SEGMENT REPORTING | SEGMENT REPORTING We manage our casinos based on geographical regions within the United States. The casino/resort segments include the Silver Slipper Casino and Hotel in Bay St. Louis, Mississippi; the Rising Star Casino Resort in Rising Sun, Indiana; and the Northern Nevada segment, which consists of the Grand Lodge Casino in Incline Village, Nevada and Stockman’s Casino in Fallon, Nevada. The Development/Management segment includes costs associated with casino-related development and management projects, including our management contract with the Pueblo of Pojoaque that expired in September 2014. In 2015, the Company's management began utilizing Adjusted Property EBITDA as the primary profit measure for its segments. Adjusted Property EBITDA is a non-GAAP measure defined as Adjusted EBITDA before corporate-related costs and expenses that are not allocated to each property. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, board and executive transition costs, project development and acquisition costs, and non-cash share based compensation expense. Adjusted EBITDA or Adjusted Property EBITDA should not be construed as an alternative to operating income or net income for use as an indicator of our performance; or as an alternative to cash flows from operating activities for use as a measure of liquidity; or as any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA or Adjusted Property EBITDA information may calculate Adjusted EBITDA or Adjusted Property EBITDA in a different manner. The following tables reflect selected operating information for our reporting segments for the three and nine months ended September 30, 2015 and 2014 and include a reconciliation of Adjusted Property EBITDA to operating income (loss) and net income (loss): For the three months ended September 30, 2015 (In thousands, unaudited) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Revenues, net $ 6,809 $ 12,563 $ 14,894 $ — $ — $ 34,266 Adjusted Property EBITDA $ 2,227 $ 2,455 $ 2,413 $ — $ — $ 7,095 Other operating costs and expenses: Depreciation and amortization 199 678 1,322 — 4 2,203 Preopening costs — — 21 — — 21 Corporate expenses — — — — 844 844 Project development and acquisition costs — — — 709 — 709 Stock compensation — — — — 57 57 Operating income (loss) 2,028 1,777 1,070 (709 ) (905 ) 3,261 Non-operating expense: Interest expense, net of amounts capitalized — 40 4 — 1,785 1,829 Non-operating expense — 40 4 — 1,785 1,829 Income (loss) before income taxes 2,028 1,737 1,066 (709 ) (2,690 ) 1,432 Provision (benefit) for income taxes — (61 ) 3 — (545 ) (603 ) Net income (loss) $ 2,028 $ 1,798 $ 1,063 $ (709 ) $ (2,145 ) $ 2,035 For the three months ended September 30, 2014 (In thousands, unaudited) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Revenues, net $ 7,134 $ 13,399 $ 12,111 $ 273 $ — $ 32,917 Adjusted Property EBITDA $ 2,463 $ 1,650 $ 1,736 $ 273 $ — $ 6,122 Other operating costs and expenses: Depreciation and amortization 209 766 1,419 — 4 2,398 Corporate expenses — — — — 936 936 Project development and acquisition costs — — — 72 — 72 Stock compensation — — — — 59 59 Operating income (loss) 2,254 884 317 201 (999 ) 2,657 Non-operating expense: Interest expense, net of amounts capitalized — 62 5 — 1,547 1,614 Settlement loss — — — — 1,700 1,700 Other 21 31 9 — — 61 Non-operating expense 21 93 14 — 3,247 3,375 Income (loss) before income taxes 2,233 791 303 201 (4,246 ) (718 ) Provision (benefit) for income taxes 759 471 103 159 (1,444 ) 48 Net income (loss) $ 1,474 $ 320 $ 200 $ 42 $ (2,802 ) $ (766 ) For the nine months ended September 30, 2015 (In thousands, unaudited) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Revenues, net $ 15,665 $ 35,444 $ 42,967 $ — $ — $ 94,076 Adjusted Property EBITDA $ 3,269 $ 3,251 $ 7,774 $ — $ — $ 14,294 Other operating costs and expenses: Depreciation and amortization 593 2,039 3,582 — 11 6,225 Write-offs, recoveries and asset disposals 80 — — — (446 ) (366 ) Preopening costs — — 134 — — 134 Corporate expenses — — — — 2,964 2,964 Project development and acquisition costs — — — 760 — 760 Stock compensation — — — — 285 285 Operating income (loss) 2,596 1,212 4,058 (760 ) (2,814 ) 4,292 Non-operating expense (income): Interest expense, net of amounts capitalized — 124 13 — 4,739 4,876 Other — (11 ) — — (1 ) (12 ) Non-operating expense — 113 13 — 4,738 4,864 Income (loss) before income taxes 2,596 1,099 4,045 (760 ) (7,552 ) (572 ) Provision (benefit) for income taxes — (61 ) 8 — (372 ) (425 ) Net income (loss) $ 2,596 $ 1,160 $ 4,037 $ (760 ) $ (7,180 ) $ (147 ) For the nine months ended September 30, 2014 (In thousands, unaudited) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Revenues, net $ 16,543 $ 40,188 $ 36,879 $ 1,066 $ — $ 94,676 Adjusted Property EBITDA $ 3,847 $ 2,503 $ 6,009 $ 1,066 $ — $ 13,425 Other operating costs and expenses: Depreciation and amortization 640 2,305 4,207 — 13 7,165 Impairment — 11,547 — — — 11,547 Write-offs, recoveries and asset disposals — 8 13 — 30 51 Corporate expenses — — — — 3,091 3,091 Project development and acquisition costs — — — 407 — 407 Stock compensation — — — — 219 219 Operating income (loss) 3,207 (11,357 ) 1,789 659 (3,353 ) (9,055 ) Non-operating expense: Interest expense, net of amounts capitalized — 157 7 — 4,538 4,702 Settlement loss — — — — 1,700 1,700 Other 20 31 17 — — 68 Non-operating expense 20 188 24 — 6,238 6,470 Income (loss) before income taxes 3,187 (11,545 ) 1,765 659 (9,591 ) (15,525 ) Provision (benefit) for income taxes 1,084 (3,821 ) 600 212 (3,261 ) (5,186 ) Net income (loss) $ 2,103 $ (7,724 ) $ 1,165 $ 447 $ (6,330 ) $ (10,339 ) Selected balance sheet data as of September 30, 2015 and December 31, 2014 follows: As of September 30, 2015 (In thousands, unaudited) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Total assets $ 12,110 $ 37,231 $ 83,035 $ 2,742 $ 11,168 $ 146,286 Property, equipment and capital lease, net 6,220 31,792 61,856 242 24 100,134 Goodwill 1,809 — 14,671 — — 16,480 Liabilities 1,649 10,856 4,048 — 72,098 88,651 As of December 31, 2014 (In thousands) Casino/Resort Operations Northern Nevada Rising Star Casino Resort Silver Slipper Casino & Hotel Development/ Management Corporate Consolidated Total assets $ 12,471 $ 39,101 $ 76,898 $ — $ 12,474 $ 140,944 Property, equipment and capital lease, net 6,656 33,801 54,548 — 35 95,040 Goodwill 1,809 — 14,671 — — 16,480 Liabilities 1,970 11,543 4,182 — 65,752 83,447 |