Golden Entertainment, headquartered in Las Vegas, is optimistic to meet its previously expressed long-term growth goals, following a 13.65 percent fall in first quarter sales from $239.8 million in 2019 to $207.2 million.
The company has seen distributed gaming operations reopen in Montana earlier in the month, releasing its first financial report, becoming the first casino operator to record the deep impact of COVID-19.
Blake Sartini, chairman and CEO of Golden Entertainment, shared his appreciation of the company’s continuing goals to healthcare professionals, first responders and other critical workers: “Over the last several years we have executed on a strategic plan to put the company on a path for long-term growth. This plan included capital investment to renovate and reposition The Strat, accretive acquisitions that have grown our market share in Laughlin, pursuing new distributed gaming markets, and the introduction of our True Rewards one-card loyalty program.
“Our current cash position, capital structure with no near-term debt maturities, and diverse operations of wholly-owned casinos and distributed gaming operations across multiple jurisdictions will position Golden Entertainment favourably to achieve long-term success as we are allowed to reopen our properties.”
Seeing the results significantly affected by the current health crisis, the company’s casino sales dropped 15.4 per cent to $128 million (2019: $151.4 million), with distributed gaming dropping 10.6 percent to $79 million (2019: $88.4 million). Net loss was down from $8 m to $32.6 m.
Sartini added: “The covid-19 pandemic forced the mandated closure of all our operations beginning in mid-March, and continues to have an unprecedented impact on our business and the gaming and entertainment industry in general.
“This is reflected in our first quarter financial results, notwithstanding our significant year-over-year growth through February prior to the suspension of our operations. Since the closures, we have focused on supporting our team members, staying connected to our customers, and working to establish appropriate sanitation protocols to offer a safe environment when we are allowed to reopen.
“In order to preserve the company’s liquidity and position ourselves to withstand the ongoing interruption to our operations, we reduced our cash operating expenses, deferred all capital expenditures and drew down our $200m availability under our revolving credit facility. The actions that we have taken since the closure of our operations have positioned Golden Entertainment to withstand the current disruption in our business for the foreseeable future.”