Boyd Gaming Reports Second-Quarter 2020 Results

LAS VEGAS, July 28, 2020 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2020.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Across the country, our team members did a tremendous job getting our properties back open quickly and safely over the final six weeks of the quarter.  And since reopening began, we are off to an excellent start.  On a comparable basis at our reopened properties, we achieved Companywide EBITDAR growth and significant margin improvement while complying with state-regulated reductions in gaming capacity.  During the reopening period, our Midwest & South properties posted double-digit EBITDAR gains, while our Las Vegas Locals properties also improved EBITDAR performance versus prior year. While overall visitation and revenues are down, spend per visit is robust, and we have successfully streamlined operating and marketing expenses to drive margin gains of more than 1,000 basis points in both the Midwest & South and Las Vegas Locals segments.  These positive operating trends are continuing into July, giving us confidence that we can sustain increased efficiencies in our operating model."

Smith continued: "We are also making great progress positioning our Company for the digital future of our industry.  With the recent launch of our Stardust Social Casino mobile app, we established our first interactive gaming presence under the Stardust brand.  We also continued to expand our strategic partnership with FanDuel Group as we introduced an online casino product in the state of Pennsylvania.  With our industry-leading strategic partner and the iconic Stardust brand, Boyd Gaming is in an excellent position to capitalize on the compelling growth opportunity presented by interactive gaming and mobile sports betting."

Due to impacts of the COVID-19 pandemic, Boyd Gaming reported second-quarter 2020 revenues of $209.9 million, compared to $846.1 million in the second quarter of 2019. The Company recorded a net loss of $108.5 million, or $0.96 per share, for the second quarter of 2020, compared to net income of $48.5 million, or $0.43 per share, for the year-ago period.

Total Adjusted EBITDAR⁽¹⁾ was $16.1 million in the second quarter of 2020, compared to $232.6 million in the second quarter of 2019. Adjusted Earnings⁽¹⁾ for the second quarter of 2020 reflect a loss of $110.5 million, or $0.98 per share, compared to Adjusted Earnings of $52.5 million, or $0.46 per share, for the same period in 2019.

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

Operations Review
During the period from March 18 through May 19, 2020, all 29 of the Company's properties nationwide were closed under state and local orders aimed at mitigating the spread of COVID-19.  The Company resumed operations at 26 properties on the following dates.⁽²⁾

• May 20: Delta Downs, Evangeline Downs, Treasure Chest
• May 21: IP Casino Resort Spa, Sam's Town Tunica
• May 23: Kansas Star
• May 27: Sam's Town Shreveport, Amelia Belle
• June 1: Ameristar St. Charles, Ameristar Kansas City, Diamond Jo Dubuque, Diamond Jo Worth
• June 4: The Orleans, Gold Coast, Suncoast, Aliante, Cannery, Sam's Town, Jokers Wild, California, Fremont
• June 15: Blue Chip, Belterra Casino Resort
• June 19: Belterra Park
• June 26: Valley Forge
• July 1: Par-A-Dice

The following comparisons reflect operating trends for the period from the reopening date of each property through June 30, 2020, as compared to the corresponding period of the prior year.  All properties operated under significantly reduced capacity in compliance with local and state restrictions. 

Combined revenues for the 16 reopened Midwest & South segment properties were down 18% from the comparable prior-year period, while combined Adjusted EBITDAR rose 16% and operating margins increased more than 1,200 basis points. The seven Las Vegas Locals properties that reopened on June 4, 2020, reported a combined revenue decrease of 28% from the prior year, while combined Adjusted EBITDAR grew 1% and operating margins increased nearly 1,300 basis points.  The Company's two reopened Downtown Las Vegas segment properties reported a combined revenue decline of 60% from the prior year while combined Adjusted EBITDAR for the reopening period was breakeven, reflecting the impact of reduced visitation to Las Vegas as well as lower business volumes from the Company's Hawaiian customer base.

Segment results for the second quarter and year-to-date periods ended June 30, 2020, are presented in the financial tables accompanying this release.

_{(2)      As of July 28, 2020, Eastside Cannery, Eldorado and Main Street Station remain closed to the public.}

Balance Sheet Update

As of June 30, 2020, Boyd Gaming had cash on hand of $1.31 billion, and total debt of $4.98 billion. Cash and debt balances reflect the Company's issuance of $600 million of 8.625% senior notes due 2025 on May 21, 2020, as well as $670 million drawn from the Company's revolving credit facilities on March 16, 2020.

Conference Call Information

Boyd Gaming will host a conference call to discuss second-quarter 2020 results today, July 28, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 6244842.  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/964/35870.  

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, July 28, beginning at 7:00 p.m. Eastern and continuing through Tuesday, August 4 at 11:59 p.m. Eastern.  The conference number for the replay will be 10146576.  The replay will also be available on the Internet at www.boydgaming.com.