Golden Entertainment Reports 2022 Third Quarter Results
Golden Entertainment reported Q3 2022 revenue of $279.0 million, a slight 1% decline from Q3 2021. Net income was $14.0 million, down from $29.1 million year-over-year, and Adjusted EBITDA also fell by 17% to $61.1 million. The company announced plans to sell the Rocky Gap Casino Resort for $260 million, expected to close in Q2 2023. Additionally, they repaid $25 million of term loan debt and authorized a $75 million stock buyback program. The company remains optimistic about ongoing business trends.
- Announced sale of Rocky Gap Casino Resort for $260 million, allowing focus on core operations.
- Repayment of $25 million term loan improves financial position.
- Increased stock buyback authorization to $75 million supports shareholder value.
- Q3 2022 revenue down 1% from Q3 2021.
- Net income decreased 52% from the previous year.
- Adjusted EBITDA declined by 17%, indicating profitability pressures.
-
Third quarter revenue of
$279.0 million $14.0 million $61.1 million -
Entered into definitive agreements to sell
Rocky Gap Casino Resort for$260.0 million -
Repaid
$25.0 million $75.0 million
Consolidated Results
Revenues of
Revenues for
Revenues for
Revenues for
On
Distributed Gaming
Revenues for Distributed Gaming were
Debt and Liquidity
During the third quarter of 2022, the Company repaid
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 Rocky Gap transactions, including the anticipated timing of the closing of the transaction and satisfaction of regulatory and other conditions; the Company’s strategies, objectives, business opportunities and plans for future expansion, developments or acquisitions; 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 return capital to shareholders; 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: risks and uncertainties related to the Rocky Gap transactions, including the failure to obtain, or delays in obtaining, required regulatory approvals or clearances; the failure to satisfy any of the closing conditions to the Rocky Gap transactions on a timely basis or at all; 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; 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, preopening and related expenses, gain or loss on disposal of assets, share-based compensation expenses, change in 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
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Gaming |
$ |
188,420 |
|
|
$ |
193,167 |
|
|
$ |
575,886 |
|
|
$ |
575,124 |
|
Food and beverage |
|
43,035 |
|
|
|
44,271 |
|
|
|
129,942 |
|
|
|
123,013 |
|
Rooms |
|
30,765 |
|
|
|
31,566 |
|
|
|
89,685 |
|
|
|
80,213 |
|
Other |
|
16,773 |
|
|
|
13,418 |
|
|
|
46,496 |
|
|
|
36,235 |
|
Total revenues |
|
278,993 |
|
|
|
282,422 |
|
|
|
842,009 |
|
|
|
814,585 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Gaming |
|
108,040 |
|
|
|
106,301 |
|
|
|
323,431 |
|
|
|
309,478 |
|
Food and beverage |
|
33,090 |
|
|
|
32,182 |
|
|
|
97,093 |
|
|
|
85,256 |
|
Rooms |
|
14,337 |
|
|
|
13,220 |
|
|
|
40,627 |
|
|
|
35,213 |
|
Other operating |
|
4,531 |
|
|
|
4,635 |
|
|
|
13,853 |
|
|
|
10,430 |
|
Selling, general and administrative |
|
59,389 |
|
|
|
54,457 |
|
|
|
177,586 |
|
|
|
161,333 |
|
Depreciation and amortization |
|
24,286 |
|
|
|
26,474 |
|
|
|
75,894 |
|
|
|
80,342 |
|
Loss (gain) on disposal of assets |
|
266 |
|
|
|
(72 |
) |
|
|
935 |
|
|
|
747 |
|
Preopening expenses |
|
2 |
|
|
|
3 |
|
|
|
61 |
|
|
|
232 |
|
Total expenses |
|
243,941 |
|
|
|
237,200 |
|
|
|
729,480 |
|
|
|
683,031 |
|
Operating income |
|
35,052 |
|
|
|
45,222 |
|
|
|
112,529 |
|
|
|
131,554 |
|
Non-operating (expense) income |
|
|
|
|
|
|
|
||||||||
Other non-operating income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60,000 |
|
Interest expense, net |
|
(15,709 |
) |
|
|
(15,535 |
) |
|
|
(45,565 |
) |
|
|
(47,752 |
) |
Loss on debt extinguishment |
|
(158 |
) |
|
|
(759 |
) |
|
|
(1,412 |
) |
|
|
(759 |
) |
Total non-operating (expense) income, net |
|
(15,867 |
) |
|
|
(16,294 |
) |
|
|
(46,977 |
) |
|
|
11,489 |
|
Income before income tax (provision) benefit |
|
19,185 |
|
|
|
28,928 |
|
|
|
65,552 |
|
|
|
143,043 |
|
Income tax (provision) benefit |
|
(5,182 |
) |
|
|
123 |
|
|
|
5,737 |
|
|
|
(366 |
) |
Net income |
$ |
14,003 |
|
|
$ |
29,051 |
|
|
$ |
71,289 |
|
|
$ |
142,677 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
28,505 |
|
|
|
28,950 |
|
|
|
28,757 |
|
|
|
28,599 |
|
Diluted |
|
31,148 |
|
|
|
31,854 |
|
|
|
31,640 |
|
|
|
31,537 |
|
Net income per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.49 |
|
|
$ |
1.00 |
|
|
$ |
2.48 |
|
|
$ |
4.99 |
|
Diluted |
$ |
0.45 |
|
|
$ |
0.91 |
|
|
$ |
2.25 |
|
|
$ |
4.52 |
|
Reconciliation of Adjusted EBITDA
(Unaudited, in thousands)
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
42,812 |
|
|
$ |
46,216 |
|
|
$ |
133,156 |
|
|
$ |
135,060 |
|
Food and beverage |
|
|
21,537 |
|
|
|
22,449 |
|
|
|
66,044 |
|
|
|
60,129 |
|
Rooms |
|
|
26,068 |
|
|
|
27,643 |
|
|
|
76,670 |
|
|
|
69,436 |
|
Other |
|
|
8,439 |
|
|
|
8,072 |
|
|
|
26,919 |
|
|
|
20,567 |
|
|
|
$ |
98,856 |
|
|
$ |
104,380 |
|
|
$ |
302,789 |
|
|
$ |
285,192 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
27,457 |
|
|
$ |
28,437 |
|
|
$ |
85,886 |
|
|
$ |
91,226 |
|
Food and beverage |
|
|
6,208 |
|
|
|
6,081 |
|
|
|
18,688 |
|
|
|
17,918 |
|
Rooms |
|
|
2,325 |
|
|
|
1,858 |
|
|
|
7,098 |
|
|
|
5,419 |
|
Other |
|
|
1,745 |
|
|
|
1,729 |
|
|
|
5,737 |
|
|
|
5,614 |
|
|
|
$ |
37,735 |
|
|
$ |
38,105 |
|
|
$ |
117,409 |
|
|
$ |
120,177 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
16,027 |
|
|
$ |
16,502 |
|
|
$ |
45,940 |
|
|
$ |
45,985 |
|
Food and beverage |
|
|
2,463 |
|
|
|
2,314 |
|
|
|
6,333 |
|
|
|
5,867 |
|
Rooms |
|
|
2,372 |
|
|
|
2,065 |
|
|
|
5,917 |
|
|
|
5,358 |
|
Other |
|
|
762 |
|
|
|
759 |
|
|
|
1,872 |
|
|
|
1,770 |
|
|
|
$ |
21,624 |
|
|
$ |
21,640 |
|
|
$ |
60,062 |
|
|
$ |
58,980 |
|
Distributed Gaming (4) |
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
102,124 |
|
|
$ |
102,012 |
|
|
$ |
310,904 |
|
|
$ |
302,853 |
|
Food and beverage |
|
|
12,827 |
|
|
|
13,427 |
|
|
|
38,877 |
|
|
|
39,099 |
|
Other |
|
|
2,695 |
|
|
|
2,496 |
|
|
|
8,456 |
|
|
|
7,295 |
|
Distributed Gaming revenues |
|
$ |
117,646 |
|
|
$ |
117,935 |
|
|
$ |
358,237 |
|
|
$ |
349,247 |
|
Corporate and other |
|
|
3,132 |
|
|
|
362 |
|
|
|
3,512 |
|
|
|
989 |
|
Total Revenues |
|
$ |
278,993 |
|
|
$ |
282,422 |
|
|
$ |
842,009 |
|
|
$ |
814,585 |
|
(1) |
Comprised of |
(2) |
Comprised of Arizona Charlie’s Boulder, Arizona Charlie’s |
(3) |
Comprised of the operations of the |
(4) |
Comprised of distributed gaming operations in |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
30,122 |
|
|
$ |
39,196 |
|
|
$ |
102,589 |
|
|
$ |
112,486 |
|
|
|
|
16,818 |
|
|
|
18,103 |
|
|
|
56,651 |
|
|
|
61,230 |
|
|
|
|
7,446 |
|
|
|
7,669 |
|
|
|
20,260 |
|
|
|
20,831 |
|
Distributed Gaming (4) |
|
|
18,845 |
|
|
|
21,158 |
|
|
|
63,092 |
|
|
|
66,952 |
|
Corporate and other |
|
|
(12,176 |
) |
|
|
(12,698 |
) |
|
|
(39,196 |
) |
|
|
(37,561 |
) |
Total Adjusted EBITDA |
|
$ |
61,055 |
|
|
$ |
73,428 |
|
|
$ |
203,396 |
|
|
$ |
223,938 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments |
|
|
|
|
|
|
|
|
||||||||
Other non-operating income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60,000 |
|
Depreciation and amortization |
|
|
(24,286 |
) |
|
|
(26,474 |
) |
|
|
(75,894 |
) |
|
|
(80,342 |
) |
Change in non-cash lease expense |
|
|
298 |
|
|
|
143 |
|
|
|
(113 |
) |
|
|
(517 |
) |
Share-based compensation |
|
|
(3,286 |
) |
|
|
(3,089 |
) |
|
|
(10,269 |
) |
|
|
(8,762 |
) |
(Loss) gain on disposal of assets |
|
|
(266 |
) |
|
|
72 |
|
|
|
(935 |
) |
|
|
(747 |
) |
Loss on debt extinguishment |
|
|
(158 |
) |
|
|
(759 |
) |
|
|
(1,412 |
) |
|
|
(759 |
) |
Preopening and related expenses (5) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(61 |
) |
|
|
(232 |
) |
Other, net |
|
|
1,539 |
|
|
|
1,145 |
|
|
|
(3,595 |
) |
|
|
(1,784 |
) |
Interest expense, net |
|
|
(15,709 |
) |
|
|
(15,535 |
) |
|
|
(45,565 |
) |
|
|
(47,752 |
) |
Income tax (provision) benefit |
|
|
(5,182 |
) |
|
|
123 |
|
|
|
5,737 |
|
|
|
(366 |
) |
Net income |
|
$ |
14,003 |
|
|
$ |
29,051 |
|
|
$ |
71,289 |
|
|
$ |
142,677 |
|
(1) |
Comprised of |
(2) |
Comprised of Arizona Charlie’s Boulder, Arizona Charlie’s |
(3) |
Comprised of the operations of the |
(4) |
Comprised of distributed gaming operations in |
(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/20221103006149/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 Q3 2022 revenue and net income figures?
What is the status of the Rocky Gap Casino Resort sale?
What is the current stock buyback authorization for GDEN?
How did Golden Entertainment's Adjusted EBITDA perform in Q3 2022?
What are the debt levels reported by Golden Entertainment?
