Golden Entertainment Reports 2024 Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Golden Entertainment (NASDAQ: GDEN) has reported its Q4 and full-year 2024 financial results. The company's Q4 revenues were $164.2 million, down from $230.7 million in Q4 2023, with net income of $3.0 million ($0.10 per share). Full-year 2024 revenues reached $666.8 million with net income of $50.7 million ($1.71 per share).

The Board approved a quarterly cash dividend of $0.25 per share, payable on April 2, 2025. During Q4, the company repurchased 1.1 million shares at an average price of $32.65, totaling $36.2 million. For the full year 2024, share repurchases amounted to 2.9 million shares at $31.63 average price, totaling $91.5 million.

The company's debt position as of December 31, 2024, stood at $417.6 million, with $57.7 million in cash and $220 million available on its revolving credit facility. The revenue decline was primarily attributed to the sale of Nevada distributed gaming operations in January 2024.

Positive

• Net income improved to $3.0M in Q4 2024 vs. -$9.4M loss in Q4 2023
• Significant debt reduction of $282.4M in 2024
• Strong shareholder returns: $91.5M in share buybacks and $21.3M in dividends
• Substantial liquidity with $277.7M available through cash and credit facility

Negative

• Q4 revenue declined 28.8% YoY to $164.2M from $230.7M
• Q4 Adjusted EBITDA decreased 19.7% YoY to $39.2M from $48.8M
• Full-year revenue dropped 39.4% to $666.8M from $1.1B
• Full-year Adjusted EBITDA fell 30.2% to $155.4M from $222.5M

Insights

Financial Analyst

Golden Entertainment's Q4 2024 results reveal a company in strategic transition, with a significant revenue drop that primarily reflects the impact of divesting non-core assets. Although Q4 revenues fell from $230.7 million to $164.2 million, this decline is largely attributable to the sale of its Nevada distributed gaming operations in January 2024. Excluding these divestitures, the core business experienced only a modest decline, underscoring stable underlying performance.

The full-year figures further illustrate this strategic shift. While revenues dropped to $666.8 million from $1.1 billion, the change is driven by the asset sales – with divestiture gains of $69.2 million in 2024 compared to $303.2 million in 2023 – rather than a deterioration in operational performance.

GDEN's balanced capital allocation strategy is evident in its significant debt reduction of $282.4 million and its return of $112.8 million to shareholders through share repurchases and dividends. The $0.25 quarterly dividend, reflecting a 3.2% annualized yield, further underscores its commitment to shareholder value.

Management’s focus on “investing in our own assets” while exploring “potential strategic opportunities” suggests a dual approach: reinforcing its core Nevada operations (eight casinos and 72 gaming taverns) and remaining open to future growth prospects. With $57.7 million in cash and $220 million available on its revolving credit facility, GDEN is well-positioned to capitalize on emerging opportunities in 2025.

LAS VEGAS--(BUSINESS WIRE)-- Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2024. In addition, on February 25, 2025, the Company’s Board of Directors authorized the Company’s next recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock payable on April 2, 2025 to shareholders of record as of March 21, 2025.

Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “Our fourth quarter performance improved sequentially over the third quarter and we anticipate business conditions will continue to improve in 2025. For 2025, we remain focused on investing in our own assets, returning capital to shareholders and pursuing potential strategic opportunities.”

The Company repurchased 1.1 million shares of common stock in the fourth quarter at an average price of $32.65 per share for a total of $36.2 million. During 2024, the Company repurchased 2.9 million shares of common stock in the aggregate at an average price of $31.63 per share for a total of $91.5 million. In 2024, the Company also paid aggregate cash dividends of $21.3 million.

Consolidated Results

The Company reported fourth quarter 2024 revenues of $164.2 million, compared to revenues of $230.7 million for the fourth quarter 2023. Net income for the fourth quarter 2024 was $3.0 million, or $0.10 per fully diluted share, compared to net loss of $9.4 million, or a loss of $0.33 per share, for the fourth quarter 2023 (which reflected an asset impairment charge of $12.1 million related to the Colorado Belle Casino Resort, the operations of which remain suspended). Fourth quarter 2024 Adjusted EBITDA was $39.2 million, compared to Adjusted EBITDA of $48.8 million for the fourth quarter of 2023. Fourth quarter 2024 declines in revenues and Adjusted EBITDA over the prior year period were primarily related to the exclusion from the current year period of the results for the Company’s distributed gaming operations in Nevada that were sold on January 10, 2024.

The Company reported full year 2024 revenues of $666.8 million, compared to revenues of $1.1 billion for 2023. Net income for the full year 2024 was $50.7 million, or $1.71 per fully diluted share, compared to $255.8 million, or $8.31 per fully diluted share, for 2023. Net income and diluted earnings per share for the full year 2024 included the benefit of the $69.2 million gain on the sale of distributed gaming operations in Nevada completed on January 10, 2024, compared to the $303.2 million gain on the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana completed on July 25, 2023 and September 13, 2023, respectively. Full year 2024 Adjusted EBITDA was $155.4 million, compared to Adjusted EBITDA of $222.5 million for 2023. Full year 2024 declines in revenues and Adjusted EBITDA over the prior year were primarily related to the exclusion of the results of Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada discussed above after their respective dates of sale.

Debt and Liquidity

As of December 31, 2024, the Company’s total principal amount of debt outstanding was $417.6 million, consisting primarily of $394 million in outstanding term loan borrowings and $20 million in outstanding borrowings under the Company’s revolving credit facility. The Company repaid $282.4 million of its debt obligations in 2024.

As of December 31, 2024, the Company had cash and cash equivalents of $57.7 million and $220 million of remaining availability on its revolving credit facility.

Investor Conference Call and Webcast

The Company will host a webcast and conference call today, February 27, 2025 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2024 fourth quarter and full year 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 13751149. The replay will be available until March 6, 2025. 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 and business outlook; return of capital to shareholders (including through the payment of recurring quarterly cash dividends or 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; increases in gaming taxes and fees in the jurisdictions in which the Company operates; litigation; increased competition; reliance on key personnel; 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 benefit or expense, share-based compensation expense, gain or loss on disposal of assets and businesses, loss on debt extinguishment and modification, preopening and related expenses, impairment of assets, interest, income taxes, and other non-cash charges that are deemed to be not indicative of the Company’s core operating results.

About Golden Entertainment

Golden Entertainment operates a diversified entertainment platform of gaming and hospitality assets. The Company operates eight casinos and 72 gaming taverns in Nevada, featuring approximately 5,500 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,
			2024				2023				2024				2023
Revenues
Gaming		$	78,387			$	138,682			$	319,267			$	674,301
Food and beverage			43,302				45,096				171,925				182,408
Rooms			29,805				31,737				119,565				124,649
Other			12,710				15,176				56,061				71,791
Total revenues			164,204				230,691				666,818				1,053,149
Expenses
Gaming			20,375				72,803				88,171				379,929
Food and beverage			35,576				34,130				138,278				135,373
Rooms			16,191				16,179				65,079				62,297
Other			3,223				5,193				14,363				22,415
Selling, general and administrative			52,183				58,709				225,313				255,565
Depreciation and amortization			22,672				21,758				90,034				88,933
Loss (gain) on disposal of assets			29				(103	)			(213	)			(228	)
(Gain) loss on sale of businesses			(294	)			2,650				(69,238	)			(303,179	)
Preopening expenses			131				185				508				760
Impairment of assets			2,399				12,072				2,399				12,072
Total expenses			152,485				223,576				554,694				653,937
Operating income			11,719				7,115				112,124				399,212
Non-operating expense
Interest expense, net			(7,629	)			(13,170	)			(34,884	)			(65,515	)
Loss on debt extinguishment and modification			—				(1,329	)			(4,446	)			(1,734	)
Total non-operating expense, net			(7,629	)			(14,499	)			(39,330	)			(67,249	)
Income (loss) before income tax provision			4,090				(7,384	)			72,794				331,963
Income tax provision			(1,112	)			(1,988	)			(22,063	)			(76,207	)
Net income (loss)		$	2,978			$	(9,372	)		$	50,731			$	255,756
Weighted-average common shares outstanding
Basic			27,115				28,627				28,184				28,653
Diluted			28,401				28,627				29,699				30,781
Net income per share
Basic		$	0.11			$	(0.33	)		$	1.80			$	8.93
Diluted		$	0.10			$	(0.33	)		$	1.71			$	8.31

Golden Entertainment, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited, in thousands)
		Three Months Ended December 31,								Year Ended December 31,
			2024				2023				2024				2023
Revenues
Nevada Casino Resorts		$	97,487			$	104,796			$	399,139			$	413,058
Nevada Locals Casinos			38,710				38,467				150,972				157,435
Nevada Taverns			27,722				27,763				109,723				109,215
Corporate and Other			285				342				965				9,305
Total Revenues - Continuing Operations			164,204				171,368				660,799				689,013
Distributed Gaming			—				59,323				6,019				320,680
Maryland Casino Resort			—				—				—				43,456
Total Revenues - Divested Operations			—				59,323				6,019				364,136
Total Revenues		$	164,204			$	230,691			$	666,818			$	1,053,149
Adjusted EBITDA
Nevada Casino Resorts		$	24,441			$	29,664			$	103,338			$	120,256
Nevada Locals Casinos			17,766				17,337				66,504				73,846
Nevada Taverns			6,468				8,175				27,137				32,682
Corporate and Other			(9,498	)			(12,786	)			(42,088	)			(51,459	)
Total Adjusted EBITDA - Continuing Operations			39,177				42,390				154,891				175,325
Distributed Gaming			—				6,370				484				34,545
Maryland Casino Resort			—				—				—				12,652
Total Adjusted EBITDA - Divested Operations			—				6,370				484				47,197
Total Adjusted EBITDA		$	39,177			$	48,760			$	155,375			$	222,522
Adjustments
Depreciation and amortization			(22,672	)			(21,758	)			(90,034	)			(88,933	)
Non-cash lease benefit			82				29				380				15
Share-based compensation			(1,746	)			(2,851	)			(10,434	)			(13,476	)
(Loss) gain on disposal of assets			(29	)			103				213				228
Gain (loss) on sale of businesses			294				(2,650	)			69,238				303,179
Loss on debt extinguishment and modification			—				(1,329	)			(4,446	)			(1,734	)
Preopening and related expenses			(131	)			(185	)			(508	)			(760	)
Impairment of assets			(2,399	)			(12,072	)			(2,399	)			(12,072	)
Other, net			(857	)			(2,261	)			(9,707	)			(11,491	)
Interest expense, net			(7,629	)			(13,170	)			(34,884	)			(65,515	)
Income tax provision			(1,112	)			(1,988	)			(22,063	)			(76,207	)
Net income		$	2,978			$	(9,372	)		$	50,731			$	255,756

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227372367/en/

Investors

Charles H. Protell

President and Chief Financial Officer

(702) 893-7777

James Adams

VP Corporate Finance and Treasurer

(702) 495-4470

james.adams@goldenent.com

Source: Golden Entertainment, Inc.

FAQ

What were Golden Entertainment's (GDEN) Q4 2024 financial highlights?

GDEN reported Q4 2024 revenues of $164.2M, net income of $3.0M ($0.10 per share), and Adjusted EBITDA of $39.2M.

How much did Golden Entertainment (GDEN) spend on share repurchases in 2024?

GDEN repurchased 2.9M shares at an average price of $31.63, totaling $91.5M in 2024.

What is Golden Entertainment's (GDEN) current dividend payment schedule?

GDEN approved a quarterly cash dividend of $0.25 per share, payable April 2, 2025, to shareholders of record as of March 21, 2025.

What is Golden Entertainment's (GDEN) current debt and liquidity position?

As of December 31, 2024, GDEN had total debt of $417.6M, cash of $57.7M, and $220M available on its revolving credit facility.

How much did Golden Entertainment (GDEN) reduce its debt in 2024?

GDEN repaid $282.4M of its debt obligations during 2024.