Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GOLDEN ENTERTAINMENT, INC. | |
Entity Central Index Key | 0001071255 | |
Trading Symbol | gden | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 27,750,608 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 108,259 | $ 116,071 |
Accounts receivable, net of allowance of $624 and $503 | 16,129 | 12,779 |
Prepaid expenses | 21,358 | 17,722 |
Inventories | 7,080 | 6,759 |
Other | 3,327 | 3,428 |
Total current assets | 156,153 | 156,759 |
Property and equipment, net | 1,023,182 | 894,953 |
Operating lease right-of-use assets, net | 163,044 | |
Goodwill | 182,870 | 158,134 |
Intangible assets, net | 151,998 | 141,128 |
Other assets | 12,936 | 15,595 |
Total assets | 1,690,183 | 1,366,569 |
Current liabilities | ||
Current portion of long-term debt and finance leases | 9,907 | 10,480 |
Current portion of operating leases | 36,050 | |
Accounts payable | 24,189 | 27,812 |
Accrued taxes, other than income taxes | 8,835 | 6,540 |
Accrued payroll and related | 22,589 | 19,780 |
Accrued liabilities | 22,462 | 18,848 |
Total current liabilities | 124,032 | 83,460 |
Long-term debt, net and finance leases | 1,104,961 | 960,563 |
Non-current operating leases | 142,444 | |
Deferred income taxes | 1,942 | 2,593 |
Other long-term obligations | 1,482 | 4,801 |
Total liabilities | 1,374,861 | 1,051,417 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity | ||
Common stock, $.01 par value; authorized 100,000 shares; 27,743 and 26,779 common shares issued and outstanding, respectively | 277 | 268 |
Additional paid-in capital | 455,696 | 435,245 |
Accumulated deficit | (140,651) | (120,361) |
Total shareholders' equity | 315,322 | 315,152 |
Total liabilities and shareholders' equity | $ 1,690,183 | $ 1,366,569 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 624 | $ 503 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 27,743,000 | 26,779,000 |
Common stock, shares outstanding (in shares) | 27,743,000 | 26,779,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues | |||
Total revenues | $ 239,892 | $ 214,789 | |
Expenses | |||
Other operating | 6,434 | 3,996 | |
Selling, general and administrative | 56,947 | 44,206 | |
Depreciation and amortization | 27,265 | 25,237 | |
Acquisition and severance expenses | 1,544 | 1,299 | |
Preopening expenses | 778 | 448 | [1] |
Loss on disposal of assets | 247 | 77 | |
Total expenses | 228,178 | 198,108 | |
Operating income | 11,714 | 16,681 | |
Non-operating income (expense) | |||
Interest expense, net | (18,135) | (14,743) | |
Change in fair value of derivative | (2,248) | 3,211 | |
Total non-operating expense, net | (20,383) | (11,532) | |
Income (loss) before income tax benefit | (8,669) | 5,149 | |
Income tax benefit (provision) | 651 | (1,219) | |
Net income (loss) | $ (8,018) | $ 3,930 | |
Weighted-average common shares outstanding | |||
Basic | 27,570 | 27,149 | |
Dilutive impact of stock options and restricted stock units | 2,379 | ||
Diluted | 27,570 | 29,528 | |
Net income (loss) per share | |||
Basic | $ (0.29) | $ 0.14 | |
Diluted | $ (0.29) | $ 0.13 | |
Gaming [Member] | |||
Revenues | |||
Total revenues | $ 143,792 | $ 133,863 | |
Expenses | |||
Cost of goods and services sold | 82,348 | 77,688 | |
Food and beverage [Member] | |||
Revenues | |||
Total revenues | 49,758 | 42,603 | |
Expenses | |||
Cost of goods and services sold | 38,214 | 33,592 | |
Rooms [Member] | |||
Revenues | |||
Total revenues | 31,287 | 26,127 | |
Expenses | |||
Cost of goods and services sold | 14,401 | 11,565 | |
Other [Member] | |||
Revenues | |||
Total revenues | $ 15,055 | $ 12,196 | |
[1] | Preopening expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards players club. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balances at Dec. 31, 2017 | $ 319,913 | $ 264 | $ 399,510 | $ (79,861) |
Balances (in shares) at Dec. 31, 2017 | 26,413,000 | |||
Share-based compensation | 1,844 | 1,844 | ||
Issuance of common stock, net of offering costs | 25,608 | $ 10 | 25,598 | |
Issuance of common stock, net of offering costs (in shares) | 975,000 | |||
Net income (loss) | 3,930 | 3,930 | ||
Balances at Mar. 31, 2018 | 351,295 | $ 274 | 426,952 | (75,931) |
Balances (in shares) at Mar. 31, 2018 | 27,388,000 | |||
Balances at Dec. 31, 2018 | 315,152 | $ 268 | 435,245 | (120,361) |
Balances (in shares) at Dec. 31, 2018 | 26,779,000 | |||
Cumulative effect, change in accounting for leases, net of tax (ASU 842 [Member]) at Dec. 31, 2018 | (12,272) | (12,272) | ||
Issuance of common stock related to business combination | $ 16,608 | $ 9 | 16,599 | |
Issuance of common stock related to business combination (In Shares) | 911,000 | |||
Proceeds from issuance of stock on options exercised (in shares) | 2,500 | 53,000 | ||
Share-based compensation | $ 4,140 | 4,140 | ||
Tax benefit from share-based compensation | (288) | (288) | ||
Net income (loss) | (8,018) | (8,018) | ||
Balances at Mar. 31, 2019 | $ 315,322 | $ 277 | $ 455,696 | $ (140,651) |
Balances (in shares) at Mar. 31, 2019 | 27,743,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ (8,018) | $ 3,930 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,265 | 25,237 |
Amortization of debt issuance costs and discounts on debt | 1,261 | 1,267 |
Share-based compensation | 4,140 | 1,844 |
Loss on disposal of property and equipment | 247 | 77 |
Change in fair value of derivative | 2,248 | (3,211) |
Deferred income taxes | (651) | 373 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (1,734) | 646 |
Income taxes receivable | 193 | 846 |
Prepaid expenses | (980) | 2,542 |
Inventories and other current assets | 527 | 797 |
Accounts payable and other accrued expenses | 277 | (5,359) |
Accrued taxes, other than income taxes | 1,523 | 807 |
Other | 465 | 263 |
Net cash provided by operating activities | 26,763 | 30,059 |
Cash flows from investing activities | ||
Purchase of property and equipment, net of change in construction payables | (27,094) | (10,242) |
Acquisition of business, net of cash acquired | (148,952) | |
Proceeds from disposal of property and equipment | 26 | |
Other investing activities | (45) | 28 |
Net cash used in investing activities | (176,065) | (10,214) |
Cash flows from financing activities | ||
Repayments of term loans | (2,000) | (2,000) |
Borrowings under revolving credit facility | 145,000 | |
Repayments of notes payable | (855) | (109) |
Principal payments under finance leases | (367) | (229) |
Proceeds from issuance of common stock, net of issuance costs | 25,608 | |
Tax withholding on share-based payments | (288) | |
Net cash provided by financing activities | 141,490 | 23,270 |
Cash and cash equivalents | ||
Change in cash and cash equivalents | (7,812) | 43,115 |
Balance, beginning of period | 116,071 | 90,579 |
Balance, end of period | 108,259 | 133,694 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 16,579 | 14,615 |
Cash received for income taxes, net | (193) | |
Non-cash investing and financing activities | ||
Payables incurred for capital expenditures | 4,064 | $ 1,652 |
Impairment of right-of-use asset | 12,272 | |
Common stock issued in connection with acquisition | $ 16,608 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Note 1 – Nature of Business and Basis of Presentation Overview Golden Entertainment, Inc. and its wholly-owned subsidiaries (collectively, the “Company”) own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on resort casino operations and distributed gaming (including gaming in the Company’s branded taverns). The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the operation of ten resort casino properties in Nevada and Maryland, comprising: The STRAT Hotel, Casino & SkyPod ("The Strat") Las Vegas, Nevada Arizona Charlie's Decatur Las Vegas, Nevada Arizona Charlie's Boulder Las Vegas, Nevada Aquarius Casino Resort ("Aquarius") Laughlin, Nevada Edgewater Hotel & Casino Resort ("Edgewater") Laughlin, Nevada Colorado Belle Hotel & Casino Resort ("Colorado Belle") Laughlin, Nevada Pahrump Nugget Hotel Casino ("Pahrump Nugget") Pahrump, Nevada Gold Town Casino Pahrump, Nevada Lakeside Casino & RV Park Pahrump, Nevada Rocky Gap Casino Resort ("Rocky Gap") Flintstone, Maryland The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, and the operation of branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. On January 14, 2019, the Company completed the acquisition of Edgewater Gaming, LLC and Colorado Belle Gaming, LLC, which own the Edgewater and Colorado Belle in Laughlin, Nevada, as further described in Note 2, Acquisitions On March 12, 2019, the Company’s Board of Directors authorized the repurchase of up to $25.0 million additional shares of common stock, which replaced the prior share repurchase program authorized in November 2018. Share repurchases may be made from time to time in open market transactions, block trades or in private transactions in accordance with applicable securities laws and regulations and other legal requirements, including compliance with the Company’s finance agreements. There is no minimum number of shares that the Company is required to repurchase and the repurchase program may be suspended or discontinued at any time without prior notice. Basis of Presentation The unaudited consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Accordingly, certain information normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) has been condensed and/or omitted. For further information, please refer to the audited consolidated financial statements of the Company for the year ended December 31, 2018 and the notes thereto included in the Company’s Annual Report on Form 10-K previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s results for the periods presented. Results for interim periods should not be considered indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements for the previous year period have been reclassified to be consistent with current year presentation. These reclassifications had no effect on previously reported net income. Lessee Arrangements The Company is the lessee under non-cancelable real estate and, equipment leases and space lease agreements. Beginning on January 1, 2019 (the date of the Company's adoption of Topic 842, as defined and discussed further in " Accounting Standards Issued and Adopted operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. The Company’s lease terms may include options to extend or terminate the lease. The Company assesses these options using a threshold of reasonably certain. For leases where the Company is reasonably certain to renew, those option periods are included within the lease term and, therefore, the measurement of the right-of-use asset and lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The Company’s lease agreements for land, buildings and taverns with lease and non-lease components are accounted for separately. The lease and non-lease components of certain vehicle and equipment leases are accounted for as a single lease component. Additionally, for certain vehicle and equipment leases, a portfolio approach is utilized to effectively account for the operating lease ROU assets and liabilities. As most The Company does not record an asset or liability for operating leases with a term of less than one year. Prior to the adoption of Topic 842 on January 1, 2019, the Company did not record an asset or liability for any of its operating leases Lessor Arrangements The Company is the lessor under non-cancelable operating leases for retail and food and beverage outlet space within its resort casino properties. The lease arrangements generally include minimum base rent and/or contingent rental clauses based on a percentage of net sales exceeding minimum base rent. Generally, the terms of the leases range between five and 10 years, with options to extend the leases. The Company records revenue on a straight-line basis over the term of the lease, and recognizes revenue for contingent rentals when the contingency has been resolved. The Company has elected to combine lease and non-lease components for the purpose of measuring lease revenue. Revenue is recorded in other operating revenue on the consolidated statements of operations. Net Income Per Share For all periods, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Due to the net loss for the quarter ended March 31, 2019, the effect of all potential common share equivalents was anti-dilutive, and therefore all such shares were excluded from the computation of diluted weighted average shares outstanding for this period. The amount of potential common share equivalents were 1,047,804 for quarter ended March 31, 2019. Accounting Standards Issued and Adopted The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows the carry forward of the Company’s Leases – Topic 840 The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The effect of adopting Topic 842 on the January 1, 2019 consolidated balance sheet is as follows: (In thousands) Prior to Adoption Effect of Adoption (1) Post Adoption Prepaid expenses $ 17,722 $ (194 ) $ 17,528 Property and equipment, net 894,953 2,503 897,456 Operating lease right-of-use assets, net - 140,715 140,715 Intangible assets, net 141,128 (2,503 ) 138,625 Operating lease liability - 155,878 155,878 Other long-term obligations 4,801 (3,085 ) 1,716 Accumulated deficit (120,361 ) (12,272 ) (132,633 ) (1) Prepaid expenses, favorable lease intangible and deferred lease expense included in other long-term obligations were reclassed to the related right-of-use asset upon adoption of Topic 842. In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-07, Compensation – Stock Compensation Accounting Standards Issued but Not Yet Adopted See Note 2, Summary of Significant Accounting Policies |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Laughlin Acquisition Overview On January 14, 2019, the Company completed the acquisition of Edgewater Gaming, LLC and Colorado Belle Gaming, LLC (the “Acquired Entities”) from Marnell Gaming, LLC (“Marnell”) for $156.2 million in cash (after giving effect to the post-closing adjustment provisions in the purchase agreement) and the issuance of 911,002 shares of the Company’s common stock to certain assignees of Marnell (the “Acquisition”). The results of operations of the Acquired Entities are included in the Company’s results subsequent to the acquisition date. In connection with the Acquisition, the Company borrowed $145.0 million under its revolving credit facility. Purchase Price The Acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations The following is a summary of the components of the purchase price paid by the Company to Marnell in the Acquisition (after taking into account the adjustment to the cash portion of the purchase price pursuant to the post-closing adjustment provisions of the purchase agreement, as described above): (In thousands) Amount Cash $ 156,152 Fair value of common stock issued (911,002 shares) 16,608 Total purchase price $ 172,760 Purchase Price Allocation Under ASC 805, the purchase price of the acquisition is allocated to the identified tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date which are determined in accordance with the applicable accounting guidance for business combinations and with the services of third-party valuation consultants. The excess of the purchase price over the fair values is recorded as goodwill which is expected to be deductible for tax purposes. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Balances subject to adjustment primarily include current assets, property and equipment, intangible assets, liabilities, as well as tax-related matters, including tax basis of acquired assets and liabilities. The following table summarizes the preliminary allocation of the purchase price: (In thousands) Current assets $ 12,615 Property and equipment 126,198 Right-of-use assets 2,620 Intangible assets 19,234 Goodwill 24,736 Liabilities (10,023 ) Lease liabilities (2,620 ) Total assets acquired, net of liabilities assumed $ 172,760 The following table summarizes the preliminary amounts assigned to property and equipment and estimated useful life by category: (In thousands) Useful Land Not applicable $ 4,160 Building and site improvements 10-30 102,450 Furniture and equipment 2-13 18,185 Construction in process Not applicable 1,403 Total property and equipment $ 126,198 The following table summarizes the preliminary values assigned to acquired intangible assets and estimated useful lives by category: (In thousands) Useful Life (Years) Non-compete agreements 5 $ 3,630 Trade names Indefinite 6,980 Player loyalty program 2 8,600 Other 4 24 Total intangible assets $ 19,234 Pro Forma Combined Financial Information The following unaudited pro forma combined financial information has been prepared by management for illustrative purposes only and does not purport to represent what the results of operations, financial condition or other financial information of the Company would have been if the Acquisition had occurred on January 1, 2018, or what such results or financial condition will be for any future periods. The unaudited pro forma combined financial information is based on preliminary estimates and assumptions and on the information available at the time of the preparation thereof. These preliminary estimates and assumptions may change, be revised or prove to be materially different, and the estimates and assumptions may not be representative of facts existing at the time of the Acquisition. The unaudited pro forma combined financial information does not reflect non-recurring charges that will be incurred in connection with the Acquisition, nor any cost savings and synergies expected to result from the Acquisition (and associated costs to achieve such savings or synergies), nor any costs associated with severance, restructuring or integration activities resulting from the Acquisition. The following table summarizes certain unaudited pro forma combined financial information derived from a combination of the historical consolidated financial statements of the Company and of the Acquired Entities for the three months ended March 31, 2018, adjusted to give effect to the Acquisition, related transactions, and the adoption of ASC 606 for the Acquired Entities. Three Months Ended (In thousands, except per share data) March 31, 2018 Pro forma combined revenues $ 238,232 Pro forma combined net income 5,155 Weighted-average common shares outstanding: Basic 28,060 Diluted 2,379 Pro forma combined net income per share: Basic $ 0.18 Diluted 0.17 In connection with the Acquisition, the Company incurred approximately $0.4 million of acquisition costs during the three month ended March 31, 2019. For the three months ended March 31, 2019, the Acquired Entities contributed revenue of approximately $21.5 million. For the three months ended March 31, 2019, operating expenses related to the Acquired Entities were approximately $11.9 million. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Note 3 – Property and Equipment, Net Property and equipment, net, consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Land $ 125,240 $ 121,081 Building and site improvements 846,116 723,354 Furniture and equipment 183,150 154,663 Construction in process 29,369 35,151 Property and equipment 1,183,875 1,034,249 Less: Accumulated depreciation (160,693 ) (139,296 ) Property and equipment, net $ 1,023,182 $ 894,953 Depreciation expense for property and equipment, including finance leases, was $21.5 million and $20.8 million for the three months ended March 31, 2019 and 2018, respectively. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Note 4 – Accrued Liabilities Accrued liabilities consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Gaming liabilities $ 13,843 $ 12,473 Deposits 3,981 2,652 Other accrued liabilities 4,638 3,723 Total accrued and other current liabilities $ 22,462 $ 18,848 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 – Long-Term Debt Long-term debt, net, consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Term loans $ 990,000 $ 992,000 Revolving credit facility 145,000 — Finance lease liabilities 7,548 7,127 Notes payable 257 1,111 Total long-term debt 1,142,805 1,000,238 Less unamortized discount (24,547 ) (25,658 ) Less unamortized debt issuance costs (3,390 ) (3,537 ) 1,114,868 971,043 Less current maturities (9,907 ) (10,480 ) Long-term debt, net $ 1,104,961 $ 960,563 Senior Secured Credit Facilities As of March 31, 2019, the Company’s senior secured credit facilities consisted of a $1 billion senior secured first lien credit facility (consisting of $800 million in term loans and a $200 million revolving credit facility) with JPMorgan Chase Bank, N.A. (as administrative agent and collateral agent), the lenders party thereto and the other entities party thereto (the “First Lien Facility”), and a $200 million senior secured second lien term loan facility with Credit Suisse AG, Cayman Islands Branch (as administrative agent and collateral agent), the lenders party thereto and the other entities party thereto (the “Second Lien Term Loan” and, together with the First Lien Facility, the “Credit Facilities”). As of March 31, 2019, the Company had $790 million and $200 million in principal amount of outstanding term loan borrowings under its First Lien Facility and Second Lien Term Loan, respectively, no letters of credit outstanding under the First Lien Facility, and $145 million in principal amount of borrowings outstanding under its revolving credit facility. As of March 31, 2019, the weighted-average effective interest rate on the Company’s outstanding borrowings under the Credit Facilities was approximately 6.1%. The revolving credit facility under the First Lien Facility matures on October 20, 2022, and the term loans under the First Lien Facility mature on October 20, 2024. The term loans under the First Lien Facility are repayable in 27 quarterly installments of $2 million each, which commenced in March 2018, followed by a final installment of $746 million at maturity. The term loans under the Second Lien Term Loan were repayable in full at maturity on October 20, 2025. The Company was in compliance with its financial covenants under the Credit Facilities as of March 31, 2019. Senior Notes due 2026 On April 15, 2019, the Company issued $375 million in principal amount of 7.625% Senior Notes due 2026 (“2026 Notes”) in a private placement to institutional buyers. The 2026 Notes were issued at face value and will be recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements. The 2026 Notes bear interest at the rate of 7.625%, payable semi-annually in cash in arrears, which interest payments will commence in October 2019. Debt issuance costs associated with the issuance of the 2026 Notes will be amortized to interest expense on a straight-line basis over the term of the 2026 Notes. The net proceeds of the 2026 Notes were used to (i) repay the Second Lien Term Loan, (ii) repay outstanding borrowings under the revolving credit facility under the First Lien Facility, (iii) repay $18 million of the outstanding term loan indebtedness under the First Lien Facility, and (iv) pay accrued interest, fees and expenses related to each of the foregoing. Prior to April 15, 2022, the Company may redeem up to 40% of the 2026 Notes at a redemption price of 107.625% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. The Company may also redeem the 2026 Notes prior to April 15, 2022, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the applicable premium and any accrued and unpaid interest, if any, thereon to the redemption date. The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2026 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2026 Notes on April 15, 2022 plus (2) all required interest payments due on such 2026 Notes through April 15, 2022 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture governing the 2026 Notes) plus 50 basis points, over (b) the then-outstanding principal amount of such 2026 Notes. The 2026 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on April 15, 2022 at a redemption price of 103.813%, during the 12 months beginning on April 15, 2023 at a redemption price of 101.906%, and at any time on or after April 15, 2024 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. |
Stock Incentive Plans and Share
Stock Incentive Plans and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plans and Share-Based Compensation | Note 6 – Stock Incentive Plans and Share-Based Compensation As of March 31, 2019, a total of 1,399,820 shares of the Company’s common stock remained available for grants of awards under the Golden Entertainment, Inc. 2015 Incentive Award Plan (the “2015 Plan”), which includes the annual increase in the number of shares available for grant on January 1, 2019 of 1,119,924 shares. Stock Options The following table summarizes the Company’s stock option activity: Stock Options Weighted- Average Shares Exercise Price Outstanding at January 1, 2019 3,424,755 $ 11.49 Granted — $ — Exercised (2,500 ) $ 7.34 Cancelled (21,875 ) $ 11.41 Outstanding at March 31, 2019 3,400,380 $ 11.50 Exercisable at March 31, 2019 2,533,382 $ 11.32 Share-based compensation expense related to stock options was $2.5 million and $1.5 million for the three months ended March 31, 2019 and 2018, respectively. The Company’s unrecognized share-based compensation expense related to stock options was approximately $4.5 million as of March 31, 2019, which is expected to be recognized over a weighted-average period of 1.6 years. Restricted Stock Units On March 14, 2018, the Compensation Committee of the Board of Directors of the Company approved a new long-term incentive structure for equity awards to be granted to the executive officers of the Company under the 2015 Plan. Under this new structure, commencing in the first quarter of 2018, the executive officers of the Company receive long-term equity awards in a combination of time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). The number of PSUs that will be eligible to vest will be determined based on the Company’s attainment of performance goals set by the Compensation Committee. Following the two-year performance period, the number of “vesting eligible” PSUs will then be subject to one additional year of time-based vesting. Share-based compensation costs related to RSU and PSU awards are calculated based on the market price on the date of the grant. The Company periodically reviews the estimates of performance against the defined criteria to assess the expected payout of each outstanding PSU grant and adjusts the stock compensation expense accordingly. The following table summarizes the Company’s RSU and PSU activity: RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2019 232,299 $ 29.10 171,748 $ 28.41 Granted 414,951 $ 14.13 204,580 $ 14.13 Vested (68,874 ) $ 28.72 — $ — Cancelled (6,863 ) $ 28.56 — $ — Outstanding at March 31, 2019 571,513 $ 18.28 376,328 $ 20.65 __________________ (1) The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2019 represents the actual number of PSUs granted to each recipient eligible to vest if the Company meets its performance goals for the applicable period. The number of shares for the remainder of the PSUs listed as outstanding at January 1, 2019 and for all of the PSUs granted in 2019 represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest for those PSUs will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs, with 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. Share-based compensation expense related to RSUs was $1.1 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively. Share-based compensation expense related to PSUs was $0.4 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $8.0 million and $5.4 million of unamortized share-based compensation expense related to RSUs and PSUs, respectively, which is expected to be recognized over a weighted-average period of 2.7 years for both RSUs and PSUs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes The Company’s effective tax rate was 7.9% and 23.7% for the three months ended March 31, 2019 and 2018, respectively. Income tax benefit of $0.7 million for the three months ended March 31, 2019 was primarily due to the change in valuation allowance against the Company’s deferred tax assets during the first quarter of 2019. Income tax expense of $1.2 million for the three months ended March 31, 2018 was primarily due to expenses that are not deductible for tax purposes Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. The Company continues to evaluate its deferred tax asset valuation allowance on a quarterly basis. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 8 – Financial Instruments and Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Thus, assets and liabilities categorized as Level 3 may be measured at fair value using inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short duration of these financial instruments. The following table summarizes the fair value measurement information about the Company’s long-term debt: March 31, 2019 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loans $ 990,000 $ 981,600 Level 2 Revolving credit facility 145,000 143,900 Level 2 Finance lease liabilities 7,548 7,548 Level 3 Notes payable 257 257 Level 3 Total debt $ 1,142,805 $ 1,133,305 December 31, 2018 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loans $ 992,000 $ 952,300 Level 2 Finance lease liabilities 7,127 7,127 Level 3 Notes payable 1,111 1,111 Level 3 Total debt $ 1,000,238 $ 960,538 The estimated fair value of the Company’s term loan debt is based on a relative value analysis performed as of March 31, 2019 and December 31, 2018. The finance lease liabilities and note payable debt are fixed-rate debt, are not traded and do not have observable market inputs, therefore, the fair value is estimated to be equal to the carrying value. As of March 31, 2019, the Company had an interest rate cap agreement that was outstanding with a notional amount of $650 million, which expires on December 31, 2020. Using Level 2 inputs, the Company adjusts the carrying value of the interest rate cap agreement to estimated fair value quarterly based upon observable market-based inputs that reflect the present values of the difference between estimated future fixed rate payments and future variable receipts. The fair value of the Company’s interest rate cap agreement was $2.4 million and $5.0 million as of March 31, 2019 and December 31, 2018, respectively. As the Company elected to not apply hedge accounting, the change in fair value of its interest rate cap agreement was recorded in the consolidated statement of operations. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 9 – Leases Company as Lessee The Company has operating and finance leases for offices, taverns, land, vehicles, slot machines, and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. The Company leases slot machines from gaming equipment manufacturers under short-term agreements. Most of the slot machine leases have variable rent structures, with amounts determined based on the performance of those machines. Certain others are short-term in nature, with fixed payment amounts. The Company has an operating ground lease with the Maryland Department of Natural Resources for approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Company leases approximately 20 acres of land in Laughlin, Nevada for the Laughlin Event Center and four parcels of land in Pahrump, Nevada on which the Gold Town Casino is located. The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of Topic 842, the Company wrote off the associated ROU asset for this land lease of $9 million to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for nine taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these eleven leases of $3 million to its beginning balance of retained earnings as of January 1, 2019. The Company leases one of its tavern locations and its office headquarters building from a related party. See Note 12, Related Party Transactions, The current and long-term obligations under finance leases are included in “current portion of long-term debt, net and finance leases” and “long-term debt, net and finance leases”, respectively. The majority of the finance leases related to vehicles with minimum lease payment terms of four years or less, and external and internal lighting and renovations at The Strat. The components of lease expense are follows: Three Months Ended (In thousands) Classification March 31, 2019 Operating lease cost Operating lease cost Operating and SG&A expenses $ 11,640 Variable lease cost Operating and SG&A expenses 4,186 Short-term lease cost Operating and SG&A expenses 1,049 Total operating lease cost $ 16,875 Finance lease cost Amortization of lease assets Depreciation and amortization $ 494 Interest on lease liabilities Interest expense, net 98 Total finance lease cost $ 592 Supplemental cash flow information related to leases is as follows: Three Months Ended (In thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,471 Operating cash flows from finance leases 98 Financing cash flows from finance leases 367 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 31,685 Finance leases 849 Supplemental balance sheet information related to leases is as follows: (In thousands, except lease term and discount rate) March 31, 2019 Operating leases Operating lease right-of-use assets, gross $ 172,394 Accumulated amortization (9,350 ) Operating lease right-of-use assets, net $ 163,044 Current portion of operating leases $ 36,050 Noncurrent operating leases 142,444 Total operating lease liabilities $ 178,494 Finance leases Property and equipment, gross $ 7,966 Accumulated depreciation (2,117 ) Property and equipment, net $ 5,849 Current portion of finance leases, net $ 1,798 Noncurrent finance leases, net 5,750 Total finance lease liabilities $ 7,548 Weighted Average Remaining Lease Term Operating leases 10.0 years Finance leases 19.9 years Weighted Average Discount Rate Operating leases 6.3 % Finance leases 6.1 % Maturity of Lease Liabilities Operating Finance (In thousands) Leases Leases Total Remaining 2019 $ 34,456 $ 1,721 $ 36,177 2020 30,099 1,791 31,890 2021 28,779 1,203 29,982 2022 22,304 581 22,885 2023 16,924 491 17,415 Thereafter 114,285 7,248 121,533 Total lease payments 246,847 13,035 259,882 Less: interest (68,353 ) (5,487 ) (73,840 ) Present value of lease liabilities $ 178,494 $ 7,548 $ 186,042 As of March 31, 2019, the Company does not have any leases that have not yet commenced but that create significant rights and obligations. Company as Lessor Minimum and contingent operating lease income is as follows: Three Months Ended (In thousands) March 31, 2019 Minimum rental income $ 1,825 Contingent rental income 201 Total rental income $ 2,026 Future minimum rental payments to be received under operating leases: (In thousands) Operating Leases Remaining 2019 $ 3,963 2020 3,995 2021 3,272 2022 2,433 2023 1,763 Thereafter 2,546 Total future minimum rentals $ 17,972 Disclosures related to periods prior to adoption of Topic 842 For the three months ended March 31, 2018, operating lease rental expense, calculated on a straight-line basis, was $9.4 million, $0.4 million and $3.6 million for space lease agreements, related party leases and other operating leases, respectively. The Company recorded rental revenue of $1.7 million for the three months ended March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies Participation and Revenue Share Agreements In addition to the space lease agreements described above in Note 9, Leases Related Party Transactions The Company also enters into amusement device and ATM placement contracts in the form of participation agreements. Under these agreements, the Company pays the business location a percentage of the non-gaming revenue generated from the Company’s amusement devices and ATMs placed at the location. During the three months ended March 31, 2019 and 2018, the total contingent payments recognized by the Company (recorded in other operating expenses) for amusement devices and ATMs under such agreements were both $0.4 million. Legal Matters From time to time, the Company is involved in a variety of lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of business, including proceedings concerning labor and employment matters, personal injury claims, breach of contract claims, commercial disputes, business practices, intellectual property, tax and other matters for which the Company recorded reserves of $1.0 million for claims as of March 31, 2019. Although lawsuits, claims, investigations and other legal proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its currently pending matters should not have a material adverse effect on its business, financial condition, results of operations or liquidity. Regardless of the outcome, legal proceedings can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. In addition, it is possible that an unfavorable resolution of one or more such proceedings could in the future materially and adversely affect the Company’s business, financial condition, results of operations or liquidity in a particular period. In February and April 2017, several former employees filed two separate purported class action lawsuits against the Company in the District Court of Clark County, Nevada, on behalf of similarly situated individuals employed by the Company in the State of Nevada. The lawsuits allege that the Company violated certain Nevada labor laws including payment of an hourly wage below the statutory minimum wage without providing a qualified health insurance plan and an associated failure to pay proper overtime compensation. The complaints seek, on behalf of the plaintiffs and members of the putative class, an unspecified amount of damages (including punitive damages), injunctive and equitable relief, and an award of attorneys’ fees, interest and costs. The Company agreed to settle the first of these cases in the fourth quarter of 2017 and the second of these cases in the third quarter of 2018. In February 2019, the court approved the settlement for the first case for $0.5 million. The remaining case remains subject to final court approval, with the final fairness hearing scheduled for June 2019, and is included in the Company’s recorded reserves of $1.0 million at March 31, 2019. On August 31, 2018, prior guests of The Strat filed a purported class action complaint against the Company in the District Court, Clark County, Nevada, on behalf of similarly situated individuals and entities that paid the Clark County Combined Transient Lodging Tax (“Tax”) on the portion of a resort fee that constitutes charges for Internet access, during the period of February 6, 2014 through the date the alleged conduct ceases. The lawsuit alleged that the Tax was charged in violation of the federal Internet Tax Freedom Act, which imposed a national moratorium on the taxation of Internet access by states and their political subdivisions, and sought, on behalf of the plaintiff and the putative class, damages equal to the amount of the Tax collected on the Internet access component of the resort fee, injunctive relief, disgorgement, interest, fees and costs. All defendants to this matter, including Golden Entertainment, Inc., filed a joint motion to dismiss this matter for lack of merit. The District Court granted this joint motion to dismiss on February 21, 2019. The plaintiffs appealed the District Court decision, on April 10, 2019, to the Supreme Court of Nevada. While legal proceedings are inherently unpredictable and no assurance can be given as to the ultimate outcome of any of the above matters, based on management’s current understanding of the relevant facts and circumstances, the Company believes that these proceedings should not have a material adverse effect on its financial position, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 – Segment Information The Company conducts its business through two reportable operating segments: Casinos and Distributed Gaming. The Company’s Casinos segment involves the ownership and operation of resort casino properties in Nevada and Maryland. The Company’s Distributed Gaming segment involves the installation, maintenance and operation of slots and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana, and the operation of branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable operating segments because these costs are not easily allocable and to do so would not be practical. The Company evaluates each segment’s profitability based upon such segment’s Adjusted EBITDA, which represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening expense, acquisition expenses, share-based compensation expenses, executive severance, rebranding, class action litigation expenses, gain/loss on disposal of property and equipment, gain on change in fair value of derivative and other losses, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA: Three Months Ended March 31, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 70,885 $ 72,907 $ — $ 143,792 Food and beverage 36,442 13,316 — 49,758 Rooms 31,287 — — 31,287 Other 12,760 2,134 161 15,055 Total revenues $ 151,374 $ 88,357 $ 161 $ 239,892 Net income (loss) $ 22,689 $ 7,606 $ (38,313 ) $ (8,018 ) Depreciation and amortization 21,643 5,329 293 27,265 Preopening and related expenses (1) 1,654 566 12 2,232 Acquisition and severance expenses 286 26 1,232 1,544 Asset disposal and other writedowns 256 (9 ) 390 637 Share-based compensation 11 5 4,168 4,184 Other, net 11 — 853 864 Interest expense, net 52 16 18,067 18,135 Change in fair value of derivative — — 2,248 2,248 Income tax benefit — — (651 ) (651 ) Adjusted EBITDA $ 46,602 $ 13,539 $ (11,701 ) $ 48,440 Three Months Ended March 31, 2018 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 64,459 $ 69,404 $ — $ 133,863 Food and beverage 29,996 12,607 — 42,603 Rooms 26,127 — — 26,127 Other 9,905 2,150 141 12,196 Total revenues $ 130,487 $ 84,161 $ 141 $ 214,789 Net income (loss) $ 23,841 $ 7,448 $ (27,359 ) $ 3,930 Depreciation and amortization 19,635 5,148 454 25,237 Preopening expenses (1) — 148 300 448 Acquisition and severance expenses 51 35 1,213 1,299 Asset disposal and other writedowns 62 15 — 77 Share-based compensation — — 1,844 1,844 Other, net 37 167 104 308 Interest expense, net 24 46 14,673 14,743 Change in fair value of derivative — — (3,211 ) (3,211 ) Income tax provision — — 1,219 1,219 Adjusted EBITDA $ 43,650 $ 13,007 $ (10,763 ) $ 45,894 (1) Preopening expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards players club. Total Segment Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2019 $ 1,207,197 $ 437,018 $ 45,968 $ 1,690,183 Balance at December 31, 2018 $ 1,006,292 $ 299,697 $ 60,580 $ 1,366,569 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 – Related Party Transactions As of March 31, 2019, the Company leased its office headquarters building from a company 33% beneficially owned by Blake L. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Stephen A. Arcana. The rent expense for the office headquarters building was $0.3 million for each of the three months ended March 31, 2019 and 2018, respectively. There were no amounts owed by the Company, and no amount was due and payable by the Company, under this lease as of March 31, 2019 and December 31, 2018. Additionally, a portion of the office headquarters building was sublet to a company owned or controlled by Mr. Sartini. There was less than $0.1 million of rental income under such sublease for each of the three months ended March 31, 2019 and 2018. No amount was owed to the Company under such sublease as of March 31, 2019 and December 31, 2018. Mr. Sartini serves as the Chairman of the Board, President and Chief Executive Officer of the Company and is co-trustee of The Blake L. Sartini and Delise F. Sartini Family Trust, which is a significant shareholder of the Company. Mr. Arcana serves as the Executive Vice President and Chief Operating Officer of the Company. As of March 31, 2019, the Company leased one tavern location from a trust controlled by Mr. Sartini through a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee. One tavern location that the Company had previously leased from a related party was sold in 2018 to an unrelated third party. The rent expense for tavern locations leased from related parties (including the sold tavern location for the period in which the lease was with a related party) was $0.1 million for the three months ended March 31, 2019 and 2018, respectively. There were no amounts owed by the Company, and no amount was due and payable by the Company, under such leases as of March 31, 2019 and December 31, 2018. During each of the three months ended March 31, 2019 and 2018, the Company paid $0.2 million under aircraft time-sharing, co-user and cost-sharing agreements between the Company and Sartini Enterprises, Inc. a company controlled by Mr. Sartini. The Company owed less than $0.1 million under the aircraft time-sharing, co-user and cost-sharing agreements as of March 31, 2019 and December 31, 2018 During the three months ended March 31, 2019 and 2018, the Company recorded revenues of $0.2 million and $0.3 million, respectively, and the Company recorded gaming expenses of $0.2 million in each period, related to the use of the Company’s slots at a distributed gaming location owned in part by Sean T. Higgins, who serves as the Company’s Executive Vice President of Compliance and Governmental Affairs and Chief Legal Officer. and December 31, 2018 During the three months ended March 31, 2018, the Company recorded expenses December 31, 2018 . The consulting agreement expired on July 31, 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events The Company’s management evaluates subsequent events through the date of issuance of the consolidated financial statements. Other than the issuance of the 2026 Notes and associated repayments of borrowings under the Credit Facilities (see Note 5, Long-Term Debt |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Accordingly, certain information normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) has been condensed and/or omitted. For further information, please refer to the audited consolidated financial statements of the Company for the year ended December 31, 2018 and the notes thereto included in the Company’s Annual Report on Form 10-K previously filed with the SEC. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s results for the periods presented. Results for interim periods should not be considered indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements for the previous year period have been reclassified to be consistent with current year presentation. These reclassifications had no effect on previously reported net income. |
Lessee Arrangements | Lessee Arrangements The Company is the lessee under non-cancelable real estate and, equipment leases and space lease agreements. Beginning on January 1, 2019 (the date of the Company's adoption of Topic 842, as defined and discussed further in " Accounting Standards Issued and Adopted operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. The Company’s lease terms may include options to extend or terminate the lease. The Company assesses these options using a threshold of reasonably certain. For leases where the Company is reasonably certain to renew, those option periods are included within the lease term and, therefore, the measurement of the right-of-use asset and lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The Company’s lease agreements for land, buildings and taverns with lease and non-lease components are accounted for separately. The lease and non-lease components of certain vehicle and equipment leases are accounted for as a single lease component. Additionally, for certain vehicle and equipment leases, a portfolio approach is utilized to effectively account for the operating lease ROU assets and liabilities. As most The Company does not record an asset or liability for operating leases with a term of less than one year. Prior to the adoption of Topic 842 on January 1, 2019, the Company did not record an asset or liability for any of its operating leases |
Lessor Arrangements | Lessor Arrangements The Company is the lessor under non-cancelable operating leases for retail and food and beverage outlet space within its resort casino properties. The lease arrangements generally include minimum base rent and/or contingent rental clauses based on a percentage of net sales exceeding minimum base rent. Generally, the terms of the leases range between five and 10 years, with options to extend the leases. The Company records revenue on a straight-line basis over the term of the lease, and recognizes revenue for contingent rentals when the contingency has been resolved. The Company has elected to combine lease and non-lease components for the purpose of measuring lease revenue. Revenue is recorded in other operating revenue on the consolidated statements of operations. |
Net Income Per Share | Net Income Per Share For all periods, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Due to the net loss for the quarter ended March 31, 2019, the effect of all potential common share equivalents was anti-dilutive, and therefore all such shares were excluded from the computation of diluted weighted average shares outstanding for this period. The amount of potential common share equivalents were 1,047,804 for quarter ended March 31, 2019. |
New Accounting Pronouncements | Accounting Standards Issued and Adopted The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows the carry forward of the Company’s Leases – Topic 840 The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The effect of adopting Topic 842 on the January 1, 2019 consolidated balance sheet is as follows: (In thousands) Prior to Adoption Effect of Adoption (1) Post Adoption Prepaid expenses $ 17,722 $ (194 ) $ 17,528 Property and equipment, net 894,953 2,503 897,456 Operating lease right-of-use assets, net - 140,715 140,715 Intangible assets, net 141,128 (2,503 ) 138,625 Operating lease liability - 155,878 155,878 Other long-term obligations 4,801 (3,085 ) 1,716 Accumulated deficit (120,361 ) (12,272 ) (132,633 ) (1) Prepaid expenses, favorable lease intangible and deferred lease expense included in other long-term obligations were reclassed to the related right-of-use asset upon adoption of Topic 842. In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-07, Compensation – Stock Compensation Accounting Standards Issued but Not Yet Adopted See Note 2, Summary of Significant Accounting Policies |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Summary of Effect of Adopting Topic 842 on Consolidated Balance Sheet | The standard did not materially impact the Company’s consolidated net earnings and had no impact on cash flows. The effect of adopting Topic 842 on the January 1, 2019 consolidated balance sheet is as follows: (In thousands) Prior to Adoption Effect of Adoption (1) Post Adoption Prepaid expenses $ 17,722 $ (194 ) $ 17,528 Property and equipment, net 894,953 2,503 897,456 Operating lease right-of-use assets, net - 140,715 140,715 Intangible assets, net 141,128 (2,503 ) 138,625 Operating lease liability - 155,878 155,878 Other long-term obligations 4,801 (3,085 ) 1,716 Accumulated deficit (120,361 ) (12,272 ) (132,633 ) (1) Prepaid expenses, favorable lease intangible and deferred lease expense included in other long-term obligations were reclassed to the related right-of-use asset upon adoption of Topic 842. |
Acquisitions (Tables)
Acquisitions (Tables) - Marnell Gaming,LLC [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Components of Purchase Price Paid to Seller in Acquisition | The following is a summary of the components of the purchase price paid by the Company to Marnell in the Acquisition (after taking into account the adjustment to the cash portion of the purchase price pursuant to the post-closing adjustment provisions of the purchase agreement, as described above): (In thousands) Amount Cash $ 156,152 Fair value of common stock issued (911,002 shares) 16,608 Total purchase price $ 172,760 |
Schedule of Acquisition Purchase Price Preliminary Allocation | The following table summarizes the preliminary allocation of the purchase price: (In thousands) Current assets $ 12,615 Property and equipment 126,198 Right-of-use assets 2,620 Intangible assets 19,234 Goodwill 24,736 Liabilities (10,023 ) Lease liabilities (2,620 ) Total assets acquired, net of liabilities assumed $ 172,760 |
Summary of Preliminary Amounts Assigned to Property and Equipment Acquired and Estimated Useful Life by Category | The following table summarizes the preliminary amounts assigned to property and equipment and estimated useful life by category: (In thousands) Useful Land Not applicable $ 4,160 Building and site improvements 10-30 102,450 Furniture and equipment 2-13 18,185 Construction in process Not applicable 1,403 Total property and equipment $ 126,198 |
Summary of Preliminary Values of Intangible Assets Acquired and Estimated Useful Lives by Category | The following table summarizes the preliminary values assigned to acquired intangible assets and estimated useful lives by category: (In thousands) Useful Life (Years) Non-compete agreements 5 $ 3,630 Trade names Indefinite 6,980 Player loyalty program 2 8,600 Other 4 24 Total intangible assets $ 19,234 |
Summary of Unaudited Pro Forma Combined Financial Information | The following table summarizes certain unaudited pro forma combined financial information derived from a combination of the historical consolidated financial statements of the Company and of the Acquired Entities for the three months ended March 31, 2018, adjusted to give effect to the Acquisition, related transactions, and the adoption of ASC 606 for the Acquired Entities. Three Months Ended (In thousands, except per share data) March 31, 2018 Pro forma combined revenues $ 238,232 Pro forma combined net income 5,155 Weighted-average common shares outstanding: Basic 28,060 Diluted 2,379 Pro forma combined net income per share: Basic $ 0.18 Diluted 0.17 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net, consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Land $ 125,240 $ 121,081 Building and site improvements 846,116 723,354 Furniture and equipment 183,150 154,663 Construction in process 29,369 35,151 Property and equipment 1,183,875 1,034,249 Less: Accumulated depreciation (160,693 ) (139,296 ) Property and equipment, net $ 1,023,182 $ 894,953 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Gaming liabilities $ 13,843 $ 12,473 Deposits 3,981 2,652 Other accrued liabilities 4,638 3,723 Total accrued and other current liabilities $ 22,462 $ 18,848 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net, consisted of the following: (In thousands) March 31, 2019 December 31, 2018 Term loans $ 990,000 $ 992,000 Revolving credit facility 145,000 — Finance lease liabilities 7,548 7,127 Notes payable 257 1,111 Total long-term debt 1,142,805 1,000,238 Less unamortized discount (24,547 ) (25,658 ) Less unamortized debt issuance costs (3,390 ) (3,537 ) 1,114,868 971,043 Less current maturities (9,907 ) (10,480 ) Long-term debt, net $ 1,104,961 $ 960,563 |
Stock Incentive Plans and Sha_2
Stock Incentive Plans and Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity: Stock Options Weighted- Average Shares Exercise Price Outstanding at January 1, 2019 3,424,755 $ 11.49 Granted — $ — Exercised (2,500 ) $ 7.34 Cancelled (21,875 ) $ 11.41 Outstanding at March 31, 2019 3,400,380 $ 11.50 Exercisable at March 31, 2019 2,533,382 $ 11.32 |
Summary of RSU and PSU Activity | The following table summarizes the Company’s RSU and PSU activity: RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2019 232,299 $ 29.10 171,748 $ 28.41 Granted 414,951 $ 14.13 204,580 $ 14.13 Vested (68,874 ) $ 28.72 — $ — Cancelled (6,863 ) $ 28.56 — $ — Outstanding at March 31, 2019 571,513 $ 18.28 376,328 $ 20.65 __________________ (1) The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2019 represents the actual number of PSUs granted to each recipient eligible to vest if the Company meets its performance goals for the applicable period. The number of shares for the remainder of the PSUs listed as outstanding at January 1, 2019 and for all of the PSUs granted in 2019 represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest for those PSUs will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs, with 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information about Long-term Debt | The following table summarizes the fair value measurement information about the Company’s long-term debt: March 31, 2019 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loans $ 990,000 $ 981,600 Level 2 Revolving credit facility 145,000 143,900 Level 2 Finance lease liabilities 7,548 7,548 Level 3 Notes payable 257 257 Level 3 Total debt $ 1,142,805 $ 1,133,305 December 31, 2018 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loans $ 992,000 $ 952,300 Level 2 Finance lease liabilities 7,127 7,127 Level 3 Notes payable 1,111 1,111 Level 3 Total debt $ 1,000,238 $ 960,538 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are follows: Three Months Ended (In thousands) Classification March 31, 2019 Operating lease cost Operating lease cost Operating and SG&A expenses $ 11,640 Variable lease cost Operating and SG&A expenses 4,186 Short-term lease cost Operating and SG&A expenses 1,049 Total operating lease cost $ 16,875 Finance lease cost Amortization of lease assets Depreciation and amortization $ 494 Interest on lease liabilities Interest expense, net 98 Total finance lease cost $ 592 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Three Months Ended (In thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,471 Operating cash flows from finance leases 98 Financing cash flows from finance leases 367 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 31,685 Finance leases 849 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: (In thousands, except lease term and discount rate) March 31, 2019 Operating leases Operating lease right-of-use assets, gross $ 172,394 Accumulated amortization (9,350 ) Operating lease right-of-use assets, net $ 163,044 Current portion of operating leases $ 36,050 Noncurrent operating leases 142,444 Total operating lease liabilities $ 178,494 Finance leases Property and equipment, gross $ 7,966 Accumulated depreciation (2,117 ) Property and equipment, net $ 5,849 Current portion of finance leases, net $ 1,798 Noncurrent finance leases, net 5,750 Total finance lease liabilities $ 7,548 |
Summary of Weighted Average Remaining Lease Term and Discount Rate | Weighted Average Remaining Lease Term Operating leases 10.0 years Finance leases 19.9 years Weighted Average Discount Rate Operating leases 6.3 % Finance leases 6.1 % |
Summary of Maturity of Lease Liabilities | Maturity of Lease Liabilities Operating Finance (In thousands) Leases Leases Total Remaining 2019 $ 34,456 $ 1,721 $ 36,177 2020 30,099 1,791 31,890 2021 28,779 1,203 29,982 2022 22,304 581 22,885 2023 16,924 491 17,415 Thereafter 114,285 7,248 121,533 Total lease payments 246,847 13,035 259,882 Less: interest (68,353 ) (5,487 ) (73,840 ) Present value of lease liabilities $ 178,494 $ 7,548 $ 186,042 |
Summary of Minimum and Contingent Operating Lease Income | Minimum and contingent operating lease income is as follows: Three Months Ended (In thousands) March 31, 2019 Minimum rental income $ 1,825 Contingent rental income 201 Total rental income $ 2,026 |
Summary of Future Minimum Rental Payments to be Received Under Operating Leases | Future minimum rental payments to be received under operating leases: (In thousands) Operating Leases Remaining 2019 $ 3,963 2020 3,995 2021 3,272 2022 2,433 2023 1,763 Thereafter 2,546 Total future minimum rentals $ 17,972 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA: Three Months Ended March 31, 2019 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 70,885 $ 72,907 $ — $ 143,792 Food and beverage 36,442 13,316 — 49,758 Rooms 31,287 — — 31,287 Other 12,760 2,134 161 15,055 Total revenues $ 151,374 $ 88,357 $ 161 $ 239,892 Net income (loss) $ 22,689 $ 7,606 $ (38,313 ) $ (8,018 ) Depreciation and amortization 21,643 5,329 293 27,265 Preopening and related expenses (1) 1,654 566 12 2,232 Acquisition and severance expenses 286 26 1,232 1,544 Asset disposal and other writedowns 256 (9 ) 390 637 Share-based compensation 11 5 4,168 4,184 Other, net 11 — 853 864 Interest expense, net 52 16 18,067 18,135 Change in fair value of derivative — — 2,248 2,248 Income tax benefit — — (651 ) (651 ) Adjusted EBITDA $ 46,602 $ 13,539 $ (11,701 ) $ 48,440 Three Months Ended March 31, 2018 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 64,459 $ 69,404 $ — $ 133,863 Food and beverage 29,996 12,607 — 42,603 Rooms 26,127 — — 26,127 Other 9,905 2,150 141 12,196 Total revenues $ 130,487 $ 84,161 $ 141 $ 214,789 Net income (loss) $ 23,841 $ 7,448 $ (27,359 ) $ 3,930 Depreciation and amortization 19,635 5,148 454 25,237 Preopening expenses (1) — 148 300 448 Acquisition and severance expenses 51 35 1,213 1,299 Asset disposal and other writedowns 62 15 — 77 Share-based compensation — — 1,844 1,844 Other, net 37 167 104 308 Interest expense, net 24 46 14,673 14,743 Change in fair value of derivative — — (3,211 ) (3,211 ) Income tax provision — — 1,219 1,219 Adjusted EBITDA $ 43,650 $ 13,007 $ (10,763 ) $ 45,894 (1) Preopening expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards players club. Total Segment Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2019 $ 1,207,197 $ 437,018 $ 45,968 $ 1,690,183 Balance at December 31, 2018 $ 1,006,292 $ 299,697 $ 60,580 $ 1,366,569 |
Nature of Business and Basis _4
Nature of Business and Basis of Presentation (Details Textual) | 3 Months Ended | ||
Mar. 31, 2019USD ($)SegmentPropertyshares | Mar. 12, 2019USD ($) | Jan. 01, 2019USD ($) | |
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of reportable operating segments | Segment | 2 | ||
Operating lease ROU assets | $ 163,044,000 | ||
Operating lease liability | $ 178,494,000 | ||
Anti-dilutive potential common share equivalents | shares | 1,047,804 | ||
ASU 842 [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Operating lease ROU assets | $ 0 | $ 140,715,000 | |
Operating lease liability | $ 0 | $ 155,878,000 | |
Maximum [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Common stock repurchase, authorized | $ 25,000,000 | ||
Non-cancelable operating leases term | 10 years | ||
Maximum [Member] | ASU 842 [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Operating leases term | 1 year | ||
Minimum [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Non-cancelable operating leases term | 5 years | ||
Nevada and Maryland [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of resort casino properties | Property | 10 |
Nature of Business and Basis _5
Nature of Business and Basis of Presentation - Summary of Effect of Adopting Topic 842 on Consolidated Balance Sheet (Details) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Prepaid expenses | $ 21,358,000 | $ 17,722,000 | ||
Property and equipment, net | 1,023,182,000 | 894,953,000 | ||
Operating lease right-of-use assets, net | 163,044,000 | |||
Intangible assets, net | 151,998,000 | 141,128,000 | ||
Operating lease liability | 178,494,000 | |||
Other long-term obligations | 1,482,000 | 4,801,000 | ||
Accumulated deficit | (140,651,000) | $ (120,361,000) | ||
Prior to Adoption [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Prepaid expenses | $ 17,722,000 | |||
Property and equipment, net | 894,953,000 | |||
Intangible assets, net | 141,128,000 | |||
Other long-term obligations | 4,801,000 | |||
Accumulated deficit | (120,361,000) | |||
ASU 842 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Prepaid expenses | 17,528,000 | |||
Property and equipment, net | 897,456,000 | |||
Operating lease right-of-use assets, net | 0 | 140,715,000 | ||
Intangible assets, net | 138,625,000 | |||
Operating lease liability | $ 0 | 155,878,000 | ||
Other long-term obligations | 1,716,000 | |||
Accumulated deficit | (132,633,000) | |||
ASU 842 [Member] | Effect of Adoption [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Prepaid expenses | [1] | (194,000) | ||
Property and equipment, net | [1] | 2,503,000 | ||
Operating lease right-of-use assets, net | [1] | 140,715,000 | ||
Intangible assets, net | [1] | (2,503,000) | ||
Operating lease liability | [1] | 155,878,000 | ||
Other long-term obligations | [1] | (3,085,000) | ||
Accumulated deficit | [1] | $ (12,272,000) | ||
[1] | Prepaid expenses, favorable lease intangible and deferred lease expense included in other long-term obligations were reclassed to the related right-of-use asset upon adoption of Topic 842. |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jan. 14, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||
Amount drew from revolving credit facility | $ 145,000 | |
Marnell Gaming,LLC [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition, date of acquisition | Jan. 14, 2019 | |
Consideration paid, cash | $ 156,152 | |
Consideration paid, shares issued | 911,002 | |
Common stock price per share | $ 18.23 | |
Acquisition Costs | 400 | |
Business acquisition, revenue contributed from acquired entity | 21,500 | |
Operating expenses | $ 11,900 | |
Marnell Gaming,LLC [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition measurement period | 1 year | |
Marnell Gaming,LLC [Member] | Revolving Credit Facility [Member] | ||
Business Acquisition [Line Items] | ||
Amount drew from revolving credit facility | $ 145,000 |
Summary of Components of Purcha
Summary of Components of Purchase Price Paid to Seller in Acquisition (Details) - Marnell Gaming,LLC [Member] $ in Thousands | Jan. 14, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 156,152 |
Fair value of common stock issued (911,002 shares) | 16,608 |
Total purchase price | $ 172,760 |
Summary of Components of Purc_2
Summary of Components of Purchase Price Paid to Seller in Acquisition (Parenthetical) (Details) | Jan. 14, 2019shares |
Marnell Gaming,LLC [Member] | |
Business Acquisition [Line Items] | |
Fair value of common stock issued to assignees of seller, shares | 911,002 |
Schedule of Acquisition Purchas
Schedule of Acquisition Purchase Price Preliminary Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 14, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Operating lease right-of-use assets, net | $ 163,044 | ||
Goodwill | 182,870 | $ 158,134 | |
Lease liabilities | $ (178,494) | ||
Marnell Gaming,LLC [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 12,615 | ||
Property and equipment | 126,198 | ||
Operating lease right-of-use assets, net | 2,620 | ||
Intangible assets | 19,234 | ||
Goodwill | 24,736 | ||
Liabilities | (10,023) | ||
Lease liabilities | (2,620) | ||
Total assets acquired, net of liabilities assumed | $ 172,760 |
Summary of Preliminary Amounts
Summary of Preliminary Amounts Assigned to Property and Equipment Acquired and Estimated Useful Life by Category (Details) - Marnell Gaming,LLC [Member] $ in Thousands | Jan. 14, 2019USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property and Equipment | $ 126,198 |
Land [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property and Equipment | 4,160 |
Building and Site Improvements [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property and Equipment | $ 102,450 |
Building and Site Improvements [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Acquired property, plant, and equipment, useful life | 10 years |
Building and Site Improvements [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Acquired property, plant, and equipment, useful life | 30 years |
Furniture and Equipment [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property and Equipment | $ 18,185 |
Furniture and Equipment [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Acquired property, plant, and equipment, useful life | 2 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Acquired property, plant, and equipment, useful life | 13 years |
Construction in process [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property and Equipment | $ 1,403 |
Summary of Preliminary Values o
Summary of Preliminary Values of Intangible Assets Acquired and Estimated Useful Lives by Category (Details) - Marnell Gaming,LLC [Member] $ in Thousands | Jan. 14, 2019USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 19,234 |
Noncompete Agreements [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Assets, Useful Life (Years) | 5 years |
Intangible assets | $ 3,630 |
Player Loyalty Program [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Assets, Useful Life (Years) | 2 years |
Intangible assets | $ 8,600 |
Trade Names [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 6,980 |
Other [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Assets, Useful Life (Years) | 4 years |
Intangible assets | $ 24 |
Summary of Unaudited Pro Forma
Summary of Unaudited Pro Forma Combined Financial Information (Details) - American Acquisition [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Pro forma combined revenues | $ | $ 238,232 |
Pro forma combined net income | $ | $ 5,155 |
Weighted-average common shares outstanding: | |
Basic | shares | 28,060 |
Diluted | shares | 2,379 |
Pro forma combined net income per share: | |
Basic | $ / shares | $ 0.18 |
Diluted | $ / shares | $ 0.17 |
Components of Property and Equi
Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 125,240 | $ 121,081 |
Building and site improvements | 846,116 | 723,354 |
Furniture and equipment | 183,150 | 154,663 |
Construction in process | 29,369 | 35,151 |
Property and equipment | 1,183,875 | 1,034,249 |
Less: Accumulated depreciation | (160,693) | (139,296) |
Property and equipment, net | $ 1,023,182 | $ 894,953 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation Expense | $ 21.5 | $ 20.8 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Gaming liabilities | $ 13,843 | $ 12,473 |
Deposits | 3,981 | 2,652 |
Other accrued liabilities | 4,638 | 3,723 |
Total accrued and other current liabilities | $ 22,462 | $ 18,848 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Term loans | $ 990,000 | $ 992,000 |
Revolving credit facility | 145,000 | |
Finance lease liabilities | 7,548 | 7,127 |
Notes payable | 257 | 1,111 |
Total long-term debt | 1,142,805 | 1,000,238 |
Less unamortized discount | (24,547) | (25,658) |
Less unamortized debt issuance costs | (3,390) | (3,537) |
Long-term Debt | 1,114,868 | 971,043 |
Less current maturities | (9,907) | (10,480) |
Long-term debt, net | $ 1,104,961 | $ 960,563 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) | Apr. 14, 2022 | Apr. 15, 2019USD ($) | Mar. 31, 2019USD ($)Installment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Debt Instrument, Outstanding Amount | $ 1,114,868,000 | $ 971,043,000 | |||
Borrowing outstanding, principal amount | 145,000,000 | ||||
Repayment of debt | 2,000,000 | $ 2,000,000 | |||
Senior Secured First Lien Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 1,000,000,000 | ||||
Senior Secured First Lien Credit Facility [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of debt | $ 18,000,000 | ||||
Senior Secured First Lien Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||
Line of Credit Facility, Expiration Date | Oct. 20, 2022 | ||||
Senior Secured First Lien Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Outstanding Amount | $ 0 | ||||
Senior Secured First Lien Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 800,000,000 | ||||
Debt Instrument, Outstanding Amount | $ 790,000,000 | ||||
Debt Instrument, Maturity Date | Oct. 20, 2024 | ||||
Debt Instrument, Number of Quarterly Payments | Installment | 27 | ||||
Debt Instrument, Periodic Payment | $ 2,000,000 | ||||
Debt Instrument, Commencement Date of Quarterly Payments | Mar. 31, 2018 | ||||
Debt Instrument, Final Installment | $ 746,000,000 | ||||
Senior Secured Second Lien Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing outstanding, principal amount | 145,000,000 | ||||
Senior Secured Second Lien Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 200,000,000 | ||||
Debt Instrument, Outstanding Amount | $ 200,000,000 | ||||
Debt Instrument, Maturity Date | Oct. 20, 2025 | ||||
Credit Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 6.10% | ||||
Senior Unsecured Notes Due 2026 [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 375,000,000 | ||||
Debt Instrument, Commencement Date of Quarterly Payments | Oct. 31, 2019 | ||||
Debt instrument interest stated percentage | 7.625% | ||||
Debt instrument frequency of periodic payment | semi-annually | ||||
Senior Notes due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption description | The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2026 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2026 Notes on April 15, 2022 plus (2) all required interest payments due on such 2026 Notes through April 15, 2022 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture governing the 2026 Notes) plus 50 basis points, over (b) the then-outstanding principal amount of such 2026 Notes. The 2026 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on April 15, 2022 at a redemption price of 103.813%, during the 12 months beginning on April 15, 2023 at a redemption price of 101.906%, and at any time on or after April 15, 2024 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date | ||||
Senior Notes due 2026 [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable premium percentage on redemption | 1.00% | ||||
Senior Notes due 2026 [Member] | Debt Instrument, Redemption, Period One | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 107.625% | ||||
Senior Notes due 2026 [Member] | Debt Instrument, Redemption, Period One | 12 Months Beginning on April 15, 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 103.813% | ||||
Debt instrument redemption period start date | Apr. 15, 2022 | ||||
Senior Notes due 2026 [Member] | Debt Instrument, Redemption, Period Two | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 100.00% | ||||
Senior Notes due 2026 [Member] | Debt Instrument, Redemption, Period Two | 12 Months Beginning on April 15, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 101.906% | ||||
Debt instrument redemption period start date | Apr. 15, 2023 | ||||
Senior Notes due 2026 [Member] | Debt Instrument, Redemption, Period Three | On or After April 15, 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 100.00% | ||||
Debt instrument redemption period start date | Apr. 15, 2024 | ||||
Senior Notes due 2026 [Member] | Maximum [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption percentage | 40.00% |
Stock Incentive Plans and Sha_3
Stock Incentive Plans and Share-Based Compensation (Details Textual) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Employee Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 2.5 | $ 1.5 | |
Stock Options, Unrecognized Share-based Compensation Expense | $ 4.5 | ||
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 1 year 7 months 6 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 1.1 | 0.2 | |
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 2 years 8 months 12 days | ||
Unamortized share-based compensation expense | $ 8 | ||
Performance Stock Units (PSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 0.4 | $ 0.2 | |
Share-based Compensation Expense Not yet Recognized, Weighted-average Period for Recognition | 2 years 8 months 12 days | ||
Unamortized share-based compensation expense | $ 5.4 | ||
2015 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common Stock Avialable for Grants of Awards | 1,399,820 | ||
Number of Shares Available for Grant Annual Increase | 1,119,924 | ||
Performance Stock Units Vesting Period | 2 years | ||
2015 Plan [Member] | Time Based Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance Stock Units Vesting Period | 1 year |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Stock Options Outstanding | |
Stock Options Outstanding, Beginning of year | shares | 3,424,755 |
Stock Options Outstanding, Exercised | shares | (2,500) |
Stock Options Outstanding, Cancelled | shares | (21,875) |
Stock Options Outstanding, End of year | shares | 3,400,380 |
Stock Options Outstanding, Exercisable | shares | 2,533,382 |
Weighted-Average Exercise Price | |
Weighted-Average Exercise Price, beginning of year | $ / shares | $ 11.49 |
Weighted Average Exercise Price, Exercised | $ / shares | 7.34 |
Weighted Average Exercise Price, Cancelled | $ / shares | 11.41 |
Weighted-Average Exercise Price, end of year | $ / shares | 11.50 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 11.32 |
Summary of RSU and PSU Activity
Summary of RSU and PSU Activity (Details) - 2015 Plan [Member] | 3 Months Ended | |
Mar. 31, 2019$ / sharesshares | ||
RSUs | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Beginning of year | shares | 232,299 | |
Restricted Stock Units Outstanding, Granted | shares | 414,951 | |
Restricted Stock Units Outstanding, Vested | shares | (68,874) | |
Restricted Stock Units Outstanding, Cancelled | shares | (6,863) | |
Restricted Stock Units Outstanding, End of year | shares | 571,513 | |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Beginning of year | $ / shares | $ 29.10 | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 14.13 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 28.72 | |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 28.56 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 18.28 | |
PSUs | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Beginning of year | shares | 171,748 | [1] |
Restricted Stock Units Outstanding, Granted | shares | 204,580 | [1] |
Restricted Stock Units Outstanding, End of year | shares | 376,328 | [1] |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Beginning of year | $ / shares | $ 28.41 | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 14.13 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 20.65 | |
[1] | The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2019 represents the actual number of PSUs granted to each recipient eligible to vest if the Company meets its performance goals for the applicable period. The number of shares for the remainder of the PSUs listed as outstanding at January 1, 2019 and for all of the PSUs granted in 2019 represents the “target” number of PSUs granted to each recipient eligible to vest if the Company meets its “target” performance goals for the applicable period. The actual number of PSUs eligible to vest for those PSUs will vary depending on whether or not the Company meets or exceeds the applicable threshold, target or maximum performance goals for the PSUs, with 200% of the “target” number of PSUs will be eligible to vest at “maximum” performance levels. |
Summary of RSU and PSU Activi_2
Summary of RSU and PSU Activity (Parenthetical) (Details) - Performance Stock Units (PSUs) [Member] - 2015 Plan [Member] | 3 Months Ended |
Mar. 31, 2019shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Actual number of PSUs granted to each recipient, eligible to vest | 62,791 |
Percentage of target number of PSU's eligible to vest at "maximum" performance level | 200.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Line Items] | ||
Income Tax Expense (Benefit) | $ (651) | $ 1,219 |
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Disclosure [Line Items] | ||
Effective Tax Rate, Percent | 7.90% | 23.70% |
Income Tax Expense (Benefit) | $ 1,200 | |
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Change in Valuation Allowance on Deferred Tax Assets [Member] | ||
Income Tax Disclosure [Line Items] | ||
Income Tax Expense (Benefit) | $ (700) |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Schedule of Fair Value Measurement Information about Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Term loans | $ 990,000 | $ 992,000 |
Revolving credit facility | 145,000 | |
Finance lease liabilities | 7,548 | 7,127 |
Notes payable | 257 | 1,111 |
Long-term Debt | 1,114,868 | 971,043 |
Carrying Amount [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,142,805 | 1,000,238 |
Carrying Amount [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Term loans | 990,000 | 992,000 |
Revolving credit facility | 145,000 | |
Carrying Amount [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 7,548 | 7,127 |
Notes payable | 257 | 1,111 |
Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,133,305 | 960,538 |
Fair Value [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Term loans | 981,600 | 952,300 |
Revolving credit facility | 143,900 | |
Fair Value [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 7,548 | 7,127 |
Notes payable | $ 257 | $ 1,111 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Details Textual) - Interest Rate Swap [Member] - Not Designated as Accounting Hedge [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative instrument, notional amount | $ 650 | |
Derivative instrument, expiration date | Dec. 31, 2020 | |
Fair value liability | $ 2.4 | $ 5 |
Leases (Details Textual)
Leases (Details Textual) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)aParcelLease | Mar. 31, 2018USD ($) | |
Lessor Lease Description [Line Items] | ||
ROU asset write off | $ 9 | |
Number of tavern leases | Lease | 9 | |
Rental revenue | $ 1.7 | |
Space Lease Agreements [Member] | ||
Lessor Lease Description [Line Items] | ||
Operating lease rental expense | 9.4 | |
Related Party Leases [Member] | ||
Lessor Lease Description [Line Items] | ||
Operating lease rental expense | 0.4 | |
Other Operating Leases [Member] | ||
Lessor Lease Description [Line Items] | ||
Operating lease rental expense | $ 3.6 | |
Carson City [Member] | ||
Lessor Lease Description [Line Items] | ||
Acres of undeveloped land | a | 4.5 | |
Gold Town Casino [Member] | Nevada [Member] | ||
Lessor Lease Description [Line Items] | ||
Number of leased parcels of land | Parcel | 4 | |
Tavern Leases [Member] | ||
Lessor Lease Description [Line Items] | ||
ROU asset write off | $ 3 | |
Rocky Gap State Park [Member] | Maryland DNR [Member] | ||
Lessor Lease Description [Line Items] | ||
Area of the Property | a | 270 | |
Laughlin Event Center [Member] | Nevada [Member] | ||
Lessor Lease Description [Line Items] | ||
Area of the Property | a | 20 | |
Minimum [Member] | ||
Lessor Lease Description [Line Items] | ||
Lease remaining term of contract excluding land | 1 year | |
Operating leases renewal term | 5 years | |
Operating leases, termination period | 60 days | |
Maximum [Member] | ||
Lessor Lease Description [Line Items] | ||
Lease remaining term of contract excluding land | 28 years | |
Operating leases renewal term | 15 years | |
Operating leases, termination period | 1 year |
Components of Lease Expense (De
Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 11,640 |
Variable lease cost | 4,186 |
Short-term lease cost | 1,049 |
Total operating lease cost | 16,875 |
Finance lease cost | |
Amortization of lease assets | 494 |
Interest on lease liabilities | 98 |
Total finance lease cost | $ 592 |
Summary of Supplemental Cash Fl
Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 11,471 | |
Operating cash flows from finance leases | 98 | |
Financing cash flows from finance leases | 367 | $ 229 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 31,685 | |
Finance leases | $ 849 |
Summary of Supplemental Balance
Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
Operating lease right-of-use assets, gross | $ 172,394 | |
Accumulated amortization | (9,350) | |
Operating lease right-of-use assets, net | 163,044 | |
Current portion of operating leases | 36,050 | |
Non-current operating leases | 142,444 | |
Total operating lease liabilities | 178,494 | |
Finance leases | ||
Property and equipment, gross | 7,966 | |
Accumulated depreciation | (2,117) | |
Property and equipment, net | 5,849 | |
Current portion of finance leases, net | 1,798 | |
Noncurrent finance leases, net | 5,750 | |
Total finance lease liabilities | $ 7,548 | $ 7,127 |
Summary of Weighted Average Rem
Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Weighted Average Remaining Lease Term | |
Operating leases | 10 years |
Finance leases | 19 years 10 months 24 days |
Weighted Average Discount Rate | |
Operating leases | 6.30% |
Finance leases | 6.10% |
Summary of Maturity of Lease Li
Summary of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating | ||
Remaining 2019 | $ 34,456 | |
2020 | 30,099 | |
2021 | 28,779 | |
2022 | 22,304 | |
2023 | 16,924 | |
Thereafter | 114,285 | |
Total lease payments | 246,847 | |
Less: interest | (68,353) | |
Operating lease liability | 178,494 | |
Finance | ||
Remaining 2019 | 1,721 | |
2020 | 1,791 | |
2021 | 1,203 | |
2022 | 581 | |
2023 | 491 | |
Thereafter | 7,248 | |
Total lease payments | 13,035 | |
Less: interest | (5,487) | |
Finance lease liabilities | 7,548 | $ 7,127 |
Leases Liablities | ||
Remaining 2019 | 36,177 | |
2020 | 31,890 | |
2021 | 29,982 | |
2022 | 22,885 | |
2023 | 17,415 | |
Thereafter | 121,533 | |
Total lease payments | 259,882 | |
Less: interest | (73,840) | |
Present value of lease liabilities | $ 186,042 |
Summary of Minimum and Continge
Summary of Minimum and Contingent Operating Lease Income (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Minimum rental income | $ 1,825 |
Contingent rental income | 201 |
Total rental income | $ 2,026 |
Summary of Future Minimum Renta
Summary of Future Minimum Rental Payments to be Received Under Operating Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
Remaining 2019 | $ 3,963 |
2020 | 3,995 |
2021 | 3,272 |
2022 | 2,433 |
2023 | 1,763 |
Thereafter | 2,546 |
Total future minimum rentals | $ 17,972 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Apr. 14, 2022USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Other Operating Expenses | $ 6,434 | $ 3,996 | ||
Amount recorded for claims | $ 1,000 | $ 1,000 | ||
Class action lawsuits filed by former employees | February and April 2017 | |||
Number of class action lawsuits filed by former employees | 2 | |||
First Case [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Litigation settlement amount | $ 500 | |||
Gaming [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Gaming Expenses | $ 82,348 | 77,688 | ||
Participation and Revenue Share Agreements [Member] | Gaming [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Gaming Expenses | 38,600 | 37,100 | ||
Participation and Revenue Share Agreements [Member] | Related Party Transaction, Revenue Share and Participation Agreement [Member] | Gaming [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Gaming Expenses | 200 | 200 | ||
Revenue Share Agreements [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Other Operating Expenses | $ 400 | $ 400 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 2 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Revenues | |||||
Total revenues | $ 239,892 | $ 214,789 | |||
Net income (loss) | (8,018) | 3,930 | |||
Depreciation and amortization | 27,265 | 25,237 | |||
Preopening and related expenses | 2,232 | ||||
Preopening expenses | 778 | 448 | [1] | ||
Share-based compensation | 4,184 | 1,844 | |||
Other, net | 864 | (308) | |||
Interest expense, net | 18,135 | 14,743 | |||
Change in fair value of derivative | 2,248 | (3,211) | |||
Income tax benefit | (651) | 1,219 | |||
Adjusted EBITDA | 48,440 | 45,894 | |||
Acquisition and severance expenses | 1,544 | 1,299 | |||
Asset disposal and other writedowns | 637 | 77 | |||
Other, net | (864) | 308 | |||
Assets | 1,690,183 | $ 1,366,569 | |||
Gaming [Member] | |||||
Revenues | |||||
Total revenues | 143,792 | 133,863 | |||
Food and beverage [Member] | |||||
Revenues | |||||
Total revenues | 49,758 | 42,603 | |||
Rooms [Member] | |||||
Revenues | |||||
Total revenues | 31,287 | 26,127 | |||
Other [Member] | |||||
Revenues | |||||
Total revenues | 15,055 | 12,196 | |||
Operating Segments [Member] | Casinos [Member] | |||||
Revenues | |||||
Total revenues | 151,374 | 130,487 | |||
Net income (loss) | 22,689 | 23,841 | |||
Depreciation and amortization | 21,643 | 19,635 | |||
Preopening and related expenses | 1,654 | ||||
Share-based compensation | 11 | ||||
Other, net | 11 | (37) | |||
Interest expense, net | 52 | 24 | |||
Adjusted EBITDA | 46,602 | 43,650 | |||
Acquisition and severance expenses | 286 | 51 | |||
Asset disposal and other writedowns | 256 | 62 | |||
Other, net | (11) | 37 | |||
Assets | 1,207,197 | 1,006,292 | |||
Operating Segments [Member] | Casinos [Member] | Gaming [Member] | |||||
Revenues | |||||
Total revenues | 70,885 | 64,459 | |||
Operating Segments [Member] | Casinos [Member] | Food and beverage [Member] | |||||
Revenues | |||||
Total revenues | 36,442 | 29,996 | |||
Operating Segments [Member] | Casinos [Member] | Rooms [Member] | |||||
Revenues | |||||
Total revenues | 31,287 | 26,127 | |||
Operating Segments [Member] | Casinos [Member] | Other [Member] | |||||
Revenues | |||||
Total revenues | 12,760 | 9,905 | |||
Operating Segments [Member] | Distributed Gaming [Member] | |||||
Revenues | |||||
Total revenues | 88,357 | 84,161 | |||
Net income (loss) | 7,606 | 7,448 | |||
Depreciation and amortization | 5,329 | 5,148 | |||
Preopening and related expenses | 566 | ||||
Preopening expenses | [1] | 148 | |||
Share-based compensation | 5 | ||||
Other, net | (167) | ||||
Interest expense, net | 16 | 46 | |||
Adjusted EBITDA | 13,539 | 13,007 | |||
Acquisition and severance expenses | 26 | 35 | |||
Asset disposal and other writedowns | (9) | 15 | |||
Other, net | 167 | ||||
Assets | 437,018 | 299,697 | |||
Operating Segments [Member] | Distributed Gaming [Member] | Gaming [Member] | |||||
Revenues | |||||
Total revenues | 72,907 | 69,404 | |||
Operating Segments [Member] | Distributed Gaming [Member] | Food and beverage [Member] | |||||
Revenues | |||||
Total revenues | 13,316 | 12,607 | |||
Operating Segments [Member] | Distributed Gaming [Member] | Other [Member] | |||||
Revenues | |||||
Total revenues | 2,134 | 2,150 | |||
Corporate and Other [Member] | |||||
Revenues | |||||
Total revenues | 161 | 141 | |||
Net income (loss) | (38,313) | (27,359) | |||
Depreciation and amortization | 293 | 454 | |||
Preopening and related expenses | 12 | ||||
Preopening expenses | [1] | 300 | |||
Share-based compensation | 4,168 | 1,844 | |||
Other, net | 853 | (104) | |||
Interest expense, net | 18,067 | 14,673 | |||
Change in fair value of derivative | 2,248 | (3,211) | |||
Income tax benefit | (651) | 1,219 | |||
Adjusted EBITDA | (11,701) | (10,763) | |||
Acquisition and severance expenses | 1,232 | 1,213 | |||
Asset disposal and other writedowns | 390 | ||||
Other, net | (853) | 104 | |||
Assets | 45,968 | $ 60,580 | |||
Corporate and Other [Member] | Other [Member] | |||||
Revenues | |||||
Total revenues | $ 161 | $ 141 | |||
[1] | Preopening expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards players club. |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||
Revenues | $ 239,892,000 | $ 214,789,000 | ||
Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Reimbursement expense paid | 200,000 | 200,000 | ||
Mr. Sartini [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 100,000 | $ 100,000 | ||
Executive Vice President and Chief Legal Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues | $ 200,000 | $ 300,000 | ||
Type of Revenue [Extensible List] | us-gaap:CasinoMember | us-gaap:CasinoMember | ||
Gaming Expenses | $ 200,000 | $ 200,000 | ||
Type of Cost, Good or Service [Extensible List] | us-gaap:CasinoMember | us-gaap:CasinoMember | ||
Lyle A. Berman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 0 | |||
Consulting agreement expiry date | Jul. 31, 2018 | |||
Due from related parties | 0 | |||
Lyle A. Berman [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting agreement expenses, related party | $ 100,000 | |||
Office Headquarters and Tavern Lease [Member] | Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 33.00% | |||
Office Headquarters and Tavern Lease [Member] | Mr. Sartini's Immediate Family Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 5.00% | |||
Office Headquarters and Tavern Lease [Member] | Stephen Arcana [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 3.00% | |||
Office Headquarters [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, due from (to) related party | $ 0 | 0 | ||
Office Headquarters [Member] | Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amounts of transaction | 300,000 | 300,000 | ||
Due to related parties | 0 | 0 | ||
Related party transaction, due from (to) related party | 0 | 0 | ||
Office Headquarters Lease [Member] | Mr. Sartini [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rental income for sublet portion | $ 100,000 | 100,000 | ||
Office Space Lease [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | Dec. 31, 2030 | |||
Office Space Lease [Member] | Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 33.00% | |||
Related party transaction, amounts of transaction | $ 300,000 | |||
Office Space Lease [Member] | Mr. Sartini's Immediate Family Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 5.00% | |||
Office Space Lease [Member] | Stephen Arcana [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of counterparty ownership by related party | 3.00% | |||
Tavern Leases [Member] | Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amounts of transaction | $ 100,000 | $ 100,000 | ||
Due to related parties | 0 | 0 | ||
Related party transaction, due from (to) related party | $ 0 | $ 0 |