UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~November~~May 3031, ~~2015~~2016



¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to

Commission File No. 0-52734

NGA HOLDCO, LLC

(Exact name of registrant as specified in its charter)



Nevada		20-8349236
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

21 Waterway Avenue, Suite 150

The Woodlands, TX 77380

(Address of principal executive offices)

Telephone: (713) 559-7400

(Registrant’s telephone number, including area code)

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 ý No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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 ý No ¨

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 the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):



Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý

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NGA HOLDCO, LLC

FORM 10-Q

INDEX

		Page No.
	Forward-Looking Statements	3
PART I. FINANCIAL INFORMATION		34
Item 1.	Financial Statements
	Consolidated Balance Sheets	34
	Consolidated Statements of Operations	45
	Consolidated Statements of Cash Flows	56
	Notes to Consolidated Financial Statements	67
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1211
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1712
Item 4.	Controls and Procedures	1712
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	1712
Item 1A.	Risk Factors	2012
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1713
Item 3.	Defaults Upon Senior Securities	1713
Item 4.	Mine Safety Disclosures	1713
Item 5.	Other Information	1713
Item 6.	Exhibits	1813
SIGNATURES		1813

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Forward-Looking Statements

In addition to historical information, this Form 10-Q contains forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from those contained in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the Notes to Consolidated Financial Statements of NGA Holdco, LLC included in Part I., Item 1. of this report. When used in this report, the words “expects,” “intends,” “anticipates,” “should,” “believes,” “will,” “plans,” “estimates,” “may,” “seeks,” and similar expressions are generally intended to identify forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this Form 10-Q. We undertake no obligation to publicly release any revisions to the forward-looking statements in this report after the date hereof. You should carefully review the information in this Form10-Q and the previously filed Form 10-K/A for the year ended February 2829, ~~2015~~2016, and the information included from time to time in ~~our~~any future reports ~~filed~~we file with the Securities and Exchange Commission.

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PART I

FINANCIAL INFORMATION



Item 1.	Financial Statements.

NGA HOLDCO, LLC

CONSOLIDATED BALANCE SHEETS

	November 30, 2015			February 28, 2015
	May 31, 2016			February 29, 2016
ASSETS
Current assets, consisting of cash	$	5,841,015		$	4,306,170
Current assets:
Cash	$	1,406,785		$	770,927
Marketable securities, Eldorado Resorts, Inc.	—			35,584,769
Note receivable, Newport Funds	—			4,900,000
Income tax receivable	—			91,080
	1,406,785			41,346,776
Other assets:
Marketable securities, Eldorado Resorts, Inc.	39,054,964			18,540,023
Deferred federal tax asset	651,730			—
Investment in Mesquite	46,~~732~~069,~~822~~324			4,~~282~~618,422
Note receivable, Mesquite	14,000,000			14,000,000
Due from the Newport Funds	~~5,179,772~~—			~~5,179,772~~—
	$	6822,~~808~~127,~~573~~839		$	4659,~~308~~965,~~387~~198
LIABILITIES AND MEMBERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1339,~~315~~659		$	143,~~712~~276
Income taxes payable	~~245~~2,~~580~~659,211			—
	258,895			1,712
	2,698,870			43,276
Due to the Newport Funds	3,883,336			3,687,854
Deferred federal tax liability, non-current	—			1,253,354
	4,142,231			3,689,566
Long-term amounts due to the Newport Funds	168,354			102,657
	2,867,224			1,399,287
Members’ equity:
Class A unit (1 Unit issued and outstanding)	3,806			3,806
Class B units (9,999 Units issued and outstanding)	57,544,874			57,544,874
Accumulated other comprehensive income (loss)	15,317,854			(5,197,086		)
Accumulated other comprehensive income	—			9,513,969
Accumulated deficit	(8,200,192		)	(9,732,773		)
Accumulated deficit, net of accumulated distributions of $47,724,049 and $6,316,757 as of May 31, 2016 and February 29, 2016, respectively.	(38,288,065		)	(8,496,738		)
	64,666,342			42,618,821
	19,260,615			58,565,911
	$	6822,~~808~~127,~~573~~839		$	4659,~~308~~965,~~387~~198

See notes to consolidated financial statements.

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NGA HOLDCO, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended						~~Nine Months Ended~~
	November 30,						November 30,
	May 31,
	2015			2014			2015			2014
	2016			2015
Interest income	$	260,167		$	255,889		$	849,333		$	743,167
Realized gain on the sale of marketable securities	$	15,512,762		$	—
Equity in net income (loss) of unconsolidated investees	(1,144,400		)	(1,234,308		)	1,250,400			(17,587		)
Interest income	283,522			273,778
Professional fees and other expenses	(44,279		)	(53,971		)	(199,881		)	(199,047		)
Equity in net income of unconsolidated investee	1,891,200			1,756,800
Income (loss) before income taxes	(928,512		)	(1,032,390		)	1,899,852			526,533
Professional fees and other expenses	(92,080		)	(112,293		)
Income taxes (benefit)	(366,174		)	(339,024		)	367,272			(1,640		)
Income before income taxes	17,595,404			1,918,285
Net income (loss)	(562,338		)	(693,366		)	1,532,580			528,173
Income tax expense	5,979,441			—
Equity in other comprehensive loss of unconsolidated investee	—			(8,148		)	—			(27,058		)
Net income	11,615,963			1,918,285
Reversal of comprehensive income of unconsolidated investee previously accounted for using the equity method	—			(274,818		)	—			(274,818		)
Unrealized gain on available-for-sale securities	—			14,348,366
Unrealized gain (loss) on available-for-sale securities	1,088,219			(7,051,088		)	20,514,940			(7,051,088		)
Comprehensive income	$	11,615,963		$	16,266,651
Comprehensive income (loss)	$	525,881		$	(8,027,420	)	$	22,047,520		$	(6,824,791	)

See notes to consolidated financial statements.

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NGA HOLDCO, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended
	Three Months Ended
	November 30,
	May 31,
	2015			2014
	2016			2015
Operating activities:
Net income	$	111,~~532~~615,~~580~~963		$	~~528~~1,~~173~~918,285
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) loss of unconsolidated equity method investees	(1,250,400		)	17,587
Realized gain on sale of marketable securities	(15,512,762		)	—
Increase in accounts payable and accrued expenses	11,603			18,176
Equity in net income of unconsolidated investees	(1,891,200		)	(1,756,800		)
Increase (decrease) in income taxes payable	245,580			(1,640		)
Decrease in income tax receivable	91,080			—
Net cash provided by operating activities	539,363			562,296
(Decrease) Increase in accounts payable and accrued expenses	(3,617		)	39,397
Decrease in deferred federal tax benefit	3,229,150			—
Increase in federal tax liability	2,659,211			—
Net cash provided by operating activities	187,825			200,882
Investing activities:
Proceeds from sale of investment in Tamarack Crossing, LLC	—			1,350,000
Repayment of Loan to Newport Funds (via reclassification to distribution)	4,900,000			—
Distributions received from equity investment in Mesquite	800,000			269,000
Proceeds from sale of marketable securities	36,449,329			—
Net cash provided by investing activities	800,000			1,619,000
Distributions received from equity investment in Mesquite	440,298			400,000
Net cash provided by investing activities	41,789,627			400,000
Financing activities:
Advances received from the Newport Funds	~~195~~65,~~482~~698			~~180~~72,~~870~~896
Net increase in cash	1,534,845			2,362,166
Distributions	(41,407,292		)	—
Cash, beginning of period	4,306,170			1,683,837
Net cash (used in) provided by financing activities	(41,341,594		)	72,896
Cash, end of period	$	5,841,015		$	4,046,003
Net increase in cash	635,858			673,778
Cash, beginning of period	770,927			4,306,170
Cash, end of period	$	1,406,785		$	4,979,948

See notes to consolidated financial statements.

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NGA HOLDCO, LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization

Business activities

NGA HoldCo, LLC, a Nevada limited liability company (“NGA”), was formed on January 8, 2007 at the direction of Newport Global Opportunities Fund LP, a Delaware limited partnership (“NGOF”) and an affiliate of Newport Global Advisors LP, a Delaware limited partnership (“Newport”). NGA was formed for the primary purpose of holding equity, directly or indirectly through its subsidiaries, in one or more entities related to the gaming industry. NGA has two wholly owned subsidiaries, NGA Blocker, LLC, a Nevada limited liability company (“Blocker”), and NGA AcquisitionCo, LLC, a Nevada limited liability company owned indirectly through Blocker (“AcquisitionCo”), each of which was formed on January 8, 2007 (collectively with NGA, the “Company”).

The Company has had no revenue generating business since inception. The Company's operations consist primarily of gaming industry related investments including its holding, through AcquisitionCo, of a 40% equity interest (the “Mesquite Interest”) in Mesquite Gaming LLC, a Nevada limited liability company (“Mesquite”), and a loan to Mesquite,. ~~and~~Prior ~~ownership~~to ofMarch 429,~~030~~ 2016,~~440~~ ~~trading-restricted~~the Company also owned shares of Eldorado Resorts, Inc. ("ERI," formerly known as Eclair Holdings Company) common stock, $0.00001 par value, ~~representing an approximate 8.6% ownership interest in ERI~~ (~~the~~ "ERI ~~shares~~Shares"). ~~The~~A total of 4,030,400 ERI ~~shares~~Shares were acquired September 19, 2014, upon consummation of a merger between MTR Gaming, Inc. ("MTR") and Eldorado Holdco, LLC ("Eldorado"), a previously unconsolidated investee of the Company in which the Company held an approximate 17.0359% equity interest (the "ERI Merger"). During the period from January 26, 2016 through March 29, 2016, the Company liquidated all of its ownership interest in ERI through sales in multiple open market transactions of all its 4,030,440 ERI Shares.

On November 24, 2015, ERI completed its previously announced acquisition of (1) the remaining membership interests in the Circus and Eldorado Joint Venture, LLC ("C&E JV"), which owns and operates the Silver Legacy Resort Casino, located in Reno, Nevada and seamlessly connected to the Eldorado Hotel & Casino, and (2) all of the assets and properties of Circus Circus Hotel and Casino-Reno (collectively, the "Silver Legacy/Circus Circus Reno Acquisition"). As a result of the Silver Legacy/Circus Circus Reno Acquisition, the C&E JV became an indirect wholly owned subsidiary of ERI.

AsThe aCompany's ~~result~~40% ofMesquite ~~the~~Interest ~~ERI~~was ~~Merger~~acquired ~~and~~August 1, 2011 (the ~~Silver~~“Mesquite ~~Legacy/Circus~~Acquisition”), ~~Circus~~in ~~Reno~~exchange ~~Acquisition~~for $8,222,222 ~~ERI~~in ~~now~~cash, ~~owns~~of ~~and~~which ~~operates~~$7,222,222 ~~seven~~and ~~gaming~~$1,000,000 ~~facilities~~were ~~including~~contributed to the ~~Eldorado~~Company ~~Hotel &~~by ~~Casino,~~NGOF ~~Silver~~and ~~Legacy~~Newport ~~Resort~~Global ~~Casino~~Credit Fund (“NGCF”), ~~and~~respectively. ~~Circus~~Mesquite ~~Circus~~is ~~Hotel~~engaged ~~and~~in ~~Casino-Reno,~~the ~~all~~casino ~~located~~resort industry in ~~Reno~~Mesquite, ~~NV, Eldorado~~Nevada ~~Resort~~through wholly owned subsidiaries that own and operate the CasaBlanca Resort/Casino/Golf/Spa, ~~Shreveport~~the ~~located~~Virgin inRiver ~~Shreveport~~Hotel/Casino/Bingo, ~~Louisiana~~two championship golf courses, ~~Scioto~~a ~~Downs~~full-service ~~Racino~~spa, ~~located~~a inbowling ~~Columbus~~center, ~~Ohio~~restaurants, ~~Mountaineer~~and ~~Casino~~banquet ~~Racetrack~~and &conference ~~Resort~~facilities. Mesquite ~~located~~also owns additional real estate in ~~Chester~~Mesquite, ~~West~~Nevada ~~Virginia,~~on ~~and~~which ~~Presque~~another ~~Isle~~hotel ~~Downs~~and &casino ~~Casino~~was located inprior ~~Erie,~~to ~~Pennsylvania~~its demolition in 2013.

Eldorado previously owned a 21.25% interest in Tamarack Crossing, LLC ("Tamarack") that owns and operates Tamarack Junction, a casino in south Reno. On September 1, 2014, and as a condition to closing the ERI Merger, Eldorado distributed on a pro-rata basis to its members (including the Company) its equity interest in Tamarack. The Company contemporaneously sold its equity interest in Tamarack for $1,350,000, the estimated fair value of the in-kind distribution.

The Mesquite Interest was acquired August 1, 2011 (the “Mesquite Acquisition”), in exchange for $8,222,222 in cash, of which $7,222,222 and $1,000,000 were contributed to the Company by NGOF and Newport Global Credit Fund (“NGCF,” and collectively with NGOF, the “Newport Funds”), respectively. Mesquite is engaged in the casino resort industry in Mesquite, Nevada through wholly owned subsidiaries that own and operate the CasaBlanca Resort/Casino/Golf/Spa, the Virgin River Hotel/Casino/Bingo, two championship golf courses, a full-service spa, a bowling center, a gun club, restaurants, and banquet and conference facilities. Mesquite also owns additional real estate in Mesquite, Nevada on which another hotel and casino was located prior to its demolition in 2013.

The Company has no current plans to acquire an equity interest in any other entity.

Formed in 2005, Newport is a Texas-based investment management firm focused on alternative fixed income strategies. The firm concentrates primarily on the stressed and distressed opportunities within the high yield debt and bank loan markets, but may also include the acquisition and disposition of other types of corporate securities and claims. Newport has 10 employees, with its primary office in The Woodlands, TXTexas. Newport’s principals include Timothy T. Janszen, CEO, Ryan Langdon, Senior Managing Director, and Roger A. May, Senior Managing Director. Collectively, the principals have over 40 years of experience investing in the high yield and distressed debt markets. Newport is registered with the Securities and Exchange Commission (the "Commission") as an investment adviser under the Investment Advisers Act of 1940, as amended. Newport is investment manager of ~~the~~NGOF, NGCF and Newport ~~Funds~~Global Opportunities Fund I-A LP, a Delaware limited partnership ("NGOF I-A") which purchased NGOF's ownership interest in NGA No VoteCo, LLC, a Nevada limited liability company ("InvestCo") on January 7, 2016. The funds managed by Newport are private investment funds which seek attractive long-term risk adjusted returns by capitalizing on investments in the distressed debt markets and possibly control-oriented investments. ~~The Newport Funds began investing in 2006.~~

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Concentrations and economic uncertainties

~~NGA~~The and its consolidated subsidiaries expect to be economically dependent upon relatively few investments in the gaming industry. From December 2007 through June 2009, the United States experienced a recession accompanied by, among other things, weakness in the commercial and investment banking systems resulting in reduced credit and capital financing availability, and highly curtailed gaming, other recreational, construction and real estate market activities and general discretionary consumer spending. Although capital market activity and liquidity are reported to have improved, the recovery from this recessionary period is fragile and there can be no assurance that the Company’s ~~business and that of its investees, which have been severely affected by the downturn, will fully recover to pre-recession levels. In addition, the Company~~ carries cash on deposit with financial institutions substantially in excess of federally-insured limits. The extent of ~~loss, if~~ any, loss that might be incurred as a result of uninsured deposits in the event of a future failure of a bank or other financial ~~institution~~institutions is not subject to estimation at this time.

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2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Accounting and Presentation

The consolidated financial statements of the Company ~~prepares~~include the accounts of NGA and its ~~consolidated~~wholly-owned subsidiaries. The interim financial statements onpresented herein have been prepared by the ~~accrual~~Company, ~~basis~~without audit, pursuant to the rules and regulations of ~~accounting~~the United States Securities and Exchange Commission (the “Commission”) applicable to interim financial information. Certain information and disclosures normally included in ~~conformity~~the annual financial statements prepared in accordance with accounting principles generally accepted in the United States ~~of America~~ (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. ~~The~~In ~~consolidated~~the ~~financial~~opinion ~~statements~~of management, all adjustments necessary for a fair presentation of the ~~Company~~results ~~include~~for the ~~accounts~~interim periods have been made (consisting of ~~NGA~~normal ~~and~~recurring ~~its~~adjustments). ~~wholly-owned~~Results ~~subsidiaries~~of operations for the current interim periods are not necessarily indicative of results to be expected for the full fiscal year. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company's investment in Mesquite is accounted for using the equity method of accounting as was its investment in Eldorado until the ERI Merger on September 19, 2014. ~~Commencing~~ From September 19, 2014 to the date of their sale, the ERI shares received in the ERI Merger ~~are~~were classified, and accounted for, as available-for-sale marketable securities and ~~are~~were carried at estimated fair value based on trading activity (Level 1 inputs as defined by GAAP). Realized gains ~~and losses (if any)~~ on the ERI shares ~~are~~were included in net income, while unrealized gains and losses ~~are~~were included in the Company's consolidated statements of operations as a component of other comprehensive income. The Company recognizes equity in the net income (loss) and other comprehensive income (loss) of ~~each~~its unconsolidated investee accounted for using the equity method on a calendar year basis. For example, the Company’s net income for the ~~nine~~year ~~months~~ ended ~~November 30~~ February 29, ~~2015~~ 2016 includes equity in the net income of Mesquite for the ~~nine~~year ~~months~~ ended ~~September 30~~ December 31, 2015. Accordingly, except for the ERI shares and otherwise as required by GAAP and disclosed herein, the Company measures all of its assets and liabilities on the historical cost basis.

The Company's investments are evaluated at least annually (and more frequently when circumstances warrant) to determine if events or changes in circumstances indicate that the carrying value may not be recoverable. Examples of such events or changes in circumstances that might indicate impairment testing is warranted might include, as applicable, prolonged periods of the trading value of available-for-sale securities being less than cost, an adverse change in the legal, regulatory or business climate relative to gaming nationally or in the jurisdictions in which the Company’s investees operate, or a significant long-term decline in historical or forecasted earnings or cash flows of the investee or the fair value of its property or business, possibly as a result of competitive or other economic or political factors. In evaluating whether a loss in value is other than temporary, the Company considers: (1) the length of time and the extent to which the fair value or market value has been less than cost; (2) the financial condition and near-term prospects of the investee, including any specific events which may influence the operations; (3) the Company’s intent and ability to retain its investments in the investee for a period of time sufficient to allow for any anticipated recovery in fair value; (4) the condition and trend of the economic cycle; (5) the investee’s historical and forecasted financial performance; (6) trends in the general market; (7) the investee’s capital strength and liquidity; and (8) the reaction to changes in markets and specific performance of the Company's investments by the investing public.

In determining whether the carrying value of the Company’s investment in Mesquite is ~~more~~less than its estimated fair value, a discounted cash flow approach to value is used and is based on Level 3 inputs as defined by GAAP. The Company’s valuation model incorporates an estimated weighted-average cost of capital (effectively, a discount rate) and terminal value multiples that are used by market participants. The estimated weighted-average cost of capital is based on the risk-free interest rate at the time, adjusted for specific risk factors. The Company also considers the metrics of specific business transactions that may be comparable to varying degrees. The weight assigned to these approaches to value in the Company’s impairment evaluation may vary from period to period depending upon evolving events. Forecasted prospective financial information used in the model is based on management’s expected course of action. Sensitivity analyses are also performed related to key assumptions used, including possible variations in the weighted-average cost of capital and terminal value multiples, among others.

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Use of estimates

Timely preparation of financial statements in accordance with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting periods. Actual results could differ from those estimates. Management estimates that the Company will eventually sell its ~~investments~~investment in Mesquite at a price sufficient to realize the carrying value of the Company’s assets which estimates are subject to material variation over the next year. Such eventual disposition of the Company’s investments will also affect the potential realization of the Company’s deferred tax assets which estimate is also subject to material variation over the next year.

3. Ownership and Management of the Company

Ownership

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The Company’s one issued and outstanding Class A Unit, representing all of its voting equity, is held by NGA VoteCo, LLC, a Nevada limited liability company (“VoteCo”). All of the Company’s issued and outstanding Class B Units, representing all of its non-voting equity, are held by NGA No VoteCo, LLC, a Nevada limited liability company (“InvestCo”). At present, the Company has no plans to issue any additional Class A or Class B Units.

VoteCo is owned by Timothy T. Janszen and Ryan L. Langdon, each of whom owns a 42.85% interest, and Roger A. May, who owns a 14.3% interest. Messrs. Janszen, Langdon and May collectively are referred to as the “VoteCo Equityholders." As mentioned in Note 1 above, NGOF sold its ownership interest in InvestCo isto ~~owned~~NGOF byI-A ~~the~~on ~~Newport~~January ~~Funds~~7, 2016. ~~Newport~~As ~~holds~~a ~~for~~result, ~~the~~InvestCo ~~benefit~~is ofowned ~~the~~by ~~Newport~~NGOF ~~Funds~~I-A and NGCF, which collectively hold all of InvestCo’s issued and outstanding voting securities. As the change in ownership had no effect on the Company's operations, the term "Newport Funds" is used to describe NGCF and NGOF collectively prior to January 7, 2016 and NGCF and NGOF I-A collectively subsequent to January 7, 2016.

Management

The VoteCo Equityholders, through VoteCo, control all matters of the Company that are subject to the vote of members, including the appointment and removal of managers. Each of the VoteCo Equityholders is a member of the Company’s board of managers, and Mr. Janszen is the Company’s operating manager who has responsibility for the day-to-day management of the Company. The Class B Units issued to InvestCo allow it and its investors to invest in the Company without having any voting power or power to control the operations or affairs of the Company, except as otherwise required by law. If InvestCo and its investors had any of the power to control the operations or affairs of the Company afforded to holders of the Class A Units, they and their respective constituent equityholders would, under gaming regulatory provisions currently applicable to the company, generally be required to be licensed or found suitable under the gaming laws and regulations of the States of Nevada, (as well as those of the states of Louisiana, Ohio, West Virginia and Pennsylvania under the gaming laws and regulations of those states then applicable to the Company prior to the liquidation of the Company's investment in ERI).

4. Marketable Securities, Eldorado Resorts, Inc.

Effective September 19, 2014, as a result of the ERI Merger, the Company’s previous interest in Eldorado was converted into 4,030,440 shares of ERI common stock, $0.00001 par value, including post-closing adjustments, representing approximately 8.6% of such shares then outstanding. ~~Upon~~During ~~conversion,~~ the ~~fair~~period ~~market~~from ~~value~~January ~~of the ERI shares~~26, ~~based~~2016 onthrough ~~then~~March ~~current~~29, ~~trading activity~~2016, ~~was approximately $7.1 million less than~~ the ~~carrying~~Company ~~value~~liquidated ofits ~~the~~ownership ~~Eldorado~~interest ~~Interest~~in ~~prior~~ERI tothrough the ~~ERI~~sale ~~Merger, resulting~~ in aopen ~~write~~market ~~down~~transactions of ~~the~~all ~~Company's~~of ~~investment~~its ~~and a charge to other comprehensive loss for an unrealized holding loss. Subsequently through November 30~~4, ~~2015~~030,440 ~~additional~~shares ~~adjustments to carrying value~~ of ~~the~~ ERI's ~~shares~~common ~~based~~stock onresulting ~~trading activity have resulted~~ in ana ~~unrealized~~realized ~~holding~~ gain of approximately $2217.47 million (, $202.52 million of ~~during~~which ~~the~~had ~~nine~~been ~~months~~realized ~~ended~~as ~~November~~of 30February 29, ~~2015)~~2016.

Through the date of this filing, the estimated fair value of the ERI common shares based on trading activity is approximately 11% higher than the carrying value as of November 30, 2015.

The original cost of the Company’s investment in Eldorado in 2007 (prior to subsequent impairment charges and equity in the earnings (losses) of the investee through September 18, 2014) was approximately $38 million.

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
Net operating revenues	$	183,540	$	78,949		$	533,624	$	197,728
Operating income	$	24,092	$	2,778		$	59,235	$	11,105
Net income (loss)	$	5,399	$	(4,064	)	$	4,030	$	(3,488	)

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Recent events involving ERI include, among others, the following:

• On July 13, 2015, ERI commenced a cash tender offer and consent solicitation for any and all of the $168.0 million principal amount of 8.625% Senior Secured Notes due 2019 issued by ERI's wholly owned subsidiaries, Eldorado Resorts, LLC and Eldorado Capital Corp. (the "Eldorado Notes") and for any and all of the $560.7 million principal amount of 11.50% Senior Secured Second Lien Notes due 2019 issued by ERI's wholly owned subsidiary, MTR Gaming Group, Inc. (the "MTR Notes"). The total consideration offered in the tender offer was $1,047.92 per $1,000 principal amount of the Eldorado Notes tendered and accepted for purchase and $1,066.39 per $1,000 principal amount of MTR Notes tendered and accepted for purchase, which included a cash consent payment of $30 per $1,000 in principal amount of Eldorado Notes and MTR Notes. According to ERI’s public disclosure, the tender offer was consummated on July 23, 2015, and approximately $130.0 million in aggregate principal amount of Eldorado Notes and $403.9 million in aggregate principal amount of MTR Notes were accepted for purchase, with the Eldorado Notes and MTR Notes that remained outstanding following the consummation of the tender offer being satisfied and discharged pursuant to the terms of the indentures governing those notes. ERI announced the redemption of all of the Eldorado Notes on July 28, 2015.

• On July 23, 2015, ERI entered into a new $425 million seven-year term loan (the "New ERI Term Loan") and a new $150 million five-year revolving credit facility (the "New ERI Revolving Credit Facility" and, together with the New ERI Term Loan, the “New ERI Credit Facility”). Also on July 23, 2015, ERI incurred $40 million of borrowings under the New ERI Revolving Credit Facility. The New ERI Term Loan will bear interest at a rate per annum of, at ERI’s option, either (x) LIBOR plus 3.25%, with a LIBOR floor of 1.0%, or (y) a base rate plus 2.25%, and will have an issue price of 99.5% of the principal amount of the New ERI Term Loan. The New ERI Revolving Credit Facility will bear interest at a rate per annum of, at ERI’s option, either (x) LIBOR plus a spread ranging from 2.5% to 3.25%, or (y) a base rate plus a spread ranging from 1.5% to 2.25%, in each case with the spread determined based on ERI’s total leverage ratio. Additionally, ERI will be subject to fees on the unused portion of the New ERI Revolving Credit Facility. The New ERI Credit Facility is secured by substantially all of ERI’s personal property assets and substantially all personal property assets of each subsidiary that guaranties the New ERI Credit Facility (other than certain subsidiary guarantors designated as immaterial or restricted subsidiaries), and mortgages on the real property and improvements owned or leased by ERI or a guarantor. As of September 30, 2015, ERI had $423.9 million outstanding on the New ERI Term Loan and $18.0 million in borrowings outstanding under the New ERI Revolving Credit Facility. ERI had $132 million of available borrowing capacity under the New ERI Revolving Credit Facility as of September 30, 2015. At September 30, 2015, the interest rate on the New ERI Term Loan was 4.25% and the interest rate on the New ERI Revolving Credit Facility was 3.25%.

• On July 23, 2015, ERI issued $375.0 million in aggregate principal amount of 7.0% Senior Notes due 2023 (the “ERI Senior Notes”). The ERI Senior Notes are guaranteed by all of ERI's direct and indirect restricted subsidiaries, othern than immaterial subsidiaries. Interest is payable semi-annually in arrears on February 1st and August 1st of each year. The ERI Senior Notes or any portion thereof may be redeemed beginning in 2018 at a redemption price of 105.25%, declining to 100.00% in 2021 and thereafter.

• On November 24, 2015 (the "Closing Date"), ERI consummated the Silver Legacy/ Circus Circus Reno Acquisition. The aggregate consideration was approximately $80.2 million of cash, comprised of the purchase price of $72.5 million and a $7.7 million working capital adjustment, plus the assumption of amounts outstanding under the joint venture’s credit facility, of which approximately $80.5 million was outstanding as of the Closing Date. ERI funded the purchase price and repaid the borrowings outstanding under the joint venture's credit facility using a portion of the proceeds from the sale of the ERI Senior Notes, borrowings under the New ERI Revolving Credit Facility and cash on hand.

• On November 24, 2015, ERI withdrew its registration statement relating to its proposed common stock offering. The proceeds of the offering were intended to pay a portion of the purchase price for the assets acquired in the Silver Legacy/Circus Circus Reno Acquisition; however, as described above, those transactions were consummated utilizing other financing options and available cash on hand.

Management believes that ERI’s consummation of the Silver Legacy/Circus Circus Reno Acquisition and its debt refinancing are likely to significantly impact the Company’s future financial performance. However, the nature and extent of any such impact will depend on numerous factors that are beyond the control of the Company. Accordingly, management is unable to determine at this time the nature or extent to which the Company’s future financial performance may be affected by these events.

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5. Investment in Mesquite

Mesquite is engaged in the hotel casino industry in Mesquite, Nevada through its wholly owned subsidiaries, C & HRV, LLC (doing business as Virgin River Hotel/Casino/Bingo), VRCC, LLC and its wholly owned subsidiaries, 5.47 RBI, LLC and RBG, LLC (doing business as CasaBlanca Resort/Casino/Golf/Spa), and its wholly owned subsidiary, CasaBlanca Resorts, LLC (doing business as the Oasis Resort and Casino prior to the demolition of the Oasis Resort and Casino in 2013) and its wholly owned subsidiaries, Oasis Interval Ownership, LLC, Oasis Interval Management, LLC and Oasis Recreational Properties, Inc.

On August 1, 2011, the Company, through AcquisitionCo, acquired the Mesquite Interest in exchange for $8,222,222 in cash that was contributed to the Company by the Newport Funds in July 2011.

The following table presents unaudited condensed financial information of Mesquite for the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2015			2014			2015		2014
	2016			2015
Net operating revenues	$	2028,~~637~~849		$	1928,~~925~~294		$	~~74,126~~	$	~~70,733~~
Operating income (loss)	$	(15,~~610~~696	)	$	(15,~~732~~389	)	$	~~6,391~~	$	~~3,276~~
Net income (loss)	$	(24,~~861~~728	)	$	(24,~~707~~392	)	$	~~3,126~~	$	~~225~~

6. Note Receivable, Mesquite

On August 22, 2013, the Company, through Blocker, loaned $14 million to Mesquite under a Second Lien Credit Agreement, dated as of August 22, 2013 (the “Credit Agreement”), pursuant to which Mesquite borrowed a total of $35 million from the Company and other lenders not affiliated with the Company for the purpose of refinancing a portion of its existing indebtedness. Each of the other lenders, consisting of limited liability companies and trusts, has an ownership interest in Mesquite or has one or more members or beneficiaries who hold an ownership interest in Mesquite. The repayment of the indebtedness outstanding under the Credit Agreement is secured by a second lien on substantially all of Mesquite’s real property, including that relating to its Casablanca Resort & Casino, its Virgin River Hotel and Casino, and real estate on which another hotel and casino was situated prior to its demolition in 2013, each located in Mesquite, Nevada.

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Mesquite or has one or more members or beneficiaries who hold an ownership interest in Mesquite. The repayment of the indebtedness outstanding under the Credit Agreement is secured by a second lien on substantially all of Mesquite’s real property, including that relating to its Casablanca Resort & Casino, its Virgin River Hotel and Casino, and real estate on which another hotel and casino was situated prior to its demolition in 2013, each located in Mesquite, Nevada.

The terms of the loan provided for the payment by Mesquite to each lender, including Blocker, of interest on the unpaid principal amount owed to such lender at the rate of 7% per annum over the period from August 22, 2013 to January 2, 2015, and provides for payment at the rate of 8% per annum thereafter. During the term of the loan, interest is payable in cash, in arrears, monthly on the first day of each month. The principal amount of the loan, along with any accrued and unpaid interest, becomes due and payable on February 21, 2020. The indebtedness may, at the option of Mesquite, be prepaid in whole or in part, at any time without penalty, and repayment of the indebtedness may be accelerated upon the occurrence of an event of default, in accordance with the terms of the Credit Agreement.

The Company's participation as a lender under the Credit Agreement was funded utilizing $1 million of cash on hand and a capital contribution from InvestCo in the amount of $13 million, which was provided to InvestCo by ~~its equity owners,~~ NGOF and NGCF, in the respective amounts of $11.3 million and $1.7 million.

7. Transactions with the Newport Funds

InOn ~~2007~~January 26, ~~NGOF~~2016, ~~received~~the onCompany, ~~behalf~~through ofAcquisitionCo, ~~(but~~made ~~did~~a ~~not~~loan ~~remit~~ to) NGOF I-A in the ~~Company~~principal amount of $54,~~118~~900,~~172~~000. ofAcquisitionCo ~~interest~~funded onthe ~~mortgage~~loan ~~bonds~~to ~~exchanged~~the ~~for~~NGOF ~~the~~I-A ~~Eldorado~~utilizing ~~Interest~~funds ~~and~~borrowed ~~$61,600~~simultaneously offrom ~~preferred~~Credit ~~dividends,~~Suisse ~~which~~in ~~amounts~~like ~~are~~amount ~~reflected~~which inwas ~~the~~fully ~~accompanying~~repaid ~~balance~~on ~~sheets~~February as5, ~~due~~2016. ~~from~~On ~~the~~April ~~Newport~~1, ~~Funds.~~2016, ~~There~~the isCompany nodistributed ~~formal~~the ~~agreement~~proceeds ~~outlining~~from the ~~settlement~~sale of ~~this~~ERI ~~receivable~~shares, ~~(and~~net ~~the~~of ~~payable~~$4.9 ~~discussed~~million inused to repay the ~~following~~loan ~~paragraph)~~from ~~and,~~Credit ~~accordingly~~Suisse, and reclassified the ~~receivable~~$4.9 ismillion ~~reflected~~loan amount as a ~~non-current~~distribution ~~asset~~to NGOF I-A.

At ~~November~~May 3031, ~~2015~~2016 and February 2829, ~~2015~~2016, the Company owed $3168,~~883,336~~354 and $3102,~~687~~657,~~854,~~ respectively, to the Newport Funds for expenses paid on the Company’s behalf ~~since inception of the Company~~. The Newport Funds have agreed not to demand repayment through March 1, 2018. Accordingly, the amount of this payable is reflected as a non-current liability at ~~November~~May 3031, ~~2015~~2016 and February 2829, ~~2015~~2016.

8. Income Taxes

Blocker, a wholly owned subsidiary of NGA, has elected to be taxed as a corporation. Accordingly, equity in the flow-through earnings of Mesquite ~~(and Eldorado through September 18~~, ~~2014),~~ realized gains on available-for-sale securities, interest income from the Credit Agreement, and interest expense on intercompany borrowings received from ~~Holdco~~NGA to fund a portion of the Credit Agreement are taxed to Blocker. NGA recognizes interest income on intercompany loans to Blocker and incurs certain costs, primarily associated with being a public company, including professional and other fees, which, for tax purposes, flow through to its members. The Company's deferred tax assets consist primarily of the assets related to the difference in the book and tax basis of the investment in Mesquite. The Company’s effective tax rates for the period presented is the statutory federal rate of 35%.

In assessing the realizability of the deferred tax assets, management considers whether future taxable income will be sufficient during the periods in which those temporary differences reverse. During the fourth quarter of the year ended February 29, 2016, once the ERI stock was no longer restricted, the Company decided to sell its entire investment in the ERI stock and completed the liquidation on March 29, 2016 fully realizing the Company's deferred tax assets for which a 100% valuation allowance had been provided in the prior year period.

9. Financial Instruments

Except for cash (the fair value of which equals its carrying value), the only significant financial instruments the Company has are its investment in Mesquite accounted for using the equity method for which fair value disclosure is not required, and its amounts due to and from the Newport Funds. There is no formal agreement between the Company and the Newport Funds related to the amounts due to the Newport Funds, including no stated right of offset, repayment terms, and interest rate or method. Accordingly, it is not practical to estimate the fair value of such financial instruments.

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incurs certain costs, primarily associated with being a public company, including professional and other fees, which, for tax purposes, flow through to its members. The Company's deferred tax assets consist primarily of impairment charges related to its investment in ERI and, because realization is not considered more likely than not, the Company has recorded a valuation allowance of 100%. For these reasons, the Company’s effective tax rates for the periods presented are different than the statutory federal rate of 35%.

In assessing the realizability of the deferred tax assets, management considers whether future taxable income will be sufficient during the periods in which those temporary differences reverse. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment. The Company has recorded a valuation allowance of 100% of its net deferred tax assets as of November 30, 2015 and February 28, 2015, though subsequent to February 28, 2015, the estimated fair value of the Company's available-for-sale securities has appreciated substantially. If the ERI shares were unrestricted and had been sold as of November 30, 2015, most of the related deferred tax asset could have been realized. However, the Company is restricted from disposing of the investment, has no immediate plans to sell its investment, and the trading value of ERI's shares is subject to potentially significant daily changes in value. Accordingly, management believes there is insufficient information to reduce the valuation allowance at this time.

9. Financial Instruments

Except for cash (the estimated fair value of which equals its carrying value), shares of ERI's common stock carried at estimated fair value, the note receivable from Mesquite (which management believes approximates its fair value based on current market conditions for instruments with similar collateral, interest rates, and maturity dates), and the investment in Mesquite which is accounted for using the equity method (for which estimated fair value disclosure is not required by GAAP), the only other financial instruments of the Company are amounts due to/from the Newport Funds. As there are no formal repayment terms, it is not practical to estimate the fair value of such financial instruments.

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following information should be read in conjunction with the consolidated financial statements included in this Quarterly Report and in our Annual Report on Form 10-K/A for the year ended February 2829, ~~2015~~2016, as filed with the United States Securities and Exchange Commission ("SEC").

Overview

The Company’s activities ~~consist~~during the period covered by this report consisted solely of holding substantial, non-controlling, equity interests in gaming enterprises and a related loan to one of the enterprises. See Note 3 of the Notes to Consolidated Financial Statements included in this report for information about ownership and management of the Company.

The Company's holdings include a 40% equity interest in Mesquite Gaming LLC (“Mesquite”), a loan to Mesquite, and ~~trading-restricted~~, prior to January 26, 2016, 4,030,440 shares of common stock of Eldorado Resorts, Inc. (“ERI,” formerly known as Eclair Holdings Company), ~~that~~representing ~~are~~at ~~currently~~December ~~subject~~31, to2015 ~~trade~~(based ~~restrictions,~~on ~~representing~~the public reports of ERI) approximately 8.6% of ERI's outstanding common shares. During the period from January 26, 2016 through March 29, 2016, the Company liquidated its ownership interest in ERI through the sale in open market transactions of a total of 4,030,440 shares of ERI's common stock (the "ERI Investment Liquidation"). The transactions resulted in a realized gain of approximately $17.7 million, $2.2 million of which had been recognized as of February 29, 2016. The Company's results of operations subsequent to its liquidation of the ERI shares will differ significantly from those prior to the liquidation.

The Company’s investment in ERI was acquired September 19, 2014, pursuant to a merger agreement between MTR Gaming, Inc. ("MTR") and Eldorado HoldCo LLC (“Eldorado”), a previously unconsolidated investee of the Company in which the Company held an approximate 17.0359% equity interest (the "ERI Merger").

As a result of the ERI Merger and the Silver Legacy/Circus Circus Reno Acquisition, ERI now owns and operates seven gaming facilities including the Eldorado Hotel & Casino, Silver Legacy Resort Casino, and Circus Circus Hotel and Casino-Reno, all located in Reno, NV, Eldorado Resort Casino Shreveport located in Shreveport, Louisiana, Scioto Downs Racino located in Columbus, Ohio, Mountaineer Casino Racetrack & Resort located in Chester, West Virginia, and Presque Isle Downs & Casino located in Erie, Pennsylvania.

Prior to the ERI merger, Eldorado owned a 21.25% interest in Tamarack Crossing, LLC ("Tamarack") that owned and operated Tamarack Junction, a casino in south Reno. On September 1, 2014, and as a condition to closing the ERI Merger, Eldorado distributed on a pro-rata basis to its members (including the Company) its equity interest in Tamarack. The Company contemporaneously sold its equity interest in Tamarack for $1,350,000, the estimated fair value of the in-kind distribution.

On August 1, 2011, the Company acquired its interest in Mesquite in exchange for $8,222,222 in cash. Mesquite is engaged in the casino resort industry in Mesquite, Nevada through wholly owned subsidiaries that own and operate the CasaBlanca Resort/Casino/Golf/Spa, the Virgin River Hotel/Casino/Bingo, two championship golf courses, a full-service spa, a bowling center, restaurants, and banquet and conference facilities. Mesquite also owns real estate on which another hotel & casino was located prior to its demolition in 2013.

On August 22, 2013, the Company (through Blocker) loaned $14 million to Mesquite under a Second Lien Credit Agreement, dated as of August 22, 2013 (the “Credit Agreement”), pursuant to which Mesquite borrowed a total of $35 million from the Company and other lenders not affiliated with the Company for the purpose of refinancing a portion of its then existing indebtedness, utilizing the proceeds from the borrowings under the Credit Agreement. Each of the other lenders under the Credit Agreement, consisting of limited liability companies and trusts, has an ownership interest in Mesquite or has one or more members or beneficiaries who hold an ownership interest in Mesquite. The repayment of the indebtedness outstanding under the Credit Agreement is secured by a second lien on substantially all of Mesquite’s real property, including that relating to its Casablanca Resort & Casino, its Virgin River Hotel and Casino, and real estate on which another hotel & casino was situated prior to its demolition in 2013, each located in Mesquite, Nevada. The indebtedness outstanding under the Credit Agreement may, at the option of Mesquite, be prepaid in whole or in part, at any time without penalty, and repayment of the indebtedness may be accelerated upon the occurrence of an event of default, in accordance with the terms of the Credit Agreement.

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indebtedness may be accelerated upon the occurrence of an event of default, in accordance with the terms of the Credit Agreement.

Results of Operations

The Company’s income ~~(loss)~~ before income taxes varies as a result of its equity in the earnings of Mesquite (and, prior to ~~September~~completion ~~19,~~of ~~2014,~~the ~~Eldorado)~~ERI ~~and~~Investment Liquidation, realized gains and losses on the ERI shares. ~~Other~~Prior to completion of the ERI Investment Liquidation, other comprehensive income ~~varies~~varied by unrealized gains and losses on the ERI shares. Historically, Mesquite's results of operations have been highly seasonal with the first two calendar quarters of the year reflecting operating income partially offset by losses during the second half of the year.

Three Months Ended ~~November~~May 3031, ~~2015~~2016 Compared to the Three Months Ended ~~November~~May 3031, ~~2014~~2015

For the three months ended ~~November~~May 3031, ~~2015~~2016, the Company’s equity in the net ~~loss~~income of ~~its~~Mesquite ~~unconsolidated investees~~ was approximately $1.19 million ~~(all Mesquite related)~~, compared to anapproximately ~~approximate loss of~~ $1.28 million ~~for the corresponding period of the prior fiscal year, which included~~ equity in the net ~~loss~~income of Mesquite ~~partially~~for ~~offset by $0.1 million of equity in~~ the ~~net~~corresponding ~~income of Eldorado. Income taxes and professional fees and other expenses incurred by the Company during the quarter were both consistent with those incurred during the same~~ period of the prior ~~fiscal year.~~

~~Other comprehensive income increased approximately $1.1 million during the quarter as a result of adjusting the carrying value of the ERI shares to fair value based on trading activity.~~11

Operational highlights for Mesquite for the three months ended September 30, 2015 included net revenues of approximately $20.6 million, operating expenses of approximately $22.2 million, and interest expense of approximately $1.3 million. The net loss for the quarter was approximately $2.9 million, compared with a net loss of approximately $2.7 million for the corresponding period of 2014. The year over year increase in net loss of approximately $0.2 million was due primarily to approximate $0.7 million and $0.6 million increases in net operating revenues and operating expenses, respectively, combined with a $0.3 million increase in interest expense.

ERI's operating results for the three months ended September 30, 2015 include operations at the properties of MTR Gaming as well as Eldorado, while the results for the prior period include only those of Eldorado. Operational highlights for ERI for the three months ended September 30, 2015 include net revenues of approximately $183.5 million, operating income of approximately $24.1 million, and interest expense of approximately $14.5 million. Net income for the quarter ended September 30, 2015 was approximately $5.4 million, compared with a net loss of approximately $4.1 million for the corresponding period of 2014. The year over year increase in ERI's net income of approximately $9.5 million was due primarily to increases in net operating revenues and operating expenses as illustrated in the following tables, partially offset by a $8.8 million increase in interest expense.

The following table highlights the results of ERI's and Eldorado's operations for the three months ended September 30, 2015 and 2014, respectively:

	Three Months EndedSeptember 30,
	2015		2014			Percent Increase (Decrease)
Net operating revenues	$	183,540	$	78,949		132.5	%
Operating expenses	161,610		72,943			121.6	%
Equity in income of unconsolidated affiliates	2,548		1,238			105.8	%
Operating income	24,092		2,778			767.2	%
Net income	5,399		(4,064		)	232.8	%

ERI's Net Operating Revenues. MTR Gaming contributed $119.9 million of net operating revenues for the three months ended September 30, 2015, consisting primarily of casino revenues. Including the incremental MTR Gaming revenues, ERI's net operating revenues increased 132.5% for the three months ended September 30, 2015 compared to the same prior year period. Excluding incremental MTR Gaming revenues, ERI's consolidated net operating revenues increased 1.6% for the three months ended September 30, 2015 compared to the same prior year period, primarily due to increased net revenues at Eldorado Reno.

ERI's Operating Income and Net Income. ERI's consolidated operating income and net income for the three months ended September 30, 2015 includes operating income and net income of $15.4 million and $18.9 million, respectively, attributable to MTR Gaming. Excluding operating income attributable to MTR Gaming, ERI's consolidated operating income was $8.7 million and its net loss was $13.5 million for the three months ended September 30, 3015. ERI's consolidated operating income for the three months ended September 30, 2015, excluding operating income attributable to MTR Gaming,

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~~included~~fiscal ~~incremental~~year. ~~corporate~~Income ~~costs~~taxes ~~offset~~during bythe ~~decreased~~quarter ~~acquisition~~increased ~~charges,~~approximately an$6.0 ~~increase~~million incompared ~~equity~~to inthe ~~income~~corresponding period of ~~unconsolidated~~the ~~affiliates,~~prior ~~lower~~fiscal ~~depreciation~~year, ~~and~~while ~~improved~~professional ~~operating~~fees ~~margins at both Eldorado Reno~~ and ~~Eldorado~~other ~~Shreveport.~~expenses ~~Excluding~~incurred ~~net~~by ~~income attributable to MTR Gaming,~~ the ~~decrease~~Company induring ~~ERI's net income is primarily attributable to~~ the ~~same~~quarter ~~factors~~were ~~impacting~~consistent ~~operating income along~~ with athose ~~$1.8~~incurred ~~million~~during ~~loss on~~ the ~~early~~same ~~retirement~~period of ~~debt~~the ~~associated~~prior ~~with~~fiscal ~~ERI's refinancing in July 2015~~year.

	Three Months EndedSeptember 30,
	2015				2014			Percent Increase Decrease)
Casino:
Eldorado Reno	$	17,313			$	17,142		1.0		%
Eldorado Shreveport	32,005				31,916			0.3		%
MTR Gaming	207,039				14,399			643.4		%
	156,357				63,457			146.4		%
Pari-mutuel commissions-MTR Gaming	3,781				446			747.8		%
Food and beverage:
Eldorado Reno	9,025				8,435			7.0		%
Eldorado Shreveport	6,163				6,267			(1.7	)	%
MTR Gaming	8,852				1,270			597.0		%
	24,040				15,972			50.5		%
	—			—	—
Hotel:
Eldorado Reno	5,675				5,180			9.6		%
Eldorado Shreveport	2,177				2,176			—		%
MTR Gaming	1,341				199			573.9		%
	9,193				7,555			21.7		%
	—			—	—
Other:
Eldorado Reno	1,479				1,478			0.1		%
Eldorado Shreveport	820				847			(3.2	)	%
MTR Gaming	3,866				773			400.1		%
	6,165				3,098			99.0		%
	—			—	—
Promotional allowances:
Eldorado Reno	(4,490		)		(4,226		)	6.2		%
Eldorado Shreveport	(6,514		)		(6,577		)	(1.0	)	%
MTR Gaming	(4,992		)		(776		)	543.3		%
	(15,996		)		(11,579		)	38.1		%
Net operating revenues	$	183,540			$	78,949		132.5		%

Other comprehensive income for the quarter decreased approximately $9,513,969 during the quarter due to the ERI Investment Liquidation.

~~Nine~~Operational ~~Months~~highlights ~~Ended~~for ~~November~~Mesquite for the three months ended March 3031, ~~2015~~2016 ~~Compared~~included tonet revenues of approximately $28.8 million, operating expenses of approximately $23.2 million, and interest expense of approximately $1.0 million. Mesquite's net income for the ~~Nine~~quarter ~~Months~~was ~~Ended~~approximately ~~November 30~~$4.7 million, ~~2014~~compared with net income of approximately $4.4 million for the corresponding period of 2015. The year over year increase in net income of approximately $0.3 million was due primarily to increases of approximately $0.6 million and $0.2 million in net operating revenues and operating expenses, respectively.

For the nine months ended November 30, 2015, the Company’s equity in the net income of its unconsolidated investees was approximately $1.3 million, compared to approximately $0.0 million for the corresponding period of the prior fiscal year. Equity in the earnings of Mesquite increased approximately $1.2 million, while there was no equity in the earnings of Eldorado during the current period compared to $0.1 million of equity in the net loss of Eldorado during the prior fiscal year period. Professional fees and other expenses incurred by the Company during the nine months ended November 30, 2015 were consistent with those incurred during the same period of the prior fiscal year. Income tax expense during the quarter increased approximately $0.4 million when compared to the same period in 2014 due an increase in equity in net income of unconsolidated investees.

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Other comprehensive income increased approximately $20.5 million during the nine months ended November 30, 2015 as a result of adjusting the carrying value of the ERI shares to fair value based on trading activity.

Operational highlights for Mesquite for the nine months ended September 30, 2015 include net revenues of approximately $74.1 million, operating expenses of approximately $67.7 million, and interest expense of approximately $3.3 million. Net income for the nine months ended September 30, 2015 was approximately $3.1 million, compared with net income of approximately $0.2 million for the corresponding period of 2014. The year over year increase in net income of approximately $2.9 million was due primarily to approximate $3.4 million and $0.3 million increases in net operating revenues and operating expenses, respectively, combined with a $0.4 million increase in interest expense.

ERI's operating results for the nine months ended September 30, 2015 includes those of the Eldorado and MTR Gaming properties, while the results for the prior year period include only those of Eldorado. Operational highlights for ERI for the nine months ended September 30, 2015 included net revenues of approximately $533.6 million, operating income of approximately $59.2 million, and interest expense of approximately $48.9 million. ERI's net income for the nine months ended September 30, 2015 was approximately $4.0 million, compared with a net loss of approximately $3.5 million for the corresponding period of 2014. The year over year increase in net income of approximately $7.5 million was due primarily to a $35.5 million increase in interest expense, along with increases in net operating revenues and operating expenses as illustrated in the following tables.

The following table highlights the results of ERI's and Eldorado's operations for the nine months ended September 30, 2015 and 2014, respectively:

	2015		2014			Percent Increase (Decrease)
Net operating revenues	$	533,624	$	197,728		169.9	%
Operating expenses	476,806		182,723			160.9	%
Equity in income of unconsolidated affiliates	3,136		3,019			3.9	%
Operating income	59,235		11,105			433.4	%
Net income (loss)	4,030		(3,488		)	215.5	%

ERI's Net Operating Revenues. MTR Gaming contributed $349.7 million of net operating revenues for the nine months ended September 30, 2015, consisting primarily of casino revenues. Including the incremental MTR Gaming revenues, ERI's net operating revenues increased 169.9% for the nine months ended September 30, 2015 compared to the same prior year period. Excluding incremental MTR Gaming revenues, ERI's consolidated net operating revenues increased 1.4% for the nine months ended September 30, 2015 compared to the same prior year period primarily due to improvements in casino revenues at both Eldorado Reno and Eldorado Shreveport.

ERI's Operating Income and Net Income. ERI's consolidated operating income and net income (loss) includes operating income and net income of $42.0 million and $21.0 million, respectively, attributable to MTR Gaming for the nine months ended September 30, 2015. Excluding operating income attributable to MTR Gaming, ERI's consolidated operating income was $17.2 million and net loss was $17.0 million during the nine months ended September 30, 3015. Excluding operating income attributable to MTR Gaming, ERI's consolidated operating income included incremental corporate costs offset by decreased acquisition charges, an increase in equity in net income of unconsolidated affiliates, lower depreciation and improved operating income at both Eldorado Reno and Eldorado Shreveport. Excluding net income attributable to MTR Gaming, the decrease in net income is primarily attributable to the same factors impacting operating income along with a $1.8 million loss on the early retirement of debt associated with ERI's refinancing in July 2015.

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	Nine Months EndedSeptember 30,
	2015				2014			Percent Increase (Decrease)
Casino:
Eldorado Reno	$	48,431			$	47,914		1.1		%
Eldorado Shreveport	95,729				93,967			1.9		%
MTR Gaming	316,647				14,399			2,099.1		%
	460,807				156,280			194.9		%
Pari-mutuel commissions-MTR Gaming	8,042				446			1,703.1		%
Food and beverage:
Eldorado Reno	25,091				25,108			(0.1	)	%
Eldorado Shreveport	19,271				18,970			1.6		%
MTR Gaming	25,355				1,270			1,896.5		%
	69,717				45,348			53.7		%
	—			—	—
Hotel:
Eldorado Reno	14,334				14,099			1.7		%
Eldorado Shreveport	6,485				6,449			0.6		%
MTR Gaming	3,852				199			1,835.7		%
	24,671				20,747			18.9		%
	—			—	—
Other:
Eldorado Reno	4,332				4,240			2.2		%
Eldorado Shreveport	2,428				2,502			(3.0	)	%
MTR Gaming	10,704				773			1,284.7		%
	17,464				7,515			132.4		%
	—			—	—
Promotional allowances:
Eldorado Reno	(12,227		)		(12,066		)	1.3		%
Eldorado Shreveport	(19,994		)		(19,766		)	1.2		%
MTR Gaming	(14,856		)		(776		)	1,814.4		%
	(47,077		)		(32,608		)	44.4		%
Net operating revenues	$	533,624			$	197,728		169.9		%

Liquidity and Capital Resources

The Company expects to incur during the remainder of its current fiscal year ending February 2928, ~~2016~~2017 approximately $0.1 million in costs associated with the Company’s ownership of its equity interests in ~~ERI and~~ Mesquite. All costs incurred are expected to be funded by the Newport Funds. Thus, management believes the Company has access to the resources needed to fund its operations and commitments during the remainder of its current fiscal year. The Company has no current plans to make any additional investments.

Events That May Impact Future Results

See Note 4 to the consolidated financial statements for recent events involving ERI.

Management believes that ERI’s recent consummation of the Silver Legacy/Circus Circus Reno Acquisition and ERI's debt refinancing are likely to significantly impact the Company’s future financial performance. However, the nature and extent of any such impact will depend on numerous factors that are beyond the control of the Company. Accordingly, management is unable to determine at this time the nature or extend to which the Company’s future financial performance may be affected by ERI's consummation of the aforementioned transactions.

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Critical Accounting Estimates and Policies

A description of our critical accounting policies can be found in Item 7 of our Annual Report on Form 10-K/A for the year ended February 2829, ~~2015~~2016. There were no material changes to those policies during the ~~nine~~three months ended ~~November~~May 3031, ~~2015~~2016.

Recently Issued Accounting Standards

No recently issued accounting pronouncements not yet adopted are expected to have a material impact on our future financial position, results of operations, or cash flows.



Item 3.	Quantitative and Qualitative Disclosures About Market Risk.

Not Applicable.



Item 4.	Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), an evaluation was performed by management, with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) ~~are~~were effective as of ~~November~~May 3031, ~~2015~~2016.

Changes in Internal Control Over Financial Reporting

As required by Rule 13a-15(d) under the Exchange Act, our management, including our principal executive officer and principal financial officer, has evaluated our internal control over financial reporting. Based on that evaluation, there have been no changes in our internal control over financial reporting during the three months ended ~~November~~May 3031, ~~2015~~2016 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

OTHER INFORMATION



Item 1.	Legal Proceedings.

None.



Item 1A.	Risk Factors.

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Not applicable.



Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.



Item 3.	Defaults Upon Senior Securities.

None.



Item 4.	Mine Safety Disclosures.

Not applicable.



Item 5.	Other Information.

None.

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Item 6.	Exhibits.

The list of exhibits set forth in the accompanying Exhibit Index is incorporated by reference into this Item 6.

SIGNATURES

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.

	NGA HOLDCO, LLC
Date: January 12, 2016	By:	/S/ TIMOTHY T. JANSZEN
Date: January 5, 2017	By:	/S/ TIMOTHY T. JANSZEN
		Timothy T. JanszenOperating Manager(Principal Executive Officer)
Date: January 12, 2016	By:	/S/ ROGER A. MAY
Date: January 5, 2017	By:	/S/ ROGER A. MAY
		Roger A. MayManager(Principal Financial Officer)

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EXHIBIT INDEX

Exhibit No.		Description
31.1		Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer furnished as required by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Principal Financial Officer furnished as required by Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements from NGA Holdco, LLC's Quarterly Report on Form 10-Q for the three months ended ~~November~~May 3031, ~~2015~~2016, filed with the Securities and Exchange Commission on January 125, ~~2016~~2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets at ~~November~~May 3031, ~~2015~~2016 and February 2829, ~~2015~~2016; (ii) the Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2015~~2016 and ~~2014~~2015; (iii) the Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~November~~May 3031, ~~2015~~2016 and ~~2014~~2015; and (iv) the Notes to Consolidated Financial Statements.

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