Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 08, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GOLDEN ENTERTAINMENT, INC. | |
Entity Central Index Key | 1,071,255 | |
Trading Symbol | gden | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 22,251,472 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 45,170 | $ 46,898 |
Accounts receivable, net | 5,939 | 6,697 |
Income taxes receivable | 193 | 2,340 |
Prepaid expenses | 9,567 | 9,761 |
Inventories | 3,151 | 2,605 |
Other | 1,517 | 1,346 |
Total current assets | 65,537 | 69,647 |
Property and equipment, net | 140,643 | 137,581 |
Other assets | ||
Goodwill | 105,655 | 105,655 |
Customer relationships, net | 13,586 | 14,165 |
Other intangible assets, net | 26,931 | 27,435 |
Deferred income taxes | 1,678 | |
Other | 8,595 | 7,592 |
Total other assets | 212,666 | 211,850 |
Total assets | 418,846 | 419,078 |
Current liabilities | ||
Current portion of long-term debt | 15,055 | 15,752 |
Accounts payable | 8,985 | 11,739 |
Accrued taxes, other than income taxes | 2,744 | 3,024 |
Accrued payroll and related | 3,647 | 3,478 |
Other accrued expenses | 4,021 | 3,846 |
Total current liabilities | 34,452 | 37,839 |
Long-term debt, net | 163,724 | 167,690 |
Deferred income taxes | 38 | |
Other long-term obligations | 4,318 | 4,085 |
Total liabilities | 202,494 | 209,652 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity | ||
Common stock, $.01 par value; authorized 100,000 shares; 22,213 and 21,868 common shares issued and outstanding, respectively | 223 | 223 |
Additional paid-in capital | 291,741 | 290,157 |
Accumulated deficit | (75,612) | (80,954) |
Total shareholders' equity | 216,352 | 209,426 |
Total liabilities and shareholders' equity | 418,846 | 419,078 |
Customer Relationships [Member] | ||
Other assets | ||
Customer relationships, net | $ 69,807 | $ 71,168 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 22,251,000 | 22,232,000 |
Common stock, shares outstanding (in shares) | 22,251,000 | 22,232,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Gaming | $ 91,522 | $ 78,472 |
Food and beverage | 15,650 | 13,341 |
Rooms | 1,578 | 1,555 |
Other operating | 3,385 | 2,212 |
Gross revenues | 112,135 | 95,580 |
Less: Promotional allowances | (5,489) | (4,546) |
Net revenues | 106,646 | 91,034 |
Expenses | ||
Gaming | 62,887 | 55,491 |
Food and beverage | 9,606 | 8,127 |
Rooms | 309 | 260 |
Other operating | 3,200 | 779 |
Selling, general and administrative | 18,502 | 16,234 |
Merger expenses | 41 | |
Preopening expenses | 272 | 573 |
Depreciation and amortization | 6,552 | 5,792 |
Total expenses | 101,328 | 87,297 |
Income from operations | 5,318 | 3,737 |
Non-operating income (expense) | ||
Interest expense, net | (1,683) | (1,457) |
Other, net | 18 | |
Total non-operating expense, net | (1,683) | (1,439) |
Income before income tax benefit (provision) | 3,635 | 2,298 |
Income tax benefit (provision) | 1,707 | (59) |
Net income | $ 5,342 | $ 2,239 |
Weighted-average common shares outstanding | ||
Basic | 22,238 | 21,960 |
Dilutive impact of stock options and restricted stock units | 529 | 296 |
Diluted | 22,767 | 22,256 |
Net income per share | ||
Basic | $ 0.24 | $ 0.10 |
Diluted | $ 0.23 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income | $ 5,342 | $ 2,239 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,552 | 5,792 |
Amortization of debt issuance costs | 191 | 153 |
Share-based compensation | 1,427 | 405 |
Deferred income taxes | (1,716) | 59 |
Other operating activities | (18) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 758 | (1,437) |
Income taxes receivable | 2,146 | |
Prepaid expenses | 181 | 642 |
Inventories and other current assets | (720) | (31) |
Other assets | (1,003) | (23) |
Accounts payable and other accrued expenses | (2,410) | 2,645 |
Accrued taxes, other than income taxes | (280) | 13 |
Other liabilities | 233 | 348 |
Net cash provided by operating activities | 10,701 | 10,787 |
Cash flows from investing activities | ||
Purchase of property and equipment | (5,680) | (8,506) |
Acquisition of businesses, net of cash acquired | (15,930) | |
Issuance of notes receivable | (107) | |
Other investing activities | (75) | (2,059) |
Net cash used in investing activities | (5,755) | (26,602) |
Cash flows from financing activities | ||
Repayments of Revolving Credit Facility | (3,000) | (40,000) |
Borrowings on Revolving Credit Facility | 15,000 | |
Repayments of Term Loans | (3,000) | (1,500) |
Proceeds from Term Loans | 40,000 | |
Repayments of notes payable | (696) | (882) |
Proceeds from issuance of common stock | 158 | 890 |
Payments for debt issuance costs | (416) | |
Principal payments under capital leases | (136) | |
Net cash provided by (used in) financing activities | (6,674) | 13,092 |
Cash and cash equivalents | ||
Net decrease for the period | (1,728) | (2,723) |
Balance, beginning of period | 46,898 | 69,177 |
Balance, end of period | 45,170 | 66,454 |
Supplemental cash flow disclosures | ||
Interest | 1,483 | 1,305 |
Non-cash investing and financing activities | ||
Notes payable issued for property and equipment | 345 | |
Assets acquired under capital lease obligations | $ 1,978 | |
Common stock issued in connection with acquisition | $ 500 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Note 1 – Nature of Business and Basis of Presentation Overview Golden Entertainment, Inc. and its wholly owned subsidiaries (collectively, the “Company”) is a diversified group of gaming companies that focus on distributed gaming (including tavern gaming) and casino and resort operations. The Company’s common stock is traded on the NASDAQ Global Market, and the Company’s ticker symbol is “GDEN.” The Company conducts its business through two reportable operating segments: Distributed Gaming and Casinos. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. The Company’s Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland (“Rocky Gap”) and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino (“Pahrump Nugget”), Gold Town Casino and Lakeside Casino & RV Park. 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, please refer to the audited consolidated financial statements of the Company for the year ended December 31, 2016 and the notes thereto included in the Company’s Annual Report on Form 10-K previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include 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. 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. Certain minor reclassifications have been made to the prior year period amounts to conform to the current presentation. Net Income Per Share For all periods, 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 the anti-diluted effect. New 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 on the Company's consolidated financial statements of the future adoption of new accounting standards that are not yet effective, management currently believes that the following new standards may have a material impact on the Company's financial statements and disclosures: In February 2016, the FASB issued ASU 2016-02, Leases, which replaces the existing guidance. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. ASU 2016-02 is effective for annual periods beginning after December 15, 2018 and interim periods therein, with early application permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition model, ASU 2014-09, Revenue from Contracts with Customers The customer loyalty programs affect revenues from our four core business operations: gaming, food and beverage, rooms and other operations. Currently, the Company estimates the cost of fulfilling the redemption of player rewards, after consideration of breakage, based upon the cost of historical redemptions. Upon adoption of the new guidance, player rewards will no longer be recorded at cost, and a deferred revenue model will be used to account for the classification and timing of revenue recognized as well as the classification of related expenses when player rewards are redeemed. Additionally, the Company expects to see a significant decrease in food and beverage and room revenues because the practice of including the retail value of goods and services provided to customers without charge in gross revenue with a corresponding offset in promotional allowances to arrive at net revenue will be discontinued. No other recently issued accounting standards that are not yet effective have been identified that management believes are likely to have a material impact on the Company's financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions On January 29, 2016, the Company completed the acquisition of approximately 1,100 gaming devices, as well as certain other non-gaming assets and the right to operate within certain locations, from C. Lohman Games, Inc., Rocky Mountain Gaming, Inc. and Brandy’s Shoreliner Restaurant, Inc. (the “Initial Montana Acquisition”). The total consideration for the transaction was $20.1 million, including the issuance of $0.5 million of the Company’s common stock (comprising 50,252 shares at fair value at issuance of $9.95 per share). In connection with the Initial Montana Acquisition, the Company is required to pay the sellers contingent consideration of up to a total of $2.0 million in cash paid in four quarterly payments beginning in September 2017, subject to certain potential adjustments. See Note 9, Financial Instruments and Fair Value Measurements On April 22, 2016, the Company completed the acquisition of approximately 1,800 gaming devices, as well as amusement devices and certain other non-gaming assets and the right to operate within certain locations, from Amusement Services, LLC (the “Second Montana Acquisition”, and, together with the Initial Montana Acquisitions, the “Montana Acquisitions”). The total consideration for the transaction was $25.7 million. Acquisition Method of Accounting The Company followed the acquisition method of accounting for the Montana Acquisitions per ASC 805 guidance. In accordance with ASC 805, the Company allocated the purchase price for each Montana Acquisition to the tangible and intangible assets acquired and liabilities assumed based on their fair values, which were determined primarily by management with assistance from third-party appraisals. The excess of the purchase prices over those fair values was recorded as goodwill. The allocation of the $20.1 million purchase price of the Initial Montana Acquisition was finalized in the first quarter of 2017, and as of the date of the acquisition, was comprised of the following: (In thousands) Final Purchase Price Allocation Cash and cash equivalents $ 1,700 Property and equivalents 2,350 Intangible assets 14,400 Goodwill 1,680 Total acquired assets $ 20,130 The intangible assets acquired in the Initial Montana Acquisition and the related weighted average useful lives of definite-lived intangible assets were as follows: (In thousands) Useful As Recorded, at Fair Value Customer relationships 15 years $ 9,800 Non-competition agreements 5 years 3,900 Trade name 4 years 500 Other 15 years 200 Total intangible assets acquired $ 14,400 The preliminary allocation of the $25.7 million purchase price of the Second Montana Acquisition as of the date of acquisition was comprised of the following: (In thousands) Preliminary Purchase Price Allocation Cash and other current assets $ 404 Property and equipment 7,839 Intangible assets 11,400 Goodwill 6,013 Total acquired assets $ 25,656 The preliminary valuation of intangible assets acquired in the Second Montana Acquisition and the related weighted average useful lives of definite –lived intangible assets were as follows: (In thousands) Useful Preliminary Assessment of Fair Value Customer relationships 15 years $ 9,100 Non-competition agreements 5 years 1,800 Trade name 4 years 200 Other 15 years 300 Total intangible assets acquired $ 11,400 The goodwill recognized in the Montana Acquisitions was primarily attributable to potential expansion and future development of, and anticipated synergies from, the acquired businesses and is expected to be deductible for income tax purposes. The Company's estimation of the fair value of the assets acquired in the Montana Acquisitions as of the respective dates of the acquisitions was determined based on certain valuations and analyses. For the Second Montana Acquisition, those valuations and analyses have yet to be finalized, and accordingly, the assets acquired in that transaction are subject to adjustment once such analyses are completed. The Company may record adjustments to the carrying value of assets acquired in the Second Montana Acquisition with a corresponding offset to goodwill during the applicable measurement period, which can be up to one year from the date of the consummation of the acquisition. The Company reports the results of operations from each of the Montana Acquisitions, subsequent to their respective closing date, within its Distributed Gaming segment. For the three months ended March 31, 2017 and 2016, net revenues from the Montana Acquisitions totaled $15.2 million and $4.0 million, respectively. For the three months ended March 31, 2017 and 2016, transaction-related costs for the Montana Acquisitions totaled $0.1 million and $0.2 million, respectively, and were included in preopening expenses. The Company may incur additional transaction-related costs related to the Montana Acquisitions in future periods. Pro forma information is not being presented as there is no practicable method to calculate pro forma earnings given that the Montana Acquisitions were asset purchases that represented only a component of the businesses of the sellers. As a result, historical financial information obtained would have required significant estimates. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 3 – Property and Equipment, Net The following table summarizes the components of property and equipment, net: (In thousands) March 31, 2017 December 31, 2016 Land $ 12,470 $ 12,470 Building and site improvements 83,927 77,515 Furniture and equipment 75,779 75,740 Construction in process 6,456 5,246 Property and equipment 178,632 170,971 Less: Accumulated depreciation (37,989 ) (33,390 ) Property and equipment, net $ 140,643 $ 137,581 Depreciation expense for the three months ended March 31, 2017 and 2016, was $4.6 million and $4.3 million, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Note 4 – Goodwill and Intangible Assets, Net Goodwill consisted of the following: (In thousands) March 31, 2017 December 31, 2016 Goodwill Distributed Gaming $ 97,859 $ 97,859 Casinos 7,796 7,796 Total Goodwill $ 105,655 $ 105,655 Goodwill was acquired in connection with the 2015 acquisition of Sartini Gaming, Inc. through a merger transaction (the “Merger”), as well as the Montana Acquisitions. The Company may continue to record adjustments to the carrying value of assets acquired with a corresponding offset to goodwill during the measurement period related to the Second Montana Acquisition, which can be up to one year from the date of the consummation of the acquisition. See Note 2, Acquisitions Intangible assets, net, consisted of the following: March 31, 2017 Weighted Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 960 $ — $ 960 Trade names Indefinite 12,200 — 12,200 Other Indefinite 185 — 185 13,345 — 13,345 Finite-lived intangible assets Player relationships 10.2 years 7,300 (1,071 ) 6,229 Gaming license 11.1 years 2,100 (542 ) 1,558 Non-compete agreements 3.7 years 6,000 (1,490 ) 4,510 Other intangible assets 9.3 years 1,648 (359 ) 1,289 17,048 (3,462 ) 13,586 Total intangible assets, other than customer relationships $ 30,393 $ (3,462 ) $ 26,931 Customer relationships 13.0 years $ 78,100 $ (8,293 ) $ 69,807 December 31, 2016 Weighted Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 960 $ — $ 960 Trade names Indefinite 12,200 — 12,200 Other Indefinite 110 — 110 13,270 — 13,270 Finite-lived intangible assets Player relationships 10.4 years 7,300 (910 ) 6,390 Gaming license 11.4 years 2,100 (508 ) 1,592 Non-compete agreements 4.0 years 6,000 (1,168 ) 4,832 Other intangible assets 9.5 years 1,648 (297 ) 1,351 17,048 (2,883 ) 14,165 Total intangible assets, other than customer relationships $ 30,318 $ (2,883 ) $ 27,435 Customer relationships 13.2 years $ 78,100 $ (6,932 ) $ 71,168 Total amortization expense related to intangible assets was $2.0 million and $1.4 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, estimated future amortization expense was as follows: Remainder of (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Estimated amortization expense $ 5,758 $ 7,610 $ 7,610 $ 7,463 $ 6,481 $ 6,294 $ 42,177 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 – Long-Term Debt Long-term debt, net was comprised of the following: (In thousands) March 31, 2017 December 31, 2016 Term Loans $ 147,000 $ 150,000 Revolving Credit Facility 27,000 30,000 Capital lease obligations 3,812 1,970 Notes payable 3,082 3,777 Total long-term debt 180,894 185,747 Less: Unamortized debt issuance costs (2,115 ) (2,305 ) 178,779 183,442 Less: Current portion, net of unamortized debt issuance costs (15,055 ) (15,752 ) Long-term debt, net $ 163,724 $ 167,690 Credit Agreement As of March 31, 2017, the facilities under the Company’s Credit Agreement with Capital One, National Association (as administrative agent) and the lenders named therein (the “Credit Agreement”) consisted of $160.0 million in senior secured term loans (“Term Loans”) and a $50.0 million Revolving Credit Facility. The facilities mature on July 31, 2020. Borrowings under the Credit Agreement bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, the Eurodollar rate for a one-month interest period plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) the Eurodollar rate for the applicable interest period, plus in each case, an applicable margin based on the Company’s leverage ratio. For the three months ended March 31, 2017, the weighted-average effective interest rate on the Company’s outstanding borrowings under the Credit Agreement was approximately 3.3%. The Company was in compliance with its financial covenants under the Credit Agreement as of March 31, 2017. |
Promotional Allowances
Promotional Allowances | 3 Months Ended |
Mar. 31, 2017 | |
Promotional Allowances [Abstract] | |
Promotional Allowances | Note 6 – Promotional Allowances The retail value of food and beverages, rooms and other services furnished to customers without charge, including coupons for discounts when redeemed, is included in gross revenues and then deducted as promotional allowances. The estimated retail value of the promotional allowances was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Food and beverage $ 4,835 $ 4,018 Rooms 533 455 Other 121 73 Total promotional allowances $ 5,489 $ 4,546 The estimated cost of providing these promotional allowances, which is primarily included in gaming expenses, was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Food and beverage $ 3,358 $ 3,014 Rooms 164 191 Other 83 81 Total estimated cost of promotional allowances $ 3,605 $ 3,286 |
Stock Incentive Plans and Share
Stock Incentive Plans and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 7 – Stock Incentive Plans and Share-Based Compensation Overview On August 27, 2015, the Board of Directors of the Company approved the Golden Entertainment, Inc. 2015 Incentive Award Plan (the “2015 Plan”), which was approved by the Company’s shareholders at the Company’s 2016 annual meeting. The 2015 Plan authorizes the issuance of stock options, restricted stock, restricted stock units (“RSUs”), dividend equivalents, stock payment awards, stock appreciation rights, performance bonus awards and other incentive awards. The 2015 Plan authorizes the grant of awards to employees, non-employee directors and consultants of the Company and its subsidiaries. Options generally have a ten-year term. Except as provided in any employment agreement between the Company and the employee, if an employee is terminated (voluntarily or involuntarily), any unvested options as of the date of termination will be forfeited. The maximum number of shares of the Company’s common stock for which grants may be made under the 2015 Plan is 2.25 million shares, plus an annual increase on each January 1 during the ten-year term of the 2015 Plan equal to the lesser of 1.8 million shares, 4% of the total shares of the Company’s common stock outstanding (on an as-converted basis) and such smaller amount as may be determined by the Board in its sole discretion. In addition, the maximum aggregate number of shares of common stock that may be subject to awards granted to any one participant during a calendar year is 2.0 million shares. The annual increase on January 1, 2017 was 889,259 shares. The 2015 Plan provides that no stock option or stock appreciation right (even if vested) may be exercised prior to the earlier of August 1, 2018 or immediately prior to the consummation of a change in control of the Company that would result in an “ownership change” as defined in Section 382 of the Internal Revenue Code of 1986, as amended. There were 3,539,358 stock options outstanding under the 2015 Plan as of March 31, 2017, of which 720,021 had vested. As of March 31, 2017, a total of 333,314 shares of the Company’s common stock remained available for grants of awards under the 2015 Plan. In June 2007, the Company’s shareholders approved the 2007 Lakes Stock Option and Compensation Plan (the “2007 Plan”), which is authorized to grant a total of 1.25 million shares of the Company’s common stock. Vested options are exercisable for ten years from the date of grant; however, if the employee is terminated (voluntarily or involuntarily), any unvested options as of the date of termination will be forfeited. There were 673,675 stock options outstanding under the 2007 Plan as of March 31, 2017, 391,040 of which had vested. As of March 31, 2017, no shares of the Company’s common stock remained available for grants of awards under the 2007 Plan. Stock Options The Company uses the Black-Scholes option pricing model to estimate the fair value and compensation cost associated with employee incentive stock options, which requires considerable judgment, including estimating stock price volatility, expected option life and forfeiture rates. The Company develops estimates based on historical data and market information, which can change significantly over time. There were 847,000 stock options granted in the three months ended March 31, 2017, and 160,000 stock options granted in the three months ended March 31, 2016, with weighted-average grant date fair values of $5.89 and $3.94 per share, respectively. Share-based compensation expense related to stock options was $1.0 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively. The following table summarizes the Company’s stock option activity during the three months ended March 31, 2017 and 2016: Number of Common Shares Weighted- Options Available Average Outstanding Exercisable for Grant Exercise Price 2017 Balance at December 31, 2016 3,402,481 411,029 274,596 $ 9.02 Authorized — 889,259 — Granted 847,000 (847,000 ) 13.36 Exercised (19,989 ) — 7.70 Cancelled (16,459 ) 16,459 10.48 Balance at March 31, 2017 4,213,033 391,040 333,314 $ 9.90 2016 Balance at December 31, 2015 2,419,529 724,529 837,635 $ 8.16 Authorized — 874,709 — Granted 160,000 (160,000 ) 10.53 Exercised (159,626 ) — 10.24 Balance at March 31, 2016 2,419,903 564,903 1,552,344 $ 8.49 As of March 31, 2017, the outstanding stock options had a weighted-average remaining contractual life of 8.1 years, weighted-average exercise price of $9.90 per share and an aggregate intrinsic value of $14.2 million. As of March 31, 2017, the outstanding exercisable stock options had a weighted-average remaining contractual life of 1.6 years, weighted-average exercise price of $4.34 per share and an aggregate intrinsic value of $3.5 million. There were 19,989 and 159,626 options exercised during the three months ended March 31, 2017 and 2016, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2017 and 2016 was $0.1 million and $0.7 million, respectively. The Company’s unrecognized share-based compensation expense related to stock options was approximately $14.5 million as of March 31, 2017, which is expected to be recognized over a weighted-average period of 3.3 years. The Company issues new shares of common stock upon the exercise of stock options. Restricted Stock Units There were 141,296 RSUs outstanding under the 2015 Plan as of March 31, 2017, none of which had vested. Share-based compensation expense related to RSUs was $0.4 million for the three months ended March 31, 2017. There was no RSU activity during the three months ended March 31, 2016. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The Company’s effective tax rate was -46.4% and 2.5% for the three months ended March 31, 2017 and 2016, respectively. Income tax benefit was $1.7 million for the three months ended March 31, 2017, which was attributed primarily to a partial release of valuation allowance. Income tax expense was less than $0.1 million for the three months ended March 31, 2016, which was attributed primarily to tax amortization of indefinite-lived intangibles. In connection with the Merger, on July 31, 2015, the Company entered into a NOL Preservation Agreement with The Blake L. Sartini and Delise F. Sartini Family Trust (the “Sartini Trust”), Lyle A. Berman (a director and shareholder of the Company), as well as certain other shareholders of the Company affiliated with Mr. Berman or that are trusts for which Neil Sell, a director of the Company, serves as trustee. The NOL Preservation Agreement is intended to help minimize the risk of an “ownership change,” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended, that would limit the Company’s ability to utilize its federal net operating loss carryforwards to offset future taxable income. Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. The Company's financial results include the reversal of a portion of the valuation allowance recorded against the deferred tax assets of the Company. This reversal resulted in the recognition of a $1.7 million income tax benefit for the three months ended March 31, 2017. The Company has performed a continuing evaluation of its deferred tax asset valuation allowance on a quarterly basis. The Company concluded that, effective December 31, 2016, 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 completion of six consecutive quarters of profitability, its demonstrated ability in such quarters to meet or exceed budgets, and its forecast of future profitability. The Company's income taxes receivable was $0.2 million as of March 31, 2017, and $2.3 million as of December 31, 2016. The decrease in income taxes receivable was primarily due to the collection of a $2.2 million tax refund which was released in connection with the settlement of an IRS audit related to 2012 taxable losses carried back to a prior year. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 9 – Financial Instruments and Fair Value Measurements Overview The authoritative accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These inputs create the following fair value hierarchy: • 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 in their entirety 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. Balances Measured at Fair Value For the Company’s cash and cash equivalents, accounts receivable and payable, short-term borrowings and accrued and other current liabilities, the carrying amounts approximate fair value because of the short duration of these financial instruments. As of March 31, 2017 and December 31, 2016, the fair value of the Company’s long-term debt approximated the carrying value based upon the Company’s expected borrowing rate for debt with similar remaining maturities and comparable risk. In connection with the Montana Acquisitions, the Company preliminarily recognized the acquired assets at fair value. For the Initial Montana Acquisition, these amounts were finalized as of March 31, 2017. All amounts are recognized as Level 3 measurements due to the subjective nature of the unobservable inputs used to determine the fair values. Additionally, in connection with the Initial Montana Acquisition, the Company is required to pay the sellers contingent consideration of up to a total of $2.0 million in cash paid in four quarterly payments beginning in September 2017, subject to certain potential adjustments based upon the availability of certain gaming machines and, if applicable, the performance of replacement games. The fair value of the Company’s contingent consideration recorded in connection with the Initial Montana Acquisition was estimated to be $2.0 million as of March 31, 2017 and is recorded in “Other accrued expenses” and “Other long-term obligations” on the Company’s consolidated balance sheet. Changes to the estimated fair value of the contingent consideration will be recognized in earnings of the Company. See Note 2, Acquisitions Balances Measured at Fair Value on a Non-recurring Basis The identified intangible assets acquired in connection with the Second Montana Acquisition and the Initial Montana Acquisition have been valued (on a preliminary basis for the Second Montana Acquisition) using unobservable (Level 3) inputs at a fair value of $11.4 million (on a preliminary basis) and $14.4 million, respectively (see Note 2, Acquisitions The Company owns various parcels of developed and undeveloped land relating to its casinos in Pahrump, Nevada. The Company performs an impairment analysis on the land it owns at least quarterly and determined that no impairment had occurred as of March 31, 2017 and December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies There have been no material changes to the Company’s commitments described under Note 15, Commitments and Contingencies Rent Expense and Future Minimum Lease Payments The Company leases its branded tavern locations, office headquarters building, equipment and vehicles under noncancelable operating leases that are not subject to contingent rents. The original terms of the current branded tavern location leases range from one to 14 years with various renewal options from one to 15 years. The Company has operating leases with related parties for certain of its tavern locations and its office headquarters building. See Note 12, Related Party Transactions Operating lease rental expense, which is calculated on a straight-line basis, net of surcharge revenue, associated with all operating leases was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Rent expense Space lease agreements $ 9,527 $ 10,137 Related party leases 576 702 Other operating leases 3,185 2,727 $ 13,288 $ 13,566 As of March 31, 2017, future minimum operating lease payments, excluding contingent rents, were as follows: Remainder (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments - operating leases Space lease agreements $ 22,454 $ 25,391 $ 24,757 $ 5,570 $ 2,114 $ 749 $ 703 $ 81,738 Related party leases 1,727 2,314 2,326 2,338 2,351 2,368 10,135 23,559 Other operating leases 8,235 10,078 9,371 9,276 8,662 7,624 71,392 124,638 $ 32,416 $ 37,783 $ 36,454 $ 17,184 $ 13,127 $ 10,741 $ 82,230 $ 229,935 The current and long-term obligations under capital leases are included in “Current portion of long-term debt, net” and “Long-term debt, net,” respectively. The majority of the capital leases relate to vehicles with minimum lease payment terms of three to four years. During the first quarter of 2017, the Company entered into a capital lease agreement with a related party for one of its tavern locations. See Note 12, Related Party Transactions As of March 31, 2017, future minimum capital lease payments, excluding contingent rents, were as follows: Remainder (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments - capital leases Furniture and equipment $ 454 $ 631 $ 545 $ 241 $ 78 $ — $ — $ 1,949 Related party property leases 113 150 150 150 150 163 1,588 2,464 Less: Amounts representing interest (601 ) Total obligations under capital leases $ 3,812 Participation and Revenue Share Agreements The Company also enters into gaming device placement contracts in the form of participation and revenue share agreements. Under revenue share agreements, the Company pays the business location a percentage of the gaming revenue generated from the Company’s gaming devices placed at the location, rather than a fixed monthly rental fee. Under participation agreements, the business location holds the applicable gaming license and retains a percentage of the gaming revenue that it generates from the Company’s gaming devices. During the three months ended March 31, 2017, the total contingent payments recognized by the Company (recorded in gaming expenses) under revenue share and participation agreements were $34.8 million, including $0.3 million under revenue share and participation agreements with related parties, as described in Note 12, Related Party Transactions . The Company also enters into amusement device and ATM placement contracts in the form of revenue share agreements. Under these revenue share agreements, the Company pays the business location a percentage of the non-gaming revenue generated from the Company’s amusement devices and ATMs placed at the location. During the three months ended March 31, 2017 and 2016, the total contingent payments recognized by the Company (recorded in other operating expenses) for amusement devices and ATMs under such agreements were $0.4 million and $0.1 million, respectively. Employment Agreements The Company has entered into at-will employment agreements with each of the Company’s executive officers. Under each employment agreement, in addition to the executive’s annual base salary, the executive is entitled to participate in the Company’s incentive compensation programs applicable to executive officers of the Company. The executives are also eligible to participate in all health benefits, insurance programs, pension and retirement plans and other employee benefit and compensation arrangements. Each executive is also provided with other benefits as set forth in his employment agreement. In the event of a termination without “cause” or a “constructive termination” of the Company’s executive officers (as defined in their respective employment agreements), the Company could be liable for estimated severance payments of up to $8.9 million for Mr. Sartini, $3.3 million for Stephen A. Arcana, $3.9 million for Charles H. Protell, $2.2 million for Sean T. Higgins, $1.4 million for Blake L. Sartini II, and $0.5 million for Gary A. Vecchiarelli (assuming each officer’s respective annual salary and health benefit costs as of March 31, 2017 are the amounts in effect at the time of termination and excluding potential expense related to acceleration of stock options). Miscellaneous Legal Matters 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. 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 will not have a material adverse effect on its business, financial condition, results of operations or liquidity. 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 February and April 2017, several former employees filed two separate purported class action lawsuits against the Company in the District Court of Clark County, Nevada, and on behalf of similarly situated individuals employed by the Company in the State of Nevada. The lawsuits allege the Company violated certain Nevada labor laws including payment of an hourly wage below the statutory minimum wage without providing a qualified health insurance plan and an associated failure to pay proper overtime compensation. The complaints seek, on behalf of the plaintiffs and members of the putative class, an unspecified amount of damages (including punitive damages), injunctive and equitable relief, and an award of attorneys’ fees, interest and costs. These cases are at an early stage in the proceedings, and the Company is therefore unable to make a reasonable estimate of the probable loss or range of losses, if any, that might arise from these matters. Therefore, the Company has not recorded any amount for the claims as of the date of this filing. While legal proceedings are inherently unpredictable and no assurance can be given as to the ultimate outcome of these matters, based on management’s current understanding of the relevant facts and circumstances, the Company believes that these proceedings should not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Distributed Gaming and Casinos. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. The Company’s Casinos segment includes results of operations and assets related to Rocky Gap in Flintstone, Maryland and its three casino properties in Pahrump, Nevada. The Corporate and Other segment includes the Company’s cash and cash equivalents 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. Three months ended March 31, 2017 (In thousands) Distributed Gaming Casinos Corporate and Other Eliminations Consolidated Net revenues $ 82,259 $ 24,308 $ 79 $ — $ 106,646 Adjusted EBITDA 13,106 6,302 (5,839 ) — 13,569 Share-based compensation — — (1,427 ) — (1,427 ) Preopening expenses (209 ) — (63 ) — (272 ) Depreciation and amortization (4,634 ) (1,571 ) (347 ) — (6,552 ) Income (loss) from operations 8,263 4,731 (7,676 ) — 5,318 Non-operating income (expense) Interest expense, net (42 ) (4 ) (1,637 ) — (1,683 ) Total non-operating expense, net (42 ) (4 ) (1,637 ) — (1,683 ) Income (loss) before income tax benefit (provision) 8,221 4,727 (9,313 ) — 3,635 Income tax benefit (provision) — — 1,707 — 1,707 Net income (loss) $ 8,221 $ 4,727 $ (7,606 ) $ — $ 5,342 As of March 31, 2017 Total assets $ 300,128 $ 105,638 $ 66,478 $ (53,398 ) $ 418,846 Three months ended March 31, 2016 (In thousands) Distributed Gaming Casinos Corporate and Other Eliminations Consolidated Net revenues $ 68,584 $ 22,413 $ 37 $ — $ 91,034 Adjusted EBITDA 10,221 4,764 (4,437 ) — 10,548 Merger expenses — — (41 ) — (41 ) Share-based compensation — — (405 ) — (405 ) Depreciation and amortization (3,699 ) (1,769 ) (324 ) — (5,792 ) Other operating items, net (560 ) — (13 ) — (573 ) Income (loss) from operations 5,962 2,995 (5,220 ) — 3,737 Non-operating income (expense) Interest expense, net (35 ) — (1,422 ) — (1,457 ) Loss on extinguishment of debt — — — — — Other, net — — 18 — 18 Total non-operating expense, net (35 ) — (1,404 ) — (1,439 ) Income (loss) before income tax benefit (provision) 5,927 2,995 (6,624 ) — 2,298 Income tax benefit (provision) — — (59 ) — (59 ) Net income (loss) $ 5,927 $ 2,995 $ (6,683 ) $ — $ 2,239 As of December 31, 2016 Total assets $ 294,822 $ 108,418 $ 69,236 $ (53,398 ) $ 419,078 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 – Related Party Transactions As of March 31, 2017, the Company leased its office headquarters building and one tavern location 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, and leased three tavern locations, one of which the Company accounts for as a capital lease, from companies controlled by Mr. Sartini through a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee. The lease for the Company’s office headquarters building expires on July 31, 2025. The rent expense for the office headquarters building during each of the three months ended March 31, 2017 and 2016 was $0.3 million and there was no amount owed by the Company with respect to such lease as of March 31, 2017. The leases for the tavern locations have remaining terms of up to 15 years. The rent expense for the tavern locations during the three months ended March 31, 2017 and 2016 was $0.3 million and $0.4 million, respectively, and no amounts were owed by the Company with respect to such leases as of March 31, 2017. Additionally, a portion of the office headquarters building was sublet to a company owned or controlled by Mr. Sartini through February 28, 2017. Rental income for the sublet portion of the office headquarters building during each of the three months ended March 31, 2017 and 2016 was less than $0.1 million. Mr. Sartini serves as the Chairman of the Board, President and Chief Executive Officer of the Company and is co-trustee of the Sartini Trust, which is a significant shareholder of the Company. Mr. Arcana serves as the Executive Vice President and Chief Operating Officer of the Company. As of March 31, 2017, all of these related party lease agreements were in place prior to the consummation of the Merger, other than two lease agreements entered into in 2016. In April 2016, the Audit Committee of the Board of Directors approved the Company’s entering into an aircraft timesharing agreement between the Company and Sartini Enterprises, Inc., a company controlled by Mr. Sartini. Pursuant to the agreement, the Company will reimburse Sartini Enterprises, Inc. for direct costs and expenses incurred by Company employees traveling on Company business on the private aircraft owned by Sartini Enterprises Inc. During the three months ended March 31, 2017, the Company paid less than $0.1 million, and as of March 31, 2017 the Company owed less than $0.1 million, under the aircraft timesharing agreement. Mr. Sartini’s son, Blake L. Sartini, II (“Mr. Sartini II”), serves as Senior Vice President of Distributed Gaming of the Company. Mr. Sartini II has an employment agreement that was approved by both the Audit Committee and Compensation Committee of the Board of Directors, which was amended and restated in March 2017. The amended and restated employment agreement provides for an annual base salary of $375,000, of which approximately $79,000 was earned during the three months ended March 31, 2017. Additionally, Mr. Sartini II is eligible for a target annual bonus equal to 50% of his base salary. Mr. Sartini II also participates in the Company's equity award and benefit programs. In 2017, Mr. Sartini II received a grant of 75,000 options to purchase the Company’s common stock with an exercise price of $13.50 per share, which stock options will vest over a four-year period (but pursuant to the 2015 Plan such stock options may not be exercised prior to August 1, 2018 except in limited circumstances). One of the distributed gaming locations at which the Company’s gaming devices are located is owned in part by Sean T. Higgins, who serves as the Company’s Chief Legal Officer and Executive Vice President of Development, Compliance and Government Affairs. This arrangement was in place prior to Mr. Higgins joining the Company on March 28, 2016. Net revenues and gaming expenses recorded by the Company from the use of the Company’s gaming devices at this location were each $0.3 million during the three months ended March 31, 2017, and an immaterial amount during the three months ended March 31, 2016, as such period predominantly related to the period prior to Three of the distributed gaming locations at which the Company’s gaming devices are located are owned in part by the spouse of Matthew W. Flandermeyer, the former Executive Vice President and Chief Financial Officer of the Company. Net revenues and gaming expenses recorded by the Company from the use of the Company’s gaming devices at these three locations were $0.5 million and $0.4 million, respectively, during the three months ended March 31, 2016. Mr. Flandermeyer ceased to be an employee of the Company and a related party in November 2016. The gaming expenses recorded by the Company represent amounts retained by the counterparty (with respect to the two locations that are subject to participation agreements) or paid to the counterparty (with respect to the location that is subject to a revenue share agreement) from the operation of the gaming devices. All of the agreements were in place prior to the consummation of the Merger. One distributed gaming location at which the Company’s gaming devices are located was owned in part by Terrence L. Wright, who serves on the Board of Directors of the Company, who divested his interest in such distributed gaming location in March 2016. Net revenues and gaming expenses recorded by the Company from the use of the Company’s gaming devices at this location during the period in which the agreement was with a related party were $0.1 million during the three months ended March 31, 2016. This agreement was in place prior to the consummation of the Merger. In connection with the Merger, Lyle A. Berman, who serves on the Board of the Directors of the Company, entered into a three-year consulting agreement with the Company that pays his wholly owned consulting firm $200,000 annually, plus reimbursements for certain health insurance, administrative assistant and office costs. Expenses recorded by the Company for the agreement with Mr. Berman were $0.1 million for each of the three months ended March 31, 2017 and 2016, and no amounts were due and payable by the Company at March 31, 2017. Additionally, in connection with the Merger, Timothy J. Cope, who serves on the Board of Directors of the Company entered into a short-term consulting agreement for the period from July 31, 2015 to April 1, 2016 under which Mr. Cope was paid a total of $140,000, plus reimbursement of certain health insurance costs. Expenses recorded by the Company for the agreement with Mr. Cope were $0.1 million for the three months ended March 31, 2016. |
Nature of Business and Basis 18
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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, please refer to the audited consolidated financial statements of the Company for the year ended December 31, 2016 and the notes thereto included in the Company’s Annual Report on Form 10-K previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include 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. 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. Certain minor reclassifications have been made to the prior year period amounts to conform to the current presentation. |
Net Income Per Share | Net Income Per Share For all periods, 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 the anti-diluted effect. |
New Accounting Pronouncements | New 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 on the Company's consolidated financial statements of the future adoption of new accounting standards that are not yet effective, management currently believes that the following new standards may have a material impact on the Company's financial statements and disclosures: In February 2016, the FASB issued ASU 2016-02, Leases, which replaces the existing guidance. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. ASU 2016-02 is effective for annual periods beginning after December 15, 2018 and interim periods therein, with early application permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition model, ASU 2014-09, Revenue from Contracts with Customers The customer loyalty programs affect revenues from our four core business operations: gaming, food and beverage, rooms and other operations. Currently, the Company estimates the cost of fulfilling the redemption of player rewards, after consideration of breakage, based upon the cost of historical redemptions. Upon adoption of the new guidance, player rewards will no longer be recorded at cost, and a deferred revenue model will be used to account for the classification and timing of revenue recognized as well as the classification of related expenses when player rewards are redeemed. Additionally, the Company expects to see a significant decrease in food and beverage and room revenues because the practice of including the retail value of goods and services provided to customers without charge in gross revenue with a corresponding offset in promotional allowances to arrive at net revenue will be discontinued. No other recently issued accounting standards that are not yet effective have been identified that management believes are likely to have a material impact on the Company's financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Initial Montana Acquisition [Member] | |
Schedule of Acquisition Final/Preliminary Purchase Price Allocation | The allocation of the $20.1 million purchase price of the Initial Montana Acquisition was finalized in the first quarter of 2017, and as of the date of the acquisition, was comprised of the following: (In thousands) Final Purchase Price Allocation Cash and cash equivalents $ 1,700 Property and equivalents 2,350 Intangible assets 14,400 Goodwill 1,680 Total acquired assets $ 20,130 |
Summary of Recorded/Preliminary Valuation of Intangible Assets Acquired and Weighted Average Useful Lives of Definite-lived Intangible Assets | The intangible assets acquired in the Initial Montana Acquisition and the related weighted average useful lives of definite-lived intangible assets were as follows: (In thousands) Useful As Recorded, at Fair Value Customer relationships 15 years $ 9,800 Non-competition agreements 5 years 3,900 Trade name 4 years 500 Other 15 years 200 Total intangible assets acquired $ 14,400 |
Second Montana Acquisition [Member] | |
Schedule of Acquisition Final/Preliminary Purchase Price Allocation | The preliminary allocation of the $25.7 million purchase price of the Second Montana Acquisition as of the date of acquisition was comprised of the following: (In thousands) Preliminary Purchase Price Allocation Cash and other current assets $ 404 Property and equipment 7,839 Intangible assets 11,400 Goodwill 6,013 Total acquired assets $ 25,656 |
Summary of Recorded/Preliminary Valuation of Intangible Assets Acquired and Weighted Average Useful Lives of Definite-lived Intangible Assets | The preliminary valuation of intangible assets acquired in the Second Montana Acquisition and the related weighted average useful lives of definite –lived intangible assets were as follows: (In thousands) Useful Preliminary Assessment of Fair Value Customer relationships 15 years $ 9,100 Non-competition agreements 5 years 1,800 Trade name 4 years 200 Other 15 years 300 Total intangible assets acquired $ 11,400 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | The following table summarizes the components of property and equipment, net: (In thousands) March 31, 2017 December 31, 2016 Land $ 12,470 $ 12,470 Building and site improvements 83,927 77,515 Furniture and equipment 75,779 75,740 Construction in process 6,456 5,246 Property and equipment 178,632 170,971 Less: Accumulated depreciation (37,989 ) (33,390 ) Property and equipment, net $ 140,643 $ 137,581 |
Goodwill and Intangible Asset21
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill consisted of the following: (In thousands) March 31, 2017 December 31, 2016 Goodwill Distributed Gaming $ 97,859 $ 97,859 Casinos 7,796 7,796 Total Goodwill $ 105,655 $ 105,655 |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following: March 31, 2017 Weighted Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 960 $ — $ 960 Trade names Indefinite 12,200 — 12,200 Other Indefinite 185 — 185 13,345 — 13,345 Finite-lived intangible assets Player relationships 10.2 years 7,300 (1,071 ) 6,229 Gaming license 11.1 years 2,100 (542 ) 1,558 Non-compete agreements 3.7 years 6,000 (1,490 ) 4,510 Other intangible assets 9.3 years 1,648 (359 ) 1,289 17,048 (3,462 ) 13,586 Total intangible assets, other than customer relationships $ 30,393 $ (3,462 ) $ 26,931 Customer relationships 13.0 years $ 78,100 $ (8,293 ) $ 69,807 December 31, 2016 Weighted Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 960 $ — $ 960 Trade names Indefinite 12,200 — 12,200 Other Indefinite 110 — 110 13,270 — 13,270 Finite-lived intangible assets Player relationships 10.4 years 7,300 (910 ) 6,390 Gaming license 11.4 years 2,100 (508 ) 1,592 Non-compete agreements 4.0 years 6,000 (1,168 ) 4,832 Other intangible assets 9.5 years 1,648 (297 ) 1,351 17,048 (2,883 ) 14,165 Total intangible assets, other than customer relationships $ 30,318 $ (2,883 ) $ 27,435 Customer relationships 13.2 years $ 78,100 $ (6,932 ) $ 71,168 |
Schedule of Estimated Future Amortization Expense Related to Intangible Assets | stimated future amortization expense was as follows: Remainder of (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Estimated amortization expense $ 5,758 $ 7,610 $ 7,610 $ 7,463 $ 6,481 $ 6,294 $ 42,177 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net was comprised of the following: (In thousands) March 31, 2017 December 31, 2016 Term Loans $ 147,000 $ 150,000 Revolving Credit Facility 27,000 30,000 Capital lease obligations 3,812 1,970 Notes payable 3,082 3,777 Total long-term debt 180,894 185,747 Less: Unamortized debt issuance costs (2,115 ) (2,305 ) 178,779 183,442 Less: Current portion, net of unamortized debt issuance costs (15,055 ) (15,752 ) Long-term debt, net $ 163,724 $ 167,690 |
Promotional Allowances (Tables)
Promotional Allowances (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Promotional Allowances [Abstract] | |
Estimated Retail Value of Promotional Allowance | The retail value of food and beverages, rooms and other services furnished to customers without charge, including coupons for discounts when redeemed, is included in gross revenues and then deducted as promotional allowances. The estimated retail value of the promotional allowances was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Food and beverage $ 4,835 $ 4,018 Rooms 533 455 Other 121 73 Total promotional allowances $ 5,489 $ 4,546 |
Estimated Cost of Providing Promotional Allowances | The estimated cost of providing these promotional allowances, which is primarily included in gaming expenses, was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Food and beverage $ 3,358 $ 3,014 Rooms 164 191 Other 83 81 Total estimated cost of promotional allowances $ 3,605 $ 3,286 |
Stock Incentive Plans and Sha24
Stock Incentive Plans and Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity during the three months ended March 31, 2017 and 2016: Number of Common Shares Weighted- Options Available Average Outstanding Exercisable for Grant Exercise Price 2017 Balance at December 31, 2016 3,402,481 411,029 274,596 $ 9.02 Authorized — 889,259 — Granted 847,000 (847,000 ) 13.36 Exercised (19,989 ) — 7.70 Cancelled (16,459 ) 16,459 10.48 Balance at March 31, 2017 4,213,033 391,040 333,314 $ 9.90 2016 Balance at December 31, 2015 2,419,529 724,529 837,635 $ 8.16 Authorized — 874,709 — Granted 160,000 (160,000 ) 10.53 Exercised (159,626 ) — 10.24 Balance at March 31, 2016 2,419,903 564,903 1,552,344 $ 8.49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Rental Expense | Operating lease rental expense, which is calculated on a straight-line basis, net of surcharge revenue, associated with all operating leases was as follows: Three Months Ended (In thousands) March 31, 2017 March 31, 2016 Rent expense Space lease agreements $ 9,527 $ 10,137 Related party leases 576 702 Other operating leases 3,185 2,727 $ 13,288 $ 13,566 |
Schedule of Future Minimum Operating Lease Payments | As of March 31, 2017, future minimum operating lease payments, excluding contingent rents, were as follows: Remainder (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments - operating leases Space lease agreements $ 22,454 $ 25,391 $ 24,757 $ 5,570 $ 2,114 $ 749 $ 703 $ 81,738 Related party leases 1,727 2,314 2,326 2,338 2,351 2,368 10,135 23,559 Other operating leases 8,235 10,078 9,371 9,276 8,662 7,624 71,392 124,638 $ 32,416 $ 37,783 $ 36,454 $ 17,184 $ 13,127 $ 10,741 $ 82,230 $ 229,935 |
Schedule of Future Minimum Capital Lease Payments | As of March 31, 2017, future minimum capital lease payments, excluding contingent rents, were as follows: Remainder (In thousands) 2017 2018 2019 2020 2021 2022 Thereafter Total Minimum lease payments - capital leases Furniture and equipment $ 454 $ 631 $ 545 $ 241 $ 78 $ — $ — $ 1,949 Related party property leases 113 150 150 150 150 163 1,588 2,464 Less: Amounts representing interest (601 ) Total obligations under capital leases $ 3,812 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three months ended March 31, 2017 (In thousands) Distributed Gaming Casinos Corporate and Other Eliminations Consolidated Net revenues $ 82,259 $ 24,308 $ 79 $ — $ 106,646 Adjusted EBITDA 13,106 6,302 (5,839 ) — 13,569 Share-based compensation — — (1,427 ) — (1,427 ) Preopening expenses (209 ) — (63 ) — (272 ) Depreciation and amortization (4,634 ) (1,571 ) (347 ) — (6,552 ) Income (loss) from operations 8,263 4,731 (7,676 ) — 5,318 Non-operating income (expense) Interest expense, net (42 ) (4 ) (1,637 ) — (1,683 ) Total non-operating expense, net (42 ) (4 ) (1,637 ) — (1,683 ) Income (loss) before income tax benefit (provision) 8,221 4,727 (9,313 ) — 3,635 Income tax benefit (provision) — — 1,707 — 1,707 Net income (loss) $ 8,221 $ 4,727 $ (7,606 ) $ — $ 5,342 As of March 31, 2017 Total assets $ 300,128 $ 105,638 $ 66,478 $ (53,398 ) $ 418,846 Three months ended March 31, 2016 (In thousands) Distributed Gaming Casinos Corporate and Other Eliminations Consolidated Net revenues $ 68,584 $ 22,413 $ 37 $ — $ 91,034 Adjusted EBITDA 10,221 4,764 (4,437 ) — 10,548 Merger expenses — — (41 ) — (41 ) Share-based compensation — — (405 ) — (405 ) Depreciation and amortization (3,699 ) (1,769 ) (324 ) — (5,792 ) Other operating items, net (560 ) — (13 ) — (573 ) Income (loss) from operations 5,962 2,995 (5,220 ) — 3,737 Non-operating income (expense) Interest expense, net (35 ) — (1,422 ) — (1,457 ) Loss on extinguishment of debt — — — — — Other, net — — 18 — 18 Total non-operating expense, net (35 ) — (1,404 ) — (1,439 ) Income (loss) before income tax benefit (provision) 5,927 2,995 (6,624 ) — 2,298 Income tax benefit (provision) — — (59 ) — (59 ) Net income (loss) $ 5,927 $ 2,995 $ (6,683 ) $ — $ 2,239 As of December 31, 2016 Total assets $ 294,822 $ 108,418 $ 69,236 $ (53,398 ) $ 419,078 |
Nature of Business and Basis 27
Nature of Business and Basis of Presentation (Details Textual) | 3 Months Ended |
Mar. 31, 2017Segment | |
Accounting Policies [Abstract] | |
Number of reportable operating segments | 2 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) | Apr. 22, 2016USD ($)Device | Jan. 29, 2016USD ($)Devicepayment$ / sharesshares | Mar. 31, 2017USD ($)payment | Mar. 31, 2016USD ($) |
Initial Montana Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of gaming devices acquired | Device | 1,100 | |||
Business Acquisition, consideration transaction price | $ 20,100,000 | $ 20,100,000 | ||
Business Acquisition, Value of Shares Issued | $ 500,000 | |||
Business Acquisition, Value of Shares | shares | 50,252 | |||
Shares Issued, Price Per Share | $ / shares | $ 9.95 | |||
Business Combination, Contingent Consideration Maximum | $ 2,000,000 | |||
Business Combination, Contingent Consideration Arrangements, Number of Periodic Payment | payment | 4 | 4 | ||
Business Combination Contingent Consideration Arrangements Quarterly Payments, Start date | 2017-09 | |||
Second Montana Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of gaming devices acquired | Device | 1,800 | |||
Business Acquisition, consideration transaction price | $ 25,700,000 | |||
Montana Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Net Revenue related to the Acquiree | $ 15,200,000 | $ 4,000,000 | ||
Montana Acquisitions [Member] | Preopening Expenses [Member] | ||||
Business Acquisition [Line Items] | ||||
Transaction-Related Costs | $ 100,000 | $ 200,000 |
Schedule of Acquisition Purchas
Schedule of Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 29, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 105,655 | $ 105,655 | |
Initial Montana Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,700 | ||
Property and equivalents | 2,350 | ||
Intangible assets | 14,400 | ||
Goodwill | 1,680 | ||
Total acquired assets | $ 20,130 |
Summary of Intangible Assets Ac
Summary of Intangible Assets Acquired and Weighted Average Useful Lives of Definite-lived Intangible Assets (Details) - Initial Montana Acquisition [Member] $ in Thousands | Jan. 29, 2016USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Assets As Recorded, at Fair Value | $ 14,400 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 15 years |
Intangible Assets As Recorded, at Fair Value | $ 9,800 |
Noncompete Agreements [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 5 years |
Intangible Assets As Recorded, at Fair Value | $ 3,900 |
Trade Names [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 4 years |
Intangible Assets As Recorded, at Fair Value | $ 500 |
Other [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 15 years |
Intangible Assets As Recorded, at Fair Value | $ 200 |
Schedule of Acquisition Prelimi
Schedule of Acquisition Preliminary Purchase Price Allocation(Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Apr. 22, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 105,655 | $ 105,655 | |
Second Montana Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash and other current assets | $ 404 | ||
Property and equivalents | 7,839 | ||
Intangible assets | 11,400 | ||
Goodwill | 6,013 | ||
Total acquired assets | $ 25,656 |
Summary of Preliminary Valuatio
Summary of Preliminary Valuation of Intangible Assets Acquired and Weighted Average Useful Lives of Definite-lived Intangible Assets (Details) - Second Montana Acquisition [Member] $ in Thousands | Apr. 22, 2016USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Preliminary Assessment of Fair Value | $ 11,400 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 15 years |
Preliminary Assessment of Fair Value | $ 9,100 |
Noncompete Agreements [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 5 years |
Preliminary Assessment of Fair Value | $ 1,800 |
Trade Names [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 4 years |
Preliminary Assessment of Fair Value | $ 200 |
Other [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Lives of Definite-lived Intangible Assets | 15 years |
Preliminary Assessment of Fair Value | $ 300 |
Components of Property and Equi
Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 178,632 | $ 170,971 |
Less: Accumulated depreciation | (37,989) | (33,390) |
Property and equipment, net | 140,643 | 137,581 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 12,470 | 12,470 |
Building and Site Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 83,927 | 77,515 |
Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 75,779 | 75,740 |
Construction in process [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 6,456 | $ 5,246 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||
Depreciation Expense | $ 4.6 | $ 4.3 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill | ||
Total Goodwill | $ 105,655 | $ 105,655 |
Distributed Gaming [Member] | ||
Goodwill | ||
Total Goodwill | 97,859 | 97,859 |
Casinos [Member] | ||
Goodwill | ||
Total Goodwill | $ 7,796 | $ 7,796 |
Schedule of Intangible Assets,
Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | $ 13,345 | $ 13,270 |
Finite-lived intangible assets | ||
Finite-lived intangible assets, Gross Carrying Value | 17,048 | 17,048 |
Finite-lived intangible assets, Cumulative Amortization | (3,462) | (2,883) |
Finite-lived intangible assets, Intangible Assets, Net | 13,586 | 14,165 |
Intangible assets, Gross Carrying Value | 30,393 | 30,318 |
Intangible assets, Cumulative Amortization | (3,462) | (2,883) |
Total intangible assets, Net | 26,931 | 27,435 |
Indefinite-lived intangible assets | $ 26,931 | $ 27,435 |
Customer Relationships [Member] | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, Weighted Average Life Remaining Period | 13 years | 13 years 2 months 12 days |
Finite-lived intangible assets, Gross Carrying Value | $ 78,100 | $ 78,100 |
Finite-lived intangible assets, Cumulative Amortization | (8,293) | (6,932) |
Finite-lived intangible assets, Intangible Assets, Net | $ 69,807 | $ 71,168 |
Player relationships [Member] | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, Weighted Average Life Remaining Period | 10 years 2 months 12 days | 10 years 4 months 24 days |
Finite-lived intangible assets, Gross Carrying Value | $ 7,300 | $ 7,300 |
Finite-lived intangible assets, Cumulative Amortization | (1,071) | (910) |
Finite-lived intangible assets, Intangible Assets, Net | $ 6,229 | $ 6,390 |
Finite-lived Gaming Licenses [Member] | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, Weighted Average Life Remaining Period | 11 years 1 month 6 days | 11 years 4 months 24 days |
Finite-lived intangible assets, Gross Carrying Value | $ 2,100 | $ 2,100 |
Finite-lived intangible assets, Cumulative Amortization | (542) | (508) |
Finite-lived intangible assets, Intangible Assets, Net | $ 1,558 | $ 1,592 |
Noncompete Agreements [Member] | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, Weighted Average Life Remaining Period | 3 years 8 months 12 days | 4 years |
Finite-lived intangible assets, Gross Carrying Value | $ 6,000 | $ 6,000 |
Finite-lived intangible assets, Cumulative Amortization | (1,490) | (1,168) |
Finite-lived intangible assets, Intangible Assets, Net | $ 4,510 | $ 4,832 |
Other intangible assets [Member] | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, Weighted Average Life Remaining Period | 9 years 3 months 18 days | 9 years 6 months |
Finite-lived intangible assets, Gross Carrying Value | $ 1,648 | $ 1,648 |
Finite-lived intangible assets, Cumulative Amortization | (359) | (297) |
Finite-lived intangible assets, Intangible Assets, Net | 1,289 | 1,351 |
Gaming licenses [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | 960 | 960 |
Trade Names [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | 12,200 | 12,200 |
Other [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | $ 185 | $ 110 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets, Net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Gaming licenses [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 2 | $ 1.4 |
Schedule of Estimated Future Am
Schedule of Estimated Future Amortization Expense Related to Intangible Asset (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Estimated amortization expense, Remainder of 2017 | $ 5,758 |
Estimated amortization expense, 2018 | 7,610 |
Estimated amortization expense, 2019 | 7,610 |
Estimated amortization expense, 2020 | 7,463 |
Estimated amortization expense, 2021 | 6,481 |
Estimated amortization expense, 2022 | 6,294 |
Estimated amortization expense, Thereafter | $ 42,177 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Term Loans | $ 147,000 | $ 150,000 |
Capital lease obligations | 3,812 | 1,970 |
Notes payable | 3,082 | 3,777 |
Total long-term debt | 180,894 | 185,747 |
Less: Unamortized debt issuance costs | (2,115) | (2,305) |
Long-term Debt | 178,779 | 183,442 |
Less: Current portion, net of unamortized debt issuance costs | (15,055) | (15,752) |
Long-term debt, net | 163,724 | 167,690 |
Revolving Credit Facility [Member] | ||
Revolving Credit Facility | $ 27,000 | $ 30,000 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - Amended Credit Agreement | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Debt instrument, Interest rate terms | Borrowings under the Credit Agreement bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, the Eurodollar rate for a one-month interest period plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) the Eurodollar rate for the applicable interest period, plus in each case, an applicable margin based on the Company’s leverage ratio. |
Debt, Weighted Average Interest Rate | 3.30% |
Federal Funds Effective Swap Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Eurodollar [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 |
Term Loan [Member] | |
Debt Instrument, Face Amount | $ 160,000 |
Term Loan [Member] | Revolving Credit Facility [Member] | |
Debt Instrument, Maturity Date | Jul. 31, 2020 |
Estimated Retail Value of Promo
Estimated Retail Value of Promotional Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Promotional Allowances [Line Items] | ||
Promotional Allowances | $ 5,489 | $ 4,546 |
Food and Beverage [Member] | ||
Promotional Allowances [Line Items] | ||
Promotional Allowances | 4,835 | 4,018 |
Rooms [Member] | ||
Promotional Allowances [Line Items] | ||
Promotional Allowances | 533 | 455 |
Other [Member] | ||
Promotional Allowances [Line Items] | ||
Promotional Allowances | $ 121 | $ 73 |
Estimated Cost of Providing Pro
Estimated Cost of Providing Promotional Allowances (Details) - Gaming expenses [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Promotional Allowances [Line Items] | ||
Estimated Cost of Promotional Allowances | $ 3,605 | $ 3,286 |
Food and Beverage [Member] | ||
Promotional Allowances [Line Items] | ||
Estimated Cost of Promotional Allowances | 3,358 | 3,014 |
Rooms [Member] | ||
Promotional Allowances [Line Items] | ||
Estimated Cost of Promotional Allowances | 164 | 191 |
Other [Member] | ||
Promotional Allowances [Line Items] | ||
Estimated Cost of Promotional Allowances | $ 83 | $ 81 |
Stock Incentive Plans and Sha43
Stock Incentive Plans and Share-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Jan. 02, 2017 | Aug. 27, 2015 | Jun. 30, 2007 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of Shares Annual Increase | 889,259 | 874,709 | |||||
Maximum Number of Shares Authorized per One Participant | 333,314 | 1,552,344 | 274,596 | 837,635 | |||
Stock Options, Outstanding, Number | 4,213,033 | 2,419,903 | 3,402,481 | 2,419,529 | |||
Stock options granted in period | 847,000 | 160,000 | |||||
Weighted Average Exercise Price | $ 9.90 | $ 8.49 | $ 9.02 | $ 8.16 | |||
Options, Exercised in Period | 19,989 | 159,626 | |||||
Employee Stock Option [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options granted in period | 847,000 | 160,000 | |||||
Stock options weighted-average grant date fair value | $ 5.89 | $ 3.94 | |||||
Share-based Compensation Expense | $ 1 | $ 0.4 | |||||
Weighted Average Remaining Contractual Term | 8 years 1 month 6 days | ||||||
Weighted Average Exercise Price | $ 9.90 | ||||||
Aggregate Intrinsic Value | $ 14.2 | ||||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 7 months 6 days | ||||||
Options, Exercisable, Weighted Average Exercise Price | $ 4.34 | ||||||
Options, Exercisable, Aggregate Intrinsic Value | $ 3.5 | ||||||
Options, Exercised in Period | 19,989 | 159,626 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0.1 | $ 0.7 | |||||
Stock Options, Unrecognized Share-based Compensation Expense | $ 14.5 | ||||||
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 3 years 3 months 18 days | ||||||
2015 Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock Options Expiration Term | 10 years | ||||||
Number of Shares Authorized | 2,250,000 | ||||||
Number of Shares Annual Increase | 889,259 | 1,800,000 | |||||
Plan Shares Annual Increase, Percentage | 4.00% | ||||||
Maximum Number of Shares Authorized per One Participant | 2,000,000 | 333,314 | |||||
Stock Options, Outstanding, Number | 3,539,358 | ||||||
Stock Options, Vested, Number | 720,021 | ||||||
2015 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Expense | $ 0.4 | ||||||
Number of RSUs outstanding | 141,296 | ||||||
Number of RSUs vested | 0 | ||||||
Stock Option and Compensation Plan of 2007 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock Options Expiration Term | 10 years | ||||||
Number of Shares Authorized | 1,250,000 | ||||||
Maximum Number of Shares Authorized per One Participant | 0 | ||||||
Stock Options, Outstanding, Number | 673,675 | ||||||
Stock Options, Vested, Number | 391,040 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - $ / shares | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Common Shares, Options Outstanding | ||||
Number of Common Shares, Options Outstanding, Beginning of year | 3,402,481 | 2,419,529 | ||
Number of Common Shares, Options Outstanding, Granted | 847,000 | 160,000 | ||
Number of Common Shares, Options Outstanding, Exercised | (19,989) | (159,626) | ||
Number of Common Shares, Options Outstanding, Cancelled | (16,459) | |||
Number of Common Shares, Options Outstanding, End of year | 4,213,033 | 2,419,903 | ||
Number of Common Shares, Exercisable | ||||
Number of Common Shares Exercisable | 391,040 | 564,903 | 411,029 | 724,529 |
Number of Common Shares, Available for Grant | ||||
Number of Common Shares, Available for Grant, beginning of year | 274,596 | 837,635 | ||
Number of Common Shares, Available for Grant, Authorized | 889,259 | 874,709 | ||
Number of Common Shares, Available for Grant, Granted | (847,000) | (160,000) | ||
Number of Common Shares, Available for Grant, Cancelled | 16,459 | |||
Number of Common Shares, Available for Grant, end of year | 333,314 | 1,552,344 | ||
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price, beginning of year | $ 9.02 | $ 8.16 | ||
Weighted Average Exercise Price, Granted | 13.36 | 10.53 | ||
Weighted Average Exercise Price, Exercised | 7.70 | 10.24 | ||
Weighted Average Exercise Price, Cancelled | 10.48 | |||
Weighted Average Exercise Price, end of year | $ 9.90 | $ 8.49 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Expense (Benefit) | $ (1,707) | $ 59 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes Audit, Tax Years | 2,012 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Effective Tax Rate, Percent | (46.40%) | 2.50% | |
Income Tax Expense (Benefit) | $ (1,700) | ||
Income Taxes Receivable | 200 | $ 2,300 | |
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Income Tax Expense (Benefit) | $ 100 | ||
Tax Year 2012 [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Collection of tax refund | $ 2,200 |
Financial Instruments and Fai46
Financial Instruments and Fair Value Measurements (Details Textual) | Jan. 29, 2016USD ($)payment | Mar. 31, 2017USD ($)payment | Dec. 31, 2016USD ($) | Apr. 22, 2016USD ($) |
Land [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Tangible Asset Impairment Charges | $ 0 | $ 0 | ||
Initial Montana Acquisition [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration Maximum | $ 2,000,000 | |||
Business Combination, Contingent Consideration Arrangements, Number of Periodic Payment | payment | 4 | 4 | ||
Fair value of intangible assets acquired | $ 14,400,000 | |||
Initial Montana Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | Non-recurring Basis [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of intangible assets acquired | $ 14,400,000 | |||
Initial Montana Acquisition [Member] | Other Accrued Expenses and Other Long-term Obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 2,000,000 | |||
Second Montana Acquisition [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of intangible assets acquired | $ 11,400,000 | |||
Second Montana Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | Non-recurring Basis [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of intangible assets acquired | $ 11,400,000 |
Commitments and Contingencies47
Commitments and Contingencies (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | $ 62,887 | $ 55,491 |
Other Operating Expenses | $ 3,200 | 779 |
Class action lawsuits filed by former employees | February and April 2017 | |
Number of class action lawsuits filed by former employees | 2 | |
Mr. Sartini [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | $ 8,900 | |
Stephen Arcana [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | 3,300 | |
Charles H. Protell [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | 3,900 | |
Sean T. Higgins [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | 2,200 | |
Blake L. Sartini II [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | 1,400 | |
Gary A. Vecchiarelli [Member] | ||
Commitments And Contingencies [Line Items] | ||
Liability Contingency, Estimated Severance Payments | 500 | |
Participation and Revenue Share Agreements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | 34,800 | 28,200 |
Participation and Revenue Share Agreements [Member] | Related Party Transaction, Revenue Share and Participation Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | 300 | 500 |
Revenue Share Agreements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Other Operating Expenses | $ 400 | $ 100 |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Original Terms of Current Branded Tavern Location Leases Range | 14 years | |
Operating Leases Renewal Term | 15 years | |
Capital Leases Term | 4 years | |
Minimum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Original Terms of Current Branded Tavern Location Leases Range | 1 year | |
Operating Leases Renewal Term | 1 year | |
Capital Leases Term | 3 years |
Schedule of Operating Lease Ren
Schedule of Operating Lease Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Rent expense | ||
Operating Leases, Rent Expense | $ 13,288 | $ 13,566 |
Space Lease Agreements [Member] | ||
Rent expense | ||
Operating Leases, Rent Expense | 9,527 | 10,137 |
Related Party Leases [Member] | ||
Rent expense | ||
Operating Leases, Rent Expense | 576 | 702 |
Other Operating Leases [Member] | ||
Rent expense | ||
Operating Leases, Rent Expense | $ 3,185 | $ 2,727 |
Schedule of Future Minimum Oper
Schedule of Future Minimum Operating Lease Payments (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Future Minimum Operating Lease Payments [Line Items] | |
Remainder of 2017 | $ 32,416 |
2,018 | 37,783 |
2,019 | 36,454 |
2,020 | 17,184 |
2,021 | 13,127 |
2,022 | 10,741 |
Thereafter | 82,230 |
Total | 229,935 |
Space Lease Agreements [Member] | |
Future Minimum Operating Lease Payments [Line Items] | |
Remainder of 2017 | 22,454 |
2,018 | 25,391 |
2,019 | 24,757 |
2,020 | 5,570 |
2,021 | 2,114 |
2,022 | 749 |
Thereafter | 703 |
Total | 81,738 |
Related Party Leases [Member] | |
Future Minimum Operating Lease Payments [Line Items] | |
Remainder of 2017 | 1,727 |
2,018 | 2,314 |
2,019 | 2,326 |
2,020 | 2,338 |
2,021 | 2,351 |
2,022 | 2,368 |
Thereafter | 10,135 |
Total | 23,559 |
Other Operating Leases [Member] | |
Future Minimum Operating Lease Payments [Line Items] | |
Remainder of 2017 | 8,235 |
2,018 | 10,078 |
2,019 | 9,371 |
2,020 | 9,276 |
2,021 | 8,662 |
2,022 | 7,624 |
Thereafter | 71,392 |
Total | $ 124,638 |
Schedule of Future Minimum Capi
Schedule of Future Minimum Capital Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Future Minimum Capital Lease Payments [Line Items] | ||
Less: Amounts representing interest | $ (601) | |
Total obligations under capital leases | 3,812 | $ 1,970 |
Furniture and Equipment [Member] | ||
Future Minimum Capital Lease Payments [Line Items] | ||
Remainder of 2017 | 454 | |
2,018 | 631 | |
2,019 | 545 | |
2,020 | 241 | |
2,021 | 78 | |
2,022 | 0 | |
Thereafter | 0 | |
Total | 1,949 | |
Related Party Property Leases [Member] | ||
Future Minimum Capital Lease Payments [Line Items] | ||
Remainder of 2017 | 113 | |
2,018 | 150 | |
2,019 | 150 | |
2,020 | 150 | |
2,021 | 150 | |
2,022 | 163 | |
Thereafter | 1,588 | |
Total | $ 2,464 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 2 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 106,646 | $ 91,034 | |
Adjusted EBITDA | 13,569 | 10,548 | |
Merger expenses | (41) | ||
Share-based compensation | (1,427) | (405) | |
Preopening expenses | (272) | (573) | |
Depreciation and amortization | (6,552) | (5,792) | |
Other operating items, net | (573) | ||
Income from operations | 5,318 | 3,737 | |
Non-operating income (expense) | |||
Interest expense, net | (1,683) | (1,457) | |
Other, net | 18 | ||
Total non-operating expense, net | (1,683) | (1,439) | |
Income before income tax benefit (provision) | 3,635 | 2,298 | |
Income tax benefit (provision) | 1,707 | (59) | |
Net income | 5,342 | 2,239 | |
Total assets | 418,846 | 419,078 | $ 419,078 |
Operating Segments [Member] | Distributed Gaming [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 82,259 | 68,584 | |
Adjusted EBITDA | 13,106 | 10,221 | |
Preopening expenses | (209) | ||
Depreciation and amortization | (4,634) | (3,699) | |
Other operating items, net | (560) | ||
Income from operations | 8,263 | 5,962 | |
Non-operating income (expense) | |||
Interest expense, net | (42) | (35) | |
Total non-operating expense, net | (42) | (35) | |
Income before income tax benefit (provision) | 8,221 | 5,927 | |
Net income | 8,221 | 5,927 | |
Total assets | 300,128 | 294,822 | |
Operating Segments [Member] | Casinos [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 24,308 | 22,413 | |
Adjusted EBITDA | 6,302 | 4,764 | |
Depreciation and amortization | (1,571) | (1,769) | |
Income from operations | 4,731 | 2,995 | |
Non-operating income (expense) | |||
Interest expense, net | (4) | ||
Total non-operating expense, net | (4) | ||
Income before income tax benefit (provision) | 4,727 | 2,995 | |
Net income | 4,727 | 2,995 | |
Total assets | 105,638 | 108,418 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 79 | 37 | |
Adjusted EBITDA | (5,839) | (4,437) | |
Merger expenses | (41) | ||
Share-based compensation | (1,427) | (405) | |
Preopening expenses | (63) | ||
Depreciation and amortization | (347) | (324) | |
Other operating items, net | (13) | ||
Income from operations | (7,676) | (5,220) | |
Non-operating income (expense) | |||
Interest expense, net | (1,637) | (1,422) | |
Other, net | 18 | ||
Total non-operating expense, net | (1,637) | (1,404) | |
Income before income tax benefit (provision) | (9,313) | (6,624) | |
Income tax benefit (provision) | 1,707 | (59) | |
Net income | (7,606) | (6,683) | |
Total assets | 66,478 | 69,236 | |
Consolidation, Eliminations [Member] | |||
Non-operating income (expense) | |||
Total assets | $ (53,398) | $ (53,398) |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Stock options granted in period | 847,000 | 160,000 |
Grant of options exercise price | $ 7.70 | $ 10.24 |
Net revenues | $ 91,522,000 | $ 78,472,000 |
Gaming Expenses | $ 62,887,000 | 55,491,000 |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Lease for tavern locations remaining terms range | 14 years | |
Mr. Sartini [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Reimbursement expense paid | $ 100,000 | |
Due to related parties | 100,000 | |
Son of Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 79,000 | |
Percentage of eligible annual bonus on base salary | 50.00% | |
Stock options granted in period | 75,000 | |
Grant of options exercise price | $ 13.50 | |
Stock options vesting period | 4 years | |
Executive Vice President and Chief Legal Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Net revenues | $ 300,000 | |
Gaming Expenses | 300,000 | |
Executive Vice President and Chief Legal Officer [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 0 | |
Immediate Family Member of Management or Principal Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Net revenues | 500,000 | |
Gaming Expenses | 400,000 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Net revenues | 100,000 | |
Gaming Expenses | 100,000 | |
Lyle A. Berman [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 0 | |
Annual director fees | 200,000 | |
Consulting agreement expenses, related party | 100,000 | 100,000 |
Timothy J. Cope [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting agreement expenses, related party | 100,000 | |
Payments related to consulting agreements | $ 140,000 | |
Office Headquarters and Tavern Lease [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Lease for tavern locations remaining terms range | 15 years | |
Office Headquarters and Tavern Lease [Member] | Mr. Sartini [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of counterparty ownership by related party | 33.00% | |
Office Headquarters and Tavern Lease [Member] | Mr. Sartini's Immediate Family Members [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of counterparty ownership by related party | 5.00% | |
Office Headquarters and Tavern Lease [Member] | Stephen Arcana [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of counterparty ownership by related party | 3.00% | |
Office Headquarters [Member] | ||
Related Party Transaction [Line Items] | ||
Lease expiration date | Jul. 31, 2025 | |
Office Headquarters [Member] | Mr. Sartini [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 300,000 | 300,000 |
Rent expense payable to related party | 0 | |
Tavern Leases [Member] | Mr. Sartini [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | 300,000 | $ 400,000 |
Rent expense payable to related party | 0 | |
Office Headquarters Lease [Member] | Mr. Sartini [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Rental income for sublet portion | 100,000 | |
Base Salary [Member] | Son of Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 375,000 |