The Company recorded equity in net income and related guaranteed payments from the Delaware operation of $3.3 million, a 35% decrease from the prior year, as the agreement between the Company and Harrington Raceway, Inc. terminated at the end of August 2011.
Operating expenses for the full year ended December 31, 2011 were $84.7 million compared to $14.4 million in the prior year, primarily due to the addition of the Rising Star Casino Resort and the Grand Lodge Casino. The Company also recorded $0.7 million of stock compensation expense for the full year ended December 31, 2011, compared to approximately $17,000 in the prior year.
Operating income for the full year ended December 31, 2011 was $19.2 million, compared to operating income of $23.5 million in the prior year. For 2011, the Company recorded a non-cash goodwill impairment charge of $4.5 million ($2.7 million on an after-tax basis) related to its Stockman’s Casino due to a decline of operating results at Stockman’s resulting from the ongoing weak economic conditions in Northern Nevada and slower than expected improvement from changes made in marketing programs. In addition, the Company recorded a valuation charge against its remaining tribal receivables in the amount of $0.4 million ($0.3 million on an after-tax basis) as a result of slower than expected progress by the Nambe Pueblo in securing financing for its proposed casino facility amid a weak credit environment. Absent these impairment charges and $0.7 million in acquisition-related charges, operating income for 2011 would have been $22.6 million. Adjusted EBITDA, as defined below, was $20.5 million versus $15.2 million in the prior year.
The Company reported net income attributable to the Company per common share of $0.13 and $0.43 for the full years ended December 31, 2011 and 2010, respectively. Exclusive of the impairment charges, acquisition costs and other unusual charges in 2011, net income attributable to the Company per common share for the full year ended December 31, 2011 would have been $0.31.
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