(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 27-0540158 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
8345 W. Sunset Road, Las Vegas, Nevada 89113 (Address of principal executive offices, Zip Code) | ||
Registrant's telephone number, including area code: 702-589-3900 |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
June 30, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 241,923 | $ | 240,381 | |||
Restricted cash | 15,335 | 15,322 | |||||
Receivables, net | 30,552 | 27,813 | |||||
Inventories | 4,370 | 4,593 | |||||
Prepaid expenses and other assets | 13,218 | 10,032 | |||||
Assets held for sale | 11,595 | 11,719 | |||||
Total current assets | 316,993 | 309,860 | |||||
Property and equipment, net | 457,867 | 448,424 | |||||
Goodwill | 24,928 | 24,928 | |||||
Intangible assets, net | 67,400 | 67,945 | |||||
Investments | 33,688 | 34,799 | |||||
Other assets, net | 14,492 | 16,283 | |||||
Total assets | $ | 915,368 | $ | 902,239 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 1,750 | $ | 1,795 | |||
Liabilities related to assets held for sale | 1,814 | 2,439 | |||||
Accounts payable | 41,367 | 39,532 | |||||
Accrued expenses and other current liabilities | 59,382 | 64,899 | |||||
Total current liabilities | 104,313 | 108,665 | |||||
Long-term debt, net | 168,334 | 168,959 | |||||
Other long-term liabilities | 7,457 | 7,686 | |||||
Deferred tax liabilities | 20,907 | 20,907 | |||||
Total liabilities | 301,011 | 306,217 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Tropicana Entertainment Inc. preferred stock at $0.01 par value; 10,000,000 shares authorized, no shares issued | — | — | |||||
Tropicana Entertainment Inc. common stock at $0.01 par value; 100,000,000 shares authorized, 26,312,500 shares issued and outstanding at June 30, 2013 and December 31, 2012 | 263 | 263 | |||||
Additional paid-in capital | 600,359 | 600,359 | |||||
Retained earnings (accumulated deficit) | 13,735 | (4,600 | ) | ||||
Total shareholders' equity | 614,357 | 596,022 | |||||
Total liabilities and shareholders' equity | $ | 915,368 | $ | 902,239 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Casino | $ | 115,213 | $ | 128,698 | $ | 228,017 | $ | 251,815 | |||||||
Room | 21,493 | 24,186 | 41,028 | 46,168 | |||||||||||
Food and beverage | 18,821 | 21,053 | 37,825 | 41,260 | |||||||||||
Other | 5,207 | 5,786 | 10,138 | 10,916 | |||||||||||
Gross revenues | 160,734 | 179,723 | 317,008 | 350,159 | |||||||||||
Less promotional allowances | (16,983 | ) | (20,987 | ) | (34,896 | ) | (42,090 | ) | |||||||
Net revenues | 143,751 | 158,736 | 282,112 | 308,069 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Casino | 48,815 | 55,897 | 98,807 | 112,896 | |||||||||||
Room | 8,084 | 9,119 | 15,189 | 16,734 | |||||||||||
Food and beverage | 9,451 | 9,385 | 18,470 | 18,491 | |||||||||||
Other | 3,938 | 4,456 | 7,326 | 7,838 | |||||||||||
Marketing, advertising and promotions | 10,552 | 10,255 | 19,430 | 18,978 | |||||||||||
General and administrative | 22,326 | 29,842 | 50,597 | 59,476 | |||||||||||
Maintenance and utilities | 13,883 | 14,399 | 27,336 | 28,432 | |||||||||||
Depreciation and amortization | 8,204 | 8,002 | 16,598 | 15,845 | |||||||||||
Impairment charges and other | 190 | 1,871 | 698 | 1,856 | |||||||||||
Total operating costs and expenses | 125,443 | 143,226 | 254,451 | 280,546 | |||||||||||
Operating income | 18,308 | 15,510 | 27,661 | 27,523 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (3,605 | ) | (3,645 | ) | (7,180 | ) | (9,821 | ) | |||||||
Interest income | 216 | 193 | 403 | 332 | |||||||||||
Loss on debt retirement | — | — | — | (12,847 | ) | ||||||||||
Total other income (expense) | (3,389 | ) | (3,452 | ) | (6,777 | ) | (22,336 | ) | |||||||
Income from continuing operations before income taxes | 14,919 | 12,058 | 20,884 | 5,187 | |||||||||||
Income tax expense | (1,079 | ) | (2,623 | ) | (1,765 | ) | (1,453 | ) | |||||||
Income from continuing operations | $ | 13,840 | $ | 9,435 | $ | 19,119 | $ | 3,734 | |||||||
Income (loss) from discontinued operations, net | (830 | ) | (675 | ) | (784 | ) | 205 | ||||||||
Net income | 13,010 | 8,760 | 18,335 | 3,939 | |||||||||||
Basic and diluted income per common share: | |||||||||||||||
Income from continuing operations | $ | 0.53 | $ | 0.36 | $ | 0.73 | $ | 0.14 | |||||||
Income (loss) from discontinued operations, net | (0.03 | ) | (0.03 | ) | (0.03 | ) | 0.01 | ||||||||
Net income | 0.50 | 0.33 | 0.70 | 0.15 | |||||||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic and diluted | 26,313 | 26,313 | 26,313 | 26,313 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 18,335 | $ | 3,939 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Loss on debt retirement | — | 12,847 | |||||
Impairment of discontinued operations | 1,454 | — | |||||
Depreciation and amortization (including discontinued operations) | 16,714 | 16,033 | |||||
Amortization of debt discount and debt issuance costs | 637 | 2,648 | |||||
Impairment charges | 439 | 1,776 | |||||
Loss on disposition of asset (including discontinued operations) | 259 | 85 | |||||
Changes in current assets and current liabilities: | |||||||
Receivables, net | (2,905 | ) | 1,949 | ||||
Inventories, prepaids and other assets | (3,090 | ) | (2,541 | ) | |||
Accounts payable, accrued expenses and other liabilities | (41 | ) | (2,486 | ) | |||
Other | 2,390 | 3,273 | |||||
Net cash provided by operating activities | 34,192 | 37,523 | |||||
Cash flows from investing activities: | |||||||
Additions of property and equipment | (34,657 | ) | (23,045 | ) | |||
Insurance proceeds | 490 | — | |||||
Other | 2,179 | 761 | |||||
Net cash used in investing activities | (31,988 | ) | (22,284 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of debt | — | 171,500 | |||||
Payment on early retirement of debt | — | (2,048 | ) | ||||
Payments on debt | (964 | ) | (104,158 | ) | |||
Restricted cash | (13 | ) | (1,950 | ) | |||
Payment of financing costs | — | (3,324 | ) | ||||
Net cash provided by (used in) financing activities | (977 | ) | 60,020 | ||||
Net increase in cash and cash equivalents | 1,227 | 75,259 | |||||
Decrease in cash and cash equivalents related to assets held for sale | 315 | 435 | |||||
Cash and cash equivalents, beginning of period | 240,381 | 147,213 | |||||
Cash and cash equivalents, end of period | $ | 241,923 | $ | 222,907 | |||
Supplemental cash flow disclosure (including discontinued operations): | |||||||
Cash paid for interest | $ | 6,471 | $ | 7,100 | |||
Cash paid for income taxes | 2,390 | 2,629 | |||||
Change in capital expenditures included in accrued and other current liabilities | (4,556 | ) | — |
• | East—Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located in Atlantic City, New Jersey; |
• | Central—Tropicana Evansville ("Tropicana Evansville") located in Evansville, Indiana; |
• | West—Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in Lake Tahoe, Nevada; and |
• | South and other—Belle of Baton Rouge ("Belle of Baton Rouge") located in Baton Rouge, Louisiana; Trop Casino Greenville ("Tropicana Greenville") located in Greenville, Mississippi and Tropicana Aruba Resort & Casino ("Tropicana Aruba") located in Noord, Aruba. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Room | $ | 3,618 | $ | 3,554 | $ | 7,554 | $ | 8,106 | ||||||||
Food and beverage | 8,118 | 9,758 | 16,181 | 18,766 | ||||||||||||
Other | 394 | 738 | 792 | 1,180 | ||||||||||||
Total | $ | 12,130 | $ | 14,050 | $ | 24,527 | $ | 28,052 |
June 30, 2013 | December 31, 2012 | ||||||
Casino | $ | 19,949 | $ | 19,670 | |||
Hotel | 5,852 | 5,024 | |||||
Predecessors' administrative tax claim | 10,478 | 10,478 | |||||
Income tax receivable | 706 | — | |||||
Other | 6,118 | 4,864 | |||||
43,103 | 40,036 | ||||||
Allowance for doubtful accounts | (12,551 | ) | (12,223 | ) | |||
Receivables, net | $ | 30,552 | $ | 27,813 |
Estimated life (years) | June 30, 2013 | December 31, 2012 | |||||||
Land | — | $ | 90,321 | $ | 90,190 | ||||
Buildings and improvements | 10 - 40 | 323,828 | 316,695 | ||||||
Furniture, fixtures and equipment | 3 - 7 | 114,131 | 101,940 | ||||||
Riverboats and barges | 5 - 15 | 18,990 | 20,100 | ||||||
Construction in progress | — | 18,974 | 13,029 | ||||||
566,244 | 541,954 | ||||||||
Accumulated depreciation | (108,377 | ) | (93,530 | ) | |||||
Property and equipment, net | $ | 457,867 | $ | 448,424 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||
Gross Carrying Amount | Accumulated Impairment | Net Carrying Value | Gross Carrying Amount | Accumulated Impairment | Net Carrying Value | ||||||||||||
Central | 14,224 | — | 14,224 | 14,224 | — | 14,224 | |||||||||||
South and other | 1,731 | (1,731 | ) | — | 1,731 | (1,731 | ) | — | |||||||||
Corporate | 10,704 | — | 10,704 | 10,704 | — | 10,704 | |||||||||||
Total | 26,659 | (1,731 | ) | 24,928 | 26,659 | (1,731 | ) | 24,928 |
Estimated life (years) | June 30, 2013 | December 31, 2012 | ||||||||
Trade name | Indefinite | $ | 25,500 | $ | 25,500 | |||||
Gaming licenses | Indefinite | 28,700 | 28,700 | |||||||
Customer lists | 3 | 2,861 | 2,861 | |||||||
Favorable lease | 5 - 42 | 15,645 | 15,645 | |||||||
Total intangible assets | 72,706 | 72,706 | ||||||||
Less accumulated amortization: | ||||||||||
Customer lists | (2,861 | ) | (2,702 | ) | ||||||
Favorable lease | (2,445 | ) | (2,059 | ) | ||||||
Total accumulated amortization | (5,306 | ) | (4,761 | ) | ||||||
Intangible assets, net | $ | 67,400 | $ | 67,945 |
June 30, 2013 | December 31, 2012 | ||||||
Investment in bonds—CRDA | $ | 16,619 | $ | 16,616 | |||
Less unamortized discount | (4,474 | ) | (4,498 | ) | |||
Less valuation allowance | (3,433 | ) | (3,415 | ) | |||
Deposits—CRDA | 29,267 | 29,751 | |||||
Less valuation allowance | (6,932 | ) | (6,987 | ) | |||
Direct investment—CRDA | 3,314 | 4,612 | |||||
Less valuation allowance | (673 | ) | (1,280 | ) | |||
Total investments | $ | 33,688 | $ | 34,799 |
June 30, 2013 | December 31, 2012 | ||||||
Debt issuance costs | $ | 2,693 | $ | 2,910 | |||
Tropicana Evansville prepaid rent | 3,825 | 5,175 | |||||
Deposits | 4,718 | 6,176 | |||||
Other | 3,256 | 2,022 | |||||
Other assets | $ | 14,492 | $ | 16,283 |
June 30, 2013 | December 31, 2012 | ||||||
Accrued payroll and benefits | $ | 25,910 | $ | 24,403 | |||
Accrued gaming and related | 9,849 | 10,604 | |||||
Accrued taxes | 6,478 | 10,302 | |||||
Predecessors' administrative tax claim | 9,792 | 9,792 | |||||
Other accrued expenses and current liabilities | 7,353 | 9,798 | |||||
Total accrued expenses and other current liabilities | $ | 59,382 | $ | 64,899 |
June 30, 2013 | December 31, 2012 | ||||||
New Term Loan Facility, due 2018, interest at 7.5% at March 31, 2013 and December 31, 2012, net of unamortized discount of $2.7 million and $3.0 million at June 30, 2013 and December 31, 2012, respectively | $ | 170,084 | $ | 170,665 | |||
Other long-term debt | — | 89 | |||||
Total long-term debt | 170,084 | 170,754 | |||||
Less current portion of debt | (1,750 | ) | (1,795 | ) | |||
Total long-term debt, net | $ | 168,334 | $ | 168,959 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Impairment of barge (Note 4) | $ | — | $ | — | $ | 439 | $ | — | ||||||||
Impairment of intangible assets (Note 5) | — | 1,776 | — | 1,776 | ||||||||||||
Loss on disposal of assets | 190 | 95 | 259 | 80 | ||||||||||||
Total impairment charges and other | $ | 190 | $ | 1,871 | $ | 698 | $ | 1,856 |
June 30, 2013 | December 31, 2012 | ||||||
Cash | $ | 1,965 | $ | 2,280 | |||
Receivables, net | 884 | 683 | |||||
Property and equipment, net | 6,428 | 6,561 | |||||
Other assets | 2,318 | 2,195 | |||||
Total assets held for sale | 11,595 | 11,719 | |||||
Accounts payable | 511 | 1,085 | |||||
Accrued expenses and other liabilities | 1,303 | 1,354 | |||||
Total liabilities related to assets held for sale | $ | 1,814 | $ | 2,439 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net revenues | $ | 4,745 | $ | 4,873 | $ | 9,592 | $ | 10,771 | |||||||
Operating costs and expenses | (4,491 | ) | (5,347 | ) | (9,292 | ) | (10,627 | ) | |||||||
Impairment of discontinued operations | (1,454 | ) | — | (1,454 | ) | — | |||||||||
Income (loss) from operations | (1,200 | ) | (474 | ) | (1,154 | ) | 144 | ||||||||
Income tax benefit (expense) | 370 | (201 | ) | 370 | 61 | ||||||||||
Income (loss) from discontinued operations, net | $ | (830 | ) | $ | (675 | ) | $ | (784 | ) | $ | 205 |
Three months ended June 30, | |||||||
2013 | 2012 | ||||||
Net revenues: | |||||||
East | $ | 66,527 | $ | 75,082 | |||
Central | 30,444 | 30,876 | |||||
West | 24,451 | 23,899 | |||||
South and other | 22,329 | 28,879 | |||||
Corporate | — | — | |||||
Total net revenues | $ | 143,751 | $ | 158,736 | |||
Operating income: | |||||||
East | $ | 8,535 | $ | 4,755 | |||
Central | 8,158 | 7,046 | |||||
West | 2,915 | 2,206 | |||||
South and other | 1,275 | 5,609 | |||||
Corporate | (2,575 | ) | (4,106 | ) | |||
Total operating income | $ | 18,308 | $ | 15,510 | |||
Reconciliation of operating income to income from continuing operations before income taxes: | |||||||
Operating income | $ | 18,308 | $ | 15,510 | |||
Interest expense | (3,605 | ) | (3,645 | ) | |||
Interest income | 216 | 193 | |||||
Income from continuing operations before income taxes | $ | 14,919 | $ | 12,058 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Net revenues: | |||||||
East | $ | 122,698 | $ | 134,975 | |||
Central | 61,446 | 63,069 | |||||
West | 50,658 | 50,487 | |||||
South and other | 47,310 | 59,538 | |||||
Corporate | — | — | |||||
Total net revenues | $ | 282,112 | $ | 308,069 | |||
Operating income: | |||||||
East | $ | 7,265 | $ | (238 | ) | ||
Central | 15,320 | 14,469 | |||||
West | 7,000 | 7,266 | |||||
South and other | 3,656 | 12,826 | |||||
Corporate | (5,580 | ) | (6,800 | ) | |||
Total operating income | $ | 27,661 | $ | 27,523 | |||
Reconciliation of operating income to income from continuing operations before income taxes: | |||||||
Operating income | $ | 27,661 | $ | 27,523 | |||
Interest expense | (7,180 | ) | (9,821 | ) | |||
Interest income | 403 | 332 | |||||
Loss on debt retirement | — | (12,847 | ) | ||||
Income from continuing operations before income taxes | $ | 20,884 | $ | 5,187 |
Assets by segment: | June 30, 2013 | December 31, 2012 | |||||
East | $ | 362,012 | $ | 343,777 | |||
Central | 151,635 | 154,860 | |||||
West | 106,327 | 106,235 | |||||
South and other | 117,236 | 118,197 | |||||
Corporate | 166,563 | 167,451 | |||||
Assets held for sale | 11,595 | 11,719 | |||||
Total assets | $ | 915,368 | $ | 902,239 |
• | East—Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located in Atlantic City, New Jersey; |
• | Central— Tropicana Evansville ("Tropicana Evansville") located in Evansville, Indiana; |
• | West—Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in South Lake Tahoe, Nevada; |
• | South and other—Belle of Baton Rouge Casino and Hotel ("Belle of Baton Rouge") located in Baton Rouge, Louisiana; Trop Casino Greenville ("Tropicana Greenville") located in Greenville, Mississippi; and Tropicana Aruba Resort and Casino ("Tropicana Aruba") located in Noord, Aruba. |
• | Tropicana AC. In addition to its traditional guests, Tropicana AC's marketing strategy targets high end table games players to counter the increased competition from Pennsylvania and other surrounding markets. Casino revenues can vary because of table games hold percentage and differences in the odds for different table games. High end play may lead to greater fluctuations in our table games hold percentage and, as a result, we may experience greater revenue fluctuation between reporting periods due to this marketing strategy. For the three months ended June 30, 2013, the table game hold percentage decreased 0.3 percentage points compared to the same period in the prior year. For the six months ended June 30, 2013, the table game hold percentage increased 3.2 percentage points compared to the same period in the prior year. This hold percentage is not necessarily indicative of results that can be expected for future periods. |
• | General Economic Conditions. Uncertain economic conditions continue to adversely impact us and the gaming industry as a whole. |
• | Debt and Interest Expense. In March 2012, we entered into the credit facilities (the "Credit Facilities"), which consist of (i) a senior secured first lien term loan facility in an aggregate principal amount of $175 million issued at a discount of 2% (the "New Term Loan Facility") and (ii) a cash collateralized letter of credit facility in a maximum aggregate amount of $15 million (the "Letter of Credit Facility"). Commencing on June 30, 2012, the New Term Loan Facility requires quarterly principal payments of 0.25% of the original principal amount through December 2017 with the remaining outstanding amounts due on March 16, 2018, the maturity date. The obligations under the New Term Loan Facility bear interest at a floating rate which was 7.50% as of June 30, 2013. A portion of the net proceeds from the New Term Loan Facility was used to repay in full the amounts outstanding under the Exit Facility which totaled approximately $107.7 million in repaid principal, accrued and unpaid interest and the applicable prepayment penalty. We recognized a $12.8 million loss on debt retirement which includes a $2.0 million prepayment penalty and a $10.8 million write-off of unamortized debt issuance costs and discounts during the six months ended June 30, 2012. An entity affiliated with Carl C. Icahn, the chairman of our Board of Directors and, through Icahn Enterprises, our principal beneficial stockholder, was a lender under the Exit Facility and held more than 50% of the loans extended |
• | Superstorm Sandy. In October 2012, Superstorm Sandy forced a city-mandated closure of all casinos in Atlantic City for approximately five days. Although Tropicana AC did not incur any significant property damage, the severity of the property damage to a large portion of the Atlantic City feeder markets including New Jersey, New York and Pennsylvania resulted in long term business interruption that has continued into 2013 and materially affected operating results. Our 2013 results were adversely affected due to the business interruption encountered as a result of Superstorm Sandy. We have filed a claim with our insurance carriers relating to business interruption as a result of Superstorm Sandy. Recoveries, if any, under these policies will be net of applicable deductibles. |
• | River Palms. In April 2013, the Company entered into an agreement to sell substantially all of the assets and certain liabilities of River Palms, and as a result, its operations are presented as discontinued operations while its assets and liabilities are presented as held for sale. The transaction is subject to regulatory approval and certain other conditions precedent and is expected to close in the third quarter of 2013, although the Company can make no assurances that the conditions will be satisfied or that the sale will be consummated in a timely manner, if at all. |
• | Tropicana Greenville. In April 2012 we closed the Jubilee riverboat facility and in May 2012 we consolidated its operations with Tropicana Greenville. |
Three months ended June 30, | ||||||||
2013 | 2012 | |||||||
Net revenues: | ||||||||
East | $ | 66,527 | $ | 75,082 | ||||
Central | 30,444 | 30,876 | ||||||
West | 24,451 | 23,899 | ||||||
South and other | 22,329 | 28,879 | ||||||
Corporate | — | — | ||||||
Total net revenues | $ | 143,751 | $ | 158,736 | ||||
Operating income (loss): | ||||||||
East | $ | 8,535 | $ | 4,755 | ||||
Central | 8,158 | 7,046 | ||||||
West | 2,915 | 2,206 | ||||||
South and other | 1,275 | 5,609 | ||||||
Corporate | (2,575 | ) | (4,106 | ) | ||||
Total operating income | $ | 18,308 | $ | 15,510 | ||||
Operating income margin(a): | ||||||||
East | 12.8 | % | 6.3 | % | ||||
Central | 26.8 | % | 22.8 | % | ||||
West | 11.9 | % | 9.2 | % | ||||
South and other | 5.7 | % | 19.4 | % | ||||
Total operating income margin | 12.7 | % | 9.8 | % |
Three months ended June 30, | ||||||||
2013 | 2012 | |||||||
Revenues: | ||||||||
Casino | $ | 115,213 | $ | 128,698 | ||||
Room | 21,493 | 24,186 | ||||||
Food and beverage | 18,821 | 21,053 | ||||||
Other | 5,207 | 5,786 | ||||||
Gross revenues | 160,734 | 179,723 | ||||||
Less promotional allowances | (16,983 | ) | (20,987 | ) | ||||
Net revenues | $ | 143,751 | $ | 158,736 |
Six months ended June 30, | ||||||||
2012 | 2012 | |||||||
Net revenues: | ||||||||
East | $ | 122,698 | $ | 134,975 | ||||
Central | 61,446 | 63,069 | ||||||
West | 50,658 | 50,487 | ||||||
South and other | 47,310 | 59,538 | ||||||
Corporate | — | — | ||||||
Total net revenues | $ | 282,112 | $ | 308,069 | ||||
Operating income: | ||||||||
East | $ | 7,265 | $ | (238 | ) | |||
Central | 15,320 | 14,469 | ||||||
West | 7,000 | 7,266 | ||||||
South and other | 3,656 | 12,826 | ||||||
Corporate | (5,580 | ) | (6,800 | ) | ||||
Total operating income | $ | 27,661 | $ | 27,523 | ||||
Operating income margin(a): | ||||||||
East | 5.9 | % | (0.2 | )% | ||||
Central | 24.9 | % | 22.9 | % | ||||
West | 13.8 | % | 14.4 | % | ||||
South and other | 7.7 | % | 21.5 | % | ||||
Total operating income margin | 9.8 | % | 8.9 | % |
Six months ended June 30, | ||||||||
2013 | 2012 | |||||||
Revenues: | ||||||||
Casino | $ | 228,017 | $ | 251,815 | ||||
Room | 41,028 | 46,168 | ||||||
Food and beverage | 37,825 | 41,260 | ||||||
Other | 10,138 | 10,916 | ||||||
Gross revenues | 317,008 | 350,159 | ||||||
Less promotional allowances | (34,896 | ) | (42,090 | ) | ||||
Net revenues | $ | 282,112 | $ | 308,069 |
Six months ended June 30, | ||||||||
2013 | 2012 | |||||||
Cash Flow Information: | ||||||||
Net cash provided by operating activities | $ | 34,192 | $ | 37,523 | ||||
Net cash used in investing activities | (31,988 | ) | (22,284 | ) | ||||
Net cash provided by (used in) financing activities | (977 | ) | 60,020 | |||||
Net increase in cash and cash equivalents | $ | 1,227 | $ | 75,259 |
Exhibit Number | Exhibit Description | |||
2.1 | First Amended Joint Plan of Reorganization of Tropicana Entertainment, LLC and Certain of its Debtor Affiliates Under Chapter 11 of the Bankruptcy Code. (Incorporated by reference to the Company's Amendment No. 1 to Form 10 dated December 21, 2009) | |||
2.2 | Amended and Restated Purchase Agreement, dated as of November 20, 2009, among Adamar of New Jersey, Inc., Manchester Mall, Inc., the Honorable Gary S. Stein, Tropicana Entertainment, LLC, Ramada New Jersey Holdings Corporation, Atlantic-Deauville, Inc., Adamar Garage Corporation, Ramada New Jersey, Inc., Credit Suisse, Tropicana Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana AC Sub Corp. (Schedules omitted pursuant to Item 601(b)(2) of Regulation S-K; the Registrant will furnish supplementally a copy of the omitted schedules to the Commission upon request.) (Incorporated by reference to the Company's Amendment No. 1 to Form 10 dated December 21, 2009) | |||
3.1 | Amended and Restated Certificate of Incorporation of Tropicana Entertainment Inc. (Incorporated by reference to the Company's Current Report on Form 8-K dated March 11, 2010) | |||
3.2 | Second Amended and Restated Bylaws of Tropicana Entertainment Inc. (Incorporated by reference to the Company's Current Report on Form 8-K dated January 7, 2011) | |||
4.1 | Specimen Certificate for shares of Common Stock, par value $0.01 per share, of the Registrant. (Incorporated by reference to the Company's Post-Effective Amendment No. 1 to Form 10 dated January 25, 2010) | |||
4.2 | Form of Stock Purchase Warrant issued to general unsecured creditors of the Predecessors. (Incorporated by reference to the Company's Amendment No. 1 to Form 10 dated December 21, 2009) | |||
4.3 | Form of Stock Purchase Warrant issued to lenders under the Exit Facility. (Incorporated by reference to the Company's Current Report on Form 8-K dated March 11, 2010) | |||
31.1* | Certification by Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
31.2* | Certification by Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
32* | Certification by Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
101** | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2013 (unaudited) and December 31, 2012 (audited); (ii) Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2013 and 2012; (iii) Unaudited Statements of Cash Flows for the six months ended June 30, 2013 and 2012; and (iv) Notes to the Condensed Consolidated Financial Statements (unaudited). | |||
* | Filed herewith | |||
** | This exhibit is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. | |||
TROPICANA ENTERTAINMENT INC. | |||||
Date: | August 5, 2013 | By: | /s/ LANCE J. MILLAGE | ||
Name: | Lance J. Millage | ||||
Title: | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
/s/ ANTHONY P. RODIO |
Anthony P. Rodio Chief Executive Officer (Principal Executive Officer) |
/s/ LANCE J. MILLAGE |
Lance J. Millage Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
/s/ ANTHONY P. RODIO |
Anthony P. Rodio Chief Executive Officer (Principal Executive Officer) |
/s/ LANCE J. MILLAGE |
Lance J. Millage Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
COMMITMENTS AND CONTINGENCIES
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6 Months Ended |
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Jun. 30, 2013
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases MontBleu Lease The Company has a lease agreement with respect to the land and building which MontBleu operates, through December 31, 2028. Under the terms of the lease, rent is $333,333 per month, plus 10% of annual gross revenues in excess of $50 million through December 31, 2011. After December 31, 2011, rent is equal to the greater of (i) $333,333 per month as increased by the same percentage that the consumer price index has increased from 2009 thereafter, plus 10% of annual gross revenues in excess of a Breakpoint as defined in the terms of the lease agreement, or (ii) 10% of annual gross revenues. In connection with fresh-start reporting, the Company recognized an unfavorable lease liability of $9.6 million related to this lease that will be amortized on a straight-line basis to rental expense over the remaining term of the lease. The unfavorable lease liability balance was $7.9 million and $8.2 million on the accompanying condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012, respectively. Tropicana Evansville Land Lease The Company leases from the City of Evansville, Indiana approximately ten acres of the approximately 20 acres on which Tropicana Evansville is situated. Under the terms of the lease, the Company may extend the lease term through November 30, 2040 by exercising up to seven five-year renewal options. In March 2010, the Company amended the Tropicana Evansville land lease and exercised its second of its seven renewal options which extends the lease term through November 2015. Under the terms of the lease renewal, effective December 1, 2010, the Company is required to pay a percentage of the adjusted gross receipts ("AGR") for the year in rent with a minimum annual rent of no less than $2.0 million. The percentage rent shall be equal to 2% of the AGR up to $25 million, plus 4% of the AGR in excess of $25 million up to $50 million, plus 6% of the AGR in excess of $50 million up to $75 million, plus 8% of the AGR in excess of $75 million up to $100 million and plus 12% of the AGR in excess of $100 million. In accordance with the lease renewal, during 2010 the Company paid a total of $13.5 million for the prepayment of rent to the City of Evansville for the period between January 2011 and December 2015. In addition, per the terms of the lease, the Company agreed to construct a pedestrian bridge to Tropicana Evansville as a leasehold improvement at an estimated cost of approximately $3.0 million to be completed within three years after the Effective Date. The bridge opened in April 2012 at a cost of approximately $3.4 million. Belle of Baton Rouge Lease Belle of Baton Rouge leases certain land and buildings under separate leases, with annual payments of $0.3 million which run through 2013 with options to extend for up to 70 years. In addition, Belle of Baton Rouge leases a parking lot with annual base rent of approximately $0.4 million, plus 0.94% of annual adjusted gross revenue in excess of $45 million but not to exceed $80 million through August 2015. Tropicana Greenville Lease Tropicana Greenville leases approximately four acres of land on which the docking, entry and parking facilities of the casino are situated. Tropicana Greenville is required to pay an amount equal to 2% of its monthly gross gaming revenues in rent, with a minimum monthly payment of $75,000. In addition, in any given year in which annual gross gaming revenues exceed $36.6 million, Tropicana Greenville is required to pay 8% of the excess amount as rent pursuant to the terms of the lease. The current lease expires in 2019 with options to extend its term through 2044. Jubilee Lease The Company has a lease agreement with the City of Greenville, Mississippi, for the moorage, docking and berthing of Jubilee. The current lease with the City of Greenville requires annual rental payments of $0.4 million which expires in August 2020 and provides the Company with the option of two five-year renewals. Jubilee ceased operations at its riverboat facility in April 2012. The Company is evaluating its future uses of the Jubilee facility. Under the terms of the lease, the Company is obligated to continue rent payments and in April 2013 the vessel was moved to a dry dock facility in Amelia, Louisiana. Tropicana Aruba Land Lease The Company assumed a land lease in August 2010 for approximately 14 acres of land on which Tropicana Aruba is situated through July 30, 2051. Under the terms of the land lease, the annual rent is $93,000. Other Commitments and Contingencies 2011 New Jersey Legislation On February 1, 2011, the Governor of New Jersey signed two pieces of legislation, effective on that date, S-11 (the "Tourism District Bill") and S-12 (the "Deregulation Bill"). The overall intent of the Tourism District Bill delegates redevelopment authority and creation of a master plan to the CRDA and allows the CRDA the ability to enter into a five year public private partnership with the casinos in Atlantic City that have formed the Atlantic City Alliance ("ACA") to jointly market the city. Through this legislation the Atlantic City Casinos are required to contribute $5.0 million prior to 2012. Thereafter, the legislation obligates the Atlantic City Casinos either through the ACA or, if not a member of the ACA, through individual assessments, to provide funding for the Tourism District Bill in the aggregate amount of $30.0 million annually over the next five years. Each Atlantic City Casino's proportionate share of the assessment will be based on the gross revenue generated in the preceding fiscal year. The Company estimates its portions of these industry obligations to be approximately 7.8%. The Deregulation Bill removes duplicative and onerous functions that both the New Jersey Casino Control Commission (the "NJCCC") and the Division of Gaming Enforcement currently require the Atlantic City Casinos to perform. Reforms in technology, internal controls, and licensing requirements are among the many amendments effected by the New Jersey Casino Control Act, which is expected to provide the industry significant cost savings and make it more competitive in the market. New Jersey CRDA The NJCCC imposes an annual tax of 8% on gross casino revenue. Pursuant to legislation adopted in 1984, casino licensees are required to invest an additional 1.25% of gross casino revenue for the purchase of bonds to be issued by the CRDA or make other approved investments equal to that amount; in the event the investment requirement is not met, the casino licensee is subject to a tax of 2.5% percent on gross casino revenue. As mandated by the legislation, the interest rate of the CRDA bonds purchased by the licensee will be two-thirds of the average market rate for bonds available for purchase and published by a national bond index at the time of the CRDA bond issuance. Wimar and CSC Administrative Expense Claims On March 31, 2009, Wimar Tahoe Corporation ("Wimar") and Columbia Sussex Corporation ("CSC") filed separate proceedings with the Bankruptcy Court related to administrative expense claims against the Predecessors. On August 4, 2010, Wimar and CSC separately filed motions for summary judgment seeking payment on account of these claims from the Company totaling approximately $5.4 million, which was recorded as a liability upon emergence from bankruptcy and is included in accounts payable in our accompanying condensed consolidated balance sheet as of June 30, 2013 and December 31, 2012. In its objection to Wimar and CSC's motions for summary judgment, the Company disputes the administrative expense and/or priority status of certain amounts claimed and also contends that any payment to CSC or Wimar should await the resolution of the adversary proceeding instituted by Lightsway Litigation Services, LLC, as Trustee of the Tropicana Litigation Trust established in the voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, against CSC and Wimar. On June 24, 2011, the Company, CSC, and Wimar, along with certain other parties, participated in mediation concerning Wimar and CSC's claims, but the mediation terminated without resolution of the claims. Oral argument on the summary judgment motions were conducted on September 27, 2011 and November 22, 2011, the parties are awaiting the Court's decision regarding these motions. Aztar v. Marsh Aztar Corporation ("Aztar") filed a broker malpractice and breach of contract action in the Superior Court of New Jersey, Atlantic County, Law Division (the “Court”) on August 12, 2010, against Marsh & McLennan Companies, Marsh, Inc., Marsh USA, Inc. and various fictitious Marsh entities (together, the "Marsh Defendants"). The claim seeks $100 million or more in compensatory damages against the Marsh Defendants, Aztar's risk management and insurance brokers at the time of a 2002 expansion of Tropicana AC by Aztar, including, but not limited to, lost profits, expenses arising from the interruption of operations, attorneys' fees, loss of the use of the insurance proceeds at issue, and litigation expenses resulting from the Marsh Defendants' failure to secure for Aztar business interruption and property damage coverage covering losses sustained by Aztar from the collapse of a parking garage that occurred at Tropicana AC on October 30, 2003. The Marsh Defendants filed an answer on October 20, 2010 denying the material allegations of the complaint and subsequently filed a Motion to Dismiss for Forum Non Conveniens in December 2010, which motion was denied by the Court on April 12, 2011. On August 18, 2011 the Marsh Defendants filed a Motion for Summary Judgment arguing that the Court should apply the Arizona Statue of Limitations to the action. Aztar filed an objection to the Marsh Defendants' motion on September 23, 2011 arguing, inter alia, that the New Jersey Statute of Limitations applies to the action. The Marsh Defendants filed its Reply on October 3, 2011. The motion was argued in January 2012. In April 2012, the Court granted the Marsh Defendants' Motion for Summary Judgment dismissing Aztar's complaint with prejudice. Aztar subsequently filed a Motion for Reconsideration with the Court, which was denied. In September 2012, Aztar filed an appeal of the Court's decision to dismiss the case with the Superior Court of New Jersey, Appellate Division, which appeal is currently pending. A hearing on the appeal was held in May 2013. Any recovery obtained by Aztar in this action will be recoverable by the Company as the current owner of Tropicana AC. Nevada Use Tax Claims On March 27, 2008, the Nevada Supreme Court issued a decision in Sparks Nugget, Inc. vs. The State of Nevada Department of Taxation (the "Sparks Decision"), that food purchased for subsequent use in the provision of complimentary and/or employee meals was exempt from both sales and use tax. The Predecessors had previously paid use tax on food purchased for subsequent use in complimentary and employee meals at our Nevada casino properties and subsequently filed refund claims for the periods from February 2000 through March 2008 (“Predecessor Refund Claims”). The Company also claimed sales and use tax exemptions on tax returns for periods from March 2008 to February 2012 (“Company Exemption Claims”) based on the Sparks Decision and did not accrue or pay any sales or use tax for that period. Subsequently, the Nevada Department of Taxation (“Department”) asserted that gaming companies should pay sales tax on customer complimentary meals and employee meals on a prospective basis based upon a Nevada Tax Commission (“Commission”) decision concerning another gaming company that determined complimentary meals provided to customers are subject to sales tax at the retail value of the meal and employee meals are subject to sales tax at the cost of the meal. The other gaming company filed in Clark County District Court a petition for judicial review of the Commission decision. Based upon the Commission decision, the Company subsequently accrued for but did not remit any tax, as it disagreed with the position asserted by the Department and the Commission. In May 2013, the Department, the Commission and the Company (among others) entered into a settlement agreement (the “Settlement”) to resolve the Predecessor Refund Claims and the Company Exemption Claims. Pursuant to the Settlement, the Company will receive partial refunds and tax credits in the amount of approximately $1.0 million related to the Predecessor Refund Claims. The Settlement was contingent upon enactment of legislation by the State of Nevada (“Assembly Bill 506”) that clarified that food, meals and non-alcoholic beverages provided on a complimentary basis to employees, patrons or guests of a retailer are not subject to sales or use tax. Assembly Bill 506 was enacted in June 2013. As a result of the Settlement, the Company reversed accrued sales and use taxes of $0.5 million and recognized the adjustment as a reduction to general and administrative expenses from continuing operations in the accompanying condensed consolidated statements of income. Greenville Riverboat, LLC Appraisal Action On October 28, 2010, immediately following Mississippi Gaming Commission approval, the Company elected to effect a merger which resulted in the purchase of the minority interests in Greenville Riverboat, LLC, the Company's subsidiary that owns Tropicana Greenville (formerly Lighthouse Point Casino). The minority owner received $2.5 million in January 2011, and exercised its appraisal rights requesting an additional $3.2 million as payment for its minority interest. The minority owner also asserted certain cross claims against Tropicana Greenville in the appraisal proceedings for additional distributions. In December 2012 a Special Master appointed by the court submitted a business valuation report to the court appraising the minority interest at approximately $2.6 million. The Company filed exceptions seeking a further reduction to approximately $2.3 million. In June 2013, the parties agreed to and executed a settlement pursuant to which the Company paid an additional $80,000 to the minority owner in exchange for a full release and dismissal of all claims. The case was subsequently dismissed by the Court. Tropicana AC Tax Appeal Settlement In January 2013 we settled outstanding real estate tax appeals involving our Tropicana AC property with the City of Atlantic City. The settlement involves the tax years 2008 through 2012 and also covers negotiated real estate assessments for 2013 and 2014. Under the terms of the settlement, Tropicana AC will receive a $49.5 million refund in the form of credits against future year real estate tax bills beginning in 2013 and ending in 2017. The credits are front-loaded in 2013 and 2014 so that after the credits are applied, Tropicana will pay $1.8 million in taxes in 2013 and $3.0 million in taxes in 2014, with the remainder of the credits spread over the remaining three years, 2015 through 2017. The Company will recognize these credits as a reduction to operating expenses in the periods they are utilized. In addition, the Company expensed $4.1 million in professional fees related to this settlement in the six months ended June 30, 2013. Litigation in General The Company is a party to various litigation that arises in the ordinary course of business. In the opinion of management, all pending legal matters are either adequately covered by insurance or, if not insured, will not have a material adverse effect on the financial position or the results of operations of the Company. |
INCOME TAXES (Details)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Income Tax Disclosure [Abstract] | ||||
Effective income tax rate from continuing operations | 7.20% | 21.80% | 8.50% | 28.00% |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Revenues: | ||||
Casino | $ 115,213 | $ 128,698 | $ 228,017 | $ 251,815 |
Room | 21,493 | 24,186 | 41,028 | 46,168 |
Food and beverage | 18,821 | 21,053 | 37,825 | 41,260 |
Other | 5,207 | 5,786 | 10,138 | 10,916 |
Gross revenues | 160,734 | 179,723 | 317,008 | 350,159 |
Less promotional allowances | (16,983) | (20,987) | (34,896) | (42,090) |
Net revenues | 143,751 | 158,736 | 282,112 | 308,069 |
Operating costs and expenses: | ||||
Casino | 48,815 | 55,897 | 98,807 | 112,896 |
Room | 8,084 | 9,119 | 15,189 | 16,734 |
Food and beverage | 9,451 | 9,385 | 18,470 | 18,491 |
Other | 3,938 | 4,456 | 7,326 | 7,838 |
Marketing, advertising and promotions | 10,552 | 10,255 | 19,430 | 18,978 |
General and administrative | 22,326 | 29,842 | 50,597 | 59,476 |
Maintenance and utilities | 13,883 | 14,399 | 27,336 | 28,432 |
Depreciation and amortization | 8,204 | 8,002 | 16,598 | 15,845 |
Impairment charges and other | 190 | 1,871 | 698 | 1,856 |
Total operating costs and expenses | 125,443 | 143,226 | 254,451 | 280,546 |
Operating income | 18,308 | 15,510 | 27,661 | 27,523 |
Other income (expense): | ||||
Interest expense | (3,605) | (3,645) | (7,180) | (9,821) |
Interest income | 216 | 193 | 403 | 332 |
Loss on debt retirement | 0 | 0 | 0 | (12,847) |
Total other income (expense) | (3,389) | (3,452) | (6,777) | (22,336) |
Income from continuing operations before income taxes | 14,919 | 12,058 | 20,884 | 5,187 |
Income tax expense | (1,079) | (2,623) | (1,765) | (1,453) |
Income from continuing operations | 13,840 | 9,435 | 19,119 | 3,734 |
Income (loss) from discontinued operations, net | (830) | (675) | (784) | 205 |
Net income | $ 13,010 | $ 8,760 | $ 18,335 | $ 3,939 |
Basic and diluted income per common share: | ||||
Income from continuing operations (in dollars per share) | $ 0.53 | $ 0.36 | $ 0.73 | $ 0.14 |
Income (loss) from discontinued operations, net (in dollars per share) | $ (0.03) | $ (0.03) | $ (0.03) | $ 0.01 |
Net income (loss) (in dollars per share) | $ 0.50 | $ 0.33 | $ 0.70 | $ 0.15 |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 26,313 | 26,313 | 26,313 | 26,313 |
GOODWILL AND INTANGIBLE ASSETS
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of Goodwill are as follows (in thousands):
Intangible assets consist of the following (in thousands):
Upon the adoption of fresh-start reporting, the Company recognized $29.5 million in an indefinite life trade name related to the "Tropicana" trade name which was reduced by a $3.7 million impairment loss during the fourth quarter of 2010 and an additional $0.3 million impairment loss in the fourth quarter of 2011. The Company also recognized, upon the adoption of fresh-start reporting, $44.0 million of indefinite life gaming licenses related to entities that are located in gaming jurisdictions where competition is limited to a specified number of licensed gaming operators, which was reduced by a $15.3 million impairment loss during the fourth quarter of 2010. At June 30, 2013, the indefinite life gaming license of $28.7 million is related to Tropicana Evansville. Customer lists, which represent the value associated with customers enrolled in our customer loyalty programs, were valued at $1.5 million upon adoption of fresh-start reporting and $1.4 million was also recognized in connection with the Tropicana AC acquisition and are being amortized on a straight-line basis over three years. As of February 2013 the value associated with the customer lists were fully amortized. Amortization expense related to customer lists, which is amortized to depreciation and amortization expense, for the three months ended June 30, 2012 was $0.3 million. Amortization expense for the six months ended June 30, 2013 and 2012 was $0.2 million and $0.5 million, respectively. Favorable lease arrangements were valued at $8.6 million upon adoption of fresh-start reporting and are being amortized to rental expense on a straight-line basis over 30 years, which approximates the remaining useful life of the respective leased facility. In the second quarter of 2012, the Company determined that certain lease arrangements valued upon adoption of fresh-start reporting were overstated; accordingly, the Company reduced the intangible asset, net of accumulated amortization, by $5.3 million as of June 30, 2012. In connection with the Tropicana AC acquisition, the Company also recognized $5.2 million of intangibles assets relating to favorable lease arrangements which are being amortized to tenant income on a straight-line basis over the terms of the various leases. In the second quarter of 2012, management reviewed the tenant leases at Tropicana AC and determined that there was a $1.8 million impairment due to certain original tenant leases being terminated early. The remaining balance will continue to be amortized over the remaining useful life. Additionally, in connection with the acquisition of Tropicana Aruba, the Company recognized $10.3 million of intangible assets relating to a favorable land lease arrangement which is amortized to rental expense on a straight-line basis over the remaining term of the land lease of approximately 42 years. Amortization expense related to favorable lease arrangements, which is amortized to rental expense or tenant income, as applicable, for the three months ended June 30, 2013 and 2012, was $0.2 million and $0.2 million, respectively. Amortization expense for the six months ended June 30, 2013 and 2012 was $0.4 million and $0.5 million, respectively. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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Jun. 30, 2013
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs and expenses of promotional allowances | The estimated departmental costs and expenses of providing these promotional allowances, for continuing operations, are included in casino operating costs and expenses and consist of the following (in thousands):
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STOCKHOLDERS' EQUITY
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6 Months Ended |
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Jun. 30, 2013
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Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common Stock The Company is authorized to issue up to 100 million shares of its common stock, $0.01 par value per share ("Common Stock"), of which 26,312,500 shares were issued and outstanding as of June 30, 2013. Each holder of Common Stock is entitled to one vote for each share held of record on each matter submitted to a vote of stockholders. The holders of Common Stock have no cumulative voting rights, preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Common Stock. Subject to any preferences that may be granted to the holders of the Company's preferred stock, each holder of Common Stock is entitled to receive ratably such dividends as may be declared by the Board of Directors out of funds legally available therefore, as well as any distributions to the stockholders and, in the event of the Company's liquidation, dissolution or winding up is entitled to share ratably in all the Company's assets remaining after payment of liabilities. Preferred Stock The Company is authorized to issue up to 10 million shares of preferred stock, $0.01 par value per share, of which none were issued as of June 30, 2013. The Board of Directors, without further action by the holders of Common Stock, may issue shares of preferred stock in one or more series and may fix or alter the rights, preferences, privileges and restrictions, including the voting rights, redemption provisions (including sinking fund provisions), dividend rights, dividend rates, liquidation rates, liquidation preferences, conversion rights and the description and number of shares constituting any wholly unissued series of preferred stock. Except as described above, the Board of Directors, without further stockholder approval, may issue shares of preferred stock with rights that could adversely affect the rights of the holders of Common Stock. The issuance of shares of preferred stock under certain circumstances could have the effect of delaying or preventing a change of control of TEI or other corporate action. Warrants In accordance with the Plan, holders of the Predecessors' $960 million of 95/8% Senior Subordinated Notes and general unsecured claims received warrants to purchase 3,750,000 shares of Common Stock ("Ordinary Warrants"). The Ordinary Warrants have a four year, six month term and an exercise price of $52.44 per share. The Company evaluated the Ordinary Warrants under current accounting pronouncements and determined they were properly classified as equity on the accompanying condensed consolidated balance sheet. The Company valued the Ordinary Warrants using the Black-Scholes option valuation model assuming a life of 4.5 years, a volatility factor of 61% and a risk free interest rate of 2.36%. The resulting value of $11.5 million was recorded as a reorganization item of the Predecessors statements of operations. Significant Ownership At June 30, 2013, Mr. Icahn indirectly controlled approximately 67.9% of the voting power of the Company's Common Stock and, by virtue of such stock ownership, is able to control or exert substantial influence over the Company, including the election of directors. The existence of a significant stockholder may have the effect of making it difficult for, or may discourage or delay, a third party from seeking to acquire a majority of the Company's outstanding Common Stock. Mr. Icahn's interests may not always be consistent with the Company's interests or with the interests of the Company's other stockholders. Mr. Icahn and entities controlled by him may also pursue acquisitions or business opportunities that may or may not be complementary to the Company's business. To the extent that conflicts of interest may arise between the Company and Mr. Icahn and his affiliates, those conflicts may be resolved in a manner adverse to the Company or its other shareholders. |
COMMITMENTS AND CONTINGENCIES - Leases (Details) (USD $)
|
6 Months Ended | 10 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
MontBleu Lease
|
Dec. 31, 2011
MontBleu Lease
|
Mar. 08, 2010
MontBleu Lease
|
Jun. 30, 2013
MontBleu Lease
Through December 31, 2011
|
Jun. 30, 2013
MontBleu Lease
After December 31, 2011
|
Jun. 30, 2013
Casino Aztar Land Lease
RenewalOptions
acre
|
Dec. 31, 2010
Casino Aztar Land Lease
|
Mar. 31, 2010
Casino Aztar Land Lease
RenewalOptions
|
Jun. 30, 2013
Casino Aztar Land Lease
Minimum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 1
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 1
Maximum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 2
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 2
Minimum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 2
Maximum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 3
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 3
Minimum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 3
Maximum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 4
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 4
Minimum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 4
Maximum
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 5
|
Jun. 30, 2013
Casino Aztar Land Lease
Tier 5
Minimum
|
Jun. 30, 2013
Belle of Baton Rouge Lease
Certain Land and Buildings
|
Jun. 30, 2013
Belle of Baton Rouge Lease
Parking Lot
|
Jun. 30, 2013
Belle of Baton Rouge Lease
Minimum
Parking Lot
|
Jun. 30, 2013
Belle of Baton Rouge Lease
Maximum
Parking Lot
|
Jun. 30, 2013
Tropicana Greenville Lease
acre
|
Jun. 30, 2013
Tropicana Greenville Lease
Tier 1
|
Jun. 30, 2013
Tropicana Greenville Lease
Tier 1
Minimum
|
Jun. 30, 2013
Tropicana Greenville Lease
Tier 2
|
Jun. 30, 2013
Tropicana Greenville Lease
Tier 2
Minimum
|
Jun. 30, 2013
Jubilee Lease
RenewalOptions
|
Jun. 30, 2013
Tropicana Aruba Land Lease
acre
|
|
Contractual Obligations [Line Items] | |||||||||||||||||||||||||||||||||||
Monthly payment base | $ 333,333 | $ 75,000 | |||||||||||||||||||||||||||||||||
Amounts in addition to base rent, percent of gross revenues above threshold | 10.00% | ||||||||||||||||||||||||||||||||||
Gross revenue threshold for determining rent payment | 50,000,000 | ||||||||||||||||||||||||||||||||||
Monthly payment base subject to consumer price index adjustment | 333,333 | ||||||||||||||||||||||||||||||||||
Operating Leases, Amounts In Addition to Base Rent as Increased by CPI as compared to 2009, Percent of Gross Revenues Above a Breakpoint as defined in the lease agreement | 10.00% | ||||||||||||||||||||||||||||||||||
Rent payment, percent of gross revenues | 10.00% | ||||||||||||||||||||||||||||||||||
Unfavorable lease liability recognized | 9,600,000 | ||||||||||||||||||||||||||||||||||
Unfavorable lease liability balance | 7,457,000 | 7,686,000 | 7,900,000 | 8,200,000 | |||||||||||||||||||||||||||||||
Number of acres leased | 10 | 4 | 14 | ||||||||||||||||||||||||||||||||
Number of acres where casino resides | 20 | ||||||||||||||||||||||||||||||||||
Number of renewal options | 7 | 2 | |||||||||||||||||||||||||||||||||
Length of renewal option | 5 years | 70 years | 5 years | ||||||||||||||||||||||||||||||||
Number of renewal options exercised | 2 | ||||||||||||||||||||||||||||||||||
Annual rent | 2,000,000 | 300,000 | 400,000 | 420,000 | 93,000 | ||||||||||||||||||||||||||||||
Rent payment calculation, percent of adjusted gross revenues | 2.00% | 4.00% | 6.00% | 8.00% | 12.00% | 0.94% | |||||||||||||||||||||||||||||
Rent payment calculation, adjusted gross revenues | 25,000,000 | 25,000,000 | 50,000,000 | 50,000,000 | 75,000,000 | 75,000,000 | 100,000,000 | 100,000,000 | 45,000,000 | 80,000,000 | |||||||||||||||||||||||||
Prepayment of rent | 13,500,000 | ||||||||||||||||||||||||||||||||||
Estimated cost of agreed upon leasehold improvement | 3,000,000 | ||||||||||||||||||||||||||||||||||
Deadline to complete agreed upon leasehold improvement | 3 years | ||||||||||||||||||||||||||||||||||
Accumulated leasehold improvement expenditures | 3,400,000 | ||||||||||||||||||||||||||||||||||
Rent payment, percent of gross gaming revenues | 2.00% | 8.00% | |||||||||||||||||||||||||||||||||
Rent payment calculation, annual gross gaming revenues | $ 36,600,000 |
GOODWILL AND INTANGIBLE ASSETS (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of Goodwill | Changes in the carrying amount of Goodwill are as follows (in thousands):
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Intangible assets | Intangible assets consist of the following (in thousands):
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PROPERTY AND EQUIPMENT (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | Property and equipment consist of the following (in thousands):
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IMPAIRMENT CHARGES AND OTHER WRITE-DOWNS (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Impairment Charges and Other Write-Downs [Abstract] | ||||
Impairment charges | $ 0 | $ 0 | $ 439 | $ 0 |
Impairment of Intangible Assets, Finite-lived | 0 | 1,776 | 0 | 1,776 |
Gain (Loss) on Disposition of Assets | 190 | 95 | 259 | 80 |
Impairment charges and other | $ (190) | $ (1,871) | $ (698) | $ (1,856) |
SEGMENT INFORMATION (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment net revenues and operating income (loss) and reconciliation of operating income (loss) to income from continuing operations before income taxes | The following table highlights by segment our net revenues and operating income, and reconciles operating income (loss) to income from continuing operations before income taxes for the quarters ended June 30, 2013 and 2012 (in thousands):
The following table highlights by segment our net revenues and operating income, and reconciles operating income (loss)to income from continuing operations before income taxes for the six months ended June 30, 2013 and 2012 (in thousands, unaudited):
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Schedule of segment assets |
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GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Jun. 30, 2012
Customer lists
|
Jun. 30, 2013
Customer lists
|
Jun. 30, 2012
Customer lists
|
Dec. 31, 2012
Customer lists
|
Mar. 08, 2010
Customer lists
|
Mar. 08, 2010
Customer lists
Tropicana AC
|
Mar. 07, 2010
Favorable lease
|
Jun. 30, 2013
Favorable lease
|
Jun. 30, 2012
Favorable lease
|
Jun. 30, 2013
Favorable lease
|
Jun. 30, 2012
Favorable lease
|
Dec. 31, 2012
Favorable lease
|
Mar. 08, 2010
Favorable lease
|
Jun. 30, 2012
Favorable lease
Tropicana AC
|
Mar. 08, 2010
Favorable lease
Tropicana AC
|
Mar. 08, 2010
Favorable lease
Tropicana Aruba
|
Jun. 30, 2013
Favorable lease
Minimum
|
Jun. 30, 2013
Favorable lease
Maximum
|
Dec. 31, 2011
Trade name
|
Dec. 31, 2010
Trade name
|
Jun. 30, 2013
Trade name
|
Dec. 31, 2012
Trade name
|
Mar. 08, 2010
Trade name
|
Dec. 31, 2010
Gaming licenses
|
Jun. 30, 2013
Gaming licenses
|
Dec. 31, 2012
Gaming licenses
|
Mar. 08, 2010
Gaming licenses
|
|
Schedule of Intangible Assets [Line Items] | ||||||||||||||||||||||||||||||||
Intangible assets, indefinite-lived | $ 25,500,000 | $ 25,500,000 | $ 28,700,000 | $ 28,700,000 | ||||||||||||||||||||||||||||
Intangible assets, finite-lived | 2,861,000 | 2,861,000 | 15,645,000 | 15,645,000 | 15,645,000 | |||||||||||||||||||||||||||
Total intangible assets, gross | 72,706,000 | 72,706,000 | 72,706,000 | |||||||||||||||||||||||||||||
Total accumulated depreciation | (5,306,000) | (5,306,000) | (4,761,000) | (2,861,000) | (2,702,000) | (2,445,000) | (2,445,000) | (2,059,000) | ||||||||||||||||||||||||
Intangible assets, net | 67,400,000 | 67,400,000 | 67,945,000 | |||||||||||||||||||||||||||||
Estimated life | 3 years | 30 years | 5 years | 42 years | ||||||||||||||||||||||||||||
Adjustment to correct an immaterial error | 5,300,000 | |||||||||||||||||||||||||||||||
Nonamortizable intangible asset recognized upon adoption of fresh-start reporting | 29,500,000 | 44,000,000 | ||||||||||||||||||||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 300,000 | 3,700,000 | 15,300,000 | |||||||||||||||||||||||||||||
Impairment of Intangible Assets, Finite-lived | 0 | 1,776,000 | 0 | 1,776,000 | 1,800,000 | |||||||||||||||||||||||||||
Amortizable intangible asset recognized upon adoption of fresh-start reporting | 1,500,000 | 8,600,000 | ||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,400,000 | 5,200,000 | 10,300,000 | |||||||||||||||||||||||||||||
Amortization expense | $ 300,000 | $ 200,000 | $ 500,000 | $ 200,000 | $ 200,000 | $ 400,000 | $ 500,000 |
DEBT (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt consists of the following (in thousands):
|
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 25,910 | $ 24,403 |
Accrued gaming and related | 9,849 | 10,604 |
Accrued taxes | 6,478 | 10,302 |
Predecessors' administrative tax claim | 9,792 | 9,792 |
Other accrued expenses and current liabilities | 7,353 | 9,798 |
Total accrued expenses and other current liabilities | $ 59,382 | $ 64,899 |
RECEIVABLES (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables consist of the following (in thousands):
|
ORGANIZATION AND BACKGROUND
|
6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
ORGANIZATION AND BACKGROUND | ORGANIZATION AND BACKGROUND Organization Tropicana Entertainment Inc. (the "Company," "TEI," "we," "us," or "our"), a Delaware corporation, is an owner and operator of regional casino and entertainment properties located in the United States and one casino resort development located on the island of Aruba. The Company's United States properties include two casinos in Nevada and one casino in each of Indiana, Louisiana, Mississippi and New Jersey. The Company views each property as an operating segment which it aggregates by region in order to present its reportable segments: (i) East, (ii) Central, (iii) West and (iv) South and other. The current operations of the Company, by region, include the following:
In addition, the Company owns River Palms Hotel and Casino ("River Palms") located in Laughlin, Nevada, which is presented as discontinued operations in the accompanying condensed consolidated statements of income while the assets and liabilities are presented as held for sale in the accompanying condensed consolidated balance sheets as a result of the asset purchase agreement entered into in April 2013. In April 2012, the Bayou Caddy's Jubilee Casino ("Jubilee") riverboat facility was closed and its operations were consolidated into Trop Casino Greenville as part of a project to expand and rebrand that property. The grand opening of Trop Casino Greenville occurred in May 2012. Because the Company is continuing operations within the Greenville market by combining the operations into one facility, Jubilee is not presented as discontinued operations in the accompanying condensed consolidated financial statements. Background The Company was formed on May 11, 2009 to acquire certain assets of Tropicana Entertainment Holdings, LLC ("TEH"), and certain of its subsidiaries pursuant to their plan of reorganization under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"). The Company also acquired Columbia Properties Vicksburg ("CP Vicksburg"), JMBS Casino, LLC ("JMBS Casino") and CP Laughlin Realty, LLC ("Realty"), all of which were part of the same plan of reorganization (the "Plan") as TEH (collectively, the "Predecessors"). In addition, the Company acquired certain assets of Adamar of New Jersey, Inc. ("Adamar"), an unconsolidated subsidiary of TEH, pursuant to an amended and restated asset purchase agreement, including Tropicana AC. The reorganization of the Predecessors and the acquisition of Tropicana AC (together, the "Restructuring Transactions") were consummated and became effective on March 8, 2010 (the "Effective Date"), at which time the Company acquired Adamar and several of the Predecessors' gaming properties and related assets. Adamar was not a party to the Predecessors' bankruptcy. Prior to March 8, 2010, the Company conducted no business, other than in connection with the reorganization of the Predecessors and the acquisition of Tropicana AC, and had no material assets or liabilities. |
RECEIVABLES
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES | RECEIVABLES Receivables consist of the following (in thousands):
The Predecessors' administrative tax claim amounts represent tax refund claims filed related to our Predecessors. The timing of any collections on these claims is uncertain and is pending litigation. |
INVESTMENTS
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS The New Jersey Casino Control Act provides, among other things, for an assessment of licensees equal to 1.25% of gross gaming revenues in lieu of an investment alternative tax equal to 2.5% of gross gaming revenues. The Company may satisfy this investment obligation by investing in qualified eligible direct investments, by making qualified contributions or by depositing funds with the CRDA. Funds deposited with the CRDA may be used to purchase bonds designated by the CRDA or, under certain circumstances, may be donated to the CRDA in exchange for credits against future CRDA investment obligations. The carrying value of the total investments at June 30, 2013 and December 31, 2012 approximates their fair value. Investments consist of the following (in thousands):
The CRDA bonds have various contractual maturities that range from 2 to 40 years. Actual maturities may differ from contractual maturities because of prepayment rights. The Company treats CRDA bonds as held-to-maturity since the Company has the ability and the intent to hold these bonds to maturity and under the CRDA, the Company is not permitted to do otherwise. As such, the CRDA bonds are initially recorded at a discount to approximate fair value. After the initial determination of fair value, the Company will analyze the CRDA bonds for recoverability on a quarterly basis based on management's historical collection experience and other information received from the CRDA. If indications exist that the CRDA bond is impaired, additional valuation allowances will be recorded. Funds on deposit with the CRDA are held in an interest bearing account by the CRDA. Interest is earned at the stated rate that approximates two-thirds of the current market rate for similar assets. The Company records charges to expense to reflect the lower return on investment and records the deposit at fair value on the date the deposit obligation arises. During the three months ended June 30, 2013 and 2012, the rate used to calculate the reserve decreased, resulting in a gain of $0.2 million and $31,000, respectively, which is included in general administrative expenses on the accompanying condensed consolidated statements of income. During the six months ended June 30, 2013 and 2012, the Company charged $0.1 million and $0.1 million, respectively, to general and administrative expenses on the accompanying condensed consolidated statements of income. |
PROPERTY AND EQUIPMENT
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands):
In January 2013 the Jubilee barge was damaged as a result of a high-wind storm. The full extent of the damage is still being evaluated. Based on the Company's preliminary assessment, the barge suffered moderate damage. The Company has filed preliminary claims with its insurance carriers. Due to the damage sustained, the Company tentatively adjusted the carrying value of the barge to an estimated salvage value of $0.4 million, which resulted in a loss of $0.4 million included in the accompanying condensed consolidated statement of income for the six months ended June 30, 2013. As of June 30, 2013 the Company had received $0.5 million in insurance proceeds and has recorded a receivable of $0.2 million for additional insurance proceeds, which is included in the accompanying condensed consolidated balance sheets as of June 30, 2013. The Company is uncertain of the amount and timing of any additional insurance proceeds that may be received, which may result in a future gain or loss. |
INVESTMENTS (Details) (USD $)
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6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
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Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2013
Bonds—CRDA
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Dec. 31, 2012
Bonds—CRDA
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Jun. 30, 2013
Bonds—CRDA
Minimum
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Jun. 30, 2013
Bonds—CRDA
Maximum
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Jun. 30, 2013
Deposits—CRDA
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Dec. 31, 2012
Deposits—CRDA
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Jun. 30, 2013
Deposits—CRDA
General and Administrative Expense
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Jun. 30, 2012
Deposits—CRDA
General and Administrative Expense
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Jun. 30, 2013
Deposits—CRDA
General and Administrative Expense
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Jun. 30, 2012
Deposits—CRDA
General and Administrative Expense
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Jun. 30, 2013
Direct investment—CRDA
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Dec. 31, 2012
Direct investment—CRDA
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Schedule Of Long-term Investments [Line Items] | ||||||||||||||
Assessment of licensees, percentage of gross gaming revenues | 1.25% | |||||||||||||
Investment alternative tax, percentage of gross gaming revenues | 2.50% | |||||||||||||
Investments [Abstract] | ||||||||||||||
Investments, carrying value, gross | $ 16,619,000 | $ 16,616,000 | $ 29,267,000 | $ 29,751,000 | $ 3,314,000 | $ 4,612,000 | ||||||||
Less unamortized discount | (4,474,000) | (4,498,000) | ||||||||||||
Less valuation allowance | (3,433,000) | (3,415,000) | (6,932,000) | (6,987,000) | (673,000) | (1,280,000) | ||||||||
Total investments | 33,688,000 | 34,799,000 | ||||||||||||
CRDA bonds, contractual maturities | 2 years | 40 years | ||||||||||||
Charge to expense to reflect lower return on funds on deposit | $ (200,000) | $ (31,000) | $ 100,000 | $ 100,000 |
INVESTMENTS (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investments | Investments consist of the following (in thousands):
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IMPAIRMENT CHARGES AND OTHER WRITE-DOWNS (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Impairment Charges and Other Write-Downs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impairment Charges and Other Write-Downs [Table Text Block] | Impairment charges and other write-downs consist of the following (in thousands):
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RECEIVABLES (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Casino
|
Dec. 31, 2012
Casino
|
Jun. 30, 2013
Hotel
|
Dec. 31, 2012
Hotel
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Jun. 30, 2013
Predecessors' administrative tax claim
|
Dec. 31, 2012
Predecessors' administrative tax claim
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Jun. 30, 2013
Income tax [Member]
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Dec. 31, 2011
Income tax [Member]
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Jun. 30, 2013
Other
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Dec. 31, 2012
Other
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Receivables | $ 43,103 | $ 40,036 | $ 19,949 | $ 19,670 | $ 5,852 | $ 5,024 | $ 10,478 | $ 10,478 | $ 706 | $ 0 | $ 6,118 | $ 4,864 |
Allowance for doubtful accounts | (12,551) | (12,223) | ||||||||||
Receivables, net | $ 30,552 | $ 27,813 |
SEGMENT INFORMATION - Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 915,368 | $ 902,239 | $ 902,239 |
Assets held for sale | 11,595 | 11,719 | |
East
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 362,012 | 343,777 | |
Central
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 151,635 | 154,860 | |
West
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 106,327 | 106,235 | |
South and other
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 117,236 | 118,197 | |
Corporate
|
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Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 166,563 | $ 167,451 |