Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FULL HOUSE RESORTS INC | |
Entity Central Index Key | 0000891482 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,105,728 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Year End | 2020 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Net revenues | $ 14,511 | $ 41,663 | $ 45,364 | $ 82,157 |
Operating costs and expenses | ||||
Selling, general and administrative | 9,796 | 13,027 | 22,777 | 25,687 |
Project development costs | 259 | 142 | 315 | 275 |
Depreciation and amortization | 1,980 | 2,083 | 4,020 | 4,174 |
Gain on disposal of assets, net | 439 | (4) | 439 | (5) |
Total operating costs and expenses | 18,677 | 39,740 | 52,958 | 78,966 |
Operating (loss) income | (4,166) | 1,923 | (7,594) | 3,191 |
Other (expense) income | ||||
Interest expense, net of $220 and $47 capitalized | (2,447) | (2,931) | (4,938) | (5,634) |
Adjustment to fair value of warrants | (94) | 141 | 1,562 | 101 |
Total other (expense) income | (2,541) | (2,790) | (3,376) | (5,533) |
Loss before income taxes | (6,707) | (867) | (10,970) | (2,342) |
Income tax provision | (4) | 143 | 91 | 285 |
Net loss | $ (6,703) | $ (1,010) | $ (11,061) | $ (2,627) |
Basic loss per share (in dollars per share) | $ (0.25) | $ (0.04) | $ (0.41) | $ (0.10) |
Diluted loss per share (in dollars per share) | $ (0.25) | $ (0.04) | $ (0.46) | $ (0.10) |
Casino | ||||
Revenues | ||||
Net revenues | $ 10,955 | $ 28,450 | $ 31,706 | $ 56,748 |
Operating costs and expenses | ||||
Costs and expenses | 3,470 | 11,592 | 13,803 | 23,377 |
Food and beverage | ||||
Revenues | ||||
Net revenues | 1,994 | 8,863 | 8,984 | 17,521 |
Operating costs and expenses | ||||
Costs and expenses | 2,083 | 9,449 | 9,219 | 18,818 |
Hotel | ||||
Revenues | ||||
Net revenues | 719 | 3,051 | 2,693 | 5,766 |
Operating costs and expenses | ||||
Costs and expenses | 377 | 2,379 | 1,550 | 4,799 |
Other operations, including online/mobile sports operations | ||||
Revenues | ||||
Net revenues | 843 | 1,299 | 1,981 | 2,122 |
Operating costs and expenses | ||||
Costs and expenses | $ 273 | $ 1,072 | $ 835 | $ 1,841 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENT OF OPERATIONS | ||||
Interest costs capitalized | $ 211 | $ 83 | $ 431 | $ 130 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and equivalents | $ 26,495 | $ 28,851 |
Restricted cash | 1,000 | |
Accounts receivable, net of allowance of $149 and $141 | 1,784 | 2,206 |
Inventories | 1,780 | 2,292 |
Prepaid expenses and other | 3,298 | 3,340 |
Total current assets | 33,357 | 37,689 |
Other long-term assets | ||
Property and equipment, net | 118,199 | 121,487 |
Operating lease right-of-use assets, net | 18,917 | 19,171 |
Goodwill | 21,286 | 21,286 |
Other intangible assets, net | 11,010 | 11,056 |
Deposits and other | 622 | 646 |
Total Assets | 203,391 | 211,335 |
Current liabilities | ||
Accounts payable | 7,284 | 5,216 |
Accrued payroll and related | 2,532 | 3,044 |
Other accrued expenses and other | 8,878 | 10,613 |
Current portion of operating lease obligations | 3,166 | 2,707 |
Current portion of finance lease obligation | 481 | 448 |
Current portion of long-term debt | 3,253 | 1,100 |
Common stock warrant liability | 493 | 2,055 |
Total current liabilities | 26,087 | 25,183 |
Operating lease obligations, net of current portion | 16,130 | 16,706 |
Finance lease obligation, net of current portion | 3,546 | 3,829 |
Long-term debt, net | 105,876 | 102,923 |
Deferred income taxes, net | 803 | 712 |
Deferred revenues, net of current portion | 5,728 | 5,886 |
Total liabilities | 158,170 | 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 | 64,588 | 64,402 |
Treasury stock, 1,269,563 common shares | (1,548) | (1,548) |
Accumulated deficit | (17,822) | (6,761) |
Total stockholders' equity | 45,221 | 56,096 |
Total liabilities and stockholders' equity | $ 203,391 | $ 211,335 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 199 | $ 141 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 28,359,397 | 28,345,525 |
Common stock, shares outstanding (in shares) | 27,089,834 | 27,075,962 |
Treasury stock, common shares (in shares) | 1,269,563 | 1,269,563 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 3 | $ 63,935 | $ (1,654) | $ (939) | $ 61,345 |
Balance (in shares) at Dec. 31, 2018 | 28,289 | 1,357 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 45 | 45 | |||
Exercise of stock options (in shares) | 26 | ||||
Stock-based compensation | 86 | 86 | |||
Net loss | (1,617) | (1,617) | |||
Balance at Mar. 31, 2019 | $ 3 | 64,066 | $ (1,654) | (2,556) | 59,859 |
Balance (in shares) at Mar. 31, 2019 | 28,315 | 1,357 | |||
Balance at Dec. 31, 2018 | $ 3 | 63,935 | $ (1,654) | (939) | 61,345 |
Balance (in shares) at Dec. 31, 2018 | 28,289 | 1,357 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (2,627) | ||||
Balance at Jun. 30, 2019 | $ 3 | 64,173 | $ (1,654) | (3,566) | 58,956 |
Balance (in shares) at Jun. 30, 2019 | 28,337 | 1,357 | |||
Balance at Mar. 31, 2019 | $ 3 | 64,066 | $ (1,654) | (2,556) | 59,859 |
Balance (in shares) at Mar. 31, 2019 | 28,315 | 1,357 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock grants | 48 | 48 | |||
Stock grants (in shares) | 22 | ||||
Stock-based compensation | 59 | 59 | |||
Net loss | (1,010) | (1,010) | |||
Balance at Jun. 30, 2019 | $ 3 | 64,173 | $ (1,654) | (3,566) | 58,956 |
Balance (in shares) at Jun. 30, 2019 | 28,337 | 1,357 | |||
Balance at Dec. 31, 2019 | $ 3 | 64,402 | $ (1,548) | (6,761) | 56,096 |
Balance (in shares) at Dec. 31, 2019 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 83 | 83 | |||
Net loss | (4,358) | (4,358) | |||
Balance at Mar. 31, 2020 | $ 3 | 64,485 | $ (1,548) | (11,119) | 51,821 |
Balance (in shares) at Mar. 31, 2020 | 28,346 | 1,270 | |||
Balance at Dec. 31, 2019 | $ 3 | 64,402 | $ (1,548) | (6,761) | 56,096 |
Balance (in shares) at Dec. 31, 2019 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (11,061) | ||||
Balance at Jun. 30, 2020 | $ 3 | 64,588 | $ (1,548) | (17,822) | 45,221 |
Balance (in shares) at Jun. 30, 2020 | 28,359 | 1,270 | |||
Balance at Mar. 31, 2020 | $ 3 | 64,485 | $ (1,548) | (11,119) | 51,821 |
Balance (in shares) at Mar. 31, 2020 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock grants | $ 13 | 24 | 24 | ||
Stock-based compensation | 79 | 79 | |||
Net loss | (6,703) | (6,703) | |||
Balance at Jun. 30, 2020 | $ 3 | $ 64,588 | $ (1,548) | $ (17,822) | $ 45,221 |
Balance (in shares) at Jun. 30, 2020 | 28,359 | 1,270 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (11,061) | $ (2,627) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,020 | 4,174 |
Amortization of debt issuance and warrant costs | 496 | 598 |
Stock-based compensation | 186 | 193 |
Change in fair value of stock warrants | (1,562) | (101) |
Change in fair value of interest rate cap | 0 | 82 |
Gain on disposal of assets | 439 | (5) |
Increases and decreases in operating assets and liabilities: | ||
Accounts receivable | 422 | (41) |
Prepaid expenses, inventories and other | 554 | (2,098) |
Deferred taxes | 91 | 285 |
Deferred revenue | (58) | 0 |
Accounts payable and accrued expenses | 112 | (2,205) |
Net cash used in operating activities | (6,361) | (1,745) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,375) | (3,056) |
Other | 22 | (1) |
Net cash used in investing activities | (1,353) | (3,057) |
Cash flows from financing activities: | ||
Proceeds from Senior Secured Notes borrowings | 0 | 10,000 |
Proceeds from CARES Act unsecured loans | 5,606 | 0 |
Payment of debt discount and issuance costs | (447) | (1,181) |
Repayment of Senior Secured Notes | (550) | (525) |
Repayment of finance lease obligation | (251) | (263) |
Proceeds from exercise of stock options | 0 | 45 |
Net cash used in financing activities | 4,358 | 8,076 |
Net decrease in cash, cash equivalents and restricted cash | (3,356) | 3,274 |
Cash, cash equivalents and restricted cash, beginning of period | 29,851 | 20,634 |
Cash, cash equivalents and restricted cash, end of period | 26,495 | 23,908 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 4,336 | 4,797 |
NON-CASH INVESTING ACTIVITIES: | ||
Accounts payable related capital expenditures | $ 137 | $ 502 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2020 | |
ORGANIZATION | |
ORGANIZATION | 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 Bronco Billy’s Casino and Hotel 2016 Cripple Creek, CO Rising Star Casino Resort 2011 Rising Sun, IN Stockman’s Casino 2007 Fallon, NV Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino) 2011 Incline Village, NV The Company manages its casinos based on geographic regions within the United States. See Note 11 for further information. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 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, the Company temporarily suspended operations at its casinos and hotels in March 2020 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’s properties began reopening when permitted by local authorities, beginning with the Silver Slipper Casino and Hotel on May 21, 2020, Grand Lodge Casino and Stockman’s Casino on June 4, 2020, and Bronco Billy’s Casino and Hotel and Rising Star Casino Resort on June 15, 2020. The Company believes it has sufficient resources to fund its reopened operations through its current cash balances and the management of labor, marketing expenses, and capital expenditures. Also, as discussed herein, operating profits in June 2020 were higher than levels in June 2019. However, management does not control and is not qualified to predict the ongoing effects of the continuing pandemic. 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 could 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 June 30, 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 the Company’s 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. Cash, cash equivalents and restricted cash consisted of the following: (In thousands) June 30, December 31, 2020 2019 Cash and equivalents $ 26,495 $ 28,851 Restricted cash — 1,000 $ 26,495 $ 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,” complimentary dining, or hotel stays. Such liabilities were approximately $1.4 million each for June 30, 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 $5.93 million for June 30, 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 contracted mobile sports wagering websites in Indiana. In June of 2020, one of the Company’s three contracted mobile sports wagering websites in Colorado also commenced operations. Income Taxes. For interim income tax reporting for the three- and six-months ended June 30, 2020, the Company estimates its annual effective tax rate and applies it to its year-to-date pretax income or loss. 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. Accounting Standards Codification 842 (“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. 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. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
LEASES | |
LEASES | 3. LEASES The Company has no 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. 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. This amendment also restricts the Company’s purchase option period for the leased land, so that the Company may not exercise its purchase option until April 1, 2022. From such date through October 1, 2027, the Company can buy out this lease 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. 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. 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. 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 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. In July 2020, the Company executed a fifth amendment to the Hyatt lease that retroactively reduced rent amounts due during the closure period, specifically a 25% reduction in rent for March 2020 and a 50% reduction in rent for each of April and May of 2020. With such concessions totaling over $208,000 of undiscounted cash, the Company will remeasure this lease in the third quarter of 2020 to reflect the reduction in average monthly lease expenses. 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. 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 June 30, 2020, such net amount was $4.0 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. Leases recorded on the balance sheet consist of the following: (In thousands) Leases Balance Sheet Classification June 30, 2020 December 31, 2019 Assets Operating lease assets Operating Lease Right-of-Use Assets, Net $ 18,917 $ 19,171 Finance lease assets Property and Equipment, Net (1) 4,958 5,037 Total lease assets $ 23,875 $ 24,208 Liabilities Current Operating Current Portion of Operating Lease Obligations $ 3,166 $ 2,707 Finance Current Portion of Finance Lease Obligation 481 448 Noncurrent Operating Operating Lease Obligations, Net of Current Portion 16,130 16,706 Finance Finance Lease Obligation, Net of Current Portion 3,546 3,829 Total lease liabilities $ 23,323 $ 23,690 (1 ) Finance lease assets are recorded net of accumulated amortization of $2.8 million as of June 30, 2020. The components of lease expense are as follows: (In thousands) Three Months Ended Six Months Ended June 30, June 30, Lease Costs Statement of Operations Classification 2020 2019 2020 2019 Operating leases: Fixed/base rent Selling, General and Administrative Expenses $ 1,199 $ 958 $ 2,399 $ 1,918 Variable payments Selling, General and Administrative Expenses 4 171 158 355 Finance lease: Amortization of leased assets Depreciation and Amortization 39 39 79 79 Interest on lease liabilities Interest Expense, Net 62 52 94 106 Total lease costs $ 1,304 $ 1,220 $ 2,730 $ 2,458 Maturities of lease liabilities as of June 30, 2020 are summarized as follows: (In thousands) Operating Financing Years Ending December 31, Leases Lease (1) 2020 (excluding the six months ended June 30, 2020) $ 2,397 $ 272 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 46,577 4,727 Less: Amount representing interest (27,281) (700) Present value of lease liabilities 19,296 4,027 Less: Current lease obligations (3,166) (481) Long-term lease obligations $ 16,130 $ 3,546 (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 June 30, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases years years Finance lease years years Weighted-average discount rate Operating leases (1) % % Finance lease % % (1 ) Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019. Supplemental cash flow information related to leases is as follows: (In thousands) Six Months Ended June 30, Cash paid for amounts included in the measurement of lease liabilities: 2020 2019 Operating cash flows for operating leases $ 1,659 $ 1,928 Operating cash flows for finance lease $ 94 $ 106 Financing cash flows for finance lease $ 251 $ 263 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2020 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment, including finance lease assets, consists of the following: (In thousands) June 30, December 31, 2020 2019 Land and improvements $ 16,144 $ 16,144 Buildings and improvements 107,139 106,946 Furniture and equipment 48,260 47,886 Finance lease assets (see Note 3) 7,726 7,726 Construction in progress 10,916 10,856 190,185 189,558 Less: Accumulated depreciation (71,986) (68,071) $ 118,199 $ 121,487 |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2020 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 5. LONG-TERM DEBT Long-term debt, related discounts and issuance costs consist of the following: (In thousands) June 30, December 31, 2020 2019 Senior Secured Notes $ 107,375 $ 107,925 Unsecured Loans (CARES Act) 5,606 — Less: Unamortized discounts and debt issuance costs (3,852) (3,902) 109,129 104,023 Less: Current portion of long-term debt (3,253) (1,100) $ 105,876 $ 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 “Third 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 Third 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 the amendment date. Additionally, the Third 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, or at, maturity. On August 12, 2020, the Company executed the Fourth Amendment to Indenture dated as of August 12, 2020 (the “Fourth Amendment”) to amend the Indenture to the “Notes.” Reflecting the adverse impact on the Company’s business operations due to the ongoing COVID-19 pandemic, the Fourth Amendment (i) deleted the total leverage ratio covenant as of June 30, 2020, and (ii) permitted the incurrence of $5.6 million of unsecured loans under the CARES Act, as detailed below. The Company paid an amendment fee of 0.75%, or $805,313 to the holders of its Notes, based on the outstanding balance of the aggregate principal amount as of the amendment date. Additionally, the Fourth Amendment increased the optional premiums by 25 basis points, plus accrued and applicable unpaid interest, if the Company chooses to redeem all or a part of the Notes prior to, or at, maturity. The following table summarizes the current debt repayment premiums for the Notes: Redemption Periods Percentage Premium On February 2, 2020 to February 1, 2021 1.90 % On February 2, 2021 to February 1, 2022 0.90 % On or after February 2, 2022 0.40 % 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 $103.5 million due upon maturity. Additionally, excluding the exercise of any optional early redemptions, the Company will pay a debt redemption premium of $0.4 million at maturity, as required by the Third and Fourth Amendments and detailed in the table above. The Notes are collateralized by substantially all of the Company’s assets and are guaranteed by all of its material subsidiaries. Unsecured Loans Under the CARES Act. On May 8, 2020, two wholly-owned subsidiaries of the Company executed promissory notes (the “Promissory Notes”) evidencing unsecured loans in the aggregate amount of $5,606,200 through programs established under the CARES Act (the “Loans”) and administered by the U.S. Small Business Administration (the “SBA”). Such funds were principally used to rehire several hundred employees at Rising Star and Bronco Billy’s in advance of, and subsequent to, their reopenings in mid-June. The Loans were made through Zions Bancorporation, N.A. dba Nevada State Bank (the “Lender”), have a two-year term, bear interest at a rate of 1.00% per annum, and mature on May 3, 2022. Recently-passed legislation allows for the maturity date to potentially be extended to May 3, 2025. Monthly principal and interest payments are deferred for six months. Beginning in December 2020, the Company is required to make monthly payments of principal and interest to the Lender. The Loans may be prepaid at any time prior to maturity with no prepayment penalties. Such Loans may be forgiven, either in whole or in part, depending on the amount of such proceeds that are used for certain eligible expenses over a 24-week period, including primarily the payroll and health benefits of employees who might otherwise be without jobs or health benefits. There is no certainty that any or all of such Loans will be forgiven. Maturities of the unsecured loans as of June 30, 2020 are as follows: (In thousands) Unsecured For Years Ending December 31, Loans 2020 $ 282 2021 3,750 2022 1,574 $ 5,606 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) from its total debt when calculating the numerator of such ratio. The Third and Fourth Amendments deleted the total leverage ratio covenant for the periods ended March 31, 2020 and June 30, 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. |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY | 6 Months Ended |
Jun. 30, 2020 | |
COMMON STOCK WARRANT LIABILITY | |
COMMON STOCK WARRANT LIABILITY | 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 June 30, 2020, the estimated fair value was determined using the following assumptions: an expected contractual term of 5.87 years, an expected stock price volatility rate of 61.62%, an expected dividend yield of 0%, and an expected risk-free interest rate of 0.38%. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES The Company’s effective income tax rate for the three- and six-months ended June 30, 2020 was 0.1% and (0.8%), respectively, compared to an effective income tax rate of (16.5%) and (12.2%) for the corresponding prior-year periods. 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 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. In 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 (“RFP”). In July 2019, the Company paid an additional $125,000 to renew these land options. In August 2019, the New Mexico Racing Commission announced that it would not issue the sixth racing license at this time. Due to uncertainties surrounding the timing of the RFP process, as well as uncertainties created by the ongoing pandemic, the Company elected to let the New Mexico land options expire in July 2020. Accordingly, the Company wrote-off these option deposits totaling $250,000 in the second quarter of 2020, reflected on the income statement under “Project development costs.” |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 9. EARNINGS (LOSS) PER SHARE The table below reconciles basic and diluted loss per share of common stock: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss - basic $ (6,703) $ (1,010) $ (11,061) $ (2,627) Adjustment for assumed conversion of warrants — (141) (1,562) (101) Net loss - diluted $ (6,703) $ (1,151) $ (12,623) $ (2,728) Denominator: Weighted-average common and common share equivalents - basic 27,079 26,969 27,077 26,955 Potential dilution from assumed conversion of warrants — 217 182 232 Weighted-average common and common share equivalents - diluted 27,079 27,186 27,259 27,187 Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share 4,204 2,699 3,198 2,699 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2020 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION As of June 30, 2020, the Company had 122,413 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 June 30, 2020: Weighted Number Average of Stock Exercise Options Price Options outstanding at January 1, 2020 2,844,405 $ 1.71 Granted 362,000 1.73 Exercised — — Canceled/Forfeited (8,650) 2.23 Expired — — Options outstanding at June 30, 2020 3,197,755 $ 1.71 Options exercisable at June 30, 2020 2,369,088 $ 1.61 Share-based compensation expense totaled $103,000 and $107,000 for the three-months ended June 30, 2020 and 2019, respectively, and $186,000 and $193,000 for the six-months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was approximately $0.7 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 2.3 years. |
SEGMENT REPORTING AND DISAGGREG
SEGMENT REPORTING AND DISAGGREGATED REVENUE | 6 Months Ended |
Jun. 30, 2020 | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | 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). 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 June 30, 2020 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 6,645 $ 1,824 $ 1,486 $ 1,000 $ — $ 10,955 Food and beverage 1,757 91 88 58 — 1,994 Hotel 560 118 41 — — 719 Other operations 160 554 101 28 — 843 $ 9,122 $ 2,587 $ 1,716 $ 1,086 $ — $ 14,511 Adjusted Property EBITDA $ 1,200 $ (995) $ (118) $ (562) $ — $ (475) Other operating costs and expenses: Depreciation and amortization (1,980) Corporate expenses (910) Project development costs (259) Loss on disposal of asset, net (439) Stock-based compensation (103) Operating loss (4,166) Other (expense) income: Interest expense, net (2,447) Adjustment to fair value of warrants (94) (2,541) Loss before income taxes (6,707) Income tax benefit (4) Net loss $ (6,703) (In thousands) Three Months Ended June 30, 2019 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 11,636 $ 7,526 $ 5,563 $ 3,725 $ — $ 28,450 Food and beverage 5,515 1,800 1,051 497 — 8,863 Hotel 1,305 1,560 186 — — 3,051 Other operations 436 712 77 74 — 1,299 $ 18,892 $ 11,598 $ 6,877 $ 4,296 $ — $ 41,663 Adjusted Property EBITDA $ 3,594 $ 604 $ 876 $ 417 $ — $ 5,491 Other operating costs and expenses: Depreciation and amortization (2,083) Corporate expenses (1,240) Project development costs (142) Gain on disposal of assets, net 4 Stock-based compensation (107) Operating income 1,923 Other (expense) income: Interest expense, net (2,931) Adjustment to fair value of warrants 141 (2,790) Loss before income taxes (867) Income tax provision 143 Net loss $ (1,010) (In thousands) Six Months Ended June 30, 2020 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 15,715 $ 6,852 $ 5,491 $ 3,648 $ — $ 31,706 Food and beverage 6,436 1,244 855 449 — 8,984 Hotel 1,530 976 187 — — 2,693 Other operations 534 1,186 164 97 — 1,981 $ 24,215 $ 10,258 $ 6,697 $ 4,194 $ — $ 45,364 Adjusted Property EBITDA $ 3,032 $ (2,088) $ (596) $ (953) $ — $ (605) Other operating costs and expenses: Depreciation and amortization (4,020) Corporate expenses (2,029) Project development costs (315) Loss on disposal of asset, net (439) Stock-based compensation (186) Operating loss (7,594) Other (expense) income: Interest expense, net (4,938) Adjustment to fair value of warrants 1,562 (3,376) Loss before income taxes (10,970) Income tax provision 91 Net loss $ (11,061) (In thousands) Six Months Ended June 30, 2019 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 24,015 $ 14,869 $ 10,806 $ 7,058 $ — $ 56,748 Food and beverage 10,886 3,613 2,025 997 — 17,521 Hotel 2,449 2,983 334 — — 5,766 Other operations 824 1,000 152 146 — 2,122 $ 38,174 $ 22,465 $ 13,317 $ 8,201 $ — $ 82,157 Adjusted Property EBITDA $ 7,440 $ 1,007 $ 1,491 $ 408 $ — $ 10,346 Other operating costs and expenses: Depreciation and amortization (4,174) Corporate expenses (2,518) Project development costs (275) Gain on disposal of assets, net 5 Stock-based compensation (193) Operating income 3,191 Other (expense) income: Interest expense, net (5,634) Adjustment to fair value of warrants 101 (5,533) Loss before income taxes (2,342) Income tax provision 285 Net loss $ (2,627) (In thousands) June 30, December 31, 2020 2019 Total Assets Silver Slipper Casino and Hotel $ 84,928 $ 87,980 Rising Star Casino Resort 39,813 40,277 Bronco Billy's Casino and Hotel 46,505 45,034 Northern Nevada Casinos 14,023 18,612 Corporate and Other 18,122 19,432 $ 203,391 $ 211,335 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | 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 | 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, the Company temporarily suspended operations at its casinos and hotels in March 2020 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’s properties began reopening when permitted by local authorities, beginning with the Silver Slipper Casino and Hotel on May 21, 2020, Grand Lodge Casino and Stockman’s Casino on June 4, 2020, and Bronco Billy’s Casino and Hotel and Rising Star Casino Resort on June 15, 2020. The Company believes it has sufficient resources to fund its reopened operations through its current cash balances and the management of labor, marketing expenses, and capital expenditures. Also, as discussed herein, operating profits in June 2020 were higher than levels in June 2019. However, management does not control and is not qualified to predict the ongoing effects of the continuing pandemic. 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 could 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 June 30, 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 the Company’s 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 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 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. Cash, cash equivalents and restricted cash consisted of the following: (In thousands) June 30, December 31, 2020 2019 Cash and equivalents $ 26,495 $ 28,851 Restricted cash — 1,000 $ 26,495 $ 29,851 |
Revenue Recognition of Accrued Club Points and Deferred Revenues | 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,” complimentary dining, or hotel stays. Such liabilities were approximately $1.4 million each for June 30, 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 $5.93 million for June 30, 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 contracted mobile sports wagering websites in Indiana. In June of 2020, one of the Company’s three contracted mobile sports wagering websites in Colorado also commenced operations. |
Income Taxes | Income Taxes. For interim income tax reporting for the three- and six-months ended June 30, 2020, the Company estimates its annual effective tax rate and applies it to its year-to-date pretax income or loss. |
Reclassifications | 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. 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 | 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. Accounting Standards Codification 842 (“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. |
Recently Issued Accounting Standards | 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. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
ORGANIZATION | |
Schedule of Properties | 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 Bronco Billy’s Casino and Hotel 2016 Cripple Creek, CO Rising Star Casino Resort 2011 Rising Sun, IN Stockman’s Casino 2007 Fallon, NV Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino) 2011 Incline Village, NV |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash, cash equivalents and restricted cash | (In thousands) June 30, December 31, 2020 2019 Cash and equivalents $ 26,495 $ 28,851 Restricted cash — 1,000 $ 26,495 $ 29,851 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LEASES | |
Balance Sheet Information For Leases | (In thousands) Leases Balance Sheet Classification June 30, 2020 December 31, 2019 Assets Operating lease assets Operating Lease Right-of-Use Assets, Net $ 18,917 $ 19,171 Finance lease assets Property and Equipment, Net (1) 4,958 5,037 Total lease assets $ 23,875 $ 24,208 Liabilities Current Operating Current Portion of Operating Lease Obligations $ 3,166 $ 2,707 Finance Current Portion of Finance Lease Obligation 481 448 Noncurrent Operating Operating Lease Obligations, Net of Current Portion 16,130 16,706 Finance Finance Lease Obligation, Net of Current Portion 3,546 3,829 Total lease liabilities $ 23,323 $ 23,690 (1 ) Finance lease assets are recorded net of accumulated amortization of $2.8 million as of June 30, 2020. |
Components of Lease Expense, Lease Term and Discount Rate and Cash Flow Information | (In thousands) Three Months Ended Six Months Ended June 30, June 30, Lease Costs Statement of Operations Classification 2020 2019 2020 2019 Operating leases: Fixed/base rent Selling, General and Administrative Expenses $ 1,199 $ 958 $ 2,399 $ 1,918 Variable payments Selling, General and Administrative Expenses 4 171 158 355 Finance lease: Amortization of leased assets Depreciation and Amortization 39 39 79 79 Interest on lease liabilities Interest Expense, Net 62 52 94 106 Total lease costs $ 1,304 $ 1,220 $ 2,730 $ 2,458 Lease Term and Discount Rate June 30, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases years years Finance lease years years Weighted-average discount rate Operating leases (1) % % Finance lease % % (1 ) Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019. (In thousands) Six Months Ended June 30, Cash paid for amounts included in the measurement of lease liabilities: 2020 2019 Operating cash flows for operating leases $ 1,659 $ 1,928 Operating cash flows for finance lease $ 94 $ 106 Financing cash flows for finance lease $ 251 $ 263 |
Operating Lease, Liability, Maturity | (In thousands) Operating Financing Years Ending December 31, Leases Lease (1) 2020 (excluding the six months ended June 30, 2020) $ 2,397 $ 272 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 46,577 4,727 Less: Amount representing interest (27,281) (700) Present value of lease liabilities 19,296 4,027 Less: Current lease obligations (3,166) (481) Long-term lease obligations $ 16,130 $ 3,546 (1) The Company’s only material finance lease is at Rising Star Casino Resort for a 104‑room hotel. |
Finance Lease, Liability, Maturity | (In thousands) Operating Financing Years Ending December 31, Leases Lease (1) 2020 (excluding the six months ended June 30, 2020) $ 2,397 $ 272 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 46,577 4,727 Less: Amount representing interest (27,281) (700) Present value of lease liabilities 19,296 4,027 Less: Current lease obligations (3,166) (481) Long-term lease obligations $ 16,130 $ 3,546 (1) The Company’s only material finance lease is at Rising Star Casino Resort for a 104‑room hotel. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
PROPERTY AND EQUIPMENT | |
Schedule of Property and Equipment | (In thousands) June 30, December 31, 2020 2019 Land and improvements $ 16,144 $ 16,144 Buildings and improvements 107,139 106,946 Furniture and equipment 48,260 47,886 Finance lease assets (see Note 3) 7,726 7,726 Construction in progress 10,916 10,856 190,185 189,558 Less: Accumulated depreciation (71,986) (68,071) $ 118,199 $ 121,487 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LONG-TERM DEBT [Abstract] | |
Schedule of Long-Term Debt, Related Discounts and Issuance Costs | (In thousands) June 30, December 31, 2020 2019 Senior Secured Notes $ 107,375 $ 107,925 Unsecured Loans (CARES Act) 5,606 — Less: Unamortized discounts and debt issuance costs (3,852) (3,902) 109,129 104,023 Less: Current portion of long-term debt (3,253) (1,100) $ 105,876 $ 102,923 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Maturities of the unsecured loans as of June 30, 2020 are as follows: (In thousands) Unsecured For Years Ending December 31, Loans 2020 $ 282 2021 3,750 2022 1,574 $ 5,606 |
Debt Instrument Redemption | Redemption Periods Percentage Premium On February 2, 2020 to February 1, 2021 1.90 % On February 2, 2021 to February 1, 2022 0.90 % On or after February 2, 2022 0.40 % |
EARNINGS (LOSS) PER SHARE AND S
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of Earnings Per Share, Basic and Diluted | (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss - basic $ (6,703) $ (1,010) $ (11,061) $ (2,627) Adjustment for assumed conversion of warrants — (141) (1,562) (101) Net loss - diluted $ (6,703) $ (1,151) $ (12,623) $ (2,728) Denominator: Weighted-average common and common share equivalents - basic 27,079 26,969 27,077 26,955 Potential dilution from assumed conversion of warrants — 217 182 232 Weighted-average common and common share equivalents - diluted 27,079 27,186 27,259 27,187 Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share 4,204 2,699 3,198 2,699 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SHARE-BASED COMPENSATION [Abstract] | |
Schedule of Common Stock Options | Weighted Number Average of Stock Exercise Options Price Options outstanding at January 1, 2020 2,844,405 $ 1.71 Granted 362,000 1.73 Exercised — — Canceled/Forfeited (8,650) 2.23 Expired — — Options outstanding at June 30, 2020 3,197,755 $ 1.71 Options exercisable at June 30, 2020 2,369,088 $ 1.61 |
SEGMENT REPORTING AND DISAGGR_2
SEGMENT REPORTING AND DISAGGREGATED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | |
Schedule of Disaggregation of Revenue | The following tables present the Company’s segment information: (In thousands) Three Months Ended June 30, 2020 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 6,645 $ 1,824 $ 1,486 $ 1,000 $ — $ 10,955 Food and beverage 1,757 91 88 58 — 1,994 Hotel 560 118 41 — — 719 Other operations 160 554 101 28 — 843 $ 9,122 $ 2,587 $ 1,716 $ 1,086 $ — $ 14,511 Adjusted Property EBITDA $ 1,200 $ (995) $ (118) $ (562) $ — $ (475) Other operating costs and expenses: Depreciation and amortization (1,980) Corporate expenses (910) Project development costs (259) Loss on disposal of asset, net (439) Stock-based compensation (103) Operating loss (4,166) Other (expense) income: Interest expense, net (2,447) Adjustment to fair value of warrants (94) (2,541) Loss before income taxes (6,707) Income tax benefit (4) Net loss $ (6,703) (In thousands) Three Months Ended June 30, 2019 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 11,636 $ 7,526 $ 5,563 $ 3,725 $ — $ 28,450 Food and beverage 5,515 1,800 1,051 497 — 8,863 Hotel 1,305 1,560 186 — — 3,051 Other operations 436 712 77 74 — 1,299 $ 18,892 $ 11,598 $ 6,877 $ 4,296 $ — $ 41,663 Adjusted Property EBITDA $ 3,594 $ 604 $ 876 $ 417 $ — $ 5,491 Other operating costs and expenses: Depreciation and amortization (2,083) Corporate expenses (1,240) Project development costs (142) Gain on disposal of assets, net 4 Stock-based compensation (107) Operating income 1,923 Other (expense) income: Interest expense, net (2,931) Adjustment to fair value of warrants 141 (2,790) Loss before income taxes (867) Income tax provision 143 Net loss $ (1,010) (In thousands) Six Months Ended June 30, 2020 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 15,715 $ 6,852 $ 5,491 $ 3,648 $ — $ 31,706 Food and beverage 6,436 1,244 855 449 — 8,984 Hotel 1,530 976 187 — — 2,693 Other operations 534 1,186 164 97 — 1,981 $ 24,215 $ 10,258 $ 6,697 $ 4,194 $ — $ 45,364 Adjusted Property EBITDA $ 3,032 $ (2,088) $ (596) $ (953) $ — $ (605) Other operating costs and expenses: Depreciation and amortization (4,020) Corporate expenses (2,029) Project development costs (315) Loss on disposal of asset, net (439) Stock-based compensation (186) Operating loss (7,594) Other (expense) income: Interest expense, net (4,938) Adjustment to fair value of warrants 1,562 (3,376) Loss before income taxes (10,970) Income tax provision 91 Net loss $ (11,061) (In thousands) Six Months Ended June 30, 2019 Silver Bronco Slipper Rising Star Billy’s Northern Casino Casino Casino Nevada and Hotel Resort and Hotel Casinos Corporate Total Total Revenues Casino $ 24,015 $ 14,869 $ 10,806 $ 7,058 $ — $ 56,748 Food and beverage 10,886 3,613 2,025 997 — 17,521 Hotel 2,449 2,983 334 — — 5,766 Other operations 824 1,000 152 146 — 2,122 $ 38,174 $ 22,465 $ 13,317 $ 8,201 $ — $ 82,157 Adjusted Property EBITDA $ 7,440 $ 1,007 $ 1,491 $ 408 $ — $ 10,346 Other operating costs and expenses: Depreciation and amortization (4,174) Corporate expenses (2,518) Project development costs (275) Gain on disposal of assets, net 5 Stock-based compensation (193) Operating income 3,191 Other (expense) income: Interest expense, net (5,634) Adjustment to fair value of warrants 101 (5,533) Loss before income taxes (2,342) Income tax provision 285 Net loss $ (2,627) |
Schedule of Selected Statement of Operations Data | (In thousands) June 30, December 31, 2020 2019 Total Assets Silver Slipper Casino and Hotel $ 84,928 $ 87,980 Rising Star Casino Resort 39,813 40,277 Bronco Billy's Casino and Hotel 46,505 45,034 Northern Nevada Casinos 14,023 18,612 Corporate and Other 18,122 19,432 $ 203,391 $ 211,335 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Jun. 30, 2020item |
ORGANIZATION | |
Number of casinos operated | 5 |
Number of casinos owned | 4 |
Number of casinos located within a hotel owned by a third party | 1 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and equivalents | $ 26,495 | $ 28,851 | ||
Restricted cash | 1,000 | |||
Cash, cash equivalents and restricted cash | $ 26,495 | $ 29,851 | $ 23,908 | $ 20,634 |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Basis Of Presentation [Line Items] | |||
Liabilities Based On Standalone Retail Value Included In Other Accrued Expenses | $ 1,400 | $ 1,400 | |
Sports Wagering Agreements | |||
Basis Of Presentation [Line Items] | |||
Customer loyalty program liabilities | $ 5,930 | ||
Revenue Recognition, Term | 10 years | ||
Deferred revenues | $ 5,930 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Leases (Details) | Jun. 30, 2020 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jan. 01, 2018USD ($) | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2017USD ($)ft² | Jun. 30, 2020USD ($)roomOptionlease | Dec. 31, 2004USD ($)a | Nov. 30, 2018USD ($) |
Lessee, Lease, Description [Line Items] | ||||||||
Number of finance leases | lease | 1 | |||||||
Future minimum lease payments | $ 46,577,000 | |||||||
Grand Lodge Casino facility | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Rent | $ 166,667 | |||||||
Lessor acquisition price, EBITDA measurement period | 12 months | |||||||
Abatement rent amount of undiscounted cash | $ 208,000 | |||||||
Reduction In Rent By Percentage | 50.00% | 50.00% | 25.00% | |||||
Corporate Office Lease | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Rent | $ 200,000 | |||||||
Office lease, square feet | ft² | 4,479 | |||||||
Land lease | Land Lease Of Silver Slipper Casino Site | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Abatement rent amount of undiscounted cash | 155,000 | |||||||
Land lease | Land Lease Of Silver Slipper Casino Site | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Rent | $ 77,500 | |||||||
Percentage of gross gaming revenue | 3.00% | |||||||
Gross gaming revenue (in excess of) | $ 3,650,000 | |||||||
Cost to exercise purchase option | $ 15,500,000 | |||||||
Retained interest in percentages of net income | 3.00% | |||||||
Retained interest in percentages of net income, term | 10 years | |||||||
Land lease | Land Lease Of Silver Slipper Casino Site | Marshland | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Area of land subject to ground lease | a | 31 | |||||||
Land lease | Land Lease Of Silver Slipper Casino Site | Parcel | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Area of land subject to ground lease | a | 7 | |||||||
Certain parking lots and buildings | Bronco Billy's Casino and Hotel | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Cost to exercise purchase option | $ 7,600,000 | |||||||
Number of original renewal options | Option | 6 | |||||||
Certain parking lots and buildings | Lease Terms, Option One | Bronco Billy's Casino and Hotel | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease extension term | 3 years | |||||||
Certain parking lots and buildings | Lease Terms, Option Two | Bronco Billy's Casino and Hotel | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease includes base payments | $ 30,000 | |||||||
Certain parking lots and buildings | Lease Terms, Second Renewal Option | Bronco Billy's Casino and Hotel | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease includes base payments | 32,500 | |||||||
Land, buildings and improvements | Various Buildings And Land In Cripple Creak, Colorado | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Cost to exercise purchase option | 2,600,000 | |||||||
Annual increase to purchase price option | 100,000 | |||||||
Maximum purchase price on purchase option | $ 2,800,000 | |||||||
Land, buildings and improvements | Lease Terms, Option One | Various Buildings And Land In Cripple Creak, Colorado | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lessee, Operating Lease, Term of Contract | 3 years | |||||||
Land, buildings and improvements | Lease Terms, Option Two | Various Buildings And Land In Cripple Creak, Colorado | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease extension term | 2 years | |||||||
Annual lease payments | $ 300,000 | |||||||
Land, buildings and improvements | Lease Terms, Option One | Various Buildings And Land In Cripple Creak, Colorado | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lessee Leasing Arrangements Operating Leases Annual Rent Expense | $ 200,000 | |||||||
Rising Star Casino Resort | Rising Sun/Ohio County First, Inc | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Number of hotel rooms | room | 104 | |||||||
Project actual cost | $ 7,700,000 | |||||||
Lease purchase option, remaining net price | 4,000,000 | |||||||
Option price at lease maturity | $ 1 | |||||||
Minimum | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease terms | 1 month | |||||||
Maximum | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease terms | 38 years |
LEASES - Balance Sheet Details
LEASES - Balance Sheet Details (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
LEASES | ||
Operating lease assets | $ 18,917 | $ 19,171 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease assets | |
Finance lease assets | $ 4,958 | 5,037 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | |
Total lease assets | $ 23,875 | 24,208 |
Current operating lease liability | $ 3,166 | 2,707 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current operating lease liability | |
Current finance lease liability | $ 481 | 448 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current finance lease liability | |
Noncurrent operating lease liability | $ 16,130 | 16,706 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | fll:OperatingLeaseObligationNetOfCurrentPortionAndOther | |
Long-term lease obligations | $ 3,546 | 3,829 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term lease obligations | |
Total lease liabilities | $ 23,323 | $ 23,690 |
Finance lease, right-of-use asset, accumulated depreciation | $ 2,800 |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
LEASES | ||||
Fixed/base rent | $ 1,199 | $ 958 | $ 2,399 | $ 1,918 |
Variable payments | 4 | 171 | 158 | 355 |
Amortization of leased assets | 39 | 39 | 79 | 79 |
Interest on lease liabilities | 62 | 52 | 94 | 106 |
Total lease costs | $ 1,304 | $ 1,220 | $ 2,730 | $ 2,458 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2020USD ($)room | Dec. 31, 2019USD ($) |
Operating Leases | ||
2020 | $ 2,397 | |
2021 | 4,684 | |
2022 | 4,468 | |
2023 | 2,876 | |
2024 | 1,135 | |
Thereafter | 31,017 | |
Total future minimum lease payments | 46,577 | |
Less: Amount representing interest | (27,281) | |
Present value of lease liabilities | 19,296 | |
Less: Current lease obligations | (3,166) | $ (2,707) |
Operating lease obligations, net of current portion | 16,130 | 16,706 |
Financing Lease | ||
2020 | 272 | |
2021 | 652 | |
2022 | 652 | |
2023 | 652 | |
2024 | 652 | |
Thereafter | 1,847 | |
Total future minimum lease payments | 4,727 | |
Less: Amount representing interest | (700) | |
Present value of lease liabilities | 4,027 | |
Less: Current lease obligations | (481) | (448) |
Long-term lease obligations | $ 3,546 | $ 3,829 |
Rising Star Casino Resort | Rising Sun/Ohio County First, Inc | ||
Financing Lease | ||
Number of hotel rooms | room | 104 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Jun. 30, 2020 | Dec. 31, 2019 | |
LEASES | |||
Weighted-average remaining lease term, operating leases | 19 years 9 months 18 days | 20 years 2 months 12 days | |
Weighted-average remaining lease term, finance leases | 7 years 3 months 18 days | 7 years 9 months 18 days | |
Weighted-average discount rate, operating leases | [1] | 9.40% | 9.40% |
Weighted-average discount rate, finance leases | 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. |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 1,659 | $ 1,928 |
Operating cash flows for finance lease | 94 | 106 |
Financing cash flows for finance lease | $ 251 | $ 263 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 190,185 | $ 189,558 |
Less: Accumulated depreciation | (71,986) | (68,071) |
Property and equipment, net of accumulated depreciation and amortization | 118,199 | 121,487 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,144 | 16,144 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 107,139 | 106,946 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 48,260 | 47,886 |
Finance lease assets (see Note 3) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,726 | 7,726 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,916 | $ 10,856 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized discounts and debt issuance costs | $ (3,852) | $ (3,902) |
Long-term debt, net | 109,129 | 104,023 |
Current portion of long-term debt | (3,253) | (1,100) |
Long-term debt, net of current portion, unamortized discount and issuance costs | 105,876 | 102,923 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 5,606 | |
Senior Secured Notes Due 2024 | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 107,375 | $ 107,925 |
Unsecured Loans CARES Act [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 5,606 |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Notes Narrative (Details) - USD ($) | Apr. 28, 2020 | Feb. 02, 2018 | Jun. 30, 2020 | Aug. 12, 2020 | May 08, 2020 | Dec. 31, 2019 |
Unsecured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Outstanding principal | $ 5,606,000 | |||||
Senior Secured Notes Due 2024 | Senior Secured Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 110,000,000 | |||||
Payment of waiver fee | $ 376,775 | |||||
Percentage of payment of waiver fee | 0.35% | |||||
Outstanding principal | $ 107,375,000 | $ 107,925,000 | ||||
Periodic payment of principal | 275,000 | |||||
Balloon payment to be paid | $ 103,500,000 | |||||
Debt Redemption Premium, Payment Upon Debt Maturity | 400,000 | |||||
Senior Secured Notes Due 2024 | Senior Secured Notes | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable rate floor | 1.00% | |||||
Applicable margin rate | 7.00% | |||||
Fourth Amendment [Member] | Senior Secured Notes | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt, Amendment Fee, Percentage | 0.75% | |||||
Debt, Amendment Fee | $ 805,313 | |||||
Increase In Basis Points | 0.025 | |||||
Unsecured Loans CARES Act [Member] | Unsecured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 5,606,200 | |||||
Outstanding principal | $ 5,606,000 | |||||
Unsecured Loans CARES Act [Member] | Unsecured Debt | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 5,600,000 |
LONG-TERM DEBT - Redemption of
LONG-TERM DEBT - Redemption of Senior Secured Notes (Details) - Senior Secured Notes - Senior Secured Notes Due 2024 | 6 Months Ended |
Jun. 30, 2020 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 15.00% |
On February 2, 2020 to February 1, 2021 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 1.90% |
On February 2, 2021 to February 1, 2022 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 0.90% |
On or after February 2, 2022 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 0.40% |
LONG TERM Debt - Unsecured Loan
LONG TERM Debt - Unsecured Loans (Details) - Unsecured Debt | May 08, 2020USD ($) |
Debt Instrument, Term | 2 years |
Unsecured Loans CARES Act [Member] | |
Debt Instrument, Face Amount | $ 5,606,200 |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
LONG-TERM DEBT - Scheduled Matu
LONG-TERM DEBT - Scheduled Maturities of Long-term Debt (Details) - Unsecured Debt $ in Thousands | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 282 |
2021 | 3,750 |
2022 | 1,574 |
Outstanding Principal | $ 5,606 |
LONG-TERM DEBT -Covenants (Deta
LONG-TERM DEBT -Covenants (Details) - Senior Secured Notes | Jun. 30, 2020USD ($) |
September 30, 2020 | |
Line of Credit Facility [Line Items] | |
Total leverage covenant ratio | 5.75 |
Senior Secured Notes Due 2024 | |
Line of Credit Facility [Line Items] | |
Cash and cash equivalents, allowed to deduct from adjusted EBITDA to debt ratio | $ 15,000,000 |
Senior Secured Notes Due 2024 | December 31, 2020 | |
Line of Credit Facility [Line Items] | |
Total leverage covenant ratio | 5.50 |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY (Details) | May 08, 2020 | May 13, 2016$ / sharesshares | Jun. 30, 2020 |
Class of Warrant or Right [Line Items] | |||
Expected contractual term | 5 years 10 months 13 days | ||
Measurement Input, Price Volatility | |||
Class of Warrant or Right [Line Items] | |||
Expected stock rate | 61.62 | ||
Measurement Input, Expected Dividend Rate | |||
Class of Warrant or Right [Line Items] | |||
Expected stock rate | 0 | ||
Measurement Input, Risk Free Interest Rate | |||
Class of Warrant or Right [Line Items] | |||
Expected stock rate | 0.38 | ||
Line of Credit | Second Lien Term Loan | Warrant to Purchase Common Equity | |||
Class of Warrant or Right [Line Items] | |||
Warrants issued (in shares) | shares | 1,006,568 | ||
Warrant exercise price (in dollars per share) | $ / shares | $ 1.67 | ||
Period for measuring repurchase value | 21 days | ||
Unsecured Debt | |||
Class of Warrant or Right [Line Items] | |||
Term of unsecured note | 2 years | ||
Unsecured Debt | Second Lien Term Loan | Warrant to Purchase Common Equity | |||
Class of Warrant or Right [Line Items] | |||
Term of unsecured note | 4 years | ||
Interest rate on unsecured note | 13.25% |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INCOME TAXES | ||||
Effective income tax rate | 0.10% | (16.50%) | (0.80%) | (12.20%) |
Federal income tax benefit at U.S. statutory rate | 21.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - La Posada del Llano Racetrack $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($)a | Jun. 30, 2020USD ($) | |
Commitments and Contingencies [Line Items] | |||
Cost to purchase options | $ 125 | ||
Land in purchase option (in acres) | a | 520 | ||
Payment to renew options | $ 125 | ||
Deposits Written Off | $ 250 |
EARNINGS (LOSS) PER SHARE AND_2
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY - Reconciliation of Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income (loss) - basic | $ (6,703) | $ (1,010) | $ (11,061) | $ (2,627) |
Adjustment for assumed conversion of warrants | 0 | (141) | (1,562) | (101) |
Net income (loss) - diluted | $ (6,703) | $ (1,151) | $ (12,623) | $ (2,728) |
Denominator: | ||||
Weighted-average common share equivalents - basic (in shares) | 27,079 | 26,969 | 27,077 | 26,955 |
Potential dilution from assumed conversion of warrants (in shares) | 0 | 217 | 182 | 232 |
Weighted-average common and common share equivalents - diluted (in shares) | 27,079 | 27,186 | 27,259 | 27,187 |
Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share (in shares) | 4,204 | 2,699 | 3,198 | 2,699 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 103,000 | $ 107,000 | $ 186,000 | $ 193,000 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 700,000 | $ 700,000 | ||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 3 months 18 days | |||
2015 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future issuance (in shares) | 122,413 | 122,413 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summarizes information related to our common stock options (Details) - Stock options | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Stock Options | |
Options outstanding, beginning balance (in shares) | 2,844,405 |
Granted (in shares) | 362,000 |
Exercised (in shares) | 0 |
Canceled/Forfeited (in shares) | (8,650) |
Expired (in shares) | 0 |
Options outstanding, ending balance (in shares) | 3,197,755 |
Options exercisable (in shares) | 2,369,088 |
Weighted Average Exercise Price | |
Weighted average exercise price, Options outstanding (in dollars per share) | $ / shares | $ 1.71 |
Granted (in dollars per share) | $ / shares | 1.73 |
Canceled/Forfeited (in dollars per share) | $ / shares | 2.23 |
Weighted average exercise price, Options outstanding (in dollars per share) | $ / shares | 1.71 |
Weighted average exercise price, Options exercisable (in dollars per share) | $ / shares | $ 1.61 |
SEGMENT REPORTING AND DISAGGR_3
SEGMENT REPORTING AND DISAGGREGATED REVENUE - Selected Statement of Operations Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of segments | segment | 4 | |||||
Net Revenues | $ 14,511 | $ 41,663 | $ 45,364 | $ 82,157 | ||
Adjusted Property EBITDA | (475) | 5,491 | (605) | 10,346 | ||
Depreciation and amortization | (1,980) | (2,083) | (4,020) | (4,174) | ||
Corporate expenses | (910) | (1,240) | (2,029) | (2,518) | ||
Project development and acquisition costs | (259) | (142) | (315) | (275) | ||
Loss on sale or disposal of assets, net | (439) | 4 | (439) | 5 | ||
Share-based compensation | (103) | (107) | (186) | (193) | ||
Operating (loss) income | (4,166) | 1,923 | (7,594) | 3,191 | ||
Other (expense) income: | ||||||
Interest expense, net | (2,447) | (2,931) | (4,938) | (5,634) | ||
Adjustment to fair value of warrants | 94 | (141) | (1,562) | (101) | ||
Nonoperating Income (Expense) | (2,541) | (2,790) | (3,376) | (5,533) | ||
Income (loss) before income taxes | (6,707) | (867) | (10,970) | (2,342) | ||
Income tax provision (Benefit) | (4) | 143 | 91 | 285 | ||
Net loss | (6,703) | $ (4,358) | (1,010) | $ (1,617) | (11,061) | (2,627) |
Silver Slipper Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 9,122 | 18,892 | 24,215 | 38,174 | ||
Adjusted Property EBITDA | 1,200 | 3,594 | 3,032 | 7,440 | ||
Rising Star Casino Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 2,587 | 11,598 | 10,258 | 22,465 | ||
Adjusted Property EBITDA | (995) | 604 | (2,088) | 1,007 | ||
Bronco Billy's Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,716 | 6,877 | 6,697 | 13,317 | ||
Adjusted Property EBITDA | (118) | 876 | (596) | 1,491 | ||
Northern Nevada Casinos | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,086 | 4,296 | 4,194 | 8,201 | ||
Adjusted Property EBITDA | (562) | 417 | (953) | 408 | ||
Casino | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 10,955 | 28,450 | 31,706 | 56,748 | ||
Casino | Silver Slipper Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 6,645 | 11,636 | 15,715 | 24,015 | ||
Casino | Rising Star Casino Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,824 | 7,526 | 6,852 | 14,869 | ||
Casino | Bronco Billy's Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,486 | 5,563 | 5,491 | 10,806 | ||
Casino | Northern Nevada Casinos | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,000 | 3,725 | 3,648 | 7,058 | ||
Food and beverage | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,994 | 8,863 | 8,984 | 17,521 | ||
Food and beverage | Silver Slipper Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,757 | 5,515 | 6,436 | 10,886 | ||
Food and beverage | Rising Star Casino Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 91 | 1,800 | 1,244 | 3,613 | ||
Food and beverage | Bronco Billy's Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 88 | 1,051 | 855 | 2,025 | ||
Food and beverage | Northern Nevada Casinos | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 58 | 497 | 449 | 997 | ||
Hotel products and services | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 719 | 3,051 | 2,693 | 5,766 | ||
Hotel products and services | Silver Slipper Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 560 | 1,305 | 1,530 | 2,449 | ||
Hotel products and services | Rising Star Casino Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 118 | 1,560 | 976 | 2,983 | ||
Hotel products and services | Bronco Billy's Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 41 | 186 | 187 | 334 | ||
Other operations, including online/mobile sports operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 843 | 1,299 | 1,981 | 2,122 | ||
Other operations, including online/mobile sports operations | Silver Slipper Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 160 | 436 | 534 | 824 | ||
Other operations, including online/mobile sports operations | Rising Star Casino Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 554 | 712 | 1,186 | 1,000 | ||
Other operations, including online/mobile sports operations | Bronco Billy's Casino and Hotel | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 101 | 77 | 164 | 152 | ||
Other operations, including online/mobile sports operations | Northern Nevada Casinos | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | $ 28 | $ 74 | $ 97 | $ 146 |
SEGMENT REPORTING AND DISAGGR_4
SEGMENT REPORTING AND DISAGGREGATED REVENUE - Selected Balance Sheet Data (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 203,391 | $ 211,335 |
Operating Segments | Silver Slipper Casino and Hotel | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 84,928 | 87,980 |
Operating Segments | Rising Star Casino Resort | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 39,813 | 40,277 |
Operating Segments | Bronco Billy's Casino and Hotel | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 46,505 | 45,034 |
Operating Segments | Northern Nevada Casinos | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 14,023 | 18,612 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 18,122 | $ 19,432 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash and equivalents | $ 26,495 | $ 26,495 | $ 28,851 | ||
Net Revenues | $ 14,511 | $ 41,663 | $ 45,364 | $ 82,157 |