Golden Entertainment Reports 2024 Second Quarter Results
Golden Entertainment (NASDAQ: GDEN) announced its second quarter 2024 financial results. The company reported revenue of $167.3 million, net income of $0.6 million, and an Adjusted EBITDA of $41.2 million. The Board of Directors approved a third recurring quarterly dividend of $0.25 per share payable on October 2, 2024. Significant financial actions included repaying $287 million in senior unsecured notes and repricing a $396 million term loan, reducing the interest rate by 60 basis points. The company also repurchased nearly one million shares for $29.5 million. Compared to Q2 2023, revenues and Adjusted EBITDA declined, partially due to the sale of several gaming operations. As of June 30, 2024, total debt was $400.7 million with $88.6 million in cash. No borrowings were outstanding under the $240 million revolving credit facility.
Golden Entertainment (NASDAQ: GDEN) ha annunciato i risultati finanziari del secondo trimestre 2024. L'azienda ha registrato ricavi pari a 167,3 milioni di dollari, un utile netto di 0,6 milioni di dollari e un EBITDA rettificato di 41,2 milioni di dollari. Il Consiglio di Amministrazione ha approvato un terzo dividendo trimestrale ricorrente di 0,25 dollari per azione, che sarà pagato il 2 ottobre 2024. Tra le azioni finanziarie significative, si segnala il rimborso di 287 milioni di dollari in note senior non garantite e la rinegoziazione di un prestito a termine di 396 milioni di dollari, con una riduzione del tasso d'interesse di 60 punti base. L'azienda ha anche riacquistato quasi un milione di azioni per 29,5 milioni di dollari. Rispetto al secondo trimestre del 2023, i ricavi e l'EBITDA rettificato sono diminuiti, parzialmente a causa della vendita di diverse operazioni di gioco. Al 30 giugno 2024, il debito totale era di 400,7 milioni di dollari con 88,6 milioni di dollari in contante. Nessun prestito era in essere sotto la linea di credito revolving da 240 milioni di dollari.
Golden Entertainment (NASDAQ: GDEN) anunció sus resultados financieros del segundo trimestre de 2024. La compañía reportó ingresos de 167,3 millones de dólares, ingreso neto de 0,6 millones de dólares y un EBITDA ajustado de 41,2 millones de dólares. La Junta Directiva aprobó un tercer dividendo trimestral recurrente de 0,25 dólares por acción, que se pagará el 2 de octubre de 2024. Las acciones financieras significativas incluyeron el reembolso de 287 millones de dólares en notas no aseguradas y la reestructuración de un préstamo a plazo de 396 millones de dólares, reduciendo la tasa de interés en 60 puntos básicos. La compañía también recompró casi un millón de acciones por 29,5 millones de dólares. En comparación con el segundo trimestre de 2023, los ingresos y el EBITDA ajustado disminuyeron, en parte debido a la venta de varias operaciones de juego. Al 30 de junio de 2024, la deuda total era de 400,7 millones de dólares con 88,6 millones de dólares en efectivo. No había préstamos pendientes bajo la línea de crédito revolvente de 240 millones de dólares.
골든 엔터테인먼트 (NASDAQ: GDEN)는 2024년 2분기 재무 결과를 발표했다. 회사는 1억 6,730만 달러의 수익, 60만 달러의 순이익, 4,120만 달러의 조정 EBITDA를 보고했다. 이사회는 주당 0.25달러의 3번째 분기 배당금을 승인했으며, 이는 2024년 10월 2일 지급될 예정이다. 주요 재무 조치로는 2억 8,700만 달러의 비담보 선순위 노트 상환과 3억 9,600만 달러의 기간 대출 금리 재조정이 포함되어 있으며, 이로 인해 금리가 60bp 감소했다. 회사는 또한 거의 100만 주를 2,950만 달러에 재매입했다. 2023년 2분기와 비교할 때, 수익과 조정 EBITDA는 여러 게임 운영 매각으로 인해 감소했다. 2024년 6월 30일 기준, 총 부채는 4억 7만 달러였으며, 현금은 8,860만 달러였다. 2억 4천만 달러의 회전 신용 한도 아래 미상환 대출은 없었다.
Golden Entertainment (NASDAQ: GDEN) a annoncé ses résultats financiers du deuxième trimestre 2024. La société a déclaré un chiffre d'affaires de 167,3 millions de dollars, un bénéfice net de 0,6 million de dollars et un EBITDA ajusté de 41,2 millions de dollars. Le Conseil d'Administration a approuvé un troisième dividende trimestriel récurrent de 0,25 dollar par action, qui sera payable le 2 octobre 2024. Parmi les actions financières significatives, on note le remboursement de 287 millions de dollars en billets senior non garantis et le refinancement d'un prêt à terme de 396 millions de dollars, réduisant le taux d'intérêt de 60 points de base. L'entreprise a également racheté près de un million d'actions pour 29,5 millions de dollars. Par rapport au T2 2023, les revenus et l'EBITDA ajusté ont diminué, en partie à cause de la vente de plusieurs opérations de jeux. Au 30 juin 2024, la dette totale s'élevait à 400,7 millions de dollars avec 88,6 millions de dollars en liquidités. Aucun emprunt n'était en cours dans le cadre de la ligne de crédit renouvelable de 240 millions de dollars.
Golden Entertainment (NASDAQ: GDEN) gab die finanziellen Ergebnisse für das zweite Quartal 2024 bekannt. Das Unternehmen berichtete von Einnahmen in Höhe von 167,3 Millionen Dollar, Nettoeinkommen von 0,6 Millionen Dollar und einem bereinigten EBITDA von 41,2 Millionen Dollar. Der Aufsichtsrat genehmigte eine dritte wiederkehrende vierteljährliche Dividende von 0,25 Dollar pro Aktie, die am 2. Oktober 2024 ausgezahlt wird. Zu den bedeutenden finanziellen Maßnahmen gehörten die Rückzahlung von 287 Millionen Dollar in ungesicherten Senior-Notes und die Neuauswertung eines Terminkredits von 396 Millionen Dollar, wodurch der Zinssatz um 60 Basispunkte gesenkt wurde. Das Unternehmen hat außerdem fast eine Million Aktien für 29,5 Millionen Dollar zurückgekauft. Im Vergleich zum 2. Quartal 2023 sanken die Einnahmen und das bereinigte EBITDA, teilweise aufgrund des Verkaufs mehrerer Spielbetriebe. Am 30. Juni 2024 betrug die Gesamtschuld 400,7 Millionen Dollar bei 88,6 Millionen Dollar in bar. Es gab keine ausstehenden Darlehen im Rahmen der revolvierenden Kreditlinie von 240 Millionen Dollar.
- Authorized a third recurring quarterly dividend of $0.25 per share.
- Repurchased nearly one million shares for $29.5 million.
- Repayment of $287 million in senior unsecured notes.
- Reduced annual interest rate on $396 million term loan by 60 basis points.
- Revenue decreased from $286.7 million in Q2 2023 to $167.3 million in Q2 2024.
- Net income fell from $12.3 million in Q2 2023 to $0.6 million in Q2 2024.
- Adjusted EBITDA dropped from $58.4 million in Q2 2023 to $41.2 million in Q2 2024.
Insights
Golden Entertainment's Q2 2024 results reveal a significant revenue decline to
The company's strategic moves to strengthen its balance sheet are noteworthy. By fully repaying
The initiation of a
Golden Entertainment's Q2 results reflect a company in transition. The substantial revenue decline is primarily attributed to the strategic divestment of key assets, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada. This reshaping of the business portfolio suggests a shift in corporate strategy, possibly towards a more focused and streamlined operation.
The market's reaction to these results will likely be mixed. While the revenue drop might raise concerns, the company's ability to maintain profitability and strong cash flow in the face of significant changes is commendable. The aggressive capital return policy, including dividends and share repurchases, could be viewed positively by investors seeking immediate returns.
However, the long-term growth strategy remains unclear. Investors will be keen to understand how Golden Entertainment plans to drive future revenue growth with its reduced asset base. The company's ability to leverage its improved balance sheet and financial flexibility for new growth initiatives will be important in shaping market sentiment going forward.
Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “In the second quarter, we continued to strengthen our balance sheet by fully repaying our outstanding bonds in April and reducing our interest rate on our term loan in May. We also aggressively returned capital to shareholders through our recurring dividend and repurchasing nearly one million shares. Our healthy operating cash flow and strong balance sheet will continue to provide us with strategic and financial flexibility while we return capital to shareholders throughout the year.”
On April 15, 2024, the Company redeemed and repaid in full all of its senior unsecured notes in the amount of
The Company also paid its first and second quarterly cash dividends in the amount of
Consolidated Results
The Company reported second quarter of 2024 revenues of
Debt and Liquidity
As of June 30, 2024, the Company’s total principal amount of debt outstanding was
As of June 30, 2024, the Company had cash and cash equivalents of
Investor Conference Call and Webcast
The Company will host a webcast and conference call today, August 8, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss the 2024 second quarter results. The conference call may be accessed live over the phone by dialing (800) 717-1738 or for international callers by dialing (646) 307-1865. 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 1170998. The replay will be available until August 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; 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 (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
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, transaction costs, interest and other non-operating income (expense), 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 71 gaming taverns in
Golden Entertainment, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
$ |
78,247 |
|
|
$ |
182,355 |
|
|
$ |
165,196 |
|
|
$ |
370,442 |
|
Food and beverage |
|
|
43,113 |
|
|
|
46,534 |
|
|
|
86,774 |
|
|
|
92,805 |
|
Rooms |
|
|
31,422 |
|
|
|
30,918 |
|
|
|
60,822 |
|
|
|
61,495 |
|
Other |
|
|
14,552 |
|
|
|
26,874 |
|
|
|
28,589 |
|
|
|
39,990 |
|
Total revenues |
|
|
167,334 |
|
|
|
286,681 |
|
|
|
341,381 |
|
|
|
564,732 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Gaming |
|
|
20,764 |
|
|
|
105,380 |
|
|
|
47,655 |
|
|
|
212,306 |
|
Food and beverage |
|
|
34,300 |
|
|
|
33,645 |
|
|
|
68,476 |
|
|
|
67,667 |
|
Rooms |
|
|
16,452 |
|
|
|
15,359 |
|
|
|
32,686 |
|
|
|
30,140 |
|
Other |
|
|
2,784 |
|
|
|
7,905 |
|
|
|
6,864 |
|
|
|
11,735 |
|
Selling, general and administrative |
|
|
56,087 |
|
|
|
67,093 |
|
|
|
116,074 |
|
|
|
129,129 |
|
Depreciation and amortization |
|
|
22,616 |
|
|
|
21,454 |
|
|
|
44,736 |
|
|
|
44,962 |
|
(Gain) loss on disposal of assets |
|
|
— |
|
|
|
(34 |
) |
|
|
14 |
|
|
|
(120 |
) |
Loss (gain) on sale of business |
|
|
792 |
|
|
|
— |
|
|
|
(68,944 |
) |
|
|
— |
|
Preopening expenses |
|
|
4 |
|
|
|
141 |
|
|
|
143 |
|
|
|
525 |
|
Total expenses |
|
|
153,799 |
|
|
|
250,943 |
|
|
|
247,704 |
|
|
|
496,344 |
|
Operating income |
|
|
13,535 |
|
|
|
35,738 |
|
|
|
93,677 |
|
|
|
68,388 |
|
Non-operating expense |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
(8,610 |
) |
|
|
(18,803 |
) |
|
|
(19,296 |
) |
|
|
(37,039 |
) |
Loss on debt extinguishment and modification |
|
|
(4,446 |
) |
|
|
(405 |
) |
|
|
(4,446 |
) |
|
|
(405 |
) |
Total non-operating expense, net |
|
|
(13,056 |
) |
|
|
(19,208 |
) |
|
|
(23,742 |
) |
|
|
(37,444 |
) |
Income before income tax benefit (provision) |
|
|
479 |
|
|
|
16,530 |
|
|
|
69,935 |
|
|
|
30,944 |
|
Income tax benefit (provision) |
|
|
144 |
|
|
|
(4,248 |
) |
|
|
(27,349 |
) |
|
|
(7,032 |
) |
Net income |
|
$ |
623 |
|
|
$ |
12,282 |
|
|
$ |
42,586 |
|
|
$ |
23,912 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
28,798 |
|
|
|
28,845 |
|
|
|
28,761 |
|
|
|
28,578 |
|
Diluted |
|
|
30,234 |
|
|
|
30,717 |
|
|
|
30,482 |
|
|
|
30,831 |
|
Net income per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.02 |
|
|
$ |
0.43 |
|
|
$ |
1.48 |
|
|
$ |
0.84 |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
0.40 |
|
|
$ |
1.40 |
|
|
$ |
0.78 |
|
Golden Entertainment, Inc. Reconciliation of Adjusted EBITDA (Unaudited, in thousands) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
Nevada Casino Resorts (1) |
|
$ |
101,093 |
|
|
$ |
102,562 |
|
|
$ |
202,105 |
|
|
$ |
202,738 |
|
Nevada Locals Casinos (2) |
|
|
37,866 |
|
|
|
39,829 |
|
|
|
76,857 |
|
|
|
81,067 |
|
Nevada Taverns (3) |
|
|
28,152 |
|
|
|
27,319 |
|
|
|
55,959 |
|
|
|
54,912 |
|
Corporate and other |
|
|
223 |
|
|
|
8,282 |
|
|
|
441 |
|
|
|
8,797 |
|
Total Revenues - Continuing Operations |
|
|
167,334 |
|
|
|
177,992 |
|
|
|
335,362 |
|
|
|
347,514 |
|
Distributed Gaming (4) |
|
|
— |
|
|
|
89,084 |
|
|
|
6,019 |
|
|
|
179,485 |
|
Maryland Casino Resort (5) |
|
|
— |
|
|
|
19,605 |
|
|
|
— |
|
|
|
37,733 |
|
Total Revenues - Divested Operations |
|
|
— |
|
|
|
108,689 |
|
|
|
6,019 |
|
|
|
217,218 |
|
Total Revenues |
|
$ |
167,334 |
|
|
$ |
286,681 |
|
|
$ |
341,381 |
|
|
$ |
564,732 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Nevada Casino Resorts (1) |
|
$ |
27,392 |
|
|
$ |
28,044 |
|
|
$ |
54,283 |
|
|
$ |
59,755 |
|
Nevada Locals Casinos (2) |
|
|
16,928 |
|
|
|
19,471 |
|
|
|
34,464 |
|
|
|
39,631 |
|
Nevada Taverns (3) |
|
|
7,791 |
|
|
|
8,450 |
|
|
|
15,352 |
|
|
|
16,988 |
|
Corporate and other |
|
|
(10,919 |
) |
|
|
(13,403 |
) |
|
|
(22,399 |
) |
|
|
(26,557 |
) |
Total Adjusted EBITDA - Continuing Operations |
|
|
41,192 |
|
|
|
42,562 |
|
|
|
81,700 |
|
|
|
89,817 |
|
Distributed Gaming (4) |
|
|
— |
|
|
|
9,950 |
|
|
|
484 |
|
|
|
19,734 |
|
Maryland Casino Resort (5) |
|
|
— |
|
|
|
5,898 |
|
|
|
— |
|
|
|
11,026 |
|
Total Adjusted EBITDA - Divested Operations |
|
|
— |
|
|
|
15,848 |
|
|
|
484 |
|
|
|
30,760 |
|
Total Adjusted EBITDA |
|
|
41,192 |
|
|
|
58,410 |
|
|
|
82,184 |
|
|
|
120,577 |
|
Adjustments |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
(22,616 |
) |
|
|
(21,454 |
) |
|
|
(44,736 |
) |
|
|
(44,962 |
) |
Non-cash lease benefit (expense) |
|
|
148 |
|
|
|
9 |
|
|
|
233 |
|
|
|
(24 |
) |
Share-based compensation |
|
|
(2,450 |
) |
|
|
(3,288 |
) |
|
|
(5,719 |
) |
|
|
(7,181 |
) |
Gain (loss) on disposal of assets |
|
|
— |
|
|
|
34 |
|
|
|
(14 |
) |
|
|
120 |
|
(Loss) gain on sale of business |
|
|
(792 |
) |
|
|
— |
|
|
|
68,944 |
|
|
|
— |
|
Loss on debt extinguishment and modification |
|
|
(4,446 |
) |
|
|
(405 |
) |
|
|
(4,446 |
) |
|
|
(405 |
) |
Preopening and related expenses (6) |
|
|
(4 |
) |
|
|
(141 |
) |
|
|
(143 |
) |
|
|
(525 |
) |
Transaction costs |
|
|
(337 |
) |
|
|
(170 |
) |
|
|
(2,275 |
) |
|
|
(277 |
) |
Other, net |
|
|
(1,606 |
) |
|
|
2,338 |
|
|
|
(4,797 |
) |
|
|
660 |
|
Interest expense, net |
|
|
(8,610 |
) |
|
|
(18,803 |
) |
|
|
(19,296 |
) |
|
|
(37,039 |
) |
Income tax benefit (provision) |
|
|
144 |
|
|
|
(4,248 |
) |
|
|
(27,349 |
) |
|
|
(7,032 |
) |
Net income |
|
$ |
623 |
|
|
$ |
12,282 |
|
|
$ |
42,586 |
|
|
$ |
23,912 |
|
(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 Company’s branded tavern locations. |
||||
(4) |
Comprised of distributed gaming operations in |
||||
(5) |
Comprised of the operations of the Rocky Gap Casino Resort, which was sold on July 25, 2023. |
||||
(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 food and beverage and other venues within the casino locations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808506393/en/
Investor Relations
Charles H. Protell
President and Chief Financial Officer
(702) 893-7777
James Adams
Vice President of Corporate Finance
(702) 495-4470
james.adams@goldenent.com
Source: Golden Entertainment, Inc.
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