Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.7.0.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
The Company currently has four reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments, and (iv) corporate. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of March 31, 2017, the Company owned, leased or managed 78 properties across 13 states.  Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. 

The Debt Investment segment consists primarily of loans and securities which the Company plans to monetize as part of its transformation to a leisure and entertainment company. The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable (Note 8) and management fees pursuant to the Management Agreement (Note 12). Segment information for previously reported periods has been restated to reflect the change to the reportable segments in the fourth quarter of 2016.
Summary financial data on the Company’s segments is given below, together with reconciliation to the same data for the Company as a whole:
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments (A)
 
Corporate
 
Total
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
46,296

 
$
—

 
$
—

 
$
—

 
$
46,296

Sales of food and beverages
12,845

 
—

 
—

 
—

 
12,845

Total revenues
59,141

 
—

 
—

 
—

 
59,141

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (B)
54,431

 
—

 
—

 
—

 
54,431

Cost of sales - food and beverages
4,032

 
—

 
—

 
—

 
4,032

General and administrative expense
700

 
65

 
1

 
1,145

 
1,911

General and administrative expense - acquisition and transaction expenses (C)
276

 
1,261

 
—

 
117

 
1,654

Management fee to affiliate
—

 
—

 
—

 
2,677

 
2,677

Depreciation and amortization
5,793

 
—

 
—

 
—

 
5,793

Realized/unrealized loss on investments
120

 
—

 
3,269

 
—

 
3,389

Total operating costs
65,352

 
1,326

 
3,270

 
3,939

 
73,887

Operating loss
(6,211
)
 
(1,326
)
 
(3,270
)
 
(3,939
)
 
(14,746
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
39

 
—

 
7,802

 
47

 
7,888

Interest expense
(3,817
)
 
—

 
(1,206
)
 
(411
)
 
(5,434
)
Other (loss) income, net
(624
)
 
—

 
501

 
—

 
(123
)
Total other income (expenses)
(4,402
)
 
—

 
7,097

 
(364
)
 
2,331

Income tax expense (D)
—

 
—

 
—

 
539

 
539

Net (loss) income
(10,613
)
 
(1,326
)
 
3,827

 
(4,842
)
 
(12,954
)
Preferred dividends
—

 
—

 
—

 
(1,395
)
 
(1,395
)
(Loss) income applicable to common stockholders
$
(10,613
)
 
$
(1,326
)
 
$
3,827

 
$
(6,237
)
 
$
(14,349
)
 
 
 
 
 
 
 
 
Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments (A)
 
Corporate
 
Total
March 31, 2017
 
 
 
 
 
 
 
 
 
Investments
$
278,686

 
$
1,132

 
$
407,589

 
$
—

 
$
687,407

Cash and restricted cash
13,681

 
1,254

 
1,545

 
117,703

 
134,183

Other assets
34,427

 
2,136

 
1,444

 
158

 
38,165

Total assets
326,794

 
4,522

 
410,578

 
117,861

 
859,755

Debt, net
114,851

 
—

 
310,630

 
51,214

 
476,695

Other liabilities
167,342

 
1,578

 
5,967

 
4,333

 
179,220

Total liabilities
282,193

 
1,578

 
316,597

 
55,547

 
655,915

Preferred stock
—

 
—

 
—

 
61,583

 
61,583

Noncontrolling interest
—

 
—

 
—

 
—

 
—

Equity attributable to common stockholders
$
44,601

 
$
2,944

 
$
93,981

 
$
731

 
$
142,257

 
 
 
 
 
 
 
 
 
 
Additions to investments in real estate during the three months ended March 31, 2017
$
3,496

 
$
138

 
$
—

 
$
—

 
$
3,634


 
Traditional Golf
 
Entertainment Golf
 
Debt Investments (A)
 
Corporate
 
Total
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
48,597

 
$
—

 
$
—

 
$
—

 
$
48,597

Sales of food and beverages
13,561

 
—

 
—

 
—

 
13,561

Total revenues
62,158

 
—

 
—

 
—

 
62,158

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (B)
58,219

 
—

 
—

 
—

 
58,219

Cost of sales - food and beverages
4,597

 
—

 
—

 
—

 
4,597

General and administrative expense
839

 
2

 
37

 
1,883

 
2,761

General and administrative expense - acquisition and transaction expenses (C)
126

 
12

 
—

 
38

 
176

Management fee to affiliate
—

 
—

 
—

 
2,675

 
2,675

Depreciation and amortization
6,031

 
—

 
—

 
—

 
6,031

Impairment
—

 
—

 
2,308

 
—

 
2,308

Realized/unrealized loss on investments
1

 
—

 
2,006

 
—

 
2,007

Total operating costs
69,813

 
14

 
4,351

 
4,596

 
78,774

Operating loss
(7,655
)
 
(14
)
 
(4,351
)
 
(4,596
)
 
(16,616
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
42

 
—

 
20,991

 
6

 
21,039

Interest expense
(2,665
)
 
—

 
(9,924
)
 
(945
)
 
(13,534
)
Gain on deconsolidation
—

 
—

 
82,130

 
—

 
82,130

Other (loss) income, net
(283
)
 
—

 
603

 
—

 
320

Total other income (expenses)
(2,906
)
 
—

 
93,800

 
(939
)
 
89,955

Income tax expense
44

 
—

 
—

 
—

 
44

Net (loss) income
(10,605
)
 
(14
)
 
89,449

 
(5,535
)
 
73,295

Preferred dividends
—

 
—

 
—

 
(1,395
)
 
(1,395
)
Net loss attributable to noncontrolling interest
124

 
—

 
—

 
—

 
124

(Loss) income applicable to common stockholders
$
(10,481
)
 
$
(14
)
 
$
89,449

 
$
(6,930
)
 
$
72,024

 
 
 
 
 
 
 
 
 
 
(A)
The following table summarizes the investments and debt in the Debt Investments segment:
 
March 31, 2017
 
Investments
 
Debt
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
Unlevered real estate securities
$
4,000

 
$
2,032

 
$
—

 
$
—

Levered real estate securities
319,380

 
326,878

 
310,630

 
310,630

Real estate related and other loans (E)
78,125

 
59,043

 
—

 
—

Other investments
N/A

 
19,636

 
—

 
—

 
$
401,505

 
$
407,589

 
$
310,630

 
$
310,630


(B)
Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.8 million and $1.0 million for the three months ended March 31, 2017 and 2016, respectively.
(C)
Acquisition and transaction expense includes costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expense also includes personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues.
(D)
Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment.
(E)
Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million.