Golden Entertainment Inc. executives believe the Strat Resort is in a good location.
With the new Circa and downtown arts districts that can direct traffic south and the upcoming Resorts World Las Vegas and new convention center amenities at the Las Vegas Convention Center that can direct traffic north, the Strat Positioned to catch two waves of companies that appear to have made great strides in the first quarter.
Golden reported a 15.7 percent increase in revenue for the quarter ended March 31, to hit the highest adjusted cash flow numbers in the company’s history.
“Our operating results for the first quarter reflect significantly improved sales, net income and quarterly adjusted cash flow,” said Blake Sartini, chairman and CEO of Golden. “These results highlight the strong demand for our properties coupled with a significant improvement in margins due to the adjustments we have made to our operations.”
Sartini said the company generated more than $ 40 million in its casino and distributed gaming segments during the quarter – the slot route it operates with its PT’s pub taverns and a Montana route.
“As the year progresses, we expect our free cash flow to allow us to reduce leverage and return capital to shareholders while providing additional financial flexibility to pursue potential strategic growth initiatives,” said Sartini.
Golden reported net income of $ 10.6 million, 35 cents per share, on revenue of $ 239.7 million for the quarter. A year ago, the company reported a net loss of $ 32.6 million ($ 1.17) on revenue of $ 207.2 million.
On a conference call with investors, Charles Protell, President and Chief Financial Officer of Golden, said the company is now focused on easing the burden on the company’s balance sheet and finding the best way to return capital to shareholders. Protell said the company is well positioned to capitalize on the return of conventions and trade shows. While the Strat doesn’t have the facilities to host large shows, it can host events related to its amenities.
A number of concerts and special events scheduled for the coming months should be beneficial to Goldens Showcase Resort. In April, Sartini said the Strat sold out its eligible hotel rooms every weekend.
Golden is also well positioned to generate income from its Laughlin activities.
Brad Goldberg, Golden’s senior vice president of marketing, said a series of concerts at the Laughlin Event Center should fill spaces in Golden’s Aquarius and Edgewater properties. Live music is planned for the summer calendar with America, Darci Lynne, the Little River Band, Lynyrd Skynyrd, Miranda Lambert and Toby Keith throughout the summer.
Golden Entertainment stock, traded on the Nasdaq exchange, closed Thursday at 50 cents per share, 1.4 percent, to $ 35.75 per share, with trading roughly twice the daily average volume.