Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.20.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
 
The Company currently has three reportable segments: (i) Entertainment Golf venues, (ii) Traditional Golf properties and (iii) corporate. The chief operating decision maker (“CODM”) for each segment is our Chief Executive Officer and President, who reviews discrete financial information for each reportable segment to manage the Company, including resource allocation and performance assessment.

The Company opened its first Entertainment Golf venue in Orlando, Florida, in April 2018. During the second half of 2019, the Company opened three Generation 2.0 core Entertainment Golf venues in Raleigh, North Carolina; Richmond, Virginia; and West Palm Beach, Florida.

Additionally, the Company's Traditional Golf business is one of the largest operators of golf properties in the United States. As of June 30, 2020, the Company owned, leased or managed 60 Traditional Golf properties across nine states. 
The corporate segment consists primarily of investments in loans and securities, interest income on short-term investments, general and administrative expenses as a public company, interest expense on the junior subordinated notes payable (Note 8) and income tax expense (Note 14).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:
  Entertainment Golf Traditional Golf Corporate Total
Six Months Ended June 30, 2020        
Revenues
Golf operations $ 4,672    $ 73,628    $ —    $ 78,300   
Sales of food and beverages 7,235    7,700    —    14,935   
Total revenues 11,907    81,328    —    93,235   
Operating costs
Operating expenses 10,801    76,790    —    87,591   
Cost of sales - food and beverages 1,904    2,580    —    4,484   
General and administrative expense (A) 4,529    5,282    4,361    14,172   
General and administrative expense - acquisition and transaction expenses (B) 865    155    994    2,014   
Depreciation and amortization 6,021    7,311    144    13,476   
Pre-opening costs (C) 822    —    —    822   
(Gain) Loss on lease terminations and impairment —    (2,333)   —    (2,333)  
Realized and unrealized (gain) on investments —    —    —    —   
Total operating costs 24,942    89,785    5,499    120,226   
Operating loss (13,035)   (8,457)   (5,499)   (26,991)  
Other income (expenses)
Interest and investment income 1    38    226    265   
Interest expense (D) (207)   (4,245)   (962)   (5,414)  
Capitalized interest (D) —    22    56    78   
Other income (loss), net —    (166)   (23,889)   (24,055)  
Total other income (expenses) (206)   (4,351)   (24,569)   (29,126)  
Income tax expense —    —    771    771   
Net loss (13,241)   (12,808)   (30,839)   (56,888)  
Preferred dividends —    —    (2,790)   (2,790)  
Loss applicable to common stockholders $ (13,241)   $ (12,808)   $ (33,629)   $ (59,678)  
Entertainment Golf Traditional Golf Corporate Total
Three Months Ended June 30, 2020
Revenues
Golf operations $ 762    $ 28,913    $ —    $ 29,675   
Sales of food and beverages 1,028    1,397    —    2,425   
Total revenues 1,790    30,310    —    32,100   
Operating costs
Operating expenses 2,629    30,595    —    33,224   
Cost of sales - food and beverages 294    535    —    829   
General and administrative expense (A) 1,360    2,189    1,983    5,532   
General and administrative expense - acquisition and transaction expenses (B) 831    33    (28)   836   
Depreciation and amortization 3,001    3,608    73    6,682   
Pre-opening costs (C) 270    —    —    270   
(Gain) Loss on lease terminations and impairment —    (3,125)   —    (3,125)  
Realized and unrealized loss on investments —    —    —    —   
Total operating costs 8,385    33,835    2,028    44,248   
Operating loss (6,595)   (3,525)   (2,028)   (12,148)  
Other income (expenses)
Interest and investment income —    23    112    135   
Interest expense (D) (102)   (2,098)   (436)   (2,636)  
Capitalized interest (D) —    13    32    45   
Other income (loss), net —    (120)   (24,302)   (24,422)  
Total other income (expenses) (102)   (2,182)   (24,594)   (26,878)  
Income tax expense —    —    500    500   
Net loss (6,697)   (5,707)   (27,122)   (39,526)  
Preferred dividends —    —    (1,395)   (1,395)  
Loss applicable to common stockholders $ (6,697)   $ (5,707)   $ (28,517)   $ (40,921)  
Entertainment Golf Traditional Golf Corporate Total
June 30, 2020
Total assets 158,187    284,874    14,012    457,073   
Total liabilities 41,997    343,136    63,272    448,405   
Preferred stock —    —    61,583    61,583   
Equity $ 116,190    $ (58,262)   $ (110,843)   $ (52,915)  
Additions to property and equipment (including finance leases) during the six months ended June 30, 2020 $ 4,297    $ 2,982    $ 423    $ 7,702   
Summary segment financial data (continued).
  Entertainment Golf Traditional Golf Corporate Total
Six Months Ended June 30, 2019        
Revenues
Golf operations $ 1,288    $ 100,804    $ —    $ 102,092   
Sales of food and beverages 1,911    21,564    —    23,475   
Total revenues 3,199    122,368    —    125,567   
Operating costs
Operating expenses 3,605    102,838    —    106,443   
Cost of sales - food and beverages 501    6,100    —    6,601   
General and administrative expense (A) 6,930    8,212    8,510    23,652   
General and administrative expense - acquisition and transaction expenses (B) 963    333    278    1,574   
Depreciation and amortization 1,670    8,335    41    10,046   
Pre-opening costs (C) 2,879    —    —    2,879   
(Gain) Loss on lease terminations and impairment 118    4,088    —    4,206   
Realized and unrealized (gain) on investments —    —    —    —   
Total operating costs 16,666    129,906    8,829    155,401   
Operating (loss) income (13,467)   (7,538)   (8,829)   (29,834)  
Other income (expenses)
Interest and investment income 246    61    301    608   
Interest expense (D) (142)   (4,051)   (1,256)   (5,449)  
Capitalized interest (D) —    413    1,089    1,502   
Other income (loss), net (7)   4,688    933    5,614   
Total other income (expenses) 97    1,111    1,067    2,275   
Income tax expense —    —    —    —   
Net loss (13,370)   (6,427)   (7,762)   (27,559)  
Preferred dividends —    —    (2,790)   (2,790)  
Loss applicable to common stockholders $ (13,370)   $ (6,427)   $ (10,552)   $ (30,349)  
Entertainment Golf Traditional Golf Corporate Total
Three Months Ended June 30, 2019
Revenues
Golf operations $ 607    $ 56,779    $ —    $ 57,386   
Sales of food and beverages 872    13,357    —    14,229   
Total revenues 1,479    70,136    —    71,615   
Operating costs
Operating expenses 1,857    56,863    —    58,720   
Cost of sales - food and beverages 251    3,653    —    3,904   
General and administrative expense (A) 3,551    4,316    4,565    12,432   
General and administrative expense - acquisition and transaction expenses (B) 806    179    190    1,175   
Depreciation and amortization 961    4,118    43    5,122   
Pre-opening costs (C) 1,700    —    —    1,700   
(Gain) Loss on lease terminations and impairment 118    —    —    118   
Total operating costs 9,244    69,129    4,798    83,171   
Operating loss (7,765)   1,007    (4,798)   (11,556)  
Other income (expenses)
Interest and investment income 114    23    128    265   
Interest expense (D) (142)   (1,861)   (629)   (2,632)  
Capitalized interest (D) —    226    611    837   
Other income (loss), net —    (343)   470    127   
Total other income (expenses) (28)   (1,955)   580    (1,403)  
Income tax expense —    —    —    —   
Net loss (7,793)   (948)   (4,218)   (12,959)  
Preferred dividends —    —    (1,395)   (1,395)  
Loss applicable to common stockholders $ (7,793)   $ (948)   $ (5,613)   $ (14,354)  
General and administrative expenses included no severance expense for the three months ended June 30, 2020, severance expense in the amount of $0.7 million for the six months ended June 30, 2020, and $0.7 million and $1.1 million for the three and six months ended June 30, 2019, respectively.
(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.
(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.
(D)Interest expense included the accretion of membership deposit liabilities in the amount of $1.9 million and $3.8 million for the three and six months ended June 30, 2020, respectively, and $1.6 million and $3.6 million for the three and six months ended June 30, 2019, respectively. Interest expense and capitalized interest are combined in interest expense, net on the Consolidated Statements of Operations.