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Summary of Selected Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 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

 

 

 

For the Nine Months Ended

 

For the Three Months Ended

 

(amounts in thousands, except for

 

September 30,

 

September 30,

 

share information)

 

2014

 

2013

 

2014

 

2013

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Basic Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net Income

 

$
2,001 

 

$
1,379 

 

$
868 

 

$
706 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 
8,811,991 

 
8,826,375 

 
8,816,571 

 
8,825,335 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$
0.23 

 

$
0.16 

 

$
0.10 

 

$
0.08 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net Income

 

$
2,001 

 

$
1,379 

 

$
868 

 

$
706 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 
8,811,991 

 
8,826,375 

 
8,816,571 

 
8,825,335 

 

 

 

 

 

 

 

 

 

 

 

Addition due to the effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Stock options, restricted stock and warrants (1)

 
3,606 

 
11 

 
6,244 

 
11 

 

Stock issuable under the Deferred Compensation Plan

 
301,391 

 
226,441 

 
301,391 

 
226,441 

 

 

 

 

 

 

 

 

 

 

 

Dilutive potential weighted average common shares

 
9,116,988 

 
9,052,827 

 
9,124,206 

 
9,051,787 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$
0.22 

 

$
0.15 

 

$
0.10 

 

$
0.08 

 

 

 

(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
September 30, 2014

 

As of
December 31, 2013

 

 

 

(Unaudited)

 

 

 

Land

 

$
3,779

 

$
2,714

 

Building and improvements

 
34,998

 
31,663

 

Furniture, fixtures and other equipment

 
10,996

 
11,333

 

 

 

 

 

 

 

 

 
49,773

 
45,710

 

Less accumulated depreciation and amortization

 
(12,295

)
(12,246

)

 

 

 

 

 

 

 

 

$
37,478

 

$
33,464

 

 

Schedule of impact of foreign currency translation on goodwill

 

 

 

Applicable

 

Goodwill

 

 

 

 

 

Foreign Exchange

 

German

 

Austrian

 

 

 

As of September 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 September 30, 2014 FX rate of:

 
21.6907 

 

USD
4,752 

 

USD
839 

 

USD
5,591 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cumulative change to goodwill due to foreign currency translation

 

 

 

USD
1,710 

 

USD
302 

 

USD
2,012 

 

 

(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 Nine Months Ended

 

For the Three Months Ended

 

 

 

September 30,

 

September 30,

 

(amounts in thousands)

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Cost of gratuitous F&B (A)

 

$
1,702 

 

$
1,744 

 

$
568 

 

$
598 

 

Average cost of F&B sold (B)

 
31.2 

%
35.4 

%
34.1 

%
34.0 

%

Retail value of F&B (A/B)

 

$
5,455 

 

$
4,927 

 

$
1,666 

 

$
1,759 

 

 

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. Estimated quarterly income tax payments were required commencing at the beginning of the third quarter of 2013, payable by the 25th day following the end of a quarter, with the final annual corporate income tax returns and payment obligation payable by June 30th of the following year.

 

Schedule of gaming-related taxes and fees

 

 

 

(UNAUDITED)

 

 

 

For the Nine Months Ended

 

For the Three Months Ended

 

(amounts in thousands)

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Gaming revenues (live-game and slot only)

 

$
25,262 

 

$
23,719 

 

$
8,409 

 

$
8,008 

 

 

 

 

 

 

 

 

 

 

 

Gaming taxes on live games and slots

 

$
5,312 

 

$
4,994 

 

$
1,767 

 

$
1,689 

 

Gaming taxes as % of gaming revenue

 
21.0 

%
21.1 

%
21.0 

%
21.1 

%