Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING (Tables)

v3.8.0.1
SEGMENT REPORTING (Tables)
12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
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).