Note 9 - Segment Information

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 9.    SEGMENT INFORMATION

We have aggregated our properties in order to present three Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South. The table below lists the classification of each of our properties.

Las Vegas Locals
Gold Coast Hotel and Casino	Las Vegas, Nevada
The Orleans Hotel and Casino	Las Vegas, Nevada
Sam's Town Hotel and Gambling Hall	Las Vegas, Nevada
Suncoast Hotel and Casino	Las Vegas, Nevada
Eastside Cannery Casino and Hotel (1)	Las Vegas, Nevada
Aliante Casino + Hotel + Spa	North Las Vegas, Nevada
Cannery Casino Hotel	North Las Vegas, Nevada
Jokers Wild	Henderson, Nevada
Downtown Las Vegas
California Hotel and Casino	Las Vegas, Nevada
Fremont Hotel & Casino	Las Vegas, Nevada
Main Street Station Hotel and Casino	Las Vegas, Nevada
Midwest & South
Par-A-Dice Casino (2)	East Peoria, Illinois
Belterra Casino Resort (4)	Florence, Indiana
Blue Chip Casino Hotel Spa	Michigan City, Indiana
Diamond Jo Casino	Dubuque, Iowa
Diamond Jo Worth	Northwood, Iowa
Kansas Star Casino	Mulvane, Kansas
Amelia Belle Casino	Amelia, Louisiana
Delta Downs Racetrack Hotel & Casino	Vinton, Louisiana
Evangeline Downs Racetrack & Casino	Opelousas, Louisiana
Sam's Town Shreveport	Shreveport, Louisiana
Treasure Chest Casino	Kenner, Louisiana
IP Casino Resort Spa	Biloxi, Mississippi
Sam's Town Hotel and Gambling Hall Tunica	Tunica, Mississippi
Ameristar Casino * Hotel Kansas City (4)	Kansas City, Missouri
Ameristar Casino * Resort * Spa St. Charles (4)	St. Charles, Missouri
Belterra Park (4)	Cincinnati, Ohio
Valley Forge Casino Resort (3)	King of Prussia, Pennsylvania

⁽¹⁾ Eastside Cannery remains closed since March 18, 2020 due to the current levels of demand in the market.

⁽²⁾ Par-A-Dice was temporarily closed on November 20, 2020 and subsequently reopened on January 16, 2021.

⁽³⁾ Valley Forge was temporarily closed on December 12, 2020 and subsequently reopened on January 4, 2021.

⁽⁴⁾ Property is subject to a master lease agreement with a real estate investment trust.

Results of Operations - Total Reportable Segment Revenues and Adjusted EBITDAR

We evaluate each property's profitability based on Property Adjusted EBITDAR, which represents each property's earnings before interest expense, income taxes, depreciation and amortization, deferred rent, share-based compensation expense, project development, preopening and writedown expenses, impairments of assets, other operating items, net, gain or loss on early extinguishments and modifications of debt, other items, net and master lease rent expense, as applicable. Total Reportable Segment Adjusted EBITDAR is the aggregate sum of the Property Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest & South segments. Results for Downtown Las Vegas include the results of our Hawaii-based travel agency and captive insurance company as our Downtown Las Vegas properties cater to the Hawaiian market. Results for Lattner, our Illinois distributed gaming operator, and for our online gaming operations, which are in New Jersey and six of the nine states in the Midwest & South where we operate properties, are included in our Midwest & South segment.

EBITDAR is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with GAAP, provides our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDAR when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results.

The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments:

	Three Months Ended June 30, 2022
			Food &
	Gaming		Beverage		Room		Other		Total
(In thousands)	Revenue		Revenue		Revenue		Revenue		Revenue
Revenues
Las Vegas Locals	$	176,875	$	22,800	$	22,889	$	13,897	$	236,461
Downtown Las Vegas		34,934		10,573		6,204		2,188		53,899
Midwest & South		473,116		36,926		20,811		73,237		604,090
Total Revenues	$	684,925	$	70,299	$	49,904	$	89,322	$	894,450

	Three Months Ended June 30, 2021
			Food &
	Gaming		Beverage		Room		Other		Total
(In thousands)	Revenue		Revenue		Revenue		Revenue		Revenue
Revenues
Las Vegas Locals	$	187,511	$	19,117	$	18,481	$	10,986	$	236,095
Downtown Las Vegas		27,190		6,502		3,448		1,640		38,780
Midwest & South		512,761		31,809		17,148		57,009		618,727
Total Revenues	$	727,462	$	57,428	$	39,077	$	69,635	$	893,602

	Six Months Ended June 30, 2022
			Food &
	Gaming		Beverage		Room		Other		Total
(In thousands)	Revenue		Revenue		Revenue		Revenue		Revenue
Revenues
Las Vegas Locals	$	350,465	$	43,137	$	42,546	$	27,875	$	464,023
Downtown Las Vegas		67,377		20,282		11,600		4,124		103,383
Midwest & South		935,037		70,623		38,167		143,960		1,187,787
Total Revenues	$	1,352,879	$	134,042	$	92,313	$	175,959	$	1,755,193

	Six Months Ended June 30, 2021
			Food &
	Gaming		Beverage		Room		Other		Total
(In thousands)	Revenue		Revenue		Revenue		Revenue		Revenue
Revenues
Las Vegas Locals	$	336,733	$	32,547	$	29,168	$	20,070	$	418,518
Downtown Las Vegas		42,036		10,314		5,269		2,594		60,213
Midwest & South		966,619		58,679		30,630		112,250		1,168,178
Total Revenues	$	1,345,388	$	101,540	$	65,067	$	134,914	$	1,646,909

The following table reconciles, for the periods indicated, Total Reportable Segment Adjusted EBITDAR to net income, as reported in our accompanying condensed consolidated statements of operations:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2022			2021			2022			2021
Adjusted EBITDAR
Las Vegas Locals	$	125,334		$	133,570		$	244,029		$	224,212
Downtown Las Vegas		22,123			15,421			40,512			17,861
Midwest & South		229,049			259,992			452,530			478,141
Corporate expense		(22,633	)		(23,588	)		(44,362	)		(42,222	)
Adjusted EBITDAR		353,873			385,395			692,709			677,992
Other operating costs and expenses
Deferred rent		192			207			384			414
Master lease rent expense		26,654			26,175			52,960			52,090
Depreciation and amortization		66,757			67,279			129,235			131,746
Share-based compensation expense		14,100			12,823			22,833			18,524
Project development, preopening and writedowns		912			1,454			(9,117	)		2,869
Other operating items, net		188			11,115			286			12,272
Total other operating costs and expenses		108,803			119,053			196,581			217,915
Operating income		245,070			266,342		$	496,128		$	460,077
Other expense (income)
Interest income		(483	)		(455	)		(903	)		(964	)
Interest expense, net of amounts capitalized		36,466			55,131			74,124			113,021
Loss on early extinguishments and modifications of debt		16,509			65,475			19,809			65,475
Other, net		3,750			237			3,497			2,169
Total other expense, net		56,242			120,388			96,527			179,701
Income before income taxes		188,828			145,954			399,601			280,376
Income tax provision		(42,065	)		(32,225	)		(89,910	)		(64,486	)
Net income	$	146,763		$	113,729		$	309,691		$	215,890

For purposes of this presentation, corporate expense excludes its portion of share-based compensation expense. Corporate expense represents unallocated payroll, professional fees, aircraft expenses and various other expenses not directly related to our casino and hotel operations.

Total Reportable Segment Assets

The Company's assets by Reportable Segment consisted of the following amounts:

	June 30,		December 31,
(In thousands)	2022		2021
Assets
Las Vegas Locals	$	1,610,604	$	1,641,409
Downtown Las Vegas		238,764		228,161
Midwest & South		3,886,878		3,947,076
Total Reportable Segment Assets		5,736,246		5,816,646
Corporate		313,907		407,523
Total Assets	$	6,050,153	$	6,224,169