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Merger and Acquisitions (Tables)
9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Schedule of Number of Shares Common Stock Issued with Merger

The total number of shares of the Company’s common stock issued in connection with the Merger was as follows:

 

Pre-Merger

Value of Lakes

 

Lakes %

 

Pre-Merger

Value of Sartini

Gaming

 

Sartini

Gaming %

 

Total Post-Closing

Shares(1)

 

Total Shares Issued

in Connection

with Merger(2)

 

$

134,615,083

 

 

62.6%

 

$

80,523,753

 

 

37.4%

 

 

22,592,260

 

 

8,453,565

 

 

(1)

Calculated as the sum of the number of shares of the Company’s common stock outstanding immediately after the Merger (on a fully diluted basis, including shares issuable upon the exercise of outstanding in-the-money stock options) and the number of shares of the Company’s common stock issued pursuant to the post-closing adjustment provisions of the Merger Agreement.

(2)

Includes 457,172 shares of the Company’s common stock that were issued to certain former holders of warrants issued by a subsidiary of Sartini Gaming upon the closing of the Merger.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Allocation. The final allocation of the $77.4 million purchase price to the assets acquired and liabilities assumed as of July 31, 2015 was as follows (in thousands):

 

 

 

Amount

 

Cash

 

$

25,539

 

Other current assets

 

 

14,830

 

Property and equipment

 

 

83,173

 

Intangible assets

 

 

80,460

 

Goodwill

 

 

97,462

 

Current liabilities

 

 

(13,245

)

Warrant liability

 

 

(3,435

)

Debt

 

 

(190,587

)

Deferred tax liability

 

 

(14,576

)

Other long-term liabilities

 

 

(2,217

)

Total purchase price

 

$

77,404

 

 

Summary of Property Plant and Equipment Acquired

The amounts assigned to property and equipment by category are summarized in the table below (in thousands):

 

 

 

Remaining

Useful Life (Years)

 

Amount

Assigned

 

Land

 

Not applicable

 

$

12,470

 

Land improvements

 

5-14

 

 

4,030

 

Building and improvements

 

19-25

 

 

21,310

 

Leasehold improvements

 

1-28

 

 

20,793

 

Furniture, fixtures and equipment

 

1-11

 

 

21,935

 

Construction in process

 

Not applicable

 

 

2,635

 

Total property and equipment

 

 

 

$

83,173

 

 

Summary of Intangible Assets

The amounts assigned to intangible assets by category are summarized in the table below (in thousands):

 

 

 

Remaining

Useful Life (Years)

 

Amount

Assigned

 

Trade names

 

Indefinite

 

$

12,200

 

Player relationships

 

8-14

 

 

7,300

 

Customer relationships

 

13-16

 

 

59,200

 

Gaming licenses

 

Indefinite

 

 

960

 

Other intangible assets

 

2-10

 

 

800

 

Total intangible assets

 

 

 

$

80,460

 

 

Summary of Finite-lived Intangible Assets Amortization Expense

Estimated future amortization expense related to the finite-lived intangible assets acquired in the Merger is as follows:

 

 

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

Thereafter

 

 

 

(In thousands)

 

Estimated amortization expense

 

$

1,257

 

 

$

4,965

 

 

$

4,877

 

 

$

4,877

 

 

$

4,877

 

 

$

4,877

 

 

$

35,705

 

 

Summary of Unaudited Pro Forma Combined Financial Information

Unaudited Pro Forma Combined Financial Information. The following unaudited pro forma combined financial information is presented as if the Merger had occurred at the beginning of the period presented:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2015

 

 

September 30, 2015

 

 

(In thousands, except per share data)

 

Pro forma combined net revenues

$

86,222

 

 

$

259,002

 

Pro forma combined net income

 

8,651

 

 

 

3,306

 

 

 

 

 

 

 

 

 

Pro forma combined net income per share:

 

 

 

 

 

 

 

Basic and diluted

$

0.40

 

 

$

0.15

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

21,622

 

 

 

21,622