SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 8.  SEGMENT INFORMATION

We have two reportable operating segments, the Atlantis and Black Hawk.  The following table highlights our Adjusted EBITDA and reconciles Adjusted EBITDA to net income for the three months ended March 31, 2013 and 2012.

	Three months ended March 31,
	2013		2012
Net revenue
Atlantis	$	36,048,764	$	34,868,056
Black Hawk(a)	11,595,263		—
Total net revenue	$	47,644,027	$	34,868,056

	Three months ended March 31,
	2013			2012
Adjusted EBITDA (b)
Atlantis	$	9,327,000		$	7,818,152
Black Hawk(a)	4,016,696			—
	13,343,696			7,818,152
Corporate and other expense(c)	(1,279,487		)	(1,247,714		)
Total Adjusted EBITDA	$	12,064,209		$	6,570,438
Expenses
Stock based compensation	(235,860		)	(268,485		)
Depreciation and amortization	(4,643,435		)	(3,375,084		)
Acquisition expense	—			(74,591		)
Interest expense	(566,096		)	(328,661		)
Provision for income taxes	(2,356,816		)	(882,250		)
Net income	$	4,262,002		$	1,641,367

(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, management fee income or expense, gain or loss on disposal of assets, depreciation and amortization and stock based compensation.  Adjusted EBITDA should not be construed as an alternative to operating income (as determined in accordance with generally accepted accounting principles) as an indicator of the Company’s operating performance, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company’s performance with the performance of other companies that report Adjusted EBITDA, although some companies do not calculate this measure in the same manner and therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies.

(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.