Golden Entertainment reported second quarter revenue of $167.3 million and adjusted earnings of $41.2 million compared to revenues of $286.7 million and adjusted earnings of $58.4 million for the second quarter of 2023.
The declines 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 July 25, 2023, September 13, 2023, and January 10, 2024, respectively, the company reported.
Net income for the second quarter 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.
“In the second quarter, we continued to strengthen our balance sheet by fully repaying our outstanding bonds in April and reducing our interest rate on our term loan in May,” said Blake Sartini, chairman and CEO of Golden. “We also aggressively returned capital to shareholders through our recurring dividend and repurchasing nearly one million shares. Our healthy operating cash flow and strong balance sheet will continue to provide us with strategic and financial flexibility, while we return capital to shareholders throughout the year.”
The company paid its first and second quarterly cash dividends in the amount of $7.2 million and $7.1 million on April 4 and July 2, respectively. On August 6, 2024, the company’s Board of Directors authorized the company’s third recurring quarterly cash dividend of $0.25 per share of the company’s outstanding common stock payable on October 2, 2024, to shareholders of record as of September 17, 2024.
In addition, the company repurchased 989,117 shares of its common stock during the quarter at an average price of $29.85 per share for a total amount of $29.5 million. As of June 30, the company had $61.4 million of availability remaining under its share repurchase authorization, the company announced.
On April 15, the company redeemed and repaid in full all of its senior unsecured notes in the amount of $287 million, consisting of $276.5 million in principal and $10.5 million in accrued and unpaid interest. On May 29, the company repriced its $396 million term loan, which reduced the annual interest rate on the term loan by 60 basis points.
As of June 30, Golden’s total principal amount of debt outstanding was $400.7 million, consisting primarily of $396 million in outstanding term-loan borrowings.
As of June 30, the company had cash and cash equivalents of $88.6 million. There continue to be no outstanding borrowings under the company’s $240 million revolving credit facility.
