Golden Entertainment has released its financial results for the second quarter ending June 30, 2024. The operator reported revenue of $167.3 million, marking a 41.6% year-over-year decline.
Golden Entertainment Sells Rocky Gap Casino Resort
This decline is primarily attributable to the exclusion of results from recently sold assets, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada.
The company’s adjusted EBITDA* also suffered a significant decline, falling 29.5% to $41.2 million. Thus, net income for the second quarter was recorded at US$600 thousand, or US$0.02 per diluted share, a drop of 51%.
The sale of Rocky Gap Casino Resort operations to Century Casinos directly impacted Golden Entertainment‘s financial results. The transaction was for US$56.1 million plus associated land and building to Vici Properties for approximately US$203.9 million.
The sales, completed in July 2023 and January 2024, were part of the company’s strategy to simplify its operations and focus on core assets.
But despite the overall revenue decline, the Rooms sector recorded a 1.63% increase in revenue to reach $31.4 million in Q2 2024.
In contrast, the Gaming sector saw a substantial reduction, with revenue falling over 57.1% to US$78.3 million.
In 2024, he focused on reducing financial liabilities
So, as of June 30, 2024, Golden Entertainment’s total principal debt was $400.7 million. But much of the debt, US$396 million, was consumed by outstanding term loans.
Therefore, the company maintained a cash balance of US$88.6 million and a revolving credit line of US$240 million. The company did not use this line of credit.
In the second quarter, the company focused on reducing its financial liabilities and returning capital to shareholders. In April 2024, Golden Entertainment redeemed $287 million in senior unsecured notes.
Additionally, the interest rate on its $396 million term loan was reduced by 60 basis points in May. The company also repurchased approximately 989,117 shares at an average price of $29.85 per share and paid quarterly cash dividends totaling $14.3 million.
*EBITDA: “Earnings Before Interest, Taxes, Depreciation, and Amortization” (in Portuguese, “Earnings Before Interest, Taxes, Depreciation and Amortization” or EBITDA)
