Golden Entertainment achieved its second consecutive year with a total annual revenue of $1bn. This was after the 2022 financial year.
Chairman and CEO Blake Sartini noted that the company plans to sell its Rocky Gap Casino Resort by the end of the second quarter in 2023. However, its fourth quarter performance was below 2019 levels but lower than the previous year because of costs.
Golden Entertainment Q4 solid
Golden Entertainment published its Q4 results. It reported a 0.8% decline in revenue year-over-year to $279.7m. (Q4 2021, $282m). However, it is higher than 2019’s $242.1m. Gaming revenue declined by 3.22 percent to $185m (2021, $191.2m).
The company’s operating income grew by 2.7% YoY to $35.4m (from $34.5m in 2021), while net income dropped by 42.1 percent to $11.1m (2021) and adjusted EBITDA was $63.7m. This is a six percentage point decrease from the $67.8m figure in 2021.
Based on their location, Golden Entertainment’s Nevada casino resorts – The STRAT Hotel and Casino & SkyPod and Aquarius Casino Resort – earned $104.2m (2021 : $104.5m) with an adjusted EBITDA (322.5m (2021 : $36.6m).
Distributed Gaming Operations in Nevada and Montana were next with $90.3m in Revenue (2008: $89.9m), and an adjusted EBITDA (10.7m (2021)).
Nevada’s local casinos – Arizona Charlie’s Boulder and Arizona Charlie’s Decatur – reported $40.1m revenue (2021: $39.7m), and adjusted EBITDA (2021: $18.8m).
Nevada Taverns, which is comprised of 64 branded taverns, has reported $26.9m in revenues (2021: $28.4m), and an adjusted EBITDA (7.9m (2021 : $9.8m).
Golden Entertainment’s Maryland casino resort – Rocky Gap casino resort reported $17.9m revenue (2021: $19.2m), and an adjusted EBITDA (2121: $5.9m)
The company entered into definitive agreements to buy Rocky Gap Casino Resort in the third quarter of 2022. It expects to close the transaction in the second quarter of 2023. Sartini noted that this will provide meaningful liquidity which, together with our free cash flow, will allow us to keep low leverage, invest our properties and accelerate capital returns for shareholders.
He stated that “our fourth quarter demonstrated strong financial performance, which remains well above 2019, while higher labour costs affected the comparison to last years’s fourth quarter results.”
An additional $1bn in revenue for the year
Golden Entertainment reported $1.12bn revenue for the year, an increase of 2.3% YoY (2021: $1.1bn). Gaming revenue grew by 3.07 percent to $428.9m (2021 : $416.2m).
Operating income for 2022 was $147.9m. This is down 10.9 percent (2021: $166m), net Income fell by 49% to $82.3m (2021; $161.8m), while adjusted EBITDA dropped 8.4% to $267.1m (2021 – $291.7m).
Geographically, Nevada casino resorts topped the list with $407 million in revenue (2021 – $389.7m) & an adjusted EBITDA (21 – $149.1m) followed by distributed gaming which had $365.5m revenue (2021 – $357.4m) & an adjusted EBITDA (44m 2021 : $47.5m).
Next was Nevada taverns with $110m revenue (2021 : $110.2m), and an adjusted EBITDA (337.6m 2021 : $39.8m). Maryland Casino Resort had $78m revenue (2021 : $78.2m) with an adjusted EBITDA (25.4m vs. $26.7m).
Sartini stated that “For the second year in a row, our total annual revenues exceeded $1bn. Our operating discipline continues to support our significant margin improvement which has led to a 45% increase in adjusted EBITDA for the full year compared to 2019.
“Our business trends for this year are positive, and we anticipate capitalising upon the strength of Las Vegas by 2023 and beyond.”
Golden Entertainment paid $25m off its term loan outstanding and purchased $2m of its senior secured notes. This brings the total debt repaid by Golden Entertainment to $116m in 2022.
