LAS VEGAS, May 8, 2024 (BUSINESS WIRE) --
Golden Entertainment, Inc. (NASDAQ: GDEN) ("Golden Entertainment" or the "Company") today reported financial results for the first quarter ended March 31, 2024. In the quarter, the Company reported first quarter revenue of $174.0 million, net income of $42.0 million and Adjusted EBITDA of $41.0 million. In addition, on May 2, 2024, the Company's Board of Directors declared the Company's recurring quarterly cash dividend of $0.25 per share of the Company's outstanding common stock, which is payable on July 2, 2024 to shareholders of record as of June 14, 2024.
Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, "We started 2024 by completing the sale of our non-core assets and simplifying our capital structure. In January, we completed the sale of our Nevada distributed gaming operations and in April used those proceeds to fully repay our outstanding bonds. As a result, we now have a Nevada portfolio of eight casinos with owned real estate and 71 gaming taverns with our operations focused in markets where we see long-term drivers of future growth. In addition, with our debt reduced significantly, our low leverage provides us with the flexibility to invest in our own assets, return capital to shareholders and pursue potential strategic opportunities."
On January 10, 2024, the Company completed the previously disclosed sale of its distributed gaming operations in Nevada to an affiliate of J&J Ventures Gaming, LLC for cash consideration of $213.5 million plus $37.5 million of purchased cash, subject to customary working capital and other adjustments.
On April 15, 2024, the Company redeemed and repaid in full all of its senior unsecured notes in the amount of $287.0 million, consisting of $276.5 million in principal and $10.5 million in accrued and unpaid interest. The Company also paid its first quarterly dividend in the amount of $7.2 million on April 4, 2024.
Consolidated Results
The Company reported first quarter of 2024 revenues of $174.0 million and Adjusted EBITDA of $41.0 million as compared to revenues of $278.1 million and Adjusted EBITDA of $62.2 million for the first quarter of 2023. The declines in revenues and Adjusted EBITDA over the prior year period were primarily related to the exclusion of the results for the Company's Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada that were sold on July 25, 2023, September 13, 2023 and January 10, 2024, respectively. Net income for the first quarter of 2024 was $42.0 million, or $1.37 per fully diluted share, as compared to $11.6 million, or $0.38 per fully diluted share, for the first quarter of 2023. Net income and diluted earnings per share for the first quarter of 2024 include the benefit of the $69.7 million gain on the sale of distributed gaming operations in Nevada completed during the quarter. The Company incurred $2.0 million in transaction costs for the sale of the distributed gaming operations in Nevada during the first quarter of 2024.
Debt and Liquidity
As of March 31, 2024, the Company's total principal amount of debt outstanding was $678.7 million, consisting primarily of $397.0 million in outstanding term loan borrowings and $276.5 million of senior unsecured notes. On April 15, 2024, the Company redeemed and repaid in full all of its senior unsecured notes, thereby reducing its total principal amount of debt outstanding to $402.2 million.
As of March 31, 2024, the Company had cash and cash equivalents of $404.3 million, which included the $287.0 million of cash used to fully redeem the outstanding senior unsecured notes plus accrued interest. There continues to be no outstanding borrowings under the Company's $240 million revolving credit facility.
Investor Conference Call and Webcast
The Company will host a webcast and conference call today, May 8, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2024 first quarter results. The conference call may be accessed live over the phone by dialing (888) 886-7786 or for international callers by dialing (416) 764-8658. A replay will be available beginning at 7:00 p.m. Eastern Time today and may be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the passcode is 38689609. The replay will be available until May 15, 2024. The call will also be webcast live through the "Investors" section of the Company's website, www.goldenent.com. A replay of the audio webcast will also be archived on the Company's website, www.goldenent.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the Company's future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "potential," "seek," "should," "think," "will," "would" and similar expressions, or they may use future dates. In addition, forward-looking statements in this press release include, without limitation statements regarding: the Company's strategies, objectives, business opportunities and plans; anticipated future growth and trends in the Company's business or key markets; the payment of recurring quarterly cash dividends; projections of future financial condition, operating results or other financial items; and other characterizations of future events or circumstances as well as other statements that are not statements of historical fact. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause the actual results to differ materially include: changes in national, regional and local economic and market conditions; legislative and regulatory matters (including the cost of compliance or failure to comply with applicable laws and regulations); increases in gaming taxes and fees in the jurisdictions in which the Company operates; litigation; increased competition; reliance on key personnel (including our Chief Executive Officer, President and Chief Financial Officer, and Chief Operating Officer); the Company's ability to comply with covenants in its debt instruments; terrorist incidents; natural disasters; severe weather conditions (including weather or road conditions that limit access to the Company's properties); the effects of environmental and structural building conditions; the effects of disruptions to the Company's information technology and other systems and infrastructure; factors affecting the gaming, entertainment and hospitality industries generally; and other risks and uncertainties discussed in the Company's filings with the SEC, including the "Risk Factors" sections of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements presented in accordance with United States generally accepted accounting principles ("GAAP"), the Company uses Adjusted EBITDA because it is the primary metric used by its chief operating decision makers and investors in measuring both the Company's past and future expectations of performance. Adjusted EBITDA provides useful information to the users of the Company's financial statements by excluding specific expenses and gains that the Company believes are not indicative of its core operating results. Further, the Company's annual performance plan used to determine compensation for its executive officers and employees is tied to the Adjusted EBITDA metric. It is also a measure of operating performance widely used in the gaming industry.
The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. In addition, other companies in gaming industry may calculate Adjusted EBITDA differently than the Company does.
The Company defines "Adjusted EBITDA" as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of assets, severance expenses, preopening and related expenses, gain or loss on disposal of assets and businesses, share-based compensation expenses, non-cash lease expense, and other non-cash charges that are deemed to be not indicative of the Company's core operating results, calculated before corporate overhead (which is not allocated to each reportable segment).
About Golden Entertainment
Golden Entertainment owns and operates a diversified entertainment platform, consisting of a portfolio of gaming and hospitality assets that focus on casino and branded tavern operations. Golden Entertainment owns eight casinos and 71 gaming taverns in Nevada, operating nearly 5,700 slots, nearly 100 table games, and over 6,000 hotel rooms. For more information, visit www.goldenent.com.
Golden Entertainment, Inc.
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended March 31,
-------------------------------------------------------------------------------------------------------------------------
2024 2023
----------------------------------------------- ------------------------------------------------------
Revenues
$ 86,949 $ 188,087
Gaming
43,661 46,271
Food and beverage
29,400 30,577
Rooms
14,037 13,116
Other
-------------------- ------- -------------------- -------------------- -------------- --------------------
174,047 278,051
Total revenues
-------------------- ------- -------------------- -------------------- -------------- --------------------
Expenses
26,891 106,926
Gaming
34,176 34,022
Food and beverage
16,234 14,781
Rooms
4,080 3,830
Other operating
59,987 62,036
Selling, general and administrative
22,120 23,508
Depreciation and amortization
14 (86 )
Loss (gain) on disposal of assets
(69,736 ) --
Gain on sale of business
139 384
Preopening expenses
-------------------- ------- -------------------- -------------------- -------------- --------------------
93,905 245,401
Total expenses
-------------------- ------- -------------------- -------------------- -------------- --------------------
Operating income 80,142 32,650
-------------------- ------- -------------------- -------------------- -------------- --------------------
Non-operating expense
(10,686 ) (18,236 )
Interest expense, net
-------------------- ------- -------------------- -------------------- -------------- --------------------
(10,686 ) (18,236 )
Total non-operating expense, net
-------------------- ------- -------------------- -------------------- -------------- --------------------
Income before income tax provision 69,456 14,414
(27,493 ) (2,784 )
Income tax provision
-------------------- ------- -------------------- -------------------- -------------- --------------------
Net income $ 41,963 $ 11,630
==================== ======= ==================== ==================== ============== ====================
Weighted-average common shares outstanding
28,724 28,308
Basic
-------------------- ------- -------------------- -------------------- -------------- --------------------
30,679 30,904
Diluted
==================== ======= ==================== ==================== ============== ====================
Net income per share
$ 1.46 $ 0.41
Basic
==================== ======= ==================== ==================== ============== ====================
Golden Entertainment, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
------------------------------------------------------ ------------------------------------------------------
Revenues
$ 101,012 $ 100,176
Nevada Casino Resorts (1)
38,991 41,238
Nevada Locals Casinos (2)
27,807 27,593
Nevada Taverns (3)
218 515
Corporate and other
-------------------- -------------- -------------------- -------------------- -------------- --------------------
168,028 169,522
Total Revenues - Continuing Operations
-- 18,128
Maryland Casino Resort (4)
6,019 90,401
Distributed Gaming (5)
-------------------- -------------- -------------------- -------------------- -------------- --------------------
6,019 108,529
Total Revenues - Divested Operations
-------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 174,047 $ 278,051
Total Revenues
==================== ============== ==================== ==================== ============== ====================
Adjusted EBITDA
$ 26,891 $ 31,711
Nevada Casino Resorts (1)
17,536 20,160
Nevada Locals Casinos (2)
7,561 8,538
Nevada Taverns (3)
(11,480 ) (13,154 )
Corporate and other
-------------------- -------------- -------------------- -------------------- -------------- --------------------
40,508 47,255
Total Adjusted EBITDA - Continuing Operations
-- 5,128
Maryland Casino Resort (4)
484 9,784
Distributed Gaming (5)
-------------------- -------------- -------------------- -------------------- -------------- --------------------
484 14,912
Total Adjusted EBITDA - Divested Operations
-------------------- -------------- -------------------- -------------------- -------------- --------------------
40,992 62,167
Total Adjusted EBITDA
Adjustments
(22,120 ) (23,508 )
Depreciation and amortization
85 (33 )
Non-cash lease expense
(3,269 ) (3,893 )
Share-based compensation
(14 ) 86
(Loss) gain on disposal of assets
69,736 --
Gain on sale of business
(139 ) (384 )
Preopening and related expenses (6)
(5,129 ) (1,785 )
Other, net
(10,686 ) (18,236 )
Interest expense, net
(27,493 ) (2,784 )
Income tax provision
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) Comprised of The STRAT Hotel, Casino & Tower, Aquarius Casino Resort and Edgewater Casino Resort.
(2) Comprised of Arizona Charlie's Boulder, Arizona Charlie's Decatur, Gold Town Casino, Lakeside Casino & RV Park and Pahrump Nugget Hotel Casino.
(3) Comprised of the operations of the Company's branded tavern locations.
(4) Comprised of the operations of the Rocky Gap Casino Resort, which was sold on July 25, 2023.
(5) Comprised of distributed gaming operations in Montana (for the three months ended March 31, 2023 only) and Nevada. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana. On January 10, 2024, the Company completed the sale of its distributed gaming operations in Nevada.
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SOURCE: Golden Entertainment, Inc.
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Golden Entertainment, Inc.
Charles H. Protell
President and Chief Financial Officer
(702) 893-7777
Investor Relations
Richard Land
JCIR
(212) 835-8500 or gden@jcir.com
COMTEX_452079781/1006/2024-05-08T16:05:24
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