XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company conducts its business through four reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort and Distributed Gaming. The Nevada Casino Resorts segment is comprised of destination casino resort properties offering a variety of food and beverage outlets, entertainment venues and other amenities. The casino resort properties in this segment cater primarily to a regional drive-in customer base seeking a value-oriented vacation experience, with guests typically traveling from Southern California or Arizona. The Company’s casino resort properties in Nevada have a significantly larger number of hotel rooms compared to the other casino properties in its portfolio. While hotel stays at these casino resorts are typically longer, the overall frequency of visitation from guests is lower when compared to the Nevada Locals Casinos. The Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius. The Company’s locals casino properties typically experience a higher frequency of customer visits compared to its casino resort properties in Nevada and Maryland, with many of the customers visiting the Company’s Nevada Locals Casinos on a weekly basis. The casino properties within this reportable segment have no or a limited number of hotel rooms and offer fewer food and beverage outlets or other amenities, with revenues primarily generated from slot machine play. The Maryland Casino Resort segment is comprised of the Rocky Gap casino resort, which is geographically disparate from the Company’s Nevada properties, operates in a separate regulatory jurisdiction and has only a limited number of hotel rooms compared to the Nevada Casino Resorts. Rocky Gap caters to a regional drive-in customer base traveling from mid-Atlantic areas (Maryland, Virginia, Washington DC, Pennsylvania, West Virginia) and offers a full range of amenities, including various food and beverage outlets, signature golf course, spa and pool. The Distributed Gaming segment is comprised of the operation of slot machines and amusement devices in approximately 1,100 non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores, across Nevada and Montana with a limited number of slot machines in each location. Distributed Gaming operations cater to local residents with high frequency visitation to these locations. The Company places its slot machines and amusement devices in locations where it believes they will receive maximum customer traffic. As part of the Distributed Gaming segment, the Company owns and operates a limited number of branded tavern locations, where it controls the food and beverage operations as well as the slot machines located within the tavern. The Company’s branded taverns offer a casual, upscale environment catering to local patrons offering superior food, craft beer and other alcoholic beverages, and are typically limited to 15 slot machines. 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 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 is 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, acquisition and 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 reportable 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 reportable segment level, as set forth in the table below:
|  | Year Ended December 31,
(In thousands) |  | 2021 |  | 2020 |  | 2019
Revenues |  |  |  |  |  |
Nevada Casino Resorts |  |  |  |  |  |
Gaming |  | $ | 179,793 |  |  | $ | 114,571 |  |  | $ | 143,785 |
Food and beverage |  | 83,092 |  |  | 55,588 |  |  | 111,491 |
Rooms |  | 94,952 |  |  | 61,070 |  |  | 115,006 |
Other (1) |  | 31,875 |  |  | 19,414 |  |  | 39,263 |
Nevada Casino Resorts revenue |  | $ | 389,712 |  |  | $ | 250,643 |  |  | $ | 409,545 |
Nevada Locals Casinos |  |  |  |  |  |
Gaming |  | $ | 120,537 |  |  | $ | 82,522 |  |  | $ | 86,877 |
Food and beverage |  | 24,036 |  |  | 18,406 |  |  | 30,193 |
Rooms |  | 7,626 |  |  | 5,598 |  |  | 10,493 |
Other (1) |  | 7,656 |  |  | 6,505 |  |  | 8,123 |
Nevada Locals Casinos revenues |  | $ | 159,855 |  |  | $ | 113,031 |  |  | $ | 135,686 |
Maryland Casino Resort |  |  |  |  |  |
Gaming |  | $ | 60,797 |  |  | $ | 40,505 |  |  | $ | 53,364 |
Food and beverage |  | 7,932 |  |  | 4,669 |  |  | 7,286 |
Rooms |  | 7,224 |  |  | 4,743 |  |  | 6,694 |
Other |  | 2,202 |  |  | 1,719 |  |  | 2,826 |
Maryland Casino Resort revenues |  | $ | 78,155 |  |  | $ | 51,636 |  |  | $ | 70,170 |
Distributed Gaming |  |  |  |  |  |
Gaming |  | $ | 405,183 |  |  | $ | 239,154 |  |  | $ | 294,776 |
Food and beverage |  | 52,755 |  |  | 33,418 |  |  | 53,963 |
Other (1) |  | 9,646 |  |  | 5,684 |  |  | 8,500 |
Distributed Gaming revenues |  | $ | 467,584 |  |  | $ | 278,256 |  |  | $ | 357,239 |
Corporate and other |  | 1,237 |  |  | 589 |  |  | 770 |
Total Revenues |  | $ | 1,096,543 |  |  | $ | 694,155 |  |  | $ | 973,410 |
(1) Includes lease revenue accounted for under ASC 842 for the arrangements in which the Company is a lessor. Refer to “Note 2 — Summary of Significant Accounting Policies” and “Note 11 — Leases” for details.
|  | Year Ended December 31,
(In thousands) |  | 2021 |  | 2020 |  | 2019
Adjusted EBITDA |  |  |  |  |  |
Nevada Casino Resorts |  | $ | 149,077 |  |  | $ | 57,462 |  |  | $ | 115,198 |
Nevada Locals Casinos |  | 80,005 |  |  | 45,610 |  |  | 43,264 |
Maryland Casino Resort |  | 26,697 |  |  | 15,094 |  |  | 20,372 |
Distributed Gaming |  | 87,276 |  |  | 26,952 |  |  | 50,687 |
Corporate and other |  | (51,337) |  |  | (34,861) |  |  | (45,838) |
Total Adjusted EBITDA |  | 291,718 |  |  | 110,257 |  |  | 183,683 |
Adjustments |  |  |  |  |  |
Other non-operating income |  | 60,000 |  |  | — |  |  | — |
Depreciation and amortization |  | (106,692) |  |  | (124,430) |  |  | (116,592) |
Change in non-cash lease expense |  | (762) |  |  | (1,344) |  |  | 711 |
Share-based compensation |  | (14,401) |  |  | (9,637) |  |  | (10,124) |
Loss on disposal of assets |  | (1,260) |  |  | (803) |  |  | (1,309) |
Loss on debt extinguishment and modification |  | (975) |  |  | — |  |  | (9,150) |
Preopening and related expenses (1) |  | (246) |  |  | (533) |  |  | (4,548) |
Acquisition and severance expenses |  | (228) |  |  | (3,710) |  |  | (3,488) |
Impairment of goodwill and intangible assets |  | — |  |  | (33,964) |  |  | — |
Other, net |  | (2,089) |  |  | (3,275) |  |  | (2,216) |
Interest expense, net |  | (62,853) |  |  | (69,110) |  |  | (74,220) |
Change in fair value of derivative |  | — |  |  | (1) |  |  | (4,168) |
Income tax (provision) benefit |  | (436) |  |  | (61) |  |  | 1,876 |
Net income (loss) |  | $ | 161,776 |  |  | $ | (136,611) |  |  | $ | (39,545) |
(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) | Nevada Casino Resorts |  | Nevada Locals Casinos |  | Maryland Casino Resort |  | Distributed Gaming |  | Corporate and Other |  | Consolidated
Balance at December 31, 2021 | $ | 811,016 |  |  | $ | 165,362 |  |  | $ | 41,403 |  |  | $ | 411,342 |  |  | $ | 186,441 |  |  | $ | 1,615,564 |
Balance at December 31, 2020 | $ | 872,849 |  |  | $ | 170,373 |  |  | $ | 42,288 |  |  | $ | 430,791 |  |  | $ | 54,648 |  |  | $ | 1,570,949 |
Capital Expenditures The Company’s capital expenditures by segment consisted of the following amounts:
(In thousands) |  | Nevada Casino Resorts (1) |  | Nevada Locals Casinos (2) |  | Maryland Casino Resort (3) |  | Distributed Gaming (4) |  | Corporate and Other (5) |  | Consolidated
For the year ended December 31, 2021 |  | $ | 7,859 |  |  | $ | 2,813 |  |  | $ | 1,447 |  |  | $ | 11,485 |  |  | $ | 5,655 |  |  | $ | 29,259 |
For the year ended December 31, 2020 |  | $ | 23,649 |  |  | $ | 911 |  |  | $ | 2,531 |  |  | $ | 6,886 |  |  | $ | 2,525 |  |  | $ | 36,502 |
For the year ended December 31, 2019 |  | $ | 77,427 |  |  | $ | 4,270 |  |  | $ | 1,685 |  |  | $ | 19,185 |  |  | $ | 4,700 |  |  | $ | 107,267 |
(1)Capital expenditures in the Nevada Casino Resorts segment exclude non-cash purchases of property and equipment of $0.6 million, $1.1 million and $15.9 million as of December 31, 2021, 2020 and 2019, respectively. (2)Capital expenditures in the Nevada Locals Casinos segment exclude non-cash purchases of property and equipment of $0.2 million and $3.2 million as of December 31, 2021 and 2019, respectively. (3)Capital expenditures in the Maryland Casino Resort segment exclude non-cash purchases of property and equipment of $0.5 million as of December 31, 2020. (4)Capital expenditures in the Distributed Gaming segment exclude non-cash purchases of property and equipment of $0.6 million, $2.5 million and $3.5 million as of December 31, 2021, 2020 and 2019, respectively. (5)Capital expenditures for Corporate and Other exclude non-cash purchases of property and equipment of $0.5 million as of December 31, 2021.

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/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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration