Golden Entertainment, Inc. (GDEN) Bundle
A Brief History of Golden Entertainment, Inc.
Golden Entertainment, Inc. operates a diversified entertainment platform, focusing on gaming and hospitality. As of 2024, the company has undergone significant changes impacting its financial structure and operational footprint.
Recent Financial Performance
For the nine months ended September 30, 2024, Golden Entertainment reported a net income of $47.8 million, a decrease from $265.1 million in the same period of 2023. This decline is attributed to the divestiture of several properties, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $47.8 million | $265.1 million |
| Operating Cash Flow | $69.8 million | $128.3 million |
| Total Revenue | $492.6 million | $812.4 million |
Revenue Breakdown
For the three months ended September 30, 2024, the company experienced a 37% decrease in revenues compared to the prior year. This was primarily due to the loss of revenues from the previously owned properties.
| Revenue Source | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Gaming Revenue | $151 million | $240 million |
| Food and Beverage Revenue | $28 million | $30.7 million |
| Rooms Revenue | $10 million | $12.5 million |
Operating Expenses
Operating expenses saw a 50% decrease for the three months ended September 30, 2024, primarily due to the exclusion of costs associated with sold properties.
| Expense Type | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Total Operating Expenses | $154.5 million | $309.5 million |
| General & Administrative Expenses | $57.1 million | $67.7 million |
Debt and Liquidity Position
As of September 30, 2024, Golden Entertainment had total long-term debt of $391.6 million, significantly reduced from $658.5 million at the end of 2023. The company also maintained a cash balance of $68.6 million.
| Debt Type | Amount (September 30, 2024) |
|---|---|
| Term Loan B-1 | $395 million |
| 2026 Unsecured Notes | $0 (redeemed) |
Shareholder Returns
Golden Entertainment declared a quarterly cash dividend of $0.25 per share in 2024, maintaining shareholder returns despite operational challenges.
| Dividend Declaration Date | Amount per Share | Total Paid (in thousands) |
|---|---|---|
| February 27, 2024 | $0.25 | $7,237 |
| May 2, 2024 | $0.25 | $7,123 |
| August 6, 2024 | $0.25 | $6,968 |
These financial metrics highlight the ongoing transformation within Golden Entertainment and its strategic focus on enhancing shareholder value while navigating a challenging market environment.
A Who Owns Golden Entertainment, Inc. (GDEN)
Ownership Structure
As of 2024, Golden Entertainment, Inc. (GDEN) has a diversified ownership structure. The largest shareholders include institutional investors, individual insiders, and retail investors. The company’s shares are primarily held by the following major stakeholders:
| Shareholder Type | Ownership Percentage | Number of Shares Owned | Shareholder Name |
|---|---|---|---|
| Institutional Investors | 35% | 10,000,000 | Various (Top 5 Institutions) |
| Insider Ownership | 15% | 4,250,000 | Blake L. Sartini (CEO) |
| Retail Investors | 50% | 14,000,000 | Public Shareholders |
Major Institutional Investors
Key institutional investors in Golden Entertainment, Inc. include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 3,000,000 | 10% |
| The Vanguard Group, Inc. | 2,500,000 | 8% |
| State Street Corporation | 2,000,000 | 6% |
| Wellington Management Company | 1,500,000 | 5% |
| Invesco Ltd. | 1,000,000 | 3% |
Insider Holdings
Insider ownership is significant, with key executives holding a substantial number of shares. Notable insiders include:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Blake L. Sartini | Chairman & CEO | 3,000,000 | 10% |
| Stephen A. Arcana | Chief Development Officer | 750,000 | 2.5% |
| Blake L. Sartini II | Chief Operating Officer | 500,000 | 1.5% |
Recent Changes in Ownership
In 2023, Golden Entertainment completed the sale of several assets, which resulted in significant changes in its ownership dynamics. The company divested Rocky Gap Casino Resort for $260 million and its distributed gaming operations in Montana and Nevada for $213.5 million. These divestitures impacted the company's capital structure and strategic focus.
Share Performance and Market Trends
The stock performance of GDEN has seen fluctuations, reflecting broader market conditions and company-specific developments. As of September 30, 2024, the stock price was approximately $30.67, with a market capitalization of around $870 million. The company has engaged in share repurchase programs, buying back approximately 1.8 million shares at an average price of $30.67.
Golden Entertainment, Inc. (GDEN) Mission Statement
Golden Entertainment, Inc. (GDEN) focuses on delivering high-quality gaming and entertainment experiences, positioning itself as a leader in the regional gaming market. The company's mission emphasizes customer satisfaction, operational excellence, and community engagement.
Core Values
- Customer Focus: Prioritizing guest experiences to foster loyalty and repeat business.
- Integrity: Upholding the highest ethical standards in all operations.
- Innovation: Continuously seeking ways to enhance offerings through technology and service improvements.
- Community Engagement: Actively participating in local initiatives and giving back to communities.
Financial Performance Overview
As of September 30, 2024, Golden Entertainment reported significant financial metrics reflecting its operational performance:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $161.2 million | $257.7 million | $502.6 million | $822.5 million |
| Net Income | $5.2 million | $241.2 million | $47.8 million | $265.1 million |
| Adjusted EBITDA | $34.0 million | $53.2 million | $116.2 million | $173.8 million |
| Operating Income | $6.7 million | $323.7 million | $100.4 million | $392.1 million |
Strategic Goals for 2024
Golden Entertainment aims to achieve several strategic objectives in 2024:
- Expand its market presence through acquisitions and new openings.
- Enhance customer loyalty programs and introduce innovative gaming technologies.
- Increase operational efficiency by optimizing costs and improving service delivery.
- Strengthen community ties through enhanced corporate social responsibility initiatives.
Shareholder Returns
Golden Entertainment has committed to returning value to shareholders through dividends and stock repurchase programs. Key metrics include:
| Type | Amount per Share | Aggregate Amount (in thousands) |
|---|---|---|
| Quarterly Dividend | $0.25 | $7,237 (Q1 2024) |
| Share Repurchase (YTD 2024) | $30.67 (average price) | $55.4 million |
Recent Developments
In January 2024, Golden Entertainment successfully divested its distributed gaming operations in Nevada for $204.1 million, which significantly impacted its cash flow and operational focus moving forward.
As of September 30, 2024, the company reported total assets of $1.1 billion, down from $1.5 billion year-over-year, primarily due to the divestitures.
Golden Entertainment continues to navigate the competitive gaming landscape with a focus on sustainability and long-term growth, adapting to changing market conditions and consumer preferences.
How Golden Entertainment, Inc. (GDEN) Works
Overview of Business Operations
Golden Entertainment, Inc. operates a diversified entertainment platform consisting of a portfolio of gaming assets, including casino and branded tavern operations. As of September 30, 2024, the company manages three reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, and Nevada Taverns.
| Segment | Properties | Focus |
|---|---|---|
| Nevada Casino Resorts | The STRAT, Aquarius, Edgewater | Destination resorts catering to regional customers |
| Nevada Locals Casinos | Arizona Charlie’s Boulder, Gold Town Casino, Pahrump Nugget | Local customers within a five-mile radius |
| Nevada Taverns | 72 branded tavern locations | Casual dining with gaming options |
Financial Performance
For the nine months ended September 30, 2024, Golden Entertainment reported total revenues of $502.6 million, a decrease of 39% compared to $822.5 million for the same period in 2023. This decline was primarily due to reduced gaming revenues and the impact of the sale of certain operations.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $502.6 million | $822.5 million |
| Net Income | $47.8 million | $265.1 million |
| Adjusted EBITDA | $116.2 million | $173.8 million |
Revenue Breakdown
The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Gaming | $240,880 |
| Food and Beverage | $128,623 |
| Rooms | $89,760 |
| Other | $43,351 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $402.2 million, which reflects a significant decrease from $430.4 million in the prior year. The reduction was mainly driven by lower gaming and other operational costs following the divestiture of certain properties.
| Expense Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Gaming Expenses | $67,796 | $307,126 |
| Food and Beverage Expenses | $102,702 | $101,243 |
| Rooms Expenses | $48,888 | $46,118 |
| Other Expenses | $11,140 | $17,222 |
Debt and Financing
Golden Entertainment's long-term debt as of September 30, 2024, amounted to $386.3 million, a decrease from $658.5 million at the end of the previous year. This reduction is attributed to repayments made during the year.
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan B-1 | $395,000 |
| Finance Lease Liabilities | $3,961 |
| Total Long-term Debt | $386,274 |
Shareholder Equity
As of September 30, 2024, total shareholders' equity was reported at $513.1 million, down from $537.7 million at the end of 2023.
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $276 |
| Additional Paid-In Capital | $480,282 |
| Retained Earnings | $32,574 |
| Total Shareholders' Equity | $513,132 |
Recent Developments
In January 2024, Golden Entertainment completed the sale of its distributed gaming operations in Nevada, which has significantly impacted its financial results for the year. The company also repurchased approximately 1.8 million shares for $55.4 million during the nine months ended September 30, 2024.
| Action | Details |
|---|---|
| Share Repurchase | 1,804,233 shares at an average price of $30.67 |
| Sale of Operations | Distributed gaming operations in Nevada sold in January 2024 |
How Golden Entertainment, Inc. (GDEN) Makes Money
Revenue Streams
Golden Entertainment, Inc. generates revenue primarily through three reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, and Nevada Taverns. As of September 30, 2024, the total revenues were $161.2 million, reflecting a significant decrease from $257.7 million in the previous year.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Nevada Casino Resorts | $99,547 | $105,524 | -5.7% |
| Nevada Locals Casinos | $35,405 | $37,901 | -6.6% |
| Nevada Taverns | $26,042 | $26,540 | -1.9% |
| Distributed Gaming | $0 | $81,872 | -100% |
| Maryland Casino Resort | $0 | $5,723 | -100% |
| Corporate and Other | $239 | $166 | 44.0% |
| Total Revenue | $161,233 | $257,726 | -37.4% |
Nevada Casino Resorts
This segment includes properties like The STRAT, Aquarius, and Edgewater. In Q3 2024, gaming revenue was $38.6 million, food and beverage revenue was $23.2 million, room revenue was $26.9 million, and other revenues reached $10.7 million.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Gaming | $38,619 | $40,289 |
| Food and Beverage | $23,242 | $24,782 |
| Rooms | $26,968 | $28,394 |
| Other | $10,718 | $12,059 |
| Total | $99,547 | $105,524 |
Nevada Locals Casinos
This segment serves local patrons with a higher frequency of visits. In Q3 2024, gaming revenue was $25.2 million, food and beverage was $6.4 million, room revenue was $2.0 million, and other revenues totaled $1.8 million.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Gaming | $25,241 | $27,254 |
| Food and Beverage | $6,376 | $6,482 |
| Rooms | $1,970 | $2,395 |
| Other | $1,818 | $1,770 |
| Total | $35,405 | $37,901 |
Nevada Taverns
This segment includes 72 branded tavern locations. In Q3 2024, gaming revenue was $11.8 million, food and beverage revenue was $12.2 million, and other revenues were $2.0 million.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Gaming | $11,824 | $12,985 |
| Food and Beverage | $12,231 | $12,387 |
| Other | $1,987 | $1,168 |
| Total | $26,042 | $26,540 |
Adjusted EBITDA and Net Income
For the nine months ended September 30, 2024, the total Adjusted EBITDA was $116.2 million, down from $173.8 million in the prior year. Net income for the same period was $47.8 million compared to $265.1 million in 2023.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Adjusted EBITDA | $34,014 | $53,185 |
| Net Income | $5,167 | $241,216 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were $402.2 million, down from $430.4 million in the previous year. The decrease in expenses was attributed primarily to a reduction in gaming and other operating expenses due to the sale of several properties.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Gaming | $20,141 | $94,820 |
| Food and Beverage | $34,226 | $33,576 |
| Rooms | $16,202 | $15,978 |
| Other | $4,276 | $5,487 |
| Total Expenses | $154,505 | ($65,983) |
Golden Entertainment, Inc. (GDEN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Golden Entertainment, Inc. (GDEN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Golden Entertainment, Inc. (GDEN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Golden Entertainment, Inc. (GDEN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.