Core Insights - Golden Entertainment reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.22 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -54.55% [1] - The company posted revenues of $164.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.08%, and down from $230.69 million year-over-year [2] - The stock has underperformed the market, losing about 0.6% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $173.05 million, and for the current fiscal year, it is $0.84 on revenues of $684.82 million [7] - The estimate revisions trend for Golden Entertainment is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Gaming industry is currently in the top 22% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Another company in the same industry, GDEV Inc., is expected to report quarterly earnings of $0.17 per share, reflecting a year-over-year change of -66% [9]

Revenue Performance - Fourth quarter 2024 revenues were $164.2 million, down 28.8% from $230.7 million in Q4 2023[3] - Full year 2024 revenues totaled $666.8 million, a decrease of 36.5% from $1.1 billion in 2023[4] - Total revenues for the three months ended December 31, 2024, were $164.204 million, a decrease of 28.8% compared to $230.691 million in the same period of 2023[18] - Total revenues for the year ended December 31, 2024, were $666.818 million, a decrease of 36.6% from $1,053.149 million in 2023[18] - Revenues from Nevada Casino Resorts decreased to $97.487 million in Q4 2024, down 7.5% from $104.796 million in Q4 2023[18] - Revenues from Nevada Locals Casinos increased slightly to $38.710 million in Q4 2024, compared to $38.467 million in Q4 2023, reflecting a growth of 0.6%[18] - Corporate and Other segment reported revenues of $285,000 in Q4 2024, down from $342,000 in Q4 2023[18] - Distributed Gaming operations generated $6.019 million in revenues for the year ended December 31, 2024, a decrease from $320.680 million in 2023[18] Net Income and Earnings - Net income for Q4 2024 was $3.0 million, or $0.10 per diluted share, compared to a net loss of $9.4 million, or a loss of $0.33 per share in Q4 2023[3] - Full year 2024 net income was $50.7 million, or $1.71 per diluted share, down from $255.8 million, or $8.31 per diluted share in 2023[4] - Net income for the year ended December 31, 2024, was $50.731 million, a significant decrease from $255.756 million in 2023[18] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $39.2 million, compared to $48.8 million in Q4 2023, reflecting a decline of 19.5%[3] - Full year 2024 Adjusted EBITDA was $155.4 million, down 30.1% from $222.5 million in 2023[4] - Adjusted EBITDA for the three months ended December 31, 2024, was $39.177 million, down 19.4% from $48.760 million in the prior year[18] - Adjusted EBITDA for the year ended December 31, 2024, was $155.375 million, down 30.1% from $222.522 million in 2023[18] Share Repurchase and Dividends - The company repurchased 1.1 million shares in Q4 2024 at an average price of $32.65, totaling $36.2 million[2] - The board authorized a quarterly cash dividend of $0.25 per share, payable on April 2, 2025[1] Debt and Cash Position - As of December 31, 2024, total debt outstanding was $417.6 million, with $394 million in term loan borrowings[5] - The company had cash and cash equivalents of $57.7 million and $220 million available on its revolving credit facility as of December 31, 2024[6] Other Financial Metrics - The company reported a loss on debt extinguishment and modification of $4.446 million for the year ended December 31, 2024[18]

Core Viewpoint - Wall Street analysts anticipate Golden Entertainment (GDEN) will report quarterly earnings of $0.22 per share, reflecting a year-over-year increase of 22.2%, while revenues are expected to decline by 26.6% to $169.43 million [1] Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment of initial projections by covering analysts [1][2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [2] Key Metrics Estimates - Analysts project 'Adjusted EBITDA- Nevada Casino Resorts' to be $27.30 million, down from $29.66 million in the previous year [4] - The forecast for 'Adjusted EBITDA- Nevada Taverns' is $7.15 million, compared to $8.18 million in the same quarter last year [4] - 'Adjusted EBITDA- Nevada Locals Casinos' is estimated at $16.80 million, down from $17.34 million year-over-year [5] - The consensus estimate for 'Adjusted EBITDA- Total Casinos (Casino Resorts & Locals Casinos)' is $41.80 million, compared to $48.76 million in the same quarter of the previous year [5] Stock Performance - GDEN shares have decreased by 8% over the past month, contrasting with a -2.3% change in the Zacks S&P 500 composite [6] - With a Zacks Rank 2 (Buy), GDEN is expected to outperform the overall market in the near future [6]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] Value Investing - Value investing is a popular strategy for identifying undervalued stocks, relying on traditional analysis of key valuation metrics [2] Company Analysis: Golden Entertainment (GDEN) - GDEN holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it a stock of interest for investors [3] - GDEN has a Price-to-Sales (P/S) ratio of 1.21, which is lower than the industry average P/S of 1.35, indicating potential undervaluation [4] - GDEN's Price-to-Cash Flow (P/CF) ratio is 7.55, significantly lower than the industry's average P/CF of 28.83, suggesting a favorable cash outlook [5] Company Analysis: Playtika (PLTK) - Playtika also has a Zacks Rank of 2 (Buy) and a Value grade of A, making it another attractive option for value investors [6] - Playtika's Forward P/E ratio is 10, compared to the industry average P/E of 28.77, indicating it may be undervalued [6] - The PEG ratio for Playtika is 1.68, which is favorable compared to the industry's average PEG ratio of 1.07 [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Golden Entertainment (GDEN) as a strong candidate for value investors due to its favorable metrics and strong earnings outlook [2][3][6] Company Analysis - Golden Entertainment (GDEN) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is a high-quality value stock [3] - GDEN has a Price-to-Sales (P/S) ratio of 1.22, which is lower than the industry average of 1.26, suggesting it may be undervalued [4] - The company has a Price-to-Cash Flow (P/CF) ratio of 7.41, significantly lower than the industry average of 28.82, indicating a strong cash outlook and potential undervaluation [5] - GDEN's P/CF has fluctuated between a high of 7.69 and a low of 2.28 over the past year, with a median of 2.82, further supporting its valuation appeal [5] - Overall, GDEN's metrics suggest it is likely undervalued, making it an attractive option for value investors [6]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and opinions [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the author in any mentioned companies, nor are there plans to initiate such positions in the near future [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - The content does not provide any investment recommendations or advice regarding the suitability of investments for particular investors [2].

Group 1 - Sony Group Corporation (SONY) has seen an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 2.2%, compared to the industry average of 0.0% [1] - Golden Entertainment, Inc. (GDEN) has experienced a 4.7% increase in the Zacks Consensus Estimate for its current year earnings in the last 60 days and has a dividend yield of 3.1%, also above the industry average of 0.0% [2] - Leidos Holdings, Inc. (LDOS) has had a 4.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

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]