Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND DISAGGREGATED REVENUE

v3.21.1
SEGMENT REPORTING AND DISAGGREGATED REVENUE
 3 Months Ended
Mar. 31, 2021
SEGMENT REPORTING AND DISAGGREGATED REVENUE  
SEGMENT REPORTING AND DISAGGREGATED REVENUE

11. SEGMENT REPORTING AND DISAGGREGATED REVENUE

The Company manages its reporting segments based on geographic regions within the United States and type of income. The casino/resort operations include five segments as of 2021:  Mississippi, Indiana, Colorado, Nevada, and Contracted Sports Wagering. The Company’s management views the states where each of its casino resorts are located as operating segments, in addition to its contracted sports wagering segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. During the first quarter of 2021, since it is a significantly different business than its core casino business, the Company changed the aggregation of its operations to present Contracted Sports Wagering as a separate segment. This change of the reportable segments reflects realignment within the Company stemming from the expansion of the Company’s contracted on-site and online sports wagering skins. Additionally, this new segment breakout aims to enhance transparency of operations and allow more appropriate valuation of the Company’s various business components. See Note 1 for further information.

The Company utilizes Adjusted Segment EBITDA as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, pre-opening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment. As a result of the change in reportable segments described above, the Company has recast previously-reported segment information to conform to the current presentation in the following tables for enhanced comparability, which had no effect on previously reported results of operations or financial position.

The following tables present the Company’s segment information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

Contracted

 

 

 

 

 

 

 

 

 

 

 

 

Sports

 

 

 

 

Mississippi

 

Indiana

 

Colorado

 

Nevada

 

Wagering

 

Total

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

$

16,040

 

$

6,715

 

$

5,264

 

$

4,045

 

$

 —

 

$

32,064

Food and beverage

 

 

4,693

 

 

748

 

 

413

 

 

247

 

 

 —

 

 

6,101

Hotel

 

 

1,170

 

 

919

 

 

122

 

 

 —

 

 

 —

 

 

2,211

Other operations

 

 

453

 

 

208

 

 

106

 

 

76

 

 

989

 

 

1,832

 

 

$

22,356

 

$

8,590

 

$

5,905

 

$

4,368

 

$

989

 

$

42,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Segment EBITDA

 

$

7,630

 

$

1,134

 

$

1,710

 

$

1,224

 

$

976

 

$

12,674

Other operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,800)

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,905)

Project development costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47)

Loss on disposal of asset, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(104)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(124)

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,694

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,456)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,134)

Adjustment to fair value of warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,347)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,937)

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,243)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

202

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(3,445)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

Contracted

 

 

 

 

 

 

 

 

 

 

 

 

Sports

 

 

 

 

Mississippi

 

Indiana

 

Colorado

 

Nevada

 

Wagering

 

Total

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

$

9,070

 

$

5,028

 

$

4,005

 

$

2,648

 

$

 —

 

$

20,751

Food and beverage

 

 

4,679

 

 

1,153

 

 

767

 

 

391

 

 

 —

 

 

6,990

Hotel

 

 

969

 

 

858

 

 

147

 

 

 —

 

 

 —

 

 

1,974

Other operations

 

 

374

 

 

208

 

 

63

 

 

69

 

 

424

 

 

1,138

 

 

$

15,092

 

$

7,247

 

$

4,982

 

$

3,108

 

$

424

 

$

30,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Segment EBITDA

 

$

1,831

 

$

(1,490)

 

$

(471)

 

$

(390)

 

$

390

 

$

(130)

Other operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,040)

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,119)

Project development costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(56)

Gain on disposal of assets, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 —

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(83)

Operating loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,428)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,491)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 —

Adjustment to fair value of warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(835)

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,263)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(4,358)

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

March 31, 

 

December 31, 

 

    

2021

    

2020

Total Assets

 

 

 

 

 

 

Mississippi

 

$

85,467

 

$

83,809

Indiana

 

 

35,268

 

 

37,798

Colorado

 

 

227,580

 

 

44,961

Nevada

 

 

13,082

 

 

13,248

Contracted Sports Wagering

 

 

1,948

 

 

1,329

Corporate and Other

 

 

90,598

 

 

31,471

 

 

$

453,943

 

$

212,616