Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING (Tables)

v3.10.0.1
SEGMENT REPORTING (Tables)
9 Months Ended
Sep. 30, 2018
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
 
Corporate
 
Total
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Golf operations
 
$
190,067

 
$
1,565

 
$

 
$
191,632

Sales of food and beverages
 
51,669

 
1,782

 

 
53,451

Total revenues
 
241,736

 
3,347

 

 
245,083

Operating costs
 
 
 
 
 
 
 
 
Operating expenses (A)
 
191,152

 
3,599

 

 
194,751

Cost of sales - food and beverages
 
14,981

 
432

 

 
15,413

General and administrative expense
 
12,781

 
4,515

 
9,448

 
26,744

General and administrative expense - acquisition and transaction expenses (B)
 
706

 
2,024

 
137

 
2,867

Depreciation and amortization
 
13,198

 
1,148

 
12

 
14,358

Pre-opening costs (C)
 

 
2,048

 

 
2,048

Impairment
 
5,498

 

 
147

 
5,645

Realized and unrealized (gain) on investments
 
(283
)
 

 

 
(283
)
Total operating costs
 
238,033

 
13,766

 
9,744

 
261,543

Operating income (loss)
 
3,703

 
(10,419
)
 
(9,744
)
 
(16,460
)
Other income (expenses)
 
 
 
 
 
 
 
 
Interest and investment income
 
144

 
196

 
1,042

 
1,382

Interest expense (D)
 
(12,149
)
 

 
(1,661
)
 
(13,810
)
Capitalized interest (D)
 
580

 

 
290

 
870

Other (loss) income, net
 
(8,715
)
 

 
1,558

 
(7,157
)
Total other income (expenses)
 
(20,140
)
 
196

 
1,229

 
(18,715
)
Income tax expense
 

 

 

 

Net loss
 
(16,437
)
 
(10,223
)
 
(8,515
)
 
(35,175
)
Preferred dividends
 

 

 
(4,185
)
 
(4,185
)
Loss applicable to common stockholders
 
$
(16,437
)
 
$
(10,223
)
 
$
(12,700
)
 
$
(39,360
)


Summary segment financial data (continued).
 
 
Traditional Golf
 
Entertainment Golf
 
Corporate
 
Total
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Golf operations
 
$
68,218

 
$
710

 
$

 
$
68,928

Sales of food and beverages
 
17,661

 
830

 

 
18,491

Total revenues
 
85,879

 
1,540

 

 
87,419

Operating costs
 
 
 
 
 
 
 
 
Operating expenses (A)
 
68,565

 
1,765

 

 
70,330

Cost of sales - food and beverages
 
4,976

 
204

 

 
5,180

General and administrative expense
 
4,313

 
1,878

 
3,189

 
9,380

General and administrative expense - acquisition and transaction expenses (B)
 
199

 
570

 

 
769

Depreciation and amortization
 
3,877

 
614

 
4

 
4,495

Pre-opening costs (C)
 

 
245

 

 
245

Impairment
 
4,172

 

 

 
4,172

Realized and unrealized loss on investments
 
48

 

 

 
48

Total operating costs
 
86,150

 
5,276

 
3,193

 
94,619

Operating loss
 
(271
)
 
(3,736
)
 
(3,193
)
 
(7,200
)
Other income (expenses)
 
 
 
 
 
 
 
 
Interest and investment income
 
48

 
85

 
334

 
467

Interest expense (D)
 
(4,050
)
 

 
(597
)
 
(4,647
)
Capitalized interest (D)
 
238

 

 
119

 
357

Other (loss) income, net
 
(3,548
)
 

 
496

 
(3,052
)
Total other income (expenses)
 
(7,312
)
 
85

 
352

 
(6,875
)
Income tax expense
 

 

 

 

Net loss
 
(7,583
)
 
(3,651
)
 
(2,841
)
 
(14,075
)
Preferred dividends
 

 

 
(1,395
)
 
(1,395
)
Loss applicable to common stockholders
 
$
(7,583
)
 
$
(3,651
)
 
$
(4,236
)
 
$
(15,470
)

 
 
Traditional Golf
 
Entertainment Golf
 
Corporate (E)
 
Total
September 30, 2018
 
 
 
 
 
 
 
 
Total assets
 
300,404

 
99,470

 
86,891

 
486,765

Total liabilities
 
279,775

 
10,097

 
57,925

 
347,797

Preferred stock
 

 

 
61,583

 
61,583

Equity attributable to common stockholders
 
$
20,629

 
$
89,373

 
$
(32,617
)
 
$
77,385

 
 
 
 
 
 
 
 
 
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2018
 
$
11,651

 
$
25,689

 
$

 
$
37,340

Summary segment financial data (continued).
 
 
Traditional Golf
 
Entertainment Golf
 
Corporate (F)
 
Total
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Golf 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)
 
175,920

 

 

 
175,920

Cost of sales - food and beverages
 
15,762

 

 

 
15,762

General and administrative expense
 
12,418

 
53

 
5,412

 
17,883

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

Pre-opening costs (C)
 

 
191

 

 
191

Impairment
 

 

 
60

 
60

Realized and unrealized loss on investments
 
317

 

 
6,044

 
6,361

Total operating costs
 
222,911

 
4,382

 
19,719

 
247,012

Operating loss
 
(719
)
 
(4,382
)
 
(19,719
)
 
(24,820
)
Other income (expenses)
 
 
 
 
 
 
 
 
Interest and investment income
 
114

 

 
22,587

 
22,701

Interest expense (D)
 
(11,575
)
 

 
(3,835
)
 
(15,410
)
Capitalized interest (D)
 
75

 

 

 
75

Other (loss) income, net
 
(1,044
)
 

 
1,416

 
372

Total other income (expenses)
 
(12,430
)
 

 
20,168

 
7,738

Income tax expense
 

 

 
1,047

 
1,047

Net loss
 
(13,149
)
 
(4,382
)
 
(598
)
 
(18,129
)
Preferred dividends
 

 

 
(4,185
)
 
(4,185
)
Loss applicable to common stockholders
 
$
(13,149
)
 
$
(4,382
)
 
$
(4,783
)
 
$
(22,314
)

Summary segment financial data (continued).

 
 
Traditional Golf
 
Entertainment Golf
 
Corporate (F)
 
Total
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Golf 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)
 
63,384

 

 

 
63,384

Cost of sales - food and beverages
 
5,721

 

 

 
5,721

General and administrative expense
 
4,119

 
10

 
2,128

 
6,257

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

Pre-opening costs (C)
 

 
141

 

 
141

Impairment
 

 

 
28

 
28

Realized and unrealized loss (gain) on investments
 
32

 

 
(347
)
 
(315
)
Total operating costs
 
79,499

 
1,971

 
4,542

 
86,012

Operating income (loss)
 
2,192

 
(1,971
)
 
(4,542
)
 
(4,321
)
Other income (expenses)
 
 
 
 
 
 
 
 
Interest and investment income
 
42

 

 
8,376

 
8,418

Interest expense (D)
 
(3,905
)
 

 
(940
)
 
(4,845
)
Capitalized interest (D)
 
75

 

 

 
75

Other (loss) income, net
 
(211
)
 

 
413

 
202

Total other income (expenses)
 
(3,999
)
 

 
7,849

 
3,850

Income tax benefit
 

 

 
(2
)
 
(2
)
Net loss (income)
 
(1,807
)
 
(1,971
)
 
3,309

 
(469
)
Preferred dividends
 

 

 
(1,395
)
 
(1,395
)
(Loss) Income applicable to common stockholders
 
$
(1,807
)
 
$
(1,971
)
 
$
1,914

 
$
(1,864
)
(A)
Operating expenses include rental expenses recorded under operating leases for carts and equipment in the amount of $0.5 million and $1.6 million for the three and nine months ended September 30, 2018, respectively, and $0.7 million and $2.3 million for the three and nine months ended September 30, 2017, respectively. Operating expenses also include 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, 2018, respectively, and $1.0 million and $3.1 million for the three and nine months ended September 30, 2017, respectively.
(B)
Acquisition and transaction expenses include costs related to completed and potential acquisitions and transactions, which may include advisory, legal, accounting and other professional or consulting fees.
(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.
(D)
Interest expense includes the accretion of membership deposit liabilities in the amount of $1.7 million and $5.1 million for the three and nine months ended September 30, 2018, respectively, and $1.6 million and $4.8 million for the three and nine months ended September 30, 2017, respectively. Interest expense and capitalized interest total to interest expense, net on the Consolidated Statements of Operations.
(E)
Total assets in the corporate segment include an equity method investment in the amount of $22.3 million as of September 30, 2018 recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information.
(F)
The Debt Investments segment and corporate segment as reported previously are combined to conform to the current period's presentation.