It's a parameter expansion, it means if the third argument is null or unset, replace it with what's after :-
$ x=
$ echo ${x:-1}
1
$ echo $x
$
There's also another similar PE that assign the value if the variable is null:
$ x=
$ echo ${x:=1}
1
$ echo $x
1
Check http://wiki.bash-hackers.org/syntax/pe