Gden

[brucefan]

CAREFUL , VERY THIN 9.25

as always , do your own research

think this one goes much higher earnings wed after the close

They have 43% OF THE SLOT MACHINE MARKET IN LAS VEGAS

http://www.lakesentertainment.com/

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  Golden Gaming and Lakes Entertainment Merger Closes
  
  
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    Golden Gaming and Lakes Entertainment Merger Closes
  
  
  
  
  
  LAS VEGAS and MINNEAPOLIS, Aug. 3, 2015 /PRNewswire/ -- Golden Entertainment, Inc. (formerly Lakes Entertainment, Inc.) (NASDAQ: LACO) announced today that the merger between Sartini Gaming, Inc. ("Golden Gaming") and a subsidiary of Lakes Entertainment, Inc. has closed, after receiving various approvals from the Lakes' shareholders at the company's annual meeting on July 29. In connection with the merger, Lakes has been renamed Golden Entertainment, Inc.
  The all-stock transaction unites two renowned and respected brands in the gaming space. The newly combined company operates approximately 9,250 slot machines and video lottery terminals in Nevada and Maryland across four casino properties, 48 taverns and 670 route locations. Golden Entertainment's headquarters is now based in Las Vegas, Nevada.
  "Today is a truly monumental and meaningful day for our company, our team members, our business partners and the markets we collectively serve," said Blake L. Sartini, the newly-appointed President, Chairman and Chief Executive Officer of Golden Entertainment, Inc. "With Golden Entertainment, we now have a national, diversified gaming company with strong assets across the country. And with this infrastructure, we look forward to further enhancing our unique blend of distributed gaming, casinos and taverns."
  Lyle Berman, former Chairman of Lakes Entertainment Inc. stated, "Our cash along with the Rocky Gap Casino, when combined with the diverse operations of Golden Gaming, provides an exciting growth opportunity for our existing and future shareholders. The combined company's refinanced debt will provide an immediate benefit in company net income and free cash flow."
  Lakes issued an aggregate of 8,229,908 shares of its common stock in connection with the merger, of which 7,772,736 shares (subject to post-closing adjustments) were issued to The Blake L. Sartini and Delise F. Sartini Family Trust, the sole shareholder of Golden Gaming. The company's common stock continues to be traded on the NASDAQ Stock Market and its trading symbol, effective August 4, 2015, will be changed from "LACO" to "GDEN".
  In connection with the closing of the merger, the size of the board of directors of the combined company was increased from five to seven. Larry Barenbaum and Ray Moberg resigned from the formerly Lakes Entertainment board. Subsequently, Blake Sartini was appointed the new Chairman of the Board of Golden Entertainment, and the remaining three vacancies were filled by the following appointees:
  
  • Mark Lipparelli – Chief Executive Officer of Gioco Ventures, a strategic advisory and product development firm serving the gaming, investment, technology and entertainment industries across the globe. Lipparelli also currently represents State Senate District 6 in the Nevada Legislature, a post he has held since December 2014. Lipparelli is a board trustee of the University of Nevada Foundation, board member of the National Center for Responsible Gaming and served as a board member and Chairman of the Nevada State Gaming Control Board between 2009 and 2012.
  • Robert Miodunski – former Chief Executive Officer of American Gaming Systems from 2010 until its acquisition by Apollo Entertainment in late 2014. Miodunski also previously served as Chief Executive Officer of Alliance Gaming Corporation from 2001 to 2004 and President of United Coin from 1994 to 1999. From 2005 to 2008, Miodunski served on the board of directors of Elixir Gaming Technologies, Inc.
  • Terrence Wright – Chairman of the Board and majority owner of Westcor Land Title Insurance Company, a company he founded in 1991 and which is licensed to issue policies of title insurance throughout the United States. Wright is currently on the board of Southwest Gas Corporation, is an emeritus member and past chairman of the University of Nevada Las Vegas Foundation Board and is the past chairman for the Nevada Development Authority, the Nevada Land Title Association and the Nevada Chapter of the Young Presidents' Organization.
  Messrs. Sartini, Lipparelli, Miodunski and Wright join existing directors Lyle A. Berman; Timothy J. Cope (formerly President and Chief Financial Officer of Lakes) and Neil I. Sell on the Golden Entertainment board. The company's newly-appointed management team consists of Sartini; Chief Financial Officer Matthew W. Flandermeyer; and Chief Operating Officer Stephen A. Arcana.
  Golden Entertainment also announced today the successful syndication and closing of a new $160 million senior secured credit facility, comprising a $120 million senior secured term loan (which was fully drawn at closing) and a $40 million senior secured revolving credit facility (of which $25 million was drawn at closing). The new facility matures in 2020. Borrowings under the new facility bear interest, at the company's option, at either (1) the highest of the federal funds rate plus 0.50%, the Eurodollar rate for a one-month interest period plus 1.00%, or the administrative agent's prime rate as announced from time to time, or (2) the Eurodollar rate for the applicable interest period, plus an applicable margin based on the company's leverage ratio ranging from 1.75% to 2.75% for Eurodollar loans and 0.75% to 1.75% for base rate loans. Net proceeds from the new facility were used to repay and discharge all of the outstanding senior secured indebtedness of Golden Gaming as well as Lakes' outstanding Rocky Gap indebtedness. The interest rates under the new senior secured credit facility, which are lower than previously anticipated, are expected to result in significant interest savings compared to Golden Gaming's prior interest expense. Capital One and KeyBank National Association acted as the joint lead arrangers and joint book runners for the new facility. Capital One acted as administration agent and KeyBank National Association acted as syndication agent in connection with the new facility.
  Macquarie Capital served as Lakes' exclusive financial advisor. Gray, Plant, Mooty, Mooty & Bennett, P.A. served as legal counsel to Lakes. Union Gaming Advisors, LLC served as Golden Gaming's financial advisor. Latham & Watkins LLP served as legal counsel to Golden Gaming. Hunton & Williams LLP served as legal counsel to the lenders.
  About Golden Entertainment, Inc.
  Golden Entertainment, Inc., formerly Lakes Entertainment, Inc., offers an unmatched blend of gaming diversity. Through its three dynamic gaming divisions — Golden Casino Group, PT's Entertainment Group and Golden Route Operations — the Golden group of companies operates 9,250 slot machines and video lottery terminals, as well as 22 table games in Nevada and Maryland across four casino properties, 48 taverns and 670 route locations.
  Golden Casino Group offers four distinctive, inviting resorts: In Pahrump, Nevada - the Pahrump Nugget Hotel & Casino, Gold Town Casino, and Lakeside Casino and RV Park and in Flintstone, Maryland - the Rocky Gap Resort. All feature an exciting mix of gaming, dining and entertainment and a superior level of guest service.
  PT's Entertainment Group is Nevada's largest tavern operator, with 48 establishments. It operates PT's, Sierra Gold and Sean Patrick's in Southern Nevada and Sierra Gold and Sierra Junction in Northern Nevada. All Nevada locations feature the exclusive, proprietary Golden Rewards player rewards program.
  Golden Route Operations is Nevada's largest distributed gaming operator, with more than 7,100 machines in 670 locations statewide. Golden Route Operations is a market leader in player tracking, rewards, player recognition and communication technology with its Golden Edge Slot Management System. Golden Route Operations includes Albertsons, Smith's, Vons, CVS, Pilot Travel, Love's Travel and Buffalo Wild Wings as long-term national partners. For more information, visit www.goldenent.com.
  Media Contact:
  Jesse Scott | 702-739-9933, ext. 228
  Logo - http://photos.prnewswire.com/prnh/20150801/253916LOGO
  SOURCE Golden Entertainment, Inc.
  
  
  
  
  
  
  

 

[brucefan]

nice numbers
Golden Entertainment Announces Third Quarter 2015 Results

– Completed Lakes Entertainment/Sartini Gaming Merger in July 2015 –
– Reports Nine Month Combined Adjusted EBITDA of $31.0 million, up 12%
http://finance.yahoo.com/news/golden-entertainment-announces-third-quarter-210100981.html




LAS VEGAS--(BUSINESS WIRE)--
Golden Entertainment, Inc. (formerly Lakes Entertainment, Inc.) (GDEN) today announced financial results for the third quarter ended September 30, 2015.
Highlights for the Third Quarter Ended September 30, 2015

• On July 31, 2015, Sartini Gaming, Inc. (“Sartini Gaming”) merged with a subsidiary of Lakes Entertainment (the “Merger”). In connection with the Merger, Lakes Entertainment was renamed Golden Entertainment (“Golden Entertainment” or the “Company”). With the completion of the Merger, the Company owns and operates approximately 9,300 gaming devices, as well as approximately 30 table games across four casino properties, 48 taverns and 670 route locations.
• Net revenues for the three months ended September 30, 2015 were $62.5 million, an increase of 292% compared to the prior year period. For the quarter ended September 30, 2015, net income was $3.0 million, or $0.16 per diluted share, compared to a net loss of $(23.1) million, or $(1.72) per diluted share in the prior year quarter. These results include the operations of Sartini Gaming for 61 days during the quarter.
• Combined Net Revenues and Combined Adjusted EBITDA for the quarter ended September 30, 2015 were $86.2 million and $9.9 million, respectively, presented as if the results of Sartini Gaming had been included for the entire 2015 third quarter. The combined results reflect a 6.1% increase in net revenues for the Distributed Gaming segment compared to the prior year quarter.
• On July 31, 2015, the Company completed the syndication of a new $160.0 million senior secured credit facility maturing in 2020, of which $145.0 million was drawn at closing.
• Announced plans to add four Las Vegas tavern locations in 2016, including the opening of the Company’s first brewery.

“This quarter was transformational for the Company and with the completion of the Merger, we have achieved an exceptional combination of assets and team members. Everyone is excited by the opportunities arising out of this transaction,” said Blake L. Sartini, Chief Executive Officer of Golden Entertainment. “Going forward, in addition to the current portfolio that is generating strong free cash flow, we are focused on executing on a broad slate of long-term growth opportunities, both organic as well as strategic, while continuing to deliver a quality experience to customers and generating returns for shareholders.”

 

[brucefan]

sharp investor just added 5k @ 9.65 ( owns over 30k) target 20-22 If curious, owns ERI as well

which one hits 20 first????

 

[brucefan]

November 4, 2015 – 3:38pm Golden Entertainment reports Profits

In its First Quarter as a Public Company

By: Howard Stutz

Las Vegas-based Golden Entertainment, in its first two months as a public company, hopes its initial quarterly results

foreshadowed the business’s potential for investors.
The company is the result of a $341 million merger between Lakes Entertainment and Golden Gaming — said Wednesday that

its net income for the third quarter was $3.0 million… for a +16 cent per share profit

The positive earnings figure reversed a -$23.1 million net loss reported in the same quarter a year ago by Lakes Entertainment.
Combined, Golden Entertainment said its net revenue for the quarter that ended Sept. 30 was $62.5 million.

The quarter included just 61 days of operating results from Golden Gaming.
The merger brought together Golden Gaming — Nevada’s largest slot machine route operator, tavern owner and the company’s three

casinos in Pahrump, Nevada… With Lakes Entertainment, which the owned the Rocky Gap Casino in Maryland.
“In addition to the current portfolio that is generating strong free cash flow, we are focused on executing on a broad slate of long-term

growth opportunities,” Sartini said in a statement.
On the conference call, Sartini said the company would evaluate opportunities to expand its presence if those opportunities

“make economic and strategic sense.”
CEO Sartini only faced a few questions from investors on the company’s quarterly conference call but said the company has been in

active discussions to gain analyst coverage from the investment community.
At the Rocky Gap Casino in Maryland… Golden Gaming added 54 additional slot machines, and has asked the state of Maryland for

permission to expand its table game pit. Golden is also spending $1 million to add 160 additional parking spaces to the resort.
In Nevada, the company’s more than 7,600 slot machine route operation, which provided 65.00% percent of the overall cash flow

in the quarter, added 85 gaming devices this year, including 60 at its own taverns.

Golden is contracted to add 115 more devices at 10 locations next year.
In response to a question about Reno, Nevada… Sartini said Golden is focused on expanding along the US Interstate #80 corridor.

He added that the company now operates 2,500 slot machines in the Northern Nevada market.

The company also has a gaming route license in Montana, and is currently evaluating opportunities in the state, which has more than

16,500 slot machines.
During the quarter, Golden also incurred -$9.3 million in merger expenses.
Golden had been privately held by the Sartini family until the merger.

The Sartini family has retained a 35.00% percent ownership stake in Golden Entertainment and Blake Sartini has been named the

CEO and Chairman of the company’s board.
REFERENCE LINK:

http://goo.gl/y3gEjf

 

[brucefan]

Hearing there are big buyers under the market right now

rumors curculating about a special big dividend in the next 60 to 90 days

only mental stops on this one, very thin, and going higher

 

[brucefan]

November 22, 2015
Merger Opened Doors but hasn’t Changed

Sartini’s Business Style



By: Howard Stutz

CEO of Golden Entertainment Blake Sartini talks about the changes happening at Golden Entertainment
at the company offices at 6595 S. Jones Blvd., in Las Vegas, Monday, Nov. 2, 2015.



He oversees a publicly traded company, but you won’t find Blake Sartini with his attention focused solely on the daily ups and downs

of Golden Entertainment’s stock price.
The gaming operator is nearly 4 months old after a $341 million merger that brought together Golden Gaming’s statewide slot machine route

operation, Pahrump casinos and the Nevada-leading tavern business with Lakes Entertainment, owners of the Rocky Gap Casino in Maryland.
Sartini, whose family kept a 35.00% percent ownership stake in the once privately held business, sees no reason to change his or the company’s

management style.
“Prior to the merger, we kept our heads down, focused on what we were doing and executed our plan,” said Sartini, 56, who is chairman and

CEO of Golden Entertainment. “We’re doing the same thing today, and we know if we do that, we’ll create shareholder value.”
Golden’s origins stem from Southwest Services, a vending machine and pay telephone provider that Sartini began in the 1980s with a high school friend.

After leaving a nearly two-decade-long executive position with Station Casinos in 2001, Sartini re-branded Southwest as Golden and changed the focus to

tavern development.
Golden operates 46 taverns in Nevada through the PT’s, Sierra Gold and Sean Patrick’s brands. The company recently announced it will add 4 more locations

in Las Vegas next year, including the its first micro-brewery.
“Give or take, we have about 10.00% percent of the tavern capacity in Clark County,” Sartini said. “So we see the ability to leverage our brands.”
Nevada is home, and the company employs some 2,000 workers statewide. But the merger opened new opportunities.
Lakes closed its headquarters in Minnesota and relocated the business to Golden’s Las Vegas complex off Jones Boulevard near the 215 Beltway.

Two Lakes employees relocated to Las Vegas, and the company’s corporate finance and accounting staff — headed by Chief Financial Officer Matthew Flandermeyer —

was beefed up to reflect its switch to a Nasdaq listed company.
That’s the extent of the changes to company. Golden’s new capital structure, however, which includes a $160 million line of credit, created new avenues for expansion.
“There are opportunities that have materialized that we wouldn’t have seen in the past,” Sartini said. “This transaction has risen our profile in a sense that

we now have the financial capability and managerial expertise to pursue some these opportunities.”
Golden’s place as Nevada’s largest slot machine route operator — managing more than 7,600 slot machines in 670 statewide locations — could be valuable

to states considering that line of business.


The Nevada routes provided Golden with 65.00% percent of its overall cash flow in the third quarter. Including the Pahrump casinos and Rocky Gap,

Golden operates 9,300 slot machines and 30 table games….. “We have a proven track record in Nevada,” Sartini said.
Golden is already licensed as a slot route operator in Montana through Sartini Gaming, and the company is considering ways to enter the market, which has

16,500 slot machines in bars and taverns. As a comparison, Nevada has 18,500 slot machines under various route operations.

Illinois also has a growing slot machine route market, and Golden has “applicant status” in the state.
Pennsylvania is looking into placing slot machines in six of the state’s airports. Oregon, Montana, South Dakota and Louisiana are either considering legalizing

a slot route-type business model or expanding a current market. All are potential opportunities for Golden Gaming.
Sartini said the company will explore regional casino investments, capitalizing on its ownership of Rocky Gap, a 200-room hotel-casino inside Rocky Gap State Park

near Cumberland, Maryland. The resort includes a Jack Nicklaus golf course and is within a three-hour drive of 10 million people. Sartini said parking and the casino

will be increased while plans are being considered to add restaurants and double the size of the hotel.
In October, gaming revenue at Rocky Gap grew +10.80% percent to $4.2 million, adding to the statewide casino increase of +9.10% percent, according to Maryland

casino regulators.
Sartini isn’t concerned about next year’s opening of MGM Resorts International’s $1.2 billion hotel-casino in National Harbor, Maryland. Rocky Gap saw little impact

from last year’s opening of Horseshoe Casino Baltimore, plus the casino has other customer markets, including Pittsburgh.
“We’re very bullish on the future of this property,” he said.
Sartini gained gaming experience, first with Michael Gaughan, and then with Station Casinos. He served in various management and executive positions,

including chief operating officer.

His wife, Delise, is the sister of Station Casinos owners Frank Fertitta III and Lorenzo Fertitta.
Now, he watches Station’s moves along with other regional gaming operators.
“As a public company, we do have peers,” Sartini said. “We do digest a lot of information they put up the other companies put up publicly.

It’s not as a comparison. We want to make sure we’re up to speed on what’s going on with gaming in general.”
REFERENCE LINK:
http://goo.gl/qMPhuZ

 

[brucefan]

Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.Golden Entertainment Inc (NASDAQ:GDEN) investors should be aware of an increase in hedge fund interest of late. While GDEN shares were essentially flat during the third quarter, the stock could be found in one more hedge fund’s portfolio by the end of the quarter, among those that we track. There were 7 hedge funds in our database with GDEN holdings on September 30, owning 17.40% of the company’s stock at that time, also up by over 10% over the quarter. After an extremely stable eight-month run, shares finally started breaking out to the high side in November, gaining 12%.The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Upland Software Inc (NASDAQ:UPLD), Community Healthcare Trust Inc (NYSE:CHCT), and JG Wentworth Co (NYSE:JGW) to gather more data points.
Follow Golden Entertainment, Inc. (NASDAQ:GDEN)





In today’s marketplace there are dozens of formulas investors can use to analyze publicly traded companies. Some of the most underrated formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the elite investment managers can outclass the market by a healthy amount (see the details here).Now, let’s take a glance at the recent action encompassing Golden Entertainment Inc (NASDAQ:GDEN).How have hedgies been trading Golden Entertainment Inc (NASDAQ:GDEN)?

Heading into Q4, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 17% gain from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes substantially (or had already accumulated large positions).According to Insider Monkey’s hedge fund database, Jeffrey Bronchick’s Cove Street Capital has the biggest position in Golden Entertainment Inc (NASDAQ:GDEN), worth close to $6.9 million, comprising 0.9% of its total 13F portfolio. On Cove Street Capital’s heels is Nantahala Capital Management, led by Wilmot B. Harkey and Daniel Mack, holding a $6.2 million position; 0.8% of its 13F portfolio is allocated to the company. Other members of the smart money that hold long positions contain PAR Capital Management, founded by Paul Reeder, Renaissance Technologies, and Mario Gabelli’s GAMCO Investors.

Consequently, specific money managers have jumped into Golden Entertainment Inc (NASDAQ:GDEN) headfirst. Cove Street Capital, managed by Jeffrey Bronchick, initiated the biggest position in Golden Entertainment Inc (NASDAQ:GDEN). Cove Street Capital had $6.9 million invested in the company at the end of the quarter. Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management also initiated a $6.2 million position during the quarter. The other funds with new positions in the stock are PAR Capital Management, Renaissance Technologies, and GAMCO Investors.Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Golden Entertainment Inc (NASDAQ:GDEN) but similarly valued. These stocks are Upland Software Inc (NASDAQ:UPLD), Community Healthcare Trust Inc (NYSE:CHCT), JG Wentworth Co (NYSE:JGW), and API Technologies Corp (NASDAQ:ATNY). All of these stocks’ market caps match GDEN’s market cap.

Ticker	No of HFs with positions	Total Value of HF Positions (x1000)	Change in HF Position
UPLD	4	2966	1
CHCT	4	14821	0
JGW	4	22279	-4
ATNY	5	25565	0

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $16 million. That figure was $21 million in GDEN’s case. API Technologies Corp (NASDAQ:ATNY) is the most popular stock in this table. On the other hand Upland Software Inc (NASDAQ:UPLD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Golden Entertainment Inc (NASDAQ:GDEN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and appear to have timed its surge well, it may be a good idea to analyze it in detail and potentially include it in your portfolio.http://www.insidermonkey.com/blog/s...ertainment-inc-gden-preceded-breakout-400668/

 

[brucefan]

Golden Entertainment Could Follow the Successful Path of Eldorado Resorts.

Want to see the path of casino stock Golden Entertainment(GDEN – Get Report) ? Look no farther than a similar company, Eldorado Resorts(ERI – Get Report) .
I have written extensively about Eldorado (here andhere), so let’s dig into Golden.
Both Golden and Eldorado were private companies that became public through reverse mergers. Golden merged with Lakes Entertainment and Eldorado with MTR Gaming. Both had large debt burdens at extremely high rates of interest which were refinanced at near record low rates saving each approximately $0.80 per share in interest expense annually, money that flows straight to the bottom line. The dollar amounts of interest expense savings are $18 million and $35 million each year respectively.


The similarities don’t end there. Both companies have large insider ownership (Eldorado’s Carano family has a 47% stake, and Golden’s Sartini family owns 33% as well as Director Lyle Berman’s 15% stake) and investment fund Par Capital has a significant position in each. Eldorado has seven casino properties covering five states. Golden has four casino properties in two states, however, in addition to Golden’s casinos, it is also involved in the distributed gaming business.
Must Read: Eldorado Resorts Stock Will Benefit From Reno’s Transformation
Distributed gaming incorporates two businesses: the company-owned tavern business; and gaming machine servicing business. Gaming machines, typically video poker, can be located at gas stations, restaurants, convenience stores, grocery stores and bars. They contribute 71% of the company revenues and 64% of earnings before interest, taxes, depreciation and amortization (trailing 12 months, ending June 2015).
The Casinos business involves the company ownership of three casinos in Pahrump, Nevada and the Rocky Gap Casino in Maryland. This business line contributes 29% of company revenues and 36% of company earnings before interest, taxes, depreciation and amortization. The three Pahrump casinos are smaller in size with less amenities than Las Vegas strip-type properties, but still have decent margins. The Rocky Gap casino, however, is quite a significant property, with a Nicklaus golf course, spa, convention center, 200 hotel rooms, 627 slot machines and 18 table games. Management has already earmarked $1 million to expand its parking lot, pending approval, as well as adding three more table games. There is space to add up to 1,500 more slot machines as well, so there is definite potential to continue to grow Rocky Gap’s revenue base. Currently, Rocky Gap contributes about 60% of the revenue of Golden’s casino operations with the Pahrump casinos making up the remaining 40%.
One final similarity between Golden and Eldorado: Eldorado’s inclusion in to the Russell indexes by way of their market capitalization exceeding the minimum threshold — well, come next spring, Golden will trek that same course.
Golden’s first earnings report as a public company showed it earning $0.16 per fully diluted share and that is without the full benefit of the interest expense savings from the refinance.


GDEN data by YCharts

A Special Dividend
Leftover from the Lakes Entertainment era, is a $60 million note that Golden holds with the Jamul Indian Tribe in San Diego. Entered in to in 1999, this was part of a financing arrangement that Lakes had extended to the band to help develop a casino. However, this eventually fell through with Lakes terminating its relationship with the band in 2012 after failing to get a casino off the ground. At this point, the note was essentially written off.
Enter Penn National Gaming. The company and the Jamul Tribe are now seeking to do a $460 million bond offering to build the Hollywood Casino Jamul. Proceeds from the offering are going to be used to build a casino and pay back previous investors in the Jamul Tribal Casino project. Golden’s predecessor company is listed as a previous creditor. S&P, which rated the bond offering “B,” expects Golden to receive cash proceeds of no less than $24 million, which will likely be distributed as a special dividend to two-thirds of Golden shareholders (it has 21.6 million fully diluted shares outstanding; however, by agreement, Sartini’s 33.2% stake will not receive any proceeds, making eligible shares equal to 14.4 million shares, or, approximately $1.75 per share.)
Based on the above facts and with the current share price hovering around $10, a $20 price target within a year is well within reach.
Risks
With only 21.6m shares outstanding, the stock is very thinly traded and that gives many investors pause. Also the company generates roughly 82% of its revenues with operations in Nevada. If something were to adversely affect Nevada’s economy, GDEN shares would probably be hit significantly.

 

[brucefan]

Golden Entertainment Could Follow the Successful Path of Eldorado Resorts.

Want to see the path of casino stock Golden Entertainment(GDEN – Get Report) ? Look no farther than a similar company, Eldorado Resorts(ERI – Get Report) .
I have written extensively about Eldorado (here andhere), so let’s dig into Golden.
Both Golden and Eldorado were private companies that became public through reverse mergers. Golden merged with Lakes Entertainment and Eldorado with MTR Gaming. Both had large debt burdens at extremely high rates of interest which were refinanced at near record low rates saving each approximately $0.80 per share in interest expense annually, money that flows straight to the bottom line. The dollar amounts of interest expense savings are $18 million and $35 million each year respectively.


The similarities don’t end there. Both companies have large insider ownership (Eldorado’s Carano family has a 47% stake, and Golden’s Sartini family owns 33% as well as Director Lyle Berman’s 15% stake) and investment fund Par Capital has a significant position in each. Eldorado has seven casino properties covering five states. Golden has four casino properties in two states, however, in addition to Golden’s casinos, it is also involved in the distributed gaming business.
Must Read: Eldorado Resorts Stock Will Benefit From Reno’s Transformation
Distributed gaming incorporates two businesses: the company-owned tavern business; and gaming machine servicing business. Gaming machines, typically video poker, can be located at gas stations, restaurants, convenience stores, grocery stores and bars. They contribute 71% of the company revenues and 64% of earnings before interest, taxes, depreciation and amortization (trailing 12 months, ending June 2015).
The Casinos business involves the company ownership of three casinos in Pahrump, Nevada and the Rocky Gap Casino in Maryland. This business line contributes 29% of company revenues and 36% of company earnings before interest, taxes, depreciation and amortization. The three Pahrump casinos are smaller in size with less amenities than Las Vegas strip-type properties, but still have decent margins. The Rocky Gap casino, however, is quite a significant property, with a Nicklaus golf course, spa, convention center, 200 hotel rooms, 627 slot machines and 18 table games. Management has already earmarked $1 million to expand its parking lot, pending approval, as well as adding three more table games. There is space to add up to 1,500 more slot machines as well, so there is definite potential to continue to grow Rocky Gap’s revenue base. Currently, Rocky Gap contributes about 60% of the revenue of Golden’s casino operations with the Pahrump casinos making up the remaining 40%.
One final similarity between Golden and Eldorado: Eldorado’s inclusion in to the Russell indexes by way of their market capitalization exceeding the minimum threshold — well, come next spring, Golden will trek that same course.
Golden’s first earnings report as a public company showed it earning $0.16 per fully diluted share and that is without the full benefit of the interest expense savings from the refinance.


GDEN data by YCharts

A Special Dividend
Leftover from the Lakes Entertainment era, is a $60 million note that Golden holds with the Jamul Indian Tribe in San Diego. Entered in to in 1999, this was part of a financing arrangement that Lakes had extended to the band to help develop a casino. However, this eventually fell through with Lakes terminating its relationship with the band in 2012 after failing to get a casino off the ground. At this point, the note was essentially written off.
Enter Penn National Gaming. The company and the Jamul Tribe are now seeking to do a $460 million bond offering to build the Hollywood Casino Jamul. Proceeds from the offering are going to be used to build a casino and pay back previous investors in the Jamul Tribal Casino project. Golden’s predecessor company is listed as a previous creditor. S&P, which rated the bond offering “B,” expects Golden to receive cash proceeds of no less than $24 million, which will likely be distributed as a special dividend to two-thirds of Golden shareholders (it has 21.6 million fully diluted shares outstanding; however, by agreement, Sartini’s 33.2% stake will not receive any proceeds, making eligible shares equal to 14.4 million shares, or, approximately $1.75 per share.)
Based on the above facts and with the current share price hovering around $10, a $20 price target within a year is well within reach.
Risks
With only 21.6m shares outstanding, the stock is very thinly traded and that gives many investors pause. Also the company generates roughly 82% of its revenues with operations in Nevada. If something were to adversely affect Nevada’s economy, GDEN shares would probably be hit significantly.

Looks like those rumors of a big dividend are true


A Special Dividend
Leftover from the Lakes Entertainment era, is a $60 million note that Golden holds with the Jamul Indian Tribe in San Diego. Entered in to in 1999, this was part of a financing arrangement that Lakes had extended to the band to help develop a casino. However, this eventually fell through with Lakes terminating its relationship with the band in 2012 after failing to get a casino off the ground. At this point, the note was essentially written off.
Enter Penn National Gaming. The company and the Jamul Tribe are now seeking to do a $460 million bond offering to build the Hollywood Casino Jamul. Proceeds from the offering are going to be used to build a casino and pay back previous investors in the Jamul Tribal Casino project. Golden’s predecessor company is listed as a previous creditor. S&P, which rated the bond offering “B,” expects Golden to receive cash proceeds of no less than $24 million, which will likely be distributed as a special dividend to two-thirds of Golden shareholders (it has 21.6 million fully diluted shares outstanding; however, by agreement, Sartini’s 33.2% stake will not receive any proceeds, making eligible shares equal to 14.4 million shares, or, approximately $1.75 per share.)
Based on the above facts and with the current share price hovering around $10, a $20 price target within a year is well within reach.

 

[brucefan]

Golden Entertainment Sells Promissory Note Related to Jamul Indian Village

By Jermaine DupreeDecember 10, 2015EconomyNo Comments

0 2 1 0


LAS VEGAS–(BUSINESS WIRE)–

Golden Entertainment, Inc. (GDEN) (“Golden” or the “Company”) today announced that it has sold its subordinated promissory note from the Jamul Indian Village (the “Note”), to San Diego Gaming Ventures, LLC, a subsidiary of Penn National Gaming, Inc. (the “Buyer”), for $24.0 million in cash.
Under the terms of the January 2015 merger agreement between Lakes Entertainment, Inc. and Sartini Gaming, Inc. (the “Merger Agreement”), the proceeds received from the sale of the Note, net of related costs, will be distributed to the Company’s shareholders. In addition, under the terms of the Merger Agreement, Sartini Gaming’s sole shareholder, for itself and any related party transferees of its shares (together, the “Sartini Shareholders”), which total approximately 8.0 million shares, waived their right to receive such distribution with respect to their shares, except for a potential tax distribution, if any, unless their shares are sold to an unaffiliated third party. Also in connection with the merger, holders of an additional 0.5 million shares waived their right to receive such distribution, unless such shares are sold to an unaffiliated third party.
“With the formation of the Jamul disposition committee as part of the Merger Agreement, it has been our intention to monetize this non-core asset for the benefit of our shareholders. We are pleased the committee has successfully executed this transaction,” said Blake L. Sartini, Chief Executive Officer of the Company. “As we move forward into 2016, we remain focused on pursuing our strategy by further scaling our business and fulfilling our growth initiatives.”
As contemplated by the Merger Agreement, the Company is seeking a private letter ruling from the Internal Revenue Service (“IRS”) to the effect that the Sartini Shareholders’ waiver of their pro rata share of such distribution will not result in gross income to the Sartini Shareholders. It is anticipated that the Golden Board of Directors will declare a dividend to shareholders of the net proceeds from the Note sale following the IRS’ determination with respect to the private letter ruling. The Company expects the dividend to be declared during the first half of 2016. Using the current outstanding shares eligible for the distribution (approximately 13.4 million shares, which excludes approximately 8.5 million outstanding shares currently subject to the distribution waiver and 0.7 million vested, in-the-money stock options), assuming a favorable IRS private letter ruling, the Company estimates the dividend would be approximately $1.75 per eligible share (or $1.48 per eligible share if a favorable IRS private letter ruling is not obtained).
The Note had been written down to zero by the Company in 2011. As a result of the sale of the Note, the Company expects to record a gain during the fourth quarter ending December 31, 2015. The Company plans to utilize a portion of its federal net operating loss carryforwards to offset any taxable income related to the gain.

Related Quotes

• GDEN10.65+0.47%

Golden Entertainment, Inc. Watchlist

10.65+0.05(0.47%)
NASDAQ10:09 AM EST

• GOLDEN ENTERTAINMENT, INC. Financials EDGAR Online Financials 1 day 21 hrs ago
• Smart Money Confidence in Golden Entertainment Inc (GDEN) Preceded Breakout Insider Monkey q 2 days 14 hrs ago

 

[brucefan]

I think this stock is a steal below 10

Golden Entertainment to Acquire Distributed Gaming Business


LAS VEGAS--(BUSINESS WIRE)--
Golden Entertainment, Inc. (GDEN) (“Golden” or the “Company”) today announced it has entered into an agreement to acquire distributed gaming assets for a preliminary purchase price of approximately $20 million, including cash and approximately 50,000 shares of Golden Entertainment stock. The Company plans to fund the cash portion of the acquisition through the use of excess cash and availability under its revolving credit facility. As part of the transaction, the Company also will enter into a strategic relationship with the sellers to ensure operational continuity in the acquired assets. The acquired assets include approximately 1,000 gaming devices along with other assets. Management expects the transaction to be immediately accretive to the Company’s earnings per share.
The acquisition is subject to customary closing conditions and is expected to close during the first quarter of 2016. http://finance.yahoo.com/news/golden-entertainment-acquire-distributed-gaming-133000432.html

 

[brucefan]

The Timing Is Right For Golden Entertainment Dec. 28, 2015 11:30 AM ET | 2 comments | About: Golden Entertainment, Inc. (GDEN), Includes: ERI by: Oliver Rheinfurth
Disclosure: I am/we are long GDEN, ERI. (More...)I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.http://seekingalpha.com/article/3778746-the-timing-is-right-for-golden-entertainment?page=2







Summary

Management with tremendous pedigree.
Following in the successful footsteps of Eldorado Resorts.
Accretive acquisition adds 1,000 machines to a base of 7,700.
Sale of previously written-off asset for $24 million and payment of special dividend.



Ask most savvy investors - what is the most import aspect of a company? - and their response will most likely be...Management! I will get to that in a moment.

I have extensively covered Eldorado Resorts (NASDAQ:ERI) in several prior articles I, II, III and IV. There are several similarities between Golden Entertainment (NASDAQ:GDEN) and its big brother in the gaming business Eldorado Resorts.
Both Golden and Eldorado were private companies that became public through reverse mergers with other public companies. Golden merged with Lakes Entertainment and Eldorado with MTR Gaming. Both had large debt burdens at extremely high rates of interest, which were refinanced at near record low rates saving each approximately $0.80 per share in interest expense annually, money that flows straight to the bottom line. The dollar amounts of interest expense savings are $18m and $35m each year, respectively.
The similarities don't end there. Both companies have large insider ownership (ERI's Carano family has a 47% stake, and GDEN's Sartini family owns 33% as well as Director Berman's 15% stake) and investment fund Par Capital has a significant position in each. Eldorado has 7 casino properties covering 5 states. Golden has 4 casino properties in 2 states, however, in addition to Golden's casinos, it is also involved in the Distributed Gaming business.
Distributed gaming incorporates two businesses, its company-owned tavern business and its gaming machine servicing business. These gaming machines, typically video poker, can be located at gas stations, restaurants, convenience stores, grocery stores and bars. They contribute 71% of the company revenues and 64% of earnings before interest, taxes, depreciation and amortization based on the TTM at June 30, 2015.
One final similarity between Golden and Eldorado, I had written about Eldorado's inclusion in to the Russell indexes by way of their market capitalization exceeding the minimum threshold; ERI has nearly tripled since I began buying it back in late February of this year. Well, come next spring, Golden will trek that same course, make no mistake it is a catalyst and will affect price positively.
Management

Now for the most important part... Management:
GDEN has put together a team of executives with gaming experience to rival anyone in the business.

1. Blake Sartini, Chairman of the Board of GDEN. Prior to establishing Golden Gaming, Mr. Sartini served in various management and executive positions with Station Casinos, LLC, including Executive Vice President and Chief Operating Officer. Mr. Sartini also served as a director of Station Casinos, LLC from 1993 until 2001.
2. Lyle Berman, Director. Mr. Berman served as the Chairman of the Board of Directors of Grand Casinos, Inc. from October 1991 through December 1998. Mr. Berman served as the Executive Chairman of the Board of WPT Enterprises, Inc. (World Poker Tour) from its inception in February 2002 until July 2013. Mr. Berman served as Chairman of the Board of PokerTek, Inc. from January 2005 until October 2011 and served on the board until October 2014.
3. Mark Lipparelli, Director. Mr. Lipparelli currently serves as the Chief Executive Officer of Gioco Ventures, a strategic advisory and product development firm serving the gaming, investment, technology and entertainment industries around the globe, a position he has held since 2007. Mr. Lipparelli also currently represents State Senate District 6 in the Nevada Legislature. Between 2009 and 2012, Mr. Lipparelli served as a Board Member and Chairman of the Nevada State Gaming Control Board.
4. Robert Miodunski, Director. Mr. Miodunski previously served as the Chief Executive Officer of American Gaming Systems from 2010 until its acquisition by Apollo Entertainment in late 2014. Between 2004 and 2010, Mr. Miodunski served as a consultant to Bally Technologies, Inc. From 1994 through 2004, Mr. Miodunski served in various management and executive positions with Alliance Gaming Corporation, a supplier of gaming machines listed on the NYSE, including as Chief Executive Officer from 2001, a director from 2000 and President of United Coin (a route operator) from 1994 to 1999. From 2005 to 2008, Mr. Miodunski served on the Board of Directors of Elixir Gaming Technologies, Inc., a gaming company listed on the NYSE. (Alliance gaming went from $1 to $140 per share during Miodunski's tenure).

These men collectively have over well 100 years of gaming experience. If anyone can navigate the gaming landscape better, let them give it their best shot.
Accretive Acquisition

Being that Golden has only been a public company since 8/1/15, it's remarkable that they have managed to get their onerous debt refinanced and make such a strategic acquisition so quickly. On 12/22/15, Golden announced an acquisition of distributed gaming assets for a preliminary purchase price of $20 million, including cash and approximately 50,000 shares of GDEN stock. Golden plans to fund the cash portion through the use of excess cash and available credit on its revolving line. The acquired assets include approximately 1,000 gaming devices along with other assets. Management expects the transaction to be immediately accretive to earnings.
The acquisition is subject to customary closing conditions and is expected to close during the first quarter of 2016.
Sale of asset for $24 million and payment of special dividend

On 12/7/15, an article was published about Golden I wrote for another financial website. In the article, I wrote the following:

"Jamul Note. Leftover from the Lakes Entertainment era, is a $60 million note that Golden holds with the Jamul Indian Tribe in San Diego. Entered in to in 1999, this was part of a financing arrangement that Lakes had extended to the band to help develop a casino. However, this eventually fell through with Lakes terminating its relationship with the band in 2012 after failing to get a casino off the ground. At this point, the note was essentially written off.
Enter Penn National Gaming. The company and the Jamul Tribe are now seeking to do a $460m bond offering to build the Hollywood Casino Jamul. Proceeds from the offering are going to be used to build a casino and pay back previous investors in the Jamul Tribal Casino project. GDEN's predecessor company is listed as a previous creditor. S&P, which rated the bond offering "B", expects Golden to receive cash proceeds of no less than $24 million, which will likely be distributed as a special dividend to two-thirds of Golden shareholders (it has 21.6 million fully diluted shares outstanding; however, by agreement Sartini's 33.2% stake will not receive any proceeds, making eligible shares equal to 14.4 million, or, approximately $1.75 per share.)"
​

On 12/10/15, just three days following my article the newswire service publishes this press release detailing essentially just what I had laid out.
The Note had been written down to zero by the Company in 2011. As a result of the sale of the Note, the Company expects to record a gain during the fourth quarter ending December 31, 2015. The Company plans to utilize a portion of its federal net operating loss carryforwards to offset any taxable income related to the gain.
The Company expects the dividend to be declared during the first half of 2016.
Additional Factors

GDEN's first earnings report as a public company showed them earning $0.16 per fully diluted share and that is without the full benefit of the interest expense savings from the refinance.
According to the Las Vegas Review Journal the Las Vegas housing market is finally stable. After years of nauseating ups and downs, the Las Vegas housing market is perfectly normal at last.
A report from the Greater Las Vegas Association of Realtors showed the city further shaking off its decade-long roller-coaster ride, with resale prices holding steady for the fourth straight month and almost exactly pacing the national median.
The median price of existing single-family homes sold in November through the association's Multiple Listing Service was $220,000, unchanged since August, although up 8.9 percent from $202,000 in November 2014.
That local median essentially matched a national median of $219,600.
Gasoline prices have been falling along with crude oil prices and this has the effect of putting more discretionary income in the hands of both residents and tourists.
Based on the above facts and with the current share price at $9.85 as of 12-24-15, a $20 price target within a year is well within reach.
Risks. As with any investment, there are always risks. With only 21.6 million shares outstanding, the stock is very thinly traded and that gives many investors pause. Also the company generates roughly 82% of its revenues with operations in Nevada. If something were to adversely affect Nevada's economy, GDEN shares would probably be hit significantly.
I welcome any comments or feedback on the above article.

 

[brucefan]

Dec 23, 2015
New Year’s Greetings from – Blake Sartini – CEO

By: Blake Sartini – CEO – Golden Entertainment

It’s fitting that 2016 is a leap year.
That’s because Golden Entertainment is ready to take several big leaps in the coming year.
We will be opening our first PT’s Brewing Company location… It’s a huge project for us as we take our tavern operations to the next level.
We’re completely renovating and remodeling the site, on the west side of Las Vegas at 3101 Tenaya Way, and when we open we’ll be able to
produce 3,000 barrels of handcrafted beer every year, including 7 of our own on tap.
PT’s Brewing Company will also produce seasonal craft beers specifically for our other branded taverns: our PT’s Taverns, Sean Patrick’s and
Sierra Gold locations.
Speaking of expansion, we’ll be opening more new taverns in 2016 in the Las Vegas area, including a PT’s Ranch on Durango Drive,
a PT’s Gold in Henderson and another PT’s Gold at a location to be announced soon.
These new properties are our most aggressive expansion yet. And more importantly, they will generate about 100 new jobs.
We’re all excited about this growth as we continue our evolution from a small slot route operator to the biggest distributed gaming operator in Nevada.
All of this comes on the heels, and as a byproduct, of an exciting and successful 2015 – one which began with a transaction that initiated our expansion
into other markets.
In addition, we’ve have had many other proud moments throughout 2015, including watching our new “Golden Edge” slot system evolve and flourish,
launching a new app, joining in a partnership with Uber, and most recently closing out the year by again taking part in the annual KLUC Toy Drive in Las Vegas.
There’s much more than I could possibly mention in one article, so I invite you to check out the other blogs here and articles on our website to see everything
we’ve been up to in the past 12 months.
GOLDEN ENTERTAINMENT – CORPORATE WEBSITE: http://www.goldenent.com/
The best part is that we strongly feel like this is just the beginning for Golden Entertainment.
I’m so proud of my entire team in all three of our dynamic gaming divisions, and their dedication to providing our guests with the very best experience possible,
365 days a year…. And this year – 366.
From all of us at Golden Entertainment, we sincerely thank you for your patronage and hope you have a safe, prosperous and Happy New Year.

REFERENCE LINK:
http://goo.gl/iH6ZAi

 

[brucefan]

held up great during this washout in the market

Buy buy buy !

( for anyone following , when I post a new chart, it updates all the charts in this thread.. The first post now has been changed to show this one )

No idea how that happens

 

[groundhog11]

This looks like a good buy. Solid growth.

 

[brucefan]

Golden Entertainment Closes Acquisition of Montana Distributed Gaming Business

Golden Entertainment, Inc









LAS VEGAS--(BUSINESS WIRE)--



Golden Entertainment, Inc. (GDEN) (“Golden” or the “Company”) today announced it has 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. Golden, through its subsidiary dba Big Sky Entertainment, purchased the assets from C. Lohman Games, Inc., Rocky Mountain Gaming, Inc. and Brandy’s Shoreliner Restaurant, Inc., collectively one of the largest distributed gaming operators in Montana, for total consideration of approximately $20 million, including the issuance of approximately 50,000 shares of Golden’s common stock. The Company funded the cash portion of the acquisition through the use of excess cash and availability under its revolving credit facility. The transaction was previously announced on December 22, 2015.
“Entering the Montana gaming market is an exciting opportunity to expand our disciplined operating strategy to new markets and diversify the geographic reach of our distributed gaming operations,” said Blake L. Sartini, Chief Executive Officer of Golden. “The transaction is aligned with our strategic vision and is expected to be immediately accretive to our operating results. We look forward to working with the local communities where we will operate, continuing to deliver a quality experience to customers and generating returns for shareholders.”
As part of the transaction, the Company entered into strategic relationships with the sellers ensuring operational continuity. The sellers were involved in the installation and operation of gaming and amusement devices, as well as maintaining ATM machines across the state of Montana. The acquisition combines the sellers’ local relationships with Golden’s expertise in distributed gaming, establishing a footprint across Montana.
The Company previously announced plans to continue expanding it’s tavern business in 2016, beginning by adding four Las Vegas tavern locations, including the opening of its first brewery in the first quarter of 2016. In addition to the four previously announced taverns, the Company now expects to add two additional taverns in 2016, including a new Sierra Gold, their flagship tavern brand, at the site of the former Sedona Restaurant & Lounge on West Flamingo Road just east of the 215 Beltway, which is expected to open this summer. The development pipeline remains robust, offering significant upside opportunity to expand through acquisitions of existing taverns and greenfield development of new taverns, along with other opportunities outside of the tavern space.

 

[brucefan]

Earnings March 10th before the open

 

[brucefan]

Lyle Berman Owns 11.2% Stake in Golden Entertainment, Inc. (GDEN) http://people.equilar.com/bio/lyle-berman-pokertek/salary/50745





Lyle Berman recently revealed that they own 11.2% of Golden Entertainment, Inc. (NASDAQ:GDEN) in a Schedule 13D/A disclosure that was filed with the Securities and Exchange Commission on Thursday, February 18th. The investor owns 2,415,476 shares of the stock worth about $24,130,605. The filing is available through the SEC website at this link.

Lyle Berman provided the following explanation of their ownership:

The shares of common stock of Golden subject to this Statement are held by Mr. Berman solely for investment purposes. Although Mr. Berman has not formulated any other definitive plan, he may from time to time acquire, or dispose of, common stock and/or other securities of Golden if and when he deems it appropriate. Mr. Berman may formulate other purposes, plans or proposals relating to any of such securities of Golden to the extent deemed advisable in light of market conditions, investment policies and other factors.
As stated in Item 6, Mr. Berman has entered into certain agreements in connection with the Merger (as such term is defined in Item 6) that have an effect on the control of Golden following the consummation of the Merger. Other than as disclosed in Item 6, Mr. Berman has no current plans or proposals which would relate to or would result in any of the following matters:
(a) The acquisition by any person of additional securities of the Issuer, or the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer or of any of its subsidiaries;
(d) Any change in the present board of directors or management of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend policy of the Issuer;
(f) Any other material change in the Issuer’s business or corporate structure, including but not limited to, if the Issuer is a registered closedend investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940;
(g) Changes in the Issuer’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an interdealer quotation system of a registered national securities association;
(i) A class of equity securities of the Issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act; or
(j) Any action similar to any of those enumerated above.​

Shares of Golden Entertainment, Inc. (NASDAQ:GDEN) opened at 9.99 on Thursday. The stock has a market cap of $216.09 million and a price-to-earnings ratio of 158.57. Golden Entertainment, Inc. has a one year low of $9.86 and a one year high of $10.03. The company has a 50-day moving average of $0.00 and a 200 day moving average of $0.00.

Separately, TheStreet lowered shares of Golden Entertainment from a “buy” rating to a “hold” rating in a report on Wednesday, December 23rd.

Golden Entertainment, Inc, formerly Lakes Entertainment, Inc, is a gaming company. Through its three gaming divisions: Golden Casino Group, PT’s Entertainment Group and Golden Route Operations, it operates approximately 9,250 slot machines and video lottery terminals, as well as approximately 22 table games in Nevada and Maryland across four casino properties, over 48 taverns and approximately 670 route locations.

 

[brucefan]

Golden Entertainment: Just Can't Get No Respect

Feb. 26, 2016 2:29 PM ET|
12 comments |
| About: Golden Entertainment, Inc. (GDEN)by: Dan Stringer




Dan Stringer ⊕Follow (593 followers)

Research analyst, micro-cap, nano-cap, special situations
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Summary

Golden's shares have held up better than most of its peers in the recent market sell-off but have largely ignored two recent corporate developments.
A recent settlement of its $60m note with the Jamul Indian band will provide a substantial one-time dividend payment of between 15 and 18% in 2016.
Golden also announced expansions of both its tavern and route businesses.
With little market reaction to the above, this makes another good entry point for shareholders in Golden.


Golden Entertainment (NASDAQ:GDEN) is a Nevada-based regional gaming company with two main revenue drivers: distributed gaming and casinos. From my recent PRO article, I will include a brief summary of the business:

Distributed gaming incorporates two businesses, its company-owned tavern business and its gaming machine servicing business. These gaming machines, typically video poker, can be located at gas stations, restaurants, convenience stores, grocery stores and bars. They contribute 71% of the company revenues and 64% of EbITDA based on the TTM at June 30, 2015.
GDEN is the market leader in Nevada with roughly 41% market share, servicing 689 locations with a total of 7,699 machines under contract. GDEN essentially owns the machines and then either leases space from these establishments (40% of contracts) or conducts a revenue-sharing agreement with the owners (60%). Either way, it is steady money for the establishment while being a low maintenance, high margin business for GDEN. The larger the establishment, the more potential games can be placed which leverages GDEN's fixed service costs, making this a very scalable business as well. Typically, these contracts are for five to seven year terms, with a renewal rate ranging from 70% to 85%.
Currently, GDEN operates only in the Nevada area but in November 2014, it procured a license for distributed gaming in Montana which has 15,707 licensed games from its most recent disclosures. The license allows GDEN to acquire potential locations or gaming routes and to immediately service them. Management has noted this as a potential growth area but there doesn't appear to be an imminent entrance there. Several other states also have significant distributed gaming devices, notably Illinois (18,940 machines), Louisiana (13,216) and Oregon (11,951) which could be future opportunities for GDEN if they can obtain licensing.
GDEN currently has 48 owned taverns under the PT, Sierra Gold and Sean Patrick brands, with plans to open 4 more in 2016. These locations allow GDEN to leverage the distributed component business on top of the traditional food and beverage revenue streams. With only 10% market share in Clark County, NV, there is a lot of room to acquire or open new locations, which GDEN has a long history of doing.
The Casinos business involves the company ownership of three casinos in Pahrump, Nevada and the Rocky Gap Casino in Maryland. This business line contributes 29% of company revenues and 36% of company EbITDA. The three Pahrump casinos are smaller in size with less amenities than Strip-type properties, but still have decent margins. The Rocky Gap casino, however, is quite a significant property, with a Nicklaus golf course, spa, convention centre, 200 hotel rooms, 627 slot machines and 18 table games. Management has already earmarked $1m to expand its parking lot, pending approval, as well as adding three more table games. There is space to add up to 1,500 more slot machines as well, so there is definite potential to continue to grow Rocky Gap's revenue base. Currently, Rocky Gap contributes about 60% of the revenue of GDEN's casino operations with the Pahrump casinos making up the remaining 40%.
​

Through the recent market turmoil since then, Golden has outperformed the broader market and most of its competitors other than Eldorado Resorts (NASDAQ:ERI):

GDEN 3 Month Price Returns (Daily) data by YCharts
However, the market has largely missed two key transactions by Golden in the last three months that have significantly augmented its value proposition. I had originally identified both as potential catalysts to drive Golden's shares higher; however, with the market mood as it is, they have been completely ignored. However, this lack of reaction has served to enhance the latent value in Golden.
The Jamul Note

As a brief refresher, the Jamul note was a $60m note that Lakes Entertainment (the pre-cursor entity to Golden) had advanced to the Jamul Indian Band back in 1999 to help them develop a casino. This arrangement eventually fell through and the agreement with the band was terminated in 2012 with the note written down by Lakes to zero.
Fortunately, however, they did not waive their legal claim to this note; they had only taken a full valuation allowance against it. In fact, any recovery was specifically excluded from the new Golden management team's compensation in the merger with Lakes should they prove successful in recovering any of it.
Since that time, Penn National Gaming (NASDAQ:PENN) has stepped in and was pushing forward with development of a casino with the band. Slated to open in 2016, this casino on the Jamul band land has finally come to fruition. However, Golden still essentially had a $60m lien against the band.
On December 10, Golden announced that it had sold this note to PENN for $24m in cash. It could be argued that they could have collected the entire amount but a potential legal action would only distract management from their regular job to grow its core business while not guaranteeing any further recovery. I believe they are wise to simply move on and get what they could for the note (they still retain the land option).
With Sartini's shares not eligible to share in this windfall, this amount will add between $1.48 and $1.75 (depending on an IRS tax ruling) in value that will be distributed to the non-Sartini shareholders, a 15 to 18% return on its current share price. The market essentially shrugged at this settlement with the shares barely moving at all. This recovery has added some real cash value to Golden shareholders.
The Montana Acquisition

In my most recent article, I noted on the acquisition front:

I suspect when they have their current business lines stabilized, they will resume some targeted acquisitions, potentially taking advantage of their license in Montana or continuing to grow its Nevada footprint.
​

Evidently, I was too cautious as Golden announced on December 22, 2015, the acquisition of the assets of three Montana-based distributed gaming operators with approximately 1,000 gaming devices under contract. This transaction closed in early February 2016. Golden was able to finance this transaction with $20m from its revolving credit line combined with a nominal issuance of 50,000 shares as well.
This transaction further diversifies Golden's geographic exposure by adding a third state to its operations, after Nevada and Maryland. This acquisition gives Golden a foothold in Montana, giving them about 8% market share, based on state disclosures noted in Golden's original merger presentation. This still gives plenty of room for Golden to grow its market share (it has about 40% in Nevada) while giving them time to learn the infrastructure and integrate it (if possible) with their Nevada operations on a smaller scale. This appears to be a very manageable transaction.
In looking at potential revenues, Montana is not as affluent as Nevada, based on the most recent census data for per capita and household income. It could be argued that people will gamble in good and bad times, but there will likely be less traffic in Montana, reducing the rates chargeable by Golden (the above is a private transaction that I was unable to get further disclosures on). To model this, it is safe to assume roughly 10% less revenues per machine than Golden's existing business (roughly $24,000 per machine in 2015). I will also assume their EbiTDA margins will be a little south of their established level of 14.3% in the first year of operation as they establish the business in Montana.
My best guess is this acquisition is adding about $22m in annual revenue and roughly $3.0m per year in EbITDA once they are up to speed, at a cost of about 6.8x EV/EbITDA. While this is a little rich for a private company purchase in my opinion, it is in line with their current business valuation while bringing some diversification to its operations.
Hidden in the same press release as the acquisition of the Montana routes was that Golden was further expanding their tavern business in Nevada by six locations instead of the four previously communicated. This is a 12.5% increase in its footprint, a fairly significant expansion. However, for some reason, they chose to bury this detail in a press release for another transaction.
For the Jamul Note, I have grossed up the value to reflect the fact the payout will only go out to 63% of current shareholders (ex-Sartini), making it more valuable to retail shareholders than if it went to all parties.
If we model these changes, the underlying value in Golden continues to increase:

Source: Company Filings, Press Releases, Author Assumptions
At its current pro-forma EV of $339.5m, Golden is trading at a 5.8x EV/EbITDA multiple based on the above, including the increase to its revolving credit line. This is a significant discount to its peers' valuations below:

ERI EV to EBITDA (NYSE:TTM) data by YCharts
So What Is the Problem?

Golden is doing a lot right here. The market is not missing it as much as you would think. Despite a significant market sell-off, Golden's shares have held up better than most of its peers have.
However, one strike against Golden is that it only really has one quarter of data as a public company since the merger with Lakes Entertainment. This is not a lot of data for analysts to try to project on; they currently have a real lack of coverage, making it difficult to get true price discovery on or any real share volume increase.
They are still working on their investor relations as well; simply slipping the extra tavern openings into a press release is something they could improve on down the road. They noted this weakness in their communication in their Q3 conference call so I would expect that as they build up some quarterly results, it will be easier to gain a following. This in part helps to drive the opportunity here as well as the valuation discount.
I think the dividend payment (slated to be paid out in the first half of 2016) will gather some interest in the stock as will its next couple of earnings announcements. However, with the market ignoring these most recent moves, the valuation proposition in Golden makes this a fairly compelling entry point.
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Disclosure: I am/we are long GDEN.
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[brucefan]

Golden Entertainment Announces Fourth Quarter and Full Year 2015 Results

– Reports Full Year Combined Adjusted EBITDA up 11.1% –
– Completes Acquisition to Enter the Montana Distributed Gaming Market –


Golden Entertainment, Inc. 22 minutes ago








LAS VEGAS--(BUSINESS WIRE)--
Golden Entertainment, Inc. (GDEN) (“Golden Entertainment” or the “Company”) today announced financial results for the fourth quarter and year ended December 31, 2015.
Key Highlights and Recent Developments

• On July 31, 2015, Sartini Gaming, Inc. (“Sartini Gaming”) merged with a subsidiary of Lakes Entertainment (the “Merger”) 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 (“Jamul Note”) 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.”
Combined Results for the Three and Twelve Months Ended December 31, 2015
Given the Merger, the following illustrates for each segment the net revenues and Adjusted EBITDA for the three months ended December 31, 2015 and the unaudited combined net revenues and combined Adjusted EBITDA for the Company and Sartini Gaming on a combined basis for the twelve months ended December 31, 2015 and the three and twelve months ended December 28, 2014, presented as if the Merger had occurred on the first day of each period presented. These unaudited combined financial results have been prepared for illustrative purposes only and do not purport to be indicative of the results that actually would have resulted had the Merger occurred on the first day of the periods presented, or of the future results of the Company. The unaudited combined results do not reflect any operating efficiencies and associated cost savings that may be achieved as a result of the Merger.

Unaudited Results and Unaudited Combined Results[SUP](1)(2)[/SUP] (In thousands)
			Three Months Ended[SUP](3)[/SUP]		Twelve Months Ended[SUP](4)[/SUP]
			December 31,		December 28,		%		December 31,		December 28,		%
			2015		2014		Change		2015		2014		Change
	Distributed Gaming		$	63,277			$	60,721			4.2	%		$	249,287			$	239,973			3.9	%
	Casinos			23,108				23,024			0.4	%			95,777				95,503			0.3	%
	Corporate and other			50				46			8.7	%			373				155			140.6	%
Combined Net Revenues		$	86,435			$	83,791			3.2	%		$	345,437			$	335,631			2.9	%
	Distributed Gaming		$	8,971			$	8,115			10.5	%		$	36,710			$	33,421			9.8	%
	Casinos			4,787				4,806			-0.4	%			20,044				19,987			0.3	%
	Corporate and other			(4,333	)			(4,143	)		4.6	%			(16,337	)			(17,034	)		-4.1	%
Combined Adjusted EBITDA		$	9,425			$	8,778			7.4	%		$	40,417			$	36,374			11.1	%

(1)		Combined Net Revenues and combined Adjusted EBITDA reflect the operations of Sartini Gaming for periods prior to the Merger combined with the operations of the Company. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentations; however, we have included the combined results because we believe they provide a meaningful comparison for the periods presented.
(2)		The Company’s Distributed Gaming segment involves the installation and operation of gaming devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars and taverns), and the operation of traditional, branded taverns targeting local patrons, primarily in Clark County, Nevada. The Company’s Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada.
(3)		The unaudited combined financial information for the three months ended December 28, 2014 is derived from the Company’s unaudited consolidated statement of operations for such period and Sartini Gaming’s unaudited consolidated statement of operations for the three months ended December 31, 2014.
(4)		The unaudited combined financial information for the years ended December 31, 2015 and December 28, 2014 is derived from the Company’s audited consolidated statements of operations for such periods and Sartini Gaming’s audited consolidated statement of operations for the year ended December 31, 2014 and unaudited consolidated statement of operations for the seven months ended July 31, 2015.

Results for the Three Months Ended December 31, 2015
Net revenues for the three months ended December 31, 2015 were $86.4 million, an increase of 574% compared to the prior year period, due primarily to the Merger. Adjusted EBITDA for the current year quarter was $9.4 million, compared to $0.2 million in the prior year quarter, with the increase being 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. The current year quarter results included the results of operations of Sartini Gaming for the full quarter. During the current year quarter, the Company incurred approximately $0.9 million in Merger expenses and recognized a gain on recovery of impaired notes receivable of approximately $23.6 million. The results for the prior year quarter included approximately $0.5 million in Merger expenses and a gain on sale of cost method investment of $1.4 million.
Results for the Twelve Months Ended December 31, 2015
Net revenues for the twelve months ended December 31, 2015 were $177.0 million, an increase of 221% from the prior year period, due primarily to the Merger. Adjusted EBITDA for the current year period was $18.3 million, compared to $1.4 million in the prior year period, with the increase being due primarily to the Merger.
For the twelve months ended December 31, 2015, net income was $24.5 million, or $1.43 per diluted share, compared to a net loss of $(24.8) million, or $(1.86) per diluted share, in the prior year period. The Company has reported the operating results of Sartini Gaming in the consolidated statements of operations for the period from August 1, 2015 through December 31, 2015. During the current year period, the Company incurred approximately $11.5 million in Merger expenses, recognized a gain on recovery of impaired notes receivable of approximately $23.6 million, and had an income tax benefit of $10.0 million. The results for the prior year period included approximately $0.5 million in Merger expenses and were impacted by impairments and other losses of $21.0 million related to an investment in Rock Ohio Ventures, a $2.5 million charge related to an arbitration award and a $2.4 million gain on sale of a cost method investment.
Balance Sheet, Liquidity and Capital Expenditures
As of December 31, 2015, the Company had cash and cash equivalents of $69.2 million, which included approximately $23.6 million in net proceeds related to the sale of the Jamul Note. Pursuant to the terms of the merger agreement relating to the Merger and subject to applicable law, the proceeds received from the sale of the Jamul Note, net of related costs, will be distributed in a cash dividend to the Company’s shareholders that hold shares as of the record date for such dividend (other than shareholders that have waived their right to receive such dividend). Under the terms of the merger agreement for the Merger, Sartini Gaming’s former sole shareholder, for itself and any related party transferees of its shares (which total approximately 8.0 million shares in the aggregate), waived their right to receive such dividend with respect to their shares, except for a potential tax distribution, if any, unless their shares are sold to an unaffiliated third party prior to the record date for any such dividend. Also in connection with the Merger, holders of an additional approximately 0.5 million shares waived their right to receive such dividend, unless such shares are sold to an unaffiliated third party prior to the record date for any such dividend. The Company anticipates that the net proceeds received from the sale of the Jamul Note will be distributed to shareholders during the summer of 2016. The record date for such dividend will follow the Board of Directors’ declaration of any such dividend and will be announced at such time.
As of December 31, 2015, total debt outstanding of $148.6 million included a $118.5 million senior secured term loan and $25.0 million drawn under the Company’s $40.0 million senior secured revolving credit facility. The Company’s senior secured term loan and revolving credit facilities mature in July 2020. As of December 31, 2015, the weighted average effective interest rate on outstanding borrowings under these credit facilities was approximately 3.2%. In December 2015, the Company entered into agreements to acquire 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, including the issuance of 50,252 shares of the Company’s common stock. The Company is required to pay $2.0 million of the total purchase price in cash in four quarterly installments beginning in September 2017, subject to certain potential adjustments. The transaction closed on January 29, 2016 and the Company funded the cash portion of the purchase price paid at closing using excess cash and $15.0 million in borrowings under the Company’s senior secured revolving credit facility.
Investor Conference Call and Webcast
The Company will host a webcast and conference call at 5:00 p.m. Eastern Time on March 9, 2016, to discuss fourth quarter 2015 results. The number to call is 1-888-378-0320 (domestic) or 1-719-457-2085 (international). A live webcast will be available in the Investors section of the Company’s website (www.goldenent.com). A replay of the conference call will be available through March 16, 2016, by dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and entering the passcode 9357450.