Q3 2024 Golden Entertainment Inc Earnings Call Transcript
Key Points
- Golden Entertainment Inc (GDEN) increased its share repurchase authorization by $100 million, providing over $130 million of buyback capacity.
- The company maintains a strong balance sheet with net leverage at approximately two times EBITDA and $240 million available under its revolving credit facility.
- Golden Entertainment Inc (GDEN) has repurchased nearly 2 million shares over the last six months, representing 7% of its outstanding shares.
- The company anticipates stable year-over-year performance in Q4 for its local properties, aided by a moderating Las Vegas promotional environment.
- Golden Entertainment Inc (GDEN) is actively considering strategic alternatives, including potential mergers, to enhance shareholder value.
- Total revenue declined 5% and consolidated EBITDA declined 21% in the third quarter compared to the prior year.
- The Nevada casino resorts segment saw a 6% revenue decline and a 20% EBITDA decline, with significant challenges at The Strat.
- Extreme summer heat and reduced discretionary spending negatively impacted visitation and revenue at casino properties and local taverns.
- The Nevada tavern segment experienced a 2% revenue decline and a 29% EBITDA decline, with margins affected by elevated initial operating expenses.
- The company faces challenges in the M&A landscape due to a disconnect between buyers and sellers, impacting potential acquisition opportunities.
Good afternoon, ladies and gentlemen, thank you for standing by. Welcome to the Golden Entertainment Third quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode, a question-and-answer session will follow the formal remarks. Please note that this call is being recorded today.
Now, I'd like to turn over to James Adams, Vice President of Corporate Finance and Treasurer, Golden Entertainment Inc.
Thank you very much operator, and good afternoon, everyone. On the call today is Blake L. Sartini, Founder, Chairman and Chief Executive Officer; and Charles Protell, President and Chief Financial Officer.
On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements except as required by law. We undertake no obligation to update these statements as a result of new information or otherwise.
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