Golden Entertainment Reports 2024 Fourth Quarter and Full Year 2024 Results
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.
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Golden Entertainment, Inc. |
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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
[email protected]
KEYWORDS: Nevada United States North America
INDUSTRY KEYWORDS: Entertainment Retail Restaurant/Bar General Entertainment Lodging Travel Casino/Gaming
MEDIA:
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