Gaming and tavern operator Golden Entertainment rode a buoyant Las Vegas economy to million in net revenues in the first quarter, a 17 percent increase over the same period last year.
Improved performances from the company’s Montana and Maryland locations also contributed to the results, which saw total adjusted EBITDA grow 29 percent from $10.5 million to $13.6 million, while net income more than doubled to $5.3 million, good for 23 cents in earnings per share (Nasdaq: GDEN), up from 10 cents a year ago.
Distributed gaming revenue in Nevada was up 4 percent to $67 million, while the first full quarter of Montana revenue checked in at $15 million. Total casino revenues from Nevada and Maryland were up 9 percent to $24 million.
Las Vegas-based Golden’s biggest driver in its home state remains its tavern business. It opened its 54th store in the first quarter and plans to unveil six more by the end of the year.
“Our continued investment in branded taverns is an attractive way to drive high return growth and further participate in the health of the Nevada economy,” said Chairman and CEO Blake L. Sartini. “These taverns are one of the most attractive ways we can invest our capital given the positive macroeconomic trends seen in Nevada.”
Charles Protell, chief strategy and financial officer added that Golden was closely eyeing Pennsylvania, which is currently debating a gambling expansion package that could potentially include video gaming terminals.
“We’re heavily involved and focused on (Pennsylvania),” he said. “We‘re hopeful that something happens this calendar year for enactment on January 1.”
