Earnings per Share

9 Months Ended

Sep. 30, 2015

Note 9. Earnings per Share

The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted net income per share computations during the three and nine months ended September 30, 2015 and 2014 (dollars in thousands, except per share amounts):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
	(unaudited)					(unaudited)
Net income (loss) available to common stockholders	$	5,399	$	(4,064	)	$	4,030	$	(3,488	)


Weighted average shares outstanding:
Basic		46,516,614		26,075,022			46,509,369		24,242,791


Diluted		46,763,589		26,075,022			46,620,959		24,242,791


Net income (loss) per common share:
Basic	$	0.12	$	(0.16	)	$	0.09	$	(0.14	)


Diluted	$	0.12	$	(0.16	)	$	0.09	$	(0.14	)

As the accounting acquirer in the Merger and in accordance with the applicable accounting guidance in ASC 805, for purposes of computing comparative earnings per share, the Company has presented the historical weighted average number of common shares outstanding multiplied by the exchange ratio established in the merger agreement (see Note 2) for the three and nine months ended September 30, 2014. At the Merger Date, there were no dilutive securities outstanding.

Equity Offering

On July 7, 2015, the Company filed a registration statement relating to an underwritten offering of up to $80 million common stock ("Common Stock Offering"). The Company intends to sell shares of common stock to generate aggregate net proceeds of approximately $60 million, prior to the exercise of the underwriters' option to purchase additional shares. The number of shares sold in the offering, if any, will be subject to market conditions.

If the equity offering is completed, the Company intends to apply the proceeds from the Common Stock Offering to pay a portion of the purchase price for the purchase of all of the assets of Circus Circus Reno and the Silver Legacy Joint Venture currently owned by a subsidiary of MGM Resorts International, including repayment of amounts outstanding under the Silver Legacy Joint Venture credit facility, and pay fees and costs associated with such transactions. If the equity offering is not completed in advance of the completion of the purchase, the Company intends to utilize the New Revolving Credit Facility to fund a portion of the Circus Reno/Silver Legacy Purchase.