Golden enjoys record Q2 revenue

STRAT renovations to continue this year

Las Vegas-based Golden Entertainment Inc. reported record second-quarter revenue and adjusted cash flow Tuesday exceeding analysts’ expectations for the second-straight quarter.

The company that operates The STRAT on Las Vegas Boulevard, two Arizona Charlies’ properties in Southern Nevada, Nevada’s PT’S Pub chain and casinos in Laughlin and Pahrump reported a loss of $14.4 million, 52 cents a share, on revenue of $248.1 million for the quarter that ended June 30.

In the same quarter a year earlier, the company showed net income of $3.6 million, 12 cents a share, on revenue of $216.5 million. A survey of five Wall Street analysts had projected adjusted earnings per share of 5 cents and revenue of $242 million.

“The improvements we have made at The STRAT continue to be well-received by our guests despite the ongoing construction disruption at the property,” Golden CEO Blake Sartini said in a Tuesday earnings call with investors.

“We have started renovations to The STRAT casino floor and remodels of additional hotel rooms, which we expect to complete by the end of the year. We have also integrated the operations of the Edgewater and Colorado Belle casinos in Laughlin, and we expect these properties to deliver improved results in the second half of the year as we begin to realize our targeted synergies. In addition, we have improved our ability to incentivize guests across our casino platform with the completed rollout of our new Truerewards loyalty program at all 10 of our casino properties.”

As of June 30, the company invested $54 million on The STRAT renovations, including approximately $24 million in 2018. Company executives expect about $30 million of additional renovation costs for 2019, which it plans to pay for with cash flow from operations. Golden Entertainment’s total budget for The STRAT renovations remains unchanged at $140 million.

The company’s distributed gaming segment — the slot routes Golden operates across Nevada and Montana — improved with the addition of six new taverns since the second quarter of 2018, and the company now pays less rent at about half its chain store locations.