SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 8. SEGMENT INFORMATION

We have two reportable operating segments, the Atlantis and Monarch Black Hawk.  The following table highlights our Adjusted EBITDA and reconciles Adjusted EBITDA to net income for the three and nine months ended September 30, 2013 and 2012.

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Net revenue
Atlantis	$	37,134,295		$	34,884,096		$	108,429,648		$	102,251,479
Monarch Black Hawk (a)	11,855,184			11,144,130			35,815,562			19,147,157
Total net revenue	$	48,989,479		$	46,028,226		$	144,245,210		$	121,398,636
Adjusted EBITDA (b)
Atlantis	$	9,749,013		$	8,955,232		$	30,117,875		$	24,548,954
Monarch Black Hawk (a)	4,088,242			4,085,155			12,926,192			6,631,341
	13,837,255			13,040,387			43,044,067			31,180,295
Corporate and other (c)	(1,054,698		)	(707,723		)	(3,362,570		)	(2,689,761		)
Total Adjusted EBITDA	12,782,557			12,332,664			39,681,497			28,490,534
Expenses
Stock-based compensation	(294,381		)	(352,900		)	(816,636		)	(938,251		)
Depreciation and amortization	(3,549,106		)	(4,647,002		)	(12,572,414		)	(12,282,291		)
Acquisition expenses	—			(455,000		)	—			(2,155,522		)
Interest expense	(411,243		)	(490,973		)	(1,493,570		)	(1,396,632		)
Provision for income taxes	(3,008,318		)	(2,249,708		)	(8,897,128		)	(4,146,633		)
Net Income	$	5,519,509		$	4,137,081		$	15,901,749		$	7,571,205

(a) We acquired Monarch 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 represents unallocated payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations.