NOTE 4 — INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATE

Miami Valley Gaming Joint Venture

The Company's 50% joint venture with Delaware North Companies Gaming & Entertainment Inc. (“DNC”) was established during 2012 to develop a new harness racetrack and video lottery terminal (“VLT”) casino facility in Lebanon, Ohio. Through the joint venture agreement, the Company and DNC formed a new company, Miami Valley Gaming, LLC (“MVG”), to manage both the Company’s and DNC’s interests in the development and operation of the racetrack and VLT casino facility. On December 21, 2012, MVG completed the purchase of the harness racing licenses and certain assets held by Lebanon Trotting Club Inc. and Miami Valley Trotting Inc. ("MVG Sellers") for total consideration of $60.0 million, of which $10.0 million was funded at closing with the remainder funded through a $50.0 million note payable with a six year term effective upon the commencement of casino operations. In addition, there is a potential contingent consideration payment of $10.0 million based on the financial performance of the facility during the seven-year period after casino operations commence.

On December 12, 2013, the new facility opened in Lebanon, Ohio on a 120-acre site. The facility includes a 5/8-mile harness racing track and an 186,000-square-foot casino facility with approximately 1,600 VLTs. MVG invested $204.6 million in the new facility, including a $50.0 million license fee to the Ohio Lottery Commission.

Since both DNC and the Company have participating rights over MVG, and both must consent to MVG's operating, investing and financing decisions, the Company accounts for MVG using the equity method. Summarized financial information for MVG is comprised of the following (in thousands):



	September 30, 2015		December 31, 2014
Assets
Current assets	$	23,303	$	24,943
Property and equipment, net	122,371		130,868
Other assets, net	105,058		105,059
Total assets	$	250,732	$	260,870

Liabilities and Members' Equity
Current liabilities	$	17,636	$	16,775
Current portion of long-term debt	8,332		8,332
Long-term debt, excluding current portion	22,085		26,584
Other liabilities	75		83
Members' equity	202,604		209,096
Total liabilities and members' equity	$	250,732	$	260,870

The joint venture's long-term debt consists of a $50.0 million secured note payable from MVG to the MVG Sellers payable quarterly over 6 years through November 2019 at a 5.0% interest rate for which it has funded $14.6 million in principal repayments. During the three and nine months ended September 30, 2015, the Company received distributions from MVG totaling $3.5 million and $11.0 million, respectively.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Casino revenue	$	32,199		$	32,479		$	97,362		$	96,766
Non-casino revenue	1,468			1,289			5,304			4,833
Net revenues	33,667			33,768			102,666			101,599
Operating and SG&A expenses	24,645			25,237			74,331			74,225
Depreciation & amortization expenses	3,279			3,474			9,577			10,315
Pre-opening expenses	—			—			—			54
Operating income	5,743			5,057			18,758			17,005
Interest (expense) income, net	(1,069		)	(1,380		)	(3,250		)	(3,654		)
Net income	$	4,674		$	3,677		$	15,508		$	13,351

The Company's 50% share of MVG's results has been included in our accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2015 and 2014, as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Equity in gains of unconsolidated investments	$	2,337	$	1,839	$	7,754	$	6,676