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Summary of Selected Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2014
Summary of Selected Significant Accounting Policies.  
Schedule of impact of dilution on earnings per share from continuing operations, based on the treasury stock method

 

 

 

 

(UNAUDITED)

 

 

 

For the Six Months Ended

 

For the Three Months Ended

 

(amounts in thousands, except for

 

June 30,

 

June 30,

 

share information)

 

2014

 

2013

 

2014

 

2013

 

Basic Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,133

 

$

673

 

$

647

 

$

405

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

8,809,663

 

8,826,904

 

8,809,435

 

8,825,343

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.13

 

$

0.08

 

$

0.07

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,133

 

$

673

 

$

647

 

$

405

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

8,809,663

 

8,826,904

 

8,809,435

 

8,825,343

 

 

 

 

 

 

 

 

 

 

 

Addition due to the effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Stock options, warrants and restricted stock (1)

 

6,923

 

18

 

6,923

 

18

 

Stock issuable under the Deferred Compensation Plan

 

310,740

 

224,762

 

310,740

 

224,762

 

 

 

 

 

 

 

 

 

 

 

Dilutive potential common shares

 

9,127,326

 

9,051,684

 

9,127,098

 

9,050,123

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.12

 

$

0.07

 

$

0.07

 

$

0.04

 

 

 

(1)     Per the treasury stock method.
Schedule of estimated useful lives of property and equipment

 

 

Asset

 

Estimated Useful Life

 

 

 

Building and improvements

 

5-50 years

Furniture, fixtures and other equipment

 

4-12 years
Schedule of property and equipment

 

 

 

 

As of
June 30, 2014

 

As of
December 31, 2013

 

 

 

(unaudited)

 

 

 

Land

 

$

2,687

 

$

2,714

 

Building and improvements

 

31,651

 

31,663

 

Furniture, fixtures and other equipment

 

11,468

 

11,333

 

 

 

 

 

 

 

 

 

45,806

 

45,710

 

Less accumulated depreciation and amortization

 

(12,823

)

(12,246

)

 

 

 

 

 

 

 

 

$

32,983

 

$

33,464

 
Schedule of impact of foreign currency translation on goodwill

 

 

 

 

Applicable

 

Goodwill

 

 

 

 

 

Foreign Exchange

 

German

 

Austrian

 

 

 

As of June 30, 2014 (in thousands, except FX)

 

Rate (“FX”) (2)

 

reporting unit

 

reporting unit

 

Total

 

 

 

 

 

 

 

 

 

 

 

Residual balance, as of January 1, 2003 (in USD) (1)

 

 

 

USD

3,042

 

USD

537

 

USD

3,579

 

 

 

 

 

 

 

 

 

 

 

USD residual balance, translated at June 30, 1998 (date of acquisition) FX rate of:

 

33.8830

 

CZK

103,072

 

CZK

18,195

 

CZK

121,267

 

 

 

 

 

 

 

 

 

 

 

2003 CZK balance, translated to USD, at June 30, 2014 FX rate of:

 

20.1100

 

USD

5,125

 

USD

905

 

USD

6,030

 

 

 

 

 

 

 

 

 

 

 

Net cumulative change to goodwill due to foreign currency translation

 

 

 

USD

2,083

 

USD

368

 

USD

2,451

 

 

 

(1)     Goodwill was amortized over 15 years until the Company started to comply with revised GAAP requirements, as of January 1, 2002. This balance represents the remaining, unamortized goodwill, after an impairment charge taken prior to January 1, 2003.

(2)     FX (interbank) rates taken from www.Oanda.com.
Schedule of repurchase transactions

ISSUER PURCHASES OF EQUITY SECURITIES

 

Date

 

Total
Number of
Shares
Purchased

 

Average
Price Paid
per Share

 

Cumulative Total of
Number of Shares
Purchased as Part of
Publicly Announced
Plan

 

Maximum Number
of Shares That May
Yet Be Purchased
Under the Plan or
Program

 

As of 12/31/2013

 

 

 

$

2.80

 

61,500

 

438,500

 

01/09/2014

 

100

 

$

2.55

 

61,600

 

438,400

 

03/07/2014

 

300

 

$

3.01

 

61,900

 

438,100

 

03/12/2014

 

300

 

$

3.03

 

62,200

 

437,800

 
Schedule of promotional allowances

 

 

 

 

(UNAUDITED)

 

 

 

For the Six Months Ended

 

For the Three Months Ended

 

 

 

June 30,

 

June 30,

 

(amounts in thousands)

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Cost of gratuitous F&B (A)

 

$

1,173

 

$

1,146

 

$

592

 

$

575

 

Average cost of F&B sold (B)

 

30.0

%

36.3

%

33.8

%

36.0

%

 

 

 

 

 

 

 

 

 

 

Retail value of F&B (A/B)

 

$

3,910

 

$

3,157

 

$

1,751

 

$

1,597

 
Summary of changes in gaming tax law

 

 

Basis

 

Gaming Tax Law *

 

 

 

Live Games

 

20% Gaming Tax from live game revenue (70% of tax paid to the federal government; 30% paid to the local municipality).

 

 

 

Slots

 

20% Gaming Tax from slot revenue (20% of tax paid to the federal government; 80% paid to the local municipality);

 

 

Fifty-five Korunas (or approximately three U.S. dollars) Gaming Tax per Slot Machine, per Day (paid to the federal government).

 

 

 

Net Income

 

19% corporate income tax on net income earned in the CZ, net of exemptions, as defined by CZ tax authorities (paid to the federal government).

 

 

*       Gaming taxes are paid quarterly, by the 25th day following the end of a quarter, while estimated quarterly income tax payments were required commencing at the beginning of the third quarter of 2013, with the 2013 corporate income tax obligation paid by June 30, 2014.  The Company currently pays estimated quarterly income taxes with its annual taxes due by June 30th of the next year.
Schedule of gaming-related taxes and fees

 

 

 

 

(UNAUDITED)

 

 

 

For the Six Months Ended

 

For the Three Months Ended

 

(amounts in thousands)

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Gaming revenues (live-game and slot only)

 

$

16,853

 

$

15,710

 

$

8,539

 

$

8,253

 

 

 

 

 

 

 

 

 

 

 

Gaming taxes on live games and slots

 

$

3,545

 

$

3,305

 

$

1,795

 

$

1,732

 

Gaming taxes as % of gaming revenue

 

21.0

%

21.0

%

21.0

%

21.0

%