Boyd Gaming Corporation (NYSE: BYD) today reported
financial results for the second quarter ended June 30, 2024.
Keith Smith, President and Chief Executive Officer of Boyd
Gaming, said: “Our Company delivered a solid performance in the
second quarter, in-line with our expectations. On a segment basis,
conditions in the Las Vegas Locals market improved from the first
quarter and our Las Vegas Locals business achieved market share
growth in the quarter. We also produced strong growth in our
Downtown Las Vegas operations and stable performance in our Midwest
& South operations. Additionally, we successfully maintained
operating efficiencies throughout the business, with property
margins of nearly 41% during the quarter. In Louisiana, we opened
our new land-based casino at Treasure Chest in early June, with
strong demand since its opening. And we continued our commitment to
returning capital to our shareholders, with nearly $200 million in
share repurchases and dividend distributions in the second quarter.
In all, we are pleased with our second-quarter performance, and
remain confident in our ability to drive long-term growth across
our business.”
Boyd Gaming reported second-quarter 2024 revenues of $967.5
million, up from $917.0 million in the second quarter of 2023,
driven by our Online segment. The Company reported net income of
$139.8 million, or $1.47 per share, for the second quarter of 2024,
compared to $192.5 million, or $1.89 per share, for the year-ago
period. The Company’s second-quarter 2023 results were favorably
impacted by certain one-time tax benefits, with a tax rate of
approximately 5% in the second quarter of 2023 compared to a rate
of approximately 24% in the current quarter.
Total Adjusted EBITDAR(1) was $344.2 million in the second
quarter of 2024 versus $351.4 million in the second quarter of
2023. Adjusted Earnings(1) for the second quarter of 2024 were
$150.0 million, or $1.58 per share, compared to $161.3 million, or
$1.58 per share, for the same period in 2023.
(1)
See footnotes at the end of the release
for additional information relative to non-GAAP financial
measures.
Operations Review
In the Las Vegas Locals segment, while market conditions
improved from the first quarter, the Orleans and Gold Coast
continued to face competitive pressures similar to the first
quarter. Absent these competitive pressures, the Company’s Las
Vegas Locals properties performed in-line with the market. Results
in Downtown Las Vegas strengthened on both a sequential and
year-over-year basis, with growth in Hawaiian visitation and
benefits from our recent property investments. Revenues in the
Midwest & South segment were up slightly from prior year, with
growth in core customer play and stability in retail play.
Additionally, Midwest & South segment results included
contributions from the new land-based casino at Treasure Chest,
which opened in early June.
In the Online segment, both revenue and Adjusted EBITDAR
increased year-over-year at a double-digit pace during the quarter,
as the Company continued to benefit from strong growth in FanDuel’s
sports-betting operations. Growth in Managed & Other was driven
by continued strong performance at Sky River Casino in northern
California.
Dividend and Share Repurchase
Update
Boyd Gaming paid a quarterly cash dividend of $0.17 per share on
July 15, 2024, as previously announced.
As part of its ongoing share repurchase program, the Company
repurchased $176 million in shares of its common stock during the
second quarter of 2024. As of June 30, 2024, the Company had
approximately $545 million remaining under the current share
repurchase authorization.
Balance Sheet Statistics
As of June 30, 2024, Boyd Gaming had cash on hand of $280.8
million, and total debt of $3.0 billion.
Conference Call
Information
Boyd Gaming will host a conference call to discuss its
second-quarter 2024 results today, July 25, at 5:00 p.m. Eastern.
The conference call number is (800) 549-8228, passcode
89194. Please join 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 https://investors.boydgaming.com, or
https://events.q4inc.com/attendee/823687479.
A replay will be available by dialing (888) 660-6264 today, July
25, after the conclusion of the call, and continuing through August
8. The passcode for the replay will be 89194#. The replay will also
be available at https://investors.boydgaming.com.
BOYD GAMING CORPORATION CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(In thousands, except per share data)
2024
2023
2024
2023
Revenues Gaming
$
650,827
$
660,729
$
1,284,958
$
1,325,037
Food & beverage
76,994
70,366
149,633
141,950
Room
52,595
49,761
101,542
99,826
Online
129,930
85,002
276,100
207,865
Management fee
21,252
17,446
43,497
37,476
Other
35,914
33,646
72,303
68,762
Total revenues
967,512
916,950
1,928,033
1,880,916
Operating costs and expenses Gaming
252,067
249,999
497,753
499,794
Food & beverage
63,182
58,622
125,139
117,951
Room
19,342
18,580
38,054
35,700
Online
112,675
71,393
238,150
173,398
Other
13,248
11,003
26,161
22,570
Selling, general and administrative
105,134
99,070
213,318
199,389
Master lease rent expense (a)
27,852
27,099
55,087
53,927
Maintenance and utilities
36,946
37,591
71,690
73,617
Depreciation and amortization
65,677
62,220
128,590
123,780
Corporate expense
31,255
31,705
60,640
60,360
Project development, preopening and writedowns
7,586
5,201
10,607
(13,673
)
Impairment of assets
—
—
10,500
4,537
Other operating items, net
5,442
438
5,853
658
Total operating costs and expenses
740,406
672,921
1,481,542
1,352,008
Operating income
227,106
244,029
446,491
528,908
Other expense (income) Interest income
(403
)
(2,715
)
(849
)
(20,860
)
Interest expense, net of amounts capitalized
42,949
42,715
85,258
86,581
Other, net
50
522
100
626
Total other expense, net
42,596
40,522
84,509
66,347
Income before income taxes
184,510
203,507
361,982
462,561
Income tax provision
(44,665
)
(11,053
)
(85,664
)
(70,376
)
Net income
$
139,845
$
192,454
$
276,318
$
392,185
Basic net income per common share
$
1.47
$
1.89
$
2.87
$
3.81
Weighted average basic shares outstanding
95,042
102,025
96,238
102,818
Diluted net income per common share
$
1.47
$
1.89
$
2.87
$
3.81
Weighted average diluted shares outstanding
95,080
102,071
96,280
102,867
(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
Six Months Ended
June 30,
June 30,
(In thousands)
2024
2023
2024
2023
Total Revenues by Segment Las Vegas Locals
$
225,054
$
230,940
$
450,676
$
471,210
Downtown Las Vegas
57,701
52,991
111,232
109,548
Midwest & South
521,750
518,846
1,022,516
1,031,019
Online
129,930
85,002
276,100
207,865
Managed & Other
33,077
29,171
67,509
61,274
Total revenues
$
967,512
$
916,950
$
1,928,033
$
1,880,916
Adjusted EBITDAR by Segment Las Vegas Locals
$
109,253
$
118,395
$
219,691
$
244,555
Downtown Las Vegas
22,018
19,652
39,833
42,019
Midwest & South
195,455
201,833
376,449
400,517
Online
17,057
13,400
37,533
34,023
Managed & Other
23,140
19,546
47,921
41,097
Corporate expense, net of share-based compensation expense (a)
(22,732
)
(21,464
)
(46,750
)
(43,703
)
Adjusted EBITDAR
344,191
351,362
674,677
718,508
Master lease rent expense (b)
(27,852
)
(27,099
)
(55,087
)
(53,927
)
Adjusted EBITDA
316,339
324,263
619,590
664,581
Other operating costs and expenses Deferred rent
163
177
324
354
Depreciation and amortization
65,677
62,220
128,590
123,780
Share-based compensation expense
10,365
12,198
17,225
20,017
Project development, preopening and writedowns
7,586
5,201
10,607
(13,673
)
Impairment of assets
—
—
10,500
4,537
Other operating items, net
5,442
438
5,853
658
Total other operating costs and expenses
89,233
80,234
173,099
135,673
Operating income
227,106
244,029
446,491
528,908
Other expense (income) Interest income
(403
)
(2,715
)
(849
)
(20,860
)
Interest expense, net of amounts capitalized
42,949
42,715
85,258
86,581
Other, net
50
522
100
626
Total other expense, net
42,596
40,522
84,509
66,347
Income before income taxes
184,510
203,507
361,982
462,561
Income tax provision
(44,665
)
(11,053
)
(85,664
)
(70,376
)
Net income
$
139,845
$
192,454
$
276,318
$
392,185
(a) Reconciliation of corporate expense:
Three Months Ended
Six Months Ended
June 30,
June 30,
(In thousands)
2024
2023
2024
2023
Corporate expense as reported on Condensed Consolidated
Statements of Operations
$
31,255
$
31,705
$
60,640
$
60,360
Corporate share-based compensation expense
(8,523
)
(10,241
)
(13,890
)
(16,657
)
Corporate expense, net, as reported on the above table
$
22,732
$
21,464
$
46,750
$
43,703
(b) Rent expense incurred by those properties subject to a
master lease with a real estate investment trust.
BOYD GAMING
CORPORATION SUPPLEMENTAL INFORMATION Reconciliation
of Net Income to Adjusted Earnings and Net Income Per Share
to Adjusted Earnings Per Share (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(In thousands, except per share data)
2024
2023
2024
2023
Net income
$
139,845
$
192,454
$
276,318
$
392,185
Pretax adjustments: Project development, preopening and
writedowns
7,586
5,201
10,607
(13,673
)
Impairment of assets
—
—
10,500
4,537
Other operating items, net
5,442
438
5,853
658
Interest income (a)
—
—
—
(14,315
)
Other, net
50
522
100
626
Total adjustments
13,078
6,161
27,060
(22,167
)
Income tax effect for above adjustments
(2,946
)
(1,418
)
(6,128
)
4,612
Impact of tax valuation allowance
—
(35,856
)
—
(35,856
)
Adjusted earnings
$
149,977
$
161,341
$
297,250
$
338,774
Net income per share, diluted
$
1.47
$
1.89
$
2.87
$
3.81
Pretax adjustments: Project development, preopening and
writedowns
0.08
0.05
0.11
(0.13
)
Impairment of assets
—
—
0.11
0.04
Other operating items, net
0.06
—
0.06
0.01
Interest income (a)
—
—
—
(0.14
)
Other, net
—
0.01
—
0.01
Total adjustments
0.14
0.06
0.28
(0.21
)
Income tax effect for above adjustments
(0.03
)
(0.02
)
(0.06
)
0.04
Impact of tax valuation allowance
—
(0.35
)
—
(0.35
)
Adjusted earnings per share, diluted
$
1.58
$
1.58
$
3.09
$
3.29
Weighted average diluted shares outstanding
95,080
102,071
96,280
102,867
(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, as applicable,
- 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, as applicable, 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
impacts of COVID-19 on the Company, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240725052204/en/
Financial Contact: Josh Hirsberg (702) 792-7234
joshhirsberg@boydgaming.com Media Contact: David Strow (702)
792-7386 davidstrow@boydgaming.com
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