Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND DISAGGREGATED REVENUE

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SEGMENT REPORTING AND DISAGGREGATED REVENUE
9 Months Ended
Sep. 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, 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:

(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:

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

Contracted

Sports

Mississippi

Indiana

Colorado

Nevada

Wagering

Total

Revenues

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