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Dec 31, 2020
Golden Entertainment Q4 2020 Earnings Report
Golden Entertainment's Q4 2020 performance was impacted by tightened operating restrictions due to the pandemic, yet demonstrated margin improvements and growth in Nevada and Montana Distributed Gaming.
Key Takeaways
Golden Entertainment reported Q4 2020 revenues of $205.6 million, a net loss of $18.5 million, and Adjusted EBITDA of $38.9 million. The company experienced revenue declines due to pandemic-related restrictions, but margin improvements in Las Vegas locals casinos and growth in distributed gaming partially offset these challenges. The company ended the year with $103.6 million in cash and no revolver borrowings.
Significant margin improvement led to Q4 Adjusted EBITDA growth compared to Q4 2019 at all local and regional Nevada casino properties.
Positive Q4 Adjusted EBITDA was achieved at The STRAT despite increased restrictions and decreased travel volume in November and December.
Nevada and Montana Distributed Gaming Q4 revenue and Adjusted EBITDA exceeded Q4 2019 levels.
The company ended 2020 with approximately $104 million cash on hand and no revolver borrowings.
Forward Guidance
The company anticipates increased business volumes as state restrictions ease and vaccination rollouts progress, expecting Las Vegas to benefit from pent-up demand and the resumption of retail and business travel. They believe the cost structure changes will lead to sustainable margin improvements, higher cash generation, and opportunities to reduce leverage, pursue strategic initiatives, and return capital to shareholders.
Positive Outlook
- Increased business volumes since state restrictions began to ease.
- Las Vegas will benefit from pent up demand.
- Resumption of retail and business travel.
- Sustainable margin improvements due to cost structure changes.
- Higher cash generation.
Challenges Ahead
- Tightened operating restrictions across all businesses due to the pandemic.
- Restrictions began in November and extended through December, impacting overall fourth quarter results.
- The STRAT was particularly impacted by the restrictions in place during the period which significantly impacted occupancy in November and December.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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