Golden Entertainment Reports 2018 Third Quarter Results
November 8, 2018
Third Quarter Highlights:
–
Strong Laughlin and Las Vegas Locals Property Performance
–
Stratosphere Renovations and Capital Plan on Schedule and on Budget
–
Acquisition of Two Casino Resorts in Laughlin Anticipated to Close in Q1
2019
– Board of Directors Authorizes $25 Million Share
Repurchase Program
LAS VEGAS–(BUSINESS WIRE)–Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden Entertainment” or the
“Company”) today reported financial results for the third quarter ended
September 30, 2018. The Company also announced that its Board of
Directors has authorized the repurchase of up to $25 million of its
common stock.
Blake L. Sartini, Chairman and Chief Executive Officer of Golden
Entertainment, commented, “Despite strong performance from our Laughlin
and Las Vegas Locals properties, we experienced a challenging third
quarter primarily due to weaker than expected results at the
Stratosphere and at chain store locations in our Nevada distributed
gaming business. We remain confident in the Company’s long-term
prospects given the overall health of the Las Vegas economy, the
expected benefits from our investments in the Stratosphere, anticipated
near-term improvements with our Nevada distributed business and our
pending acquisition of two additional casino resorts in Laughlin.”
Mr. Sartini continued, “We are seeing improving trends early in the
fourth quarter and expect stronger performance in 2019, particularly at
the Stratosphere following the renovation of over 750 rooms and the
opening of our new sports book, lounge, and tap room concept. We also
expect the closing of the acquisition of the Edgewater and Colorado
Belle Resorts to solidify our market leading position in Laughlin and be
immediately accretive to our free cash flow. Golden Entertainment
remains well-positioned for future growth from these opportunities, as
well as the expected addition of six new wholly-owned taverns over the
next twelve months and the integration of our player database with a
one-card solution across both our casino and distributed gaming
businesses.
“Based on the belief that our prospects to create long-term shareholder
value are not reflected in our current valuation, our Board has
authorized an initial $25 million share repurchase program.”
The Company reported third quarter revenues of $210.3 million, up from
$107.7 million in the third quarter of 2017. Net loss for the third
quarter of 2018 was $3.1 million or a loss of ($0.11) per diluted share,
compared to net income of $8.6 million or earnings of $0.36 per diluted
share in the third quarter of 2017. Adjusted EBITDA was $38.1 million
for the third quarter compared to $15.1 million for the third quarter of
2017. Adjusted EBITDA was down 7.1%, when compared to Pro Forma Combined
Adjusted EBITDA of $41.0 million for the third quarter of 2017, which
includes the results of American Casino & Entertainment Properties, LLC
(“American”). American was acquired in October 2017.
Casinos
Casino segment revenues grew to $128.8 million in the third quarter of
2018 compared to $27.4 million in the third quarter of 2017. Including
the results of American, Pro Forma Combined Revenues would have been
$134.3 million in the third quarter of 2017. Casino segment Adjusted
EBITDA grew to $37.7 million compared to $8.9 million in the same
quarter of 2017. Adjusted EBITDA declined 7.7% when compared to the
segment Pro Forma Combined Adjusted EBITDA of $40.8 million for the
third quarter of 2017, which includes the results of American.
For our Nevada Casinos, third quarter revenues were $110.1 million, down
from $115.6 million compared to Pro Forma Combined Revenues in the prior
year period, which includes the results of American, while Adjusted
EBITDA of $31.5 million was down 8.8% from Pro Forma Combined Adjusted
EBITDA of $34.5 million for the segment in the prior year period. The
decline was primarily due to weaker than expected performance at
Stratosphere partially offset by strength in both our Laughlin and Las
Vegas Locals properties.
Our Rocky Gap Resort in Maryland generated revenue of $18.8 million in
the quarter, while Adjusted EBITDA declined 1.6% to $6.2 million,
compared to the prior year period.
Distributed Gaming
Distributed Gaming segment revenues increased to $81.2 million, up 1.3%
from $80.1 million in the third quarter of 2017. Adjusted EBITDA
declined 6.8% to $10.4 million from $11.2 million in the same period of
2017.
In our Nevada distributed gaming business, total revenues during the
third quarter were $65.5 million, a year-over-year increase of 0.4%.
Adjusted EBITDA of $8.4 million was down 8.2% compared to the same
period last year as EBITDA growth in our wholly-owned tavern portfolio
continued to be offset by weaker performance from our chain store
locations.
Our Montana distributed gaming business generated revenues of $15.7
million in the third quarter, an increase of 5.4% compared to last year.
Adjusted EBITDA for the Montana distributed gaming business was $2.0
million for the third quarter, flat to the prior year.
Stratosphere Renovations Update
Stratosphere renovations began in May 2018, including room renovations,
the installation of state-of-the-art exterior signage and lighting, as
well as the addition of a unique tap room concept connected to a newly
renovated sports book and lounge that will be completed in the first
quarter of 2019. By the end of 2018, the renovation of 317 rooms will be
completed. The Company plans on renovating over 450 additional rooms in
2019 as well as additional food and beverage outlets and a portion of
the casino.
Golden Entertainment’s total budget for the Stratosphere renovations
continues to be $140 million, with the full project expected to be
completed in 2021. When complete, the Stratosphere will have remodeled
1,133 of 2,429 rooms, refreshed the interior and exterior of the
property, provided guests with new premium food and beverage outlets and
added attractive group meeting space. As of September 30, 2018 the
Company had spent approximately $17 million on Stratosphere renovations.
Balance Sheet & Liquidity
As of September 30, 2018, the Company had cash and cash equivalents of
approximately $132.4 million and total outstanding debt of approximately
$999.7 million, and the Company’s net leverage ratio (total debt less
cash to Adjusted EBITDA for the 12 months ended September 30, 2018) was
5.3x. There continues to be no outstanding borrowings under the
Company’s revolving credit facility which, today, was upsized to $200
million.
Share Repurchase Authorization
The Board of Directors has authorized the Company to repurchase up to
$25 million shares of common stock, subject to available liquidity,
general market and economic conditions, alternate uses for the capital
and other factors. Share repurchases may be made from time to time in
open market transactions, block trades or in private transactions in
accordance with applicable securities laws and regulations and other
legal requirements, including compliance with the Company’s finance
agreements. There is no minimum number of shares that the Company is
required to repurchase and the repurchase program may be suspended or
discontinued at any time without prior notice.
Investor Conference Call and Webcast
The Company will host a webcast and conference call today, November 8,
2018 at 4:30 p.m. Eastern Time, to discuss the third 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 7967628. A replay will be available beginning at 8:00 p.m. ET
on November 8, 2018 and may be accessed by dialing (855) 859-2056 or
(404) 537-3406 for international callers; the passcode is 7967628. The
replay will be available until November 11, 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.
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 pending Laughlin acquisition and the expected timing of the closing
thereof; the benefits of and realization of cost synergies from the
American and Laughlin transactions; 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 anticipated opening of new tavern
locations, 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 failure of our pending
Laughlin acquisition to close as anticipated; the Company’s ability to
realize the anticipated cost savings, synergies and other benefits of
the American and Laughlin transactions 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, Pro Forma
Combined Revenues, Pro Forma Combined Net Income and Pro Forma 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 Pro Forma
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.
Pro Forma Combined Revenues, Pro Forma Combined Net Income and Pro Forma
Combined Adjusted EBITDA represent historical revenues, net income and
Adjusted EBITDA of American (for periods prior to the American
acquisition) and Golden on a pro forma combined basis, as if the
American acquisition had occurred on the first day of the period
presented. All pro forma combined financial information is unaudited.
The pro forma 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 pro forma 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 to net income (loss) are provided in the financial
information tables below. Additionally, a reconciliation of Pro Forma
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, 121 table games,
5,164 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 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. On July 16, 2018, the Company
announced that it entered into an acquisition agreement for the
Edgewater Hotel & Casino Resort and the Colorado Belle Hotel & Casino
Resort in Laughlin, Nevada, with the transaction expected to close in
the 2019 first quarter. For more information, visit www.goldenent.com.
|
Golden Entertainment, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except per share data) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2018 | 2017(1) | 2018 | 2017(1) | |||||||||||||
| Revenues | ||||||||||||||||
| Gaming | $ | 127,764 | $ | 86,644 | $ | 394,173 | $ | 262,079 | ||||||||
| Food and beverage | 41,999 | 15,169 | 128,024 | 45,061 | ||||||||||||
| Rooms | 28,104 | 2,237 | 81,737 | 5,646 | ||||||||||||
| Other | 12,470 | 3,610 | 37,735 | 10,642 | ||||||||||||
| Total revenues | 210,337 | 107,660 | 641,669 | 323,428 | ||||||||||||
| Expenses | ||||||||||||||||
| Gaming | 76,465 | 61,434 | 232,663 | 185,575 | ||||||||||||
| Food and beverage | 34,508 | 13,170 | 103,451 | 39,346 | ||||||||||||
| Rooms | 13,109 | 601 | 36,965 | 1,574 | ||||||||||||
| Other operating | 3,805 | 1,242 | 11,456 | 4,057 | ||||||||||||
| Selling, general and administrative | 47,479 | 19,439 | 135,858 | 56,334 | ||||||||||||
| Depreciation and amortization | 23,330 | 7,539 | 71,421 | 21,499 | ||||||||||||
| Acquisition expenses | 1,123 | 2,975 | 2,429 | 5,041 | ||||||||||||
| Preopening expenses | 21 | 282 | 858 | 1,128 | ||||||||||||
| Gain on contingent consideration | — | (1,719 | ) | — | (1,719 | ) | ||||||||||
| Loss on disposal of property and equipment | 774 | 308 | 1,069 | 308 | ||||||||||||
| Total expenses | 200,614 | 105,271 | 596,170 | 313,143 | ||||||||||||
| Operating income | 9,723 | 2,389 | 45,499 | 10,285 | ||||||||||||
| Non-operating income (expense) | ||||||||||||||||
| Interest expense, net | (16,291 | ) | (1,885 | ) | (47,100 | ) | (5,568 | ) | ||||||||
| Change in fair value of derivative | 1,222 | — | 5,895 | — | ||||||||||||
| Total non-operating expense, net | (15,069 | ) | (1,885 | ) | (41,205 | ) | (5,568 | ) | ||||||||
| Income (loss) before income tax benefit | (5,346 | ) | 504 | 4,294 | 4,717 | |||||||||||
| Income tax benefit | 2,222 | 8,051 | 106 | 10,893 | ||||||||||||
| Net income (loss) | $ | (3,124 | ) | $ | 8,555 | $ | 4,400 | $ | 15,610 | |||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Basic | 27,655 | 22,266 | 27,405 | 22,280 | ||||||||||||
| Dilutive impact of stock options and restricted stock units | — | 1,825 | 1,787 | 1,167 | ||||||||||||
| Diluted | 27,655 | 24,091 | 29,192 | 23,447 | ||||||||||||
| Net income (loss) per share | ||||||||||||||||
| Basic | $ | (0.11 | ) | $ | 0.38 | $ | 0.16 | $ | 0.70 | |||||||
| Diluted | $ | (0.11 | ) | $ | 0.36 | $ | 0.15 | $ | 0.67 | |||||||
|
|
___________________ |
|
| (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. Supplemental Pro Forma Combined Financial Information (Unaudited, in thousands) |
||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| September 30, 2017(1) | ||||||||||||||||||||
| Three Months Ended | Pro Forma | Pro Forma | ||||||||||||||||||
| September 30, 2018 | Golden | American | Adjustments | Combined | ||||||||||||||||
| Revenues | ||||||||||||||||||||
| Nevada Casinos | $ | 110,071 | $ | 8,676 | $ | 106,909 | $ | – | $ | 115,585 | ||||||||||
| Maryland Casino | 18,766 | 18,745 | – | – | 18,745 | |||||||||||||||
| Total Casinos | 128,837 | 27,421 | 106,909 | – | 134,330 | |||||||||||||||
| Nevada Distributed Gaming | 65,508 | 65,276 | – | – | 65,276 | |||||||||||||||
| Montana Distributed Gaming | 15,680 | 14,871 | – | – | 14,871 | |||||||||||||||
| Total Distributed Gaming | 81,188 | 80,147 | – | – | 80,147 | |||||||||||||||
| Corporate and other | 312 | 92 | 56 | – | 148 | |||||||||||||||
| Total revenues | $ | 210,337 | $ | 107,660 | $ | 106,965 | $ | – | $ | 214,625 | ||||||||||
| Net income (loss) | $ | (3,124 | ) | $ | 8,555 | $ | 12,294 | $ | (6,966 | ) | $ | 13,883 | ||||||||
| Adjustments to net income (loss): | ||||||||||||||||||||
| Depreciation and amortization | 23,330 | 7,539 | 7,497 | 331 | 15,367 | |||||||||||||||
| Acquisition expenses | 1,123 | 2,975 | 287 | (3,262 | ) | – | ||||||||||||||
| Loss on disposal of property and equipment | 774 | 308 | 634 | – | 942 | |||||||||||||||
| Gain on contingent consideration | – | (1,719 | ) | – | – | (1,719 | ) | |||||||||||||
| Share-based compensation | 2,783 | 1,603 | 2,400 | (2,400 | ) | 1,603 | ||||||||||||||
| Preopening expenses | 21 | 282 | – | – | 282 | |||||||||||||||
| Class action litigation expenses | 219 | 1,530 | – | – | 1,530 | |||||||||||||||
| Executive severance and sign-on bonuses | 120 | 166 | 607 | (599 | ) | 174 | ||||||||||||||
| Other, net | 50 | – | – | – | – | |||||||||||||||
| Interest expense, net | 16,291 | 1,885 | 2,246 | 9,901 | 14,032 | |||||||||||||||
| Change in fair value of derivative | (1,222 | ) | – | – | – | – | ||||||||||||||
| Income tax benefit | (2,222 | ) | (8,051 | ) | – | 2,995 | (5,056 | ) | ||||||||||||
| Adjusted EBITDA | $ | 38,143 | $ | 15,073 | $ | 25,965 | $ | – | $ | 41,038 | ||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Nevada Casinos | $ | 31,501 | $ | 2,662 | $ | 31,869 | $ | – | $ | 34,531 | ||||||||||
| Maryland Casino | 6,165 | 6,266 | – | – | 6,266 | |||||||||||||||
| Total Casinos | 37,666 | 8,928 | 31,869 | – | 40,797 | |||||||||||||||
| Nevada Distributed Gaming | 8,375 | 9,125 | – | – | 9,125 | |||||||||||||||
| Montana Distributed Gaming | 2,033 | 2,044 | – | – | 2,044 | |||||||||||||||
| Total Distributed Gaming | 10,408 | 11,169 | – | – | 11,169 | |||||||||||||||
| Corporate and other | (9,931 | ) | (5,024 | ) | (5,904 | ) | – | (10,928 | ) | |||||||||||
| Adjusted EBITDA | $ | 38,143 | $ | 15,073 | $ | 25,965 | $ | – | $ | 41,038 | ||||||||||
| ___________________ | ||
| (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. |
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|
Golden Entertainment, Inc.
Supplemental Pro Forma Combined Financial Information (Unaudited, in thousands) |
||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||
| September 30, 2017(1) | ||||||||||||||||||||
| Nine Months Ended | Pro Forma | Pro Forma | ||||||||||||||||||
| September 30, 2018 | Golden | American | Adjustments | Combined | ||||||||||||||||
| Revenues | ||||||||||||||||||||
| Nevada Casinos | $ | 338,655 | $ | 26,602 | $ | 315,109 | $ | – | $ | 341,711 | ||||||||||
| Maryland Casino | 51,595 | 51,288 | – | – | 51,288 | |||||||||||||||
| Total Casinos | 390,250 | 77,890 | 315,109 | – | 392,999 | |||||||||||||||
| Nevada Distributed Gaming | 203,749 | 200,320 | – | – | 200,320 | |||||||||||||||
| Montana Distributed Gaming | 46,997 | 44,951 | – | – | 44,951 | |||||||||||||||
| Total Distributed Gaming | 250,746 | 245,271 | – | – | 245,271 | |||||||||||||||
| Corporate and other | 673 | 267 | 121 | – | 388 | |||||||||||||||
| Total revenues | $ | 641,669 | $ | 323,428 | $ | 315,230 | $ | – | $ | 638,658 | ||||||||||
| Net income | $ | 4,400 | $ | 15,610 | $ | 45,387 | $ | (29,246 | ) | $ | 31,751 | |||||||||
| Adjustments to net income: | ||||||||||||||||||||
| Depreciation and amortization | 71,421 | 21,499 | 21,929 | 1,301 | 44,729 | |||||||||||||||
| Acquisition expenses | 2,429 | 5,041 | 287 | (5,328 | ) | – | ||||||||||||||
| Loss on disposal of property and equipment | 1,069 | 308 | 607 | – | 915 | |||||||||||||||
| Gain on contingent consideration | – | (1,719 | ) | – | – | (1,719 | ) | |||||||||||||
| Share-based compensation | 7,385 | 5,352 | 2,400 | (2,400 | ) | 5,352 | ||||||||||||||
| Preopening expenses | 858 | 1,128 | – | – | 1,128 | |||||||||||||||
| Class action litigation expenses | 554 | 1,585 | – | – | 1,585 | |||||||||||||||
| Executive severance and sign-on bonuses | 678 | 166 | 649 | (599 | ) | 216 | ||||||||||||||
| Loss on extinguishment of debt | – | – | 881 | (881 | ) | – | ||||||||||||||
| Settlement expense | – | – | 800 | – | 800 | |||||||||||||||
| Other, net | 440 | – | 35 | – | 35 | |||||||||||||||
| Interest expense, net | 47,100 | 5,568 | 7,229 | 28,086 | 40,883 | |||||||||||||||
| Change in fair value of derivative | (5,895 | ) | – | – | – | – | ||||||||||||||
| Income tax benefit | (106 | ) | (10,893 | ) | – | 9,067 | (1,826 | ) | ||||||||||||
| Adjusted EBITDA | $ | 130,333 | $ | 43,645 | $ | 80,204 | $ | – | $ | 123,849 | ||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Nevada Casinos | $ | 107,946 | $ | 7,932 | $ | 98,027 | $ | – | $ | 105,959 | ||||||||||
| Maryland Casino | 15,552 | 14,232 | – | – | 14,232 | |||||||||||||||
| Total Casinos | 123,498 | 22,164 | 98,027 | – | 120,191 | |||||||||||||||
| Nevada Distributed Gaming | 30,015 | 31,402 | – | – | 31,402 | |||||||||||||||
| Montana Distributed Gaming | 6,242 | 6,351 | – | – | 6,351 | |||||||||||||||
| Total Distributed Gaming | 36,257 | 37,753 | – | – | 37,753 | |||||||||||||||
| Corporate and other | (29,422 | ) | (16,272 | ) | (17,823 | ) | – | (34,095 | ) | |||||||||||
| Adjusted EBITDA | $ | 130,333 | $ | 43,645 | $ | 80,204 | $ | – | $ | 123,849 | ||||||||||
| ___________________ | ||
| (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. |
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Golden Entertainment, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited, in thousands) |
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| Three Months Ended September 30, 2018 | ||||||||||||||||||||||||
|
Casino Segment |
Distributed Gaming |
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|
Nevada |
Maryland |
Nevada |
Montana |
Corporate |
Consolidated | |||||||||||||||||||
| Net income (loss) | $ | 13,929 | $ | 5,184 | $ | 4,614 | $ | 400 | $ | (27,251 | ) | $ | (3,124 | ) | ||||||||||
| Depreciation and amortization | 16,713 | 954 | 3,664 | 1,628 | 371 | 23,330 | ||||||||||||||||||
| Acquisition expenses | – | – | – | – | 1,123 | 1,123 | ||||||||||||||||||
| Loss on disposal of property and equipment | 770 | – | – | 4 | – | 774 | ||||||||||||||||||
| Share-based compensation | 12 | 25 | 3 | – | 2,743 | 2,783 | ||||||||||||||||||
| Preopening expenses | – | – | 73 | – | (52 | ) | 21 | |||||||||||||||||
| Class action litigation expenses | – | – | – | – | 219 | 219 | ||||||||||||||||||
| Executive severance | 54 | – | 1 | – | 65 | 120 | ||||||||||||||||||
| Other, net | – | – | – | – | 50 | 50 | ||||||||||||||||||
| Interest expense, net | 23 | 2 | 20 | 1 | 16,245 | 16,291 | ||||||||||||||||||
| Change in fair value of derivative | – | – | – | – | (1,222 | ) | (1,222 | ) | ||||||||||||||||
| Income tax benefit | – | – | – | – | (2,222 | ) | (2,222 | ) | ||||||||||||||||
| Adjusted EBITDA | $ | 31,501 | $ | 6,165 | $ | 8,375 | $ | 2,033 | $ | (9,931 | ) | $ | 38,143 | |||||||||||
|
Three Months Ended September 30, 2017 |
||||||||||||||||||||||||
| Casino Segment |
Distributed Gaming |
|||||||||||||||||||||||
|
Nevada |
Maryland |
Nevada |
Montana |
Corporate |
Consolidated | |||||||||||||||||||
| Net income (loss) | $ | 1,453 | $ | 5,233 | $ | 5,171 | $ | 2,346 | $ | (5,648 | ) | $ | 8,555 | |||||||||||
| Depreciation and amortization | 1,171 | 1,031 | 3,520 | 1,417 | 400 | 7,539 | ||||||||||||||||||
| Acquisition expenses | – | – | – | – | 2,975 | 2,975 | ||||||||||||||||||
| Loss (Gain) on disposal of property and equipment | 35 | – | 279 | (7 | ) | 1 | 308 | |||||||||||||||||
| Gain on contingent consideration | – | – | – | (1,719 | ) | – | (1,719 | ) | ||||||||||||||||
| Share-based compensation | – | – | – | – | 1,603 | 1,603 | ||||||||||||||||||
| Preopening expenses | – | – | 122 | (1 | ) | 161 | 282 | |||||||||||||||||
| Class action litigation expenses | – | – | – | – | 1,530 | 1,530 | ||||||||||||||||||
| Sign-on bonuses | – | – | – | – | 166 | 166 | ||||||||||||||||||
| Interest expense, net | 3 | 2 | 33 | 8 | 1,839 | 1,885 | ||||||||||||||||||
| Income tax benefit | – | – | – | – | (8,051 | ) | (8,051 | ) | ||||||||||||||||
| Adjusted EBITDA | $ | 2,662 | $ | 6,266 | $ | 9,125 | $ | 2,044 | $ | (5,024 | ) | $ | 15,073 | |||||||||||
Contacts
Golden Entertainment, Inc.
Charles H. Protell
Chief Financial
Officer
702/893-7777
or
Investor Relations
Joseph
Jaffoni, Richard Land, James Leahy
JCIR
212/835-8500 or
gden@jcir.com