BOYD GAMING REPORTS THIRD-QUARTER 2024 RESULTS
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
Results in the Las Vegas Locals segment were impacted by continued competitive pressures at the Orleans and
The Company's Online segment produced strong revenue and Adjusted EBITDAR growth during the third quarter, reflecting increased contributions and one-time benefits from the Company's market-access agreements nationwide. Managed & Other's performance reflected continued strength at
Dividend and Share Repurchase Update
As part of its ongoing share repurchase program, the Company repurchased
Balance Sheet Statistics
As of
Conference Call Information
The conference call will also be available live on the Internet at https://investors.boydgaming.com, or https://app.webinar.net/XzoWeDM1KwJ.
A replay will be available by dialing (888) 660-6345 today,
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
||||
(In thousands, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues |
|
|
|
|
|
|
|
|
Gaming |
|
$ 640,528 |
|
$ 641,168 |
|
$ 1,925,486 |
|
$ 1,966,205 |
Food & beverage |
|
72,728 |
|
70,986 |
|
222,361 |
|
212,936 |
Room |
|
50,226 |
|
48,720 |
|
151,768 |
|
148,546 |
Online |
|
141,312 |
|
90,288 |
|
417,412 |
|
298,153 |
Management fee |
|
21,030 |
|
17,153 |
|
64,527 |
|
54,629 |
Other |
|
35,422 |
|
34,849 |
|
107,725 |
|
103,611 |
Total revenues |
|
961,246 |
|
903,164 |
|
2,889,279 |
|
2,784,080 |
Operating costs and expenses |
|
|
|
|
|
|
|
|
Gaming |
|
252,213 |
|
251,536 |
|
749,966 |
|
751,330 |
Food & beverage |
|
62,713 |
|
59,672 |
|
187,852 |
|
177,623 |
Room |
|
19,674 |
|
19,180 |
|
57,728 |
|
54,880 |
Online |
|
115,119 |
|
79,080 |
|
353,269 |
|
252,478 |
Other |
|
12,171 |
|
11,549 |
|
38,332 |
|
34,119 |
Selling, general and administrative |
|
102,391 |
|
99,944 |
|
315,709 |
|
299,333 |
Master lease rent expense (a) |
|
28,160 |
|
27,236 |
|
83,247 |
|
81,163 |
Maintenance and utilities |
|
40,421 |
|
41,720 |
|
112,111 |
|
115,337 |
Depreciation and amortization |
|
70,344 |
|
64,797 |
|
198,934 |
|
188,577 |
Corporate expense |
|
27,614 |
|
27,872 |
|
88,254 |
|
88,232 |
Project development, preopening and writedowns |
|
11,347 |
|
2,405 |
|
21,954 |
|
(11,268) |
Impairment of assets |
|
— |
|
— |
|
10,500 |
|
4,537 |
Other operating items, net |
|
(906) |
|
301 |
|
4,947 |
|
959 |
Total operating costs and expenses |
|
741,261 |
|
685,292 |
|
2,222,803 |
|
2,037,300 |
Operating income |
|
219,985 |
|
217,872 |
|
666,476 |
|
746,780 |
Other expense (income) |
|
|
|
|
|
|
|
|
Interest income |
|
(392) |
|
(1,585) |
|
(1,241) |
|
(22,445) |
Interest expense, net of amounts capitalized |
|
46,208 |
|
42,352 |
|
131,466 |
|
128,933 |
Other, net |
|
189 |
|
(30) |
|
289 |
|
596 |
Total other expense, net |
|
46,005 |
|
40,737 |
|
130,514 |
|
107,084 |
Income before income taxes |
|
173,980 |
|
177,135 |
|
535,962 |
|
639,696 |
Income tax provision |
|
(42,852) |
|
(41,902) |
|
(128,516) |
|
(112,278) |
Net income |
|
$ 131,128 |
|
$ 135,233 |
|
$ 407,446 |
|
$ 527,418 |
|
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ 1.43 |
|
$ 1.34 |
|
$ 4.30 |
|
$ 5.16 |
Weighted average basic shares outstanding |
|
91,863 |
|
100,804 |
|
94,769 |
|
102,139 |
|
|
|
|
|
|
|
|
|
Diluted net income per common share |
|
$ 1.43 |
|
$ 1.34 |
|
$ 4.30 |
|
$ 5.16 |
Weighted average diluted shares outstanding |
|
91,893 |
|
100,850 |
|
94,807 |
|
102,187 |
|
|
|
|
|
|
|
|
|
(a) Rent expense incurred by those properties subject to a master lease with a real estate investment trust. |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
SUPPLEMENTAL INFORMATION |
||||||||
Reconciliation of Adjusted EBITDA to Net Income |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
||||
(In thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Total Revenues by Segment |
|
|
|
|
|
|
|
|
Las Vegas Locals |
|
$ 211,861 |
|
$ 221,833 |
|
$ 662,537 |
|
$ 693,043 |
|
|
53,300 |
|
49,545 |
|
164,532 |
|
159,093 |
Midwest & South |
|
522,400 |
|
513,028 |
|
1,544,916 |
|
1,544,047 |
Online |
|
141,312 |
|
90,288 |
|
417,412 |
|
298,153 |
Managed & Other |
|
32,373 |
|
28,470 |
|
99,882 |
|
89,744 |
Total revenues |
|
$ 961,246 |
|
$ 903,164 |
|
$ 2,889,279 |
|
$ 2,784,080 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDAR by Segment |
|
|
|
|
|
|
|
|
Las Vegas Locals |
|
$ 96,414 |
|
$ 105,985 |
|
$ 316,105 |
|
$ 350,540 |
|
|
16,511 |
|
15,857 |
|
56,344 |
|
57,876 |
Midwest & South |
|
196,867 |
|
190,588 |
|
573,316 |
|
591,105 |
Online |
|
26,005 |
|
11,005 |
|
63,538 |
|
45,028 |
Managed & Other |
|
22,529 |
|
18,997 |
|
70,450 |
|
60,094 |
Corporate expense, net of share-based compensation expense (a) |
|
(21,694) |
|
(21,611) |
|
(68,444) |
|
(65,314) |
Adjusted EBITDAR |
|
336,632 |
|
320,821 |
|
1,011,309 |
|
1,039,329 |
Master lease rent expense (b) |
|
(28,160) |
|
(27,236) |
|
(83,247) |
|
(81,163) |
Adjusted EBITDA |
|
308,472 |
|
293,585 |
|
928,062 |
|
958,166 |
|
|
|
|
|
|
|
|
|
Other operating costs and expenses |
|
|
|
|
|
|
|
|
Deferred rent |
|
162 |
|
177 |
|
486 |
|
531 |
Depreciation and amortization |
|
70,344 |
|
64,797 |
|
198,934 |
|
188,577 |
Share-based compensation expense |
|
7,540 |
|
8,033 |
|
24,765 |
|
28,050 |
Project development, preopening and writedowns |
|
11,347 |
|
2,405 |
|
21,954 |
|
(11,268) |
Impairment of assets |
|
— |
|
— |
|
10,500 |
|
4,537 |
Other operating items, net |
|
(906) |
|
301 |
|
4,947 |
|
959 |
Total other operating costs and expenses |
|
88,487 |
|
75,713 |
|
261,586 |
|
211,386 |
Operating income |
|
219,985 |
|
217,872 |
|
666,476 |
|
746,780 |
Other expense (income) |
|
|
|
|
|
|
|
|
Interest income |
|
(392) |
|
(1,585) |
|
(1,241) |
|
(22,445) |
Interest expense, net of amounts capitalized |
|
46,208 |
|
42,352 |
|
131,466 |
|
128,933 |
Other, net |
|
189 |
|
(30) |
|
289 |
|
596 |
Total other expense, net |
|
46,005 |
|
40,737 |
|
130,514 |
|
107,084 |
Income before income taxes |
|
173,980 |
|
177,135 |
|
535,962 |
|
639,696 |
Income tax provision |
|
(42,852) |
|
(41,902) |
|
(128,516) |
|
(112,278) |
Net income |
|
$ 131,128 |
|
$ 135,233 |
|
$ 407,446 |
|
$ 527,418 |
|
|
|
|
|
|
|
|
|
(a) Reconciliation of corporate expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
||||
(In thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Corporate expense as reported on Condensed Consolidated |
|
$ 27,614 |
|
$ 27,872 |
|
$ 88,254 |
|
$ 88,232 |
Statements of Operations |
|
|
|
|
|
|
|
|
Corporate share-based compensation expense |
|
(5,920) |
|
(6,261) |
|
(19,810) |
|
(22,918) |
Corporate expense, net, as reported on the above table |
|
$ 21,694 |
|
$ 21,611 |
|
$ 68,444 |
|
$ 65,314 |
|
|
|
|
|
|
|
|
|
(b) Rent expense incurred by those properties subject to a master lease with a real estate investment trust. |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
||||
|
|
|
|
|
||||
(In thousands, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income |
|
$ 131,128 |
|
$ 135,233 |
|
$ 407,446 |
|
$ 527,418 |
Pretax adjustments: |
|
|
|
|
|
|
|
|
Project development, preopening and writedowns |
|
11,347 |
|
2,405 |
|
21,954 |
|
(11,268) |
Impairment of assets |
|
— |
|
— |
|
10,500 |
|
4,537 |
Other operating items, net |
|
(906) |
|
301 |
|
4,947 |
|
959 |
Interest income (a) |
|
— |
|
— |
|
— |
|
(14,315) |
Other, net |
|
189 |
|
(30) |
|
289 |
|
596 |
Total adjustments |
|
10,630 |
|
2,676 |
|
37,690 |
|
(19,491) |
|
|
|
|
|
|
|
|
|
Income tax effect for above adjustments |
|
(2,476) |
|
(629) |
|
(8,604) |
|
3,983 |
Impact of tax valuation allowance |
|
— |
|
— |
|
— |
|
(35,856) |
Adjusted earnings |
|
$ 139,282 |
|
$ 137,280 |
|
$ 436,532 |
|
$ 476,054 |
|
|
|
|
|
|
|
|
|
Net income per share, diluted |
|
$ 1.43 |
|
$ 1.34 |
|
$ 4.30 |
|
$ 5.16 |
Pretax adjustments: |
|
|
|
|
|
|
|
|
Project development, preopening and writedowns |
|
0.12 |
|
0.03 |
|
0.23 |
|
(0.11) |
Impairment of assets |
|
— |
|
— |
|
0.11 |
|
0.04 |
Other operating items, net |
|
(0.01) |
|
— |
|
0.05 |
|
0.01 |
Interest income (a) |
|
— |
|
— |
|
— |
|
(0.14) |
Other, net |
|
— |
|
— |
|
— |
|
0.01 |
Total adjustments |
|
0.11 |
|
0.03 |
|
0.39 |
|
(0.19) |
|
|
|
|
|
|
|
|
|
Income tax effect for above adjustments |
|
(0.02) |
|
(0.01) |
|
(0.09) |
|
0.04 |
Impact of tax valuation allowance |
|
— |
|
— |
|
— |
|
(0.35) |
Adjusted earnings per share, diluted |
|
$ 1.52 |
|
$ 1.36 |
|
$ 4.60 |
|
$ 4.66 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
91,893 |
|
100,850 |
|
94,807 |
|
102,187 |
|
|
|
|
|
|
|
|
|
(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. These forward-looking statements are based on the current beliefs and expectations of management and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond
About
Founded in 1975,
View original content to download multimedia:https://www.prnewswire.com/news-releases/boyd-gaming-reports-third-quarter-2024-results-302286407.html
SOURCE