Boyd Gaming Reports Fourth-Quarter, Full-Year 2022 Results

Rhea-AI Summary

Boyd Gaming Corporation (NYSE: BYD) reported strong financial results for Q4 and FY 2022, achieving record revenue of $922.9 million for Q4, up from $879.8 million in Q4 2021. Net income for the quarter surged to $172.7 million, or $1.63 per share, compared to $109.8 million, or $0.96 per share, in the previous year. For the full year, revenues reached $3.56 billion, with net income of $639.4 million, or $5.87 per share. Key growth drivers included robust performance in Nevada, online gaming expansions, and the acquisition of Pala Interactive. Boyd Gaming also returned significant capital to shareholders with nearly $600 million in share buybacks and dividends in 2022.

Positive

• Record Q4 revenue of $922.9 million, up 4.9% YoY.
• Net income increased to $172.7 million, reflecting a 57.3% rise YoY.
• Full-year revenues grew to $3.56 billion from $3.37 billion.
• Acquisition of Pala Interactive enhances online strategy.
• Return of nearly $600 million to shareholders in 2022.

Negative

• Midwest & South segment revenue and EBITDAR declined excluding online gaming and management fees.
• Total debt stands at $3.09 billion.

LAS VEGAS--(BUSINESS WIRE)-- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2022.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “The fourth quarter was a strong conclusion to another record year for our Company. We achieved records for revenue and EBITDAR on both a fourth-quarter and full-year basis, as our operating teams remain focused on growing revenues and building loyalty among our core customers while successfully managing expenses. Companywide growth in the fourth quarter was driven by strong performances in our Nevada segments, management fees from Sky River and growth in our online business. During the quarter we also made progress advancing our online strategy, completing our acquisition of Pala Interactive while further expanding our sports-betting partnership with FanDuel. And we continued to return significant capital to our shareholders with nearly $600 million in share repurchases and dividends in 2022. In all, 2022 was another strong year for our Company, and we remain confident in our operating model and our team’s ability to successfully navigate the year ahead.”

Boyd Gaming reported fourth-quarter 2022 revenues of $922.9 million, increasing from $879.8 million in the fourth quarter of 2021. The Company reported net income of $172.7 million, or $1.63 per share, for the fourth quarter of 2022, compared to $109.8 million, or $0.96 per share, for the year-ago period.

Total Adjusted EBITDAR⁽¹⁾ was $360.1 million in the fourth quarter of 2022, up from $347.3 million in the fourth quarter of 2021. Adjusted Earnings⁽¹⁾ for the fourth quarter of 2022 were $181.8 million, or $1.72 per share, compared to $154.3 million, or $1.35 per share, for the same period in 2021.

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

Operations Review

The Company’s Las Vegas Locals segment posted record fourth-quarter revenue and EBITDAR, with operating margins exceeding 52%. Growth in the segment was driven by destination business, non-gaming operations and continued strength in play from core customers. The Downtown Las Vegas segment also achieved a fourth-quarter EBITDAR record, as visitation grew throughout the downtown Las Vegas market and business volumes from our Hawaiian customer segments exceeded pre-pandemic levels. In the Midwest & South segment, revenue and EBITDAR growth was driven by contributions from online gaming and management fees from Sky River Casino. Excluding these items, revenue and EBITDAR were below prior year in the Midwest & South segment.

Full-Year 2022 Results

For the full year 2022, Boyd Gaming reported revenues of $3.56 billion, compared to $3.37 billion for the full year 2021. The Company reported net income of $639.4 million, or $5.87 per share, compared to net income of $463.8 million, or $4.07 per share, for the full year 2021.

Total Adjusted EBITDAR for the full year 2022 was $1.39 billion versus $1.37 billion for the full year 2021. Full-year 2022 Adjusted Earnings were $662.0 million, or $6.07 per share, compared to Adjusted Earnings of $584.2 million, or $5.12 per share, for the full year 2021.

The Company’s full-year 2022 and 2021 pretax income was impacted by charges of $19.8 million and $95.2 million, respectively, related to early extinguishments of debt.

Dividend and Share Repurchase Update

Boyd Gaming paid a quarterly cash dividend of $0.15 per share on January 15, 2023, as previously announced.

As part of its ongoing share repurchase program, the Company repurchased approximately $107 million of its common stock during the fourth quarter of 2022. As of December 31, 2022, the Company had approximately $239 million remaining under current share repurchase authorizations.

Balance Sheet Statistics

As of December 31, 2022, Boyd Gaming had cash on hand of $283.5 million, and total debt of $3.09 billion.

Conference Call Information

Boyd Gaming will host a conference call to discuss its fourth-quarter 2022 results today, February 2, at 5:00 p.m. Eastern. The conference call number is (844) 200-6205, or (833) 950-0062 for Canadian callers and +1 (929) 526-1599 for international callers. The conference call passcode is 194280. 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/399634063.

A replay will be available by dialing (866) 813-9403 (Canada (226) 828-7578, international +44 204 525 0658) on Thursday, February 2 after the conclusion of the call, and continuing through Thursday, February 9. The conference number for the replay is 515522. 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)			2022				2021				2022				2021
Revenues
Gaming		$	653,876			$	685,908			$	2,674,730			$	2,705,523
Food & beverage			74,145				67,404				275,979				230,045
Room			50,086				44,796				189,071				154,180
Other			144,814				81,733				415,597				280,062
Total revenues			922,921				879,841				3,555,377				3,369,810
Operating costs and expenses
Gaming			249,474				258,352				1,005,830				999,528
Food & beverage			61,555				55,943				231,447				192,334
Room			17,325				16,214				68,383				57,627
Other			84,845				54,953				259,544				182,991
Selling, general and administrative			93,305				94,517				373,964				366,156
Master lease rent expense (a)			26,828				26,306				106,616				104,702
Maintenance and utilities			35,331				30,859				143,527				126,115
Depreciation and amortization			63,988				68,455				258,179				267,787
Corporate expense			26,756				31,380				117,007				117,675
Project development, preopening and writedowns			(19,464	)			18,300				(18,936	)			31,815
Impairment of assets			35,200				8,200				40,775				8,200
Other operating items, net			141				(519	)			(12,183	)			14,776
Total operating costs and expenses			675,284				662,960				2,574,153				2,469,706
Operating income			247,637				216,881				981,224				900,104
Other expense (income)
Interest income			(18,554	)			(413	)			(21,530	)			(1,819	)
Interest expense, net of amounts capitalized			41,124				41,250				151,249				199,442
Loss on early extinguishments and modifications of debt			6				29,638				19,815				95,155
Other, net			(783	)			1,099				2,884				3,387
Total other expense, net			21,793				71,574				152,418				296,165
Income before income taxes			225,844				145,307				828,806				603,939
Income tax provision			(53,160	)			(35,525	)			(189,429	)			(140,093	)
Net income		$	172,684			$	109,782			$	639,377			$	463,846
Basic net income per common share		$	1.64			$	0.96			$	5.87			$	4.07
Weighted average basic shares outstanding			105,569				113,957				108,885				113,866
Diluted net income per common share		$	1.63			$	0.96			$	5.87			$	4.07
Weighted average diluted shares outstanding			105,649				114,114				109,004				114,103
(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)			2022				2021				2022				2021
Total Revenues by Reportable Segment
Las Vegas Locals		$	240,916			$	236,272			$	930,730			$	886,054
Downtown Las Vegas			62,442				53,456				215,332				155,806
Midwest & South			619,563				590,113				2,409,315				2,327,950
Total revenues		$	922,921			$	879,841			$	3,555,377			$	3,369,810
Adjusted EBITDAR by Reportable Segment
Las Vegas Locals		$	125,881			$	123,615			$	481,643			$	473,187
Downtown Las Vegas			27,833				20,217				86,049				51,300
Midwest & South			228,816				226,756				911,541				926,955
Property Adjusted EBITDAR			382,530				370,588				1,479,233				1,451,442
Corporate expense, net of share-based compensation expense (a)			(22,428	)			(23,292	)			(88,724	)			(85,457	)
Adjusted EBITDAR			360,102				347,296				1,390,509				1,365,985
Master lease rent expense (b)			(26,828	)			(26,306	)			(106,616	)			(104,702	)
Adjusted EBITDA			333,274				320,990				1,283,893				1,261,283
Other operating costs and expenses
Deferred rent			192				207				768				828
Depreciation and amortization			63,988				68,455				258,179				267,787
Share-based compensation expense			5,580				9,466				34,066				37,773
Project development, preopening and writedowns			(19,464	)			18,300				(18,936	)			31,815
Impairment of assets			35,200				8,200				40,775				8,200
Other operating items, net			141				(519	)			(12,183	)			14,776
Total other operating costs and expenses			85,637				104,109				302,669				361,179
Operating income			247,637				216,881				981,224				900,104
Other expense (income)
Interest income			(18,554	)			(413	)			(21,530	)			(1,819	)
Interest expense, net of amounts capitalized			41,124				41,250				151,249				199,442
Loss on early extinguishments and modifications of debt			6				29,638				19,815				95,155
Other, net			(783	)			1,099				2,884				3,387
Total other expense, net			21,793				71,574				152,418				296,165
Income before income taxes			225,844				145,307				828,806				603,939
Income tax provision			(53,160	)			(35,525	)			(189,429	)			(140,093	)
Net income		$	172,684			$	109,782			$	639,377			$	463,846
(a) Reconciliation of corporate expense:
		Three Months Ended								Year Ended
		December 31,								December 31,
(In thousands)			2022				2021				2022				2021
Corporate expense as reported on Condensed Consolidated Statements of Operations		$	26,756			$	31,380			$	117,007			$	117,675
Corporate share-based compensation expense			(4,328	)			(8,088	)			(28,283	)			(32,218	)
Corporate expense, net, as reported on the above table		$	22,428			$	23,292			$	88,724			$	85,457
(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)			2022				2021				2022				2021
Net income		$	172,684			$	109,782			$	639,377			$	463,846
Pretax adjustments:
Project development, preopening and writedowns			(19,464	)			18,300				(18,936	)			31,815
Impairment of assets			35,200				8,200				40,775				8,200
Other operating items, net			141				(519	)			(12,183	)			14,776
Loss on early extinguishments and modifications of debt			6				29,638				19,815				95,155
Interest income (a)			(14,700	)			—				(14,700	)			—
Other, net			(783	)			1,099				2,884				3,387
Total adjustments			400				56,718				17,655				153,333
Income tax effect for above adjustments			8,673				(12,183	)			4,961				(33,026	)
Adjusted earnings		$	181,757			$	154,317			$	661,993			$	584,153
Net income per share, diluted		$	1.63			$	0.96			$	5.87			$	4.07
Pretax adjustments:
Project development, preopening and writedowns			(0.18	)			0.16				(0.17	)			0.28
Impairment of assets			0.33				0.07				0.37				0.07
Other operating items, net			—				—				(0.11	)			0.13
Loss on early extinguishments and modifications of debt			—				0.26				0.18				0.83
Interest income (a)			(0.14	)			—				(0.14	)			—
Other, net			—				0.01				0.03				0.03
Total adjustments			0.01				0.50				0.16				1.34
Income tax effect for above adjustments			0.08				(0.11	)			0.04				(0.29	)
Adjusted earnings per share, diluted		$	1.72			$	1.35			$	6.07			$	5.12
Weighted average diluted shares outstanding			105,649				114,114				109,004				114,103
(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 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 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, and manager of a tribal casino in northern California. 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 its guests an outstanding entertainment experience, delivered with unwavering attention to customer service. Through a long-standing company philosophy called Caring the Boyd Way, Boyd Gaming is committed to advancing Environmental, Social and Corporate Governance (ESG) 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/20230202005037/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 Q4 2022 financial results?

Boyd Gaming reported Q4 2022 revenues of $922.9 million and net income of $172.7 million, or $1.63 per share.

How much did Boyd Gaming earn in 2022?

In 2022, Boyd Gaming reported a total revenue of $3.56 billion and net income of $639.4 million.

What drove Boyd Gaming's revenue growth in Q4 2022?

The Q4 revenue growth was driven by strong performance in Nevada segments and growth in online gaming.

What capital returns did Boyd Gaming provide to shareholders in 2022?

Boyd Gaming returned nearly $600 million to shareholders through share repurchases and dividends in 2022.

What are Boyd Gaming's future prospects?

Boyd Gaming remains confident in its operating model and growth strategies for the upcoming year.