Golden Entertainment(GDEN) - 2025 Q2 - Quarterly Results

Executive Summary Consolidated Financial Highlights 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 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] 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 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 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] Operational Assets | Asset Category | Quantity | | :----------------- | :------- | | Casinos | 8 | | Gaming Taverns | 72 | | Slots | ~5,500 | | Table Games | 100 | | Hotel Rooms | 6,000 | Investor Relations 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] - 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] Financial Performance Details Consolidated Statements of Operations 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 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] Disclosures Forward-Looking Statements 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][8] - 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] - The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise[8] Non-GAAP Financial Measures 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] - It provides useful information by excluding specific expenses and gains not indicative of core operating results and is tied to executive compensation[9] - 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] Definition of Adjusted EBITDA 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]