Las Vegas-based Golden Entertainment Inc., parent company of the PT’s Pub and Sierra Gold tavern chains, had record revenue in the first quarter and more than doubled net income over last year year, the company reported Tuesday.
The company reported net revenue of $106.5 million for the quarter that ended March 31 and the $5.3 million net income was 138.6 percent ahead of profits for the first quarter of 2016. Golden also saw adjusted cash flow climb 28.6 percent for the quarter.
The results beat Wall Street estimates for revenue and income.
Company executives attributed the increases to the acquisitions in their Montana slot route last year and the opening of the first of seven new Southern Nevada taverns in March.
Chairman and CEO Blake Sartini said the future bodes well with the opening of the additional six pubs as well as a legislative change in Maryland that will benefit the company.
“Looking ahead to the balance of 2017, Golden Entertainment remains fully focused on scaling our business and positioning the company for continued growth,” Sartini said in a statement accompanying the company’s earnings announcement.
“We remain on schedule to open a total of seven new Las Vegas taverns in 2017 and believe these taverns are one of the most attractive ways we can invest our capital given the positive macroeconomic trends seen in Nevada,” he said.
Sartini said positive movement in Nevada’s economy has driven his optimism, citing the fast-growing job market, the region’s healthy tourism and convention industry and the anticipation of expansion in local tourism infrastructure.
In Maryland, where Golden operates the Rocky Gap Casino Resort in Flintstone, the company should benefit from new legislation that will provide the company with a 10 percent reduction in slot taxes.
Gov. Larry Hogan last month signed legislation that enables the tax break to companies that purchase state-owned slot machines.
Golden plans to acquire the Rocky Gap machines by July 1, which Sartini said would increase cash flow by $3 million on an annualized basis.
Golden Entertainment stock closed up 11 cents, 0.7 percent, to $15.18 in average trading Tuesday.
Contact Richard N. Velotta at email@example.com or 702-477-3893. Follow @RickVelotta on Twitter.
Golden by the numbers
First quarter earnings:
1Q 2017 1Q 2016
Net revenue $106.6 million $91 million
Net income $5.3 million $2.2 million
Earnings per share 23 cents 10 cents