Golden Entertainment — Investor Presentation (May 2017)
20 slides from Golden Entertainment's investor presentation, May 10, 2017
Slide 1: Investor Presentation May 2017
Exhibit 99.1 ENTERTAINMENT. CASINOS * DISTRIBUTED GAMING INVESTOR PRESENTATION | way 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934, or the Exchange Act. Forward-looking statements can gener
Slide 3: Investment Highlights
Investment Highlights Market leader in distributed gaming with over 10,000 devices in nearly 1,000 locations Largest branded tavern operator in Nevada with a robust development and acquisition pipeline Capital structure to continue disciplined and accretive acquisition strategy Uniquely positioned w
Slide 4: Business Overview: Casino Operations and Distributed Gaming
Casino Operations Business Overview Distributed Gaming Owns and operates the Rocky Gap Casino Resort in Maryland with 662 gaming devices and 17 table games Amenities include a AAA Four Diamond Award® winning resort with 198 hotel rooms, a conference center and a Jack Nicklaus signature golf course O
Slide 5: History of Growth by Acquisition
Note: Presents strategic growth of Sartini Gaming for periods prior to the merger with Lakes Entertainment, Inc. in July 2015. History of Growth by Acquisition October 2001 – Acquired Southwest Gaming Services, Inc. from Station Casinos May 2002 – Acquired P.T. Gaming, LLC, then Nevada’s largest tav
Slide 6: Leader in Distributed Gaming
We operate gaming devices in restaurants, bars, grocery stores, convenience and liquor stores Leader in Distributed Gaming Advantages of Distributed Gaming Highly Scalable Variable Cost Structure Long-Term Contracted Revenues Low Capital Requirements High Return on Investment Current Market Opportun
Slide 7: Contracted Recurring Revenue
Contract Type by Number of Devices Contracted Recurring Revenue Our gaming devices are primarily placed at third-party locations with multi-year revenue sharing contracts Gaming Devices Allowed per Location Types of contracts: Revenue share: third-party location retains a percentage of the gaming re
Slide 8: Largest Owner of Branded Taverns
Largest Owner of Branded Taverns Golden’s Clark County Tavern Locations - Planned New Locations Property New Build Total Investment ~$1.5M Target Location EBITDA (Gaming and F&B) ~$500K Target Build Multiple ~ 3x Illustrative Tavern Returns We own and operate locals-oriented branded taverns with gam
Slide 9: Our Tavern Customer
Our Tavern Customer Gender Age Gaming Revenue Golden’s active tavern database of over 50,000 customers allows the Company to maximize effectiveness of targeted marketing campaigns Our rated play demonstrates that successful locations are based on our appeal to patrons typically younger than traditio
Slide 10: Nevada Casinos
Nevada Casinos 449 gaming devices, 8 table games including poker, remodeled sports book and 208-seat bingo facility 69 hotel rooms 24-lane bowling center Largest property in the market, located on 40 owned acres with future development opportunities Pahrump Nugget Hotel & Casino(1) Gold Town Casino(
Slide 11: Rocky Gap Casino Resort
Rocky Gap Casino Resort Rocky Gap Casino Resort(1) City / Metro Driving Distance Population Cumberland, MD - WV 8 103,299 Altoona, PA 71 125,593 Johnstown, PA 72 136,411 Morgantown, WV 82 129,709 Pittsburgh, PA 114 2,353,045 Washington, D.C. 126 6,097,684 York - Hanover, PA 131 442,867 Baltimore, MD
Slide 12: Casino Properties
Casino Properties Healthy mix of local, regional and outer-market customer base Gaming rewards programs feature benefits for retail purchases including our restaurants, hotels, golf and spa amenities Sophisticated Rewards Programs Distributed Gaming Our customers seek a casual, upscale environment c
Slide 13: Favorable Las Vegas Market Trends
(1) Source: US Bureau of Labor Statistics, as of December 31, 2016. (2) Source: Greater Las Vegas Association of REALTORS®, as of December 31, 2016. (3) Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages. (4) Source: US Census Bureau. (5) Source: Las Vegas Convention and
Slide 14: Financial Performance
Financial Performance Combined Net Revenue(1) Combined Adjusted EBITDA(1)(2) Golden Entertainment Taverns (1) The Combined Net Revenue and Combined Adjusted EBITDA chart combines the audited consolidated financial information of Golden for the years ended December 31, 2015, December 28, 2014 and Dec
Slide 15: Capitalization
Capitalization Cash and Equivalents Revolver ($50 million) $ 27.0 Interest is L + 275 bps(1), Maturity July 2020 Senior Secured Term Loan 147.0 Interest is L + 275 bps(1), Maturity July 2020 Total Debt As of March 31, 2017 (unaudited; in millions) Other Debt(2) Market Capitalization $ 335.3(3) Well-
Slide 16: Uniquely Positioned
Uniquely Positioned Six additional new taverns under development for 2017 (one opened in March) Robust pipeline of new-build sites for 2018 Smaller players lack scale to compete profitably; individual tavern owners seeking exit strategy Continued consolidation ongoing in Nevada and other jurisdictio
Slide 17: Founded Golden Gaming in 2001 Prior to establishing Golden Gaming, Mr. Sartini served as
Founded Golden Gaming in 2001 Prior to establishing Golden Gaming, Mr. Sartini served as Executive Vice President, Chief Operating Officer and Director of Station Casinos where for 15 years he held various management and executive positions Appointed to the Nevada Gaming Policy Committee in March 20
Slide 18: Investment Highlights
Investment Highlights Market leader in distributed gaming with over 10,000 devices in nearly 1,000 locations Largest branded tavern operator in Nevada with a robust development and acquisition pipeline Capital structure to continue disciplined and accretive acquisition strategy Uniquely positioned w
Slide 19: Appendix A
Appendix A Three Months Ended Twelve Months Ended LTM Ending (2) (Unaudited, in thousands) March 31, 2017 March 31, 2016 December 31, 2016 March 31, 2017 Net Revenues Nevada Distributed Gaming $67,078 $64,552 $258,840 $261,366 Montana Distributed Gaming (1) 15,181 4,032 46,952 58,101 Total Distribut
Slide 20: Appendix A (continued)
Appendix A (continued) Three Months Ended March 31, 2017 (Unaudited, in thousands) Adjusted EBITDA Depreciation/ amortization Other operating expenses (1) Non-operating expenses (2) Income tax benefit Net income (loss) Nevada Distributed Gaming $11,000 $(3,345) $(85) $(41) $- $7,529 Montana Distribu
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