Golden Entertainment(US:GDEN)2025-11-06 13:10Revenue Performance - Total revenues for the three months ended September 30, 2025, decreased by $6.4 million, or 4%, compared to the prior year period, primarily due to declines in food and beverage, rooms, and other revenues [121]. - For the nine months ended September 30, 2025, total revenues decreased by $23.3 million, or 5%, with declines in gaming, food and beverage, rooms, and other revenues [122]. - Total revenues for the three months ended September 30, 2025, were $154.8 million, a decrease of $6.4 million, or 4%, compared to the prior year [137]. - Nevada Casino Resorts revenues decreased by $6.5 million, or 7%, for the three months ended September 30, 2025, primarily due to lower gaming and room revenues [138]. - Revenues for Nevada Taverns decreased by $0.3 million, or 1%, for the three months ended September 30, 2025, primarily due to decreases in food and beverage and other revenues [144]. Gaming Operations - Gaming revenues increased by $1.4 million during the same period, driven mainly by the Nevada Taverns segment [121]. - Nevada Locals Casinos revenues increased by $0.4 million, or 1%, for the three months ended September 30, 2025, driven by higher gaming revenues [142]. Operating Income and Expenses - Total operating income for the three months ended September 30, 2025, was $882, a significant decrease from $6,728 in the prior year [120]. - The net loss for the three months ended September 30, 2025, was $4.7 million, compared to a net income of $5.2 million in the prior year [120]. - Operating expenses decreased by $1.4 million, or 1.9%, for the three months ended September 30, 2025, primarily due to decreases in food and beverage and rooms operating expenses [123]. - For the nine months ended September 30, 2025, operating expenses decreased by $9.5 million, or 4%, mainly from declines in gaming, food and beverage, and rooms operating expenses [124]. - Selling, general and administrative (SG&A) expenses decreased by $1.5 million, or 3%, for the three months ended September 30, 2025, attributed to lower utility, legal, and advertising costs [125]. - SG&A expenses for the nine months ended September 30, 2025, decreased by $8.9 million, or 5%, influenced by trends observed in the previous quarter [126]. EBITDA and Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $30.5 million, down $3.5 million, or 10%, from the previous year [137]. - Adjusted EBITDA for the nine months ended September 30, 2025 decreased by $2.2 million, or 10%, compared to the prior year period, attributed to higher labor costs and cost of goods [145]. Cash Flow and Financing - As of September 30, 2025, the company had $58.3 million in cash and cash equivalents and $205 million in borrowing availability under its $240 million Revolving Credit Facility [148]. - Net cash provided by operating activities increased by $3.0 million, or 4%, to $72.8 million for the nine months ended September 30, 2025, compared to the prior year [151]. - Net cash used in investing activities was $32.8 million for the nine months ended September 30, 2025, primarily related to capital expenditures at Nevada Casino Resorts [152]. - Net cash used in financing activities decreased by $314.5 million, or 89%, to $39.5 million for the nine months ended September 30, 2025, primarily due to the repayment of 2026 Unsecured Notes [153]. - The weighted-average effective interest rates on outstanding borrowings under the Credit Facility were 6.60% and 6.62% for the three and nine months ended September 30, 2025, respectively [169]. Strategic Actions and Market Conditions - The company completed the sale of its distributed gaming operations in Nevada for cash consideration of $213.5 million on January 10, 2024 [107]. - The company acquired the operations of Great American Pub for $7.3 million on April 22, 2024, adding two tavern locations to its portfolio [108]. - The company may pursue expansion opportunities in existing or new markets, which could require substantial investments funded through cash flows or additional financing [160]. - The company anticipates continued challenges in hotel occupancy rates impacting overall revenue performance [121]. - The company’s operating results are significantly affected by economic conditions and consumer spending, with potential declines adversely impacting revenues [149]. - The decrease in other revenues was influenced by changes in revenue recognition from certain taverns transitioning from fixed rental fees to gaming revenues [145].