Note 9 - Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting Disclosure [Text Block]

NOTE 9. SEGMENT INFORMATION

We aggregate certain of our gaming entertainment properties in order to present three Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South. The table below lists the classification of each of our properties.

Las Vegas Locals
Gold Coast Hotel and Casino		Las Vegas, Nevada
The Orleans Hotel and Casino		Las Vegas, Nevada
Sam's Town Hotel and Gambling Hall		Las Vegas, Nevada
Suncoast Hotel and Casino		Las Vegas, Nevada
Eastside Cannery Casino and Hotel ⁽¹⁾		Las Vegas, Nevada
Aliante Casino + Hotel + Spa		North Las Vegas, Nevada
Cannery Casino Hotel		North Las Vegas, Nevada
Jokers Wild Casino		Henderson, Nevada
Downtown Las Vegas
California Hotel and Casino		Las Vegas, Nevada
Fremont Hotel and Casino		Las Vegas, Nevada
Main Street Station Casino, Brewery and Hotel		Las Vegas, Nevada
Midwest & South
Par-A-Dice Hotel Casino		East Peoria, Illinois
Belterra Casino Resort		Florence, Indiana
Blue Chip Casino, Hotel & Spa		Michigan City, Indiana
Diamond Jo Dubuque		Dubuque, Iowa
Diamond Jo Worth		Northwood, Iowa
Kansas Star Casino		Mulvane, Kansas
Amelia Belle Casino		Amelia, Louisiana
Delta Downs Racetrack Casino & Hotel		Vinton, Louisiana
Evangeline Downs Racetrack and Casino		Opelousas, Louisiana
Sam's Town Hotel and Casino		Shreveport, Louisiana
Treasure Chest Casino		Kenner, Louisiana
IP Casino Resort Spa		Biloxi, Mississippi
Sam's Town Hotel and Gambling Hall		Tunica, Mississippi
Ameristar Casino Hotel Kansas City		Kansas City, Missouri
Ameristar Casino Resort Spa St. Charles		St. Charles, Missouri
Belterra Park		Cincinnati, Ohio
Valley Forge Casino Resort		King of Prussia, Pennsylvania

⁽¹⁾Eastside Cannery is currently closed due to local market conditions.

Total Reportable Segment Departmental Revenues and Adjusted EBITDAR

We evaluate each of our property's profitability based upon Property Adjusted EBITDAR, which represents each property's earnings before interest expense, income taxes, depreciation and amortization, deferred rent, share-based compensation expense, project development, preopening and writedowns expenses, impairments of assets, other operating items, net, gain or loss on early retirements of debt, and master lease rent expense, as applicable. Total Reportable Segment Adjusted EBITDAR is the aggregate sum of the Property Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest & South segments. Results for Downtown Las Vegas include the results of our Hawaii-based travel agency and captive insurance company. Results for Lattner, our Illinois distributed gaming operator, and for our online gaming initiatives are included in our Midwest & South segment.

The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments:

	*Three Months Ended September 30, 2021*
			*Food &*
	*Gaming*		*Beverage*		*Room*		*Other*		*Total*
*(In thousands)*	*Revenue*		*Revenue*		*Revenue*		*Revenue*		*Revenue*
Revenues
Las Vegas Locals	$	179,441	$	20,412	$	20,176	$	11,235	$	231,264
Downtown Las Vegas		28,132		7,343		4,000		2,662		42,137
Midwest & South		466,654		33,346		20,141		49,518		569,659
Total Revenues	$	674,227	$	61,101	$	44,317	$	63,415	$	843,060

	*Three Months Ended September 30, 2020*
			*Food &*
	*Gaming*		*Beverage*		*Room*		*Other*		*Total*
*(In thousands)*	*Revenue*		*Revenue*		*Revenue*		*Revenue*		*Revenue*
Revenues
Las Vegas Locals	$	141,143	$	12,501	$	10,914	$	6,518	$	171,076
Downtown Las Vegas		12,678		2,992		1,350		519		17,539
Midwest & South		412,144		23,285		14,661		13,533		463,623
Total Revenues	$	565,965	$	38,778	$	26,925	$	20,570	$	652,238

	*Nine Months Ended September 30, 2021*
			*Food &*
	*Gaming*		*Beverage*		*Room*		*Other*		*Total*
*(In thousands)*	*Revenue*		*Revenue*		*Revenue*		*Revenue*		*Revenue*
Revenues
Las Vegas Locals	$	516,174	$	52,959	$	49,344	$	31,305	$	649,782
Downtown Las Vegas		70,168		17,657		9,269		5,256		102,350
Midwest & South		1,433,273		92,025		50,771		161,768		1,737,837
Total Revenues	$	2,019,615	$	162,641	$	109,384	$	198,329	$	2,489,969

	*Nine Months Ended September 30, 2020*
			*Food &*
	*Gaming*		*Beverage*		*Room*		*Other*		*Total*
*(In thousands)*	*Revenue*		*Revenue*		*Revenue*		*Revenue*		*Revenue*
Revenues
Las Vegas Locals	$	298,307	$	47,039	$	35,278	$	19,907	$	400,531
Downtown Las Vegas		45,663		15,599		7,825		7,229		76,316
Midwest & South		916,871		76,685		37,467		34,752		1,065,775
Total Revenues	$	1,260,841	$	139,323	$	80,570	$	61,888	$	1,542,622

The following table reconciles, for the periods indicated, total Adjusted EBITDAR to operating income, as reported in our accompanying condensed consolidated statements of operations:

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
*(In thousands)*	*2021*			*2020*			*2021*			*2020*
Adjusted EBITDAR
Las Vegas Locals	$	125,360		$	78,900		$	349,572		$	128,520
Downtown Las Vegas		13,222			(1,511	)		31,083			1,225
Midwest & South		222,058			182,502			700,199			320,986
Corporate expense		(19,943	)		(21,048	)		(62,165	)		(51,333	)
Adjusted EBITDAR		340,697			238,843			1,018,689			399,398

Other operating costs and expenses
Deferred rent		207			217			621			666
Master lease rent expense		26,306			25,914			78,396			75,992
Depreciation and amortization		67,586			69,320			199,332			205,498
Share-based compensation expense		9,783			(858	)		28,307			10,026
Project development, preopening and writedowns		10,646			2,249			13,515			9,582
Impairment of assets		—			—			—			171,100
Other operating items, net		3,023			14,928			15,295			23,570
Total other operating costs and expenses		117,551			111,770			335,466			496,434
Operating income (loss)	$	223,146		$	127,073		$	683,223		$	(97,036	)

For purposes of this presentation, corporate expense excludes its portion of share-based compensation expense. Corporate expense represents unallocated payroll, professional fees, aircraft expenses and various other expenses not directly related to our casino and hotel operations.

Total Reportable Segment Assets

The Company's assets by Reportable Segment consisted of the following amounts:

	*September 30,*		*December 31,*
*(In thousands)*	*2021*		*2020*
Assets
Las Vegas Locals	$	1,663,707	$	1,690,511
Downtown Las Vegas		247,110		213,507
Midwest & South		3,908,874		3,984,063
Total Reportable Segment Assets		5,819,691		5,888,081
Corporate		680,426		670,867
Total Assets	$	6,500,117	$	6,558,948

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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