Golden Entertainment, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Golden Entertainment, Inc. has filed its 2023 10-K report detailing financial performance and business operations for the year ending December 31, 2023.</b>

AI Summary

GOLDEN ENTERTAINMENT, INC. (GDEN) filed a Annual Report (10-K) with the SEC on February 29, 2024. Golden Entertainment, Inc. filed its 2023 Form 10-K on February 29, 2024, reporting on the fiscal year ending December 31, 2023. The company's primary business is classified under Services-Miscellaneous Amusement & Recreation. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement components like Common Stock, Additional Paid In Capital, and Retained Earnings are detailed for the period. The company previously operated under the names Lakes Entertainment Inc. and Lakes Gaming Inc.

Why It Matters

For investors and stakeholders tracking GOLDEN ENTERTAINMENT, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Golden Entertainment's financial health, operational segments, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, asset base, and potential challenges, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — GOLDEN ENTERTAINMENT, INC. shows moderate risk based on this filing. The company's operations are subject to various risks inherent in the casino and entertainment industry, including regulatory changes and market competition, as detailed in the 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Golden Entertainment's performance and potential future challenges.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-29 — Filing Date (Date of submission)
• 7028914284 — Business Phone (Contact number)
• 2023-07-25 — Rocky Gap Property Disposal Date (Specific event date)

Key Players & Entities

• GOLDEN ENTERTAINMENT, INC. (company) — Filer name
• LAKES ENTERTAINMENT INC (company) — Former company name
• LAKES GAMING INC (company) — Former company name
• 7990 (other) — Standard Industrial Classification code
• MN (other) — State of incorporation
• NV (other) — State of business address
• Century Casinos Inc. (company) — Mentioned in relation to Rocky Gap Property disposal

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company's operations are subject to extensive federal, state, and local regulations in the gaming industry.
• Competition [medium — market]: The company faces significant competition from other casino operators and entertainment venues.
• Operational Risks [medium — operational]: Disruptions in operations, including IT systems or supply chain issues, could adversely affect financial results.
• Debt Obligations [medium — financial]: The company has significant debt obligations that require substantial cash flow for servicing.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value GDEN The Nasdaq Stock Market
• $260.0 million — c., for aggregate cash consideration of $260.0 million. Specifically, Century acquired the ope
• $56.1 million — the operations of Rocky Gap from us for $56.1 million in cash (subject to adjustment based on
• $203.9 million — ssets relating to Rocky Gap from us for $203.9 million in cash. Prior to its sale, the operati
• $322.5 million — aming"), for aggregate consideration of $322.5 million. On September 13, 2023, we completed th
• $109.0 million — ns in Montana for cash consideration of $109.0 million plus working capital and other adjustme
• $213.5 million — ons in Nevada for cash consideration of $213.5 million plus working capital and other adjustme
• $10 m — ns in Nevada, for cash consideration of $10 million, as part of an expansion of our b

Filing Documents

• gden-20231231.htm (10-K) — 2278KB
• ex-19insidertradingpolicy.htm (EX-19) — 68KB
• a12312310kex-211.htm (EX-21.1) — 119KB
• a12312310kex-231.htm (EX-23.1) — 7KB
• a12312310kex-311.htm (EX-31.1) — 11KB
• a12312310kex-312.htm (EX-31.2) — 11KB
• a12312310kex-321.htm (EX-32.1) — 9KB
• ex-97clawbackpolicy.htm (EX-97) — 27KB
• gden-20231231_g1.jpg (GRAPHIC) — 299KB
• image_0.jpg (GRAPHIC) — 6KB
• 0001071255-24-000013.txt (&nbsp;) — 13903KB
• gden-20231231.xsd (EX-101.SCH) — 85KB
• gden-20231231_cal.xml (EX-101.CAL) — 166KB
• gden-20231231_def.xml (EX-101.DEF) — 415KB
• gden-20231231_lab.xml (EX-101.LAB) — 1078KB
• gden-20231231_pre.xml (EX-101.PRE) — 722KB
• gden-20231231_htm.xml (XML) — 2343KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 9 ITEM 1B. UNRESOLVED STAFF COMMENTS 21 ITEM 1C. CYBERSECURITY 21 ITEM 2.

PROPERTIES

PROPERTIES 22 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 23 ITEM 4. MINE SAFETY DISCLOSURES 23 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 24 ITEM 6. [RESERVED] 25 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 34 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 35 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 76 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 76 ITEM 9B. OTHER INFORMATION 76 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 76 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 76 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 77 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 77 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 78 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 78 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 79 ITEM 16. FORM 10-K SUMMARY 83

SIGNATURES

SIGNATURES 84 PART I As used in this Annual Report on Form 10-K ("Annual Report"), unless the context suggests otherwise, the terms "Golden," "we," "our" and "us" refer to Golden Entertainment, Inc. and its subsidiaries.

Forward-Looking Statements

Forward-Looking Statements This Annual Report, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "potential," "seek," "should," "think," "will," "would" and similar expressions, or they may use future dates. In addition, forward-looking statements include statements regarding our strategies, objectives, business opportunities and plans for future expansion, developments or acquisitions; anticipated future growth and trends in our business or key markets; projections of future financial condition, operating results, income, capital expenditures, costs or other financial items; anticipated regulatory and legislative changes; and other characterizations of future events or circumstances as well as other statements that are not statements of historical fact. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause our actual results to differ materially include: changes in national, regional and local economic and market conditions; legislative and regulatory matters (including the cost of compliance or failure to comply with applicable laws and regulations); increases in gaming taxes and fees in the jurisdictions in which we o

BUSINESS

ITEM 1. BUSINESS Corporate Information We were incorporated in Minnesota in 1998 under the name of GCI Lakes, Inc., which name was subsequently changed to Lakes Gaming, Inc. in August 1998, to Lakes Entertainment, Inc. in June 2002 and to Golden Entertainment, Inc. in July 2015. Our shares began trading publicly in January 1999. The mailing address of our headquarters is 6595 S. Jones Boulevard, Las Vegas, Nevada 89118, and our telephone number at that location is (702) 893-7777. Overview We own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and branded tavern operations. Our portfolio includes eight casino properties located in Nevada, as well as 69 branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. Rocky Gap Sale On July 25, 2023, we completed the sale of Rocky Gap Casino Resort ("Rocky Gap") to Century Casinos, Inc. ("Century") and VICI Properties, L.P. ("VICI"), an affiliate of VICI Properties Inc., for aggregate cash consideration of $260.0 million. Specifically, Century acquired the operations of Rocky Gap from us for $56.1 million in cash (subject to adjustment based on Rocky Gap's working capital and cage cash at closing), and VICI acquired the real estate assets relating to Rocky Gap from us for $203.9 million in cash. Prior to its sale, the operations of Rocky Gap were presented in our Maryland Casino Resort reportable segment. Refer to the discussion in " Note 3 — Divestitures and Assets Held for Sale " in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further information. 1 Distributed Gaming Operations Sale On March 3, 2023, we entered into definitive agreements to sell our distributed gaming operations in Nevada and Montana to an affiliate of J&J Ventures Gaming, LLC ("J&J Gaming"), for aggregate consideration of $322.5 million. On September 13, 2023, we completed the sale of our

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View this 10-K filing on SEC EDGAR