Golden Entertainment, Inc. Q4 FY2024 earnings call

• 2024 was transformative: streamlined portfolio by selling non-core assets generating over $600M, optimized capital structure, and accelerated capital returns to shareholders with regular dividend and share repurchases.
• Fourth quarter 2024: operations generated revenue of $164M and EBITDA of $39M; full year 2024 revenue $667M, EBITDA $155M.
• Nevada has favorable long-term economic trends in population, employment, and discretionary income; Las Vegas visitation growth continued in 2024, still below 2019 levels but with future development projects.
• Focus on operational efficiency, investing in assets, and returning capital to shareholders, including exploring M&A and real estate monetization.

Nevada Casino Resorts: In Q4, The STRAT had weekend occupancy flat at 95% but mid-week down 6%, bringing overall occupancy to 75%, contributing to declines in this segment. Laughlin: Increased market share in Q4, reduced operating expenses, riverfront bingo room drove local business, and smaller entertainment venue was programmed with more frequent acts. Nevada Locals Casinos: Saw increased revenue and EBITDA from Q3, with EBITDA margin improving to 46%, biggest improvement from Arizona Charlie's Boulder. Nevada Tavern: Negatively impacted by recent additions but had sequential improvement with revenue up 6% from Q3 to Q4.

• 2025 expected organic growth from improved performance at The STRAT, stabilized revenues in new taverns, and benefit from Nevada's economy.
• February down Y/Y due to Super Bowl comps, but March forecast better than 2024, reinforcing improving performance in 2025.

• Labor inflation is a headwind for the company.
• Impact of Super Bowl comps on February results.
• Promotional activity in the Las Vegas locals market affecting lower tier unrated play.
• Non-compete on distributed gaming business restricting reentry into that space.

Q: Has the environment around M&A changed since the last call?

A: Blake Sartini stated they continue to be proactive in pursuing all options to grow shareholder value, same as last quarter and continuing to be proactive in pursuing opportunities.

Q: Color on F1 weekend trend in year two and future benefit?

A: Charles Protell said F1 wasn't as dramatic a fall off, saved on ticket and direct expenses, but suffered from low town occupancy relative to prior year.

Q: OpEx growth in taverns in 2025 and major swing factors?

A: Charles Protell said sequential growth in taverns expected, labor is a headwind with mid-single-digit labor inflation to mitigate; Blake Sartini added focus on cost control efforts with major upside in cost opportunities this year.

Q: Consumer stabilization post-election trends?

A: Charles Protell noted healthier database, lower end of database declines moderated, with January EBITDA up meaningfully; Blake Sartini added The STRAT slots showing sequential year-over-year improvement and direct bookings improving.

Q: M&A size, leverage target, regions interested?

A: Charles Protell said would not look at Greenfield developments or single assets sub $40-50M EBITDA; target long-term leverage 3x or less; Blake Sartini said would pursue transformational activity, not piecemeal.

Q: Tavern acquisitions cadence and expansion outside Las Vegas?

A: Charles Protell said thought about expanding outside Las Vegas, but focus on Nevada for now, not in acquisition mode near term, focused on adding A plus sites in Las Vegas; update on Atomic Golf facility at The STRAT showing improved group business and excess land with options being discussed.

Q: Potential consideration markets outside Nevada?

A: Charles Protell said would look at multiple properties out of state, but not pure Greenfield development, interested in existing cash flowing operations with future growth potential, excluding distributed gaming business due to non-compete.