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Segment Information | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Distributed Gaming and Casinos. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. The Company’s Casinos segment includes results of operations and assets related to Rocky Gap in Flintstone, Maryland and its three casino properties in Pahrump, Nevada for the periods cover by this report. The Corporate and Other segment includes the Company’s cash and cash equivalents and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable operating segments because these costs are not easily allocable and to do so would not be practical. Results of Operations - Segment Net Income (Loss), Net Revenues and Adjusted EBITDA The Company evaluated its segments’ profitability based upon Adjusted EBITDA, which represents earnings before interest expense and other non-operating income (expense), income taxes, depreciation and amortization, preopening expenses, acquisition and merger expenses, class action litigation expense, share-based compensation expense, executive severance and sign-on bonuses, gain on revaluation of contingent consideration, impairments and other gains and losses, as applicable. The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles Adjusted EBITDA to net income (loss):
|  | Three Months Ended September 30, 2017 |
(In thousands) |  | Distributed Gaming |  |  | Casinos |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 80,746 |  |  | $ | 27,484 |  |  | $ | 92 |  |  | $ | 108,322 |
Adjusted EBITDA |  |  | 11,169 |  |  |  | 8,928 |  |  |  | (5,024 | ) |  |  | 15,073 |
Acquisition expenses |  |  | — |  |  |  | — |  |  |  | (2,975 | ) |  |  | (2,975 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (1,603 | ) |  |  | (1,603 | )
Loss on disposal of property and equipment |  |  | (272 | ) |  |  | (35 | ) |  |  | (1 | ) |  |  | (308 | )
Gain on revaluation of contingent consideration |  |  | 1,719 |  |  |  | — |  |  |  | — |  |  |  | 1,719 |
Preopening expenses |  |  | (121 | ) |  |  | — |  |  |  | (161 | ) |  |  | (282 | )
Class action litigation expenses |  |  | — |  |  |  | — |  |  |  | (1,530 | ) |  |  | (1,530 | )
Sign-on bonuses |  |  | — |  |  |  | — |  |  |  | (166 | ) |  |  | (166 | )
Depreciation and amortization |  |  | (4,937 | ) |  |  | (2,202 | ) |  |  | (400 | ) |  |  | (7,539 | )
Income (loss) from operations |  |  | 7,558 |  |  |  | 6,691 |  |  |  | (11,860 | ) |  |  | 2,389 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (41 | ) |  |  | (5 | ) |  |  | (1,839 | ) |  |  | (1,885 | )
Total non-operating expense, net |  |  | (41 | ) |  |  | (5 | ) |  |  | (1,839 | ) |  |  | (1,885 | )
Income (loss) before income tax benefit |  |  | 7,517 |  |  |  | 6,686 |  |  |  | (13,699 | ) |  |  | 504 |
Income tax benefit |  |  | — |  |  |  | — |  |  |  | 8,051 |  |  |  | 8,051 |
Net income (loss) |  | $ | 7,517 |  |  | $ | 6,686 |  |  | $ | (5,648 | ) |  | $ | 8,555 |
|  | Three Months Ended September 30, 2016 |
(In thousands) |  | Distributed Gaming |  |  | Casinos |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 78,253 |  |  | $ | 25,909 |  |  | $ | 64 |  |  | $ | 104,226 |
Adjusted EBITDA |  |  | 10,483 |  |  |  | 6,511 |  |  |  | (4,439 | ) |  |  | 12,555 |
Merger expenses |  |  | — |  |  |  | — |  |  |  | (139 | ) |  |  | (139 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (1,654 | ) |  |  | (1,654 | )
Gain on disposal of property and equipment |  |  | 14 |  |  |  | — |  |  |  | 330 |  |  |  | 344 |
Preopening expenses |  |  | (666 | ) |  |  | — |  |  |  | (135 | ) |  |  | (801 | )
Depreciation and amortization |  |  | (4,871 | ) |  |  | (2,034 | ) |  |  | (318 | ) |  |  | (7,223 | )
Income (loss) from operations |  |  | 4,960 |  |  |  | 4,477 |  |  |  | (6,355 | ) |  |  | 3,082 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (43 | ) |  |  | (3 | ) |  |  | (1,643 | ) |  |  | (1,689 | )
Total non-operating expense, net |  |  | (43 | ) |  |  | (3 | ) |  |  | (1,643 | ) |  |  | (1,689 | )
Income (loss) before income tax provision |  |  | 4,917 |  |  |  | 4,474 |  |  |  | (7,998 | ) |  |  | 1,393 |
Income tax provision |  |  | (60 | ) |  |  | — |  |  |  | (31 | ) |  |  | (91 | )
Net income (loss) |  | $ | 4,857 |  |  | $ | 4,474 |  |  | $ | (8,029 | ) |  | $ | 1,302 |
|  | Nine Months Ended September 30, 2017 |
(In thousands) |  | Distributed Gaming |  |  | Casinos |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 247,192 |  |  | $ | 78,002 |  |  | $ | 267 |  |  | $ | 325,461 |
Adjusted EBITDA |  |  | 37,753 |  |  |  | 22,164 |  |  |  | (16,272 | ) |  |  | 43,645 |
Acquisition expenses |  |  | — |  |  |  | — |  |  |  | (5,041 | ) |  |  | (5,041 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (5,352 | ) |  |  | (5,352 | )
Loss on disposal of property and equipment |  |  | (272 | ) |  |  | (35 | ) |  |  | (1 | ) |  |  | (308 | )
Gain on revaluation of contingent consideration |  |  | 1,719 |  |  |  | — |  |  |  | — |  |  |  | 1,719 |
Preopening expenses |  |  | (730 | ) |  |  | — |  |  |  | (398 | ) |  |  | (1,128 | )
Class action litigation expenses |  |  | — |  |  |  | — |  |  |  | (1,585 | ) |  |  | (1,585 | )
Sign-on bonuses |  |  | — |  |  |  | — |  |  |  | (166 | ) |  |  | (166 | )
Depreciation and amortization |  |  | (14,513 | ) |  |  | (5,798 | ) |  |  | (1,188 | ) |  |  | (21,499 | )
Income (loss) from operations |  |  | 23,957 |  |  |  | 16,331 |  |  |  | (30,003 | ) |  |  | 10,285 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (361 | ) |  |  | 34 |  |  |  | (5,241 | ) |  |  | (5,568 | )
Total non-operating income (expense), net |  |  | (361 | ) |  |  | 34 |  |  |  | (5,241 | ) |  |  | (5,568 | )
Income (loss) before income tax benefit |  |  | 23,596 |  |  |  | 16,365 |  |  |  | (35,244 | ) |  |  | 4,717 |
Income tax benefit |  |  | — |  |  |  | — |  |  |  | 10,893 |  |  |  | 10,893 |
Net income (loss) |  | $ | 23,596 |  |  | $ | 16,365 |  |  | $ | (24,351 | ) |  | $ | 15,610 |
|  | Nine Months Ended September 30, 2016 |
(In thousands) |  | Distributed Gaming |  |  | Casinos |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 224,602 |  |  | $ | 73,031 |  |  | $ | 185 |  |  | $ | 297,818 |
Adjusted EBITDA |  |  | 32,065 |  |  |  | 18,118 |  |  |  | (13,779 | ) |  |  | 36,404 |
Merger expenses |  |  | — |  |  |  | — |  |  |  | (614 | ) |  |  | (614 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (2,509 | ) |  |  | (2,509 | )
Gain on disposal of property and equipment |  |  | 14 |  |  |  | — |  |  |  | 330 |  |  |  | 344 |
Preopening expenses |  |  | (1,655 | ) |  |  | — |  |  |  | (238 | ) |  |  | (1,893 | )
Depreciation and amortization |  |  | (13,166 | ) |  |  | (5,720 | ) |  |  | (976 | ) |  |  | (19,862 | )
Income (loss) from operations |  |  | 17,258 |  |  |  | 12,398 |  |  |  | (17,786 | ) |  |  | 11,870 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (118 | ) |  |  | (4 | ) |  |  | (4,664 | ) |  |  | (4,786 | )
Other, net |  |  | — |  |  |  | — |  |  |  | 18 |  |  |  | 18 |
Total non-operating expense, net |  |  | (118 | ) |  |  | (4 | ) |  |  | (4,646 | ) |  |  | (4,768 | )
Income (loss) before income tax provision |  |  | 17,140 |  |  |  | 12,394 |  |  |  | (22,432 | ) |  |  | 7,102 |
Income tax provision |  |  | (60 | ) |  |  | — |  |  |  | (701 | ) |  |  | (761 | )
Net income (loss) |  | $ | 17,080 |  |  | $ | 12,394 |  |  | $ | (23,133 | ) |  | $ | 6,341 |
Total Segment Assets The Company's assets by segment consisted of the following amounts:
(In thousands) |  | Distributed Gaming |  |  | Casinos |  |  | Corporate and Other |  |  | Eliminations |  |  | Consolidated |
Balance at September 30, 2017 |  | $ | 298,734 |  |  | $ | 109,352 |  |  | $ | 80,953 |  |  | $ | (53,398 | ) |  | $ | 435,641 |
Balance at December 31, 2016 |  | $ | 294,822 |  |  | $ | 108,418 |  |  | $ | 69,236 |  |  | $ | (53,398 | ) |  | $ | 419,078 |

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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