| 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, 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 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:
|
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|
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|
|
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|
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|
|
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|
|
|
(In thousands) |
|
Three Months Ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Mississippi |
|
Indiana |
|
Colorado |
|
Nevada |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
14,578 |
|
$ |
7,906 |
|
$ |
5,288 |
|
$ |
4,734 |
|
$ |
— |
|
$ |
32,506 |
Food and beverage |
|
|
5,156 |
|
|
891 |
|
|
740 |
|
|
305 |
|
|
— |
|
|
7,092 |
Hotel |
|
|
1,248 |
|
|
990 |
|
|
231 |
|
|
— |
|
|
— |
|
|
2,469 |
Other operations, including contracted sports wagering |
|
|
556 |
|
|
2,799 |
|
|
81 |
|
|
93 |
|
|
1,642 |
|
|
5,171 |
|
|
$ |
21,538 |
|
$ |
12,586 |
|
$ |
6,340 |
|
$ |
5,132 |
|
$ |
1,642 |
|
$ |
47,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
$ |
6,485 |
|
$ |
3,816 |
|
$ |
1,543 |
|
$ |
1,537 |
|
$ |
1,645 |
|
$ |
15,026 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,819) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,427) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(318) |
Preopening costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17) |
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(324) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,119 |
Other expense: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,405) |
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,714 |
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95 |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Three Months Ended September 30, 2020 |
|
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|
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Contracted |
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Mississippi |
|
Indiana |
|
Colorado |
|
Nevada |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Casino |
|
$ |
13,972 |
|
$ |
7,204 |
|
$ |
6,866 |
|
$ |
3,868 |
|
$ |
— |
|
$ |
31,910 |
Food and beverage |
|
|
4,231 |
|
|
711 |
|
|
505 |
|
|
165 |
|
|
— |
|
|
5,612 |
Hotel |
|
|
1,303 |
|
|
1,034 |
|
|
174 |
|
|
— |
|
|
— |
|
|
2,511 |
Other operations, including contracted sports wagering |
|
|
460 |
|
|
616 |
|
|
88 |
|
|
80 |
|
|
679 |
|
|
1,923 |
|
|
$ |
19,966 |
|
$ |
9,565 |
|
$ |
7,633 |
|
$ |
4,113 |
|
$ |
679 |
|
$ |
41,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
$ |
6,495 |
|
$ |
2,082 |
|
$ |
3,116 |
|
$ |
1,032 |
|
$ |
631 |
|
$ |
13,356 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,848) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(870) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(108) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(121) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,409 |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,391) |
Adjustment to fair value of warrants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(403) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,794) |
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,615 |
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(93) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Nine Months Ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Mississippi |
|
Indiana |
|
Colorado |
|
Nevada |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
47,489 |
|
$ |
22,507 |
|
$ |
16,127 |
|
$ |
13,094 |
|
$ |
— |
|
$ |
99,217 |
Food and beverage |
|
|
15,411 |
|
|
2,577 |
|
|
1,777 |
|
|
868 |
|
|
— |
|
|
20,633 |
Hotel |
|
|
3,687 |
|
|
3,040 |
|
|
463 |
|
|
— |
|
|
— |
|
|
7,190 |
Other operations, including contracted sports wagering |
|
|
1,546 |
|
|
3,629 |
|
|
259 |
|
|
254 |
|
|
4,160 |
|
|
9,848 |
|
|
$ |
68,133 |
|
$ |
31,753 |
|
$ |
18,626 |
|
$ |
14,216 |
|
$ |
4,160 |
|
$ |
136,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
$ |
23,097 |
|
$ |
7,615 |
|
$ |
5,092 |
|
$ |
4,173 |
|
$ |
4,122 |
|
$ |
44,099 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,448) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,803) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(491) |
Preopening costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17) |
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(674) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(647) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,019 |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,531) |
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,104) |
Adjustment to fair value of warrants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,347) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,982) |
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,037 |
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
379 |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Nine Months Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Mississippi |
|
Indiana |
|
Colorado |
|
Nevada |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
29,688 |
|
$ |
14,055 |
|
$ |
12,357 |
|
$ |
7,516 |
|
$ |
— |
|
$ |
63,616 |
Food and beverage |
|
|
10,666 |
|
|
1,956 |
|
|
1,360 |
|
|
614 |
|
|
— |
|
|
14,596 |
Hotel |
|
|
2,833 |
|
|
2,010 |
|
|
361 |
|
|
— |
|
|
— |
|
|
5,204 |
Other operations, including contracted sports wagering |
|
|
994 |
|
|
998 |
|
|
170 |
|
|
177 |
|
|
1,565 |
|
|
3,904 |
|
|
$ |
44,181 |
|
$ |
19,019 |
|
$ |
14,248 |
|
$ |
8,307 |
|
$ |
1,565 |
|
$ |
87,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
$ |
9,526 |
|
$ |
(769) |
|
$ |
2,448 |
|
$ |
79 |
|
$ |
1,467 |
|
$ |
12,751 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,868) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,899) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(423) |
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(439) |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(307) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,815 |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,329) |
Adjustment to fair value of warrants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,170) |
Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,355) |
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(3,353) |
|
|
|
|
|
|
|
(In thousands) |
|
September 30, |
|
December 31, |
|
|
2021 |
|
2020 |
Total Assets |
|
|
|
|
|
|
Mississippi |
|
$ |
87,371 |
|
$ |
83,809 |
Indiana |
|
|
37,447 |
|
|
37,798 |
Colorado |
|
|
242,068 |
|
|
44,961 |
Nevada |
|
|
14,004 |
|
|
13,248 |
Contracted Sports Wagering |
|
|
1,084 |
|
|
1,329 |
Corporate and Other |
|
|
88,118 |
|
|
31,471 |
|
|
$ |
470,092 |
|
$ |
212,616 |
|