Third Quarter 2012 Results
For the quarter ended September 30, 2012, the Company reported casino, food and beverage, hotel and other revenue (other than management fees) of $30.1 million, up from $27.4 million in the prior-year period, primarily due to the addition of the Grand Lodge Casino on September 1, 2011 and partially offset by a $1.8 million decline in revenue from the Rising Star Casino Resort.
Operating expenses for the third quarter 2012 were $27.1 million compared to $28.1 million in the prior-year period, primarily due to lower operating costs and gaming taxes at Rising Star Casino Resort, as well as lower amortization expense due to the sale of GEM in March 2012. The Company also recorded $0.3 million of stock compensation expense during the third quarter of 2012 and the prior-year period.
Last year’s third quarter included approximately $6.0 million in management fees from GEM, which the Company sold in March 2012, and $1.1 million of income related to the Company’s Delaware management agreement which expired in August 2011, resulting in no contribution to revenue or income from GEM and Delaware operations in the third quarter of 2012.Operating income for the third quarter 2012 was $3.0 million, compared to operating income of $6.5 million in the prior-year period (excluding $4.9 million in non-cash impairment charges), as contributions from GEM and the Delaware management agreement in the prior-year period were partially offset by additional income from the Grand Lodge Casino and the Buffalo Thunder management agreement. Adjusted EBITDA, as defined below, was $4.7 million versus $6.2 million in the prior-year period; excluding GEM and the Delaware management agreement, adjusted EBITDA in the prior-year period would have been $2.2 million. The Company reported net income attributable to the Company per common share of $0.11 for the three months ended September 30, 2012 versus a loss per share of $0.06 for the prior-year period. Excluding non-cash impairment charges of $4.9 million and rebranding and acquisition costs of $0.2 million for the prior-year quarter, net income attributable to the Company per common share in the third quarter of 2011 would also have been $0.11.