Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Golden Entertainment Reports 2023 Fourth Quarter and Full Year 2023 Results By: Golden Entertainment, Inc. via Business Wire February 29, 2024 at 16:05 PM EST Fourth quarter revenue of $230.7 million, net loss of $9.4 million and Adjusted EBITDA of $48.8 million 2023 full year revenue of $1.1 billion, net income of $255.8 million and Adjusted EBITDA of $222.5 million In January 2024 completed $213.5 million sale of the Nevada distributed gaming business; combined with non-core divestitures in 2023, generated over $600 million total proceeds Over $60 million of debt repaid in the fourth quarter; $239 million of total debt repaid in 2023 Initiated recurring quarterly cash dividend of $0.25 per share Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2023. In addition, on February 27, 2024, the Company’s Board of Directors declared a recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock, the first of which is payable on April 4, 2024 to shareholders of record as of March 18, 2024. Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “In January, we completed the sale of our Nevada distributed gaming business, completing a year-long process of divesting our non-core assets that also included the sale of our casino resort in Maryland and our Montana distributed gaming business. Following these transactions, our portfolio is comprised of Nevada casino resorts, Nevada locals casinos and Nevada’s largest branded tavern portfolio, all of which are expected to benefit from Nevada’s positive economic trends. The completion of our non-core divestitures generated significant cash proceeds, which strengthened our balance sheet, created strategic and financial flexibility, and facilitates returning capital to our shareholders.” 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 approximately $213.5 million, subject to customary working capital and other adjustments, plus purchased cash (comprised of cash and cash equivalents related to such operations at the time of closing) of approximately $37.5 million. During the fourth quarter of 2023, the Company repurchased $59.0 million in principal amount of its senior unsecured notes in open market transactions, thereby reducing the aggregate principal amount of the senior unsecured notes outstanding to $276.5 million. The Company repaid $238.6 million of its debt obligations in 2023. Consolidated Results Fourth quarter 2023 revenues were $230.7 million, compared to $279.7 million for the fourth quarter of 2022. Net loss for the fourth quarter of 2023 was $9.4 million, or a loss of $0.33 per share, primarily as a result of an asset impairment charge of $12.1 million related to the Colorado Belle Casino Resort, the operations of which remain suspended. Fourth quarter of 2022 net income was $11.1 million, or $0.35 per fully diluted share. Fourth quarter 2023 Adjusted EBITDA was $48.8 million, compared to Adjusted EBITDA of $63.7 million for the fourth quarter of 2022. The year-over-year declines in revenues and Adjusted EBITDA were primarily due to the exclusion in the 2023 fourth quarter of results for the Company’s Rocky Gap Casino Resort and distributed gaming operations in Montana that were sold on July 25, 2023 and September 13, 2023, respectively. For both the full year 2023 and 2022, revenues were $1.1 billion. Net income for the full year 2023 was $255.8 million, or $8.31 per fully diluted share, compared to net income of $82.3 million, or $2.61 per fully diluted share, for the full year 2022. Net income and diluted earnings per share for the full year 2023 include the benefit of the $303.2 million gain on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana. During 2023, the Company incurred transaction costs of $8.3 million and $0.8 million on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana, respectively, and $0.4 million in transaction costs related to the sale of the Nevada distributed gaming operations sold subsequent to the fiscal year end. Full year 2023 Adjusted EBITDA of $222.5 million declined from Adjusted EBITDA of $267.1 million for the full year 2022 primarily due to the exclusion of the results for the businesses sold in 2023. Debt and Liquidity As of December 31, 2023, the Company’s total principal amount of debt outstanding was $677.7 million, consisting primarily of $398.0 million in outstanding term loan borrowings and $276.5 million of senior unsecured notes. As of December 31, 2023, the Company had cash and cash equivalents of $197.6 million, which excludes the proceeds from the sale of the Company’s distributed gaming operations in Nevada that closed on January 10, 2024. 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, February 29, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2023 fourth quarter and full year results. The conference call may be accessed live over the phone by dialing (833) 816-1405 or (412) 317-0498 for international callers. 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 10185511. The replay will be available until March 7, 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 level of the Company’s indebtedness and its 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 69 gaming taverns in Nevada, operating over 5,600 slots, 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Gaming $ 138,682 $ 185,020 $ 674,301 $ 760,906 Food and beverage 45,096 45,421 182,408 175,363 Rooms 31,737 32,639 124,649 122,324 Other 15,176 16,630 71,791 63,126 Total revenues 230,691 279,710 1,053,149 1,121,719 Expenses Gaming 72,803 105,553 379,929 428,984 Food and beverage 34,130 34,770 135,373 131,863 Rooms 16,179 15,787 62,297 56,414 Other operating 5,193 6,036 22,415 19,889 Selling, general and administrative 58,709 57,818 255,565 235,404 Depreciation and amortization 21,758 24,229 88,933 100,123 (Gain) loss on disposal of assets (103 ) (1 ) (228 ) 934 Loss (gain) on sale of businesses 2,650 — (303,179 ) — Preopening expenses 185 100 760 161 Impairment of assets 12,072 — 12,072 — Total expenses 223,576 244,292 653,937 973,772 Operating income 7,115 35,418 399,212 147,947 Non-operating expense Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Total non-operating expense, net (14,499 ) (18,103 ) (67,249 ) (65,080 ) (Loss) income before income tax provision (7,384 ) 17,315 331,963 82,867 Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 Weighted-average common shares outstanding Basic 28,627 28,507 28,653 28,662 Diluted 28,627 31,230 30,781 31,514 Net (loss) income per share Basic $ (0.33 ) $ 0.39 $ 8.93 $ 2.87 Diluted $ (0.33 ) $ 0.35 $ 8.31 $ 2.61 Golden Entertainment, Inc. Reconciliation of Adjusted EBITDA (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Nevada Casino Resorts (1) $ 104,796 $ 104,161 $ 413,058 $ 406,950 Nevada Locals Casinos (2) 38,467 40,105 157,435 157,514 Maryland Casino Resort (3) — 17,948 43,456 78,010 Nevada Taverns (4) 27,763 26,884 109,215 109,965 Distributed Gaming (5) 59,323 90,316 320,680 365,472 Corporate and other 342 296 9,305 3,808 Total Revenues $ 230,691 $ 279,710 $ 1,053,149 $ 1,121,719 Adjusted EBITDA Nevada Casino Resorts (1) $ 29,664 $ 32,515 $ 120,256 $ 135,104 Nevada Locals Casinos (2) 17,337 19,197 73,846 75,848 Maryland Casino Resort (3) — 5,123 12,652 25,383 Nevada Taverns (4) 8,175 7,872 32,682 37,610 Distributed Gaming (5) 6,370 10,667 34,545 44,021 Corporate and other (12,786 ) (11,690 ) (51,459 ) (50,886 ) Total Adjusted EBITDA $ 48,760 $ 63,684 $ 222,522 $ 267,080 Adjustments Depreciation and amortization (21,758 ) (24,229 ) (88,933 ) (100,123 ) Non-cash lease expense 29 (52 ) 15 (165 ) Share-based compensation (2,851 ) (3,164 ) (13,476 ) (13,433 ) Gain (loss) on disposal of assets 103 1 228 (934 ) (Loss) gain on sale of businesses (2,650 ) — 303,179 — Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Preopening and related expenses (6) (185 ) (100 ) (760 ) (161 ) Severance expenses (21 ) (83 ) (149 ) (378 ) Impairment of assets (12,072 ) — (12,072 ) — Other, net (2,240 ) (639 ) (11,342 ) (3,939 ) Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 (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 Rocky Gap Casino Resort, which was sold on July 25, 2023. (4) Comprised of the operations of the Company’s 69 branded tavern locations. (5) Comprised of distributed gaming operations in Nevada and Montana. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana. Subsequent to the fiscal year end, the Company completed the sale of its distributed gaming operations in Nevada on January 10, 2024. (6) 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 casino locations as well as food and beverage and other venues within the Company’s casino locations. View source version on businesswire.com: https://www.businesswire.com/news/home/20240229128609/en/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Golden Entertainment Reports 2023 Fourth Quarter and Full Year 2023 Results By: Golden Entertainment, Inc. via Business Wire February 29, 2024 at 16:05 PM EST Fourth quarter revenue of $230.7 million, net loss of $9.4 million and Adjusted EBITDA of $48.8 million 2023 full year revenue of $1.1 billion, net income of $255.8 million and Adjusted EBITDA of $222.5 million In January 2024 completed $213.5 million sale of the Nevada distributed gaming business; combined with non-core divestitures in 2023, generated over $600 million total proceeds Over $60 million of debt repaid in the fourth quarter; $239 million of total debt repaid in 2023 Initiated recurring quarterly cash dividend of $0.25 per share Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2023. In addition, on February 27, 2024, the Company’s Board of Directors declared a recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock, the first of which is payable on April 4, 2024 to shareholders of record as of March 18, 2024. Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “In January, we completed the sale of our Nevada distributed gaming business, completing a year-long process of divesting our non-core assets that also included the sale of our casino resort in Maryland and our Montana distributed gaming business. Following these transactions, our portfolio is comprised of Nevada casino resorts, Nevada locals casinos and Nevada’s largest branded tavern portfolio, all of which are expected to benefit from Nevada’s positive economic trends. The completion of our non-core divestitures generated significant cash proceeds, which strengthened our balance sheet, created strategic and financial flexibility, and facilitates returning capital to our shareholders.” 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 approximately $213.5 million, subject to customary working capital and other adjustments, plus purchased cash (comprised of cash and cash equivalents related to such operations at the time of closing) of approximately $37.5 million. During the fourth quarter of 2023, the Company repurchased $59.0 million in principal amount of its senior unsecured notes in open market transactions, thereby reducing the aggregate principal amount of the senior unsecured notes outstanding to $276.5 million. The Company repaid $238.6 million of its debt obligations in 2023. Consolidated Results Fourth quarter 2023 revenues were $230.7 million, compared to $279.7 million for the fourth quarter of 2022. Net loss for the fourth quarter of 2023 was $9.4 million, or a loss of $0.33 per share, primarily as a result of an asset impairment charge of $12.1 million related to the Colorado Belle Casino Resort, the operations of which remain suspended. Fourth quarter of 2022 net income was $11.1 million, or $0.35 per fully diluted share. Fourth quarter 2023 Adjusted EBITDA was $48.8 million, compared to Adjusted EBITDA of $63.7 million for the fourth quarter of 2022. The year-over-year declines in revenues and Adjusted EBITDA were primarily due to the exclusion in the 2023 fourth quarter of results for the Company’s Rocky Gap Casino Resort and distributed gaming operations in Montana that were sold on July 25, 2023 and September 13, 2023, respectively. For both the full year 2023 and 2022, revenues were $1.1 billion. Net income for the full year 2023 was $255.8 million, or $8.31 per fully diluted share, compared to net income of $82.3 million, or $2.61 per fully diluted share, for the full year 2022. Net income and diluted earnings per share for the full year 2023 include the benefit of the $303.2 million gain on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana. During 2023, the Company incurred transaction costs of $8.3 million and $0.8 million on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana, respectively, and $0.4 million in transaction costs related to the sale of the Nevada distributed gaming operations sold subsequent to the fiscal year end. Full year 2023 Adjusted EBITDA of $222.5 million declined from Adjusted EBITDA of $267.1 million for the full year 2022 primarily due to the exclusion of the results for the businesses sold in 2023. Debt and Liquidity As of December 31, 2023, the Company’s total principal amount of debt outstanding was $677.7 million, consisting primarily of $398.0 million in outstanding term loan borrowings and $276.5 million of senior unsecured notes. As of December 31, 2023, the Company had cash and cash equivalents of $197.6 million, which excludes the proceeds from the sale of the Company’s distributed gaming operations in Nevada that closed on January 10, 2024. 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, February 29, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2023 fourth quarter and full year results. The conference call may be accessed live over the phone by dialing (833) 816-1405 or (412) 317-0498 for international callers. 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 10185511. The replay will be available until March 7, 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 level of the Company’s indebtedness and its 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 69 gaming taverns in Nevada, operating over 5,600 slots, 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Gaming $ 138,682 $ 185,020 $ 674,301 $ 760,906 Food and beverage 45,096 45,421 182,408 175,363 Rooms 31,737 32,639 124,649 122,324 Other 15,176 16,630 71,791 63,126 Total revenues 230,691 279,710 1,053,149 1,121,719 Expenses Gaming 72,803 105,553 379,929 428,984 Food and beverage 34,130 34,770 135,373 131,863 Rooms 16,179 15,787 62,297 56,414 Other operating 5,193 6,036 22,415 19,889 Selling, general and administrative 58,709 57,818 255,565 235,404 Depreciation and amortization 21,758 24,229 88,933 100,123 (Gain) loss on disposal of assets (103 ) (1 ) (228 ) 934 Loss (gain) on sale of businesses 2,650 — (303,179 ) — Preopening expenses 185 100 760 161 Impairment of assets 12,072 — 12,072 — Total expenses 223,576 244,292 653,937 973,772 Operating income 7,115 35,418 399,212 147,947 Non-operating expense Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Total non-operating expense, net (14,499 ) (18,103 ) (67,249 ) (65,080 ) (Loss) income before income tax provision (7,384 ) 17,315 331,963 82,867 Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 Weighted-average common shares outstanding Basic 28,627 28,507 28,653 28,662 Diluted 28,627 31,230 30,781 31,514 Net (loss) income per share Basic $ (0.33 ) $ 0.39 $ 8.93 $ 2.87 Diluted $ (0.33 ) $ 0.35 $ 8.31 $ 2.61 Golden Entertainment, Inc. Reconciliation of Adjusted EBITDA (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Nevada Casino Resorts (1) $ 104,796 $ 104,161 $ 413,058 $ 406,950 Nevada Locals Casinos (2) 38,467 40,105 157,435 157,514 Maryland Casino Resort (3) — 17,948 43,456 78,010 Nevada Taverns (4) 27,763 26,884 109,215 109,965 Distributed Gaming (5) 59,323 90,316 320,680 365,472 Corporate and other 342 296 9,305 3,808 Total Revenues $ 230,691 $ 279,710 $ 1,053,149 $ 1,121,719 Adjusted EBITDA Nevada Casino Resorts (1) $ 29,664 $ 32,515 $ 120,256 $ 135,104 Nevada Locals Casinos (2) 17,337 19,197 73,846 75,848 Maryland Casino Resort (3) — 5,123 12,652 25,383 Nevada Taverns (4) 8,175 7,872 32,682 37,610 Distributed Gaming (5) 6,370 10,667 34,545 44,021 Corporate and other (12,786 ) (11,690 ) (51,459 ) (50,886 ) Total Adjusted EBITDA $ 48,760 $ 63,684 $ 222,522 $ 267,080 Adjustments Depreciation and amortization (21,758 ) (24,229 ) (88,933 ) (100,123 ) Non-cash lease expense 29 (52 ) 15 (165 ) Share-based compensation (2,851 ) (3,164 ) (13,476 ) (13,433 ) Gain (loss) on disposal of assets 103 1 228 (934 ) (Loss) gain on sale of businesses (2,650 ) — 303,179 — Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Preopening and related expenses (6) (185 ) (100 ) (760 ) (161 ) Severance expenses (21 ) (83 ) (149 ) (378 ) Impairment of assets (12,072 ) — (12,072 ) — Other, net (2,240 ) (639 ) (11,342 ) (3,939 ) Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 (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 Rocky Gap Casino Resort, which was sold on July 25, 2023. (4) Comprised of the operations of the Company’s 69 branded tavern locations. (5) Comprised of distributed gaming operations in Nevada and Montana. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana. Subsequent to the fiscal year end, the Company completed the sale of its distributed gaming operations in Nevada on January 10, 2024. (6) 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 casino locations as well as food and beverage and other venues within the Company’s casino locations. View source version on businesswire.com: https://www.businesswire.com/news/home/20240229128609/en/Contacts 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
Fourth quarter revenue of $230.7 million, net loss of $9.4 million and Adjusted EBITDA of $48.8 million 2023 full year revenue of $1.1 billion, net income of $255.8 million and Adjusted EBITDA of $222.5 million In January 2024 completed $213.5 million sale of the Nevada distributed gaming business; combined with non-core divestitures in 2023, generated over $600 million total proceeds Over $60 million of debt repaid in the fourth quarter; $239 million of total debt repaid in 2023 Initiated recurring quarterly cash dividend of $0.25 per share
Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2023. In addition, on February 27, 2024, the Company’s Board of Directors declared a recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock, the first of which is payable on April 4, 2024 to shareholders of record as of March 18, 2024. Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “In January, we completed the sale of our Nevada distributed gaming business, completing a year-long process of divesting our non-core assets that also included the sale of our casino resort in Maryland and our Montana distributed gaming business. Following these transactions, our portfolio is comprised of Nevada casino resorts, Nevada locals casinos and Nevada’s largest branded tavern portfolio, all of which are expected to benefit from Nevada’s positive economic trends. The completion of our non-core divestitures generated significant cash proceeds, which strengthened our balance sheet, created strategic and financial flexibility, and facilitates returning capital to our shareholders.” 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 approximately $213.5 million, subject to customary working capital and other adjustments, plus purchased cash (comprised of cash and cash equivalents related to such operations at the time of closing) of approximately $37.5 million. During the fourth quarter of 2023, the Company repurchased $59.0 million in principal amount of its senior unsecured notes in open market transactions, thereby reducing the aggregate principal amount of the senior unsecured notes outstanding to $276.5 million. The Company repaid $238.6 million of its debt obligations in 2023. Consolidated Results Fourth quarter 2023 revenues were $230.7 million, compared to $279.7 million for the fourth quarter of 2022. Net loss for the fourth quarter of 2023 was $9.4 million, or a loss of $0.33 per share, primarily as a result of an asset impairment charge of $12.1 million related to the Colorado Belle Casino Resort, the operations of which remain suspended. Fourth quarter of 2022 net income was $11.1 million, or $0.35 per fully diluted share. Fourth quarter 2023 Adjusted EBITDA was $48.8 million, compared to Adjusted EBITDA of $63.7 million for the fourth quarter of 2022. The year-over-year declines in revenues and Adjusted EBITDA were primarily due to the exclusion in the 2023 fourth quarter of results for the Company’s Rocky Gap Casino Resort and distributed gaming operations in Montana that were sold on July 25, 2023 and September 13, 2023, respectively. For both the full year 2023 and 2022, revenues were $1.1 billion. Net income for the full year 2023 was $255.8 million, or $8.31 per fully diluted share, compared to net income of $82.3 million, or $2.61 per fully diluted share, for the full year 2022. Net income and diluted earnings per share for the full year 2023 include the benefit of the $303.2 million gain on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana. During 2023, the Company incurred transaction costs of $8.3 million and $0.8 million on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana, respectively, and $0.4 million in transaction costs related to the sale of the Nevada distributed gaming operations sold subsequent to the fiscal year end. Full year 2023 Adjusted EBITDA of $222.5 million declined from Adjusted EBITDA of $267.1 million for the full year 2022 primarily due to the exclusion of the results for the businesses sold in 2023. Debt and Liquidity As of December 31, 2023, the Company’s total principal amount of debt outstanding was $677.7 million, consisting primarily of $398.0 million in outstanding term loan borrowings and $276.5 million of senior unsecured notes. As of December 31, 2023, the Company had cash and cash equivalents of $197.6 million, which excludes the proceeds from the sale of the Company’s distributed gaming operations in Nevada that closed on January 10, 2024. 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, February 29, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2023 fourth quarter and full year results. The conference call may be accessed live over the phone by dialing (833) 816-1405 or (412) 317-0498 for international callers. 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 10185511. The replay will be available until March 7, 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 level of the Company’s indebtedness and its 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 69 gaming taverns in Nevada, operating over 5,600 slots, 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Gaming $ 138,682 $ 185,020 $ 674,301 $ 760,906 Food and beverage 45,096 45,421 182,408 175,363 Rooms 31,737 32,639 124,649 122,324 Other 15,176 16,630 71,791 63,126 Total revenues 230,691 279,710 1,053,149 1,121,719 Expenses Gaming 72,803 105,553 379,929 428,984 Food and beverage 34,130 34,770 135,373 131,863 Rooms 16,179 15,787 62,297 56,414 Other operating 5,193 6,036 22,415 19,889 Selling, general and administrative 58,709 57,818 255,565 235,404 Depreciation and amortization 21,758 24,229 88,933 100,123 (Gain) loss on disposal of assets (103 ) (1 ) (228 ) 934 Loss (gain) on sale of businesses 2,650 — (303,179 ) — Preopening expenses 185 100 760 161 Impairment of assets 12,072 — 12,072 — Total expenses 223,576 244,292 653,937 973,772 Operating income 7,115 35,418 399,212 147,947 Non-operating expense Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Total non-operating expense, net (14,499 ) (18,103 ) (67,249 ) (65,080 ) (Loss) income before income tax provision (7,384 ) 17,315 331,963 82,867 Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 Weighted-average common shares outstanding Basic 28,627 28,507 28,653 28,662 Diluted 28,627 31,230 30,781 31,514 Net (loss) income per share Basic $ (0.33 ) $ 0.39 $ 8.93 $ 2.87 Diluted $ (0.33 ) $ 0.35 $ 8.31 $ 2.61 Golden Entertainment, Inc. Reconciliation of Adjusted EBITDA (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Nevada Casino Resorts (1) $ 104,796 $ 104,161 $ 413,058 $ 406,950 Nevada Locals Casinos (2) 38,467 40,105 157,435 157,514 Maryland Casino Resort (3) — 17,948 43,456 78,010 Nevada Taverns (4) 27,763 26,884 109,215 109,965 Distributed Gaming (5) 59,323 90,316 320,680 365,472 Corporate and other 342 296 9,305 3,808 Total Revenues $ 230,691 $ 279,710 $ 1,053,149 $ 1,121,719 Adjusted EBITDA Nevada Casino Resorts (1) $ 29,664 $ 32,515 $ 120,256 $ 135,104 Nevada Locals Casinos (2) 17,337 19,197 73,846 75,848 Maryland Casino Resort (3) — 5,123 12,652 25,383 Nevada Taverns (4) 8,175 7,872 32,682 37,610 Distributed Gaming (5) 6,370 10,667 34,545 44,021 Corporate and other (12,786 ) (11,690 ) (51,459 ) (50,886 ) Total Adjusted EBITDA $ 48,760 $ 63,684 $ 222,522 $ 267,080 Adjustments Depreciation and amortization (21,758 ) (24,229 ) (88,933 ) (100,123 ) Non-cash lease expense 29 (52 ) 15 (165 ) Share-based compensation (2,851 ) (3,164 ) (13,476 ) (13,433 ) Gain (loss) on disposal of assets 103 1 228 (934 ) (Loss) gain on sale of businesses (2,650 ) — 303,179 — Loss on debt extinguishment and modification (1,329 ) (178 ) (1,734 ) (1,590 ) Preopening and related expenses (6) (185 ) (100 ) (760 ) (161 ) Severance expenses (21 ) (83 ) (149 ) (378 ) Impairment of assets (12,072 ) — (12,072 ) — Other, net (2,240 ) (639 ) (11,342 ) (3,939 ) Interest expense, net (13,170 ) (17,925 ) (65,515 ) (63,490 ) Income tax provision (1,988 ) (6,258 ) (76,207 ) (521 ) Net (loss) income $ (9,372 ) $ 11,057 $ 255,756 $ 82,346 (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 Rocky Gap Casino Resort, which was sold on July 25, 2023. (4) Comprised of the operations of the Company’s 69 branded tavern locations. (5) Comprised of distributed gaming operations in Nevada and Montana. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana. Subsequent to the fiscal year end, the Company completed the sale of its distributed gaming operations in Nevada on January 10, 2024. (6) 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 casino locations as well as food and beverage and other venues within the Company’s casino locations. 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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