Fourth Quarter 2012 Results
For the quarter ended December 31, 2012, the Company reported casino, food and beverage, and other revenue (other than management fees) of $36.8 million, up from $26.7 million in the prior-year period, primarily due to the addition of the Silver Slipper Casino on October 1, 2012 and partially offset by a $2.6 million decline in revenue from the Rising Star Casino Resort.
Last year’s fourth quarter included approximately $5.0 million in management fees from GEM, which the Company sold in March 2012, resulting in no contribution to revenue or income from GEM in the fourth quarter of 2012.
Operating expenses for the fourth quarter 2012 were $38.6 million compared to $27.6 million in the prior-year period, primarily due to the addition of the Silver Slipper Casino, acquisition-related costs of $1.4 million and severance costs of $0.3 million. The Company also recorded $0.3 million of stock compensation expense during the fourth quarter of 2012 and the prior-year period.Adjusted EBITDA, as defined below, was $3.1 million for the fourth quarter of 2012 versus $4.8 million in the prior-year period; excluding GEM, adjusted EBITDA in the prior-year period would have been $2.4 million. Net loss for the fourth quarter 2012 was $0.8 million, or $0.04 per share, compared to net income of $0.5 million, or $0.03 per common share, in the prior-year period. The decline in the fourth quarter 2012 was primarily due to lack of contributions from GEM due to its sale in March 2012 and acquisition-related costs, partially offset by the addition of operating profits from the Silver Slipper Casino. Excluding Silver Slipper Casino acquisition-related costs of $1.4 million and severance expenses of approximately $0.3 million in the fourth quarter of 2012, net income attributable to the Company per common share in the fourth quarter of 2012 would have been $0.02.