BYD Boyd Gaming Corp

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Nevada		001-12882		88-0242733
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	BYD	New York Stock Exchange

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Exhibit Number		Description
99.1		Press Release, dated February 8, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Date:	February 8, 2024	Boyd Gaming Corporation
	By:	/s/ Lori M. Nelson
		Lori M. Nelson
		Senior Vice President Financial Operations and Reporting and Chief Accounting Officer

Exhibit 99.1

 

 

 

 

 

BOYD GAMING REPORTS FOURTH-QUARTER, FULL-YEAR 2023 RESULTS

 

LAS VEGAS - FEBRUARY 8, 2024 - Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2023.

 

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “The fourth quarter's strong performance was a fitting conclusion to another record year for our Company. Our fourth-quarter and full-year results were driven by our diversified portfolio, consistent core customer trends and solid returns from our recent property investments. Our management teams continued to demonstrate their ability to efficiently manage the business, achieving property-level operating margins above 40% for both the fourth quarter and full year. And as part of our balanced approach to capital allocation, we returned more than $475 million to our shareholders in 2023 while investing in our properties and maintaining the strongest balance sheet in our Company’s history.  Looking ahead, we remain confident in our ability to continue delivering profitable growth and creating long-term shareholder value.”

 

Fourth-Quarter and Full-Year 2023 Results

Boyd Gaming reported fourth-quarter 2023 revenues of $954.4 million, increasing from $922.9 million in the fourth quarter of 2022. The Company reported net income of $92.6 million, or $0.94 per share, for the fourth quarter of 2023, compared to $172.7 million, or $1.63 per share, for the year-ago period. The Company’s fourth-quarter 2023 results were impacted by $103.3 million in non-cash, pretax goodwill and intangible asset impairment charges.

 

 

 

 

Total Adjusted EBITDAR⁽¹⁾ was $355.5 million in the fourth quarter of 2023 versus $360.1 million in the fourth quarter of 2022. Adjusted Earnings⁽¹⁾ for the fourth quarter of 2023 were $163.8 million, or $1.66 per share, compared to $181.8 million, or $1.72 per share, for the same period in 2022.

 

For the full year 2023, Boyd Gaming reported revenues of $3.7 billion, up from $3.6 billion for the full year 2022. The Company reported net income of $620.0 million, or $6.12 per share, compared to net income of $639.4 million, or $5.87 per share, for the full year 2022.  The Company’s full-year 2023 and 2022 results were impacted by $107.8 million and $40.8 million, respectively, in non-cash, pretax goodwill and intangible asset impairment charges.

 

Total Adjusted EBITDAR for the full year 2023 was $1.4 billion, up slightly from the prior year. Full-year 2023 Adjusted Earnings were $639.9 million, or $6.31 per share, compared to Adjusted Earnings of $662.0 million, or $6.07 per share, for the full year 2022. 

 

(1)

See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

 

Operations Review

During the fourth quarter, year-over-year revenue and Adjusted EBITDAR performances in the Las Vegas Locals segment were consistent with each of the last two quarters. The Downtown Las Vegas segment delivered fourth-quarter revenue growth while Adjusted EBITDAR equaled last year’s record fourth quarter, with particularly strong results at the recently expanded Fremont.  The Midwest & South segment returned to growth during the fourth quarter as both revenue and Adjusted EBITDAR increased over prior year.

 

The Company’s Online segment benefited from the introduction of sports-betting in Ohio in January 2023.  Revenue and Adjusted EBITDAR growth in Managed & Other was driven by strong results at Sky River Casino.

 

 

 

Dividend and Share Repurchase Update

Boyd Gaming paid a quarterly cash dividend of $0.16 per share on January 15, 2024, as previously announced.

 

As part of its ongoing share repurchase program, the Company repurchased $100 million in shares of its common stock during the fourth quarter of 2023. As of December 31, 2023, the Company had approximately $326 million remaining under current share repurchase authorizations.

 

 

Balance Sheet Statistics

As of December 31, 2023, Boyd Gaming had cash on hand of $304.3 million, and total debt of $2.9 billion. 

 

 

BOYD GAMING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(Unaudited)

 

		Three Months Ended								Year Ended
		December 31,								December 31,
(In thousands, except per share data)		2023				2022				2023				2022
Revenues
Gaming		$	647,083			$	653,876			$	2,613,288			$	2,674,730
Food & beverage			75,481				74,145				288,417				275,979
Room			50,571				50,086				199,117				189,071
Online			124,058				89,695				422,211				253,898
Management fee			22,292				16,746				76,921				26,905
Other			34,927				38,373				138,538				134,794
Total revenues			954,412				922,921				3,738,492				3,555,377
Operating costs and expenses
Gaming			248,910				249,474				1,000,240				1,005,830
Food & beverage			63,256				61,555				240,879				231,447
Room			18,610				17,325				73,490				68,383
Online			106,510				73,203				358,988				213,918
Other			12,204				11,642				46,323				45,626
Selling, general and administrative			90,558				93,305				389,891				373,964
Master lease rent expense (a)			27,235				26,828				108,398				106,616
Maintenance and utilities			35,677				35,331				151,014				143,527
Depreciation and amortization			68,203				63,988				256,780				258,179
Corporate expense			27,731				26,756				115,963				117,007
Project development, preopening and writedowns			2,333				(19,464	)			(8,935	)			(18,936	)
Impairment of assets			103,300				35,200				107,837				40,775
Other operating items, net			(5,166	)			141				(4,207	)			(12,183	)
Total operating costs and expenses			799,361				675,284				2,836,661				2,574,153
Operating income			155,051				247,637				901,831				981,224
Other expense (income)
Interest income			(1,441	)			(18,554	)			(23,886	)			(21,530	)
Interest expense, net of amounts capitalized			42,314				41,124				171,247				151,249
Loss on early extinguishments and modifications of debt			—				6				—				19,815
Other, net			967				(783	)			1,563				2,884
Total other expense, net			41,840				21,793				148,924				152,418
Income before income taxes			113,211				225,844				752,907				828,806
Income tax provision			(20,606	)			(53,160	)			(132,884	)			(189,429	)
Net income		$	92,605			$	172,684			$	620,023			$	639,377
Basic net income per common share		$	0.94			$	1.64			$	6.12			$	5.87
Weighted average basic shares outstanding			98,935				105,569				101,325				108,885
Diluted net income per common share		$	0.94			$	1.63			$	6.12			$	5.87
Weighted average diluted shares outstanding			98,979				105,649				101,373				109,004

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(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 

(Unaudited)

 

		Three Months Ended								Year Ended
		December 31,								December 31,
(In thousands)		2023				2022				2023				2022
Total Revenues by Segment
Las Vegas Locals		$	235,075			$	240,916			$	928,118			$	930,730
Downtown Las Vegas			63,314				62,442				222,407				215,332
Midwest & South			497,898				496,532				2,041,945				2,076,066
Online			124,058				89,695				422,211				253,898
Managed & Other			34,067				33,336				123,811				79,351
Total revenues		$	954,412			$	922,921			$	3,738,492			$	3,555,377
Adjusted EBITDAR by Segment
Las Vegas Locals		$	120,431			$	125,881			$	470,971			$	481,643
Downtown Las Vegas			27,631				27,833				85,507				86,049
Midwest & South			190,568				188,431				781,673				830,782
Online			17,309				16,862				62,337				39,778
Managed & Other			24,384				23,523				84,478				40,981
Corporate expense, net of share-based compensation expense (a)			(24,861	)			(22,428	)			(90,175	)			(88,724	)
Adjusted EBITDAR			355,462				360,102				1,394,791				1,390,509
Master lease rent expense (b)			(27,235	)			(26,828	)			(108,398	)			(106,616	)
Adjusted EBITDA			328,227				333,274				1,286,393				1,283,893
Other operating costs and expenses
Deferred rent			177				193				708				768
Depreciation and amortization			68,203				63,988				256,780				258,179
Share-based compensation expense			4,329				5,579				32,379				34,066
Project development, preopening and writedowns			2,333				(19,464	)			(8,935	)			(18,936	)
Impairment of assets			103,300				35,200				107,837				40,775
Other operating items, net			(5,166	)			141				(4,207	)			(12,183	)
Total other operating costs and expenses			173,176				85,637				384,562				302,669
Operating income			155,051				247,637				901,831				981,224
Other expense (income)
Interest income			(1,441	)			(18,554	)			(23,886	)			(21,530	)
Interest expense, net of amounts capitalized			42,314				41,124				171,247				151,249
Loss on early extinguishments and modifications of debt			—				6				—				19,815
Other, net			967				(783	)			1,563				2,884
Total other expense, net			41,840				21,793				148,924				152,418
Income before income taxes			113,211				225,844				752,907				828,806
Income tax provision			(20,606	)			(53,160	)			(132,884	)			(189,429	)
Net income		$	92,605			$	172,684			$	620,023			$	639,377

__________________________________________

(a) Reconciliation of corporate expense:

 

		Three Months Ended								Year Ended
		December 31,								December 31,
(In thousands)		2023				2022				2023				2022
Corporate expense as reported on Condensed Consolidated
Statements of Operations		$	27,731			$	26,756			$	115,963			$	117,007
Corporate share-based compensation expense			(2,870	)			(4,328	)			(25,788	)			(28,283	)
Corporate expense, net, as reported on the above table		$	24,861			$	22,428			$	90,175			$	88,724

 

(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 to Adjusted Earnings

and Net Income Per Share to Adjusted Earnings Per Share 

(Unaudited)

 

		Three Months Ended								Year Ended
		December 31,								December 31,
(In thousands, except per share data)		2023				2022				2023				2022
Net income		$	92,605			$	172,684			$	620,023			$	639,377
Pretax adjustments:
Project development, preopening and writedowns			2,333				(19,464	)			(8,935	)			(18,936	)
Impairment of assets			103,300				35,200				107,837				40,775
Other operating items, net			(5,166	)			141				(4,207	)			(12,183	)
Loss on early extinguishments and modifications of debt			—				6				—				19,815
Interest income (a)			—				(14,700	)			(14,315	)			(14,700	)
Other, net			967				(783	)			1,563				2,884
Total adjustments			101,434				400				81,943				17,655
Income tax effect for above adjustments			(30,214	)			8,673				(26,231	)			4,961
Impact of tax valuation allowance			—				—				(35,856	)			—
Adjusted earnings		$	163,825			$	181,757			$	639,879			$	661,993
Net income per share, diluted		$	0.94			$	1.63			$	6.12			$	5.87
Pretax adjustments:
Project development, preopening and writedowns			0.02				(0.18	)			(0.09	)			(0.17	)
Impairment of assets			1.04				0.33				1.06				0.37
Other operating items, net			(0.05	)			—				(0.04	)			(0.11	)
Loss on early extinguishments and modifications of debt			—				—				—				0.18
Interest income (a)			—				(0.14	)			(0.14	)			(0.14	)
Other, net			0.01				—				0.02				0.03
Total adjustments			1.02				0.01				0.81				0.16
Income tax effect for above adjustments			(0.30	)			0.08				(0.26	)			0.04
Impact of tax valuation allowance			—				—				(0.36	)			—
Adjusted earnings per share, diluted		$	1.66			$	1.72			$	6.31			$	6.07
Weighted average diluted shares outstanding			98,979				105,649				101,373				109,004

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(a) Adjustment to the expected losses for interest on note receivable.

 

 

Non-GAAP Financial Measures

Our financial presentations include the following non-GAAP financial measures:

 

●

EBITDA: earnings before interest, taxes, depreciation and amortization,

●

Adjusted EBITDA: EBITDA adjusted for deferred rent, share-based compensation expense, project development, preopening and writedown expenses, impairments of assets, other operating items, net, gain or loss on early extinguishments and modifications of debt and other items, net,

●

EBITDAR: EBITDA further adjusted for rent expense associated with master leases with a real estate investment trust,

●

Adjusted EBITDAR: Adjusted EBITDA further adjusted for rent expense associated with master leases with a real estate investment trust,

●

Adjusted Earnings: net income before project development, preopening and writedown expenses, impairments of assets, other operating items, net, gain or loss on early extinguishments and modifications of debt, adjustments to the expected losses for interest on note receivable, the release of valuation allowances on deferred tax assets and other non-recurring adjustments, net, and,

●

Adjusted Earnings Per Share (Adjusted EPS): Adjusted Earnings divided by weighted average diluted shares outstanding.

 

Collectively, we refer to these and other non-GAAP financial measures as the “Non-GAAP Measures”. 

 

The Non-GAAP Measures 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 with a more complete understanding of our operating results and facilitates comparisons between us and our competitors. We provide this information to investors to enable them to perform comparisons of our 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 the Non-GAAP Measures provides consistency in our financial reporting. We also 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, their evaluation of total company and individual property performance, in the evaluation of incentive compensation and in the annual budget process. Management also uses Non-GAAP Measures in the evaluation of potential acquisitions and dispositions. We believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company.

 

The use of Non-GAAP Measures has certain limitations. Our presentation of the Non-GAAP Measures may be different from the presentation used by other companies and therefore comparability may be limited. While excluded from certain of the Non-GAAP Measures, depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred. Each of these items should also be considered in the overall evaluation of our results. Additionally, the Non-GAAP Measures 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. We do not provide a reconciliation of forward-looking Non-GAAP Measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.

 

The Non-GAAP Measures are to be used in addition to and in conjunction with results presented in accordance with GAAP. The Non-GAAP 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. The Non-GAAP 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, as well as in our earnings conference call remarks, include statements regarding continued growth in visitation and spending among the Company’s core customers, the Company’s views that it will be able to drive continued revenue and EBITDAR growth throughout its business, the Company’s operating strategy, the Company’s confidence in its long-term growth trajectory, and the Company’s plans with respect to share repurchases and returning capital to shareholders. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement.  Risks also include fluctuations in the Company's operating results; 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; the impact and effects of the local economies in the markets where the Company operates; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; developments in legalization of online gaming, 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; changes in laws and regulations, 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, manager of a tribal casino in northern California, and owner and operator of Boyd Interactive, a B2B and B2C online casino gaming business. The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation's leading sports-betting operator. With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering guests an outstanding entertainment experience and memorable customer service.  Through a long-standing company philosophy called Caring the Boyd Way, Boyd Gaming is committed to advancing Corporate Social Responsibility (CSR) initiatives that positively impact the Company's stakeholders and communities.  For additional Company information and press releases, visit https://investors.boydgaming.com.

 

 

	Financial Contact:		Media Contact:
	Josh Hirsberg		David Strow
	(702) 792-7234		(702) 792-7386
	joshhirsberg@boydgaming.com		davidstrow@boydgaming.com

 

 

v3.24.0.1

Document And Entity Information	Feb. 08, 2024
Document Information [Line Items]
Entity, Registrant Name	Boyd Gaming Corporation
Document, Type	8-K
Document, Period End Date	Feb. 08, 2024
Entity, Incorporation, State or Country Code	NV
Entity, File Number	001-12882
Entity, Tax Identification Number	88-0242733
Entity, Address, Address Line One	6465 South Rainbow Boulevard
Entity, Address, City or Town	Las Vegas
Entity, Address, State or Province	NV
Entity, Address, Postal Zip Code	89118
City Area Code	702
Local Phone Number	792-7200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	BYD
Security Exchange Name	NYSE
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000906553

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