Golden Entertainment Reports 2021 Fourth Quarter Results
Golden Entertainment (NASDAQ: GDEN) reported strong fourth quarter 2021 results with revenues of $282.0 million, a 37% year-over-year increase, and net income of $19.1 million. Annual revenue reached $1.1 billion, marking a 58% growth from 2020. Adjusted EBITDA for the quarter was $67.8 million, up 72% year-over-year, while annual Adjusted EBITDA rose to $291.7 million. The company repaid $25 million in loans and bought back $10.6 million in stock. Key operating segments experienced growth, with net income per share rising to $0.59.
- Fourth quarter revenue increased to $282.0 million, up 37% from $205.6 million in Q4 2020.
- Record annual revenue of $1.1 billion, a 58% increase compared to $694.2 million in 2020.
- Net income of $19.1 million for Q4 2021, compared to a net loss of $18.5 million in Q4 2020.
- Adjusted EBITDA for Q4 was $67.8 million, a 72% increase from $39.4 million in Q4 2020.
- Successful repayment of $25 million in term loan borrowings during Q4 2021.
- Total principal debt outstanding remains high at approximately $1 billion, including $650 million in term loans.
-
Fourth quarter revenue of
$282.0 million $19.1 million $67.8 million -
Record annual revenue of
$1.1 billion $161.8 million $291.7 million - Quarterly and annual financial performance for all operating segments exceeded prior year
-
Repaid
$25.0 million $10.6 million
Consolidated Results
The Company’s 2021 fourth quarter revenues of
Full year 2021 revenues of
During the 2021 fourth quarter, the Company updated its segment reporting and now presents results of its operations through four reportable segments:
Distributed Gaming: comprised of all of the Company’s distributed gaming operations in
Revenues for
Full year 2021 revenues for
Revenues for
Full year 2021 revenues for
Revenues for
Full year 2021 revenues for
Distributed Gaming
Revenues for Distributed Gaming were
Full year 2021 revenues for Distributed Gaming were
Debt and Liquidity
As of
Investor Conference Call and Webcast
The Company will host a webcast and conference call today,
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 and business opportunities; anticipated future growth and trends in the Company’s business or key markets; projections of future financial condition, operating results, income, capital expenditures, costs or other financial items, including anticipated future cash generation and resulting ability to continue to reduce leverage and to return capital to shareholders; proposed refinancing of indebtedness; 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: the uncertainty of the extent, duration and effects of the COVID-19 pandemic and the response of governments; 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; the Company’s ability to realize the anticipated cost savings, synergies and other benefits of its casino and other acquisitions; litigation; increased competition; the Company’s ability to renew its distributed gaming contracts; 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
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements presented in accordance with
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 goodwill and intangible assets, acquisition and severance expenses, preopening and related expenses, gain or loss on disposal of assets, share-based compensation expenses, change in non-cash lease expense, change in fair value of derivative, and other non-cash charges that are deemed to be not indicative of our core operating results, calculated before corporate overhead (which is not allocated to each reportable segment).
About
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Gaming |
$ |
191,183 |
|
|
$ |
147,340 |
|
|
$ |
766,307 |
|
|
$ |
476,753 |
|
Food and beverage |
|
44,802 |
|
|
|
31,681 |
|
|
|
167,815 |
|
|
|
112,081 |
|
Rooms |
|
29,589 |
|
|
|
17,314 |
|
|
|
109,802 |
|
|
|
71,411 |
|
Other |
|
16,384 |
|
|
|
9,293 |
|
|
|
52,619 |
|
|
|
33,910 |
|
Total revenues |
|
281,958 |
|
|
|
205,628 |
|
|
|
1,096,543 |
|
|
|
694,155 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Gaming |
|
106,719 |
|
|
|
85,570 |
|
|
|
416,197 |
|
|
|
275,041 |
|
Food and beverage |
|
33,285 |
|
|
|
24,922 |
|
|
|
118,541 |
|
|
|
92,202 |
|
Rooms |
|
13,419 |
|
|
|
10,283 |
|
|
|
48,632 |
|
|
|
39,935 |
|
Other operating |
|
6,538 |
|
|
|
2,510 |
|
|
|
16,968 |
|
|
|
11,789 |
|
Selling, general and administrative |
|
60,634 |
|
|
|
47,465 |
|
|
|
221,967 |
|
|
|
183,122 |
|
Depreciation and amortization |
|
26,350 |
|
|
|
29,793 |
|
|
|
106,692 |
|
|
|
124,430 |
|
Loss (gain) on disposal of assets |
|
513 |
|
|
|
(14 |
) |
|
|
1,260 |
|
|
|
803 |
|
Preopening expenses |
|
14 |
|
|
|
121 |
|
|
|
246 |
|
|
|
308 |
|
Impairment of goodwill and intangible assets |
|
— |
|
|
|
6,092 |
|
|
|
— |
|
|
|
33,964 |
|
Total expenses |
|
247,472 |
|
|
|
206,742 |
|
|
|
930,503 |
|
|
|
761,594 |
|
Operating income (loss) |
|
34,486 |
|
|
|
(1,114 |
) |
|
|
166,040 |
|
|
|
(67,439 |
) |
Non-operating expense |
|
|
|
|
|
|
|
||||||||
Other non-operating income |
|
— |
|
|
|
— |
|
|
|
60,000 |
|
|
|
— |
|
Interest expense, net |
|
(15,101 |
) |
|
|
(17,535 |
) |
|
|
(62,853 |
) |
|
|
(69,110 |
) |
Loss on debt extinguishment and modification |
|
(216 |
) |
|
|
— |
|
|
|
(975 |
) |
|
|
— |
|
Change in fair value of derivative |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Total non-operating expense, net |
|
(15,317 |
) |
|
|
(17,535 |
) |
|
|
(3,828 |
) |
|
|
(69,111 |
) |
Income (loss) before income tax (provision) benefit |
|
19,169 |
|
|
|
(18,649 |
) |
|
|
162,212 |
|
|
|
(136,550 |
) |
Income tax (provision) benefit |
|
(70 |
) |
|
|
180 |
|
|
|
(436 |
) |
|
|
(61 |
) |
Net income (loss) |
$ |
19,099 |
|
|
$ |
(18,469 |
) |
|
$ |
161,776 |
|
|
$ |
(136,611 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
29,035 |
|
|
|
28,186 |
|
|
|
28,709 |
|
|
|
28,080 |
|
Diluted |
|
32,394 |
|
|
|
28,186 |
|
|
|
32,123 |
|
|
|
28,080 |
|
Net income (loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.66 |
|
|
$ |
(0.66 |
) |
|
$ |
5.64 |
|
|
$ |
(4.87 |
) |
Diluted |
$ |
0.59 |
|
|
$ |
(0.66 |
) |
|
$ |
5.04 |
|
|
$ |
(4.87 |
) |
Reconciliation of Adjusted EBITDA
(Unaudited, in thousands)
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
44,733 |
|
|
$ |
30,483 |
|
|
$ |
179,793 |
|
|
$ |
114,571 |
|
Food and beverage |
|
|
22,962 |
|
|
|
14,095 |
|
|
|
83,092 |
|
|
|
55,588 |
|
Rooms |
|
|
25,517 |
|
|
|
14,469 |
|
|
|
94,952 |
|
|
|
61,070 |
|
Other |
|
|
11,308 |
|
|
|
5,460 |
|
|
|
31,875 |
|
|
|
19,414 |
|
|
|
$ |
104,520 |
|
|
$ |
64,507 |
|
|
$ |
389,712 |
|
|
$ |
250,643 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
29,311 |
|
|
$ |
24,697 |
|
|
$ |
120,537 |
|
|
$ |
82,522 |
|
Food and beverage |
|
|
6,119 |
|
|
|
5,317 |
|
|
|
24,036 |
|
|
|
18,406 |
|
Rooms |
|
|
2,206 |
|
|
|
1,306 |
|
|
|
7,626 |
|
|
|
5,598 |
|
Other |
|
|
2,042 |
|
|
|
1,801 |
|
|
|
7,656 |
|
|
|
6,505 |
|
|
|
$ |
39,678 |
|
|
$ |
33,121 |
|
|
$ |
159,855 |
|
|
$ |
113,031 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
14,812 |
|
|
$ |
11,754 |
|
|
$ |
60,797 |
|
|
$ |
40,505 |
|
Food and beverage |
|
|
2,065 |
|
|
|
1,363 |
|
|
|
7,932 |
|
|
|
4,669 |
|
Rooms |
|
|
1,866 |
|
|
|
1,539 |
|
|
|
7,224 |
|
|
|
4,743 |
|
Other |
|
|
432 |
|
|
|
310 |
|
|
|
2,202 |
|
|
|
1,719 |
|
|
|
$ |
19,175 |
|
|
$ |
14,966 |
|
|
$ |
78,155 |
|
|
$ |
51,636 |
|
Distributed Gaming (4) |
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
102,330 |
|
|
$ |
80,405 |
|
|
$ |
405,183 |
|
|
$ |
239,154 |
|
Food and beverage |
|
|
13,656 |
|
|
|
10,906 |
|
|
|
52,755 |
|
|
|
33,418 |
|
Other |
|
|
2,351 |
|
|
|
1,719 |
|
|
|
9,646 |
|
|
|
5,684 |
|
Distributed Gaming revenues |
|
$ |
118,337 |
|
|
$ |
93,030 |
|
|
$ |
467,584 |
|
|
$ |
278,256 |
|
Corporate and other |
|
|
248 |
|
|
|
4 |
|
|
|
1,237 |
|
|
|
589 |
|
Total Revenues |
|
$ |
281,958 |
|
|
$ |
205,628 |
|
|
$ |
1,096,543 |
|
|
$ |
694,155 |
|
(1) |
Comprised of |
(2) |
Comprised of Arizona Charlie’s Boulder, Arizona Charlie’s |
(3) |
Comprised of the operations of the |
(4) |
Comprised of Nevada Distributed Gaming, Nevada Taverns and Montana Distributed Gaming. |
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
(In thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
36,591 |
|
|
$ |
14,908 |
|
|
$ |
149,077 |
|
|
$ |
57,462 |
|
|
|
|
18,775 |
|
|
|
14,248 |
|
|
|
80,005 |
|
|
|
45,610 |
|
|
|
|
5,866 |
|
|
|
4,395 |
|
|
|
26,697 |
|
|
|
15,094 |
|
Distributed Gaming (4) |
|
|
20,324 |
|
|
|
14,035 |
|
|
|
87,276 |
|
|
|
26,952 |
|
Corporate and other |
|
|
(13,776 |
) |
|
|
(8,146 |
) |
|
|
(51,337 |
) |
|
|
(34,861 |
) |
Total Adjusted EBITDA |
|
$ |
67,780 |
|
|
$ |
39,440 |
|
|
$ |
291,718 |
|
|
$ |
110,257 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments |
|
|
|
|
|
|
|
|
||||||||
Other non-operating income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
60,000 |
|
|
$ |
— |
|
Depreciation and amortization |
|
|
(26,350 |
) |
|
|
(29,793 |
) |
|
|
(106,692 |
) |
|
|
(124,430 |
) |
Change in non-cash lease expense |
|
|
(245 |
) |
|
|
(589 |
) |
|
|
(762 |
) |
|
|
(1,344 |
) |
Share-based compensation |
|
|
(5,639 |
) |
|
|
(2,115 |
) |
|
|
(14,401 |
) |
|
|
(9,637 |
) |
(Loss) gain on disposal of assets |
|
|
(513 |
) |
|
|
14 |
|
|
|
(1,260 |
) |
|
|
(803 |
) |
Loss on debt extinguishment and modification |
|
|
(216 |
) |
|
|
— |
|
|
|
(975 |
) |
|
|
— |
|
Preopening and related expenses (5) |
|
|
(14 |
) |
|
|
(121 |
) |
|
|
(246 |
) |
|
|
(533 |
) |
Acquisition and severance expenses |
|
|
(35 |
) |
|
|
(343 |
) |
|
|
(228 |
) |
|
|
(3,710 |
) |
Impairment of goodwill and intangible assets |
|
|
— |
|
|
|
(6,092 |
) |
|
|
— |
|
|
|
(33,964 |
) |
Other, net |
|
|
(498 |
) |
|
|
(1,515 |
) |
|
|
(2,089 |
) |
|
|
(3,275 |
) |
Interest expense, net |
|
|
(15,101 |
) |
|
|
(17,535 |
) |
|
|
(62,853 |
) |
|
|
(69,110 |
) |
Change in fair value of derivative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Income tax (provision) benefit |
|
|
(70 |
) |
|
|
180 |
|
|
|
(436 |
) |
|
|
(61 |
) |
Net income (loss) |
|
$ |
19,099 |
|
|
$ |
(18,469 |
) |
|
$ |
161,776 |
|
|
$ |
(136,611 |
) |
(1) |
Comprised of |
(2) |
Comprised of Arizona Charlie’s Boulder, Arizona Charlie’s |
(3) |
Comprised of the operations of the |
(4) |
Comprised of Nevada Distributed Gaming, Nevada Taverns and Montana Distributed Gaming. |
(5) |
Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of tavern and casino locations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005842/en/
President and Chief Financial Officer
(702) 893-7777
Investor Relations
JCIR
(212) 835-8500 or gden@jcir.com
Source:
FAQ
What were Golden Entertainment's fourth quarter 2021 revenues?
How much net income did GDEN generate in the fourth quarter of 2021?
What is the annual revenue for Golden Entertainment for 2021?
What is the Adjusted EBITDA for Golden Entertainment in 2021?
What debt repayment actions did GDEN take in the fourth quarter of 2021?
