Golden Entertainment, a prominent player in the gaming and entertainment industry, has revealed its financial performance for the fourth quarter and full year ended December 31, 2022. Despite facing challenges, the company’s financials reflect resilience, with notable achievements and strategic plans for future growth.
Steadfast Q4 Performance:
Golden Entertainment reported a revenue of $279.7 million for the fourth quarter of 2022, marking a minor 1% decline compared to the $282 million achieved in the same period in 2021. Despite the modest drop, the company showcased its ability to maintain stable revenue levels in a dynamic business landscape.
Navigating Earnings and Adjusted EBITDA:
Net income for Q4 2022 stood at $11.1 million, translating to $0.35 per fully diluted share. This was compared to a net income of $19.1 million or $0.59 per fully diluted share for Q4 2021. The fourth quarter of 2022 also saw an Adjusted EBITDA of $63.7 million, slightly lower than the $67.8 million achieved in the same period in 2021. These figures depict Golden Entertainment’s focus on managing its earnings and optimizing its operational performance.
Full-Year Consolidation:
Zooming out to the full year 2022, the company reported revenues of $1.1 billion, mirroring the results of the full year 2021. The net income for the entirety of 2022 amounted to $82.3 million, translating to $2.61 per fully diluted share. This is compared to a net income of $161.8 million or $5.04 per fully diluted share for the full year 2021. The Adjusted EBITDA for the full year 2022 reached $267.1 million, showing a slight decrease from the $291.7 million recorded in the full year 2021.
Strategic Outlook and CEO’s Vision:
Blake Sartini, the Chairman and Chief Executive Officer of Golden Entertainment, highlighted the company’s robust financial performance despite challenges. He emphasized that the fourth quarter results demonstrated significant financial strength, exceeding 2019 levels. Sartini also acknowledged that elevated labor and other costs affected the year-on-year comparison.
Sartini expressed optimism regarding the company’s business trends at the beginning of the year, particularly in the vibrant Las Vegas market. He also announced the anticipated closure of the sale of Rocky Gap Casino Resort in the second quarter of 2023, a move expected to provide substantial liquidity. This, coupled with the company’s free cash flow, positions Golden Entertainment to maintain low leverage, invest in owned properties, and accelerate capital returns to shareholders.
Golden Entertainment’s financial results for the fourth quarter and full year 2022 exemplify its steadfastness and ability to navigate a dynamic industry landscape. With a resilient approach and a strategic focus on future growth, the company stands poised to capitalize on the strength of Las Vegas and execute its plans for sustained success in the coming years.