Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-24993 | |
Entity Registrant Name | GOLDEN ENTERTAINMENT, INC. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1913991 | |
Entity Address, Address Line One | 6595 S Jones Boulevard | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 893-7777 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | GDEN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,980,488 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001071255 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 202,283 | $ 220,540 |
Accounts receivable, net of allowance for credit losses of $659 and $481 at March 31, 2022 and December 31, 2021, respectively | 20,535 | 18,720 |
Prepaid expenses | 24,244 | 15,108 |
Inventories | 7,427 | 6,637 |
Other | 3,184 | 2,933 |
Total current assets | 257,673 | 263,938 |
Property and equipment, net | 890,625 | 904,220 |
Operating lease right-of-use assets, net | 170,775 | 179,251 |
Goodwill | 158,396 | 158,396 |
Intangible assets, net | 96,169 | 98,058 |
Deferred income tax assets | 18,698 | 0 |
Other assets | 11,803 | 11,701 |
Total assets | 1,604,139 | 1,615,564 |
Current liabilities | ||
Current portion of long-term debt and finance leases | 655 | 1,057 |
Current portion of operating leases | 38,770 | 40,151 |
Accounts payable | 23,880 | 19,102 |
Accrued payroll and related | 24,188 | 31,309 |
Accrued liabilities | 47,212 | 35,347 |
Total current liabilities | 134,705 | 126,966 |
Long-term debt, net and non-current finance leases | 986,542 | 1,010,469 |
Non-current operating leases | 148,131 | 155,098 |
Deferred income tax liabilities | 0 | 1,861 |
Other long-term obligations | 1,503 | 1,629 |
Total liabilities | 1,270,881 | 1,296,023 |
Commitments and contingencies (Note 9) | 0 | 0 |
Shareholders’ equity | ||
Common stock, $.01 par value; authorized 100,000 shares; 28,980 and 28,830 common shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 290 | 288 |
Additional paid-in capital | 470,672 | 477,829 |
Accumulated deficit | (137,704) | (158,576) |
Total shareholders’ equity | 333,258 | 319,541 |
Total liabilities and shareholders’ equity | $ 1,604,139 | $ 1,615,564 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 659 | $ 481 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 28,980,000 | 28,830,000 |
Common stock, shares outstanding (in shares) | 28,980,000 | 28,830,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Total revenues | $ 273,644 | $ 239,696 |
Expenses | ||
Other operating | 3,976 | 2,696 |
Selling, general and administrative | 60,910 | 53,591 |
Depreciation and amortization | 26,276 | 27,186 |
(Gain) loss on disposal of assets | (41) | 209 |
Preopening expenses | 55 | 120 |
Total expenses | 240,758 | 213,325 |
Operating income | 32,886 | 26,371 |
Non-operating expense | ||
Interest expense, net | (15,118) | (16,048) |
Loss on debt extinguishment and modification | (181) | 0 |
Total non-operating expense, net | (15,299) | (16,048) |
Income before income tax benefit | 17,587 | 10,323 |
Income tax benefit | 18,479 | 297 |
Net income | $ 36,066 | $ 10,620 |
Weighted-average common shares outstanding | ||
Basic (in shares) | 28,894 | 28,219 |
Diluted (in shares) | 32,149 | 30,414 |
Net income per share | ||
Basic (USD per share) | $ 1.25 | $ 0.38 |
Diluted (USD per share) | $ 1.12 | $ 0.35 |
Gaming | ||
Revenues | ||
Total revenues | $ 190,787 | $ 177,000 |
Expenses | ||
Cost of goods and services sold | 105,651 | 96,372 |
Food and beverage | ||
Revenues | ||
Total revenues | 42,456 | 33,804 |
Expenses | ||
Cost of goods and services sold | 31,457 | 23,541 |
Rooms | ||
Revenues | ||
Total revenues | 25,746 | 18,398 |
Expenses | ||
Cost of goods and services sold | 12,474 | 9,610 |
Other | ||
Revenues | ||
Total revenues | $ 14,655 | $ 10,494 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional Paid-In Capital | Accumulated Deficit |
Balances (in shares) at Dec. 31, 2020 | 28,159 | |||
Balances at Dec. 31, 2020 | $ 161,262 | $ 282 | $ 470,719 | $ (309,739) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of stock on options exercised and restricted stock units vested (in shares) | 303 | |||
Issuance of stock on options exercised and restricted stock units vested | 101 | $ 3 | 98 | |
Share-based compensation | 2,669 | 2,669 | ||
Tax benefit from share-based compensation | (3,439) | (3,439) | ||
Net income | 10,620 | 10,620 | ||
Balances (in shares) at Mar. 31, 2021 | 28,462 | |||
Balances at Mar. 31, 2021 | 171,213 | $ 285 | 470,047 | (299,119) |
Balances (in shares) at Dec. 31, 2021 | 28,830 | |||
Balances at Dec. 31, 2021 | 319,541 | $ 288 | 477,829 | (158,576) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of stock on options exercised and restricted stock units vested (in shares) | 419 | |||
Issuance of stock on options exercised and restricted stock units vested | 4 | $ 4 | ||
Repurchases of common stock (in shares) | (269) | |||
Repurchases of common stock | (15,196) | $ (2) | (15,194) | |
Share-based compensation | 3,141 | 3,141 | ||
Tax benefit from share-based compensation | (10,298) | (10,298) | ||
Net income | 36,066 | 36,066 | ||
Balances (in shares) at Mar. 31, 2022 | 28,980 | |||
Balances at Mar. 31, 2022 | $ 333,258 | $ 290 | $ 470,672 | $ (137,704) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 36,066 | $ 10,620 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,276 | 27,186 |
Change in non-cash lease expense | 181 | 439 |
Share-based compensation | 3,141 | 2,669 |
Amortization of debt issuance costs and discounts on debt | 1,117 | 1,155 |
(Gain) loss on disposal of assets | (41) | 209 |
Provision (benefit) for credit losses | 188 | (27) |
Deferred income taxes | (20,559) | (297) |
Loss on debt extinguishment and modification | 181 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,003) | (1,352) |
Prepaid expenses, inventories and other current assets | (10,177) | (6,012) |
Other assets | (167) | 9,472 |
Accounts payable and other accrued expenses | 9,492 | 17,791 |
Other liabilities | (177) | (9,659) |
Net cash provided by operating activities | 43,518 | 52,194 |
Cash flows from investing activities | ||
Purchase of property and equipment, net of change in construction payables | (10,813) | (4,873) |
Proceeds from disposal of property and equipment | 90 | 223 |
Net cash used in investing activities | (10,723) | (4,650) |
Cash flows from financing activities | ||
Repayments of term loan | (25,000) | 0 |
Repayments of notes payable | (433) | (1,483) |
Principal payments under finance leases | (117) | (839) |
Payment for debt extinguishment and modification costs | (12) | 0 |
Tax withholding on share-based payments | (10,298) | (3,439) |
Proceeds from issuance of common stock, net of costs | 4 | 3 |
Proceeds from exercise of stock options | 0 | 98 |
Repurchases of common stock | (15,196) | 0 |
Net cash used in financing activities | (51,052) | (5,660) |
Cash and cash equivalents | ||
Change in cash and cash equivalents | (18,257) | 41,884 |
Balance, beginning of period | 220,540 | 103,558 |
Balance, end of period | 202,283 | 145,442 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 6,435 | 7,630 |
Non-cash investing and financing activities | ||
Payables incurred for capital expenditures | 2,790 | 561 |
Loss on debt extinguishment and modification | 181 | 0 |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 4,352 | $ 28,681 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Overview Golden Entertainment, Inc. and its wholly-owned subsidiaries own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and distributed gaming operations (including gaming in the Company’s branded taverns). The Company’s portfolio includes ten casino properties located in Nevada and Maryland. The Company’s distributed gaming operations involve the installation, maintenance and operation of slot machines and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, as well as the operation of branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. Unless otherwise indicated, the terms “Golden” and the “Company,” refer to Golden Entertainment, Inc. together with its subsidiaries. The Company conducts its business through four reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, and Distributed Gaming. Each reportable segment is comprised of the following properties and operations: Reportable Segment Location Nevada Casino Resorts The STRAT Hotel, Casino & SkyPod (“The STRAT”) Las Vegas, Nevada Aquarius Casino Resort (“Aquarius”) Laughlin, Nevada Edgewater Hotel & Casino Resort (“Edgewater”) Laughlin, Nevada Colorado Belle Hotel & Casino Resort (“Colorado Belle”) (1) Laughlin, Nevada Nevada Locals Casinos Arizona Charlie’s Boulder Las Vegas, Nevada Arizona Charlie’s Decatur Las Vegas, Nevada Gold Town Casino Pahrump, Nevada Lakeside Casino & RV Park Pahrump, Nevada Pahrump Nugget Hotel Casino (“Pahrump Nugget”) Pahrump, Nevada Maryland Casino Resort Rocky Gap Casino Resort (“Rocky Gap”) Flintstone, Maryland Distributed Gaming Nevada distributed gaming Nevada Nevada taverns Nevada Montana distributed gaming Montana (1) As a result of the impact of the 2019 novel coronavirus (“COVID-19”) pandemic, the operations of the Colorado Belle remain suspended. Impact of COVID-19 In response to the COVID-19 pandemic, during the week of March 16, 2020 the Governors of Nevada, Maryland and Montana issued emergency executive orders mandating temporary closures of all of the Company’s properties and suspension of the distributed gaming operations at third-party locations. The Company re-opened its casino properties and resumed its distributed gaming operations during the second and third quarters of 2020. However, the implementation of protocols intended to protect team members, gaming patrons and guests from potential COVID-19 exposure continued to limit the Company’s operations post re-opening. While some of these restrictions were eased during 2021, the Company’s properties and distributed gaming operations may be subject to temporary, complete or partial closures in the future and it is unknown how the uncertainties associated with the pandemic will continue to impact the Company’s operations. Further, as a result of the impact of the pandemic, the operations of the Colorado Belle property remain suspended. Temporary closures of the Company’s operations due to the COVID-19 pandemic resulted in lease concessions for certain of the Company’s taverns and route locations in 2020, some of which continued in 2021. Such concessions provided for deferral and, in some instances, forgiveness of rent payments with no substantive amendments to the consideration due per the terms of the original contract and did not result in substantial changes in the Company’s obligations under such leases. The Company elected to account for the deferred rent as variable lease payments, which resulted in a reduction of the rent expense of $1.7 million for the three months ended March 31, 2021. Rent expense that was not forgiven was recorded in future periods as those deferred payments were paid to the Company’s lessors. Basis of Presentation The unaudited consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Accordingly, certain information normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) has been condensed and/or omitted. For further information, refer to the audited consolidated financial statements of the Company for the year ended December 31, 2021 and the notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report”) previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which included only normal recurring adjustments, necessary to present fairly the Company’s results for the periods presented. Results for interim periods should not be considered indicative of the results to be expected for the full year and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications were made to the Company’s prior period consolidated financial statements to conform to the current period presentation, where applicable. These reclassifications had no effect on previously reported net income. Significant Accounting Policies There have been no changes to the significant accounting policies disclosed in the Company’s Annual Report. Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. In the event of a net loss, diluted shares are not considered because of their anti-dilutive effect. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. While management continues to assess the possible impact of the adoption of new accounting standards and the future adoption of the new accounting standards that are not yet effective on the Company’s financial statements, management currently believes that the following new standards have or may have an impact on the Company’s consolidated financial statements and disclosures: Accounting Standards Issued and Adopted In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors — Certain Leases with Variable Lease Payments . The ASU addresses an issue related to a lessor’s accounting for lease contracts that have variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendment allows the lessor to classify and account for such lease contracts as operating. The Company adopted the standard effective January 1, 2022, and the adoption did not have a material impact on the Company’s financial statements or disclosures. Accounting Standards Issued but Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU improves the accounting for revenue contracts with customers acquired in a business combination by addressing diversity in practice and inconsistency related to recognition of contract assets and liabilities acquired in a business combination. The provisions of this ASU require that an acquiring entity account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company does not expect the impact of the adoption of this ASU to be material to its financial statements or disclosures. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Land $ 125,240 $ 125,240 Building and improvements 940,370 937,759 Furniture and equipment 251,101 246,323 Construction in process 19,640 16,347 Property and equipment 1,336,351 1,325,669 Accumulated depreciation (445,726) (421,449) Property and equipment, net $ 890,625 $ 904,220 Depreciation expense for property and equipment, includ ing finance leases, was $24.4 million and $25.0 million for the three months ended March 31, 2022 and 2021, respectively. The Company reviews the carrying amounts of its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Due to the significant impact of the COVID-19 pandemic on the Company’s operations, the Company decided to keep operations of its Colorado Belle property suspended. Based on the results of its interim impairment assessments conducted during the three months ended March 31, 2022 and 2021, the Company concluded that there was no impairment of the Company’s long-lived assets. To the extent the Company becomes aware of new facts and circumstances that would result in a triggering event, the Company will revise its cash flow projections accordingly, as its estimates of future cash flows are highly dependent upon certain assumptions, including, but not limited to, the nature, timing, and extent of elimination or change of the restrictions on the Company’s operations and the extent and timing of the economic recovery globally, nationally, and specifically within the gaming industry. If such assumptions are not accurate, the Company may be required to record impairment charges in future periods, whether in connection with its regular review procedures, or earlier, if an indicator of an impairment is present prior to such evaluation. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company tests goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter of each year, and whenever events or circumstances indicate that it is more likely than not that the carrying value of a reporting unit exceeds its fair value. Finite-lived intangible assets are evaluated for potential impairment whenever there is an indicator that the carrying value of an asset group may not be recoverable. Based on the results of its interim impairment assessments conducted during the three months ended March 31, 2022 and 2021, the Company concluded that there was no impairment of the Company’s goodwill and intangible assets. The following table summarizes goodwill activity by reportable segment: (In thousands) Nevada Casino Resorts Nevada Locals Casinos Maryland Casino Resort Distributed Total Balance, December 31, 2021 and March 31, 2022 $ 22,105 $ 38,187 $ — $ 98,104 $ 158,396 Intangible assets, net, consisted of the following: March 31, 2022 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (37,346) — 43,759 Player relationships 2-14 42,990 (39,973) — 3,017 Non-compete agreements 2-5 9,840 (8,543) — 1,297 Gaming license (1) 15 2,100 (1,245) — 855 In-place lease value 4 1,170 (1,170) — — Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,373) — 441 139,589 (90,220) — 49,369 Balance, March 31, 2022 $ 193,279 $ (90,220) $ (6,890) $ 96,169 (1) Relates to Rocky Gap. December 31, 2021 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (35,879) — 45,226 Player relationships 2-14 42,990 (39,812) — 3,178 Non-compete agreements 2-5 9,840 (8,349) — 1,491 Gaming license (1) 15 2,100 (1,210) — 890 In-place lease value 4 1,170 (1,155) — 15 Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,356) — 458 139,589 (88,331) — 51,258 Balance, December 31, 2021 $ 193,279 $ (88,331) $ (6,890) $ 98,058 (1) Relates to Rocky Gap. Total amortization expense related to intangible assets was $1.9 million and $2.2 million for the three months ended March 31, 2022 and 2021, respectively. To the extent the Company becomes aware of new facts and circumstances that would result in a triggering event, the Company will revise its cash flow projections accordingly, as its estimates of future cash flows are highly dependent upon certain assumptions, including, but not limited to, the nature, timing, and extent of elimination or change of the restrictions on the Company’s operations and the extent and timing of the economic recovery globally, nationally, and specifically within the gaming industry. If such assumptions are not accurate, the Company may be required to record impairment charges in future periods, whether in connection with its regular review procedures, or earlier, if an indicator of an impairment is present prior to such evaluation. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Interest $ 13,173 $ 6,168 Gaming liabilities 11,232 12,311 Accrued taxes, other than income taxes 9,609 9,035 Other accrued liabilities 8,706 5,549 Deposits 4,492 2,284 Total current accrued liabilities $ 47,212 $ 35,347 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net, consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Term Loan $ 625,000 $ 650,000 2026 Unsecured Notes 375,000 375,000 Finance lease liabilities 2,887 3,005 Notes payable 168 602 Total long-term debt and finance leases 1,003,055 1,028,607 Unamortized discount (10,778) (11,689) Unamortized debt issuance costs (5,080) (5,392) Total long-term debt and finance leases after debt issuance costs and discount 987,197 1,011,526 Current portion of long-term debt and finance leases (655) (1,057) Long-term debt, net and finance leases $ 986,542 $ 1,010,469 Senior Secured Credit Facility In October 2017, the Company entered into a senior secured credit facility consisting of a $900 million senior secured first lien credit facility (consisting of an $800 million term loan (the “Term Loan”) maturing on October 20, 2024 and a $100 million revolving credit facility (the “Revolving Credit Facility”)) with JPMorgan Chase Bank, N.A. (as administrative agent and collateral agent), the lenders party thereto and the other entities party thereto (the “Credit Facility”). The Revolving Credit Facility was subsequently increased from $100 million to $200 million in 2018, increasing the total Credit Facility capacity to $1.0 billion. On October 12, 2021, the Company further modified the terms of the Revolving Credit Facility by increasing its size to $240 million and extending the maturity date from October 20, 2022 to April 20, 2024. The Company incurred $0.7 million in debt modification costs and fees related to this modification of the Revolving Credit Facility that have been deferred and are being amortized over the term of the Revolving Credit Facility using the straight-line method. As of March 31, 2022, the Company had $625 million in principal amount of outstanding Term Loan borrowings under its Credit Facility, no outstanding letters of credit and no borrowings under the Revolving Credit Facility, such that full borrowing availability of $240 million under the Revolving Credit Facility was available to the Company. The weighted-average effective interest rate on the Company’s outstanding borrowings under the Credit Facility was approximately 3.75% for the three months ended March 31, 2022. The Company made multiple prepayments of the principal under the Term Loan during 2021, thereby eliminating the requirement to make any further quarterly installment payments prior to maturity. During the three months ended March 31, 2022, the Company prepaid an additional $25 million of principal under the Term Loan, which reduced the final installment payment due at the maturity date of October 20, 2024 to $625 million . During the three months ended March 31, 2022, t he Company recorded a non-cash charge in the amount of $0.2 million for the accelerated amortization of the debt issuance costs and discount related to the prepayment of the Term Loan. The Company was in compliance with its financial and other covenants under the Credit Facility as of March 31, 2022. Senior Unsecured Notes On April 15, 2019, the Company issued $375 million in principal amount of 7.625% Senior Notes due 2026 (“2026 Unsecured Notes”) in a private placement to institutional buyers at face value. The 2026 Unsecured Notes bear interest at 7.625%, payable semi-annually on April 15 th and October 15 th of each year. |
Shareholders_ Equity and Stock
Shareholders’ Equity and Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Shareholders’ Equity and Stock Incentive Plans | Shareholders’ Equity and Stock Incentive Plans Share Repurchase Program On March 12, 2019, the Company’s Board of Directors authorized the repurchase of up to $25 million worth of shares of common stock, subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors. Share repurchases may be made from time to time in open market transactions, block trades or in private transactions in accordance with applicable securities laws and regulations and other legal requirements, including compliance with the Company’s finance agreements. There is no minimum number of shares that the Company is required to repurchase and the repurchase program may be suspended or discontinued at any time without prior notice. On August 3, 2021, the Company’s Board of Directors increased this authorization to $50 million. In December 2021, the Company repurchased 226,485 shares of its common stock pursuant to its share repurchase program in open market transactions at an average price of $46.87 per share, resulting in a charge to accumulated deficit of $10.6 million. In March 2022, the Company repurchased 268,791 shares of its common stock pursuant to its share repurchase program in open market transactions at an average price of $56.54 per share, resulting in a charge to accumulated deficit of $15.2 million. As of March 31, 2022, the Company had $24.2 million of remaining share repurchase availability under its August 3, 2021 share repurchase authorization. On May 3, 2022, the Company’s Board of Directors re-authorized its $50 million share repurchase program. Stock Options The following table summarizes the Company’s stock option activity: Stock Options Shares Weighted-Average Exercise Price Outstanding at January 1, 2022 2,141,494 $ 11.31 Granted — $ — Exercised (36,000) $ 9.80 Cancelled — $ — Expired — $ — Outstanding at March 31, 2022 2,105,494 $ 11.33 Exercisable at March 31, 2022 2,105,494 $ 11.33 There was no share-based compensation expense related to stock options for the three months ended March 31, 2022 and the Company recorded share-based compensation expense of $0.2 million for the three months ended March 31, 2021. The Company did not have any remaining unrecognized share-based compensation expense related to stock options as of March 31, 2022 and 2021. Restricted Stock Units The following table summarizes the Company’s activity related to time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”): RSUs PSUs Shares Weighted-Average Grant Date Fair Value Shares (1) Weighted-Average Grant Date Fair Value Outstanding at January 1, 2022 815,420 $ 18.17 705,577 (2) $ 13.84 Granted 97,447 $ 53.51 83,579 $ 53.51 Performance adjustment — $ — 534,383 (3) $ — Vested (338,644) $ 15.79 (247,380) (4) $ 12.51 Cancelled (18,693) $ 14.95 — $ — Outstanding at March 31, 2022 555,530 $ 25.93 1,076,159 $ 19.79 (1) The number of shares for the PSUs listed as granted represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest for those PSUs will vary depending on whether or not the Company meets or exceeds the applicable threshold, target, or maximum performance goals for the PSUs, with 200% of the “target” number of PSUs eligible to vest at “maximum” performance levels. (2) Includes 171,194 shares of PSUs granted in March 2019 that were certified below target during the three months ended March 31, 2021 and vested during the three months ended March 31, 2022. Also includes PSUs granted in March 2020 and March 2021 at “target.” (3) The Company’s financial results for the applicable performance goals were certified during the three months ended March 31, 2022 and 200% of the target PSUs granted in March 2020 and March 2021 were deemed “earned” and will be eligible to vest on March 14, 2023 and 2024, respectively. (4) Includes 171,194 shares of PSUs granted in March 2019 and 76,186 shares of PSUs granted in March 2020 that vested during the three months ended March 31, 2022. Share-based compensation expense related to RSUs was $1.6 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively. Share-based compensation expense related to PSUs was $1.5 million and $1.2 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was $12.5 million and $11.3 million of unamortized share-based compensati on expense related to RSUs and PSUs, respectively, which is expected to be recognized over a weighted-average period of 2.2 years fo r both RSUs and PSUs. As of March 31, 2021, there was $11.3 million and $6.2 million of unamortized share-based compensation expense related to RSUs and PSUs, respectively, which is expected to be recognized over a weighted-average period of 2.4 years for both RSUs and PSUs. As of March 31, 2022, a total of 3,152,416 shares of the Company’s common stock remained available for grants of awards under the Golden Entertainment, Inc. 2015 Incentive Award Plan, which includes the annual increase in the number of shares available for grant on January 1, 2022 of 1,153,210 shares. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The Company’s effective income tax rates were (105.1)% and (2.9)% for the three months ended March 31, 2022 and 2021, respectively. Income tax benefit of $18.5 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively, primarily related to the change in valuation allowance against the Company’s deferred tax assets during the periods. The Company performs a continuing evaluation of its deferred tax asset valuation allowance on a quarterly basis. The Company has concluded that, as of March 31, 2022, it is more likely than not that the Company will generate sufficient taxable income within the applicable net operating loss carry-forward periods to realize a portion of its deferred tax assets. This conclusion, and the resulting partial reversal of the deferred tax asset valuation allowance, is based upon consideration of several factors, including the Company’s three-year cumulative pre-tax book income position and its forecast of future profitability. As of March 31, 2022, the Company’s 2017 and 2018 federal tax returns were under audit by the IRS. As of March 31, 2022 and December 31, 2021, the Company had no material uncertain tax positions. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Thus, assets and liabilities categorized as Level 3 may be measured at fair value using inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Management’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. Financial Instruments The carrying values of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short duration of these financial instruments. The following table summarizes the fair value measurement of the Company’s long-term debt: March 31, 2022 (In thousands) Carrying Amount Fair Value Fair Value Hierarchy Term Loan $ 625,000 $ 621,094 Level 2 2026 Unsecured Notes 375,000 390,450 Level 2 Finance lease liabilities 2,887 2,887 Level 3 Notes payable 168 168 Level 3 Total debt $ 1,003,055 $ 1,014,599 December 31, 2021 (In thousands) Carrying Amount Fair Value Fair Value Hierarchy Term Loan $ 650,000 $ 650,813 Level 2 2026 Unsecured Notes 375,000 390,938 Level 2 Finance lease liabilities 3,005 3,005 Level 3 Notes payable 602 602 Level 3 Total debt $ 1,028,607 $ 1,045,358 The estimated fair value of the Company’s Term Loan and 2026 Unsecured Notes is based on a relative value analysis performed as of March 31, 2022 and December 31, 2021. The finance lease liabilities and notes payable are fixed-rate debt, are not traded and do not have observable market inputs, and therefore, their fair value is estimated to be equal to the carrying value. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Participation Agreements The Company enters into certain slot placement contracts in the form of participation agreements. Under participation agreements, the Company and the business location each hold a state issued gaming license in order to be able to receive a percentage of gaming revenue earned on the Company’s slot machines. The business location retains a percentage of the gaming revenue generated from the Company’s slot machines. The Company is considered to be the principal in these arrangements and therefore, records its share of revenue generated under participation agreements on a gross basis with the business location’s share of revenue recorded as gaming expenses. The aggregate contingent payments recognized by the Company as gaming expenses under participation agreements were $52.8 million and $54.1 million for the three months ended March 31, 2022 and 2021, respectively. Legal Matters and Other From time to time, the Company is involved in a variety of lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of business, including proceedings concerning labor and employment matters, personal injury claims, breach of contract claims, commercial disputes, business practices, intellectual property, tax and other matters for which the Company records reserves. Although lawsuits, claims, investigations and other legal proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its currently pending matters should not have a material adverse effect on its business, financial condition, results of operations or liquidity. Regardless of the outcome, legal proceedings can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. In addition, it is possible that an unfavorable resolution of one or more such proceedings could in the future materially and adversely affect the Company’s business, financial condition, results of operations or liquidity in a particular period. In January 2021, the Company was affected by a ransomware cyber-attack that temporarily disrupted the Company’s access to certain information located on the Company’s network and incurred expenses relating thereto. The Company’s financial information and business operations were not materially affected. The Company implemented a variety of measures to further enhance its cybersecurity protections and minimize the impact of any future cyber incidents. The Company has insurance related to this event and has recovered a portion of the costs it incurred to remediate this matter, which amounts were received and recorded during 2021 and the three months ended March 31, 2022. In September 2018, the Company entered into an agreement with American Wagering, Inc. and William Hill U.S. HoldCo, Inc. (collectively, “William Hill”), which contemplated that William Hill would be obligated to make a one-time payment to the Company in the event of a change of control transaction with respect to William Hill. Under this agreement, as amended, the April 22, 2021 acquisition of William Hill PLC by Caesars Entertainment, Inc. (“Caesars”) constituted the change of control event triggering this payment. On May 26, 2021, the Company, William Hill and Caesars executed an amendment to the agreement requiring William Hill and Caesars, as the acquiring party, to make an initial payment in the amount of $60 million by July 15, 2021 and to provide for a second contingent payment in the event of a sale of the William Hill business in the United Kingdom, as discussed below. The Company received this initial payment in July 2021 and recognized $60 million in non-operating income for the year ended December 31, 2021. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company conducts its business through four reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort and Distributed Gaming. The Nevada Casino Resorts segment is comprised of destination casino resort properties offering a variety of food and beverage outlets, entertainment venues and other amenities. The casino resort properties in this segment cater primarily to a regional drive-in customer base seeking a value-oriented vacation experience, with guests typically traveling from Southern California or Arizona. The Company’s casino resort properties in Nevada have a significantly larger number of hotel rooms compared to the other casino properties in its portfolio. While hotel stays at these casino resorts are typically longer, the overall frequency of visitation from guests is lower when compared to the Nevada Locals Casinos. The Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius. The Company’s locals casino properties typically experience a higher frequency of customer visits compared to its casino resort properties in Nevada and Maryland, with many of the customers visiting the Company’s Nevada Locals Casinos on a weekly basis. The casino properties within this reportable segment have no or a limited number of hotel rooms and offer fewer food and beverage outlets or other amenities, with revenues primarily generated from slot machine play. The Maryland Casino Resort segment is comprised of the Rocky Gap casino resort, which is geographically disparate from the Company’s Nevada properties, operates in a separate regulatory jurisdiction and has only a limited number of hotel rooms compared to the Nevada Casino Resorts. Rocky Gap caters to a regional drive-in customer base traveling from mid-Atlantic areas (Maryland, Virginia, Washington DC, Pennsylvania, West Virginia) and offers a full range of amenities, including various food and beverage outlets, signature golf course, spa and pool. The Distributed Gaming segment is comprised of the operation of slot machines and amusement devices in approximately 1,100 non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores, across Nevada and Montana with a limited number of slot machines in each location. Distributed Gaming operations cater to local residents with high frequency visitation to these locations. The Company places its slot machines and amusement devices in locations where it believes they will receive maximum customer traffic. As part of the Distributed Gaming segment, the Company owns and operates a limited number of branded tavern locations, where it controls the food and beverage operations as well as the slot machines located within the tavern. The Company’s branded taverns offer a casual, upscale environment catering to local patrons offering superior food, craft beer and other alcoholic beverages, and are typically limited to 15 slot machines. 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 segments because these costs are not easily allocable and to do so would not be practical. The Company presents Adjusted EBITDA in its segment disclosures because it is the primary metric used by the Company’s chief operating decision makers in measuring both the Company’s past and future expectations of performance. Further, the Company’s annual performance plan used to determine compensation of its executive officers and employees is tied to the Adjusted EBITDA metric. Adjusted EBITDA 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, gain or loss on disposal of assets, share-based compensation expenses, and other non-cash charges, that are deemed to be not indicative of the Company’s core operating results, calculated before corporate overhead (which is not allocated to each reportable segment). Due to the Company’s use of Adjusted EBITDA as its measure of profit for its reportable segments, the Company includes a reconciliation of the total of the Company’s consolidated Adjusted EBITDA to the Company’s consolidated net income determined in accordance with GAAP. The Company also discloses Adjusted EBITDA at the reportable segment level, as set forth in the table below: Three Months Ended March 31, (In thousands) 2022 2021 Revenues Nevada Casino Resorts Gaming $ 44,230 $ 38,826 Food and beverage 21,384 14,965 Rooms 22,029 15,628 Other 8,792 5,386 Nevada Casino Resorts revenues $ 96,435 $ 74,805 Nevada Locals Casinos Gaming $ 29,381 $ 29,536 Food and beverage 6,179 5,513 Rooms 2,244 1,478 Other 2,085 2,018 Nevada Locals Casinos revenues $ 39,889 $ 38,545 Maryland Casino Resort Gaming $ 14,457 $ 13,032 Food and beverage 1,648 1,442 Rooms 1,473 1,292 Other 314 334 Maryland Casino Resort revenues $ 17,892 $ 16,100 Distributed Gaming Gaming $ 102,719 $ 95,606 Food and beverage 13,245 11,884 Other 3,258 2,419 Distributed gaming revenues $ 119,222 $ 109,909 Corporate and Other 206 337 Total revenues $ 273,644 $ 239,696 Three Months Ended March 31, (In thousands) 2022 2021 Adjusted EBITDA Nevada Casino Resorts $ 33,575 $ 26,655 Nevada Locals Casinos 20,038 19,552 Maryland Casino Resort 5,572 4,873 Distributed Gaming 22,053 20,880 Corporate and Other (13,913) (12,462) Total Adjusted EBITDA 67,325 59,498 Adjustments Depreciation and amortization (26,276) (27,186) Change in non-cash lease expense (181) (439) Share-based compensation (3,672) (3,005) Gain (loss) on disposal of assets 41 (209) Loss on debt extinguishment and modification (181) — Preopening and related expenses (1) (55) (120) Other, net (4,296) (2,168) Interest expense, net (15,118) (16,048) Income tax benefit 18,479 297 Net Income $ 36,066 $ 10,620 (1) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of tavern and casino locations. Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Nevada Casino Resorts Nevada Locals Casinos Maryland Casino Resort Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2022 $ 808,374 $ 166,486 $ 41,600 $ 403,218 $ 184,461 $ 1,604,139 Balance at December 31, 2021 $ 811,016 $ 165,362 $ 41,403 $ 411,342 $ 186,441 $ 1,615,564 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company historically leased its office headquarters building from a company 33% beneficially owned by Blake L. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Stephen A. Arcana. On May 24, 2021 the building was sold to an independent third party, and therefore this lease is no longer with a related party. The rent expense for the office headquarters building prior to the sale of the building to an independent third party was $0.3 million for the three months ended March 31, 2021. Additionally, a portion of the office headquarters building was sublet to Sartini Enterprises, Inc., a company controlled by Mr. Sartini. Rental income for each of the three months ended March 31, 2022 and 2021 for the sublet portion of the office headquarters building was insignificant. No amount was owed to the Company under such sublease as of March 31, 2022 and December 31, 2021. In addition, Golden and Sartini Enterprises, Inc. participate in certain cost-sharing arrangements. The amount due and payable by the Company under such arrangements was insignificant as of March 31, 2022 and December 31, 2021. Mr. Sartini serves as the Chairman of the Board and Chief Executive Officer of the Company and is co-trustee of The Blake L. Sartini and Delise F. Sartini Family Trust, which is a significant shareholder of the Company. Mr. Arcana serves as the Executive Vice President and Chief Operating Officer of the Company. In November 2018, the Company entered into a lease agreement for additional office space in a building owned by a company 33% beneficially owned by Mr. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Mr. Arcana. The lease commenced in August 2020 and expires on December 31, 2030. The rent expense for the space was $0.1 million for each of the three months ended March 31, 2022 and 2021. Additionally, the lease agreement includes a right of first refusal for additional space on the second floor of the building. From time to time, the Company’s executive officers and employees use a private aircraft leased to Sartini Enterprises, Inc. for Company business purposes pursuant to aircraft time-sharing, co-user and cost-sharing agreements between the Company and Sartini Enterprises, Inc., all of which have been approved by the Audit Committee of the Board of Directors. The aircraft time-sharing, co-user and cost-sharing agreements specify the maximum expense reimbursement that Sartini Enterprises, Inc. can charge the Company under the applicable regulations of the Federal Aviation Administration for the use of the aircraft and the flight crew. Such costs include fuel, landing fees, hangar and tie-down costs away from the aircraft’s operating base, flight planning and weather contract services, crew costs and other related expenses. The Company’s compliance department regularly reviews these reimbursements. The Company did not use the aircraft and did not incur any costs under the aircraft time-sharing, co-user and cost-sharing agreements with Sartini Enterprises, Inc. during the three months ended March 31, 2022. The Company paid $0.2 million under such agreements for the three months ended March 31, 2021. The Company was owed $0.1 million under such agreements as of March 31, 2022 and no amount was owed to or due from the Company under such agreements as of December 31, 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company’s management evaluates subsequent events through the date of issuance of the consolidated financial statements. Other than the re-authorization of the Company’s share repurchase program discussed in “ Note 6 — Shareholders’ Equity and Stock Incentive Plans |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Accordingly, certain information normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) has been condensed and/or omitted. For further information, refer to the audited consolidated financial statements of the Company for the year ended December 31, 2021 and the notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report”) previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which included only normal recurring adjustments, necessary to present fairly the Company’s results for the periods presented. Results for interim periods should not be considered indicative of the results to be expected for the full year and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications were made to the Company’s prior period consolidated financial statements to conform to the current period presentation, where applicable. These reclassifications had no effect on previously reported net income. |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. In the event of a net loss, diluted shares are not considered because of their anti-dilutive effect. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. While management continues to assess the possible impact of the adoption of new accounting standards and the future adoption of the new accounting standards that are not yet effective on the Company’s financial statements, management currently believes that the following new standards have or may have an impact on the Company’s consolidated financial statements and disclosures: Accounting Standards Issued and Adopted In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors — Certain Leases with Variable Lease Payments . The ASU addresses an issue related to a lessor’s accounting for lease contracts that have variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendment allows the lessor to classify and account for such lease contracts as operating. The Company adopted the standard effective January 1, 2022, and the adoption did not have a material impact on the Company’s financial statements or disclosures. Accounting Standards Issued but Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU improves the accounting for revenue contracts with customers acquired in a business combination by addressing diversity in practice and inconsistency related to recognition of contract assets and liabilities acquired in a business combination. The provisions of this ASU require that an acquiring entity account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company does not expect the impact of the adoption of this ASU to be material to its financial statements or disclosures. |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Operating Segments | Each reportable segment is comprised of the following properties and operations: Reportable Segment Location Nevada Casino Resorts The STRAT Hotel, Casino & SkyPod (“The STRAT”) Las Vegas, Nevada Aquarius Casino Resort (“Aquarius”) Laughlin, Nevada Edgewater Hotel & Casino Resort (“Edgewater”) Laughlin, Nevada Colorado Belle Hotel & Casino Resort (“Colorado Belle”) (1) Laughlin, Nevada Nevada Locals Casinos Arizona Charlie’s Boulder Las Vegas, Nevada Arizona Charlie’s Decatur Las Vegas, Nevada Gold Town Casino Pahrump, Nevada Lakeside Casino & RV Park Pahrump, Nevada Pahrump Nugget Hotel Casino (“Pahrump Nugget”) Pahrump, Nevada Maryland Casino Resort Rocky Gap Casino Resort (“Rocky Gap”) Flintstone, Maryland Distributed Gaming Nevada distributed gaming Nevada Nevada taverns Nevada Montana distributed gaming Montana |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment, net, consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Land $ 125,240 $ 125,240 Building and improvements 940,370 937,759 Furniture and equipment 251,101 246,323 Construction in process 19,640 16,347 Property and equipment 1,336,351 1,325,669 Accumulated depreciation (445,726) (421,449) Property and equipment, net $ 890,625 $ 904,220 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity by Reportable Segment | The following table summarizes goodwill activity by reportable segment: (In thousands) Nevada Casino Resorts Nevada Locals Casinos Maryland Casino Resort Distributed Total Balance, December 31, 2021 and March 31, 2022 $ 22,105 $ 38,187 $ — $ 98,104 $ 158,396 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net, consisted of the following: March 31, 2022 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (37,346) — 43,759 Player relationships 2-14 42,990 (39,973) — 3,017 Non-compete agreements 2-5 9,840 (8,543) — 1,297 Gaming license (1) 15 2,100 (1,245) — 855 In-place lease value 4 1,170 (1,170) — — Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,373) — 441 139,589 (90,220) — 49,369 Balance, March 31, 2022 $ 193,279 $ (90,220) $ (6,890) $ 96,169 (1) Relates to Rocky Gap. December 31, 2021 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (35,879) — 45,226 Player relationships 2-14 42,990 (39,812) — 3,178 Non-compete agreements 2-5 9,840 (8,349) — 1,491 Gaming license (1) 15 2,100 (1,210) — 890 In-place lease value 4 1,170 (1,155) — 15 Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,356) — 458 139,589 (88,331) — 51,258 Balance, December 31, 2021 $ 193,279 $ (88,331) $ (6,890) $ 98,058 (1) Relates to Rocky Gap. |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net, consisted of the following: March 31, 2022 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (37,346) — 43,759 Player relationships 2-14 42,990 (39,973) — 3,017 Non-compete agreements 2-5 9,840 (8,543) — 1,297 Gaming license (1) 15 2,100 (1,245) — 855 In-place lease value 4 1,170 (1,170) — — Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,373) — 441 139,589 (90,220) — 49,369 Balance, March 31, 2022 $ 193,279 $ (90,220) $ (6,890) $ 96,169 (1) Relates to Rocky Gap. December 31, 2021 (In thousands) Useful Life (Years) Gross Carrying Value Cumulative Amortization Cumulative Impairment Intangible Assets, Net Indefinite-lived intangible assets Trade names Indefinite $ 53,690 $ — $ (6,890) $ 46,800 53,690 — (6,890) 46,800 Amortizing intangible assets Customer relationships 4-16 81,105 (35,879) — 45,226 Player relationships 2-14 42,990 (39,812) — 3,178 Non-compete agreements 2-5 9,840 (8,349) — 1,491 Gaming license (1) 15 2,100 (1,210) — 890 In-place lease value 4 1,170 (1,155) — 15 Leasehold interest 4 570 (570) — — Other 4-25 1,814 (1,356) — 458 139,589 (88,331) — 51,258 Balance, December 31, 2021 $ 193,279 $ (88,331) $ (6,890) $ 98,058 (1) Relates to Rocky Gap. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Interest $ 13,173 $ 6,168 Gaming liabilities 11,232 12,311 Accrued taxes, other than income taxes 9,609 9,035 Other accrued liabilities 8,706 5,549 Deposits 4,492 2,284 Total current accrued liabilities $ 47,212 $ 35,347 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net, consisted of the following: (In thousands) March 31, 2022 December 31, 2021 Term Loan $ 625,000 $ 650,000 2026 Unsecured Notes 375,000 375,000 Finance lease liabilities 2,887 3,005 Notes payable 168 602 Total long-term debt and finance leases 1,003,055 1,028,607 Unamortized discount (10,778) (11,689) Unamortized debt issuance costs (5,080) (5,392) Total long-term debt and finance leases after debt issuance costs and discount 987,197 1,011,526 Current portion of long-term debt and finance leases (655) (1,057) Long-term debt, net and finance leases $ 986,542 $ 1,010,469 |
Shareholders_ Equity and Stoc_2
Shareholders’ Equity and Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity: Stock Options Shares Weighted-Average Exercise Price Outstanding at January 1, 2022 2,141,494 $ 11.31 Granted — $ — Exercised (36,000) $ 9.80 Cancelled — $ — Expired — $ — Outstanding at March 31, 2022 2,105,494 $ 11.33 Exercisable at March 31, 2022 2,105,494 $ 11.33 |
Summary of Activity Related To Time-based Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) | The following table summarizes the Company’s activity related to time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”): RSUs PSUs Shares Weighted-Average Grant Date Fair Value Shares (1) Weighted-Average Grant Date Fair Value Outstanding at January 1, 2022 815,420 $ 18.17 705,577 (2) $ 13.84 Granted 97,447 $ 53.51 83,579 $ 53.51 Performance adjustment — $ — 534,383 (3) $ — Vested (338,644) $ 15.79 (247,380) (4) $ 12.51 Cancelled (18,693) $ 14.95 — $ — Outstanding at March 31, 2022 555,530 $ 25.93 1,076,159 $ 19.79 (1) The number of shares for the PSUs listed as granted represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest for those PSUs will vary depending on whether or not the Company meets or exceeds the applicable threshold, target, or maximum performance goals for the PSUs, with 200% of the “target” number of PSUs eligible to vest at “maximum” performance levels. (2) Includes 171,194 shares of PSUs granted in March 2019 that were certified below target during the three months ended March 31, 2021 and vested during the three months ended March 31, 2022. Also includes PSUs granted in March 2020 and March 2021 at “target.” (3) The Company’s financial results for the applicable performance goals were certified during the three months ended March 31, 2022 and 200% of the target PSUs granted in March 2020 and March 2021 were deemed “earned” and will be eligible to vest on March 14, 2023 and 2024, respectively. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement of Long-term Debt | The following table summarizes the fair value measurement of the Company’s long-term debt: March 31, 2022 (In thousands) Carrying Amount Fair Value Fair Value Hierarchy Term Loan $ 625,000 $ 621,094 Level 2 2026 Unsecured Notes 375,000 390,450 Level 2 Finance lease liabilities 2,887 2,887 Level 3 Notes payable 168 168 Level 3 Total debt $ 1,003,055 $ 1,014,599 December 31, 2021 (In thousands) Carrying Amount Fair Value Fair Value Hierarchy Term Loan $ 650,000 $ 650,813 Level 2 2026 Unsecured Notes 375,000 390,938 Level 2 Finance lease liabilities 3,005 3,005 Level 3 Notes payable 602 602 Level 3 Total debt $ 1,028,607 $ 1,045,358 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended March 31, (In thousands) 2022 2021 Revenues Nevada Casino Resorts Gaming $ 44,230 $ 38,826 Food and beverage 21,384 14,965 Rooms 22,029 15,628 Other 8,792 5,386 Nevada Casino Resorts revenues $ 96,435 $ 74,805 Nevada Locals Casinos Gaming $ 29,381 $ 29,536 Food and beverage 6,179 5,513 Rooms 2,244 1,478 Other 2,085 2,018 Nevada Locals Casinos revenues $ 39,889 $ 38,545 Maryland Casino Resort Gaming $ 14,457 $ 13,032 Food and beverage 1,648 1,442 Rooms 1,473 1,292 Other 314 334 Maryland Casino Resort revenues $ 17,892 $ 16,100 Distributed Gaming Gaming $ 102,719 $ 95,606 Food and beverage 13,245 11,884 Other 3,258 2,419 Distributed gaming revenues $ 119,222 $ 109,909 Corporate and Other 206 337 Total revenues $ 273,644 $ 239,696 Three Months Ended March 31, (In thousands) 2022 2021 Adjusted EBITDA Nevada Casino Resorts $ 33,575 $ 26,655 Nevada Locals Casinos 20,038 19,552 Maryland Casino Resort 5,572 4,873 Distributed Gaming 22,053 20,880 Corporate and Other (13,913) (12,462) Total Adjusted EBITDA 67,325 59,498 Adjustments Depreciation and amortization (26,276) (27,186) Change in non-cash lease expense (181) (439) Share-based compensation (3,672) (3,005) Gain (loss) on disposal of assets 41 (209) Loss on debt extinguishment and modification (181) — Preopening and related expenses (1) (55) (120) Other, net (4,296) (2,168) Interest expense, net (15,118) (16,048) Income tax benefit 18,479 297 Net Income $ 36,066 $ 10,620 (1) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of tavern and casino locations. The Company’s assets by segment consisted of the following amounts: (In thousands) Nevada Casino Resorts Nevada Locals Casinos Maryland Casino Resort Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2022 $ 808,374 $ 166,486 $ 41,600 $ 403,218 $ 184,461 $ 1,604,139 Balance at December 31, 2021 $ 811,016 $ 165,362 $ 41,403 $ 411,342 $ 186,441 $ 1,615,564 |
Nature of Business and Basis _4
Nature of Business and Basis of Presentation - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022numberOfPropertynumberOfSegment | Mar. 31, 2021USD ($) | |
Nature Of Business And Basis Of Presentation [Line Items] | ||
Number of reportable segments | numberOfSegment | 4 | |
COVID-19 | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Reduction in rent expense | $ | $ 1.7 | |
Nevada and Maryland | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Number of resort casino properties | numberOfProperty | 10 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 125,240 | $ 125,240 |
Building and improvements | 940,370 | 937,759 |
Furniture and equipment | 251,101 | 246,323 |
Construction in process | 19,640 | 16,347 |
Property and equipment | 1,336,351 | 1,325,669 |
Accumulated depreciation | (445,726) | (421,449) |
Property and equipment, net | $ 890,625 | $ 904,220 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 24,400,000 | $ 25,000,000 |
Impairment on long-lived assets | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment on goodwill and intangible assets | $ 0 | $ 0 |
Amortization of intangible assets | $ 1,900,000 | $ 2,200,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Goodwill Activity by Reportable Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 158,396 | $ 158,396 |
Nevada Casino Resorts | ||
Goodwill [Line Items] | ||
Goodwill | 22,105 | 22,105 |
Nevada Locals Casinos | ||
Goodwill [Line Items] | ||
Goodwill | 38,187 | 38,187 |
Maryland Casino Resort | ||
Goodwill [Line Items] | ||
Goodwill | 0 | 0 |
Distributed Gaming | ||
Goodwill [Line Items] | ||
Goodwill | $ 98,104 | $ 98,104 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Indefinite-lived intangible assets | ||
Gross Carrying Value | $ 53,690 | $ 53,690 |
Cumulative Impairment | (6,890) | (6,890) |
Intangible Assets, Net | 46,800 | 46,800 |
Amortizing intangible assets | ||
Gross Carrying Value | 139,589 | 139,589 |
Cumulative Amortization | (90,220) | (88,331) |
Intangible Assets, Net | 49,369 | 51,258 |
Gross Carrying Value | 193,279 | 193,279 |
Intangible Assets, Net | 96,169 | 98,058 |
Customer relationships | ||
Amortizing intangible assets | ||
Gross Carrying Value | 81,105 | 81,105 |
Cumulative Amortization | (37,346) | (35,879) |
Intangible Assets, Net | $ 43,759 | $ 45,226 |
Customer relationships | Minimum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 4 years | 4 years |
Customer relationships | Maximum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 16 years | 16 years |
Player relationships | ||
Amortizing intangible assets | ||
Gross Carrying Value | $ 42,990 | $ 42,990 |
Cumulative Amortization | (39,973) | (39,812) |
Intangible Assets, Net | $ 3,017 | $ 3,178 |
Player relationships | Minimum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 2 years | 2 years |
Player relationships | Maximum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 14 years | 14 years |
Non-compete agreements | ||
Amortizing intangible assets | ||
Gross Carrying Value | $ 9,840 | $ 9,840 |
Cumulative Amortization | (8,543) | (8,349) |
Intangible Assets, Net | $ 1,297 | $ 1,491 |
Non-compete agreements | Minimum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 2 years | 2 years |
Non-compete agreements | Maximum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 5 years | 5 years |
Gaming license | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 15 years | 15 years |
Gross Carrying Value | $ 2,100 | $ 2,100 |
Cumulative Amortization | (1,245) | (1,210) |
Intangible Assets, Net | $ 855 | $ 890 |
In-place lease value | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 4 years | 4 years |
Gross Carrying Value | $ 1,170 | $ 1,170 |
Cumulative Amortization | (1,170) | (1,155) |
Intangible Assets, Net | $ 0 | $ 15 |
Leasehold interest | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 4 years | 4 years |
Gross Carrying Value | $ 570 | $ 570 |
Cumulative Amortization | (570) | (570) |
Intangible Assets, Net | 0 | 0 |
Other | ||
Amortizing intangible assets | ||
Gross Carrying Value | 1,814 | 1,814 |
Cumulative Amortization | (1,373) | (1,356) |
Intangible Assets, Net | $ 441 | $ 458 |
Other | Minimum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 4 years | 4 years |
Other | Maximum | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Useful Life (Years) | 25 years | 25 years |
Trade names | ||
Indefinite-lived intangible assets | ||
Gross Carrying Value | $ 53,690 | $ 53,690 |
Cumulative Impairment | (6,890) | (6,890) |
Intangible Assets, Net | $ 46,800 | $ 46,800 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Interest | $ 13,173 | $ 6,168 |
Gaming liabilities | 11,232 | 12,311 |
Accrued taxes, other than income taxes | 9,609 | 9,035 |
Other accrued liabilities | 8,706 | 5,549 |
Deposits | 4,492 | 2,284 |
Total current accrued liabilities | $ 47,212 | $ 35,347 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Term Loan | $ 625,000 | $ 650,000 |
2026 Unsecured Notes | 375,000 | 375,000 |
Finance lease liabilities | 2,887 | 3,005 |
Notes payable | 168 | 602 |
Total long-term debt and finance leases | 1,003,055 | 1,028,607 |
Unamortized discount | (10,778) | (11,689) |
Unamortized debt issuance costs | (5,080) | (5,392) |
Total long-term debt and finance leases after debt issuance costs and discount | 987,197 | 1,011,526 |
Current portion of long-term debt and finance leases | (655) | (1,057) |
Long-term debt, net and non-current finance leases | $ 986,542 | $ 1,010,469 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Oct. 12, 2021 | Apr. 15, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||
Term loan | $ 625,000,000 | $ 650,000,000 | ||||||
Letters of credit outstanding | 0 | |||||||
Repayments of lines of credit | 25,000,000 | $ 0 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility | 0 | |||||||
Line of credit facility, maximum amount outstanding during period | $ 240,000,000 | |||||||
Senior Secured First Lien Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 900,000,000 | ||||||
Senior Secured First Lien Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 240,000,000 | $ 200,000,000 | $ 100,000,000 | 100,000,000 | ||||
Debt modification costs | $ 700,000 | |||||||
Senior Secured First Lien Credit Facility | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||
Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, weighted average interest rate | 3.75% | |||||||
Credit Facility | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan | $ 625,000,000 | |||||||
Credit Facility | Term Loan | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of lines of credit | 25,000,000 | |||||||
Accelerated amortization of debt issuance costs | $ 200,000 | |||||||
Senior Unsecured Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 375,000,000 | |||||||
Debt instrument interest stated percentage | 7.625% |
Shareholders_ Equity and Stoc_3
Shareholders’ Equity and Stock Incentive Plans - Additional Information (Details) - USD ($) | Jan. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | May 03, 2022 | Aug. 03, 2021 | Mar. 12, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock repurchase, authorized | $ 50,000,000 | $ 25,000,000 | ||||||
Shares repurchased (in shares) | 268,791 | 226,485 | ||||||
Common stock price per share (USD per share) | $ 56.54 | $ 46.87 | $ 56.54 | |||||
Shares repurchased, value | $ 15,196,000 | |||||||
Stock repurchase, remaining authorized repurchase amount | $ 24,200,000 | $ 24,200,000 | ||||||
Common stock available for grants of awards (in shares) | 3,152,416 | 3,152,416 | ||||||
Number of shares available for grant annual increase (in shares) | 1,153,210 | |||||||
Accumulated Deficit | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares repurchased, value | $ 15,200,000 | $ 10,600,000 | $ 15,194,000 | |||||
Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense, net | 0 | $ 200,000 | ||||||
Stock options, unrecognized share-based compensation expense | 0 | 0 | 0 | |||||
PSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense, net | $ 1,500,000 | 1,200,000 | ||||||
Percentage of target number of PSU's eligible to vest at "maximum" performance level | 200.00% | |||||||
Granted (in shares) | 83,579 | |||||||
Unamortized share-based compensation expense | 11,300,000 | $ 11,300,000 | $ 6,200,000 | |||||
Share-based compensation expense not yet recognized, weighted-average period for recognition | 2 years 2 months 12 days | 2 years 4 months 24 days | ||||||
PSUs | March 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 171,194 | |||||||
PSUs | March 2020 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 76,186 | |||||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense, net | $ 1,600,000 | $ 1,300,000 | ||||||
Granted (in shares) | 97,447 | |||||||
Unamortized share-based compensation expense | $ 12,500,000 | $ 12,500,000 | $ 11,300,000 | |||||
Share-based compensation expense not yet recognized, weighted-average period for recognition | 2 years 2 months 12 days | 2 years 4 months 24 days | ||||||
Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock repurchase, authorized | $ 50,000,000 |
Shareholders_ Equity and Stoc_4
Shareholders’ Equity and Stock Incentive Plans - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Outstanding | |
Outstanding, beginning of year (in shares) | shares | 2,141,494 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (36,000) |
Cancelled (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding, end of year (in shares) | shares | 2,105,494 |
Exercisable (in shares) | shares | 2,105,494 |
Weighted-Average Exercise Price | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 11.31 |
Granted (USD per share) | $ / shares | 0 |
Exercised (USD per share) | $ / shares | 9.80 |
Cancelled (USD per share) | $ / shares | 0 |
Expired (USD per share) | $ / shares | 0 |
Outstanding, end of year (USD per share) | $ / shares | 11.33 |
Exercisable (USD per share) | $ / shares | $ 11.33 |
Shareholders_ Equity and Stoc_5
Shareholders’ Equity and Stock Incentive Plans - Summary of Activity Related To Time-based Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
RSUs | |
Outstanding | |
Outstanding, beginning of year (in shares) | shares | 815,420 |
Granted (in shares) | shares | 97,447 |
Performance adjustment (in shares) | shares | 0 |
Vested (in shares) | shares | (338,644) |
Cancelled (in shares) | shares | (18,693) |
Outstanding, end of year (in shares) | shares | 555,530 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 18.17 |
Granted (USD per share) | $ / shares | 53.51 |
Performance adjustment (USD per share) | $ / shares | 0 |
Vested (USD per share) | $ / shares | 15.79 |
Cancelled (USD per share) | $ / shares | 14.95 |
Outstanding, end of year (USD per share) | $ / shares | $ 25.93 |
PSUs | |
Outstanding | |
Outstanding, beginning of year (in shares) | shares | 705,577 |
Granted (in shares) | shares | 83,579 |
Performance adjustment (in shares) | shares | 534,383 |
Vested (in shares) | shares | (247,380) |
Cancelled (in shares) | shares | 0 |
Outstanding, end of year (in shares) | shares | 1,076,159 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 13.84 |
Granted (USD per share) | $ / shares | 53.51 |
Performance adjustment (USD per share) | $ / shares | 0 |
Vested (USD per share) | $ / shares | 12.51 |
Cancelled (USD per share) | $ / shares | 0 |
Outstanding, end of year (USD per share) | $ / shares | $ 19.79 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | (105.10%) | (2.90%) |
Income tax benefit | $ 18,479 | $ 297 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Schedule of Fair Value Measurement of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Term Loan | $ 625,000 | $ 650,000 |
2026 Unsecured Notes | 375,000 | 375,000 |
Finance lease liabilities | 2,887 | 3,005 |
Notes payable | 168 | 602 |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Total debt | 1,003,055 | 1,028,607 |
Carrying Amount | Level 2 | ||
Debt Instrument [Line Items] | ||
Term Loan | 625,000 | 650,000 |
2026 Unsecured Notes | 375,000 | 375,000 |
Carrying Amount | Level 3 | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 2,887 | 3,005 |
Notes payable | 168 | 602 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | 1,014,599 | 1,045,358 |
Fair Value | Level 2 | ||
Debt Instrument [Line Items] | ||
Term Loan | 621,094 | 650,813 |
2026 Unsecured Notes | 390,450 | 390,938 |
Fair Value | Level 3 | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 2,887 | 3,005 |
Notes payable | $ 168 | $ 602 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 26, 2021 | |
Commitments And Contingencies [Line Items] | ||||
Proceeds received from change in ownership | $ (4,296) | $ (2,168) | ||
William Hill U.S. HoldCo, Inc. | ||||
Commitments And Contingencies [Line Items] | ||||
Proceeds from change in ownership | $ 60,000 | |||
Proceeds received from change in ownership | $ 60,000 | |||
Caesars Entertainment, Inc.’s | William Hill’s Sale | United Kingdom | ||||
Commitments And Contingencies [Line Items] | ||||
Loss contingency accrual | $ 15,000 | |||
Gaming | ||||
Commitments And Contingencies [Line Items] | ||||
Cost of goods and services sold | 105,651 | 96,372 | ||
Participation and Revenue Share Agreements | Gaming | ||||
Commitments And Contingencies [Line Items] | ||||
Cost of goods and services sold | $ 52,800 | $ 54,100 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022numberOfLocationnumberOfOnsiteSlotnumberOfSegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | numberOfSegment | 4 |
Distributed Gaming | |
Segment Reporting Information [Line Items] | |
Number of non-casino locations | numberOfLocation | 1,100 |
Number of onsite slots | numberOfOnsiteSlot | 15 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 273,644 | $ 239,696 | |
Adjusted EBITDA | 67,325 | 59,498 | |
Depreciation and amortization | (26,276) | (27,186) | |
Change in non-cash lease expense | (181) | (439) | |
Share-based compensation | (3,672) | (3,005) | |
Gain (loss) on disposal of assets | 41 | (209) | |
Loss on debt extinguishment and modification | (181) | 0 | |
Preopening and related expenses | (55) | (120) | |
Other, net | (4,296) | (2,168) | |
Interest expense, net | (15,118) | (16,048) | |
Income tax benefit | 18,479 | 297 | |
Net income | 36,066 | 10,620 | |
Assets | 1,604,139 | $ 1,615,564 | |
Gaming | |||
Revenues | |||
Total revenues | 190,787 | 177,000 | |
Food and beverage | |||
Revenues | |||
Total revenues | 42,456 | 33,804 | |
Rooms | |||
Revenues | |||
Total revenues | 25,746 | 18,398 | |
Other | |||
Revenues | |||
Total revenues | 14,655 | 10,494 | |
Operating Segments | Nevada Casino Resorts | |||
Revenues | |||
Total revenues | 96,435 | 74,805 | |
Adjusted EBITDA | 33,575 | 26,655 | |
Assets | 808,374 | 811,016 | |
Operating Segments | Nevada Casino Resorts | Gaming | |||
Revenues | |||
Total revenues | 44,230 | 38,826 | |
Operating Segments | Nevada Casino Resorts | Food and beverage | |||
Revenues | |||
Total revenues | 21,384 | 14,965 | |
Operating Segments | Nevada Casino Resorts | Rooms | |||
Revenues | |||
Total revenues | 22,029 | 15,628 | |
Operating Segments | Nevada Casino Resorts | Other | |||
Revenues | |||
Total revenues | 8,792 | 5,386 | |
Operating Segments | Nevada Locals Casinos | |||
Revenues | |||
Total revenues | 39,889 | 38,545 | |
Adjusted EBITDA | 20,038 | 19,552 | |
Assets | 166,486 | 165,362 | |
Operating Segments | Nevada Locals Casinos | Gaming | |||
Revenues | |||
Total revenues | 29,381 | 29,536 | |
Operating Segments | Nevada Locals Casinos | Food and beverage | |||
Revenues | |||
Total revenues | 6,179 | 5,513 | |
Operating Segments | Nevada Locals Casinos | Rooms | |||
Revenues | |||
Total revenues | 2,244 | 1,478 | |
Operating Segments | Nevada Locals Casinos | Other | |||
Revenues | |||
Total revenues | 2,085 | 2,018 | |
Operating Segments | Maryland Casino Resort | |||
Revenues | |||
Total revenues | 17,892 | 16,100 | |
Adjusted EBITDA | 5,572 | 4,873 | |
Assets | 41,600 | 41,403 | |
Operating Segments | Maryland Casino Resort | Gaming | |||
Revenues | |||
Total revenues | 14,457 | 13,032 | |
Operating Segments | Maryland Casino Resort | Food and beverage | |||
Revenues | |||
Total revenues | 1,648 | 1,442 | |
Operating Segments | Maryland Casino Resort | Rooms | |||
Revenues | |||
Total revenues | 1,473 | 1,292 | |
Operating Segments | Maryland Casino Resort | Other | |||
Revenues | |||
Total revenues | 314 | 334 | |
Operating Segments | Distributed Gaming | |||
Revenues | |||
Total revenues | 119,222 | 109,909 | |
Adjusted EBITDA | 22,053 | 20,880 | |
Assets | 403,218 | 411,342 | |
Operating Segments | Distributed Gaming | Gaming | |||
Revenues | |||
Total revenues | 102,719 | 95,606 | |
Operating Segments | Distributed Gaming | Food and beverage | |||
Revenues | |||
Total revenues | 13,245 | 11,884 | |
Operating Segments | Distributed Gaming | Other | |||
Revenues | |||
Total revenues | 3,258 | 2,419 | |
Corporate and Other | |||
Revenues | |||
Total revenues | 206 | 337 | |
Adjusted EBITDA | (13,913) | $ (12,462) | |
Assets | $ 184,461 | $ 186,441 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Sartini Enterprises | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 0 | |||
Reimbursement expense paid | $ 200,000 | |||
Due to related parties | $ 100,000 | |||
Office Headquarters | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 0 | $ 0 | ||
Office Headquarters | Mr. Sartini | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 33.00% | |||
Related party transaction, amounts of transaction | 300,000 | |||
Office Headquarters | Mr. Sartini's Immediate Family Members | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 5.00% | |||
Office Headquarters | Stephen Arcana | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 3.00% | |||
Office Space Lease | Mr. Sartini | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 33.00% | |||
Related party transaction, amounts of transaction | $ 100,000 | $ 100,000 | ||
Office Space Lease | Mr. Sartini's Immediate Family Members | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 5.00% | |||
Office Space Lease | Mr. Arcana | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 3.00% |