Golden Entertainment(US:GDEN)2025-05-09 18:17Financial 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]