Golden Entertainment, Inc (LACO) has reported an 138.59 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $5.34 million, or $0.23 a share in the quarter, compared with $2.24 million, or $0.10 a share for the same period last year. Revenue during the quarter grew 17.15 percent to $106.65 million from $91.03 million in the previous year period. Gross margin for the quarter contracted 24 basis points over the previous year period to 28.73 percent. Total expenses were 95.01 percent of quarterly revenues, down from 95.89 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 4.99 percent.
Operating income for the quarter was $5.32 million, compared with $3.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.57 million compared with $10.55 million in the prior year period. At the same time, adjusted EBITDA margin improved 114 basis points in the quarter to 12.72 percent from 11.59 percent in the last year period.
Blake L. Sartini, chairman and chief executive officer of Golden Entertainment, commented, “Golden Entertainment’s record 2017 first quarter financial results were driven by significant year-over-year growth across our distributed gaming and casino businesses. We generated first quarter consolidated net revenue and net income growth of 17.1% and 138.6%, respectively, and reflecting the strong operating leverage in our model, Adjusted EBITDA rose 28.6%. The first quarter 2017 financial performance of our distributed gaming segment benefited from last year’s Montana acquisitions as well as contributions from our new tavern openings. In March, we opened the first of our seven planned taverns for this year and our three casinos in Pahrump and Rocky Gap continued to benefit from our recent investments.
Working capital drops significantly
Golden Entertainment, Inc has witnessed a decline in the working capital over the last year. It stood at $31.09 million as at Mar. 31, 2017, down 40.36 percent or $21.03 million from $52.12 million on Mar. 31, 2016. Current ratio was at 1.90 as on Mar. 31, 2017, down from 2.71 on Mar. 31, 2016. Cash conversion cycle (CCC) was almost stable at 4 days for the quarter, when compared with the last year period. Days sales outstanding went down to 5 days for the quarter compared with 6 days for the same period last year.
Days inventory outstanding was almost stable at 2 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 10 days for the quarter from 12 for the same period last year.
Debt moves up
Golden Entertainment, Inc has witnessed an increase in total debt over the last one year. It stood at $178.78 million as on Mar. 31, 2017, up 12.60 percent or $20 million from $158.78 million on Mar. 31, 2016. Debt to equity ratio was at 0.83 as on Mar. 31, 2017, up from 0.74 as on Mar. 31, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
