Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND DISAGGREGATED REVENUE

v3.21.2
SEGMENT REPORTING AND DISAGGREGATED REVENUE
6 Months Ended
Jun. 30, 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. Those five segments, as of 2021, are:  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 allows for a more appropriate valuation of the Company’s various business components.

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 June 30, 2021

Contracted

Sports

Mississippi

Indiana

Colorado

Nevada

Wagering

Total

Revenues

Casino

$

16,872

$

7,886

$

5,575

$

4,314

$

$

34,647

Food and beverage

 

5,561

 

939

 

624

 

316

 

 

7,440

Hotel

 

1,268

 

1,131

 

111

 

 

 

2,510

Other operations

 

538

 

621

 

72

 

85

 

1,529

 

2,845

$

24,239

$

10,577

$

6,382

$

4,715

$

1,529

$

47,442

Adjusted Segment EBITDA

$

8,983

$

2,666

$

1,839

$

1,412

$

1,500

$

16,400

Other operating costs and expenses:

Depreciation and amortization

 

(1,829)

Corporate expenses

 

(1,472)

Project development costs

 

(126)

Loss on disposal of assets, net

(568)

Stock-based compensation

(199)

Operating income

 

12,206

Other (expense) income:

Interest expense, net

 

(6,670)

Gain on extinguishment of debt

 

30

(6,640)

Income before income taxes

5,566

Income tax provision

 

82

Net income

$

5,484

(In thousands)

Three Months Ended June 30, 2020

Contracted

Sports

Mississippi

Indiana

Colorado

Nevada

Wagering

Total

Revenues

Casino

$

6,645

$

1,824

$

1,486

$

1,000

$

$

10,955

Food and beverage

 

1,757

 

91

 

88

 

58

 

 

1,994

Hotel

 

560

 

118

 

41

 

 

 

719

Other operations

 

160

 

174

 

18

 

28

 

463

 

843

$

9,122

$

2,207

$

1,633

$

1,086

$

463

$

14,511

Adjusted Segment EBITDA

$

1,200

$

(1,361)

$

(199)

$

(562)

$

447

$

(475)

Other operating costs and expenses:

Depreciation and amortization

 

(1,980)

Corporate expenses

(910)

Project development costs

 

(259)

Loss on disposal of assets, net

(439)

Stock-based compensation

 

(103)

Operating loss

 

(4,166)

Other expenses:

Interest expense, net

 

(2,447)

Adjustment to fair value of warrants

(94)

(2,541)

Loss before income taxes

(6,707)

Income tax benefit

 

(4)

Net loss

$

(6,703)

(In thousands)

Six Months Ended June 30, 2021

Contracted

Sports

Mississippi

Indiana

Colorado

Nevada

Wagering

Total

Revenues

Casino

$

32,912

$

14,601

$

10,839

$

8,359

$

$

66,711

Food and beverage

 

10,255

 

1,686

 

1,037

 

563

 

 

13,541

Hotel

 

2,439

 

2,050

 

232

 

 

 

4,721

Other operations

 

990

 

830

 

178

 

161

 

2,518

 

4,677

$

46,596

$

19,167

$

12,286

$

9,083

$

2,518

$

89,650

Adjusted Segment EBITDA

$

16,613

$

3,799

$

3,548

$

2,636

$

2,477

$

29,073

Other operating costs and expenses:

Depreciation and amortization

 

(3,629)

Corporate expenses

(3,376)

Project development costs

 

(173)

Loss on disposal of assets, net

(672)

Stock-based compensation

 

(323)

Operating income

 

20,900

Other expenses:

Interest expense, net

 

(11,126)

Loss on extinguishment of debt

 

(6,104)

Adjustment to fair value of warrants

(1,347)

(18,577)

Income before income taxes

2,323

Income tax expense

 

284

Net income

$

2,039

(In thousands)

Six Months Ended June 30, 2020

Contracted

Sports

Mississippi

Indiana

Colorado

Nevada

Wagering

Total

Revenues

Casino

$

15,715

$

6,852

$

5,491

$

3,648

$

$

31,706

Food and beverage

 

6,436

 

1,244

 

855

 

449

 

 

8,984

Hotel

 

1,530

 

976

 

187

 

 

 

2,693

Other operations

 

534

 

382

 

81

 

97

 

887

 

1,981

$

24,215

$

9,454

$

6,614

$

4,194

$

887

$

45,364

Adjusted Segment EBITDA

$

3,032

$

(2,851)

$

(669)

$

(953)

$

836

$

(605)

Other operating costs and expenses:

Depreciation and amortization

(4,020)

Corporate expenses

(2,029)

Project development costs

 

(315)

Loss on disposal of assets, net

(439)

Stock-based compensation

 

(186)

Operating loss

 

(7,594)

Other (expense) income:

Interest expense, net

 

(4,938)

Adjustment to fair value of warrants

1,562

(3,376)

Loss before income taxes

(10,970)

Income tax expense

 

91

Net loss

$

(11,061)

(In thousands)

June 30, 

December 31, 

    

2021

    

2020

Total Assets

Mississippi

$

87,210

$

83,809

Indiana

 

36,584

 

37,798

Colorado

 

233,063

 

44,961

Nevada

 

13,747

 

13,248

Contracted Sports Wagering

1,859

1,329

Corporate and Other

 

95,691

 

31,471

$

468,154

$

212,616