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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Golf |
|
Entertainment Golf |
|
Debt Investments |
|
Corporate |
|
Total |
Year Ended December 31, 2017 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Golf course operations |
$ |
221,737 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
221,737 |
|
Sales of food and beverages |
70,857 |
|
|
— |
|
|
— |
|
|
— |
|
|
70,857 |
|
Total revenues |
292,594 |
|
|
— |
|
|
— |
|
|
— |
|
|
292,594 |
|
Operating costs |
|
|
|
|
|
|
|
|
— |
|
Operating expenses (A) |
247,585 |
|
|
320 |
|
|
— |
|
|
— |
|
|
247,905 |
|
Cost of sales - food and beverages |
20,959 |
|
|
— |
|
|
— |
|
|
— |
|
|
20,959 |
|
General and administrative expense |
3,086 |
|
|
347 |
|
|
20 |
|
|
4,434 |
|
|
7,887 |
|
General and administrative expense - acquisition and transaction expenses (B) |
677 |
|
|
7,139 |
|
|
— |
|
|
921 |
|
|
8,737 |
|
Management fee and termination payment to affiliate |
— |
|
|
— |
|
|
— |
|
|
21,410 |
|
|
21,410 |
|
Depreciation and amortization |
24,260 |
|
|
44 |
|
|
— |
|
|
— |
|
|
24,304 |
|
Impairment |
— |
|
|
— |
|
|
60 |
|
|
— |
|
|
60 |
|
Realized and unrealized loss on investments |
199 |
|
|
— |
|
|
6,044 |
|
|
— |
|
|
6,243 |
|
Total operating costs |
296,766 |
|
|
7,850 |
|
|
6,124 |
|
|
26,765 |
|
|
337,505 |
|
Operating loss |
(4,172 |
) |
|
(7,850 |
) |
|
(6,124 |
) |
|
(26,765 |
) |
|
(44,911 |
) |
Other income (expenses) |
|
|
|
|
|
|
|
|
— |
|
Interest and investment income |
159 |
|
|
— |
|
|
22,190 |
|
|
813 |
|
|
23,162 |
|
Interest expense, net (C) |
(15,277 |
) |
|
— |
|
|
(2,532 |
) |
|
(1,772 |
) |
|
(19,581 |
) |
Loss on extinguishment of debt |
(294 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(294 |
) |
Other (loss) income, net |
(1,468 |
) |
|
— |
|
|
1,856 |
|
|
— |
|
|
388 |
|
Total other income (expenses) |
(16,880 |
) |
|
— |
|
|
21,514 |
|
|
(959 |
) |
|
3,675 |
|
Income tax expense (D) |
— |
|
|
— |
|
|
— |
|
|
965 |
|
|
965 |
|
Net (loss) income |
(21,052 |
) |
|
(7,850 |
) |
|
15,390 |
|
|
(28,689 |
) |
|
(42,201 |
) |
Preferred dividends |
— |
|
|
— |
|
|
— |
|
|
(5,580 |
) |
|
(5,580 |
) |
(Loss) income applicable to common stockholders |
$ |
(21,052 |
) |
|
$ |
(7,850 |
) |
|
$ |
15,390 |
|
|
$ |
(34,269 |
) |
|
$ |
(47,781 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Golf |
|
Entertainment Golf |
|
Debt Investments (E) |
|
Corporate |
|
Total |
December 31, 2017 |
|
|
|
|
|
|
|
|
|
Total assets |
334,925 |
|
|
41,046 |
|
|
23,991 |
|
|
136,686 |
|
|
536,648 |
|
Total liabilities |
300,176 |
|
|
9,328 |
|
|
165 |
|
|
55,928 |
|
|
365,597 |
|
Preferred stock |
— |
|
|
— |
|
|
— |
|
|
61,583 |
|
|
61,583 |
|
Equity attributable to common stockholders |
$ |
34,749 |
|
|
$ |
31,718 |
|
|
$ |
23,826 |
|
|
$ |
19,175 |
|
|
$ |
109,468 |
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment (including capital leases) during the year ended December 31, 2017 |
$ |
16,284 |
|
|
$ |
27,295 |
|
|
$ |
— |
|
|
$ |
67 |
|
|
$ |
43,646 |
|
Summary segment financial data (continued).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Golf |
|
Entertainment Golf |
|
Debt Investments |
|
Corporate |
|
Total |
Year Ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Golf course operations |
$ |
226,255 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
226,255 |
|
Sales of food and beverages |
72,625 |
|
|
— |
|
|
— |
|
|
— |
|
|
72,625 |
|
Total revenues |
298,880 |
|
|
— |
|
|
— |
|
|
— |
|
|
298,880 |
|
Operating costs |
|
|
|
|
|
|
|
|
|
Operating expenses (A) |
254,353 |
|
|
— |
|
|
— |
|
|
— |
|
|
254,353 |
|
Cost of sales - food and beverages |
21,593 |
|
|
— |
|
|
— |
|
|
— |
|
|
21,593 |
|
General and administrative expense |
2,708 |
|
|
12 |
|
|
93 |
|
|
6,675 |
|
|
9,488 |
|
General and administrative expense - acquisition and transaction expenses (B) |
1,594 |
|
|
1,555 |
|
|
— |
|
|
1,205 |
|
|
4,354 |
|
Management fee and termination payment to affiliate |
— |
|
|
— |
|
|
— |
|
|
10,704 |
|
|
10,704 |
|
Depreciation and amortization |
26,496 |
|
|
— |
|
|
— |
|
|
— |
|
|
26,496 |
|
Impairment |
6,232 |
|
|
— |
|
|
4,149 |
|
|
— |
|
|
10,381 |
|
Realized and unrealized (gain) loss on investments |
(294 |
) |
|
— |
|
|
979 |
|
|
— |
|
|
685 |
|
Total operating costs |
312,682 |
|
|
1,567 |
|
|
5,221 |
|
|
18,584 |
|
|
338,054 |
|
Operating loss |
(13,802 |
) |
|
(1,567 |
) |
|
(5,221 |
) |
|
(18,584 |
) |
|
(39,174 |
) |
Other income (expenses) |
|
|
|
|
|
|
|
|
|
Interest and investment income |
134 |
|
|
— |
|
|
91,107 |
|
|
50 |
|
|
91,291 |
|
Interest expense, net (C) |
(12,470 |
) |
|
— |
|
|
(38,112 |
) |
|
(2,286 |
) |
|
(52,868 |
) |
Loss on extinguishment of debt |
(780 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(780 |
) |
Gain on deconsolidation |
— |
|
|
— |
|
|
82,130 |
|
|
— |
|
|
82,130 |
|
Other loss, net |
(2,379 |
) |
|
— |
|
|
(695 |
) |
|
— |
|
|
(3,074 |
) |
Total other income (expenses) |
(15,495 |
) |
|
— |
|
|
134,430 |
|
|
(2,236 |
) |
|
116,699 |
|
Income tax expense |
188 |
|
|
1 |
|
|
— |
|
|
— |
|
|
189 |
|
Net (loss) income |
(29,485 |
) |
|
(1,568 |
) |
|
129,209 |
|
|
(20,820 |
) |
|
77,336 |
|
Preferred dividends |
— |
|
|
— |
|
|
— |
|
|
(5,580 |
) |
|
(5,580 |
) |
Net income attributable to noncontrolling interest |
(257 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(257 |
) |
(Loss) income applicable to common stockholders |
$ |
(29,742 |
) |
|
$ |
(1,568 |
) |
|
$ |
129,209 |
|
|
$ |
(26,400 |
) |
|
$ |
71,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Golf |
|
Entertainment Golf |
|
Debt Investments (E) |
|
Corporate |
|
Total |
December 31, 2016 |
|
|
|
|
|
|
|
|
|
Total assets |
341,035 |
|
|
1,425 |
|
|
707,533 |
|
|
121,965 |
|
|
1,171,958 |
|
Total liabilities |
286,002 |
|
|
1,116 |
|
|
603,257 |
|
|
63,516 |
|
|
953,891 |
|
Preferred stock |
— |
|
|
— |
|
|
— |
|
|
61,583 |
|
|
61,583 |
|
Equity (deficit) attributable to common stockholders |
$ |
55,033 |
|
|
$ |
309 |
|
|
$ |
104,276 |
|
|
$ |
(3,134 |
) |
|
$ |
156,484 |
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment (including capital leases) during the year ended December 31, 2016 |
$ |
11,912 |
|
|
$ |
659 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,571 |
|
Summary segment financial data (continued).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Golf |
|
Entertainment Golf |
|
Debt Investments |
|
Corporate |
|
Discontinued Operations |
|
Eliminations (F) |
|
Total |
Year Ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Golf course operations |
$ |
224,419 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
224,419 |
|
Sales of food and beverages |
71,437 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
71,437 |
|
Total revenues |
295,856 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
295,856 |
|
Operating costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (A) |
254,553 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
254,553 |
|
Cost of sales - food and beverages |
22,549 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
22,549 |
|
General and administrative expense |
2,983 |
|
|
— |
|
|
291 |
|
|
7,640 |
|
|
— |
|
|
— |
|
|
10,914 |
|
General and administrative expense - acquisition and transaction expenses (B) |
1,364 |
|
|
— |
|
|
60 |
|
|
(301 |
) |
|
— |
|
|
— |
|
|
1,123 |
|
Management fee and termination payment to affiliate |
— |
|
|
— |
|
|
— |
|
|
10,692 |
|
|
— |
|
|
— |
|
|
10,692 |
|
Depreciation and amortization |
28,682 |
|
|
— |
|
|
— |
|
|
(48 |
) |
|
— |
|
|
— |
|
|
28,634 |
|
Impairment |
— |
|
|
— |
|
|
11,896 |
|
|
— |
|
|
— |
|
|
— |
|
|
11,896 |
|
Realized and unrealized loss (gain) on investments |
9 |
|
|
— |
|
|
(22,273 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(22,264 |
) |
Total operating costs |
310,140 |
|
|
— |
|
|
(10,026 |
) |
|
17,983 |
|
|
— |
|
|
— |
|
|
318,097 |
|
Operating (loss) income |
(14,284 |
) |
|
— |
|
|
10,026 |
|
|
(17,983 |
) |
|
— |
|
|
— |
|
|
(22,241 |
) |
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment income |
152 |
|
|
— |
|
|
98,721 |
|
|
23 |
|
|
— |
|
|
(3,005 |
) |
|
95,891 |
|
Interest expense, net (C) |
(16,520 |
) |
|
— |
|
|
(44,831 |
) |
|
(3,783 |
) |
|
— |
|
|
3,005 |
|
|
(62,129 |
) |
Gain on extinguishment of debt |
14,818 |
|
|
— |
|
|
488 |
|
|
— |
|
|
— |
|
|
— |
|
|
15,306 |
|
Other (loss) income, net |
(1,629 |
) |
|
— |
|
|
(3,999 |
) |
|
54 |
|
|
— |
|
|
— |
|
|
(5,574 |
) |
Inter-segment elimination (F) |
3,005 |
|
|
— |
|
|
(3,005 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total other income (expenses) |
(174 |
) |
|
— |
|
|
47,374 |
|
|
(3,706 |
) |
|
— |
|
|
— |
|
|
43,494 |
|
Income tax expense |
345 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
345 |
|
(Loss) income from continuing operations |
(14,803 |
) |
|
— |
|
|
57,400 |
|
|
(21,689 |
) |
|
— |
|
|
— |
|
|
20,908 |
|
Income from discontinued operations, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
646 |
|
|
— |
|
|
646 |
|
Net (loss) income |
(14,803 |
) |
|
— |
|
|
57,400 |
|
|
(21,689 |
) |
|
646 |
|
|
— |
|
|
21,554 |
|
Preferred dividends |
— |
|
|
— |
|
|
— |
|
|
(5,580 |
) |
|
— |
|
|
— |
|
|
(5,580 |
) |
Net loss attributable to noncontrolling interest |
293 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
293 |
|
(Loss) income applicable to common stockholders |
$ |
(14,510 |
) |
|
$ |
— |
|
|
$ |
57,400 |
|
|
$ |
(27,269 |
) |
|
$ |
646 |
|
|
$ |
— |
|
|
$ |
16,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment (including capital leases) during the year ended December 31, 2015 |
$ |
7,637 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,637 |
|
|
|
(A) |
Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $3.0 million, $3.8 million and $4.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $4.1 million, $4.5 million and $4.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. In addition, straight-line rent associated with our Entertainment Golf venues is included in operating expenses.
|
|
|
(B) |
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 expenses also include personnel and other Entertainment Golf development and business costs which do not qualify for capitalization. |
|
|
(C) |
Interest expense, net includes the accretion of membership deposit liabilities in the amount of $6.5 million, $5.8 million and $5.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Interest expense is net of $0.2 million related to capitalized interest for Entertainment Golf for the year ended December 31, 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 $21.1 million and $19.3 million as of December 31, 2017 and 2016, respectively, recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information.
|
|
|
(F) |
Represents interest paid by the Traditional Golf segment to the Debt Investments segment related to the Traditional Golf debt which was refinanced by the Company in June 2016 (see Note 7). |
|