Key points:
- Q3 revenue decreased by 37.4% year-on-year to $161.2m
- Adjusted EBITDA fell by 36.1% to $34.0m
- Net income for the quarter was $5.2m, compared to $241.2m in Q3 2023, influenced by asset sales in 2023
- The Board authorised a recurring dividend of $0.25 per share and increased the share repurchase program by $100m
Golden Entertainment reported Q3 2024 revenue of $161.2m, a 37.4% decline year-on-year. The reduction primarily resulted from the exclusion of revenues from divested properties, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada.
These divestitures were finalised between July 2023 and January 2024, as Golden refocused on its core Nevada operations.
Adjusted EBITDA also declined by 36.1%, totalling $34.0m. The decline reflects the impact of divested assets on the company's financial results.
Net income for Q3 2024 was $5.2m, or $0.18 per diluted share, down significantly from $241.2m, or $7.83 per diluted share, in Q3 2023.
2023 net income was boosted by a $305.8m gain from asset sales, highlighting the effect of divestitures on comparative results.
Segment performance: Nevada Casino resorts and taverns
Golden’s Nevada operations remain central to its business. The Nevada Casino Resorts segment generated $99.5m in revenue, reflecting a 5.7% decrease.
The Nevada Locals Casinos segment also reported a decline, with revenue falling 6.6% to $35.4m.
Adjusted EBITDA for Nevada operations decreased, with Nevada Taverns reporting a 29.3% decline to $5.3m, impacted by the divested gaming assets.
Shareholder returns and capital management
Golden Entertainment reportedly continued to prioritise shareholder returns in Q3 2024. The Board authorised a recurring quarterly dividend of $0.25 per share, payable in January 2025. Additionally, Golden expanded its share repurchase program by $100m, increasing the total authorisation to $131.4m.
In Q3 2024, Golden repurchased 815,116 shares of its common stock at an average price of $31.65 per share, totalling $25.8m.
Following the end of the quarter, Golden repurchased an additional 134,613 shares for $4.2m, bringing year-to-date repurchases to 1.94 million shares at an average price of $30.70 per share, amounting to $59.5m in total buybacks.
Debt and liquidity position
As of 30 September 2024, Golden held $68.6m in cash and cash equivalents. The opeator's total debt was $399.0m, primarily comprising $395.0m in term loan borrowings. Golden maintained an undrawn $240m revolving credit facility, supporting its financial flexibility amid market shifts.
Past results
In Q2 2024, Golden reported a 41.6% revenue decline attributed to the divestitures of Rocky Gap Casino Resort and distributed gaming operations. The Q3 results highlight Golden's continued restructuring, as it focuses on core assets in Nevada and returns capital to shareholders through dividends and share buybacks.
