Boyd Gaming Reports Third-Quarter 2023 Results
- Boyd Gaming reports solid Q3 2023 results with revenues of $903.2 million, up from $877.3 million in Q3 2022.
- Net income for Q3 2023 was $135.2 million, compared to $157.0 million in the year-ago period.
- Adjusted EBITDAR was $320.8 million in Q3 2023, down from $337.7 million in Q3 2022.
- None.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Our third-quarter results reflect the value of our diversified business model. Continued strength in play from our core customers, strong results from Sky River and online gaming, and growth in our non-gaming business all contributed to a solid performance in the quarter. However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment.”
Smith continued: “During the quarter we continued to leverage our strong free cash flow to pursue a balanced capital allocation strategy that is creating significant value for our shareholders. We demonstrated the growth potential of our property reinvestment initiative, delivering record quarterly results at the Fremont following its recent expansion project. And we remain committed to our capital return program, having returned over
Boyd Gaming reported third-quarter 2023 revenues of
Total Adjusted EBITDAR(1) was
- See footnotes at the end of the release for additional information relative to non-GAAP financial measures
Operations Review
In the Company’s property operating segments, core customer play increased on both a sequential and year-over-year basis, and hotel and food & beverage revenues rose year-over-year. These gains were offset by year-over-year softness in retail play, though business volumes from retail customers have remained consistent since late last year across all segments. Adjusted EBITDAR and margin performances reflected higher labor, utilities and property insurance costs, with Companywide property-level operating margins of
The Company’s Online segment benefitted from strong results from FanDuel’s operations, as well as the addition of Boyd Interactive, acquired by the Company in November 2022. Strong revenue and Adjusted EBITDAR growth in our Managed & Other business was driven by management fees from Sky River Casino, which opened in August 2022.
Dividend and Share Repurchase Program 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 September 30, 2023, Boyd Gaming had cash on hand of
Conference Call Information
Boyd Gaming will host a conference call to discuss its third-quarter 2023 results today, October 24, at 5:00 p.m. Eastern. The conference call number is (888) 259-6580, passcode 60390005. Please call 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://events.q4inc.com/attendee/946960080.
Following the call’s completion, a replay will be available by dialing (877) 674-7070 on Tuesday, October 24, continuing through Tuesday, October 31. The conference number for the replay will be 390005. The replay will also be available at https://investors.boydgaming.com.
| BOYD GAMING CORPORATION | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands, except per share data) | 2023 |
2022 |
2023 |
2022 |
||||||||||||
| Revenues | ||||||||||||||||
| Gaming | $ |
641,168 |
|
$ |
667,975 |
|
$ |
1,966,205 |
|
$ |
2,020,854 |
|
||||
| Food & beverage |
|
70,986 |
|
|
67,792 |
|
|
212,936 |
|
|
201,834 |
|
||||
| Room |
|
48,720 |
|
|
46,672 |
|
|
148,546 |
|
|
138,985 |
|
||||
| Online |
|
90,288 |
|
|
52,353 |
|
|
298,153 |
|
|
164,203 |
|
||||
| Management fee |
|
17,153 |
|
|
10,159 |
|
|
54,629 |
|
|
10,159 |
|
||||
| Other |
|
34,849 |
|
|
32,312 |
|
|
103,611 |
|
|
96,421 |
|
||||
| Total revenues |
|
903,164 |
|
|
877,263 |
|
|
2,784,080 |
|
|
2,632,456 |
|
||||
| Operating costs and expenses | ||||||||||||||||
| Gaming |
|
251,536 |
|
|
251,814 |
|
|
751,330 |
|
|
756,356 |
|
||||
| Food & beverage |
|
59,672 |
|
|
58,502 |
|
|
177,623 |
|
|
169,892 |
|
||||
| Room |
|
19,180 |
|
|
17,783 |
|
|
54,880 |
|
|
51,058 |
|
||||
| Online |
|
79,080 |
|
|
45,827 |
|
|
252,478 |
|
|
140,715 |
|
||||
| Other |
|
11,549 |
|
|
11,370 |
|
|
34,119 |
|
|
33,984 |
|
||||
| Selling, general and administrative |
|
99,944 |
|
|
92,950 |
|
|
299,333 |
|
|
280,659 |
|
||||
| Master lease rent expense (a) |
|
27,236 |
|
|
26,828 |
|
|
81,163 |
|
|
79,788 |
|
||||
| Maintenance and utilities |
|
41,720 |
|
|
40,789 |
|
|
115,337 |
|
|
108,196 |
|
||||
| Depreciation and amortization |
|
64,797 |
|
|
64,956 |
|
|
188,577 |
|
|
194,191 |
|
||||
| Corporate expense |
|
27,872 |
|
|
26,375 |
|
|
88,232 |
|
|
90,251 |
|
||||
| Project development, preopening and writedowns |
|
2,405 |
|
|
9,645 |
|
|
(11,268 |
) |
|
528 |
|
||||
| Impairment of assets |
|
— |
|
|
5,575 |
|
|
4,537 |
|
|
5,575 |
|
||||
| Other operating items, net |
|
301 |
|
|
(12,610 |
) |
|
959 |
|
|
(12,324 |
) |
||||
| Total operating costs and expenses |
|
685,292 |
|
|
639,804 |
|
|
2,037,300 |
|
|
1,898,869 |
|
||||
| Operating income |
|
217,872 |
|
|
237,459 |
|
|
746,780 |
|
|
733,587 |
|
||||
| Other expense (income) | ||||||||||||||||
| Interest income |
|
(1,585 |
) |
|
(2,073 |
) |
|
(22,445 |
) |
|
(2,976 |
) |
||||
| Interest expense, net of amounts capitalized |
|
42,352 |
|
|
36,001 |
|
|
128,933 |
|
|
110,125 |
|
||||
| Loss on early extinguishments and modifications of debt |
|
— |
|
|
— |
|
|
— |
|
|
19,809 |
|
||||
| Other, net |
|
(30 |
) |
|
170 |
|
|
596 |
|
|
3,667 |
|
||||
| Total other expense, net |
|
40,737 |
|
|
34,098 |
|
|
107,084 |
|
|
130,625 |
|
||||
| Income before income taxes |
|
177,135 |
|
|
203,361 |
|
|
639,696 |
|
|
602,962 |
|
||||
| Income tax provision |
|
(41,902 |
) |
|
(46,359 |
) |
|
(112,278 |
) |
|
(136,269 |
) |
||||
| Net income | $ |
135,233 |
|
$ |
157,002 |
|
$ |
527,418 |
|
$ |
466,693 |
|
||||
| Basic net income per common share | $ |
1.34 |
|
$ |
1.46 |
|
$ |
5.16 |
|
$ |
4.24 |
|
||||
| Weighted average basic shares outstanding |
|
100,804 |
|
|
107,743 |
|
|
102,139 |
|
|
110,002 |
|
||||
| Diluted net income per common share | $ |
1.34 |
|
$ |
1.46 |
|
$ |
5.16 |
|
$ |
4.24 |
|
||||
| Weighted average diluted shares outstanding |
|
100,850 |
|
|
107,840 |
|
|
102,187 |
|
|
110,135 |
|
||||
| (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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||||||
| Total Revenues by Segment | ||||||||||||||||
| Las Vegas Locals | $ |
221,833 |
|
$ |
225,791 |
|
$ |
693,043 |
|
$ |
689,814 |
|
||||
|
49,545 |
|
|
49,507 |
|
|
159,093 |
|
|
152,890 |
|
|||||
| Midwest & South |
|
513,028 |
|
|
527,536 |
|
|
1,544,047 |
|
|
1,579,534 |
|
||||
| Online |
|
90,288 |
|
|
52,353 |
|
|
298,153 |
|
|
164,203 |
|
||||
| Managed & Other |
|
28,470 |
|
|
22,076 |
|
|
89,744 |
|
|
46,015 |
|
||||
| Total revenues | $ |
903,164 |
|
$ |
877,263 |
|
$ |
2,784,080 |
|
$ |
2,632,456 |
|
||||
| Adjusted EBITDAR by Segment | ||||||||||||||||
| Las Vegas Locals | $ |
105,985 |
|
$ |
111,733 |
|
$ |
350,540 |
|
$ |
355,762 |
|
||||
|
15,857 |
|
|
17,704 |
|
|
57,876 |
|
|
58,216 |
|
|||||
| Midwest & South |
|
190,588 |
|
|
211,292 |
|
|
591,105 |
|
|
642,351 |
|
||||
| Online |
|
11,005 |
|
|
6,350 |
|
|
45,028 |
|
|
22,916 |
|
||||
| Managed & Other |
|
18,997 |
|
|
12,553 |
|
|
60,094 |
|
|
17,458 |
|
||||
| Corporate expense, net of share-based compensation expense (a) |
|
(21,611 |
) |
|
(21,934 |
) |
|
(65,314 |
) |
|
(66,296 |
) |
||||
| Adjusted EBITDAR |
|
320,821 |
|
|
337,698 |
|
|
1,039,329 |
|
|
1,030,407 |
|
||||
| Master lease rent expense (b) |
|
(27,236 |
) |
|
(26,828 |
) |
|
(81,163 |
) |
|
(79,788 |
) |
||||
| Adjusted EBITDA |
|
293,585 |
|
|
310,870 |
|
|
958,166 |
|
|
950,619 |
|
||||
| Other operating costs and expenses | ||||||||||||||||
| Deferred rent |
|
177 |
|
|
192 |
|
|
531 |
|
|
576 |
|
||||
| Depreciation and amortization |
|
64,797 |
|
|
64,956 |
|
|
188,577 |
|
|
194,191 |
|
||||
| Share-based compensation expense |
|
8,033 |
|
|
5,653 |
|
|
28,050 |
|
|
28,486 |
|
||||
| Project development, preopening and writedowns |
|
2,405 |
|
|
9,645 |
|
|
(11,268 |
) |
|
528 |
|
||||
| Impairment of assets |
|
— |
|
|
5,575 |
|
|
4,537 |
|
|
5,575 |
|
||||
| Other operating items, net |
|
301 |
|
|
(12,610 |
) |
|
959 |
|
|
(12,324 |
) |
||||
| Total other operating costs and expenses |
|
75,713 |
|
|
73,411 |
|
|
211,386 |
|
|
217,032 |
|
||||
| Operating income |
|
217,872 |
|
|
237,459 |
|
|
746,780 |
|
|
733,587 |
|
||||
| Other expense (income) | ||||||||||||||||
| Interest income |
|
(1,585 |
) |
|
(2,073 |
) |
|
(22,445 |
) |
|
(2,976 |
) |
||||
| Interest expense, net of amounts capitalized |
|
42,352 |
|
|
36,001 |
|
|
128,933 |
|
|
110,125 |
|
||||
| Loss on early extinguishments and modifications of debt |
|
— |
|
|
— |
|
|
— |
|
|
19,809 |
|
||||
| Other, net |
|
(30 |
) |
|
170 |
|
|
596 |
|
|
3,667 |
|
||||
| Total other expense, net |
|
40,737 |
|
|
34,098 |
|
|
107,084 |
|
|
130,625 |
|
||||
| Income before income taxes |
|
177,135 |
|
|
203,361 |
|
|
639,696 |
|
|
602,962 |
|
||||
| Income tax provision |
|
(41,902 |
) |
|
(46,359 |
) |
|
(112,278 |
) |
|
(136,269 |
) |
||||
| Net income | $ |
135,233 |
|
$ |
157,002 |
|
$ |
527,418 |
|
$ |
466,693 |
|
||||
| (a) Reconciliation of corporate expense: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands) | 2023 |
2022 |
2023 |
2022 |
||||||||||||
| Corporate expense as reported on Condensed Consolidated Statements of Operations | $ |
27,872 |
|
$ |
26,375 |
|
$ |
88,232 |
|
$ |
90,251 |
|
||||
| Corporate share-based compensation expense |
|
(6,261 |
) |
|
(4,441 |
) |
|
(22,918 |
) |
|
(23,955 |
) |
||||
| Corporate expense, net, as reported on the above table | $ |
21,611 |
|
$ |
21,934 |
|
$ |
65,314 |
|
$ |
66,296 |
|
||||
| (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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands, except per share data) | 2023 |
2022 |
2023 |
2022 |
||||||||||||
| Net income | $ |
135,233 |
|
$ |
157,002 |
|
$ |
527,418 |
|
$ |
466,693 |
|
||||
| Pretax adjustments: | ||||||||||||||||
| Project development, preopening and writedowns |
|
2,405 |
|
|
9,645 |
|
|
(11,268 |
) |
|
528 |
|
||||
| Impairment of assets |
|
— |
|
|
5,575 |
|
|
4,537 |
|
|
5,575 |
|
||||
| Other operating items, net |
|
301 |
|
|
(12,610 |
) |
|
959 |
|
|
(12,324 |
) |
||||
| Loss on early extinguishments and modifications of debt |
|
— |
|
|
— |
|
|
— |
|
|
19,809 |
|
||||
| Interest income (a) |
|
— |
|
|
— |
|
|
(14,315 |
) |
|
— |
|
||||
| Other, net |
|
(30 |
) |
|
170 |
|
|
596 |
|
|
3,667 |
|
||||
| Total adjustments |
|
2,676 |
|
|
2,780 |
|
|
(19,491 |
) |
|
17,255 |
|
||||
| Income tax effect for above adjustments |
|
(629 |
) |
|
(616 |
) |
|
3,983 |
|
|
(3,712 |
) |
||||
| Impact of tax valuation allowance |
|
— |
|
|
— |
|
|
(35,856 |
) |
|
— |
|
||||
| Adjusted earnings | $ |
137,280 |
|
$ |
159,166 |
|
$ |
476,054 |
|
$ |
480,236 |
|
||||
| Net income per share, diluted | $ |
1.34 |
|
$ |
1.46 |
|
$ |
5.16 |
|
$ |
4.24 |
|
||||
| Pretax adjustments: | ||||||||||||||||
| Project development, preopening and writedowns |
|
0.03 |
|
|
0.09 |
|
|
(0.11 |
) |
|
— |
|
||||
| Impairment of assets |
|
— |
|
|
0.05 |
|
|
0.04 |
|
|
0.05 |
|
||||
| Other operating items, net |
|
— |
|
|
(0.11 |
) |
|
0.01 |
|
|
(0.11 |
) |
||||
| Loss on early extinguishments and modifications of debt |
|
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
||||
| Interest income (a) |
|
— |
|
|
— |
|
|
(0.14 |
) |
|
— |
|
||||
| Other, net |
|
— |
|
|
— |
|
|
0.01 |
|
|
0.03 |
|
||||
| Total adjustments |
|
0.03 |
|
|
0.03 |
|
|
(0.19 |
) |
|
0.15 |
|
||||
| Income tax effect for above adjustments |
|
(0.01 |
) |
|
(0.01 |
) |
|
0.04 |
|
|
(0.03 |
) |
||||
| Impact of tax valuation allowance |
|
— |
|
|
— |
|
|
(0.35 |
) |
|
— |
|
||||
| Adjusted earnings per share, diluted | $ |
1.36 |
|
$ |
1.48 |
|
$ |
4.66 |
|
$ |
4.36 |
|
||||
| Weighted average diluted shares outstanding |
|
100,850 |
|
|
107,840 |
|
|
102,187 |
|
|
110,135 |
|
||||
| (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 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/20231024123348/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
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