Golden Entertainment reports decreased Q2 revenue

Lea Hogg August 11, 2024

SiGMA news

Golden Entertainment reports decreased Q2 revenue

Golden Entertainment, Inc. (NASDAQ: GDEN), has released its financial results for the second quarter, ending on 30 June 2024.

Financial Highlights

✅ Revenue: The Company reported a revenue of $167.3 million.

✅ Net Income: The net income stood at $0.6 million.

✅ Adjusted EBITDA: The Adjusted EBITDA was $41.2 million.

✅ The STRAT (photo above) achieved an increase in revenue, with ADR and occupancy rates improving

✅ Laughlin operations and Nevada Locals Casinos saw a decline in revenue and EBITDA.

✅ Tavern business revenue rose, driven by new acquisitions.

✅ More than $750 million in debt has been repaid since early 2021, reducing net leverage to below 2x.

The Company reported revenues of $167.3 million and Adjusted EBITDA of $41.2 million for the second quarter of 2024. This is compared to revenues of $286.7 million and Adjusted EBITDA of $58.4 million for the second quarter of 2023. The decline in revenues and Adjusted EBITDA over the prior year period were primarily related to the exclusion of the results for the Company’s Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada that were sold on 25 July, 2023, 13 September 2023, and 10 January, 2024, respectively. Net income for the second quarter of 2024 was $0.6 million, or $0.02 per fully diluted share, as compared to $12.3 million, or $0.40 per fully diluted share, for the second quarter of 2023.

CEO’s Statement

Blake Sartini, Chairman and Chief Executive Officer of Golden Entertainment, stated that the Company continued to strengthen its balance sheet in the second quarter. This was achieved by fully repaying outstanding bonds in April and reducing the interest rate on the term loan in May. The Company also returned capital to shareholders through recurring dividends and repurchased nearly one million shares.

Liquidity and debt repayment

As of 30 June 2024 the Company’s total principal amount of debt outstanding was $400.7 million, consisting primarily of $396.0 million in outstanding term loan borrowings. The Company had cash and cash equivalents of $88.6 million. There continues to be no outstanding borrowings under the Company’s $240 million revolving credit facility.

On 15 April, 2024, the Company redeemed and repaid in full all of its senior unsecured notes, amounting to $287.0 million. This included $276.5 million in principal and $10.5 million in accrued and unpaid interest. On 29 May 2024, the Company repriced its $396 million term loan, reducing the annual interest rate on the term loan by 60 basis points.

On 6 August, 2024, the Company’s Board of Directors authorized the third recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock. This dividend will be payable on 2 October, 2024, to shareholders of record as of 17 September, 2024.

The Company paid its first and second quarterly cash dividends, amounting to $7.2 million and $7.1 million, on 4 April 2024, and 2 July, 2024, respectively. Additionally, the Company repurchased 989,117 shares of its common stock during the quarter at an average price of $29.85 per share, totalling $29.5 million. As of 30 June, 2024, the Company had $61.4 million of availability remaining under its share repurchase authorization.

Golden Entertainment, Inc. (GDEN) listed on Nasdaq is currently trading at $28.67, reflecting an increase of $0.55 or 1.96 percent as of August 11, 2024. The trading volume for the day was 241,978 shares, with a 52-week range of $27.54 to $42.14.