Boyd Gaming Reports Second-Quarter 2019 Results

LAS VEGAS, July 30, 2019 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2019.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the second quarter, our Company made continued progress executing against our strategic growth initiatives.  Despite a few isolated challenges, we delivered revenue, Adjusted EBITDAR and operating margin growth in every segment of our business, as our operating teams identified and drove profitable revenue growth and enhanced efficiencies.  We achieved strong growth at our newly acquired properties, significantly improving upon their solid standalone performances last year. And through ongoing marketing and operational initiatives, we are successfully growing visitation and expanding our customer base across the country.  In all we are pleased with our progress, and remain confident we are well-positioned to capitalize on future growth opportunities."

Boyd Gaming reported second-quarter revenues of $846.1 million, up 37.2% from $616.8 million in the second quarter of 2018.  The Company reported net income of $48.5 million, or $0.43 per share, for the second quarter of 2019, compared to $38.9 million, or $0.34 per share, for the year-ago period.

Total Adjusted EBITDAR⁽¹⁾ was $232.6 million in the second quarter of 2019, rising 42.3% from $163.4 million in the second quarter of 2018. Adjusted Earnings⁽¹⁾ for the second quarter of 2019 were $52.5 million, or $0.46 per share, compared to Adjusted Earnings of $44.0 million, or $0.38 per share, for the same period in 2018.

Results for the second quarter of 2019 include $228.5 million in revenues and $66.8 million in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; Valley Forge Casino Resort, acquired by the Company on September 17, 2018; and Lattner Entertainment, acquired on June 1, 2018. 

Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, second-quarter 2019 revenues were $220.9 million, up from $220.0 million in the year-ago quarter. Second-quarter 2019 Adjusted EBITDAR was $71.4 million, up from $70.2 million in the second quarter of 2018.

The Las Vegas Locals segment recorded its highest second-quarter Adjusted EBITDAR in 14 years.  Despite challenging year-over-year comparisons and lower hold at The Orleans, the segment achieved continued growth in revenues, Adjusted EBITDAR and operating margins. Adjusted EBITDAR grew at every major property in the segment during the quarter, excluding The Orleans.

Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $64.5 million in the second quarter of 2019, up from $61.2 million in the year-ago period.  Adjusted EBITDAR was a second-quarter record of $15.9 million in the current year, an increase of 17.4% from $13.5 million in the second quarter of 2018.

All three Downtown Las Vegas properties set Adjusted EBITDAR records for the second quarter.  Segment results reflect strong gains in Hawaiian visitation and unrated play, as well as continued growth throughout the market.

Midwest & South
In the Midwest & South segment, revenues were $560.7 million, up from $335.6 million in the second quarter of 2018.  Adjusted EBITDAR was $165.1 million, growing from $98.5 million in the year-ago period. Results for the segment include contributions from the Company's newly acquired properties.

On a same-store basis, the Midwest & South segment posted its fifth consecutive quarter of improved revenues, Adjusted EBITDAR and operating margins, with Adjusted EBITDAR gains at a majority of the Company's same-store regional properties.  On a combined basis, the Company's newly acquired properties delivered revenue growth and strong Adjusted EBITDAR and margin increases over their standalone results in the prior year.

Balance Sheet Statistics
As of June 30, 2019, Boyd Gaming had cash on hand of $239.4 million, and total debt of $3.95 billion. 

Full-Year 2019 Guidance
For the full year 2019, Boyd Gaming reaffirms its previously provided guidance of total Adjusted EBITDAR of $885 million to $910 million.

Conference Call Information
Boyd Gaming will host a conference call to discuss second-quarter 2019 results today, July 30, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 9922523.  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/964/31069.

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, July 30, beginning at 7:00 p.m. Eastern and continuing through Tuesday, August 6, at 11:59 p.m. Eastern.  The conference number for the replay will be 10133426.  The replay will also be available on the Internet at www.boydgaming.com.