Segment Information

3 Months Ended

Mar. 31, 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’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, 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, 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 March 31, 2021
(In thousands)	Casinos		Distributed Gaming		Corporate and Other		Consolidated
Revenues
Gaming	$	81,394	$	95,606	$	—	$	177,000
Food and beverage	21,920		11,884		—		33,804
Rooms	18,398		—		—		18,398
Other	7,738		2,419		337		10,494
Total revenues	$	129,450	$	109,909	$	337	$	239,696
Net income (loss)	$	29,004	$	15,010	$	(33,394)	$	10,620
Depreciation and amortization	21,346		5,214		626		27,186
Change in non-cash lease expense	137		279		23		439
Share-based compensation	—		—		3,005		3,005
(Gain) loss on disposal of assets	(20)		229		—		209
Preopening and related expenses (1)	—		—		120		120
Other, net	456		74		1,638		2,168
Interest expense, net	157		74		15,817		16,048
Income tax benefit	—		—		(297)		(297)
Adjusted EBITDA	$	51,080	$	20,880	$	(12,462)	$	59,498

(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.

	Three Months Ended March 31, 2020
(In thousands)	Casinos		Distributed Gaming		Corporate and Other		Consolidated
Revenues
Gaming	$	61,905	$	65,310	$	—	$	127,215
Food and beverage	29,805		11,742		—		41,547
Rooms	25,605		—		—		25,605
Other	10,655		1,932		203		12,790
Total revenues	$	127,970	$	78,984	$	203	$	207,157
Net (loss) income	$	(2,938)	$	604	$	(30,286)	$	(32,620)
Depreciation and amortization	24,713		5,865		578		31,156
Change in non-cash lease expense	143		(6)		24		161
Impairment of goodwill and intangible assets	6,461		—		—		6,461
Share-based compensation	—		—		2,246		2,246
Loss (gain) on disposal of assets	627		(38)		—		589
Preopening and related expenses (1)	225		—		105		330
Severance expenses	2,417		478		81		2,976
Other, net	47		197		113		357
Interest expense, net	245		15		18,486		18,746
Change in fair value of derivative	—		—		1		1
Income tax provision	—		—		52		52
Adjusted EBITDA	$	31,940	$	7,115	$	(8,600)	$	30,455

(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 March 31, 2021	$	1,099,796	$	448,452	$	66,945	$	1,615,193
Balance at December 31, 2020	$	1,085,510	$	430,791	$	54,648	$	1,570,949