| 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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Entertainment Golf |
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Traditional Golf |
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Corporate |
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Total |
Three Months Ended March 31, 2020 |
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Revenues |
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Golf operations |
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$ |
3,910 |
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$ |
44,715 |
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$ |
— |
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$ |
48,625 |
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Sales of food and beverages |
|
6,207 |
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|
6,303 |
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|
— |
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|
12,510 |
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Total revenues |
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10,117 |
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|
51,018 |
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|
— |
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|
61,135 |
|
Operating costs |
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Operating expenses |
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8,172 |
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|
46,195 |
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— |
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|
54,367 |
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Cost of sales - food and beverages |
|
1,610 |
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|
2,045 |
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— |
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|
3,655 |
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General and administrative expense (A) |
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3,169 |
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|
3,093 |
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|
2,378 |
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|
8,640 |
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General and administrative expense - acquisition and transaction expenses (B) |
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34 |
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|
122 |
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|
1,022 |
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|
1,178 |
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Depreciation and amortization |
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3,020 |
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|
3,703 |
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71 |
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6,794 |
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Pre-opening costs (C) |
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552 |
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— |
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— |
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|
552 |
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Impairment and other losses |
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— |
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|
792 |
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— |
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|
792 |
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Total operating costs |
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16,557 |
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|
55,950 |
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|
3,471 |
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|
75,978 |
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Operating loss |
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(6,440 |
) |
|
(4,932 |
) |
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(3,471 |
) |
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(14,843 |
) |
Other income (expenses) |
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Interest and investment income |
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1 |
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15 |
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|
114 |
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|
130 |
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Interest expense (D) |
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(105 |
) |
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(2,147 |
) |
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(526 |
) |
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(2,778 |
) |
Capitalized interest (D) |
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— |
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|
9 |
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|
24 |
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|
33 |
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Other (loss) income, net |
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— |
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(46 |
) |
|
413 |
|
|
367 |
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Total other income (expenses) |
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(104 |
) |
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(2,169 |
) |
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25 |
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(2,248 |
) |
Income tax expense |
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— |
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— |
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|
271 |
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|
271 |
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Net (loss) income |
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(6,544 |
) |
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(7,101 |
) |
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(3,717 |
) |
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(17,362 |
) |
Preferred dividends |
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— |
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— |
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|
(1,395 |
) |
|
(1,395 |
) |
(Loss) income applicable to common stockholders |
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$ |
(6,544 |
) |
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$ |
(7,101 |
) |
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$ |
(5,112 |
) |
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$ |
(18,757 |
) |
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Entertainment Golf |
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Traditional Golf |
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Corporate (E) |
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Total |
March 31, 2020 |
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Total assets |
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164,212 |
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299,573 |
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37,638 |
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|
501,423 |
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Total liabilities |
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41,182 |
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349,105 |
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|
63,225 |
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|
453,512 |
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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 |
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$ |
123,030 |
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|
$ |
(49,532 |
) |
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$ |
(87,170 |
) |
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$ |
(13,672 |
) |
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Additions to property and equipment (including finance leases) during the three months ended March 31, 2020 |
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$ |
4,240 |
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$ |
1,894 |
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$ |
403 |
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$ |
6,537 |
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Summary segment financial data (continued).
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Entertainment Golf |
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Traditional Golf |
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Corporate |
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Total |
Three Months Ended March 31, 2019 |
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Revenues |
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Golf operations |
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$ |
681 |
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$ |
44,025 |
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$ |
— |
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$ |
44,706 |
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Sales of food and beverages |
|
1,040 |
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|
8,206 |
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— |
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|
9,246 |
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Total revenues |
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1,721 |
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|
52,231 |
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|
— |
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|
53,952 |
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Operating costs |
|
|
|
|
|
|
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Operating expenses |
|
1,747 |
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|
45,976 |
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|
— |
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|
47,723 |
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Cost of sales - food and beverages |
|
251 |
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|
2,447 |
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|
— |
|
|
2,698 |
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General and administrative expense (A) |
|
3,379 |
|
|
3,897 |
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|
3,944 |
|
|
11,220 |
|
General and administrative expense - acquisition and transaction expenses (B) |
|
157 |
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|
153 |
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|
89 |
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|
399 |
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Depreciation and amortization |
|
709 |
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|
4,217 |
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(2 |
) |
|
4,924 |
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Pre-opening costs (C) |
|
1,179 |
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|
— |
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— |
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|
1,179 |
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Impairment and other losses |
|
— |
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|
4,088 |
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— |
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|
4,088 |
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Total operating costs |
|
7,422 |
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|
60,778 |
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|
4,031 |
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|
72,231 |
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Operating loss |
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(5,701 |
) |
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(8,547 |
) |
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(4,031 |
) |
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(18,279 |
) |
Other income (expenses) |
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Interest and investment income |
|
132 |
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|
38 |
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|
174 |
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|
344 |
|
Interest expense (D) |
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(3 |
) |
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(2,190 |
) |
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(626 |
) |
|
(2,819 |
) |
Capitalized interest (D) |
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— |
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|
188 |
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|
478 |
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|
666 |
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Other (loss) income, net |
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(7 |
) |
|
5,030 |
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|
465 |
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|
5,488 |
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Total other income (expenses) |
|
122 |
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|
3,066 |
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|
491 |
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|
3,679 |
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Income tax expense |
|
— |
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— |
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— |
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— |
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Net loss |
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(5,579 |
) |
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(5,481 |
) |
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(3,540 |
) |
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(14,600 |
) |
Preferred dividends |
|
— |
|
|
— |
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|
(1,395 |
) |
|
(1,395 |
) |
Loss applicable to common stockholders |
|
$ |
(5,579 |
) |
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$ |
(5,481 |
) |
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$ |
(4,935 |
) |
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$ |
(15,995 |
) |
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(A) |
General and administrative expenses include severance expense in the amount of $0.7 million for the three months ended March 31, 2020, and $0.4 million for the three months ended March 31, 2019.
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(B) |
Acquisition and transaction expenses include costs related to completed and potential acquisitions and transactions and strategic initiatives which may include advisory, legal, accounting 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, lease expense, employee payroll, travel and related expenses, training costs, food, beverage and other operating expenses incurred prior to opening an Entertainment Golf venue. |
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(D) |
Interest expense includes the accretion of membership deposit liabilities in the amount of $1.9 million for the three months ended March 31, 2020, and $1.9 million for the three months ended March 31, 2019. Interest expense and capitalized interest are combined in interest expense, net on the Consolidated Statements of Operations.
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(E) |
Total assets in the corporate segment include an equity method investment in the amount of $24.4 million as of March 31, 2020 recorded in other investments on the Consolidated Balance Sheets.
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