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Note 14 - Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 14.    SEGMENT INFORMATION

We have four reportable segments consisting of: (i) Las Vegas Locals; (ii) Downtown Las Vegas; (iii) Midwest & South; and (iv) Online (collectively "Reportable Segments"). The Online segment includes the operating results of our online gaming operations through collaborative arrangements with third parties throughout the United States and the operations of Boyd Interactive, inclusive of our acquisition of Pala Interactive on November 1, 2022, and our acquisition of Resorts Digital on September 1, 2024. To reconcile Reportable Segments information to the consolidated information, the Company has aggregated nonreportable operating segments into a Managed & Other category. The Managed & Other category includes management fees earned under our management contract with Wilton Rancheria for the management of Sky River Casino in northern California and the operating results of Lattner Entertainment Group Illinois, LLC, our Illinois distributed gaming operator. The table in Note 1, Summary of Significant Accounting Policies, lists the classification of each of our 28 gaming entertainment properties that were aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure.

 

Results of Operations - Total Reportable Segment Revenues and Adjusted EBITDAR

We evaluate profitability based on Adjusted EBITDAR, which represents earnings before interest expense, interest income, 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 extinguishments and modifications of debt, other items, net and master lease rent expense, as applicable. Total Reportable Segment Adjusted EBITDAR is the aggregate sum of the Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas and Midwest & South segments and Adjusted EBITDAR related to the online operations in our Online segment. Results for Downtown Las Vegas include the results of our Hawaii-based travel agency as our Downtown Las Vegas properties cater to the Hawaiian market.

 

EBITDAR is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with GAAP, facilitates comparisons between us and our competitors and provides our investors a more complete understanding of our operating results before the impact of investing transactions, financing transactions and income taxes. Management has historically adjusted EBITDAR when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results.

 

The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments and our Managed & Other category to reconcile to total revenues:

 

  

Year Ended December 31, 2024

 
      

Food &

          

Management

         
  

Gaming

  

Beverage

  

Room

  

Online

  

Fee

  

Other

  

Total

 

(In thousands)

 

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

 

Revenues

                            

Las Vegas Locals

 $647,753  $89,842  $98,365  $—  $—  $58,548  $894,508 

Downtown Las Vegas

  145,878   44,775   27,498   —   —   11,940   230,091 

Midwest & South

  1,747,032   168,905   78,745   —   —   68,733   2,063,415 

Online

  —   —   —   606,233   —   —   606,233 

Managed & Other

  43,263   —   —   —   88,407   4,277   135,947 

Total Revenues

 $2,583,926  $303,522  $204,608  $606,233  $88,407  $143,498  $3,930,194 

 

  

Year Ended December 31, 2023

 
      

Food &

          

Management

         
  

Gaming

  

Beverage

  

Room

  

Online

  

Fee

  

Other

  

Total

 

(In thousands)

 

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

 

Revenues

                            

Las Vegas Locals

 $684,661  $90,182  $96,157  $—  $—  $57,118  $928,118 

Downtown Las Vegas

  143,899   42,252   24,986   —   —   11,270   222,407 

Midwest & South

  1,741,068   155,983   77,974   —   —   66,920   2,041,945 

Online

  —   —   —   422,211   —   —   422,211 

Managed & Other

  43,660   —   —   —   76,921   3,230   123,811 

Total Revenues

 $2,613,288  $288,417  $199,117  $422,211  $76,921  $138,538  $3,738,492 

 

  

Year Ended December 31, 2022

 
      

Food &

          

Management

         
  

Gaming

  

Beverage

  

Room

  

Online

  

Fee

  

Other

  

Total

 

(In thousands)

 

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

  

Revenue

 

Revenues

                            

Las Vegas Locals

 $700,230  $88,219  $87,726  $—  $—  $54,555  $930,730 

Downtown Las Vegas

  139,115   41,578   24,950   —   —   9,689   215,332 

Midwest & South

  1,788,494   146,182   76,395   —   —   64,995   2,076,066 

Online

  —   —   —   253,898   —   —   253,898 

Managed & Other

  46,891   —   —   —   26,905   5,555   79,351 

Total Revenues

 $2,674,730  $275,979  $189,071  $253,898  $26,905  $134,794  $3,555,377 

.

The following table reconciles, for the periods indicated, our Reportable Segments and our Managed & Other category Adjusted EBITDAR to net income, as reported in our accompanying consolidated statements of operations:

 

  

Year Ended December 31,

 

(In thousands)

 

2024

  

2023

  

2022

 

Adjusted EBITDAR

            

Las Vegas Locals

 $428,423  $470,971  $481,643 

Downtown Las Vegas

  83,325   85,507   86,049 

Midwest & South

  765,706   781,673   830,782 

Online

  107,604   62,337   39,778 

Managed & Other

  96,153   84,478   40,981 

Corporate expense

  (90,618)  (90,175)  (88,724)

Adjusted EBITDAR

  1,390,593   1,394,791   1,390,509 

Other operating costs and expenses

            

Deferred rent

  648   708   768 

Master lease rent expense

  111,406   108,398   106,616 

Depreciation and amortization

  276,639   256,780   258,179 

Share-based compensation expense

  29,666   32,379   34,066 

Project development, preopening and writedowns

  28,572   (8,935)  (18,936)

Impairment of assets

  10,500   107,837   40,775 

Other operating items, net

  5,385   (4,207)  (12,183)

Total other operating costs and expenses

  462,816   492,960   409,285 

Operating income

  927,777   901,831   981,224 

Other expense (income)

            

Interest income

  (1,625)  (23,886)  (21,530)

Interest expense, net of amounts capitalized

  177,409   171,247   151,249 

Loss on early extinguishments and modifications of debt

  —   —   19,815 

Other, net

  (10)  1,563   2,884 

Total other expense, net

  175,774   148,924   152,418 

Income before income taxes

  752,003   752,907   828,806 

Income tax provision

  (174,051)  (132,884)  (189,429)

Net income

 $577,952  $620,023  $639,377 

 

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

 

Total Reportable Segment Expenses

The Company's chief operating decision maker ("CODM") is our President and Chief Executive Officer. To monitor performance, the CODM regularly receives and reviews revenue and Adjusted EBITDAR information monthly for each operating segment aggregated by reportable segment, as well as consolidated expense information. Additionally, the CODM receives estimated and forecasted expense information by operating segment, as well as Adjusted EBITDAR margins and customer play on a segment basis. The CODM uses Adjusted EBITDAR margins to monitor the operating efficiencies of segments and customer play trends to monitor the overall health of the player in each segment. The CODM evaluates operating performance and allocates resources based on revenue and Adjusted EBITDAR. In particular, the CODM utilizes Adjusted EBITDAR to evaluate total company performance and individual operating segment performance. In addition, the CODM utilizes Adjusted EBITDAR in the evaluation of incentive compensation and in the annual budget process. Finally, the CODM uses Adjusted EBITDAR in the evaluation of potential acquisitions. 

 

As expense information provided is either at the consolidated Company level or is estimated or forecasted, and the CODM is not able to easily compute any segment expenses, the Company has aggregated all expenses into a single other segment expense category to reconcile segment revenues to Adjusted EBITDAR, the segment performance measure. The following table reconciles, for the periods indicated, the revenues of our Reportable Segments and our Managed & Other category to Adjusted EBITDAR.

 

  

Las Vegas

  

Downtown

  

Midwest &

      

Managed &

     

(In thousands)

 

Locals

  

Las Vegas

  

South

  

Online

  

Other

  

Total

 

Year Ended December 31, 2024

                        

Revenues

 $894,508  $230,091  $2,063,415  $606,233  $135,947  $3,930,194 

Other segment expenses (1)

  466,085   146,766   1,297,709   498,629   39,794   2,448,983 

Corporate expense

  —   —   —   —   —   90,618 

Adjusted EBITDAR

 $428,423  $83,325  $765,706  $107,604  $96,153  $1,390,593 
                         

Year Ended December 31, 2023

                        

Revenues

 $928,118  $222,407  $2,041,945  $422,211  $123,811  $3,738,492 

Other segment expenses (1)

  457,147   136,900   1,260,272   359,874   39,333   2,253,526 

Corporate expense

  —   —   —   —   —   90,175 

Adjusted EBITDAR

 $470,971  $85,507  $781,673  $62,337  $84,478  $1,394,791 
                         

Year Ended December 31, 2022

                        

Revenues

 $930,730  $215,332  $2,076,066  $253,898  $79,351  $3,555,377 

Other segment expenses (1)

  449,087   129,283   1,245,284   214,120   38,370   2,076,144 

Corporate expense

  —   —   —   —   —   88,724 

Adjusted EBITDAR

 $481,643  $86,049  $830,782  $39,778  $40,981  $1,390,509 

 

(1) Other segment expenses include gaming taxes, payroll and payroll related costs, advertising, property insurance, property taxes, professional fees, utilities, and various other expenses related to our casino, hotel and online operations.

 

Total Reportable Segment Assets

The Company's assets by Reportable Segment and Managed & Other category consisted of the following amounts:

 

  

December 31,

  

December 31,

 

(In thousands)

 

2024

  

2023

 

Assets

        

Las Vegas Locals

 $1,623,935  $1,634,732 

Downtown Las Vegas

  292,765   295,494 

Midwest & South

  3,855,386   3,805,301 

Online

  185,567   155,356 

Managed & Other

  115,839   124,161 

Corporate

  318,323   258,082 

Total Assets

 $6,391,815  $6,273,126

 

Capital Expenditures

The Company's capital expenditures by Reportable Segment and Managed & Other category consisted of the following:

 

  

Year Ended December 31,

 

(In thousands)

 

2024

  

2023

  

2022

 

Capital Expenditures

            

Las Vegas Locals

 $71,182  $82,918  $37,339 

Downtown Las Vegas

  12,040   42,233   52,423 

Midwest & South

  228,457   200,577   109,475 

Online

  42   224   462 

Managed & Other

  5,050   5,001   4,104 

Corporate

  90,959   55,776   67,874 

Total Capital Expenditures

  407,730   386,729   271,677 

Change in Accrued Capital Expenditure Additions

  (7,330)  (12,779)  (2,522)

Cash-Based Capital Expenditures

 $400,400  $373,950  $269,155 

 

The Company utilizes the Corporate entities to centralize the development of major renovation and other capital development projects that are included as construction in progress. After the project is complete, the corporate entities transfer the projects to the segment subsidiaries.