10-Q 1 fll-20200331x10q.htm 10-Q fll_Current_Folio_10Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

 

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2020

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from         to

 

Commission File No. 1-32583

FULL HOUSE RESORTS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Delaware

(State or other jurisdiction

of incorporation or organization)

    

13-3391527

(I.R.S. Employer

Identification No.)

 

 

 

One Summerlin, 1980 Festival Plaza Drive, Suite 680

Las Vegas, Nevada

(Address of principal executive offices)

 

89135

(Zip Code)

 

(702) 221-7800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

Title of each Class

  

Trading Symbol(s)

  

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

 

FLL

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company and/or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer 

Smaller reporting company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act:  Yes  No 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes  No 

As of May 11, 2020, there  were 27,075,962  shares of Common Stock, $0.0001 par value per share, outstanding.

 

 

 

 

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

FORM 10-Q

INDEX

 

 

 

 

 

 

 

 

 

 

Page

PART I
FINANCIAL INFORMATION
 

Item 1. 

Financial Statements (Unaudited)

 

3

 

Consolidated Statements of Operations

 

3

 

Consolidated Balance Sheets

 

4

 

Consolidated Statements of Changes in Stockholders’ Equity

 

5

 

Consolidated Statements of Cash Flows

 

6

 

Condensed Notes to Consolidated Financial Statements

 

7

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

22

Item 3. 

Quantitative and Qualitative Disclosures about Market Risk

 

37

Item 4. 

Controls and Procedures

 

37

 

 

 

 

PART II
OTHER INFORMATION
 

Item 1. 

Legal Proceedings

 

38

Item 1A. 

Risk Factors

 

38

Item 5. 

Other Information

 

39

Item 6. 

Exhibits

 

40

 

 

 

 

 

 

 

 

Signatures 

 

 

40

 

 

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2020

    

2019

Revenues

 

 

  

 

 

  

Casino

 

$

20,751

 

$

28,298

Food and beverage

 

 

6,990

 

 

8,658

Hotel

 

 

1,974

 

 

2,715

Other operations, including online/mobile sports operations

 

 

1,138

 

 

823

Net revenues

 

 

30,853

 

 

40,494

Operating costs and expenses

 

 

  

 

 

  

Casino

 

 

10,333

 

 

11,785

Food and beverage

 

 

7,136

 

 

9,369

Hotel

 

 

1,173

 

 

2,420

Other operations

 

 

562

 

 

769

Selling, general and administrative

 

 

12,981

 

 

12,660

Project development costs

 

 

56

 

 

133

Depreciation and amortization

 

 

2,040

 

 

2,091

Gain on disposal of assets, net

 

 

 —

 

 

(1)

 

 

 

34,281

 

 

39,226

Operating (loss) income

 

 

(3,428)

 

 

1,268

Other (expense) income

 

 

  

 

 

  

Interest expense, net of $220 and $47 capitalized

 

 

(2,491)

 

 

(2,703)

Adjustment to fair value of warrants

 

 

1,656

 

 

(40)

 

 

 

(835)

 

 

(2,743)

Loss before income taxes

 

 

(4,263)

 

 

(1,475)

Income tax provision

 

 

95

 

 

142

Net loss

 

$

(4,358)

 

$

(1,617)

 

 

 

 

 

 

 

Basic loss per share

 

$

(0.16)

 

$

(0.06)

Diluted loss per share

 

$

(0.22)

 

$

(0.06)

 

See condensed notes to consolidated financial statements.

3

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2020

    

2019

ASSETS

 

 

 

 

 

 

Current assets

 

 

  

 

 

  

Cash and equivalents

 

$

24,317

 

$

28,851

Restricted cash

 

 

 —

 

 

1,000

Accounts receivable, net of allowance of $149 and $141

 

 

524

 

 

2,206

Inventories

 

 

2,101

 

 

2,292

Prepaid expenses and other

 

 

3,200

 

 

3,340

 

 

 

30,142

 

 

37,689

 

 

 

 

 

 

 

Property and equipment, net

 

 

120,193

 

 

121,487

Operating lease right-of-use assets, net

 

 

19,674

 

 

19,171

Goodwill

 

 

21,286

 

 

21,286

Other intangible assets, net

 

 

11,033

 

 

11,056

Deposits and other

 

 

612

 

 

646

 

 

$

202,940

 

$

211,335

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

5,309

 

$

5,216

Accrued payroll and related

 

 

2,102

 

 

3,044

Other accrued expenses and other

 

 

8,580

 

 

10,613

Current portion of operating lease obligations

 

 

3,113

 

 

2,707

Current portion of finance lease obligation

 

 

473

 

 

448

Current portion of long-term debt

 

 

1,100

 

 

1,100

Common stock warrant liability

 

 

399

 

 

2,055

 

 

 

21,076

 

 

25,183

 

 

 

 

 

 

 

Operating lease obligations, net of current portion

 

 

16,794

 

 

16,706

Finance lease obligation, net of current portion

 

 

3,708

 

 

3,829

Long-term debt, net

 

 

102,874

 

 

102,923

Deferred income taxes, net

 

 

807

 

 

712

Contract liabilities, net of current portion

 

 

5,860

 

 

5,886

 

 

 

151,119

 

 

155,239

Commitments and contingencies (Note 8)

 

 

  

 

 

  

Stockholders’ equity

 

 

  

 

 

  

Common stock, $0.0001 par value, 100,000,000 shares authorized; 28,345,525 shares issued and 27,075,962 shares outstanding

 

 

 3

 

 

 3

Additional paid-in capital

 

 

64,485

 

 

64,402

Treasury stock, 1,269,563 common shares

 

 

(1,548)

 

 

(1,548)

Accumulated deficit

 

 

(11,119)

 

 

(6,761)

 

 

 

51,821

 

 

56,096

 

 

$

202,940

 

$

211,335

 

See condensed notes to consolidated financial statements.

4

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Total

 

 

Common Stock

 

Paid-in

 

Treasury Stock

 

Accumulated

 

Stockholders’

 

    

Shares

    

Dollars

    

Capital

    

Shares

    

Dollars  

    

Deficit

    

Equity

Balance, January 1, 2020

 

28,346

 

$

 3

 

$

64,402

 

1,270

 

$

(1,548)

 

$

(6,761)

 

$

56,096

Stock-based compensation

 

 —

 

 

 —

 

 

83

 

 —

 

 

 —

 

 

 —

 

 

83

Net loss

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(4,358)

 

 

(4,358)

Balance, March 31, 2020

 

28,346

 

$

 3

 

$

64,485

 

1,270

 

$

(1,548)

 

$

(11,119)

 

$

51,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Total

 

 

Common Stock

 

Paid-in

 

Treasury Stock

 

Accumulated

 

Stockholders’

 

    

Shares

    

Dollars

    

Capital

    

Shares

    

Dollars  

    

Deficit

    

Equity

Balance, January 1, 2019

 

28,289

 

$

 3

 

$

63,935

 

1,357

 

$

(1,654)

 

$

(939)

 

$

61,345

Exercise of stock options

 

26

 

 

 —

 

 

45

 

 —

 

 

 —

 

 

 —

 

 

45

Stock-based compensation

 

 —

 

 

 —

 

 

86

 

 —

 

 

 —

 

 

 —

 

 

86

Net loss

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(1,617)

 

 

(1,617)

Balance, March 31, 2019

 

28,315

 

$

 3

 

$

64,066

 

1,357

 

$

(1,654)

 

$

(2,556)

 

$

59,859

 

See condensed notes to consolidated financial statements.

5

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2020

    

2019

Cash flows from operating activities:

 

 

  

 

 

  

Net loss

 

$

(4,358)

 

$

(1,617)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

  

 

 

  

Depreciation and amortization

 

 

2,040

 

 

2,091

Amortization of debt issuance and warrant costs

 

 

225

 

 

190

Stock-based compensation

 

 

83

 

 

86

Change in fair value of stock warrants

 

 

(1,656)

 

 

40

Change in fair value of interest rate cap

 

 

 —

 

 

69

Gain on disposal of assets

 

 

 —

 

 

(1)

Increases and decreases in operating assets and liabilities:

 

 

  

 

 

  

Accounts receivable

 

 

1,682

 

 

486

Prepaid expenses, inventories and other

 

 

331

 

 

(37)

Deferred taxes

 

 

95

 

 

143

Deferred revenue

 

 

(25)

 

 

 —

Accounts payable and accrued expenses

 

 

(2,583)

 

 

(2,129)

Net cash used in operating activities

 

 

(4,166)

 

 

(679)

Cash flows from investing activities:

 

 

  

 

 

  

Purchase of property and equipment

 

 

(1,031)

 

 

(1,256)

Other

 

 

33

 

 

 4

Net cash used in investing activities

 

 

(998)

 

 

(1,252)

Cash flows from financing activities:

 

 

  

 

 

  

Payment of debt discount and issuance costs

 

 

 —

 

 

(3)

Repayment of Senior Secured Notes

 

 

(275)

 

 

(250)

Repayment of finance lease obligation

 

 

(95)

 

 

(125)

Proceeds from exercise of stock options

 

 

 —

 

 

45

Net cash used in financing activities

 

 

(370)

 

 

(333)

 

 

 

 

 

 

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(5,534)

 

 

(2,264)

Cash, cash equivalents and restricted cash, beginning of period

 

 

29,851

 

 

20,634

Cash, cash equivalents and restricted cash, end of period

 

$

24,317

 

$

18,370

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

  

 

 

  

Cash paid for interest, net of amounts capitalized

 

$

2,248

 

$

2,353

NON-CASH INVESTING ACTIVITIES:

 

 

  

 

 

  

Accounts payable related capital expenditures

 

$

80

 

$

459

 

See condensed notes to consolidated financial statements.

6

FULL HOUSE RESORTS, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. ORGANIZATION

Organization. Formed as a Delaware corporation in 1987, Full House Resorts, Inc. owns, leases, operates, develops, manages, and/or invests in casinos and related hospitality and entertainment facilities. References in this document to “Full House,” the “Company,” “we,” “our,” or “us” refer to Full House Resorts, Inc. and its subsidiaries, except where stated or the context otherwise indicates.

The Company currently operates five casinos; four are part of real estate that it owns or leases, and one is located within a hotel owned by a third party. The following table identifies the properties along with their respective dates of acquisition and locations:

 

 

 

 

 

 

 

    

Acquisition

    

 

Property

 

Date

 

 Location

Silver Slipper Casino and Hotel

 

2012

 

Hancock County, MS
(near New Orleans)

Bronco Billy’s Casino and Hotel

 

2016

 

Cripple Creek, CO
(near Colorado Springs)

Rising Star Casino Resort

 

2011

 

Rising Sun, IN
(near Cincinnati)

Stockman’s Casino

 

2007

 

Fallon, NV
(one hour east of Reno)

Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino)

 

2011

 

Incline Village, NV
(North Shore of Lake Tahoe)

 

The Company manages its casinos based on geographic regions within the United States. See Note 11 for further information.

 

 

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation. As permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s 2019 annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019.

The interim consolidated financial statements of the Company included herein reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of annualized results for an entire year.

The consolidated financial statements include the accounts of Full House and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Liquidity, Going Concern and Management Plans. The consolidated financial statements have been prepared on the going concern basis of accounting, assuming the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company’s casinos are its primary sources of income and operating cash flows and they are relied upon to remain in compliance with debt covenants and meet the Company’s obligations when due. As described in Note 5, the Senior Secured Notes agreement requires the Company to maintain a total leverage ratio covenant, which measures Consolidated EBITDA (as defined in the indenture) against outstanding debt. As detailed in Notes 2 and 14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, in March 2020, the Company temporarily suspended

7

operations at its casinos and hotels pursuant to orders from governmental authorities as a precautionary measure against the ongoing spread of a highly contagious coronavirus that was declared a pandemic (“COVID-19”) by the World Health Organization. The Company currently believes that its properties will reopen to the public according to the following schedule: by May 22, 2020 for the Silver Slipper Casino and Hotel; late May 2020 for Stockman’s Casino and Grand Lodge Casino; early June 2020 for Bronco Billy’s Casino and Hotel; and June 14, 2020 for Rising Star Casino Resort. As COVID-19 is dynamic, such planned opening dates are subject to change. Management believes it has sufficient resources to fund its currently-reduced operations, consisting principally of preservation of assets and a core staff necessary to plan for reopening, beyond the currently-mandated closure periods. However, management does not control and is not qualified to predict the length of the closure of its casinos and hotels due to the pandemic, nor the impact on business volumes once they are open.

As described in Notes 2 and 14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, a significant period of closure or significant declines in business volumes upon reopening would negatively impact our ability to remain in compliance with our debt covenants. In the event that the Company would fail to meet its debt covenants in the next twelve months from the issuance of the consolidated financial statements, the Company would either seek covenant waivers or attempt to amend its covenants, though there is no certainty that the Company would be successful in such efforts. For example, the Company’s lenders agreed to amend our leverage covenant for the period ended March 31, 2020, and the parties collectively continue to discuss amending covenants for future quarters. ASC 205-40, Going Concern, calls for management to evaluate whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the financial statements are issued. Because of the length of this look-forward period and the substantial items that are outside of its control, and despite its intent and best efforts to overcome the challenges in the current environment, management concluded that there is substantial doubt as to the Company’s ability to continue as a going concern. The Company is attempting to mitigate the impacts of COVID-19 on the Company through the plans described above. The consolidated financial statements do not include adjustments that might result from the outcome of this uncertainty.

Fair Value and the Fair Value Input Hierarchy. Fair value measurements affect the Company’s accounting for net assets acquired in acquisition transactions and certain financial assets and liabilities, such as its interest rate cap (“Interest Rate Cap”) agreement and common stock warrant liability. Fair value measurements are also used in the Company’s periodic assessments of long-lived tangible and intangible assets for possible impairment, including for property and equipment, goodwill, and other intangible assets. Fair value is defined as the expected price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

GAAP categorizes the inputs used for fair value into a three-level hierarchy:

·

Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities;

·

Level 2: Comparable inputs other than quoted prices that are observable for similar assets or liabilities in less active markets; and

·

Level 3: Unobservable inputs which may include metrics that market participants would use to estimate values, such as revenue and earnings multiples and relative rates of return.

The Company utilizes Level 2 inputs when measuring the fair value of its Interest Rate Cap (see Note 5).

The Company utilizes Level 3 inputs when measuring the fair value of net assets acquired in business combination transactions, subsequent assessments for impairment, and most financial instruments, including but not limited to the estimated fair value of common stock warrants at issuance and for recurring changes in the related warrant liability (see Note 6).

Cash Equivalents and Restricted Cash.  Cash equivalents include cash involved in operations and cash in excess of daily requirements that is invested in highly liquid, short-term investments with initial maturities of three months or less when purchased.

Restricted cash balances were funds received from certain sports wagering agreements that had not commenced and were contractually required to be separated from the Company’s operating cash. In March 2020, such cash was no longer categorized as restricted, as the Company was approved for its “master license” for sports betting by the Colorado Limited Gaming Control Commission on March 19, 2020.

8

Cash, cash equivalents and restricted cash consisted of the following:

 

 

 

 

 

 

 

 

(In thousands)

 

 

March 31, 

 

December 31, 

 

    

    

2020

    

2019

Cash and equivalents

 

 

$

24,317

 

$

28,851

Restricted cash

 

 

 

 —

 

 

1,000

 

 

 

$

24,317

 

$

29,851

 

Revenue Recognition of Accrued Club Points and Deferred Revenues

Accrued Club Points: Operating Revenues and Related Costs and Expenses. The Company’s revenues consist primarily of casino gaming, food and beverage, hotel, and other revenues (such as entertainment). The majority of the Company’s revenues are derived from casino gaming, principally slot machines.

Gaming revenue is the difference between gaming wins and losses, not the total amount wagered. The Company accounts for its gaming transactions on a portfolio basis as such wagers have similar characteristics and it would not be practical to view each wager on an individual basis.

The Company sometimes provides discretionary complimentary goods and services (“discretionary comps”). For these types of transactions, the Company allocates revenue to the department providing the complimentary goods or services based upon its estimated standalone selling price, offset by a reduction in casino revenues.

Many of the Company’s customers choose to earn points under its customer loyalty programs. As points are accrued, the Company defers a portion of its gaming revenue based on the estimated standalone value of loyalty points being earned by the customer. The standalone value of loyalty points is derived from the retail value of food, beverages, hotel rooms, and other goods or services for which such points may be redeemed. A liability related to these customer loyalty points is recorded, net of estimated breakage and other factors, until the customer redeems these points, primarily for “free casino play/cash back,” complimentary dining, or hotel stays. Such liabilities were approximately $1.4 million each for March 31, 2020 and December 31, 2019. Upon redemption, the related revenue is recognized at retail value within the department providing the goods or services.

Revenue for food and beverage, hotel, and other revenue transactions is typically the net amount collected from the customer for such goods and services, plus the retail value of (i) discretionary comps and (ii) comps provided in return for redemption of loyalty points. The Company records such revenue as the good or service is transferred to the customer. Additionally, the Company may collect deposits in advance for future hotel reservations or entertainment, among other services, which represent obligations to the Company until the service is provided to the customer.

Deferred Revenues: Market Access Fees from Sports Wagering Agreements. These liabilities were created in the third quarter of 2019 when the Company entered into several agreements with various unaffiliated companies allowing for online/mobile sports wagering within Indiana and Colorado, as well as on-site sports wagering at Rising Star Casino Resort and at Bronco Billy’s Casino and Hotel (the “Sports Agreements”). As part of these longer-term Sports Agreements, the Company received one-time market access fees in cash, which were recorded as a long-term liability in the same amount and will be recognized as revenue ratably over the initial term length of 10 years, beginning with the commencement of operations. The current and noncurrent portions of the deferred revenues balance totaling $5.96 million for March 31, 2020 is included with “Other accrued expenses and other” and  “Contract liabilities, net of current portion” on the consolidated balance sheets, respectively. Of the Company’s Sports Agreements, on-site sports wagering commenced at Rising Star in the fourth quarter of 2019, as did one of the Company’s three mobile sports wagering websites in Indiana.

Income Taxes. For interim income tax reporting for the three-months ended March 31, 2020, the Company estimates its annual effective tax rate and applies it to its year-to-date pretax income or loss.

9

Reclassifications. The Company made certain minor financial statement presentation reclassifications to prior-period amounts to conform to the current-period presentation. Such reclassifications had no effect on the previously reported results of operations or financial position.

Earnings (Loss) Per Share. Earnings (loss) per share is net income (loss) applicable to common stock divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional dilutive effects for all potentially-dilutive securities, including common stock options and warrants, using the treasury stock method.

Leases. The Company determines if a contract is or contains a lease at inception or modification of the agreement. A contract is or contains a lease if there are identified assets and the right to control the use of an identified asset is conveyed for a period of time in exchange for consideration. Control over the use of the identified asset means that the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. ASC 842 requires a dual approach for lessee accounting under which a lessee would classify and account for leases as either finance leases or operating leases, both of which result in the lessee recognizing a right-of-use (“ROU”) asset and a corresponding lease liability on the balance sheet, as measured on a discounted basis for leases with terms greater than a year. For finance leases, the lessee will recognize interest expense associated with the lease liability and depreciation expense associated with the ROU asset; for operating leases, the lessee will recognize straight-line rent expense.

The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less. However, costs related to short-term leases with terms greater than one month, which the Company deems material, are disclosed as a component of lease expenses when applicable. Additionally, the Company accounts for new and existing leases containing both lease and non-lease components (“embedded leases”) together as a single lease component by asset class for gaming-related equipment; therefore, the Company does not allocate contract consideration to the separate lease and non-lease components based on their relative standalone prices.

Finance and operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate as estimated by third-party valuation specialists in determining the present value of future payments. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

 

See Note 3 below regarding lease guidance relief that the Company has taken as they relate to COVID-19. 

 

Recently Issued Accounting Standards. The Company believes that there are no other recently-issued accounting standards not yet effective that are currently likely to have a material impact on its financial statements.

 

 

3. LEASES

The Company has no material leases in which it is the lessor. As lessee, the Company has one finance lease for a hotel and various operating leases for land, casino and office space, equipment, buildings, and signage. The Company’s lease terms, including extensions, range from one month to approximately 38 years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants, but the land lease at Silver Slipper does include contingent rent as further discussed below.

As a result of COVID-19, the Financial Accounting Standards Board (“FASB”), which governs U.S. GAAP, has offered companies the accounting election to apply guidance relief relating to lease concessions for business interruptions brought on by government-mandated closures. Normally, such rent deferments or forgiveness of certain payments that have been granted outside the original contract terms would trigger lease remeasurements. However, without relief in applying the lease accounting guidance, these modifications in terms would require evaluations that would be considered both costly and complex for certain companies. Rather than analyzing each lease contract individually, companies can choose on a reasonable basis to either: (1) apply the modification framework for these concessions in accordance with the applicable codification (see Note 2) 

10

to calculate lease remeasurements, or (2) forgo such remeasurements and account for the concessions as if they were made under the enforceable rights included in the original agreement.

In its efforts to preserve cash, the Company obtained rent concessions as a direct result of business disruptions from COVID-19 for certain material leases, as further discussed below and in Note 12. In summary, the Company has elected to apply guidance relief as granted by FASB for rent deferments as these deferrals of payments only affect the timing of payments; the total rent amounts paid over the course of the original contract remain the same. As such, the Company will continue to accrue for related lease expenses during the deferral period and forgo remeasurement of those leases. In contrast, the Company did not apply the aforementioned election for the rent forgiveness that was granted for the land lease at Silver Slipper, since the amounts paid over the remaining term of the contract reflect an actual reduction from its original lease measurement.

Operating Leases

Silver Slipper Casino Land Lease through April 2058 and Options to Purchase. In 2004, the Company’s subsidiary, Silver Slipper Casino Venture, LLC, entered into a land lease with Cure Land Company, LLC for approximately 31 acres of marshlands and a seven-acre parcel on which the Silver Slipper Casino and Hotel is situated. The agreement includes fixed, base monthly payments of $77,500 plus contingent rents of 3% of monthly gross gaming revenue (as defined in the lease) in excess of $3.65 million, with no scheduled base rent increases through the remaining lease term ending in 2058.

Effective March 2020, the Company later executed a fourth amendment to the original lease with the landlord, which granted a waiver of base rent for April and May of 2020. With such abatement totaling $155,000 of undiscounted cash, the Company chose to remeasure this lease in order to more fairly represent the reduction in payments, as this was the only material lease in which the Company was able to obtain rent forgiveness to date. This amendment also delays the beginning of the Company’s purchase option period for the leased land. The Company may exercise its purchase option from April 1, 2022 (as amended) through October 1, 2027, for $15.5 million plus a seller-retained interest in Silver Slipper Casino and Hotel’s operations of 3% of net income (as defined) for 10 years following the purchase date.

In the event that the Company sells or transfers either (i) substantially all of the assets of Silver Slipper Casino Venture, LLC, or (ii) its membership interests in Silver Slipper Casino Venture, LLC in its entirety, the purchase price will increase to $17.1 million, plus the retained interest mentioned above. In either case, the Company also has an option to purchase a four-acre portion from the total 38 acres of leased land for $2.0 million in connection with the development of an owned hotel, which may be exercised at any time and would accordingly reduce the purchase price of the remaining land by $2.0 million. Following a buy-out of the lease, the property would have to purchase or otherwise provide for its drinking water, which is currently provided by the landlord as part of the lease.

Bronco Billy’s Lease through January 2035 and Option to Purchase. Bronco Billy’s leases certain parking lots and buildings, including a portion of the hotel and casino, under a long-term lease. The lease term includes six renewal options in three-year increments to 2035. Bronco Billy’s exercised its first renewal option through January 2020, and currently pays $30,000 per month in rent. In May 2019, Bronco Billy’s also exercised its second renewal option to extend the lease term through January 31, 2023, which will increase the monthly rent to $32,500 beginning in February 2021. The lease also contains a $7.6 million purchase option exercisable at any time during the lease term, or as extended, and a right of first refusal on any sale of the property. See Note 12 regarding concessions granted for this lease, which are effective in the second quarter of 2020.

Christmas Casino at Bronco Billy’s through August 2021 and Option to Purchase. As part of the Bronco Billy’s expansion, the Company leased a closed casino in August 2018 and opened it as the rebranded Christmas Casino in November 2018. The lease includes a minimum three-year term with annual lease payments of $0.2 million, and can be extended an additional two years with annual lease payments of $0.3 million. The Company can also purchase the casino at any time during the lease term, or as extended. The purchase price is $2.6 million if bought by October 31, 2020, increasing by $0.1 million on each anniversary thereafter up to $2.8 million. No concession was granted for this lease to date.

Grand Lodge Casino Lease through August 2023. The Company’s subsidiary, Gaming Entertainment (Nevada), LLC, has a lease with Hyatt Equities, L.L.C. (“Hyatt”) to operate the Grand Lodge Casino. The lease is collateralized by the Company’s interests under the lease and property (as defined in the lease) and is subordinate to the liens of the senior secured notes due 2024 (see Note 5). Hyatt currently has an option to purchase the Company’s leasehold interest and related operating assets of

11

the Grand Lodge Casino, subject to assumption of applicable liabilities. The option price is an amount equal to the Grand Lodge Casino’s positive working capital, plus Grand Lodge Casino’s earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the twelve-month period preceding the acquisition (or pro-rated if less than twelve months remain on the lease), plus the fair market value of the Grand Lodge Casino’s personal property. The current monthly rent of $166,667 is applicable through the remaining lease term ending in August 2023. No concession was granted for this lease to date.

Corporate Office Lease through January 2025. In June 2017, the Company leased 4,479 square feet of office space in Las Vegas, Nevada. Annual rent is approximately $0.2 million and the term of the office lease expires in January 2025. No concession was granted for this lease to date.

Finance Lease

Rising Star Casino Hotel Lease through October 2027 and Option to Purchase. The Company’s Indiana subsidiary, Gaming Entertainment (Indiana) LLC, leases a 104‑room hotel at Rising Star Casino Resort. At any time during the lease term, the Company has the option to purchase the hotel at a price based upon the project’s actual cost of $7.7 million (see Note 4), reduced by the cumulative principal payments made by the Company during the lease term. At March 31, 2020, such net amount was $4.2 million. Upon expiration of the lease term in October 2027, (i) the landlord has the right to sell the hotel to the Company, and (ii) the Company has the option to purchase the hotel. In either case, the purchase price is $1 plus closing costs. See Note 12 regarding concessions granted for this lease, which are effective in the second quarter of 2020.

Leases recorded on the balance sheet consist of the following:

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases

    

Balance Sheet Classification

    

March 31, 2020

 

December 31, 2019

Assets

 

  

 

 

  

 

 

  

Operating lease assets

   

Operating Lease Right-of-Use Assets, Net

   

$

19,674

 

$

19,171

Finance lease assets

 

Property and Equipment, Net(1)

 

 

4,997

 

 

5,037

Total lease assets

 

  

 

$

24,671

 

$

24,208

 

 

 

 

 

 

 

 

 

Liabilities

 

  

 

 

  

 

 

  

Current

 

  

 

 

  

 

 

  

Operating

 

Current Portion of Operating Lease Obligations

 

$

3,113

 

$

2,707

Finance

 

Current Portion of Finance Lease Obligation

 

 

473

 

 

448

Noncurrent

 

  

 

 

 

 

 

 

Operating

 

Operating Lease Obligations, Net of Current Portion

 

 

16,794

 

 

16,706

Finance

 

Finance Lease Obligation, Net of Current Portion

 

 

3,708

 

 

3,829

Total lease liabilities

 

  

 

$

24,088

 

$

23,690

 

(1)Finance lease assets are recorded net of accumulated amortization of $2.7 million as of March 31, 2020.

 

 

12

The components of lease expense are as follows:

 

 

 

 

 

 

 

 

 

(In thousands)

    

 

    

Three Months Ended

 

 

 

 

March 31, 

Lease Costs

 

Statement of Operations Classification

 

2020

 

2019

Operating leases:

 

  

 

 

  

 

 

  

Fixed/base rent

 

Selling, General and Administrative Expenses

 

$

1,200

 

$

960

Variable payments

 

Selling, General and Administrative Expenses

 

 

154

 

 

184

Finance lease:

 

  

 

 

  

 

 

  

Amortization of leased assets

 

Depreciation and Amortization

 

 

40

 

 

40

Interest on lease liabilities

 

Interest Expense, Net

 

 

32

 

 

54

Total lease costs

 

 

 

$

1,426

 

$

1,238

 

Maturities of lease liabilities as of March 31, 2020 are summarized as follows:

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

    

Operating

    

Financing

Year Ending December 31, 

 

Leases

 

Lease(1)

2020 (excluding the three months ended March 31, 2020)

 

$

3,451

 

$

488

2021

 

 

4,684

 

 

652

2022

 

 

4,468

 

 

652

2023

 

 

2,876

 

 

652

2024

 

 

1,135

 

 

652

Thereafter

 

 

31,017

 

 

1,847

Total future minimum lease payments

 

 

47,631

 

 

4,943

Less: Amount representing interest

 

 

(27,724)

 

 

(762)

Present value of lease liabilities

 

 

19,907

 

 

4,181

Less: Current lease obligations

 

 

(3,113)

 

 

(473)

Long-term lease obligations

 

$

16,794

 

$

3,708

 

(1)The Company’s only material finance lease is at Rising Star Casino Resort for a 104‑room hotel.

 

Other information related to lease term and discount rate is as follows:

 

 

 

 

 

 

 

Lease Term and Discount Rate

    

March 31, 2020

 

December 31, 2019

Weighted-average remaining lease term

 

  

 

 

  

 

Operating leases

 

19.3

years

 

20.2

years

Finance lease

 

7.5

years

 

7.8

years

Weighted-average discount rate

 

  

 

 

  

 

Operating leases(1)

 

9.38

%

 

9.40

%

Finance lease

 

4.50

%

 

4.50

%

 

(1)Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.

13

Supplemental cash flow information related to leases is as follows:

 

 

 

 

 

 

 

(In thousands)

    

Three Months Ended

 

 

March 31, 

Cash paid for amounts included in the measurement of lease liabilities:

 

2020

 

2019

Operating cash flows for operating leases

 

$

1,209

 

$

961

Operating cash flows for finance lease

 

$

32

 

$

54

Financing cash flows for finance lease

 

$

95

 

$

125

 

 

 

 

4. PROPERTY AND EQUIPMENT

Property and equipment, including finance lease assets, consists of the following:

 

 

 

 

 

 

 

(In thousands)

 

March 31, 

 

December 31, 

 

 

2020

 

2019

Land and improvements

 

$

16,144

 

$

16,144

Buildings and improvements

 

 

107,139

 

 

106,946

Furniture and equipment

 

 

48,138

 

 

47,886

Finance lease assets (see Note 3)

 

 

7,726

 

 

7,726

Construction in progress

 

 

11,112

 

 

10,856

 

 

 

190,259

 

 

189,558

Less: Accumulated depreciation

 

 

(70,066)

 

 

(68,071)

 

 

$

120,193

 

$

121,487

 

 

 

5. LONG-TERM DEBT

Long-term debt, related discounts and issuance costs consist of the following:

 

 

 

 

 

 

 

(In thousands)

 

March 31, 

 

December 31, 

 

 

2020

 

2019

Senior Secured Notes

 

$

107,650

 

$

107,925

Less: Unamortized discounts and debt issuance costs

 

 

(3,676)

 

 

(3,902)

 

 

 

103,974

 

 

104,023

Less: Current portion of long-term debt

 

 

(1,100)

 

 

(1,100)

 

 

$

102,874

 

$

102,923

 

Senior Secured Notes and Waiver. On April 28, 2020, the Company executed the Third Amendment to Indenture dated as of April 28, 2020 (the “Amendment”) to amend the Indenture dated as of February 2, 2018 (as amended and supplemented, the “Indenture”), which governs the senior secured notes due 2024 issued by the Company in the aggregate principal amount of $110.0 million (collectively, the “Notes”). Reflecting the impact of the temporary closures of the Company’s properties due to COVID-19, the Amendment (i) deleted the total leverage ratio covenant as of March 31, 2020, and (ii) resolved any potential ambiguities regarding a qualified auditor opinion in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company paid an amendment fee of 0.35%, or $376,775 to the holders of its Notes, based on the outstanding balance of the aggregate principal amount as of March 31, 2020. Additionally, as set forth below, the Amendment increased the optional premiums by 15 basis points, plus accrued and applicable unpaid interest, if the Company chooses to redeem all or a part of the Notes prior to maturity:

 

 

 

 

Redemption Periods

    

Percentage Premium

On February 2, 2020 to February 1, 2021

 

1.65

%

On February 2, 2021 to February 1, 2022

 

0.65

%

On or after February 2, 2022

 

0.15

%

14

The Notes bear interest at the greater of the three-month London Interbank Offered Rate (“LIBOR”) or 1.0%, plus a margin rate of 7.0%. Interest on the Notes is payable quarterly in arrears, on March 31, June 30, September 30 and December 31 of each year until the Notes mature on February 2, 2024. On each interest payment date, the Company is required to make principal payments of $275,000 with a balloon payment for the remaining $103.7 million due upon maturity. Excluding the exercise of any optional early redemptions as detailed above, this increase to the original balloon payment of an additional $165,000 includes 0.15% applied to the aggregate principal amount of the Notes repaid according to the Amendment.

The Notes are collateralized by substantially all of the Company’s assets and are guaranteed by all of its material subsidiaries.

Interest Rate Cap Agreement. The Company maintains an Interest Rate Cap from Capital One, N.A. (“Capital One”) in order to manage expected interest rate increases on the Notes. The agreement is for a notional amount of $50 million and expires on March 31, 2021. The Interest Rate Cap has a strike rate of 3.00% and resets every three months at the end of March, June, September, and December. If the three-month LIBOR exceeds the strike rate at the end of any covered period, the Company will receive cash payments from Capital One. For details regarding fair value measurements, see Note 2.

Covenants. The Indenture governing the Notes contains customary representations and warranties, events of default, and positive and negative covenants, including financial covenants. The Company is required to maintain a total leverage ratio, which measures Consolidated EBITDA (as defined in the Indenture) against outstanding debt. The Company is allowed to deduct up to $15 million of its cash and equivalents (beyond estimated cash utilized in daily operations) in calculating the numerator of such ratio. The Amendment deleted the total leverage ratio covenant for the period ended March 31, 2020. For the remainder of the year, the total leverage ratio maximum is 5.75x through September 30, 2020 and 5.50x through December 31, 2020. Due to the impact of COVID-19, the Company is currently in discussions with its lenders regarding amendments with respect to leverage ratio covenants in future periods. However, there can be no assurances that the Company will remain in compliance with all covenants and/or that it would be successful in obtaining waivers or modifications in the event of noncompliance in the future.

 

6. COMMON STOCK WARRANT LIABILITY

As part of the Company’s former Second Lien Credit Facility, on May 13, 2016, the Company granted the Second Lien Credit Facility lenders 1,006,568 warrants, which have an exercise price of $1.67 and expire on May 13, 2026. The warrants also provide for redemption rights, preemptive rights under certain circumstances to maintain their ownership interest in the Company, piggyback registration rights and mandatory registration rights. In addition to a refinancing, the redemption rights allow the warrant-holders, at their option, to require the Company to repurchase all or a portion of the warrants upon the occurrence of certain events, including: (i) a liquidity event, as defined in the warrant purchase agreement, or (ii) the Company’s insolvency. The repurchase value is the 21‑day average price of the Company’s common stock at the time of such liquidity event, net of the warrant exercise price. If the redemption rights are exercised, the repurchase amount is payable by the Company in cash or through the issuance of an unsecured note with a four-year term and a minimum interest rate of 13.25%, as further defined in the warrant purchase agreement, and would be guaranteed by the Company’s subsidiaries. Alternatively, the warrant-holders may choose to have the Company register and sell the shares related to the warrants through a public stock offering.

The Company’s debt refinancing of the Second Lien Credit Facility during 2018 was considered a “triggering event” for the possible redemption or registration of the warrants. The Company’s warrant-holders have not yet requested the redemption or registration of their outstanding warrants, though they may do so on any six-month anniversary of the refinancing date prior to warrant expiration. Accordingly, the obligation is reflected as a current liability.

The Company measures the fair value of the warrants at each reporting period (see Note 2). At March 31, 2020, the estimated fair value was determined using the following assumptions:  an expected contractual term of 6.12 years, an expected stock price volatility rate of 58.85%, an expected dividend yield of 0%, and an expected risk-free interest rate of 0.47%.

 

15

7. INCOME TAXES

The Company’s effective income tax rate for the three-months ended March 31, 2020 and 2019 was (2.2%) and (9.6%), respectively. The Company’s tax rate differs from the statutory rate of 21.0% primarily due to the effects of valuation allowances against net deferred tax assets, as well as certain permanent item differences between tax and financial reporting purposes.

On March 18, 2020, the Families First Coronavirus Response Act (the “FFCR Act”), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) were each enacted in response to COVID-19. The FFCR Act and the CARES Act contain numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the use of net operating losses arising in taxable years beginning after December 31, 2017; however, these benefits do not impact the Company’s current tax provision.

 

 

8. COMMITMENTS AND CONTINGENCIES

Litigation

The Company is party to a number of pending legal proceedings related to matters that occurred in the normal course of business. Management does not expect that the outcome of any such proceedings, either individually or in the aggregate, will have a material effect on the Company’s financial position, results of operations and cash flows.

Options to Purchase or Lease Land

La Posada del Llano Racetrack Proposal in New Mexico. During July 2018, the Company paid $125,000 for options to purchase approximately 520 acres of adjoining land in Clovis, New Mexico as part of its racetrack casino proposal to the New Mexico Racing Commission. The proposal was in response to the New Mexico Racing Commission’s request for proposals related to the potential issuance of the state’s sixth racing license. During July 2019, the Company paid an additional $125,000 in total to renew these two options, as detailed below. In August 2019, the New Mexico Racing Commission announced that it would not issue the sixth racing license at this time, but may do so in the future. The New Mexico options consisted of:

·

A $75,000 option to purchase 200 acres of land, which ended on the earlier of either July 2019 or 60 days following the granting of the sixth license to conduct horseracing by the New Mexico Racing Commission and New Mexico Gaming Control Board (“License Award”) and all related approvals, permits, and other licenses. In July 2019, the Company extended the purchase option by one year for another $75,000 under the same terms. Prior to the end of this first option extension, the Company may extend the purchase option by one year for an additional $75,000 under the same terms. Additionally, prior to the end of this first extension period, or as further extended, the Company may purchase the land for $1.4 million, which can be reduced by the option payments.

·

A $50,000 option to purchase 320 acres of land, which ended on the earlier of either July 2019 or 60 days following the granting of the License Award and all related approvals, permits, and other licenses. In July 2019, the Company extended the purchase option by one year for another $50,000 under the same terms. Prior to the end of this option extension, the Company may purchase the land for $1.6 million, which can be reduced by the option payments.

 

16

9. EARNINGS (LOSS) PER SHARE

The table below reconciles basic and diluted loss per share of common stock:

 

 

 

 

 

 

(In thousands)

Three Months Ended March 31, 

 

2020

    

2019

Numerator:

 

  

 

 

  

Net loss - basic

$

(4,358)

 

$

(1,617)

Adjustment for assumed conversion of warrants

 

(1,656)

 

 

 —

Net loss - diluted

$

(6,014)

 

$

(1,617)

 

 

 

 

 

 

Denominator:

 

  

 

 

  

Weighted-average common and common share equivalents - basic

 

27,076

 

 

26,940

Potential dilution from assumed conversion of warrants

 

364

 

 

 —

Weighted-average common and common share equivalents - diluted

 

27,440

 

 

26,940

Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share

 

2,844

 

 

3,556

 

 

 

10. SHARE-BASED COMPENSATION

As of March 31, 2020, the Company had 489,635 share-based awards authorized by shareholders and available for grant from the 2015 Equity Incentive Plan (the “2015 Plan”).

The following table summarizes information related to the Company’s common stock options as of March 31, 2020:

 

 

 

 

 

 

 

    

 

    

Weighted

 

 

Number

 

Average

 

 

of Stock

 

Exercise

 

 

Options

 

Price

Options outstanding at January 1, 2020

 

2,844,405

 

$

1.71

Granted

 

 —

 

 

 —

Exercised

 

 —

 

 

 —

Canceled/Forfeited

 

 —

 

 

 —

Expired

 

 —

 

 

 —

Options outstanding at March 31, 2020

 

2,844,405

 

$

1.71

Options exercisable at March 31, 2020

 

2,211,671

 

$

1.57

 

Share-based compensation expense totaled $83,000 and $86,000 for the three-months ended March 31, 2020 and 2019, respectively.  As of March 31, 2020, there was approximately $0.4 million of unrecognized compensation cost related to unvested stock options previously granted that is expected to be recognized over a weighted-average period of approximately 1.9 years.

 

11. SEGMENT REPORTING AND DISAGGREGATED REVENUE

The Company manages its casinos based on geographic regions within the United States. The casino/resort operations include four segments:  Silver Slipper Casino and Hotel (Hancock County, Mississippi); Rising Star Casino Resort, consisting of Rising Star Casino Resort (Rising Sun, Indiana) and its ferry boat operations (connecting Rising Sun, Indiana with Boone County, Kentucky); Bronco Billy’s Casino and Hotel (including the Christmas Casino & Inn, both in Cripple Creek, Colorado); and the Northern Nevada segment, consisting of Grand Lodge Casino (Incline Village, Nevada) and Stockman’s Casino (Fallon, Nevada).

17

The Company utilizes Adjusted Property EBITDA as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, pre-opening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.

The following tables present the Company’s segment information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended March 31, 2020

 

    

Silver

    

 

 

    

Bronco

    

 

 

    

 

 

    

 

 

 

 

Slipper

 

Rising Star

 

Billy’s

 

Northern

 

 

 

 

 

 

 

 

Casino

 

Casino

 

Casino

 

Nevada

 

 

 

 

 

 

 

 

and Hotel

 

Resort

 

and Hotel

 

Casinos

 

Corporate

 

Total

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

$

9,070

 

$

5,028

 

$

4,005

 

$

2,648

 

$

 —

 

$

20,751

Food and beverage

 

 

4,679

 

 

1,153

 

 

767

 

 

391

 

 

 —

 

 

6,990

Hotel

 

 

969

 

 

858

 

 

147

 

 

 —

 

 

 —

 

 

1,974

Other operations

 

 

374

 

 

632

 

 

63

 

 

69

 

 

 —

 

 

1,138

 

 

$

15,092

 

$

7,671

 

$

4,982

 

$

3,108

 

$

 —

 

$

30,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Property EBITDA

 

$

1,831

 

$

(1,093)

 

$

(478)

 

$

(390)

 

$

 —

 

$

(130)

Other operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,040)

Corporate expenses