Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-32583 | |
Entity Registrant Name | FULL HOUSE RESORTS INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3391527 | |
Entity Address, Address Line One | One Summerlin, 1980 Festival Plaza Drive, SuiteĀ 680 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89135 | |
City Area Code | 702 | |
Local Phone Number | 221-7800 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | FLL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,227,493 | |
Amendment Flag | false | |
Entity Central Index Key | 0000891482 | |
Document Fiscal Year End | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Net revenues | $ 47,238 | $ 41,956 | $ 136,888 | $ 87,320 |
Operating costs and expenses | ||||
Selling, general and administrative | 14,791 | 12,555 | 43,211 | 35,332 |
Project development costs | 318 | 108 | 491 | 423 |
Preopening costs | 17 | 17 | ||
Depreciation and amortization | 1,819 | 1,848 | 5,448 | 5,868 |
Loss on disposal of assets, net | 2 | 674 | 439 | |
Total operating costs and expenses | 36,119 | 31,547 | 104,869 | 84,505 |
Operating income | 11,119 | 10,409 | 32,019 | 2,815 |
Other (expense) income | ||||
Interest expense, net of $509 and $208 capitalized for the three-months ended September 30, 2021 and 2020, and $1,017 and $639 capitalized for the nine-months ended September 30, 2021 and 2020 | (6,405) | (2,391) | (17,531) | (7,329) |
Loss on extinguishment of debt | (6,104) | 0 | ||
Adjustment to fair value of warrants | (403) | (1,347) | 1,159 | |
Total other (expense) income | (6,405) | (2,794) | (24,982) | (6,170) |
Income (loss) before income taxes | 4,714 | 7,615 | 7,037 | (3,355) |
Income tax provision (benefit) | 95 | (93) | 379 | (2) |
Net income (loss) | $ 4,619 | $ 7,708 | $ 6,658 | $ (3,353) |
Basic earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.28 | $ 0.21 | $ (0.12) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0.28 | $ 0.19 | $ (0.17) |
Casino | ||||
Revenues | ||||
Net revenues | $ 32,506 | $ 31,910 | $ 99,217 | $ 63,616 |
Operating costs and expenses | ||||
Costs and expenses | 11,261 | 10,125 | 32,687 | 23,886 |
Food and beverage | ||||
Revenues | ||||
Net revenues | 7,092 | 5,612 | 20,633 | 14,596 |
Operating costs and expenses | ||||
Costs and expenses | 6,199 | 5,234 | 17,487 | 14,453 |
Hotel | ||||
Revenues | ||||
Net revenues | 2,469 | 2,511 | 7,190 | 5,204 |
Operating costs and expenses | ||||
Costs and expenses | 1,136 | 1,113 | 3,332 | 2,663 |
Other operations, including online/mobile sports operations | ||||
Revenues | ||||
Net revenues | 5,171 | 1,923 | 9,848 | 3,904 |
Operating costs and expenses | ||||
Costs and expenses | $ 576 | $ 564 | $ 1,522 | $ 1,441 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENT OF OPERATIONS | ||||
Interest costs capitalized | $ 509 | $ 208 | $ 1,017 | $ 639 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and equivalents | $ 97,926 | $ 37,698 |
Restricted cash | 176,572 | |
Accounts receivable, net | 4,544 | 4,904 |
Inventories | 2,139 | 1,511 |
Prepaid expenses and other | 5,062 | 2,461 |
Total current assets | 286,243 | 46,574 |
Other long-term assets | ||
Property and equipment, net | 134,244 | 115,772 |
Operating lease right-of-use assets, net | 16,619 | 17,361 |
Goodwill | 21,286 | 21,286 |
Other intangible assets, net | 10,904 | 10,963 |
Deposits and other | 796 | 660 |
Total Assets | 470,092 | 212,616 |
Current liabilities | ||
Accounts payable | 10,391 | 4,191 |
Accrued payroll and related | 5,497 | 2,397 |
Accrued interest | 3,386 | 38 |
Other accrued liabilities | 9,320 | 10,772 |
Current portion of operating lease obligations | 3,492 | 3,283 |
Current portion of finance lease obligation | 508 | 491 |
Current portion of long-term debt | 1,546 | 426 |
Common stock warrant liability | 2,653 | |
Total current liabilities | 34,140 | 24,251 |
Operating lease obligations, net of current portion | 13,813 | 14,914 |
Finance lease obligation, net of current portion | 2,914 | 3,298 |
Long-term debt, net | 305,329 | 106,832 |
Deferred income taxes, net | 999 | 620 |
Contract liabilities, net of current portion | 4,948 | 5,398 |
Other long-term liabilities | 626 | 626 |
Total liabilities | 362,769 | 155,939 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized; 35,302,549 and 28,385,299 shares issued and 34,227,493 and 27,124,292 shares outstanding | 4 | 3 |
Additional paid-in capital | 108,586 | 64,826 |
Treasury stock, 1,075,056 and 1,261,007 common shares | (1,311) | (1,538) |
Retained earnings (accumulated deficit) | 44 | (6,614) |
Total stockholders' equity | 107,323 | 56,677 |
Total liabilities and stockholders' equity | $ 470,092 | $ 212,616 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,302,549 | 28,385,299 |
Common stock, shares outstanding (in shares) | 34,227,493 | 27,124,292 |
Treasury stock, common shares (in shares) | 1,075,056 | 1,261,007 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit/Retained Earnings | Total |
Balance at Dec. 31, 2019 | $ 3 | $ 64,402 | $ (1,548) | $ (6,761) | $ 56,096 |
Balance (in shares) at Dec. 31, 2019 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 83 | 83 | |||
Net income (loss) | (4,358) | (4,358) | |||
Balance at Mar. 31, 2020 | $ 3 | 64,485 | $ (1,548) | (11,119) | 51,821 |
Balance (in shares) at Mar. 31, 2020 | 28,346 | 1,270 | |||
Balance at Dec. 31, 2019 | $ 3 | 64,402 | $ (1,548) | (6,761) | 56,096 |
Balance (in shares) at Dec. 31, 2019 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (3,353) | ||||
Balance at Sep. 30, 2020 | $ 3 | 64,709 | $ (1,548) | (10,114) | 53,050 |
Balance (in shares) at Sep. 30, 2020 | 28,375 | 1,270 | |||
Balance at Mar. 31, 2020 | $ 3 | 64,485 | $ (1,548) | (11,119) | 51,821 |
Balance (in shares) at Mar. 31, 2020 | 28,346 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock grants | 24 | 24 | |||
Stock grants (in shares) | 13 | ||||
Stock-based compensation | 79 | 79 | |||
Net income (loss) | (6,703) | (6,703) | |||
Balance at Jun. 30, 2020 | $ 3 | 64,588 | $ (1,548) | (17,822) | 45,221 |
Balance (in shares) at Jun. 30, 2020 | 28,359 | 1,270 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock grants | 24 | 24 | |||
Stock grants (in shares) | 16 | ||||
Stock-based compensation | 97 | 97 | |||
Net income (loss) | 7,708 | 7,708 | |||
Balance at Sep. 30, 2020 | $ 3 | 64,709 | $ (1,548) | (10,114) | 53,050 |
Balance (in shares) at Sep. 30, 2020 | 28,375 | 1,270 | |||
Balance at Dec. 31, 2020 | $ 3 | 64,826 | $ (1,538) | (6,614) | 56,677 |
Balance (in shares) at Dec. 31, 2020 | 28,385 | 1,261 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 36 | $ 42 | 78 | ||
Exercise of stock options (in shares) | (34) | ||||
Equity offering, net | $ 1 | 42,973 | 42,974 | ||
Equity offering, net (in shares) | 6,917 | ||||
Stock-based compensation | 124 | 124 | |||
Net income (loss) | (3,445) | (3,445) | |||
Balance at Mar. 31, 2021 | $ 4 | 107,959 | $ (1,496) | (10,059) | 96,408 |
Balance (in shares) at Mar. 31, 2021 | 35,302 | 1,227 | |||
Balance at Dec. 31, 2020 | $ 3 | 64,826 | $ (1,538) | (6,614) | 56,677 |
Balance (in shares) at Dec. 31, 2020 | 28,385 | 1,261 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 6,658 | ||||
Balance at Sep. 30, 2021 | $ 4 | 108,586 | $ (1,311) | 44 | 107,323 |
Balance (in shares) at Sep. 30, 2021 | 35,302 | 1,075 | |||
Balance at Mar. 31, 2021 | $ 4 | 107,959 | $ (1,496) | (10,059) | 96,408 |
Balance (in shares) at Mar. 31, 2021 | 35,302 | 1,227 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 104 | $ 185 | 289 | ||
Exercise of stock options (in shares) | (152) | ||||
Stock-based compensation | 199 | 199 | |||
Net income (loss) | 5,484 | 5,484 | |||
Balance at Jun. 30, 2021 | $ 4 | 108,262 | $ (1,311) | (4,575) | 102,380 |
Balance (in shares) at Jun. 30, 2021 | 35,302 | 1,075 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 324 | 324 | |||
Net income (loss) | 4,619 | 4,619 | |||
Balance at Sep. 30, 2021 | $ 4 | $ 108,586 | $ (1,311) | $ 44 | $ 107,323 |
Balance (in shares) at Sep. 30, 2021 | 35,302 | 1,075 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,658 | $ (3,353) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,448 | 5,868 |
Amortization of debt issuance and warrant costs and other | 991 | 827 |
Stock-based compensation | 647 | 307 |
Change in fair value of stock warrants | 1,347 | (1,159) |
Loss on disposal of assets, net | 674 | 439 |
Proceeds from insurance related to property damage | 1,334 | 0 |
Loss on extinguishment of debt | 6,104 | 0 |
Increases and decreases in operating assets and liabilities: | ||
Accounts receivable | 360 | 306 |
Prepaid expenses, inventories and other | (3,229) | 1,533 |
Deferred taxes | 379 | (2) |
Common stock warrant liability | (4,000) | 0 |
Contract liabilities | (600) | (109) |
Accounts payable and accrued expenses | 3,188 | (1,732) |
Net cash provided by operating activities | 19,301 | 2,925 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (17,828) | (1,883) |
Other | (164) | 11 |
Net cash used in investing activities | (17,992) | (1,872) |
Cash flows from financing activities: | ||
Proceeds from Senior Secured Notes due 2028 borrowings | 310,000 | 0 |
Proceeds from equity offering, net of issuance costs | 42,974 | 0 |
Proceeds from CARES Act unsecured loans | 0 | 5,606 |
Payment of debt discount and issuance costs | (9,421) | (1,284) |
Repayment of Senior Secured Notes due 2024 | (106,825) | (825) |
Prepayment premiums of Senior Secured Notes due 2024 | (1,261) | 0 |
Repayment of finance lease obligation | (367) | (369) |
Proceeds from exercise of stock options | 367 | 0 |
Other | 24 | 0 |
Net cash provided by financing activities | 235,491 | 3,128 |
Net increase in cash, cash equivalents and restricted cash | 236,800 | 4,181 |
Cash, cash equivalents and restricted cash, beginning of period | 37,698 | 29,851 |
Cash, cash equivalents and restricted cash, end of period | 274,498 | 34,032 |
Supplemental Cash Flow Information: | ||
Cash paid for interest, net of amounts capitalized | 13,180 | 6,324 |
Non-Cash Investing Activities: | ||
Accounts payable related capital expenditures | $ 7,031 | $ 265 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION Organization. The Company currently operates five casinos: four on real estate that we own or lease and one located within a hotel owned by a third party. Construction continues for a sixth property, Chamonix Casino Hotel (āChamonixā), adjacent to the Companyās existing Bronco Billyās Casino and Hotel in Cripple Creek, Colorado. We also benefit from six permitted sports wagering āskins,ā three in Colorado and three in Indiana. Other companies operate or will operate these online sports wagering sites under their brands, paying us a percentage of revenues, as defined, subject to annual minimum amounts. Five of our six permitted skins have commenced operations. The following table identifies our five segments, along with properties and their locations: ā ā ā ā Segments and Properties ā Locations Colorado ā ā Bronco Billyās Casino and Hotel Cripple Creek, CO (near Colorado Springs) Chamonix Casino Hotel (under construction) ā Cripple Creek, CO (near Colorado Springs) Indiana ā ā Rising Star Casino Resort Rising Sun, IN (near Cincinnati) Mississippi ā ā Silver Slipper Casino and Hotel Hancock County, MS (near New Orleans) Nevada ā ā Grand Lodge Casino Incline Village, NV Stockmanās Casino Fallon, NV (one hour east of Reno) Contracted Sports Wagering ā ā Three sports wagering websites (āskinsā), all operating ā Colorado Three sports wagering websites (āskinsā), two in operation ā Indiana ā The Company manages its casinos based primarily on geographic regions within the United States. Our 2021 results reflect a change in our operating segments. We now break out our on-site and online sports wagering skins in Colorado and Indiana as a standalone segment, Contracted Sports Wagering. Certain reclassifications were made to 2020 amounts to conform to current-period presentation for enhanced comparability. Such reclassifications had no effect on the previously reported results of operations or financial position. ā COVID-19 Pandemic Update. ā As a result, the Company experienced a material decline in its revenues until its properties began reopening when permitted by local authorities. The reopening dates were: ā ā Silver Slipper Casino and Hotel ā May 21, 2020 ā Grand Lodge Casino and Stockmanās Casino ā June 4, 2020 ā Bronco Billyās Casino and Hotel ā June 15, 2020 ā Rising Star Casino Resort ā June 15, 2020. ā During the shutdown period, the Company evaluated labor, marketing and other costs at its businesses so that, upon reopening, its properties could reopen with significantly lower operating costs. As a result, the Companyās operating performance since reopening in mid-2020 has been stronger than pre-pandemic levels, despite business restrictions throughout its properties and certain pandemic-related additional costs. The extent to which the Companyās financial and operating results in future periods may be affected by COVID-19, including the Delta or other variants, will largely depend on future developments, which are highly uncertain and cannot be accurately predicted at this time. Significant uncertainties include the ability to operate; new information which may emerge concerning new strains of COVID-19 and their severity; vaccination rates among the population; the effectiveness of COVID-19 vaccines against variants; any additional actions imposed by governmental authorities (including the potential mandated vaccination or repeated testing of our employees) to contain or minimize the impact of COVID-19 and any variants; increased operating costs and constraints to implement sanitation and social distancing requirements; increased costs for materials due to supply chain constraints; and general economic conditions, among others. ā The disruptions arising from COVID-19 continued to impact the Company during the three- and nine-months ended September 30, 2021. The duration and intensity of this global health emergency and related disruptions are uncertain. While each of the Companyās properties are currently open and operating restrictions further eased during the third quarter of 2021, the current economic and regulatory environment in each of the Companyās jurisdictions continues to evolve. For example, mask mandates for all employees and guests were re-introduced at our Nevada properties in July 2021 in compliance with recent orders from Nevada state government officials and, in November 2021, new national rules were announced that would require employers with more than 100 employees to ensure their workers are vaccinated against COVID-19 or undergo weekly testing. The manner in which governments will react as the global and regional impact of the COVID-19 pandemic changes over time is uncertain, and such actions could significantly alter the Companyās current operations. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation. The interim consolidated financial statements of the Company included herein reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of annualized results for an entire year. The consolidated financial statements include the accounts of Full House and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fair Value and the Fair Value Input Hierarchy. GAAP categorizes the inputs used for fair value into a three-level hierarchy: ā Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities; ā Level 2: Comparable inputs other than quoted prices that are observable for similar assets or liabilities in less active markets; and ā Level 3: Unobservable inputs which may include metrics that market participants would use to estimate values, such as revenue and earnings multiples and relative rates of return. The Company utilizes Level 1 inputs when measuring the fair value of its 2028 Notes (see Note 5). The Company utilizes Level 2 inputs when measuring the fair value of its asset purchases and acquisitions (see Note 4). The Company utilizes Level 3 inputs when measuring the fair value of net assets acquired in business combination transactions, subsequent assessments for impairment, and most financial instruments, including but not limited to the estimated fair value of common stock warrants at issuance and for recurring changes in the related warrant liability (see Note 6). Cash Equivalents and Restricted Cash. Restricted cash balances consist of funds initially totaling $180 million, which were placed into a construction reserve account to fund the completion of the Chamonix construction project. Accounts Receivable. ā ā ā ā ā ā ā ā ā (In thousands) ā ā September 30, ā December 31, ā 2021 2020 Accounts receivable ā ā $ 4,796 ā $ 5,080 Accounts receivable allowance ā ā (252) ā (176) ā ā ā $ 4,544 ā $ 4,904 ā At September 30, 2021, the balance in accounts receivables includes the sale of āfree playā at Rising Star for $2.1 million in September. Because Indiana has a progressive gaming tax system and Rising Star is one of the smaller casinos in the state, the property has consistently sold its ability to deduct āfree playā in computing gaming taxes to operators in higher tax tiers (and usually sold in the fourth quarter in prior years). Compared to December 31, 2020, the balance in accounts receivables includes the sale of āfree playā at Rising Star for the same amount of $2.1 million in the fourth quarter. Revenue Recognition of Accrued Club Points and Deferred Revenues Accrued Club Points: Operating Revenues and Related Costs and Expenses. Gaming revenue is the difference between gaming wins and losses, not the total amount wagered. The Company accounts for its gaming transactions on a portfolio basis as such wagers have similar characteristics and it would not be practical to view each wager on an individual basis. The Company sometimes provides discretionary complimentary goods and services (ādiscretionary compsā), primarily to casino customers. For these types of transactions, the Company allocates revenue to the department providing the complimentary goods or services based upon its estimated standalone selling price, offset by a reduction in casino revenues. Many of the Companyās customers choose to earn points under its customer loyalty programs. As points are accrued, the Company defers a portion of its gaming revenue based on the estimated standalone value of loyalty points being earned by the customer. The standalone value of loyalty points is derived from the retail value of food, beverages, hotel rooms, and other goods or services for which such points may be redeemed. A liability related to these customer loyalty points is recorded, net of estimated breakage and other factors, until the customer redeems these points, primarily for āfree casino play,ā complimentary dining, or hotel stays. Such liabilities were approximately $0.6 million for September 30, 2021 and $0.8 million for December 31, 2020, and these amounts are included in āother accrued liabilitiesā on the consolidated balance sheets. Upon redemption, the related revenue is recognized at retail value within the department providing the goods or services, offset by a reduction in the liability. Revenue for food and beverage, hotel, and other revenue transactions is typically the net amount collected from customers for such goods and services, plus the retail value of (i) discretionary comps and (ii) comps provided in return for redemption of loyalty points. The Company records such revenue as the good or service is transferred to the customer. Additionally, the Company may collect deposits in advance for future hotel reservations or entertainment, among other services, which represent obligations of the Company until the service is provided to the customer. Deferred Revenues: Market Access Fees from Sports Wagering Agreements. Indiana. Colorado. Deferred revenues also include a total of $2.0 million related to the annual prepayment of contracted revenue, as required in two of the Sports Agreements. We received $1.0 million of prepaid revenue for contracted sports operations that commenced in Colorado in December 2020, and $1.0 million for contracted sports operations that commenced in Indiana in April 2021. Such revenues consisted of the following, as discussed above: ā ā ā ā ā ā ā ā ā ā (In thousands) ā ā ā September 30, ā December 31, ā Balance Sheet Location ā 2021 2020 Deferred revenue, current ā Other accrued liabilities ā $ 1,222 ā $ 1,372 Deferred revenue, net of current portion ā Contract liabilities, net of current portion ā ā 4,948 ā ā 5,398 ā ā ā ā $ 6,170 ā $ 6,770 ā Income Taxes. Reclassifications. Earnings (Loss) Per Share. Leases. For material leases with terms greater than a year, the Company records right-of-use (āROUā) assets and lease liabilities on the balance sheet, as measured on a discounted basis. For finance leases, the Company recognizes interest expense associated with the lease liability and depreciation expense associated with the ROU asset; for operating leases, the Company recognizes straight-line rent expense. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less. However, costs related to short-term leases with terms greater than one month, which the Company deems material, are disclosed as a component of lease expenses when applicable. Additionally, the Company accounts for new and existing leases containing both lease and non-lease components (āembedded leasesā) together as a single lease component Finance and operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement. As the implicit rate is not determinable in most of the Companyās leases, management uses the Companyās incremental borrowing rate as estimated by third-party valuation specialists in determining the present value of future payments based on the information available at the commencement date and/or modification date. The expected lease terms include options to extend the lease when it is reasonably certain that the Company will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term for operating leases. For finance leases, the ROU asset depreciates on a straight-line basis over the shorter of the lease term or useful life of the ROU asset and the lease liability accretes interest based on the interest method using the discount rate determined at lease commencement. ā Recent Accounting Pronouncements ā Income Taxes. ā The Company believes that there are no other recently-issued accounting standards not yet effective that are currently likely to have a material impact on its financial statements. ā |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
LEASES | |
LEASES | 3. LEASES The Company has no leases in which it is the lessor. As lessee, the Company has one finance lease for a hotel and various operating leases for land, casino and office space, equipment, buildings, and signage. The Companyās lease terms, including extensions, range from one month to approximately 37 years. The Companyās lease agreements do not contain any material residual value guarantees or material restrictive covenants, but the land lease at Silver Slipper does include contingent rent, as further discussed below. Operating Leases Silver Slipper Casino Land Lease through April 2058 and Options to Purchase. The Company executed a fourth amendment to the original lease with the landlord, effective March 2020, which granted a waiver of base rent for April and May of 2020. Such abatement totaled $155,000 and the value of such abatement was amortized over the remaining term of the lease. From April 1, 2022 through October 1, 2027, the Company may buy out the lease for $15.5 million plus a seller-retained interest in Silver Slipper Casino and Hotelās operations of 3% of net income (as defined) for 10 years following the purchase date. Bronco Billyās / Chamonix Lease through January 2035 and Option to Purchase. Third Street Corner Building through August 2023 and Option to Purchase. As part of the Chamonix development project, this building is currently used as office space for construction personnel, obviating the need for construction trailers. The lease includes a minimum three Grand Lodge Casino Lease through August 2023. twelve In July 2020, the Company executed a fifth amendment to the facilities lease that retroactively reduced rent amounts due during the closure period, specifically a 25% reduction in rent for March 2020 and a 50% reduction in rent for each of April Corporate Office Lease through January 2025. Finance Lease Rising Star Casino Hotel Lease through October 2027 and Option to Purchase. The components of lease expense are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended Nine Months Ended ā ā ā ā September 30, ā September 30, Lease Costs ā Classification within Statement of Operations ā 2021 2020 ā 2021 2020 Operating leases: ā ā ā ā ā ā Fixed/base rent Selling, General and Administrative Expenses ā $ 1,112 ā $ 1,156 ā $ 3,357 ā $ 3,478 Short-term payments ā Selling, General and Administrative Expenses ā ā 29 ā ā ā ā ā 29 ā ā ā Variable payments Selling, General and Administrative Expenses ā 385 ā 219 ā 1,254 ā 442 Finance lease: ā ā ā ā ā Amortization of leased assets Depreciation and Amortization ā 39 ā 39 ā 118 ā 118 Interest on lease liabilities Interest Expense, Net ā 38 ā 45 ā 122 ā 139 Total lease costs ā ā ā $ 1,603 ā $ 1,459 ā $ 4,880 ā $ 4,177 ā ā Leases recorded on the balance sheet consist of the following: ā ā ā ā ā ā ā ā ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, Leases Balance Sheet Classification 2021 ā 2020 Assets ā ā ā Operating lease assets Operating Lease Right-of-Use Assets, Net $ 16,619 ā $ 17,361 Finance lease assets Property and Equipment, Net (1) ā 4,762 ā 4,879 Total lease assets ā $ 21,381 ā $ 22,240 ā ā ā ā ā ā ā ā ā Liabilities ā ā Current ā ā Operating Current Portion of Operating Lease Obligations ā $ 3,492 ā $ 3,283 Finance Current Portion of Finance Lease Obligation ā 508 ā 491 Noncurrent ā ā ā ā Operating Operating Lease Obligations, Net of Current Portion ā 13,813 ā 14,914 Finance Finance Lease Obligation, Net of Current Portion ā 2,914 ā 3,298 Total lease liabilities ā $ 20,727 ā $ 21,986 __________ (1) Finance lease assets are recorded net of accumulated amortization of $3.0 million and $2.8 million as of September 30, 2021 and December 31, 2020, respectively. ā Maturities of lease liabilities as of September 30, 2021 are summarized as follows: ā ā ā ā ā ā ā ā (In thousands) ā ā ā ā ā ā ā Operating Financing Years Ending December 31, ā Leases ā Lease (1) 2021 (excluding the nine months ended September 30, 2021) ā $ 1,234 ā $ 108 2022 ā 4,852 ā 652 2023 ā 3,539 ā 652 2024 ā 1,663 ā 652 2025 ā 1,466 ā 652 Thereafter ā 30,105 ā 1,195 Total future minimum lease payments ā 42,859 ā 3,911 Less: Amount representing interest ā (25,554) ā (489) Present value of lease liabilities ā 17,305 ā 3,422 Less: Current lease obligations ā (3,492) ā (508) Long-term lease obligations ā $ 13,813 ā $ 2,914 __________ (1) ā Other information related to lease term and discount rate is as follows: ā ā ā ā ā ā ā Lease Term and Discount Rate ā September 30, 2021 ā December 31, 2020 Weighted-average remaining lease term ā ā ā Operating leases 20.8 years ā 20.4 years Finance lease 6.0 years ā 6.8 years Weighted-average discount rate ā ā ā Operating leases 9.28 % ā 9.41 % Finance lease 4.50 % ā 4.50 % ā Supplemental cash flow information related to leases is as follows: ā ā ā ā ā ā ā (In thousands) Nine Months Ended ā ā September 30, Cash paid for amounts included in the measurement of lease liabilities: ā 2021 ā 2020 Operating cash flows for operating leases ā $ 3,652 ā $ 3,250 Operating cash flows for finance lease ā $ 122 ā $ 139 Financing cash flows for finance lease ā $ 367 ā $ 369 ā |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | 4. ACQUISITIONS Cripple Creek Land and Real Estate Purchase. ā Additionally, on April 16, 2021, the Company purchased a lot and building near its operations in Cripple Creek, Colorado for $600,000. ā |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
LONG-TERM DEBT. | |
LONG-TERM DEBT | 5. LONG-TERM DEBT Long-term debt, related discounts and issuance costs consist of the following: ā ā ā ā ā ā ā (In thousands) ā September 30, ā December 31, ā ā 2021 ā 2020 Revolving Credit Facility due 2026 ā $ ā ā $ ā Senior Secured Notes due 2028 (1) ā ā 310,000 ā ā ā Senior Secured Notes due 2024 (2) ā ā ā ā ā 106,825 Unsecured Loans (CARES Act) (3) ā ā 5,606 ā ā 5,606 Less: Unamortized discounts and debt issuance costs ā (8,731) ā (5,173) ā ā 306,875 ā 107,258 Less: Current portion of long-term debt ā (1,546) ā (426) ā ā $ 305,329 ā $ 106,832 __________ (1) As of September 30, 2021, the estimated fair value of these notes was approximately $333.3 million. The fair value was estimated using quoted market prices for these notes. (2) The estimated fair value for this non-traded debt instrument can be approximated by its respective carrying value because management believes its terms are representative of market conditions. (3) The estimated fair value for this non-traded debt instrument can be approximated by its respective carrying value because of its similar terms to other CARES Act loans . ā ā Debt Refinancing: Notes Issuance. ā The net proceeds from the sale of the 2028 Notes were used to redeem all of the Prior Notes (including a 0.90% prepayment premium) and to repurchase all outstanding warrants. Additionally, $180 million of bond proceeds were placed into a construction reserve account to fund construction of Chamonix. Accordingly, this amount is recorded as restricted cash. Net of transaction fees and expenses, approximately $8 million was added to unrestricted cash and equivalents. ā The 2028 Notes are guaranteed, jointly and severally (such guarantees, the āGuaranteesā), by each of the Companyās restricted subsidiaries (collectively, the āGuarantorsā). The 2028 Notes and the Guarantees are the Companyās and the Guarantorsā general senior secured obligations, subject to the terms of the Collateral Trust Agreement (as defined in the Indenture), ranking senior in right of payment to all of the Companyās and the Guarantorsā existing and future debt that is expressly subordinated in right of payment to the 2028 Notes and the Guarantees, if any. The 2028 Notes and the Guarantees will rank equally in right of payment with all of the Companyās and the Guarantorsā existing and future senior debt. The 2028 Notes contain representations and warranties, financial covenants, and restrictions on dividends customary for notes of this type. Mandatory prepayments, in whole or in part, of the 2028 Notes will be required upon the occurrence of certain events, including sales of certain assets, upon certain changes of control, or should the Company have certain unused funds in the construction disbursement account following the completion of Chamonix. On or prior to February 15, 2024, the Company may redeem up to 35% of the original principal amount of the 2028 Notes with proceeds of certain equity offerings at a redemption price of 108.25%, plus accrued and unpaid interest to the redemption date. In addition, the Company may redeem some or all of the 2028 Notes prior to February 15, 2024 at a redemption price of 100% of the principal amount of the 2028 Notes, plus accrued and unpaid interest to the redemption date and a āmake-wholeā premium. At any time on or after February 15, 2024, the Company may redeem some or all of the 2028 Notes for cash at the following redemption prices: ā ā ā ā Redemption Periods Percentage Premium February 15, 2024 to February 14, 2025 104.125 % February 15, 2025 to February 14, 2026 102.063 % February 15, 2026 and Thereafter ā 100.000 % ā Prior Notes The Prior Notes contained certain representations and warranties, events of default, and financial covenants that were more restrictive than the 2028 Notes. For example, the Company was required to maintain a total leverage ratio, which measured Consolidated EBITDA (as defined in the indenture) against outstanding debt. Due to the impact of the COVID-19 pandemic on the Companyās business operations in 2020, the Company executed amendments, and paid negotiated amendment fees, to delete the total leverage ratio covenant as of March 31, June 30, and September 30, 2020, among other items. Revolving Credit Facility. Until the completion of Chamonix, the interest rate per annum applicable to loans under the Credit Facility will be, at the Companyās option, either (i) LIBOR plus a margin equal to 3.50%, or (ii) a base rate plus a margin equal to 2.50%. After completion of Chamonix (as defined in the agreement), the interest rate per annum applicable to loans under the Credit Facility will be reduced to, at the Companyās option, either (i) LIBOR plus a margin equal to 3.00%, or (ii) a base rate plus a margin equal to 2.00%. The commitment fee per annum payable is equal to 0.50% of the unused portion of the Credit Facility. The Company has also agreed to pay customary letter of credit fees, if any such letters of credit are issued. The Credit Facility is available, subject to the satisfaction of customary conditions, until March 31, 2026, at which time all amounts borrowed must be repaid. As of September 30, 2021, there were no drawn amounts under the Credit Facility or any outstanding letters of credit. The Credit Facility is equally and ratably secured by the same assets and guarantees securing the 2028 Notes. The Company may make prepayments of any amounts outstanding under the Credit Facility (without any reduction of the revolving commitments) in whole or in part at any time without penalty. The Credit Facility contains a number of negative covenants that, subject to certain exceptions, are substantially similar to the covenants contained in the 2028 Notes. The Credit Facility also requires compliance with a financial covenant as of the last day of each fiscal quarter, such that Adjusted EBITDA (as defined) for the trailing twelve-month period must equal or exceed the utilized portion of the Credit Facility, if drawn. The Company was in compliance with this financial covenant as of September 30, 2021. Unsecured Loans Under the CARES Act. ā Legislation subsequently extended the original maturity dates to May 3, 2025 with no change to the annual interest rate. After a 15-month |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY | 9 Months Ended |
Sep. 30, 2021 | |
COMMON STOCK WARRANT LIABILITY | |
COMMON STOCK WARRANT LIABILITY | 6. COMMON STOCK WARRANT LIABILITY On February 12, 2021, the Company used a portion of the proceeds from the 2028 Notes offering to redeem all of its outstanding warrants. As part of the Companyās former Second Lien Credit Facility, which was retired in 2018, the Company granted the second lien lenders 1,006,568 warrants. The settled repurchase price to redeem the warrants was $4.0 million. The Company previously measured the fair value of the warrants at each reporting period. However, upon redemption of the warrants on February 12, 2021, the fair value was determined based on the negotiated repurchase price of $4.0 million. This resulted in a final incremental fair value adjustment of $1.3 million in the first quarter of 2021. ā ā |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES The Companyās effective income tax rates for the three- and nine-months ended September 30, 2021 were 2.0% and 5.4%, respectively, compared to effective income tax rates of (1.2)% and 0.1% for the corresponding prior-year periods. The Companyās tax rates differ from the statutory rate of 21.0% primarily due to the effects of valuation allowances against net deferred tax assets, as well as certain permanent item differences between tax and financial reporting purposes. ā ā |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENT | |
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENT | 8. COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENT Litigation The Company is party to a number of pending legal proceedings related to matters that occurred in the normal course of business. Management does not expect that the outcome of any such proceedings, either individually or in the aggregate, will have a material effect on the Companyās financial position, results of operations and cash flows. Options to Lease Land Option Agreement for Public Trust Tidelands Lease in Mississippi. term extension Upon commencement of the lease, and for the first 18 months or until the beginning of the next six-month period after the opening of commercial operations on the leased premises, whichever occurs sooner, rent would be $10,000 for each six-month period (āConstruction Rentā). Construction Rent would terminate no later than 18 months after the commencement of the lease. Thereafter, annual rent would be $105,300, with adjustments, based on the consumer price index on each anniversary. Before construction can commence, additional entitlements are necessary, including certain environmental approvals. There can be no certainty that the tidelands lease option will be exercised or that the contemplated Silver Slipper expansion will be built. ā |
EARNINGS (LOSS) PER SHARE AND S
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY | |
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY | 9. EARNINGS (LOSS) PER SHARE AND STOCKHOLDERSā EQUITY Earnings (Loss) Per Share The table below reconciles basic and diluted income (loss) per share of common stock: ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended ā Nine Months Ended ā ā September 30, ā September 30, ā 2021 2020 2021 2020 Numerator: ā ā ā ā Net income (loss) ā basic ā $ 4,619 ā $ 7,708 ā $ 6,658 ā $ (3,353) Adjustment for assumed conversion of warrants ā ā ā ā ā ā ā ā ā ā ā (1,159) Net income (loss) ā diluted ā $ 4,619 ā $ 7,708 ā $ 6,658 ā $ (4,512) ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā Weighted-average common and common share equivalents ā basic ā 34,227 ā 27,106 ā 31,939 ā 27,087 Potential dilution from share-based awards ā ā 2,409 ā ā 358 ā ā 2,400 ā ā ā Potential dilution from assumed conversion of warrants ā ā ā ā ā ā ā 133 Weighted-average common and common share equivalents ā diluted ā 36,636 ā 27,464 ā 34,339 ā 27,220 Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share ā 177 ā 2,360 ā 177 ā 3,534 ā Stockholdersā Equity On March 29, 2021, the Company completed an underwritten public offering (the āOfferingā) for a total of 6,917,250 shares of its common stock, par value $0.0001 per share (the āCommon Stockā), which includes 902,250 shares of Common Stock sold pursuant to the underwritersā exercise of an option to purchase additional shares of Common Stock to cover over-allotments. The price to the public in the Offering was $6.65 per share of Common Stock, and net proceeds were approximately $43.0 million after deducting underwriting discounts, commissions and offering expenses. The Company intends to use the net proceeds from this offering for general corporate purposes, including its current and future development projects. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
SHARE-BASED COMPENSATION. | |
SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION On May 19, 2021, stockholders approved an amendment to the 2015 Equity Incentive Plan (the ā2015 Planā) to increase the number of shares available for issuance by 2,000,000 shares. Restricted Stock Awards and Performance-Based Shares. one As of September 30, 2021, the Company had 1,740,478 share-based awards authorized by shareholders and available for grant from the 2015 Plan. The following table summarizes information related to the Companyās common stock options as of September 30, 2021: ā ā ā ā ā ā ā ā Weighted ā ā Number ā Average ā ā of Stock ā Exercise ā ā Options ā Price Options outstanding at January 1, 2021 3,183,708 ā $ 1.71 Granted 315,620 ā 7.25 Exercised (185,951) ā 2.00 Canceled/Forfeited (76,333) ā 3.33 Expired ā ā ā Options outstanding at September 30, 2021 3,237,044 ā $ 2.19 Options exercisable at September 30, 2021 2,614,425 ā $ 1.66 ā Share-based compensation expense totaled $324,000 and $121,000 for the three-months ended September 30, 2021 and 2020, respectively, and $647,000 and $307,000 for the nine-months ended September 30, 2021 and 2020, respectively. The expense for 2021 includes restricted shares issued to non-executive members of the Companyās Board of Directors as compensation for their annual service, and includes estimates for certain performance-based shares that were issued to the Companyās executives as noted above. As of September 30, 2021, there was approximately $1.7 million of unrecognized compensation cost related to unvested stock options previously granted that is expected to be recognized over a weighted-average period of approximately 2.3 years. |
SEGMENT REPORTING AND DISAGGREG
SEGMENT REPORTING AND DISAGGREGATED REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | 11. SEGMENT REPORTING AND DISAGGREGATED REVENUE The Company manages its reporting segments based on geographic regions within the United States and type of income. Those five segments, as of 2021, are: Mississippi, Indiana, Colorado, Nevada, and Contracted Sports Wagering. The Companyās management views the states where each of its casino resorts are located as operating segments, in addition to its contracted sports wagering segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. During the first quarter of 2021, since it is a significantly different business than its core casino business, the Company changed the aggregation of its operations to present Contracted Sports Wagering as a separate segment. This change of the reportable segments reflects realignment within the Company stemming from the expansion of the Companyās contracted on-site and online sports wagering skins. Additionally, this new segment breakout aims to enhance transparency of operations and allows for a more appropriate valuation of the Companyās various business components. The Company utilizes Adjusted Segment EBITDA as the measure of segment profit in assessing performance and allocating resources at the reportable segment level. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment. As a result of the change in reportable segments described above, the Company has recast previously-reported segment information to conform to the current presentation in the following tables for enhanced comparability, which had no effect on previously reported results of operations or financial position. The following tables present the Companyās segment information: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 14,578 ā $ 7,906 ā $ 5,288 ā $ 4,734 ā $ ā ā $ 32,506 Food and beverage ā 5,156 ā 891 ā 740 ā 305 ā ā ā 7,092 Hotel ā 1,248 ā 990 ā 231 ā ā ā ā ā 2,469 Other operations, including contracted sports wagering ā 556 ā 2,799 ā 81 ā 93 ā 1,642 ā 5,171 ā ā $ 21,538 ā $ 12,586 ā $ 6,340 ā $ 5,132 ā $ 1,642 ā $ 47,238 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 6,485 ā $ 3,816 ā $ 1,543 ā $ 1,537 ā $ 1,645 ā $ 15,026 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,819) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,427) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (318) Preopening costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (324) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 11,119 Other expense: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,405) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 4,714 Income tax provision ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 95 Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 4,619 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 13,972 ā $ 7,204 ā $ 6,866 ā $ 3,868 ā $ ā ā $ 31,910 Food and beverage ā 4,231 ā 711 ā 505 ā 165 ā ā ā 5,612 Hotel ā 1,303 ā 1,034 ā 174 ā ā ā ā ā 2,511 Other operations, including contracted sports wagering ā 460 ā 616 ā 88 ā 80 ā 679 ā 1,923 ā ā $ 19,966 ā $ 9,565 ā $ 7,633 ā $ 4,113 ā $ 679 ā $ 41,956 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 6,495 ā $ 2,082 ā $ 3,116 ā $ 1,032 ā $ 631 ā $ 13,356 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,848) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (870) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (108) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (121) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 10,409 Other expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,391) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (403) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,794) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 7,615 Income tax benefit ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (93) Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 7,708 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Nine Months Ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 47,489 ā $ 22,507 ā $ 16,127 ā $ 13,094 ā $ ā ā $ 99,217 Food and beverage ā 15,411 ā 2,577 ā 1,777 ā 868 ā ā ā 20,633 Hotel ā 3,687 ā 3,040 ā 463 ā ā ā ā ā 7,190 Other operations, including contracted sports wagering ā 1,546 ā 3,629 ā 259 ā 254 ā 4,160 ā 9,848 ā ā $ 68,133 ā $ 31,753 ā $ 18,626 ā $ 14,216 ā $ 4,160 ā $ 136,888 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 23,097 ā $ 7,615 ā $ 5,092 ā $ 4,173 ā $ 4,122 ā $ 44,099 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (5,448) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (4,803) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (491) Preopening costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (674) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (647) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 32,019 Other expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17,531) Loss on extinguishment of debt ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,104) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,347) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (24,982) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 7,037 Income tax provision ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 379 Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 6,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Nine Months Ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 29,688 ā $ 14,055 ā $ 12,357 ā $ 7,516 ā $ ā ā $ 63,616 Food and beverage ā 10,666 ā 1,956 ā 1,360 ā 614 ā ā ā 14,596 Hotel ā 2,833 ā 2,010 ā 361 ā ā ā ā ā 5,204 Other operations, including contracted sports wagering ā 994 ā 998 ā 170 ā 177 ā 1,565 ā 3,904 ā ā $ 44,181 ā $ 19,019 ā $ 14,248 ā $ 8,307 ā $ 1,565 ā $ 87,320 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 9,526 ā $ (769) ā $ 2,448 ā $ 79 ā $ 1,467 ā $ 12,751 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (5,868) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,899) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (423) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (439) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (307) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2,815 Other (expense) income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (7,329) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 1,159 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,170) Loss before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (3,355) Income tax benefit ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2) Net loss ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (3,353) ā ā ā ā ā ā ā ā ā ā (In thousands) ā September 30, ā December 31, ā 2021 2020 Total Assets ā ā ā ā ā ā Mississippi ā $ 87,371 ā $ 83,809 Indiana ā 37,447 ā 37,798 Colorado ā 242,068 ā 44,961 Nevada ā 14,004 ā 13,248 Contracted Sports Wagering ā ā 1,084 ā ā 1,329 Corporate and Other ā 88,118 ā 31,471 ā ā $ 470,092 ā $ 212,616 ā |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation. The interim consolidated financial statements of the Company included herein reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of annualized results for an entire year. The consolidated financial statements include the accounts of Full House and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fair Value and the Fair Value Input Hierarchy | Fair Value and the Fair Value Input Hierarchy. GAAP categorizes the inputs used for fair value into a three-level hierarchy: ā Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities; ā Level 2: Comparable inputs other than quoted prices that are observable for similar assets or liabilities in less active markets; and ā Level 3: Unobservable inputs which may include metrics that market participants would use to estimate values, such as revenue and earnings multiples and relative rates of return. The Company utilizes Level 1 inputs when measuring the fair value of its 2028 Notes (see Note 5). The Company utilizes Level 2 inputs when measuring the fair value of its asset purchases and acquisitions (see Note 4). The Company utilizes Level 3 inputs when measuring the fair value of net assets acquired in business combination transactions, subsequent assessments for impairment, and most financial instruments, including but not limited to the estimated fair value of common stock warrants at issuance and for recurring changes in the related warrant liability (see Note 6). |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash. Restricted cash balances consist of funds initially totaling $180 million, which were placed into a construction reserve account to fund the completion of the Chamonix construction project. |
Accounts Receivable | Accounts Receivable. ā ā ā ā ā ā ā ā ā (In thousands) ā ā September 30, ā December 31, ā 2021 2020 Accounts receivable ā ā $ 4,796 ā $ 5,080 Accounts receivable allowance ā ā (252) ā (176) ā ā ā $ 4,544 ā $ 4,904 ā At September 30, 2021, the balance in accounts receivables includes the sale of āfree playā at Rising Star for $2.1 million in September. Because Indiana has a progressive gaming tax system and Rising Star is one of the smaller casinos in the state, the property has consistently sold its ability to deduct āfree playā in computing gaming taxes to operators in higher tax tiers (and usually sold in the fourth quarter in prior years). Compared to December 31, 2020, the balance in accounts receivables includes the sale of āfree playā at Rising Star for the same amount of $2.1 million in the fourth quarter. |
Revenue Recognition of Accrued Club Points and Deferred Revenues | Revenue Recognition of Accrued Club Points and Deferred Revenues Accrued Club Points: Operating Revenues and Related Costs and Expenses. Gaming revenue is the difference between gaming wins and losses, not the total amount wagered. The Company accounts for its gaming transactions on a portfolio basis as such wagers have similar characteristics and it would not be practical to view each wager on an individual basis. The Company sometimes provides discretionary complimentary goods and services (ādiscretionary compsā), primarily to casino customers. For these types of transactions, the Company allocates revenue to the department providing the complimentary goods or services based upon its estimated standalone selling price, offset by a reduction in casino revenues. Many of the Companyās customers choose to earn points under its customer loyalty programs. As points are accrued, the Company defers a portion of its gaming revenue based on the estimated standalone value of loyalty points being earned by the customer. The standalone value of loyalty points is derived from the retail value of food, beverages, hotel rooms, and other goods or services for which such points may be redeemed. A liability related to these customer loyalty points is recorded, net of estimated breakage and other factors, until the customer redeems these points, primarily for āfree casino play,ā complimentary dining, or hotel stays. Such liabilities were approximately $0.6 million for September 30, 2021 and $0.8 million for December 31, 2020, and these amounts are included in āother accrued liabilitiesā on the consolidated balance sheets. Upon redemption, the related revenue is recognized at retail value within the department providing the goods or services, offset by a reduction in the liability. Revenue for food and beverage, hotel, and other revenue transactions is typically the net amount collected from customers for such goods and services, plus the retail value of (i) discretionary comps and (ii) comps provided in return for redemption of loyalty points. The Company records such revenue as the good or service is transferred to the customer. Additionally, the Company may collect deposits in advance for future hotel reservations or entertainment, among other services, which represent obligations of the Company until the service is provided to the customer. Deferred Revenues: Market Access Fees from Sports Wagering Agreements. Indiana. Colorado. Deferred revenues also include a total of $2.0 million related to the annual prepayment of contracted revenue, as required in two of the Sports Agreements. We received $1.0 million of prepaid revenue for contracted sports operations that commenced in Colorado in December 2020, and $1.0 million for contracted sports operations that commenced in Indiana in April 2021. Such revenues consisted of the following, as discussed above: ā ā ā ā ā ā ā ā ā ā (In thousands) ā ā ā September 30, ā December 31, ā Balance Sheet Location ā 2021 2020 Deferred revenue, current ā Other accrued liabilities ā $ 1,222 ā $ 1,372 Deferred revenue, net of current portion ā Contract liabilities, net of current portion ā ā 4,948 ā ā 5,398 ā ā ā ā $ 6,170 ā $ 6,770 |
Income Taxes | Income Taxes. |
Reclassifications | Reclassifications. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share. |
Leases | Leases. For material leases with terms greater than a year, the Company records right-of-use (āROUā) assets and lease liabilities on the balance sheet, as measured on a discounted basis. For finance leases, the Company recognizes interest expense associated with the lease liability and depreciation expense associated with the ROU asset; for operating leases, the Company recognizes straight-line rent expense. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less. However, costs related to short-term leases with terms greater than one month, which the Company deems material, are disclosed as a component of lease expenses when applicable. Additionally, the Company accounts for new and existing leases containing both lease and non-lease components (āembedded leasesā) together as a single lease component Finance and operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement. As the implicit rate is not determinable in most of the Companyās leases, management uses the Companyās incremental borrowing rate as estimated by third-party valuation specialists in determining the present value of future payments based on the information available at the commencement date and/or modification date. The expected lease terms include options to extend the lease when it is reasonably certain that the Company will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term for operating leases. For finance leases, the ROU asset depreciates on a straight-line basis over the shorter of the lease term or useful life of the ROU asset and the lease liability accretes interest based on the interest method using the discount rate determined at lease commencement. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ā Income Taxes. ā The Company believes that there are no other recently-issued accounting standards not yet effective that are currently likely to have a material impact on its financial statements. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
ORGANIZATION | |
Schedule of Properties | ā ā ā ā Segments and Properties ā Locations Colorado ā ā Bronco Billyās Casino and Hotel Cripple Creek, CO (near Colorado Springs) Chamonix Casino Hotel (under construction) ā Cripple Creek, CO (near Colorado Springs) Indiana ā ā Rising Star Casino Resort Rising Sun, IN (near Cincinnati) Mississippi ā ā Silver Slipper Casino and Hotel Hancock County, MS (near New Orleans) Nevada ā ā Grand Lodge Casino Incline Village, NV Stockmanās Casino Fallon, NV (one hour east of Reno) Contracted Sports Wagering ā ā Three sports wagering websites (āskinsā), all operating ā Colorado Three sports wagering websites (āskinsā), two in operation ā Indiana |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Accounts receivable | ā ā ā ā ā ā ā ā ā (In thousands) ā ā September 30, ā December 31, ā 2021 2020 Accounts receivable ā ā $ 4,796 ā $ 5,080 Accounts receivable allowance ā ā (252) ā (176) ā ā ā $ 4,544 ā $ 4,904 |
Schedule of Deferred revenues | ā ā ā ā ā ā ā ā ā ā (In thousands) ā ā ā September 30, ā December 31, ā Balance Sheet Location ā 2021 2020 Deferred revenue, current ā Other accrued liabilities ā $ 1,222 ā $ 1,372 Deferred revenue, net of current portion ā Contract liabilities, net of current portion ā ā 4,948 ā ā 5,398 ā ā ā ā $ 6,170 ā $ 6,770 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LEASES | |
Components of Lease Expense | The components of lease expense are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended Nine Months Ended ā ā ā ā September 30, ā September 30, Lease Costs ā Classification within Statement of Operations ā 2021 2020 ā 2021 2020 Operating leases: ā ā ā ā ā ā Fixed/base rent Selling, General and Administrative Expenses ā $ 1,112 ā $ 1,156 ā $ 3,357 ā $ 3,478 Short-term payments ā Selling, General and Administrative Expenses ā ā 29 ā ā ā ā ā 29 ā ā ā Variable payments Selling, General and Administrative Expenses ā 385 ā 219 ā 1,254 ā 442 Finance lease: ā ā ā ā ā Amortization of leased assets Depreciation and Amortization ā 39 ā 39 ā 118 ā 118 Interest on lease liabilities Interest Expense, Net ā 38 ā 45 ā 122 ā 139 Total lease costs ā ā ā $ 1,603 ā $ 1,459 ā $ 4,880 ā $ 4,177 ā |
Balance Sheet Information For Leases | Leases recorded on the balance sheet consist of the following: ā ā ā ā ā ā ā ā ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, Leases Balance Sheet Classification 2021 ā 2020 Assets ā ā ā Operating lease assets Operating Lease Right-of-Use Assets, Net $ 16,619 ā $ 17,361 Finance lease assets Property and Equipment, Net (1) ā 4,762 ā 4,879 Total lease assets ā $ 21,381 ā $ 22,240 ā ā ā ā ā ā ā ā ā Liabilities ā ā Current ā ā Operating Current Portion of Operating Lease Obligations ā $ 3,492 ā $ 3,283 Finance Current Portion of Finance Lease Obligation ā 508 ā 491 Noncurrent ā ā ā ā Operating Operating Lease Obligations, Net of Current Portion ā 13,813 ā 14,914 Finance Finance Lease Obligation, Net of Current Portion ā 2,914 ā 3,298 Total lease liabilities ā $ 20,727 ā $ 21,986 __________ (1) Finance lease assets are recorded net of accumulated amortization of $3.0 million and $2.8 million as of September 30, 2021 and December 31, 2020, respectively. |
Operating Lease, Liability, Maturity | ā ā ā ā ā ā ā ā (In thousands) ā ā ā ā ā ā ā Operating Financing Years Ending December 31, ā Leases ā Lease (1) 2021 (excluding the nine months ended September 30, 2021) ā $ 1,234 ā $ 108 2022 ā 4,852 ā 652 2023 ā 3,539 ā 652 2024 ā 1,663 ā 652 2025 ā 1,466 ā 652 Thereafter ā 30,105 ā 1,195 Total future minimum lease payments ā 42,859 ā 3,911 Less: Amount representing interest ā (25,554) ā (489) Present value of lease liabilities ā 17,305 ā 3,422 Less: Current lease obligations ā (3,492) ā (508) Long-term lease obligations ā $ 13,813 ā $ 2,914 __________ (1) |
Finance Lease, Liability, Maturity | ā ā ā ā ā ā ā ā (In thousands) ā ā ā ā ā ā ā Operating Financing Years Ending December 31, ā Leases ā Lease (1) 2021 (excluding the nine months ended September 30, 2021) ā $ 1,234 ā $ 108 2022 ā 4,852 ā 652 2023 ā 3,539 ā 652 2024 ā 1,663 ā 652 2025 ā 1,466 ā 652 Thereafter ā 30,105 ā 1,195 Total future minimum lease payments ā 42,859 ā 3,911 Less: Amount representing interest ā (25,554) ā (489) Present value of lease liabilities ā 17,305 ā 3,422 Less: Current lease obligations ā (3,492) ā (508) Long-term lease obligations ā $ 13,813 ā $ 2,914 __________ (1) |
Other Information Related To Lease Term And Discount Rate | Other information related to lease term and discount rate is as follows: ā ā ā ā ā ā ā Lease Term and Discount Rate ā September 30, 2021 ā December 31, 2020 Weighted-average remaining lease term ā ā ā Operating leases 20.8 years ā 20.4 years Finance lease 6.0 years ā 6.8 years Weighted-average discount rate ā ā ā Operating leases 9.28 % ā 9.41 % Finance lease 4.50 % ā 4.50 % |
Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases is as follows: ā ā ā ā ā ā ā (In thousands) Nine Months Ended ā ā September 30, Cash paid for amounts included in the measurement of lease liabilities: ā 2021 ā 2020 Operating cash flows for operating leases ā $ 3,652 ā $ 3,250 Operating cash flows for finance lease ā $ 122 ā $ 139 Financing cash flows for finance lease ā $ 367 ā $ 369 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LONG-TERM DEBT. | |
Schedule of Long-Term Debt, Related Discounts and Issuance Costs | ā ā ā ā ā ā ā (In thousands) ā September 30, ā December 31, ā ā 2021 ā 2020 Revolving Credit Facility due 2026 ā $ ā ā $ ā Senior Secured Notes due 2028 (1) ā ā 310,000 ā ā ā Senior Secured Notes due 2024 (2) ā ā ā ā ā 106,825 Unsecured Loans (CARES Act) (3) ā ā 5,606 ā ā 5,606 Less: Unamortized discounts and debt issuance costs ā (8,731) ā (5,173) ā ā 306,875 ā 107,258 Less: Current portion of long-term debt ā (1,546) ā (426) ā ā $ 305,329 ā $ 106,832 __________ (1) As of September 30, 2021, the estimated fair value of these notes was approximately $333.3 million. The fair value was estimated using quoted market prices for these notes. (2) The estimated fair value for this non-traded debt instrument can be approximated by its respective carrying value because management believes its terms are representative of market conditions. (3) The estimated fair value for this non-traded debt instrument can be approximated by its respective carrying value because of its similar terms to other CARES Act loans . |
Debt Instrument Redemption | At any time on or after February 15, 2024, the Company may redeem some or all of the 2028 Notes for cash at the following redemption prices: ā ā ā ā Redemption Periods Percentage Premium February 15, 2024 to February 14, 2025 104.125 % February 15, 2025 to February 14, 2026 102.063 % February 15, 2026 and Thereafter ā 100.000 % |
EARNINGS (LOSS) PER SHARE AND_2
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY | |
Schedule of Earnings Per Share, Basic and Diluted | The table below reconciles basic and diluted income (loss) per share of common stock: ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended ā Nine Months Ended ā ā September 30, ā September 30, ā 2021 2020 2021 2020 Numerator: ā ā ā ā Net income (loss) ā basic ā $ 4,619 ā $ 7,708 ā $ 6,658 ā $ (3,353) Adjustment for assumed conversion of warrants ā ā ā ā ā ā ā ā ā ā ā (1,159) Net income (loss) ā diluted ā $ 4,619 ā $ 7,708 ā $ 6,658 ā $ (4,512) ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā Weighted-average common and common share equivalents ā basic ā 34,227 ā 27,106 ā 31,939 ā 27,087 Potential dilution from share-based awards ā ā 2,409 ā ā 358 ā ā 2,400 ā ā ā Potential dilution from assumed conversion of warrants ā ā ā ā ā ā ā 133 Weighted-average common and common share equivalents ā diluted ā 36,636 ā 27,464 ā 34,339 ā 27,220 Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share ā 177 ā 2,360 ā 177 ā 3,534 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SHARE-BASED COMPENSATION. | |
Schedule of Common Stock Options | The following table summarizes information related to the Companyās common stock options as of September 30, 2021: ā ā ā ā ā ā ā ā Weighted ā ā Number ā Average ā ā of Stock ā Exercise ā ā Options ā Price Options outstanding at January 1, 2021 3,183,708 ā $ 1.71 Granted 315,620 ā 7.25 Exercised (185,951) ā 2.00 Canceled/Forfeited (76,333) ā 3.33 Expired ā ā ā Options outstanding at September 30, 2021 3,237,044 ā $ 2.19 Options exercisable at September 30, 2021 2,614,425 ā $ 1.66 |
SEGMENT REPORTING AND DISAGGR_2
SEGMENT REPORTING AND DISAGGREGATED REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING AND DISAGGREGATED REVENUE | |
Schedule of Total Revenues By Segment | The following tables present the Companyās segment information: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 14,578 ā $ 7,906 ā $ 5,288 ā $ 4,734 ā $ ā ā $ 32,506 Food and beverage ā 5,156 ā 891 ā 740 ā 305 ā ā ā 7,092 Hotel ā 1,248 ā 990 ā 231 ā ā ā ā ā 2,469 Other operations, including contracted sports wagering ā 556 ā 2,799 ā 81 ā 93 ā 1,642 ā 5,171 ā ā $ 21,538 ā $ 12,586 ā $ 6,340 ā $ 5,132 ā $ 1,642 ā $ 47,238 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 6,485 ā $ 3,816 ā $ 1,543 ā $ 1,537 ā $ 1,645 ā $ 15,026 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,819) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,427) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (318) Preopening costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (324) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 11,119 Other expense: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,405) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 4,714 Income tax provision ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 95 Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 4,619 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Three Months Ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 13,972 ā $ 7,204 ā $ 6,866 ā $ 3,868 ā $ ā ā $ 31,910 Food and beverage ā 4,231 ā 711 ā 505 ā 165 ā ā ā 5,612 Hotel ā 1,303 ā 1,034 ā 174 ā ā ā ā ā 2,511 Other operations, including contracted sports wagering ā 460 ā 616 ā 88 ā 80 ā 679 ā 1,923 ā ā $ 19,966 ā $ 9,565 ā $ 7,633 ā $ 4,113 ā $ 679 ā $ 41,956 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 6,495 ā $ 2,082 ā $ 3,116 ā $ 1,032 ā $ 631 ā $ 13,356 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,848) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (870) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (108) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (121) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 10,409 Other expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,391) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (403) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,794) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 7,615 Income tax benefit ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (93) Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 7,708 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Nine Months Ended September 30, 2021 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 47,489 ā $ 22,507 ā $ 16,127 ā $ 13,094 ā $ ā ā $ 99,217 Food and beverage ā 15,411 ā 2,577 ā 1,777 ā 868 ā ā ā 20,633 Hotel ā 3,687 ā 3,040 ā 463 ā ā ā ā ā 7,190 Other operations, including contracted sports wagering ā 1,546 ā 3,629 ā 259 ā 254 ā 4,160 ā 9,848 ā ā $ 68,133 ā $ 31,753 ā $ 18,626 ā $ 14,216 ā $ 4,160 ā $ 136,888 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 23,097 ā $ 7,615 ā $ 5,092 ā $ 4,173 ā $ 4,122 ā $ 44,099 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (5,448) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (4,803) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (491) Preopening costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (674) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (647) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 32,019 Other expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (17,531) Loss on extinguishment of debt ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,104) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (1,347) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (24,982) Income before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 7,037 Income tax provision ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 379 Net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ 6,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (In thousands) ā Nine Months Ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Contracted ā ā ā ā ā ā ā ā ā ā ā ā Sports ā ā ā ā Mississippi ā Indiana ā Colorado ā Nevada ā Wagering ā Total Revenues ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Casino ā $ 29,688 ā $ 14,055 ā $ 12,357 ā $ 7,516 ā $ ā ā $ 63,616 Food and beverage ā 10,666 ā 1,956 ā 1,360 ā 614 ā ā ā 14,596 Hotel ā 2,833 ā 2,010 ā 361 ā ā ā ā ā 5,204 Other operations, including contracted sports wagering ā 994 ā 998 ā 170 ā 177 ā 1,565 ā 3,904 ā ā $ 44,181 ā $ 19,019 ā $ 14,248 ā $ 8,307 ā $ 1,565 ā $ 87,320 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Adjusted Segment EBITDA ā $ 9,526 ā $ (769) ā $ 2,448 ā $ 79 ā $ 1,467 ā $ 12,751 Other operating costs and expenses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Depreciation and amortization ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (5,868) Corporate expenses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,899) Project development costs ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (423) Loss on disposal of assets, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (439) Stock-based compensation ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (307) Operating income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2,815 Other (expense) income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Interest expense, net ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (7,329) Adjustment to fair value of warrants ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 1,159 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (6,170) Loss before income taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (3,355) Income tax benefit ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2) Net loss ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (3,353) |
Schedule of Total Assets By Segment | ā ā ā ā ā ā ā ā (In thousands) ā September 30, ā December 31, ā 2021 2020 Total Assets ā ā ā ā ā ā Mississippi ā $ 87,371 ā $ 83,809 Indiana ā 37,447 ā 37,798 Colorado ā 242,068 ā 44,961 Nevada ā 14,004 ā 13,248 Contracted Sports Wagering ā ā 1,084 ā ā 1,329 Corporate and Other ā 88,118 ā 31,471 ā ā $ 470,092 ā $ 212,616 |
ORGANIZATION - Resort (Details)
ORGANIZATION - Resort (Details) | 9 Months Ended | |
Sep. 30, 2021itemsegment | Apr. 23, 2021item | |
Number of casinos operated | 5 | |
Number of casinos owned or leased | 4 | |
Number of casinos located within a hotel owned by a third party | 1 | |
Number of sports skins operating | 6 | |
Number of sports skins commenced operation | 5 | |
Number of segments | segment | 5 | |
INDIANA | ||
Number of sports skins operating | 3 | |
COLORADO | ||
Number of sports skins operating | 3 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Cash Equivalents and Restricted Cash (Details) $ in Millions | Feb. 12, 2021USD ($) |
Cripple Creek Project | |
Basis Of Presentation [Line Items] | |
Restricted cash account | $ 180 |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Accounts receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Sep. 30, 2021 | |
Accounts receivable | $ 5,080 | $ 4,796 |
Accounts receivable allowance | (176) | (252) |
Accounts receivable, net | 4,904 | 4,544 |
Rising Star Casino Resort | ||
Increase in accounts receivable | $ 2,100 | $ 2,100 |
BASIS OF PRESENTATION AND SIG_6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Deferred Revenues: Market Access Fees from Sports Wagering Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 | Dec. 22, 2020 | Dec. 31, 2019 |
Basis Of Presentation [Line Items] | |||||
Deferred revenues | $ 6,170 | $ 6,770 | |||
Liabilities in other accrued expenses | 600 | $ 800 | |||
Bronco Billy's And Rising Star Casino Resort [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Deferred revenues | $ 2,000 | ||||
Rising Star Casino Resort | |||||
Basis Of Presentation [Line Items] | |||||
Deferred revenues | $ 1,000 | ||||
Bronco Billy's Casino and Hotel | |||||
Basis Of Presentation [Line Items] | |||||
Deferred revenues | $ 1,000 | ||||
Sports Wagering Agreements | |||||
Basis Of Presentation [Line Items] | |||||
Deferred revenues | $ 6,000 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Deferred Revenues (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred revenue, current | $ 1,222 | $ 1,372 | |
Deferred revenue, net of current portion | 4,948 | 5,398 | |
Contract with Customer, Liability, Total | $ 6,170 | $ 6,770 | |
Sports Wagering Agreements | |||
Contract with Customer, Liability, Total | $ 6,000 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Leases (Details) | Sep. 30, 2021 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jan. 01, 2018USD ($) | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020USD ($) | Jun. 30, 2017USD ($)ftĀ² | May 31, 2020USD ($) | May 31, 2020USD ($) | Sep. 30, 2021USD ($)leaseOptionroom | Dec. 31, 2004USD ($)a | Nov. 30, 2018USD ($) |
Lessee, Lease, Description [Line Items] | ||||||||||
Number of finance leases | lease | 1 | |||||||||
Grand Lodge Casino facility | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Rent | $ 166,667 | |||||||||
Lessor acquisition price, EBITDA measurement period | 12 months | |||||||||
Abatement rent amount of undiscounted cash | $ 208,000 | |||||||||
Reduction In Rent By Percentage | 50.00% | 50.00% | 25.00% | |||||||
Corporate Office Lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Rent | $ 200,000 | |||||||||
Office lease, square feet | ftĀ² | 4,479 | |||||||||
Land lease | Land Lease Of Silver Slipper Casino Site | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Abatement rent amount of undiscounted cash | $ 155,000 | |||||||||
Land lease | Land Lease Of Silver Slipper Casino Site | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Rent | $ 77,500 | |||||||||
Percentage of gross gaming revenue | 3.00% | |||||||||
Gross gaming revenue (in excess of) | $ 3,650,000 | |||||||||
Cost to exercise purchase option | $ 15,500,000 | |||||||||
Retained interest in percentages of net income | 3.00% | |||||||||
Retained interest in percentages of net income, term | 10 years | |||||||||
Land lease | Land Lease Of Silver Slipper Casino Site | Marshland | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of land subject to ground lease | a | 31 | |||||||||
Land lease | Land Lease Of Silver Slipper Casino Site | Parcel | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of land subject to ground lease | a | 7 | |||||||||
Certain parking lots and buildings | Bronco Billy's Casino and Hotel | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Cost to exercise purchase option | $ 7,600,000 | |||||||||
Number of original renewal options | Option | 6 | |||||||||
Land, buildings and improvements | Various Buildings And Land In Cripple Creak, Colorado | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Maximum purchase price on purchase option | $ 2,800,000 | |||||||||
Land, buildings and improvements | Various Buildings And Land In Cripple Creak, Colorado | Purchase dates thereafter | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Cost to exercise purchase option | $ 2,800,000 | |||||||||
Land, buildings and improvements | Lease Terms, Option One | Various Buildings And Land In Cripple Creak, Colorado | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lessee, Operating Lease, Term of Contract | 3 years | |||||||||
Land, buildings and improvements | Lease Terms, Option Two | Various Buildings And Land In Cripple Creak, Colorado | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease extension term | 2 years | |||||||||
Annual lease payments | $ 300,000 | |||||||||
Land, buildings and improvements | Lease Terms, Option One | Various Buildings And Land In Cripple Creak, Colorado | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lessee Leasing Arrangements Operating Leases Annual Rent Expense | $ 200,000 | |||||||||
Rising Star Casino Resort | Rising Sun/Ohio County First, Inc | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Number of hotel rooms | room | 104 | |||||||||
Project actual cost | $ 7,700,000 | |||||||||
Potential purchase price | 3,400,000 | |||||||||
Option price at lease maturity | $ 1 | |||||||||
Minimum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease terms | 1 month | |||||||||
Maximum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease terms | 37 years |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
LEASES | ||||
Fixed/base rent | $ 1,112 | $ 1,156 | $ 3,357 | $ 3,478 |
Short-term payments | 29 | 29 | ||
Variable payments | 385 | 219 | 1,254 | 442 |
Amortization of leased assets | 39 | 39 | 118 | 118 |
Interest on lease liabilities | 38 | 45 | 122 | 139 |
Total lease costs | $ 1,603 | $ 1,459 | $ 4,880 | $ 4,177 |
LEASES - Balance Sheet Details
LEASES - Balance Sheet Details (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LEASES | ||
Operating lease assets | $ 16,619 | $ 17,361 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease assets | |
Finance lease assets | $ 4,762 | 4,879 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | |
Total lease assets | $ 21,381 | 22,240 |
Current operating lease liability | $ 3,492 | 3,283 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current operating lease liability | |
Current finance lease liability | $ 508 | 491 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current finance lease liability | |
Noncurrent operating lease liability | $ 13,813 | 14,914 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liability | |
Noncurrent finance lease liability | $ 2,914 | 3,298 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent finance lease liability | |
Total lease liabilities | $ 20,727 | 21,986 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 3,000 | $ 2,800 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($)room | Dec. 31, 2020USD ($) |
Operating Leases | ||
2021 (excluding the nine months ended September 30, 2021) | $ 1,234 | |
2022 | 4,852 | |
2023 | 3,539 | |
2024 | 1,663 | |
2025 | 1,466 | |
Thereafter | 30,105 | |
Total future minimum lease payments | 42,859 | |
Less: Amount representing interest | (25,554) | |
Present value of lease liabilities | 17,305 | |
Less: Current lease obligations | (3,492) | $ (3,283) |
Noncurrent operating lease liability | 13,813 | 14,914 |
Financing Lease | ||
2021 (excluding the nine months ended September 30, 2021) | 108 | |
2022 | 652 | |
2023 | 652 | |
2024 | 652 | |
2025 | 652 | |
Thereafter | 1,195 | |
Total future minimum lease payments | 3,911 | |
Less: Amount representing interest | (489) | |
Present value of lease liabilities | 3,422 | |
Less: Current lease obligations | (508) | (491) |
Long-term lease obligations | $ 2,914 | $ 3,298 |
Rising Star Casino Resort | Rising Sun/Ohio County First, Inc | ||
Financing Lease | ||
Number of hotel rooms | room | 104 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
LEASES | ||
Weighted-average remaining lease term, operating leases | 20 years 9 months 18 days | 20 years 4 months 24 days |
Weighted-average remaining lease term, finance leases | 6 years | 6 years 9 months 18 days |
Weighted-average discount rate, operating leases | 9.28% | 9.41% |
Weighted-average discount rate, finance leases | 4.50% | 4.50% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 3,652 | $ 3,250 |
Operating cash flows for finance lease | 122 | 139 |
Financing cash flows for finance lease | $ 367 | $ 369 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - Cripple Creek Land and Real Estate Purchases | Apr. 16, 2021USD ($) | Mar. 31, 2021USD ($)aitemroom |
Carr Manor, a boutique hotel | ||
Acquisitions [Line Items] | ||
Number of guest room in the hotel | room | 14 | |
Consideration of asset acquisition | $ 2,800,000 | |
Number of parcels of land purchased | item | 5 | |
Land in purchase option (in acres) | a | 1.6 | |
Plot and Building | ||
Acquisitions [Line Items] | ||
Asset purchase | $ 600,000 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized discounts and debt issuance costs | $ (8,731) | $ (5,173) |
Long-term debt, net | 306,875 | 107,258 |
Current portion of long-term debt | (1,546) | (426) |
Long-term debt, net of current portion, unamortized discount and issuance costs | 305,329 | 106,832 |
Senior Secured Notes Due 2028 | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 310,000 | |
Estimated fair value | 333,300 | |
Senior Secured Notes Due 2024 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 106,825 | |
Unsecured Loans CARES Act [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 5,606 | $ 5,606 |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Notes Narrative (Details) - Senior Secured Notes - USD ($) $ in Millions | Feb. 12, 2021 | Sep. 30, 2021 | Feb. 02, 2021 | Feb. 02, 2018 |
Line of Credit Facility [Line Items] | ||||
Percentage of prepayment Premium | 0.90% | |||
Senior Secured Notes Due 2028 | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount | $ 310 | |||
Interest rate | 8.25% | |||
Borrowed funds designated for constructing project | $ 180 | |||
Proceeds from the offering | $ 8 | |||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||
Percentage of redemption of equity offering | 108.25% | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Senior Secured Notes Due 2024 | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount | $ 100 |
LONG-TERM DEBT - Redemption of
LONG-TERM DEBT - Redemption of Senior Secured Notes (Details) - Senior Secured Notes | Feb. 12, 2021 |
Senior Secured Notes Due 2028 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 35.00% |
February 15, 2024 to February 14, 2025 | Senior Secured Notes Due 2028 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 104.125% |
February 15, 2025 to February 14, 2026 | Senior Secured Notes Due 2028 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 102.063% |
February 15, 2026 and Thereafter | Senior Secured Notes Due 2028 | |
Line of Credit Facility [Line Items] | |
Percentage Premium | 100.00% |
LONG TERM Debt - Prior Notes (D
LONG TERM Debt - Prior Notes (Details) - Senior Secured Notes Due 2024 - Senior Secured Notes - USD ($) $ in Millions | May 10, 2019 | Feb. 02, 2018 |
Debt Instrument, Face Amount | $ 100 | |
Additional aggregate principal amount | $ 10 | |
Applicable margin rate | 7.00% | |
LIBOR | ||
Applicable margin rate | 1.00% |
LONG TERM Debt - Revolving Cred
LONG TERM Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Agreement of revolving credit facility | $ 15,000 | |
Term of unsecured note | 5 years | |
Percentage of commitment fee | 0.50% | |
Credit Facility | $ 0 | |
LIBOR | Until Completion of Chamonix Project | ||
Debt Instrument [Line Items] | ||
Applicable margin rate | 3.50% | |
LIBOR | After Completion of Chamonix Project | ||
Debt Instrument [Line Items] | ||
Applicable margin rate | 3.00% | |
Base Rate | Until Completion of Chamonix Project | ||
Debt Instrument [Line Items] | ||
Applicable margin rate | 2.50% | |
Base Rate | After Completion of Chamonix Project | ||
Debt Instrument [Line Items] | ||
Applicable margin rate | 2.00% |
LONG TERM Debt - Unsecured Loan
LONG TERM Debt - Unsecured Loans (Details) - Unsecured Debt - USD ($) | Sep. 03, 2021 | May 08, 2020 | Sep. 30, 2021 |
Debt Instrument, Term | 2 years | ||
Unsecured Loans CARES Act [Member] | |||
Debt Instrument, Face Amount | $ 5,606,200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Deferment period | 15 months | ||
Unsecured Loans CARES Act [Member] | Scenario, Plan [Member] | |||
Periodic payment | $ 128,557 |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY (Details) - USD ($) $ in Thousands | Feb. 12, 2021 | May 13, 2016 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Class of Warrant or Right [Line Items] | |||||||
Warrants repurchase price | $ 4,000 | ||||||
Adjustment to fair value of warrants | $ 1,300 | $ 403 | $ 1,347 | $ (1,159) | |||
Common stock warrant liability | $ 2,653 | ||||||
Line of Credit | Second Lien Term Loan | Warrant to Purchase Common Equity | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants issued (in shares) | 1,006,568 | ||||||
Payments for Repurchase of Warrants | $ 4,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INCOME TAXES | ||||
Effective income tax rate | 2.00% | (1.20%) | 5.40% | 0.10% |
Federal income tax benefit at U.S. statutory rate | 21.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENT (Details) | Jul. 13, 2021USD ($) | Jun. 08, 2021USD ($) | Nov. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Paid for option agreement | $ 3,652,000 | $ 3,250,000 | |||
Public Trust Tidelands Lease | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Paid for option agreement | $ 5,000 | ||||
Lease term | 30 years | ||||
Lease extension term | 30 years | ||||
Option to extend | true | ||||
Option exercise period | 6 months | ||||
Number of additional renewals for option agreement | 3 | ||||
Period of each addition renewals | 6 months | ||||
Value for each addition renewals | $ 5,000 | ||||
Public Trust Tidelands Lease | First eighteen months or until the beginning of next six months | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Rent expenses | 10,000 | ||||
Public Trust Tidelands Lease | After eighteen months | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Rent expenses | $ 105,300 | ||||
Subsequent Event | Public Trust Tidelands Lease | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Period of each addition renewals | 6 months | ||||
Value for each addition renewals | $ 5,000 |
EARNINGS (LOSS) PER SHARE AND_3
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY - Reconciliation of Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net loss - basic | $ 4,619 | $ 7,708 | $ 6,658 | $ (3,353) |
Adjustment for assumed conversion of warrants | (1,159) | |||
Net loss - diluted | $ 4,619 | $ 7,708 | $ 6,658 | $ (4,512) |
Denominator: | ||||
Weighted-average common and common share equivalents - basic (in shares) | 34,227 | 27,106 | 31,939 | 27,087 |
Potential dilution from share-based awards (in shares) | 2,409 | 358 | 2,400 | |
Potential dilution from assumed conversion of warrants (in shares) | 133 | |||
Weighted-average common and common share equivalents - diluted (in shares) | 36,636 | 27,464 | 34,339 | 27,220 |
Anti-dilutive share-based awards and warrants excluded from the calculation of diluted loss per share (in shares) | 177 | 2,360 | 177 | 3,534 |
EARNINGS (LOSS) PER SHARE AND_4
EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY - Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 29, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Over-Allotment Option | |||
Underwritten public offering | 6,917,250 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Common Stock sold | 902,250 | ||
Subscription price (in USD per share) | $ 6.65 | ||
Net proceeds | $ 43 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | May 19, 2021 | Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock compensation expense | $ 324 | $ 121 | $ 647,000 | $ 307,000 | ||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 1.66 | $ 1.66 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 315,620 | |||||
Unrecognized compensation cost | $ 1,700 | $ 1,700 | ||||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 3 months 18 days | |||||
2015 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future issuance (in shares) | 2,000,000 | 1,740,478 | 1,740,478 | |||
2015 Equity Incentive Plan | Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage of stock options | 0.167% | |||||
Stock Based Awards Incentive Marker 2 Percentage | 10.00% | |||||
2015 Equity Incentive Plan | Restricted stock | Share-based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance | 31,512 | |||||
Vesting period of remaining shares | 1 year | |||||
Stock Based Awards Incentive Marker 1 Percentage | 12.00% | |||||
2015 Equity Incentive Plan | Three Company Executives [Member] | Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,750 | 69,975 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summarizes information related to our common stock options (Details) - Stock options | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Stock Options | |
Options outstanding, beginning balance (in shares) | shares | 3,183,708 |
Granted (in shares) | shares | 315,620 |
Exercised (in shares) | shares | (185,951) |
Canceled/Forfeited (in shares) | shares | (76,333) |
Options outstanding, ending balance (in shares) | shares | 3,237,044 |
Options exercisable (in shares) | shares | 2,614,425 |
Weighted Average Exercise Price | |
Weighted average exercise price, Options outstanding (in dollars per share) | $ / shares | $ 1.71 |
Granted (in dollars per share) | $ / shares | 7.25 |
Exercised (in dollars per share) | $ / shares | 2 |
Canceled/Forfeited (in dollars per share) | $ / shares | 3.33 |
Weighted average exercise price, Options outstanding (in dollars per share) | $ / shares | 2.19 |
Weighted average exercise price, Options exercisable (in dollars per share) | $ / shares | $ 1.66 |
SEGMENT REPORTING AND DISAGGR_3
SEGMENT REPORTING AND DISAGGREGATED REVENUE - Selected Statement of Operations Data (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||||||
Number of segments | segment | 5 | |||||||
Net Revenues | $ 47,238 | $ 41,956 | $ 136,888 | $ 87,320 | ||||
Adjusted Segment EBITDA | 15,026 | 13,356 | 44,099 | 12,751 | ||||
Depreciation and amortization | (1,819) | (1,848) | (5,448) | (5,868) | ||||
Corporate expenses | (1,427) | (870) | (4,803) | (2,899) | ||||
Project development costs | (318) | (108) | (491) | (423) | ||||
Preopening costs | (17) | (17) | ||||||
Loss on disposal of assets, net | (2) | (674) | (439) | |||||
Stock-based compensation | (324) | (121) | (647) | (307) | ||||
Operating income | 11,119 | 10,409 | 32,019 | 2,815 | ||||
Other (expense) income: | ||||||||
Interest expense, net | (6,405) | (2,391) | (17,531) | (7,329) | ||||
Loss on extinguishment of debt | (6,104) | 0 | ||||||
Adjustment to fair value of warrants | $ (1,300) | (403) | (1,347) | 1,159 | ||||
Nonoperating Income (Expense) | (6,405) | (2,794) | (24,982) | (6,170) | ||||
Income (loss) before income taxes | 4,714 | 7,615 | 7,037 | (3,355) | ||||
Income tax provision (benefit) | 95 | (93) | 379 | (2) | ||||
Net income (loss) | 4,619 | $ 5,484 | $ (3,445) | 7,708 | $ (6,703) | $ (4,358) | 6,658 | (3,353) |
Mississippi | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 21,538 | 19,966 | 68,133 | 44,181 | ||||
Adjusted Segment EBITDA | 6,485 | 6,495 | 23,097 | 9,526 | ||||
Indiana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 12,586 | 9,565 | 31,753 | 19,019 | ||||
Adjusted Segment EBITDA | 3,816 | 2,082 | 7,615 | (769) | ||||
Colorado | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 6,340 | 7,633 | 18,626 | 14,248 | ||||
Adjusted Segment EBITDA | 1,543 | 3,116 | 5,092 | 2,448 | ||||
Nevada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 5,132 | 4,113 | 14,216 | 8,307 | ||||
Adjusted Segment EBITDA | 1,537 | 1,032 | 4,173 | 79 | ||||
Contracted Sports Wagering | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 1,642 | 679 | 4,160 | 1,565 | ||||
Adjusted Segment EBITDA | 1,645 | 631 | 4,122 | 1,467 | ||||
Casino | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 32,506 | 31,910 | 99,217 | 63,616 | ||||
Casino | Mississippi | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 14,578 | 13,972 | 47,489 | 29,688 | ||||
Casino | Indiana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 7,906 | 7,204 | 22,507 | 14,055 | ||||
Casino | Colorado | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 5,288 | 6,866 | 16,127 | 12,357 | ||||
Casino | Nevada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 4,734 | 3,868 | 13,094 | 7,516 | ||||
Food and beverage | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 7,092 | 5,612 | 20,633 | 14,596 | ||||
Food and beverage | Mississippi | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 5,156 | 4,231 | 15,411 | 10,666 | ||||
Food and beverage | Indiana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 891 | 711 | 2,577 | 1,956 | ||||
Food and beverage | Colorado | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 740 | 505 | 1,777 | 1,360 | ||||
Food and beverage | Nevada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 305 | 165 | 868 | 614 | ||||
Hotel | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 2,469 | 2,511 | 7,190 | 5,204 | ||||
Hotel | Mississippi | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 1,248 | 1,303 | 3,687 | 2,833 | ||||
Hotel | Indiana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 990 | 1,034 | 3,040 | 2,010 | ||||
Hotel | Colorado | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 231 | 174 | 463 | 361 | ||||
Other operations, including online/mobile sports operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 5,171 | 1,923 | 9,848 | 3,904 | ||||
Other operations, including online/mobile sports operations | Mississippi | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 556 | 460 | 1,546 | 994 | ||||
Other operations, including online/mobile sports operations | Indiana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 2,799 | 616 | 3,629 | 998 | ||||
Other operations, including online/mobile sports operations | Colorado | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 81 | 88 | 259 | 170 | ||||
Other operations, including online/mobile sports operations | Nevada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | 93 | 80 | 254 | 177 | ||||
Other operations, including online/mobile sports operations | Contracted Sports Wagering | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenues | $ 1,642 | $ 679 | $ 4,160 | $ 1,565 |
SEGMENT REPORTING AND DISAGGR_4
SEGMENT REPORTING AND DISAGGREGATED REVENUE - Selected Balance Sheet Data (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 470,092 | $ 212,616 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | 134,244 | 115,772 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 88,118 | 31,471 |
Mississippi | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 87,371 | 83,809 |
Indiana | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 37,447 | 37,798 |
Colorado | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 242,068 | 44,961 |
Nevada | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 14,004 | 13,248 |
Contracted Sports Wagering | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 1,084 | $ 1,329 |