XML 37 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Information | Note 16 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. During the third quarter of 2015, the Company redefined its reportable segments to reflect the change in its business following the Merger. Prior to the Merger, the Company conducted its business through the following two segments: Rocky Gap and Other. Information for the period prior to the Merger has been recast to reflect the new segment structure and present comparative year-over-year results. The Company’s Casinos segment involves the ownership and operation of eight resort casino properties in Nevada and Maryland. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns and liquor stores) in Nevada and Montana, and the operation of wholly-owned branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables 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. Amounts in the Eliminations column represent the intercompany management fee for Rocky Gap. The Company evaluates each segment’s profitability based upon such segment’s Adjusted EBITDA, which represents each segment's earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening expense, acquisition and merger expenses, share-based compensation expenses, executive severance and sign-on bonuses, gain on revaluation of contingent consideration, class action litigation expenses, gain/loss on disposal of property and equipment or investments, and impairments and other losses, calculated before corporate overhead (which is not allocated to each segment). The following table sets forth, for the periods indicated, certain operating data for our segments, and reconciles Adjusted EBITDA to net income (loss) for each segment, as reported in our accompanying consolidated statements of operations:
|  | Year Ended December 31, 2017 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 179,175 |  |  | $ | 330,050 |  |  | $ | 583 |  |  | $ | 509,808 |
Adjusted EBITDA |  |  | 50,979 |  |  |  | 48,890 |  |  |  | (26,954 | ) |  |  | 72,915 |
Acquisition expenses |  |  | — |  |  |  | — |  |  |  | (5,041 | ) |  |  | (5,041 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (8,754 | ) |  |  | (8,754 | )
Gain on revaluation of contingent consideration |  |  | — |  |  |  | 1,719 |  |  |  | — |  |  |  | 1,719 |
Preopening expenses |  |  | — |  |  |  | (1,234 | ) |  |  | (398 | ) |  |  | (1,632 | )
Class action litigation expenses |  |  | — |  |  |  | — |  |  |  | (1,617 | ) |  |  | (1,617 | )
Executive severance and sign-on bonuses |  |  | (636 | ) |  |  | — |  |  |  | (506 | ) |  |  | (1,142 | )
Other operating, net |  |  | (377 | ) |  |  | (174 | ) |  |  | 267 |  |  |  | (284 | )
Depreciation and amortization |  |  | (19,544 | ) |  |  | (19,601 | ) |  |  | (1,641 | ) |  |  | (40,786 | )
Income (loss) from operations |  |  | 30,422 |  |  |  | 29,600 |  |  |  | (44,644 | ) |  |  | 15,378 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | 16 |  |  |  | (390 | ) |  |  | (19,224 | ) |  |  | (19,598 | )
Loss on extinguishment of debt |  |  | — |  |  |  | — |  |  |  | (1,708 | ) |  |  | (1,708 | )
Gain on change in fair value of derivative |  |  | — |  |  |  | — |  |  |  | 178 |  |  |  | 178 |
Total non-operating income (expense), net |  |  | 16 |  |  |  | (390 | ) |  |  | (20,754 | ) |  |  | (21,128 | )
Income (loss) before income tax benefit |  |  | 30,438 |  |  |  | 29,210 |  |  |  | (65,398 | ) |  |  | (5,750 | )
Income tax benefit |  |  | — |  |  |  | — |  |  |  | 7,921 |  |  |  | 7,921 |
Net income (loss) |  | $ | 30,438 |  |  | $ | 29,210 |  |  | $ | (57,477 | ) |  | $ | 2,171 |
|  | Year Ended December 31, 2016 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Net revenues |  | $ | 97,132 |  |  | $ | 305,792 |  |  | $ | 280 |  |  | $ | 403,204 |
Adjusted EBITDA |  |  | 23,571 |  |  |  | 43,555 |  |  |  | (18,531 | ) |  |  | 48,595 |
Merger expenses |  |  | — |  |  |  | — |  |  |  | (614 | ) |  |  | (614 | )
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (3,878 | ) |  |  | (3,878 | )
Loss (gain) on disposal of property and equipment |  |  | (94 | ) |  |  | 40 |  |  |  | — |  |  |  | (54 | )
Preopening expenses |  |  | — |  |  |  | (2,179 | ) |  |  | (292 | ) |  |  | (2,471 | )
Executive severance and sign-on bonuses |  |  | — |  |  |  | — |  |  |  | (1,037 | ) |  |  | (1,037 | )
Depreciation and amortization |  |  | (7,351 | ) |  |  | (18,889 | ) |  |  | (1,266 | ) |  |  | (27,506 | )
Income (loss) from operations |  |  | 16,126 |  |  |  | 22,527 |  |  |  | (25,618 | ) |  |  | 13,035 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (9 | ) |  |  | (144 | ) |  |  | (6,301 | ) |  |  | (6,454 | )
Gain on sale of land held for sale |  |  | — |  |  |  | — |  |  |  | 4,525 |  |  |  | 4,525 |
Other, net |  |  | — |  |  |  | — |  |  |  | 869 |  |  |  | 869 |
Total non-operating expense, net |  |  | (9 | ) |  |  | (144 | ) |  |  | (907 | ) |  |  | (1,060 | )
Income (loss) before income tax benefit (provision) |  |  | 16,117 |  |  |  | 22,383 |  |  |  | (26,525 | ) |  |  | 11,975 |
Income tax benefit (provision) |  |  | — |  |  |  | (60 | ) |  |  | 4,385 |  |  |  | 4,325 |
Net income (loss) |  | $ | 16,117 |  |  | $ | 22,323 |  |  | $ | (22,140 | ) |  | $ | 16,300 |
|  | Year Ended December 31, 2015 |
(In thousands) |  | Casinos |  |  | Distributed Gaming (1) |  |  | Corporate and Other |  |  | Eliminations |  |  | Consolidated |
Net revenues |  | $ | 73,245 |  |  | $ | 103,610 |  |  | $ | 1,985 |  |  | $ | (1,798 | ) |  | $ | 177,042 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |
Adjusted EBITDA |  |  | 14,390 |  |  |  | 14,254 |  |  |  | (10,370 | ) |  |  | — |  |  |  | 18,274 |
Merger expenses |  |  | — |  |  |  | — |  |  |  | (11,525 | ) |  |  | — |  |  |  | (11,525 | )
Disposition of notes receivable |  |  | — |  |  |  | — |  |  |  | 23,590 |  |  |  | — |  |  |  | 23,590 |
Share-based compensation |  |  | — |  |  |  | — |  |  |  | (809 | ) |  |  | — |  |  |  | (809 | )
Loss on disposal of property and equipment |  |  | (8 | ) |  |  | — |  |  |  | (8 | ) |  |  | — |  |  |  | (16 | )
Gain on sale of investment |  |  | — |  |  |  | — |  |  |  | 750 |  |  |  | — |  |  |  | 750 |
Impairments and other losses |  |  | — |  |  |  | — |  |  |  | (682 | ) |  |  | — |  |  |  | (682 | )
Preopening expenses |  |  | — |  |  |  | (380 | ) |  |  | (41 | ) |  |  | — |  |  |  | (421 | )
Depreciation and amortization |  |  | (4,928 | ) |  |  | (5,315 | ) |  |  | (555 | ) |  |  | — |  |  |  | (10,798 | )
Income from operations |  |  | 9,454 |  |  |  | 8,559 |  |  |  | 350 |  |  |  | — |  |  |  | 18,363 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (626 | ) |  |  | (68 | ) |  |  | (2,034 | ) |  |  | — |  |  |  | (2,728 | )
Loss on extinguishment of debt |  |  | (1,174 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,174 | )
Other, net |  |  | (1,798 | ) |  |  | 1 |  |  |  | 1,887 |  |  |  | — |  |  |  | 90 |
Total non-operating expense, net |  |  | (3,598 | ) |  |  | (67 | ) |  |  | (147 | ) |  |  | — |  |  |  | (3,812 | )
Income before income tax benefit |  |  | 5,856 |  |  |  | 8,492 |  |  |  | 203 |  |  |  | — |  |  |  | 14,551 |
Income tax benefit |  |  | — |  |  |  | — |  |  |  | 9,969 |  |  |  | — |  |  |  | 9,969 |
Net income |  | $ | 5,856 |  |  | $ | 8,492 |  |  | $ | 10,172 |  |  | $ | — |  |  | $ | 24,520 |
Assets The Company’s assets by segment consisted of the following amounts:
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |  |
Balance at December 31, 2017 |  | $ | 1,039,025 |  |  | $ | 298,453 |  |  | $ | 27,697 |  |  | $ | 1,365,175 |  |
Balance at December 31, 2016 |  | $ | 108,418 |  |  | $ | 294,822 |  |  | $ | 15,838 |  |  | $ | 419,078 |  |
Capital Expenditures The Company’s capital expenditures by segment consisted of the following amounts:
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
For the year ended December 31, 2017 |  | $ | 9,665 |  |  | $ | 18,011 |  |  | $ | 1,787 |  |  | $ | 29,463 |
For the year ended December 31, 2016 |  | $ | 10,267 |  |  | $ | 17,730 |  |  | $ | 2,637 |  |  | $ | 30,634 |
For the year ended December 31, 2015 |  | $ | 2,594 |  |  | $ | 4,595 |  |  | $ | 757 |  |  | $ | 7,946 |
(1) | Capital expenditures in the Distributed Gaming segment exclude non-cash purchases of property and equipment of approximately $2.6 million and $0.7 million for the years ended December 31, 2017 and 2016, respectively.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration