Golden Nugget Online Gaming, Inc. Reports Financial Results for the First Quarter

- Record first quarter revenue, up 54% over the prior year

- Successfully launched online casino and online sportsbook in Michigan

- Secured market access in Colorado and Iowa

First Quarter Highlights

• Revenue was $26.7 million, representing an increase of 54.2%, compared to $17.3 million during the first quarter of 2020.


• Net income was $69.6 million after gains on warrant derivatives liabilities of $81.1 million, a gain on the tax receivable agreement liability of $1.3 million and debt extinguishment expenses of $2.2 million.


• Adjusted EBITDA was $(3.5) million compared to Adjusted EBITDA of $5.9 million for the first quarter of 2020.


• The previous full-year revenue outlook range of $130 million to $145 million is maintained for 2021.

Revenues for the three months ended March 31, 2021, totaled $26.7 million, as compared to $17.3 million for the three months ended March 31, 2020.  Net income was $69.6 million, compared to net income of $4.2 million in the prior year comparable period.  Adjusted EBITDA, as defined below, for the three months ended March 31, 2021 was $(3.5) million compared to $5.9 million last year.  Results for the first quarter of 2021 reflect non-cash gains on warrant derivative liabilities of $81.1 million and a non-cash gain on our tax receivable agreement liability of $1.3 million.  All of our 10,541,667 public warrants were exercised or redeemed during the quarter.  Additionally, first quarter results also reflect interest expense associated with the term loan credit agreement entered into on April 28, 2020.  The Company's results also reflect debt extinguishment costs of $2.2 million including the accelerated amortization of deferred loan costs and debt premium totaling $0.6 million associated with the early repayment of $10.6 million of the term loan during the three months ended March 31, 2021.  Stock-based compensation expenses were $2.3 million for the three months ended March 31, 2021, when no such costs were recognized in the prior year. 

President, Thomas Winter remarked "We are very pleased to start 2021 with such strong results across both our established and new expansion markets. We believe we are well positioned to capitalize on the significant and fast growing market for iGaming across North America. We expect that 2021 will be a milestone year for the Company as we are on target to be live in 6 states by the end of the year, including all 4 key iGaming states."

Chairman and Chief Executive Officer, Tilman Fertitta added "The future is very bright for Golden Nugget Online Gaming as we achieved another record quarter in revenue and with our newly announced partnerships in Colorado and Iowa, we now have market access in 12 states, representing approximately 29% of the US population."

Business Update

• Successfully completed our first quarter of operations in Michigan.


• Secured market access in Colorado with Maverick's Z Casino for online sports and casino, subject to legislation and regulatory approvals.


• Secured market access in Iowa with the Wild Rose Casino for online sports and casino, subject to legislation and regulatory approvals.


• Completed exercise and redemption of all public warrants for cash proceeds of $110.2 million.


• Started the 1,800 square feet expansion of our live dealer studio in New Jersey


• Named to the shortlist of nominees in 5 categories for the EGR North America Awards 2021: "Casino Operator", "Mobile Operator", "Marketing Campaign", "Customer Service Operator" and "Operator of the Year".

Conference Call Details

A conference call for investors will be held Monday, May 17, 2021, at 3:30 p.m. Central Time to discuss the Company's first quarter results.

To access the conference call, please dial (855) 908-6093 (U.S.) or (639) 716-2098 (International) and reference conference ID 3395274. The conference call will also be webcast live through the Company's Investor Relations website at https://www.gnoginc.com.