SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2013 and 2012.

	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Net revenue
Atlantis	$	37,231,961		$	34,468,122		$	71,295,352		$	67,367,383
Black Hawk(a)	12,419,133			8,003,028			23,960,379			8,003,028
Total net revenue	$	49,651,094		$	42,471,150		$	95,255,731		$	75,370,411
Adjusted EBITDA (b)
Atlantis	$	11,173,417		$	7,789,198		$	20,379,488		$	15,588,817
Black Hawk(a)	4,821,254			2,546,186			8,837,949			2,546,186
	15,994,671			10,335,384			29,217,437			18,135,003
Corporate and other expense(c)	(1,159,940		)	(747,950		)	(2,318,497		)	(1,977,130		)
Total Adjusted EBITDA	$	14,834,731		$	9,587,434		$	26,898,940		$	16,157,873
Expenses
Stock-based compensation	(286,389		)	(316,866		)	(522,255		)	(585,352		)
Depreciation and amortization	(4,379,873		)	(4,260,205		)	(9,023,308		)	(7,635,289		)
Acquisition expense	—			(1,625,930		)	—			(1,700,521		)
Interest expense	(516,231		)	(577,000		)	(1,082,327		)	(905,661		)
Provision for income taxes	(3,531,994		)	(1,014,675		)	(5,888,810		)	(1,896,925		)
Net income	$	6,120,244		$	1,792,758		$	10,382,240		$	3,434,125

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

(b) We define Adjusted EBITDA, a non-GAAP measure, 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.