawk reporting unit. The fair value of our Black Hawk reporting unit was estimated using both income and market approaches, which include Level 3 inputs under the fair value hierarchy. We amortize definite-lived intangible assets ratably over their expected lives which, for customer loyalty programs, approximate seven years and, for trademarks, approximate 3.75 years. Overall, we are amortizing definite-lived intangible assets over a weighted-average expected life of approximately 6.5 years. We obtain gaming license rights when we acquire gaming entities that operate in gaming jurisdictions where competition is limited, such as states where the law only allows a certain number of operators. We do not currently amortize gaming license rights and local tradenames because we have determined they have an indefinite useful life. We recorded total amortization expense for continuing operations of $2.5 million, $2.5 million and $2.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. The following table presents the future amortization expense related to definite-lived intangible assets (in thousands):
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Other Assets | NOTE 6. OTHER ASSETS Other assets consist of the following (in thousands):
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Accrued Expense |
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Accrued Expense | NOTE 7. ACCRUED EXPENSE Accrued expense consists of the following (in thousands):
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | NOTE 8. LONG-TERM DEBT The following table presents long-term debt balances (in thousands):
The current maturities of long-term debt at December 31, 2015, includes estimated mandatory excess cash flow payments on the Initial Term Loan. On May 9, 2012, we repaid all of the $342.1 million debt then outstanding under the senior secured loans under our credit agreement dated December 31, 2010 (the “Old Credit Facility”). We obtained the funds used to repay the Old Credit Facility by (i) issuing $200.0 million of 9.00% senior unsecured notes due 2018 (the “2018 Notes”), and (ii) borrowing under our new Credit Agreement, dated May 9, 2012, which provides for a $200.0 million term loan (the “Initial Term Loan”) due in 2017, the entirety of which the lenders disbursed to us on the closing date of the Credit Agreement, and a $35.0 million revolving credit facility (the “Revolving Credit Facility” and, together with the Initial Term Loan, the “New Credit Facility”) which remained undrawn on the closing date of the new Credit Agreement. Approximately $38.6 million of cash from the issuance of the 2018 Notes and our borrowings under the New Credit Facility remained after we paid related transaction expense and repaid our Old Credit Facility. On December 13, 2013, we completed the first amendment to the Credit Agreement. The first amendment made several changes to the Credit Agreement, including changes to interest rates. With our completion of the second amendment, described bellow, the first amendment’s changes regarding interest rates were largely superseded. On July 22, 2014, we completed the second amendment to the Credit Agreement (the “Second Amended Credit Agreement”) governing our New Credit Facility. We incur and pay interest on the Initial Term Loan under the Second Amended Credit Agreement at an uncommitted floating rate of LIBOR plus 4.00%, subject to a LIBOR floor of 1.25%. The Second Amended Credit Agreement also requires us to pay commitment fees related to the Revolving Credit Facility equal to an annualized rate of 0.50% on undrawn amounts when the Total Net Leverage Ratio is greater than 3.50 to 1.00, or equal to an annualized rate of 0.375% on undrawn amounts when the Total Net Leverage Ratio is less than or equal to 3.50 to 1.00. The New Credit Facility provides an accordion feature which allows us to seek additional borrowings of up to $80.0 million subject to certain customary terms and conditions, including pro forma compliance with a maximum leverage ratio, as defined in the Second Amended Credit Agreement. During the years ended December 31, 2014 and 2013, we recorded losses on modification of debt of $0.2 million and $0.1 million, respectively. In the table above, unamortized debt issuance cost represents payments made to entities which purchased our debt. Unamortized debt issuance cost, which we are amortizing over the life of the 2018 Notes and the Initial Term Loan, totaled $6.3 million and $9.0 million at December 31, 2015 and 2014, respectively, inclusive of both the amount we report in Other assets and the amount we report as an offset to the related debt. The amounts of unamortized debt issuance cost at December 31, 2015 and 2014, were net of accumulated amortization totaling $7.7 million and $5.0 million, respectively. Under the Second Amended Credit Agreement, we must make a mandatory repayment of amounts outstanding under the Initial Term Loan in an amount equal to the net cash proceeds from any asset sale within five business days after receipt of such proceeds. However, we do not have to make such mandatory prepayment if (i) no event of default or specified default (each as defined in the Second Amended Credit Agreement) then exists and (ii) such net cash proceeds are used to purchase assets (other than working capital) used or useful in the business (x) within 548 days following receipt of the net cash proceeds or (y) if a legally binding commitment to purchase assets is entered into within such 548 day period, within 180 days after the end of such 548 day period. In the case of non-core asset sales (as defined in the Second Amended Credit Agreement), any resulting net cash proceeds must be deposited into an account subject to an account control agreement. Under the Second Amended Credit Agreement, a change of control would occur in certain circumstances, including (i) when any person or group acquires 50% or more on a fully diluted basis of our voting equity interests, other than any person or group who, together with their respective affiliates, beneficially owned or controlled as of July 22, 2014 at least 20% or more on a fully diluted basis or our voting equity interest, or (ii) when there is a change in the majority of continuing directors, but excluding (x) the entry into or performance of the Settlement Agreement (as described in our Current Report on Form 8-K, filed on July 28, 2014), or (y) the formation of a “group” among all or some of the parties to the Settlement Agreement or their affiliates in connection with the performance of the Settlement Agreement or any other agreement in existence on July 14, 2014. A continuing director, as defined in the Second Amended Credit Agreement, is a director on the date of borrowing, a director nominated by a majority of directors which existed on the date of borrowing, and any directors appointed in accordance with the Settlement Agreement or by any Stockholder (as defined in the Settlement Agreement) party to the Settlement Agreement. A change of control would constitute an event of default under the Second Amended Credit Agreement and permit the acceleration by the lenders of all outstanding borrowings thereunder. The Second Amended Credit Agreement contains customary covenants including, but not limited to, a maximum total net leverage ratio, a maximum secured leverage ratio, a minimum interest coverage ratio and maximum total annual capital expenditures. Additionally, the Initial Term Loan is subject to mandatory annual prepayments based on generation of excess cash flow (as defined), equal to 50% of excess cash flow when the Total Net Leverage Ratio is greater than 4.00 to 1.00, equal to 25% of excess cash flow when the Total Net Leverage Ratio is greater than 3.00 to 1.00, but less than or equal to 4.00 to 1.00, and equal to zero when the Total Net Leverage Ratio is less than or equal to 3.00 to 1.00. At December 31, 2015, the First Lien Senior Secured Net Leverage Ratio was 2.07 to 1.00, and the Interest Expense Coverage Ratio was 2.46 to 1.00. As of December 31, 2015, we remained in compliance with all debt covenants. We issued the 2018 Notes pursuant to an indenture dated May 9, 2012 (“2018 Notes Indenture”). Under the 2018 Notes Indenture, the Issuers are entitled to redeem all or a portion of the 2018 Notes upon providing not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on May 15 of the years set forth in the table below.
All of our current and future domestic subsidiaries that guarantee the New Credit Facility also fully and unconditionally guarantee the Issuers' payment obligations under the 2018 Notes on a senior unsecured basis. The terms of the 2018 Notes Indenture, among other things, limit our ability to incur additional debt, issue preferred stock, pay dividends or make other restricted payments, make certain investments, create liens, allow restrictions on the ability of restricted subsidiaries to pay dividends or make other payments, sell assets, merge or consolidate with other entities, and enter into transactions with affiliates. If we experience certain kinds of changes in control, the Issuers must make an offer to purchase the 2018 Notes at a price equal to 101% of the aggregate principal amount of the 2018 Notes plus accrued and unpaid interest, if any, to but excluding the date of repurchase. A change of control, as defined in the 2018 Notes Indenture (as amended on July 24, 2014), occurs when we become aware of (i) any person or group becoming the beneficial owner of more than 50% of the total voting power of our voting stock, or (ii) the sale or other disposition of all or substantially all of our assets, but excluding (i) the entry into or performance of the Settlement Agreement or (ii) the formation of a group among all or some of the parties to the Settlement Agreement or their affiliates in connection with the performance of the Settlement Agreement or any other agreement in existence as of July 24, 2014. In addition, the Issuers, under certain circumstances, must make an offer to repurchase the 2018 Notes with the proceeds of certain asset sales that they do not use to purchase new assets or otherwise apply in accordance with the terms of the 2018 Notes Indenture. The 2018 Notes Indenture further provides that if any gaming authority requires a holder of the 2018 Notes to be licensed, qualified or found suitable under any applicable gaming law and such holder fails to apply for, or is denied, such license, qualification or not found suitable, the Issuers have the right, at their option, to (i) require such holder to dispose of its 2018 Notes or (ii) redeem such 2018 Notes at the applicable redemption price specified in the 2018 Notes Indenture. The Issuers will not be required to pay or reimburse any holder of the 2018 Notes who is required to apply for such license, qualification or finding of suitability. We based the estimated fair value of the 2018 Notes and the New Credit Facility on Level 2 inputs using quoted prices in inactive markets and observable market data for similar, but not identical, instruments. The following table presents the carrying values and estimated fair values of our long-term debt at December 31, 2015 (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 9. INCOME TAXES Deferred Tax Assets and Liabilities We record deferred tax assets and liabilities to account for the effects of temporary differences between the tax basis of an asset or liability and its amount as reported in our consolidated balance sheets. The temporary differences result in taxable or deductible amounts in future years. Deferred tax assets and liabilities presented on the consolidated balance sheets are as follows (in thousands):
The following table details the components of our deferred tax assets and liabilities (in thousands):
We have assessed the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2015. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, as of December 31, 2015, a valuation allowance of $21.1 million has been recorded to reflect only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. At December 31, 2015, we had a gross federal net operating loss carryforward of approximately $35.7 million. In addition, we have deferred tax assets of approximately $0.3 million related to Alternative Minimum Tax credits and $1.0 million related to general business credits. The net operating losses and general business credits can be carried forward and applied to offset taxable income for 20 years; they will begin to expire in 2031. We can carry forward the Alternative Minimum Tax credit and apply it to offset regular tax liabilities indefinitely; it will not expire. On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations required a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment. To account for the adoption of these regulations, for the year ended December 31, 2014, long-term deferred tax liabilities increased by $1.8 million, with the offsetting increase to noncurrent deferred income tax assets. Before these regulations were issued, this $1.8 million would have been recovered over 39 years through tax depreciation deductions. We have analyzed our filing positions in each jurisdiction where we are required to file income tax returns. We believe our income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change to our financial position. We recognize accrued interest and penalties related to uncertain tax benefits as a component of income tax expense. We filed income tax returns in the United States federal jurisdiction and in several state jurisdictions. A federal tax examination for 2011 and 2012 was closed during the year ended December 31, 2014. The final examination determination resulted in no material changes to our financial position and deferred tax assets and liabilities. Provision for Income Taxes The following table presents the components of our income tax provision attributable to pre-tax income from continuing operations, as well as the income tax benefit attributable to pre-tax income from discontinued operations (in thousands):
The following table presents a reconciliation between the federal statutory rate and the effective income tax rate, expressed as a percentage of pre-tax income:
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Share-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | NOTE 10. SHARE-BASED COMPENSATION We designed our share-based compensation arrangements to advance our long-term interests; for example, by allowing us to attract employees and directors, to retain them and by aligning their interests with those of our stockholders. The amount, frequency, and terms of share-based awards may vary based on competitive practices, our operating results, government regulations and availability under our equity incentive plans. Depending upon the form of the share-based award, new shares of our common stock may be issued upon grant, option exercise or vesting of the award. The Affinity Gaming Amended and Restated 2011 Long-Term Incentive Plan (“LTIP”), which the Compensation Committee of our Board of Directors approved, allows us to issue up to 2,000,000 shares of common stock, subject to stock options, or as restricted stock, to employees, officers, directors and consultants. Awards vest upon the passage of time, the attainment of performance criteria, or both. Stock options awarded under the LTIP expire five years from the grant date. Awards granted to management generally vest ratably over three years from the date of the grant, and those granted to directors generally vest in two equal tranches, the first upon issuance and the second during January of the calendar year following the year of grant. Holders of restricted stock may vote their shares and receive their proportionate share of any dividends. Restricted stock remains subject to the terms and conditions contained in the applicable award agreement and our LTIP until the recipient vests in the award. As of December 31, 2015, awards representing 1,292,148 shares or potential shares of our common stock remained available for issuance under the LTIP. The following table summarizes the activity related to our outstanding and non-vested stock options and restricted stock for the period ended December 31, 2015:
At December 31, 2015, our outstanding stock options had an aggregate intrinsic value of $0.5 million, and had a weighted-average remaining contractual term of 3.6 years. The weighted-average grant-date fair value of options granted during the years ended December 31, 2015 and 2014 were $2.56 and $4.66, respectively. No option grants were awarded in 2013 as the Company chose to grant restricted stock instead. We account for stock option awards as liabilities. As of December 31, 2015, we have reported a $1.2 million share-based compensation liability in the Other liabilities line item. The following table lists certain information related to stock options awarded under the LTIP which had vested as of December 31, 2015:
We estimate the fair value of stock option awards at each reporting date using a Black-Scholes-Merton option-pricing model. For the years ended December 31, 2015 and 2014, we applied the following weighted-average assumptions:
We determined the expected option term using the contractual term. Because we are closely held and, therefore, do not have equity listed on a public exchange, we based expected volatility on the historical volatility associated with an average of the stocks of our peer group, which we determined to be publicly-traded, U.S.-based regional casino operators. The risk-free interest rate is based on U.S. Treasury rates appropriate for the expected term. Actual compensation, if any, ultimately realized may differ significantly from the amount estimated using an option-pricing model. Since inception of the LTIP, no stock options have been exercised. The following tables present certain information related to compensation cost:
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Write Downs, Reserves and Recoveries |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write Downs, Reserves and Recoveries | NOTE 11. WRITE DOWNS, RESERVES AND RECOVERIES Our operating results include various pretax charges to record contingent liability reserves, recoveries of previously recorded reserves and other non-routine transactions. The following table presents the components of write downs, reserves and recoveries for continuing operations (in thousands):
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Related Party Transactions |
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Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 12. RELATED PARTY TRANSACTIONS We entered into a nonexclusive trademark license agreement with Terrible Herbst, Inc. for the use of the Terrible Herbst brand name and its cowboy logo which extended through June 2013. Pursuant to this trademark license agreement, we incurred expense totaling approximately $0.3 million to Terrible Herbst for the year ended December 31, 2013. Effective September 2014, we entered into an agreement with David D. Ross, our former Chief Executive Officer, whereby Mr. Ross provided consulting services to Affinity to assist us in fulfilling obligations under the Rampart Casino consulting agreement. We paid Mr. Ross $20,000 monthly for his consulting services until the expiration of the related consulting agreement on April 1, 2015. Beginning February 1, 2013, we paid Ferenc Szony, our former Chief Operating Officer, a $12,500 monthly fee for consulting services to assist Affinity in fulfilling its obligations under the Rampart Casino consulting agreement until the expiration of that consulting agreement on April 1, 2015. In September 2012, we entered into an agreement to divest non-core assets in the Truckee Disposition. Our former Chief Operating Officer, Ferenc Szony, became a managing principal of the acquirer, Truckee Gaming, LLC. One of our directors at the time we entered into the agreement, Thomas M. Benninger, serves as a managing general partner of Global Leveraged Capital, LLC (“GLC”), a private investment and advisory firm. In connection with the Truckee Disposition, funds managed by affiliates of GLC provided mezzanine financing for Truckee Gaming and acquired warrants, which can be exercised under certain conditions, to obtain equity interests of Truckee Gaming. The Truckee Disposition closed on February 1, 2013. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | NOTE 13. COMMITMENTS AND CONTINGENCIES Data Security Event In October 2013, Affinity was contacted by law enforcement regarding fraudulent credit and debit card charges which may have been linked to a data security breach in Affinity’s information technology system. We immediately initiated a thorough investigation, supported by an independent professional forensic investigative firm, to determine the nature and scope of the compromise. In December 2013, we issued a press release advising that our payment processing system had become infected by malware, which resulted in a compromise of credit card and debit card information belonging to individuals who used their cards at restaurants, hotels and gift shops at our facilities between March 14 and October 16, 2013. As of November 14, 2013, our forensics expert advised us that our credit card processing systems were free of functioning malware. We encouraged our patrons to protect against possible identity theft or other financial loss by reviewing account statements for potential fraudulent activity during the period of exposure. In April 2014, we again learned that an unauthorized intrusion and installation of malware compromising the credit card processing environment had occurred. We then hired a different professional forensics investigation firm to conduct a thorough investigation of the more recently discovered event, and the security of our information technology environment as it related to both incidents. As a result of the second investigation, we have reason to believe that credit card and debit card information from individuals who used their cards at restaurants, hotels and gift shops at our properties between December 7, 2013 and April 28, 2014, also may have been compromised. In May 2014, we issued another press release and encouraged our patrons to protect against possible identity theft or other financial loss by reviewing account statements for potential fraudulent activity during the period of exposure. Affinity carries insurance coverage of $5.0 million for liability resulting from network security events. As of December 31, 2015, we have incurred $1.2 million in expense, including deductibles, arising out of the two security breach events. We do not expect to incur additional material expenses that are not covered by insurance. However, we cannot estimate the total amount which we will ultimately incur and be reimbursed by insurance carriers because, although the independent forensic investigation has concluded, we have not received all of the monetary assessments and evaluations from the credit card processors and issuing banks seeking to recover the cost of replacement cards and a portion of fraudulent charges, nor have we received any third-party claims as of this date. In addition, several state attorneys general are investigating the data breach events, including how they occurred, their consequences and our responses. We are cooperating in the governmental investigation, and could be subject to fines or other obligations. We have not concluded that a loss from the governmental investigation is probable, however, and therefore have not recorded an accrual for governmental investigation or regulatory action. We will continue to evaluate information as it becomes known and will record an estimate for loss at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. We have commenced a lawsuit in federal court in Nevada against the firm that conducted the initial forensic investigation for recovery of the costs and assessments we incurred as a result of the April 2014 data breach discovery. Litigation In March 2012, the Clarke County Development Corp. (“CCDC”), the local non-profit Iowa licensee for which we manage the Lakeside Hotel & Casino (“Lakeside”) in Osceola, Iowa, filed an action in Iowa state court against Affinity and Lakeside, seeking a declaratory judgment that the management contract between CCDC and Lakeside is non-assignable. We removed the case to federal court and contested CCDC's position even though we had no plans to assign the agreement. CCDC also named Lakeside, Affinity and the Iowa Racing & Gaming Commission (“IRGC”) in a separate petition in Iowa state court seeking judicial review of the IRGC's ruling, in November 2010, which approved the Predecessor's creditors to become the owners of Affinity Gaming, LLC, and thereby the indirect owners of Lakeside, prior to our emergence from bankruptcy and notwithstanding CCDC’s objection that an assignment of the management agreement had occurred which required its consent. On July 29, 2013, just two weeks before the hearing on judicial review, CCDC filed a voluntary dismissal without prejudice of the petition for judicial review. On July 30, 2013, CCDC filed a motion to dismiss the federal court action without prejudice, which was granted. CCDC’s dismissal of the state court petition and the federal court action was based upon its filing in Iowa state court on August 5, 2013 of a third lawsuit, since removed to federal court in Iowa, in which it seeks to enforce a settlement agreement it alleges was reached with us during a non-binding mediation held in June 2013. On April 21, 2015, following discovery in the new lawsuit, the Court granted summary judgment in favor of the Company and against CCDC, entering judgment for the Company. CCDC appealed the grant of summary judgment to the 8th Circuit U.S. Court of Appeals, and oral argument on the appeal was heard November 5, 2015. We do not know when a decision on the appeal will be rendered. In March 2013, shareholder Z Capital Partners, L.L.C. and certain of its affiliates (collectively “Z Capital”), individually as well as derivatively on behalf of Affinity Gaming, filed a complaint (the “Complaint”) against us as a nominal party and our directors as defendants in the District Court, Clark County, Nevada (the “District Court”). In July 2014, representatives of Z Capital, shareholder SPH Manager, LLC (“SPH Manager”) and certain other large shareholders reached an agreement with us to settle and dismiss with prejudice the Complaint. In November 2013, Chartwell Advisory Group, Ltd. (“Chartwell”), a professional services firm that facilitated filing refund requests with the Nevada Tax Commission for sales and use tax paid by certain casinos on the cost of complimentary meals for periods beginning in 2004, has filed a lawsuit against numerous Nevada casino operators, including one of our subsidiaries, alleging that it is owed a percentage of the tax casinos did not have to pay as a result of the 2012 state tax regulation and related 2013 settlement agreement. Our subsidiary had entered into an agreement prior to the bankruptcy pursuant to which Chartwell would receive a percentage of any refund received from the state of sales tax previously paid by our subsidiary. Although Chartwell asserts that we owe them approximately $0.3 million, we do not believe any amounts are due to Chartwell and accordingly, we have not recorded an accrual. Discovery in the case is ongoing. We are party to certain other claims, legal actions and complaints arising in the ordinary course of business or asserted by way of defense or counterclaim in actions we filed. We believe that our defenses are substantial in each of these matters and that we can successfully defend our legal position without material adverse effect on our consolidated financial statements. Leases We are party to contracts which we enter into in the ordinary course of our business, including leases for real property and operating leases for equipment. The following table presents future minimum lease payments under non-cancelable leases (in thousands):
We incurred rent expense totaling $7.6 million, $7.6 million and $8.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Environmental Remediation In 2011, during excavation at the site of our travel center at Whiskey Pete’s in Primm, Nevada, we encountered several contaminated underground sites which required soil remediation and groundwater testing. Much of the contamination resulted from underground fuel storage tanks related to a gas station operated more than 35 years ago, as well as from abandoned underground fuel lines. We also began testing at the direction of the Nevada Division of Environmental Protection (the “NDEP”) to determine the extent to which the contamination has affected the groundwater, and we have agreed to continue monitoring the groundwater for a period of at least two more years. Through December 31, 2015, we have incurred approximately $4.0 million on remediation work at the Whiskey Pete’s site. We have an insurance policy which provides coverage for environmental remediation costs of up to $5.0 million. We received $1.0 million from our insurer in 2013, $0.6 million in 2014, and $0.3 million in 2015. Although we believe that incurring additional cost related to the testing and ongoing monitoring of groundwater for contamination is probable, we cannot reasonably estimate an amount to accrue at this time because the NDEP has not told us what additional work, if any, it will require us to perform. Additionally, we believe some or all of the ongoing monitoring costs will be reimbursed by insurance as part of our initial claim. We also filed suit in Nevada state district court for partial recovery against the environmental consultant that managed the initial soil remediation. The ultimate cost to us will depend on the extent of contamination found, if any, as a result of our ongoing testing, the amount of remediation we are required to perform, and the amount we are reimbursed. The litigation against the environmental consultant is in the discovery phase. As we complete our ongoing monitoring obligation, we intend to analyze any cost incurred, and we will expense or capitalize it as necessary. Asset Retirement Obligation During the quarter ended December 31, 2014, we re-estimated the asset retirement obligation associated with a lease for real property at our Primm, Nevada location. The lease expires on June 30, 2043 and has a 25 year extension period which, for purposes of the asset retirement obligation, we assume will be exercised extending the term through June 30, 2068. First, we estimated the costs required to return the leased land to its original state using current cost data. We then used the current cost amount to estimate the cost we would incur at the end of the lease, assuming an inflation rate of 2.4%. Finally, we used a 6.7% discount rate to estimate the liability as of the current date. As a result of our re-estimation, we reduced the asset retirement obligation, as well as the fixed asset to which the obligation is associated, in the amount noted in the table below. The following table reconciles the value of the asset retirement obligation for the periods presented.
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Employee Benefit Plans |
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Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 14. EMPLOYEE BENEFIT PLANS We maintain retirement savings plans under Section 401(k) of the Internal Revenue Code for eligible employees. The plans allow employees to defer, within prescribed limits, up to 30% of their income on a pre-tax basis through contributions to the plans. We provide limited matches of a portion of eligible employees’ contributions. For the years ended December 31, 2015, 2014 and 2013, we recorded contribution expense related to our 401(k) plans of $0.2 million, $0.2 million and $0.3 million, respectively. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | NOTE 15. SEGMENT INFORMATION The Company views each property as an operating segment which we aggregate by region in order to present our reportable segments. The following table presents the components of net revenue by segment (in thousands):
We use earnings before interest expense; income tax; depreciation and amortization; share-based compensation expense; pre-opening costs; write offs, reserves and recoveries; loss on extinguishment or modification of debt; loss on impairment of assets; gains or losses on the disposition of assets; and restructuring and reorganization costs (“Adjusted EBITDA”) as a measure of profit and loss to manage the operational performance of our segments. Adjusted EBITDA is a measure which does not conform to generally accepted accounting principles in the United States (“GAAP”). You should not consider this information as an alternative to any measure of performance as promulgated under GAAP, such as operating income and net income. Our calculation of Adjusted EBITDA may be different from the calculations used by other companies; therefore, comparability may be limited. We have included a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, which in our case is operating income from operations. The following table presents Adjusted EBITDA by segment and by corporate and other (in thousands):
The following tables reconcile Adjusted EBITDA to operating income (in thousands):
The following table presents total assets by reportable segment (in thousands):
Total assets in the Corporate and other line consist primarily of cash at the corporate entity. The following table presents capital expenditures by reportable segment (in thousands):
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | NOTE 16. DISCONTINUED OPERATIONS On September 7, 2012, we entered into an Asset Purchase Agreement (“Agreement”) with Truckee Gaming regarding the Truckee Disposition. The transaction closed on February 1, 2013. Truckee Gaming paid a base purchase price of $19.2 million less a $1.7 million credit for deferred maintenance capital plus an adjustment related to EBITDA through the closing date of the transaction of $1.4 million. Truckee Gaming received $2.9 million in cash as part of the assets transferred, which consisted of $2.5 million in cage cash and $0.4 million transferred as a purchase price adjustment. The Agreement also includes a contractual purchase price adjustment based on the working capital balances, exclusive of cash, with a payment to either Truckee Gaming or us, pegging the working capital balances at zero. Based on the preliminary working capital balances and purchase price adjustments, we received proceeds of $17.5 million from Truckee Gaming which we deposited into an account subject to a control agreement. During the quarter ended March 31, 2013, we recorded the final adjustments related to the purchase price, including final working capital adjustments, and recorded a gain, net of selling expense, of $21,000. Including the impairment losses we recognized in the second half of 2012 related to this transaction, we recognized an overall loss, net of selling expense, of $14.8 million on the Truckee Disposition. For each of the properties we sold or that we have contracted to sell, we classified their results of operations as discontinued operations for all periods presented in the accompanying consolidated statements of operations. Discontinued operations for the year ended December 31, 2013 reflect one month of operating results of the properties we sold in the Truckee Disposition. The following table summarizes operating results for discontinued operations (in thousands):
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Selected Quarterly Financial Information |
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Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information | NOTE 17. SELECTED QUARTERLY FINANCIAL INFORMATION UNAUDITED (in thousands)
We have adjusted net revenue $0.3 million and $1.0 million for the quarters ended March 31, 2015 and 2014, and $0.3 million and $0.7 million for the quarters ended June 30, 2015 and 2014, from amounts that were previously reported in our Quarterly Reports on Form 10-Q for the correction of an immaterial error as discussed in Note 2. |
Condensed Consolidated Guarantor Data |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Guarantor Data | NOTE 18. CONDENSED CONSOLIDATED GUARANTOR DATA All of our current and future domestic subsidiaries which guarantee the New Credit Facility also fully and unconditionally guarantee our payment obligations under the 2018 Notes on a senior unsecured basis (see Note 8 for more information regarding our debt). All of the guarantees are joint and several, and all of the guarantor subsidiaries are wholly-owned by us. We prepared and are presenting the condensed consolidating financial statements in this footnote using the same accounting policies which we used to prepare the financial information located elsewhere in our condensed consolidated financial statements and related footnotes. Although Affinity Gaming Finance Corp. (“AG Finance”) is a co-issuer of the 2018 Notes, we present our indebtedness as an obligation of Affinity Gaming, only. AG Finance reflects no activity during any period presented, and we did not have any non-guarantor subsidiaries during any period presented. Affinity Gaming and Subsidiaries Consolidating Balance Sheet December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidating Balance Sheet December 31, 2014 (000s)
Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2014 (000s)
Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2013 (000s)
Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2014 (000s)
Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2013 (000s)
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Subsequent Events |
12 Months Ended |
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Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19. SUBSEQUENT EVENTS We have evaluated all events or transactions that occurred during the period from December 31, 2015 through the filing date. We did not identify any subsequent events the effects of which would require disclosure in our financial statement footnotes or adjustment to our financial position or results of operations. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Consolidation We include all of our subsidiaries in our consolidated financial statements, eliminating all significant intercompany balances and transactions during consolidation. |
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Basis of Presentation | Basis of Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). While preparing our financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenue and expense during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include the fair values of assets and liabilities related to depreciation and amortization, the estimated allowance for doubtful accounts receivable and the estimated cash flows we use in assessing the recoverability of long-lived assets, as well as the estimated fair values of certain assets related to write downs and impairments, contingencies and litigation, and claims and assessments. The term “Predecessor”, as used throughout these financial statements and related disclosures, refers to Herbst Gaming, Inc and its subsidiaries, from whose consolidated bankruptcy proceedings we emerged as successor effective December 30, 2010. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Our cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. The carrying value of the deposits and instruments approximates their fair value due to their short-term maturities. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of our financial instruments, we prioritize those fair value measurements into one of three levels based on the nature of the inputs, as follows:
The fair value hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not be available. |
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Accounts Receivable | Accounts Receivable We periodically perform credit evaluations of our customers to minimize the risk of credit losses. To determine an allowance for potential credit losses related to our accounts receivable, we review accounts receivable balances based on our collections experience and the age of the receivables. |
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Inventory | Inventory We record our inventory, which includes food, beverage, retail items and gasoline, at the lower of cost or market value. We determine cost using the first-in, first-out method. |
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Property and Equipment | Property and Equipment We state property and equipment at cost and depreciate such assets using the straight-line method over the estimated useful lives of each assets category. For leasehold improvements, we determine amortization using the straight-line method over the shorter of the lease term or estimated useful life of the asset. |
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Debt Issuance Costs | Debt Issuance Costs We capitalize all direct, incremental costs we pay to parties other than the creditor(s) in connection with the issuance of long-term debt and amortize such costs to interest expense using the effective interest method over the terms of the related debt agreements. Any amounts we pay to the creditor(s) are recorded as a component of the premium or discount associated with the debt. With regard to transactions for which we apply modification accounting, we capitalize any new amounts paid to the creditor(s) whose debt is modified, adding it to the unamortized debt issuance cost balance of such creditor(s), and we amortize such costs to interest expense using the effective interest method over the terms of the new debt agreement(s). We expense any costs we incur with third parties. With regard to transactions for which we apply extinguishment accounting, we include the unamortized debt issuance cost related to the extinguished creditor(s) plus any new amounts paid to the extinguished creditor(s) as a component of the gain or loss on the transaction. We associate any costs we incur with third parties with the new debt, and amortize such costs to interest expense using the effective interest method over the terms of the new debt agreement(s). |
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Self-Insurance Reserves | Self-Insurance Reserves We are self-insured up to certain stop loss amounts for costs associated with general liability claims and workers’ compensation claims arising from our operations in Nevada and Colorado. To estimate our accruals related to claims reserves, we consider historical loss experience and make judgments about the expected levels of costs per claim. We believe our estimates of future liability are reasonable based upon our methodology; however, changes in health care costs, accident frequency and severity, and other factors could materially affect the estimate for these liabilities. |
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Long-Lived Assets | Long-Lived Assets When events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we evaluate long-lived assets for potential impairment, basing our testing method upon whether the assets are held for sale or held for use. For assets classified as held for sale, we recognize the asset at the lower of carrying value or fair market value less costs of disposal, as estimated based on comparable asset sales, offers received, or a discounted cash flow model. For assets held and used, we estimate the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying value of the asset, we recognize an impairment loss for the difference between the carrying value of the asset and its fair value. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets As of October 31 of each year, we test goodwill and other indefinite-lived intangible assets for impairment. We also conduct tests between our annual tests if events occur or circumstances change which would, more likely than not, indicate a reduction in the fair values of the indefinite-lived intangible assets below their carrying values. When testing for impairment, we may choose to evaluate qualitative factors first to determine whether events and circumstances indicate that, more likely than not, an indefinite-lived intangible asset is impaired. If, after evaluating the totality of events and circumstances and their potential effect on significant inputs to the fair value determination, we determine that, more likely than not, an indefinite-lived intangible asset is impaired, we then quantitatively test for impairment. Indefinite-lived intangible assets consist primarily of license rights, which we test for impairment using a discounted cash flow approach, and trademarks, which we test for impairment using the relief-from-royalty method. Goodwill represents the excess of purchase price over fair market value of net assets acquired in business combinations. We test goodwill for relevant reporting units for impairment using a discounted cash flow analysis based on our budgeted future results which are discounted using a weighted average cost of capital. The weighted average cost of capital is developed using a standard capital asset pricing model, based on guideline companies in our industry and market indicators of terminal year capitalization rates. We make several estimates when evaluating indefinite-lived intangible assets for impairment. In particular, future cash flow estimates are, by their nature, subjective and actual results may differ materially from our estimates. In addition, the determination of capitalization rates and the discount rates used in the impairment tests are highly judgmental and dependent in large part on expectations of future market conditions. |
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Revenue and Promotional Allowances | Revenue and Promotional Allowances We recognize casino revenue equal to the amounts wagered by patrons less the amounts we pay to winning patrons. Additionally, we recognize lodging revenue at the time guests occupy hotel rooms, and all other revenue at the time we provide the goods or services to the patron. We present revenue from retail sales net of sales tax. Total revenue from casino operations includes the retail value of food, beverage, goods and services we provide to customers on a complimentary basis; such complimentary amounts are then deducted as promotional allowances in calculating net revenue. Promotional allowances also include certain incentives earned in our guest rewards programs. The retail value of complimentary food, beverage, goods and services included in promotional allowances consists of the following (in thousands):
The estimated departmental cost of providing these promotional allowances is as follows (in thousands):
Guest Rewards Programs Our guest rewards programs allow guests to earn certain point-based cash rewards or complimentary goods and services based on the volume of the guests' gaming activity. Guests can accumulate reward points over time which they may redeem at their discretion under the terms of the programs. If a guest does not earn any reward credits over the subsequent 12- to 18-month period, depending upon the casino, that guest forfeits their reward credit balance. Because guests can accrue the reward points, we expense those reward points, after giving effect to estimated forfeitures, as the guests earn them. We base our accruals on historical data, estimates and assumptions regarding the mix of rewards that guests will redeem and the costs of providing those rewards. We record the retail value of the point-based rewards or complimentary goods and services as promotional allowance. We record the cost of free slot play and cash rewards as a reduction of revenue. Cash, Hotel and Food Coupons On a discretionary basis, we may award cash, lodging and food coupons to our gaming patrons, based in part on their play volume, to induce future play. The coupons are redeemable within a short time period (generally seven days for cash coupons and one month for lodging and food coupons), and guests cannot renew or extend the offer. We record the retail value of the good or service underlying the coupons as promotional allowance when guests redeem these coupons. |
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Share-based Compensation | Share-Based Compensation We grant share-based awards to employees and non-employees in exchange for services; we have neither made share-based payments in exchange for goods nor do we currently have plans to do so. For share-based payments to employees and non-employees, we recognize compensation expense over the vesting period during which the employee or non-employee provides services in exchange for the award and, in the case of share-based payments to non-employees, we recognize a prepaid asset representing the portion of total estimated compensation expense for which the non-employee has not yet provided services. To measure compensation expense related to stock options awarded, we use information available as of the reporting date to estimate the fair value of awards. We estimate the fair value of stock options using the Black-Scholes-Merton option pricing model, which requires estimates for expected volatility, expected dividends, the risk-free interest rate and the expected term of the share-based award. To measure compensation expense related to restricted stock shares awarded to employees, we use an estimate of the fair market value of our common stock on the grant date, while we use an estimate of the fair market value of our common stock on the reporting date for awards granted to non-employees. We include an estimate of the number of awards which we expect will be forfeited, and we update that number based on actual forfeitures. |
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Income Taxes | Income Taxes We recognize deferred tax assets and liabilities, which result from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. Any effect on deferred tax assets or liabilities resulting from a change in enacted tax rates is included in income during the period that includes the enactment date. We reduce the carrying amounts of deferred tax assets by a valuation allowance if we determine that, more likely than not, we will be unable to realize such assets. Such assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, our forecasts of future profitability, the duration of statutory carryforward periods, and our experience with the utilization of operating loss and tax credit carryforwards before expiration. |
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Concentration of Credit Risk | Concentrations of Credit Risk We maintain cash balances at certain financial institutions located in the states in which we operate. The balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At times, cash balances may be in excess of FDIC limits. |
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases, that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. Lessees and lessors are required to apply a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, and early application is permitted. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, debt issuance costs will be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. In August 2015, the FASB issued an accounting standards update which clarifies that the guidance issued in ASU 2015-03 does not apply to line-of-credit arrangements. According to the additional guidance, line-of-credit arrangements will continue to present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the arrangement. ASU 2015-03 is effective for the annual and interim periods beginning after December 15, 2015. Early application is permitted. This ASU will not have a material effect on our financial condition, results of operations, cash flows or the reporting thereof. In August 2014, the FASB modified the Accounting Standards Codification by issuing ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The amendments in ASU 2014-15 place responsibility on management to determine whether substantial doubt exists regarding the entity’s ability to continue as a going concern. The amendments state that for each annual and interim reporting period, management should evaluate whether conditions or events, considered in the aggregate, raise doubt about the entity’s ability to continue as a going concern for one year after the financial statements are issued. If management determines that substantial doubt exists regarding the entity’s ability to continue as a going concern, the amendments require disclosure of the conditions or events that led to such determination, management’s evaluation of the significance of such conditions or events, and management’s plans to mitigate such conditions or events, including whether the plans alleviated substantial doubt. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The amendments in ASU 2014-15 will not have a material effect on our financial condition, results of operations, cash flows or the reporting thereof. In May 2014, the FASB modified the Accounting Standards Codification by issuing ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2014-09 stipulate that an entity should recognize revenue in an amount which reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers, and they provide a five-step process to assist entities with achieving that core principle. The ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. With regard to disclosures, ASU 2014-09 states that entities should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, and it requires qualitative and quantitative disclosures concerning contracts with customers, significant judgments and changes therein, and assets recognized from the costs incurred to obtain or fulfill a contract. The amendments in ASU 2014-09 have been deferred for one year and are effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and they permit either retrospective application to all prior periods or retrospective application with the cumulative effect of application recognized on the initial application date. Early adoption is permitted for annual and interim periods beginning after December 31, 2016. We are currently evaluating what effect(s) the ASU will have. We have reviewed all other recently issued accounting pronouncements and, other than those we have disclosed above or in previous filings with the SEC, we do not believe any of such pronouncements will have a material effect on our operations. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of promotional allowances and casino expense | The retail value of complimentary food, beverage, goods and services included in promotional allowances consists of the following (in thousands):
The estimated departmental cost of providing these promotional allowances is as follows (in thousands):
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Schedule of correction of immaterial error and reclassifications | The following table compares previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles (in thousands):
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Property and equipment consist of the following (in thousands, except estimated lives):
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets | The following table summarizes intangible assets by category (in thousands):
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Schedule of goodwill by segment | The following table summarizes the changes in goodwill by reportable segment during the year ended December 31, 2015:
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Schedule of future amortization expense related to definite-lived intangible assets | The following table presents the future amortization expense related to definite-lived intangible assets (in thousands):
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Other Assets (Tables) |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following (in thousands):
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Accrued Expense (Tables) |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expense | Accrued expense consists of the following (in thousands):
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Balances | The following table presents long-term debt balances (in thousands):
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Schedule of Redemption Price Percentage for Notes | the Issuers are entitled to redeem all or a portion of the 2018 Notes upon providing not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on May 15 of the years set forth in the table below.
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Schedule of Carrying Values and Estimated fair Values of Debt Instruments | The following table presents the carrying values and estimated fair values of our long-term debt at December 31, 2015 (in thousands):
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The following table details the components of our deferred tax assets and liabilities (in thousands):
Deferred tax assets and liabilities presented on the consolidated balance sheets are as follows (in thousands):
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Schedule of Income Tax Provision | The following table presents the components of our income tax provision attributable to pre-tax income from continuing operations, as well as the income tax benefit attributable to pre-tax income from discontinued operations (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation between the federal statutory rate and the effective income tax rate, expressed as a percentage of pre-tax income:
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Share-based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding and Non-vested Options Activity | The following table summarizes the activity related to our outstanding and non-vested stock options and restricted stock for the period ended December 31, 2015:
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Summary of Exercisable Stock Options | The following table lists certain information related to stock options awarded under the LTIP which had vested as of December 31, 2015:
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Schedule of Stock Option Information | We estimate the fair value of stock option awards at each reporting date using a Black-Scholes-Merton option-pricing model. For the years ended December 31, 2015 and 2014, we applied the following weighted-average assumptions:
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Schedule of Nonvested Share Activity | The following tables present certain information related to compensation cost:
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Write Downs, Reserves and Recoveries (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Write Downs, Reserves and Recoveries | The following table presents the components of write downs, reserves and recoveries for continuing operations (in thousands):
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments Under Non-cancelable Leases | The following table presents future minimum lease payments under non-cancelable leases (in thousands):
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Schedule of Change in Asset Retirement Obligation | The following table reconciles the value of the asset retirement obligation for the periods presented.
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Segment Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment classification of properties | The following table presents the components of net revenue by segment (in thousands):
The following table presents Adjusted EBITDA by segment and by corporate and other (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of Adjusted EBITDA to operating income | The following tables reconcile Adjusted EBITDA to operating income (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of assets by reportable segment to consolidated | The following table presents total assets by reportable segment (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of capital expenditures by reportable segments to consolidated | The following table presents capital expenditures by reportable segment (in thousands):
|
Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Results for Discontinued Operations | The following table summarizes operating results for discontinued operations (in thousands):
|
Selected Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | UNAUDITED (in thousands)
|
Condensed Consolidated Guarantor Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | Affinity Gaming and Subsidiaries Consolidating Balance Sheet December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidating Balance Sheet December 31, 2014 (000s)
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Condensed Consolidating Statement of Operations | Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2014 (000s)
Affinity Gaming and Subsidiaries Consolidating Statement of Operations Year ended December 31, 2013 (000s)
|
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Condensed Consolidating Statement of Cash Flows | Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2015 (000s)
Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2014 (000s)
Affinity Gaming and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2013 (000s)
|
Organization, Consolidation and Presentation of Financial Statements (Narrative) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015
casino
| |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of casinos (casinos) | 11 |
Nevada [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of casinos (casinos) | 5 |
Colorado [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of casinos (casinos) | 3 |
Missouri [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of casinos (casinos) | 2 |
Iowa [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of casinos (casinos) | 1 |
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accounting Policies [Abstract] | |||
Goodwill, Impairment Loss | $ 20,229 | ||
Self insurance reserves | 1,500 | $ 1,100 | |
Goodwill and other impairments | $ 20,229 | $ 0 | $ 165 |
Summary of Significant Accounting Policies (Schedule of Promotional Allowances and Casino Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Product Information [Line Items] | |||
Promotional allowances | $ 47,829 | $ 57,802 | $ 53,888 |
Casino operations | |||
Product Information [Line Items] | |||
Promotional allowances | 47,829 | 57,802 | 53,888 |
Cost of promotional allowances | 31,889 | 40,245 | 37,724 |
Casino operations | Lodging | |||
Product Information [Line Items] | |||
Promotional allowances | 10,704 | 13,797 | 12,891 |
Cost of promotional allowances | 10,700 | 13,797 | 12,891 |
Casino operations | Food and Beverage | |||
Product Information [Line Items] | |||
Promotional allowances | 28,305 | 31,726 | 28,176 |
Cost of promotional allowances | 13,263 | 15,587 | 13,639 |
Casino operations | Other | |||
Product Information [Line Items] | |||
Promotional allowances | 8,820 | 12,279 | 12,821 |
Cost of promotional allowances | $ 7,926 | $ 10,861 | $ 11,194 |
Summary of Significant Accounting Policies (Correction of Immaterial Error and Reclassifications) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net revenue | $ 92,861 | $ 101,950 | $ 101,511 | $ 96,978 | $ 92,233 | $ 99,231 | $ 98,916 | $ 95,522 | $ 393,300 | $ 385,902 | $ 389,774 |
Operating Expenses | $ 378,479 | 363,966 | 360,775 | ||||||||
Previously Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net revenue | 387,991 | 390,488 | |||||||||
Operating Expenses | 366,055 | 361,489 | |||||||||
Correction | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net revenue | $ 300 | $ 300 | $ 700 | $ 1,000 | (2,089) | (714) | |||||
Operating Expenses | $ (2,089) | $ (714) |
Goodwill and Other Intangible Assets (Schedule of goodwill by segment) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 68,516 |
Impairment of goodwill | (20,229) |
Goodwill, ending balance | 48,287 |
Nevada [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 33,665 |
Impairment of goodwill | 0 |
Goodwill, ending balance | 33,665 |
Midwest [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 14,622 |
Impairment of goodwill | 0 |
Goodwill, ending balance | 14,622 |
Colorado [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 20,229 |
Impairment of goodwill | (20,229) |
Goodwill, ending balance | $ 0 |
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and other impairments | $ 20,229 | $ 0 | $ 165 |
Amortization of intangible assets | $ 2,500 | $ 2,500 | $ 2,900 |
Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets useful life | 6 years 6 months | ||
Customer Loyalty Programs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets useful life | 7 years | ||
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets useful life | 3 years 9 months |
Goodwill and Other Intangible Assets (Schedule of Future Amortization Expense Related to Definite-lived Intangible Assets) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 | $ 2,501 |
2017 | 975 |
2018 | $ 689 |
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Other Assets [Abstract] | ||
Capitalized debt issuance cost, net | $ 1,470 | $ 2,081 |
Long-term deposits | 2,919 | 3,172 |
Other assets | 611 | 485 |
Other assets, net | $ 5,000 | $ 5,738 |
Accrued Expense (Schedule of Accrued Expense) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Progressive jackpot liabilities | $ 2,984 | $ 3,271 |
Accrued payroll and related | 7,441 | 6,712 |
Slot club point liability | 3,213 | 3,353 |
Litigation reserve | 3,100 | 3,100 |
Other accrued expense | 7,420 | 6,074 |
Total | $ 24,158 | $ 22,510 |
Long-Term Debt (Schedule of Long-term Debt Balances) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost, net | $ (7,700) | $ (5,000) |
Total debt, including current portion | 377,057 | 374,678 |
Less: current maturities | (11,383) | 0 |
Plus: long-term portion of capital leases | 0 | 23 |
Total long-term debt | 365,674 | 374,701 |
9% Senior Unsecured Notes Due 2018 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 200,000 | 200,000 |
Unamortized debt issuance cost, net | (2,203) | (2,986) |
Unamortized discount | (847) | (1,148) |
Total debt, including current portion | 196,950 | 195,866 |
Term Loan Due 2017 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 182,745 | 182,745 |
Unamortized debt issuance cost, net | (2,638) | (3,933) |
Total debt, including current portion | $ 180,107 | $ 178,812 |
Long-Term Debt (Schedule of Redemption Price Percentage for Notes) (Details) - Senior Notes [Member] |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
2015 [Member] | |
Debt Instrument [Line Items] | |
Redemption price as percentage of principal amount | 104.50% |
2016 [Member] | |
Debt Instrument [Line Items] | |
Redemption price as percentage of principal amount | 102.25% |
2017 and thereafter [Member] | |
Debt Instrument [Line Items] | |
Redemption price as percentage of principal amount | 100.00% |
Long-Term Debt (Schedule of Carrying Values and Estimated fair Values of Debt Instruments) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Carrying Value [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | $ 377,057 |
Carrying Value [Member] | Senior Notes [Member] | Term Loan Due 2017 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | 180,107 |
Carrying Value [Member] | Level 2 [Member] | Senior Notes [Member] | 9% Senior Unsecured Notes Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | 196,950 |
Estimated Fair Value [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | 376,072 |
Estimated Fair Value [Member] | Senior Notes [Member] | Term Loan Due 2017 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | 180,107 |
Estimated Fair Value [Member] | Level 2 [Member] | Senior Notes [Member] | 9% Senior Unsecured Notes Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | $ 195,965 |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities, Current and Non-current) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Current deferred tax asset (liability) | $ (1,663) | $ (1,438) |
Non-current deferred tax liability | (13,095) | (16,081) |
Net deferred tax liability | $ (14,758) | $ (17,519) |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Tax Assets | ||
Reserve for employee benefits | $ 656 | $ 715 |
Provision for doubtful accounts | 53 | 57 |
Deferred compensation | 744 | 608 |
Asset retirement obligation | 193 | 180 |
Progressive slot and players’ club liabilities | 2,386 | 2,595 |
Tax benefit of current year NOL | 12,901 | 13,834 |
Equity compensation | 1,108 | 927 |
General business credits | 1,029 | 837 |
AMT credit | 330 | 213 |
Litigation reserve | 1,116 | 1,116 |
Gaming taxes | 1,136 | 765 |
Accrued expenses | 483 | 200 |
Other | 679 | 208 |
Gross deferred tax assets | 22,814 | 22,255 |
Valuation allowance | (21,082) | (17,992) |
Deferred tax assets, net of valuation allowance | 1,732 | 4,263 |
Deferred Tax Liabilities | ||
Depreciation and amortization | (13,821) | (18,715) |
Debt issuance costs | (501) | (453) |
Prepaid services and supplies | (2,168) | (2,614) |
Gross deferred tax liabilities | (16,490) | (21,782) |
Net deferred tax liability | $ (14,758) | $ (17,519) |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 21,082 | $ 17,992 |
AMT credit | 330 | 213 |
General business credits | 1,029 | $ 837 |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 35,700 | |
Tangible Property [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Long-term deferred tax liabilities increase amount | $ 1,800 | |
Building Improvements [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Estimated useful lives | 39 years |
Income Taxes (Schedule of Income Tax Provision) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
CURRENT | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 |
Total current tax provision | 0 | 0 | 0 |
DEFERRED | |||
Federal | 2,583 | (14,682) | 694 |
State | 152 | (864) | (175) |
Total deferred tax benefit (provision) | 2,735 | (15,546) | 519 |
Benefit from (provision for) income taxes related to continuing operations | 2,735 | (15,546) | 519 |
Benefit from income taxes related to discontinued operations | 0 | 0 | 133 |
Total benefit from (provision for) income tax | $ 2,735 | $ (15,546) | $ 652 |
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||
Tax at federal statutory rate | 34.00% | 34.00% |
State income tax | 2.00% | 2.00% |
Lobbying costs (non-deductible expense) | (0.40%) | (6.00%) |
Other non-deductible expense | (1.30%) | (3.30%) |
Other, net | 0.50% | (0.50%) |
State provision adjustment | 0.00% | 0.00% |
Valuation allowance | (19.50%) | (221.30%) |
General business credit | 2.00% | 3.90% |
Effective tax rate related to continuing operations | 17.30% | (191.20%) |
Effective tax rate related to discontinued operations | 0.00% | 0.00% |
Total effective tax rate | 17.30% | (191.20%) |
Share-based Compensation (Summary of Exercisable Stock Options) (Details) - Stock Options $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
| |
Vested and Exercisable | |
Aggregate intrinsic value (in thousands) | $ 500 |
Weighted-average remaining contractual term (in years) | 3 years 7 months |
Long-term Incentive Plan [Member] | |
Vested and Exercisable | |
Number of vested stock options (in shares) | shares | 63,610 |
Weighted-average exercise price per share (usd per share) | $ / shares | $ 10.69 |
Aggregate intrinsic value (in thousands) | $ 62 |
Weighted-average remaining contractual term (in years) | 1 year 8 months |
Expected to Vest | |
Number of vested stock options (in shares) | shares | 329,685 |
Weighted-average exercise price per share (usd per share) | $ / shares | $ 10.23 |
Aggregate intrinsic value (in thousands) | $ 474 |
Weighted-average remaining contractual term (in years) | 3 years 7 months |
Share-based Compensation (Schedule of Stock Option Information) (Details) - Stock Options |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 1 year 9 months 9 days | 1 year 4 months 6 days |
Expected volatility (percent) | 45.00% | 48.00% |
Expected dividends (percent) | 0.00% | 0.00% |
Risk-free interest rates (percent) | 0.91% | 0.45% |
Share-based Compensation (Schedule of Nonvested Share Activity) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,206 | $ 455 | $ 1,169 |
Unrecognized compensation cost for non-vested awards | 2,051 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 245 | 61 | 338 |
Unrecognized compensation cost for non-vested awards | $ 1,087 | ||
Weighted-average years to be recognized | 1 year 3 months | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 961 | $ 394 | $ 831 |
Unrecognized compensation cost for non-vested awards | $ 964 | ||
Weighted-average years to be recognized | 7 months |
Write Downs, Reserves and Recoveries (Schedule of Write Downs, Reserves and Recoveries) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
CCDC litigation reserve | $ 0 | $ 0 | $ 3,100 |
Tax penalties and interest related to bankruptcy estate | 0 | 0 | (1,459) |
Write off of capitalized environmental remediation costs | (60) | (448) | 2,649 |
Amounts related to closure of Henderson Casino Bowl | 0 | 0 | 476 |
Loss on asset disposal | 47 | 0 | 0 |
Other | 314 | 24 | 0 |
Write downs, reserves and recoveries | $ 301 | $ (424) | $ 4,766 |
Related Party Transactions (Narrative) (Details) - USD ($) |
4 Months Ended | 11 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2013 |
|
Terrible Herbst, Inc | |||
Related Party Transaction [Line Items] | |||
Trademark license expense | $ 300,000 | ||
Consulting Agreement, Monthly Fee [Member] | Former Chief Executive Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 20,000 | ||
Consulting Agreement, Monthly Fee [Member] | Former Chief Operating Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 12,500 |
Commitments and Contingencies (Narrative) (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
Breach
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2007 |
|
Loss Contingencies [Line Items] | ||||
Liability resulting from network security events | $ 5,000 | |||
Expense related to network security breach | $ 1,200 | |||
Number of security breaches | Breach | 2 | |||
Rent expense | $ 7,600 | $ 7,600 | $ 8,000 | |
Number of years ago that the gas station contaminated the soil | 35 years | |||
Environmental remediation expense | $ 0 | 0 | 3,185 | |
Amount of coverage | 5,000 | |||
Insurance recoveries | 300 | $ 600 | $ 1,000 | |
Inflation rate (percent) | 2.40% | |||
Discount rate (percent) | 6.70% | |||
Chartwell Advisory Group, Ltd v Flamingo Gaming LLC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 300 | |||
Nevada [Member] | ||||
Loss Contingencies [Line Items] | ||||
Term of extension period | 25 years | |||
Whiskey Pete's [Member] | ||||
Loss Contingencies [Line Items] | ||||
Environmental remediation expense | $ 4,000 |
Commitments and Contingencies (Schedule of Future Minimum Lease Payments Under Non-cancelable Leases) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 7,785 |
2017 | 7,583 |
2018 | 7,583 |
2019 | 7,139 |
2020 | 6,722 |
Thereafter | 151,200 |
Total | $ 188,012 |
Commitments and Contingencies (Schedule of Change in Asset Retirement Obligation) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 501 | $ 773 |
Adjustment due to re-estimate | 0 | (319) |
Accretion expense | 34 | 47 |
Balance at end of period | $ 535 | $ 501 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Maximum annual contribution per employee (percent) | 30.00% | ||
Additional expenses over stop loss | $ 0.2 | $ 0.2 | $ 0.3 |
Selected Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net revenue | $ 92,861 | $ 101,950 | $ 101,511 | $ 96,978 | $ 92,233 | $ 99,231 | $ 98,916 | $ 95,522 | $ 393,300 | $ 385,902 | $ 389,774 |
Operating income | (15,073) | 9,047 | 10,085 | 10,762 | 3,937 | 5,210 | 5,943 | 6,846 | 14,821 | 21,936 | 28,999 |
Income (loss) from continuing operations | $ (15,649) | $ 1,996 | 797 | (240) | $ (5,672) | $ (3,685) | (14,367) | 47 | $ (13,096) | (23,677) | (991) |
Correction | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net revenue | $ 300 | $ 300 | $ 700 | $ 1,000 | $ (2,089) | $ (714) |
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