Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
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) | 27,387,626 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 133,694 | $ 90,579 |
Accounts receivable, net | 14,046 | 14,692 |
Prepaid expenses | 16,848 | 19,397 |
Inventories | 5,363 | 5,594 |
Other | 2,032 | 2,817 |
Total current assets | 171,983 | 133,079 |
Property and equipment, net | 883,978 | 895,241 |
Goodwill | 158,134 | 158,134 |
Intangible assets, net | 153,302 | 157,692 |
Deferred income taxes | 7,414 | 7,787 |
Other assets | 16,127 | 13,242 |
Total assets | 1,390,938 | 1,365,175 |
Current liabilities | ||
Current portion of long-term debt | 9,235 | 9,759 |
Accounts payable | 16,380 | 19,470 |
Accrued taxes, other than income taxes | 7,471 | 6,664 |
Accrued payroll and related | 19,454 | 22,570 |
Accrued liabilities | 21,635 | 20,373 |
Total current liabilities | 74,175 | 78,836 |
Long-term debt, net | 962,305 | 963,200 |
Other long-term obligations | 3,163 | 3,226 |
Total liabilities | 1,039,643 | 1,045,262 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity | ||
Common stock, $.01 par value; authorized 100,000 shares; 27,388 and 26,413 common shares issued and outstanding, respectively | 274 | 264 |
Additional paid-in capital | 426,952 | 399,510 |
Accumulated deficit | (75,931) | (79,861) |
Total shareholders' equity | 351,295 | 319,913 |
Total liabilities and shareholders' equity | $ 1,390,938 | $ 1,365,175 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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) | 27,388,000 | 26,413,000 |
Common stock, shares outstanding (in shares) | 27,388,000 | 26,413,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Gaming | $ 133,863 | $ 86,179 |
Food and beverage | 42,603 | 14,872 |
Rooms | 26,065 | 1,488 |
Other | 12,258 | 3,344 |
Total revenues | 214,789 | 105,883 |
Expenses | ||
Gaming | 77,688 | 58,996 |
Food and beverage | 33,592 | 13,013 |
Rooms | 11,565 | 473 |
Other operating | 3,996 | 3,277 |
Selling, general and administrative | 44,393 | 17,982 |
Depreciation and amortization | 25,237 | 6,552 |
Acquisition expenses | 1,112 | |
Preopening expenses | 448 | 272 |
Loss on disposal of property and equipment | 77 | |
Total expenses | 198,108 | 100,565 |
Operating income | 16,681 | 5,318 |
Non-operating income (expense) | ||
Interest expense, net | (14,743) | (1,683) |
Change in fair value of derivative | 3,211 | |
Total non-operating expense, net | (11,532) | (1,683) |
Income before income tax benefit (provision) | 5,149 | 3,635 |
Income tax benefit (provision) | (1,219) | 1,707 |
Net income | $ 3,930 | $ 5,342 |
Weighted-average common shares outstanding | ||
Basic | 27,149 | 22,238 |
Dilutive impact of stock options and restricted stock units | 2,379 | 529 |
Diluted | 29,528 | 22,767 |
Net income per share | ||
Basic | $ 0.14 | $ 0.24 |
Diluted | $ 0.13 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 3,930 | $ 5,342 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 25,237 | 6,552 |
Amortization of debt issuance costs and discounts on debt | 1,267 | 191 |
Share-based compensation | 1,844 | 1,427 |
Loss on disposal of property and equipment | 77 | |
Change in fair value of derivative | (3,211) | |
Deferred income taxes | 373 | (1,716) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 646 | 758 |
Income taxes | 846 | 2,146 |
Prepaid expenses | 2,542 | 181 |
Inventories and other current assets | 797 | (720) |
Other assets | 326 | (1,003) |
Accounts payable and other accrued expenses | (5,359) | (2,410) |
Accrued taxes, other than income taxes | 807 | (280) |
Other liabilities | (63) | 233 |
Net cash provided by operating activities | 30,059 | 10,701 |
Cash flows from investing activities | ||
Purchase of property and equipment | (10,242) | (5,680) |
Other investing activities | 28 | (75) |
Net cash used in investing activities | (10,214) | (5,755) |
Cash flows from financing activities | ||
Repayments of term loans | (2,000) | (3,000) |
Repayments of revolving credit facility | (3,000) | |
Repayments of notes payable | (108) | (696) |
Principal payments under capital leases | (229) | (136) |
Proceeds from issuance of common stock | 25,969 | 158 |
Stock issuance costs | (362) | |
Net cash provided by (used in) financing activities | 23,270 | (6,674) |
Cash and cash equivalents | ||
Net increase (decrease) for the period | 43,115 | (6,674) |
Balance, beginning of period | 90,579 | 46,898 |
Balance, end of period | 133,694 | 40,224 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 14,615 | 1,483 |
Non-cash investing and financing activities | ||
Payables incurred for capital expenditures | 1,652 | |
Assets acquired under capital lease obligations | $ 62 | $ 1,978 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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”) own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on resort casino operations and distributed gaming (including tavern gaming in the Company’s wholly-owned taverns). 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: Casinos and Distributed Gaming. The Company’s Casinos segment involves the operation of eight resort casino properties in Nevada and Maryland, comprising the Stratosphere Casino, Hotel & Tower (the “Stratosphere”), Arizona Charlie’s Decatur and Arizona Charlie’s Boulder in Las Vegas, Nevada, the Aquarius Casino Resort (the “Aquarius”) in Laughlin, Nevada, the Pahrump Nugget Hotel Casino (“Pahrump Nugget”), Gold Town Casino and Lakeside Casino & RV Park in Pahrump, Nevada, and the Rocky Gap Casino Resort in Flintstone, Maryland (“Rocky Gap”). The casino properties in Las Vegas and Laughlin, Nevada were added to the Company’s casino portfolio in October 2017 as a result of the Company’s acquisition of American Casino & Entertainment Properties LLC (“American”), as further described below. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns and liquor stores) in Nevada and Montana, and the operation of wholly-owned branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. On October 20, 2017, the Company completed the acquisition of all of the outstanding equity interests of American (the “American Acquisition”). The results of operations of American and its subsidiaries have been included in the Company’s results subsequent to that date. See Note 3, Acquisition In January 2018, the Company completed an underwritten public offering pursuant to its universal shelf registration statement, in which certain of the Company’s shareholders resold an aggregate of 6.5 million shares of the Company’s common stock, and the Company sold 975,000 newly issued shares of its common stock pursuant to the exercise in full of the underwriters’ over-allotment option to purchase additional shares. The Company’s net proceeds from the offering were approximately $25.6 million after deducting underwriting discounts and offering expenses. 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, 2017 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. New Accounting Pronouncements In May 2014 (amended January 2017), the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition model, Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers which created a new Topic 606 (“ASC 606”). The guidance is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP applicable to revenue transactions. Existing industry guidance was eliminated, including revenue recognition guidance specific to the gaming industry. The Company adopted the standard as of January 1, 2018, following the full retrospective approach. The accompanying financial statements and related disclosures reflect the effects of the new revenue standard. The most significant impacts of the adoption are summarized in Note 2, Revenue Recognition . In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash In January 2017, the FASB issued ASU 2017-01, Business Combinations In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Revenue Recognition Revenue from contracts with customers primarily consists of casino wagers, room sales, food and beverage transactions, rental income from the Company’s retail tenants and entertainment sales. These contracts can be written, oral or implied by customary business practices. Casino gaming revenues are the aggregate of gaming wins and losses. The commissions rebated to premium players for cash discounts and other cash incentives to patrons related to gaming play are recorded as a reduction to casino gaming revenues. Gaming contracts include a performance obligation to honor the patron’s wager and typically include a performance obligation to provide a product or service to the patron on a complimentary basis to incentivize gaming or in exchange for points earned under the Company’s loyalty programs. The Company generally enters into three types of slot and amusement device placement contracts as part of its distributed gaming business: space agreements, revenue share and participation agreements. Under space agreements, the Company pays a fixed monthly rental fee for the right to install, maintain and operate the Company’s slots at a business location. Under these agreements, the Company recognizes all gaming revenue and records fixed monthly rental fees as gaming expenses in the consolidated statement of operations. Under revenue share agreements, the Company pays the business location a percentage of the gaming revenue generated from the Company’s slots placed at the location. With regard to both space and revenue share agreements, the Company holds the applicable gaming license to conduct gaming at the location (although revenue share locations are required to obtain separate regulatory approval to receive a percentage of the gaming revenue). 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 slots. In Montana, the Company’s slot and amusement device placement contracts are all revenue share agreements. In its distributed gaming business, the Company considers its customer to be the gaming player since the Company controls all aspects of the slot machines. Due to the maintaining of control of the services directly before they are transferred to the customer, the Company is considered to be the principal in these transactions and therefore records revenue on a gross basis. For wagering contracts that include complimentary products and services provided by the Company to incentivize gaming, the Company allocates the stand-alone selling price of each product and service to the respective revenue type. Complimentary products or services provided under the Company's control and discretion, that are supplied by third parties, are recorded as an operating expense. For wagering contracts that include products and services provided to a patron in exchange for points earned under the Company’s loyalty programs, Golden Rewards®, ace|PLAY®, Gold Mine Rewards TM TM After allocation to the other revenue types for products and services provided to patrons as part of a wagering contract, the residual amount is recorded to casino gaming revenue as soon as the wager is settled. As all wagers have similar characteristics, the Company accounts for its gaming contracts collectively on a portfolio basis versus an individual basis. Revenue from leases is primarily recorded to other revenues and is generated from base rents through long-term leases with retail tenants. Base rent, adjusted for contractual escalations, is recognized on a straight-lined basis over the term of the related lease. Overage rent is paid by a tenant when its sales exceed an agreed upon minimum amount and is not recognized by the Company until the threshold is met. Food, beverage and retail revenues are recorded at the time of sale. Room revenue is recorded at the time of occupancy. Sales taxes and surcharges collected from customers and remitted to governmental authorities are presented on a net basis. Contract and Contract Related Liabilities The Company provides numerous products and services to its customers. There is often a timing difference between the cash payment by the customers and recognition of revenue for each of the associated performance obligations. The Company has the following main types of gaming liabilities associated with contracts with gaming customers: (1) outstanding chip liability, and (2) loyalty program liabilities. The outstanding chip liability represents the collective amounts owed to patrons in exchange for gaming chips in their possession. Outstanding chips are expected to be recognized as revenue or redeemed for cash within one year of being purchased. The loyalty program liabilities represent a deferral of revenue until patron redemption of points earned. The loyalty program points are expected to be redeemed and recognized as revenue within one year of being earned. As of March 31, 2018 and December 31, 2017, the amount of gaming liabilities was $12.6 million and $12.2 million, respectively. Customer deposits and other deferred revenue represent cash deposits made by customers for future non-gaming services to be provided by the Company. With the exception of tenant deposits, which are tied to the terms of the lease and typically extend beyond a year, the majority of these customer deposits and other deferred revenue are expected to be recognized as revenue or refunded to the customer within one year of the date the deposit was recorded. Significant Impacts of Adoption of ASC 606 The adoption of ASC 606 principally affected the presentation of promotional allowances and how the Company measured the liability associated with its loyalty programs. The promotional allowances line item was eliminated from the consolidated statement of operations with amounts being deducted from the respective revenue line items, and the cost of providing such complimentaries is no longer included in gaming expense. Additionally, the valuation of points associated with the Company’s loyalty programs was changed from cost to fair value, with the Company recording an increase to the loyalty point liability. Furthermore, as a result of the adoption of the new standard, certain adjustments and other reclassifications to and between revenue categories and to and between expense categories were required; however, the amounts associated with such adjustments did not have a significant impact on the Company’s previously reported operating income or net income. The Company elected to adopt the full retrospective method to apply the new guidance to each prior reporting period presented as if it had been in effect since January 1, 2015, with a pre-tax cumulative effect of the adoption recognized as a decrease in retained earnings of $1.1 million on January 1, 2017, related to its loyalty program point liability. Adoption of the new standard did not have a significant impact on the Company’s previously reported net revenues, expenses, operating income, and net income. The impact of adoption of the new standard to previously reported selected financial statement information was as follows: Three Months Ended March 31, 2017 (In thousands) As Reported Adjustments As Adjusted Gross revenues $ 112,135 $ (6,252 ) $ 105,883 Promotional allowances (5,489 ) 5,489 — Net revenues 106,646 (763 ) 105,883 Operating income 5,318 — 5,318 Net income 5,342 — 5,342 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 – Acquisition Overview On October 20, 2017, the Company completed the acquisition of all of the outstanding equity interests of American for aggregate consideration of $787.6 million in cash (after giving effect to post-closing adjustments) and the issuance by the Company of approximately 4.0 million shares of its common stock to W2007/ACEP Holdings, LLC (“ACEP Holdings”), a former American equity holder. The fair value of the Company’s common stock issued to ACEP Holdings was $101.5 million, based on the closing price of the Company’s common stock on October 20, 2017 of $25.08 per share. Acquisition Method of Accounting The American Acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations Under ASC 805, the purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill and will allocate goodwill to each of the business segments at the conclusion of the measurement period. Pro Forma Combined Financial Information The following unaudited pro forma combined financial information has been prepared by management for illustrative purposes only and does not purport to represent what the results of operations, financial condition or other financial information of the Company would have been if the American Acquisition had occurred on January 1, 2016, or what such results or financial condition will be for any future periods. The unaudited pro forma combined financial information is based on preliminary estimates and assumptions and on the information available at the time of the preparation thereof. These preliminary estimates and assumptions may change, be revised or prove to be materially different, and the estimates and assumptions may not be representative of facts existing at the time of the American Acquisition. The unaudited pro forma combined financial information does not reflect non-recurring charges that will be incurred in connection with the American Acquisition, nor any cost savings and synergies expected to result from the American Acquisition (and associated costs to achieve such savings or synergies), nor any costs associated with severance, restructuring or integration activities resulting from the American Acquisition. The following table summarizes certain unaudited pro forma combined financial information derived from a combination of the historical consolidated financial statements of the Company and of American for the three months ended March 31 2017, adjusted to give effect to the American Acquisition, related transactions (including the refinancing), and the adoption of ASC 606. Three Months Ended (In thousands, except per share data) March 31, 2017 Pro forma combined revenues $ 210,771 Pro forma combined net income 11,466 Weighted-average common shares outstanding: Basic 26,284 Diluted 26,813 Pro forma combined net income per share: Basic $ 0.44 Diluted 0.43 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 4 – Property and Equipment, Net Property and equipment, net, consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Land $ 121,081 $ 121,081 Building and site improvements 710,084 705,266 Furniture and equipment 130,040 125,339 Construction in process 6,988 6,972 Property and equipment 968,193 958,658 Less: Accumulated depreciation (84,215 ) (63,417 ) Property and equipment, net $ 883,978 $ 895,241 Depreciation expense for property and equipment, including capital leases, was $20.8 million and $4.6 million for the three months ended March 31, 2018 and 2017, respectively. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Note 5 – Accrued Liabilities Accrued liabilities consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Gaming liabilities $ 12,588 $ 12,209 Interest 630 1,770 Income taxes payable 628 - Deposits 3,277 - Other accrued liabilities 4,512 6,394 Total accrued liabilities $ 21,635 $ 20,373 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt, net, consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Term loans $ 998,000 $ 1,000,000 Capital lease obligations 5,673 5,839 Notes payable 639 1,159 Total long-term debt 1,004,312 1,006,998 Less unamortized discount (29,003 ) (30,122 ) Less unamortized debt issuance costs (3,769 ) (3,917 ) 971,540 972,959 Less current maturities (9,235 ) (9,759 ) Long-term debt, net $ 962,305 $ 963,200 Senior Secured Credit Facilities As of March 31, 2018, the Company’s senior secured credit facilities consisted of a $900 million senior secured first lien credit facility (consisting of $800 million in term loans and a $100 million revolving credit facility) with JPMorgan Chase Bank, N.A. (as administrative agent and collateral agent), the lenders party thereto and the other entities party thereto (the “First Lien Facility”), and a $200 million senior secured second lien term loan facility with Credit Suisse AG, Cayman Islands Branch (as administrative agent and collateral agent), the lenders party thereto and the other entities party thereto (the “Second Lien Term Loan” and, together with the First Lien Facility, the “Credit Facilities”). As of March 31, 2018, $798 million and $200 million of term loan borrowings were outstanding under the Company’s First Lien Facility and Second Lien Term Loan, respectively, there were no letters of credit outstanding under the First Lien Facility, and the Company’s revolving credit facility was undrawn, leaving borrowing availability under the revolving credit facility as of March 31, 2018 of $100 million. As of March 31, 2018, the weighted-average effective interest rate on the Company’s outstanding borrowings under the Credit Facilities was approximately 5.4%. The revolving credit facility under the First Lien Facility matures on October 20, 2022, and the term loans under the First Lien Facility mature on October 20, 2024. The term loan under the First Lien Facility must be repaid in 27 quarterly installments of $2 million each, which commenced in March 2018, followed by a final installment of $746 million at maturity. The term loans under the Second Lien Term Loan must be repaid in full at maturity on October 20, 2025. The Company was in compliance with its financial covenants under the Credit Facilities as of March 31, 2018. |
Stock Incentive Plans and Share
Stock Incentive Plans and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plans and Share-Based Compensation | Note 7 – Stock Incentive Plans and Share-Based Compensation As of March 31, 2018, 861,460 shares of the Company’s common stock were available for grants of awards under the Company’s 2015 Incentive Award Plan (the “2015 Plan”), which includes the annual increase in the number of shares available for grant on January 1, 2018 of 1,056,505 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. Stock Options The following table summarizes the Company’s stock option activity: Stock Options Weighted- Average Shares Exercise Price Outstanding at January 1, 2018 4,375,929 $ 10.73 Granted — Exercised/Vested — Cancelled (10,000 ) $ 13.50 Outstanding at March 31, 2018 4,365,929 $ 10.72 Vested at March 31, 2018 2,217,753 $ 8.63 Exercisable at March 31, 2018 388,040 $ 4.33 Share-based compensation expense related to stock options was $1.5 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively. The Company’s unrecognized share-based compensation expense related to stock options was approximately $11.4 million as of March 31, 2018, which is expected to be recognized over a weighted-average period of 2.5 years. Restricted Stock Units and Performance Stock Units On March 14, 2018, the Compensation Committee of the Board of Directors of the Company approved a new long-term incentive structure for equity awards to be granted to the executive officers of the Company under the 2015 Plan. Under this new structure, commencing in the first quarter of 2018, the executive officers of the Company receive long-term equity awards in a combination of time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). The number of PSUs that will be eligible to vest will be determined based on the Company’s attainment of performance goals set by the Compensation Committee. Following the two-year performance period, the number of “vesting eligible” PSUs will then be subject to one additional year of time-based vesting. Share-based compensation costs related to RSU and PSU awards are calculated based on the market price on the date of the grant. The following table summarizes the Company’s RSU and PSU activity: RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2018 — 62,791 $ 27.87 Granted 205,351 $ 28.72 108,957 $ 28.72 Exercised/Vested — — Cancelled — — Outstanding at March 31, 2018 205,351 $ 28.72 171,748 $ 28.41 __________________ (1) The number of Shares listed for PSUs represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs. With respect to 108,957 of the listed “target” number of PSUs, 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. Outstanding PSUs as of December 31, 2017 were combined with the RSUs in the Company’s Annual Report on Form 10-K previously filed with the SEC. Share-based compensation expense related to RSUs was $0.2 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively. Share-based compensation expense related to PSUs was $0.2 million for the three months ended March 31, 2018 and none during the three months ended March 31, 2017. As of March 31, 2018, there was $5.7 million and $4.7 million of unamortized compensation expense related to unvested RSUs and PSUs, respectively, which is expected to be recognized over a weighted-average period of 2.0 years for RSUs and 3.2 years for PSUs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The Company’s effective tax rate was 23.7% and (46.4)% for the three months ended March 31, 2018 and 2017, respectively. Income tax expense was $1.2 million for the three months ended March 31, 2018, which was attributed primarily to financial reporting expenditures that are not deductible for tax purposes. 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 on deferred tax assets. 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 continues to evaluate its deferred tax asset valuation allowance on a quarterly basis. The Company concluded that, as of December 31, 2017, 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. The Company’s income taxes payable was $0.6 million as of March 31, 2018, and its income taxes receivable was $0.2 million as of December 31, 2017. As of March 31, 2018, the Company had approximately $65.7 million of federal net operating loss carryforwards (“NOLs”) which will begin to expire in 2032. These NOLs have the potential to be used to offset future ordinary taxable income and reduce future cash tax liabilities. However, in connection with the American Acquisition, the Company issued approximately 4.0 million shares of its common stock to ACEP Holdings, which resulted in an “ownership change” under Section 382 that will generally limit the amount of NOLs the Company can utilize annually. Following an “ownership change” under Section 382, the amount of NOLs the Company can utilize in a given year is limited to an amount equal to the aggregate fair market value of the Company’s common stock immediately prior to the ownership change, multiplied by the long-term exempt interest rate in effect for the month of the ownership change. The Company estimates that it will be able to utilize approximately $10.8 million of NOLs annually. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate income tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. As of March 31, 2018, the Company had not completed its accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances. For any amounts the Company has not been able to make a reasonable estimate, it will continue to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. In all cases, the Company will continue to make and refine its calculations as additional analysis is completed. In addition, the Company’s estimates may also be affected as it gains a more thorough understanding of the Tax Act. Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin (“SAB”) No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed. SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the Tax Act. Several provisions of the Tax Act have significant impact on the Company’s U.S. tax attributes, generally consisting of credits and loss carry-forwards. Although the Company has made a reasonable estimate of the gross amounts of the attributes disclosed, the Company is continuing to analyze certain aspects of the Tax Act and is refining its calculations which could potentially affect the measurements of these balances or potentially give rise to new deferred tax amounts. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 9 – Financial Instruments and Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Thus, assets and liabilities categorized as Level 3 may be measured at fair value using inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The carrying values of cash and cash equivalents, accounts receivable and payable, short-term borrowings and accrued and other current liabilities approximate fair value because of the short duration of these financial instruments. As of March 31, 2018 and December 31, 2017, the fair value of the Company’s long-term debt approximated the carrying value because the terms were recently negotiated and based upon the Company’s expected borrowing rate for debt with similar remaining maturities and comparable risk. Indefinite-lived intangible assets are subject to an annual assessment for impairment during the fourth quarter, or more frequently if there are indications of possible impairment, by applying a fair-value-based test. As of March 31, 2018, the Company had one derivative instrument outstanding from which the Company will receive cash payments at the end of each period in which the interest rate exceeds the agreed upon strike price (the “Interest Rate Cap”), with a notional amount of $650 million, which expires on December 31, 2020. Using Level 2 inputs, the Company adjusts the carrying value of its Interest Rate Cap derivative to estimate fair value quarterly. The fair value of the Company’s asset under its Interest Rate Cap is based upon observable market-based inputs that reflect the present values of the difference between estimated future fixed rate payments and future variable receipts. Fair value of the Company’s Interest Rate Cap at March 31, 2018 was $6.5 million. As the Company elected to not apply hedge accounting, the change in fair value of this Interest Rate Cap was recorded on the consolidated statement of operations. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2018 | |
Gain Loss On Sale Of Loans And Leases [Abstract] | |
Leases | Note 10 – Leases Rental Income The Company recorded rental revenue of $1.7 million for the three months ended March 31, 2018 and a de minmis amount for the three months ended March 31, 2017. Rent Expense The Company leases its branded tavern locations, office headquarters building, land, equipment and vehicles under noncancelable operating leases that are not subject to contingent rents. Slot placement contracts in the form of space agreements are also accounted for as operating leases. Under space agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. The Company leases one of its tavern locations and its office headquarters building from a related party. See Note 13, Related Party Transactions, Operating lease rental expense associated with all operating leases, which is calculated on a straight-line basis, is as follows: Three Months Ended March 31, (In thousands) 2018 2017 Space lease agreements $ 9,419 $ 9,527 Related party leases 408 576 Other operating leases 3,593 3,185 Total rent expense $ 13,420 $ 13,288 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies Participation and Revenue Share Agreements In addition to the space lease agreements described above in Note 10, Leases 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 each of the three months ended March 31, 2018 and 2017, the total contingent payments recognized by the Company as other operating expenses for amusement devices and ATMs under such agreements were $0.4 million. 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, including proceedings concerning labor and employment matters, personal injury claims, breach of contract claims, commercial disputes, business practices, intellectual property, tax and other matters for which the Company has recorded reserves of $1.5 million for claims as of the date of this filing. Although lawsuits, claims, investigations and other legal proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its currently pending matters should not have a material adverse effect on its business, financial condition, results of operations or liquidity. Regardless of the outcome, legal proceedings can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. In addition, it is possible that an unfavorable resolution of one or more such proceedings could in the future materially and adversely affect the Company’s business, financial condition, results of operations or liquidity in a particular period. In 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 that 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. In the second half of 2017, the Company agreed to settle the first of these two cases, subject to court approval. The second case is in the discovery phase. In February 2018, a prior guest of the Stratosphere filed a purported class action complaint against the Company in the United States District Court, District of Nevada, on behalf of similarly situated individuals and entities that paid the Clark County Combined Transient Lodging Tax (“Tax”) on the portion of a resort fee that constitutes charges for Internet access, during the period of February 6, 2014 through the date the alleged conduct ceases. The lawsuit alleges that the Tax was charged in violation of the federal Internet Tax Freedom Act, which imposes a national moratorium on the taxation of Internet access by states and their political subdivisions, and seeks, on behalf of the plaintiff and the putative class, damages equal to the amount of the Tax collected on the Internet access component of the resort fee, injunctive relief, disgorgement, interest, fees and costs. The Company has not yet been served with the complaint. In the event a complaint is served on the Company, it anticipates being accorded a stay to respond in connection with an agreement that other hotel casino operators have entered into with regard to case consolidation while the federal court reviews subject matter jurisdiction. This case is 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 this matter. While legal proceedings are inherently unpredictable and no assurance can be given as to the ultimate outcome of any of the above 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 its financial position, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the ownership and operation of eight resort casino properties in Nevada and Maryland. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns and liquor stores) in Nevada and Montana, and the operation of wholly-owned branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable operating segments because these costs are not easily allocable and to do so would not be practical. Results of Operations - Segment Net Income (Loss), Revenues and Adjusted EBITDA The Company evaluates each segment’s profitability based upon such segment’s Adjusted EBITDA, which represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening expense, acquisition expenses, class action litigation expenses, share-based compensation expenses, executive severance, gain/loss on disposal of property and equipment and other gains and losses, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles Adjusted EBITDA to net income (loss): Three Months Ended March 31, 2018 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 64,459 $ 69,404 $ — $ 133,863 Food and beverage 29,996 12,607 — 42,603 Rooms 26,065 — — 26,065 Other 9,967 2,150 141 12,258 Total revenues $ 130,487 $ 84,161 $ 141 $ 214,789 Net income (loss) $ 23,841 $ 7,448 $ (27,359 ) $ 3,930 Depreciation and amortization 19,635 5,148 454 25,237 Acquisition expenses — — 1,112 1,112 Loss on disposal of property and equipment 62 15 — 77 Share-based compensation — — 1,844 1,844 Preopening expenses — 148 300 448 Class action litigation expenses 13 — 104 117 Executive severance 51 35 101 187 Other, net 24 167 — 191 Interest expense, net 24 46 14,673 14,743 Change in fair value of derivative — — (3,211 ) (3,211 ) Income tax provision — — 1,219 1,219 Adjusted EBITDA $ 43,650 $ 13,007 $ (10,763 ) $ 45,894 Three Months Ended March 31, 2017 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 18,324 $ 67,855 $ — $ 86,179 Food and beverage 3,408 11,464 — 14,872 Rooms 1,488 — — 1,488 Other 1,071 2,195 78 3,344 Total revenues $ 24,291 $ 81,514 $ 78 $ 105,883 Net income (loss) $ 4,727 $ 8,221 $ (7,606 ) $ 5,342 Depreciation and amortization 1,571 4,634 347 6,552 Share-based compensation — — 1,427 1,427 Preopening expenses — 209 63 272 Interest expense, net 4 42 1,637 1,683 Income tax benefit — — (1,707 ) (1,707 ) Adjusted EBITDA $ 6,302 $ 13,106 $ (5,839 ) $ 13,569 Total Segment Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2018 $ 1,036,327 $ 296,796 $ 57,815 $ 1,390,938 Balance at December 31, 2017 $ 1,039,025 $ 298,453 $ 27,697 $ 1,365,175 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13 – Related Party Transactions As of March 31, 2018, the Company leased its office headquarters building from a company 33% beneficially owned by Blake L. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Stephen A. Arcana. The rent expense for the office headquarters building was $0.3 million during each of the three months ended March 31, 2018 and 2017, and there was $0.1 million owed by the Company with respect to such lease as of March 31, 2018 and December 31, 2017. Additionally, a portion of the office headquarters building was sublet to a company owned or controlled by Mr. Sartini. There was less than $0.1 million of rental income for each of the three months ended March 31, 2018 and 2017, and no amounts were owed to the Company at March 31, 2018 or December 31, 2017. 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, 2018, the Company leased one tavern location from a trust 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. In addition, a second tavern location that the Company had previously leased from related parties was sold in January 2018 to an unrelated third party. The rent expense for tavern locations leased from related parties (including sold tavern locations for the periods in which the leases were with related parties) was $0.1 million and $0.3 million during the three months ended March 31, 2018 and 2017, respectively, and there were no amounts owed by the Company with respect to such leases as of March 31, 2018 and December 31, 2017. During each of the three months ended March 31, 2018 and 2017, the Company paid less than $0.1 million under aircraft timesharing agreements between the Company and Sartini Enterprises, Inc. a company controlled by Mr. Sartini. There was less than $0.1 million owed by the Company under the aircraft timesharing agreements as of March 31, 2018 and December 31, 2017 During the three months ended March 31, 2018 and 2017, the Company recorded revenues of $0.3 million in each period and the Company recorded gaming expenses of $0.2 million and $0.3 million, respectively, related to the use of the Company’s slots at a distributed gaming location owned in part by Sean T. Higgins, who serves as the Company’s Executive Vice President of Compliance and Governmental Affairs and Chief Legal Officer. and December 31, 2017 During each of the three months ended March 31, 2018 and 2017, Company recorded selling, general and administrative (“SG&A”) expenses payable by the Company as and December 31, 2017 . The consulting agreement expires on July 31, 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events The Company’s management evaluates subsequent events through the date of issuance of the consolidated financial statements. There have been no subsequent events that occurred during such period that would require adjustment to or disclosure in the consolidated financial statements as of and for the three months March 31, 2018. |
Nature of Business and Basis 20
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 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. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014 (amended January 2017), the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition model, Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers which created a new Topic 606 (“ASC 606”). The guidance is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP applicable to revenue transactions. Existing industry guidance was eliminated, including revenue recognition guidance specific to the gaming industry. The Company adopted the standard as of January 1, 2018, following the full retrospective approach. The accompanying financial statements and related disclosures reflect the effects of the new revenue standard. The most significant impacts of the adoption are summarized in Note 2, Revenue Recognition . In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash In January 2017, the FASB issued ASU 2017-01, Business Combinations In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2014-09 | |
Summary of Impact of Adoption of the New Standard to Previously Reported Selected Financial Statement Information | The impact of adoption of the new standard to previously reported selected financial statement information was as follows: Three Months Ended March 31, 2017 (In thousands) As Reported Adjustments As Adjusted Gross revenues $ 112,135 $ (6,252 ) $ 105,883 Promotional allowances (5,489 ) 5,489 — Net revenues 106,646 (763 ) 105,883 Operating income 5,318 — 5,318 Net income 5,342 — 5,342 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ACEP Holdings [Member] | |
Summary of Unaudited Pro Forma Combined Financial Information | The following table summarizes certain unaudited pro forma combined financial information derived from a combination of the historical consolidated financial statements of the Company and of American for the three months ended March 31 2017, adjusted to give effect to the American Acquisition, related transactions (including the refinancing), and the adoption of ASC 606. Three Months Ended (In thousands, except per share data) March 31, 2017 Pro forma combined revenues $ 210,771 Pro forma combined net income 11,466 Weighted-average common shares outstanding: Basic 26,284 Diluted 26,813 Pro forma combined net income per share: Basic $ 0.44 Diluted 0.43 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net, consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Land $ 121,081 $ 121,081 Building and site improvements 710,084 705,266 Furniture and equipment 130,040 125,339 Construction in process 6,988 6,972 Property and equipment 968,193 958,658 Less: Accumulated depreciation (84,215 ) (63,417 ) Property and equipment, net $ 883,978 $ 895,241 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Gaming liabilities $ 12,588 $ 12,209 Interest 630 1,770 Income taxes payable 628 - Deposits 3,277 - Other accrued liabilities 4,512 6,394 Total accrued liabilities $ 21,635 $ 20,373 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net, consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Term loans $ 998,000 $ 1,000,000 Capital lease obligations 5,673 5,839 Notes payable 639 1,159 Total long-term debt 1,004,312 1,006,998 Less unamortized discount (29,003 ) (30,122 ) Less unamortized debt issuance costs (3,769 ) (3,917 ) 971,540 972,959 Less current maturities (9,235 ) (9,759 ) Long-term debt, net $ 962,305 $ 963,200 |
Stock Incentive Plans and Sha26
Stock Incentive Plans and Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity: Stock Options Weighted- Average Shares Exercise Price Outstanding at January 1, 2018 4,375,929 $ 10.73 Granted — Exercised/Vested — Cancelled (10,000 ) $ 13.50 Outstanding at March 31, 2018 4,365,929 $ 10.72 Vested at March 31, 2018 2,217,753 $ 8.63 Exercisable at March 31, 2018 388,040 $ 4.33 |
Summary of RSU and PSU Activity | The following table summarizes the Company’s RSU and PSU activity: RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2018 — 62,791 $ 27.87 Granted 205,351 $ 28.72 108,957 $ 28.72 Exercised/Vested — — Cancelled — — Outstanding at March 31, 2018 205,351 $ 28.72 171,748 $ 28.41 __________________ (1) The number of Shares listed for PSUs represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs. With respect to 108,957 of the listed “target” number of PSUs, 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Schedule of Operating Lease Rental Expense | Operating lease rental expense associated with all operating leases, which is calculated on a straight-line basis, is as follows: Three Months Ended March 31, (In thousands) 2018 2017 Space lease agreements $ 9,419 $ 9,527 Related party leases 408 576 Other operating leases 3,593 3,185 Total rent expense $ 13,420 $ 13,288 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended March 31, 2018 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 64,459 $ 69,404 $ — $ 133,863 Food and beverage 29,996 12,607 — 42,603 Rooms 26,065 — — 26,065 Other 9,967 2,150 141 12,258 Total revenues $ 130,487 $ 84,161 $ 141 $ 214,789 Net income (loss) $ 23,841 $ 7,448 $ (27,359 ) $ 3,930 Depreciation and amortization 19,635 5,148 454 25,237 Acquisition expenses — — 1,112 1,112 Loss on disposal of property and equipment 62 15 — 77 Share-based compensation — — 1,844 1,844 Preopening expenses — 148 300 448 Class action litigation expenses 13 — 104 117 Executive severance 51 35 101 187 Other, net 24 167 — 191 Interest expense, net 24 46 14,673 14,743 Change in fair value of derivative — — (3,211 ) (3,211 ) Income tax provision — — 1,219 1,219 Adjusted EBITDA $ 43,650 $ 13,007 $ (10,763 ) $ 45,894 Three Months Ended March 31, 2017 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 18,324 $ 67,855 $ — $ 86,179 Food and beverage 3,408 11,464 — 14,872 Rooms 1,488 — — 1,488 Other 1,071 2,195 78 3,344 Total revenues $ 24,291 $ 81,514 $ 78 $ 105,883 Net income (loss) $ 4,727 $ 8,221 $ (7,606 ) $ 5,342 Depreciation and amortization 1,571 4,634 347 6,552 Share-based compensation — — 1,427 1,427 Preopening expenses — 209 63 272 Interest expense, net 4 42 1,637 1,683 Income tax benefit — — (1,707 ) (1,707 ) Adjusted EBITDA $ 6,302 $ 13,106 $ (5,839 ) $ 13,569 Total Segment Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2018 $ 1,036,327 $ 296,796 $ 57,815 $ 1,390,938 Balance at December 31, 2017 $ 1,039,025 $ 298,453 $ 27,697 $ 1,365,175 |
Nature of Business and Basis 29
Nature of Business and Basis of Presentation (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018USD ($)shares | Mar. 31, 2018USD ($)SegmentProperty | Mar. 31, 2017USD ($) | |
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of reportable operating segments | Segment | 2 | ||
Proceeds from issuance of common stock | $ | $ 25,969 | $ 158 | |
Initial Public Offering [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Common stock shares resold by shareholders | shares | 6,500,000 | ||
Newly issued shares of common stock | shares | 975,000 | ||
Proceeds from issuance of common stock | $ | $ 25,600 | ||
Nevada and Maryland [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of resort casino properties | Property | 8 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Gaming liabilities | $ 12,588 | $ 12,209 | |
Accumulated deficit | $ (75,931) | $ (79,861) | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect Before and After Topic 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ (1,100) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of the New Standard to Previously Reported Selected Financial Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Gross revenues | $ 105,883 | |
Net revenues | $ 214,789 | 105,883 |
Operating income | 16,681 | 5,318 |
Net income | $ 3,930 | 5,342 |
Accounting Standards Update 2014-09 | As Reported | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Gross revenues | 112,135 | |
Promotional allowances | (5,489) | |
Net revenues | 106,646 | |
Operating income | 5,318 | |
Net income | 5,342 | |
Accounting Standards Update 2014-09 | Adjustments | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Gross revenues | (6,252) | |
Promotional allowances | 5,489 | |
Net revenues | $ (763) |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - ACEP Holdings [Member] $ / shares in Units, shares in Millions, $ in Millions | Oct. 20, 2017USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Business acquisition, date of acquisition | Oct. 20, 2017 |
Consideration paid, cash | $ 787.6 |
Consideration paid, shares issued | shares | 4 |
Fair value of common stock issued to ACEP Holdings | $ 101.5 |
Closing price per share of common stock | $ / shares | $ 25.08 |
Summary of Unaudited Pro Forma
Summary of Unaudited Pro Forma Combined Financial Information (Details) - American Acquisition [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Pro forma combined revenues | $ | $ 210,771 |
Pro forma combined net income | $ | $ 11,466 |
Weighted-average common shares outstanding: | |
Basic | $ / shares | $ 0.44 |
Diluted | $ / shares | $ 0.43 |
Pro forma combined net income per share: | |
Basic | shares | 26,284 |
Diluted | shares | 26,813 |
Components of Property and Equi
Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 968,193 | $ 958,658 |
Less: Accumulated depreciation | (84,215) | (63,417) |
Property and equipment, net | 883,978 | 895,241 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 121,081 | 121,081 |
Building and Site Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 710,084 | 705,266 |
Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 130,040 | 125,339 |
Construction in process [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 6,988 | $ 6,972 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation Expense | $ 20.8 | $ 4.6 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Gaming liabilities | $ 12,588 | $ 12,209 |
Interest | 630 | 1,770 |
Income taxes payable | 628 | |
Deposits | 3,277 | |
Other accrued liabilities | 4,512 | 6,394 |
Total accrued liabilities | $ 21,635 | $ 20,373 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Term loans | $ 998,000 | $ 1,000,000 |
Capital lease obligations | 5,673 | 5,839 |
Notes payable | 639 | 1,159 |
Total long-term debt | 1,004,312 | 1,006,998 |
Less unamortized discount | (29,003) | (30,122) |
Less unamortized debt issuance costs | (3,769) | (3,917) |
Long-term Debt | 971,540 | 972,959 |
Less current maturities | (9,235) | (9,759) |
Long-term debt, net | $ 962,305 | $ 963,200 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) | 3 Months Ended | |
Mar. 31, 2018USD ($)Installment | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Debt Instrument, Outstanding Amount | $ 971,540,000 | $ 972,959,000 |
Senior Secured First Lien Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 900,000,000 | |
Senior Secured First Lien Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000,000 | |
Line of Credit Facility, Undrawn | $ 100,000,000 | |
Line of Credit Facility, Expiration Date | Oct. 20, 2022 | |
Senior Secured First Lien Credit Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Outstanding Amount | $ 0 | |
Senior Secured First Lien Credit Facility [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 800,000,000 | |
Debt Instrument, Outstanding Amount | $ 798,000,000 | |
Debt Instrument, Maturity Date | Oct. 20, 2024 | |
Debt Instrument, Number of Quarterly Payments | Installment | 27 | |
Debt Instrument, Periodic Payment | $ 2,000,000 | |
Debt Instrument, Commencement Date of Quarterly Payments | Mar. 31, 2018 | |
Debt Instrument, Final Installment | $ 746,000,000 | |
Senior Secured Second Lien Credit Facility [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 200,000,000 | |
Debt Instrument, Outstanding Amount | $ 200,000,000 | |
Debt Instrument, Maturity Date | Oct. 20, 2025 | |
Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 5.40% |
Stock Incentive Plans and Sha39
Stock Incentive Plans and Share-Based Compensation (Details Textual) - USD ($) | Jan. 02, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Employee Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 1,500,000 | $ 1,000,000 | |
Stock Options, Unrecognized Share-based Compensation Expense | $ 11,400,000 | ||
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 2 years 6 months | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 200,000 | 400,000 | |
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 2 years | ||
Unamortized Compensation Expense Related to Unvested Units | $ 5,700,000 | ||
Performance Stock Units (PSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 200,000 | $ 0 | |
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 3 years 2 months 12 days | ||
Unamortized Compensation Expense Related to Unvested Units | $ 4,700,000 | ||
2015 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common Stock Avialable for Grants of Awards | 861,460 | ||
Number of Shares Available for Grant Annual Increase | 1,056,505 | ||
Performance Stock Units Vesting Period | 2 years | ||
2015 Plan [Member] | Time Based Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance Stock Units Vesting Period | 1 year |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Stock Options Outstanding | |
Stock Options Outstanding, Beginning of year | shares | 4,375,929 |
Stock Options Outstanding, Cancelled | shares | (10,000) |
Stock Options Outstanding, End of year | shares | 4,365,929 |
Stock Options Outstanding, Vested | shares | 2,217,753 |
Stock Options Outstanding, Exercisable | shares | 388,040 |
Weighted-Average Exercise Price | |
Weighted-Average Exercise Price, beginning of year | $ / shares | $ 10.73 |
Weighted Average Exercise Price, Cancelled | $ / shares | 13.50 |
Weighted-Average Exercise Price, end of year | $ / shares | 10.72 |
Weighted Average Exercise Price, Vested | $ / shares | 8.63 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 4.33 |
Summary of RSU and PSU Activity
Summary of RSU and PSU Activity (Details) - 2015 Plan [Member] | 3 Months Ended | |
Mar. 31, 2018$ / sharesshares | ||
RSUs | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Granted | shares | 205,351 | |
Restricted Stock Units Outstanding, End of year | shares | 205,351 | |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 28.72 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 28.72 | |
PSUs | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Beginning of year | shares | 62,791 | [1] |
Restricted Stock Units Outstanding, Granted | shares | 108,957 | [1] |
Restricted Stock Units Outstanding, End of year | shares | 171,748 | [1] |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Beginning of year | $ / shares | $ 27.87 | [1] |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 28.72 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 28.41 | |
[1] | The number of Shares listed for PSUs represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs. With respect to 108,957 of the listed “target” number of PSUs, 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. |
Summary of RSU and PSU Activi42
Summary of RSU and PSU Activity (Parenthetical) (Details) - Performance Stock Units (PSUs) [Member] - 2015 Plan [Member] | 3 Months Ended | |
Mar. 31, 2018shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target number of PSU's eligible to vest at "maximum" performance level | 108,957 | [1] |
Percentage of target number of PSU's eligible to vest at "maximum" performance level | 200.00% | |
[1] | The number of Shares listed for PSUs represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs. With respect to 108,957 of the listed “target” number of PSUs, 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Income Tax Expense (Benefit) | $ 1,219 | $ (1,707) | |
Corporate income tax rate | 21.00% | 35.00% | |
ACEP Holdings [Member] | |||
Income Tax Disclosure [Line Items] | |||
Share issuance related to business combination (in shares) | 4 | ||
Amount of net operating losses limit that can be utilized annually | $ 10,800 | ||
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | $ 65,700 | ||
Operating loss carryforwards expiration year | 2,032 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income Taxes Payable | $ 600 | ||
Income Taxes Receivable | $ 200 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Effective Tax Rate, Percent | 23.70% | (46.40%) | |
Income Tax Expense (Benefit) | $ 1,200 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Reversal of Valuation Allowance of Deferred Tax Assets [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income Tax Expense (Benefit) | $ (1,700) |
Financial Instruments and Fai44
Financial Instruments and Fair Value Measurements (Details Textual) - Interest Rate Swap [Member] - Not Designated as Accounting Hedge [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)Agreement | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Derivative instrument, number of outstanding agreement | Agreement | 1 |
Derivative instrument, notional amount | $ 650 |
Derivative instrument, expiration date | Dec. 31, 2020 |
Level 2 [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value liability | $ 6.5 |
Leases (Details Textual)
Leases (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)aParcel | |
Lessor Lease Description [Line Items] | |
Rental revenue | $ | $ 1.7 |
Gold Town Casino [Member] | Nevada [Member] | |
Lessor Lease Description [Line Items] | |
Number of Leased Parcels of Land | Parcel | 4 |
Rocky Gap State Park [Member] | Maryland DNR [Member] | |
Lessor Lease Description [Line Items] | |
Area Of Land | a | 270 |
Schedule of Operating Lease Ren
Schedule of Operating Lease Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leased Assets [Line Items] | ||
Total rent expense | $ 13,420 | $ 13,288 |
Space Lease Agreements [Member] | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | 9,419 | 9,527 |
Related Party Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | 408 | 576 |
Other Operating Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | $ 3,593 | $ 3,185 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | $ 77,688 | $ 58,996 |
Other Operating Expenses | 3,996 | 3,277 |
Amount recorded for claims | $ 1,500 | |
Class action lawsuits filed by former employees | February and April 2017 | |
Number of class action lawsuits filed by former employees | 2 | |
Participation and Revenue Share Agreements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | $ 37,100 | 34,800 |
Participation and Revenue Share Agreements [Member] | Related Party Transaction, Revenue Share and Participation Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | 200 | 300 |
Revenue Share Agreements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Other Operating Expenses | $ 400 | $ 400 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2018SegmentProperty | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | Segment | 2 |
Number of properties | Property | 8 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenues | |||
Gaming | $ 133,863 | $ 86,179 | |
Food and beverage | 42,603 | 14,872 | |
Rooms | 26,065 | 1,488 | |
Other | 12,258 | 3,344 | |
Net revenues | 214,789 | 105,883 | |
Net income (loss) | 3,930 | 5,342 | |
Depreciation and amortization | 25,237 | 6,552 | |
Acquisition expenses | 1,112 | ||
Loss on disposal of property and equipment | 77 | ||
Share-based compensation | 1,844 | 1,427 | |
Preopening expenses | 448 | 272 | |
Class action litigation expenses | 117 | ||
Executive severance | 187 | ||
Other, net | 191 | ||
Interest expense, net | 14,743 | 1,683 | |
Change in fair value of derivative | (3,211) | ||
Income tax benefit (provision) | 1,219 | (1,707) | |
Adjusted EBITDA | 45,894 | 13,569 | |
Assets | 1,390,938 | $ 1,365,175 | |
Operating Segments [Member] | Casinos [Member] | |||
Revenues | |||
Gaming | 64,459 | 18,324 | |
Food and beverage | 29,996 | 3,408 | |
Rooms | 26,065 | 1,488 | |
Other | 9,967 | 1,071 | |
Net revenues | 130,487 | 24,291 | |
Net income (loss) | 23,841 | 4,727 | |
Depreciation and amortization | 19,635 | 1,571 | |
Loss on disposal of property and equipment | 62 | ||
Class action litigation expenses | 13 | ||
Executive severance | 51 | ||
Other, net | 24 | ||
Interest expense, net | 24 | 4 | |
Adjusted EBITDA | 43,650 | 6,302 | |
Assets | 296,796 | 298,453 | |
Operating Segments [Member] | Distributed Gaming [Member] | |||
Revenues | |||
Gaming | 69,404 | 67,855 | |
Food and beverage | 12,607 | 11,464 | |
Other | 2,150 | 2,195 | |
Net revenues | 84,161 | 81,514 | |
Net income (loss) | 7,448 | 8,221 | |
Depreciation and amortization | 5,148 | 4,634 | |
Loss on disposal of property and equipment | 15 | ||
Preopening expenses | 148 | 209 | |
Executive severance | 35 | ||
Other, net | 167 | ||
Interest expense, net | 46 | 42 | |
Adjusted EBITDA | 13,007 | 13,106 | |
Assets | 1,036,327 | 1,039,025 | |
Corporate and Other [Member] | |||
Revenues | |||
Other | 141 | 78 | |
Net revenues | 141 | 78 | |
Net income (loss) | (27,359) | (7,606) | |
Depreciation and amortization | 454 | 347 | |
Acquisition expenses | 1,112 | ||
Share-based compensation | 1,844 | 1,427 | |
Preopening expenses | 300 | 63 | |
Class action litigation expenses | 104 | ||
Executive severance | 101 | ||
Interest expense, net | 14,673 | 1,637 | |
Change in fair value of derivative | (3,211) | ||
Income tax benefit (provision) | 1,219 | (1,707) | |
Adjusted EBITDA | (10,763) | $ (5,839) | |
Assets | $ 57,815 | $ 27,697 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 133,863,000 | $ 86,179,000 | |
Gaming expenses | 77,688,000 | 58,996,000 | |
Mr. Sartini [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursement expense paid | 100,000 | 100,000 | |
Due to related parties | 100,000 | 100,000 | |
Executive Vice President and Chief Legal Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | 300,000 | 300,000 | |
Gaming expenses | $ 200,000 | 300,000 | |
Lyle A. Berman [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting agreement expiry date | Jul. 31, 2018 | ||
Lyle A. Berman [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 100,000 | 100,000 | |
Lyle A. Berman [Member] | Maximum [Member] | Selling General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting agreement expenses, related party | $ 100,000 | 100,000 | |
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] | Mr. Sartini [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amounts of transaction | $ 300,000 | 300,000 | |
Rent expense payable to related party | 100,000 | 100,000 | |
Tavern Leases [Member] | Mr. Sartini [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amounts of transaction | 100,000 | 300,000 | |
Rent expense payable to related party | 0 | $ 0 | |
Office Headquarters Lease [Member] | Mr. Sartini [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 0 | $ 0 | |
Office Headquarters Lease [Member] | Mr. Sartini [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Rental income for sublet portion | $ 100,000 | $ 100,000 |