Golden Entertainment Announces Third Quarter 2016 Results

Golden Entertainment, Inc. (NASDAQ:GDEN) ("Golden Entertainment" or the "Company") today announced financial results for the quarter ended September 30, 2016. On July 31, 2015, Sartini Gaming, Inc. ("Sartini Gaming") merged with a subsidiary of Lakes Entertainment (the "Merger") and the Company was renamed Golden Entertainment. The Company's financial results prior to July 31, 2015 do not include the operations of Sartini Gaming.

Key Highlights and Recent Developments
  • Net revenues for the quarter were $104.2 million, compared to $62.5 million in the prior year quarter, with the increase due primarily to the Merger and results from the Company's newly acquired distributed gaming operations in the state of Montana. Net revenues for the current quarter increased 20.9% compared to the Combined Net Revenues of the Company and Sartini Gaming of $86.2 million in the prior year quarter.
  • Net income for the quarter was $1.3 million, or $0.06 per diluted share, compared to $3.0 million, or $0.16 per diluted share, in the prior year quarter. The current quarter included higher than usual share-based compensation expense related to equitable adjustments made to the exercise prices of outstanding options in connection with the special dividend paid in July 2016. The prior year quarter included an income tax benefit of $12.9 million.
  • Adjusted EBITDA for the quarter was $12.6 million, compared to $7.1 million in the prior year quarter, with the increase due primarily to the Merger, the acquisitions of Montana distributed gaming businesses and the opening of new taverns in the Las Vegas Valley. Adjusted EBITDA for the current quarter increased 26.5% compared to the Combined Adjusted EBITDA of the Company and Sartini Gaming of $9.9 million in the prior year quarter.
  • Net revenues for the quarter from the Distributed Gaming segment were $78.3 million, compared to $61.2 million of Combined Net Revenues for this segment in the prior year quarter, an increase of 27.9%.
  • The three months ended September 30, 2016 marked the first full quarter of operations following the acquisitions of distributed gaming assets in Montana in January and April 2016. The Company's Montana operations contributed $15.1 million of net revenues to the Distributed Gaming segment during the quarter.

"The third quarter represents another period of strong economic results for Golden Entertainment," said Blake L. Sartini, Chief Executive Officer of Golden Entertainment. "We continue to see significant same store strength in each jurisdiction in which we operate, and believe there are additional organic as well as external growth opportunities as we look forward."

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