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PART I. FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited consolidated financial statements of Golden Entertainment, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, shareholders' equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity at specific points in time | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | $1,045,870 | $1,079,906 | | Total liabilities | $602,575 | $605,679 | | Total shareholders' equity | $443,295 | $474,227 | - **Total assets** decreased by **$34,036 thousand** (**3.15%**) from December 31, 2024, to June 30, 2025, primarily due to decreases in cash and cash equivalents, property and equipment, and operating lease right-of-use assets[8](index=8&type=chunk) - **Total shareholders' equity** decreased by **$30,932 thousand** (**6.52%**) from December 31, 2024, to June 30, 2025, mainly driven by an accumulated deficit increase[8](index=8&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net income over specific reporting periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $163,620 | $167,334 | $324,463 | $341,381 | | Total expenses | $151,704 | $153,799 | $301,478 | $247,704 | | Operating income | $11,916 | $13,535 | $22,985 | $93,677 | | Net income | $4,632 | $623 | $7,131 | $42,586 | | Basic EPS | $0.18 | $0.02 | $0.27 | $1.48 | | Diluted EPS | $0.17 | $0.02 | $0.26 | $1.40 | - **Net income** for the three months ended June 30, 2025, significantly increased to **$4,632 thousand** from **$623 thousand** in the prior year, while for the six months, it decreased to **$7,131 thousand** from **$42,586 thousand**, primarily due to a large gain on sale of business in the prior year[10](index=10&type=chunk) - **Operating income** for the six months ended June 30, 2025, decreased substantially to **$22,985 thousand** from **$93,677 thousand** in the prior year, largely influenced by the gain on sale of business in 2024[10](index=10&type=chunk) [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) This statement outlines changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Common Stock | $262 | $265 | | Additional Paid-In Capital | $479,166 | $481,810 | | Accumulated Deficit | $(36,133) | $(7,848) | | Total Shareholders' Equity | $443,295 | $474,227 | - **Total shareholders' equity** decreased by **$30,932 thousand** from December 31, 2024, to June 30, 2025, primarily due to share repurchases (**$22,253 thousand**) and cash dividends paid (**$13,267 thousand**), partially offset by net income[13](index=13&type=chunk)[150](index=150&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $45,980 | $47,296 | | Net cash (used in) provided by investing activities | $(25,310) | $162,969 | | Net cash used in financing activities | $(26,087) | $(319,227) | | Change in cash and cash equivalents | $(5,417) | $(108,962) | | Balance, end of period | $52,308 | $88,638 | - **Net cash used in investing activities** shifted from a **$162,969 thousand** inflow in 2024 (due to business sale proceeds) to a **$25,310 thousand** outflow in 2025, reflecting capital expenditures[15](index=15&type=chunk)[149](index=149&type=chunk) - **Net cash used in financing activities** significantly decreased by **$293,140 thousand** (**91.8%**) in 2025 compared to 2024, primarily due to the redemption of **$276.5 million** in senior notes in the prior year[15](index=15&type=chunk)[150](index=150&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=8&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's business, accounting policies, segment information, debt, equity, and other financial matters [Note 1 — Nature of Business and Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%94%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) This note describes the company's operations, reportable segments, and the basis for financial statement preparation - Golden Entertainment, Inc. operates a diversified entertainment platform with eight casino properties and **72 branded taverns** in Nevada[20](index=20&type=chunk) - The company conducts business through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[21](index=21&type=chunk) - The company completed the sale of its distributed gaming operations in Nevada on January 10, 2024, for **$213.5 million**[22](index=22&type=chunk) - On April 22, 2024, the company acquired two Great American Pub tavern locations for **$7.3 million**, integrating them into the **Nevada Taverns** segment[23](index=23&type=chunk) [Note 2 — Divestitures](index=9&type=section&id=Note%202%20%E2%80%94%20Divestitures) This note details the financial impact and specifics of the company's divested operations - The sale of distributed gaming operations in Nevada on January 10, 2024, resulted in **$2.3 million** in transaction costs for the six months ended June 30, 2024[32](index=32&type=chunk) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Distributed Gaming - Nevada Revenues | $— | $6,019 | | Distributed Gaming - Nevada Pretax income | $— | $476 | [Note 3 — Property and Equipment, Net](index=10&type=section&id=Note%203%20%E2%80%94%20Property%20and%20Equipment%2C%20Net) This note provides a breakdown of the company's property and equipment, including depreciation | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Property and equipment, net | $731,678 | $750,894 | | Accumulated depreciation | $(513,634) | $(581,165) | - **Property and equipment, net**, decreased by **$19,216 thousand** (**2.56%**) from December 31, 2024, to June 30, 2025[36](index=36&type=chunk) - Depreciation expense for **property and equipment** was **$43.6 million** for the six months ended June 30, 2025, comparable to **$43.7 million** in the prior year period[36](index=36&type=chunk) [Note 4 — Goodwill and Intangible Assets, Net](index=10&type=section&id=Note%204%20%E2%80%94%20Goodwill%20and%20Intangible%20Assets%2C%20Net) This note details the company's goodwill and intangible assets, including changes due to amortization | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Goodwill | $86,540 | $86,540 | | Intangible Assets, Net | $52,047 | $53,387 | - **Goodwill** balances remained unchanged across all segments from December 31, 2024, to June 30, 2025[39](index=39&type=chunk) - **Intangible assets, net**, decreased by **$1,340 thousand** (**2.51%**) from December 31, 2024, to June 30, 2025, primarily due to amortization of player relationships and non-compete agreements[41](index=41&type=chunk) [Note 5 — Accrued Liabilities](index=12&type=section&id=Note%205%20%E2%80%94%20Accrued%20Liabilities) This note presents a breakdown of the company's accrued liabilities at the reporting dates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total accrued liabilities | $29,638 | $29,637 | | Gaming liabilities | $11,961 | $11,963 | | Cash dividends payable | $6,540 | $6,641 | - **Total accrued liabilities** remained relatively stable at **$29,638 thousand** as of June 30, 2025, compared to December 31, 2024[42](index=42&type=chunk) [Note 6 — Long-Term Debt, Net and Finance Leases](index=13&type=section&id=Note%206%20%E2%80%94%20Long-Term%20Debt%2C%20Net%20and%20Finance%20Leases) This note outlines the company's long-term debt structure, finance leases, and associated interest rates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Term Loan B-1 | $392,000 | $394,000 | | Revolving credit facility | $40,000 | $20,000 | | Total long-term debt and finance leases | $436,949 | $417,643 | | Long-term debt, net and finance leases | $423,272 | $405,278 | - **Long-term debt, net and finance leases** increased by **$17,994 thousand** (**4.44%**) from December 31, 2024, to June 30, 2025, primarily due to an increase in revolving credit facility borrowings[43](index=43&type=chunk) - The weighted-average effective interest rate on the Credit Facility was **6.60%** for both the three and six months ended June 30, 2025[47](index=47&type=chunk) - The company redeemed and repaid in full its **$375 million** **7.625%** Senior Notes due 2026 on April 15, 2024, incurring a **$4.4 million** loss on debt extinguishment[48](index=48&type=chunk) [Note 7 — Shareholders' Equity and Stock Incentive Plans](index=13&type=section&id=Note%207%20%E2%80%94%20Shareholders'%20Equity%20and%20Stock%20Incentive%20Plans) This note details changes in shareholders' equity, including share repurchases, dividends, and stock-based compensation - The company repurchased **788 thousand shares** of common stock for **$22,253 thousand** during the six months ended June 30, 2025, under its **$200 million** share repurchase program[50](index=50&type=chunk)[51](index=51&type=chunk) - As of June 30, 2025, **$77.2 million** remained available under the share repurchase program[50](index=50&type=chunk) - A recurring quarterly cash dividend of **$0.25 per share** was declared, with **$6,540 thousand** paid on July 9, 2025, for the quarter ended June 30, 2025[53](index=53&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total share-based compensation expense | $2,052 | $2,346 | $4,942 | $5,387 | [Note 8 — Income Tax](index=17&type=section&id=Note%208%20%E2%80%94%20Income%20Tax) This note provides information on the company's income tax benefit or provision and effective tax rates | Metric (in thousands, except for tax rate) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income before income tax benefit (provision) | $4,189 | $479 | $7,759 | $69,935 | | Income tax benefit (provision) | $443 | $144 | $(628) | $(27,349) | | Effective tax rate | (10.6)% | (30.1)% | 8.1% | 39.1% | - The **effective income tax rates** for the three and six months ended June 30, 2025, were (**10.6%**) and **8.1%**, respectively, differing from the federal rate of **21.0%** primarily due to excess tax benefits on option exercises[62](index=62&type=chunk) - New U.S. tax legislation (OBBBA) was signed into law, making permanent many sunsetting tax provisions from 2017, but the company does not expect a material impact on its financial statements[64](index=64&type=chunk) [Note 9 — Financial Instruments and Fair Value Measurements](index=18&type=section&id=Note%209%20%E2%80%94%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) This note describes the fair value measurements of the company's financial instruments, particularly debt | Debt Type (in thousands) | Carrying Amount (June 30, 2025) | Fair Value (June 30, 2025) | Fair Value Hierarchy | | :----------------------- | :------------------------------ | :------------------------- | :------------------- | | Term Loan B-1 | $392,000 | $393,470 | Level 2 | | Revolving Credit Facility | $40,000 | $39,400 | Level 2 | | Finance lease liabilities | $2,995 | $2,995 | Level 3 | | Notes payable | $1,954 | $1,954 | Level 3 | | Total debt | $436,949 | $437,819 | | - The **fair value** of **Term Loan B-1** and **Revolving Credit Facility** is based on Level 2 inputs (observable market data), while finance lease liabilities and notes payable are Level 3 (unobservable inputs, estimated at carrying value)[67](index=67&type=chunk) [Note 10 — Commitments and Contingencies](index=19&type=section&id=Note%2010%20%E2%80%94%20Commitments%20and%20Contingencies) This note discloses the company's legal proceedings, claims, and other contingent liabilities - The company is involved in various lawsuits, claims, and legal proceedings in the ordinary course of business, but believes their resolution should not have a material adverse effect on its financial condition[70](index=70&type=chunk) - Aggregate contingent payments recognized as gaming expenses under participation agreements were **$3.9 million** for the six months ended June 30, 2024[69](index=69&type=chunk) [Note 11 — Segment Information](index=19&type=section&id=Note%2011%20%E2%80%94%20Segment%20Information) This note presents financial data by the company's reportable operating segments, including revenues and Adjusted EBITDA - The company operates through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[71](index=71&type=chunk) - **Adjusted EBITDA** is the primary metric used by the chief operating decision maker to assess segment performance and allocate resources[78](index=78&type=chunk)[79](index=79&type=chunk) | Segment (in thousands) | Total Revenues (3M Jun 2025) | Adjusted EBITDA (3M Jun 2025) | Adjusted EBITDA Margin (3M Jun 2025) | | :--------------------- | :--------------------------- | :---------------------------- | :----------------------------------- | | Nevada Casino Resorts | $98,196 | $25,970 | 26% | | Nevada Locals Casinos | $38,911 | $18,063 | 46% | | Nevada Taverns | $26,255 | $5,877 | 22% | | Segment (in thousands) | Total Revenues (6M Jun 2025) | Adjusted EBITDA (6M Jun 2025) | Adjusted EBITDA Margin (6M Jun 2025) | | :--------------------- | :--------------------------- | :---------------------------- | :----------------------------------- | | Nevada Casino Resorts | $192,417 | $50,739 | 26% | | Nevada Locals Casinos | $77,742 | $35,928 | 46% | | Nevada Taverns | $53,725 | $13,225 | 25% | [Note 12 — Related Party Transactions](index=26&type=section&id=Note%2012%20%E2%80%94%20Related%20Party%20Transactions) This note details transactions between the company and its related parties, including lease agreements - The company leases office space from an entity partially owned by its Chairman and CEO, Blake L. Sartini, with rent expense of **$0.1 million** for the three months ended June 30, 2025[91](index=91&type=chunk) - The company sublets a portion of its headquarters to Sartini Enterprises, Inc., controlled by Mr. Sartini, with rental income of less than **$0.1 million** for the three and six months ended June 30, 2025[92](index=92&type=chunk) - No costs were incurred under aircraft time-sharing agreements with Sartini Enterprises, Inc. for the three and six months ended June 30, 2025[95](index=95&type=chunk) [Note 13 — Subsequent Events](index=28&type=section&id=Note%2013%20%E2%80%94%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - Subsequent to June 30, 2025, the Board of Directors authorized a quarterly cash dividend of **$0.25 per share** payable on October 3, 2025[53](index=53&type=chunk)[97](index=97&type=chunk) - New U.S. tax legislation (OBBBA) was signed into law, but is not expected to have a material impact on the company's financial statements[64](index=64&type=chunk)[97](index=97&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance, liquidity, and capital resources for the three and six months ended June 30, 2025, compared to the prior year [Overview](index=29&type=section&id=Overview) This section provides an executive summary of the company's business, recent strategic activities, and operational segments - Golden Entertainment, Inc. operates a diversified entertainment platform, including eight casino properties and **72 branded taverns** in Nevada[102](index=102&type=chunk) - The company sold its distributed gaming operations in Nevada on January 10, 2024, for **$213.5 million**[103](index=103&type=chunk) - Acquired two Great American Pub tavern locations on April 22, 2024, for **$7.3 million**, integrating them into the **Nevada Taverns** segment[104](index=104&type=chunk) [Operations](index=29&type=section&id=Operations) This section describes the company's operational structure and the characteristics of its various business segments - As of June 30, 2025, the company operates through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[105](index=105&type=chunk) | Segment | Location | Casino Space (Sq. ft.) | Slot Machines | Table Games | Hotel Rooms | | :-------------------- | :---------------- | :--------------------- | :------------ | :---------- | :---------- | | Nevada Casino Resorts | Las Vegas, Laughlin, NV | 217,350 | 2,429 | 81 | 5,371 | | Nevada Locals Casinos | Las Vegas, Pahrump, NV | 151,857 | 1,839 | 18 | 631 | | Nevada Taverns | Nevada | — | 1,138 | — | — | | **Totals** | | **370,216** | **5,506** | **99** | **6,002** | [Nevada Casino Resorts](index=30&type=section&id=Nevada%20Casino%20Resorts) This section details the operations and customer base of the company's destination casino resort properties in Nevada - This segment includes destination casino resort properties like The STRAT, Aquarius, and Edgewater, catering to a regional drive-in customer base[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - These properties feature a large number of hotel rooms and offer various food and beverage outlets and entertainment venues[107](index=107&type=chunk) - Operations of Colorado Belle Casino Resort have been suspended since March 2020, and its gaming license was surrendered on June 30, 2023[110](index=110&type=chunk) [Nevada Locals Casinos](index=30&type=section&id=Nevada%20Locals%20Casinos) This section describes the operations and target market of the company's casino properties catering to local customers in Nevada - This segment comprises casino properties like Arizona Charlie's Boulder, Arizona Charlie's Decatur, Gold Town Casino, Lakeside Casino & RV Park, and Pahrump Nugget Hotel Casino, targeting local customers within a five-mile radius[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - These properties typically have higher frequency of customer visits, limited hotel rooms, and revenues primarily generated from slot machine play[111](index=111&type=chunk) [Nevada Taverns](index=31&type=section&id=Nevada%20Taverns) This section outlines the business model and offerings of the company's branded tavern locations in the Las Vegas metropolitan area - The **Nevada Taverns** segment consists of **72 branded tavern locations**, primarily in the Las Vegas metropolitan area, offering a casual, upscale environment with food, craft beer, and up to **15 slot machines**[114](index=114&type=chunk) - Following the sale of distributed gaming operations, slot machines in taverns are owned and operated by an independent third party, with Golden receiving a percentage of gaming revenue[114](index=114&type=chunk) [Results of Operations (Consolidated)](index=31&type=section&id=Results%20of%20Operations) This section provides a consolidated analysis of the company's revenues, expenses, and net income for the reporting periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $163,620 | $167,334 | $324,463 | $341,381 | | Total expenses | $151,704 | $153,799 | $301,478 | $247,704 | | Operating income | $11,916 | $13,535 | $22,985 | $93,677 | | Net income | $4,632 | $623 | $7,131 | $42,586 | - **Total revenues** decreased by **$3.7 million** (**2%**) for the three months and **$16.9 million** (**5%**) for the six months ended June 30, 2025, primarily due to lower occupancy rates at **Nevada Casino Resorts** and the exclusion of distributed gaming operations[117](index=117&type=chunk)[118](index=118&type=chunk) - **Operating income** decreased by **$1.6 million** (**11.9%**) for the three months and **$70.7 million** (**75.5%**) for the six months ended June 30, 2025, largely impacted by the prior year's gain on sale of business[116](index=116&type=chunk) - Non-operating expense, net, decreased by **$5.3 million** (**41%**) for the three months and **$8.5 million** (**36%**) for the six months, mainly due to reduced interest expense and the absence of debt extinguishment losses from the prior year[128](index=128&type=chunk) [Revenues, Adjusted EBITDA and Adjusted EBITDA Margin by Reportable Segment](index=34&type=section&id=Revenues%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin%20by%20Reportable%20Segment) This section presents a detailed breakdown of financial performance metrics for each of the company's operating segments - **Adjusted EBITDA** is a key metric used by management and investors to measure core operating results and determine executive compensation[130](index=130&type=chunk) | Segment (in thousands) | Revenues (3M Jun 2025) | Revenues (3M Jun 2024) | Adj. EBITDA (3M Jun 2025) | Adj. EBITDA (3M Jun 2024) | Adj. EBITDA Margin (3M Jun 2025) | Adj. EBITDA Margin (3M Jun 2024) | | :--------------------- | :--------------------- | :--------------------- | :------------------------ | :------------------------ | :------------------------------- | :------------------------------- | | Nevada Casino Resorts | $98,196 | $101,093 | $25,970 | $27,392 | 26% | 27% | | Nevada Locals Casinos | $38,911 | $37,866 | $18,063 | $16,928 | 46% | 45% | | Nevada Taverns | $26,255 | $28,152 | $5,877 | $7,791 | 22% | 28% | | Total Adjusted EBITDA | | | $38,440 | $41,192 | | | | Segment (in thousands) | Revenues (6M Jun 2025) | Revenues (6M Jun 2024) | Adj. EBITDA (6M Jun 2025) | Adj. EBITDA (6M Jun 2024) | Adj. EBITDA Margin (6M Jun 2025) | Adj. EBITDA Margin (6M Jun 2024) | | :--------------------- | :--------------------- | :--------------------- | :------------------------ | :------------------------ | :------------------------------- | :------------------------------- | | Nevada Casino Resorts | $192,417 | $202,105 | $50,739 | $54,283 | 26% | 27% | | Nevada Locals Casinos | $77,742 | $76,857 | $35,928 | $34,464 | 46% | 45% | | Nevada Taverns | $53,725 | $55,959 | $13,225 | $15,352 | 25% | 27% | | Distributed Gaming | $— | $6,019 | $— | $484 | | | | Total Adjusted EBITDA | | | $76,021 | $82,184 | | | [Nevada Casino Resorts (Segment Performance)](index=35&type=section&id=Nevada%20Casino%20Resorts%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Casino Resorts segment - **Revenues** decreased by **$2.9 million** (**3%**) for the three months and **$9.7 million** (**5%**) for the six months ended June 30, 2025, primarily due to lower occupancy rates[134](index=134&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - **Adjusted EBITDA** decreased by **$1.4 million** (**5%**) for the three months and **$3.5 million** (**7%**) for the six months, mainly due to higher labor costs and lower visitation[136](index=136&type=chunk)[137](index=137&type=chunk) [Nevada Locals Casinos (Segment Performance)](index=37&type=section&id=Nevada%20Locals%20Casinos%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Locals Casinos segment - **Revenues** increased by **$1.0 million** (**2.8%**) for the three months and **$0.9 million** (**1%**) for the six months ended June 30, 2025, driven by higher gaming and other revenues[138](index=138&type=chunk)[139](index=139&type=chunk) - **Adjusted EBITDA** increased by **$1.1 million** (**7%**) for the three months and **$1.5 million** (**4%**) for the six months, primarily due to reduced operating expenses[138](index=138&type=chunk)[139](index=139&type=chunk) [Nevada Taverns (Segment Performance)](index=37&type=section&id=Nevada%20Taverns%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Taverns segment - **Revenues** decreased by **$1.9 million** (**7%**) for the three months and **$2.2 million** (**4%**) for the six months ended June 30, 2025, due to lower visitation and changes in revenue recognition for certain taverns[140](index=140&type=chunk)[141](index=141&type=chunk) - **Adjusted EBITDA** decreased by **$1.9 million** (**25%**) for the three months and **$2.1 million** (**14%**) for the six months, mainly due to higher labor costs and cost of goods[140](index=140&type=chunk)[141](index=141&type=chunk) [Distributed Gaming (Segment Performance)](index=37&type=section&id=Distributed%20Gaming%20(Segment%20Performance)) This section reports on the performance of the distributed gaming segment prior to its divestiture - This segment was divested on January 10, 2024, resulting in no revenues or **Adjusted EBITDA** for the periods ended June 30, 2025, compared to prior year[142](index=142&type=chunk) [Adjusted EBITDA Margin](index=37&type=section&id=Adjusted%20EBITDA%20Margin) This section analyzes the profitability margins across the company's operating segments - **Adjusted EBITDA** margins for **Nevada Casino Resorts** and **Nevada Locals Casinos** remained consistent for the three and six months ended June 30, 2025[143](index=143&type=chunk) - **Nevada Taverns** segment experienced a lower **Adjusted EBITDA** margin due to increased labor costs and reduced visitation[143](index=143&type=chunk)[144](index=144&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's financial position, cash flow generation, and ability to meet its short-term and long-term obligations - As of June 30, 2025, the company had **$52.3 million** in cash and cash equivalents and **$200 million** in borrowing availability under its **$240 million** **Revolving Credit Facility**[145](index=145&type=chunk)[168](index=168&type=chunk) - Management believes current liquidity sources are sufficient to meet capital requirements for the next **12 months**[145](index=145&type=chunk) - The company may seek additional debt or equity financing to enhance liquidity or fund future acquisitions[147](index=147&type=chunk) [Cash Flows](index=39&type=section&id=Cash%20Flows) This section provides a detailed analysis of the company's cash inflows and outflows from operating, investing, and financing activities - **Net cash provided by operating activities** decreased by **$1.3 million** (**3%**) to **$46.0 million** for the six months ended June 30, 2025, primarily due to timing of working capital spending[148](index=148&type=chunk) - **Net cash used in investing activities** was **$25.3 million** in 2025, compared to **$163.0 million** provided in 2024 (due to the sale of distributed gaming operations)[149](index=149&type=chunk) - **Net cash used in financing activities** decreased by **$293.1 million** (**92%**) to **$26.1 million** in 2025, mainly due to the prior year's **$276.5 million** repayment of senior notes[150](index=150&type=chunk) [Long-Term Debt](index=39&type=section&id=Long-Term%20Debt) This section details the company's long-term debt structure, including credit facilities and outstanding balances - The company's senior secured credit facility includes a **$400 million** **Term Loan B-1** and a **$240 million** **Revolving Credit Facility**[44](index=44&type=chunk)[151](index=151&type=chunk) - As of June 30, 2025, **$392 million** of **Term Loan B-1** and **$40 million** of **Revolving Credit Facility** borrowings were outstanding[44](index=44&type=chunk)[167](index=167&type=chunk) [Share Repurchase Program](index=39&type=section&id=Share%20Repurchase%20Program) This section outlines the company's share repurchase activities and remaining authorization under its program - The company has a **$200 million** share repurchase program, with **$77.2 million** remaining availability as of June 30, 2025[50](index=50&type=chunk)[152](index=152&type=chunk) - Repurchases can be made in open market transactions, block trades, or private transactions, and the program can be suspended at any time[152](index=152&type=chunk) [Other Items Affecting Liquidity](index=39&type=section&id=Other%20Items%20Affecting%20Liquidity) This section discusses additional factors influencing the company's liquidity, such as capital expenditures and expansion plans - The company performs ongoing refurbishment and maintenance at its facilities, funding capital expenditures through operating cash flows and the **Revolving Credit Facility**[155](index=155&type=chunk) - Potential expansion opportunities in existing or new markets may require substantial investments, funded by cash flows, the **Revolving Credit Facility**, or additional financing[157](index=157&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting judgments and estimates used in preparing the financial statements - The preparation of financial statements requires estimates and assumptions, particularly for acquisition accounting, long-lived assets, goodwill, intangible assets, revenue recognition, income taxes, and share-based compensation[158](index=158&type=chunk) - As of October 1, 2024, the estimated fair value of an indefinite-lived trade name in the **Nevada Casino Resorts** segment did not significantly exceed its carrying value, indicating potential future impairment risk[159](index=159&type=chunk) - No material changes to critical accounting policies and estimates occurred during the three and six months ended June 30, 2025[160](index=160&type=chunk) [Seasonality](index=40&type=section&id=Seasonality) This section discusses how seasonal factors, such as holidays and weather, impact the company's business operations and revenues - The company's businesses are affected by seasonal factors, including holidays, weather, and travel conditions[161](index=161&type=chunk) - Nevada casino properties and taverns typically experience lower revenues during the summer due to high temperatures and increased local vacation activity[161](index=161&type=chunk) - Branded taverns generally see higher revenues in the fall, coinciding with professional sports seasons[161](index=161&type=chunk) [Recently Issued Accounting Pronouncements](index=40&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section addresses the potential impact of new accounting standards on the company's financial reporting - The company is evaluating ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03/2025-01 (Expense Disaggregation Disclosures) but does not expect a material impact on its financial statements[29](index=29&type=chunk)[30](index=30&type=chunk)[162](index=162&type=chunk) [Regulation and Taxes](index=41&type=section&id=Regulation%20and%20Taxes) This section outlines the extensive regulatory environment and tax considerations affecting the company's gaming operations - The company's business is subject to extensive regulation by state gaming authorities, and changes in laws could materially affect operations[163](index=163&type=chunk) - The gaming industry is a significant source of tax revenues, and potential changes in tax law could adversely impact the company's financial position[164](index=164&type=chunk) [Off Balance Sheet Arrangements](index=41&type=section&id=Off%20Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements that could significantly impact the company's financial condition - The company has no off-balance sheet arrangements that are material to its financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources[165](index=165&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=41&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's primary market risk exposure, which is interest rate risk associated with its variable-rate long-term debt, specifically the senior secured credit facility - The primary market risk exposure is interest rate risk from variable-rate long-term debt, mainly the senior secured credit facility[166](index=166&type=chunk) - As of June 30, 2025, outstanding variable-rate debt included **$392 million** from **Term Loan B-1** and **$40 million** from the **Revolving Credit Facility**, with a weighted-average effective interest rate of **6.60%**[167](index=167&type=chunk) - A **50 basis point** increase in the applicable interest rate would increase annual interest incurred by **$2.2 million**[167](index=167&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and states that there have been no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[170](index=170&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[171](index=171&type=chunk) PART II. OTHER INFORMATION This section includes disclosures on legal proceedings, risk factors, equity security sales, and other miscellaneous information [ITEM 1. LEGAL PROCEEDINGS](index=41&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to the detailed discussion of the company's legal proceedings within the financial statement notes - Information regarding legal proceedings is contained in Note 10 — Commitments and Contingencies in Part I, Item 1: Financial Statements[172](index=172&type=chunk) [ITEM 1A. RISK FACTORS](index=41&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section directs readers to the comprehensive risk factors discussed in the company's Annual Report on Form 10-K, noting no material changes in the current reporting period - Readers should consider risk factors discussed in Part I, Item 1A of the Annual Report, as they could materially affect the business[173](index=173&type=chunk) - No material changes to the risk factors described in the Annual Report have occurred[173](index=173&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=42&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's common stock repurchase activity for the three months ended June 30, 2025, under its authorized share repurchase program - The company repurchases common stock under a Board-authorized share repurchase program, which can be suspended or discontinued at any time[175](index=175&type=chunk) | Period | Total Number of Shares Purchased | Average Price per Share | | :--------------- | :------------------------------- | :---------------------- | | April 1-30, 2025 | — | $— | | May 1-31, 2025 | 321,516 | $28.67 | | June 1-30, 2025 | 192,634 | $28.13 | | **Total** | **514,150** | **$28.47** | - As of June 30, 2025, **$77.2 million** remained available for repurchase under the program[176](index=176&type=chunk) [ITEM 5. OTHER INFORMATION](index=42&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms that the company's directors and officers did not adopt or terminate any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter - Directors and officers did not adopt or terminate any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[178](index=178&type=chunk) [ITEM 6. EXHIBITS](index=43&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications and XBRL-related documents - Exhibits include certifications from the CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act) and various Inline XBRL documents[179](index=179&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) This section contains the required signatures from the company's principal executive, financial, and accounting officers, certifying the filing of the Quarterly Report on Form 10-Q - The report is signed by Blake L. Sartini (Chairman of the Board and CEO), Charles H. Protell (President and CFO), and Viktoryia G. Pulliam (Senior Vice President and Chief Accounting Officer)[181](index=181&type=chunk)[182](index=182&type=chunk)

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, marking an earnings surprise of +21.43% [1][2] Financial Performance - The company posted revenues of $163.62 million for the quarter ended June 2025, which was 1.49% below the Zacks Consensus Estimate and a decrease from $167.33 million year-over-year [2] - Over the last four quarters, Golden Entertainment has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Golden Entertainment shares have declined approximately 14.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $160.9 million, and for the current fiscal year, it is $0.45 on revenues of $654.06 million [7] - The trend of estimate revisions for Golden Entertainment was unfavorable prior to the earnings release, which may impact future stock movements [6][5] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenue of $163.6 million and EBITDA of $38.4 million, with revenue increasing by 3% and EBITDA up by 7% compared to the prior year [6][12] - The EBITDA margin improved by 170 basis points to over 46% for the Nevada locals casinos segment [6] Business Line Data and Key Metrics Changes - The Nevada locals casinos segment posted its highest quarterly EBITDA in two years, with EBITDA growth of over 9% [6] - The casino resort segment experienced a 3% decline in revenue and a 5% decline in EBITDA, primarily due to low table game hold in Laughlin [7] - The Tavern business saw a 7% year-over-year revenue decline, although EBITDA stabilized in July compared to the previous year [10] Market Data and Key Metrics Changes - The occupancy rate for The Strat was 69%, down 4% from the previous year, with June occupancy falling to 60% [8] - The company anticipates stabilization of bookings in August and expects increased attendees at the Las Vegas Convention Center in Q4 and Q1 2026 [8][12] Company Strategy and Development Direction - The company is focused on managing its cost structure, investing in its own assets, and returning capital to shareholders, with M&A being a lower priority due to the uncertain business environment and elevated interest rates [11][12] - The company expects to benefit from recent tax legislation providing relief on tips and overtime, which will support organic growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that summer business volatility is expected to abate in the fall, with positive outlooks for local properties and the Laughlin market [12] - There are expectations for improved demand dynamics and occupancy rates, particularly for weekends [22] Other Important Information - The company ended the quarter with $432 million in funded debt and $52 million in cash, having repurchased over 500,000 shares for $14.6 million in Q2 [11] - The company has $77 million remaining on its current buyback authorization [11] Q&A Session Summary Question: Expected impacts from the passing of the big beautiful bill - Management expects to benefit from accelerated depreciation, estimating an additional $10 to $15 million in tax shield, translating to $2 to $3 million in cash flow [14][15] Question: Growth outlook for the second half of the year - Management sees a positive outlook for local properties and Laughlin, with some recovery expected for The Strat post-midsummer [18][20] Question: Strategy to mitigate recent depressed prices and rates on the Strip - The company is focused on managing costs, including curtailing restaurant hours during midweek and adjusting services based on occupancy [22][24] Question: M&A landscape and opportunities - Management indicated that while there are potential targets, M&A is not a focus until the business stabilizes and interest rates decrease [28][30] Question: Customer spending at The Strat - Despite lower foot traffic, spending per trip remains consistent, with positive trends in casino metrics and strong performance from the top of the world restaurant [32][34] Question: Growth outlook for Laughlin - Management is optimistic about Laughlin's growth due to its prime location, new marketing strategies, and the expected increase in discretionary spending from customers benefiting from tax breaks [39][41]

Company Overview - Golden Entertainment focuses on casino and branded tavern operations in Nevada[6,8] - The company owns real estate with excess land, providing potential development opportunities[11,12] - The company has an experienced management team aligned with shareholders[6] Market Position - Golden Entertainment operates 8 Nevada casinos with approximately 4,400 slots and 99 tables[7] - The company also operates 72 Nevada taverns with approximately 1,100 slots[7,26] - The company's loyalty program, True Rewards, includes over six million players[30] Financial Performance - As of June 30, 2025, the company's net debt was $385 million[32] - Since July 2023, the company has returned $216 million of capital to shareholders[33] - The company has $392 million in 1st lien term loans and $40 million drawn on a revolver as of June 30, 2025[36,37] Nevada Market - Nevada's total gaming Gross Gaming Revenue (GGR) in 2024 was $156 billion[17] - Las Vegas Strip GGR in 2024 was $88 billion, while Nevada locals GGR was $36 billion[17] - Las Vegas visitation reached 425 million in 2024[18]

Executive Summary [Consolidated Financial Highlights](index=1&type=section&id=Consolidated%20Financial%20Highlights) Golden Entertainment's Q2 2025 revenues decreased to **$163.6 million**, but net income rose significantly to **$4.6 million** ($0.17 diluted EPS) from $0.6 million, while Adjusted EBITDA slightly declined to **$38.4 million** Consolidated Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------- | :-------- | :-------- | :----------- | | Revenues | $163.6M | $167.3M | -$3.7M | | Net Income | $4.6M | $0.6M | +$4.0M | | Diluted EPS | $0.17 | $0.02 | +$0.15 | | Adjusted EBITDA | $38.4M | $41.2M | -$2.8M | [Capital Allocation](index=1&type=section&id=Capital%20Allocation) The Company maintained its quarterly cash dividend of **$0.25 per share** and repurchased **514,150 shares** for **$14.6 million** in Q2 2025, with **$77.2 million** remaining under its share repurchase authorization - The Company paid a quarterly cash dividend of **$0.25 per share** on July 9, 2025, and authorized the next recurring quarterly cash dividend of **$0.25 per share** payable on October 3, 2025[3](index=3&type=chunk) Share Repurchase Program | Metric | Q2 2025 | | :-------------------------------- | :------------ | | Shares Repurchased | 514,150 | | Total Repurchase Value | $14.6 million | | Remaining Authorization (as of June 30, 2025) | $77.2 million | [Debt and Liquidity Position](index=1&type=section&id=Debt%20and%20Liquidity%20Position) As of June 30, 2025, Golden Entertainment's total principal debt outstanding was **$436.9 million**, with a cash balance of **$52.3 million** and **$200 million** remaining availability under its revolving credit facility Debt and Liquidity Summary | Metric | As of June 30, 2025 | | :-------------------------------- | :------------------ | | Total Principal Debt Outstanding | $436.9 million | | - Term Loan Borrowings | $392 million | | - Revolving Credit Facility Borrowings | $40 million | | Cash and Cash Equivalents | $52.3 million | | Remaining Revolving Credit Facility Availability | $200 million | Corporate Information [About Golden Entertainment](index=3&type=section&id=About%20Golden%20Entertainment) Golden Entertainment operates a diverse entertainment platform, including **eight casinos** and **72 gaming taverns** across Nevada, with approximately **5,500 slots**, **100 table games**, and **6,000 hotel rooms** - Golden Entertainment operates a **diversified entertainment platform** of gaming and hospitality assets[11](index=11&type=chunk) Operational Assets | Asset Category | Quantity | | :----------------- | :------- | | Casinos | 8 | | Gaming Taverns | 72 | | Slots | ~5,500 | | Table Games | 100 | | Hotel Rooms | 6,000 | [Investor Relations](index=1&type=section&id=Investor%20Relations) Golden Entertainment will host a conference call and webcast on **August 7, 2025**, to discuss its Q2 2025 financial results, with replay options available, and key investor contacts are Charles H. Protell and James Adams - The Company will host a webcast and conference call on **August 7, 2025, at 5:00 p.m. Eastern Time** to discuss the 2025 second quarter results[6](index=6&type=chunk) - A replay of the audio webcast will be available on the Company's website, **https://www.goldenent.com/conference-calls.php**[6](index=6&type=chunk) - Investor contacts include **Charles H. Protell**, President and Chief Financial Officer, and **James Adams**, VP Corporate Finance and Treasurer[12](index=12&type=chunk) Financial Performance Details [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail Q2 2025 revenues and expenses, showing a slight decrease in total revenues but a substantial increase in net income due to lower non-operating expenses, particularly the absence of a significant prior-year loss on debt extinguishment Consolidated Statements of Operations (Three Months Ended June 30) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :----------- | | **Revenues** | | | | | Gaming | $78,730 | $78,247 | +$483 | | Food and beverage | $41,068 | $43,113 | -$2,045 | | Rooms | $29,424 | $31,422 | -$1,998 | | Other | $14,398 | $14,552 | -$154 | | **Total revenues** | **$163,620** | **$167,334** | **-$3,714** | | **Expenses** | | | | | Gaming | $20,465 | $20,764 | -$299 | | Food and beverage | $33,776 | $34,300 | -$524 | | Rooms | $15,946 | $16,452 | -$506 | | Other | $4,334 | $2,784 | +$1,550 | | Selling, general and administrative | $54,566 | $56,087 | -$1,521 | | Depreciation and amortization | $22,475 | $22,616 | -$141 | | Loss on disposal of assets | $79 | — | +$79 | | Loss (gain) on sale of business | — | $792 | -$792 | | Preopening expenses | $63 | $4 | +$59 | | **Total expenses** | **$151,704** | **$153,799** | **-$2,095** | | **Operating income** | **$11,916** | **$13,535** | **-$1,619** | | **Non-operating expense** | | | | | Interest expense, net | $(7,727) | $(8,610) | +$883 | | Loss on debt extinguishment and modification | — | $(4,446) | +$4,446 | | **Total non-operating expense, net** | **$(7,727)** | **$(13,056)** | **+$5,329** | | **Income before income tax benefit (provision)** | **$4,189** | **$479** | **+$3,710** | | Income tax benefit (provision) | $443 | $144 | +$299 | | **Net income** | **$4,632** | **$623** | **+$4,009** | | **Diluted Net income per share** | **$0.17** | **$0.02** | **+$0.15** | [Segment Performance and Adjusted EBITDA Reconciliation](index=7&type=section&id=Segment%20Performance%20and%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA reconciliation reveals varying segment performance, with **Nevada Locals Casinos** showing growth in both revenue and Adjusted EBITDA for Q2 2025, while **Nevada Casino Resorts** and **Nevada Taverns** experienced declines Segment Performance and Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :----------- | | **Revenues by Segment** | | | | | Nevada Casino Resorts | $98,196 | $101,093 | -$2,897 | | Nevada Locals Casinos | $38,911 | $37,866 | +$1,045 | | Nevada Taverns | $26,255 | $28,152 | -$1,897 | | Corporate and Other | $258 | $223 | +$35 | | **Total revenues - Continuing Operations** | **$163,620** | **$167,334** | **-$3,714** | | **Adjusted EBITDA by Segment** | | | | | Nevada Casino Resorts | $25,970 | $27,392 | -$1,422 | | Nevada Locals Casinos | $18,063 | $16,928 | +$1,135 | | Nevada Taverns | $5,877 | $7,791 | -$1,914 | | Corporate and Other | $(11,470) | $(10,919) | -$551 | | **Total Adjusted EBITDA - Continuing Operations** | **$38,440** | **$41,192** | **-$2,752** | - System implementation costs represent expenses related to the implementation of new enterprise resource planning, finance, payroll and human capital management software[17](index=17&type=chunk) Disclosures [Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future events, company strategies, and financial projections, which are subject to various risks and uncertainties that could cause actual results to differ materially, and the Company disclaims any obligation to update them - This press release contains forward-looking statements regarding future events and the Company's future results, including strategies, objectives, business opportunities, anticipated growth, and financial projections[7](index=7&type=chunk)[8](index=8&type=chunk) - Forward-looking statements are subject to assumptions, risks, and uncertainties that may change at any time, and actual results could differ materially from those expressed[8](index=8&type=chunk) - The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise[8](index=8&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Golden Entertainment uses **Adjusted EBITDA** as a non-GAAP financial measure, a key metric for its chief operating decision maker and investors to assess performance by excluding specific non-core expenses, and it should not be considered in isolation from GAAP - **Adjusted EBITDA** is used as the primary metric by the chief operating decision maker and investors for measuring past and future performance[9](index=9&type=chunk) - It provides useful information by excluding specific expenses and gains not indicative of core operating results and is tied to executive compensation[9](index=9&type=chunk) - 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[9](index=9&type=chunk) [Definition of Adjusted EBITDA](index=3&type=section&id=Definition%20of%20Adjusted%20EBITDA) Adjusted EBITDA is defined as earnings before depreciation, amortization, non-cash lease benefit or expense, share-based compensation, asset disposal gains or losses, debt extinguishment losses, preopening expenses, impairment, interest, income taxes, and other non-cash or non-recurring items - Adjusted EBITDA is defined as earnings before depreciation and amortization, non-cash lease benefit or expense, share-based compensation expense, gain or loss on disposal of assets and businesses, loss on debt extinguishment and modification, preopening and related expenses, impairment of assets, interest, income taxes, and other non-cash charges and non-recurring expenses[10](index=10&type=chunk)

Group 1 - The article discusses Golden Entertainment (NASDAQ: GDEN), a small operator of casinos and taverns located in Las Vegas, Laughlin, and Pahrump [1] - Golden Entertainment is known for its Stratosphere Las Vegas property, which is referred to as The STRAT, and is noted for its impressive views [1]

Group 1 - Boyd Gaming (BYD) has been a top pick in the casino sector since last year, with the stock increasing over 40% compared to the S&P's 18% return in the same period [1]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $160.8 million, a decrease of $13.2 million, or 8%, compared to $174.0 million in the prior year period[109] - Gaming revenues decreased by $6.7 million, primarily due to the exclusion of results from distributed gaming operations sold on January 10, 2024[110] - Operating income for the three months ended March 31, 2025, was $11.1 million, down from $80.1 million in the prior year period[109] - Net income for the three months ended March 31, 2025, was $2.5 million, compared to $42.0 million in the prior year period[109] - Adjusted EBITDA for the same period was $37.581 million, down $3.411 million, or 8.3%, from $40.992 million in the prior year[123] - Nevada Casino Resorts segment revenues decreased by $6.8 million, or 7%, with Adjusted EBITDA down by $2.1 million, or 8%[124] - Nevada Locals Casinos segment revenues decreased by $0.2 million, or 0.4%, while Adjusted EBITDA increased by $0.3 million, or 2%[126] - Nevada Taverns segment revenues decreased by $0.3 million, or 1%, and Adjusted EBITDA decreased by $0.2 million, or 3%[127] Transactions and Acquisitions - The company completed the sale of its distributed gaming operations in Nevada for cash consideration of $213.5 million on January 10, 2024[96] - The company acquired the operations of Great American Pub for $7.3 million on April 22, 2024, adding two tavern locations to its portfolio[97] Expenses and Costs - Selling, general and administrative expenses decreased by $5.8 million, or 10%, for the three months ended March 31, 2025, primarily due to reduced transaction costs and advertising expenses[112] - The increase in depreciation and amortization expenses of $0.3 million, or 2%, was primarily related to the addition of GAP tavern locations and new assets placed in service[114] - The gain on sale of business of $69.7 million in the prior year period was related to the sale of distributed gaming operations[116] Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, totaled $50.5 million, with $225 million available under the Revolving Credit Facility[130] - Net cash provided by operating activities increased by $2.8 million, or 11%, to $28.6 million for the three months ended March 31, 2025[134] - Net cash used in financing activities increased by $16.2 million, or 210%, to $23.9 million for the three months ended March 31, 2025, primarily due to stock repurchases and cash dividends[136] - The company intends to fund capital expenditures through operating cash flows and the Revolving Credit Facility, with ongoing refurbishment and maintenance at its facilities[140] - As of March 31, 2025, the company had $393 million in outstanding Term Loan B-1 borrowings and $15 million under the Revolving Credit Facility[153] - The weighted-average effective interest rate on the company's outstanding borrowings was 6.60% for the three months ended March 31, 2025[154] - A 50 basis point increase in the applicable interest rate would increase interest incurred by $2.0 million over a twelve-month period[154] Regulatory and Market Risks - The gaming industry is subject to extensive regulation, and changes in laws or regulations could materially affect the company's financial position[149] - The company’s casino properties and branded taverns in Nevada experience seasonal revenue fluctuations, with lower revenues in summer and higher revenues in fall[147] - The primary exposure to market risk is interest rate risk associated with variable rate long-term debt[152] Accounting and Valuation - The estimated fair value of an indefinite-lived trade name did not significantly exceed its carrying value as of October 1, 2024, indicating potential impairment risks[145] - The company has no off-balance sheet arrangements that could materially affect its financial condition or results[151] - There were no material changes to critical accounting policies and estimates during the three months ended March 31, 2025[146]

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing improvement from a loss of $0.37 per share a year ago [1][2] Financial Performance - The company posted revenues of $160.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.91% and down from $174.05 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Stock Performance - Golden Entertainment shares have declined approximately 18.2% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $170.28 million, and for the current fiscal year, it is $0.58 on revenues of $666.38 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Snail, Inc. (SNAL), is expected to report a quarterly loss of $0.11 per share, indicating a year-over-year change of -120% [9]