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Merger and Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Number of Shares Common Stock Issued with Merger

The total number of shares of the Company’s common stock issued in connection with the Merger was as follows:

Pre-Merger

Value of Lakes

Lakes %

Pre-Merger

Value of Sartini

Gaming

Sartini

Gaming %

Total Post-Closing

Shares⁽¹⁾

Total Shares Issued

in Connection

with Merger⁽²⁾

134,615,083

62.6%

80,523,753

37.4%

22,592,260

8,453,565

(1)

Calculated as the sum of the number of shares of the Company’s common stock outstanding immediately after the Merger (on a fully diluted basis, including shares issuable upon the exercise of outstanding in-the-money stock options) and the number of shares of the Company’s common stock issued pursuant to the post-closing adjustment provisions of the Merger Agreement.

(2)	Includes 457,172 shares of the Company’s common stock that were issued to certain former holders of warrants issued by a subsidiary of Sartini Gaming upon the closing of the Merger.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Allocation

The final allocation of the $77.4 million purchase price to the assets acquired and liabilities assumed as of July 31, 2015 was as follows (in thousands):

	Amount
Cash	$	25,539
Other current assets		14,830
Property and equipment		83,173
Intangible assets		80,460
Goodwill		97,462
Current liabilities		(13,245	)
Warrant liability		(3,435	)
Debt		(190,587	)
Deferred tax liability		(14,576	)
Other long-term liabilities		(2,217	)
Total purchase price	$	77,404

Summary of Property and Equipment Acquired

The amounts assigned to property and equipment by category are summarized in the table below (in thousands):

	Remaining Useful Life (Years)	Amount Assigned
Land	Not applicable	$	12,470
Land improvements	5-14		4,030
Building and improvements	19-25		21,310
Leasehold improvements	1-28		20,793
Furniture, fixtures and equipment	1-11		21,935
Construction in process	Not applicable		2,635
Total property and equipment		$	83,173

Summary of Intangible Assets Acquired

The amounts assigned to intangible assets by category as of July 31, 2015 are summarized in the table below (in thousands):

	Remaining Useful Life (Years)	Amount Assigned
Trade names	Indefinite	$	12,200
Player relationships	8-14		7,300
Customer relationships	13-16		59,200
Gaming licenses	Indefinite		960
Other intangible assets	2-10		800
Total intangible assets		$	80,460

Schedule of Finite-Lived Intangible Assets, Estimated Future Amortization Expense

Estimated future amortization expense related to intangible assets, which includes acquired intangible assets recorded on a preliminary basis, is as follows (in thousands):

		2017				2018				2019				2020				2021				Thereafter
Estimated amortization expense		$	7,698			$	7,610			$	7,610			$	7,463			$	6,481			$	48,471

Summary of Unaudited Pro Forma Combined Financial Information

Unaudited Pro Forma Combined Financial Information

The following unaudited pro forma combined financial information for the years ended December 31, 2015 and December 28, 2014 are presented as if the Merger had occurred at the beginning of each period presented:

	Twelve Months Ended
	December 31, 2015		December 28, 2014
	(In thousands, except per share data)
Pro forma combined net revenues	$	345,437	$	335,631
Pro forma combined net income (loss)		27,645		(38,426	)

Pro forma combined net income (loss) per share:
Basic	$	1.27	$	(1.76	)
Diluted	$	1.25	$	(1.76	)

Weighted average common shares outstanding:
Basic		21,848		21,833
Diluted		22,073		21,833

Sartini Gaming [Member]

Schedule of Finite-Lived Intangible Assets, Estimated Future Amortization Expense

Estimated future amortization expense related to the finite-lived intangible assets acquired in the Merger is as follows (in thousands):

		2017				2018				2019				2020				2021				Thereafter
Estimated amortization expense		$	4,965			$	4,877			$	4,877			$	4,877			$	4,877			$	35,705