ALPHA HOSPITALITY CORP

CIK:0000906780|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Net revenues	$ 69,540	$ 60,564	$ 187,228	$ 143,829
Operating costs and expenses:
Selling, general and administrative	24,515	19,556	64,573	50,121
Development Projects	151	452	254	12,084
Depreciation and amortization	10,249	9,441	30,804	24,531
Total operating costs and expenses	79,196	78,285	235,382	207,763
Loss from operations	(9,656)	(17,721)	(48,154)	(63,934)
Interest expense	(16,717)	(15,932)	(51,217)	(33,385)
Other income (expense)	(224)	(345)	(1,290)	(438)
Interest income	198	106	597	635
Loss before income taxes	(26,399)	(33,892)	(100,064)	(97,122)
Income tax provision	0	0	0	0
Net loss	(26,399)	(33,892)	(100,064)	(97,122)
Dividends on Series B Preferred Stock	(32)	(32)	(96)	(96)
Net loss applicable to common stockholders	$ (26,431)	$ (33,924)	$ (100,160)	$ (97,218)
Weighted average common shares outstanding, basic (shares)	34,416	32,689	34,405	32,653
Weighted average common shares outstanding, diluted (shares)	34,416	32,689	34,405	32,653
Loss per common share, basic (usd per share)	$ (0.77)	$ (1.04)	$ (2.91)	$ (2.98)
Loss per common share, diluted (usd per share)	$ (0.77)	$ (1.04)	$ (2.91)	$ (2.98)
Unrealized (loss) gain on Interest Rate Cap	$ (38)	$ 39	$ 120	$ 226
Comprehensive loss	(26,437)	(33,853)	(99,944)	(96,896)
Gaming
Revenues:
Gross revenues	55,264	48,032	145,748	116,987
Operating costs and expenses:
Cost of goods and services sold	32,003	36,382	101,850	92,180
Racing
Revenues:
Gross revenues	1,229	1,368	3,728	3,926
Operating costs and expenses:
Cost of goods and services sold	2,877	2,223	7,950	5,948
Food and beverage
Revenues:
Gross revenues	7,351	6,417	22,611	13,536
Operating costs and expenses:
Cost of goods and services sold	6,828	7,526	22,275	17,123
Room
Revenues:
Gross revenues	3,724	2,826	9,137	5,284
Operating costs and expenses:
Cost of goods and services sold	2,552	2,662	7,631	5,622
Other
Revenues:
Gross revenues	1,972	1,921	6,004	4,096
Operating costs and expenses:
Other	$ 21	$ 43	$ 45	$ 154

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows provided by (used in) operating activities:
Net loss	$ (100,064)	$ (97,122)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	26,072	20,325
Amortization of gaming license	4,732	4,206
Amortization of debt issuance costs	4,423	3,143
Amortization of operating leases	1,875
Net provision (recovery) of doubtful accounts	113	(17)
Non-cash interest expense	2,957	334
Loss on disposal of property and equipment	30	0
Stock-based compensation	3,451	6,801
Warrants issued in legal settlement
Accounts receivable	(6,470)	(9,553)
Inventories	(184)	(2,244)
Prepaid expenses and other current assets	722	(2,242)
Accounts payable	(855)	7,509
Accrued expenses and other current liabilities	2,102	26,525
Net cash used in operating activities	(61,096)	(42,335)
Cash flows provided by (used in) investing activities:
Purchase of property and equipment	(10,599)	(932)
Capitalized Development Projects costs	(10,548)	(148,783)
Repayment of equipment loans	0	35,000
Net change in investments for Development Projects	0	94,450
Other	0	13
Net cash used in investing activities	(21,147)	(20,252)
Cash flows provided by (used in) financing activities:
Series B Preferred Stock dividend payment	(96)	(96)
Proceeds from exercise of stock options and option matching rights	0	50
Payment of debt issuance costs and Interest Rate Cap fees	(102)	(598)
Other payments	(106)	(966)
Net cash provided by financing activities	62,466	92,602
Net increase (decrease) in cash, cash equivalents and restricted cash	(19,777)	30,015
Cash, cash equivalents and restricted cash, beginning of period	49,750	53,055
Cash, cash equivalents and restricted cash, end of period	29,973	83,070
Supplemental disclosures of cash flow information:
Cash paid for interest	42,817	31,934
Non-cash investing and financing activities:
Project Development Costs	7,017	27,945
Term Loan Facility, Term B Loan [Member]
Cash flows provided by (used in) financing activities:
Proceeds from issuance of debt	83,655	0
Term Loan Facility, Term A Loan [Member]
Cash flows provided by (used in) financing activities:
Proceeds from issuance of debt	0	70,000
Fifth Third Revolver [Member]
Cash flows provided by (used in) financing activities:
Proceeds from issuance of debt	0	15,000
Proceeds from related party long-term loan	0	20,000
Bangkok Bank Loan [Member]
Cash flows provided by (used in) financing activities:
Proceeds from issuance of debt	0	2,000
Term Loan Facility, Term Loans [Member]
Cash flows provided by (used in) financing activities:
Repayment of loans	(10,469)	(5,750)
Equipment Loans [Member]
Cash flows provided by (used in) financing activities:
Repayment of loans	$ (10,416)	$ (7,038)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 28,962	$ 28,338
Restricted cash	1,011	373
Accounts receivable, net	12,323	5,965
Inventory	1,120	936
Prepaid expenses and other current assets	7,304	8,026
Total current assets	50,720	43,638
Property and equipment, net	679,950	697,679
Capitalized Development Projects costs	20,591	5,724
Restricted cash for Development Projects	0	21,039
Intangible asset, net	40,485	45,216
Operating lease right-of-use assets, net	63,000	0
Other assets	15,636	33,130
Total assets	870,382	846,426
Current liabilities:
Accounts payable	9,039	9,894
Current portion of long-term debt	43,181	48,004
Accrued Development Projects costs	7,017	4,922
Accrued expenses and other current liabilities	33,883	33,678
Total current liabilities	93,120	96,498
Long-term loan, related party, net of debt issuance costs	34,011	30,954
Long-term debt, net of current portion	483,953	495,693
Other long-term liabilities	77,767	11,442
Total liabilities	688,851	634,587
Stockholders’ equity:
Common stock	344	344
Additional paid-in capital	721,354	651,623
Accumulated other comprehensive loss	(99)	(219)
Accumulated deficit	(540,069)	(439,910)
Total stockholders’ equity	181,531	211,839
Total liabilities and stockholders’ equity	870,382	846,426
Series B
Stockholders’ equity:
Preferred stock	1	1
Series F
Stockholders’ equity:
Preferred stock	$ 0	$ 0