LAS VEGAS, July 27, 2021 /PRNewswire/ -- Boyd Gaming
Corporation (NYSE: BYD) today reported financial
results for the second quarter ended June
30, 2021.
Keith Smith, President and Chief
Executive Officer of Boyd Gaming, said: "Our second-quarter results
reflect the strength of our operating strategy as our streamlined
cost structure, enhanced capabilities and focus on our core
customers all continue to drive strong results throughout our
portfolio. We achieved record results for Adjusted EBITDAR and
operating margins, with Companywide margins exceeding 43% and Las
Vegas Locals margins approaching 57%. During the quarter our
business continued to strengthen, as gaming revenues surpassed 2019
levels. We are encouraged that the strength from the first half of
the year has carried into July, and are confident in our ability to
continue delivering robust levels of EBITDAR and margin
performance. These outstanding results are a tribute to the
hard work of the entire Boyd Gaming team and their shared
dedication to our transformed operating model, which will continue
to create long-term value for our stakeholders."
Boyd Gaming reported second-quarter 2021 revenues of
$893.6 million, up from $209.9 million in the second quarter of 2020. The
Company reported net income of $113.7
million, or $1.00 per share,
for the second quarter of 2021, compared to a net loss of
$108.5 million, or $0.96 per share, for the year-ago period.
The Company's second-quarter 2021 pretax income was impacted by
charges of $65.5 million related to
early extinguishments of debt. Results for the second quarter
of 2020 were impacted by state-mandated closures of all of the
Company's properties nationwide for much of the year-ago
quarter.
Total Adjusted EBITDAR(1) was $385.4 million in the second quarter of 2021, up
from $16.1 million in the second
quarter of 2020. Adjusted Earnings(1) for the second
quarter of 2021 were $175.2 million,
or $1.54 per share, compared to an
Adjusted Loss of $110.5 million, or
$0.98 per share, for the same period
in 2020. Companywide Adjusted EBITDAR margins after corporate
expense were 43.1% in the second quarter of 2021.
(1)
|
See footnotes at
the end of the release for additional information relative to
non-GAAP financial measures.
|
Operations Review(2)
Due to the impact of
state-mandated closures on the Company's operations in the second
quarter of 2020, the Company is providing segment results for the
second quarters of 2021, 2020 and 2019.
Revenues
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
($ amounts in
thousands)
|
|
2021
|
|
2020
|
|
2019
|
|
2021 vs
2020
|
|
2021 vs
2019
|
Las Vegas
Locals
|
|
$
|
236,095
|
|
$
|
48,691
|
|
$
|
220,948
|
|
384.9%
|
|
6.9%
|
Downtown Las
Vegas
|
|
|
38,780
|
|
|
4,664
|
|
|
64,466
|
|
731.5%
|
|
(39.8)%
|
Midwest &
South
|
|
|
618,727
|
|
|
156,504
|
|
|
560,718
|
|
295.3%
|
|
10.3%
|
Total
Revenues
|
|
$
|
893,602
|
|
$
|
209,859
|
|
$
|
846,132
|
|
325.8%
|
|
5.6%
|
|
|
|
Adjusted
EBITDAR
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
($ amounts in
thousands)
|
|
2021
|
|
2020
|
|
2019
|
|
2021 vs
2020
|
|
2021 vs
2019
|
Las Vegas
Locals
|
|
$
|
133,570
|
|
$
|
2,858
|
|
$
|
71,449
|
|
4573.5%
|
|
86.9%
|
Downtown Las
Vegas
|
|
|
15,421
|
|
|
(7,220)
|
|
|
15,902
|
|
N/A
|
|
(3.0)%
|
Midwest &
South
|
|
|
259,992
|
|
|
32,655
|
|
|
165,064
|
|
696.2%
|
|
57.5%
|
Property Adjusted
EBITDAR
|
|
$
|
408,983
|
|
$
|
28,293
|
|
$
|
252,415
|
|
1345.5%
|
|
62.0%
|
|
|
|
Adjusted EBITDAR
Margin
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
Basis Point
Change
|
|
|
2021
|
|
2020
|
|
2019
|
|
2021 vs
2020
|
|
2021 vs
2019
|
Las Vegas
Locals
|
|
|
56.6%
|
|
|
5.9%
|
|
|
32.3%
|
|
5,071
bps
|
|
2,424
bps
|
Downtown Las
Vegas
|
|
|
39.8%
|
|
|
-154.8%
|
|
|
24.7%
|
|
N/A
|
|
1,510
bps
|
Midwest &
South
|
|
|
42.0%
|
|
|
20.9%
|
|
|
29.4%
|
|
2,116
bps
|
|
1,258
bps
|
Property Adjusted
EBITDAR Margin
|
|
|
45.8%
|
|
|
13.5%
|
|
|
29.8%
|
|
3,229
bps
|
|
1,594
bps
|
During the second quarter of 2021, all three operating segments
set all-time records for operating margins, while the Las Vegas
Locals and Midwest & South segments also achieved all-time
records for Adjusted EBITDAR. Of the Company's 26 open properties,
25 grew Adjusted EBITDAR at double-digit rates from the second
quarter of 2019.
(2)
|
The Company's
press release dated July 28, 2020, includes a detailed listing of
property reopening dates in the second quarter of 2020. As of the
date of this press release, two Boyd Gaming properties remain
closed: Eastside Cannery in the Las Vegas Locals segment, and Main
Street Station in the Downtown Las Vegas segment. In the Las
Vegas Locals segment, Eldorado Casino was closed until its sale on
December 10, 2020.
|
Balance Sheet Statistics
As of June 30, 2021, Boyd Gaming had cash on hand of
$334.5 million, and total debt of
$3.39 billion.
During the quarter, the Company retired $1.45 billion in Senior Notes due 2026 using a
combination of proceeds from a $900
million offering of Senior Notes due 2031 and cash on
hand.
Conference Call Information
Boyd Gaming will host a
conference call to discuss its second-quarter 2021 results today,
July 27, at 5:00 p.m. Eastern. The conference call
number is (888) 317-6003, passcode 7324895.
Please call up to 15 minutes in advance to ensure you are connected
prior to the start of the call.
The conference call will also be available live on the Internet
at www.boydgaming.com, or:
https://www.webcaster4.com/Webcast/Page/964/42056.
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, July
27, beginning at 7:00 p.m.
Eastern and continuing through Tuesday,
August 3, at 11:59 p.m.
Eastern. The conference number for the replay will be
10158428. The replay will also be available on the
Internet at www.boydgaming.com.
BOYD GAMING CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months
Ended June 30,
|
|
|
Six Months
Ended June 30,
|
|
(In thousands, except per share
data)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
$
|
727,462
|
|
|
$
|
185,111
|
|
|
$
|
1,345,388
|
|
|
$
|
694,876
|
|
Food &
beverage
|
|
|
57,428
|
|
|
|
10,661
|
|
|
|
101,540
|
|
|
|
100,545
|
|
Room
|
|
|
39,077
|
|
|
|
6,918
|
|
|
|
65,067
|
|
|
|
53,645
|
|
Other
|
|
|
69,635
|
|
|
|
7,169
|
|
|
|
134,914
|
|
|
|
41,318
|
|
Total revenues
|
|
|
893,602
|
|
|
|
209,859
|
|
|
|
1,646,909
|
|
|
|
890,384
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
259,378
|
|
|
|
76,761
|
|
|
|
491,491
|
|
|
|
315,461
|
|
Food &
beverage
|
|
|
46,819
|
|
|
|
16,745
|
|
|
|
85,732
|
|
|
|
106,584
|
|
Room
|
|
|
14,207
|
|
|
|
5,097
|
|
|
|
26,339
|
|
|
|
28,082
|
|
Other
|
|
|
44,487
|
|
|
|
2,169
|
|
|
|
86,394
|
|
|
|
23,616
|
|
Selling, general and
administrative
|
|
|
90,473
|
|
|
|
60,268
|
|
|
|
180,480
|
|
|
|
173,698
|
|
Master lease rent
expense (a)
|
|
|
26,175
|
|
|
|
25,413
|
|
|
|
52,090
|
|
|
|
50,078
|
|
Maintenance and
utilities
|
|
|
31,157
|
|
|
|
21,654
|
|
|
|
59,388
|
|
|
|
54,800
|
|
Depreciation and
amortization
|
|
|
67,279
|
|
|
|
69,213
|
|
|
|
131,746
|
|
|
|
136,178
|
|
Corporate
expense
|
|
|
34,716
|
|
|
|
13,963
|
|
|
|
58,031
|
|
|
|
38,921
|
|
Project development,
preopening and writedowns
|
|
|
1,454
|
|
|
|
3,825
|
|
|
|
2,869
|
|
|
|
7,333
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
171,100
|
|
Other operating items,
net
|
|
|
11,115
|
|
|
|
1,099
|
|
|
|
12,272
|
|
|
|
8,642
|
|
Total operating costs and
expenses
|
|
|
627,260
|
|
|
|
296,207
|
|
|
|
1,186,832
|
|
|
|
1,114,493
|
|
Operating income (loss)
|
|
|
266,342
|
|
|
|
(86,348)
|
|
|
|
460,077
|
|
|
|
(224,109)
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(455)
|
|
|
|
(569)
|
|
|
|
(964)
|
|
|
|
(1,008)
|
|
Interest expense, net
of amounts capitalized
|
|
|
55,131
|
|
|
|
59,208
|
|
|
|
113,021
|
|
|
|
111,053
|
|
Loss on early
extinguishments and modifications of debt
|
|
|
65,475
|
|
|
|
412
|
|
|
|
65,475
|
|
|
|
587
|
|
Other, net
|
|
|
237
|
|
|
|
115
|
|
|
|
2,169
|
|
|
|
(229)
|
|
Total other expense, net
|
|
|
120,388
|
|
|
|
59,166
|
|
|
|
179,701
|
|
|
|
110,403
|
|
Income (loss) before income
taxes
|
|
|
145,954
|
|
|
|
(145,514)
|
|
|
|
280,376
|
|
|
|
(334,512)
|
|
Income tax (provision)
benefit
|
|
|
(32,225)
|
|
|
|
36,970
|
|
|
|
(64,486)
|
|
|
|
78,409
|
|
Net income (loss)
|
|
$
|
113,729
|
|
|
$
|
(108,544)
|
|
|
$
|
215,890
|
|
|
$
|
(256,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per common
share
|
|
$
|
1.00
|
|
|
$
|
(0.96)
|
|
|
$
|
1.90
|
|
|
$
|
(2.26)
|
|
Weighted average basic
shares outstanding
|
|
|
113,779
|
|
|
|
113,257
|
|
|
|
113,703
|
|
|
|
113,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per common
share
|
|
$
|
1.00
|
|
|
$
|
(0.96)
|
|
|
$
|
1.89
|
|
|
$
|
(2.26)
|
|
Weighted average
diluted shares outstanding
|
|
|
114,040
|
|
|
|
113,257
|
|
|
|
114,005
|
|
|
|
113,482
|
|
__________________________________________
|
(a) Rent expense
incurred by those properties subject to a master lease with a real
estate investment trust.
|
BOYD GAMING CORPORATION
|
SUPPLEMENTAL INFORMATION
|
Reconciliation of Adjusted EBITDA to Net Income
(Loss)
|
(Unaudited)
|
|
|
|
Three Months
Ended June 30,
|
|
|
Six Months
Ended June 30,
|
|
(In thousands)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Revenues by Reportable
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
|
$
|
236,095
|
|
|
$
|
48,691
|
|
|
$
|
418,518
|
|
|
$
|
229,455
|
|
Downtown Las
Vegas
|
|
|
38,780
|
|
|
|
4,664
|
|
|
|
60,213
|
|
|
|
58,777
|
|
Midwest &
South
|
|
|
618,727
|
|
|
|
156,504
|
|
|
|
1,168,178
|
|
|
|
602,152
|
|
Total revenues
|
|
$
|
893,602
|
|
|
$
|
209,859
|
|
|
$
|
1,646,909
|
|
|
$
|
890,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAR by Reportable
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
|
$
|
133,570
|
|
|
$
|
2,858
|
|
|
$
|
224,212
|
|
|
$
|
49,620
|
|
Downtown Las
Vegas
|
|
|
15,421
|
|
|
|
(7,220)
|
|
|
|
17,861
|
|
|
|
2,736
|
|
Midwest &
South
|
|
|
259,992
|
|
|
|
32,655
|
|
|
|
478,141
|
|
|
|
138,484
|
|
Property Adjusted EBITDAR
|
|
|
408,983
|
|
|
|
28,293
|
|
|
|
720,214
|
|
|
|
190,840
|
|
Corporate expense, net
of share-based compensation expense (a)
|
|
|
(23,588)
|
|
|
|
(12,171)
|
|
|
|
(42,222)
|
|
|
|
(30,285)
|
|
Adjusted EBITDAR
|
|
|
385,395
|
|
|
|
16,122
|
|
|
|
677,992
|
|
|
|
160,555
|
|
Master lease rent
expense (b)
|
|
|
(26,175)
|
|
|
|
(25,413)
|
|
|
|
(52,090)
|
|
|
|
(50,078)
|
|
Adjusted EBITDA
|
|
|
359,220
|
|
|
|
(9,291)
|
|
|
|
625,902
|
|
|
|
110,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
rent
|
|
|
207
|
|
|
|
227
|
|
|
|
414
|
|
|
|
449
|
|
Depreciation and
amortization
|
|
|
67,279
|
|
|
|
69,213
|
|
|
|
131,746
|
|
|
|
136,178
|
|
Share-based
compensation expense
|
|
|
12,823
|
|
|
|
2,693
|
|
|
|
18,524
|
|
|
|
10,884
|
|
Project development,
preopening and writedowns
|
|
|
1,454
|
|
|
|
3,825
|
|
|
|
2,869
|
|
|
|
7,333
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
171,100
|
|
Other operating items,
net
|
|
|
11,115
|
|
|
|
1,099
|
|
|
|
12,272
|
|
|
|
8,642
|
|
Total other operating costs and
expenses
|
|
|
92,878
|
|
|
|
77,057
|
|
|
|
165,825
|
|
|
|
334,586
|
|
Operating income (loss)
|
|
|
266,342
|
|
|
|
(86,348)
|
|
|
|
460,077
|
|
|
|
(224,109)
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(455)
|
|
|
|
(569)
|
|
|
|
(964)
|
|
|
|
(1,008)
|
|
Interest expense, net
of amounts capitalized
|
|
|
55,131
|
|
|
|
59,208
|
|
|
|
113,021
|
|
|
|
111,053
|
|
Loss on early
extinguishments and modifications of debt
|
|
|
65,475
|
|
|
|
412
|
|
|
|
65,475
|
|
|
|
587
|
|
Other, net
|
|
|
237
|
|
|
|
115
|
|
|
|
2,169
|
|
|
|
(229)
|
|
Total other expense, net
|
|
|
120,388
|
|
|
|
59,166
|
|
|
|
179,701
|
|
|
|
110,403
|
|
Income (loss) before income
taxes
|
|
|
145,954
|
|
|
|
(145,514)
|
|
|
|
280,376
|
|
|
|
(334,512)
|
|
Income tax (provision)
benefit
|
|
|
(32,225)
|
|
|
|
36,970
|
|
|
|
(64,486)
|
|
|
|
78,409
|
|
Net income (loss)
|
|
$
|
113,729
|
|
|
$
|
(108,544)
|
|
|
$
|
215,890
|
|
|
$
|
(256,103)
|
|
|
|
|
|
|
|
|
__________________________________________
|
(a) Reconciliation of
corporate expense:
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
Six Months
Ended June 30,
|
|
(In thousands)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Corporate expense as reported on Condensed
Consolidated
Statements of Operations
|
|
$
|
34,716
|
|
|
$
|
13,963
|
|
|
$
|
58,031
|
|
|
$
|
38,921
|
|
Corporate share-based
compensation expense
|
|
|
(11,128)
|
|
|
|
(1,792)
|
|
|
|
(15,809)
|
|
|
|
(8,636)
|
|
Corporate expense, net, as reported on the above
table
|
|
$
|
23,588
|
|
|
$
|
12,171
|
|
|
$
|
42,222
|
|
|
$
|
30,285
|
|
|
(b) Rent expense
incurred by those properties subject to a master lease with a real
estate investment trust.
|
BOYD GAMING CORPORATION
|
SUPPLEMENTAL INFORMATION
|
Reconciliations of Net Income (Loss) to Adjusted
Earnings (Loss)
|
and Net Income (Loss) Per Share to Adjusted Earnings
(Loss) Per Share
|
(Unaudited)
|
|
|
|
Three Months
Ended June 30,
|
|
|
Six Months
Ended June 30,
|
|
(In thousands, except per share
data)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
|
|
$
|
113,729
|
|
|
$
|
(108,544)
|
|
|
$
|
215,890
|
|
|
$
|
(256,103)
|
|
Pretax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project development,
preopening and writedowns
|
|
|
1,454
|
|
|
|
3,825
|
|
|
|
2,869
|
|
|
|
7,333
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
171,100
|
|
Other operating items,
net
|
|
|
11,115
|
|
|
|
1,099
|
|
|
|
12,272
|
|
|
|
8,642
|
|
Loss on early
extinguishments and modifications of debt
|
|
|
65,475
|
|
|
|
412
|
|
|
|
65,475
|
|
|
|
587
|
|
Other, net
|
|
|
237
|
|
|
|
115
|
|
|
|
2,169
|
|
|
|
(229)
|
|
Total adjustments
|
|
|
78,281
|
|
|
|
5,451
|
|
|
|
82,785
|
|
|
|
187,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect for above
adjustments
|
|
|
(16,848)
|
|
|
|
(623)
|
|
|
|
(17,851)
|
|
|
|
(44,792)
|
|
Impact of tax valuation
allowance
|
|
|
—
|
|
|
|
(6,824)
|
|
|
|
—
|
|
|
|
568
|
|
Adjusted earnings (loss)
|
|
$
|
175,162
|
|
|
$
|
(110,540)
|
|
|
$
|
280,824
|
|
|
$
|
(112,894)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share,
diluted
|
|
$
|
1.00
|
|
|
$
|
(0.96)
|
|
|
$
|
1.89
|
|
|
$
|
(2.26)
|
|
Pretax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project development,
preopening and writedowns
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.06
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.51
|
|
Other operating items,
net
|
|
|
0.10
|
|
|
|
0.01
|
|
|
|
0.11
|
|
|
|
0.08
|
|
Loss on early
extinguishments and modifications of debt
|
|
|
0.58
|
|
|
|
—
|
|
|
|
0.57
|
|
|
|
0.01
|
|
Other, net
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
—
|
|
Total adjustments
|
|
|
0.69
|
|
|
|
0.05
|
|
|
|
0.73
|
|
|
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect for above
adjustments
|
|
|
(0.15)
|
|
|
|
(0.01)
|
|
|
|
(0.16)
|
|
|
|
(0.39)
|
|
Impact of tax valuation
allowance
|
|
|
—
|
|
|
|
(0.06)
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted earnings (loss) per share,
diluted
|
|
$
|
1.54
|
|
|
$
|
(0.98)
|
|
|
$
|
2.46
|
|
|
$
|
(0.99)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding
|
|
|
114,040
|
|
|
|
113,257
|
|
|
|
114,005
|
|
|
|
113,482
|
|
Non-GAAP Financial Measures
Regulation G, "Conditions
for Use of Non-GAAP Financial Measures," prescribes the conditions
for use of non-GAAP financial information in public disclosures. We
believe that our presentations of the following non-GAAP financial
measures are important supplemental measures of operating
performance to investors: earnings before interest, taxes,
depreciation and amortization (EBITDA), Adjusted EBITDA, EBITDAR
(EBITDA further adjusted for rent expense associated with REIT
master leases), Adjusted EBITDAR, Adjusted Earnings and Adjusted
Earnings Per Share (Adjusted EPS). The following discussion defines
these terms and why we believe they are useful measures of our
performance. We do not provide a reconciliation of
forward-looking non-GAAP financial measures to the corresponding
forward-looking GAAP measure due to our inability to project
special charges and certain expenses.
EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR
EBITDA and EBITDAR are commonly used measures of performance in our
industry that we believe, when considered with measures calculated
in accordance with accounting principles generally accepted in
the United States (GAAP), provide
our investors a more complete understanding of our operating
results before the impact of investing and financing transactions
and income taxes and facilitates comparisons between us and our
competitors. Management has historically adjusted EBITDA and
EBITDAR when evaluating operating performance because we believe
that the inclusion or exclusion of certain recurring and
non-recurring items is necessary to provide a full understanding of
our core operating results and as a means to evaluate
period-to-period results. We refer to this measure as Adjusted
EBITDA or Adjusted EBITDAR. We have chosen to provide this
information to investors to enable them to perform comparisons of
past, present and future operating results and as a means to
evaluate the results of core on-going operations. We have
historically reported these measures to our investors and believe
that the continued inclusion of Adjusted EBITDA and Adjusted
EBITDAR provides consistency in our financial reporting. We use
Adjusted EBITDA and Adjusted EBITDAR in this press release because
we believe this information is useful to investors in allowing
greater transparency related to significant measures used by our
management in their financial and operational decision-making.
Adjusted EBITDA and Adjusted EBITDAR are among the more significant
factors in management's internal evaluation of total company and
individual property performance and in the evaluation of incentive
compensation related to property management. Management also uses
Adjusted EBITDA and Adjusted EBITDAR as measures in the evaluation
of potential acquisitions and dispositions. Adjusted EBITDA and
Adjusted EBITDAR are also used by management in the annual budget
process. Externally, we believe these measures continue to be used
by investors in their assessment of our operating performance and
the valuation of our company. Adjusted EBITDA reflects EBITDA
adjusted for deferred rent, share-based compensation expense,
project development, preopening and writedown expenses, impairments
of assets, loss on early extinguishments and modifications of debt
and other operating items, net. Adjusted EBITDAR reflects Adjusted
EBITDA further adjusted for rent expense associated with master
leases with a real estate investment trust.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings
is net income before project development, preopening and writedown
expenses, impairments of assets, other items, net, gain or loss on
early extinguishments and modifications of debt, and other
non-recurring adjustments, net. Adjusted Earnings and Adjusted EPS
are presented solely as supplemental disclosures because management
believes that they are widely used measures of performance in the
gaming industry.
Limitations on the Use of Non-GAAP Measures
The use of
EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted
Earnings, Adjusted EPS and certain other non-GAAP financial
measures has certain limitations. Our presentation of EBITDA,
Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings,
Adjusted EPS or certain other non-GAAP financial measures may be
different from the presentation used by other companies and
therefore comparability may be limited. Depreciation and
amortization expense, interest expense, income taxes and other
items have been and will be incurred and are not reflected in the
presentation of EBITDA, Adjusted EBITDA, EBITDAR and Adjusted
EBITDAR. Each of these items should also be considered in the
overall evaluation of our results. Additionally, EBITDA, Adjusted
EBITDA, EBITDAR and Adjusted EBITDAR do not consider capital
expenditures and other investing activities and should not be
considered as a measure of our liquidity. We compensate for these
limitations by providing the relevant disclosure of our
depreciation and amortization, interest and income taxes, capital
expenditures and other items both in our reconciliations to the
historical GAAP financial measures and in our consolidated
financial statements, all of which should be considered when
evaluating our performance.
EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted
Earnings, Adjusted EPS and certain other non-GAAP financial
measures are used in addition to and in conjunction with results
presented in accordance with GAAP. EBITDA, Adjusted EBITDA,
EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS and
certain other non-GAAP financial measures should not be considered
as an alternative to net income, operating income, or any other
operating performance measure prescribed by GAAP, nor should these
measures be relied upon to the exclusion of GAAP financial
measures. EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR,
Adjusted Earnings, Adjusted EPS and certain other non-GAAP
financial measures reflect additional ways of viewing our
operations that we believe, when viewed with our GAAP results and
the reconciliations to the corresponding historical GAAP financial
measures, provide a more complete understanding of factors and
trends affecting our business than could be obtained absent this
disclosure. Management strongly encourages investors to review our
financial information in its entirety and not to rely on a single
financial measure.
Forward-looking Statements and Company
Information
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Such statements contain words such as "may,"
"will," "might," "expect," "believe," "anticipate," "could,"
"would," "estimate," "continue," "pursue," or the negative thereof
or comparable terminology, and may include (without limitation)
information regarding the Company's expectations, goals or
intentions regarding future performance. In addition,
forward-looking statements in this press release include statements
regarding the impacts of COVID-19 on the Company, economic
conditions, operating strategy, efficient flow, growth initiatives,
visitation, spend-per-visit, status, positive trends continuing
into July, streamlined cost structure and enhanced capabilities
continue to drive strong results, the Company's confidence in
the long-term direction of the Company and its ability to keep
delivering robust levels of EBITDAR and margin performance, the
continued creation of long-term value for the Company's
stakeholders, expectations of the Company's online casino offerings
and construction projects. Forward-looking statements involve
certain risks and uncertainties, and actual results may differ
materially from those discussed in any such statement. These
risks and uncertainties include, but are not limited to: the
ongoing uncertainty about COVID-19, its duration and impact, the
possibility of future closures and length of closures of the
Company's properties, negative perceptions of visiting properties
that have large groups of people, the cost to comply with any
mandated health requirements associated with the virus, the extent
of consumer demand, the negative effects on the Company's
workforce, suppliers, contractors and other partners, as well as
the impact on the customer experience of necessary health and
safety measures implemented at the direction of State and local
governments and gaming regulators. Risks also include
fluctuations in the Company's operating results; the results of
operations of its properties in various markets; the political
climate and its effects on consumer spending and its impact on the
travel industry; the state of the economy and its effect on
consumer spending and the Company's results of operations; the
impact and effects of the local economies in the markets where the
Company has operations; the receipt of legislative, and other
state, federal and local approvals for the Company's development
projects; whether online gaming will become legalized in various
states, the Company's ability to operate online gaming profitably,
or otherwise; consumer reaction to fluctuations in the stock market
and economic factors; the effects of events adversely impacting the
economy or the regions from which the Company draws a significant
percentage of its customers; competition; litigation; financial
community and rating agency perceptions of the Company and its
subsidiaries; changes in laws and regulations, including increased
taxes; the availability and price of energy, weather, regulation,
economic, credit and capital market conditions; and the effects of
war, terrorist or similar activity. Additional factors that could
cause actual results to differ are discussed under the heading
"Risk Factors" and in other sections of the Company's Annual Report
on Form 10-K, its Quarterly Reports on Form 10-Q, and in the
Company's other current and periodic reports filed from time to
time with the SEC. All forward-looking statements in this press
release are made as of the date hereof, based on information
available to the Company as of the date hereof, and the Company
assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Founded in 1975, Boyd Gaming
Corporation (NYSE: BYD) is a leading geographically
diversified operator of 28 gaming entertainment properties in 10
states. The Company is also a strategic partner and 5% equity
owner of FanDuel Group, the nation's leading sports-betting and
iGaming operator. With one of the most experienced leadership
teams in the casino industry, Boyd Gaming prides itself on offering
its guests an outstanding entertainment experience, delivered with
unwavering attention to customer service. For additional
Company information and press releases, visit
www.boydgaming.com.
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SOURCE Boyd Gaming Corporation