HOUSTON, Feb. 8, 2021 /PRNewswire/ -- Golden Nugget
Online Gaming, Inc. (Nasdaq: GNOG) reported preliminary financial
results for the full year 2020. For the twelve months ended
December 31, 2020, GNOG reported the
following unaudited estimates:
- Total Revenue of between $90.0
and 91.0 million compared to $55.4
million in 2019, an increase of approximately 63%,
- Gross Gaming Revenue[1] of between $101.0 and $102.0
million, compared to $60.9
million during the same period in 2019, an increase of
approximately 67%, and
- Operating Income of between $23.0
and $24.0 million (between
$28.0 and $29.0 million before approximately $4.0 to $5.0
million in costs related to the business combination with
Landcadia Holdings II, Inc.), compared to $17.6 in 2019, an increase of approximately 38%
(or approximately 62% before business combination costs).
"We are very pleased with yet another year of rapid and
profitable growth. 2020 was a transformational year for GNOG, which
went public, reached $100 million in
GGR and signed market access agreements in multiple states. We look
forward to replicating our New
Jersey success in many other states and taking advantage of
the strong growth of online gaming in the US." said Tilman J. Fertitta, Chairman and CEO of
GNOG.
On January 22nd, GNOG started its
online operations in Michigan, in
partnership with the Ojibwa casino. After a soft launch in January,
GNOG has been quickly ramping up its online casino marketing
investment, seeing tremendous momentum in player acquisition and
revenue.
Thomas Winter, President of GNOG
added, "We are thrilled to be live in Michigan and are optimistic on the revenue
opportunity. We have just launched our marketing campaign and are
already recording close to $2 million
dollars in daily casino wagers. Michigan is embracing online gaming at a rapid
pace and we anticipate that our business in the Great Lakes State
will exceed our earlier expectations".
GNOG is also pleased to announce that online gaming industry
veteran Kevin Vonasek joined the
Company as its Vice President of Corporate Development. In his new
role, Mr. Vonasek will drive the Company's expansion into new
states and work on a broad range of strategic initiatives including
the addition of exclusive and innovative products. Formerly Chief
Product Officer Americas at NYX Gaming Group and VP of Business
Development Americas at Scientific Games Digital, Mr. Vonasek is
highly regarded in the digital gaming and sports betting
industry.
"Kevin holds the perfect mix of product, commercial and
entrepreneurial expertise that we were looking for. He will play a
key role in our ambitious expansion plans." said Thomas Winter.
Kevin Vonasek said: "For
many years I have held the Golden Nugget team and their
accomplishments in the highest regard. I am very excited to be
joining the team and I look forward to helping GNOG expand its
market leading position across every US iGaming market."
About GNOG
Golden Nugget Online Gaming is a
leading online gaming company that is considered a market leader
by its peers and was first to bring Live Dealer and Live
Casino Floor to the United States online gaming market. GNOG
was the recipient of 15 eGaming Review North America Awards,
including the coveted "Operator of the Year" award in 2017,
2018, 2019 and 2020.
Preliminary Results
The financial results presented in this press release are
preliminary, estimated and unaudited. The preliminary estimated
financial results discussed in the press release reflect
management's estimates based solely upon information available to
management as of the date of this press release and are subject to
change upon the completion of GNOG's financial closing procedures,
final adjustments and other developments, including audit and
review by GNOG's independent registered public accounting firm,
that may arise between now and the time the financial results for
the fourth quarter and year-end are finalized. During the course of
that process, GNOG may identify items that would require it to make
adjustments, which may be material, to the information in the press
release. As a result, the preliminary unaudited financial
information included in the press release is forward-looking
information and is subject to risks and uncertainties, including
possible material adjustments to the preliminary financial
information and the other risks and uncertainties described below
under "Forward-Looking Statements." Accordingly, you should not
place undue reliance on these estimates. The information presented
herein should not be considered a substitute for the financial
information to be filed with the SEC in GNOG's Annual Report on
Form 10-K for the fiscal year ended December
31, 2020 once it becomes available.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, or the Securities Act, and
Section 21E of the Securities Exchange Act of 1934, as amended, or
the Exchange Act, about us and our industry that involve
substantial risks and uncertainties. All statements other than
statements of historical facts contained in this press release,
including statements regarding guidance, our expected results of
operations or financial condition, business strategy and plans,
user growth and engagement, product initiatives, and objectives of
management for future operations, and the impact of COVID-19 on our
business and the economy as a whole, are forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as "anticipate,"
"believe," "contemplate," "continue," "could," "estimate,"
"expect," "expectations," "forecast," "going to," "intend," "may,"
"plan," "potential," "predict," "project," "propose," "should,"
"target," "will," or "would" or the negative of these words or
other similar terms or expressions. We caution you that the
foregoing may not include all of the forward-looking statements
made in this press release.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends,
including the ongoing COVID-19 pandemic that we believe may affect
our business, financial condition, results of operations, and
prospects. These forward-looking statements are not guarantees of
future performance, conditions or results, and involve a number of
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside GNOG's control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements. Important
factors, among others, that may affect actual results or outcomes
include the inability to recognize the anticipated benefits of
GNOG's business combination; costs related to the business
combination; the inability to maintain the listing of GNOG's shares
on Nasdaq; GNOG's ability to manage growth; GNOG's ability to
execute its business plan and meet its projections; potential
litigation involving GNOG; changes in applicable laws or
regulations, particularly with respect to gaming; general economic
and market conditions impacting demand for GNOG's products and
services, and in particular economic and market conditions in the
media / entertainment / gaming / software industry in the markets
in which GNOG's operates; the potential adverse effects of the
ongoing global coronavirus (COVID-19) pandemic on capital markets,
general economic conditions, unemployment and GNOG's liquidity,
operations and personnel, as well as risks, uncertainties, and
other factors described in the section entitled "Risk Factors" in
GNOG's filings with the SEC, which are available on the SEC's
website at www.sec.gov. Additional information will be made
available in other filings that we make from time to time with the
SEC. In addition, any forward-looking statements contained in this
press release are based on assumptions that we believe to be
reasonable as of this date. We undertake no obligation to update
any forward-looking statements to reflect events or circumstances
after the date of this press release or to reflect new information
or the occurrence of unanticipated events, including future
developments related to the COVID-19 pandemic, except as required
by law.
Non-GAAP Financial Measure
Gross gaming revenue is a financial measure that is not
calculated in accordance with generally accepted accounting
principles in the United States of
America ("GAAP"). We define gross gaming revenue as gaming
revenue plus progressive jackpot accruals and promotional credits
wagered. The reconciliation of this non-GAAP financial measure to
its comparable GAAP financial measure is presented in the table
appearing below. The presentation of non-GAAP financial measures is
not intended to be considered in isolation or as a substitute for
any measure prepared in accordance with GAAP. GNOG believes that
presenting non-GAAP financial measures aids in making
period-to-period comparisons and is a meaningful indication of its
actual and estimated operating performance. GNOG's management
utilizes and plans to utilize this non-GAAP financial information
to compare GNOG's operating performance to comparable periods and
to internally prepared projections. GNOG's non-GAAP financial
measures may not be the same as or comparable to similar non-GAAP
measures presented by other companies.
Reconciliation of
Gaming Revenue to Gross Gaming Revenue (Unaudited)
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|
|
|
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For the Year
Ended
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December
31,
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Estimate
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2020
|
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2019
|
Gaming
revenue
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$
79.0
|
|
$ 47.7
|
Progressive jackpot
accruals and promotional credits wagered
|
|
22.0
|
|
13.2
|
Gross
gaming revenue
|
|
$
101.0
|
|
$ 60.9
|
1 Gross Gaming Revenue is a non-GAAP financial
measure. See "Non-GAAP Financial Measure" below for a discussion of
the definition of Gross Gaming Revenue and a reconciliation of
Gross Gaming Revenue to its most comparable GAAP measure.
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SOURCE Golden Nugget Online Gaming, Inc.