Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the ownership and operation of resort casino properties in Nevada and Maryland. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, and the operation of branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable operating segments because these costs are not easily allocable and to do so would not be practical. The Company evaluates each segment’s profitability based upon such segment’s Adjusted EBITDA, which represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of goodwill and intangible assets, acquisition and severance expenses, preopening and related expenses, asset disposal and other writedowns, share-based compensation expenses, and change in fair value of derivative, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA: Three Months Ended June 30, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 25,210 $ 31,467 $ — $ 56,677 Food and beverage 6,016 4,152 — 10,168 Rooms 5,987 — — 5,987 Other 2,219 720 203 3,142 Total revenues $ 39,432 $ 36,339 $ 203 $ 75,974 Net loss $ (45,979 ) $ (5,194 ) $ (27,393 ) $ (78,566 ) Depreciation and amortization 25,344 5,902 684 31,930 Impairment of goodwill and intangible assets 21,411 — — 21,411 Acquisition and severance expenses 189 134 44 367 Preopening and related expenses (1) — (1 ) 10 9 Asset disposal and other writedowns 683 24 (5 ) 702 Share-based compensation — — 1,756 1,756 Other, net 48 41 28 117 Interest expense, net 91 10 16,306 16,407 Income tax provision — — 206 206 Adjusted EBITDA $ 1,787 $ 916 $ (8,364 ) $ (5,661 ) Three Months Ended June 30, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 72,237 $ 74,009 $ — $ 146,246 Food and beverage 39,049 13,055 — 52,104 Rooms 35,514 — — 35,514 Other 11,916 2,089 201 14,206 Total revenues $ 158,716 $ 89,153 $ 201 $ 248,070 Net income (loss) $ 22,471 $ 7,347 $ (44,226 ) $ (14,408 ) Depreciation and amortization 24,052 5,569 355 29,976 Acquisition and severance expenses 101 9 1,013 1,123 Preopening and related expenses (1) 700 660 137 1,497 Asset disposal and other writedowns 511 74 — 585 Share-based compensation — — 2,134 2,134 Other, net 81 — 406 487 Interest expense, net 64 23 19,048 19,135 Loss on extinguishment and modification of debt — — 9,150 9,150 Change in fair value of derivative — — 1,489 1,489 Income tax benefit — — (1,344 ) (1,344 ) Adjusted EBITDA $ 47,980 $ 13,682 $ (11,838 ) $ 49,824 Six Months Ended June 30, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 87,115 $ 96,777 $ — $ 183,892 Food and beverage 35,821 15,894 — 51,715 Rooms 31,592 — — 31,592 Other 12,874 2,652 406 15,932 Total revenues $ 167,402 $ 115,323 $ 406 $ 283,131 Net loss $ (48,917 ) $ (4,590 ) $ (57,679 ) $ (111,186 ) Depreciation and amortization 50,057 11,767 1,262 63,086 Impairment of goodwill and intangible assets 27,872 — — 27,872 Acquisition and severance expenses 2,606 612 125 3,343 Preopening and related expenses (1) 225 (1 ) 115 339 Asset disposal and other writedowns 1,310 (14 ) (5 ) 1,291 Share-based compensation — — 4,002 4,002 Other, net 95 238 141 474 Interest expense, net 336 25 34,792 35,153 Change in fair value of derivative — — 1 1 Income tax provision — — 258 258 Adjusted EBITDA $ 33,584 $ 8,037 $ (16,988 ) $ 24,633 Six Months Ended June 30, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 143,122 $ 146,916 $ — $ 290,038 Food and beverage 75,491 26,371 — 101,862 Rooms 66,801 — — 66,801 Other 24,676 4,223 362 29,261 Total revenues $ 310,090 $ 177,510 $ 362 $ 487,962 Net income (loss) $ 45,160 $ 14,953 $ (82,539 ) $ (22,426 ) Depreciation and amortization 45,695 10,898 648 57,241 Acquisition and severance expenses 387 35 2,245 2,667 Preopening and related expenses (1) 2,354 1,226 149 3,729 Asset disposal and other writedowns 767 65 390 1,222 Share-based compensation 11 5 6,302 6,318 Other, net 92 — 1,259 1,351 Interest expense, net 116 39 37,115 37,270 Loss on extinguishment and modification of debt — — 9,150 9,150 Change in fair value of derivative — — 3,737 3,737 Income tax benefit — — (1,995 ) (1,995 ) Adjusted EBITDA $ 94,582 $ 27,221 $ (23,539 ) $ 98,264 (1) Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at June 30, 2020 $ 1,131,272 $ 448,182 $ 44,482 $ 1,623,936 Balance at December 31, 2019 $ 1,204,574 $ 482,294 $ 54,049 $ 1,740,917 |