Attached files
file | filename |
---|---|
EX-32 - EX-32 - River Rock Entertainment Authority | a10-21472_1ex32.htm |
EX-31.2 - EX-31.2 - River Rock Entertainment Authority | a10-21472_1ex31d2.htm |
EX-31.1 - EX-31.1 - River Rock Entertainment Authority | a10-21472_1ex31d1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q/A
Amendment No. 1
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2010
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
Commission File Number: 333-115186
RIVER ROCK ENTERTAINMENT AUTHORITY
(Exact name of registrant as specified in its charter)
Not Applicable |
|
68-0490898 |
(State or other jurisdiction of |
|
(I.R.S. Employer |
incorporation or organization) |
|
Identification No.) |
3250 Highway 128 East
Geyserville, California 95441
(707) 857-2777
(Address,
including zip code, and telephone number,
including area code, of registrants principal executive offices)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o |
|
Accelerated filer o |
|
|
|
Non-accelerated filer x |
|
Smaller reporting company o |
(Do not check if a smaller reporting company) |
|
|
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
RIVER ROCK ENTERTAINMENT AUTHORITY
EXPLANATORY NOTE
We are filing this Amendment No. 1 on Form 10-Q/A (Form 10-Q/A) to amend our Form 10-Q for the three months ended September 30, 2010. We originally filed our Form 10-Q for the three months ended September 30, 2010 (the Original Filing) on November 12, 2010. We are filing this Form 10-Q/A to correct the following typographical errors on the Balance Sheet for the period ending September 30, 2010, set forth on page 4 of the Original Filing in Part I Financial Information, Item 1 Financial Statements (Unaudited): 1. the title, Condensed Balance Sheets, included a typographical error that reads June 30, 2010 and 2009 which should have been deleted; 2. total current liabilities at September 30, 2010 was $23,907,408 not $24,007,408 as had been previously reported; and 3. total liabilities at September 30, 2010 was $223,542,057 not $223,642,057.
CAUTIONARY STATEMENT
Except for the historical financial information contained herein, the matters discussed in this report on Form 10-Q/A (as well as documents incorporated herein by reference) may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Such forward-looking statements are based upon current expectations that involve risks and uncertainties and include declarations regarding the intent, belief or current expectations of us and our management and may be signified by the words believes, anticipates, plans, expects, intends and similar expressions. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. All forward-looking statements in this document are based on information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements, whether as a result of new information, future events, or otherwise. All discussion in this report should be read in conjunction with our financial statements and the accompanying notes contained in this report.
References in this Form 10-Q/A to the Authority and the Tribe are to the River Rock Entertainment Authority and the Dry Creek Rancheria Band of Pomo Indians, respectively. The terms we, us and our refer to the Authority.
Our key risks are described in our annual report on Form 10-K filed with the Securities and Exchange Commission.
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
(A Governmental Instrumentality of the Dry Creek Rancheria Band of Pomo Indians)
|
|
September 30, 2010 |
|
December 31, 2009 |
|
||
|
|
(Unaudited) |
|
|
|
||
ASSETS |
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
43,653,977 |
|
$ |
31,617,507 |
|
Accounts receivable |
|
34,952 |
|
266,146 |
|
||
Inventories |
|
80,309 |
|
77,643 |
|
||
Prepaid expenses and other current assets |
|
1,299,216 |
|
1,379,133 |
|
||
|
|
|
|
|
|
||
Total current assets |
|
45,068,454 |
|
33,340,429 |
|
||
|
|
|
|
|
|
||
RESTRICTED CASH |
|
4,328,870 |
|
7,097,526 |
|
||
|
|
|
|
|
|
||
CAPITAL ASSETS: |
|
|
|
|
|
||
Buildings and building improvements |
|
132,886,286 |
|
131,361,604 |
|
||
Furniture, fixtures and equipment |
|
33,020,780 |
|
35,102,290 |
|
||
Accumulated depreciation |
|
(63,891,253 |
) |
(60,121,221 |
) |
||
Construction in progress |
|
75,337,956 |
|
59,588,618 |
|
||
|
|
|
|
|
|
||
Capital assets - net |
|
177,353,769 |
|
165,931,291 |
|
||
|
|
|
|
|
|
||
DEPOSITS AND OTHER ASSETS |
|
1,772,584 |
|
1,936,623 |
|
||
|
|
|
|
|
|
||
TOTAL ASSETS |
|
$ |
228,523,677 |
|
$ |
208,305,869 |
|
|
|
|
|
|
|
||
LIABILITIES AND NET ASSETS (DEFICIT) |
|
|
|
|
|
||
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
||
Accounts payable |
|
$ |
3,223,149 |
|
$ |
6,060,663 |
|
Payable to Tribe |
|
7,517,818 |
|
|
|
||
Accrued liabilities |
|
13,166,441 |
|
7,695,373 |
|
||
Current maturities of long-term debt |
|
|
|
492,203 |
|
||
Total current liabilities |
|
23,907,408 |
|
14,248,239 |
|
||
|
|
|
|
|
|
||
LONG-TERM DEBT - net of current maturities |
|
199,634,649 |
|
199,381,712 |
|
||
|
|
|
|
|
|
||
Total long-term liabilities |
|
199,634,649 |
|
199,381,712 |
|
||
|
|
|
|
|
|
||
TOTAL LIABILITIES |
|
223,542,057 |
|
213,629,951 |
|
||
|
|
|
|
|
|
||
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
||
|
|
|
|
|
|
||
NET ASSETS (DEFICIT) |
|
|
|
|
|
||
Invested in capital assets-net of related debt |
|
(22,280,880 |
) |
(33,942,624 |
) |
||
Restricted for capital projects |
|
4,328,870 |
|
7,097,526 |
|
||
Unrestricted |
|
22,933,630 |
|
21,521,016 |
|
||
|
|
|
|
|
|
||
Total net assets (deficit) |
|
4,981,620 |
|
(5,324,082 |
) |
||
|
|
|
|
|
|
||
TOTAL LIABILITIES AND NET ASSETS (DEFICIT) |
|
$ |
228,523,677 |
|
$ |
208,305,869 |
|
The accompanying notes are an integral part of these unaudited interim financial statements.
RIVER ROCK ENTERTAINMENT AUTHORITY
(A Governmental Instrumentality of the Dry Creek Rancheria Band of Pomo Indians)
CONDENSED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (DEFICIT)
(Unaudited)
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
||||
OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Casino |
|
$ |
29,059,197 |
|
$ |
28,151,221 |
|
$ |
91,135,512 |
|
$ |
87,572,755 |
|
Food, beverage, and retail |
|
1,499,183 |
|
1,459,193 |
|
4,422,390 |
|
4,366,065 |
|
||||
Other |
|
274,169 |
|
224,493 |
|
781,441 |
|
686,858 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Gross revenues |
|
30,832,549 |
|
29,834,907 |
|
96,339,343 |
|
92,625,678 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Promotional allowances |
|
(462,355 |
) |
(318,348 |
) |
(1,281,280 |
) |
(1,006,645 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Net revenues |
|
30,370,194 |
|
29,516,559 |
|
95,058,063 |
|
91,619,033 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
||||
Casino |
|
4,225,756 |
|
3,670,167 |
|
12,110,705 |
|
11,767,556 |
|
||||
Food, beverage, and retail |
|
1,914,685 |
|
1,811,574 |
|
5,420,269 |
|
5,576,559 |
|
||||
Selling, general, and administrative |
|
9,944,330 |
|
9,521,985 |
|
30,647,743 |
|
29,419,073 |
|
||||
Depreciation |
|
2,598,240 |
|
2,388,383 |
|
7,392,513 |
|
7,144,404 |
|
||||
Gaming commission and surveillance expense |
|
853,775 |
|
985,703 |
|
2,389,222 |
|
2,901,577 |
|
||||
Compact revenue sharing trust fund |
|
333,750 |
|
333,750 |
|
1,001,250 |
|
1,001,250 |
|
||||
(Gain) on sale of assets |
|
|
|
|
|
|
|
(33,000 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Operating expenses |
|
19,870,536 |
|
18,711,562 |
|
58,961,702 |
|
57,777,419 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
INCOME FROM OPERATIONS |
|
10,499,658 |
|
10,804,997 |
|
36,096,361 |
|
33,841,614 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
NON-OPERATING EXPENSE-Net: |
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
(5,214,736 |
) |
(5,214,781 |
) |
(15,644,208 |
) |
(15,645,267 |
) |
||||
Interest income |
|
19,609 |
|
21,244 |
|
47,485 |
|
53,044 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Non-operating expense-net |
|
(5,195,127 |
) |
(5,193,537 |
) |
(15,596,723 |
) |
(15,592,223 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
INCOME BEFORE DISTRIBUTIONS TO TRIBE |
|
5,304,531 |
|
5,611,460 |
|
20,499,638 |
|
18,249,391 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
DISTRIBUTIONS TO TRIBE |
|
(3,397,978 |
) |
(3,324,979 |
) |
(10,193,936 |
) |
(9,974,938 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
CHANGES IN NET ASSETS |
|
1,906,553 |
|
2,286,481 |
|
10,305,702 |
|
8,274,453 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
NET ASSETS (DEFICIT) -Beginning of period |
|
3,075,067 |
|
(9,681,182 |
) |
(5,324,082 |
) |
(15,669,154 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
NET ASSETS (DEFICIT) -End of period |
|
$ |
4,981,620 |
|
$ |
(7,394,701 |
) |
$ |
4,981,620 |
|
$ |
(7,394,701 |
) |
The accompanying notes are an integral part of these unaudited interim financial statements.
RIVER ROCK ENTERTAINMENT AUTHORITY
(A Governmental Instrumentality of the Dry Creek Rancheria Band of Pomo Indians)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine-Month |
|
||||
|
|
Period Ended |
|
||||
|
|
September 30, |
|
||||
|
|
2010 |
|
2009 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
||
Cash received from gaming winnings and concessions |
|
$ |
95,138,762 |
|
$ |
91,653,393 |
|
Cash paid for salaries and benefits |
|
(20,742,874 |
) |
(21,449,143 |
) |
||
Cash paid to suppliers |
|
(29,931,376 |
) |
(29,253,527 |
) |
||
Cash paid for compact revenue sharing trust fund |
|
(1,001,250 |
) |
(1,001,250 |
) |
||
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
43,463,262 |
|
39,949,473 |
|
||
|
|
|
|
|
|
||
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: |
|
|
|
|
|
||
Payments of debt |
|
(492,203 |
) |
(156,966 |
) |
||
Payments of Offering Cost in Connection with Refinancing of Debt |
|
(515,191 |
) |
|
|
||
Purchases of capital assets |
|
(4,917,130 |
) |
(4,542,366 |
) |
||
Transfers to the Tribe for development costs and slope reinforcement |
|
(8,287,432 |
) |
(8,067,445 |
) |
||
Change in restricted cash |
|
2,768,656 |
|
(5,377 |
) |
||
Interest paid |
|
(9,750,000 |
) |
(9,751,058 |
) |
||
Proceeds from sale of assets |
|
|
|
33,000 |
|
||
Issuance of Short-term Debt to purchase slots |
|
|
|
715,500 |
|
||
Other |
|
(87,041 |
) |
|
|
||
|
|
|
|
|
|
||
Net cash used in capital and related financing activities |
|
(21,280,341 |
) |
(21,774,712 |
) |
||
|
|
|
|
|
|
||
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES: |
|
|
|
|
|
||
Interest Income |
|
47,485 |
|
53,044 |
|
||
|
|
|
|
|
|
||
CASH FLOWS USED IN NON-CAPITAL FINANCING ACTIVITIES: |
|
|
|
|
|
||
|
|
|
|
|
|
||
Distributions to Tribe |
|
(10,193,936 |
) |
(9,974,938 |
) |
||
|
|
|
|
|
|
||
CHANGE IN CASH AND CASH EQUIVALENTS |
|
12,036,470 |
|
8,252,867 |
|
||
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS, Beginning of the period |
|
31,617,507 |
|
27,348,392 |
|
||
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS, End of the period |
|
$ |
43,653,977 |
|
$ |
35,601,259 |
|
The accompanying notes are an integral part of these unaudited interim financial statements.
RIVER ROCK ENTERTAINMENT AUTHORITY
(A Governmental Instrumentality of the Dry Creek Rancheria Band of Pomo Indians)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine-Month |
|
||||
|
|
Period Ended |
|
||||
|
|
September 30, |
|
||||
|
|
2010 |
|
2009 |
|
||
RECONCILIATION OF INCOME FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: |
|
|
|
|
|
||
|
|
|
|
|
|
||
Income From Operations |
|
$ |
36,096,361 |
|
$ |
33,841,614 |
|
|
|
|
|
|
|
||
Adjustments to reconcile operating income to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation |
|
7,392,513 |
|
7,144,404 |
|
||
(Gain) on sale of assets |
|
|
|
(33,000 |
) |
||
Changes in operating assets and liabilities: |
|
|
|
|
|
||
Accounts receivable |
|
231,194 |
|
(179,459 |
) |
||
Inventories |
|
(2,666 |
) |
77,642 |
|
||
Prepaid expenses |
|
79,917 |
|
73,774 |
|
||
Deposit and other assets |
|
|
|
57,708 |
|
||
Accounts payable |
|
(986,037 |
) |
(1,070,907 |
) |
||
Related party payable |
|
55,912 |
|
|
|
||
Accrued liabilities |
|
596,068 |
|
37,697 |
|
||
Total adjustments |
|
7,366,901 |
|
6,107,859 |
|
||
|
|
|
|
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
$ |
43,463,262 |
|
$ |
39,949,473 |
|
|
|
|
|
|
|
||
SUPPLEMENTARY SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: |
|
|
|
|
|
||
|
|
|
|
|
|
||
Acquisition of property and equipment through accounts payable |
|
$ |
727,655 |
|
$ |
|
|
|
|
|
|
|
|
||
Acquisition of property and equipment through transfers to Tribe for development costs |
|
$ |
14,397,678 |
|
$ |
|
|
|
|
|
|
|
|
||
Acquisition of property and equipment through transfers to Tribe for slope reinforcement |
|
$ |
1,351,660 |
|
$ |
|
|
The accompanying notes are an integral part of these unaudited interim financial statements.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS
River Rock Entertainment Authority (the Authority) is a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians (the Tribe), a federally recognized Indian tribe. River Rock Casino (the Casino) is a governmental development project of the Authority. The Casino offers Class III gaming (as defined by the Indian Gaming Regulatory Act of 1988, as amended) on tribal land located in Geyserville, California. The legal authority for slot machines and table games is provided by the Tribes gaming compact with the State of California (the Compact), which was entered into in September 1999 and became effective upon approval by the Secretary of Interior on May 5, 2000. The Compact expires on December 31, 2020.
The Authority was formed as an unincorporated instrumentality of the Tribe on November 5, 2003 pursuant to a reorganization whereby the Tribes gaming business became owned and operated by the Authority. This reorganization was accounted for as a reorganization of entities under common control. Accordingly, after the reorganization, the assets and liabilities of the Casinos operating property were presented by the Authority on a historical-cost basis.
The Authority operates as a separate, wholly owned operating unit of the Tribe and is not a separate legal entity. These financial statements reflect the financial position and activity of the Authority only and do not purport to represent the financial position and activity of the Tribe.
2. BASIS OF PRESENTATION, UNAUDITED INTERIM FINANCIAL STATEMENTS
The unaudited condensed financial statements of the Authority, presented herein are presented on the same basis and can be compared to the audited financial statements reported in the Authoritys 2009 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the SEC). The accompanying condensed balance sheet as of December 31, 2009 has been derived from the audited financial statements included in the Authoritys Annual Report on Form 10-K for the year ended December 31, 2009.
River Rock Entertainment Authority has made its disclosures in accordance with accounting principles generally accepted in the United States of America as they apply to interim reporting, but condensed or omitted certain information and disclosures normally included in notes to financial statements in accordance with the SECs rules and regulations. The unaudited condensed financial statements should be read in conjunction with the financial statements and the notes thereto in River Rock Entertainment Authoritys Annual Report on Form 10-K for the year ended December 31, 2009.
In the opinion of the Authoritys management, the accompanying unaudited interim condensed financial statements contain all adjustments (consisting of normal recurring adjustments) to fairly present the Authoritys condensed financial position as of September 30, 2010 and the condensed statements of revenues, expenses and changes in net assets (deficit) for the three and nine month periods ended September 30, 2010 and 2009, and condensed statements of cash flows for the nine months ended September 30, 2010 and 2009, as applicable. The condensed statements of revenues, expenses and changes in net assets (deficit) and condensed cash flows for all periods presented are not necessarily indicative of the results of operations or cash flows expected for the year or any other period.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting StandardsThe Authority prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) applicable to State and local government agencies and, as such, the Authority is accounted for as a proprietary fund. The financial statements presented are prepared on the accrual basis of accounting from the accounts and financial transactions of the Authority. GAAP requires the Authority to apply all applicable pronouncements of the Governmental Accounting Standards Board (GASB). The Authority is also required to follow the Accounting Standards Codification issued by the Financial Accounting Standards Board (FASB) for topics issued on or before November 30, 1989, unless those topics conflict with or contradict GASB pronouncements. The Authority is given the option whether to apply the FASB topics issued after November 30, 1989, except for those that conflict
with or contradict GASB pronouncements. Accordingly, the Authority has elected to implement non-conflicting FASB topics issued after November 30, 1989.
There are differences between financial statements prepared in accordance with GASB pronouncements and those prepared in accordance with the FASB Codification. The statements of revenues, expenses and changes in net assets (deficit) are a combined statement under GASB pronouncements. The FASB Codification allows a statement of income or operations and a separate statement of owners or shareholders equity (deficit), which is where distributions to owners would be presented. The amount shown as income before distributions to Tribe would be the most comparable amount to net income computed under the FASB Codification. The Authority is a separate enterprise fund of the Tribe, a governmental entity, and as such there is no owners or shareholders equity (deficit) as traditionally represented under the FASB Codification. The most comparable measure of owners equity (deficit) is presented on the Authoritys balance sheet as net assets (deficit).
During the third quarter of 2009, the Authority adopted the new Accounting Standards Codification (ASC) as issued by the FASB. The ASC has become the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The ASC is not intended to change or alter existing GAAP. The adoption of the ASC did not have a material impact on the Authoritys financial statements.
FASB has issued Accounting Standards Update (ASU) No. 2010-06, Fair Value Measurements and Disclosures (Topic 820) - Improving Disclosures about Fair Value Measurements. This ASU requires certain new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASBs objective is to improve these disclosures and, thus, increase the transparency in financial reporting. Specifically, ASU 2010-06 amends Codification Subtopic 820-10 to now require: (A) A reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and (B) In the reconciliation for fair value measurements using significant unobservable inputs, Level 3, a reporting entity should present separately information about purchases, sales, issuances, and settlements. In addition, ASU 2010-06 clarifies the requirements of the following existing disclosures: (A) For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and (B) A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. As this update is only disclosure-related, it does not have an impact on the Authoritys financial position and results of revenues, expenses and changes in net assets (deficit).
FASB has issued ASU No. 2010-16, Entertainment Casinos (Topic 924) Accruals for Casino Jackpot Liabilities. This ASU addresses the accounting for casino base jackpot liabilities, specifically, whether an entity accrues liabilities for a base jackpot before it is won if the entity is not required to award the base jackpot. This ASU clarifies that an entity should not accrue jackpot liabilities (or portions thereof) before a jackpot is won if the entity can avoid paying that jackpot. Jackpots should be accrued and charged to revenue when an entity has the obligation to pay the jackpot. This guidance applies to both base and progressive jackpots. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this new standard is not expected to have any effect on the Authoritys financial position or result of operations.
Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include legal and other contingencies, obligations under players club programs and useful lives and recoverability of long-lived assets. Actual results could differ from these estimates.
Cash and Cash Equivalents The Authority considers all highly liquid investments with a maturity of three months or less at date of purchase as cash equivalents. The carrying amount of cash and cash equivalents approximates its fair value.
Cash and cash equivalents include cash on hand, cash on deposit with banks and highly liquid investments. The Federal Deposit Insurance Corporation (FDIC) has insured $250,000 of the cash on deposit at an FDIC member bank. The Authority believes that there is little risk of loss regarding the uninsured amounts of cash and cash equivalents on deposit with the banks.
Restricted Cash Restricted cash consists of net proceeds from the Notes Offering and investment earnings thereon set aside in construction financing accounts, for construction costs for related infrastructure improvements and construction contingencies. It also includes funds that are reserved for construction contingencies and the funds for the development of the Dugan Property, an approximately 18-acre parcel of land adjacent to the Tribes reservation. The restricted cash is held in escrow accounts that can only be used for authorized construction disbursements until the related projects are completed. These escrow accounts are invested in money market accounts, which generate interest on a monthly basis. The FDIC has insured $250,000 of this balance. The Authority believes that there is little risk of loss regarding the uninsured amounts of restricted cash held in the escrow accounts. Restricted cash was $4,328,870 and $7,097,526 at September 30, 2010 and December 31, 2009, respectively. As of September 30, 2010, restricted cash includes funds available for land development, more specifically the emergency access road which will be used to further develop either the Dugan Road or an alternate access road. On July 30, 2010, U.S. Bank National Association, as trustee and collateral agent for the Senior Notes, transferred $2,682,699 from restricted accounts held by U.S. Bank to the Authoritys unrestricted operating account which is net of related fees of $85,957. The transferred amount represents the remaining balances of proceeds from the sale of the Senior Notes and investment earnings thereon that had been held by U.S. Bank in a restricted construction financing account and a construction escrow account less all fees and expenses owed to U.S. Bank to date.
Inventories Inventories, consisting principally of gaming supplies and food and beverage items, are stated at the lower of cost (first-in, first-out) or market value.
Capital Assets Capital Assets are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows:
Buildings and improvements: |
|
5-21 years |
|
Furniture, fixtures and equipment: |
|
5 years |
|
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized.
Major outlays of capital assets and improvements are capitalized as construction-in-progress as projects are constructed.
Evaluation of Long-Lived Assets Accounting pronouncement GASB No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, established accounting and financial reporting standards for impairment of capital assets. The Authoritys capital assets include building and improvements, furniture, fixtures and equipment. A capital asset is considered impaired if both the decline in service utility of the capital asset is large in magnitude and the event or change in circumstances is outside the normal life cycle of the capital asset. The Authority is required to evaluate prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. Common indicators of impairment include evidence of physical damage where restoration efforts are needed to restore service utility, enactment or approval of laws or regulations setting standards that the capital asset would not be able to meet, technological development or evidence of obsolescence, a change in the manner or expected duration of use of a capital asset or construction stoppage. This Statement will require the Authority to report the effects of capital asset impairment in its financial statements when they occur, rather than as part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset, and to account for insurance recoveries in the same manner. The Authoritys management has determined that no impairment of capital assets currently exists.
Capitalized interest The interest cost associated with major development and construction projects is capitalized and included in the cost of the asset. Capitalization of interest ceases when the project is substantially complete or when
development activity is suspended. The Authority did not capitalize any interest for the nine months ended September 30, 2010 and 2009.
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were $1,299,216 and $1,379,133 as of September 30, 2010 and December 31, 2009, respectively, which includes prepaid insurance, prepaid uniforms and prepaid supplies.
Deposits and Other Assets As of September 30, 2010 and December 31, 2009, respectively, deposits and other assets mainly represent $1,109,176 and $1,875,448 in unamortized legal fees and other issuance costs related to the issuance of the Authoritys 9 ¾% Senior Notes due 2011 (the Senior Notes) under the Indenture, dated November 7, 2003 (the Indenture) and $515,191 and $0 in costs incurred in connection with efforts to refinance the Senior Notes.
Accrued Liabilities Accrued liabilities consist of accrued interest, accrued payroll and other accrued liabilities.
Progressive Jackpots Liabilities The Casino has a number of progressive jackpot slot machines. As coins are played, the amount available to win increases and will be paid out when the appropriate winning combination occurs. The progressive jackpots are recorded as a liability, with a corresponding charge against gaming revenue, of $1,415,498 and $1,587,748 as of September 30, 2010 and December 31, 2009, respectively. Also, the Casino has available for customer play wide area progressive slot machines that are interlinked with other unrelated casinos. These machines are monitored and maintained by the vendor and the Casino is required to remit a percentage of coin-in to the respective vendor. The charge is recorded against revenue for the portion of the fee applied to the wide area progressive jackpots. Amounts recorded against revenue for the portion of the fee applied to the wide area progressive jackpots were approximately $308,594 and $325,069 for the three months ended September 30, 2010 and 2009, respectively; and approximately $800,724 and $1,027,039 for the nine months ended September 30, 2010 and 2009. All other administrative charges are recorded in operating expenses.
Accrued Slot Players Club The Authority has recorded a liability related to free play, prizes and cash incentives earned by the members of our Players Club. The Authority has recorded the estimated redemption of the liability as contra-revenue in the accompanying statements of revenues, expenses and changes in net assets (deficit).
Contingencies The Authority assesses its exposure to loss contingencies, including legal matters, and provides for an exposure if it is judged to be probable and estimable. If the actual loss from a contingency differs from managements estimate, operating results could be materially impacted. As of September 30, 2010, management determined that no accruals for claims and legal actions are required. If circumstances surrounding claims and legal actions change materially, the addition of accruals for such items in future periods may be required.
Authority net assets Investments in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Invested in capital assets, net of related debt, excludes unspent debt proceeds. Restricted net assets represent amounts that are appropriated or are legally segregated for a specific purpose. The Authoritys net assets are reported as restricted when there are limitations imposed on its use, either through the enabling legislation adopted by the Authority or through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
Casino RevenuesThe Authority recognizes as casino revenue the net win from gaming activities, which is the difference between gaming wins and losses. Casino revenues are net of accruals for anticipated payouts of progressive slot jackpots and certain player incentives, when earned by the customer.
Food, Beverage and Retail Revenues The Authority recognizes as food, beverage and retail revenues the proceeds from its food, beverage and gift shop sales. The Authority continues to distribute non-alcoholic beverages without cost in the gaming area for playing guests. In December 2009, the Authority replaced the gift shop with vending machines. The vending machines are owned and operated by a third party. The Authority receives a commission from the vending machine sales and such commission are recorded as Other Revenues.
Other Revenues Other revenues are comprised of commissions on ATM and vending machine transactions.
Promotional Allowances The retail value of food and beverages provided to customers without charge or at a discount is included in food, beverage and retail revenues and then deducted as promotional allowances. Such amounts that are included in food, beverage, and retail revenues for the three months ended September 30, 2010 and 2009 were $462,355 and $318,348, respectively. The amounts included in food, beverage and retail revenues for the nine months ended September 30, 2010 and 2009 were $1,281,280 and $1,006,645, respectively.
Food and Beverage Expenses Food and beverage expenses include cost of goods sold related to providing food and beverage to our customers. The estimated costs of providing complimentary products and services are reflected in Casino expenses.
Advertising Costs Advertising costs are expensed as incurred or when an advertisement is first aired or circulated. Advertising costs included in selling, general and administrative expenses for the three months ended September 30, 2010 and 2009 were $1,120,697 and $1,097,397, respectively. Advertising costs for the nine months ended September 30, 2010 and 2009 were $4,096,326 and $3,166,096, respectively.
Gaming Commission and Surveillance Expenses The Authority pays for various expenses for the Tribal Gaming Commission and Surveillance. Such expenses include salaries and wages and related benefits for Regulatory, Surveillance and office staff, training, audit fees, background checks and licensing.
Income Taxes As a governmental instrumentality of the Tribe, the Authority is a non-taxable entity for purposes of federal and state income taxes.
Distributions to Tribe Distributions to Tribe are made up of permitted and service payments under the covenants of the Indenture. They are included in the Statements of Revenues, Expenses and Changes in Net Assets (deficit) as distributions to Tribe allowed pursuant to the Indenture. Total distributions to the Tribe for the three months ended September 30, 2010 and 2009 were $3,397,978 and $3,324,979, respectively. Total distributions to the Tribe for the nine month ended September 30, 2010 and 2009 were $10,193,936 and $9,974,938, respectively.
Reclassifications Certain prior period balances in the Statements of Cash Flows, have been reclassified to be consistent with current period presentation with no impact on cash provided by operating activities, cash used in capital and related financing activities, cash provided by investing activities or cash used in non-capital financing activities. In addition, $216,947 and $686,772 of promotional allowances for the three and nine month periods ended September 30, 2009 was reclassified from selling, general and administrative expenses to promotional allowances with no impact on income from operations.
4. CERTAIN RISKS AND UNCERTAINTIES
The Authoritys operations are dependent on the continued licensing and qualification of the Authority by the Tribal Gaming Commission. Such licensing and qualification are reviewed periodically by the Tribal Gaming Commission and regulatory agencies of the State of California. The Authority believes that no events or circumstances have arisen that would have an adverse effect on the Casinos ability to continue its licensing and qualification by the Tribal Gaming Commission or regulatory agencies of the State of California to operate the Authority.
5. RELATED PARTIES
The Casino has been constructed on federal land beneficially owned by the Tribe. The Authority does not pay the Tribe for the use of the land.
The Authority pays for various expenses for the following departments operated by the Tribe: Tribal Gaming Commission including surveillance, and plant operations and human resources. These departmental expenses include but are not limited to payroll and related expenses, legal, and other operational expenses. In April 2010, the Authority took over the operation of the warehouse from the Tribe.
Total amounts billed by the Tribe to the Casino for these departments, excluding Tribal Gaming Commission and surveillance, for the three months ended September 30, 2010 and 2009 were $999,700 and $950,706 respectively. As of September 30, 2010, $55,912 is accrued in Payable to Tribe. These amounts are recorded as a component of selling, general and administrative expenses. The expenses for these departments for the nine months ending September 30, 2010 and 2009 were $2,929,983 and $2,808,488, respectively.
The Authority pays for various expenses for the Tribal Gaming Commission and surveillance. Tribal Gaming Commission and surveillance expenses are recorded in Gaming Commission and surveillance expenses on the Statements of Revenues, Expenses and Changes in Net Assets (deficit). Gaming Commission and surveillance expenses for the three months ended September 30, 2010 and 2009 were $853,775 and $985,703, respectively. Gaming Commission and surveillance expenses for the nine months ended September 30, 2010 and 2009 were $2,389,222 and $2,901,577.
The Tribe incurred approximately $67 million in total expenses on the Authoritys behalf for master planning of the proposed resort and infrastructure improvements on the reservation that benefits the Casino, of which almost all of such expenditures were incurred prior to 2009 before the construction was suspended. The Authority reimbursed the Tribe approximately $52.4 million through 2009. On January 8, 2010, the Authoritys Board of Directors authorized the reimbursement of the Tribe in an amount not to exceed approximately $14.9 million of construction costs. The approval included a payment reimbursement schedule to the Tribe of $2,700,000 on January 18, 2010, $400,000 from February 1, 2010 through April 1, 2010 and $700,000 monthly thereafter without exceeding $14.9 million. The Authority reimbursed the Tribe $2.1 million for the three months ended September 30, 2010 and $7.4 million for the nine months ended September 30, 2010. The remaining $7.0 million is included in Payable to Tribe in the Condensed Balance Sheet at September 30, 2010. When the reimbursement payments are made or accrued, the related amounts are capitalized and reflected in construction-in-progress. The reimbursed costs consist of engineering and design costs related to the proposed master plan development, including electrical, HVAC, landscaping, interior design services and consulting fees for legal, branding, feasibility, and public relations services, as well as the construction costs of the lower Acorn Road.
The Tribe incurred expenses related to the reinforcement of the slope on the northwest side of the Reservation near the Casino. On May 19, 2010, the Authoritys Board of Directors authorized the reimbursement to the Tribe in an amount not to exceed $0.9 and an additional $2.4 million was approved in August 2010. Subsequently, on October 13, 2010, the Authoritys Board of Directors authorized the reimbursement to the Tribe not to exceed $3.5 million. As of September 30, 2010, the Casino has incurred approximately $1.4 million in construction costs of which $0.5 million is accrued in Payable to Tribe. We currently expect that the cost of this project will be approximately $3.5 million.
The Authority reserved 50 recreational vehicle spaces and 10 campsite spaces at Alexander RV Park and Campground for casino guests. Alexander RV Park and Campground is a wholly owned subsidiary of the Tribe. The cost of reserving the parking spaces and campsite spaces was $72,930 and $69,458 for the three months ended September 30, 2010 and 2009, respectively. The cost of reserving the parking spaces and campsite spaces was $211,846 and $201,758 for the nine months ended September 30, 2010 and 2009, respectively.
6. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash consisted of the following as of September 30, 2010 and December 31, 2009:
|
|
September 30, |
|
December 31, |
|
||
|
|
2010 |
|
2009 |
|
||
|
|
(Unaudited) |
|
|
|
||
|
|
|
|
|
|
||
Operating accounts |
|
$ |
12,740,088 |
|
$ |
16,281,764 |
|
Money market accounts* |
|
26,137,196 |
|
10,095,039 |
|
||
Cash on hand |
|
4,776,693 |
|
5,240,704 |
|
||
|
|
|
|
|
|
||
Cash and cash equivalents |
|
43,653,977 |
|
31,617,507 |
|
||
Restricted cash |
|
4,328,870 |
|
7,097,526 |
|
||
|
|
|
|
|
|
||
Total cash and cash equivalents and restricted cash |
|
$ |
47,982,847 |
|
$ |
38,715,033 |
|
*Represents level 1 fair value measurement, quoted prices in active markets for identical items.
Deposits Custodial credit risk is the risk that in the event of a bank failure, the Authoritys deposits (cash in checking, sweep, and money market accounts held with its third-party administrator) may not be returned to it. The Authority does not have a deposit policy for custodial credit risk. As of September 30, 2010 and December 31, 2009, approximately $42,627,805 and $34,009,525, respectively, of the Authoritys bank balance for deposits of $43,127,805 and $34,580,666, respectively, were exposed to custodial credit risk, as it was uninsured and uncollateralized.
7. CAPITAL ASSETS
Capital Assets at September 30, 2010 and December 31, 2009 consisted of the following:
|
|
Balance, as of |
|
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
|
|
|
|
|
Transfers |
|
Balance, as of |
|
|||||
|
|
2009 |
|
Additions |
|
Dispositions |
|
In(Out) |
|
Sept 30, 2010 |
|
|||||
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|||||
Building and improvements |
|
$ |
131,361,604 |
|
$ |
1,176,533 |
|
$ |
|
|
$ |
348,149 |
|
$ |
132,886,286 |
|
Furniture, fixtures and equipment |
|
35,102,290 |
|
1,475,124 |
|
(3,622,481 |
) |
65,847 |
|
33,020,780 |
|
|||||
Less accumulated depreciation |
|
(60,121,221 |
) |
(7,392,513 |
) |
3,622,481 |
|
|
|
(63,891,253 |
) |
|||||
|
|
106,342,673 |
|
(4,740,856 |
) |
|
|
413,996 |
|
102,015,813 |
|
|||||
Construction in Progress |
|
59,588,618 |
|
16,163,334 |
|
|
|
(413,996 |
) |
75,337,956 |
|
|||||
Capital assets - net |
|
$ |
165,931,291 |
|
$ |
11,422,478 |
|
$ |
|
|
$ |
|
|
$ |
177,353,769 |
|
Construction in progress consists of payments to the Tribe and various vendors related to the Authoritys master plan development and land improvements. Substantially all of the Authoritys personal property is pledged as collateral to secure its debt.
8. ACCRUED LIABILITIES
Accrued liabilities consisted of the following as of September 30, 2010 and December 31, 2009:
|
|
September 30, |
|
December 31, |
|
||
|
|
2010 |
|
2009 |
|
||
|
|
(Unaudited) |
|
|
|
||
|
|
|
|
|
|
||
Accrued in-house progressive slot jackpots |
|
$ |
1,415,498 |
|
$ |
1,587,748 |
|
Accrued payroll and related benefits |
|
2,414,371 |
|
1,514,557 |
|
||
Accrued interest |
|
8,125,000 |
|
3,250,000 |
|
||
Accrued other expenses |
|
1,211,572 |
|
1,343,068 |
|
||
Total accrued liabilities |
|
$ |
13,166,441 |
|
$ |
7,695,373 |
|
9. LONG-TERM DEBT
Long-term debt consisted of the following as of September 30, 2010 and December 31, 2009:
|
|
September 30, |
|
December 31, |
|
||
|
|
2010 |
|
2009 |
|
||
|
|
(Unaudited) |
|
|
|
||
|
|
|
|
|
|
||
9-3/4% Senior Notes, net of unamortized issue discount of $365,351 and $618,288. Due November 2011 |
|
$ |
199,634,649 |
|
$ |
199,381,712 |
|
Vehicle and Slot Notes |
|
|
|
492,203 |
|
||
|
|
|
|
|
|
||
Total Long-Term Debt |
|
199,634,649 |
|
199,873,915 |
|
||
Less: current portion |
|
|
|
(492,203 |
) |
||
|
|
|
|
|
|
||
Total long-term-debt - net of current maturities |
|
$ |
199,634,649 |
|
$ |
199,381,712 |
|
On November 7, 2003, the Authority issued the Senior Notes. The proceeds were utilized to fund an expansion project, which included three parking structures, related infrastructure improvements, repayment of various debt and advances and fund payment of various accruals and payables, as well as to increase cash on hand. The proceeds were also utilized to fund a land purchase and settle litigation. The Senior Notes are collateralized by a first priority pledge of the Authoritys revenue and substantially all of the existing and future tangible and intangible personal property. The Authority may redeem the Senior Notes, in whole or in part, at a redemption price that is at a premium to the principal amount of the Senior Notes (expressed as percentages of principal amount), plus accrued and unpaid interest. Interest on the Senior Notes is due semi-annually in May and November.
The Authoritys long-term debt is recorded at an amortized historical cost basis. The fair value of the Senior Notes was approximately $183.1 million as of September 30, 2010 based on level one inputs, quoted prices in active markets.
10. EMPLOYEE BENEFIT PLAN
The Authority participates in a 401(k) plan, a retirement plan (the Plan), which is qualified under Section 401(k) of the Internal Revenue Code. The Plan is a defined contribution plan administered by an insurance company and is available to all eligible employees of the Casino who have attained age 21 and have at least three months of eligible service as defined in the Plan. The Plan participants may contribute up to 50 percent of their eligible pretax compensation, subject to legal
limitations. The Authority, at its discretion, will make matching contributions. Any forfeiture due to employee terminations reduces future Casino contributions. Participants become vested in employer contributions, as well as any earnings thereon, over a three-year period at the rate of 30 percent, 60 percent and 100 percent at the end of each year, respectively.
Employee contributions to the Plan were $165,210 and $148,211 for the three months ended September 30, 2010, and 2009, respectively; and $429,118 and $469,444 for the nine months ended September 30, 2010 and 2009, respectively.
The Casino made matching contributions to the Plan of $87,888 and $0 during the three months ended September 30, 2010 and 2009, respectively; and $166,631 and $41,719 for the nine months ended September 30, 2010 and 2009, respectively. The Casino temporarily suspended its matching contribution in January 2009 and reinstated it in March 2010.
11. RISK MANAGEMENT
The Casino is exposed to various risks of loss related to workers compensation and torts; theft of, damage to or destruction of assets; and errors or omissions. The Casino has purchased commercial insurance policies for said risks. There has been no significant reduction of insurance coverage, and settlements have not exceeded coverage in the past three years. The Casino retains the risk of dental claims subject to individual limits of $1,500 per enrolled employee and covered dependent.
12. LEASES
The Authority extended its operating lease of the sprung structure that houses the Casino operations. The amended lease expires on June 17, 2012. The agreement calls for monthly payments of $25,395. Total rental expense was $76,248 and $76,185 for the three months ended September 30, 2010 and 2009, respectively. Total rental expense was $228,555 and $282,730 for the nine months ended September 30, 2010 and 2009, respectively.
Other operating leases include leases for office spaces and copiers.
13. LEGAL MATTERS
The Authority is involved in litigation and disputes from time to time in the ordinary course of business with vendors and patrons. The Authority believes that the aggregate liability, if any, arising from such litigation or disputes will not have a material adverse effect on its results of operations, financial condition or cash flows.
14. COMPACT REVENUE SHARING TRUST FUND
Under the Compact as entered into with the State of California in September 1999, the Tribe must pay annual license fees of $900-$4,350 per Class III gaming device, based on the number of gaming device licenses approved by the state gaming commission. The Compact does not require a license for the first 350 Class III gaming devices in use and does not require a license fee for an additional 350 machines. Payments are due on a quarterly basis and are remitted into a state revenue sharing trust fund. License fees expense totaled $333,750 for each of the three months ended September 30, 2010 and 2009. License fees expense totaled $1,001,250 for each of the nine months ended September 30, 2010 and 2009.
15. COMMITMENTS AND CONTINGENCIES
The Authority is an unincorporated instrumentality of the Tribe formed pursuant to an adopted law of the Tribe. While the Authority is not a separate corporation or other legal entity distinct from the Tribe, this tribal law allows the Authority to own and operate its business. This tribal law also provides that the Authoritys obligations and other liabilities are not those of the Tribe and that the obligations and liabilities of the Tribe are not those of the Authority. This law is untested and generally has no direct counterpart in other areas of the law. If this law should prove to be ineffective at limiting the Authoritys liability, the Authoritys business and assets could become subject to claims asserted against the Tribe or its assets.
On March 18, 2008, the Tribe and the Sonoma County Board of Supervisors entered into a memorandum of agreement (MOA) which settled several long-standing legal disputes between Sonoma County (the County) and the Tribe and provides a binding framework for resolving future disputes. Pursuant to the MOA, the Tribe has agreed to pay the County up to $75 million in mitigation fees over a 12 year period to offset impacts of the potential losses and impacts to the County resulting from the Tribes various ongoing projects and is intended to support the services being provided by the County. In addition to the mitigation fees, the Tribe will pay a fee in lieu of the Countys Transient Occupancy Tax in the amount of 9% of the rental collected on occupied hotel rooms, to be paid quarterly and continuing for five years after the later to occur of the termination of the MOA, as may be extended, or the Tribes Compact with the State (which is now terminable in 2020 at the earliest), which fees may be applied to programs and services that serve to promote tourism in the County. Such in lieu fees could total as much as $25 million during the term of the MOA. The Tribe has not made any determinations to seek reimbursement or direct payment from the Authority of amounts due to the County pursuant to the MOA.
A casino renovation was completed as part of ongoing efforts to improve the overall appearance and appeal of the Casino to meet customer requirements. In order to appeal more specifically to higher end players, management moved the Poker tables to an open section of the Casino floor and converted the current poker room into a high-limit room offering high-limit slot machines and table games, comfortable seating, a bar with food and beverage service, and a private restroom. The project was completed by late September 2010.
The Exhibit Index filed herewith is incorporated herein by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: November 18, 2010 |
|
RIVER ROCK ENTERTAINMENT AUTHORITY |
|
|
|
(Registrant) |
|
|
|
|
|
|
|
By: |
/s/ David Fendrick |
|
|
|
David Fendrick, |
|
|
|
Chief Executive Officer |
Exhibit No. |
|
Exhibit |
31.1 |
|
Certification by David Fendrick, Chief Executive Officer, pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) (filed herewith) |
|
|
|
31.2 |
|
Certification by Joseph R. Callahan, Chief Financial Officer, pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) (filed herewith) |
|
|
|
32* |
|
Certification by David Fendrick, Chief Executive Officer, and by Joseph R. Callahan, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) |
* This certification is being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act and is not to be incorporated by reference into any filing of River Rock Entertainment Authority whether made before or after the date hereof, regardless of any general incorporation language in such filing.