Golden Entertainment Quarterly Report

Updated: October 14, 2009

January 26, 2011

golden_entertainmentGolden Entertainment CFO Edward Castle reported late Tuesday that quarterly earnings for the San Francisco-based theater chain beat the expectations of the Street in the quarter ending January 21, surpassing earning projections by an estimated $15 million. News of the company’s strong show sent shares of Golden Entertainment (symbol: GLDN) up $4.37 in after-market trading to $87.63 per share. The positive earnings report is particularly impressive when the industry as a whole is suffering nationwide during the current financial climate. Shares of Cinemark, for instance, are down nearly two-thirds over the past 5 years. It may be that traders are more impressed by reports coming out of the Bay Area that Golden is looking to expand their holdings to more than movie theaters. Insiders report that the company has already completed deals to purchase some floundering amusement parks, including the historic Santa Cruz Beach & Boardwalk. CEO Michael Topham is reported to have been attending a series of secretive meetings at the Bellagio in Las Vegas, with the implication that they have plans for The Strip that include more than a few movie screens.

Golden Theaters, with a market capitalization of $140B, was founded in 1851 in San Francisco as a small family entertainment business, attracting miners and their gold. Originally known as Castle Cabaret and renamed Golden Theaters in 1906, the company has remained within the Topham-Castle clan’s control since it’s inception and subsequent move to becoming a publicly held and traded company in 1992. It has been well publicized that Michael Topham has been interested in expanding the company’s hold on American entertainment since taking over for his grandfather, Edward Topham, in 2005. The company has made no formal declaration of their future plans.

Golden Entertainment is traded on the NYSE and has seen a 7.6% increase in share price during the current fiscal year before Tuesdays after-market trading.