NASDAQ$GDEN

Golden Entertainment Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Golden Entertainment's Q4 2020 performance was impacted by tightened operating restrictions due to the pandemic, yet demonstrated margin improvements and growth in Nevada and Montana Distributed Gaming.

Golden Entertainment reported Q4 2020 revenues of $205.6 million, a net loss of $18.5 million, and Adjusted EBITDA of $38.9 million. The company experienced revenue declines due to pandemic-related restrictions, but margin improvements in Las Vegas locals casinos and growth in distributed gaming partially offset these challenges. The company ended the year with $103.6 million in cash and no revolver borrowings.

  • Significant margin improvement led to Q4 Adjusted EBITDA growth compared to Q4 2019 at all local and regional Nevada casino properties.
  • Positive Q4 Adjusted EBITDA was achieved at The STRAT despite increased restrictions and decreased travel volume in November and December.
  • Nevada and Montana Distributed Gaming Q4 revenue and Adjusted EBITDA exceeded Q4 2019 levels.
  • The company ended 2020 with approximately $104 million cash on hand and no revolver borrowings.

Headline financials

Total Revenue

$206M

Previous: $242M-15.1%
EPS (adj)

-$0.66

Previous: -$0.28-135.7%
Adjusted EBITDA

$38.9M

Previous: $43.1M-9.7%
Capital Expenditures

$5.09M

Previous: $26.1M-80.5%
Free Cash Flow

$7.03M

Previous: -$10.2M+168.9%
Net Income

-$18.5M

Previous: -$7.67M-141.1%
Operating Income

-$1.11M

Previous: $10.5M-110.6%
Gross Profit

$84.9M

Previous: $102M-16.5%
Cash & Equivalents

$104M

Previous: $112M-7.5%
Total Assets

$1.57B

Previous: $1.74B-9.8%
Stock-Based Comp

$2.11M

Previous: $1.21M+74.9%

Revenue & EPS history

Golden Entertainment · Revenue · Quarterly

$206M

Q4 2020-15.1%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Golden Entertainment · $62.7M total across 3 segments · Q1 2021

  • Food and Beverage
    $33.8M
  • Rooms
    $18.4M
  • Other
    $10.5M

Forward guidance

The company anticipates increased business volumes as state restrictions ease and vaccination rollouts progress, expecting Las Vegas to benefit from pent-up demand and the resumption of retail and business travel. They believe the cost structure changes will lead to sustainable margin improvements, higher cash generation, and opportunities to reduce leverage, pursue strategic initiatives, and return capital to shareholders.

Tailwinds

  • Increased business volumes since state restrictions began to ease.
  • Las Vegas will benefit from pent up demand.
  • Resumption of retail and business travel.
  • Sustainable margin improvements due to cost structure changes.
  • Higher cash generation.

Headwinds

  • Tightened operating restrictions across all businesses due to the pandemic.
  • Restrictions began in November and extended through December, impacting overall fourth quarter results.
  • The STRAT was particularly impacted by the restrictions in place during the period which significantly impacted occupancy in November and December.
  • Maryland property was also impacted by restrictions and adverse weather during the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.9%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+5.1%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+20.6%

Q3 2012

Best reaction

-23.9%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.5%-0.1%-10.0%
Q3 2025+2.5%+4.2%-1.9%
Q2 2025-5.8%-3.8%-7.3%
Q1 2025+5.3%+14.8%+4.4%
Q4 2024+0.8%-2.5%-14.0%
Q3 2024+4.6%+9.9%+8.7%
Q2 2024+3.6%+7.3%+15.8%
Q1 2024+5.3%+2.3%-3.2%
Q4 2023-6.4%-11.6%+0.6%
Q3 2023+20.5%+22.0%+19.8%
Q2 2023-1.3%-2.0%-16.2%
Q1 2023-5.9%-4.4%+15.3%
Q4 2022-0.7%+5.3%+5.8%
Q3 2022-3.2%-0.7%+1.3%
Q2 2022-10.1%-9.2%-19.1%
Q1 2022-3.8%-8.6%+1.6%
Q4 2021-11.4%-12.1%+0.5%
Q3 2021-3.1%-0.6%-13.9%
Q2 2021+15.8%+10.9%+6.2%
Q1 2021+15.6%+18.6%+26.4%
Q4 2020+13.7%+17.8%+13.0%
Q3 2020+3.3%+1.5%+15.7%
Q2 2020+11.6%+16.6%+37.7%
Q1 2020+19.8%+8.9%+89.1%
Q4 2019-9.7%-41.4%-28.1%
Q3 2019+4.8%+8.7%+18.5%
Q2 2019-2.1%+4.3%+2.8%
Q1 2019+2.2%-2.5%-5.2%
Q4 2018-23.9%-12.8%-4.4%
Q3 2018-16.5%-17.2%+1.3%
Q2 2018-10.1%-9.2%-15.3%
Q1 2018+5.1%+4.5%+9.4%
Q4 2017-1.0%-11.1%-19.5%
Q3 2017+10.9%+10.8%+19.1%
Q2 2017+1.6%+2.0%+11.7%
Q1 2017+7.8%+18.9%+13.7%
Q4 2016+12.3%+18.6%+13.7%
Q3 2016-7.6%-9.7%+8.0%
Q2 2016+2.0%+0.4%-2.5%
Q1 2016+0.0%
Q4 2015+0.7%
Q3 2015-1.0%
Q2 2015+0.5%
Q1 2015+0.5%
Q4 2014+0.3%
Q3 2014+1.9%
Q2 2014+0.2%
Q1 2014+1.2%
Q4 2013-3.2%
Q3 2013+1.7%
Q2 2013-4.4%
Q1 2013-4.1%
Q4 2012-2.0%
Q3 2012+20.6%
Q2 2012-2.6%
Q1 2012-1.6%
Q3 2011+2.9%
Q2 2011+2.8%
Q4 2011+2.8%
Q1 2011+5.7%
Q1 2010-6.9%
Q4 2009-8.7%

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