(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 |
September 30, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 273,588 | $ | 217,300 | |||
Restricted cash | 13,050 | 14,045 | |||||
Receivables, net | 21,406 | 22,068 | |||||
Inventories | 7,255 | 6,726 | |||||
Prepaid expenses and other assets | 13,333 | 11,893 | |||||
Total current assets | 328,632 | 272,032 | |||||
Property and equipment, net | 759,652 | 760,820 | |||||
Goodwill | 15,857 | 15,857 | |||||
Intangible assets, net | 73,992 | 74,295 | |||||
Investments | 17,026 | 26,323 | |||||
Deferred tax assets | 141,218 | 141,218 | |||||
Long-term prepaid rent and other assets | 25,485 | 18,804 | |||||
Total assets | $ | 1,361,862 | $ | 1,309,349 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 3,000 | $ | 3,000 | |||
Accounts payable | 35,591 | 33,568 | |||||
Accrued expenses and other current liabilities | 100,549 | 77,836 | |||||
Total current liabilities | 139,140 | 114,404 | |||||
Long-term debt, net | 284,449 | 285,946 | |||||
Other long-term liabilities | 5,794 | 6,207 | |||||
Total liabilities | 429,383 | 406,557 | |||||
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, 25,981,776 and 26,312,500 shares issued and outstanding at September 30, 2016 and December 31, 2015 respectively | 260 | 263 | |||||
Additional paid-in capital | 594,745 | 600,359 | |||||
Retained earnings | 337,474 | 302,170 | |||||
Total shareholders' equity | 932,479 | 902,792 | |||||
Total liabilities and shareholders' equity | $ | 1,361,862 | $ | 1,309,349 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Casino | $ | 176,960 | $ | 168,977 | $ | 504,026 | $ | 485,419 | |||||||
Room | 39,701 | 37,238 | 100,292 | 93,675 | |||||||||||
Food and beverage | 28,902 | 28,860 | 82,358 | 80,783 | |||||||||||
Other | 9,619 | 7,646 | 25,286 | 21,719 | |||||||||||
Gross revenues | 255,182 | 242,721 | 711,962 | 681,596 | |||||||||||
Less promotional allowances | (24,159 | ) | (23,773 | ) | (68,247 | ) | (66,275 | ) | |||||||
Net revenues | 231,023 | 218,948 | 643,715 | 615,321 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Casino | 73,245 | 71,168 | 214,976 | 208,458 | |||||||||||
Room | 13,344 | 12,662 | 34,621 | 33,215 | |||||||||||
Food and beverage | 13,647 | 14,244 | 40,153 | 40,924 | |||||||||||
Other | 5,363 | 5,389 | 14,691 | 14,244 | |||||||||||
Marketing, advertising and promotions | 17,206 | 16,160 | 50,325 | 45,811 | |||||||||||
General and administrative | 38,642 | 32,359 | 120,992 | 107,430 | |||||||||||
Maintenance and utilities | 18,865 | 19,114 | 53,258 | 53,959 | |||||||||||
Depreciation and amortization | 16,507 | 16,736 | 49,743 | 46,245 | |||||||||||
Impairment charges, other write-downs and recoveries | 347 | 19 | 444 | 876 | |||||||||||
Total operating costs and expenses | 197,166 | 187,851 | 579,203 | 551,162 | |||||||||||
Operating income | 33,857 | 31,097 | 64,512 | 64,159 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (3,122 | ) | (3,211 | ) | (9,571 | ) | (9,139 | ) | |||||||
Interest income | 156 | 133 | 507 | 443 | |||||||||||
Predecessor claim settlement | 3,100 | — | 3,100 | — | |||||||||||
Total other income (expense) | 134 | (3,078 | ) | (5,964 | ) | (8,696 | ) | ||||||||
Income before income taxes | 33,991 | 28,019 | 58,548 | 55,463 | |||||||||||
Income tax expense | (13,396 | ) | (11,428 | ) | (23,244 | ) | (22,683 | ) | |||||||
Net income | $ | 20,595 | $ | 16,591 | $ | 35,304 | $ | 32,780 | |||||||
Basic and diluted income per common share: | |||||||||||||||
Net income | $ | 0.79 | $ | 0.63 | $ | 1.35 | $ | 1.25 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic and diluted | 26,064 | 26,313 | 26,132 | 26,313 |
Nine months ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 35,304 | $ | 32,780 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 49,743 | 46,245 | |||||
Amortization of debt discount and debt issuance costs | 752 | 757 | |||||
Change in investment reserves | 6,419 | (1,989 | ) | ||||
Restricted cash funded | (1,452 | ) | — | ||||
Impairment charges | 12 | 153 | |||||
Loss on disposition of asset | 432 | 723 | |||||
Changes in operating assets and liabilities: | |||||||
Receivables, net | 662 | 3,912 | |||||
Inventories, prepaids and other assets | (1,969 | ) | 2,932 | ||||
Accrued interest | (43 | ) | (71 | ) | |||
Accounts payable, accrued expenses and other liabilities | 22,237 | 11,092 | |||||
Other noncurrent assets and liabilities, net | (5,129 | ) | 576 | ||||
Net cash provided by operating activities | 106,968 | 97,110 | |||||
Cash flows from investing activities: | |||||||
Additions of property and equipment | (49,071 | ) | (77,432 | ) | |||
Restricted cash funded | (5,114 | ) | — | ||||
Approved CRDA Project Funds received | 3,035 | 9,872 | |||||
Proceeds from sale of investment | 798 | — | |||||
Other | (22 | ) | (1,607 | ) | |||
Net cash used in investing activities | (50,374 | ) | (69,167 | ) | |||
Cash flows from financing activities: | |||||||
Payments on debt | (2,250 | ) | (2,250 | ) | |||
Repurchase of TEI common stock | (5,617 | ) | — | ||||
Restricted cash released | 7,561 | 1,696 | |||||
Net cash used in financing activities | (306 | ) | (554 | ) | |||
Net increase in cash and cash equivalents | 56,288 | 27,389 | |||||
Cash and cash equivalents, beginning of period | 217,300 | 195,735 | |||||
Cash and cash equivalents, end of period | $ | 273,588 | $ | 223,124 | |||
Supplemental cash flow disclosure: | |||||||
Cash paid for interest, net of interest capitalized | $ | 8,867 | $ | 8,454 | |||
Cash paid for income taxes | 8,324 | 13,249 | |||||
Supplemental disclosure of non-cash items: | |||||||
Capital expenditures included in accrued expenses and other current liabilities | 5,326 | 3,641 |
• | East—Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located in Atlantic City, New Jersey; |
• | Central—Tropicana Evansville ("Tropicana Evansville") located in Evansville, Indiana; and Lumière Place Casino, HoteLumière, the Four Seasons Hotel St. Louis (collectively, "Lumière Place") located in Saint Louis, Missouri; |
• | West—Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in South Lake Tahoe, Nevada; and |
• | 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 & Casino ("Tropicana Aruba") located in Palm Beach, Aruba. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Room | $ | 9,808 | $ | 9,353 | $ | 27,600 | $ | 26,056 | |||||||
Food and beverage | 12,420 | 12,436 | 35,054 | 34,416 | |||||||||||
Other | 1,931 | 1,984 | 5,593 | 5,803 | |||||||||||
Total | $ | 24,159 | $ | 23,773 | $ | 68,247 | $ | 66,275 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Room | $ | 4,387 | $ | 4,454 | $ | 14,558 | $ | 13,996 | |||||||
Food and beverage | 10,542 | 10,834 | 30,365 | 30,144 | |||||||||||
Other | 704 | 603 | 2,180 | 1,776 | |||||||||||
Total | $ | 15,633 | $ | 15,891 | $ | 47,103 | $ | 45,916 |
• | Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
• | Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). |
• | Level 3 - Unobservable inputs reflect the Company's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. |
Input Levels for Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
September 30, 2016 | |||||||||||||||
Assets: | |||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 8,728 | $ | 8,728 | |||||||
December 31, 2015 | |||||||||||||||
Assets: | |||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 16,405 | $ | 16,405 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Beginning Balance | $ | 9,896 | $ | 28,078 | $ | 16,405 | $ | 24,384 | |||||||
Realized or unrealized gains/(losses) | (337 | ) | 523 | (6,057 | ) | 2,634 | |||||||||
Additional CRDA deposits | 337 | 1,229 | 2,243 | 3,289 | |||||||||||
CRDA Project Funds received | (1,168 | ) | (9,872 | ) | (3,035 | ) | (9,872 | ) | |||||||
Purchases of CRDA investments | — | (724 | ) | (828 | ) | (1,201 | ) | ||||||||
Ending Balance | $ | 8,728 | $ | 19,234 | $ | 8,728 | $ | 19,234 |
September 30, 2016 | December 31, 2015 | ||||||
Casino | $ | 11,622 | $ | 14,573 | |||
Hotel | 5,607 | 5,330 | |||||
Other | 12,649 | 12,574 | |||||
Receivables, gross | 29,878 | 32,477 | |||||
Allowance for doubtful accounts | (8,472 | ) | (10,409 | ) | |||
Receivables, net | $ | 21,406 | $ | 22,068 |
Estimated life (years) | September 30, 2016 | December 31, 2015 | |||||||
Land | — | $ | 116,597 | $ | 116,190 | ||||
Buildings and improvements | 10 - 40 | 629,626 | 605,582 | ||||||
Furniture, fixtures and equipment | 3 - 7 | 249,000 | 228,548 | ||||||
Riverboats and barges | 5 - 15 | 18,145 | 17,429 | ||||||
Construction in progress | — | 26,996 | 24,900 | ||||||
Property and equipment, gross | 1,040,364 | 992,649 | |||||||
Accumulated depreciation | (280,712 | ) | (231,829 | ) | |||||
Property and equipment, net | $ | 759,652 | $ | 760,820 |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
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 | (9,071 | ) | 1,633 | 10,704 | (9,071 | ) | 1,633 | |||||||||||||||
Total | $ | 26,659 | $ | (10,802 | ) | $ | 15,857 | $ | 26,659 | $ | (10,802 | ) | $ | 15,857 |
Estimated life (years) | September 30, 2016 | December 31, 2015 | ||||||||
Trade name | Indefinite | $ | 25,500 | $ | 25,500 | |||||
Gaming licenses | Indefinite | 37,387 | 37,387 | |||||||
Customer lists | 3 | 160 | 160 | |||||||
Favorable lease | 5 - 42 | 13,260 | 13,260 | |||||||
Total intangible assets | 76,307 | 76,307 | ||||||||
Less accumulated amortization: | ||||||||||
Customer lists | (133 | ) | (93 | ) | ||||||
Favorable lease | (2,182 | ) | (1,919 | ) | ||||||
Total accumulated amortization | (2,315 | ) | (2,012 | ) | ||||||
Intangible assets, net | $ | 73,992 | $ | 74,295 |
September 30, 2016 | December 31, 2015 | ||||||
Investment in bonds—CRDA | $ | 16,418 | $ | 16,551 | |||
Less unamortized discount | (4,235 | ) | (4,271 | ) | |||
Less valuation allowance | (3,885 | ) | (3,862 | ) | |||
Deposits—CRDA | 19,563 | 21,183 | |||||
Less valuation allowance | (10,835 | ) | (4,778 | ) | |||
Direct investment—CRDA | 1,872 | 1,352 | |||||
Less valuation allowance | (1,872 | ) | (1,352 | ) | |||
Total CRDA investments | $ | 17,026 | $ | 24,823 |
September 30, 2016 | December 31, 2015 | ||||||
Tropicana Evansville prepaid rent | $ | 13,354 | $ | 12,500 | |||
Deposits | 4,187 | 3,431 | |||||
Other | 7,944 | 2,873 | |||||
Other assets | $ | 25,485 | $ | 18,804 |
September 30, 2016 | December 31, 2015 | ||||||
Accrued payroll and benefits | $ | 36,651 | $ | 35,131 | |||
Accrued gaming and related | 15,553 | 15,620 | |||||
Accrued taxes | 30,006 | 11,327 | |||||
Other accrued expenses and current liabilities | 18,339 | 15,758 | |||||
Total accrued expenses and other current liabilities | $ | 100,549 | $ | 77,836 |
September 30, 2016 | December 31, 2015 | ||||||
New Term Loan Facility, due 2020, interest at 4.0% at September 30, 2016 and December 31, 2015, net of unamortized discount of $0.9 million and $1.0 million at September 30, 2016 and December 31, 2015, respectively and debt issuance costs of $2.7 million and $3.3 million at September 30, 2016 and December 31, 2015, respectively | $ | 287,449 | $ | 288,946 | |||
Less current portion of debt | (3,000 | ) | (3,000 | ) | |||
Total long-term debt, net | $ | 284,449 | $ | 285,946 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Impairment of intangibles | $ | — | $ | — | $ | — | $ | 26 | |||||||
Loss on disposal of assets | 347 | 19 | 444 | 850 | |||||||||||
Total impairment charges, other write-downs and recoveries | $ | 347 | $ | 19 | $ | 444 | $ | 876 |
Three months ended September 30, | |||||||
2016 | 2015 | ||||||
Net revenues: | |||||||
East | $ | 104,040 | $ | 96,256 | |||
Central | 71,371 | 72,594 | |||||
West | 30,650 | 27,817 | |||||
South and other | 23,712 | 22,281 | |||||
Corporate | 1,250 | — | |||||
Total net revenues | $ | 231,023 | $ | 218,948 | |||
Operating income (loss): | |||||||
East | $ | 20,228 | $ | 21,193 | |||
Central | 10,464 | 10,026 | |||||
West | 5,495 | 3,708 | |||||
South and other | 672 | 394 | |||||
Corporate | (3,002 | ) | (4,224 | ) | |||
Total operating income | $ | 33,857 | $ | 31,097 | |||
Reconciliation of operating income to income before income taxes: | |||||||
Operating income | $ | 33,857 | $ | 31,097 | |||
Interest expense | (3,122 | ) | (3,211 | ) | |||
Interest income | 156 | 133 | |||||
Predecessor claim settlement | 3,100 | — | |||||
Income before income taxes | $ | 33,991 | $ | 28,019 |
Nine months ended September 30, | |||||||
2016 | 2015 | ||||||
Net revenues: | |||||||
East | $ | 260,712 | $ | 247,046 | |||
Central | 221,359 | 216,406 | |||||
West | 84,976 | 79,461 | |||||
South and other | 74,335 | 72,408 | |||||
Corporate | 2,333 | — | |||||
Total net revenues | $ | 643,715 | $ | 615,321 | |||
Operating income (loss): | |||||||
East | $ | 19,630 | $ | 29,114 | |||
Central | 37,933 | 31,776 | |||||
West | 12,016 | 9,171 | |||||
South and other | 6,297 | 6,489 | |||||
Corporate | (11,364 | ) | (12,391 | ) | |||
Total operating income | $ | 64,512 | $ | 64,159 | |||
Reconciliation of operating income to income before income taxes: | |||||||
Operating income | $ | 64,512 | $ | 64,159 | |||
Interest expense | (9,571 | ) | (9,139 | ) | |||
Interest income | 507 | 443 | |||||
Predecessor claim settlement | 3,100 | — | |||||
Income before income taxes | $ | 58,548 | $ | 55,463 |
Assets by segment: | September 30, 2016 | December 31, 2015 | |||||
East | $ | 586,763 | $ | 550,622 | |||
Central | 400,845 | 397,309 | |||||
West | 130,131 | 136,508 | |||||
South and other | 125,703 | 125,776 | |||||
Corporate | 118,420 | 99,134 | |||||
Total assets | $ | 1,361,862 | $ | 1,309,349 |
• | East—Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located in Atlantic City, New Jersey; |
• | Central— Tropicana Evansville ("Tropicana Evansville") located in Evansville, Indiana; and Lumière Place Casino, HoteLumière, the Four Seasons Hotel St. Louis (collectively, "Lumière Place") located in Saint Louis, Missouri; |
• | West—Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in South Lake Tahoe, Nevada; and |
• | 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 Palm Beach, Aruba. |
• | Atlantic City Market. Although competitive pressures in Atlantic City have stabilized somewhat with the closure of four casino properties in 2014 and the closure of the Taj Mahal on October 10, 2016, competition from the regional markets continues to adversely affect the Atlantic City market. In addition, a voter referendum in November 2016 to authorize up to two casinos in northern New Jersey, if approved, could have a material adverse impact on the Atlantic City market over the longer term. Further, continuing uncertainty about the City of Atlantic City's ability to fund ongoing operating costs and maintain existing operations may affect the Atlantic City casino market and Tropicana AC in the coming months. Based on market data, the Atlantic City market experienced period over period increases in gross casino win (including internet gaming revenue) of 0.2% and 1.6% for the three and nine months ended September 30, 2016, respectively, as compared to the same periods of 2015. However, excluding internet gaming revenue, the Atlantic City gaming market posted declines for the three and nine months ended September 30, 2016 as compared to the same periods of 2015. |
• | Table games hold percentages. Casino revenues can vary because of table games hold percentages and differences in the odds for different table games. A variety of factors may impact table games hold, including variances in the amount of high end play. For the three and nine months ended September 30, 2016, the Company's total table games hold of 19.2% and 18.8%, respectively, reflected increases of 3.6 and 2.3 percentage points compared to the prior year, which contributed to increased table game revenues. This hold percentage is not necessarily indicative of results that can be expected for future periods. |
• | Debt and Interest Expense. In November 2013, we entered into the credit facilities (the "New Credit Facilities"), which consist of (i) a senior secured first lien term loan facility in an aggregate principal amount of $300 million issued at a discount of 0.5% (the "New Term Loan Facility") and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $15 million (the "Revolving Facility"). Commencing on December 31, 2013, the New Term Loan Facility requires quarterly principal payments of $750,000 through September 2020 with the remaining outstanding amounts due on November 27, 2020, the maturity date. The obligations under the New Term Loan Facility accrue interest at a floating rate which was 4.00% as of September 30, 2016. A portion of the net proceeds from the New Term Loan Facility was used to repay in full the amounts outstanding under the existing Term Loan Facility which totaled approximately $172.4 million in repaid principal, accrued and unpaid interest. |
• | Predecessor related gain settlement. In July 2016, the Bankruptcy Court approved a settlement agreement related to the Predecessors, which resulted in the Company receiving a payment of $3.1 million related to certain professional fees previously paid by the Company. This amount was recognized as a one time gain on the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2016. |
• | Cost Efficiencies. As a result of economic conditions, we continue to focus on areas where we may institute efficiency initiatives which may result in cost savings. In the past, these cost saving initiatives have included decreased payroll and benefits expense related to our company-sponsored health insurance plans. |
Three months ended September 30, | ||||||||
2016 | 2015 | |||||||
Net revenues: | ||||||||
East | $ | 104,040 | $ | 96,256 | ||||
Central | 71,371 | 72,594 | ||||||
West | 30,650 | 27,817 | ||||||
South and other | 23,712 | 22,281 | ||||||
Corporate | 1,250 | — | ||||||
Total net revenues | $ | 231,023 | $ | 218,948 | ||||
Operating income (loss): | ||||||||
East | $ | 20,228 | $ | 21,193 | ||||
Central | 10,464 | 10,026 | ||||||
West | 5,495 | 3,708 | ||||||
South and other | 672 | 394 | ||||||
Corporate | (3,002 | ) | (4,224 | ) | ||||
Total operating income | $ | 33,857 | $ | 31,097 | ||||
Operating income margin(a): | ||||||||
East | 19.4 | % | 22.0 | % | ||||
Central | 14.7 | % | 13.8 | % | ||||
West | 17.9 | % | 13.3 | % | ||||
South and other | 2.8 | % | 1.8 | % | ||||
Total operating income margin | 14.7 | % | 14.2 | % |
Three months ended September 30, | ||||||||
2016 | 2015 | |||||||
Revenues: | ||||||||
Casino | $ | 176,960 | $ | 168,977 | ||||
Room | 39,701 | 37,238 | ||||||
Food and beverage | 28,902 | 28,860 | ||||||
Other | 9,619 | 7,646 | ||||||
Gross revenues | 255,182 | 242,721 | ||||||
Less promotional allowances | (24,159 | ) | (23,773 | ) | ||||
Net revenues | $ | 231,023 | $ | 218,948 |
Nine months ended September 30, | ||||||||
2016 | 2015 | |||||||
Net revenues: | ||||||||
East | $ | 260,712 | $ | 247,046 | ||||
Central | 221,359 | 216,406 | ||||||
West | 84,976 | 79,461 | ||||||
South and other | 74,335 | 72,408 | ||||||
Corporate | 2,333 | — | ||||||
Total net revenues | $ | 643,715 | $ | 615,321 | ||||
Operating income (loss): | ||||||||
East | $ | 19,630 | $ | 29,114 | ||||
Central | 37,933 | 31,776 | ||||||
West | 12,016 | 9,171 | ||||||
South and other | 6,297 | 6,489 | ||||||
Corporate | (11,364 | ) | (12,391 | ) | ||||
Total operating income | $ | 64,512 | $ | 64,159 | ||||
Operating income margin(a): | ||||||||
East | 7.5 | % | 11.8 | % | ||||
Central | 17.1 | % | 14.7 | % | ||||
West | 14.1 | % | 11.5 | % | ||||
South and other | 8.5 | % | 9.0 | % | ||||
Total operating income margin | 10.0 | % | 10.4 | % |
Nine months ended September 30, | ||||||||
2016 | 2015 | |||||||
Revenues: | ||||||||
Casino | $ | 504,026 | $ | 485,419 | ||||
Room | 100,292 | 93,675 | ||||||
Food and beverage | 82,358 | 80,783 | ||||||
Other | 25,286 | 21,719 | ||||||
Gross revenues | 711,962 | 681,596 | ||||||
Less promotional allowances | (68,247 | ) | (66,275 | ) | ||||
Net revenues | $ | 643,715 | $ | 615,321 |
Nine months ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash Flow Information: | ||||||||
Net cash provided by operating activities | $ | 106,968 | $ | 97,110 | ||||
Net cash used in investing activities | (50,374 | ) | (69,167 | ) | ||||
Net cash used by financing activities | (306 | ) | (554 | ) | ||||
Net increase (decrease) in cash and cash equivalents | $ | 56,288 | $ | 27,389 |
Period | Number of Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (in thousands) | |||||
July 1, 2016 through July 31, 2016 | — | — | — | $ | 46,455 | ||||
August 1, 2016 through August 31, 2016 | 29,146 | $18.50 | 29,146 | $ | 45,915 | ||||
September 1, 2016 through September 30, 2016 | 80,000 | $19.15 | 80,000 | $ | 44,383 |
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.IN* | XBRL Instance Document | |||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||
101.DEF* | XBRL Taxonomy Extension Definition | |||
* | 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: | November 1, 2016 | By: | /s/ THERESA GLEBOCKI | ||
Name: | Theresa Glebocki | ||||
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/ THERESA GLEBOCKI |
Theresa Glebocki 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/ THERESA GLEBOCKI |
Theresa Glebocki Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
DOCUMENT AND ENTITY INFORMATION - shares |
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Oct. 31, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | Tropicana Entertainment Inc. | |
Entity Central Index Key | 0001476246 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,981,776 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,981,776 | 26,312,500 |
Common stock, shares outstanding | 25,981,776 | 26,312,500 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Revenues: | ||||
Casino | $ 176,960 | $ 168,977 | $ 504,026 | $ 485,419 |
Room | 39,701 | 37,238 | 100,292 | 93,675 |
Food and beverage | 28,902 | 28,860 | 82,358 | 80,783 |
Other | 9,619 | 7,646 | 25,286 | 21,719 |
Gross revenues | 255,182 | 242,721 | 711,962 | 681,596 |
Less promotional allowances | (24,159) | (23,773) | (68,247) | (66,275) |
Net revenues | 231,023 | 218,948 | 643,715 | 615,321 |
Operating costs and expenses: | ||||
Casino | 73,245 | 71,168 | 214,976 | 208,458 |
Room | 13,344 | 12,662 | 34,621 | 33,215 |
Food and beverage | 13,647 | 14,244 | 40,153 | 40,924 |
Other | 5,363 | 5,389 | 14,691 | 14,244 |
Marketing, advertising and promotions | 17,206 | 16,160 | 50,325 | 45,811 |
General and administrative | 38,642 | 32,359 | 120,992 | 107,430 |
Maintenance and utilities | 18,865 | 19,114 | 53,258 | 53,959 |
Depreciation and amortization | 16,507 | 16,736 | 49,743 | 46,245 |
Impairment charges, other write-downs and recoveries | 347 | 19 | 444 | 876 |
Total operating costs and expenses | 197,166 | 187,851 | 579,203 | 551,162 |
Operating income | 33,857 | 31,097 | 64,512 | 64,159 |
Other income (expense): | ||||
Interest expense | (3,122) | (3,211) | (9,571) | (9,139) |
Interest income | 156 | 133 | 507 | 443 |
Predecessor claim settlement | 3,100 | 0 | 3,100 | 0 |
Total other income (expense) | 134 | (3,078) | (5,964) | (8,696) |
Income before income taxes | 33,991 | 28,019 | 58,548 | 55,463 |
Income tax expense | (13,396) | (11,428) | (23,244) | (22,683) |
Net income | $ 20,595 | $ 16,591 | $ 35,304 | $ 32,780 |
Basic and diluted income per common share: | ||||
Net income (in dollars per share) | $ 0.79 | $ 0.63 | $ 1.35 | $ 1.25 |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 26,064 | 26,313 | 26,132 | 26,313 |
ORGANIZATION AND BACKGROUND |
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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, Missouri and New Jersey. In addition, the Company owns a property in Aruba. 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:
The Company, through its wholly-owned subsidiary, TEI Management Services LLC, also manages the Trump Taj Mahal Casino Hotel ("Taj Mahal") in Atlantic City (which discontinued its operation as a casino hotel on October 10, 2016), and, through an agreement with its wholly-owned subsidiary, TropWorld Games LLC, operates an online social gaming site. The operating results of all other subsidiaries of the Company are reported under the heading of "Corporate" as they have been determined to not meet the aggregation criteria as separately reportable segments. 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 ("CP Laughlin 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. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain disclosures required by generally accepted accounting principles in the United States ("GAAP") are omitted or condensed in these condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) that are necessary to present fairly the Company's financial position, results of operations and cash flows for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not necessarily indicative of results to be expected for the full fiscal year. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, from which the accompanying condensed consolidated balance sheet information as of that date was derived. Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated in the Company's financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowance for doubtful accounts receivable, the estimated valuation allowance for deferred tax assets, certain tax liabilities, estimated cash flows in assessing the impairment of long-lived assets, intangible assets, Casino Reinvestment Development Authority (the "CRDA") investments, self-insured liability reserves, customer loyalty program reserves, contingencies, litigation, claims, assessments and loss contingencies. Actual results could differ from these estimates. Restricted Cash Restricted cash consists primarily of cash held in separate bank accounts designated for specific purposes. At December 31, 2015, $7.6 million was restricted by the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") in connection with the reorganization of the Predecessors for the purpose of satisfying liabilities related to professional services incurred in connection with the Restructuring Transactions; this restricted cash was released to the Company in March 2016 upon order of the Bankruptcy Court when it was determined that all professional services had been paid in full. In addition, as of September 30, 2016 and December 31, 2015, $6.5 million was restricted to collateralize letters of credit. Also at September 30, 2016, $5.1 million was held in a separate bank account to be used for purchases of replacement furniture, fixtures and equipment at the Four Seasons Hotel St. Louis, as required by contract. In addition, at September 30, 2016, $1.2 million was held as restricted cash as required by the Nevada Gaming Control Board's bankroll requirements for MontBleu and $0.3 million was held as restricted cash as required by the Missouri Gaming Commission for estimated gaming tax liabilities. Fair Value of Financial Instruments As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. See Note 3 - Fair Value for further detail related to the fair value of financial instruments. Revenue Recognition and Promotional Allowances Casino revenue represents the difference between wins and losses from gaming activities. Room, food and beverage and other operating revenues are recognized at the time the goods or services are provided. The Company collects taxes from customers at the point of sale on transactions subject to sales and other taxes. Revenues are recorded net of any taxes collected. The majority of the Company's casino revenue is counted in the form of cash and chips and, therefore, is not subject to any significant or complex estimation. The retail value of rooms, food and beverage and other services provided to customers on a complimentary basis is included in gross revenues and then deducted as promotional allowances. Promotional allowances also include incentives earned in our slot bonus program such as cash and the estimated retail value of goods and services (such as complimentary rooms and food and beverages). We reward customers, through the use of bonus programs, with points based on amounts wagered that can be redeemed for a specified period of time, principally for complimentary play, and to a lesser extent for goods or services, depending upon the property. The amounts included in promotional allowances consist of the following (in thousands):
The estimated departmental costs and expenses of providing these promotional allowances are included in casino operating costs and expenses and consist of the following (in thousands):
Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that included the enactment date. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not, and a valuation allowance is established for deferred tax assets which do not meet this threshold. Adoption of New Accounting Pronouncement In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, requiring entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the debt liability. This new guidance is similar to existing presentation requirements for debt discounts and aligns with the presentation of debt issuance costs under International Financial Reporting Standards ("IFRS"). The new guidance does not affect entities’ recognition and measurement of debt issuance costs. Previously, entities were required to present debt issuance costs as deferred charges in the asset section of the statement of financial position. The guidance in the ASU is effective for all entities in fiscal years beginning after December 15, 2015. Public business entities must apply the guidance in interim periods within the fiscal year of adoption, while all other entities must apply the guidance in interim periods within fiscal years beginning after December 15, 2016. All entities must apply the guidance retrospectively and provide the required disclosures for a change in accounting principle in the period of adoption. Early adoption is permitted. The Company adopted this ASU during the three months ended March 31, 2016. The Company has reclassified debt issuance costs from other assets, net to a reduction in long-term debt, net on the Company's condensed consolidated balance sheets. As of September 30, 2016 and December 31, 2015, the amount of debt issuance costs included as a reduction to long-term debt totaled $2.7 million and $3.3 million, respectively. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year; the effective date is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, using one of two retrospective application methods. In addition, the FASB issued other amendments during 2016 to FASB ASC Topic 606, Revenue from Contracts with Customers, that include implementation guidance to principal versus agent considerations, guidance to identifying performance obligations and licensing guidance and other narrow scope improvements. Early adoption is permitted only as of the annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company anticipates it will adopt this ASU on January 1, 2018 using the modified retrospective method. The Company continues to evaluate the impact the adoption of ASU No. 2014-09 will have on the Company's financial position and results of operations. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends FASB ASU Topic 330, Inventory. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted as of the beginning of an interim period or annual reporting period. The Company does not anticipate the adoption of this ASU to have a material impact on the Company's financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes FASB ASC Topic 840, Leases. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In addition, among other changes to the accounting for leases, this ASU retains the distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments in this ASU should be applied using a modified retrospective approach. Early application is permitted. The Company is currently evaluating the impact of this guidance on the Company's financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which seeks to reduce the diversity currently in practice by providing guidance on the presentation of eight specific cash flow issues in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of this guidance on the Company's statement of cash flows. A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our condensed consolidated financial statements. Reclassifications The unaudited condensed consolidated financial statements reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. |
FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE The carrying values of the Company's cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:
The following table presents a summary of fair value measurements by level for certain assets measured at fair value on a recurring basis included in the accompanying condensed consolidated balance sheets at September 30, 2016 and December 31, 2015 (in thousands):
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 deposits at fair value. The fair value of the CRDA deposits, classified in the fair value hierarchy as Level 3, are estimated using valuation allowances calculated based on market rates for similar assets and other information received from the CRDA. See Note 7 - Investments for more detail related to the CRDA deposits. The following table summarizes the changes in fair value of the Company's Level 3 CRDA deposits (in thousands):
Realized or unrealized gains/(losses) related to the Level 3 investments held at the end of the reporting period are included in general and administrative expense during the three and nine months ended September 30, 2016 and 2015. There were no transfers between fair value levels during the periods ended September 30, 2016 and 2015. Long-term Debt The Company's long-term debt is carried at amortized cost in the accompanying consolidated balance sheets. The fair value of the Company's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices for similar issues. The estimated fair value of long-term debt as of September 30, 2016 and December 31, 2015 is approximately $292.8 million and $287.4 million, respectively. CRDA Bonds The Company's CRDA bonds are classified as held-to-maturity since the Company has the ability and intent to hold these bonds to maturity and under the CRDA, the Company is not permitted to do otherwise. 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 quarterly for recoverability 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. The fair value of the Company's CRDA bonds are considered a Level 3 fair value measurement. The CRDA bonds carrying value as of September 30, 2016 and December 31, 2015 net of the unamortized discount and valuation allowance is $8.3 million and $8.4 million, respectively, which approximates fair value. See Note 7 - Investments for more detail related to the CRDA bonds. |
RECEIVABLES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES | RECEIVABLES Receivables consist of the following (in thousands):
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands):
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of purchase price over fair value of assets acquired and liabilities assumed in business combinations or under fresh-start reporting. Goodwill and other indefinite-life intangible assets are subject to an annual assessment for impairment during the fourth quarter, or more frequently if there are indications of possible impairment, by applying a fair-value-based test. In accordance with accounting guidance related to goodwill and other intangible assets, the Company tests for impairment of goodwill and indefinite-lived intangible assets annually in the fourth quarter of each year and in certain situations between those annual dates. See Note 2 - Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for more detail related to the goodwill impairment analysis. The carrying amounts of Goodwill by segment are as follows (in thousands):
Intangible assets consist of the following (in thousands):
Upon the adoption of fresh-start reporting, the Company recognized an indefinite life trade name related to the "Tropicana" trade name and 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. At both September 30, 2016 and December 31, 2015 the indefinite life gaming licenses consists of $28.7 million and $8.7 million related to Tropicana Evansville and Lumière Place, respectively. Customer lists represent the value associated with customers enrolled in our customer loyalty programs and are amortized on a straight-line basis over three years. Amortization expense related to customer lists, which was amortized to depreciation and amortization expense, for each of the three and nine months ended September 30, 2016 and 2015 was less than $0.1 million. Estimated annual amortization related to the Lumière Place customer list is anticipated to be $0.1 million in 2016 and less than $0.1 million in 2017. Favorable lease arrangements were valued upon adoption of fresh-start reporting and are being amortized to rental expense on a straight-line basis over the remaining useful life of the respective leased facility. In connection with the Tropicana AC acquisition, the Company also recognized intangible 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. Additionally, in connection with the acquisition of Tropicana Aruba, the Company recognized 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. Amortization expense related to favorable lease arrangements, which is amortized to rental expense or tenant income, as applicable, for the three months ended September 30, 2016 and 2015 was $0.1 million and $0.2 million, respectively. Amortization expense related to favorable lease arrangements for the nine months ended September 30, 2016 and 2015 was $0.3 million and $0.5 million, respectively. |
INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS CRDA The New Jersey Casino Control Act provides, among other things, for an assessment of licensees equal to 1.25% of gross gaming revenues and 2.5% of Internet gaming gross revenues in lieu of an investment alternative tax equal to 2.5% of gross gaming revenues and 5% on Internet gaming gross 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 September 30, 2016 and December 31, 2015 approximates their fair value. CRDA 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 analyzes 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 are 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 September 30, 2016 and 2015, the Company included a charge of $0.3 million and a reduction of $0.2 million, respectively, to general and administrative expenses on the accompanying condensed consolidated statements of income, representing the changes in these investment reserves. During the nine months ended September 30, 2016 and 2015 the Company recorded a charge of $1.2 million and a reduction of $2.0 million, respectively, to general and administrative expenses on the accompanying condensed consolidated statements of income, representing the changes in these investment reserves. As a result of the NJ PILOT Law, which was enacted in May 2016 (see further discussion in Note 13, Commitments and Contingencies, NJ PILOT Law), the portion of investment alternative tax payments made by casino operators which are deposited with the CRDA and which have not been pledged for the payment of bonds issued by the CRDA will be allocated to the State of New Jersey for purposes of paying debt service on bonds previously issued by Atlantic City. That portion of the deposits which will be allocated to the State of New Jersey are no longer recorded as an investment with a corresponding valuation allowance, but are charged directly to general and administrative expenses. During the three and nine months ended September 30, 2016, the Company recorded charges of $1.0 million and $1.3 million, respectively, to general and administrative expenses on the accompanying condensed consolidated statements of income, representing that portion of investment alternative tax payments that will be allocated to the State of New Jersey under the NJ PILOT Law. The Company was approved to use up to $18.8 million of CRDA deposits ("Approved CRDA Project Funds") for certain capital expenditures relating to Tropicana AC. Approximately $15.2 million of the Approved CRDA Project Funds were reimbursed to Tropicana AC during the year ended December 31, 2015, of which approximately $14.2 million was from Tropicana AC's CRDA deposits. An additional $3.0 million of Approved CRDA Project Funds were reimbursed to Tropicana AC during the nine months ended September 30, 2016. On April 19, 2016 the CRDA approved an application by the Company to increase the scope of the approved Tropicana AC project to include additional project elements and amend the CRDA grant agreement related to the Tropicana AC project to permit (i) an $8 million increase in the CRDA fund reservation and corresponding increase in the Approved CRDA Project Funds from $18.8 million to $26.8 million, and (ii) a rescheduled substantial completion date for the Tropicana AC project to not later than June 30, 2017. In exchange for the approval, the Company agreed to donate the balance of its CRDA deposits in the amount of approximately $7.1 million to the CRDA pursuant to NJSA 5:12-177. The Company recorded $5.4 million of expense in April 2016 to fully reserve the funds that will be donated to the CRDA per this agreement. Ruby Seven Studios, Inc. In March 2015, the Company, through its wholly-owned subsidiary, TropWorld Games LLC ("TWG") entered into an agreement with Ruby Seven Studios, Inc. ("Ruby Seven") to develop an online social gaming site. In accordance with that agreement, in July 2015, TEI R7, a wholly-owned subsidiary of the Company, exercised an option to acquire 1,827,932 shares of Ruby Seven's Series A-1 Preferred Stock for $1.5 million, representing approximately 13.7% of the equity ownership of Ruby Seven. The investment in Ruby Seven is presented at cost on the accompanying condensed consolidated balance sheets as of December 31, 2015. Ruby Seven entered into a merger agreement with a third party pursuant to which Ruby Seven merged into the third party in a transaction that closed on February 29, 2016. TEI R7 approved the agreement. As a result of the merger transaction, all of Ruby Seven’s outstanding shares (including the shares held by TEI R7) were canceled and the Ruby Seven shareholders received merger consideration in exchange for their shares. At closing, TEI R7 received cash in the approximate amount of $0.8 million, plus an earn-out consideration over three years following the closing, with a minimum earn-out of approximately $0.7 million, which is included in long-term assets on the accompanying condensed consolidated balance sheets as of September 30, 2016. |
LONG-TERM PREPAID RENT AND OTHER ASSETS |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM PREPAID RENT AND OTHER ASSETS | LONG-TERM PREPAID RENT AND OTHER ASSETS Other assets consist of the following (in thousands):
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands):
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Debt consists of the following (in thousands):
New Credit Facilities On November 27, 2013, the Company entered into (i) a senior secured first lien term loan facility in an aggregate principal amount of $300 million, issued at a discount of 0.5% (the “New Term Loan Facility”) and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $15 million (the “Revolving Facility” and, together with the New Term Loan Facility, the “New Credit Facilities”). Commencing on December 31, 2013, the New Term Loan Facility is amortized in equal quarterly installments of $750,000, with any remaining balance payable on the final maturity date of the New Term Loan Facility, which is November 27, 2020. Amounts under the Revolving Facility are available to be borrowed and re-borrowed until its termination on November 27, 2018. Approximately $172.4 million of the net proceeds from the New Credit Facilities were used to repay in full the principal amounts outstanding under the Company's existing credit facilities which consisted of a $175 million senior secured first lien term loan facility and $15 million cash collateralized letter of credit facility (the "Credit Facilities"). The Credit Facilities were terminated effective as of November 27, 2013. A portion of the proceeds from the New Credit Facilities was used to finance the Company's acquisition of Lumière Place in April 2014. The New Term Loan Facility accrues interest, at the Company's option, at a per annum rate equal to either (i) the LIBO Rate (as defined in the Credit Agreement) (subject to a 1.00% floor) plus an applicable margin equal to 3.00%, or (ii) the alternate base rate (as defined in the Credit Agreement) (subject to a 2.00% floor) plus an applicable margin equal to 2.00%; such that in either case, the applicable interest rate shall not be less than 4.0%. The Revolving Facility accrues interest, at the Company's option, at a per annum rate equal to either (i) the LIBO Rate plus an applicable margin ranging from 2.00% (if the total net leverage ratio is less than 2.50:1.00) to 2.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00); or (ii) the alternate base rate plus an applicable margin ranging from 1.00% (if the total net leverage ratio is less than 2.50:1.00) to 1.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00). The interest rate increases by 2.00% following certain defaults. As of September 30, 2016, the interest rate on the New Term Loan Facility was 4.0% and no amounts were outstanding under the Revolving Facility. The New Credit Facilities are guaranteed by all of the Company's domestic subsidiaries, subject to limited exceptions, and additional subsidiaries may be required to provide guarantees, subject to limited exceptions. The New Credit Facilities are secured by a first lien on substantially all assets of the Company and the domestic subsidiaries that are guarantors, with certain limited exceptions. Subsidiaries that become guarantors will be required, with certain limited exceptions, to provide first liens and security interests in substantially all their assets to secure the New Credit Facilities. At the election of the Company and subject to certain conditions, including a maximum senior secured net leverage ratio of 3.25:1.00, the amount available under the New Credit Facilities may be increased, which increased amount may be comprised of additional term loans and revolving loans. The New Term Loan Facility may be prepaid at the option of the Company at any time without penalty (other than customary LIBO Rate breakage fees). The Company is required to make mandatory payments of the New Credit Facilities with (i) net cash proceeds of certain asset sales (subject to reinvestment rights), (ii) net cash proceeds from certain issuances of debt and equity (with certain exceptions), (iii) up to 50% of annual excess cash flow (as low as 0% if the Company's total leverage ratio is below 2.75:1.00), and (iv) certain casualty proceeds and condemnation awards (subject to reinvestment rights). Key covenants binding the Company and its subsidiaries include (i) limitations on indebtedness, liens, investments, acquisitions, asset sales, dividends and other restricted payments, and affiliate and extraordinary transactions, and (ii) if, as of the last day of any fiscal quarter, the amount of outstanding revolving loans exceed 35% of the permitted borrowing under the Revolving Facility, compliance with a maximum senior secured net leverage ratio test of 3.25:1.00. Key default provisions include (i) failure to repay principal, interest, fees and other amounts owing under the facility, (ii) cross default to certain other indebtedness, (iii) the rendering of certain judgments against the Company or its subsidiaries, (iv) failure of security documents to create valid liens on property securing the New Credit Facilities and to perfect such liens, (v) revocation of casino, gambling, or gaming licenses, (vi) the Company's or its material subsidiaries' bankruptcy or insolvency; and (vii) the occurrence of a Change of Control (as defined in the Credit Agreement). Many defaults are also subject to cure periods prior to such default giving rise to the right of the lenders to accelerate the loans and to exercise remedies. The Company was in compliance with the covenants of the New Term Loan Facility at September 30, 2016. |
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES |
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Impairment Charges and Other Write-Downs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IMPAIRMENT CHARGES, OTHER WRITE DOWNS AND RECOVERIES | IMPAIRMENT CHARGES, OTHER WRITE DOWNS AND RECOVERIES Impairment charges, other write-downs and recoveries consist of the following (in thousands):
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Insight Portfolio Group LLC Effective January 1, 2013, the Company acquired a minority equity interest in Insight Portfolio Group LLC (“Insight Portfolio Group”) and agreed to pay a portion of Insight Portfolio Group's operating expenses. In addition to the minority equity interest held by the Company, a number of other entities with which Mr. Icahn has a relationship also acquired equity interests in Insight Portfolio Group and also agreed to pay certain of Insight Portfolio Group's operating expenses. The Company may purchase a variety of goods and services as a member of the buying group at prices and on terms that the Company believes are more favorable than those which would be achieved on a stand-alone basis. Commencing in the second quarter of 2016, an officer of the Company also serves on the Board of Directors of Insight Portfolio Group. During each of the three months ended September 30, 2016 and 2015, the Company paid $0.1 million to Insight Portfolio Group. During each of the nine months ended September 30, 2016 and 2015, the Company paid $0.2 million and $0.3 million, respectively, to Insight Portfolio Group. Trump Taj Mahal Associates, LLC On March 1, 2016, TEI Management Services LLC, a wholly owned subsidiary of the Company, entered into a management agreement with Trump Taj Mahal Associates, LLC (“TTMA”) and IEH Investments LLC (“IEH Investments”) pursuant to which TEI Management Services LLC manages the Taj Mahal, owned by TTMA, and provides consulting services relating to the former Plaza Hotel and Casino in Atlantic City, New Jersey, owned by Trump Plaza Associates LLC (“Plaza Associates”). The management agreement, which commenced upon receipt of required New Jersey regulatory approvals on April 13, 2016, is effective for an initial five year term with an option to renew for an additional five year term. TTMA, IEH Investments and Plaza Associates are indirect wholly owned subsidiaries of Icahn Enterprises, which is indirectly controlled by Mr. Icahn. For the three and nine months ended September 30, 2016, the Company has recorded $1.3 million and $2.3 million, respectively, of management fee income as a result of this agreement, which is included in other revenue in the accompanying condensed consolidated statements of income. On October 10, 2016, the Taj Mahal discontinued its operation as a casino hotel in Atlantic City. TEI Management Services LLC will continue to provide management services to TTMA. Under a lease agreement with TTMA, Tropicana AC will lease 250 slot machines commencing after the closing of the Taj Mahal. Under a separate database license agreement, commencing October 1, 2016, the Company is licensing the Taj Mahal customer database from Trump Entertainment Resorts, Inc. |
COMMITMENTS AND CONTINGENCIES |
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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 is amortized on a straight-line basis to rental expense over the remaining term of the lease. As of September 30, 2016 and December 31, 2015, the unfavorable lease liability balance was $6.3 million and $6.7 million, respectively, of which $5.8 million and $6.1 million, respectively, is included in other long-term liabilities on the accompanying condensed consolidated balance sheets. In October 2014, Columbia Properties Tahoe, LLC (“CPT”), the Company’s subsidiary that owns MontBleu, entered into a lease amendment with Edgewood Companies (“Landlord”) pursuant to which CPT agreed to expend $24.0 million during the next 18 months on a capital renovation project in exchange for certain lease modifications including future capital expenditure requirements and a Landlord acknowledgment that upon completion of the capital renovation project the property will satisfy the “first class” facility requirements of the lease. As of December 31, 2015, the Company had completed the $24 million capital renovation project. 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. On January 6, 2016 the Company and the City of Evansville entered into a Sixth Amendment to the Lease Agreement (the "Sixth Amendment"), which amendment was approved by the Indiana Gaming Commission on February 24, 2016 along with the Company's application to move its casino operations from its current dockside gaming vessel to a future developed landside gaming facility. Under the Sixth Amendment, in exchange for the Company's commitment to expend $50 million to develop a landside gaming facility (the "Tropicana Development Project") along with a pre-payment of lease rent in the amount of $25 million (the "Rental Pre-Payments"), the City of Evansville has granted the Company a $20 million redevelopment credit (the "Redevelopment Credit"). The Rental Pre-Payments are to be made in two payments of $12.5 million each. The Company has made the first $12.5 million Rental Pre-Payment, and the second $12.5 million Rental Pre-Payment is due upon the opening of the Tropicana Development Project to the public. Both the Rental Pre-Payments and the Redevelopment Credits will be applied against future rent in equal monthly amounts over a period of one hundred and twenty (120) months commencing upon the opening of the Tropicana Development Project to the public. Under the terms of the lease, as amended by the Sixth Amendment, the Company may extend the lease term through November 30, 2055 by exercising renewal options. The current term commenced December 1, 2015 and expires November 30, 2027 under the terms of the Sixth Amendment. Thereafter, the Company may extend the lease for a three (3) year term through November 30, 2030, followed by five (5) five-year renewal options through November 30, 2055. Under the terms of the Sixth Amendment, in the event the Company decides not to exercise its renewal option(s) and continues to conduct gaming operations in the City of Evansville, the lease may not be terminated and will continue through November 30, 2055, unless the Company and the City of Evansville enter into a replacement agreement that includes payments to the City of Evansville in the amount equal to rent payments under the lease. Under the terms of the lease, as amended by the Sixth Amendment, 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 10% of the AGR in excess of $100 million. Belle of Baton Rouge Lease Belle of Baton Rouge leases certain land and buildings under separate leases, with annual payments of $0.2 million. 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 2017. Tropicana Greenville Lease Tropicana Greenville leases approximately four acres of land on which the 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. In October 2013, Tropicana Greenville entered into an additional lease agreement with the City of Greenville, Mississippi, for a parcel of land adjacent to Tropicana Greenville upon which the Company constructed a parking lot in conjunction with its plan to expand the Tropicana Greenville casino. The initial term of the lease expires in August 2020, and the Company has several options to extend the lease for a total term of up to twenty-five years. Initial annual rent is $0.4 million with rent adjustments in option periods based upon the Consumer Price Index. 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 Tourism District Law In February 2011, New Jersey enacted legislation (the "Tourism District Law") that delegated redevelopment authority and creation of a master plan to the CRDA and allowed 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. The law obligated the Atlantic City casinos either through the ACA or, if not a member of the ACA, through individual assessments, to provide funding for marketing under the Tourism District Law in the aggregate amount of $30.0 million annually through 2016. Each Atlantic City casino's proportionate share of the assessment is based on the gross revenue generated in the preceding fiscal year. In 2015 the Company paid approximately $3.6 million to the ACA for its proportionate share of the assessment, which amount has been held by the ACA pending the anticipated enactment of the Casino Property Tax Stabilization Act (the "NJ PILOT Law", described below). In 2016, the Company has estimated and is accruing its portion of this ACA industry obligation at approximately 12.2%, or $3.7 million. New Jersey Gross Casino Revenue Tax and Casino Investment Alternative Tax Under New Jersey law, the New Jersey Casino Control Commission imposes an annual tax of 8% on gross casino revenue and, commencing with the operation of Internet gaming, an annual tax of 15% on Internet gaming gross revenue. In addition, under New Jersey law, casino license holders or Internet gaming permit holders (as applicable) are currently required to invest an additional 1.25% of gross casino revenue and 2.5% of Internet gaming gross revenue ("Casino Investment Alternative Tax", or "IAT") for the purchase of bonds to be issued by the CRDA or to make other approved investments equal to those amounts; and, in the event the investment requirement is not met, the casino license holder or Internet gaming permit holder (as applicable) is subject to a tax of 2.5% on gross casino revenue and 5% on Internet gaming gross revenue. As mandated by New Jersey law, the interest rate of the CRDA bonds purchased by the licensee is 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. As more fully described below, commencing on May 27, 2016, the effective date of the NJ PILOT Law, future IAT that have not been pledged for the payment of bonds issued by the CRDA, or any bonds issued to refund such bonds, will be allocated to the City of Atlantic City for the purposes of paying debt service on bonds issued by the City of Atlantic City. NJ PILOT LAW On May 27, 2016, New Jersey enacted the Casino Property Tax Stabilization Act (the "NJ PILOT Law") which will exempt Atlantic City casino gaming properties from ad valorem property taxation in exchange for an agreement to make annual payment in lieu of tax payments ("PILOT Payments") to the City of Atlantic City, make certain changes to the NJ Tourism District Law and redirect certain IAT payments to assist in the stabilization of Atlantic City finances. Under the PILOT Law, commencing in 2017 and for a period of ten (10) years, Atlantic City casino gaming properties will be required to pay a prorated share of PILOT Payments totaling $120 million based on a formula that accounts for gaming revenues, the number of hotel rooms and the square footage of each casino gaming property. Commencing in 2018 and each year thereafter, the $120 million base year aggregate payment may either increase to as high as $165 million (based upon industry gross gaming revenue ("GGR") of between $3.0 billion and $3.4 billion) or decrease to a low of $90 million (based upon industry GGR less than $1.8 billion) and further taking into account certain non-GGR revenue streams, with the base year $120 million industry GGR set at between $2.2 billion and $2.6 billion. In years in which the industry PILOT Payments do not increase based upon an increase in GGR above the base year or other bracketed amounts, PILOT Payments will increase 2%. The NJ PILOT Law also provides for the abolishment of the ACA effective as of January 1, 2015 and redirection of the $30 million in ACA funds paid by the casinos for 2015 and accrued in 2016 under the Tourism District Law to the State of New Jersey for Atlantic City fiscal relief and further payments of $15 million in 2017, $10 million in 2018 and $5 million for each year between 2019 and 2023 to Atlantic City upon review of and approval or disapproval (as the case may be) of a financial plan submitted by Atlantic City, setting forth specific actions to be taken to improve its financial condition. In addition, the NJ PILOT Law also provides for IAT payments made by the casino operators since the effective date of the NJ PILOT Law, which were previously deposited with the CRDA and which have not been pledged for the payment of bonds issued by the CRDA , or any bonds issued to refund such bonds, to be allocated to the State of New Jersey for purposes of paying debt service on bonds previously issued by Atlantic City. 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 sheets as of September 30, 2016 and December 31, 2015. In its objection to Wimar and CSC's motions for summary judgment, the Company disputed the administrative expense and/or priority status of certain amounts claimed and also contended 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 by the bankruptcy reorganization plan, against CSC and Wimar. In October 2015, the Bankruptcy Court issued an opinion order and entered an order (1) denying Wimar's and CSC's Motions for Summary Judgment seeking allowance and payment of administrative expense claims, and (2) granting, in part, CSC's Motion for Summary Judgment to allow priority status under Bankruptcy Code Section 507(a)(5) for certain contributions made to employee benefit plans and denying, in part, CSC's request in the motion for payment of the priority claims. The Company and Tropicana Las Vegas have filed a joint motion with the Bankruptcy Court seeking clarification of certain aspects of the Bankruptcy Court's opinion and order, which motion is pending. The Company continues to dispute any payment obligation to Wimar or CSC. UNITE HERE On June 30, 2016, a tentative agreement was reached between UNITE HERE Local 54 and Tropicana AC on a new collective bargaining agreement to extend through February 29, 2020. The terms of the new collective bargaining agreement were ratified by UNITE HERE Local 54 membership on July 14, 2016, and the agreement is pending finalization by the parties. 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. |
STOCKHOLDERS' EQUITY |
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Sep. 30, 2016 | |
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 25,981,776 and 26,312,500 shares were issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. 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. Stock Repurchase Program On July 31, 2015, our Board of Directors authorized the repurchase of up to $50 million of our outstanding stock with no set expiration date. The Stock Repurchase Program will end upon the earlier of the date on which the plan is terminated by the Board of Directors or when all authorized repurchases are completed. The timing and amount of stock repurchases will be determined based upon our evaluation of market conditions and other factors. The Stock Repurchase Program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any amount of our common stock under the Stock Repurchase Program. During March 2016, we repurchased 221,578 shares of our stock under the Stock Repurchase Program. Under the same Stock Repurchase Program the Company repurchased 29,146 and 80,000 shares in August 2016 and September 2016, respectively. In all instances, the repurchased shares were subsequently retired. As of the date of this report, there have not been any subsequent repurchases of stock under the Stock Repurchase Program. 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 September 30, 2016 and December 31, 2015. 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. Significant Ownership At September 30, 2016, Mr. Icahn indirectly controlled approximately 68.75% 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. |
BASIC AND DILUTED NET INCOME PER SHARE |
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Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET INCOME PER SHARE | BASIC AND DILUTED NET INCOME PER SHARE The Company computes net income per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income for the period by the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Potentially dilutive common shares include warrants. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. |
INCOME TAXES |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Effective Tax Rate The Company's effective income tax rates for the three months ended September 30, 2016 and 2015 were 39.4% and 40.8%, respectively. The Company's effective income tax rates for the nine months ended September 30, 2016 and 2015 were 39.7% and 40.9%, respectively. The difference between the federal statutory rate of 35% and the Company's effective tax rates for the three and nine months ended September 30, 2016 and 2015 was primarily due to disallowed foreign losses, state income taxes (net of federal benefit), and other permanent differences. Looking forward, our effective income tax rate may fluctuate due to changes in tax legislation, changes in our estimates of federal tax credits, changes in our assessment of uncertainties as valued under accounting guidance for uncertainty in income taxes, as well as accumulated interest and penalties. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company views each property as an operating segment which we aggregate by region in order to present our reportable segments: (i) East, (ii) Central, (iii) West, (iv) and South and other. The Company uses operating income to compare operating results among its segments and allocate resources. The following table highlights by segment our net revenues and operating income, and reconciles operating income to income before income taxes for the three months ended September 30, 2016 and 2015 (in thousands, unaudited):
The following table highlights by segment our net revenues and operating income, and reconciles operating income to income before income taxes for the nine months ended September 30, 2016 and 2015 (in thousands, unaudited):
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain disclosures required by generally accepted accounting principles in the United States ("GAAP") are omitted or condensed in these condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) that are necessary to present fairly the Company's financial position, results of operations and cash flows for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not necessarily indicative of results to be expected for the full fiscal year. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, from which the accompanying condensed consolidated balance sheet information as of that date was derived. |
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Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated in the Company's financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowance for doubtful accounts receivable, the estimated valuation allowance for deferred tax assets, certain tax liabilities, estimated cash flows in assessing the impairment of long-lived assets, intangible assets, Casino Reinvestment Development Authority (the "CRDA") investments, self-insured liability reserves, customer loyalty program reserves, contingencies, litigation, claims, assessments and loss contingencies. Actual results could differ from these estimates. |
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Restricted Cash | Restricted Cash Restricted cash consists primarily of cash held in separate bank accounts designated for specific purposes. At December 31, 2015, $7.6 million was restricted by the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") in connection with the reorganization of the Predecessors for the purpose of satisfying liabilities related to professional services incurred in connection with the Restructuring Transactions; this restricted cash was released to the Company in March 2016 upon order of the Bankruptcy Court when it was determined that all professional services had been paid in full. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. See Note 3 - Fair Value for further detail related to the fair value of financial instruments. |
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Revenue Recognition and Promotional Allowances | Revenue Recognition and Promotional Allowances Casino revenue represents the difference between wins and losses from gaming activities. Room, food and beverage and other operating revenues are recognized at the time the goods or services are provided. The Company collects taxes from customers at the point of sale on transactions subject to sales and other taxes. Revenues are recorded net of any taxes collected. The majority of the Company's casino revenue is counted in the form of cash and chips and, therefore, is not subject to any significant or complex estimation. The retail value of rooms, food and beverage and other services provided to customers on a complimentary basis is included in gross revenues and then deducted as promotional allowances. Promotional allowances also include incentives earned in our slot bonus program such as cash and the estimated retail value of goods and services (such as complimentary rooms and food and beverages). We reward customers, through the use of bonus programs, with points based on amounts wagered that can be redeemed for a specified period of time, principally for complimentary play, and to a lesser extent for goods or services, depending upon the property. |
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Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that included the enactment date. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not, and a valuation allowance is established for deferred tax assets which do not meet this threshold. |
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Adoption of New Accounting Pronouncement | Adoption of New Accounting Pronouncement In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, requiring entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the debt liability. This new guidance is similar to existing presentation requirements for debt discounts and aligns with the presentation of debt issuance costs under International Financial Reporting Standards ("IFRS"). The new guidance does not affect entities’ recognition and measurement of debt issuance costs. Previously, entities were required to present debt issuance costs as deferred charges in the asset section of the statement of financial position. The guidance in the ASU is effective for all entities in fiscal years beginning after December 15, 2015. Public business entities must apply the guidance in interim periods within the fiscal year of adoption, while all other entities must apply the guidance in interim periods within fiscal years beginning after December 15, 2016. All entities must apply the guidance retrospectively and provide the required disclosures for a change in accounting principle in the period of adoption. Early adoption is permitted. The Company adopted this ASU during the three months ended March 31, 2016. The Company has reclassified debt issuance costs from other assets, net to a reduction in long-term debt, net on the Company's condensed consolidated balance sheets. As of September 30, 2016 and December 31, 2015, the amount of debt issuance costs included as a reduction to long-term debt totaled $2.7 million and $3.3 million, respectively. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year; the effective date is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, using one of two retrospective application methods. In addition, the FASB issued other amendments during 2016 to FASB ASC Topic 606, Revenue from Contracts with Customers, that include implementation guidance to principal versus agent considerations, guidance to identifying performance obligations and licensing guidance and other narrow scope improvements. Early adoption is permitted only as of the annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company anticipates it will adopt this ASU on January 1, 2018 using the modified retrospective method. The Company continues to evaluate the impact the adoption of ASU No. 2014-09 will have on the Company's financial position and results of operations. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends FASB ASU Topic 330, Inventory. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted as of the beginning of an interim period or annual reporting period. The Company does not anticipate the adoption of this ASU to have a material impact on the Company's financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes FASB ASC Topic 840, Leases. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In addition, among other changes to the accounting for leases, this ASU retains the distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments in this ASU should be applied using a modified retrospective approach. Early application is permitted. The Company is currently evaluating the impact of this guidance on the Company's financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which seeks to reduce the diversity currently in practice by providing guidance on the presentation of eight specific cash flow issues in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of this guidance on the Company's statement of cash flows. A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our condensed consolidated financial statements. |
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Reclassifications | Reclassifications The unaudited condensed consolidated financial statements reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. |
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Fair Value | The carrying values of the Company's cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Promotional Allowances | The amounts included in promotional allowances consist of the following (in thousands):
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Schedule of Estimated Costs of Providing Promotional Allowances | The estimated departmental costs and expenses of providing these promotional allowances are included in casino operating costs and expenses and consist of the following (in thousands):
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FAIR VALUE (Tables) |
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Fair Value, Assets Measured on Recurring Basis | The following table presents a summary of fair value measurements by level for certain assets measured at fair value on a recurring basis included in the accompanying condensed consolidated balance sheets at September 30, 2016 and December 31, 2015 (in thousands):
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Change in fair value of Level 3 assets | The following table summarizes the changes in fair value of the Company's Level 3 CRDA deposits (in thousands):
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RECEIVABLES (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables consist of the following (in thousands):
|
PROPERTY AND EQUIPMENT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | Property and equipment consist of the following (in thousands):
|
GOODWILL AND INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The carrying amounts of Goodwill by segment are as follows (in thousands):
|
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Finite-Lived Intangible assets | Intangible assets consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-Lived Intangible Assets | Intangible assets consist of the following (in thousands):
|
INVESTMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investments | CRDA investments consist of the following (in thousands):
|
LONG-TERM PREPAID RENT AND OTHER ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Prepaid Rent and Other assets | Other assets consist of the following (in thousands):
|
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following (in thousands):
|
DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt consists of the following (in thousands):
|
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment Charges and Other Write-Downs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impairment Charges, Other Write-Downs and Recoveries | Impairment charges, other write-downs and recoveries consist of the following (in thousands):
|
SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 to income before income taxes for the three months ended September 30, 2016 and 2015 (in thousands, unaudited):
The following table highlights by segment our net revenues and operating income, and reconciles operating income to income before income taxes for the nine months ended September 30, 2016 and 2015 (in thousands, unaudited):
|
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Schedule of segment assets |
|
FAIR VALUE - Recurring (Details) - Recurring - CRDA - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | $ 8,728 | $ 16,405 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | $ 8,728 | $ 16,405 |
FAIR VALUE - Level 3 Reconciliation (Details) - Level 3 - CRDA Deposits - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 9,896 | $ 28,078 | $ 16,405 | $ 24,384 |
Realized or unrealized gains/(losses) | (337) | 523 | (6,057) | 2,634 |
Additional CRDA deposits | 337 | 1,229 | 2,243 | 3,289 |
CRDA Project Funds received | (1,168) | (9,872) | (3,035) | (9,872) |
Purchases of CRDA investments | 0 | (724) | (828) | (1,201) |
Ending balance | $ 8,728 | $ 19,234 | $ 8,728 | $ 19,234 |
FAIR VALUE - Additional Information (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of long-term debt | $ 292.8 | $ 287.4 |
Estimate of Fair Value Measurement | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA bonds, net | $ 8.3 | $ 8.4 |
RECEIVABLES (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, gross | $ 29,878 | $ 32,477 |
Allowance for doubtful accounts | (8,472) | (10,409) |
Receivables, net | 21,406 | 22,068 |
Casino | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, gross | 11,622 | 14,573 |
Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, gross | 5,607 | 5,330 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, gross | $ 12,649 | $ 12,574 |
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Gross Carrying Amount | $ 26,659 | $ 26,659 |
Accumulated Impairment | (10,802) | (10,802) |
Net Carrying Value | 15,857 | 15,857 |
Operating Segments | Central | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Gross Carrying Amount | 14,224 | 14,224 |
Accumulated Impairment | 0 | 0 |
Net Carrying Value | 14,224 | 14,224 |
Operating Segments | South and other | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Gross Carrying Amount | 1,731 | 1,731 |
Accumulated Impairment | (1,731) | (1,731) |
Net Carrying Value | 0 | 0 |
Corporate | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Gross Carrying Amount | 10,704 | 10,704 |
Accumulated Impairment | (9,071) | (9,071) |
Net Carrying Value | $ 1,633 | $ 1,633 |
INVESTMENTS - Schedule of Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Investment Holdings [Line Items] | ||
Total CRDA investments | $ 17,026 | $ 26,323 |
CRDA | ||
Investment Holdings [Line Items] | ||
Total CRDA investments | 17,026 | 24,823 |
CRDA | Bonds—CRDA | ||
Investment Holdings [Line Items] | ||
Investments, carrying value, gross | 16,418 | 16,551 |
Less unamortized discount | (4,235) | (4,271) |
Less valuation allowance | (3,885) | (3,862) |
CRDA | Deposits—CRDA | ||
Investment Holdings [Line Items] | ||
Investments, carrying value, gross | 19,563 | 21,183 |
Less valuation allowance | (10,835) | (4,778) |
CRDA | Direct investment—CRDA | ||
Investment Holdings [Line Items] | ||
Investments, carrying value, gross | 1,872 | 1,352 |
Less valuation allowance | $ (1,872) | $ (1,352) |
LONG-TERM PREPAID RENT AND OTHER ASSETS (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Assets [Abstract] | ||
Tropicana Evansville prepaid rent | $ 13,354 | $ 12,500 |
Deposits | 4,187 | 3,431 |
Other | 7,944 | 2,873 |
Other assets | $ 25,485 | $ 18,804 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 36,651 | $ 35,131 |
Accrued gaming and related | 15,553 | 15,620 |
Accrued taxes | 30,006 | 11,327 |
Other accrued expenses and current liabilities | 18,339 | 15,758 |
Total accrued expenses and other current liabilities | $ 100,549 | $ 77,836 |
DEBT - Schedule (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Less current portion of debt | $ (3,000) | $ (3,000) |
Long-term debt, net | 284,449 | 285,946 |
The New Credit Facilities | New Term Loan Facility, Due 2020, Interest at 4% | ||
Debt Instrument [Line Items] | ||
Long-term debt | 287,449 | 288,946 |
Less current portion of debt | (3,000) | (3,000) |
Long-term debt, net | $ 284,449 | $ 285,946 |
Interest rate (percent) | 4.00% | 4.00% |
Unamortized discount | $ 900 | $ 1,000 |
Debt issuance costs | $ 2,700 | $ 3,300 |
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Impairment Charges and Other Write-Downs [Abstract] | ||||
Impairment of intangibles | $ 0 | $ 0 | $ 0 | $ 26 |
Loss on disposal of assets | 347 | 19 | 444 | 850 |
Total impairment charges, other write-downs and recoveries | $ 347 | $ 19 | $ 444 | $ 876 |
RELATED PARTY TRANSACTIONS (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Oct. 10, 2016
slot_machine
|
|
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 100,000.0 | ||||
Trump Taj Mahal Associates, LLC | |||||
Related Party Transaction [Line Items] | |||||
Term of management agreement | 5 years | ||||
Management agreement optional renewal term | 5 years | ||||
Management fee income | $ 1,300,000 | $ 2,300,000 | |||
Subsequent Event | Trump Taj Mahal Associates, LLC | |||||
Related Party Transaction [Line Items] | |||||
Number of slot machines to be leased | slot_machine | 250 | ||||
Insight Portfolio Group | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 100,000 | $ 200,000 | $ 300,000 |
STOCKHOLDERS' EQUITY (Details) - USD ($) |
1 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2016 |
Aug. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jul. 31, 2015 |
|
Class of Warrant or Right [Line Items] | |||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares issued | 25,981,776 | 26,312,500 | |||
Common stock, shares outstanding | 25,981,776 | 26,312,500 | |||
Authorized share repurchase amount | $ 50,000,000 | ||||
Shares repurchased and canceled | 80,000 | 29,146 | 221,578 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Board of Directors Chairman | |||||
Class of Warrant or Right [Line Items] | |||||
Percentage of voting interests owned | 68.75% |
INCOME TAXES (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate from continuing operations | 39.40% | 40.80% | 39.70% | 40.90% |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
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