Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING (Tables)

v3.8.0.1
SEGMENT REPORTING (Tables)
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Schedule of segment reporting
Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole:
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
168,969

 
$

 
$

 
$

 
$
168,969

Sales of food and beverages
53,223

 

 

 

 
53,223

Total revenues
222,192

 

 

 

 
222,192

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
187,539

 
191

 

 

 
187,730

Cost of sales - food and beverages
15,762

 

 

 

 
15,762

General and administrative expense
2,152

 
203

 
10

 
3,899

 
6,264

General and administrative expense - acquisition and transaction expenses (B)
558

 
4,122

 

 
171

 
4,851

Management fee to affiliate

 

 

 
8,032

 
8,032

Depreciation and amortization
17,936

 
16

 

 

 
17,952

Impairment

 

 
60

 

 
60

Realized and unrealized loss on investments
317

 

 
6,044

 

 
6,361

Total operating costs
224,264

 
4,532

 
6,114

 
12,102

 
247,012

Operating loss
(2,072
)
 
(4,532
)
 
(6,114
)
 
(12,102
)
 
(24,820
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
114

 

 
22,137

 
450

 
22,701

Interest expense, net (C)
(11,500
)
 

 
(2,532
)
 
(1,303
)
 
(15,335
)
Other (loss) income, net
(1,044
)
 

 
1,416

 

 
372

Total other income (expenses)
(12,430
)
 

 
21,021

 
(853
)
 
7,738

Income tax expense (D)

 

 

 
1,047

 
1,047

Net (loss) income
(14,502
)
 
(4,532
)
 
14,907

 
(14,002
)
 
(18,129
)
Preferred dividends

 

 

 
(4,185
)
 
(4,185
)
(Loss) income applicable to common stockholders
$
(14,502
)
 
$
(4,532
)
 
$
14,907

 
$
(18,187
)
 
$
(22,314
)

Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
62,034

 
$

 
$

 
$

 
$
62,034

Sales of food and beverages
19,657

 

 

 

 
19,657

Total revenues
81,691

 

 

 

 
81,691

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
67,244

 
141

 

 

 
67,385

Cost of sales - food and beverages
5,721

 

 

 

 
5,721

General and administrative expense
708

 
60

 
10

 
1,619

 
2,397

General and administrative expense - acquisition and transaction expenses (B)
72

 
1,804

 

 
55

 
1,931

Management fee to affiliate

 

 

 
2,678

 
2,678

Depreciation and amortization
6,171

 
16

 

 

 
6,187

Impairment

 

 
28

 

 
28

Realized and unrealized loss (gain) on investments
32

 

 
(347
)
 

 
(315
)
Total operating costs
79,948

 
2,021

 
(309
)
 
4,352

 
86,012

Operating income (loss)
1,743

 
(2,021
)
 
309

 
(4,352
)
 
(4,321
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
42

 

 
8,085

 
291

 
8,418

Interest expense, net (C)
(3,830
)
 

 
(482
)
 
(458
)
 
(4,770
)
Other (loss) income, net
(211
)
 

 
413

 

 
202

Total other income (expenses)
(3,999
)
 

 
8,016

 
(167
)
 
3,850

Income tax benefit (D)

 

 

 
(2
)
 
(2
)
Net (loss) income
(2,256
)
 
(2,021
)
 
8,325

 
(4,517
)
 
(469
)
Preferred dividends

 

 

 
(1,395
)
 
(1,395
)
(Loss) Income applicable to common stockholders
$
(2,256
)
 
$
(2,021
)
 
$
8,325

 
$
(5,912
)
 
$
(1,864
)
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments (E)
 
Corporate
 
Total
September 30, 2017
 
 
 
 
 
 
 
 
 
Total assets
319,356

 
19,882

 
23,514

 
173,363

 
536,115

Total liabilities
278,352

 
5,384

 
170

 
55,901

 
339,807

Preferred stock

 

 

 
61,583

 
61,583

Equity attributable to common stockholders
$
41,004

 
$
14,498

 
$
23,344

 
$
55,879

 
$
134,725

 
 
 
 
 
 
 
 
 
 
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017
$
15,178

 
$
8,647

 
$

 
$

 
$
23,825

Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
174,718

 
$

 
$

 
$

 
$
174,718

Sales of food and beverages
55,086

 

 

 

 
55,086

Total revenues
229,804

 

 

 

 
229,804

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
195,670

 

 

 

 
195,670

Cost of sales - food and beverages
17,139

 

 

 

 
17,139

General and administrative expense
2,207

 
5

 
70

 
5,602

 
7,884

General and administrative expense - acquisition and transaction expenses (B)
1,182

 
911

 

 
371

 
2,464

Management fee to affiliate

 

 

 
8,027

 
8,027

Depreciation and amortization
19,250

 

 

 

 
19,250

Impairment

 

 
3,564

 

 
3,564

Realized and unrealized loss (gain) on investments
35

 

 
(3,171
)
 

 
(3,136
)
Total operating costs
235,483

 
916

 
463

 
14,000

 
250,862

Operating loss
(5,679
)
 
(916
)
 
(463
)
 
(14,000
)
 
(21,058
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
94

 

 
73,661

 
15

 
73,770

Interest expense, net (C)
(8,703
)
 

 
(28,482
)
 
(1,904
)
 
(39,089
)
Gain on deconsolidation

 

 
82,130

 

 
82,130

Other (loss) income, net
(272
)
 

 
1,611

 

 
1,339

Total other income (expenses)
(8,881
)
 

 
128,920

 
(1,889
)
 
118,150

Income tax expense
144

 

 

 

 
144

Net (loss) income
(14,704
)
 
(916
)
 
128,457

 
(15,889
)
 
96,948

Preferred dividends

 

 

 
(4,185
)
 
(4,185
)
Net income attributable to noncontrolling interest
(165
)
 

 

 

 
(165
)
(Loss) income applicable to common stockholders
$
(14,869
)
 
$
(916
)
 
$
128,457

 
$
(20,074
)
 
$
92,598




Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
63,249

 
$

 
$

 
$

 
$
63,249

Sales of food and beverages
19,913

 

 

 

 
19,913

Total revenues
83,162

 

 

 

 
83,162

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
69,251

 

 

 

 
69,251

Cost of sales - food and beverages
6,026

 

 

 

 
6,026

General and administrative expense
662

 
3

 
32

 
1,936

 
2,633

General and administrative expense - acquisition and transaction expenses (B)
173

 
682

 

 
200

 
1,055

Management fee to affiliate

 

 

 
2,676

 
2,676

Depreciation and amortization
6,735

 

 

 

 
6,735

Impairment

 

 
611

 

 
611

Realized and unrealized loss (gain) on investments
15

 

 
(6,620
)
 

 
(6,605
)
Total operating costs
82,862

 
685

 
(5,977
)
 
4,812

 
82,382

Operating income (loss)
300

 
(685
)
 
5,977

 
(4,812
)
 
780

Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
17

 

 
32,286

 
7

 
32,310

Interest expense, net (C)
(3,340
)
 

 
(9,405
)
 
(393
)
 
(13,138
)
Other income, net

 

 
505

 

 
505

Total other income (expenses)
(3,323
)
 

 
23,386

 
(386
)
 
19,677

Income tax benefit
(38
)
 

 

 

 
(38
)
Net (loss) income
(2,985
)
 
(685
)
 
29,363

 
(5,198
)
 
20,495

Preferred dividends

 

 

 
(1,395
)
 
(1,395
)
Net income attributable to noncontrolling interest
(177
)
 

 

 

 
(177
)
(Loss) income applicable to common stockholders
$
(3,162
)
 
$
(685
)
 
$
29,363

 
$
(6,593
)
 
$
18,923

(A)
Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.7 million and $2.3 million for the three and nine months ended September 30, 2017, respectively, and $0.9 million and $2.9 million for the three and nine months ended September 30, 2016, respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $3.1 million for the three and nine months ended September 30, 2017, respectively, and $1.1 million and $3.4 million for the three and nine months ended September 30, 2016, respectively. In addition, straight-line rent associated with our Entertainment Golf venues is included in operating expenses.
(B)
Acquisition and transaction expenses include costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expenses also include personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues.
(C)
Interest expense, net includes the accretion of membership deposit liabilities in the amount of $1.6 million and $4.8 million for the three and nine months ended September 30, 2017, respectively, and $1.4 million and $4.3 million for the three and nine months ended September 30, 2016, respectively. Interest expense is net of $0.1 million related to capitalized interest for Entertainment Golf for both the three and nine months ended September 30, 2017.
(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)
Total assets in the Debt Investments segment includes an equity method investment in the amount of $20.6 million recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information.