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.
Conference Call
Information
Boyd Gaming will host a conference call to discuss its
fourth-quarter and full-year 2023 results today, February 8, at
5:00 p.m. Eastern. The conference call number is (888)
259-6580, passcode 04276776. 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/946881762.
A replay will be available by dialing (877) 674-7070 today,
February 8, after the conclusion of the call, and continuing
through Thursday, February 15. The passcode for the replay will be
276776#. The replay will also be available at
https://investors.boydgaming.com.
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
(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
Reconciliation 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
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208688887/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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