Boyd Gaming Reports First-Quarter 2018 Results

LAS VEGAS, April 26, 2018 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2018.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the first quarter, we continued to deliver strong results through the execution of a well-balanced strategy to create shareholder value.  We improved margins throughout our operations, further enhancing our robust free cash flow; reduced debt by an additional $85 million, putting us on the threshold of our long-term leverage target; and returned more than $25 million in capital to shareholders through share repurchases and dividend payments.  We also began preparations to expand and diversify our portfolio later this year through the pending acquisitions of five new assets in Missouri, Ohio, Indiana and Pennsylvania. With our increasingly efficient operations, growing free cash flow, solid balance sheet and robust growth pipeline, we are in excellent position to continue delivering strong results for our shareholders."

Boyd Gaming reported first-quarter net revenues of $606.1 million, compared to $610.1 million in the first quarter of 2017. The Company reported net income of $41.4 million, or $0.36 per share, for the first quarter of 2018, compared to $35.5 million, or $0.31 per share, for the year-ago period.

Total Adjusted EBITDA⁽¹⁾ was $160.5 million, up 3.0% from $155.8 million in the first quarter of 2017. Adjusted Earnings⁽¹⁾ for the first quarter 2018 were $45.2 million, or $0.39 per share, compared to Adjusted Earnings of $37.4 million, or $0.32 per share, for the same period in 2017. 

The Company's prior year results have been restated to reflect the adoption of new revenue recognition accounting guidance, which was effective on January 1, 2018.  A Form 8-K furnished to the Securities and Exchange Commission today contains unaudited condensed consolidated financial information reflecting the effect of the restatements for each of the quarters and full year of 2017.

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

Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, first-quarter 2018 net revenues were $222.2 million, essentially even with the year-ago quarter.  First-quarter 2018 Adjusted EBITDA increased to $71.0 million, up from $65.9 million in the first quarter of 2017.

Adjusted EBITDA grew for the 12^th straight quarter in the Locals segment. Segment operating margins improved by more than 230 basis points, reaching their highest first-quarter levels since the first quarter of 2007.  Adjusted EBITDA gains were broad-based, driven by ongoing refinements to marketing programs, recent property re-investments and solid regional economic conditions.

Downtown Las Vegas

In the Downtown Las Vegas segment, net revenues were $60.5 million in the first quarter of 2018, versus $60.9 million in the year-ago period.  Adjusted EBITDA was $13.2 million, compared to $13.7 million in the first quarter of 2017, reflecting the impact of higher fuel costs at the Company's Hawaiian charter service.

Visitation remained strong throughout Downtown Las Vegas, driven by new projects and amenities in the area.  Continued increases in pedestrian traffic and recent property improvements contributed to record first-quarter revenue and Adjusted EBITDA at the Fremont, as well as the California's strongest first-quarter Adjusted EBITDA performance in almost 10 years.   

Midwest and South

In the Midwest and South segment, net revenues were $323.5 million, compared to $326.9 million in the first quarter of 2017.  Adjusted EBITDA was $94.2 million, essentially even with the year-ago period.  Revenues and Adjusted EBITDA were both impacted by weather during the quarter.

Segment results reflect continued improvements in operating trends throughout the Midwest and South region, with particularly strong performances at Delta Downs and Kansas Star.  The Company's regional properties benefited from ongoing refinements to marketing programs, operational enhancements and healthy economic conditions. 

Balance Sheet Statistics

As of March 31, 2018, Boyd Gaming had cash on hand of $179.7 million, and total debt of $3.04 billion.

Full-Year 2018 Guidance

For the full year 2018, Boyd Gaming reaffirms its previously provided guidance of total Adjusted EBITDA of $600 million to $620 million.  This guidance does not include any contributions from the Company's pending acquisitions.

Conference Call Information

Boyd Gaming will host a conference call to discuss first-quarter 2018 results today, April 26, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 5364893.  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 www.boydgaming.com, or: https://www.webcaster4.com/Webcast/Page/964/25539  

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, April 26, beginning at 7:00 p.m. Eastern and continuing through Thursday, May 3, at 11:59 p.m. Eastern.  The conference number for the replay will be 10119712.  The replay will also be available on the Internet at www.boydgaming.com.