Golden Leisure Now Amongst On line casino Dividend Payers

Posted on: March 2, 2024, 05:43h. 

Final up to date on: March 2, 2024, 05:43h.

Golden Leisure (NASDAQ: GDEN) is now among the many group on line casino operators paying traders a quarterly dividend.

Golden distributed gaming
Golden Leisure’s company brand. The corporate introduced its first ever quarterly dividend on Thursday. (Picture: PR Newswire)

Together with its fourth-quarter earnings report on Thursday, the Strat operator introduced that it initiated a quarterly dividend of 25 cents a share. The distribution is payable on April 4 to shareholders of file as of March 18. Primarily based on the gaming firm’s closing share value of $34.26 yesterday and a $1 per share annual payout, Golden Leisure’s dividend yield could be 2.9% as of March 1.

That’s greater than double the yield on the Russell 2000 Index, which is a broadly adopted gauge of small-cap equities — a related comparability as a result of with a market capitalization of $982.23 million, the gaming resides in small-cap territory.

On the finish of final 12 months, Golden had money and money equivalents of $197.6 million, which doesn’t embrace money from the sale of its Nevada distributed gaming unit. That transaction closed on Jan. 10.

Golden Stability Sheet Can Assist Shareholder Rewards

Golden Leisure isn’t a stranger to shareholder rewards. Final July, it introduced a particular dividend of $2 per share whereas including $100 million to a share repurchase program. These strikes underscore the strong well being of the operator’s stability sheet.

With one of many strongest stability sheets in gaming and full possession of its properties, we proceed to suggest GDEN as a cheap means for publicity to the wholesome and rising Southern Nevada Gaming area,” wrote Macquarie analyst Chad Beynon in a observe to shoppers.

He has an “outperform” score on Golden with a $47 value goal, which suggests upside of 37.1% from the March 1 shut.

Within the fourth quarter, the Arizona Charlie’s operator repurchased $59 million of debt, bringing its 2023 debt discount tally to $239 million. On the finish of the 12 months, the gaming firm had $677.7 million in excellent liabilities and no excellent borrowings on its $240 million revolving credit score facility.

Laughlin Supply of Power, Intrigue for Golden

Whereas earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) at Golden’s two Laughlin, Nevada on line casino resorts declined 9% within the fourth quarter, income rose regardless of there being one much less live performance than within the year-earlier interval.

“In December, Laughlin income and EBITDA confirmed optimistic development over the prior 12 months, and we proceed to see indicators of margin stabilization to begin 2024. Leisure is an enormous driver of efficiency for our Laughlin properties, and we’re working to optimize our choices to create cheaper site visitors drivers to our venues over the approaching 12 months,” stated Golden CFO and President Charles Protell on a convention name with analysts.

Nevertheless, the operator stays mum on the nonetheless shuttered Colorado Belle — a Laughlin venue that was closed as a result of coronavirus pandemic and has but to reopen. It’s unlikely Golden will reopen that riverboat on line casino, however the firm hasn’t but publicly revealed subsequent steps for the property.

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