From Golden Entertainment:
– Casino resorts and distributed gaming operations reopened in Q2
– June financial results significantly exceeded expectations
– Ongoing operating and marketing expenses meaningfully reduced
– Repaid $190 million of $200 million borrowed in Q1 under revolving credit facility
LAS VEGAS–(BUSINESS WIRE)–Aug. 6, 2020– Golden Entertainment, Inc. (NASDAQ:GDEN) (“Golden Entertainment” or the “Company”) today reported financial results for the second quarter ended June 30, 2020.
Blake Sartini, Chairman and Chief Executive Officer of Golden Entertainment, commented, “Our reopenings began in May with our Montana distributed operations, followed by our Nevada operations on June 4th and our Maryland casino on June 19th. I want to thank our team members for their dedication to our Company and their efforts to reopen our properties safely and efficiently. Our diversified gaming platform, with nearly 80% of our historical property Adjusted EBITDA derived from locals-oriented or regional gaming operations, is positioned to recover quickly from the impact of the mandated shutdowns.
“Our results since reopening have exceeded our expectations, with June Adjusted EBITDA up 14% over last June even with fewer days of operations. Performance in June was led by our Las Vegas Locals casinos and taverns which achieved double-digit revenue growth and collectively doubled their Adjusted EBITDA contribution compared to the same period last year. We generated a similar strong performance in June from our reopened Laughlin and Pahrump casinos, which increased revenue and grew Adjusted EBITDA by over 50%. In addition to strong gaming revenues across most of our businesses, we focused on significantly lowering operating and marketing expenses. For our Nevada casino operations, excluding The STRAT, our expense management initiatives drove an Adjusted EBITDA margin improvement of 2,000 basis points to almost 50% in June. Our distributed gaming businesses also performed well in June across Nevada and Montana with revenue growth of 6% and an Adjusted EBITDA increase of more than 18%.
“Given our quick actions in March to reduce expenses and increase our liquidity by drawing down $200 million on our existing revolving credit facility, we had no need to raise additional capital during the shutdown. In June, we repaid $190 million of the $200 million drawn on the Company’s revolving credit facility, which remains available to us for potential future liquidity needs.
“Our strong recent financial performance, significant and sustainable margin improvement, as well as our diverse local and regional operations, gives us confidence that we will recover from the current challenges and remain well-positioned for future opportunities.”
ARTICLE in the Las Vegas Review Journal
