Boyd Gaming Reports First-Quarter 2024 Results
- Boyd Gaming reported revenues of $960.5 million for the first quarter of 2024.
- Net income for the same period was $136.5 million.
- Challenges from severe winter weather and competitive pressures affected the business.
- Strong operating margins were maintained through disciplined strategies.
- Continued return of capital to shareholders through share repurchases and dividends.
- Revenues saw a slight decrease compared to the first quarter of 2023.
- Despite challenges, Boyd Gaming remains confident in its ability to deliver value to shareholders.
- Net income decreased from $199.7 million in the first quarter of 2023 to $136.5 million in 2024.
- Total Adjusted EBITDAR dropped from $367.1 million in the first quarter of 2023 to $330.5 million in 2024.
- Adjusted Earnings decreased from $177.4 million in the first quarter of 2023 to $147.3 million in 2024.
Insights
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “After a record 2023, the first quarter of 2024 was a challenging start to the year. Severe winter weather had a significant impact on our Midwest & South segment early in the quarter while we also experienced increased competitive pressures in the Las Vegas Locals market. However, throughout our business, many of the positive trends from the fourth quarter continued into the new year. By focusing on our disciplined operating and marketing strategies, we have been able to maintain strong operating margins. Additionally, our significant cash flows and strong balance sheet allow us to continue returning capital to our shareholders through our ongoing share repurchases and quarterly dividend programs. Looking ahead, we remain confident in our ability to successfully navigate the current environment and deliver value to our shareholders.”
Boyd Gaming reported first-quarter 2024 revenues of
Total Adjusted EBITDAR(1) was
| (1) | See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Operations Review
During the quarter, our Las Vegas Locals segment faced comparisons to record results in the prior year as well as competitive pressures in the Las Vegas Locals market. The
The Online segment matched last year’s strong Adjusted EBITDAR performance, as FanDuel continues as the nation’s leading online sports-betting company. Managed & Other benefitted from strong results at Sky River Casino in northern
Dividend and Share Repurchase Update
Boyd Gaming paid a quarterly cash dividend of
As part of its ongoing share repurchase program, the Company repurchased
Balance Sheet Statistics
As of March 31, 2024, Boyd Gaming had cash on hand of
Conference Call Information
Boyd Gaming will host a conference call to discuss its first-quarter 2024 results today, April 25, at 5:00 p.m. Eastern. The conference call number is (800) 549-8228, passcode 80074. 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/855004866.
A replay will be available by dialing (888) 660-6264 today, April 25, after the conclusion of the call, and continuing through May 2. The passcode for the replay will be 80074#. The replay will also be available at https://investors.boydgaming.com.
| BOYD GAMING CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
| (In thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
| Revenues | ||||||||
| Gaming | $ |
634,131 |
|
$ |
664,308 |
|
||
| Food & beverage |
|
72,639 |
|
|
71,584 |
|
||
| Room |
|
48,947 |
|
|
50,065 |
|
||
| Online |
|
146,170 |
|
|
122,863 |
|
||
| Management fee |
|
22,245 |
|
|
20,030 |
|
||
| Other |
|
36,389 |
|
|
35,116 |
|
||
| Total revenues |
|
960,521 |
|
|
963,966 |
|
||
| Operating costs and expenses | ||||||||
| Gaming |
|
245,686 |
|
|
249,795 |
|
||
| Food & beverage |
|
61,957 |
|
|
59,329 |
|
||
| Room |
|
18,712 |
|
|
17,120 |
|
||
| Online |
|
125,475 |
|
|
102,005 |
|
||
| Other |
|
12,913 |
|
|
11,567 |
|
||
| Selling, general and administrative |
|
108,184 |
|
|
100,319 |
|
||
| Master lease rent expense (a) |
|
27,235 |
|
|
26,828 |
|
||
| Maintenance and utilities |
|
34,744 |
|
|
36,026 |
|
||
| Depreciation and amortization |
|
62,913 |
|
|
61,560 |
|
||
| Corporate expense |
|
29,385 |
|
|
28,655 |
|
||
| Project development, preopening and writedowns |
|
3,021 |
|
|
(18,874 |
) |
||
| Impairment of assets |
|
10,500 |
|
|
4,537 |
|
||
| Other operating items, net |
|
411 |
|
|
220 |
|
||
| Total operating costs and expenses |
|
741,136 |
|
|
679,087 |
|
||
| Operating income |
|
219,385 |
|
|
284,879 |
|
||
| Other expense (income) | ||||||||
| Interest income |
|
(446 |
) |
|
(18,145 |
) |
||
| Interest expense, net of amounts capitalized |
|
42,309 |
|
|
43,866 |
|
||
| Other, net |
|
50 |
|
|
104 |
|
||
| Total other expense, net |
|
41,913 |
|
|
25,825 |
|
||
| Income before income taxes |
|
177,472 |
|
|
259,054 |
|
||
| Income tax provision |
|
(40,999 |
) |
|
(59,323 |
) |
||
| Net income | $ |
136,473 |
|
$ |
199,731 |
|
||
| Basic net income per common share | $ |
1.40 |
|
$ |
1.93 |
|
||
| Weighted average basic shares outstanding |
|
97,434 |
|
|
103,620 |
|
||
| Diluted net income per common share | $ |
1.40 |
|
$ |
1.93 |
|
||
| Weighted average diluted shares outstanding |
|
97,479 |
|
|
103,672 |
|
||
(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 |
||||||||
March 31, |
||||||||
| (In thousands) |
|
2024 |
|
|
|
2023 |
|
|
| Total Revenues by Segment | ||||||||
| Las Vegas Locals | $ |
225,622 |
|
$ |
240,270 |
|
||
|
53,531 |
|
|
56,557 |
|
|||
| Midwest & South |
|
500,766 |
|
|
512,173 |
|
||
| Online |
|
146,170 |
|
|
122,863 |
|
||
| Managed & Other |
|
34,432 |
|
|
32,103 |
|
||
| Total revenues | $ |
960,521 |
|
$ |
963,966 |
|
||
| Adjusted EBITDAR by Segment | ||||||||
| Las Vegas Locals | $ |
110,438 |
|
$ |
126,160 |
|
||
|
17,815 |
|
|
22,367 |
|
|||
| Midwest & South |
|
180,994 |
|
|
198,684 |
|
||
| Online |
|
20,476 |
|
|
20,623 |
|
||
| Managed & Other |
|
24,781 |
|
|
21,551 |
|
||
| Corporate expense, net of share-based compensation expense (a) |
|
(24,018 |
) |
|
(22,239 |
) |
||
| Adjusted EBITDAR |
|
330,486 |
|
|
367,146 |
|
||
| Master lease rent expense (b) |
|
(27,235 |
) |
|
(26,828 |
) |
||
| Adjusted EBITDA |
|
303,251 |
|
|
340,318 |
|
||
| Other operating costs and expenses | ||||||||
| Deferred rent |
|
161 |
|
|
177 |
|
||
| Depreciation and amortization |
|
62,913 |
|
|
61,560 |
|
||
| Share-based compensation expense |
|
6,860 |
|
|
7,819 |
|
||
| Project development, preopening and writedowns |
|
3,021 |
|
|
(18,874 |
) |
||
| Impairment of assets |
|
10,500 |
|
|
4,537 |
|
||
| Other operating items, net |
|
411 |
|
|
220 |
|
||
| Total other operating costs and expenses |
|
83,866 |
|
|
55,439 |
|
||
| Operating income |
|
219,385 |
|
|
284,879 |
|
||
| Other expense (income) | ||||||||
| Interest income |
|
(446 |
) |
|
(18,145 |
) |
||
| Interest expense, net of amounts capitalized |
|
42,309 |
|
|
43,866 |
|
||
| Other, net |
|
50 |
|
|
104 |
|
||
| Total other expense, net |
|
41,913 |
|
|
25,825 |
|
||
| Income before income taxes |
|
177,472 |
|
|
259,054 |
|
||
| Income tax provision |
|
(40,999 |
) |
|
(59,323 |
) |
||
| Net income | $ |
136,473 |
|
$ |
199,731 |
|
||
| (a) Reconciliation of corporate expense: | ||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
| (In thousands) |
|
2024 |
|
|
2023 |
|
||
| Corporate expense as reported on Condensed Consolidated | ||||||||
| Statements of Operations | $ |
29,385 |
|
$ |
28,655 |
|
||
| Corporate share-based compensation expense |
|
(5,367 |
) |
|
(6,416 |
) |
||
| Corporate expense, net, as reported on the above table | $ |
24,018 |
|
$ |
22,239 |
|
||
(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 |
||||||||
March 31, |
||||||||
| (In thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
| Net income | $ |
136,473 |
|
$ |
199,731 |
|
||
| Pretax adjustments: | ||||||||
| Project development, preopening and writedowns |
|
3,021 |
|
|
(18,874 |
) |
||
Impairment of assets |
10,500 |
4,537 |
||||||
| Other operating items, net |
|
411 |
|
|
220 |
|
||
| Interest income (a) |
|
— |
|
|
(14,315 |
) |
||
| Other, net |
|
50 |
|
|
104 |
|
||
| Total adjustments |
|
13,982 |
|
|
(28,328 |
) |
||
| Income tax effect for above adjustments |
|
(3,182 |
) |
|
6,030 |
|
||
| Adjusted earnings | $ |
147,273 |
|
$ |
177,433 |
|
||
| Net income per share, diluted | $ |
1.40 |
|
$ |
1.93 |
|
||
| Pretax adjustments: | ||||||||
| Project development, preopening and writedowns |
|
0.03 |
|
|
(0.18 |
) |
||
| Impairment of assets |
|
0.11 |
|
|
0.04 |
|
||
| Other operating items, net |
|
— |
|
|
— |
|
||
| Interest income (a) |
|
— |
|
|
(0.14 |
) |
||
| Other, net |
|
— |
|
|
— |
|
||
| Total adjustments |
|
0.14 |
|
|
(0.28 |
) |
||
| Income tax effect for above adjustments |
|
(0.03 |
) |
|
0.06 |
|
||
| Adjusted earnings per share, diluted | $ |
1.51 |
|
$ |
1.71 |
|
||
| Weighted average diluted shares outstanding |
|
97,479 |
|
|
103,672 |
|
||
| (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 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425109651/en/
Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com
Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com
Source: Boyd Gaming Corporation
FAQ
What were Boyd Gaming's revenues for the first quarter of 2024?
What was Boyd Gaming's net income for the first quarter of 2024?
Did Boyd Gaming face any challenges during the first quarter of 2024?
How did Boyd Gaming maintain strong operating margins?
How is Boyd Gaming returning capital to shareholders?
Did Boyd Gaming's revenues increase or decrease compared to the first quarter of 2023?
Is Boyd Gaming confident in its ability to deliver value to shareholders?
