GDEN - Earnings call transcript Q4 2024 | Golden Entertainment, Inc.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Golden Entertainment Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded today.

Now I'd like to turn the conference over to James Adams, the company's Vice President of Corporate Finance and Treasurer. sir. ahead, go Please

James Adams

much, good very everyone. operator, you afternoon, and Thank

and new the is obligation Actual Chairman a Charles On may the this safe President statements today make Sartini, Except law, we by Protell, Financial Company's as materially federal will call, or company's harbor and the call under Officer; Blake Founder, to these those as from forward-looking information no Officer. On Executive and the provisions statements update Chief the of of results contemplated securities result required we laws. differ in statements. otherwise. undertake Chief these

During performance. non-GAAP discuss the financial our talking about will call, we measures also in

find release, can in reconciliation available measures financial our which You press of on the GAAP is our website.

with quarter the call details will update. business start results a Charles fourth the of reviewing and We

take Blake call the to will that, Charles Following and questions. With that, I turn your Charles. over will

Charles Protell

Thanks, James. concluded Entertainment. quarter transformative Golden for a year The fourth

our stock, in representing as a XX% of we returns our streamlined portfolio common XXXX, which cost on business, to of attractive by closing well over free our term dividend capital divestitures and outstanding. collectively loan. Also structure, by of quarterly proceeds. regular Distributed generated multiples, these lowering as our shareholders our capital shares our million XXXX, our of $XXX last repricing capital accelerated instituting reducing we at of to by repurchasing Nevada During optimize proceeds used float noncore leverage million sale X.X the of the We the our the

EBITDA XXXX our our at respectively. When $XX results year, year $XXX $XXX and the revenue million, to million improvement of weaker QX be prior compared $XXX fourth at EBITDA continuing looking saw our quarter, in call quarterly year-over-year, In million but and to EBITDA our our of Turning noted properties, QX. our full excluding material for QX, to bringing revenue financial all were our QX as performance. In operations we from generated point a financial and would results. million, up QX, in meaningfully our we compared low is sequential Laughlin, the which seasonally to last which on lower of in market operations

As we saw the Vegas January, Bowl related last given to tough hosting comp in in XXXX, offset February we the Las strength broad Super start year.

we January when down XXXX rated was X%, cadence the look revenue EBITDA to to at X%, flat was However, over prior down year. with X% December monthly was gaming up January prior October year, up of and was November prior compared year, our meaningfully

for the but will mentioned, be of Bowl, lift for our better anticipation performance reinforces year-over-year, from February our As shows without trends down XXXX. throughout XXXX, improving properties Super forecast March over our currently which

of specific on at to was Now was but midweek our FX. which impacted year contributed Nevada At Casino for softer occupancy weekend election XX% the second segment. Las lower-tier by particularly to The in our for some prior properties. ADR additional and the and quarter, for our overall and flat year occupancy to QX, mid November, X%, down occupancy weaker Resorts were Vegas bringing for citywide STRAT, to declines properties October a color XX%, our occupancy in

from December QX and opportunity XXXX in occupancy operating share see consumer. In we in from both market were our However, increased returning increased growth strong, we January for and and midweek Laughlin, spend reduced and expenses. core

drive help increased to business. continue room bingo local riverfront Our

to with from on our frequent lower more We weekends large-scale offset reduced acts venue entertainment have smaller programmed visitation entertainment.

sequentially as locals well EBITDA over our casinos, as last we year revenue For increased QX. saw from and Nevada

same improving We in also saw casino the margins with to XX%. our margin trend locals EBITDA

a This positive caters Charlie's the to has XXXX. property, value-oriented most over quarters. last came which for the segment our Arizona stability recent Boulder improvement from the been in sign pressured market performance guests continued few biggest Our local and most growth within locals is in our the smaller and property's

For quarter, ownership's continued recent operations tavern strategy. X be and to were reinvestment tavern additions, most prior by X we our impacted negatively acquisitions Nevada performance revamping where the are fourth of which

slower improve X% stabilize performance to the anticipated, with start we than the and by improvement new to these sequential taverns end On levels QX QX. revenue a a expected year. Although seen continue should have same-store the basis, of taverns month-over-month up in from

Moving on structure. capital to our

debt continue $XXX nearly of returned have average leverage share shareholders we including of credit QX, of facility. Since XXXX. In million X.Xx the $XXX assets balance last of to noncore repurchases sheets million million, gaming million price net selling total shares approximately with in the in one best maintain an of approximately a million EBITDA dividends, totaling availability our We and our to over and years, and repurchased repaid $XXX million through at the $XXX of $XX.XX, industry we over X.X $XX X combination million. revolving of $XXX debt remaining under funded

and our of our authorization, current on continue facility to can we profile. repurchases, low opportunistic credit our on leverage from $XX cash our have capacity buyback revolving free We million flow availability funded pursue and which share will be given

terms some visitation straight billions well owned to is reaching tavern projects continue future This long-term Vegas of of supported in the in portfolio population, and continues the Nevada of to the growth nearly the continued into development million of the and well visitor from Vegas. fourth is for XX branded dollars future. Last marked beyond, which visitation volume, one drive the people. to discretionary casino positioned to favorable Las in benefit states economic employment, trends highlighting Las wholly room is Nevada, below of of growth, which income, XXXX's country. still most fastest-growing by in also Our to be year remains favorable anticipated year pre-pandemic and recovery

our our expected portfolio all of of options remain in benefiting rest to revenues business at maximize on in from will at our Blake from focus to strength and and operational taverns including real and economy. We confident monetization the shareholders. That committed as own STRAT, to for investing assets M&A now growth shareholders, the value well to In I are our remarks. The meantime, for our for are questions. performance returning with concludes available prepared to continue continued prospects We exploring efficiency, holdings. of new traditional improved come XXXX as organic estate the stabilized Nevada's our capital we our

Operator

[Operator Instructions] comes Jonas Barry Truist with Our first question from Securities.

Patrick Keough

Patrick It's for Barry. Keough on

the time environment your First spoke? one last M&A changed the me. for since Has or general we thinking around

Blake Sartini

No, Patrick, this Blake. is

outlined shareholder think, in we on proactive mentioned in continue to really options we prepared remarks. as our Charles, call, pursuing value, I grow As be to last all his

positioned various dislocation And alternatives. share potential alternatives, of for strategic other do we strategic forward to plenty repurchases value between going with both. continue well capacity We we're to and believe have

same was last continuing be as we the proactive So our situation to quarter, in pursuing opportunities. is are it and exactly

Patrick Keough

this As for could you any years color event you you trended my follow-up, you that give further the year around. as in for how ramped on you FX any do conviction benefit X? time you come? way, to previously Could in either promos have stated carries that weekend And on

Charles Protell

it's Charles. Patrick, Yes.

dramatic So I falloff expected in think don't FX. anyone the

it the little just all town occupancy year. the weren't rate suffer say, prior in tickets was related us I given the and to investment around bit saved, event, direct we to would that a for where to at and able in we relative expenses bad our low less we compress the So was, where was did our

Operator

from with comes question next Citizens. Our Bender Jordan

Jordan Bender

A convention an uplift 'XX. strip in operator and uplift noted -- and an the you'll in in expectation that see 'XX group business

to at your where terms positioning the can of So The STRAT back? come recovery the stand you you citywide or just continues means for as that remind in and what us property

Charles Protell

Yes. Charles. Jordan, it's

look property XX% So for XX%. XXXX, at you if we ran we noted at that just occupancy, at we're QX, almost and

that us, others midweek convention we are that that we So is the business. of for all -- of really overflow

when into million of And the that with full town $XXX of about more So center which benefit. that finish their finished third XXXX, have QX off will our they look to should with off year. when convention expansion, disproportionately the you this in particularly the phase is you is urges that,

we're with used that, close The benefiting their the new increased more amenities, see convention So more we center STRAT once that from to gets traffic. full very and and

Jordan Bender

'XX you the buckets major or with into growth able growth should in getting us switching OpEx 'XX? follow-up, to that the in Without elevated. my help fairly on And guidance, swing just segment to that you And we broadly, taverns, in are was for any more noted about then factors expense thinking total just maybe company? be

Charles Protell

the seasonally lower. Yes. I too QX, forward specifically say sequential you'll other as into getting in taverns growth move we through it, than is just which would XXXX see much without

of we entire the as X So on the revamp reasons. basically over we've taverns had for to call, operations that we took highlighted various

to continue employee they've those EBITDA traditionally customers trended have revamped now operations reinvesting and them those completely positive well so are base. But we perspective, traditionally an to expect the as from as how we've -- locations in And grow.

every had we've to employee. think I over turn single

So some be But -- into that that on the with those of we're in disruption. we XXXX. now back to the a ramped portfolio think expect rest we at the cadence of created line end

company, to be of balance For as think labor I the the it a continues headwind.

a year of The anniversary-ing the that what So most union managing increases of the the contract been STRAT, the new of of occurred. first if been will at culinary year doing, that first this look this you at through we've which we've is be where or cost

within to as the those mitigate expect that will still moderate, there go inflation portfolio we we'll be the mid-single-digit we to labor be through So year. working but

Blake Sartini

Yes.

to Let me just that. add

that's I exactly right. think

just XXXX just another plus already way, were Charles minus excuse our cost efforts. focused And revenues -- initiatives, major our ops those of up all our down we're to making quarter-over-quarter, X%. it put for modestly me, And Our significant around into progress efforts. as or control in mentioned, going are

to laser-focused opportunities there and The with manage on STRAT most year, our to -- are being that. being this the our So tangible with in we cost being upside broader regards able of particularly us our portfolio at

start to off regard. great So in that we're a

Operator

Wells comes next with Fargo. question Our Zachary Silverberg from

Zachary Silverberg

consumer upon touched on just a guys improving are seeing and remarks, Can make you election. you those the confidence You or maybe but the bit you're how you the you of the ground to stabilizing seeing on what trends that post it statement? prepared kind mentioned gives double-click in

Charles Protell

Yes.

seen locals so particularly the market. the we've within health think I more in database,

the we January. in look trend lower tier to But That give again terms to less in So end double-digit has lower database database top and that to October database some the seen, the database, by to of spend. was visitation moderated, the the driven at the was within the the QX our declining those be the overall tried continuously both strong, really little mostly of that be as to in that and we almost continues November, saw cadence in we've of rates. to the in of seem the how again, of quarter, year-over-year low fourth growing database, quarter, stable within end database of declines a we end

within the absent confident Super and health we Bowl XXXX. So growth into very comp, the look as database in we're the

Blake Sartini

customers, market at additional we The micro property improvement. improving, from. for challenges to a when to be great making That's STRAT Even An it's situation are I success example the gaming and us took XX% efforts is midweek we're had to that, to The example, for mitigate bookings challenges, having particularly to direct with gaming able I play point nonexistent. approaching, out But and having STRAT, currently upside around that, continue at continue The that at we're given slots, the to and to that we've was we And the show with our slots. year-over-year are in carded STRAT improve. our cost for seeing think, important benefits huge the property to the over which STRAT target think sequential was

weeds, in think, progress that are that all that, for is is the side given we seeing of the we very particular, in are shoots, challenges, we a So of gaming green which forward. property, but property, bit even and going in I believe maybe occupancy the making positive

Zachary Silverberg

your benefit not have in no give tips to some on the momentum. or overtime this just color tax on and And just Vegas Can seem Las a for you assets how real but any your assets, general? maybe would follow-up,

Charles Protell

obviously the workforce. would huge Vegas It for be Las given

that is I as in it million match $X directly to think us, perspective from a about tax relates that's those about tips. around -- our

allocation direct our meaningful. the just would that end but So as we as for their those up to certainly And meaningful, it dollars back as for workforce, not see be discretionary gaming spending in pool maybe entertainment.

Operator

from question Beynon the of Chad line Our next with comes Macquarie.

Chad Beynon

that at locals last market. in the given this play you calls, to In more to comments more the some point? of know Vegas some of of that's of are go the in in promotional addressed guys interested Has couple maybe willing of seemed market? I let promos And have abate Las that your activity, some unrated the improving, the play, around the rated particularly lower-tier you kind Charles,

Charles Protell

Yes.

I think, stability. we've seen Chad,

a the do stable it how think in summer I think we're reinvestment the should a that promotional be competing And the reevaluation of end little we months. locals off, lower and I at now level of That seen it is was the constant. here where at bit as people in obviously the there a over segment. markets look we've database. view

that us, maybe a of you're we end as the players database the low much the as investing haven't how it's of existing for back. seen players of think balance I reactivation well in at

overinvesting what the one so not of both of So our those, a in we reactivation and lot of have of on players we're focused evaluation in that any segment. are campaigns that,

Blake Sartini

in I remains is in category Chad, activity, the Yes, rational. now of category or promotional think, the

think seeing it's it's if that the I food what rational, there is seeing It's in anything reasonable. we're beverage we're oriented. market, and

major think -- is aren't ourselves, could We be at a the local least seeing, including that lead anything operators, to we inflationary. from

Chad Beynon

size on leverage the maybe should time? on financial you'd a earlier that in? addressed how questions a particular M&A target? about proceed you then the then the down that of regions you be -- think importantly, the the is If there route, obviously in over maybe the we do and would down more country maybe kind come And or that call, of leverage And a back portfolio strategic target implications interested the of goal a

Charles Protell

of greenfield I acquisitions sub would $XX what to I'd we'd EBITDA. are million don't not at M&A. asset And to outline easier are any all developments. say types doing. avenues any open of think Chad, that not Yes. be I it's we of be think that, we outside single would million looking looking We to of be $XX at

to have in we And a leverage we less, what how when so forma I I we where our be. But those that think don't Xx is said which target are term walk about or at is long through obviously would we look now. pro you think entity,

be in we're or want acquirer path another we'd that going I we that. comfortable wouldn't company. number combination than to you with quick deleveraging think either another give higher around if a I to now. right But a of we're a want actual But company have an

Blake Sartini

we management we mentioned that on these capital Yes. doesn't and operations Charles that calls something, Chad, do disperse small into I've sense. deferred to something our needle. other point -- in put, don't conversations to that the to regionally we in past, move make if do if go want We the and as or are when want a

share opportunities, with sit Given structure, our patient is where can we to we our we're What to current growth our these continue with organic with pretty be patient. ranges. in price capital lag not continuing

proactive. going be, would I a it's said, us But It's for approach. kind we to piecemeal as going motivation a to activity of type pursue. of think, an transformational be that not I that's So be to, to

Operator

The with Max from next question CBRE comes Marsh Securities.

Maxwell James Marsh

geographically know taverns that those whether you outside now. We're still but idea of thought Vegas the are like Vegas? Las at guys expanding new have of ramping, Las acquisitions business what I do not and might about Valley you any in have look XX or cadence of some of

Charles Protell

outside -- Yes. we a We of Reno definitely that expanding are up obviously Las thought few have now. about right it have Vegas. in We

within context opportunities on to much that we're aspect long be developments think that in are that the think grow of versus acquisitions taverns as as now. it. And component focus will of continue greenfield which Nevada, greenfield, that, of given there more gaming I that focused the right those the to there's we

on think sites Vegas. We this in in sites to and near for have for the focused see X year, We're mode others. portfolio look adding existing signed don't up we'll more Las for much I A+ us going our future. the But be to acquisition you'll

Maxwell James Marsh

ramping drive might a that excess you whether some here, just as Atomic quickly And update there. facility have believe The helping have STRAT, you land be additional any Golf if I at And of of also guys demand. follow-up midweek the the

on If for your plans thoughts you could that? just update or us

Blake Sartini

Yes.

group So, what are greatly at attract their We I continuing business. in see between was to of that. -- Atomic. we terms Atomic product I crossover yesterday, business. some improving that seeing in to some additional think forward package are the continues from do are I and a move property our room from bookings They understand is and

from a refine I facility. traffic that will We which is as facility, cross we improve, drive $XX believe continue mentioned ability that to million to our they world-class before

very that to acres So more an they X bullish Vegas to into there's there's particular are that. I activity property, directly as adjacent on -- our approximately acre the continue But to we X.X excess Las street think property on business be Boulevard. grow. The moving continue importantly, across to

continue and that with uses lot With that STRAT in-depth a blank forward. optionality acreage. canvas, there for The We we particular want discussing of make conversations for a are as is different the but of lot that decision, be additional on piece. right have a opportunity very we We to active see a that going to great

Operator

with from David comes Katz Jefferies. question next Our

David Katz

want I would inbounds kinds going like markets it your of of markets should we within what Nevada? Or sounds of outside, Anything of be state And would may out thinking still if about outside that's bounds? clear be where talk the be, that potential or something the guess, to sort that help. Look, or I it? -- geography consideration we're of be expanding. And is nonstarters

Charles Protell

David. Thanks, Yes.

context I for really we of a to would more And out in as transformative Blake properties. state, it deal for only look within type of looking single the we're think assets alluding of multiple state. the us, if think I was be would

pure So Iowa million development one-off don't of existing look doing look it $XX we'd we a we'd that, again, But projects. there's at not in want $XX opportunities. beyond we of with into a but would in really I greenfield EBITDA. that. And that's growth flowing won't cash things those operations, certainly, development to to are of portfolio, I buy more interested part aspect larger think go that much riverboat certainly go and future be at But if an million

David Katz

gaming to markets of markets? or as as we be racing casino be traditional commercial the machine thinking adjacencies historical should And classified kinds may that as facility other markets broadly

Charles Protell

We except Gaming business. Distributed the would, for

So divestiture noncompete to have we as part into of our business, a business. that of that do reenter

not that. we So to look extent at adjacencies, flow look we would cash But the and at so our businesses. on corporate landscape. use where be Obviously, have opportunities we any looking an we help there's would could digital with we don't that. presence, infrastructure We'd the that on online growing to and be brick-and-mortar not improve expertise grow purely those focused would

Operator

Ladies concludes further and are that today's gentlemen, questions, as no there teleconference.

may Thank disconnect lines your for You your at participation. you time. this

Golden Entertainment (GDEN) 27 Feb 252024 Q4 Earnings call transcript