Golden Entertainment Inc (GDEN) Reports Q3 2023 Earnings: Net Income Skyrockets to $241.2 Million
Golden Entertainment Inc (NASDAQ:GDEN) reported Q3 2023 revenues of $257.7 million, a decrease from $279.0 million in Q3 2022.
The company's net income for Q3 2023 was $241.2 million, a significant increase from $14.0 million in the same period last year.
Adjusted EBITDA for Q3 2023 was $53.2 million, compared to $61.1 million for Q3 2022.
The company completed the sale of Rocky Gap Casino Resort and Montana distributed gaming business, strengthening its balance sheet.
Golden Entertainment Inc (NASDAQ:GDEN) released its Q3 2023 earnings report on November 2, 2023. The company reported a significant increase in net income, despite a decrease in revenues and Adjusted EBITDA compared to the same period last year.
Financial Performance
The company's Q3 2023 revenues were $257.7 million, compared to $279.0 million for Q3 2022. The net income for Q3 2023 was $241.2 million, or $7.83 per fully diluted share, a significant increase from net income of $14.0 million, or $0.45 per fully diluted share, for Q3 2022. The Adjusted EBITDA for Q3 2023 was $53.2 million, compared to $61.1 million for Q3 2022.
Company's Commentary
Blake Sartini, Chairman and Chief Executive Officer of Golden, commented,
For our third quarter, we saw improved performance in our Nevada Casino Resorts segment which was primarily driven by increased occupancy and our recent completion of room and pool renovations at The STRAT. Our Nevada Locals Casinos segment maintained the strong performance we have seen throughout the year, while our taverns experienced typical seasonality with lower summer volumes."
Debt and Liquidity
As of September 30, 2023, the company's total principal amount of debt outstanding was $738.7 million, primarily consisting of $399.0 million in outstanding borrowings under the new term loan and $335.5 million of senior unsecured notes. The company had cash and cash equivalents of $295.9 million. There were no outstanding borrowings under the companys $240 million revolving credit facility.
Future Outlook
Golden Entertainment Inc (NASDAQ:GDEN) remains on track to complete the sale of its Nevada distributed gaming business at the end of the year. The completion of these transactions is expected to significantly strengthen the company's balance sheet, enable return of capital to shareholders, and provide financial flexibility to enhance shareholder value.
Explore the complete 8-K earnings release (here) from Golden Entertainment Inc for further details.
This article first appeared on GuruFocus.
