Boyd Gaming Reports Fourth-Quarter, Full-Year 2019 Results

LAS VEGAS, Feb. 20, 2020 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2019.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Our diversified nationwide portfolio continued to generate strong results in the fourth quarter of 2019, as every segment of our business achieved growth in same-store revenues and Adjusted EBITDAR.  In our Midwest & South region, strong same-store gains were complemented by exceptional performances at the recently acquired Ameristar and Belterra properties, which grew combined Adjusted EBITDAR at a double-digit pace while improving operating margins by more than 350 basis points. In our Las Vegas Locals segment, revenue growth remained consistent with trends we saw throughout the year, though EBITDAR growth slowed, primarily due to a difficult comparison to a strong fourth quarter of 2018.  On the sports-betting front, our newly opened FanDuel Sportsbooks helped attract new customers to our properties in Pennsylvania, Indiana and Iowa. As we enter the new year, the underlying trends in our nationwide business remain strong, and we are confident in our prospects for 2020."

Boyd Gaming reported fourth-quarter revenues of $833.1 million, up 5.2% from $791.6 million in the fourth quarter of 2018.  The Company reported net income of $24.3 million, or $0.21 per share, for the fourth quarter of 2019, compared to $22.9 million, or $0.20 per share, for the year-ago period. The Company's fourth-quarter 2019 pretax income was impacted by charges of $34.2 million related to early extinguishments of debt.  Project development, preopening and writedown expenses decreased $10.4 million in the fourth quarter of 2019 versus prior year due primarily to the inclusion of acquisition-related expenses in the fourth quarter of 2018.

Total Adjusted EBITDAR⁽¹⁾ was $227.6 million in the fourth quarter of 2019, up 9.1% from $208.6 million in the fourth quarter of 2018. Adjusted Earnings⁽¹⁾ for the fourth quarter of 2019 were $57.4 million, or $0.50 per share, compared to Adjusted Earnings of $37.0 million, or $0.32 per share, for the same period in 2018.

Results for both the current and prior-year quarters include contributions from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired by the Company on October 15, 2018. 

Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, fourth-quarter 2019 revenues were $223.9 million, up from $222.6 million in the year-ago quarter. Fourth-quarter 2019 Adjusted EBITDAR was $73.3 million, compared to $73.0 million in the fourth quarter of 2018.

Fourth-quarter Adjusted EBITDAR reached its highest levels since 2005, slightly exceeding last year's strong operating performance, as segment margins exceeded 32%.  While revenues grew in-line with recent quarters, Adjusted EBITDAR growth slowed due largely to a difficult comparison to a strong fourth quarter of 2018, when segment EBITDAR increased more than 13% and margins improved over 350 basis points.

Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $69.6 million in the fourth quarter of 2019, rising from $67.3 million in the year-ago period.  Adjusted EBITDAR was $19.6 million in the current period, up 6.5% from $18.4 million in the year-ago quarter.

The Downtown Las Vegas segment achieved a quarterly Adjusted EBITDAR record for the fifth consecutive quarter.  The Company's Downtown properties benefitted from ongoing growth in visitation throughout the downtown area, as well as continued strength in business volumes from the Company's Hawaiian customer segments.

Midwest and South
In the Midwest and South segment, revenues were $539.7 million, up from $501.8 million in the fourth quarter of 2018.  Adjusted EBITDAR increased 11.1% to $157.4 million, compared to $141.8 million in the year-ago period. Prior-year Adjusted EBITDAR for the segment included a favorable property tax benefit of $2.7 million at Kansas Star.

Results reflect strong same-store revenue and Adjusted EBITDAR growth throughout the segment. Additionally, the newly acquired Ameristar and Belterra properties posted strong operating performances, growing combined Adjusted EBITDAR by 14% while improving operating margins by more than 350 basis points over their standalone results in the prior year.

Full-Year 2019 Results
For the full year ended December 31, 2019, Boyd Gaming reported revenues of $3.33 billion, compared to $2.63 billion for the full year 2018. Total Adjusted EBITDAR for the full year 2019 was $896.7 million, up from $681.3 million for the full year 2018.   Full-year 2019 net income was $157.6 million, or $1.38 per share, compared to $115.0 million, or $1.00 per share, for the full year 2018.

The Company's full-year 2019 pretax income was impacted by charges of $34.9 million related to early extinguishments of debt.  Project development, preopening and writedown expenses decreased $24.0 million in the full year 2019 versus 2018 due to the prior-year inclusion of acquisition-related expenses and the launch of the Company's redesigned player loyalty program.

Full-year 2019 Adjusted Earnings were $203.6 million, or $1.79 per share, up from Adjusted Earnings of $152.9 million, or $1.33 per share, for the full year 2018. 

Results for the full year 2019 include contributions from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; Valley Forge Casino Resort, acquired on September 17, 2018; and Lattner Entertainment, acquired on June 1, 2018.

Balance Sheet Statistics
As of December 31, 2019, Boyd Gaming had cash on hand of $250.0 million, and total debt of $3.81 billion. 

Full-Year 2020 Guidance
For the full year 2020, Boyd Gaming projects total Adjusted EBITDAR of $915 million to $935 million.

Conference Call Information
Boyd Gaming will host a conference call to discuss fourth-quarter 2019 results today, February 20, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 5569843.  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/964/33000.

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, February 20, beginning at 7:00 p.m. Eastern and continuing through Thursday, February 27, at 11:59 p.m. Eastern.  The conference number for the replay will be 10139018.  The replay will also be available on the Internet at www.boydgaming.com.