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Summary of Selected Significant Accounting Policies (Tables).
 9 Months Ended
Sep. 30, 2015
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 Nine Months Ended

 

For the Three Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Basic Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net income

 

$
2,399 

 

$
2,001 

 

$
1,166 

 

$
868 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 
8,821,205 

 
8,811,991 

 
8,821,205 

 
8,816,571 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$
0.27 

 

$
0.23 

 

$
0.13 

 

$
0.10 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

 

Net income

 

$
2,399 

 

$
2,001 

 

$
1,166 

 

$
868 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 
8,821,205 

 
8,811,991 

 
8,821,205 

 
8,816,571 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Addition due to the effect of dilutive securities using the treasury stock method:

 

 

 

 

 

 

 

 

 

Stock options, restricted stock and warrants

 
396 

 
3,606 

 

 

 
6,244 

 

Stock issuable under the Deferred Compensation Plan

 
436,712 

 
301,391 

 
436,712 

 
301,391 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive potential weighted average common shares

 
9,258,313 

 
9,116,988 

 
9,257,917 

 
9,124,206 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$
0.26 

 

$
0.22 

 

$
0.13 

 

$
0.10 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of estimated useful lives of property and equipment

 

Asset

 

Estimated Useful Life

 

 

 

 

 

Buildings

 

20-50 years

 

Furniture, fixtures and equipment

 

3-12 years

 

Leasehold improvements

 

5-20 years

 

 

Schedule of property and equipment

 

 

 

As of
September 30, 2015

 

As of
December 31, 2014

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Land

 

$
2,889

 

$
3,148

 

Building and improvements

 
35,502

 
33,480

 

Furniture, fixtures and other equipment

 
11,844

 
10,940

 

 

 

 

 

 

 

 

 
50,235

 
47,568

 

Less accumulated depreciation and amortization

 
(12,713

)
(12,099

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
37,522

 

$
35,469

 

 

 

 

 

 

 

 

 

 

Schedule of impact of foreign currency translation on goodwill

 

 

 

Goodwill

 

 

 

 

 

Pilsen

 

South-Moravia

 

Lower Saxony

 

 

 

As of September 30, 2015 (in thousands, except FX)

 

reporting unit

 

reporting unit

 

reporting unit

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance in USD ($)

 

$
3,042 

(1)

$
537 

(1)

$
129 

 

$
3,708 

 

Balance in EUR (€)

 

 

 

 

 

€
117 

 

€
117 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Rate (“FX”)

 
33.883 

 
33.883 

 
27.245 

 

 

 

Balance in CZK (Kč)

 

Kč
103,072 

(2)

Kč
18,195 

(2)

Kč
3,180 

(3)

Kč
124,447 

 

 

 

 

 

 

 

 

 

 

 

Applicable FX (4)

 
24.266 

 
24.266 

 
24.266 

 

 

 

Balance at September 30, 2015

 

$
4,248 

 

$
750 

 

$
131 

 

$
5,129 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cumulative change to goodwill due to foreign currency translation

 

$
1,206 

 

$
213 

 

$
2 

 

$
1,421 

 

 

 

(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 was taken prior to January 1, 2003.

(2)

USD residual balance translated to CZK at June 30, 1998, the date of acquisition of such assets, with the date of acquisition CZK to USD FX rate of 33.883.

(3)

Provisional EUR balance translated to CZK at June 1, 2015, the date of acquisition of the Hotel Freizeit, with the date of acquisition CZK to EUR FX rate of 27.245.

(4)

FX central bank foreign exchange rates taken from www.CNB.CZ.

 

Summary of changes in gaming tax law

 

 

 

 

Based on the Gaming Tax Law

 

 

that became effective January 1, 2012.

 

 

 

Live Games

 

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

 

 

 

Slots

 

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

 

 

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

 

 

* Gaming taxes are to be paid quarterly, by the 25th day following the end of a quarter.

TWC was current on all of its Czech gaming tax payments at September 30, 2015 and through the date of this report.

 

 

 

Schedule of gaming-related taxes and fees

 

 

 

 

(UNAUDITED)

 

 

 

For the Nine Months Ended

 

For the Three Months Ended

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Live-game and slot revenues (gaming revenues)

 

$
24,932 

 

$
25,262 

 

$
8,542 

 

$
8,409 

 

Gaming taxes on gaming revenues

 

$
5,213 

 

$
5,312 

 

$
1,787 

 

$
1,767 

 

Gaming taxes as % of gaming revenues

 
20.9 

%
21.0 

%
20.9 

%
21.0 

%