| SEGMENT REPORTING AND DISAGGREGATED REVENUE |
9. SEGMENT REPORTING AND DISAGGREGATED REVENUE
The Company manages its reporting segments based on geographic regions within the United States and type of income. Starting in the first quarter of 2023, the Company changed its reportable segments to Midwest & South, West, and Contracted Sports Wagering. This change reflects a realignment within the Company as a result of its continued growth. The Company’s management views the regions where each of its casino resorts are located as reportable segments, in addition to its contracted sports wagering segment. Reportable segments are aggregated based on geography, economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure.
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, preopening 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:
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(In thousands) |
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Three Months Ended September 30, 2023 |
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Contracted |
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|
|
|
|
|
|
|
Sports |
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|
|
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Midwest & South |
|
West |
|
Wagering |
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Total |
Revenues |
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|
|
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|
|
|
|
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Casino |
|
$ |
40,341 |
|
$ |
9,899 |
|
$ |
— |
|
$ |
50,240 |
Food and beverage |
|
|
8,242 |
|
|
844 |
|
|
— |
|
|
9,086 |
Hotel |
|
|
2,369 |
|
|
191 |
|
|
— |
|
|
2,560 |
Other operations, including
contracted sports wagering |
|
|
1,601 |
|
|
151 |
|
|
7,905 |
|
|
9,657 |
|
|
$ |
52,553 |
|
$ |
11,085 |
|
$ |
7,905 |
|
$ |
71,543 |
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|
|
|
|
|
|
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Adjusted Segment EBITDA |
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$ |
11,750 |
|
$ |
2,308 |
|
$ |
7,852 |
|
$ |
21,910 |
Other operating costs and expenses: |
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|
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Depreciation and amortization |
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|
|
|
|
|
|
|
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(8,468) |
Corporate expenses |
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|
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|
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|
(1,280) |
Project development costs |
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|
|
|
|
|
|
|
|
|
(21) |
Preopening costs |
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|
|
|
|
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|
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(1,051) |
Loss on disposal of assets |
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|
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|
|
|
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|
(7) |
Stock-based compensation |
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|
|
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|
|
(726) |
Operating income |
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|
|
|
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|
10,357 |
Other (expense) income: |
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Interest expense, net |
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(5,867) |
Gain on settlements |
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|
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|
|
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|
|
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29 |
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|
|
|
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|
|
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(5,838) |
Income before income taxes |
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|
|
|
|
|
|
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|
4,519 |
Income tax benefit |
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|
|
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(74) |
Net income |
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|
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$ |
4,593 |
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(In thousands) |
|
Three Months Ended September 30, 2022 |
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Contracted |
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|
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|
|
|
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|
Sports |
|
|
|
|
Midwest & South |
|
West |
|
Wagering |
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Total |
Revenues |
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|
|
|
|
|
|
|
|
|
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Casino |
|
$ |
20,153 |
|
$ |
9,568 |
|
$ |
— |
|
$ |
29,721 |
Food and beverage |
|
|
6,078 |
|
|
733 |
|
|
— |
|
|
6,811 |
Hotel |
|
|
2,267 |
|
|
223 |
|
|
— |
|
|
2,490 |
Other operations,
including contracted sports wagering |
|
|
1,122 |
|
|
151 |
|
|
1,098 |
|
|
2,371 |
|
|
$ |
29,620 |
|
$ |
10,675 |
|
$ |
1,098 |
|
$ |
41,393 |
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Adjusted Segment EBITDA |
|
$ |
5,578 |
|
$ |
2,316 |
|
$ |
1,083 |
|
$ |
8,977 |
Other operating costs and expenses: |
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|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(2,386) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
(1,219) |
Project development costs |
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|
|
|
|
|
|
|
|
|
|
149 |
Preopening costs |
|
|
|
|
|
|
|
|
|
|
|
(2,594) |
Stock-based compensation |
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|
|
|
|
|
|
|
|
|
|
(532) |
Operating income |
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|
|
|
|
|
|
|
|
|
|
2,395 |
Other expenses: |
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|
|
|
|
|
|
|
|
|
|
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Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
(5,838) |
Loss on modification of debt |
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|
|
|
|
|
|
|
|
|
(105) |
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|
|
|
|
|
|
|
(5,943) |
Loss before income taxes |
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|
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|
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|
|
|
(3,548) |
Income tax provision |
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|
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|
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|
29 |
Net loss |
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|
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|
$ |
(3,577) |
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(In thousands) |
|
Nine Months Ended September 30, 2023 |
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Contracted |
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|
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|
|
|
|
|
Sports |
|
|
|
|
Midwest & South |
|
West |
|
Wagering |
|
Total |
Revenues |
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|
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Casino |
|
$ |
107,474 |
|
$ |
24,112 |
|
$ |
— |
|
$ |
131,586 |
Food and beverage |
|
|
23,032 |
|
|
2,387 |
|
|
— |
|
|
25,419 |
Hotel |
|
|
6,638 |
|
|
414 |
|
|
— |
|
|
7,052 |
Other operations,
including contracted sports wagering |
|
|
6,123 |
|
|
384 |
|
|
10,467 |
|
|
16,974 |
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|
$ |
143,267 |
|
$ |
27,297 |
|
$ |
10,467 |
|
$ |
181,031 |
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|
|
|
|
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|
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Adjusted Segment EBITDA |
|
$ |
31,830 |
|
$ |
2,538 |
|
$ |
10,373 |
|
$ |
44,741 |
Other operating costs and expenses: |
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|
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|
|
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Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(22,482) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
(3,479) |
Project development costs |
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|
|
|
|
|
|
|
|
|
|
(45) |
Preopening costs |
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|
|
|
|
|
|
(12,634) |
Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
|
(7) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
(2,129) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
3,965 |
Other (expense) income: |
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|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
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|
|
|
|
|
|
|
|
|
(16,319) |
Gain on settlements |
|
|
|
|
|
|
|
|
|
|
|
384 |
|
|
|
|
|
|
|
|
|
|
|
|
(15,935) |
Loss before income taxes |
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|
|
|
|
|
|
|
|
(11,970) |
Income tax provision |
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|
|
|
|
|
|
|
|
|
|
452 |
Net loss |
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|
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|
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|
$ |
(12,422) |
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(In thousands) |
|
Nine Months Ended September 30, 2022 |
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Midwest & South |
|
West |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
62,747 |
|
$ |
25,546 |
|
$ |
— |
|
$ |
88,293 |
Food and beverage |
|
|
18,126 |
|
|
2,129 |
|
|
— |
|
|
20,255 |
Hotel |
|
|
6,573 |
|
|
503 |
|
|
— |
|
|
7,076 |
Other operations,
including contracted sports wagering |
|
|
5,055 |
|
|
422 |
|
|
6,098 |
|
|
11,575 |
|
|
$ |
92,501 |
|
$ |
28,600 |
|
$ |
6,098 |
|
$ |
127,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
$ |
21,816 |
|
$ |
4,508 |
|
$ |
6,047 |
|
$ |
32,371 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(6,012) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
(4,130) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
(33) |
Preopening costs |
|
|
|
|
|
|
|
|
|
|
|
(4,914) |
Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
|
(3) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
(1,362) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
15,917 |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
(19,225) |
Loss on modification of debt |
|
|
|
|
|
|
|
|
|
|
|
(4,530) |
|
|
|
|
|
|
|
|
|
|
|
|
(23,755) |
Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
|
(7,838) |
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
(16) |
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(7,822) |
|
|
|
|
|
|
|
(In thousands) |
|
September 30, |
|
December 31, |
|
|
2023 |
|
2022 |
Total Assets |
|
|
|
|
|
|
Midwest & South |
|
$ |
287,358 |
|
$ |
194,033 |
West |
|
|
359,610 |
|
|
351,069 |
Contracted Sports Wagering |
|
|
5,027 |
|
|
1,658 |
Corporate and Other |
|
|
13,109 |
|
|
48,569 |
|
|
$ |
665,104 |
|
$ |
595,329 |
|