Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GDEN | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | GOLDEN ENTERTAINMENT, INC. | |
Entity Central Index Key | 0001071255 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Common Stock, Shares Outstanding | 28,050,707 | |
Entity File Number | 000-24993 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 41-1913991 | |
Entity Incorporation, State or Country Code | MN | |
Entity Address, Address Line One | 6595 S Jones Boulevard | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 893-7777 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 301,768 | $ 111,678 |
Accounts receivable, net of allowance of $568 and $599, respectively | 11,979 | 16,247 |
Prepaid expenses | 20,620 | 19,879 |
Inventories | 7,130 | 8,237 |
Other | 5,038 | 4,388 |
Total current assets | 346,535 | 160,429 |
Property and equipment, net | 1,040,974 | 1,046,536 |
Operating lease right-of-use assets, net | 196,434 | 203,531 |
Goodwill | 177,864 | 184,325 |
Intangible assets, net | 129,468 | 135,151 |
Other assets | 10,993 | 10,945 |
Total assets | 1,902,268 | 1,740,917 |
Current liabilities | ||
Current portion of long-term debt and finance leases | 8,041 | 8,497 |
Current portion of operating leases | 33,713 | 33,883 |
Accounts payable | 29,938 | 30,146 |
Accrued taxes, other than income taxes | 5,992 | 7,495 |
Accrued payroll and related | 22,597 | 27,221 |
Accrued liabilities | 32,089 | 25,522 |
Total current liabilities | 132,370 | 132,764 |
Long-term debt, net and finance leases | 1,329,555 | 1,130,374 |
Non-current operating leases | 177,464 | 184,301 |
Deferred income taxes | 1,511 | 1,088 |
Other long-term obligations | 2,517 | 2,646 |
Total liabilities | 1,643,417 | 1,451,173 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity | ||
Common stock, $.01 par value; authorized 100,000 shares; 28,051 and 27,879 common shares issued and outstanding, respectively | 281 | 279 |
Additional paid-in capital | 463,368 | 461,643 |
Accumulated deficit | (204,798) | (172,178) |
Total shareholders' equity | 258,851 | 289,744 |
Total liabilities and shareholders' equity | $ 1,902,268 | $ 1,740,917 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 568 | $ 599 |
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) | 28,051,000 | 27,879,000 |
Common stock, shares outstanding (in shares) | 28,051,000 | 27,879,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 207,157 | $ 239,892 |
Expenses | ||
Other operating | 5,127 | 6,434 |
Selling, general and administrative | 47,610 | 56,947 |
Depreciation and amortization | 31,156 | 27,265 |
Impairment of goodwill | 6,461 | |
Acquisition and severance expenses | 2,976 | 1,544 |
Loss on disposal of assets | 589 | 247 |
Preopening expenses | 105 | 778 |
Total expenses | 220,978 | 228,178 |
Operating (loss) income | (13,821) | 11,714 |
Non-operating expense | ||
Interest expense, net | (18,746) | (18,135) |
Change in fair value of derivative | (1) | (2,248) |
Total non-operating expense, net | (18,747) | (20,383) |
Loss before income tax (provision) benefit | (32,568) | (8,669) |
Income tax (provision) benefit | (52) | 651 |
Net loss | $ (32,620) | $ (8,018) |
Weighted-average common shares outstanding | ||
Basic | 27,930 | 27,570 |
Diluted | 27,930 | 27,570 |
Net loss per share | ||
Basic | $ (1.17) | $ (0.29) |
Diluted | $ (1.17) | $ (0.29) |
Gaming [Member] | ||
Revenues | ||
Total revenues | $ 127,215 | $ 143,792 |
Expenses | ||
Cost of goods and services sold | 78,112 | 82,348 |
Food and beverage [Member] | ||
Revenues | ||
Total revenues | 41,547 | 49,758 |
Expenses | ||
Cost of goods and services sold | 34,887 | 38,214 |
Rooms [Member] | ||
Revenues | ||
Total revenues | 25,605 | 31,287 |
Expenses | ||
Cost of goods and services sold | 13,955 | 14,401 |
Other [Member] | ||
Revenues | ||
Total revenues | $ 12,790 | $ 15,055 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balances at Dec. 31, 2018 | $ 315,152 | $ 268 | $ 435,245 | $ (120,361) |
Balances (in shares) at Dec. 31, 2018 | 26,779 | |||
Cumulative effect of change in accounting for leases, net of tax (ASU 842 [Member]) at Dec. 31, 2018 | (12,272) | (12,272) | ||
Proceeds from issuance of common stock, net of issuance costs (In Shares) | 53 | |||
Share-based compensation | 4,140 | 4,140 | ||
Share issuance related to business combination | 16,608 | $ 9 | 16,599 | |
Share issuance related to business combination (In Shares) | 911 | |||
Tax benefit from share-based compensation | (288) | (288) | ||
Net 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 | |||
Balances at Dec. 31, 2019 | 289,744 | $ 279 | 461,643 | (172,178) |
Balances (in shares) at Dec. 31, 2019 | 27,879 | |||
Proceeds from issuance of common stock, net of issuance costs | 2 | $ 2 | ||
Proceeds from issuance of common stock, net of issuance costs (In Shares) | 172 | |||
Share-based compensation | 2,153 | 2,153 | ||
Tax benefit from share-based compensation | (428) | (428) | ||
Net loss | (32,620) | (32,620) | ||
Balances at Mar. 31, 2020 | $ 258,851 | $ 281 | $ 463,368 | $ (204,798) |
Balances (in shares) at Mar. 31, 2020 | 28,051 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (32,620) | $ (8,018) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 31,156 | 27,265 |
Impairment of goodwill | 6,461 | |
Share-based compensation | 2,153 | 4,140 |
Amortization of debt issuance costs and discounts on debt | 1,113 | 1,261 |
Loss on disposal of assets | 589 | 247 |
Change in fair value of derivative | 1 | 2,248 |
Deferred income taxes | 423 | (651) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 4,268 | (1,734) |
Income taxes receivable | (370) | 193 |
Prepaid expenses | (755) | (980) |
Inventories and other current assets | 827 | 527 |
Other assets | (55) | 411 |
Accounts payable and other accrued expenses | (492) | 277 |
Accrued taxes, other than income taxes | (1,503) | 1,523 |
Other liabilities | (39) | 54 |
Net cash provided by operating activities | 11,157 | 26,763 |
Cash flows from investing activities | ||
Purchase of property and equipment, net of change in construction payables | (18,541) | (27,094) |
Acquisition of business, net of cash acquired | (148,952) | |
Proceeds from disposal of property and equipment | 353 | 26 |
Other investing activities | (45) | |
Net cash used in investing activities | (18,188) | (176,065) |
Cash flows from financing activities | ||
Borrowings under revolving credit facility | 200,000 | 145,000 |
Repayments of term loan | (2,000) | |
Repayments of notes payable | (1,824) | (855) |
Principal payments under finance leases | (629) | (367) |
Tax withholding on share-based payments | (428) | (288) |
Proceeds from exercise of common stock | 2 | |
Net cash provided by financing activities | 197,121 | 141,490 |
Cash and cash equivalents | ||
Change in cash and cash equivalents | 190,090 | (7,812) |
Balance, beginning of period | 111,678 | 116,071 |
Balance, end of period | 301,768 | 108,259 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 2,952 | 16,579 |
Cash received for income taxes, net | (193) | |
Non-cash investing and financing activities | ||
Payables incurred for capital expenditures | $ 2,292 | 4,064 |
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, 2020 | |
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 Boulder Las Vegas, Nevada Arizona Charlie's Decatur Las Vegas, Nevada Aquarius Casino Resort ("Aquarius") Laughlin, Nevada Colorado Belle Hotel & Casino Resort ("Colorado Belle") Laughlin, Nevada Edgewater Hotel & Casino Resort ("Edgewater") Laughlin, Nevada Gold Town Casino Pahrump, Nevada Lakeside Casino & RV Park Pahrump, Nevada Pahrump Nugget Hotel Casino ("Pahrump Nugget") 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. In December 2019, an outbreak of COVID-19 began in Wuhan, Hubei Province, China. The disease has since spread rapidly across the world, causing the World Health Organization to declare COVID-19 a pandemic on March 12, 2020. Since that time, people across the globe have been advised to avoid non-essential travel, and steps have been taken by governmental authorities, including in the States in which the Company operates, to implement closures of non-essential operations to contain the spread of the virus. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets. Following executive orders issued by the Governors of Nevada, Maryland, and Montana, in the week of March 16, 2020, all of the Company’s properties were temporarily closed to the public and the Company’s Distributed Gaming operations at third party locations were suspended. Although the Company’s Distributed Gaming operations in Montana resumed on May 4, 2020, the Company cannot predict when any of its closed properties will be able to reopen and on what conditions, nor when its Distributed Gaming operations in Nevada will be able to resume. The disruptions arising from the COVID-19 pandemic had a significant adverse impact on the Company's financial condition and results of operations during the three months ended March 31, 2020. The duration and intensity of this global health emergency and related disruptions is uncertain. Given the dynamic nature of these circumstances, the impact on the Company’s consolidated results of operations, cash flows and financial condition in 2020 will be material, but cannot be reasonably estimated at this time as it is unknown when the COVID-19 pandemic will end, when or how quickly the current travel restrictions will be modified or cease to be necessary and the resulting impact on the Company’s business and the willingness of customers to spend on travel and entertainment. 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, 2019 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. Net Loss Per Share For all periods, basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding. Diluted net loss per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net loss by the weighted-average of all common and potentially dilutive shares outstanding. Due to the net losses for the three months ended March 31, 2020 and 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 both periods. The amount of potential common share equivalents excluded were 1,141,739 and 1,047,804 for three months ended March 31, 2020 and 2019, respectively. Accounting Standards Issued and Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Accounting Standards Issued but Not Yet Adopted No recently issued accounting standards that are not yet effective have been identified that management believes are likely to have a material impact on the Company’s financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Laughlin Acquisition On January 14, 2019, the Company completed the acquisition of Edgewater Gaming, LLC and Colorado Belle Gaming, LLC (the “Laughlin 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 “ Laughlin Acquisition”). The results of operations of the Laughlin Entities are included in the Company’s results subsequent to the acquisition date. The Laughlin Acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations Under ASC 805, the purchase price of the acquisition is allocated to the 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 was recorded as goodwill and is expected to be deductible for tax purposes. The determination of the fair value of the acquired assets and assumed liabilities (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) was completed in the fourth quarter of 2019. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Land $ 125,240 $ 125,240 Building and site improvements 922,258 880,662 Furniture and equipment 241,162 222,938 Construction in process 9,821 49,869 Property and equipment 1,298,481 1,278,709 Less: Accumulated depreciation (257,507 ) (232,173 ) Property and equipment, net $ 1,040,974 $ 1,046,536 Depreciation expense for property and equipment, including finance leases, was $25.5 million and $21.5 million for the three months ended March 31, 2020 and 2019, respectively. The Company concluded that the impact of the current COVID-19 pandemic on operations and financial results is an indicator that impairment may exist related to its long-lived assets. As a result, the Company performed an impairment assessment and determined that there was no impairment on long-lived assets. |
Goodwill and Intangible, Net
Goodwill and Intangible, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible, Net | Note 4 – Goodwill and Intangible, Net The Company concluded that the impact of the current COVID-19 pandemic on operations and financial results is an indicator that impairment may exist related to its goodwill and other intangible assets. As a result, the Company performed an impairment assessment on goodwill and intangibles. As a result of these impairment assessments, the Company determined that there was an impairment of the goodwill in its Casinos segment and recognized a non-cash impairment of goodwill of $6.5 million. There was no impairment of the remaining goodwill or other intangible assets. The estimated fair value of goodwill was determined using discounted cash flow models which utilized Level 3 inputs as follows: discount rate of 12.0%; long-term revenue growth rate of 3.0%. The impairment charge is included in “Impairment of goodwill” on the consolidated statements of operations. The following table summarizes goodwill activity by reportable segment: (In thousands) Casinos Distributed Gaming Total Goodwill Balance, December 31, 2019 $ 86,466 $ 97,859 $ 184,325 Goodwill impairment (6,461 ) — (6,461 ) Balance, March 31, 2020 $ 80,005 $ 97,859 $ 177,864 March 31, 2020 Weighted- Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 53,690 $ — $ 53,690 Trade names Indefinite 960 — 960 Other Indefinite 185 — 185 54,835 — 54,835 Amortizing intangible assets Customer relationships 9.8 years 81,104 (25,608 ) 55,496 Player relationships 1.7 years 42,989 (30,139 ) 12,850 Non-compete agreements 2 years 9,840 (5,946 ) 3,894 Gaming license 8.1 years 2,100 (963 ) 1,137 In-place lease value 1.1 years 1,171 (717 ) 454 Leasehold interest 1.4 years 570 (384 ) 186 Other 6.1 years 1,814 (1,198 ) 616 139,588 (64,955 ) 74,633 Balance, March 31, 2020 $ 194,423 $ (64,955 ) $ 129,468 Intangible assets, net, consisted of the following: December 31, 2019 Weighted- Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 53,690 $ — $ 53,690 Trade names Indefinite 960 — 960 Liquor Licenses Indefinite 185 — 185 54,835 — 54,835 Amortizing intangible assets Customer relationships 10.0 years 81,105 (24,140 ) 56,965 Player relationships 2.0 years 42,990 (26,649 ) 16,341 Non-compete agreements 2.2 years 9,840 (5,467 ) 4,373 Gaming licenses 8.3 years 2,100 (929 ) 1,171 In-place lease value 1.3 years 1,301 (724 ) 577 Leasehold interest 1.6 years 570 (345 ) 225 Other 6.3 years 1,814 (1,150 ) 664 139,720 (59,404 ) 80,316 Balance, December 31, 2019 $ 194,555 $ (59,404 ) $ 135,151 The Rocky Gap gaming license is being amortized over its 15 year term. Total amortization expense related to intangible assets was $5.6 million and $5.7 million for the three months ended March 31, 2020 and 2019, respectively. Estimated future amortization expense related to intangible assets, is as follows: (In thousands) Remainder of 2020 2021 2022 2023 2024 Thereafter Total Estimated amortization expense $ 15,342 $ 8,054 $ 7,479 $ 7,367 $ 6,472 $ 29,919 $ 74,633 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Note 5 – Accrued Liabilities Accrued liabilities consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Gaming liabilities $ 10,894 $ 12,353 Interest 14,579 6,562 Deposits 2,329 2,734 Other accrued liabilities 4,287 3,873 Total accrued and other current liabilities $ 32,089 $ 25,522 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt, net, consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Term loan $ 772,000 $ 772,000 Revolving credit facility 200,000 — Senior notes due 2026 375,000 375,000 Finance lease liabilities 11,510 12,463 Notes payable 4,935 6,369 Total long-term debt 1,363,445 1,165,832 Less unamortized discount (18,068 ) (18,885 ) Less unamortized debt issuance costs (7,781 ) (8,076 ) 1,337,596 1,138,871 Less current maturities (8,041 ) (8,497 ) Long-term debt, net $ 1,329,555 $ 1,130,374 Senior Secured Credit Facility As of March 31, 2020, the Company’s senior secured credit facility consisted of a $1.0 billion senior secured first lien credit facility (consisting of an $800 million term loan 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 “Credit Facility”). On March 16, 2020, the Company fully drew the available capacity of $200 million under its revolving credit facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of uncertainty in the global markets resulting from the COVID-19 pandemic. In accordance with the terms of the revolving credit facility, the proceeds from these borrowings may be used for working capital, general corporate or other permitted purposes. As of March 31, 2020, the Company had $772 million in principal amount of outstanding term loan borrowings under its Credit Facility, no letters of credit outstanding under the Credit Facility, and $200 million in principal amount of borrowings outstanding under its revolving credit facility. As of March 31, 2020, the weighted-average effective interest rate on the Company’s outstanding borrowings under the Credit Facility was approximately 3.9%. The revolving credit facility matures on October 20, 2022, and the term loan under the Credit Facility matures on October 20, 2024. The term loan under the Credit Facility is repayable in 27 quarterly installments of $2 million each, which commenced in March 2018 The Company was in compliance with its financial covenants under the Credit Facility as of March 31, 2020. 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 at face value. The 2026 Notes bear interest at 7.625%, payable semi-annually on April 15 th th |
Stockholders_ Equity and Stock
Stockholders’ Equity and Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders’ Equity and Stock Incentive Plans | Note 7 – Stockholders’ Equity and Stock Incentive Plans Share Repurchase Program On March 12, 2019, the Company’s Board of Directors authorized the repurchase of up to $25.0 million additional shares of common stock. 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. As of March 31, 2020, the Company had not repurchased any shares under the March 12, 2019 authorization. Stock Options The following table summarizes the Company’s stock option activity: Stock Options Weighted- Average Shares Exercise Price Outstanding at January 1, 2020 3,126,521 $ 11.61 Granted — $ — Exercised (40,000 ) $ 2.07 Cancelled (5,312 ) $ 12.88 Expired (146,972 ) $ 26.70 Outstanding at March 31, 2020 2,934,237 $ 10.99 Exercisable at March 31, 2020 2,653,323 $ 10.76 Share-based compensation expense, net related to stock options was $0.6 million and $2.5 million for the three months ended March 31, 2020 and 2019, respectively. The Company’s unrecognized share-based compensation expense related to stock options was approximately $1.5 million as of March 31, 2020, which is expected to be recognized over a weighted-average period of 0.8 years. Restricted Stock Units The following table summarizes the Company’s activity related to time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”): RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2020 661,258 $ 16.44 376,328 $ 20.65 Granted 387,274 $ 8.86 387,274 $ 8.86 Vested (178,801 ) $ 18.72 (5,254 ) $ 28.72 Cancelled (7,561 ) $ 19.41 (32,235 ) $ — Outstanding at March 31, 2020 862,170 $ 12.53 726,113 $ 13.94 (1) The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2020 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, 2020 and for all of the PSUs granted in 2020 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 eligible to vest at “maximum” performance levels. Additionally, 108,957 of the PSUs listed as outstanding at January 1, 2020 represent PSUs granted in March 2018 (the “2018 PSU Awards”). During the first quarter of 2020, the Company’s financial results for the applicable performance goals were certified, with 70.4% of the “target” number of PSUs for the 2018 PSU Awards “earned” based on the Company’s performance, subject to one additional year of time-based vesting. Accordingly, the total number of PSUs granted in the 2018 PSU Awards that are eligible to vest was reduced by 32,235 shares from 108,957 shares to 76,722 shares. Share-based compensation expense, net related to RSUs was $1.0 million and $1.1 million for the three months ended March 31, 2020 and 2019, respectively. Share-based compensation expense related to PSUs was $0.5 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $8.6 million and $5.8 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 2.6 years and 2.4 years for RSUs and PSUs, respectively. As of March 31, 2020, a total of 1,731,800 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, 2020 of 1,066,403 shares. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 8 – Income Tax The Company’s effective tax rate was (0.2)% and 7.9% for the three months ended March 31, 2020 and 2019, respectively. Income tax expense of $0.1 million for the three months ended March 31, 2020 was primarily due to the change in valuation allowance against the Company’s deferred tax assets during the first three months of 2020. 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 three months of 2019 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. As of March 31, 2020, the Company’s 2017 and 2018 federal tax returns were under audit by the IRS. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 9 – Financial Instruments and Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Thus, assets and liabilities categorized as Level 3 may be measured at fair value using inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The carrying values of the Company’s 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, 2020 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loan $ 772,000 $ 590,580 Level 2 Revolving credit facility 200,000 153,000 Level 2 Senior notes due 2026 375,000 247,500 Level 2 Finance lease liabilities 11,510 11,510 Level 3 Notes payable 4,935 4,935 Level 3 Total debt $ 1,363,445 $ 1,007,525 December 31, 2019 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loan $ 772,000 $ 776,806 Level 2 Senior notes due 2026 375,000 401,250 Level 2 Finance lease liabilities 12,463 12,463 Level 3 Notes payable 6,369 6,369 Level 3 Total debt $ 1,165,832 $ 1,196,888 The estimated fair value of the Company’s term loan, revolving credit facility and 2026 Notes is based on a relative value analysis performed as of March 31, 2020 and December 31, 2019. The finance lease liabilities and notes 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, 2020, 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 immaterial as of March 31, 2020 and December 31, 2019. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies Participation and Revenue Share Agreements The Company enters into slot placement contracts in the form of participation and revenue share agreements. Under participation agreements, the business location holds the applicable gaming license and retains a percentage of the gaming revenue that it generates from the Company’s slots. Under revenue share agreements, the Company pays the business location a percentage of the gaming revenue generated from the Company’s slots placed at the location, rather than a fixed monthly rental fee. During the three months ended March 31, 2020 and 2019, the aggregate contingent payments recognized by the Company as gaming expenses under revenue share and participation agreements were $36.0 million and $38.6 million, respectively, in each case including $0.2 million under revenue share and participation agreements with related parties, as described in Note 11, Related Party Transactions 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 records reserves. 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. 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 filed an appeal to the Supreme Court of Nevada on April 10, 2019. The Company, and other defendants, filed an appellate response brief on October 19, 2019. On August 5, 2015 a prior employee filed a Charge of Discrimination with the Equal Employment Opportunity Commission (“EEOC”) and subsequently filed an Amended Charge of Discrimination on January 2016 alleging that the Company engaged in disability discrimination under the Americans with Disabilities Act of 1990. In late 2019 the EEOC issued a Letter of Determination and invited the Company to participate in a mediation on behalf of the plaintiff and similarly situated parties to work toward a resolution of this matter. This request to mediate has been extended through May 2020 and no mediation date has been set. The EEOC is requesting financial recovery as well as requesting the Company update policies and procedures and the Company is preparing for future mediation. 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, 2020 | |
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, impairment of goodwill, acquisition and severance expenses, preopening and related expenses, asset disposals and other writedowns, share-based compensation expenses, and change in fair value of derivative, calculated before corporate overhead (which is not allocated to each segment). The following tables set forth, for the periods indicated, certain operating data for the Company’s segments, and reconciles net income (loss) to Adjusted EBITDA: Three Months Ended March 31, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 61,905 $ 65,310 $ — $ 127,215 Food and beverage 29,805 11,742 — 41,547 Rooms 25,605 — — 25,605 Other 10,655 1,932 203 12,790 Total revenues $ 127,970 $ 78,984 $ 203 $ 207,157 Net income (loss) $ (2,938 ) $ 604 $ (30,286 ) $ (32,620 ) Depreciation and amortization 24,713 5,865 578 31,156 Impairment of goodwill 6,461 — — 6,461 Acquisition and severance expenses 2,417 478 81 2,976 Preopening and related expenses (1) 225 — 105 330 Asset disposals and other writedowns 627 (38 ) — 589 Share-based compensation — — 2,246 2,246 Other, net 47 197 113 357 Interest expense, net 245 15 18,486 18,746 Change in fair value of derivative — — 1 1 Income tax provision — — 52 52 Adjusted EBITDA $ 31,797 $ 7,121 $ (8,624 ) $ 30,294 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 Acquisition and severance expenses 286 26 1,232 1,544 Preopening and related expenses (1) 1,654 566 12 2,232 Asset disposals 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 (1) Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2020 $ 1,175,915 $ 439,281 $ 287,072 $ 1,902,268 Balance at December 31, 2019 $ 1,204,574 $ 482,294 $ 54,049 $ 1,740,917 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 – Related Party Transactions As of March 31, 2020, 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 lease for the Company’s office headquarters building expires on December 31, 2030. The rent expense for the office headquarters building was $0.3 million for each of the three months ended March 31, 2020 and 2019. No amount was owed to the Company, and no amount was due and payable by the Company, under this lease as of March 31, 2020 and December 31, 2019. Additionally, a portion of the office headquarters building was sublet to a company owned or controlled by Mr. Sartini. Rental income during each of the three months ended March 31, 2020 and 2019 for the sublet portion of the office headquarters building was less than $0.1 million. No amount was owed to the Company under such sublease as of March 31, 2020 and December 31, 2019. Mr. Sartini serves as the Chairman of the Board 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. In November 2018, the Company entered into a lease agreement for office space in a building to be constructed and owned by a company 33% beneficially owned by Mr. 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 Mr. Arcana. The lease is intended to commence in 2020 and expires on December 31, 2030. The rent expense for the space is expected to be approximately $0.3 million per year. Additionally, the lease agreement includes a right of first refusal for additional space on the second floor of the building. One tavern location that the Company had previously leased from a related party was sold in the second quarter of 2019 to an unrelated third party. The rent expense for the tavern location leased from a related party was $0.1 million for the three months ended March 31, 2019. No tavern locations were leased from related parties during the three months ended March 31, 2020. During the three months ended March 31, 2020 and 2019, the Company paid $0.1 million and $0.2 million, respectively, 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, 2020 and no amount was owed to the Company as of December 31, 2019 During the three months ended March 31, 2020 and 2019, the Company recorded revenues of $0.3 million and $0.2 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 Government Affairs. and December 31, 2019 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
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. There have been no subsequent events that occurred during such period that would require adjustment to or disclosure in the consolidated financial statements as of and for the three months ended March 31, 2020. Subsequent to March 31, 2020, the global economy has continued to be severely impacted by the COVID-19 pandemic. While the Company is not able to estimate the impact of COVID-19 at this time, the pandemic could materially affect the Company’s financial and operating results. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 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. |
Net Loss Per Share | Net Loss Per Share For all periods, basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding. Diluted net loss per share in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net loss by the weighted-average of all common and potentially dilutive shares outstanding. Due to the net losses for the three months ended March 31, 2020 and 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 both periods. The amount of potential common share equivalents excluded were 1,141,739 and 1,047,804 for three months ended March 31, 2020 and 2019, respectively. |
New Accounting Pronouncements | Accounting Standards Issued and Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Accounting Standards Issued but Not Yet Adopted No recently issued accounting standards that are not yet effective have been identified that management believes are likely to have a material impact on the Company’s financial statements. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net, consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Land $ 125,240 $ 125,240 Building and site improvements 922,258 880,662 Furniture and equipment 241,162 222,938 Construction in process 9,821 49,869 Property and equipment 1,298,481 1,278,709 Less: Accumulated depreciation (257,507 ) (232,173 ) Property and equipment, net $ 1,040,974 $ 1,046,536 |
Goodwill and Intangible, Net (T
Goodwill and Intangible, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity by Reportable Segment | The following table summarizes goodwill activity by reportable segment: (In thousands) Casinos Distributed Gaming Total Goodwill Balance, December 31, 2019 $ 86,466 $ 97,859 $ 184,325 Goodwill impairment (6,461 ) — (6,461 ) Balance, March 31, 2020 $ 80,005 $ 97,859 $ 177,864 |
Schedule of Intangible Assets, Net | March 31, 2020 Weighted- Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 53,690 $ — $ 53,690 Trade names Indefinite 960 — 960 Other Indefinite 185 — 185 54,835 — 54,835 Amortizing intangible assets Customer relationships 9.8 years 81,104 (25,608 ) 55,496 Player relationships 1.7 years 42,989 (30,139 ) 12,850 Non-compete agreements 2 years 9,840 (5,946 ) 3,894 Gaming license 8.1 years 2,100 (963 ) 1,137 In-place lease value 1.1 years 1,171 (717 ) 454 Leasehold interest 1.4 years 570 (384 ) 186 Other 6.1 years 1,814 (1,198 ) 616 139,588 (64,955 ) 74,633 Balance, March 31, 2020 $ 194,423 $ (64,955 ) $ 129,468 Intangible assets, net, consisted of the following: December 31, 2019 Weighted- Gross Average Life Carrying Cumulative Intangible (In thousands) Remaining Value Amortization Assets, Net Indefinite-lived intangible assets Gaming licenses Indefinite $ 53,690 $ — $ 53,690 Trade names Indefinite 960 — 960 Liquor Licenses Indefinite 185 — 185 54,835 — 54,835 Amortizing intangible assets Customer relationships 10.0 years 81,105 (24,140 ) 56,965 Player relationships 2.0 years 42,990 (26,649 ) 16,341 Non-compete agreements 2.2 years 9,840 (5,467 ) 4,373 Gaming licenses 8.3 years 2,100 (929 ) 1,171 In-place lease value 1.3 years 1,301 (724 ) 577 Leasehold interest 1.6 years 570 (345 ) 225 Other 6.3 years 1,814 (1,150 ) 664 139,720 (59,404 ) 80,316 Balance, December 31, 2019 $ 194,555 $ (59,404 ) $ 135,151 |
Schedule of Estimated Future Amortization Expense Related to Intangible Assets | Estimated future amortization expense related to intangible assets, is as follows: (In thousands) Remainder of 2020 2021 2022 2023 2024 Thereafter Total Estimated amortization expense $ 15,342 $ 8,054 $ 7,479 $ 7,367 $ 6,472 $ 29,919 $ 74,633 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Gaming liabilities $ 10,894 $ 12,353 Interest 14,579 6,562 Deposits 2,329 2,734 Other accrued liabilities 4,287 3,873 Total accrued and other current liabilities $ 32,089 $ 25,522 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net, consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Term loan $ 772,000 $ 772,000 Revolving credit facility 200,000 — Senior notes due 2026 375,000 375,000 Finance lease liabilities 11,510 12,463 Notes payable 4,935 6,369 Total long-term debt 1,363,445 1,165,832 Less unamortized discount (18,068 ) (18,885 ) Less unamortized debt issuance costs (7,781 ) (8,076 ) 1,337,596 1,138,871 Less current maturities (8,041 ) (8,497 ) Long-term debt, net $ 1,329,555 $ 1,130,374 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 3,126,521 $ 11.61 Granted — $ — Exercised (40,000 ) $ 2.07 Cancelled (5,312 ) $ 12.88 Expired (146,972 ) $ 26.70 Outstanding at March 31, 2020 2,934,237 $ 10.99 Exercisable at March 31, 2020 2,653,323 $ 10.76 |
Summary of Activity Related To Time-based Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) | The following table summarizes the Company’s activity related to time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”): RSUs PSUs Weighted- Weighted- Average Grant Average Grant Shares Date Fair Value Shares (1) Date Fair Value Outstanding at January 1, 2020 661,258 $ 16.44 376,328 $ 20.65 Granted 387,274 $ 8.86 387,274 $ 8.86 Vested (178,801 ) $ 18.72 (5,254 ) $ 28.72 Cancelled (7,561 ) $ 19.41 (32,235 ) $ — Outstanding at March 31, 2020 862,170 $ 12.53 726,113 $ 13.94 (1) The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2020 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, 2020 and for all of the PSUs granted in 2020 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 eligible to vest at “maximum” performance levels. Additionally, 108,957 of the PSUs listed as outstanding at January 1, 2020 represent PSUs granted in March 2018 (the “2018 PSU Awards”). During the first quarter of 2020, the Company’s financial results for the applicable performance goals were certified, with 70.4% of the “target” number of PSUs for the 2018 PSU Awards “earned” based on the Company’s performance, subject to one additional year of time-based vesting. Accordingly, the total number of PSUs granted in the 2018 PSU Awards that are eligible to vest was reduced by 32,235 shares from 108,957 shares to 76,722 shares. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loan $ 772,000 $ 590,580 Level 2 Revolving credit facility 200,000 153,000 Level 2 Senior notes due 2026 375,000 247,500 Level 2 Finance lease liabilities 11,510 11,510 Level 3 Notes payable 4,935 4,935 Level 3 Total debt $ 1,363,445 $ 1,007,525 December 31, 2019 Carrying Fair Fair Value (In thousands) Amount Value Hierarchy Term loan $ 772,000 $ 776,806 Level 2 Senior notes due 2026 375,000 401,250 Level 2 Finance lease liabilities 12,463 12,463 Level 3 Notes payable 6,369 6,369 Level 3 Total debt $ 1,165,832 $ 1,196,888 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Revenues Gaming $ 61,905 $ 65,310 $ — $ 127,215 Food and beverage 29,805 11,742 — 41,547 Rooms 25,605 — — 25,605 Other 10,655 1,932 203 12,790 Total revenues $ 127,970 $ 78,984 $ 203 $ 207,157 Net income (loss) $ (2,938 ) $ 604 $ (30,286 ) $ (32,620 ) Depreciation and amortization 24,713 5,865 578 31,156 Impairment of goodwill 6,461 — — 6,461 Acquisition and severance expenses 2,417 478 81 2,976 Preopening and related expenses (1) 225 — 105 330 Asset disposals and other writedowns 627 (38 ) — 589 Share-based compensation — — 2,246 2,246 Other, net 47 197 113 357 Interest expense, net 245 15 18,486 18,746 Change in fair value of derivative — — 1 1 Income tax provision — — 52 52 Adjusted EBITDA $ 31,797 $ 7,121 $ (8,624 ) $ 30,294 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 Acquisition and severance expenses 286 26 1,232 1,544 Preopening and related expenses (1) 1,654 566 12 2,232 Asset disposals 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 (1) Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. Assets The Company’s assets by segment consisted of the following amounts: (In thousands) Casinos Distributed Gaming Corporate and Other Consolidated Balance at March 31, 2020 $ 1,175,915 $ 439,281 $ 287,072 $ 1,902,268 Balance at December 31, 2019 $ 1,204,574 $ 482,294 $ 54,049 $ 1,740,917 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Details Textual) | 3 Months Ended | |
Mar. 31, 2020SegmentPropertyshares | Mar. 31, 2019shares | |
Nature Of Business And Basis Of Presentation [Line Items] | ||
Number of reportable operating segments | Segment | 2 | |
Anti-dilutive potential common share equivalents excluded | shares | 1,141,739 | 1,047,804 |
Nevada and Maryland [Member] | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Number of resort casino properties | Property | 10 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - Marnell Gaming,LLC [Member] $ in Millions | Jan. 14, 2019USD ($)shares |
Business Acquisition [Line Items] | |
Business acquisition, date of acquisition | Jan. 14, 2019 |
Consideration paid, cash | $ | $ 156.2 |
Consideration paid, shares issued | shares | 911,002 |
Components of Property and Equi
Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Land | $ 125,240 | $ 125,240 |
Building and site improvements | 922,258 | 880,662 |
Furniture and equipment | 241,162 | 222,938 |
Construction in process | 9,821 | 49,869 |
Property and equipment | 1,298,481 | 1,278,709 |
Less: Accumulated depreciation | (257,507) | (232,173) |
Property and equipment, net | $ 1,040,974 | $ 1,046,536 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation Expense | $ 25,500,000 | $ 21,500,000 |
Impairment on long-lived assets | $ 0 |
Goodwill and Intangible, Net (D
Goodwill and Intangible, Net (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 6,461,000 | |
Impairment of indefinite-lived intangible assets | $ 0 | |
Gaming licenses [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Useful Life (Years) | 15 years | |
Amortization of Intangible Assets | $ 5,600,000 | $ 5,700,000 |
Discounted Cash Flow [Member] | Level 3 [Member] | Discount Rate [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Measurement of fair value inputs | 12.00% | |
Discounted Cash Flow [Member] | Level 3 [Member] | Long-term Revenue Growth Rate [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Measurement of fair value inputs | 3.00% | |
Casinos [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 6,461,000 | |
Distributed Gaming [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 0 |
Summary of Goodwill Activity by
Summary of Goodwill Activity by Reportable Segment (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill And Intangible Assets [Line Items] | |
Beginning balance | $ 184,325,000 |
Goodwill impairment | (6,461,000) |
Ending balance | 177,864,000 |
Casinos [Member] | |
Goodwill And Intangible Assets [Line Items] | |
Beginning balance | 86,466,000 |
Goodwill impairment | (6,461,000) |
Ending balance | 80,005,000 |
Distributed Gaming [Member] | |
Goodwill And Intangible Assets [Line Items] | |
Beginning balance | 97,859,000 |
Goodwill impairment | 0 |
Ending balance | $ 97,859,000 |
Schedule of Intangible Assets,
Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | $ 54,835 | $ 54,835 |
Amortizing intangible assets | ||
Amortizing intangible assets, Gross Carrying Value | 139,588 | 139,720 |
Amortizing intangible assets, Cumulative Amortization | (64,955) | (59,404) |
Amortizing intangible assets, Intangible Assets, Net | 74,633 | 80,316 |
Intangible assets, Gross Carrying Value | 194,423 | 194,555 |
Intangible assets, Cumulative Amortization | (64,955) | (59,404) |
Total intangible assets, Net | $ 129,468 | $ 135,151 |
Customer Relationships [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 9 years 9 months 18 days | 10 years |
Amortizing intangible assets, Gross Carrying Value | $ 81,104 | $ 81,105 |
Amortizing intangible assets, Cumulative Amortization | (25,608) | (24,140) |
Amortizing intangible assets, Intangible Assets, Net | $ 55,496 | $ 56,965 |
Player Relationships [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 1 year 8 months 12 days | 2 years |
Amortizing intangible assets, Gross Carrying Value | $ 42,989 | $ 42,990 |
Amortizing intangible assets, Cumulative Amortization | (30,139) | (26,649) |
Amortizing intangible assets, Intangible Assets, Net | $ 12,850 | $ 16,341 |
Noncompete Agreements [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 2 years | 2 years 2 months 12 days |
Amortizing intangible assets, Gross Carrying Value | $ 9,840 | $ 9,840 |
Amortizing intangible assets, Cumulative Amortization | (5,946) | (5,467) |
Amortizing intangible assets, Intangible Assets, Net | $ 3,894 | $ 4,373 |
Amortizing Gaming Licenses [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 8 years 1 month 6 days | 8 years 3 months 18 days |
Amortizing intangible assets, Gross Carrying Value | $ 2,100 | $ 2,100 |
Amortizing intangible assets, Cumulative Amortization | (963) | (929) |
Amortizing intangible assets, Intangible Assets, Net | $ 1,137 | $ 1,171 |
In-Place Lease Value [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 1 year 1 month 6 days | 1 year 3 months 18 days |
Amortizing intangible assets, Gross Carrying Value | $ 1,171 | $ 1,301 |
Amortizing intangible assets, Cumulative Amortization | (717) | (724) |
Amortizing intangible assets, Intangible Assets, Net | $ 454 | $ 577 |
Leasehold Interest [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 1 year 4 months 24 days | 1 year 7 months 6 days |
Amortizing intangible assets, Gross Carrying Value | $ 570 | $ 570 |
Amortizing intangible assets, Cumulative Amortization | (384) | (345) |
Amortizing intangible assets, Intangible Assets, Net | $ 186 | $ 225 |
Other [Member] | ||
Amortizing intangible assets | ||
Amortizing intangible assets, Weighted Average Life Remaining Period | 6 years 1 month 6 days | 6 years 3 months 18 days |
Amortizing intangible assets, Gross Carrying Value | $ 1,814 | $ 1,814 |
Amortizing intangible assets, Cumulative Amortization | (1,198) | (1,150) |
Amortizing intangible assets, Intangible Assets, Net | 616 | 664 |
Gaming licenses [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | 53,690 | 53,690 |
Trade Names [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | 960 | 960 |
Other [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | $ 185 | |
Liquor Licenses [Member] | ||
Indefinite-lived intangible assets | ||
Indefinite-lived intangible assets | $ 185 |
Schedule of Estimated Future Am
Schedule of Estimated Future Amortization Expense Related to Intangible Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Estimated amortization expense, Remainder of 2020 | $ 15,342 | |
Estimated amortization expense, 2021 | 8,054 | |
Estimated amortization expense, 2022 | 7,479 | |
Estimated amortization expense, 2023 | 7,367 | |
Estimated amortization expense, 2024 | 6,472 | |
Estimated amortization expense, Thereafter | 29,919 | |
Amortizing intangible assets, Intangible Assets, Net | $ 74,633 | $ 80,316 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Gaming liabilities | $ 10,894 | $ 12,353 |
Interest | 14,579 | 6,562 |
Deposits | 2,329 | 2,734 |
Other accrued liabilities | 4,287 | 3,873 |
Total accrued and other current liabilities | $ 32,089 | $ 25,522 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Term loan | $ 772,000 | $ 772,000 |
Revolving credit facility | 200,000 | |
Senior notes due 2026 | 375,000 | 375,000 |
Finance lease liabilities | 11,510 | 12,463 |
Notes payable | 4,935 | 6,369 |
Total long-term debt | 1,363,445 | 1,165,832 |
Less unamortized discount | (18,068) | (18,885) |
Less unamortized debt issuance costs | (7,781) | (8,076) |
Long-term Debt | 1,337,596 | 1,138,871 |
Less current maturities | (8,041) | (8,497) |
Long-term debt, net | $ 1,329,555 | $ 1,130,374 |
Long-term Debt (Parenthetical)
Long-term Debt (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Senior notes maturity year | 2026 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) | Apr. 15, 2019USD ($) | Mar. 31, 2020USD ($)Installment | Mar. 16, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Outstanding revolving credit facility | $ 200,000,000 | ||||
Debt Instrument, Outstanding Amount | 1,337,596,000 | $ 1,138,871,000 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding revolving credit facility | 200,000 | ||||
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] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | $ 200,000,000 | |||
Senior Secured First Lien Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 800,000,000 | ||||
Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.90% | ||||
Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Expiration Date | Oct. 20, 2022 | ||||
Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Outstanding Amount | $ 0 | ||||
Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Outstanding Amount | $ 772,000,000 | ||||
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 Unsecured Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 375,000,000 | ||||
Debt instrument interest stated percentage | 7.625% | ||||
Debt instrument frequency of periodic payment | semi-annually |
Stockholders' Equity and Stock
Stockholders' Equity and Stock Incentive Plans (Details Textual) - USD ($) | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 12, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock repurchase, authorized | $ 0 | |||
2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock available for grants of awards | 1,731,800 | |||
Number of shares available for grant annual increase | 1,066,403 | |||
Employee Stock Option [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense, net | $ 600,000 | $ 2,500,000 | ||
Stock Options, unrecognized share-based compensation expense | $ 1,500,000 | |||
Share-based compensation expense not yet recognized, weighted-average period for recognition | 9 months 18 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense, net | $ 1,000,000 | 1,000,000 | ||
Share-based compensation expense not yet recognized, weighted-average period for recognition | 2 years 7 months 6 days | |||
Unamortized share-based compensation expense | $ 8,600,000 | |||
Performance Stock Units (PSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense, net | $ 500,000 | $ 400,000 | ||
Share-based compensation expense not yet recognized, weighted-average period for recognition | 2 years 4 months 24 days | |||
Unamortized share-based compensation expense | $ 5,800,000 | |||
Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock repurchase, authorized | $ 25,000,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Stock Options Outstanding | |
Stock Options Outstanding, Beginning of year | shares | 3,126,521 |
Stock Options Outstanding, Exercised | shares | (40,000) |
Stock Options Outstanding, Cancelled | shares | (5,312) |
Stock Options Outstanding, Expired | shares | (146,972) |
Stock Options Outstanding, End of year | shares | 2,934,237 |
Stock Options Outstanding, Exercisable | shares | 2,653,323 |
Weighted-Average Exercise Price | |
Weighted-Average Exercise Price, beginning of year | $ / shares | $ 11.61 |
Weighted Average Exercise Price, Exercised | $ / shares | 2.07 |
Weighted Average Exercise Price, Cancelled | $ / shares | 12.88 |
Weighted Average Exercise Price, Expired | $ / shares | 26.70 |
Weighted-Average Exercise Price, end of year | $ / shares | 10.99 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 10.76 |
Summary of Activity Related To
Summary of Activity Related To Time-based Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) (Details) - 2015 Plan [Member] | 3 Months Ended | |
Mar. 31, 2020$ / sharesshares | ||
RSUs [Member] | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Beginning of year | 661,258 | |
Restricted Stock Units Outstanding, Granted | 387,274 | |
Restricted Stock Units Outstanding, Vested | (178,801) | |
Restricted Stock Units Outstanding, Cancelled | (7,561) | |
Restricted Stock Units Outstanding, End of year | 862,170 | |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Beginning of year | $ / shares | $ 16.44 | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.86 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 18.72 | |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 19.41 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 12.53 | |
Performance Stock Units (PSUs) [Member] | ||
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Beginning of year | 376,328 | [1] |
Restricted Stock Units Outstanding, Granted | 387,274 | [1] |
Restricted Stock Units Outstanding, Vested | (5,254) | [1] |
Restricted Stock Units Outstanding, Cancelled | (32,235) | [1] |
Restricted Stock Units Outstanding, End of year | 726,113 | [1] |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Beginning of year | $ / shares | $ 20.65 | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.86 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 28.72 | |
Weighted Average Grant Date Fair Value, End of year | $ / shares | $ 13.94 | |
[1] | The number of shares for 62,791 of the PSUs listed as outstanding at January 1, 2020 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, 2020 and for all of the PSUs granted in 2020 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 eligible to vest at “maximum” performance levels. Additionally, 108,957 of the PSUs listed as outstanding at January 1, 2020 represent PSUs granted in March 2018 (the “2018 PSU Awards”). During the first quarter of 2020, the Company’s financial results for the applicable performance goals were certified, with 70.4% of the “target” number of PSUs for the 2018 PSU Awards “earned” based on the Company’s performance, subject to one additional year of time-based vesting. Accordingly, the total number of PSUs granted in the 2018 PSU Awards that are eligible to vest was reduced by 32,235 shares from 108,957 shares to 76,722 shares. |
Summary of Activity Related T_2
Summary of Activity Related To Time-based Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) (Parenthetical) (Details) - Performance Stock Units (PSUs) [Member] - shares | Jan. 01, 2020 | Mar. 31, 2020 |
2015 Plan [Member] | ||
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% | |
2018 Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Actual number of PSUs granted to each recipient, eligible to vest | 108,957 | 76,722 |
Percentage of target number of PSU's eligible to vest at "maximum" performance level | 70.40% | |
Decrease in number of PSUs granted, eligible to vest | (32,235) |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||
Income Tax Expense (Benefit) | $ 52 | $ (651) |
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Disclosure [Line Items] | ||
Effective Tax Rate, Percent | (0.20%) | 7.90% |
Federal tax returns audit, tax years | 2018 | |
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) | $ 100 | $ (700) |
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Disclosure [Line Items] | ||
Federal tax returns audit, tax years | 2017 |
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, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Term loan | $ 772,000 | $ 772,000 |
Revolving credit facility | 200,000 | |
Senior notes due 2026 | 375,000 | 375,000 |
Finance lease liabilities | 11,510 | 12,463 |
Notes payable | 4,935 | 6,369 |
Long-term Debt | 1,337,596 | 1,138,871 |
Carrying Amount [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,363,445 | 1,165,832 |
Carrying Amount [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 772,000 | 772,000 |
Revolving credit facility | 200,000 | |
Senior notes due 2026 | 375,000 | 375,000 |
Carrying Amount [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 11,510 | 12,463 |
Notes payable | 4,935 | 6,369 |
Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,007,525 | 1,196,888 |
Fair Value [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 590,580 | 776,806 |
Revolving credit facility | 153,000 | |
Senior notes due 2026 | 247,500 | 401,250 |
Fair Value [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 11,510 | 12,463 |
Notes payable | $ 4,935 | $ 6,369 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Details Textual) - Interest Rate Swap [Member] - Not Designated as Accounting Hedge [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
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 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - Gaming [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | $ 78,112 | $ 82,348 |
Participation and Revenue Share Agreements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | 36,000 | 38,600 |
Participation and Revenue Share Agreements [Member] | Related Party Transaction, Revenue Share and Participation Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Gaming Expenses | $ 200 | $ 200 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 2 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Revenues | ||||
Total revenues | $ 207,157,000 | $ 239,892,000 | ||
Net income (loss) | (32,620,000) | (8,018,000) | ||
Depreciation and amortization | 31,156,000 | 27,265,000 | ||
Impairment of goodwill | 6,461,000 | |||
Acquisition and severance expenses | 2,976,000 | 1,544,000 | ||
Preopening and related expenses | [1] | 330,000 | 2,232,000 | |
Preopening expenses | 105,000 | 778,000 | ||
Asset disposals and other writedowns | 589,000 | 637,000 | ||
Share-based compensation | 2,246,000 | 4,184,000 | ||
Other, net | 357,000 | 864,000 | ||
Interest expense, net | 18,746,000 | 18,135,000 | ||
Change in fair value of derivative | 1,000 | 2,248,000 | ||
Adjusted EBITDA | 30,294,000 | 48,440,000 | ||
Income tax benefit (provision) | 52,000 | (651,000) | ||
Assets | 1,902,268,000 | $ 1,740,917,000 | ||
Gaming [Member] | ||||
Revenues | ||||
Total revenues | 127,215,000 | 143,792,000 | ||
Food and beverage [Member] | ||||
Revenues | ||||
Total revenues | 41,547,000 | 49,758,000 | ||
Rooms [Member] | ||||
Revenues | ||||
Total revenues | 25,605,000 | 31,287,000 | ||
Other [Member] | ||||
Revenues | ||||
Total revenues | 12,790,000 | 15,055,000 | ||
Casinos [Member] | ||||
Revenues | ||||
Impairment of goodwill | 6,461,000 | |||
Distributed Gaming [Member] | ||||
Revenues | ||||
Impairment of goodwill | 0 | |||
Operating Segments [Member] | Casinos [Member] | ||||
Revenues | ||||
Total revenues | 127,970,000 | 151,374,000 | ||
Net income (loss) | (2,938,000) | 22,689,000 | ||
Depreciation and amortization | 24,713,000 | 21,643,000 | ||
Impairment of goodwill | 6,461,000 | |||
Acquisition and severance expenses | 2,417,000 | 286,000 | ||
Preopening and related expenses | [1] | 225,000 | 1,654,000 | |
Asset disposals and other writedowns | 627,000 | 256,000 | ||
Share-based compensation | 11,000 | |||
Other, net | 47,000 | 11,000 | ||
Interest expense, net | 245,000 | 52,000 | ||
Adjusted EBITDA | 31,797,000 | 46,602,000 | ||
Assets | 1,175,915,000 | 1,204,574,000 | ||
Operating Segments [Member] | Casinos [Member] | Gaming [Member] | ||||
Revenues | ||||
Total revenues | 61,905,000 | 70,885,000 | ||
Operating Segments [Member] | Casinos [Member] | Food and beverage [Member] | ||||
Revenues | ||||
Total revenues | 29,805,000 | 36,442,000 | ||
Operating Segments [Member] | Casinos [Member] | Rooms [Member] | ||||
Revenues | ||||
Total revenues | 25,605,000 | 31,287,000 | ||
Operating Segments [Member] | Casinos [Member] | Other [Member] | ||||
Revenues | ||||
Total revenues | 10,655,000 | 12,760,000 | ||
Operating Segments [Member] | Distributed Gaming [Member] | ||||
Revenues | ||||
Total revenues | 78,984,000 | 88,357,000 | ||
Net income (loss) | 604,000 | 7,606,000 | ||
Depreciation and amortization | 5,865,000 | 5,329,000 | ||
Acquisition and severance expenses | 478,000 | 26,000 | ||
Preopening and related expenses | [1] | 566,000 | ||
Asset disposals and other writedowns | (38,000) | (9,000) | ||
Share-based compensation | 5,000 | |||
Other, net | 197,000 | |||
Interest expense, net | 15,000 | 16,000 | ||
Adjusted EBITDA | 7,121,000 | 13,539,000 | ||
Assets | 439,281,000 | 482,294,000 | ||
Operating Segments [Member] | Distributed Gaming [Member] | Gaming [Member] | ||||
Revenues | ||||
Total revenues | 65,310,000 | 72,907,000 | ||
Operating Segments [Member] | Distributed Gaming [Member] | Food and beverage [Member] | ||||
Revenues | ||||
Total revenues | 11,742,000 | 13,316,000 | ||
Operating Segments [Member] | Distributed Gaming [Member] | Other [Member] | ||||
Revenues | ||||
Total revenues | 1,932,000 | 2,134,000 | ||
Corporate and Other [Member] | ||||
Revenues | ||||
Total revenues | 203,000 | 161,000 | ||
Net income (loss) | (30,286,000) | (38,313,000) | ||
Depreciation and amortization | 578,000 | 293,000 | ||
Acquisition and severance expenses | 81,000 | 1,232,000 | ||
Preopening and related expenses | [1] | 105,000 | 12,000 | |
Asset disposals and other writedowns | 390,000 | |||
Share-based compensation | 2,246,000 | 4,168,000 | ||
Other, net | 113,000 | 853,000 | ||
Interest expense, net | 18,486,000 | 18,067,000 | ||
Change in fair value of derivative | 1,000 | 2,248,000 | ||
Adjusted EBITDA | (8,624,000) | (11,701,000) | ||
Income tax benefit (provision) | 52,000 | (651,000) | ||
Assets | 287,072,000 | $ 54,049,000 | ||
Corporate and Other [Member] | Other [Member] | ||||
Revenues | ||||
Total revenues | $ 203,000 | $ 161,000 | ||
[1] | Preopening and related expenses include rent, organizational costs, non-capital costs associated with the opening of tavern and casino locations, and expenses related to The Strat rebranding and the launch of the TrueRewards loyalty program. |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenues | $ 207,157,000 | $ 239,892,000 | ||
Mr. Sartini [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 0 | |||
Reimbursement expense paid | 100,000 | 200,000 | ||
Mr. Sartini [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 100,000 | |||
Executive Vice President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues | $ 300,000 | $ 200,000 | ||
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 | ||
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 | ||
Lease expiration date | Dec. 31, 2030 | |||
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] | Mr. 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 |