| 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:
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Traditional Golf |
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Entertainment Golf |
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Debt Investments |
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Corporate |
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Total |
Three Months Ended March 31, 2018 |
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Revenues |
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Golf course operations |
$ |
53,554 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
53,554 |
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Sales of food and beverages |
13,106 |
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— |
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— |
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— |
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13,106 |
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Total revenues |
66,660 |
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— |
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— |
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— |
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66,660 |
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Operating costs |
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Operating expenses (A) |
57,379 |
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— |
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— |
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— |
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57,379 |
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Cost of sales - food and beverages |
4,040 |
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— |
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— |
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— |
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|
4,040 |
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General and administrative expense |
4,153 |
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|
1,102 |
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6 |
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|
2,074 |
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|
7,335 |
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General and administrative expense - acquisition and transaction expenses (B) |
307 |
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|
1,253 |
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— |
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|
297 |
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|
1,857 |
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Depreciation and amortization |
5,513 |
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30 |
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— |
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5 |
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|
5,548 |
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Pre-opening costs (C) |
— |
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|
1,556 |
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— |
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— |
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|
1,556 |
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Impairment |
1,326 |
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— |
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|
147 |
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— |
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|
1,473 |
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Realized and unrealized loss on investments |
(242 |
) |
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— |
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— |
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— |
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(242 |
) |
Total operating costs |
72,476 |
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|
3,941 |
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|
153 |
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|
2,376 |
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|
78,946 |
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Operating loss |
(5,816 |
) |
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(3,941 |
) |
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(153 |
) |
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(2,376 |
) |
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(12,286 |
) |
Other income (expenses) |
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Interest and investment income |
51 |
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28 |
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|
59 |
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|
308 |
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|
446 |
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Interest expense, net (D) |
(3,555 |
) |
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— |
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— |
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(494 |
) |
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(4,049 |
) |
Other (loss) income, net |
(938 |
) |
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— |
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|
532 |
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— |
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|
(406 |
) |
Total other income (expenses) |
(4,442 |
) |
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28 |
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|
591 |
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(186 |
) |
|
(4,009 |
) |
Income tax expense |
— |
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— |
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— |
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— |
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— |
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Net (loss) income |
(10,258 |
) |
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(3,913 |
) |
|
438 |
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(2,562 |
) |
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(16,295 |
) |
Preferred dividends |
— |
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— |
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— |
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(1,395 |
) |
|
(1,395 |
) |
(Loss) income applicable to common stockholders |
$ |
(10,258 |
) |
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$ |
(3,913 |
) |
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$ |
438 |
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$ |
(3,957 |
) |
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$ |
(17,690 |
) |
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Traditional Golf |
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Entertainment Golf |
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Debt Investments (E) |
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Corporate |
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Total |
March 31, 2018 |
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Total assets |
320,491 |
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81,575 |
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24,306 |
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87,604 |
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513,976 |
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Total liabilities |
290,553 |
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|
9,160 |
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79 |
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55,703 |
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|
355,495 |
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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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Equity attributable to common stockholders |
$ |
29,938 |
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$ |
72,415 |
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$ |
24,227 |
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$ |
(29,682 |
) |
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$ |
96,898 |
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Additions to property and equipment (including capital leases) during the three months ended March 31, 2018 |
$ |
4,040 |
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$ |
9,498 |
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$ |
— |
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$ |
— |
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$ |
13,538 |
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Summary segment financial data (continued).
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Traditional Golf |
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Entertainment Golf |
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Debt Investments |
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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 |
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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 (A) |
50,509 |
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— |
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— |
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— |
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50,509 |
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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 |
4,222 |
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15 |
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1 |
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1,595 |
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|
5,833 |
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General and administrative expense - acquisition and transaction expenses (B) |
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 and 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 |
64,952 |
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|
1,276 |
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|
3,270 |
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4,389 |
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|
73,887 |
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Operating loss |
(5,811 |
) |
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(1,276 |
) |
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(3,270 |
) |
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(4,389 |
) |
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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, net (D) |
(3,817 |
) |
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— |
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(1,206 |
) |
|
(411 |
) |
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(5,434 |
) |
Other (loss) income, net |
(624 |
) |
|
— |
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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 |
— |
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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 |
(10,213 |
) |
|
(1,276 |
) |
|
3,827 |
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(5,292 |
) |
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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 |
$ |
(10,213 |
) |
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$ |
(1,276 |
) |
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$ |
3,827 |
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$ |
(6,687 |
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$ |
(14,349 |
) |
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(A) |
Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.6 million and $0.8 million for the three months ended March 31, 2018 and 2017, respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively.
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(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. |
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(C) |
Pre-opening costs are expensed as incurred and consist primarily of site-related marketing expenses, pre-opening rent, employee payroll, travel and related expenses, training costs, food, beverage and other restaurant operating expenses incurred prior to opening an Entertainment Golf venue. |
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(D) |
Interest expense, net includes the accretion of membership deposit liabilities in the amount of $1.7 million and $1.6 million for the three months ended March 31, 2018 and 2017, respectively. Interest expense is net of $0.4 million related to capitalized interest for Entertainment Golf for the three months ended March 31, 2018.
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(E) |
Total assets in the Debt Investments segment includes an equity method investment in the amount of $21.5 million as of March 31, 2018 recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information.
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