Golden Entertainment on Wednesday reported first-quarter revenue of $174 million and adjusted EBITDA of $41 million. The 2024 numbers compare with revenue of $278.1 million and adjusted EBITDA of $62.2 million for the first quarter of 2023.
The company said both declines were primarily related to the exclusion of 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.
Net income for the first quarter was $42 million or $1.37 per fully diluted share compared to $11.6 million or $0.38 per fully diluted share for the first quarter of 2023. Net income and diluted earnings per share for this year’s first quarter include the benefit of the $69.7 million gain on the sale of distributed-gaming operations in Nevada to an affiliate of J&J Ventures Gaming for cash consideration of $213.5 million, plus $37.5 million of purchased cash. Golden incurred $2 million in transaction costs for that sale.
“We started 2024 by completing the sale of our non-core assets and simplifying our capital structure,” said Blake Sartini, chairman and CEO of Golden. “In January, we completed the sale of our Nevada distributed-gaming operations and in April used those proceeds to fully repay our outstanding bonds. As a result, we now have a Nevada portfolio of eight casinos with owned real estate and 71 gaming taverns, with our operations focused in markets where we see long-term drivers of future growth. In addition, with our debt reduced significantly, our low leverage provides us with the flexibility to invest in our own assets, return capital to shareholders, and pursue strategic opportunities.”
As of March 31, the company’s total principal amount of debt outstanding was $678.7 million, consisting primarily of $397 million in outstanding term-loan borrowings and $276.5 million of senior unsecured notes. On April 15, the company redeemed and repaid in full all of its senior unsecured notes, thereby reducing its total principal amount of debt outstanding to $402.2 million.
As of March 31, 2024, the company had cash and cash equivalents of $404.3 million, which included the $287 million of cash used to fully redeem the outstanding senior unsecured notes plus accrued interest. There are outstanding borrowings under the company’s $240 million revolving credit facility.
In addition, on May 2, Golden’s board of directors declared the company’s recurring quarterly cash dividend of $0.25 per share of common stock, payable on July 2 to shareholders of record as of June 14. The company paid its first quarterly dividend in the amount of $7.2 million on April 4.
