Financial Data and Key Metrics Changes - The company generated revenue of $161 million and EBITDA of $34 million in Q3 2024, with total revenue declining 5% and consolidated EBITDA declining 21% compared to the previous year [6][7] - The third quarter was noted as a challenging period, particularly in July, due to record heat in Las Vegas affecting visitation [8] Business Line Data and Key Metrics Changes - For Nevada Casino Resorts, revenue declined 6% and EBITDA declined 20%, primarily due to performance at the STRAT, which saw a decrease in midweek occupancy by almost 6% [9] - Nevada Locals Casinos experienced a revenue decline of 7% and EBITDA decline of 15%, with increased seasonality and reduced spending from lower-tier customers [11] - Nevada tavern revenue declined 2% and EBITDA declined 29%, impacted by elevated operating expenses from new taverns and the minimum wage hike [12] Market Data and Key Metrics Changes - The company noted a decrease in visitation and revenue in Laughlin, but managed to increase market share and reduce operating expenses [10] - The STRAT's performance is expected to stabilize in Q4, with opportunities for growth in 2025 as midweek occupancy returns [10] Company Strategy and Development Direction - The company plans to continue share repurchases, increasing the buyback authorization by $100 million, totaling over $130 million available for buybacks [8][13] - The management believes in the long-term demographic and economic trends in Southern Nevada, indicating a focus on acquiring equity and evaluating strategic opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management views Q3 as the lowest financial performance for the portfolio, with positive trends expected in October and beyond [8] - The management anticipates stabilization in revenues and cost structures across various assets, with a focus on improving margins [22][24] Other Important Information - The company has repaid over $500 million of debt and returned nearly $150 million to shareholders through share repurchases and dividends [13] - The STRAT is expected to face challenges due to a new culinary union contract, impacting its margin stability [22] Q&A Session Summary Question: Insights on M&A environment and sale-leaseback model - Management noted a disconnect between buyers and sellers in the M&A landscape, with a conservative approach to EBITDA projections [16][51] Question: Impact of elections on consumer behavior - Management observed that consumers tend to pull back on spending before and shortly after major elections, which may have affected performance [19] Question: Margin stability and opportunities in Q4 - Management indicated that most assets are expected to stabilize, with the STRAT being the exception due to labor costs [22][24] Question: Future of Atomic Golf and adjacent property development - Management is optimistic about Atomic Golf and is exploring potential developments on adjacent land to drive traffic [30][31] Question: Tavern expansion plans - The company plans to add 1 to 2 new taverns next year, focusing on ground-up development rather than acquisitions [41][42] Question: Dividend strategy moving forward - Management intends to evaluate cash flow and stock buybacks to determine future dividend increases [33] Question: Potential for expansion outside Nevada - Management acknowledged the opportunity for expanding the tavern business outside Nevada, although no immediate plans are in place [55]

Revenue Performance - Total revenues for the three months ended September 30, 2024, decreased by $96.5 million, or 37%, compared to the prior year period, primarily due to the exclusion of Rocky Gap and distributed gaming operations in Montana and Nevada [106]. - Gaming revenues decreased by $89.5 million, food and beverage revenues decreased by $2.7 million, room revenues decreased by $2.5 million, and other revenues decreased by $1.8 million for the same period [106]. - Revenues decreased by $319.8 million, or 39%, for the nine months ended September 30, 2024, compared to the prior year, driven by declines in gaming ($294.7 million), food and beverage ($8.7 million), rooms ($3.1 million), and other revenues ($13.3 million) [107]. - Revenues for Nevada Casino Resorts decreased by $6.0 million, or 6%, for the three months ended September 30, 2024, attributed to lower visitation and reduced entertainment offerings [123]. - Revenues for Nevada Locals Casinos decreased by $2.5 million, or 7%, for the three months ended September 30, 2024, primarily due to lower gaming revenue from reduced visitation [126]. - Revenues for Nevada Taverns decreased by $0.5 million, or 2%, for the three months ended September 30, 2024, mainly due to declines in gaming and food and beverage revenues, offset by an increase in other revenues [129]. - For the nine months ended September 30, 2024, revenues increased by $0.5 million, or 1%, primarily due to a $2.8 million increase in other revenues, despite decreases in gaming and food and beverage revenues [130]. Operating Income and Expenses - Operating income for the three months ended September 30, 2024, was $6.7 million, a significant decrease from $323.7 million in the prior year period [104]. - The company reported a $241.2 million, or 51%, decrease in operating expenses for the nine months ended September 30, 2024, mainly from declines in gaming ($239.3 million) and other expenses ($6.1 million) [109]. - Operating expenses decreased by $75.0 million, or 50%, for the three months ended September 30, 2024, primarily due to a $74.7 million decrease in gaming expenses and a $1.2 million decrease in other operating expenses [108]. - Selling, general and administrative (SG&A) expenses decreased by $10.7 million, or 16%, for the three months ended September 30, 2024, primarily due to the exclusion of results from Rocky Gap and distributed gaming operations [110]. Net Income and Adjusted EBITDA - Net income for the three months ended September 30, 2024, was $5.2 million, compared to $241.2 million in the same period last year [104]. - Adjusted EBITDA decreased by $34,014 for the three months ended September 30, 2024, compared to $53,185 in the prior year, reflecting a decrease of $19,171 [121]. - Adjusted EBITDA decreased by $2.6 million, or 15%, for the three months ended September 30, 2024, and by $7.8 million, or 14%, for the nine months ended September 30, 2024, primarily due to higher labor costs and reduced revenues compared to prior year periods [128]. - Adjusted EBITDA margins for Nevada Casino Resorts, Nevada Locals Casinos, and Nevada Taverns were 25%, 40%, and 20% respectively for the three months ended September 30, 2024, down from 29%, 45%, and 28% in the prior year [132]. Strategic Decisions and Acquisitions - The company completed the sale of Rocky Gap Casino Resort for $260.0 million on July 25, 2023, and distributed gaming operations in Montana for $109.0 million on September 13, 2023 [91]. - The company acquired Lucky's Lounge & Restaurant for $10.0 million on November 21, 2023, and Great American Pub for $7.3 million on April 22, 2024, expanding its branded tavern portfolio [92]. Cash Flow and Financing - Net cash provided by operating activities decreased by $58.5 million, or 46%, for the nine months ended September 30, 2024, compared to the prior year, primarily due to a decrease in operating income from divestitures [139]. - Net cash provided by investing activities was $155.1 million for the nine months ended September 30, 2024, mainly from the sale of distributed gaming operations in Nevada [140]. - Net cash used in financing activities increased by $85.9 million, or 32%, for the nine months ended September 30, 2024, primarily due to a $276.5 million payment to redeem 2026 Unsecured Notes [141]. - The company repurchased 1,804,233 shares of common stock at an average price of $30.67 per share for a total of $55.4 million during the nine months ended September 30, 2024 [144]. Tax and Interest Rates - The effective income tax rate was 519.7% for the three months ended September 30, 2024, significantly higher than the federal income tax rate of 21%, primarily due to benefits from the reduction of uncertain tax positions [117]. - The weighted-average effective interest rate on outstanding borrowings under the Credit Facility was 7.56% for the three months ended September 30, 2024 [156]. Operational Insights - The Nevada Casino Resorts segment caters primarily to a regional drive-in customer base, with a larger number of hotel rooms compared to other properties [95]. - The company’s Nevada Locals Casinos segment typically experiences a higher frequency of customer visits compared to casino resort properties [99]. - The company’s strategic decision to reduce entertainment offerings at the Laughlin Event Center contributed to decreased visitation and lower revenues [106]. - Depreciation and amortization expenses increased by $0.4 million, or 2%, for the three months ended September 30, 2024, mainly due to the addition of new locations and asset depreciation [113]. - As of September 30, 2024, the company operated 72 branded taverns with over 1,100 onsite slot machines [102]. - As of September 30, 2024, the company had $68.6 million in cash and cash equivalents and $240 million in borrowing availability under its Revolving Credit Facility [135].

Core Insights - Golden Entertainment reported a revenue of $161.23 million for the quarter ended September 2024, reflecting a 37.4% decrease year-over-year and a slight miss of 0.61% against the Zacks Consensus Estimate of $162.22 million [1] - The company achieved an EPS of $0.18, a significant improvement from -$0.02 in the same quarter last year, resulting in an EPS surprise of +80.00% compared to the consensus estimate of $0.10 [1] Financial Performance Metrics - Net Revenue from Nevada Casino Resorts was $99.55 million, slightly below the average estimate of $101.90 million [3] - Net Revenue from Nevada Locals Casinos reached $35.41 million, exceeding the average estimate of $33.70 million [3] - Net Revenue from Nevada Taverns was $26.04 million, surpassing the average estimate of $25.65 million [3] - Total Casino Revenues amounted to $161.23 million, significantly above the average estimate of $135.60 million [3] - Net Revenue from Corporate and Other was $0.24 million, below the average estimate of $0.35 million [3] - Adjusted EBITDA for Corporate and Other was -$10.19 million, better than the average estimate of -$12.17 million [3] - Adjusted EBITDA for Nevada Casino Resorts was $24.61 million, lower than the average estimate of $26.70 million [3] - Adjusted EBITDA for Nevada Taverns was $5.32 million, below the average estimate of $6.50 million [3] - Adjusted EBITDA for Nevada Locals Casinos was $14.27 million, slightly below the average estimate of $15.07 million [3] - Total Adjusted EBITDA for Casinos was $34.01 million, significantly lower than the average estimate of $41.77 million [3] Stock Performance - Over the past month, shares of Golden Entertainment have returned +3.1%, compared to a +3.2% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [4]

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and showing a significant improvement from a loss of $0.02 per share a year ago, representing an earnings surprise of 80% [1] Financial Performance - The company posted revenues of $161.23 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 0.61% and decreased from $257.73 million in the same quarter last year [2] - Over the last four quarters, Golden Entertainment has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Golden Entertainment shares have declined approximately 22.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current Zacks Rank for Golden Entertainment is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $171.12 million, and for the current fiscal year, it is $1.73 on revenues of $673.24 million [7] - The estimate revisions trend for Golden Entertainment has been unfavorable ahead of the earnings release, which may impact future stock movements [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, International Game Technology (IGT), is expected to report a significant decline in earnings and revenues, indicating broader industry pressures [9][10]

Financial Performance - The Company reported third quarter revenue of $161.2 million, a decrease of 37.5% compared to $257.7 million in the same quarter of 2023[3]. - Adjusted EBITDA for the third quarter was $34.0 million, down 36.1% from $53.2 million in the prior year[3]. - Net income for the third quarter was $5.2 million, or $0.18 per diluted share, compared to $241.2 million, or $7.83 per diluted share, in Q3 2023[3]. - Total revenues for the three months ended September 30, 2024, were $161,233,000, a decrease of 5.3% from $170,131,000 in the same period of 2023[15]. - Adjusted EBITDA for continuing operations was $34,014,000, down 21.1% from $43,118,000 year-over-year[15]. - Net income for the three months ended September 30, 2024, was $5,167,000, compared to $241,216,000 in the same period of 2023, reflecting a significant decline[15]. - Revenues from Nevada Casino Resorts decreased to $99,547,000 from $105,524,000, a decline of 5.9%[15]. - Revenues from Nevada Locals Casinos fell to $35,405,000, down 6.6% from $37,901,000 year-over-year[15]. - Total revenues from divested operations were $87,595,000 for the three months ended September 30, 2023, compared to $6,019,000 in 2024[15]. - The company reported a gain on the sale of business amounting to $305,829,000 in the three months ended September 30, 2023[15]. - Interest expense, net, decreased to $7,959,000 from $15,306,000, indicating improved financial management[15]. - The income tax benefit for the three months ended September 30, 2024, was $6,398,000, compared to a provision of $67,187,000 in the same period of 2023[15]. - Corporate and other segments reported an adjusted EBITDA loss of $(10,191,000) for the three months ended September 30, 2024, compared to a loss of $(12,116,000) in 2023[15]. Share Repurchase and Dividends - The Company repurchased 815,116 shares at an average price of $31.65 per share for a total of $25.8 million during the third quarter[2]. - Year-to-date, the Company has repurchased 1.94 million shares at an average price of $30.70 per share, totaling $59.5 million[2]. - The Board of Directors authorized a recurring quarterly cash dividend of $0.25 per share, payable on January 7, 2025[1]. - The Company anticipates improved business conditions in the fourth quarter and plans to continue share repurchases throughout the year[2]. Debt and Cash Position - As of September 30, 2024, total debt outstanding was $399.0 million, primarily consisting of $395.0 million in term loan borrowings[4]. - The Company had cash and cash equivalents of $68.6 million and no outstanding borrowings under its $240 million revolving credit facility as of September 30, 2024[4]. Business Operations - The decline in revenue and Adjusted EBITDA was primarily due to the sale of the Rocky Gap Casino Resort and distributed gaming operations in 2023[3].

For the quarter ended June 2024, Golden Entertainment (GDEN) reported revenue of $167.33 million, down 41.6% over the same period last year. EPS came in at $0.16, compared to $0.40 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $176.34 million, representing a surprise of -5.11%. The company delivered an EPS surprise of -27.27%, with the consensus EPS estimate being $0.22. While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

Golden Entertainment (GDEN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -27.27%. A quarter ago, it was expected that this gaming services provider would post earnings of $0.13 per share when it actually produced a loss of $0.37, delivering a surprise of -384.62%. Over the last fo ...

Wall Street analysts forecast that Golden Entertainment (GDEN) will report quarterly earnings of $0.22 per share in its upcoming release, pointing to a year-over-year decline of 45%. It is anticipated that revenues will amount to $176.34 million, exhibiting a decline of 38.5% compared to the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their ...

| --- | --- | --- | --- | --- | --- | |--------------------------|------------|------------|------------|------------|------------| | | | | | | | | Quarter Ended | 2023-03-31 | 2023-06-30 | 2023-09-30 | 2023-12-31 | 2024-03-31 | | Revenue | 278.05 | 286.68 | 257.73 | 230.69 | 174.05 | | Revenue Growth (YoY) | 1.61% | -0.93% | -7.62% | -17.52% | -37.40% | | Cost of Revenue | 159.56 | 162.29 | 149.86 | 128.31 | 81.38 | | Gross Profit | 118.49 | 124.39 | 107.87 | 102.39 | 92.67 | | Selling, General & Admin | 6 ...

Although the revenge travel phenomenon appears to have faded, the broader industry could still be enticing, thereby making an attractive case for casino stocks with dividends. During the worst of the Covid-19 crisis, quarantined households longed for the day when normalcy would return. This pent-up demand fueled the aforementioned revenge travel sentiment. Post pandemic, the concept of revenge has diminished. But in its place is a wider push for travel prioritization. Now, it's possible that consumer econom ...