Golden Entertainment achieved new quarterly highs in revenue, net income, and adjusted EBITDA, as the company’s operating results improved over the previous quarter.
Revenue increased to $292.5 million (from $76 million in 2020), net income increased to $103 million (from a loss of $78.6 million in 2020), and adjusted EBITDA improved from $5.5 million to $91 million in 2021, compared to a loss of $5.5 million in 2020.
Each area of gaming, food and beverage, and rooms saw strong year-over-year increases, reaching $204.9 million (2020: $56.6 million), $44.9 million (2020: $10.1 million), and $12.3 million (2020: $3.1 million), respectively.
The Golden Entertainment portfolio’s casino revenue climbed to $170.8 million in 2020, up from $39.4 million in 2020, with adjusted EBITDA soaring from $1.9 million to $78.5 million.
In the second quarter of 2021, distributed gaming revenue was $121.4 million, up from $36.3 million the year before, with adjusted EBITDA of $24.9 million, up from $900,000 the year before.
Strong visitation levels
Golden Entertainment’s chairman and CEO, Blake Sartini, said: “These results highlight strong levels of visitation and spend at all of our properties, including The Strat, combined with the margin improvement we have sustained over the last twelve months.
“During the quarter, we deployed cash generated from operations to repay over $50m of outstanding debt obligations including $47m of our term loan. After the quarter ended, we received a $60m cash payment from Caesars Entertainment related to their acquisition of William Hill, and have the potential to receive up to an additional $15m payment from Caesars depending on the sale value for William Hill’s UK business.
“We appreciate our longstanding relationship with William Hill and look forward to their continued operation of the sportsbooks in our Nevada casinos.
“After receiving the payment from Caesars, our pro forma LTM net leverage ratio is 3.8x and we expect to continue to reduce our leverage through the end of the year which will provide additional strategic flexibility and position us to return capital to our shareholders.”