Golden Entertainment — Merger or Acquisition (June 2017)
16 slides from Golden Entertainment's merger presentation, Jun 12, 2017
Slide 1: Investor Presentation June 2017
GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING INVESTOR PRESENTATION JUNE 2017 AMERCIAN CASINO & ENTERTAINMENT PROPERTIES LLC
Slide 2: Forward Looking Statements and Financial Information
Forward Looking Statements and Financial Information GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Forward-Looking Statements This presentation contains forward-looking statements regarding future events and our future results, including statements regarding the proposed acquisition of the outst
Slide 3: Acquisition Highlights
Acquisition Highlights GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Creates a significant Nevada-focused, regional gaming company with pro forma combined 2017E net revenues and EBITDA of $847 million and $180 million, respectively AMERCIAN CASINO & ENTERTAINMENT PROPERTIES LLC STRATOSPHERE AQUA
Slide 4: Increasing Operational Scale
Increasing Operational Scale GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING GOLDEN ENTERTAINMENT AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC GOLDEN ENTERTAINMENT AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC # of Casinos 4 casinos 4 casinos 8 casinos # of Taverns 56 taverns -- 56 taverns # of
Slide 5: Transaction Overview
Transaction Overview GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Golden Entertainment Inc. (“Golden”) to acquire American Casino & Entertainment Properties LLC (“American”) for $850 million Consideration to consist of $781 million cash and $69 million of Golden stock Consideration The price fo
Slide 6: Unique Branded Properties
Unique Branded Properties GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Stratosphere Casino, Hotel and Tower Aquarius Casino Resort (Las Vegas Strip) (Laughlin, NV) Arizona Charlie’s Boulder Arizona Charlie’s Decatur (Las Vegas Locals) (Las Vegas Locals) PAGE 5
Slide 7: Compelling Southern Nevada Casino Presence
Compelling Southern Nevada Casino Presence GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Cross-marketing and other operational synergies Johnnie 95 95 160 95 156 15 Crystal Valley of Fire Dry Lake 167 178 160 564 93 515 15 95 165 164 95 15 95 15 15 95 95 Kelso Indian Springs Moapa V PAHRUMP NUGG
Slide 8: Continued Favorable Las Vegas Trends
Continued Favorable Las Vegas Trends GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Las Vegas Unemployment Rate (1) Las Vegas Population (2) 15.0% 13.5% 2,200 2,156 2,115 12.0% 2,100 2,069 2,028 1,998 9.0% In thousands 2,000 1,953 1,967 6.0% 4.8% 1,900 3.0% 1,800 0.0% 1,700 Jan-10 Jan-11 Jan-12 F
Slide 9: Portfolio of Owned Casinos and Distributed Gaming
Portfolio of Owned Casinos and Distributed Gaming GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING LTM March 31, 2017A Net Revenues By Segment Current - $419 million Pro Forma - $816 million Casinos 24% Distributed Gaming Casinos Distributed 39% 61% Gaming 76% LTM March 31, 2017A Adjusted EBITDA B
Slide 10: Growing Financial Significance
Growing Financial Significance GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING ($ in millions) Pro Forma Combined Net Revenues $888 $847 $794 $816 $433 $391 $398 $413 $403 $418 $434 $454 2016A LTM 1Q17 2017E 2018E Golden American Pro Forma Combined EBITDA $192 $180 $18 $18 $140 $147 $112 $103 $92
Slide 11: Potential Multiple Expansion
Potential Multiple Expansion GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING EV / 2018E EBITDA Multiples for Nevada-Based Regional Gaming Operators 9.8x 9.5x Average EV / 2018E EBITDA Multiple: 9.2x 9.0x 8.5x 7.2x (1) Red Rock Resorts BOYD GAMING MONARCH CASINO & RESORT, INC. ELDORADO RESORTS GOL
Slide 12: Appendix: Property Overviews
GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING A APPENDIX Property Overviews
Slide 13: Stratosphere Casino, Hotel & Tower
Stratosphere Casino, Hotel & Tower GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Property Highlights Located on ~34 acres (including ~15 acres of excess land) at the north end of the Las Vegas Strip Gaming and entertainment complex that comprises the Stratosphere Tower, a hotel, a casino, and a
Slide 14: Arizona Charlie's Decatur
Arizona Charlie’s Decatur GOLDEN ENTERTAINMENTTM CASINOS DISTRIBUTED GAMING Property Highlights Conveniently located on ~7 acres close to the Strip in the heavily populated interior west Downtown Las Vegas Easily accessible from Route 95, appeals to local customers mostly within a 10-mile radius Loy
Slide 15: Arizona Charlie's Boulder
Arizona Charlie’s Boulder GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING Property Highlights Located on ~24 acres on Boulder Highway in an established residential area East of Las Vegas Accessible from I-515, the most heavily-traveled east/west highway in Las Vegas, appeals to locals and Las Veg
Slide 16: Aquarius Casino Resort
Aquarius Casino Resort GOLDEN ENTERTAINMENT TM CASINOS DISTRIBUTED GAMING Property Highlights Located on ~18 acres next to the Colorado River in Laughlin, Nevada Market leader with largest casino operations and most hotel rooms in Laughlin Attracts a solid base of repeat patrons primarily from CA an
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