Gaming and hospitality operator Golden Entertainment has reported its third-quarter results. For the three-month period, the company has posted revenue of $279 million, a slight drop of 1%; and net income of $14 million, down 52% year-on-year. Adjusted EBITDA amounted to $61.1 million, declining by 17% when compared to the same quarter last year.
Blake Sartini, Chairman and CEO of Golden Entertainment, said: “Our quarterly results continue to be significantly above 2019 levels, despite reflecting a larger impact from seasonality compared to the same period last year. We are encouraged by the current business trends to start the fourth quarter and we are well positioned to succeed in any economic environment.”
During the third quarter, the company entered into a definitive agreement to sell Maryland’s Rocky Gap Casino Resort for $260 million. In his Q3 remarks, Sartini said the move will allow the company to focus further on its core operations, maintain the strength of its balance sheet and return capital to shareholders. The transaction is expected to close in Q2 2023.
Pursuant to the terms of the agreement, Century Casinos will acquire the operations of the property for $56.1 million; while VICI Properties will acquire land and buildings for $203.9 million. In its own Q3 report, Century Casinos said it is “excited” to enter the Maryland market and to add the property to its growing US portfolio.
Breaking down results by segment, revenues for Nevada casino resorts were $98.9 million, down from $104.4 million in Q3 2021. As for Nevada locals casinos, revenues were slightly down from $38.1 million to $37.7 million; while Maryland revenue remained flat at $21.6 million.
During the quarter, Golden Entertainment repaid $25 million of term loan borrowings and increased stock buyback authorization to $75 million. As of September 30, the company had cash and cash equivalents of $177.7 million and short-term cash investments of $5 million.
