Acquisitions And New Ventures

6 Months Ended

Jun. 30, 2011

Acquisitions And New Ventures

Acquisitions And New Ventures

NOTE 5 — ACQUISITIONS AND NEW VENTURES

On December 16, 2010, the Company completed its acquisition of Harlow's for cash consideration of approximately $140.4 million. The purchase agreement contained provisions under which there may be future consideration received or paid related to the subsequent determination of working capital that existed at the acquisition date. During the six months ended June 30, 2011, the Company reduced goodwill by $0.4 million related to the resolution of the working capital calculation and to deferred tax adjustments.

On June 2, 2010, the Company completed its acquisition of Youbet.com, LLC ("Youbet") and United Tote for an aggregate purchase price of $131.2 million. During the six months ended June 30, 2011, the Company reduced goodwill by $0.4 million related to deferred tax adjustments.

Pro Forma

The following table illustrates the effect on net revenues, earnings from continuing operations and earnings from continuing operations per common share as if the Company had consummated the acquisitions of Harlow's and Youbet, as of January 1, 2010. The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had the acquisitions of Harlow's and Youbet been consummated at the beginning of the period presented (in thousands, except per common share data).

	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Net revenues	$	249,546	$	377,108
Earnings from continuing operations		28,326		22,048
Earnings from continuing operations per common share
Basic:
Earnings from continuing operations	$	1.69	$	1.32
Diluted:
Earnings from continuing operations	$	1.69	$	1.31
Shares used in computing earnings from continuing operations per common share:
Basic		16,309		16,309
Diluted		16,764		16,772