Record results from Golden miss analysts’ targets

Buying four casinos lifts revenue, cash flow

Las Vegas-based Golden Entertainment Inc. failed to meet analysts’ expectations but posted record revenue and cash flow for the first quarter, company officials reported Wednesday.

As a result of the October acquisition of American Casino & Entertainment’s Stratosphere, Aquarius and two Arizona Charlie’s properties, revenue rose 102.9 percent from a year earlier, to $214.8 million, and adjusted cash flow rose 238.2 percent, to $45.9 million.

The quarter was the first full quarter with the four new properties under Golden ownership.

The results were driven by Southern Nevada holdings, which Golden Chairman and CEO Blake Sartini said are operating in one of the nation’s most lucrative gaming markets. The Southern Nevada successes compensated for a sluggish first quarter at the company’s Rocky Gap Casino Resort in Maryland, which endured harsh winter weather.

“Throughout the first quarter, we made progress against all of our

2018 strategic priorities,” Sartini told investors in a Wednesday conference call. “We continued the expansion of our Las Vegas branded tavern platform with the opening of two of the six planned new locations for 2018, and both new properties are on track to generate the attractive returns we have experienced from other recent tavern openings.”

Still, the results didn’t meet the expectations of analysts. On average, they had projected revenue of $217.2 million and earnings per share of 26 cents, compared with the 13 cents reported.

“By the end of 2018, we expect to have completed the renovation of 317 rooms at the Stratosphere as well as the installation of state-of-the-art exterior digital signage and lighting,” Sartini said. “Further, we intend to add a unique gastro-brewery to the property that leverages our market-leading tavern experience while featuring Golden Entertainment’s signature branded craft beers.”

He said the new brewery would be connected to a new race and sports book.

“Our continued investment will establish Stratosphere as a preferred destination for Las Vegas visitors and locals alike,” Sartini said.

Golden also is working with Konami Gaming Inc. to develop a casino floor management system that will support a new branded loyalty card that customers will be able to use at

Revenue 2018: 2017:

Net income 2018: 2017:

Earnings per share 2018:

2017:

all company properties.

Golden shares climbed a penny, or less than 1 percent, to close at $27.61 a share. After hours, the shares climbed another 59 cents, or 2.1 percent, to $28.20.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702477-3893. Follow @Rickvelotta on Twitter.