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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the ownership and operation of 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 non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, and the operation of 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. 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, impairment of goodwill and intangible assets, acquisition and severance expenses, preopening and related expenses, asset disposal and other writedowns, share-based compensation expenses, and change in fair value of derivative, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA:
|  | Three Months Ended June 30, 2020 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming |  | $ | 25,210 |  |  | $ | 31,467 |  |  | $ | — |  |  | $ | 56,677 |
Food and beverage |  |  | 6,016 |  |  |  | 4,152 |  |  |  | — |  |  |  | 10,168 |
Rooms |  |  | 5,987 |  |  |  | — |  |  |  | — |  |  |  | 5,987 |
Other |  |  | 2,219 |  |  |  | 720 |  |  |  | 203 |  |  |  | 3,142 |
Total revenues |  | $ | 39,432 |  |  | $ | 36,339 |  |  | $ | 203 |  |  | $ | 75,974 |
Net loss |  | $ | (45,979 | ) |  | $ | (5,194 | ) |  | $ | (27,393 | ) |  | $ | (78,566 | )
Depreciation and amortization |  |  | 25,344 |  |  |  | 5,902 |  |  |  | 684 |  |  |  | 31,930 |
Impairment of goodwill and intangible assets |  |  | 21,411 |  |  |  | — |  |  |  | — |  |  |  | 21,411 |
Acquisition and severance expenses |  |  | 189 |  |  |  | 134 |  |  |  | 44 |  |  |  | 367 |
Preopening and related expenses (1) |  |  | — |  |  |  | (1 | ) |  |  | 10 |  |  |  | 9 |
Asset disposal and other writedowns |  |  | 683 |  |  |  | 24 |  |  |  | (5 | ) |  |  | 702 |
Share-based compensation |  |  | — |  |  |  | — |  |  |  | 1,756 |  |  |  | 1,756 |
Other, net |  |  | 48 |  |  |  | 41 |  |  |  | 28 |  |  |  | 117 |
Interest expense, net |  |  | 91 |  |  |  | 10 |  |  |  | 16,306 |  |  |  | 16,407 |
Income tax provision |  |  | — |  |  |  | — |  |  |  | 206 |  |  |  | 206 |
Adjusted EBITDA |  | $ | 1,787 |  |  | $ | 916 |  |  | $ | (8,364 | ) |  | $ | (5,661 | )
|  | Three Months Ended June 30, 2019 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming |  | $ | 72,237 |  |  | $ | 74,009 |  |  | $ | — |  |  | $ | 146,246 |
Food and beverage |  |  | 39,049 |  |  |  | 13,055 |  |  |  | — |  |  |  | 52,104 |
Rooms |  |  | 35,514 |  |  |  | — |  |  |  | — |  |  |  | 35,514 |
Other |  |  | 11,916 |  |  |  | 2,089 |  |  |  | 201 |  |  |  | 14,206 |
Total revenues |  | $ | 158,716 |  |  | $ | 89,153 |  |  | $ | 201 |  |  | $ | 248,070 |
Net income (loss) |  | $ | 22,471 |  |  | $ | 7,347 |  |  | $ | (44,226 | ) |  | $ | (14,408 | )
Depreciation and amortization |  |  | 24,052 |  |  |  | 5,569 |  |  |  | 355 |  |  |  | 29,976 |
Acquisition and severance expenses |  |  | 101 |  |  |  | 9 |  |  |  | 1,013 |  |  |  | 1,123 |
Preopening and related expenses (1) |  |  | 700 |  |  |  | 660 |  |  |  | 137 |  |  |  | 1,497 |
Asset disposal and other writedowns |  |  | 511 |  |  |  | 74 |  |  |  | — |  |  |  | 585 |
Share-based compensation |  |  | — |  |  |  | — |  |  |  | 2,134 |  |  |  | 2,134 |
Other, net |  |  | 81 |  |  |  | — |  |  |  | 406 |  |  |  | 487 |
Interest expense, net |  |  | 64 |  |  |  | 23 |  |  |  | 19,048 |  |  |  | 19,135 |
Loss on extinguishment and modification of debt |  |  | — |  |  |  | — |  |  |  | 9,150 |  |  |  | 9,150 |
Change in fair value of derivative |  |  | — |  |  |  | — |  |  |  | 1,489 |  |  |  | 1,489 |
Income tax benefit |  |  | — |  |  |  | — |  |  |  | (1,344 | ) |  |  | (1,344 | )
Adjusted EBITDA |  | $ | 47,980 |  |  | $ | 13,682 |  |  | $ | (11,838 | ) |  | $ | 49,824 |
|  | Six Months Ended June 30, 2020 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming |  | $ | 87,115 |  |  | $ | 96,777 |  |  | $ | — |  |  | $ | 183,892 |
Food and beverage |  |  | 35,821 |  |  |  | 15,894 |  |  |  | — |  |  |  | 51,715 |
Rooms |  |  | 31,592 |  |  |  | — |  |  |  | — |  |  |  | 31,592 |
Other |  |  | 12,874 |  |  |  | 2,652 |  |  |  | 406 |  |  |  | 15,932 |
Total revenues |  | $ | 167,402 |  |  | $ | 115,323 |  |  | $ | 406 |  |  | $ | 283,131 |
Net loss |  | $ | (48,917 | ) |  | $ | (4,590 | ) |  | $ | (57,679 | ) |  | $ | (111,186 | )
Depreciation and amortization |  |  | 50,057 |  |  |  | 11,767 |  |  |  | 1,262 |  |  |  | 63,086 |
Impairment of goodwill and intangible assets |  |  | 27,872 |  |  |  | — |  |  |  | — |  |  |  | 27,872 |
Acquisition and severance expenses |  |  | 2,606 |  |  |  | 612 |  |  |  | 125 |  |  |  | 3,343 |
Preopening and related expenses (1) |  |  | 225 |  |  |  | (1 | ) |  |  | 115 |  |  |  | 339 |
Asset disposal and other writedowns |  |  | 1,310 |  |  |  | (14 | ) |  |  | (5 | ) |  |  | 1,291 |
Share-based compensation |  |  | — |  |  |  | — |  |  |  | 4,002 |  |  |  | 4,002 |
Other, net |  |  | 95 |  |  |  | 238 |  |  |  | 141 |  |  |  | 474 |
Interest expense, net |  |  | 336 |  |  |  | 25 |  |  |  | 34,792 |  |  |  | 35,153 |
Change in fair value of derivative |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |
Income tax provision |  |  | — |  |  |  | — |  |  |  | 258 |  |  |  | 258 |
Adjusted EBITDA |  | $ | 33,584 |  |  | $ | 8,037 |  |  | $ | (16,988 | ) |  | $ | 24,633 |
|  | Six Months Ended June 30, 2019 |
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming |  | $ | 143,122 |  |  | $ | 146,916 |  |  | $ | — |  |  | $ | 290,038 |
Food and beverage |  |  | 75,491 |  |  |  | 26,371 |  |  |  | — |  |  |  | 101,862 |
Rooms |  |  | 66,801 |  |  |  | — |  |  |  | — |  |  |  | 66,801 |
Other |  |  | 24,676 |  |  |  | 4,223 |  |  |  | 362 |  |  |  | 29,261 |
Total revenues |  | $ | 310,090 |  |  | $ | 177,510 |  |  | $ | 362 |  |  | $ | 487,962 |
Net income (loss) |  | $ | 45,160 |  |  | $ | 14,953 |  |  | $ | (82,539 | ) |  | $ | (22,426 | )
Depreciation and amortization |  |  | 45,695 |  |  |  | 10,898 |  |  |  | 648 |  |  |  | 57,241 |
Acquisition and severance expenses |  |  | 387 |  |  |  | 35 |  |  |  | 2,245 |  |  |  | 2,667 |
Preopening and related expenses (1) |  |  | 2,354 |  |  |  | 1,226 |  |  |  | 149 |  |  |  | 3,729 |
Asset disposal and other writedowns |  |  | 767 |  |  |  | 65 |  |  |  | 390 |  |  |  | 1,222 |
Share-based compensation |  |  | 11 |  |  |  | 5 |  |  |  | 6,302 |  |  |  | 6,318 |
Other, net |  |  | 92 |  |  |  | — |  |  |  | 1,259 |  |  |  | 1,351 |
Interest expense, net |  |  | 116 |  |  |  | 39 |  |  |  | 37,115 |  |  |  | 37,270 |
Loss on extinguishment and modification of debt |  |  | — |  |  |  | — |  |  |  | 9,150 |  |  |  | 9,150 |
Change in fair value of derivative |  |  | — |  |  |  | — |  |  |  | 3,737 |  |  |  | 3,737 |
Income tax benefit |  |  | — |  |  |  | — |  |  |  | (1,995 | ) |  |  | (1,995 | )
Adjusted EBITDA |  | $ | 94,582 |  |  | $ | 27,221 |  |  | $ | (23,539 | ) |  | $ | 98,264 |
| (1) | Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program.
Assets The Company’s assets by segment consisted of the following amounts:
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Corporate and Other |  |  | Consolidated |
Balance at June 30, 2020 |  | $ | 1,131,272 |  |  | $ | 448,182 |  |  | $ | 44,482 |  |  | $ | 1,623,936 |
Balance at December 31, 2019 |  | $ | 1,204,574 |  |  | $ | 482,294 |  |  | $ | 54,049 |  |  | $ | 1,740,917 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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