SEGMENT REPORTING

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We manage our casinos based on geographical regions within the United States. The casino/resort segments include the Silver Slipper Casino and Hotel in Bay St. Louis, Mississippi; the Rising Star Casino Resort in Rising Sun, Indiana; and the Northern Nevada segment, which consists of the Grand Lodge Casino in Incline Village, Nevada and Stockman’s Casino in Fallon, Nevada. The Development/Management segment includes costs associated with casino-related development and management projects, including our management contract with the Pueblo of Pojoaque that expired in September 2014.

In 2015, the Company's management began utilizing Adjusted Property EBITDA as the primary profit measure for its segments. Adjusted Property EBITDA is a non-GAAP measure defined as Adjusted EBITDA before corporate-related costs and expenses that are not allocated to each property. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, board and executive transition costs, project development and acquisition costs, and non-cash share based compensation expense. Adjusted EBITDA or Adjusted Property EBITDA should not be construed as an alternative to operating income or net income for use as an indicator of our performance; or as an alternative to cash flows from operating activities for use as a measure of liquidity; or as any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA or Adjusted Property EBITDA information may calculate Adjusted EBITDA or Adjusted Property EBITDA in a different manner.

The following tables reflect selected operating information for our reporting segments for the three and nine months ended September 30, 2015 and 2014 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss):

For the three months ended September 30, 2015
(In thousands, unaudited)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort			Silver Slipper Casino & Hotel		Development/ Management			Corporate			Consolidated
Revenues, net	$	6,809	$	12,563		$	14,894	$	—		$	—		$	34,266
Adjusted Property EBITDA	$	2,227	$	2,455		$	2,413	$	—		$	—		$	7,095
Other operating costs and expenses:
Depreciation and amortization	199		678			1,322		—			4			2,203
Preopening costs	—		—			21		—			—			21
Corporate expenses	—		—			—		—			844			844
Project development and acquisition costs	—		—			—		709			—			709
Stock compensation	—		—			—		—			57			57
Operating income (loss)	2,028		1,777			1,070		(709		)	(905		)	3,261
Non-operating expense:
Interest expense, net of amounts capitalized	—		40			4		—			1,785			1,829
Non-operating expense	—		40			4		—			1,785			1,829
Income (loss) before income taxes	2,028		1,737			1,066		(709		)	(2,690		)	1,432
Provision (benefit) for income taxes	—		(61		)	3		—			(545		)	(603		)
Net income (loss)	$	2,028	$	1,798		$	1,063	$	(709	)	$	(2,145	)	$	2,035

For the three months ended September 30, 2014
(In thousands, unaudited)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort		Silver Slipper Casino & Hotel		Development/ Management		Corporate			Consolidated
Revenues, net	$	7,134	$	13,399	$	12,111	$	273	$	—		$	32,917
Adjusted Property EBITDA	$	2,463	$	1,650	$	1,736	$	273	$	—		$	6,122
Other operating costs and expenses:
Depreciation and amortization	209		766		1,419		—		4			2,398
Corporate expenses	—		—		—		—		936			936
Project development and acquisition costs	—		—		—		72		—			72
Stock compensation	—		—		—		—		59			59
Operating income (loss)	2,254		884		317		201		(999		)	2,657
Non-operating expense:
Interest expense, net of amounts capitalized	—		62		5		—		1,547			1,614
Settlement loss	—		—		—		—		1,700			1,700
Other	21		31		9		—		—			61
Non-operating expense	21		93		14		—		3,247			3,375
Income (loss) before income taxes	2,233		791		303		201		(4,246		)	(718		)
Provision (benefit) for income taxes	759		471		103		159		(1,444		)	48
Net income (loss)	$	1,474	$	320	$	200	$	42	$	(2,802	)	$	(766	)

For the nine months ended September 30, 2015
(In thousands, unaudited)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort			Silver Slipper Casino & Hotel		Development/ Management			Corporate			Consolidated
Revenues, net	$	15,665	$	35,444		$	42,967	$	—		$	—		$	94,076
Adjusted Property EBITDA	$	3,269	$	3,251		$	7,774	$	—		$	—		$	14,294
Other operating costs and expenses:
Depreciation and amortization	593		2,039			3,582		—			11			6,225
Write-offs, recoveries and asset disposals	80		—			—		—			(446		)	(366		)
Preopening costs	—		—			134		—			—			134
Corporate expenses	—		—			—		—			2,964			2,964
Project development and acquisition costs	—		—			—		760			—			760
Stock compensation	—		—			—		—			285			285
Operating income (loss)	2,596		1,212			4,058		(760		)	(2,814		)	4,292
Non-operating expense (income):
Interest expense, net of amounts capitalized	—		124			13		—			4,739			4,876
Other	—		(11		)	—		—			(1		)	(12		)
Non-operating expense	—		113			13		—			4,738			4,864
Income (loss) before income taxes	2,596		1,099			4,045		(760		)	(7,552		)	(572		)
Provision (benefit) for income taxes	—		(61		)	8		—			(372		)	(425		)
Net income (loss)	$	2,596	$	1,160		$	4,037	$	(760	)	$	(7,180	)	$	(147	)

For the nine months ended September 30, 2014
(In thousands, unaudited)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort			Silver Slipper Casino & Hotel		Development/ Management		Corporate			Consolidated
Revenues, net	$	16,543	$	40,188		$	36,879	$	1,066	$	—		$	94,676
Adjusted Property EBITDA	$	3,847	$	2,503		$	6,009	$	1,066	$	—		$	13,425
Other operating costs and expenses:
Depreciation and amortization	640		2,305			4,207		—		13			7,165
Impairment	—		11,547			—		—		—			11,547
Write-offs, recoveries and asset disposals	—		8			13		—		30			51
Corporate expenses	—		—			—		—		3,091			3,091
Project development and acquisition costs	—		—			—		407		—			407
Stock compensation	—		—			—		—		219			219
Operating income (loss)	3,207		(11,357		)	1,789		659		(3,353		)	(9,055		)
Non-operating expense:
Interest expense, net of amounts capitalized	—		157			7		—		4,538			4,702
Settlement loss	—		—			—		—		1,700			1,700
Other	20		31			17		—		—			68
Non-operating expense	20		188			24		—		6,238			6,470
Income (loss) before income taxes	3,187		(11,545		)	1,765		659		(9,591		)	(15,525		)
Provision (benefit) for income taxes	1,084		(3,821		)	600		212		(3,261		)	(5,186		)
Net income (loss)	$	2,103	$	(7,724	)	$	1,165	$	447	$	(6,330	)	$	(10,339	)

Selected balance sheet data as of September 30, 2015 and December 31, 2014 follows:

As of September 30, 2015
(In thousands, unaudited)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort		Silver Slipper Casino & Hotel		Development/ Management		Corporate		Consolidated
Total assets	$	12,110	$	37,231	$	83,035	$	2,742	$	11,168	$	146,286
Property, equipment and capital lease, net	6,220		31,792		61,856		242		24		100,134
Goodwill	1,809		—		14,671		—		—		16,480
Liabilities	1,649		10,856		4,048		—		72,098		88,651

As of December 31, 2014
(In thousands)
	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort		Silver Slipper Casino & Hotel		Development/ Management		Corporate		Consolidated
Total assets	$	12,471	$	39,101	$	76,898	$	—	$	12,474	$	140,944
Property, equipment and capital lease, net	6,656		33,801		54,548		—		35		95,040
Goodwill	1,809		—		14,671		—		—		16,480
Liabilities	1,970		11,543		4,182		—		65,752		83,447