QUARTERLY DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2012

16. QUARTERLY DATA (UNAUDITED)

The following table sets forth certain consolidated quarterly financial information for the years ended December 31, 2012 and 2011.

Continuing operations exclude the operating results for Binion's Gambling Hall & Hotel, the Ramada Inn and Speedway Casino, Jackson Harness Raceway and MTR-Harness, Inc.

	Quarter Ended

	March 31			June 30			September 30			December 31
	(dollars in thousands, except per share amounts)
2012:
Revenues	$	111,120		$	122,265		$	150,532		$	120,180
Less promotional allowances		(3,170	)		(3,148	)		(3,876	)		(3,904	)

Net revenues		107,950			119,117			146,656			116,276
Operating expenses		93,571			104,158			123,389			102,926

Operating income(1)		14,379			14,959			23,267			13,350
(Loss) income from continuing operations(2)		(3,191	)		(2,100	)		5,336			(5,492	)
Net (loss) income(3)	$	(3,191	)	$	(2,355	)	$	5,313		$	(5,491	)
Basic net (loss) income per common share:
(Loss) income from continuing operations	$	(0.11	)	$	(0.08	)	$	0.19		$	(0.20	)
Net (loss) income	$	(0.11	)	$	(0.09	)	$	0.19		$	(0.20	)
Diluted net (loss) income per common share:
(Loss) income from continuing operations	$	(0.11	)	$	(0.08	)	$	0.19		$	(0.20	)
Net (loss) income	$	(0.11	)	$	(0.09	)	$	0.19		$	(0.20	)
Weighted average shares outstanding—basic		27,960,030			27,984,595			28,047,046			28,054,429
Weighted average shares outstanding—diluted		27,960,030			27,984,595			28,416,008			28,054,429

	Quarter Ended

	March 31			June 30			September 30			December 31
	(dollars in thousands, except per share amounts)
2011:
Revenues	$	100,724		$	113,315		$	118,601		$	106,541
Less promotional allowances		(2,386	)		(2,796	)		(2,962	)		(2,951	)

Net revenues		98,338			110,519			115,639			103,590
Operating expenses		89,180			94,185			105,137			92,012

Operating income(4)		9,158			16,334			10,502			11,578
(Loss) income from continuing operations(5)		(5,133	)		2,262			(41,517	)		(6,765	)
Net (loss) income(6)	$	(5,133	)	$	2,262		$	(41,517	)	$	(5,977	)
Basic net (loss) income per common share:
(Loss) income from continuing operations	$	(0.19	)	$	0.08		$	(1.49	)	$	(0.24	)
Net (loss) income	$	(0.19	)	$	0.08		$	(1.49	)	$	(0.21	)
Diluted net (loss) income per common share:
(Loss) income from continuing operations	$	(0.19	)	$	0.08		$	(1.49	)	$	(0.24	)
Net (loss) income	$	(0.19	)	$	0.08		$	(1.49	)	$	(0.21	)
Weighted average shares outstanding—basic		27,717,041			27,800,392			27,880,204			27,940,702
Weighted average shares outstanding—diluted		27,717,041			27,869,684			27,880,204			27,940,702

(1)

Operating income for each of the quarters ended during 2012 includes the following:

•: Project-opening costs of $0.3 million, $2.2 million and $0.2 million related to the VLT construction project at Scioto Downs for the quarters ended March 31, June 30, and September 30, respectively
•: Other regulatory gaming assessment costs of $0.4 million related to Presque Isle Downs for the quarter ended December 31

(2)

(Loss) income from continuing operations for each of the quarters ended during 2012 includes the following:

•: Income tax valuation allowances of $0.6 million, $0.7 million, $0.7 million and $1.2 million that were provided in excess of the Company's deferred tax benefits for the quarters ended March 31, June 30, September 30 and December 31, respectively

(3)

Net income for the quarter ended September 30, 2012 includes expense of $0.3 million related to the settlement of a matter related to a former employee of Jackson Racing, Inc.

(4)

Operating income for each of the quarters ended during 2011 includes the following:

•: Receipt of payments of $1.8 million and $0.3 million relating to lease of mineral rights for the quarters ended June 30 and December 31, respectively
•: Project-opening costs of $0.2 million related to poker table gaming operations at Presque Isle Downs, which commenced in October, for the quarter ended September 30
•: Other regulatory gaming assessment costs of $5.8 million and $0.1 million for the quarters ended September 30 and December 31, respectively

•

Impairment losses of $0.7 million relating to non-operating real property for the quarter ended December 31

(5)

(Loss) income from continuing operations for each of the quarters ended during 2011 includes the following:

•: Income tax valuation allowances of $0.9 million, $0.6 million, $1.2 million and $1.2 million that were provided in excess of the Company's deferred tax benefits for the quarters ended March 31, June 30, September 30 and December 31, respectively
•: A loss on extinguishment of $34.4 million resulting from the write-offs of deferred financing fees and original issue discount and the payment of tender and redemption fees related to the repurchase of our Senior Secured Notes and Senior Subordinated Notes and termination of our former credit agreement for the quarter ended September 30

(6)

Net loss for the quarter ended December 31, 2011 includes $0.9 million received as a settlement payment relating to the sale of Binion's

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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