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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Information | 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 aggregates all of its operating segments related to resort casino properties into one reportable segment because all of its resort casino properties offer similar products and services including gaming, food and beverage, entertainment, delivered in an integrated resort facility through a casino floor, restaurants, and outlets, cater to a similar customer base from the locals and tourist markets with similar expectations of services and entertainment, have a similar regulatory and tax structure, share the same marketing techniques, are directed by a centralized management structure and have similar economic characteristics. 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 Company aggregates all of its operating segments related to Distributed Gaming locations into one reportable segment because they offer similar products, target non-casino locations that capture local patrons in strategic, high-traffic areas such as taverns, supermarkets and gas stations, have a similar regulatory and tax structure, share the same marketing techniques, are directed by a centralized management structure and have similar economic characteristics. 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 presents Adjusted EBITDA in its segment disclosures because it is the primary metric used by the Company’s chief operating decision makers in measuring both the Company’s past and future expectations of performance. Further, the Company’s annual performance plan used to determine compensation of its executive officers and employees and the Company’s compliance with debt covenants are tied to the Adjusted EBITDA metric. Adjusted EBITDA represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of goodwill and intangible assets, severance expenses, preopening and related expenses, gain or loss on disposal of assets, share-based compensation expenses, change in fair value of derivative, and other non-cash charges, that are deemed to be not indicative of the Company’s core operating results, calculated before corporate overhead (which is not allocated to each segment). In light of the Company’s use of Adjusted EBITDA in its measure of profit for its reportable segments, the Company includes a reconciliation of the total of the Company’s consolidated Adjusted EBITDA to the Company’s consolidated net income (loss) determined in accordance with GAAP. The Company also discloses Adjusted EBITDA at the reporting segment level, as set forth in the table below:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Revenues |  |  |  |  |  |  |  |
Casinos |  |  |  |  |  |  |  |
Gaming |  | $ | 91,155 |  |  | $ | 83,549 |  |  | $ | 272,271 |  |  | $ | 170,664 |
Food and beverage |  | 30,844 |  |  | 22,067 |  |  | 83,914 |  |  | 57,888 |
Rooms |  | 31,566 |  |  | 22,505 |  |  | 80,213 |  |  | 54,097 |
Other |  | 10,560 |  |  | 7,193 |  |  | 27,951 |  |  | 20,067 |
Casinos revenues |  | 164,125 |  |  | 135,314 |  |  | 464,349 |  |  | 302,716 |
Distributed Gaming |  |  |  |  |  |  |  |
Gaming |  | 102,012 |  |  | 61,972 |  |  | 302,853 |  |  | 158,749 |
Food and beverage |  | 13,427 |  |  | 6,618 |  |  | 39,099 |  |  | 22,512 |
Other |  | 2,496 |  |  | 1,313 |  |  | 7,295 |  |  | 3,965 |
Distributed Gaming revenues |  | 117,935 |  |  | 69,903 |  |  | 349,247 |  |  | 185,226 |
Corporate and Other |  | 362 |  |  | 179 |  |  | 989 |  |  | 585 |
Total revenues |  | $ | 282,422 |  |  | $ | 205,396 |  |  | $ | 814,585 |  |  | $ | 488,527 |
Net income (loss) |  | $ | 29,051 |  |  | $ | (6,956) |  |  | $ | 142,677 |  |  | $ | (118,142) |
Adjustments |  |  |  |  |  |  |  |
Other non-operating income |  | — |  |  | — |  |  | (60,000) |  |  | — |
Depreciation and amortization |  | 26,474 |  |  | 31,551 |  |  | 80,342 |  |  | 94,637 |
Change in non-cash lease expense |  | (143) |  |  | 425 |  |  | 517 |  |  | 756 |
Share-based compensation |  | 3,089 |  |  | 3,520 |  |  | 8,762 |  |  | 7,522 |
(Gain) loss on disposal of assets |  | (72) |  |  | (474) |  |  | 747 |  |  | 817 |
Loss on debt extinguishment and modification |  | 759 |  |  | — |  |  | 759 |  |  | — |
Preopening and related expenses (1) |  | 3 |  |  | 73 |  |  | 232 |  |  | 412 |
Severance expenses |  | 193 |  |  | 24 |  |  | 193 |  |  | 3,367 |
Impairment of goodwill and intangible assets |  | — |  |  | — |  |  | — |  |  | 27,872 |
Other, net |  | (1,338) |  |  | 1,286 |  |  | 1,591 |  |  | 1,760 |
Interest expense, net |  | 15,535 |  |  | 16,422 |  |  | 47,752 |  |  | 51,575 |
Change in fair value of derivative |  | — |  |  | — |  |  | — |  |  | 1 |
Income tax (benefit) provision |  | (123) |  |  | (17) |  |  | 366 |  |  | 241 |
Total Adjusted EBITDA |  | $ | 73,428 |  |  | $ | 45,854 |  |  | $ | 223,938 |  |  | $ | 70,818 |
Adjusted EBITDA |  |  |  |  |  |  |  |
Casinos |  | $ | 64,968 |  |  | $ | 50,759 |  |  | $ | 194,548 |  |  | $ | 84,615 |
Distributed Gaming |  | 21,158 |  |  | 4,867 |  |  | 66,951 |  |  | 12,917 |
Reportable segment Adjusted EBITDA |  | 86,126 |  |  | 55,626 |  |  | 261,499 |  |  | 97,532 |
Corporate and Other |  | (12,698) |  |  | (9,772) |  |  | (37,561) |  |  | (26,714) |
Total Adjusted EBITDA |  | $ | 73,428 |  |  | $ | 45,854 |  |  | $ | 223,938 |  |  | $ | 70,818 |
(1) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of tavern and casino locations. Assets The Company’s assets by segment consisted of the following amounts:
(In thousands) | Casinos |  | Distributed Gaming |  | Corporate and Other |  | Consolidated
Balance at September 30, 2021 | $ | 1,043,222 |  |  | $ | 417,704 |  |  | $ | 183,341 |  |  | $ | 1,644,267 |
Balance at December 31, 2020 | $ | 1,085,510 |  |  | $ | 430,791 |  |  | $ | 54,648 |  |  | $ | 1,570,949 |

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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