Quarter 4 revenue and earnings from Golden Entertainment decrease, but net income rises
Informal Take: Here's Golden Entertainment's Q4 2024 financial performance summary and a look at how their commercial casinos in Nevada are rockin' n' rollin', according to Buck Wargo's website.
talkin' 'bout Golden Entertainment's Q4 2024 juice
Despite the rhythmic ups and downs, Golden Entertainment dived into the financial results for the final quarter of 2024 with revenue hitting $164.2 mil compared to Q4 2023's $230.7 mil. Net income for Q4 2024 was a significant move in the positive direction, raking in $3 mil or $0.10 per fully diluted share. This was a substantial shift when compared to the hefty net loss of $9.4mil, or a $0.33 hit per share, spotted in Q4 2023.
The flow of financials was tainted by an asset impairment charge of $12.1mil associated with the Colorado Belle Casino Resort, which remains on ice, according to Golden Entertainment.
Diggin' into the numbers
EBITDA for Q4 2024 clocked in at $39.2 mil compared to the $48.8 mil recorded in the same quarter a year ago. The drop-off was primarily attributed to the exclude-and-now game, with the results of the Nevada distributed gaming operations sold in January 2024 taking a hike.
Golden Entertainment: A 2025 Vision
Blake Sartini, Golden Entertainment's fearless leader, chimed in, proclaiming, "Our fourth-quarter performance improved sequentially over the third quarter, and we anticipate business conditions will continue to improve in 2025."
For 2025, the company's focus lies on shoring up their assets, returning sweet, sweet dividends to shareholders, and chasing after rad, potential strategic opportunities.
Golden Entertainment's Full-Year Scorecard
As for the overall pitch, the company revenue hit $666.8 mil compared to $1.1 bil in 2023. The net income shifts were mixed; in 2024, the balancing act yielded a $50.7 mil score, or $1.71 per fully diluted share, compared to $255.8 mil, or an $8.31 payday per share in 2023.
The 2024 earnings included a $69.2mil gain on the sale of the Nevada distributed gaming operations, whereas the 2023 earnings cheered for a $303.2mil profit from the sales of the Rocky Gap Casino Resort and distributed gaming operations in Montana.
EBITDA for the full year slid to $155.4 mil compared to the $222.5 mil recorded in 2023. The key culprit behind the decline was the exclusion of some ace casino assets as a result of their respective sales in 2024.
Time for a bit of Golden Entertainment stock picking
On February 25, the company's Board of Directors greenlit the next recurring quarterly cash dividend package, doling out $0.25 per share of the company's common stock. This treat will be dolled out on April 2 to shareholders who locked themselves in as of March 21.
Golden Entertainment spent $36.2 mil in the 4th quarter of 2024, snatching up 1.1 million shares of common stock at an average going rate of $32.65 per share. For the year, the company scooped up $91.5 mil worth of common stock, making 2.9 million shares their own, all at an average price of $31.63 per share. In 2024, the company handed out a total of $21.3 mil in cash dividends.
Slay the Debt Monster
By the end of 2024, Golden Entertainment's debt dashboard displayed total outstanding debt of $417.6 mil, primarily in the form of term-loan borrowings ($394 mil) and outstanding borrowings under the revolving credit facility ($20 mil). Bye-bye! The company waved goodbye to a whopping $282.4 mil in debt obligations during 2024.
The Future of Golden Entertainment
As of December 31, the company's piggy bank held $57.7 mil in cash and cash equivalents with $220 mil in available credit. Stay tuned, folks! Golden Entertainment's story is far from over.
Enrichment Data:
- Enhanced Reading: The search results did not unearth specific financial figures for Golden Entertainment's Nevada commercial casinos during the whole of 2024. However, they provided tangible insights into the company's performance, as well as the broader Nevada gaming landscape:
- Golden Entertainment's narrative: Golden Entertainment's strategy leans toward solidifying their balance sheet and focusing intensely on Nevada gaming operations. Although the full-year 2024 financials aren't laid out, the company reported a miss on Q4 2024 EPS estimates of $0.22 and revenue of $164.2 mil[2].
- Nevada Gaming Scene: In the 2024 fiscal year, Nevada's land-based gambling joints saw a lucrative 3.4% uptick in gaming revenue and a booming 5.5% surge in overall revenue, despite a hefty 24.4% nose dive in state profits[5]. The Silver State's casinos cheered an impressive net income of more than $2.6 bil, with the Las Vegas Strip experiencing a substantial decrease in profits.
- Despite the challenges, Golden Entertainment's Q4 2024 financial performance shows a significant improvement in net income compared to Q4 2023, as they managed to turn a net loss into a profit.
- With the focus on shoring up assets, returning dividends to shareholders, and pursuing strategic opportunities, Golden Entertainment's vision for 2025 suggests a continued emphasis on the banking and insurance sectors, particularly within the Nevada gaming industry, given their strong presence and growth potential.
