SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 10. SEGMENT INFORMATION

We have defined two reportable operating segments:  the Atlantis and Rivera Black Hawk.  We use Adjusted EBITDA (as defined below) to compare operating results among our segments and allocate resources. The following table highlights our Adjusted EBITDA and reconciles Adjusted EBITDA to net income for the three and nine months ended September 30, 2012 and 2011.

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Net revenues:
Atlantis	$	36,830,127		$	36,174,386		$	107,752,749		$	106,620,075
Black Hawk (a)	11,031,584			—			18,955,648			—
Total net revenue	$	47,861,711		$	36,174,386		$	126,708,397		$	106,620,075
Adjusted EBITDA (b):
Atlantis	$	9,170,407		$	8,602,316		$	25,177,650		$	27,217,220
Black Hawk (a)	4,085,155			—			6,631,341			—
	13,255,562			8,602,316			31,808,991			27,217,220
Corporate and other expense (c)	(934,398		)	(818,595		)	(3,318,457		)	(3,400,035		)
Total Adjusted EBITDA	$	12,321,164		$	7,783,721		$	28,490,534		$	23,817,185
Expenses:
Stock based compensation	(352,900		)	(361,130		)	(938,251		)	(1,238,972		)
Depreciation and amortization	(4,647,002		)	(3,314,598		)	(12,282,291		)	(10,144,999		)
Acquisition expense	(454,701		)	(437,400		)	(2,155,522		)	(437,400		)
Adventure Inn demolition	—			(3,519,148		)	—			(3,519,148		)
Interest expense	(479,772		)	(160,237		)	(1,396,632		)	(643,505		)
(Provision) benefit for income taxes	(2,249,708		)	20,071			(4,146,633		)	(2,724,600		)
Net income	$	4,137,081		$	11,279		$	7,571,205		$	5,108,561

	September 30, 2012		December 31, 2011
Assets:
Atlantis	$	148,995,874	$	171,303,164
Black Hawk (a)	90,254,483		—
Corporate and other (d)	8,369,189		8,296,440
Total assets	$	247,619,546	$	179,599,604

	Nine Months Ended September 30,
	2012		2011
Capital Expenditures:
Atlantis	$	3,882,410	$	3,831,301
Black Hawk (a)	4,071,945		—
	$	7,954,355	$	3,831,301

(a)We acquired Black Hawk on April 26, 2012.

(b)We define Adjusted EBITDA for each segment as net income plus provision for income taxes, interest expense, acquisition expense, depreciation and amortization and stock based compensation.

(c)Corporate and other expenses represent unallocated payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations.

(d)Corporate assets include assets not directly related to our casino and hotel operations and the assets of our non-operating subsidiaries.