Golden Entertainment released Thursday its financial results for the fourth quarter of 2021, showing record numbers despite the various business challenges brought on by the COVID-19 pandemic.
The Strat owner, which also has two Arizona Charlie’s properties in Las Vegas and casinos in Laughlin and Pahrump, reported a net income of $19.1 million on revenue of $282 million for the quarter, a 37% growth compared with losses of $18.5 million on $205.6 million in revenues for the same period in 2020.
Thanks to these results, Golden saw its first year of generating more than $1 billion in annual revenue in a 58% rise in a year-over-year comparison. Adjusted EBITDA of $291.7 million for the 2021 full year represented a 165% increase in contrast with 2020.
When it comes to The Strat, its revenue rose 90% and EBITDA increased more than 5 times from Q4 of 2020. Its room occupancy improved to 77% in Q4, a signifcant increase from the 43% occupancy the resort saw in the same period in 2020. However, that figure is still down from the 90% occupancy rate it had in 2019.
Golden President and Chief Financial Officer Charles Protell spoke about the occupancy rate as compared to 2019 during a call with investors Thursday and said: “This translates into over 180,000 missing room nights, which is 30% more room nights than what we sold in all of 2021. Even missing these room nights, we still achieved record revenue and EBITDA at the Strat”.
Protell also pointed out that many of the Strat venues continued to set record numbers despite the lower visitation, particularly at its restaurants and Casino Marketing programs, which are “having a huge success attracting new players, which helped drive a 62% increase in gaming revenue at the property”.
“We continue to make modest incremental investments in the property such as refurnishing the theater lobby to support a revamped entertainment and new residencies refreshing pool areas and renovating some of the older sweep room products to attract higher worth players”, he stated, as he expects the return of citywide conventions and entertainment and sporting events will translate into a further recovery of room nights at the property, driving EBITDA The Strat higher.
During the same call, Golden Chairman and CEO Blake Sartini stated the company is not planning to jump into any major developments anytime soon, and is focused on its current holdings.
“Despite our record performance, it could have been even better as our operations were impacted by COVID restrictions, supply and labor shortages and reduced visitation that our team successfully navigated during 2021”, Protell analyzed.
Revenue for Nevada Casino Resorts in the quarter rose 62% year-over-year to $105 million and EBITDA improved 145% to $37 million. EBITDA margin also improved nearly 1,200 basis points from Q4 of 2020.
Nevada locals casinos -comprising Arizona Charlie’s Boulder, Arizona Charlie’s Decatur, Gold Town Casino, Lakeside Casino & RV Park and Pahrump Nugget Hotel Casino – saw revenues of $39.7% million during Q4, and Adjusted EBITDA of $18.8 million. Full year 2021 revenues were $159.9 million and Adjusted EBITDA was $80 million.
Maryland’s Rocky Gap Casino Resort saw $19.2 million in revenue in Q4, and Adjusted EBITDA was $5.9 million. Full year revenues were $78.2 million, and full year Adjusted EBITDA was $26.7 million.
