| Schedule of segment reporting |
Summary financial data on the Company’s segments is given below, together with reconciliation to the same data for the Company as a whole:
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Traditional Golf |
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Entertainment Golf |
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Debt Investments (A) |
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Corporate |
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Total |
Three Months Ended March 31, 2017 |
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Revenues |
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Golf course operations |
$ |
46,296 |
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|
$ |
— |
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$ |
— |
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|
$ |
— |
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|
$ |
46,296 |
|
Sales of food and beverages |
12,845 |
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— |
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— |
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— |
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|
12,845 |
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Total revenues |
59,141 |
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— |
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— |
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— |
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|
59,141 |
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Operating costs |
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Operating expenses (B) |
54,431 |
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— |
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— |
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— |
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54,431 |
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Cost of sales - food and beverages |
4,032 |
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— |
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— |
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— |
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|
4,032 |
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General and administrative expense |
700 |
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|
65 |
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1 |
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|
1,145 |
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|
1,911 |
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General and administrative expense - acquisition and transaction expenses (C) |
276 |
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|
1,261 |
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— |
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117 |
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|
1,654 |
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Management fee to affiliate |
— |
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— |
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— |
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2,677 |
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|
2,677 |
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Depreciation and amortization |
5,793 |
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— |
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— |
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— |
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|
5,793 |
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Realized/unrealized loss on investments |
120 |
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— |
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|
3,269 |
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— |
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|
3,389 |
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Total operating costs |
65,352 |
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|
1,326 |
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|
3,270 |
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|
3,939 |
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|
73,887 |
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Operating loss |
(6,211 |
) |
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(1,326 |
) |
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(3,270 |
) |
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(3,939 |
) |
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(14,746 |
) |
Other income (expenses) |
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Interest and investment income |
39 |
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— |
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|
7,802 |
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|
47 |
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|
7,888 |
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Interest expense |
(3,817 |
) |
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— |
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(1,206 |
) |
|
(411 |
) |
|
(5,434 |
) |
Other (loss) income, net |
(624 |
) |
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— |
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|
501 |
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— |
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(123 |
) |
Total other income (expenses) |
(4,402 |
) |
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— |
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7,097 |
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|
(364 |
) |
|
2,331 |
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Income tax expense (D) |
— |
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— |
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— |
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|
539 |
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|
539 |
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Net (loss) income |
(10,613 |
) |
|
(1,326 |
) |
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3,827 |
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(4,842 |
) |
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(12,954 |
) |
Preferred dividends |
— |
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— |
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— |
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(1,395 |
) |
|
(1,395 |
) |
(Loss) income applicable to common stockholders |
$ |
(10,613 |
) |
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$ |
(1,326 |
) |
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$ |
3,827 |
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|
$ |
(6,237 |
) |
|
$ |
(14,349 |
) |
Summary segment financial data (continued).
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Traditional Golf |
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Entertainment Golf |
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Debt Investments (A) |
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Corporate |
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Total |
March 31, 2017 |
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Investments |
$ |
278,686 |
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$ |
1,132 |
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$ |
407,589 |
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$ |
— |
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$ |
687,407 |
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Cash and restricted cash |
13,681 |
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|
1,254 |
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|
1,545 |
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|
117,703 |
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|
134,183 |
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Other assets |
34,427 |
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|
2,136 |
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|
1,444 |
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|
158 |
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|
38,165 |
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Total assets |
326,794 |
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|
4,522 |
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|
410,578 |
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|
117,861 |
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|
859,755 |
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Debt, net |
114,851 |
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— |
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|
310,630 |
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|
51,214 |
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|
476,695 |
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Other liabilities |
167,342 |
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|
1,578 |
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|
5,967 |
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|
4,333 |
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|
179,220 |
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Total liabilities |
282,193 |
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|
1,578 |
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|
316,597 |
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|
55,547 |
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|
655,915 |
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Preferred stock |
— |
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— |
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— |
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61,583 |
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61,583 |
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Noncontrolling interest |
— |
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— |
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— |
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— |
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— |
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Equity attributable to common stockholders |
$ |
44,601 |
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$ |
2,944 |
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$ |
93,981 |
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$ |
731 |
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$ |
142,257 |
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Additions to investments in real estate during the three months ended March 31, 2017 |
$ |
3,496 |
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$ |
138 |
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$ |
— |
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$ |
— |
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$ |
3,634 |
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Traditional Golf |
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Entertainment Golf |
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Debt Investments (A) |
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Corporate |
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Total |
Three Months Ended March 31, 2016 |
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Revenues |
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Golf course operations |
$ |
48,597 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
48,597 |
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Sales of food and beverages |
13,561 |
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— |
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— |
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— |
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13,561 |
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Total revenues |
62,158 |
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— |
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— |
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— |
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62,158 |
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Operating costs |
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Operating expenses (B) |
58,219 |
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— |
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— |
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— |
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58,219 |
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Cost of sales - food and beverages |
4,597 |
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— |
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— |
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— |
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4,597 |
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General and administrative expense |
839 |
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2 |
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37 |
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1,883 |
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|
2,761 |
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General and administrative expense - acquisition and transaction expenses (C) |
126 |
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12 |
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— |
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|
38 |
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|
176 |
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Management fee to affiliate |
— |
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— |
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— |
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|
2,675 |
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|
2,675 |
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Depreciation and amortization |
6,031 |
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— |
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— |
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— |
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|
6,031 |
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Impairment |
— |
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— |
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|
2,308 |
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— |
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|
2,308 |
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Realized/unrealized loss on investments |
1 |
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— |
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|
2,006 |
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— |
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|
2,007 |
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Total operating costs |
69,813 |
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|
14 |
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|
4,351 |
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|
4,596 |
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|
78,774 |
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Operating loss |
(7,655 |
) |
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(14 |
) |
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(4,351 |
) |
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(4,596 |
) |
|
(16,616 |
) |
Other income (expenses) |
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Interest and investment income |
42 |
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|
— |
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|
20,991 |
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|
6 |
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|
21,039 |
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Interest expense |
(2,665 |
) |
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— |
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(9,924 |
) |
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(945 |
) |
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(13,534 |
) |
Gain on deconsolidation |
— |
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— |
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|
82,130 |
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— |
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82,130 |
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Other (loss) income, net |
(283 |
) |
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— |
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|
603 |
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— |
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|
320 |
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Total other income (expenses) |
(2,906 |
) |
|
— |
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|
93,800 |
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|
(939 |
) |
|
89,955 |
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Income tax expense |
44 |
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|
— |
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— |
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— |
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|
44 |
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Net (loss) income |
(10,605 |
) |
|
(14 |
) |
|
89,449 |
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|
(5,535 |
) |
|
73,295 |
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Preferred dividends |
— |
|
|
— |
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|
— |
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|
(1,395 |
) |
|
(1,395 |
) |
Net loss attributable to noncontrolling interest |
124 |
|
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— |
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— |
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— |
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|
124 |
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(Loss) income applicable to common stockholders |
$ |
(10,481 |
) |
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$ |
(14 |
) |
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$ |
89,449 |
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$ |
(6,930 |
) |
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$ |
72,024 |
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|
(A) |
The following table summarizes the investments and debt in the Debt Investments segment: |
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March 31, 2017 |
|
Investments |
|
Debt |
|
Outstanding
Face Amount |
|
Carrying
Value |
|
Outstanding
Face Amount |
|
Carrying
Value |
Unlevered real estate securities |
$ |
4,000 |
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$ |
2,032 |
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$ |
— |
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$ |
— |
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Levered real estate securities |
319,380 |
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|
326,878 |
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|
310,630 |
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|
310,630 |
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Real estate related and other loans (E) |
78,125 |
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|
59,043 |
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— |
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— |
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Other investments |
N/A |
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|
19,636 |
|
|
— |
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|
— |
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|
$ |
401,505 |
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$ |
407,589 |
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$ |
310,630 |
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$ |
310,630 |
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(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.
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(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. |
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(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. |
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(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.
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