Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31458 | |
Entity Registrant Name | Drive Shack Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 81-0559116 | |
Entity Address, Address Line One | 218 W. 18th Street | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10011 | |
City Area Code | 646 | |
Local Phone Number | 585-5591 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 67,212,362 | |
Entity Central Index Key | 0001175483 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | DS | |
Security Exchange Name | NYSE | |
Series B Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 9.75% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share | |
Trading Symbol | DS-PB | |
Security Exchange Name | NYSE | |
Series C Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 8.05% Series C Cumulative Redeemable Preferred Stock, $0.01 par value per share | |
Trading Symbol | DS-PC | |
Security Exchange Name | NYSE | |
Series D Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 8.375% Series D Cumulative Redeemable Preferred Stock, $0.01 par value per share | |
Trading Symbol | DS-PD | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 12,638,000 | $ 28,423,000 |
Restricted cash | 2,974,000 | 3,103,000 |
Accounts receivable, net of allowance of $967 and $1,082, respectively | 3,651,000 | 5,249,000 |
Real estate assets, held-for-sale, net | 16,975,000 | 16,948,000 |
Real estate securities, available-for-sale | 2,985,000 | 3,052,000 |
Other current assets | 13,977,000 | 17,521,000 |
Total current assets | 53,200,000 | 74,296,000 |
Restricted cash, noncurrent | 267,000 | 438,000 |
Property and equipment, net of accumulated depreciation | 178,732,000 | 179,641,000 |
Operating lease right-of-use assets | 203,359,000 | 215,308,000 |
Intangibles, net of accumulated amortization | 16,039,000 | 17,565,000 |
Other investments | 0 | 24,020,000 |
Other assets | 5,476,000 | 4,723,000 |
Total assets | 457,073,000 | 515,991,000 |
Current liabilities | ||
Obligations under finance leases | 5,860,000 | 6,154,000 |
Membership deposit liabilities | 14,457,000 | 10,791,000 |
Accounts payable and accrued expenses | 34,374,000 | 25,877,000 |
Deferred revenue | 23,633,000 | 26,268,000 |
Real estate liabilities, held-for-sale | 5,000 | 4,000 |
Other current liabilities | 27,375,000 | 23,964,000 |
Total current liabilities | 105,704,000 | 93,058,000 |
Credit facilities and obligations under finance leases - noncurrent | 12,061,000 | 13,125,000 |
Operating lease liabilities - noncurrent | 175,048,000 | 187,675,000 |
Junior subordinated notes payable | 51,187,000 | 51,192,000 |
Membership deposit liabilities, noncurrent | 95,913,000 | 95,805,000 |
Deferred revenue, noncurrent | 6,783,000 | 6,283,000 |
Other liabilities | 1,709,000 | 3,278,000 |
Total liabilities | 448,405,000 | 450,416,000 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of June 30, 2020 and December 31, 2019 | 61,583,000 | 61,583,000 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 67,212,362 and 67,068,751 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 672,000 | 671,000 |
Additional paid-in capital | 3,177,883,000 | 3,177,183,000 |
Accumulated deficit | (3,232,925,000) | (3,175,572,000) |
Accumulated other comprehensive income | 1,455,000 | 1,710,000 |
Total equity | 8,668,000 | 65,575,000 |
Total liabilities and equity | $ 457,073,000 | $ 515,991,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts receivable allowance | $ 967 | $ 1,082 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock liquidation preference (in dollars per share) | $ 25 | $ 25 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 67,212,362 | 67,068,751 |
Common stock, shares outstanding (in shares) | 67,212,362 | 67,068,751 |
Series B Cumulative Redeemable Preferred Stock | ||
Preferred stock, dividend rate | 9.75% | 9.75% |
Preferred stock, shares issued (in shares) | 1,347,321 | 1,347,321 |
Preferred stock, shares outstanding (in shares) | 1,347,321 | 1,347,321 |
Series C Cumulative Redeemable Preferred Stock | ||
Preferred stock, dividend rate | 8.05% | 8.05% |
Preferred stock, shares issued (in shares) | 496,000 | 496,000 |
Preferred stock, shares outstanding (in shares) | 496,000 | 496,000 |
Series D Cumulative Redeemable Preferred Stock | ||
Preferred stock, dividend rate | 8.375% | 8.375% |
Preferred stock, shares issued (in shares) | 620,000 | 620,000 |
Preferred stock, shares outstanding (in shares) | 620,000 | 620,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Total revenues | $ 32,100,000 | $ 71,615,000 | $ 93,235,000 | $ 125,567,000 |
Operating costs | ||||
Operating expenses | 33,224,000 | 58,720,000 | 87,591,000 | 106,443,000 |
Cost of sales - food and beverages | 829,000 | 3,904,000 | 4,484,000 | 6,601,000 |
General and administrative expense | 6,368,000 | 13,607,000 | 16,186,000 | 25,226,000 |
Depreciation and amortization | 6,682,000 | 5,122,000 | 13,476,000 | 10,046,000 |
Pre-opening costs | 270,000 | 1,700,000 | 822,000 | 2,879,000 |
(Gain) Loss on lease terminations and impairment | (3,125,000) | 118,000 | (2,333,000) | 4,206,000 |
Total operating costs | 44,248,000 | 83,171,000 | 120,226,000 | 155,401,000 |
Operating loss | (12,148,000) | (11,556,000) | (26,991,000) | (29,834,000) |
Other income (expenses) | ||||
Interest and investment income | 135,000 | 265,000 | 265,000 | 608,000 |
Interest expense, net | (2,591,000) | (1,795,000) | (5,336,000) | (3,947,000) |
Other income (loss), net | (24,422,000) | 127,000 | (24,055,000) | 5,614,000 |
Total other income (expenses) | (26,878,000) | (1,403,000) | (29,126,000) | 2,275,000 |
Loss before income tax | (39,026,000) | (12,959,000) | (56,117,000) | (27,559,000) |
Income tax expense | 500,000 | 0 | 771,000 | 0 |
Net Loss | (39,526,000) | (12,959,000) | (56,888,000) | (27,559,000) |
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) |
Loss Applicable to Common Stockholders | $ (40,921,000) | $ (14,354,000) | $ (59,678,000) | $ (30,349,000) |
Loss Applicable to Common Stock, per share | ||||
Basic (in dollars per share) | $ (0.61) | $ (0.21) | $ (0.89) | $ (0.45) |
Diluted (in dollars per share) | $ (0.61) | $ (0.21) | $ (0.89) | $ (0.45) |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 67,111,843 | 67,029,610 | 67,090,805 | 67,028,364 |
Diluted (in shares) | 67,111,843 | 67,029,610 | 67,090,805 | 67,028,364 |
Golf operations | ||||
Revenues | ||||
Total revenues | $ 29,675,000 | $ 57,386,000 | $ 78,300,000 | $ 102,092,000 |
Food and beverages | ||||
Revenues | ||||
Total revenues | $ 2,425,000 | $ 14,229,000 | $ 14,935,000 | $ 23,475,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (39,526) | $ (12,959) | $ (56,888) | $ (27,559) |
Other comprehensive loss: | ||||
Net unrealized loss on available-for-sale securities | (217) | 0 | (255) | 0 |
Other comprehensive loss | (217) | 0 | (255) | 0 |
Total comprehensive loss | (39,743) | (12,959) | (57,143) | (27,559) |
Comprehensive loss attributable to Drive Shack Inc. stockholders’ equity | $ (39,743) | $ (12,959) | $ (57,143) | $ (27,559) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Adjustment for adoption of ASC 842 | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitAdjustment for adoption of ASC 842 | Accumulated Other Comp. Income |
Equity (deficit), beginning (in shares) at Dec. 31, 2018 | 2,463,321 | 67,027,104 | ||||||
Equity (deficit), beginning at Dec. 31, 2018 | $ 134,667 | $ (9,831) | $ 61,583 | $ 670 | $ 3,175,843 | $ (3,105,307) | $ (9,831) | $ 1,878 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared | (1,395) | (1,395) | ||||||
Stock-based compensation | 1,222 | 1,222 | ||||||
Comprehensive income (loss) | ||||||||
Net loss | (14,600) | (14,600) | ||||||
Other comprehensive loss | 0 | |||||||
Total comprehensive loss | (14,600) | |||||||
Equity (deficit), ending (in shares) at Mar. 31, 2019 | 2,463,321 | 67,027,104 | ||||||
Equity (deficit), ending at Mar. 31, 2019 | $ 110,063 | $ 61,583 | $ 670 | 3,177,065 | (3,131,133) | 1,878 | ||
Comprehensive income (loss) | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Equity (deficit), beginning (in shares) at Dec. 31, 2018 | 2,463,321 | 67,027,104 | ||||||
Equity (deficit), beginning at Dec. 31, 2018 | $ 134,667 | $ (9,831) | $ 61,583 | $ 670 | 3,175,843 | (3,105,307) | $ (9,831) | 1,878 |
Comprehensive income (loss) | ||||||||
Net loss | (27,559) | |||||||
Other comprehensive loss | 0 | |||||||
Total comprehensive loss | (27,559) | |||||||
Equity (deficit), ending (in shares) at Jun. 30, 2019 | 2,463,321 | 67,033,104 | ||||||
Equity (deficit), ending at Jun. 30, 2019 | 97,122 | $ 61,583 | $ 670 | 3,178,478 | (3,145,487) | 1,878 | ||
Equity (deficit), beginning (in shares) at Mar. 31, 2019 | 2,463,321 | 67,027,104 | ||||||
Equity (deficit), beginning at Mar. 31, 2019 | 110,063 | $ 61,583 | $ 670 | 3,177,065 | (3,131,133) | 1,878 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared | (1,395) | (1,395) | ||||||
Stock-based compensation | 1,384 | 1,384 | ||||||
Purchase of common stock (directors) (in shares) | 6,000 | |||||||
Purchase of common stock (directors) | 29 | 29 | ||||||
Comprehensive income (loss) | ||||||||
Net loss | (12,959) | (12,959) | ||||||
Other comprehensive loss | 0 | |||||||
Total comprehensive loss | (12,959) | |||||||
Equity (deficit), ending (in shares) at Jun. 30, 2019 | 2,463,321 | 67,033,104 | ||||||
Equity (deficit), ending at Jun. 30, 2019 | 97,122 | $ 61,583 | $ 670 | 3,178,478 | (3,145,487) | 1,878 | ||
Equity (deficit), beginning (in shares) at Dec. 31, 2019 | 2,463,321 | 67,068,751 | ||||||
Equity (deficit), beginning at Dec. 31, 2019 | 65,575 | $ 61,583 | $ 671 | 3,177,183 | (3,175,572) | 1,710 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared | (465) | (465) | ||||||
Stock-based compensation | 201 | 201 | ||||||
Shares issued from restricted stock units (in shares) | 1,762 | |||||||
Shares issued from restricted stock units | 0 | |||||||
Comprehensive income (loss) | ||||||||
Net loss | (17,362) | (17,362) | ||||||
Other comprehensive loss | (38) | (38) | ||||||
Total comprehensive loss | (17,400) | |||||||
Equity (deficit), ending (in shares) at Mar. 31, 2020 | 2,463,321 | 67,070,513 | ||||||
Equity (deficit), ending at Mar. 31, 2020 | 47,911 | $ 61,583 | $ 671 | 3,177,384 | (3,193,399) | 1,672 | ||
Equity (deficit), beginning (in shares) at Dec. 31, 2019 | 2,463,321 | 67,068,751 | ||||||
Equity (deficit), beginning at Dec. 31, 2019 | 65,575 | $ 61,583 | $ 671 | 3,177,183 | (3,175,572) | 1,710 | ||
Comprehensive income (loss) | ||||||||
Net loss | (56,888) | |||||||
Other comprehensive loss | (255) | |||||||
Total comprehensive loss | (57,143) | |||||||
Equity (deficit), ending (in shares) at Jun. 30, 2020 | 2,463,321 | 67,212,362 | ||||||
Equity (deficit), ending at Jun. 30, 2020 | 8,668 | $ 61,583 | $ 672 | 3,177,883 | (3,232,925) | 1,455 | ||
Equity (deficit), beginning (in shares) at Mar. 31, 2020 | 2,463,321 | 67,070,513 | ||||||
Equity (deficit), beginning at Mar. 31, 2020 | 47,911 | $ 61,583 | $ 671 | 3,177,384 | (3,193,399) | 1,672 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 500 | 500 | ||||||
Shares issued from restricted stock units (in shares) | 141,849 | |||||||
Shares issued from restricted stock units | 0 | $ 1 | (1) | |||||
Comprehensive income (loss) | ||||||||
Net loss | (39,526) | (39,526) | ||||||
Other comprehensive loss | (217) | (217) | ||||||
Total comprehensive loss | (39,743) | |||||||
Equity (deficit), ending (in shares) at Jun. 30, 2020 | 2,463,321 | 67,212,362 | ||||||
Equity (deficit), ending at Jun. 30, 2020 | $ 8,668 | $ 61,583 | $ 672 | $ 3,177,883 | $ (3,232,925) | $ 1,455 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows From Operating Activities | ||
Net loss | $ (56,888) | $ (27,559) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 13,476 | 10,046 |
Amortization of discount and premium | (193) | (122) |
Other amortization | 3,823 | 3,556 |
Amortization of revenue on golf membership deposit liabilities | (746) | (874) |
Amortization of prepaid golf membership dues | (3,451) | (6,855) |
Non-cash operating lease expense | 6,333 | 3,270 |
Stock-based compensation | 700 | 2,606 |
(Gain) Loss on lease terminations and impairment | (2,783) | 4,206 |
Equity in (earnings), net of impairment from equity method investments | 24,020 | (685) |
Other (gains) losses, net | 164 | (4,551) |
Change in: | ||
Accounts receivable, net, other current assets and other assets - noncurrent | 4,235 | (1,579) |
Accounts payable and accrued expenses, deferred revenue, other current liabilities and other liabilities - noncurrent | 5,625 | (5,685) |
Net cash used in operating activities | (5,685) | (24,226) |
Cash Flows From Investing Activities | ||
Proceeds from sale of property and equipment | 73 | 32,665 |
Acquisition and additions of property and equipment and intangibles | (7,702) | (42,569) |
Net cash used in investing activities | (7,629) | (9,904) |
Cash Flows From Financing Activities | ||
Repayments of debt obligations | (2,068) | (2,691) |
Golf membership deposits received | 878 | 1,012 |
Preferred stock dividends paid | (1,395) | (2,790) |
Other financing activities | (186) | 20 |
Net cash used in financing activities | (2,771) | (4,449) |
Net Decrease in Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent | (16,085) | (38,579) |
Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent, Beginning of Period | 31,964 | 82,819 |
Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent, End of Period | 15,879 | 44,240 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Preferred stock dividends declared but not paid | 0 | 930 |
Additions to finance lease assets and liabilities | 1,028 | 10,652 |
Increases in accounts payable and accrued expenses related to the purchase of property and equipment | $ 4,192 | $ 2,816 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Drive Shack Inc., which is referred to, together with its subsidiaries, as Drive Shack Inc. or the Company, is an owner and operator of golf-related leisure and entertainment venues focused on bringing people together through competitive socializing. The Company, a Maryland corporation, was formed in 2002, and its common stock is traded on the NYSE under the symbol “DS.” The Company conducts its business through the following segments: (i) Entertainment Golf venues, (ii) Traditional Golf properties and (iii) corporate. For a further discussion of the reportable segments, see Note 4. As of June 30, 2020, the Company owned or leased four Entertainment Golf venues across three states. We opened our first Entertainment Golf venue in Orlando, Florida, in April 2018, which has largely served as our research, development and testing venue. During the second half of 2019, we opened three Generation 2.0 core Drive Shack venues in Raleigh, North Carolina; Richmond, Virginia; and West Palm Beach, Florida. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COVID-19 — In March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). In response to the rapid spread of COVID-19, authorities around the world have implemented numerous measures to contain the virus, such as travel bans and restrictions, quarantines, "stay-at-home" or "shelter-in-place" orders and business shutdowns. Many jurisdictions in which we operate required mandatory store closures or imposed capacity limitations and other restrictions affecting our operations. As a result, during March 2020, we temporarily closed all of our entertainment golf venues and substantially all of our traditional golf courses and furloughed a substantial majority of our employees. In response to the uncertainty caused by the pandemic, we took several actions after we suspended operations to preserve our liquidity position and prepare for multiple contingencies. The gradual easing of restrictions has permitted us to resume operations at our entertainment golf venues, subject to locally mandated COVID-19 capacity limitations at the suite style hitting bays (varying by location), and with no bar service, and to resume operations at our traditional golf courses subject to various locally mandated COVID-19 operational restrictions, with food and beverage offerings limited and operating primarily on a patio dining and “to-go” model. Restrictions on large group gatherings have lagged the easing of other operational restrictions imposed across our portfolio, varying by location, which has resulted in the postponement or cancellation of events, banquets, and other large group gatherings. Throughout May and June, the Company reopened its three Generation 2.0 entertainment golf venues in West Palm Beach, FL; Richmond, VA; and Raleigh, North Carolina. As of June 30, 2020, all traditional golf courses were open. As of the date of this report, one entertainment golf venue in Orlando, Florida remains closed . The COVID-19 pandemic remains a rapidly evolving situation and the extended length of the outbreak and related government response may cause prolonged periods of various operational and capacity limitations and modified operating schedules and may result in changes in customer behaviors or preferences. These may lead to increased asset recovery and valuation risks, such as impairment of long-lived and other assets. The extent to which COVID-19 ultimately impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, including additional actions taken by various governmental bodies and private enterprises to contain COVID-19 or mitigate its impact, among others. The Company currently expects these developments to have a material adverse impact on its revenues, results of operations and cash flows in future periods. Going Concern — The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. However, as noted above, we temporarily closed all of our entertainment golf and substantially all of our traditional golf venues, eliminating substantially all of the Company's revenue sources during the closure periods (varying by location). The loss of revenues and uncertainty related to the COVID-19 pandemic discussed above raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue operations is dependent on the degree of success of management's plans to manage existing cash balances through the business disruptions and to obtain additional capital to fund its short-term liquidity requirements. In order to manage existing cash balances, management reduced spending broadly, including furloughing employees, pausing construction on future planned venues to reduce capital spending, suspending declaration of dividends on our preferred stock, and deferring payment of certain operating and corporate expenditures. The Company is actively seeking to sell its remaining Traditional Golf property that is held-for-sale and believes that a sale is probable and would mitigate the substantial doubt raised by the COVID-19 pandemic and satisfy the Company's estimated liquidity needs through 12 months from the issuance of the financial statements. The Company is also exploring additional debt financing, including potential financing options made available under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), public or private equity issuances, and additional ways to strategically monetize our remaining real estate securities and other investments. However, there is no assurance that the Company will be successful in raising additional capital or that such additional funds will be available on acceptable terms, if at all. Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2019 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2020. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2019. There have been no significant changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The Company’s significant accounting policies for these financial statements as of June 30, 2020 are summarized below and should be read in conjunction with the Summary of Significant Accounting Policies detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Use of Estimates – Our estimates are based on information available to management at the time of preparation of the Consolidated Financial Statements, including the result of historical analysis, our understanding and experience of the Company’s operations, our knowledge of the industry and market-participant data available to us. Actual results have historically been in line with management’s estimates and judgments used in applying each of the accounting policies and management periodically re-evaluates accounting estimates and assumptions. Actual results could differ from these estimates and materially impact our Consolidated Financial Statements. However, the Company does not expect our assessments and assumptions to materially change in the future. Real Estate, Held-for-Sale — Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs to sell. The Company suspends depreciation and amortization for assets held-for-sale. Subsequent changes to the estimated fair value less costs to sell could impact the measurement of assets held-for-sale. Decreases below carrying value are recognized as an impairment loss and recorded in "Impairment and other losses" on the Consolidated Statements of Operations. To the extent the fair value increases, any previously reported impairment is reversed to the extent of the impairment taken. On March 7, 2018, the Company announced it was actively pursuing the sale of 26 owned Traditional Golf properties in order to generate capital for reinvestment in the Entertainment Golf business. As of June 30, 2020, the Company continued to present one golf property as held-for-sale. The assets and associated liabilities are reported on the Consolidated Balance Sheets as “Real estate assets, held-for-sale, net” and “Real estate liabilities, held-for-sale,” respectively. The real estate assets, held-for-sale, net are reported at a carrying value of $17.0 million and include $12.6 million of land, $4.0 million of buildings and improvements, $0.2 million of furniture, fixtures and equipment, and $0.2 million of other related assets. Leasing Arrangements — The Company evaluates at lease inception whether an arrangement is or contains a lease by providing the Company with the right to control an asset. Operating leases are accounted for on balance sheet with the Right of Use (“ROU”) assets and lease liabilities recognized in "Operating lease right-of-use assets," "Other current liabilities" and "Operating lease liabilities - noncurrent" in the Consolidated Balance Sheets. Finance lease ROU assets, current lease liabilities and noncurrent lease liabilities are recognized in "Property and equipment, net of accumulated depreciation," and "Obligations under finance leases" and "Credit facilities and obligations under finance leases - noncurrent" in the Consolidated Balance Sheets, respectively. All lease liabilities are measured at the present value of the associated payments, discounted using the Company’s incremental borrowing rate determined using a portfolio approach based on the rate of interest that the Company would pay to borrow an amount equal to the lease payments for a similar term and in a similar economic environment on a collateralized basis. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid rent, and lease incentives received. Operating leases are subsequently amortized into lease cost on a straight-line basis. Depreciation of the finance lease ROU assets is subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization" on the Consolidated Statements of Operations. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, which are payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments as well as payment of taxes assessed against the leased property. The leases generally also require the payment for the cost of insurance and maintenance. Variable lease payments are recognized when the associated activity occurs and contingency is resolved. The Company has elected to combine lease and non-lease components for all lease contracts. Other Investments — The Company owns an approximately 22% economic interest in a limited liability company which owns preferred equity in a commercial real estate project. The Company accounts for this investment as an equity method investment. The Company evaluates its equity method investment for other-than-temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near-term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating results. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. As the fair value inputs utilized are unobservable, the Company determined that the significant inputs used to value this real estate investment fall within Level 3 for fair value reporting. The operations and ongoing construction at the commercial real estate project halted due to the COVID-19 pandemic, with no known plans to resume. As a result, the ability of the commercial real estate project to obtain the financial results needed to recover any of our investment is highly uncertain. Therefore, the Company recorded an other-than-temporary impairment charge of $24.7 million during the three months ended June 30, 2020, bringing the carrying value of the investment to zero as of June 30, 2020. The other-than-temporary impairment charge is recorded in "Other income (loss), net" on the Consolidated Statements of Operations. At December 31, 2019, the carrying value of this investment was $24.0 million. Impairment of Long-lived Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate held-for-use and held-for-sale, as well as finite-lived intangible assets and right-of-use assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount is greater than the expected undiscounted cash flows, the asset is considered impaired and an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Other Current Assets The following table summarizes the Company's other current assets: June 30, 2020 December 31, 2019 Managed course receivables $ 4,997 $ 5,426 Prepaid expenses 2,253 3,608 Deposits 954 1,374 Inventory 2,529 2,762 Miscellaneous current assets, net 3,244 4,351 Other current assets $ 13,977 $ 17,521 Other Assets The following table summarizes the Company's other assets: June 30, 2020 December 31, 2019 Prepaid expenses $ 744 $ 317 Deposits 2,455 2,123 Miscellaneous assets, net 2,277 2,283 Other assets $ 5,476 $ 4,723 Other Current Liabilities The following table summarizes the Company's other current liabilities: June 30, 2020 December 31, 2019 Operating lease liabilities 20,477 16,922 Accrued rent 2,366 2,769 Dividends payable — 930 Miscellaneous current liabilities 4,532 3,343 Other current liabilities $ 27,375 $ 23,964 Other Liabilities The following table summarized the Company's other liabilities: June 30, 2020 December 31, 2019 Service obligation intangible — 1,776 Miscellaneous liabilities 1,709 1,502 Other liabilities $ 1,709 $ 3,278 Membership Deposit Liabilities - Private country club members in our Traditional Golf business generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30-year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. Other Income (Loss), Net — These items are comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Collateral management fee income, net 66 129 138 256 Equity in earnings, net of impairment from equity method investments (24,365) 344 (24,020) 685 Gain (loss) on sale of traditional golf properties (102) (362) (54) 4,666 Other (loss) income (21) 16 (119) 7 Other income (loss), net $ (24,422) $ 127 $ (24,055) $ 5,614 Equity income (loss) - During the three and six months ended June 30, 2020, the Company recorded an other-than-temporary impairment charge of $24.7 million on the Company's equity method investment. Gain (loss) on sale of traditional golf properties - During the three months ended June 30, 2019, the Company sold four golf properties resulting in net proceeds of $17.9 million, inclusive of transaction costs. The golf properties had a carrying value of $18.3 million and resulted in a loss on sale of $0.4 million. During the six months ended June 30, 2019, the company sold seven traditional golf courses, resulting in net proceeds of $43.4 million. The golf properties had a carrying value of $38.6 million and resulted in a gain on sale of $4.8 million. Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The standard removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. The effective date of the standard will be for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in the standard are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The majority of the Company’s revenue is recognized at a point in time which is at the time of sale to customers at the Company’s Entertainment Golf venues and Traditional Golf properties, including green fees, cart rentals, bay play, events and sales of food, beverages and merchandise. Revenue from membership dues is recognized in the month earned. Membership dues received in advance are included in deferred revenue and recognized as revenue ratably over the appropriate period, which is generally twelve months or less for private club members and the following month for The Players Club members. The Company’s revenue is all generated within the Entertainment and Traditional Golf segments. The following tables disaggregate revenue by category: Entertainment golf venues, public and private golf properties (owned and leased) and managed golf properties. Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Golf operations $ 762 $ 13,035 $ 6,507 $ 9,371 $ 29,675 $ 4,672 $ 29,058 $ 20,161 $ 24,409 $ 78,300 Sales of food and beverages 1,028 910 487 — 2,425 7,235 5,195 2,505 — 14,935 Total revenues $ 1,790 $ 13,945 $ 6,994 $ 9,371 $ 32,100 $ 11,907 $ 34,253 $ 22,666 $ 24,409 $ 93,235 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Golf operations $ 607 $ 28,902 $ 13,352 $ 14,525 $ 57,386 $ 1,288 $ 46,366 $ 28,806 $ 25,632 $ 102,092 Sales of food and beverages 872 10,116 3,241 — 14,229 1,911 15,593 5,971 — 23,475 Total revenues $ 1,479 $ 39,018 $ 16,593 $ 14,525 $ 71,615 $ 3,199 $ 61,959 $ 34,777 $ 25,632 $ 125,567 (A) Includes $8.5 million and $21.8 million for the three and six months ended June 30, 2020, respectively, and $13.0 million and $22.8 million for the three and six months ended June 30, 2019, respectively, due to management contract reimbursements reported under ASC 606. |
SEGMENT REPORTING
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. 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) (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. |
PROPERTY AND EQUIPMENT, NET OF
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION | PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION The following table summarizes the Company’s property and equipment: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 6,770 $ — $ 6,770 $ 6,770 $ — $ 6,770 Buildings and improvements 150,188 (40,495) 109,693 147,146 (36,349) 110,797 Furniture, fixtures and equipment 53,746 (23,082) 30,664 52,327 (19,484) 32,843 Finance leases - equipment 32,787 (15,248) 17,539 36,166 (16,047) 20,119 Construction in progress 14,066 — 14,066 9,112 — 9,112 Total Property and Equipment $ 257,557 $ (78,825) $ 178,732 $ 251,521 $ (71,880) $ 179,641 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company's commitments under lease arrangements are primarily ground leases for Entertainment Golf venues and Traditional Golf properties and related facilities, office leases and leases for golf carts and equipment. The majority of lease terms for our Entertainment Golf venues and Traditional Golf properties and related facilities initially range from 10 to 20 years, and include up to eight 5-year renewal options (see Note 13 for additional detail). Equipment and golf cart leases initially range between 24 to 66 months and typically contain renewal options which may be on a month-to-month basis. An option to renew a lease is included in the determination of the ROU asset and lease liability when it is reasonably certain that the renewal option will be exercised. Lease related costs recognized in the Consolidated Statements of Operations for the three and six months ended June 30, 2020, and June 30, 2019, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 1,485 1,529 $ 3,016 3,046 Interest on lease liabilities 246 373 587 619 Total finance lease cost 1,731 1,902 3,603 3,665 Operating lease cost Operating lease cost 9,002 9,588 18,269 18,598 Short-term lease cost 421 711 848 1,462 Variable lease cost 1,541 4,401 4,331 7,173 Total operating lease cost 10,964 14,700 23,448 27,233 Total lease cost $ 12,695 16,602 $ 27,051 30,898 Other information related to leases included on the Consolidated Balance Sheet as of and for the six months ended June 30, 2020 are as follows: Operating Leases Financing Leases Right-of-use assets 203,359 17,539 Lease liabilities 195,524 17,721 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows 10,937 587 Financing cash flows N/A 2,066 Right-of-use assets obtained in exchange for lease liabilities 659 1,028 Weighted average remaining lease term 12.7 years 3.2 years Weighted average discount rate 8.3 % 7.4 % Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows: Operating Leases Financing Leases July 1, 2020 - December 31, 2020 19,598 5,308 2021 30,186 5,957 2022 29,102 4,316 2023 28,941 3,277 2024 22,788 1,134 Thereafter 197,851 24 Total minimum lease payments 328,466 20,016 Less: imputed interest 132,942 2,295 Total lease liabilities $ 195,524 $ 17,721 |
LEASES | LEASES The Company's commitments under lease arrangements are primarily ground leases for Entertainment Golf venues and Traditional Golf properties and related facilities, office leases and leases for golf carts and equipment. The majority of lease terms for our Entertainment Golf venues and Traditional Golf properties and related facilities initially range from 10 to 20 years, and include up to eight 5-year renewal options (see Note 13 for additional detail). Equipment and golf cart leases initially range between 24 to 66 months and typically contain renewal options which may be on a month-to-month basis. An option to renew a lease is included in the determination of the ROU asset and lease liability when it is reasonably certain that the renewal option will be exercised. Lease related costs recognized in the Consolidated Statements of Operations for the three and six months ended June 30, 2020, and June 30, 2019, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 1,485 1,529 $ 3,016 3,046 Interest on lease liabilities 246 373 587 619 Total finance lease cost 1,731 1,902 3,603 3,665 Operating lease cost Operating lease cost 9,002 9,588 18,269 18,598 Short-term lease cost 421 711 848 1,462 Variable lease cost 1,541 4,401 4,331 7,173 Total operating lease cost 10,964 14,700 23,448 27,233 Total lease cost $ 12,695 16,602 $ 27,051 30,898 Other information related to leases included on the Consolidated Balance Sheet as of and for the six months ended June 30, 2020 are as follows: Operating Leases Financing Leases Right-of-use assets 203,359 17,539 Lease liabilities 195,524 17,721 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows 10,937 587 Financing cash flows N/A 2,066 Right-of-use assets obtained in exchange for lease liabilities 659 1,028 Weighted average remaining lease term 12.7 years 3.2 years Weighted average discount rate 8.3 % 7.4 % Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows: Operating Leases Financing Leases July 1, 2020 - December 31, 2020 19,598 5,308 2021 30,186 5,957 2022 29,102 4,316 2023 28,941 3,277 2024 22,788 1,134 Thereafter 197,851 24 Total minimum lease payments 328,466 20,016 Less: imputed interest 132,942 2,295 Total lease liabilities $ 195,524 $ 17,721 |
INTANGIBLES, NET OF ACCUMULATED
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | INTANGIBLES, NET OF ACCUMULATED AMORTIZATION The following table summarizes the Company’s intangible assets: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (152) $ 548 $ 700 $ (140) $ 560 Management contracts 31,830 (17,948) 13,882 32,331 (17,342) 14,989 Internally-developed software 252 (52) 200 252 (27) 225 Membership base 5,236 (4,862) 374 5,236 (4,488) 748 Nonamortizable liquor licenses 1,035 — 1,035 1,043 — 1,043 Total Intangibles $ 39,053 $ (23,014) $ 16,039 $ 39,562 $ (21,997) $ 17,565 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding the Company’s debt obligations at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life (Years) Face Amount of Outstanding Face Amount Carrying Value Credit Facilities and Finance Leases Vineyard II Dec 1993 $ 200 $ 200 Dec 2043 3.09% 3.09 % 23.5 $ 200 $ 200 $ 200 Finance leases (Equipment) Jul 2014 - Jun 2020 17,721 17,721 Aug 2020 - Sep 2025 3.00% to 15.00% 7.37 % 3.2 — 19,079 19,079 17,921 17,921 7.32 % 3.4 200 19,279 19,279 Less current portion of obligations under finance leases 5,860 5,860 6,154 6,154 Credit facilities and obligations under finance leases - noncurrent 12,061 12,061 13,125 13,125 Corporate Junior subordinated notes payable (B) Mar 2006 51,004 51,187 Apr 2035 LIBOR+2.25% 2.98 % 14.8 51,004 51,004 51,192 Total debt obligations $ 68,925 $ 69,108 4.11 % 11.9 $ 51,204 $ 70,283 $ 70,471 (B) Interest rate based on 3 month LIBOR plus 2.25%. Collateral for this obligation is the Company's general credit. |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | REAL ESTATE SECURITIES The following is a summary of the Company’s real estate securities at June 30, 2020, which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. June 30, 2020 Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment After Impairment Gains Losses Carrying Number of Securities Rating (B) Coupon Yield Life Principal Subordination (D) ABS - Non-Agency RMBS $ 4,000 $ 3,051 $ (1,521) $ 1,530 $ 1,455 $ — $ 2,985 1 CCC 0.77 % 29.05 % 3.5 48.1 % Total Securities, Available for Sale (E) $ 4,000 $ 3,051 $ (1,521) $ 1,530 $ 1,455 $ — $ 2,985 1 (A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (C) The weighted average life is based on the timing of expected cash flows on the assets. (D) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Summary Table The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at June 30, 2020: Carrying Value Estimated Fair Value Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,985 $ 2,985 Pricing models - Level 3 Cash and cash equivalents 12,638 12,638 Restricted cash, current and noncurrent 3,241 3,241 Liabilities Junior subordinated notes payable 51,187 13,328 Pricing models - Level 3 Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. The Company’s real estate securities and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, the Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodologies used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Significant Unobservable Inputs The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of June 30, 2020: Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 1,530 $ 2,985 10.0 % 8.0 % 2.6 % 70.0 % All of the inputs used have some degree of market observability, based on the Company’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class but conform to industry conventions. The Company uses assumptions that generate its best estimate of future cash flows of each respective security. Real estate securities measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2020 as follows: ABS - Non-Agency RMBS Balance at December 31, 2019 $ 3,052 Total gains (losses) (A) Included in other comprehensive income (loss) (255) Amortization included in interest income 221 Purchases, sales and repayments (A) Proceeds (33) Balance at June 30, 2020 $ 2,985 (A) None of the gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. There were no purchases or sales during the six months ended June 30, 2020. There were no transfers into or out of Level 3 during the six months ended June 30, 2020. Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE A. Stock Options The following is a summary of the changes in the Company’s outstanding options for the six months ended June 30, 2020: Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2019 6,898,346 $ 3.26 Expired (1,117,118) 5.44 Forfeited (770,652) 4.74 Balance at June 30, 2020 5,010,576 $ 2.55 2.67 Exercisable at June 30, 2020 3,702,422 $ 2.56 2.69 As of June 30, 2020, the Company’s outstanding options were summarized as follows: Number of Options Held by the former Manager 3,627,245 Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A) 1,382,998 Issued to the independent directors 333 Issued to Drive Shack employees — Total 5,010,576 Weighted average strike price $ 2.55 (A) The Company and the former Manager agreed that options held by certain employees formerly employed by the Manager would not terminate or be forfeited as a result of the Termination and Cooperation Agreement, and the vesting of such options relate to the relevant holder’s employment with the Company and its affiliates following January 1, 2018. In both February 2017 and April 2018, the former Manager issued 1,152,495 options to certain employees formerly employed by the Manager as part of their compensation. The options fully vest and are exercisable one year prior to the option expiration date, beginning March 2020 through January 2024. In July 2019, a certain employee was terminated by the Company and 921,992 options reverted back to the former Manager. Stock-based compensation expense is recognized on a straight-line basis through the vesting date of the options. Stock-based compensation expense related to the employee options was $0.3 million and $0.2 million during the three and six months ended June 30, 2020, respectively, and $1.2 million and $2.4 million during the three and six months ended June 30, 2019, respectively, and was recorded in general and administrative expense on the Consolidated Statements of Operations. The unrecognized stock-based compensation expense related to the unvested options was $1.7 million as of June 30, 2020 and will be expensed over a weighted average of 2.0 years. B. Restricted Stock Units ("RSUs") The following is a summary of the changes in the Company’s RSUs for the six months ended June 30, 2020. Number of RSUs Weighted Average Grant Date Fair Value (per unit) Balance at December 31, 2019 520,618 $ 4.66 Released (143,611) $ 4.70 Forfeited (120,042) $ 4.64 Balance at June 30, 2020 256,965 $ 4.64 The Company grants RSUs to the non-employee directors as part of their annual compensation. The RSUs are subject to a one year vesting period. During the six months ended June 30, 2020, the Company granted no RSUs to non-employee directors and no RSUs granted to non-employee directors vested. The Company also grants RSUs to employees as part of their annual compensation. The RSUs vest in equal annual installments on each of the first three anniversaries of the grant date. During the six months ended June 30, 2020, the Company granted no RSUs to employees and 145,366 RSUs granted to employees vested. Stock-based compensation expense is recognized on a straight-line basis through the vesting date of the RSUs. Stock-based compensation expense related to RSUs was $0.2 million and $0.5 million during the three and six months ended June 30, 2020, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2019, respectively. Stock-based compensation expense was recorded in general and administrative expense on the Consolidated Statements of Operations. The unrecognized stock-based compensation expense related to the unvested RSUs was $0.9 million as of June 30, 2020 and will be expensed over a weighted average of 1.8 years. C. Dividends On November 11, 2019, the Company declared dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning November 1, 2019 and ending January 31, 2020. Dividends totaling $1.4 million were paid on January 31, 2020. No dividends were declared during the six months ended June 30, 2020. D. Earnings Per Share The following table shows the Company's basic and diluted earnings per share (“EPS”): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for basic and diluted earnings per share: Loss from continuing operations after preferred dividends and noncontrolling interests $ (40,921) $ (14,354) $ (59,678) $ (30,349) Loss Applicable to Common Stockholders $ (40,921) $ (14,354) $ (59,678) $ (30,349) Denominator: Denominator for basic earnings per share - weighted average shares 67,111,843 67,029,610 67,090,805 67,028,364 Effect of dilutive securities Options — — — — RSUs — — — — Denominator for diluted earnings per share - adjusted weighted average shares 67,111,843 67,029,610 67,090,805 67,028,364 Basic earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.61) $ (0.21) $ (0.89) $ (0.45) Loss Applicable to Common Stock, per share $ (0.61) $ (0.21) $ (0.89) $ (0.45) Diluted earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.61) $ (0.21) $ (0.89) $ (0.45) Loss Applicable to Common Stock, per share $ (0.61) $ (0.21) $ (0.89) $ (0.45) |
TRANSACTIONS WITH AFFILIATES AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 6 Months Ended |
Jun. 30, 2020 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES Other Affiliated EntitiesThe Company incurred expenses for services of Ms. Khouri prior to execution of an employment agreement, which will be reimbursed to an affiliate of a member of the Board of Directors, subject to Board approval. The Company accrued $0.2 million in compensation expense for the year ended December 31, 2019, and an additional $0.1 million for the six months ended June 30, 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Contingencies - The Company is and may become, from time to time, involved in legal actions in the ordinary course of business, including governmental and administrative investigations, inquiries and proceedings concerning employment, labor, environmental, personal injury and other claims. Although management is unable to predict with certainty the eventual outcome of any legal action, management believes the ultimate liability arising from such actions, individually and in the aggregate, which existed at June 30, 2020, will not materially affect the Company’s consolidated results of operations, financial position or cash flow. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on our financial results. Commitments - As of June 30, 2020, the Company had future payments for additional operating leases that had not yet commenced of $66.6 million. The leases are expected to commence over the next 12 - 24 months with lease terms of approximately 10 - 20 years. These leases are primarily real estate leases for future Entertainment Golf venues and the commencement of these leases is contingent on completion of due diligence and satisfaction of certain contingencies which generally occurs prior to construction. Preferred Dividends in Arrears - As of June 30, 2020, $2.3 million of dividends on the Company's cumulative preferred stock were unpaid and in arrears. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's income tax provision (benefit) for interim periods is determined using an estimate of the Company's annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company's income tax provision was $0.5 million and $0.8 million for the three and six months ended June 30, 2020, respectively. There was no income tax provision for the three and six months ended June 30, 2019. The increase in the income tax provision is primarily due to tax on excess inclusion income. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. The Company recorded a valuation allowance against its deferred tax assets as of June 30, 2020 as management does not believe that it is more likely than not that the deferred tax assets will be realized. The Company and its subsidiaries file U.S. federal and state income tax returns in various jurisdictions. Generally, the Company is no longer subject to tax examinations by tax authorities for years prior to 2016. At December 31, 2019 and June 30, 2020, the Company reported a total liability for unrecognized tax benefits of $1.2 million. The Company does not anticipate any significant increases or decreases to the balance of unrecognized tax benefits during the next 12 months. On March 27, 2020, as part of the business stimulus package in response to the COVID-19 pandemic, the U.S. government enacted the CARES Act. The CARES Act established new tax provisions including, but not limited to: (1) five-year carryback of NOLs generated in 2018, 2019 and 2020, and a temporary suspension of certain other limitations on the use of NOLs; (2) accelerated refund of AMT credit carryforwards; and (3) retroactive changes to allow accelerated depreciation for certain depreciable property. The legislation does not have a material impact on the Company’s tax positions due to the lack of taxable |
(GAIN) LOSS ON LEASE TERMINATIO
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT | 6 Months Ended |
Jun. 30, 2020 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT | (GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT The following table summarizes the amounts the Company recorded in the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Gain on lease terminations $ (3,125) $ — $ (3,125) $ — Impairment on traditional golf properties (held-for-sale) $ — $ — $ — $ 952 Impairment on traditional golf properties (held-for-use) — — 792 3,136 Other losses — 118 — 118 Total (gain) loss on lease terminations and impairment $ (3,125) $ 118 $ (2,333) $ 4,206 Gain on lease terminations - During the three and six months ended June 30, 2020, the Company recorded a gain of $3.1 million on the termination of two traditional golf course leases. The gain primarily related to the derecognition of long-lived asset, intangible, and ROU asset and liability balances. Held-for-Sale Impairment: For the six months ended June 30, 2019, the Company recognized impairment losses and recorded accumulated impairment totaling approximately $1.0 million on two golf properties. The fair value measurements were based on expected selling prices, less costs to sell. The significant inputs used to value these real estate investments fall within Level 3 for fair value reporting. Held-for-Use Impairment: For the six months ended June 30, 2020, the Company recorded impairment charges totaling $0.8 million for one property. For the six months ended June 30, 2019, the Company recorded impairment charges totaling $3.1 million for one golf property. The Company evaluated the recoverability of the carrying value of these assets using the income approach based on future assumptions of cash flows. As the fair value inputs utilized are unobservable, the Company determined that the significant inputs used to value these properties fall within Level 3 for fair value reporting. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2019 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2020. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2019. There have been no significant changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Use of Estimates | Use of Estimates – Our estimates are based on information available to management at the time of preparation of the Consolidated Financial Statements, including the result of historical analysis, our understanding and experience of the Company’s operations, our knowledge of the industry and market-participant data available to us. Actual results have historically been in line with management’s estimates and judgments used in applying each of the accounting policies and management periodically re-evaluates accounting estimates and assumptions. Actual results could differ from these estimates and materially impact our Consolidated Financial Statements. However, the Company does not expect our assessments and assumptions to materially change in the future. |
Real Estate, Held-for-Sale | Real Estate, Held-for-Sale — Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs to sell. The Company suspends depreciation and amortization for assets held-for-sale. Subsequent changes to the estimated fair value less costs to sell could impact the measurement of assets held-for-sale. Decreases below carrying value are recognized as an impairment loss and recorded in "Impairment and other losses" on the Consolidated Statements of Operations. To the extent the fair value increases, any previously reported impairment is reversed to the extent of the impairment taken. On March 7, 2018, the Company announced it was actively pursuing the sale of 26 owned Traditional Golf properties in order to generate capital for reinvestment in the Entertainment Golf business. As of June 30, 2020, the Company continued to present one golf property as held-for-sale. The assets and associated liabilities are reported on the Consolidated Balance Sheets as “Real estate assets, held-for-sale, net” and “Real estate liabilities, held-for-sale,” respectively. |
Leasing Arrangements | Leasing Arrangements — The Company evaluates at lease inception whether an arrangement is or contains a lease by providing the Company with the right to control an asset. Operating leases are accounted for on balance sheet with the Right of Use (“ROU”) assets and lease liabilities recognized in "Operating lease right-of-use assets," "Other current liabilities" and "Operating lease liabilities - noncurrent" in the Consolidated Balance Sheets. Finance lease ROU assets, current lease liabilities and noncurrent lease liabilities are recognized in "Property and equipment, net of accumulated depreciation," and "Obligations under finance leases" and "Credit facilities and obligations under finance leases - noncurrent" in the Consolidated Balance Sheets, respectively. All lease liabilities are measured at the present value of the associated payments, discounted using the Company’s incremental borrowing rate determined using a portfolio approach based on the rate of interest that the Company would pay to borrow an amount equal to the lease payments for a similar term and in a similar economic environment on a collateralized basis. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid rent, and lease incentives received. Operating leases are subsequently amortized into lease cost on a straight-line basis. Depreciation of the finance lease ROU assets is subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization" on the Consolidated Statements of Operations. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, which are payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments as well as payment of taxes assessed against the leased property. The leases generally also require the payment for the cost of insurance and maintenance. Variable lease payments are recognized when the associated activity occurs and contingency is resolved. |
Other Investments | Other Investments — The Company owns an approximately 22% economic interest in a limited liability company which owns preferred equity in a commercial real estate project. The Company accounts for this investment as an equity method investment. The Company evaluates its equity method investment for other-than-temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near-term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating results. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. As the fair value inputs utilized are unobservable, the Company determined that the significant inputs used to value this real estate investment fall within Level 3 for fair value reporting. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate held-for-use and held-for-sale, as well as finite-lived intangible assets and right-of-use assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount is greater than the expected undiscounted cash flows, the asset is considered impaired and an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The |
Membership Deposit Liabilities | Membership Deposit Liabilities - Private country club members in our Traditional Golf business generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30-year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The standard removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. The effective date of the standard will be for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in the standard are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. |
Fair Value Measurements | Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. The Company’s real estate securities and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, the Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodologies used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
Earnings Per Share | The Company’s dilutive securities are outstanding stock options and RSUs. |
Income Taxes | In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of other current assets | The following table summarizes the Company's other current assets: June 30, 2020 December 31, 2019 Managed course receivables $ 4,997 $ 5,426 Prepaid expenses 2,253 3,608 Deposits 954 1,374 Inventory 2,529 2,762 Miscellaneous current assets, net 3,244 4,351 Other current assets $ 13,977 $ 17,521 |
Schedule of other assets | The following table summarizes the Company's other assets: June 30, 2020 December 31, 2019 Prepaid expenses $ 744 $ 317 Deposits 2,455 2,123 Miscellaneous assets, net 2,277 2,283 Other assets $ 5,476 $ 4,723 |
Schedule of other current liabilities | The following table summarizes the Company's other current liabilities: June 30, 2020 December 31, 2019 Operating lease liabilities 20,477 16,922 Accrued rent 2,366 2,769 Dividends payable — 930 Miscellaneous current liabilities 4,532 3,343 Other current liabilities $ 27,375 $ 23,964 |
Schedule of other liabilities | The following table summarized the Company's other liabilities: June 30, 2020 December 31, 2019 Service obligation intangible — 1,776 Miscellaneous liabilities 1,709 1,502 Other liabilities $ 1,709 $ 3,278 |
Other Income (Loss), Net | These items are comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Collateral management fee income, net 66 129 138 256 Equity in earnings, net of impairment from equity method investments (24,365) 344 (24,020) 685 Gain (loss) on sale of traditional golf properties (102) (362) (54) 4,666 Other (loss) income (21) 16 (119) 7 Other income (loss), net $ (24,422) $ 127 $ (24,055) $ 5,614 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables disaggregate revenue by category: Entertainment golf venues, public and private golf properties (owned and leased) and managed golf properties. Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Golf operations $ 762 $ 13,035 $ 6,507 $ 9,371 $ 29,675 $ 4,672 $ 29,058 $ 20,161 $ 24,409 $ 78,300 Sales of food and beverages 1,028 910 487 — 2,425 7,235 5,195 2,505 — 14,935 Total revenues $ 1,790 $ 13,945 $ 6,994 $ 9,371 $ 32,100 $ 11,907 $ 34,253 $ 22,666 $ 24,409 $ 93,235 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Ent. golf venues Public golf properties Private golf properties Managed golf properties (A) Total Golf operations $ 607 $ 28,902 $ 13,352 $ 14,525 $ 57,386 $ 1,288 $ 46,366 $ 28,806 $ 25,632 $ 102,092 Sales of food and beverages 872 10,116 3,241 — 14,229 1,911 15,593 5,971 — 23,475 Total revenues $ 1,479 $ 39,018 $ 16,593 $ 14,525 $ 71,615 $ 3,199 $ 61,959 $ 34,777 $ 25,632 $ 125,567 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: 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) (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. |
PROPERTY AND EQUIPMENT, NET O_2
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table summarizes the Company’s property and equipment: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 6,770 $ — $ 6,770 $ 6,770 $ — $ 6,770 Buildings and improvements 150,188 (40,495) 109,693 147,146 (36,349) 110,797 Furniture, fixtures and equipment 53,746 (23,082) 30,664 52,327 (19,484) 32,843 Finance leases - equipment 32,787 (15,248) 17,539 36,166 (16,047) 20,119 Construction in progress 14,066 — 14,066 9,112 — 9,112 Total Property and Equipment $ 257,557 $ (78,825) $ 178,732 $ 251,521 $ (71,880) $ 179,641 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease related costs | Lease related costs recognized in the Consolidated Statements of Operations for the three and six months ended June 30, 2020, and June 30, 2019, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets $ 1,485 1,529 $ 3,016 3,046 Interest on lease liabilities 246 373 587 619 Total finance lease cost 1,731 1,902 3,603 3,665 Operating lease cost Operating lease cost 9,002 9,588 18,269 18,598 Short-term lease cost 421 711 848 1,462 Variable lease cost 1,541 4,401 4,331 7,173 Total operating lease cost 10,964 14,700 23,448 27,233 Total lease cost $ 12,695 16,602 $ 27,051 30,898 |
Lease, other information | Other information related to leases included on the Consolidated Balance Sheet as of and for the six months ended June 30, 2020 are as follows: Operating Leases Financing Leases Right-of-use assets 203,359 17,539 Lease liabilities 195,524 17,721 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows 10,937 587 Financing cash flows N/A 2,066 Right-of-use assets obtained in exchange for lease liabilities 659 1,028 Weighted average remaining lease term 12.7 years 3.2 years Weighted average discount rate 8.3 % 7.4 % |
Schedule of future minimum lease payments, operating lease | Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows: Operating Leases Financing Leases July 1, 2020 - December 31, 2020 19,598 5,308 2021 30,186 5,957 2022 29,102 4,316 2023 28,941 3,277 2024 22,788 1,134 Thereafter 197,851 24 Total minimum lease payments 328,466 20,016 Less: imputed interest 132,942 2,295 Total lease liabilities $ 195,524 $ 17,721 |
Schedule of future minimum lease payments, finance lease | Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows: Operating Leases Financing Leases July 1, 2020 - December 31, 2020 19,598 5,308 2021 30,186 5,957 2022 29,102 4,316 2023 28,941 3,277 2024 22,788 1,134 Thereafter 197,851 24 Total minimum lease payments 328,466 20,016 Less: imputed interest 132,942 2,295 Total lease liabilities $ 195,524 $ 17,721 |
INTANGIBLES, NET OF ACCUMULAT_2
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes the Company’s intangible assets: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (152) $ 548 $ 700 $ (140) $ 560 Management contracts 31,830 (17,948) 13,882 32,331 (17,342) 14,989 Internally-developed software 252 (52) 200 252 (27) 225 Membership base 5,236 (4,862) 374 5,236 (4,488) 748 Nonamortizable liquor licenses 1,035 — 1,035 1,043 — 1,043 Total Intangibles $ 39,053 $ (23,014) $ 16,039 $ 39,562 $ (21,997) $ 17,565 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The following table presents certain information regarding the Company’s debt obligations at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life (Years) Face Amount of Outstanding Face Amount Carrying Value Credit Facilities and Finance Leases Vineyard II Dec 1993 $ 200 $ 200 Dec 2043 3.09% 3.09 % 23.5 $ 200 $ 200 $ 200 Finance leases (Equipment) Jul 2014 - Jun 2020 17,721 17,721 Aug 2020 - Sep 2025 3.00% to 15.00% 7.37 % 3.2 — 19,079 19,079 17,921 17,921 7.32 % 3.4 200 19,279 19,279 Less current portion of obligations under finance leases 5,860 5,860 6,154 6,154 Credit facilities and obligations under finance leases - noncurrent 12,061 12,061 13,125 13,125 Corporate Junior subordinated notes payable (B) Mar 2006 51,004 51,187 Apr 2035 LIBOR+2.25% 2.98 % 14.8 51,004 51,004 51,192 Total debt obligations $ 68,925 $ 69,108 4.11 % 11.9 $ 51,204 $ 70,283 $ 70,471 (B) Interest rate based on 3 month LIBOR plus 2.25%. Collateral for this obligation is the Company's general credit. |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of real estate securities holdings | The following is a summary of the Company’s real estate securities at June 30, 2020, which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. June 30, 2020 Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment After Impairment Gains Losses Carrying Number of Securities Rating (B) Coupon Yield Life Principal Subordination (D) ABS - Non-Agency RMBS $ 4,000 $ 3,051 $ (1,521) $ 1,530 $ 1,455 $ — $ 2,985 1 CCC 0.77 % 29.05 % 3.5 48.1 % Total Securities, Available for Sale (E) $ 4,000 $ 3,051 $ (1,521) $ 1,530 $ 1,455 $ — $ 2,985 1 (A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (C) The weighted average life is based on the timing of expected cash flows on the assets. (D) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and estimated fair value of assets and liabilities | The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at June 30, 2020: Carrying Value Estimated Fair Value Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,985 $ 2,985 Pricing models - Level 3 Cash and cash equivalents 12,638 12,638 Restricted cash, current and noncurrent 3,241 3,241 Liabilities Junior subordinated notes payable 51,187 13,328 Pricing models - Level 3 |
Schedule of quantitative information regarding significant unobservable inputs | The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of June 30, 2020: Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 1,530 $ 2,985 10.0 % 8.0 % 2.6 % 70.0 % |
Schedule of change in fair value of level 3 investments | Real estate securities measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2020 as follows: ABS - Non-Agency RMBS Balance at December 31, 2019 $ 3,052 Total gains (losses) (A) Included in other comprehensive income (loss) (255) Amortization included in interest income 221 Purchases, sales and repayments (A) Proceeds (33) Balance at June 30, 2020 $ 2,985 |
Liabilities for which fair value is only disclosed | The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of outstanding options | The following is a summary of the changes in the Company’s outstanding options for the six months ended June 30, 2020: Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2019 6,898,346 $ 3.26 Expired (1,117,118) 5.44 Forfeited (770,652) 4.74 Balance at June 30, 2020 5,010,576 $ 2.55 2.67 Exercisable at June 30, 2020 3,702,422 $ 2.56 2.69 |
Schedule of outstanding options summary | As of June 30, 2020, the Company’s outstanding options were summarized as follows: Number of Options Held by the former Manager 3,627,245 Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A) 1,382,998 Issued to the independent directors 333 Issued to Drive Shack employees — Total 5,010,576 Weighted average strike price $ 2.55 |
Summary of changes in RSUs | The following is a summary of the changes in the Company’s RSUs for the six months ended June 30, 2020. Number of RSUs Weighted Average Grant Date Fair Value (per unit) Balance at December 31, 2019 520,618 $ 4.66 Released (143,611) $ 4.70 Forfeited (120,042) $ 4.64 Balance at June 30, 2020 256,965 $ 4.64 |
Schedule of amounts used in computing basic and diluted EPS | The following table shows the Company's basic and diluted earnings per share (“EPS”): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for basic and diluted earnings per share: Loss from continuing operations after preferred dividends and noncontrolling interests $ (40,921) $ (14,354) $ (59,678) $ (30,349) Loss Applicable to Common Stockholders $ (40,921) $ (14,354) $ (59,678) $ (30,349) Denominator: Denominator for basic earnings per share - weighted average shares 67,111,843 67,029,610 67,090,805 67,028,364 Effect of dilutive securities Options — — — — RSUs — — — — Denominator for diluted earnings per share - adjusted weighted average shares 67,111,843 67,029,610 67,090,805 67,028,364 Basic earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.61) $ (0.21) $ (0.89) $ (0.45) Loss Applicable to Common Stock, per share $ (0.61) $ (0.21) $ (0.89) $ (0.45) Diluted earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.61) $ (0.21) $ (0.89) $ (0.45) Loss Applicable to Common Stock, per share $ (0.61) $ (0.21) $ (0.89) $ (0.45) |
(GAIN) LOSS ON LEASE TERMINAT_2
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Summary of impairment (reversal) | The following table summarizes the amounts the Company recorded in the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Gain on lease terminations $ (3,125) $ — $ (3,125) $ — Impairment on traditional golf properties (held-for-sale) $ — $ — $ — $ 952 Impairment on traditional golf properties (held-for-use) — — 792 3,136 Other losses — 118 — 118 Total (gain) loss on lease terminations and impairment $ (3,125) $ 118 $ (2,333) $ 4,206 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 2 Months Ended | 6 Months Ended |
Jun. 30, 2020propertystate | Dec. 31, 2019property | |
Entertainment Golf | ||
Segment Reporting Information [Line Items] | ||
Number of properties | 4 | |
Number of states in which properties owned | state | 3 | |
Number of opened venues | 3 | 3 |
Traditional Golf | ||
Segment Reporting Information [Line Items] | ||
Number of states in which properties owned | state | 9 | |
Traditional Golf | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Number of properties | 60 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Mar. 07, 2018property | Jun. 30, 2020USD ($)property | Jun. 30, 2020USD ($)property | Jun. 30, 2019USD ($)Securities | Jun. 30, 2020USD ($)property | Dec. 31, 2019USD ($)property | Jun. 30, 2019USD ($)Securities |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Ownership in equity investment (as percent) | 22.00% | 22.00% | 22.00% | ||||
Other-than-temporary impairment charge | $ 24,700,000 | $ 24,700,000 | |||||
Other investments | $ 0 | $ 0 | 0 | $ 24,020,000 | |||
Proceeds from sale of property and equipment | $ 73,000 | $ 32,665,000 | |||||
Entertainment Golf | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of opened venues | property | 3 | 3 | |||||
Number of venues remained closed | property | 1 | 1 | 1 | ||||
Golf Properties | Disposed of by sale | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of real estate properties sold | Securities | 4 | 7 | |||||
Proceeds from sale of property and equipment | $ 17,900,000 | $ 43,400,000 | |||||
Carrying value of property disposed during the period | 18,300,000 | 38,600,000 | |||||
Gain (loss) on disposition of property | $ (400,000) | $ 4,800,000 | |||||
Golf Properties | Held-for-sale | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of properties held for sale | property | 26 | 1 | |||||
Real estate assets carrying value | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | ||||
Real estate assets, other related assets | 200,000 | 200,000 | 200,000 | ||||
Golf Properties | Held-for-sale | Land | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Real estate assets | 12,600,000 | 12,600,000 | 12,600,000 | ||||
Golf Properties | Held-for-sale | Buildings and improvements | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Real estate assets | 4,000,000 | 4,000,000 | 4,000,000 | ||||
Golf Properties | Held-for-sale | Furniture, fixtures and equipment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Real estate assets | $ 200,000 | $ 200,000 | $ 200,000 | ||||
Membership | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deposit refundable period | 30 years | ||||||
Weighted average life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Current Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Managed course receivables | $ 4,997 | $ 5,426 |
Prepaid expenses | 2,253 | 3,608 |
Deposits | 954 | 1,374 |
Inventory | 2,529 | 2,762 |
Miscellaneous current assets, net | 3,244 | 4,351 |
Other current assets | $ 13,977 | $ 17,521 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 744 | $ 317 |
Deposits | 2,455 | 2,123 |
Miscellaneous assets, net | 2,277 | 2,283 |
Other assets | $ 5,476 | $ 4,723 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Operating lease liabilities | $ 20,477 | $ 16,922 |
Accrued rent | 2,366 | 2,769 |
Dividends payable | 0 | 930 |
Miscellaneous current liabilities | 4,532 | 3,343 |
Other current liabilities | $ 27,375 | $ 23,964 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Service obligation intangible | $ 0 | $ 1,776 |
Miscellaneous liabilities | 1,709 | 1,502 |
Other liabilities | $ 1,709 | $ 3,278 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Income, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other income (loss), net | ||||
Collateral management fee income, net | $ 66 | $ 129 | $ 138 | $ 256 |
Equity in earnings, net of impairment from equity method investments | (24,365) | 344 | (24,020) | 685 |
Gain (loss) on sale of traditional golf properties | (102) | (362) | (54) | 4,666 |
Other (loss) income | (21) | 16 | (119) | 7 |
Other income (loss), net | $ (24,422) | $ 127 | $ (24,055) | $ 5,614 |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 32,100 | $ 71,615 | $ 93,235 | $ 125,567 |
Golf operations, ent. golf venues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 762 | 607 | 4,672 | 1,288 |
Golf operations, public golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13,035 | 28,902 | 29,058 | 46,366 |
Golf operations, private golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,507 | 13,352 | 20,161 | 28,806 |
Golf operations, managed golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 9,371 | 14,525 | 24,409 | 25,632 |
Golf operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 29,675 | 57,386 | 78,300 | 102,092 |
Food and beverage, ent. golf venues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,028 | 872 | 7,235 | 1,911 |
Food and beverage, public golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 910 | 10,116 | 5,195 | 15,593 |
Food and beverage, private golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 487 | 3,241 | 2,505 | 5,971 |
Food and beverage, managed golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Food and beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,425 | 14,229 | 14,935 | 23,475 |
Ent. golf venues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,790 | 1,479 | 11,907 | 3,199 |
Public golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13,945 | 39,018 | 34,253 | 61,959 |
Private golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,994 | 16,593 | 22,666 | 34,777 |
Managed golf properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 9,371 | 14,525 | 24,409 | 25,632 |
Management contract reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 8,500 | $ 13,000 | $ 21,800 | $ 22,800 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) | 2 Months Ended | 6 Months Ended | |
Jun. 30, 2020propertystate | Jun. 30, 2020propertysegmentstate | Dec. 31, 2019property | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Entertainment Golf | |||
Segment Reporting Information [Line Items] | |||
Number of opened venues | 3 | 3 | |
Number of golf properties | 4 | 4 | |
Number of states in which properties owned | state | 3 | 3 | |
Traditional Golf | |||
Segment Reporting Information [Line Items] | |||
Number of states in which properties owned | state | 9 | 9 | |
Traditional Golf | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Number of golf properties | 60 | 60 |
SEGMENT REPORTING (Segment Repo
SEGMENT REPORTING (Segment Reporting) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenues | |||||||
Total revenues | $ 32,100,000 | $ 71,615,000 | $ 93,235,000 | $ 125,567,000 | |||
Operating costs | |||||||
Operating expenses | 33,224,000 | 58,720,000 | 87,591,000 | 106,443,000 | |||
Cost of sales - food and beverages | 829,000 | 3,904,000 | 4,484,000 | 6,601,000 | |||
General and administrative expense | 5,532,000 | 12,432,000 | 14,172,000 | 23,652,000 | |||
General and administrative expense - acquisition and transaction expenses | 836,000 | 1,175,000 | 2,014,000 | 1,574,000 | |||
Depreciation and amortization | 6,682,000 | 5,122,000 | 13,476,000 | 10,046,000 | |||
Pre-opening costs | 270,000 | 1,700,000 | 822,000 | 2,879,000 | |||
(Gain) Loss on lease terminations and impairment | (3,125,000) | 118,000 | (2,333,000) | 4,206,000 | |||
Realized and unrealized gain (loss) on investments | 0 | 0 | 0 | ||||
Total operating costs | 44,248,000 | 83,171,000 | 120,226,000 | 155,401,000 | |||
Operating loss | (12,148,000) | (11,556,000) | (26,991,000) | (29,834,000) | |||
Other income (expenses) | |||||||
Interest and investment income | 135,000 | 265,000 | 265,000 | 608,000 | |||
Interest expense | (2,636,000) | (2,632,000) | (5,414,000) | (5,449,000) | |||
Capitalized interest | 45,000 | 837,000 | 78,000 | 1,502,000 | |||
Other income (loss), net | (24,422,000) | 127,000 | (24,055,000) | 5,614,000 | |||
Total other income (expenses) | (26,878,000) | (1,403,000) | (29,126,000) | 2,275,000 | |||
Income tax expense | 500,000 | 0 | 771,000 | 0 | |||
Net Loss | (39,526,000) | $ (17,362,000) | (12,959,000) | $ (14,600,000) | (56,888,000) | (27,559,000) | |
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) | |||
Loss Applicable to Common Stockholders | (40,921,000) | (14,354,000) | (59,678,000) | (30,349,000) | |||
Total assets | 457,073,000 | 457,073,000 | $ 515,991,000 | ||||
Total liabilities | 448,405,000 | 448,405,000 | 450,416,000 | ||||
Preferred stock | 61,583,000 | 61,583,000 | 61,583,000 | ||||
Equity | (52,915,000) | (52,915,000) | |||||
Additions to property and equipment (including finance leases) during the six months ended June 30, 2020 | 7,702,000 | ||||||
Severance expenses | 0 | 700,000 | 700,000 | 1,100,000 | |||
Equity method investment | 0 | 0 | $ 24,020,000 | ||||
Golf operations | |||||||
Revenues | |||||||
Total revenues | 29,675,000 | 57,386,000 | 78,300,000 | 102,092,000 | |||
Food and beverages | |||||||
Revenues | |||||||
Total revenues | 2,425,000 | 14,229,000 | 14,935,000 | 23,475,000 | |||
Entertainment Golf | |||||||
Other income (expenses) | |||||||
Accretion of membership deposit liabilities | 1,900,000 | 1,600,000 | 3,800,000 | 3,600,000 | |||
Entertainment Golf | Operating Segments | |||||||
Revenues | |||||||
Total revenues | 1,790,000 | 1,479,000 | 11,907,000 | 3,199,000 | |||
Operating costs | |||||||
Operating expenses | 2,629,000 | 1,857,000 | 10,801,000 | 3,605,000 | |||
Cost of sales - food and beverages | 294,000 | 251,000 | 1,904,000 | 501,000 | |||
General and administrative expense | 1,360,000 | 3,551,000 | 4,529,000 | 6,930,000 | |||
General and administrative expense - acquisition and transaction expenses | 831,000 | 806,000 | 865,000 | 963,000 | |||
Depreciation and amortization | 3,001,000 | 961,000 | 6,021,000 | 1,670,000 | |||
Pre-opening costs | 270,000 | 1,700,000 | 822,000 | 2,879,000 | |||
(Gain) Loss on lease terminations and impairment | 0 | 118,000 | 0 | 118,000 | |||
Realized and unrealized gain (loss) on investments | 0 | 0 | 0 | ||||
Total operating costs | 8,385,000 | 9,244,000 | 24,942,000 | 16,666,000 | |||
Operating loss | (6,595,000) | (7,765,000) | (13,035,000) | (13,467,000) | |||
Other income (expenses) | |||||||
Interest and investment income | 0 | 114,000 | 1,000 | 246,000 | |||
Interest expense | (102,000) | (142,000) | (207,000) | (142,000) | |||
Capitalized interest | 0 | 0 | 0 | 0 | |||
Other income (loss), net | 0 | 0 | 0 | (7,000) | |||
Total other income (expenses) | (102,000) | (28,000) | (206,000) | 97,000 | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net Loss | (6,697,000) | (7,793,000) | (13,241,000) | (13,370,000) | |||
Preferred dividends | 0 | 0 | 0 | 0 | |||
Loss Applicable to Common Stockholders | (6,697,000) | (7,793,000) | (13,241,000) | (13,370,000) | |||
Total assets | 158,187,000 | 158,187,000 | |||||
Total liabilities | 41,997,000 | 41,997,000 | |||||
Preferred stock | 0 | 0 | |||||
Equity | 116,190,000 | 116,190,000 | |||||
Additions to property and equipment (including finance leases) during the six months ended June 30, 2020 | 4,297,000 | ||||||
Entertainment Golf | Operating Segments | Golf operations | |||||||
Revenues | |||||||
Total revenues | 762,000 | 607,000 | 4,672,000 | 1,288,000 | |||
Entertainment Golf | Operating Segments | Food and beverages | |||||||
Revenues | |||||||
Total revenues | 1,028,000 | 872,000 | 7,235,000 | 1,911,000 | |||
Traditional Golf | Operating Segments | |||||||
Revenues | |||||||
Total revenues | 30,310,000 | 70,136,000 | 81,328,000 | 122,368,000 | |||
Operating costs | |||||||
Operating expenses | 30,595,000 | 56,863,000 | 76,790,000 | 102,838,000 | |||
Cost of sales - food and beverages | 535,000 | 3,653,000 | 2,580,000 | 6,100,000 | |||
General and administrative expense | 2,189,000 | 4,316,000 | 5,282,000 | 8,212,000 | |||
General and administrative expense - acquisition and transaction expenses | 33,000 | 179,000 | 155,000 | 333,000 | |||
Depreciation and amortization | 3,608,000 | 4,118,000 | 7,311,000 | 8,335,000 | |||
Pre-opening costs | 0 | 0 | 0 | 0 | |||
(Gain) Loss on lease terminations and impairment | (3,125,000) | 0 | (2,333,000) | 4,088,000 | |||
Realized and unrealized gain (loss) on investments | 0 | 0 | 0 | ||||
Total operating costs | 33,835,000 | 69,129,000 | 89,785,000 | 129,906,000 | |||
Operating loss | (3,525,000) | 1,007,000 | (8,457,000) | (7,538,000) | |||
Other income (expenses) | |||||||
Interest and investment income | 23,000 | 23,000 | 38,000 | 61,000 | |||
Interest expense | (2,098,000) | (1,861,000) | (4,245,000) | (4,051,000) | |||
Capitalized interest | 13,000 | 226,000 | 22,000 | 413,000 | |||
Other income (loss), net | (120,000) | (343,000) | (166,000) | 4,688,000 | |||
Total other income (expenses) | (2,182,000) | (1,955,000) | (4,351,000) | 1,111,000 | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net Loss | (5,707,000) | (948,000) | (12,808,000) | (6,427,000) | |||
Preferred dividends | 0 | 0 | 0 | 0 | |||
Loss Applicable to Common Stockholders | (5,707,000) | (948,000) | (12,808,000) | (6,427,000) | |||
Total assets | 284,874,000 | 284,874,000 | |||||
Total liabilities | 343,136,000 | 343,136,000 | |||||
Preferred stock | 0 | 0 | |||||
Equity | (58,262,000) | (58,262,000) | |||||
Additions to property and equipment (including finance leases) during the six months ended June 30, 2020 | 2,982,000 | ||||||
Traditional Golf | Operating Segments | Golf operations | |||||||
Revenues | |||||||
Total revenues | 28,913,000 | 56,779,000 | 73,628,000 | 100,804,000 | |||
Traditional Golf | Operating Segments | Food and beverages | |||||||
Revenues | |||||||
Total revenues | 1,397,000 | 13,357,000 | 7,700,000 | 21,564,000 | |||
Corporate | Operating Segments | |||||||
Revenues | |||||||
Total revenues | 0 | 0 | 0 | 0 | |||
Operating costs | |||||||
Operating expenses | 0 | 0 | 0 | 0 | |||
Cost of sales - food and beverages | 0 | 0 | 0 | 0 | |||
General and administrative expense | 1,983,000 | 4,565,000 | 4,361,000 | 8,510,000 | |||
General and administrative expense - acquisition and transaction expenses | (28,000) | 190,000 | 994,000 | 278,000 | |||
Depreciation and amortization | 73,000 | 43,000 | 144,000 | 41,000 | |||
Pre-opening costs | 0 | 0 | 0 | 0 | |||
(Gain) Loss on lease terminations and impairment | 0 | 0 | 0 | 0 | |||
Realized and unrealized gain (loss) on investments | 0 | 0 | 0 | ||||
Total operating costs | 2,028,000 | 4,798,000 | 5,499,000 | 8,829,000 | |||
Operating loss | (2,028,000) | (4,798,000) | (5,499,000) | (8,829,000) | |||
Other income (expenses) | |||||||
Interest and investment income | 112,000 | 128,000 | 226,000 | 301,000 | |||
Interest expense | (436,000) | (629,000) | (962,000) | (1,256,000) | |||
Capitalized interest | 32,000 | 611,000 | 56,000 | 1,089,000 | |||
Other income (loss), net | (24,302,000) | 470,000 | (23,889,000) | 933,000 | |||
Total other income (expenses) | (24,594,000) | 580,000 | (24,569,000) | 1,067,000 | |||
Income tax expense | 500,000 | 0 | 771,000 | 0 | |||
Net Loss | (27,122,000) | (4,218,000) | (30,839,000) | (7,762,000) | |||
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) | |||
Loss Applicable to Common Stockholders | (28,517,000) | (5,613,000) | (33,629,000) | (10,552,000) | |||
Total assets | 14,012,000 | 14,012,000 | |||||
Total liabilities | 63,272,000 | 63,272,000 | |||||
Preferred stock | 61,583,000 | 61,583,000 | |||||
Equity | (110,843,000) | (110,843,000) | |||||
Additions to property and equipment (including finance leases) during the six months ended June 30, 2020 | 423,000 | ||||||
Corporate | Operating Segments | Golf operations | |||||||
Revenues | |||||||
Total revenues | 0 | 0 | 0 | 0 | |||
Corporate | Operating Segments | Food and beverages | |||||||
Revenues | |||||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT, NET O_3
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Finance leases - equipment, Net Carrying Value | $ 17,539 | |
Gross Carrying Amount | 257,557 | $ 251,521 |
Accumulated Depreciation | (78,825) | (71,880) |
Net Carrying Value | 178,732 | 179,641 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 6,770 | 6,770 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | 6,770 | 6,770 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 150,188 | 147,146 |
Accumulated Depreciation | (40,495) | (36,349) |
Net Carrying Value | 109,693 | 110,797 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 53,746 | 52,327 |
Accumulated Depreciation | (23,082) | (19,484) |
Net Carrying Value | 30,664 | 32,843 |
Finance leases - equipment | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases - equipment, Gross Carrying Amount | 32,787 | 36,166 |
Finance leases - equipment, Accumulated Depreciation | (15,248) | (16,047) |
Finance leases - equipment, Net Carrying Value | 17,539 | 20,119 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 14,066 | 9,112 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | $ 14,066 | $ 9,112 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020renewal_option | |
Lessee, Lease, Description [Line Items] | |
Number of renewal terms | 8 |
Renewal term (in years) | 5 years |
Lower Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 10 years |
Upper Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 20 years |
Traditional Golf Properties and Related Facilities | Lower Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 10 years |
Traditional Golf Properties and Related Facilities | Upper Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 20 years |
Golf Carts and Equipment | Lower Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 24 months |
Golf Carts and Equipment | Upper Range | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 66 months |
LEASES (Lease Related Costs) (D
LEASES (Lease Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finance lease cost | ||||
Amortization of right-of-use assets | $ 1,485 | $ 1,529 | $ 3,016 | $ 3,046 |
Interest on lease liabilities | 246 | 373 | 587 | 619 |
Total finance lease cost | 1,731 | 1,902 | 3,603 | 3,665 |
Operating lease cost | ||||
Operating lease cost | 9,002 | 9,588 | 18,269 | 18,598 |
Short-term lease cost | 421 | 711 | 848 | 1,462 |
Variable lease cost | 1,541 | 4,401 | 4,331 | 7,173 |
Total operating lease cost | 10,964 | 14,700 | 23,448 | 27,233 |
Total lease cost | $ 12,695 | $ 16,602 | $ 27,051 | $ 30,898 |
LEASES (Other Information) (Det
LEASES (Other Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 203,359 | $ 215,308 |
Right-of-use assets, financing leases | 17,539 | |
Lease liabilities, operating leases | 195,524 | |
Lease liabilities, financing leases | 17,721 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows, Operating Leases | 10,937 | |
Operating cash flows, Financing Leases | 587 | |
Financing cash flows, Financing Leases | 2,066 | |
Right-of-use assets obtained in exchange for lease liabilities, operating leases | 659 | |
Right-of-use assets obtained in exchange for lease liabilities, financing leases | $ 1,028 | |
Weighted average remaining lease term, operating lease | 12 years 8 months 12 days | |
Weighted average remaining lease term, financing lease | 3 years 2 months 12 days | |
Weighted average discount rate, operating lease | 8.30% | |
Weighted average discount rate, financing lease | 7.40% |
LEASES (Schedule of Lease Matur
LEASES (Schedule of Lease Maturity) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
July 1, 2020 - December 31, 2020 | $ 19,598 |
2021 | 30,186 |
2022 | 29,102 |
2023 | 28,941 |
2024 | 22,788 |
Thereafter | 197,851 |
Total minimum lease payments | 328,466 |
Less: imputed interest | 132,942 |
Total lease liabilities | 195,524 |
Financing Leases | |
July 1, 2020 - December 31, 2020 | 5,308 |
2021 | 5,957 |
2022 | 4,316 |
2023 | 3,277 |
2024 | 1,134 |
Thereafter | 24 |
Total minimum lease payments | 20,016 |
Less: imputed interest | 2,295 |
Total lease liabilities | $ 17,721 |
INTANGIBLES, NET OF ACCUMULAT_3
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (23,014) | $ (21,997) |
Total Intangibles, Gross Carrying Amount | 39,053 | 39,562 |
Total Intangibles, Net Carrying Value | 16,039 | 17,565 |
Nonamortizable liquor licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Nonamortizable liquor licenses | 1,035 | 1,043 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 700 | 700 |
Accumulated Amortization | (152) | (140) |
Net Carrying Value | 548 | 560 |
Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,830 | 32,331 |
Accumulated Amortization | (17,948) | (17,342) |
Net Carrying Value | 13,882 | 14,989 |
Internally-developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 252 | 252 |
Accumulated Amortization | (52) | (27) |
Net Carrying Value | 200 | 225 |
Membership base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,236 | 5,236 |
Accumulated Amortization | (4,862) | (4,488) |
Net Carrying Value | $ 374 | $ 748 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Less current portion of obligations under finance leases | $ 5,860 | $ 6,154 |
Total debt obligations | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 68,925 | 70,283 |
Carrying Value | $ 69,108 | 70,471 |
Weighted Average Funding Cost | 4.11% | |
Weighted Average Life | 11 years 10 months 24 days | |
Face Amount of Floating Rate Debt | $ 51,204 | |
Credit Facilities and Finance Leases | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 17,921 | 19,279 |
Carrying Value | $ 17,921 | 19,279 |
Weighted Average Funding Cost | 7.32% | |
Weighted Average Life | 3 years 4 months 24 days | |
Face Amount of Floating Rate Debt | $ 200 | |
Vineyard II | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 200 | 200 |
Carrying Value | $ 200 | 200 |
Weighted Average Coupon | 3.09% | |
Weighted Average Funding Cost | 3.09% | |
Weighted Average Life | 23 years 6 months | |
Face Amount of Floating Rate Debt | $ 200 | |
Finance leases (Equipment) | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 17,721 | 19,079 |
Carrying Value | $ 17,721 | 19,079 |
Weighted Average Funding Cost | 7.37% | |
Weighted Average Life | 3 years 2 months 12 days | |
Face Amount of Floating Rate Debt | $ 0 | |
Finance leases (Equipment) | Lower Range | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon | 3.00% | |
Finance leases (Equipment) | Upper Range | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon | 15.00% | |
Less current portion of obligations under finance leases | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 5,860 | 6,154 |
Less current portion of obligations under finance leases | 5,860 | 6,154 |
Credit facilities and obligations under finance leases - noncurrent | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 12,061 | 13,125 |
Credit facilities and obligations under finance leases - noncurrent | 12,061 | 13,125 |
Junior subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 51,004 | 51,004 |
Carrying Value | $ 51,187 | $ 51,192 |
Weighted Average Funding Cost | 2.98% | |
Weighted Average Life | 14 years 9 months 18 days | |
Face Amount of Floating Rate Debt | $ 51,004 | |
Junior subordinated notes payable | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon | 2.25% |
REAL ESTATE SECURITIES (Real Es
REAL ESTATE SECURITIES (Real Estate Securities Holdings) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)securitySecurities | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,000 | |
Before Impairment - Amortized Cost Basis | 3,051 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 1,530 | |
Gross Unrealized Gains | 1,455 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,985 | $ 3,052 |
Number of Securities | security | 1 | |
Total outstanding face amount of floating rate securities | $ 4,000 | |
Securities in an unrealized loss position | Securities | 0 | |
ABS - Non-Agency RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,000 | |
Before Impairment - Amortized Cost Basis | 3,051 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 1,530 | |
Gross Unrealized Gains | 1,455 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,985 | |
Number of Securities | security | 1 | |
Weighted Average Coupon (as percent) | 0.77% | |
Weighted Average Yield (as percent) | 29.05% | |
Weighted Average Life | 3 years 6 months | |
Weighted Average Principal Subordination (as percent) | 48.10% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Values and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 12,638 | $ 28,423 |
Carrying Value | ||
Assets | ||
Real estate securities, available-for-sale | 2,985 | |
Cash and cash equivalents | 12,638 | |
Restricted cash, current and noncurrent | 3,241 | |
Liabilities | ||
Junior subordinated notes payable | 51,187 | |
Estimated Fair Value | ||
Assets | ||
Real estate securities, available-for-sale | 2,985 | |
Cash and cash equivalents | 12,638 | |
Restricted cash, current and noncurrent | 3,241 | |
Liabilities | ||
Junior subordinated notes payable | $ 13,328 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Unobservable Inputs) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | $ 1,530 |
ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | 1,530 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | 1,530 |
Fair Value | $ 2,985 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Discount Rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.100 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Prepayment Speed (as a percent) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.080 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Cumulative Default Rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.026 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Loss Severity (as a percent) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.700 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Change in Fair Value of Level 3 Investments) (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Purchases, sales and repayments | |
Transfers into Level 3 | $ 0 |
Transfers out of Level 3 | 0 |
Level 3 Market Quotations (Unobservable) | Measured on a Recurring Basis | ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at December 31, 2019 | 3,052,000 |
Total gains (losses) | |
Included in other comprehensive income (loss) | (255,000) |
Amortization included in interest income | 221,000 |
Purchases, sales and repayments | |
Proceeds | (33,000) |
Balance at June 30, 2020 | 2,985,000 |
Purchases | 0 |
Sales | $ 0 |
EQUITY AND EARNINGS PER SHARE_2
EQUITY AND EARNINGS PER SHARE (Outstanding Options) (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Options | |
Balance, beginning balance (in shares) | shares | 6,898,346 |
Expired (in shares) | shares | (1,117,118) |
Forfeited (in shares) | shares | (770,652) |
Balance, ending balance (in shares) | shares | 5,010,576 |
Exercisable (in shares) | shares | 3,702,422 |
Weighted Average Strike Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 3.26 |
Expired (in dollars per shares) | $ / shares | 5.44 |
Forfeited (in dollars per shares) | $ / shares | 4.74 |
Outstanding, ending balance (in dollars per share) | $ / shares | 2.55 |
Exercisable (in dollars per share) | $ / shares | $ 2.56 |
Weighted Average Life Remaining (in years) | |
Outstanding | 2 years 8 months 1 day |
Exercisable | 2 years 8 months 8 days |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE (Outstanding Options Summary) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 5,010,576 | 5,010,576 | ||||
Weighted average strike price (in dollars per share) | $ 2.55 | $ 2.55 | $ 3.26 | |||
Options vest and exercisable prior to option expiration date | 1 year | |||||
Number of options reverted (in shares) | 921,992 | |||||
Held by the former Manager | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 3,627,245 | 3,627,245 | ||||
Issued to the former Manager and subsequently transferred to certain of the Manager’s employees | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 1,382,998 | 1,382,998 | ||||
Issued to the former Manager and subsequently transferred to certain of the Manager’s employees | April 2018 | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 1,152,495 | 1,152,495 | ||||
Issued to the independent directors | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 333 | 333 | ||||
Issued to Drive Shack employees | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | 0 | 0 | ||||
Stock options | ||||||
Related Party Transaction [Line Items] | ||||||
Stock-based compensation expense | $ 0.3 | $ 1.2 | $ 0.2 | $ 2.4 | ||
Unrecognized stock-based compensation expense | $ 1.7 | $ 1.7 | ||||
Unrecognized stock-based compensation expense, period for recognition | 2 years |
EQUITY AND EARNINGS PER SHARE_4
EQUITY AND EARNINGS PER SHARE (Summary of RSUs) (Details) - RSUs | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of RSUs | |
Beginning balance (in shares) | shares | 520,618 |
Released (in shares) | shares | (143,611) |
Forfeited (in shares) | shares | (120,042) |
Ending balance (in shares) | shares | 256,965 |
Weighted Average Grant Date Fair Value (per unit) | |
Beginning weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.66 |
Released (in dollars per share) | $ / shares | 4.70 |
Forfeited (in dollars per share) | $ / shares | 4.64 |
Ending weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.64 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2020 | Nov. 11, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||||
Dividends paid | $ 1.4 | ||||||
Common stock equivalents | |||||||
Class of Stock [Line Items] | |||||||
Dilutive common stock equivalents (in shares) | 488,981 | 2,840,284 | 725,345 | 2,538,663 | |||
Series B Cumulative Redeemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | ||||||
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% | 9.75% | ||||
Series C Cumulative Redeemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | ||||||
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% | 8.05% | ||||
Series D Cumulative Redeemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | ||||||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | ||||
Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Granted (in shares) | 145,366 | ||||||
Stock-based compensation expense (amount less than for RSUs) | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.2 | |||
Unrecognized stock-based compensation expense | $ 0.9 | $ 0.9 | |||||
Unrecognized stock-based compensation expense, period for recognition | 1 year 9 months 18 days | ||||||
Dilutive common stock equivalents (in shares) | 0 | 0 | 0 | 0 | |||
Nonemployee | Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Vesting period | 1 year | ||||||
Shares issued upon vesting | 0 | ||||||
Granted (in shares) | 0 | ||||||
Employee | Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Granted (in shares) | 0 |
EQUITY AND EARNINGS PER SHARE_6
EQUITY AND EARNINGS PER SHARE (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator for basic and diluted earnings per share: | ||||
Loss from continuing operations after preferred dividends and noncontrolling interests | $ (40,921) | $ (14,354) | $ (59,678) | $ (30,349) |
Loss Applicable to Common Stockholders | $ (40,921) | $ (14,354) | $ (59,678) | $ (30,349) |
Denominator: | ||||
Denominator for basic earnings per share - weighted average shares (in shares) | 67,111,843 | 67,029,610 | 67,090,805 | 67,028,364 |
Effect of dilutive securities | ||||
Denominator for diluted earnings per share - adjusted weighted average shares (in shares) | 67,111,843 | 67,029,610 | 67,090,805 | 67,028,364 |
Basic earnings per share: | ||||
Loss Applicable to Common Stock, per share (in dollars per share) | $ (0.61) | $ (0.21) | $ (0.89) | $ (0.45) |
Diluted earnings per share: | ||||
Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests (in dollars per share) | (0.61) | (0.21) | (0.89) | (0.45) |
Loss Applicable to Common Stock, per share (in dollars per share) | $ (0.61) | $ (0.21) | $ (0.89) | $ (0.45) |
Options | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
RSUs | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
TRANSACTIONS WITH AFFILIATES _2
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Compensation expense | $ 0.1 | $ 0.2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Operating lease not yet commenced | $ 66.6 |
Cumulative preferred stock unpaid and in arrears | $ 2.3 |
Lower Range | |
Loss Contingencies [Line Items] | |
Operating leases commence | 12 months |
Operating lease term | 10 years |
Upper Range | |
Loss Contingencies [Line Items] | |
Operating leases commence | 24 months |
Operating lease term | 20 years |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 500,000 | $ 0 | $ 771,000 | $ 0 | |
Unrecognized tax benefits | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 |
(GAIN) LOSS ON LEASE TERMINAT_3
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT (Summary of impairment and other losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other than Temporary Impairment Losses, Investments [Abstract] | ||||
Gain on lease terminations | $ (3,125) | $ 0 | $ (3,125) | $ 0 |
Impairment on traditional golf properties (held-for-sale) | 0 | 0 | 0 | 952 |
Impairment on traditional golf properties (held-for-use) | 0 | 0 | 792 | 3,136 |
Other losses | 0 | 118 | 0 | 118 |
(Gain) Loss on lease terminations and impairment | $ (3,125) | $ 118 | $ (2,333) | $ 4,206 |
(GAIN) LOSS ON LEASE TERMINAT_4
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)lease | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)propertylease | Jun. 30, 2019USD ($)property | |
Other than Temporary Impairment Losses, Investments [Abstract] | ||||
Gain on lease terminations | $ 3,125 | $ 0 | $ 3,125 | $ 0 |
Number of leases terminated | lease | 2 | 2 | ||
Held-for-sale impairment | $ 0 | 0 | $ 0 | $ 952 |
Number of impaired properties held-for-sale | property | 2 | |||
Held-for-use impairment | $ 0 | $ 0 | $ 792 | $ 3,136 |
Number of impaired properties held-for-use | property | 1 | 1 |