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Segment Information
 9 Months Ended
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)2021202020212020
Revenues
Casinos
Gaming$91,155 $83,549 $272,271 $170,664 
Food and beverage30,844 22,067 83,914 57,888 
Rooms31,566 22,505 80,213 54,097 
Other10,560 7,193 27,951 20,067 
Casinos revenues164,125 135,314 464,349 302,716 
Distributed Gaming
Gaming102,012 61,972 302,853 158,749 
Food and beverage13,427 6,618 39,099 22,512 
Other2,496 1,313 7,295 3,965 
Distributed Gaming revenues117,935 69,903 349,247 185,226 
Corporate and Other362 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 amortization26,474 31,551 80,342 94,637 
Change in non-cash lease expense(143)425 517 756 
Share-based compensation3,089 3,520 8,762 7,522 
(Gain) loss on disposal of assets(72)(474)747 817 
Loss on debt extinguishment and modification759 — 759 — 
Preopening and related expenses (1)
3 73 232 412 
Severance expenses193 24 193 3,367 
Impairment of goodwill and intangible assets— — — 27,872 
Other, net(1,338)1,286 1,591 1,760 
Interest expense, net15,535 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 Gaming21,158 4,867 66,951 12,917 
Reportable segment Adjusted EBITDA86,126 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)CasinosDistributed GamingCorporate and OtherConsolidated
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