Golden Entertainment Reports 2018 First Quarter Revenue of $214.8 Million, Net Income of $3.9 Million and
Adjusted EBITDA of $45.9 Million
Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden Entertainment” or the “Company”) today announced financial results for the
first quarter ended March 31, 2018, as summarized below.
|
|
|
Three Months Ended |
|
|
|
March 31, 2018 |
|
March 31, 2017 (1) |
|
% Change |
|
|
|
(Unaudited, in thousands) |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Casinos |
|
|
$ |
115,667 |
|
|
$ |
9,093 |
|
|
|
1172.0 |
% |
Maryland Casino |
|
|
|
14,820 |
|
|
|
15,198 |
|
|
|
(2.5 |
%) |
Total Casinos |
|
|
|
130,487 |
|
|
|
24,291 |
|
|
|
437.2 |
% |
Nevada Distributed Gaming |
|
|
|
68,734 |
|
|
|
66,687 |
|
|
|
3.1 |
% |
Montana Distributed Gaming |
|
|
|
15,427 |
|
|
|
14,827 |
|
|
|
4.0 |
% |
Total Distributed Gaming |
|
|
|
84,161 |
|
|
|
81,514 |
|
|
|
3.2 |
% |
Corporate and other |
|
|
|
141 |
|
|
|
78 |
|
|
|
80.8 |
% |
Total revenues |
|
|
$ |
214,789 |
|
|
$ |
105,883 |
|
|
|
102.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Casinos |
|
|
$ |
21,140 |
|
|
$ |
2,046 |
|
|
|
933.2 |
% |
Maryland Casino |
|
|
|
2,701 |
|
|
|
2,681 |
|
|
|
0.7 |
% |
Total Casinos |
|
|
|
23,841 |
|
|
|
4,727 |
|
|
|
404.4 |
% |
Nevada Distributed Gaming |
|
|
|
6,823 |
|
|
|
7,529 |
|
|
|
(9.4 |
%) |
Montana Distributed Gaming |
|
|
|
625 |
|
|
|
692 |
|
|
|
(9.7 |
%) |
Total Distributed Gaming |
|
|
|
7,448 |
|
|
|
8,221 |
|
|
|
(9.4 |
%) |
Corporate and other |
|
|
|
(27,359 |
) |
|
|
(7,606 |
) |
|
|
259.7 |
% |
Net income |
|
|
$ |
3,930 |
|
|
$ |
5,342 |
|
|
|
(26.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Casinos |
|
|
$ |
39,921 |
|
|
$ |
2,891 |
|
|
|
1280.9 |
% |
Maryland Casino |
|
|
|
3,729 |
|
|
|
3,411 |
|
|
|
9.3 |
% |
Total Casinos |
|
|
|
43,650 |
|
|
|
6,302 |
|
|
|
592.6 |
% |
Nevada Distributed Gaming |
|
|
|
11,002 |
|
|
|
11,000 |
|
|
|
0.0 |
% |
Montana Distributed Gaming |
|
|
|
2,005 |
|
|
|
2,106 |
|
|
|
(4.8 |
%) |
Total Distributed Gaming |
|
|
|
13,007 |
|
|
|
13,106 |
|
|
|
(0.8 |
%) |
Corporate and other |
|
|
|
(10,763 |
) |
|
|
(5,839 |
) |
|
|
84.3 |
% |
Adjusted EBITDA |
|
|
$ |
45,894 |
|
|
$ |
13,569 |
|
|
|
238.2 |
% |
___________________ |
(1) |
|
Prior-period information has been recast for the adoption of Accounting Standards Codification Topic
606 (ASC 606), Revenue from Contracts with Customers, which the Company adopted effective January 1, 2018, utilizing
the full retrospective transition method.
|
(2) |
|
Adjusted EBITDA is a non-GAAP financial measure and definitions and disclosures,
including reconciliations, are included at the end of the press release. |
|
|
|
Blake L. Sartini, Chairman and Chief Executive Officer of Golden Entertainment, commented, “Our record first quarter results
were driven by year-over-year Adjusted EBITDA growth from our Nevada casinos acquired with American Casino and Entertainment in
October 2017 as well as Adjusted EBITDA growth at Maryland’s Rocky Gap Casino Resort despite the challenging northeast weather.
“Throughout the first quarter we made progress against all of our 2018 strategic priorities. We continued the expansion of our
Las Vegas branded tavern platform with the opening of two of the six planned new locations for 2018 and both new properties are on
track to generate the attractive returns we have experienced from other recent tavern openings. In addition, we completed the
renovation of 110 of Rocky Gap’s approximately 200 rooms to build on its success in the upcoming higher demand summer months.
“We also began work on Phase I of our capital investment plan at the Stratosphere which includes room renovations, refreshing
the casino exterior, and adding exciting new venues to attract and engage patrons. By the end of 2018, we expect to have completed
the renovation of 317 rooms at the Stratosphere as well as the installation of state-of-the-art exterior digital signage and
lighting. Further, we intend to add a unique gastro-brewery to the property that leverages our market-leading tavern experience
while featuring Golden Entertainment’s signature branded craft beers. This brewery will be connected to a new sports and race book
creating a one-of-a-kind experience for our guests. Our continued investment will establish Stratosphere as a preferred destination
for Las Vegas visitors and locals alike, and we remain confident that our renovations will generate an attractive return on
capital.
“We also made progress with our plan to introduce a single loyalty program across all our operations through an agreement with
Konami to deploy their casino management system in our acquired properties. This will allow us to leverage our newly-launched logo
and branding with a single player card, which we believe will build on the positive cross play opportunities we have seen since
completing the American transaction. In addition, having operated our new properties for six months, we have identified additional
opportunities to improve margins beyond our initial synergy target.”
Mr. Sartini concluded, “We are excited by the growth opportunities presented to Golden Entertainment as a result of our expanded
platform and the value to be created from our capital investments. With a leading and growing presence in Southern Nevada, we are
optimistic about our anticipated financial performance as most of our revenue and cash flow is derived from what we believe is the
most attractive gaming market in the country. Las Vegas continues to experience robust levels of economic activity, and we are
excited about our Company’s prospects to further enhance shareholder value.”
Results for the Three Months Ended March 31, 2018
Effective January 1, 2018, the Company adopted the Financial Accounting Standards Board’s new revenue recognition standard.
Certain prior period amounts have been adjusted to reflect the full retrospective adoption of the standard, with no material impact
on operating income, net income or Adjusted EBITDA.
Revenues for the 2018 first quarter were $214.8 million, compared to $105.9 million in the prior-year quarter. Revenues
benefited from continued growth of the Company’s Nevada casinos, including the casinos acquired in the American acquisition in
October 2017, as well as our branded taverns in Nevada. Casino revenues in the 2018 first quarter were $130.5 million compared to
$24.3 million in the prior-year period, reflecting the contributions from the acquired American properties. Revenues for the casino
operations were up 1% year over year in the first quarter when compared to Combined Revenues for the prior-year period including
the American properties. Revenues for the distributed gaming operations rose 3.2% over the prior-year period to $84.2 million.
For the first quarter of 2018, the Company recorded net income of $3.9 million, or $0.13 per diluted share, compared to net
income of $5.3 million, or $0.23 per diluted share, in the prior-year period.
Adjusted EBITDA for the 2018 first quarter was $45.9 million compared to $13.6 million for the prior-year period. The increase
in Adjusted EBITDA was driven primarily by the contribution from the American casino properties acquired in October 2017. Adjusted
EBITDA for the casino operations grew 6.1% when compared to Combined Adjusted EBITDA for the prior-year period including the
American properties, while Adjusted EBITDA for the distributed gaming operations declined 0.8% for the first quarter. Total
Adjusted EBITDA was up 9.2% when compared to Combined Adjusted EBITDA for the prior-year period including the American
properties.
Balance Sheet and Liquidity
As of March 31, 2018, the Company had cash and cash equivalents of approximately $134 million and total outstanding debt of
approximately $1 billion. There were no outstanding borrowings under the Company’s $100 million revolving credit facility. Our cash
balance includes approximately $25 million raised from our follow on equity offering in January 2018, which we intend to use for
potential future strategic opportunities.
Charles H. Protell, Chief Strategy Officer and Chief Financial Officer, commented, “During the first quarter, we generated cash
from operations of approximately $25 million after maintenance capital expenditures of $5 million. In addition, we funded
approximately $5 million of growth capital initiatives including opening two taverns and renovating 110 rooms at Rocky Gap. We
anticipate continuing to fund our remaining 2018 capital expenditures from operating cash flow and expect to end the year with a
net leverage ratio (debt less cash to 2018 Adjusted EBITDA) between 4.5x to 4.75x. The Company is actively evaluating additional
opportunities to expand our casino and distributed gaming businesses in an accretive manner. We will continue to manage our capital
structure to provide the right balance of leverage and liquidity to maintain flexibility to act on opportunities that can create
value for shareholders.”
Investor Conference Call and Webcast
The Company will host a webcast and conference call today, May 9, 2018 at 5:00 p.m. Eastern Time, to discuss the first quarter
2018 results. The conference call may be accessed live by dialing (844) 465-3054 or (480) 685-5227 for international callers and
entering the passcode 5456016. A replay will be available beginning at 8:00 p.m. ET on May 9, 2018 and may be accessed by dialing
(855) 859-2056 or (404) 537-3406 for international callers; the passcode is 5456016. The replay will be available until May 12,
2018. 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.
If you have questions about Golden Entertainment or are interested in conducting a conference call with Golden Entertainment
management, please contact JCIR at (212) 835-8500 or gden@jcir.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our 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. Forward-looking statements in this press release include, without limitation, statements regarding: the benefits
of and realization of cost synergies from the American transaction; estimated future financial and operating results and future net
leverage ratio; proposed future capital expenditures, investments and property improvements, including the Stratosphere
redevelopment plan, and their associated timing, source of funding and cost; and the Company’s plans, strategic priorities,
objectives, expectations, intentions, including with respect to its growth prospects and growth opportunities and potential
acquisitions. Forward-looking statements are based on our current expectations and assumptions regarding the Company’s 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 actual results to differ materially include: the Company’s ability to realize
the anticipated cost savings, synergies and other benefits of the American transaction and its other acquisitions, and integration
risks relating to such transactions; changes in national, regional and local economic, political 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; the Company’s ability
to renew its distributed gaming contracts; reliance on key personnel (including the Company’s Chief Executive Officer, Chief
Operating Officer and Chief Strategy and Financial Officer); the level of the Company’s indebtedness and 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 Annual Report
on Form 10-K for the year ended December 31, 2017 and most recent 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, Combined Revenues and Combined Adjusted EBITDA, which measures
the Company believes are appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the
Company’s past financial performance and prospects for the future. The Company believes Adjusted EBITDA and Combined Adjusted
EBITDA provide useful information to both management and investors by excluding specific expenses and gains that the Company
believes are not indicative of core operating results. Further, Adjusted EBITDA is a measure of operating performance used by
management, as well as industry analysts, to evaluate operations and operating performance and is widely used in the gaming
industry. Other companies in the gaming industry may calculate Adjusted EBITDA differently than the Company does.
Combined Revenues and Combined Adjusted EBITDA represent historical revenues and Adjusted EBITDA of American (for periods prior
to the American acquisition) and Golden on a combined basis, as if the American acquisition had occurred on the first day of the
period presented. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma
presentations; however, the Company has included these combined results because it believes they provide a meaningful comparison
for the periods presented. All combined financial information is unaudited and does not include any pro forma adjustments to
reflect the American acquisition and related transactions. The combined financial information has been prepared by the Company’s
management for illustrative purposes only and does not purport to be indicative of what its results of operations, financial
condition or other financial information would have been if the American acquisition and related transactions had occurred at the
beginning of the period presented. In addition, the combined financial information does not reflect non-recurring charges incurred
in connection with the American acquisition, nor any cost savings and synergies expected to result from the American acquisition
(and associated costs to achieve such savings or synergies), nor any costs associated with severance, restructuring or integration
activities resulting from the American acquisition.
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. Reconciliations of Adjusted EBITDA and Combined Adjusted EBITDA to net
income (loss) are provided in the financial information tables below. Additionally, a reconciliation of Combined Revenues to
revenues is provided in the financial information tables below.
The Company defines “Adjusted EBITDA” as earnings before interest and other non-operating income (expense), income taxes,
depreciation and amortization, acquisition expenses, loss on disposal of property and equipment, share-based compensation expenses,
preopening expenses, class action litigation expenses, executive severance, gain on change in fair value of derivative, and other
gains and losses. Adjusted EBITDA for a particular segment or operation is Adjusted EBITDA before corporate overhead, which is not
allocated to each segment or operation.
About Golden Entertainment, Inc.
Golden Entertainment, Inc. owns and operates gaming properties across two divisions – resort casino operations and distributed
gaming. The Company operates approximately 16,000 gaming devices, 116 table games, 5,168 hotel rooms, and provides jobs for over
7,000 team members. Golden Entertainment owns eight resort casinos – seven in Southern Nevada and one in Maryland. Through its
distributed gaming business in Nevada and Montana, Golden Entertainment operates slot machines at over 1,000 locations and owns
nearly 60 traditional taverns in Nevada. The Company is licensed in Illinois to operate video gaming terminals. Golden
Entertainment is focused on maximizing the value of its portfolio by leveraging its scale, leadership position and proven
management capabilities across its two divisions. For more information, visit www.goldenent.com.
Golden Entertainment, Inc.
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2018 |
|
2017((1))
|
Revenues |
|
|
|
|
|
|
|
Gaming |
|
|
$ |
133,863 |
|
|
$ |
86,179 |
|
Food and beverage |
|
|
|
42,603 |
|
|
|
14,872 |
|
Rooms |
|
|
|
26,065 |
|
|
|
1,488 |
|
Other |
|
|
|
12,258 |
|
|
|
3,344 |
|
Total revenues |
|
|
|
214,789 |
|
|
|
105,883 |
|
Expenses |
|
|
|
|
|
|
|
Gaming |
|
|
|
77,688 |
|
|
|
58,996 |
|
Food and beverage |
|
|
|
33,592 |
|
|
|
13,013 |
|
Rooms |
|
|
|
11,565 |
|
|
|
473 |
|
Other operating |
|
|
|
3,996 |
|
|
|
3,277 |
|
Selling, general and administrative |
|
|
|
44,393 |
|
|
|
17,982 |
|
Depreciation and amortization |
|
|
|
25,237 |
|
|
|
6,552 |
|
Acquisition expenses |
|
|
|
1,112 |
|
|
|
— |
|
Preopening expenses |
|
|
|
448 |
|
|
|
272 |
|
Loss on disposal of property and equipment |
|
|
|
77 |
|
|
|
— |
|
Total expenses |
|
|
|
198,108 |
|
|
|
100,565 |
|
Operating income |
|
|
|
16,681 |
|
|
|
5,318 |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(14,743 |
) |
|
|
(1,683 |
) |
Change in fair value of derivative |
|
|
|
3,211 |
|
|
|
— |
|
Total non-operating expense, net |
|
|
|
(11,532 |
) |
|
|
(1,683 |
) |
Income before income tax benefit (provision) |
|
|
|
5,149 |
|
|
|
3,635 |
|
Income tax benefit (provision) |
|
|
|
(1,219 |
) |
|
|
1,707 |
|
Net income |
|
|
$ |
3,930 |
|
|
$ |
5,342 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
|
|
27,149 |
|
|
|
22,238 |
|
Dilutive impact of stock options and restricted stock units |
|
|
|
2,379 |
|
|
|
529 |
|
Diluted |
|
|
|
29,528 |
|
|
|
22,767 |
|
Net income per share |
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.14 |
|
|
$ |
0.24 |
|
Diluted |
|
|
$ |
0.13 |
|
|
$ |
0.23 |
|
___________________ |
(1) |
|
Prior-period information has been recast for the adoption of Accounting Standards Codification Topic
606 (ASC 606), Revenue from Contracts with Customers, which the Company adopted effective January 1, 2018, utilizing
the full retrospective transition method.
|
|
|
|
Golden Entertainment, Inc.
Consolidated Balance Sheets
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
March 31, 2018 |
|
December 31, 2017 (1) |
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
133,694 |
|
|
$ |
90,579 |
|
Accounts receivable, net |
|
|
14,046 |
|
|
|
14,692 |
|
Prepaid expenses |
|
|
16,848 |
|
|
|
19,397 |
|
Inventories |
|
|
5,363 |
|
|
|
5,594 |
|
Other |
|
|
2,032 |
|
|
|
2,817 |
|
Total current assets |
|
|
171,983 |
|
|
|
133,079 |
|
Property and equipment, net |
|
|
883,978 |
|
|
|
895,241 |
|
Goodwill |
|
|
158,134 |
|
|
|
158,134 |
|
Intangible assets, net |
|
|
153,302 |
|
|
|
157,692 |
|
Deferred income taxes |
|
|
7,414 |
|
|
|
7,787 |
|
Other assets |
|
|
16,127 |
|
|
|
13,242 |
|
Total assets |
|
$ |
1,390,938 |
|
|
$ |
1,365,175 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
9,235 |
|
|
$ |
9,759 |
|
Accounts payable |
|
|
16,380 |
|
|
|
19,470 |
|
Accrued taxes, other than income taxes |
|
|
7,471 |
|
|
|
6,664 |
|
Accrued payroll and related |
|
|
19,454 |
|
|
|
22,570 |
|
Accrued liabilities |
|
|
21,635 |
|
|
|
20,373 |
|
Total current liabilities |
|
|
74,175 |
|
|
|
78,836 |
|
Long-term debt, net |
|
|
962,305 |
|
|
|
963,200 |
|
Other long-term obligations |
|
|
3,163 |
|
|
|
3,226 |
|
Total liabilities |
|
|
1,039,643 |
|
|
|
1,045,262 |
|
Shareholders' equity |
|
|
|
|
|
|
Common stock, $.01 par value; authorized 100,000 shares; 27,388 and 26,413 common
shares issued and outstanding, respectively |
|
|
274 |
|
|
|
264 |
|
Additional paid-in capital |
|
|
426,952 |
|
|
|
399,510 |
|
Accumulated deficit |
|
|
(75,931 |
) |
|
|
(79,861 |
) |
Total shareholders' equity |
|
|
351,295 |
|
|
|
319,913 |
|
Total liabilities and shareholders' equity |
|
$ |
1,390,938 |
|
|
$ |
1,365,175 |
|
___________________ |
(1) |
|
Prior-period information has been recast for the adoption of Accounting Standards Codification Topic
606 (ASC 606), Revenue from Contracts with Customers, which the Company adopted effective January 1, 2018, utilizing
the full retrospective transition method.
|
|
|
|
|
|
Golden Entertainment, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Unaudited, in thousands)
|
|
|
|
|
|
Three Months Ended March 31, 2018 |
|
|
Casino Segment |
|
Distributed Gaming Segment |
|
|
|
|
|
|
|
|
Nevada Casinos |
|
Maryland Casino |
|
Nevada Distributed Gaming |
|
Montana Distributed Gaming |
|
Corporate
and Other
|
|
Consolidated |
Net income (loss) |
|
$ |
21,140 |
|
$ |
2,701 |
|
$ |
6,823 |
|
$ |
625 |
|
$ |
(27,359 |
) |
|
$ |
3,930 |
|
Depreciation and amortization |
|
|
18,609 |
|
|
1,026 |
|
|
3,780 |
|
|
1,368 |
|
|
454 |
|
|
|
25,237 |
|
Acquisition expenses |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,112 |
|
|
|
1,112 |
|
Loss on disposal of property and equipment |
|
|
62 |
|
|
- |
|
|
5 |
|
|
10 |
|
|
- |
|
|
|
77 |
|
Share-based compensation |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,844 |
|
|
|
1,844 |
|
Preopening expenses |
|
|
- |
|
|
- |
|
|
148 |
|
|
- |
|
|
300 |
|
|
|
448 |
|
Class action litigation expenses |
|
|
13 |
|
|
- |
|
|
- |
|
|
- |
|
|
104 |
|
|
|
117 |
|
Executive severance |
|
|
51 |
|
|
- |
|
|
35 |
|
|
- |
|
|
101 |
|
|
|
187 |
|
Other, net |
|
|
24 |
|
|
- |
|
|
167 |
|
|
- |
|
|
- |
|
|
|
191 |
|
Interest expense, net |
|
|
22 |
|
|
2 |
|
|
44 |
|
|
2 |
|
|
14,673 |
|
|
|
14,743 |
|
Change in fair value of derivative |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(3,211 |
) |
|
|
(3,211 |
) |
Income tax provision |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,219 |
|
|
|
1,219 |
|
Adjusted EBITDA |
|
$ |
39,921 |
|
$ |
3,729 |
|
$ |
11,002 |
|
$ |
2,005 |
|
$ |
(10,763 |
) |
|
$ |
45,894 |
|
|
|
|
|
|
Three Months Ended March 31, 2017 |
|
|
Casino Segment |
|
Distributed Gaming Segment |
|
|
|
|
|
|
|
|
Nevada Casinos |
|
Maryland Casino |
|
Nevada Distributed Gaming |
|
Montana Distributed Gaming |
|
Corporate
and Other
|
|
Consolidated |
Net income (loss) |
|
$ |
2,046 |
|
$ |
2,681 |
|
$ |
7,529 |
|
$ |
692 |
|
$ |
(7,606 |
) |
|
$ |
5,342 |
|
Depreciation and amortization |
|
|
844 |
|
|
727 |
|
|
3,345 |
|
|
1,289 |
|
|
347 |
|
|
|
6,552 |
|
Share-based compensation |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,427 |
|
|
|
1,427 |
|
Preopening expenses |
|
|
- |
|
|
- |
|
|
85 |
|
|
124 |
|
|
63 |
|
|
|
272 |
|
Interest expense, net |
|
|
1 |
|
|
3 |
|
|
41 |
|
|
1 |
|
|
1,637 |
|
|
|
1,683 |
|
Income tax benefit |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,707 |
) |
|
|
(1,707 |
) |
Adjusted EBITDA |
|
$ |
2,891 |
|
$ |
3,411 |
|
$ |
11,000 |
|
$ |
2,106 |
|
$ |
(5,839 |
) |
|
$ |
13,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Entertainment, Inc.
Supplemental Combined Financial Information
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Three Months Ended |
|
March 31, 2017 |
|
|
|
|
|
|
March 31, 2018 |
|
Golden |
|
American |
|
Combined |
|
% Change |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Casinos |
|
$ |
115,667 |
|
|
$ |
9,093 |
|
|
$ |
104,852 |
|
|
$ |
113,945 |
|
|
|
1.5 |
% |
Maryland Casino |
|
|
14,820 |
|
|
|
15,198 |
|
|
|
- |
|
|
|
15,198 |
|
|
|
(2.5 |
%) |
Total Casinos |
|
|
130,487 |
|
|
|
24,291 |
|
|
|
104,852 |
|
|
|
129,143 |
|
|
|
1.0 |
% |
Nevada Distributed Gaming |
|
|
68,734 |
|
|
|
66,687 |
|
|
|
- |
|
|
|
66,687 |
|
|
|
3.1 |
% |
Montana Distributed Gaming |
|
|
15,427 |
|
|
|
14,827 |
|
|
|
- |
|
|
|
14,827 |
|
|
|
4.0 |
% |
Total Distributed Gaming |
|
|
84,161 |
|
|
|
81,514 |
|
|
|
- |
|
|
|
81,514 |
|
|
|
3.2 |
% |
Corporate and other |
|
|
141 |
|
|
|
78 |
|
|
|
36 |
|
|
|
114 |
|
|
|
23.7 |
% |
Total revenues |
|
$ |
214,789 |
|
|
$ |
105,883 |
|
|
$ |
104,888 |
|
|
$ |
210,771 |
|
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
3,930 |
|
|
$ |
5,342 |
|
|
$ |
18,745 |
|
|
$ |
24,087 |
|
|
|
(83.7 |
%) |
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
25,237 |
|
|
|
6,552 |
|
|
|
7,074 |
|
|
|
13,626 |
|
|
|
85.2 |
% |
Acquisition expenses |
|
|
1,112 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Loss on disposal of property and equipment |
|
|
77 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Share-based compensation |
|
|
1,844 |
|
|
|
1,427 |
|
|
|
- |
|
|
|
1,427 |
|
|
|
29.2 |
% |
Preopening expenses |
|
|
448 |
|
|
|
272 |
|
|
|
- |
|
|
|
272 |
|
|
|
64.7 |
% |
Class action litigation expenses |
|
|
117 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Executive severance |
|
|
187 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Other, net |
|
|
191 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Interest expense, net |
|
|
14,743 |
|
|
|
1,683 |
|
|
|
2,652 |
|
|
|
4,335 |
|
|
|
240.1 |
% |
Change in fair value of derivative |
|
|
(3,211 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
Income tax (benefit) provision |
|
|
1,219 |
|
|
|
(1,707 |
) |
|
|
- |
|
|
|
(1,707 |
) |
|
|
(171.4 |
%) |
Adjusted EBITDA |
|
$ |
45,894 |
|
|
$ |
13,569 |
|
|
$ |
28,471 |
|
|
$ |
42,040 |
|
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada Casinos |
|
$ |
39,921 |
|
|
$ |
2,891 |
|
|
$ |
34,856 |
|
|
$ |
37,747 |
|
|
|
5.8 |
% |
Maryland Casino |
|
|
3,729 |
|
|
|
3,411 |
|
|
|
- |
|
|
|
3,411 |
|
|
|
9.3 |
% |
Total Casinos |
|
|
43,650 |
|
|
|
6,302 |
|
|
|
34,856 |
|
|
|
41,158 |
|
|
|
6.1 |
% |
Nevada Distributed Gaming |
|
|
11,002 |
|
|
|
11,000 |
|
|
|
- |
|
|
|
11,000 |
|
|
|
0.0 |
% |
Montana Distributed Gaming |
|
|
2,005 |
|
|
|
2,106 |
|
|
|
- |
|
|
|
2,106 |
|
|
|
(4.8 |
%) |
Total Distributed Gaming |
|
|
13,007 |
|
|
|
13,106 |
|
|
|
- |
|
|
|
13,106 |
|
|
|
(0.8 |
%) |
Corporate and other |
|
|
(10,763 |
) |
|
|
(5,839 |
) |
|
|
(6,385 |
) |
|
|
(12,224 |
) |
|
|
(12.0 |
%) |
Adjusted EBITDA |
|
$ |
45,894 |
|
|
$ |
13,569 |
|
|
$ |
28,471 |
|
|
$ |
42,040 |
|
|
|
9.2 |
% |
Investor Relations
JCIR
Joseph Jaffoni, Richard Land, James Leahy
212/835-8500
gden@jcir.com
or
Media Relations
Golden Entertainment, Inc.
Howard Stutz, 702-495-4490
Director Corporate Communications
hstutz@goldenent.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180509006236/en/