Golden Entertainment Reports First Quarter Results
Golden Entertainment reported a strong first quarter for 2022, achieving revenues of $273.6 million, a 14% increase from the previous year. Net income rose to $36.1 million, or $1.12 per share, compared to $10.6 million, or $0.35 per share in Q1 2021. Adjusted EBITDA also improved by 13% to $67.3 million. The company repaid $25 million of debt and repurchased over $15 million of shares. The Board reauthorized a $50 million share repurchase program as part of their continued commitment to returning capital to shareholders.
- Revenue increased by 14% to $273.6 million compared to Q1 2021.
- Net income rose significantly to $36.1 million, or $1.12 per share, from $10.6 million a year earlier.
- Adjusted EBITDA improved by 13% to $67.3 million, maintaining a margin of 25%.
- Repurchased over $15 million of common stock, supporting shareholder value.
- Repaid $25 million of term loan borrowings, reducing overall debt.
- Total principal amount of debt outstanding remains high at approximately $1 billion.
- Adjusted EBITDA margin decreased slightly in Nevada Casino Resorts and Distributed Gaming segments.
– First quarter revenue of
– Financial performance for all operating segments exceeded prior year first quarter results
– Repaid
– Board of Directors reauthorized
Consolidated Results
The Company’s first quarter of 2022 revenues of
Revenues for
Revenues for
Revenues for
Distributed Gaming
Revenues for Distributed Gaming were
Debt and Liquidity
As of
During the first quarter of 2022, the Company repaid
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 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: 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, 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 |
||||||
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
||||
Gaming |
$ |
190,787 |
|
|
$ |
177,000 |
|
Food and beverage |
|
42,456 |
|
|
|
33,804 |
|
Rooms |
|
25,746 |
|
|
|
18,398 |
|
Other |
|
14,655 |
|
|
|
10,494 |
|
Total revenues |
|
273,644 |
|
|
|
239,696 |
|
Expenses |
|
|
|
||||
Gaming |
|
105,651 |
|
|
|
96,372 |
|
Food and beverage |
|
31,457 |
|
|
|
23,541 |
|
Rooms |
|
12,474 |
|
|
|
9,610 |
|
Other operating |
|
3,976 |
|
|
|
2,696 |
|
Selling, general and administrative |
|
60,910 |
|
|
|
53,591 |
|
Depreciation and amortization |
|
26,276 |
|
|
|
27,186 |
|
(Gain) loss on disposal of assets |
|
(41 |
) |
|
|
209 |
|
Preopening expenses |
|
55 |
|
|
|
120 |
|
Total expenses |
|
240,758 |
|
|
|
213,325 |
|
Operating income |
|
32,886 |
|
|
|
26,371 |
|
Non-operating expense |
|
|
|
||||
Interest expense, net |
|
(15,118 |
) |
|
|
(16,048 |
) |
Loss on debt extinguishment and modification |
|
(181 |
) |
|
|
— |
|
Total non-operating expense, net |
|
(15,299 |
) |
|
|
(16,048 |
) |
Income before income tax benefit |
|
17,587 |
|
|
|
10,323 |
|
Income tax benefit |
|
18,479 |
|
|
|
297 |
|
Net income |
$ |
36,066 |
|
|
$ |
10,620 |
|
|
|
|
|
||||
Weighted-average common shares outstanding |
|
|
|
||||
Basic |
|
28,894 |
|
|
|
28,219 |
|
Diluted |
|
32,149 |
|
|
|
30,414 |
|
Net income per share |
|
|
|
||||
Basic |
$ |
1.25 |
|
|
$ |
0.38 |
|
Diluted |
$ |
1.12 |
|
|
$ |
0.35 |
|
Reconciliation of Adjusted EBITDA (Unaudited, in thousands) |
||||||
|
|
Three Months Ended |
||||
|
|
2022 |
|
2021 |
||
Revenues |
|
|
|
|
||
|
|
|
|
|
||
Gaming |
|
$ |
44,230 |
|
$ |
38,826 |
Food and beverage |
|
|
21,384 |
|
|
14,965 |
Rooms |
|
|
22,029 |
|
|
15,628 |
Other |
|
|
8,792 |
|
|
5,386 |
|
|
$ |
96,435 |
|
$ |
74,805 |
|
|
|
|
|
||
Gaming |
|
$ |
29,381 |
|
$ |
29,536 |
Food and beverage |
|
|
6,179 |
|
|
5,513 |
Rooms |
|
|
2,244 |
|
|
1,478 |
Other |
|
|
2,085 |
|
|
2,018 |
|
|
$ |
39,889 |
|
$ |
38,545 |
|
|
|
|
|
||
Gaming |
|
$ |
14,457 |
|
$ |
13,032 |
Food and beverage |
|
|
1,648 |
|
|
1,442 |
Rooms |
|
|
1,473 |
|
|
1,292 |
Other |
|
|
314 |
|
|
334 |
|
|
$ |
17,892 |
|
$ |
16,100 |
Distributed Gaming (4) |
|
|
|
|
||
Gaming |
|
$ |
102,719 |
|
$ |
95,606 |
Food and beverage |
|
|
13,245 |
|
|
11,884 |
Other |
|
|
3,258 |
|
|
2,419 |
Distributed Gaming revenues |
|
$ |
119,222 |
|
$ |
109,909 |
Corporate and other |
|
|
206 |
|
|
337 |
Total Revenues |
|
$ |
273,644 |
|
$ |
239,696 |
(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 |
||||||
(In thousands) |
|
|
2022 |
|
|
|
2021 |
|
Adjusted EBITDA |
|
|
|
|
||||
|
|
$ |
33,575 |
|
|
$ |
26,655 |
|
|
|
|
20,038 |
|
|
|
19,552 |
|
|
|
|
5,572 |
|
|
|
4,873 |
|
Distributed Gaming (4) |
|
|
22,053 |
|
|
|
20,880 |
|
Corporate and other |
|
|
(13,913 |
) |
|
|
(12,462 |
) |
Total Adjusted EBITDA |
|
$ |
67,325 |
|
|
$ |
59,498 |
|
|
|
|
|
|
||||
Adjustments |
|
|
|
|
||||
Depreciation and amortization |
|
|
(26,276 |
) |
|
|
(27,186 |
) |
Change in non-cash lease expense |
|
|
(181 |
) |
|
|
(439 |
) |
Share-based compensation |
|
|
(3,672 |
) |
|
|
(3,005 |
) |
Gain (loss) on disposal of assets |
|
|
41 |
|
|
|
(209 |
) |
Loss on debt extinguishment and modification |
|
|
(181 |
) |
|
|
— |
|
Preopening and related expenses (5) |
|
|
(55 |
) |
|
|
(120 |
) |
Other, net |
|
|
(4,296 |
) |
|
|
(2,168 |
) |
Interest expense, net |
|
|
(15,118 |
) |
|
|
(16,048 |
) |
Income tax benefit |
|
|
18,479 |
|
|
|
297 |
|
Net income |
|
$ |
36,066 |
|
|
$ |
10,620 |
|
(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/20220505005805/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 revenues in Q1 2022?
How much net income did GDEN earn in the first quarter of 2022?
What was the Adjusted EBITDA for Golden Entertainment in Q1 2022?
What capital management actions did GDEN take in the first quarter of 2022?
What is the new share repurchase program authorized by GDEN’s Board of Directors?
