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Segment Information
 3 Months Ended
Mar. 31, 2022
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, 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).
Due to the Company’s use of Adjusted EBITDA as 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 determined in accordance with GAAP. The Company also discloses Adjusted EBITDA at the reportable segment level, as set forth in the table below:
Three Months Ended March 31,
(In thousands)20222021
Revenues
Nevada Casino Resorts
Gaming$44,230 $38,826 
Food and beverage21,384 14,965 
Rooms22,029 15,628 
Other8,792 5,386 
Nevada Casino Resorts revenues$96,435 $74,805 
Nevada Locals Casinos
Gaming$29,381 $29,536 
Food and beverage6,179 5,513 
Rooms2,244 1,478 
Other2,085 2,018 
Nevada Locals Casinos revenues$39,889 $38,545 
Maryland Casino Resort
Gaming$14,457 $13,032 
Food and beverage1,648 1,442 
Rooms1,473 1,292 
Other314 334 
Maryland Casino Resort revenues$17,892 $16,100 
Distributed Gaming
Gaming$102,719 $95,606 
Food and beverage13,245 11,884 
Other3,258 2,419 
Distributed gaming revenues$119,222 $109,909 
Corporate and Other206 337 
Total revenues$273,644 $239,696 
Three Months Ended March 31,
(In thousands)20222021
Adjusted EBITDA
Nevada Casino Resorts$33,575 $26,655 
Nevada Locals Casinos20,038 19,552 
Maryland Casino Resort5,572 4,873 
Distributed Gaming22,053 20,880 
Corporate and Other(13,913)(12,462)
Total Adjusted EBITDA67,325 59,498 
Adjustments
Depreciation and amortization(26,276)(27,186)
Change in non-cash lease expense(181)(439)
Share-based compensation(3,672)(3,005)
Gain (loss) on disposal of assets41 (209)
Loss on debt extinguishment and modification(181)— 
Preopening and related expenses (1)
(55)(120)
Other, net(4,296)(2,168)
Interest expense, net(15,118)(16,048)
Income tax benefit18,479 297 
Net Income$36,066 $10,620 
(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 ResortsNevada Locals CasinosMaryland Casino ResortDistributed GamingCorporate and OtherConsolidated
Balance at March 31, 2022$808,374 $166,486 $41,600 $403,218 $184,461 $1,604,139 
Balance at December 31, 2021$811,016 $165,362 $41,403 $411,342 $186,441 $1,615,564