Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING (Tables)

v3.7.0.1
SEGMENT REPORTING (Tables)
6 Months Ended
Jun. 30, 2017
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
 
Debt Investments
 
Corporate
 
Total
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
106,935

 
$

 
$

 
$

 
$
106,935

Sales of food and beverages
33,566

 

 

 

 
33,566

Total revenues
140,501

 

 

 

 
140,501

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
120,295

 
50

 

 

 
120,345

Cost of sales - food and beverages
10,041

 

 

 

 
10,041

General and administrative expense
1,444

 
143

 

 
2,278

 
3,865

General and administrative expense - acquisition and transaction expenses (B)
486

 
2,319

 

 
117

 
2,922

Management fee to affiliate

 

 

 
5,354

 
5,354

Depreciation and amortization
11,765

 

 

 

 
11,765

Impairment

 

 
32

 

 
32

Realized and unrealized loss on investments
285

 

 
6,391

 

 
6,676

Total operating costs
144,316

 
2,512

 
6,423

 
7,749

 
161,000

Operating loss
(3,815
)
 
(2,512
)
 
(6,423
)
 
(7,749
)
 
(20,499
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
72

 

 
14,052

 
159

 
14,283

Interest expense (C)
(7,670
)
 

 
(2,050
)
 
(845
)
 
(10,565
)
Other (loss) income, net
(834
)
 

 
1,004

 

 
170

Total other income (expenses)
(8,432
)
 

 
13,006

 
(686
)
 
3,888

Income tax expense (D)

 

 

 
1,049

 
1,049

Net (loss) income
(12,247
)
 
(2,512
)
 
6,583

 
(9,484
)
 
(17,660
)
Preferred dividends

 

 

 
(2,790
)
 
(2,790
)
(Loss) income applicable to common stockholders
$
(12,247
)
 
$
(2,512
)
 
$
6,583

 
$
(12,274
)
 
$
(20,450
)

Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
60,639

 
$

 
$

 
$

 
$
60,639

Sales of food and beverages
20,721

 

 

 

 
20,721

Total revenues
81,360

 

 

 

 
81,360

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
65,864

 
50

 

 

 
65,914

Cost of sales - food and beverages
6,009

 

 

 

 
6,009

General and administrative expense
744

 
77

 

 
1,133

 
1,954

General and administrative expense - acquisition and transaction expenses (B)
210

 
1,058

 

 

 
1,268

Management fee to affiliate

 

 

 
2,677

 
2,677

Depreciation and amortization
5,972

 

 

 

 
5,972

Impairment

 

 
32

 

 
32

Realized and unrealized loss on investments
165

 

 
3,122

 

 
3,287

Total operating costs
78,964

 
1,185

 
3,154

 
3,810

 
87,113

Operating income (loss)
2,396

 
(1,185
)
 
(3,154
)
 
(3,810
)
 
(5,753
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
33

 

 
6,250

 
112

 
6,395

Interest expense (C)
(3,853
)
 

 
(844
)
 
(434
)
 
(5,131
)
Other (loss) income, net
(210
)
 

 
503

 

 
293

Total other income (expenses)
(4,030
)
 

 
5,909

 
(322
)
 
1,557

Income tax expense (D)

 

 

 
510

 
510

Net (loss) income
(1,634
)
 
(1,185
)
 
2,755

 
(4,642
)
 
(4,706
)
Preferred dividends

 

 

 
(1,395
)
 
(1,395
)
(Loss) Income applicable to common stockholders
$
(1,634
)
 
$
(1,185
)
 
$
2,755

 
$
(6,037
)
 
$
(6,101
)
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments (E)
 
Corporate
 
Total
June 30, 2017
 
 
 
 
 
 
 
 
 
Investments
$
276,759

 
$
3,250

 
$
404,025

 
$

 
$
684,034

Cash and restricted cash
14,483

 
3,928

 
409

 
104,548

 
123,368

Other assets
34,562

 
3,012

 
2,972

 
495

 
41,041

Total assets
325,804

 
10,190

 
407,406

 
105,043

 
848,443

Debt, net
116,131

 

 
307,689

 
51,212

 
475,032

Other liabilities
166,453

 
2,777

 
1,164

 
3,757

 
174,151

Total liabilities
282,584

 
2,777

 
308,853

 
54,969

 
649,183

Preferred stock

 

 

 
61,583

 
61,583

Noncontrolling interest

 

 

 

 

Equity attributable to common stockholders
$
43,220

 
$
7,413

 
$
98,553

 
$
(11,509
)
 
$
137,677

 
 
 
 
 
 
 
 
 
 
Additions to investments in real estate during the six months ended June 30, 2017
$
6,834

 
$
2,254

 
$

 
$

 
$
9,088

Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
111,469

 
$

 
$

 
$

 
$
111,469

Sales of food and beverages
35,173

 

 

 

 
35,173

Total revenues
146,642

 

 

 

 
146,642

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
126,419

 

 

 

 
126,419

Cost of sales - food and beverages
11,113

 

 

 

 
11,113

General and administrative expense
1,544

 
2

 
38

 
3,666

 
5,250

General and administrative expense - acquisition and transaction expenses (B)
1,011

 
228

 

 
171

 
1,410

Management fee to affiliate

 

 

 
5,351

 
5,351

Depreciation and amortization
12,515

 

 

 

 
12,515

Impairment

 

 
2,953

 

 
2,953

Realized and unrealized loss on investments
19

 

 
3,450

 

 
3,469

Total operating costs
152,621

 
230

 
6,441

 
9,188

 
168,480

Operating loss
(5,979
)
 
(230
)
 
(6,441
)
 
(9,188
)
 
(21,838
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
77

 

 
41,375

 
8

 
41,460

Interest expense (C)
(5,363
)
 

 
(19,077
)
 
(1,511
)
 
(25,951
)
Gain on deconsolidation

 

 
82,130

 

 
82,130

Other (loss) income, net
(273
)
 

 
1,107

 

 
834

Total other income (expenses)
(5,559
)
 

 
105,535

 
(1,503
)
 
98,473

Income tax expense
182

 

 

 

 
182

Net (loss) income
(11,720
)
 
(230
)
 
99,094

 
(10,691
)
 
76,453

Preferred dividends

 

 

 
(2,790
)
 
(2,790
)
Net loss attributable to noncontrolling interest
12

 

 

 

 
12

(Loss) income applicable to common stockholders
$
(11,708
)
 
$
(230
)
 
$
99,094

 
$
(13,481
)
 
$
73,675




Summary segment financial data (continued).
 
Traditional Golf
 
Entertainment Golf
 
Debt Investments
 
Corporate
 
Total
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Golf course operations
$
62,872

 
$

 
$

 
$

 
$
62,872

Sales of food and beverages
21,612

 

 

 

 
21,612

Total revenues
84,484

 

 

 

 
84,484

Operating costs
 
 
 
 
 
 
 
 
 
Operating expenses (A)
68,200

 

 

 

 
68,200

Cost of sales - food and beverages
6,516

 

 

 

 
6,516

General and administrative expense
705

 
1

 
1

 
1,782

 
2,489

General and administrative expense - acquisition and transaction expenses (B)
884

 
216

 

 
134

 
1,234

Management fee to affiliate

 

 

 
2,676

 
2,676

Depreciation and amortization
6,484

 

 

 

 
6,484

Impairment

 

 
645

 

 
645

Realized and unrealized loss on investments
19

 

 
1,443

 

 
1,462

Total operating costs
82,808

 
217

 
2,089

 
4,592

 
89,706

Operating income (loss)
1,676

 
(217
)
 
(2,089
)
 
(4,592
)
 
(5,222
)
Other income (expenses)
 
 
 
 
 
 
 
 
 
Interest and investment income
36

 

 
20,382

 
3

 
20,421

Interest expense (C)
(2,698
)
 

 
(9,153
)
 
(566
)
 
(12,417
)
Other income, net
11

 

 
503

 

 
514

Total other income (expenses)
(2,651
)
 

 
11,732

 
(563
)
 
8,518

Income tax expense
138

 

 

 

 
138

Net (loss) income
(1,113
)
 
(217
)
 
9,643

 
(5,155
)
 
3,158

Preferred dividends

 

 

 
(1,395
)
 
(1,395
)
Net (income) attributable to noncontrolling interest
(112
)
 

 

 

 
(112
)
(Loss) income applicable to common stockholders
$
(1,225
)
 
$
(217
)
 
$
9,643

 
$
(6,550
)
 
$
1,651

(A)
Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.8 million and $1.6 million for the three and six months ended June 30, 2017, respectively, and $1.0 million and $1.9 million for the three and six months ended June 30, 2016, respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.1 million and $2.1 million for the three and six months ended June 30, 2017, respectively, and $1.1 million and $2.3 million for the three and six months ended June 30, 2016, respectively. In addition, straight-line rent associated with our Entertainment Golf venues is included in operating expenses.
(B)
Acquisition and transaction expenses include 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 costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues.
(C)
Interest expense includes the accretion of membership deposit liabilities in the amount of $1.6 million and $3.2 million for the three and six months ended June 30, 2017, respectively, and $1.4 million and $2.9 million for the three and six months ended June 30, 2016, respectively.
(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)
The following table summarizes the investments and debt in the Debt Investments segment:
 
June 30, 2017
 
Investments
 
Debt
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
Unlevered real estate securities
$
4,000

 
$
2,114

 
$

 
$

Levered real estate securities
310,713

 
319,184

 
307,689

 
307,689

Real estate related and other loans (F)
81,790

 
62,708

 

 

Other investments
N/A

 
20,019

 

 

 
$
396,503

 
$
404,025

 
$
307,689

 
$
307,689


(F)
Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million.
Schedule of other debt segment investments and debt
The following table summarizes the investments and debt in the Debt Investments segment:
 
June 30, 2017
 
Investments
 
Debt
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
Unlevered real estate securities
$
4,000

 
$
2,114

 
$

 
$

Levered real estate securities
310,713

 
319,184

 
307,689

 
307,689

Real estate related and other loans (F)
81,790

 
62,708

 

 

Other investments
N/A

 
20,019

 

 

 
$
396,503

 
$
404,025

 
$
307,689

 
$
307,689


(F)
Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million.