\u201cWe believe GDEN\u2019s new segmentation of distributed gaming and earnings call Q&A responses suggest an openness to divesting the business segment. While a healthy, resilient category for GDEN, we believe management\u2019s focus has turned more toward growing its Nevada tavern business and positioning The Strat for forward growth,\u201d wrote Bain.<\/p>\n
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The analyst added that Accel Entertainment (NASDAQ: ACEL) — a pure-play distributed gaming firm — signaled a willingness to participate in industry consolidation this year. He notes that because of scarcity, distributed gaming assets could be desirable to buyers, and Golden\u2019s related unit could fetch $300 million or more if put out to bid.<\/p>\n<\/div>\n
\u201cTo be clear, we do not have any specific knowledge GDEN is in active discussions to divest its distributed segment – or even if it truly desires to be. However, a third-party distributed divestment could unlock a higher stock multiple for a simple, strong pure-play NV story with significant balance sheet flexibility,\u201d according to Bain.<\/p>\n
Golden Entertainment Capital Return Plans<\/h2>\n In the fourth quarter, Golden repurchased nearly 329K of its shares, bringing the 2022 total to north of 1.1 million. The operator indicated that proceeds from the Rocky Gap sale could be directed, in part, to shareholder rewards.<\/p>\n
Following the sale of Rocky Gap, we believe GDEN will pay down an additional $150M or so of its term loan. With the remaining $70M of after-tax proceeds, we anticipate additional share repurchases and initiating a recurring or special dividend (which we would view as likely an \u2018annual special dividend\u2019),\u201d<\/strong> concluded Bain.<\/p><\/blockquote>\nGolden is also expected to make a decision this year<\/a> on the fate of the currently shuttered Colorado Belle in Laughlin, Nev. A potential sale of that venue would generate more cash for the company\u2019s debt reduction efforts, and possibly support a more extensive return of capital to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"Golden Entertainment (NASDAQ: GDEN) is pledging to spend at least $30 million this year sprucing up the Strat Las Vegas ahead of November\u2019s F1 race and the 2024 Super Bowl. One analyst believes the company could eventually sell its distributed gaming business. Last year, Golden\u2019s capital expenditures reached $50 million, about 20% of which it […]<\/p>\n","protected":false},"author":46,"featured_media":262320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886,1],"tags":[81903,23,81967],"acf":[],"yoast_head":"\n
Golden Entertainment Tees Up Strat Reno, Could Sell A Business<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n