Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the ownership and operation of resort casino properties in Nevada and Maryland. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, and the operation of branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable operating segments because these costs are not easily allocable and to do so would not be practical. The Company evaluates each segment’s profitability based upon such segment’s Adjusted EBITDA, which represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of goodwill and intangible assets, acquisition and severance expenses, preopening and related expenses, asset disposal and other writedowns, share-based compensation expenses, and change in fair value of derivative, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA: Three Months Ended September 30, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 83,549 $ 61,972 $ — $ 145,521 Food and beverage 22,067 6,618 — 28,685 Rooms 22,505 — — 22,505 Other 7,193 1,313 179 8,685 Total revenues $ 135,314 $ 69,903 $ 179 $ 205,396 Net income (loss) $ 25,068 $ (1,161) $ (30,863) $ (6,956) Depreciation and amortization 25,165 5,723 663 31,551 Acquisition and severance expenses — — 24 24 Preopening and related expenses (1) — — 73 73 Gain on disposal of assets (20) (346) (108) (474) Share-based compensation — — 3,520 3,520 Other, net 92 467 727 1,286 Interest expense, net 226 15 16,181 16,422 Income tax benefit — — (17) (17) Adjusted EBITDA $ 50,531 $ 4,698 $ (9,800) $ 45,429 Three Months Ended September 30, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 69,953 $ 72,615 $ — $ 142,568 Food and beverage 37,836 13,273 — 51,109 Rooms 35,347 — — 35,347 Other 11,977 2,110 203 14,290 Total revenues $ 155,113 $ 87,998 $ 203 $ 243,314 Net income (loss) $ 17,858 $ 5,786 $ (33,091) $ (9,447) Depreciation and amortization 23,500 5,616 495 29,611 Acquisition and severance expenses 137 — 291 428 Preopening and related expenses (1) 308 189 59 556 Gain on disposal of assets (4) (223) (6) (233) Share-based compensation — — 2,583 2,583 Other, net 218 — 25 243 Interest expense, net 200 18 18,558 18,776 Change in fair value of derivative — — 352 352 Income tax provision — — 200 200 Adjusted EBITDA $ 42,217 $ 11,386 $ (10,534) $ 43,069 (1) Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. Nine Months Ended September 30, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 170,664 $ 158,749 $ — $ 329,413 Food and beverage 57,888 22,512 — 80,400 Rooms 54,097 — — 54,097 Other 20,067 3,965 585 24,617 Total revenues $ 302,716 $ 185,226 $ 585 $ 488,527 Net loss $ (23,849) $ (5,751) $ (88,542) $ (118,142) Depreciation and amortization 75,222 17,490 1,925 94,637 Impairment of goodwill and intangible assets 27,872 — — 27,872 Acquisition and severance expenses 2,606 612 149 3,367 Preopening and related expenses (1) 225 (1) 188 412 Loss (gain) on disposal of assets 1,290 (360) (113) 817 Share-based compensation — — 7,522 7,522 Other, net 187 705 868 1,760 Interest expense, net 562 40 50,973 51,575 Change in fair value of derivative — — 1 1 Income tax provision — — 241 241 Adjusted EBITDA $ 84,115 $ 12,735 $ (26,788) $ 70,062 Nine Months Ended September 30, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 213,075 $ 219,531 $ — $ 432,606 Food and beverage 113,327 39,644 — 152,971 Rooms 102,148 — — 102,148 Other 36,653 6,333 565 43,551 Total revenues $ 465,203 $ 265,508 $ 565 $ 731,276 Net income (loss) $ 63,018 $ 20,739 $ (115,630) $ (31,873) Depreciation and amortization 69,195 16,514 1,143 86,852 Acquisition and severance expenses 524 35 2,536 3,095 Preopening and related expenses (1) 2,662 1,415 208 4,285 Loss (gain) on disposal of assets 763 (158) 384 989 Share-based compensation 11 5 8,885 8,901 Other, net 310 — 1,284 1,594 Interest expense, net 316 57 55,673 56,046 Loss on extinguishment and modification of debt — — 9,150 9,150 Change in fair value of derivative — — 4,089 4,089 Income tax benefit — — (1,795) (1,795) Adjusted EBITDA $ 136,799 $ 38,607 $ (34,073) $ 141,333 (1) Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at September 30, 2020 $ 1,112,412 $ 433,198 $ 63,317 $ 1,608,927 Balance at December 31, 2019 $ 1,204,574 $ 482,294 $ 54,049 $ 1,740,917 |