Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden
Entertainment” or the “Company”) today reported financial results
for the third quarter ended September 30, 2024. The Company
reported third quarter revenue of $161.2 million, net income of
$5.2 million and Adjusted EBITDA of $34.0 million. In addition, on
November 5, 2024, the Company’s Board of Directors authorized the
Company’s recurring quarterly cash dividend of $0.25 per share of
the Company’s outstanding common stock payable on January 7, 2025
to shareholders of record as of December 20, 2024. The Company’s
Board of Directors also increased the Company’s share repurchase
authorization by $100 million, creating $131.4 million of current
availability under the Company’s share repurchase program.
Blake Sartini, Chairman and Chief Executive Officer of Golden,
commented, “In the third quarter, we have maintained our commitment
to returning capital to shareholders through our regular dividend
and share buyback program despite a challenging operating
environment for our properties. We anticipate that business
conditions will improve in the fourth quarter and, with our
increased share buyback authorization currently at over $130
million, we expect to continue to use our liquidity to acquire our
own shares throughout the year.”
The Company repurchased 815,116 shares of common stock in the
third quarter, at an average price of $31.65 per share for a total
of $25.8 million. In October, after the end of the quarter, an
additional 134,613 shares were repurchased for a total of $4.2
million. Year to date, the Company has repurchased 1.94 million
shares of the Company’s common stock at an average price of $30.70
per share for a total of $59.5 million.
Consolidated Results
The Company reported third quarter of 2024 revenues of $161.2
million and Adjusted EBITDA of $34.0 million, compared to revenues
of $257.7 million and Adjusted EBITDA of $53.2 million for the
third 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. The Company reported net income of $5.2 million, or
$0.18 per fully diluted share, for the third quarter of 2024,
compared to net income of $241.2 million, or $7.83 per fully
diluted share, for the third quarter of 2023. The third quarter of
2023 results included the impact of the $305.8 million gain on the
sales of the Rocky Gap Casino Resort and the Montana distributed
gaming business recognized during the quarter.
Debt and Liquidity
As of September 30, 2024, the Company’s total principal amount
of debt outstanding was $399.0 million, consisting primarily of
$395.0 million in outstanding term loan borrowings.
As of September 30, 2024, the Company had cash and cash
equivalents of $68.6 million. 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,
November 7, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific
Time), to discuss the 2024 third quarter results. The conference
call may be accessed live over the phone by dialing (877) 407-0789
or for international callers by dialing (201) 689-8562. A replay
will be available beginning at 8:00 p.m. Eastern Time today and may
be accessed by dialing (844) 512-2921 or (412) 317-6671 for
international callers; the passcode is 13749554. The replay will be
available until November 14, 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; the
continued repurchase of shares of the Company’s common stock;
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; 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 maker 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
depreciation and amortization, non-cash lease expense, share-based
compensation expense, gain or loss on disposal of assets and
business, loss on debt extinguishment and modification, preopening
and related expenses, interest, income taxes, 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 72 gaming
taverns in Nevada, operating over 5,500 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenues
Gaming
$
75,684
$
165,177
$
240,880
$
535,619
Food and beverage
41,849
44,507
128,623
137,312
Rooms
28,938
31,417
89,760
92,912
Other
14,762
16,625
43,351
56,615
Total revenues
161,233
257,726
502,614
822,458
Expenses
Gaming
20,141
94,820
67,796
307,126
Food and beverage
34,226
33,576
102,702
101,243
Rooms
16,202
15,978
48,888
46,118
Other
4,276
5,487
11,140
17,222
Selling, general and administrative
57,056
67,727
173,130
196,856
Depreciation and amortization
22,626
22,213
67,362
67,175
Gain on disposal of assets
(256
)
(5
)
(242
)
(125
)
Gain on sale of business
—
(305,829
)
(68,944
)
(305,829
)
Preopening expenses
234
50
377
575
Total expenses (income)
154,505
(65,983
)
402,209
430,361
Operating income
6,728
323,709
100,405
392,097
Non-operating expense
Interest expense, net
(7,959
)
(15,306
)
(27,255
)
(52,345
)
Loss on debt extinguishment and
modification
—
—
(4,446
)
(405
)
Total non-operating expense,
net
(7,959
)
(15,306
)
(31,701
)
(52,750
)
(Loss) income before income tax benefit
(provision)
(1,231
)
308,403
68,704
339,347
Income tax benefit (provision)
6,398
(67,187
)
(20,951
)
(74,219
)
Net income
$
5,167
$
241,216
$
47,753
$
265,128
Weighted-average common shares
outstanding
Basic
28,153
28,827
28,557
28,662
Diluted
29,408
30,794
30,141
30,900
Net income per share
Basic
$
0.18
$
8.37
$
1.67
$
9.25
Diluted
$
0.18
$
7.83
$
1.58
$
8.58
Golden Entertainment,
Inc.
Reconciliation of Adjusted
EBITDA
(Unaudited, in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenues
Nevada Casino Resorts
$
99,547
$
105,524
$
301,652
$
308,262
Nevada Locals Casinos
35,405
37,901
112,262
118,968
Nevada Taverns
26,042
26,540
82,001
81,452
Corporate and other
239
166
680
8,963
Total Revenues - Continuing
Operations
161,233
170,131
496,595
517,645
Distributed Gaming
—
81,872
6,019
261,357
Maryland Casino Resort
—
5,723
—
43,456
Total Revenues - Divested
Operations
—
87,595
6,019
304,813
Total Revenues
$
161,233
$
257,726
$
502,614
$
822,458
Adjusted EBITDA
Nevada Casino Resorts
$
24,614
$
30,837
$
78,897
$
90,592
Nevada Locals Casinos
14,274
16,878
48,738
56,509
Nevada Taverns
5,317
7,519
20,669
24,507
Corporate and other
(10,191
)
(12,116
)
(32,590
)
(38,673
)
Total Adjusted EBITDA - Continuing
Operations
34,014
43,118
115,714
132,935
Distributed Gaming
—
8,441
484
28,175
Maryland Casino Resort
—
1,626
—
12,652
Total Adjusted EBITDA - Divested
Operations
—
10,067
484
40,827
Total Adjusted EBITDA
34,014
53,185
116,198
173,762
Adjustments
Depreciation and amortization
(22,626
)
(22,213
)
(67,362
)
(67,175
)
Non-cash lease benefit (expense)
65
10
298
(14
)
Share-based compensation
(2,969
)
(3,444
)
(8,688
)
(10,625
)
Gain on disposal of assets
256
5
242
125
Gain on sale of business
—
305,829
68,944
305,829
Loss on debt extinguishment and
modification
—
—
(4,446
)
(405
)
Preopening and related expenses (1)
(234
)
(50
)
(377
)
(575
)
Other, net
(1,778
)
(9,613
)
(8,850
)
(9,230
)
Interest expense, net
(7,959
)
(15,306
)
(27,255
)
(52,345
)
Income tax benefit (provision)
6,398
(67,187
)
(20,951
)
(74,219
)
Net income
$
5,167
$
241,216
$
47,753
$
265,128
(1)
Preopening and related expenses consist of
labor, food, utilities, training, initial licensing, rent and
organizational costs incurred in connection with the opening of
branded tavern and food and beverage and other venues within the
casino locations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107724215/en/
Investor Relations Charles
H. Protell President and Chief Financial Officer (702) 893-7777
James Adams Vice President of Corporate Finance and Treasurer
(702) 495-4470 james.adams@goldenent.com
Golden Entertainment (NASDAQ:GDEN)
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부터 11월(11) 2024 으로 12월(12) 2024
Golden Entertainment (NASDAQ:GDEN)
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부터 12월(12) 2023 으로 12월(12) 2024
