Golden Entertainment announces Q4 and full year 2015 results

Key highlights and recent developments:

• On July 31, 2015, Sartini Gaming merged with a subsidiary of Lakes Entertainment and the company was subsequently renamed Golden Entertainment. Fourth quarter of 2015 marked the first full quarter of inclusion in the company’s results of the distributed gaming and casino businesses of Sartini Gaming.
• Net revenues for the three months ended December 31, 2015 were $86.4 million, compared to $12.8 million in the prior year quarter, with the increase due primarily to the merger.
• Adjusted EBITDA for the three months ended December 31, 2015 was $9.4 million, compared to $0.2 million in the prior year quarter, with the increase due primarily to the merger.
• For the quarter ended December 31, 2015, net income was $23.4 million, or $1.06 per diluted share, compared to a net loss of $(0.1) million, or less than $(0.01) per diluted share, in the prior year quarter.
• In December 2015, the company completed the sale of a subordinated promissory note from the Jamul Indian Village for $24.0 million in cash, and the company’s fourth quarter net income included a $23.6 million gain on recovery of impaired notes receivable resulting from the sale.
• In January 2016, the company completed the acquisition of approximately 1,000 gaming devices from a distributed gaming operator in the state of Montana, as well as certain non-gaming assets and the right to operate within certain locations, for total consideration of approximately $20.1 million.
• Announced planned openings of six new taverns in 2016 in the Las Vegas Valley, including a new Sierra Gold, the Company’s flagship tavern brand, and the successful opening of a new brewery concept, PT’s Brewing Company, which opened on February 10, 2016.

“We ended 2015 with strong quarterly results that reveal the initial benefits of the merger. In addition, we are now operational in Montana as a result of closing our distributed gaming acquisition during the month of January,” said Blake L. Sartini, Chief Executive Officer of Golden Entertainment. “Going forward into 2016, we continue to focus on our unique growth opportunities, while enhancing productivity within each of our business segments.”