Golden Entertainment, owner of nine casino in Nevada, including the Strat and one in Maryland, saw its first quarter 2021 revenue come in at $239.7 with all its casino properties and distributed gaming operations exceeding Q1 2019 Adjusted EBITDA levels except The STRAT.
The STRAT occupancy improved significantly during the quarter, with monthly Adjusted EBITDA growing materially from year end 2020 to Q1 2021.
Blake Sartini, Chairman and Chief Executive Officer of Golden Entertainment, said: “Our first quarter operating results reflect significantly improved revenue and net income, and record quarterly Adjusted EBITDA. These results highlight strong demand at our properties combined with substantial margin improvement due to the adjustments we have made to our operations. Our Company generated over $40m of cash in the quarter, with current trends continuing across both our casino and distributed gaming segments. As the year continues, we expect that our free cash flow will allow us to reduce leverage and return capital to shareholders while also providing added financial flexibility to pursue potential strategic growth initiatives.”
The company reported 2021 first quarter revenues of $239.7m compared to $207.2m for the first quarter of 2020. Net income for the first quarter of 2021 was $10.6m, or $0.35 per fully diluted share, compared to a net loss of $32.6m, or $(1.17) per share, for the first quarter of 2020. Adjusted EBITDA was $59.5 million for the first quarter of 2021 compared to Adjusted EBITDA of $30.5m for the first quarter of 2020.
Casino revenues were $129.5 million for the first quarter of 2021 compared to $128m for the first quarter of 2020. Casino Adjusted EBITDA was $51.1m compared to $31.9m for the first quarter of 2020. Total Casino Adjusted EBITDA margin was 39.5 per cent, up approximately 900 basis points from the first quarter of 2019.
The STRAT generated positive Adjusted EBITDA in each month during the first quarter of 2021 as occupancy improved significantly between January and March. Adjusted EBITDA for all other casino properties increased materially compared to the first quarter of 2019.
Distributed Gaming revenues for the first quarter of 2021 were $109.9m compared to $79m in the first quarter of 2020. Distributed Gaming Adjusted EBITDA was $20.9m compared to $7.1m for the first quarter of 2020. The Company’s Nevada and Montana distributed gaming operations both grew revenue and Adjusted EBITDA significantly compared to the first quarter of 2019 with Adjusted EBITDA margin up approximately 400 basis points to 19 per cent.