BYD Boyd Gaming Corp

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.

View source 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