Boyd Gaming Reports Third-Quarter 2019 Results

LAS VEGAS, Oct. 22, 2019 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2019.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "In the third quarter, our diversified nationwide portfolio continued to deliver growth in same-store revenues, Adjusted EBITDAR and margins, led by another outstanding quarter by our Las Vegas Locals business. Our newly acquired properties produced strong results under our ownership, with Adjusted EBITDAR growth of nearly 6% and margin improvement of more than 200 basis points on a combined basis.  And we substantially expanded our sports-betting partnership with FanDuel Group, opening sports books at four new locations in the Midwest while successfully launching a market-leading mobile betting app in Pennsylvania.  Our Company continues to deliver strong operating results, and we remain focused on executing a disciplined, balanced approach to creating long-term shareholder value."

Boyd Gaming reported third-quarter revenues of $819.6 million, up from $612.2 million in the third quarter of 2018.  The Company reported net income of $39.4 million, or $0.35 per share, for the third quarter of 2019, compared to $11.8 million, or $0.10 per share, for the year-ago period.

Total Adjusted EBITDAR⁽¹⁾ was $213.5 million in the third quarter of 2019, increasing from $148.8 million in the third quarter of 2018. Adjusted Earnings⁽¹⁾ for the third quarter of 2019 were $44.8 million, or $0.39 per share, compared to Adjusted Earnings of $26.7 million, or $0.23 per share, for the same period in 2018.

Results for the third quarter of 2019 include $212.9 million in revenues and $62.1 million in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; and Valley Forge Casino Resort, acquired by the Company on September 17, 2018.  Third-quarter 2018 results included $5.8 million in revenues and $1.1 million in Adjusted EBITDAR from Valley Forge.

_{(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, third-quarter 2019 revenues were $213.3 million, up 2.2% from $208.8 million in the year-ago quarter. Third-quarter 2019 Adjusted EBITDAR increased 6.7% to $64.1 million, up from $60.0 million in the third quarter of 2018.

The Las Vegas Locals segment achieved its highest third-quarter Adjusted EBITDAR since 2005, led by record performances at The Orleans and Aliante.  Adjusted EBITDAR growth was driven by broad-based increases in gaming and hotel revenues, as well as margin improvement of nearly 130 basis points.

Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $60.6 million in the third quarter of 2019, up 2.5% from $59.2 million in the year-ago period.  Adjusted EBITDAR was a third-quarter record $11.9 million, an increase of 4.7% from $11.4 million in the third quarter of 2018.

The segment delivered record results for the fourth consecutive quarter despite disruption from construction near the Company's downtown properties.  Results benefitted from continued strength in the Company's Hawaiian customer segments, as well as strong pedestrian traffic throughout the downtown area. 

Midwest & South
In the Midwest & South segment, revenues were $545.7 million, up from $344.3 million in the third quarter of 2018.  Adjusted EBITDAR was $156.2 million, compared to $97.8 million in the year-ago period. Results for the segment include contributions from the Company's newly acquired properties.

On a combined basis, the Company's five newly acquired properties delivered Adjusted EBITDAR growth of nearly 6%, as operating margins improved more than 200 basis points from their standalone results in the prior year.  Same-store results were negatively impacted by flooding and property closures caused by tropical storms along the Gulf Coast in July and September.  Absent these weather impacts, same-store results in the segment slightly exceeded the prior-year performance.

Balance Sheet Statistics
As of September 30, 2019, Boyd Gaming had cash on hand of $235.1 million, and total debt of $3.85 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 its third-quarter 2019 results today, October 22, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 8971960.  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/964/31839. 

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, October 22, beginning at 7:00 p.m. Eastern and continuing through Tuesday, October 29, at 11:59 p.m. Eastern.  The conference number for the replay will be 10135562.  The replay will also be available on the Internet at www.boydgaming.com.