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US – Despite Nevada’s local market slowing state remains ‘a strong place to be right now’

By - 5 August 2022

Despite pent-up demand in the Nevada locals market looking like it has eased off, Golden Entertainment said the state remained ‘a strong place to be right now’ as it delivered second quarter revenue of $289.4m, net income of $21.2m and Adjusted EBITDA of $75m.

Revenues for the company’s Nevada Locals Casinos were $39.8m for the second quarter of 2022 compared to $43.5m for the second quarter of 2021. Adjusted EBITDA was $19.8m compared to $23.6m for the second quarter of 2021. Adjusted EBITDA margin was 50 per cent for the second quarter of 2022 compared to 54 per cent for the second quarter of 2021. 

Blake Sartini, Chairman and Chief Executive Officer of Golden Entertainment, commented: “In terms of commodity prices, inflation, and general headwinds for the consumer, I think Nevada, and Las Vegas in particular, are a pretty strong place to be right now. People will continue to travel and Las Vegas continues to provide one-of-a-kind sports and entertainment opportunities, as well as significant population growth. We like where our portfolio sits and don’t see any major disruptions to their customer patterns.”

“Our operating discipline supported strong second quarter results and offset challenges in the current economic environment. We have maintained our Adjusted EBITDA margin over the last four quarters as we continue to exceed 2019 performance levels. In addition, our strong cash flow generation has allowed us to allocate capital to debt reduction while also returning capital to shareholders through share repurchases. Since the beginning of 2021 we have reduced indebtedness by nearly $200m and since December 2021 we have repurchased almost $50m of our common stock. For the rest of the year, we expect to remain focused on maintaining the strength of our balance sheet and opportunistically returning capital to shareholders.”

Revenues for Nevada Casino Resorts were $107.5m for the second quarter of 2022 compared to $106m for the second quarter of 2021. Adjusted EBITDA was $38.9m compared to $46.6m for the second quarter of 2021. Adjusted EBITDA margin was 36 per cent for the second quarter of 2022 compared to 44 per cent for the second quarter of 2021. 

Revenues for Maryland Casino Resort were $20.5m for the second quarter of 2022 compared to $21.2m for the second quarter of 2021. Adjusted EBITDA was $7.2m compared to $8.3m for the second quarter of 2021. Adjusted EBITDA margin was 35 per cent for the second quarter of 2022 compared to 39 per cent for the second quarter of 2021. 

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