BYD - Earnings call transcript Q4 2017 | Boyd Gaming Corporation

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Operator

Good afternoon and welcome to Boyd Gaming Fourth Quarter 2017 Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Josh Hirsberg, would like Chief to to over conference the Executive Officer. turn Financial I Vice and President ahead. go Please

Josh Hirsberg

Thank our welcome call. you, everyone, quarter earnings conference Anita. to afternoon, Good fourth and

me President Chief our Joining Keith and the afternoon Executive call is on Smith, Officer. this

revise to statements certain the undertake of All or may comments disclosed in forward-looking update materially uncertainties forward-looking that our today no today's Securities Private forward-looking comments the statements include statements. Actual differ results. forward-looking those our the with from Our as results any in date, statements SEC we statement. those impact and Litigation that in obligation including risks projected will are our filings There are within may Reform are and Act.

call today, financial make reference will we to measures. During non-GAAP our

both a a expenses. measures, reconciliation SEC and Form financial forward-looking We X-K For furnished special press provide website, our do in at of project please non-GAAP boydgaming.com. our certain of refer and which charges non-GAAP GAAP inability the release of due our earnings the to Investors measures our of to not complete and to financial section reconciliation are available to to today,

this to live call I Finally, Relations the replay of Keith. will in after would call section shortly turn at the now Smith. to over of also today's call. being be is completion webcast the Investor and like boydgaming.com available for Keith our website

Keith Smith

Thanks, afternoon Josh. Good everyone.

Company. great release was our appropriate a fourth which record from for an As delivered press a quarter to our earlier this you we afternoon, saw conclusion performance year

initiatives a result the the for Company economy, was in several focused paying the success fourth Our been have throughout XXXX off. and are throughout years strong we last on not the simply of quarter strategic

in growth greater marketing our spend. driving efficiency are and gaming revenues in requirements marketing Our

decision infrastructure in is business. for our delivering analytical technologies making allowing our better improved Our efficiencies new and and tools shared services

these in strong achieving realizing growth and core operating are operations in steadily result, improving And a flow Vegas, return economy, of the of are delivered margins. growth growth a and acquisitions. properties segment and revenue successfully of our execution health through As U.S. strong our Las acquired revenue we on during the delivering the newly initiatives Thanks and opportunities for synergies investments overall every our growth, the on business successful improvement our margin fourth quarter. to EBITDA strategic

our locals was quarter saw growth we Vegas EBITDA EBITDA segment. at our strongest once of from our straight As at EBITDA results of margin every year, the business, was XXth growth EBITDA again revenue This fourth locals property. our years. all local locals came It double-digit business and in gains XX with Las major also and from in quarter strongest the revenue, double-digit Xth gains performance straight was quarter

growth While properties our trajectory. continued legacy long-term their

Aliante, properties EBITDA Cannery, the acquired guidance to double-digit Eastside our million a these XXXX. newly Cannery $XX in of pace for also quarter, million to Our continue $XX in at grow properties for EBITDA beating

as confident key we ahead metrics to will the segment, economic growth trends across the look we As continue quarter, are continue local positive. to be first that

as last employment Unemployment Vegas $X the underway in than year-over-year. continues more have than more are nation. And Average growth record weekly has the Home on in the up fallen values There new all construction XX time a X%. led that are the almost nearly to trailing local new with and there nearly more wages new has now up in added million to year-over-year Las up than development. total of pipelines convention twice Stadium projects jobs of Southern levels, XXXX. low center the more Nevada's way and population than is high Southern grow, XX,XXX projects fastest to follow XX,XXX XX Construction XX%. X% of over of jobs Vegas Nevada’s to X.X% months, job reached continue Greater strip alone, including XXXX months. increase below rates Resorts much be one of of Las one an more growth many as of jobs, our are is future World, the nearly XX% over point billion now to-date expansion reached

jobs our up growth complete, be will As construction locals these each solid steam, Las as thousands are project These of new jobs boosting projects Downtown, throughout continue additional local will we as well. to come. our economy operations projects growth and see to are non-isolated for once permanent pick to thousands in created turn support years of trends Vegas

our rates fourth for cash quarter our room continues Downtown delivered more outside mid the and costs of fuel recent that we increase well single-digit of to despite reflection And year. are unrated seeing quarter continued the service. Downtown returns EBITDA it broader charter quarter in California, market. best of enhancements a was our our an for increases during growth Nevada properties double-digit at increase for operations. room of over in the than ahead quarter healthy investments well near since our XX% in their segment play, regional increase as from market Hawaiian saw reported Our growing the Nevada, our guests another the is to Hawaiian great at Play In of years of the all, grow product We from Downtown steadily now. our fourth of four

segment results do Kansas delivered in and both Delta job continues quarter by factors fourth Chest net growth not led team Midwest in EBITDA spend Star. market early for the record record growth been record in Kansas, profit unrated throughout and stronger results growth This our properties included an operational a visitors and leveraging weekend The of the helped healthy it had several Kansas property in and quarter. Delta the Kansas for that and closures operating quality revenue conditions EBITDA with refinements to to Downs. with visit last tax due for Nate visitation from strongest even fourth management a of to the of as IT year’s Treasure results. high in rooms In double-digit The the marketing and great with revenue, players. regional Louisiana, Star and of was the and and year-over-year revenue and greater were drive Hurricane in amenities in our the increased benefit The one-time Star in for by quarter October majority of as and achieved Downs would Our EBITDA increases revenues attract $X.X have programs million well growth In properties EBITDA EBITDA in margins. contributed of quarter results markets, economic rated regional EBITDA to region. strong solid South supported most year our

First, our is well, increased expanded hotels performing the to driving properties. visitation

Delta this the to we year starting from which Downs’ impact Hurricane refinements results to be to entire the continue market marketing were the appears St. Harvey. have of made program Harvey before traction show summer gain Charles and recovering this earlier Additionally, to Hurricane

of despite fourth of are team We VGTs. Illinois encouraged pressure result growth continued also delivered by a with the for EBITDA straight quarter management Paradise the

our the long-term the results the the have while of to markets. affected over first year by remained ahead of six regional about first optimistic regional been our weather weeks direction quarter, Looking we throughout business, severe

the the just winter weather South weather effective see with new are opening of to severe This for also to the an Indiana Chip. competition extent of full January Bend, competitor less the early throughout February hard Blue has East the determine that impact from of this new too impact in We still discern is Chip’s new period, and so between Blue it travel to most been in results. than versus is four to competitor weeks, open beginning of it

gaming of as there the entertainment long-term this challenges clearly year. confident We will Blue reasons remain While be destination. the position some properties’ competitive Chip in leading

was another our So on the teams country. the growth operating that performance across will have fourth all And for I continue. confidence exceptional quarter

investments the will profitable as achieve initiatives We these drive continue and well and our technologies We efficiencies as believe initiatives and infrastructure, from gains. our continued revenue EBITDA expect to Company. throughout ongoing marketing further to greater return

City, close Beyond of of XX also the immediate of the new Sacramento XX in these million we successfully Kansas Sacramento we to Cincinnati, Belterra Valley pipeline create properties term, of than Louise, Francisco construction Bay Rancheria in Ameristar operations, potential geographic begins. California, our expand financial City, This to and last and Kansas San new from growth the continue When our expect our realized expansion are of Gaming contributions expanding the opportunities. compact longer recorded the on-track XX approval will the Boyd to acquisitions resort Department Charles, in more which second benefits Park of customers. of area of operate remaining this St. will nationwide benefit of toward access its portfolio the remain of Forge, year. all beyond In six opportunities month, we of for of move start core tribal states, the the casino St. Interior the Wilton properties. Most Belterra to our also reach formally State Ameristar Philadelphia, gaming one steps gaming will Resort, construction across the pending before Tribe half all of California. the growth Last

the and example industry industry. betting like growth new opportunities the we our footprint, our one infrastructure of geographic hear emerging will U.S. destination Nevada. markets will is in portfolios ever in potential properties and stronger new betting most We scale We we have to in sports gain Las By of good geographically diversified extensive a operate across incremental opportunities sports or position in across in The experience and growth legalization our Vegas. capitalize market to customers, than expanding driving be in

in will As expanded new Forge. a of establish will to the market acquisition opportunity future leading gaming across betting market we result, in should soon online betting. states confident, have the we Supreme of are Court able our enter Valley favor Pennsylvania. Thanks a presence rule Also, the we pending sports sports in quickly country be

including throughout pipeline gaming of Jersey’s further developments growth record cash driving area. acquisitions, for EBITDA in our ways. in know many As work two the and experience returns significant online will and years. our free led flow the and continue supplementing in more have success potentially and organic and gaming other operations of opportunities key look We proven put to states Borgata, than flow the you gaming in generate Pennsylvania this succeed the it as an several industry expertise we in future forms new At potential growth our in work to consistently takes cash in what we Each new to know, across track to to to and putting we free New country. forward in online of growth we

deleverage of focus on four sheet target and to debt will of We down balance with times continue long-term leverage pay EBITDA. to five achieving our a

to We new will will continue approach dividend And regular to XXXX continue strategically long-term to acquisitions, continue invest create of shareholders Josh. This now year. will our value return turn developments and for to track in in to will the I’m we through for Josh. today. through you business build balanced exceptional time we our and capital in on repurchases. Thank that over share I and an coming payments enhancements. our shareholders property confident the record your success call

Josh Hirsberg

and announced cash Also acquisitions we that Four and and Forge Valley properties our to Keith. land transactions. purchases the record $XX fourth cash the over December, our in first we our flow flow Keith expect flow make share by than the generated the exceeded us, of repurchases. and debt free of year XXXX $XX Transactions We we our we the expectations by to free the reduce million, million successful $XXX Wilton Thanks, shareholders form mentioned, related as Pinnacle of when used more in announced project of set to another million enhance Orleans assets. distributed of of results. In for Aliante we and of free full-year dividends represented ownership one-time assets million the XXXX punctuated to by and those these million. was $XX Cannery XXXX, cash for $XXX quarter

end were provided and Our debt release. quarter cash in our balances earnings

of During our paid stock. million $XX the quarterly share per quarter, of dividend $X.XX and we repurchased approximately

For $X.X we at over average price the $XX.XX. million an repurchased year, of

We this months. to share approximately our over and next million authorization remaining expect XX authorization have under repurchase the utilize $XX

long-term EBITDA. on based are times for our four was with value decisions creating allocation At our leverage focus cash sheet capital long-term X.XX balanced to achieving Our year-end, our the shareholders the of balance on times. leverage target on excluding five

to XX%, future our of rate decreased from As Act, our deferred Reform the passed liability. reducing Tax a Federal result recently XX% tax tax

XXXX the tax a to tax of deferred provision net liabilities. reduction tax of Our million due is $XX.X benefit

of terms invested $XX million. during quarter the we capital In expenditures,

a in purchases. capital full-year, we $XXX land one-time the invested excluding For million the

maybe of terms million. interest. for guidance expected depreciation expected million. of $XXX expenditures In be about about are items that be Capital expense XXXX line to for $XXX Annual is to XXXX

to interest forward no interest expense outstanding $XXX million, with our interest $XXX current expect or assumes refinancings annual million. of curve to approximately be expense million We and LIBOR current $XXX related our our approximating the expense pending reflects financing activity for This debt balances cash acquisitions. to

year, be is for rent, million $XX share EBITDA to million income estimated expected which is $XX is year, the guidance and includes be is included $X Other about $XX be expect statement million. the full-year which in for We expense, preopening estimated about compensation the for corporate to deferred in expense, about which about million based to items XXXX.

of an purposes tax effective Tax Remember, a and a currently where XX% of lower Income of rate cash for cash approximately expect we because payer operate. NOLs. tax blend Federal we our XX% tax rate rate a are representing Federal the tax not We however, perspective, of the state from

Act, it $XXX NOL to longer and recent would balance a the the Our than a years under Reform as of of NOL couple have result million, was year-end expect at previous approximately last law. our tax Tax balance we

million in $XXX on million adjusted EBITDA be full-year guidance the release, to $XX Blue new our a range EBITDA As impact This in expect Indiana. noted Chip we $XX $XXX Bend, XXXX million to includes competition from of to million. South in

guidance Forge. this Pinnacle’s do Valley include of XXXX not addition, numbers provided and other I results the from asset for In acquisition expected or four

the ready transactions concludes to each from Anita, of in to now remarks expect questions any half folks to we that two are and our take We call. the on this continue close these second year.

Operator

Thank you.

session. begin will [Operator now We the Instructions]. question-and-answer

Please First question Carlo comes today go from ahead. Deutsche Santarelli Bank. with

Carlo Santarelli

of talked obviously good a from million XX bit perspective afternoon. $XX does guys, million to the Josh, that think gaming Could Hey revenue. gross represents million property impact, how talk of to little $XX percentage Blue Chip much you of a about XXXX you XX $XXX the about I like EBITDA?

Josh Hirsberg

five $XX is asset the we know impact information, our to million able don’t question, pretty out $XX that or based significant specific markets on Carlo the the fact individually as you top the asset. of markets top not write to be XX source that I the customers so South important Bend million for won't feeder one certainly properties a answer in to that of market of to but kind for is feeder this asset so

Carlo Santarelli

Understood. Okay.

You in $XX market flattish Downtown tailwinds, I year-over-year, improvement kind like think would appear low but your and growth back that million and looking we think only guidance EBITDA at obviously expense story, year-over-year $XX a is about add level of not at there of you being about impact implies which it are to relatively appropriate, is of see which corporate be when if well like the inherent to guidance stay I and looked weaver kind as locals guys Vegas million the end else XXX there? X% achieve, you Las that we in does if of as about said okay growth something know missed easy that’s those margin but to your the X%

Josh Hirsberg

analysis you we or low be the high XXX than No guidance suggested a the using XXX XX low taking and gave probably number. range you I choose that of to a would XX we that range certainly other the our think different expect end more the to think lead the are numbers to wherever to in I and to end would lead mid-point so well - and range that in of end you I a think of

are we bogie. our not I XXX think that is So suggesting

impact. We bogie been are million to it’s suggesting ranges to $XX as the and $XX our million the in adjusted factor

Carlo Santarelli

a the ask little I is result end how Maybe feel differently. could be you in conservative the would Do that overly your Understood. Okay. view? just low bit like disappointing

Josh Hirsberg

assets have of into implied it and be I you think through had impact the can’t most that our that businesses and think and weather take are I we I weather. have is slow in what in dynamics disappointing, we described we think weather, but XXXX to our as part, our start South business account well Midwest business trends in also underlying would results. most customers regional wouldn’t impacts. also of perform Downtown perform Despite rest the what are we these just largely maybe can’t good Chip. primarily the to to reverse you on but I the say But well. of ignore our of we well, and for the feel by the of ignore have performing as going effect could the really perform business, to continues if the we Blue about fact of continue the or in Vegas continues Las the our

Carlo Santarelli

Understood. Thank you.

Operator

with Joe The comes ahead. next question Greff from Morgan. Please JP go

Joe Greff

Hello EBITDA? With fastest outlook. perspective to presume net a be that’s or about Las EBITDA you to you how Just, seeing of growth growth Can XXXX best has in are growing and the perspective? the Vegas be respect component going everybody. I your locals revenue market? to talk segment your the

Josh Hirsberg

question? the of revenues outlook our asking and Was broke-up. first Joe, locals? growth part Vegas Las your question Are for your for is you what that

Joe Greff

correct is yes. That

Josh Hirsberg

in to the underlying I is think the the of Las and Las here So in Vegas continue that are think to look, economy Vegas good foundation seeing locals strengthen. from I believe business, what we continues we

employment, the positive at on of direction. the of it’s for from housing prices the kind prices, instruction just to the economy everything I going a think continues point our comments business general that’s and perspective

coming generally at business if we I point. this our of XXXX, look out think think at I

to in continuing will we for of up be growth year-over-year seen in our trends terms lot year-over-year very momentum while We have necessarily are suggest XXXX terms of be to to in going picking XXXX, similar Similar a XXXX. what to growth. not healthy

it’s our that the of I of the in terms an that that suggesting really just expecting business. in be up what at we think locals more point, the we assumptions picking basic see We growth don’t healthy impediment and from underlies to anything of that’s of terms not much what out is but same, XXXX pace. this are are momentum could for

Joe Greff

grow a market? growth the faster you in Las expect to Vegas at down rate Would locals

Keith Smith

Joe, is think that terms is indicate this is seeing trajectory the Keith, Downtown. is don’t anything I would once there that are what of Downtown happening that change going to again we in

We included there the market look that will see as other. lucky that market one you know have business is is caution or way dramatically a you Las in at drag I visitation the for change that you numbers don’t healthy Downtown, continues, a I numbers. Vegas, Downtown Downtown

And longer one will that there market a so that not revenue that will of no the decline it’s reporting indicate down in fact are to see the there overall the those business, our is entity. extent gaming you is decline there in reporting

So I nothing of the you Downtown the forward. of going that current should business. think trajectory is to there change cautious that’s be going of But kind

Joe Greff

I assumption basically impact gets impact worse straight balance back three Are to the last you that or kind thanks million just for you the sample large going make it size to negative and four over better to in been the a Great $XX do year million the certain of lining less $XX impact? then the weeks know four the or weeks. Blue than it’s and just of Chip

Keith Smith

is the full-year been certainly weekends there negative the indicated have the weather has has - weeks of discern dramatic kind have weather impact the the to because trend. muted. operation. make positive on more very very, been those with and million several where impact We that the first or can't weekends you four weekends our negative, very $XX been weeks, we $XX impact has million four seen a frankly good, been weather been the and from has bad, doesn't as bad in where really of So impact assumption What just

to weekend bad had weren’t, say have good And impacted tough really again there, so, once two which what had to and take were until to when significantly is would which you jump two weather happen. you going four weather to all it's

So XX first from the the does XX month for and to come of estimate just our year is competition. it not

Josh Hirsberg

internal really have one experience an The our analysis Yes, through point with reflect just of we I our other would market. I is, exactly. thing out what It's Joe think throughout getting bringing flow quarter in in that are this the performance that revenue the from more Locals are the we we market. Las through Vegas year a is lot fourth and shown

market would continued while generally see to we so X% growth X% kind And we expect to XXXX, number. I and flow think of in that's kind we of that from to expect kind would a through in seen what XXXX see

through Vegas we on so and locals based Las to say And there locals of from continue kind out that's put believe flow occurs that generally have growth XX% market. the we what in have to I

Joe Greff

you. Thank

Operator

with Hendrix The from Barclays. Felicia comes Please go ahead. next question

Felicia Hendrix

Hi Thank and because just you Josh might little on maybe others. a confused I good just be could you. if afternoon. second, stay

talk growth when look And your for EBITDA the guidance, mid-point your at just let's year-over-year. is calling about So The X.X% mid-point. we guidance.

hear expect say flat right? the flow perhaps locals did locals kind but from as some that said you got Did you I EBITDA year. be of growth that before of just you the would this better should that So you similar to Las through top-line Vegas so kind get have

Josh Hirsberg

Yes.

me, I the this So think part let short circuit conversation. I'll Yes, of

Blue no what if tell at for South South I no can really Western And Chip. The the adjustments you Vegas problem. are is due look locals, Las Midwest to around think for problem. we and consensus estimates

Felicia Hendrix

Vegas said and no Midwest too just is Downtown problem, and Downtown problem high. you Southeast no And Las

Josh Hirsberg

Blue because Right Chip. of

Felicia Hendrix

kind South of the that year? the seen do kind gets that that off Great. also throughout kind did circle of Blue in have then you weather assume you Midwest guys well Because and the as for January, just And Chip through you your of right, with or okay. outlook

Josh Hirsberg

reflect overcome in where leadership if we that's are we might why different range a is we that, But our of that and that range we think able not but to to to assume a be the are of We we would have today. that then we be a expectation able that point weather. overcome segment commented weather the those softness that businesses. be are our we of will we in just earlier seen that Chip we Keith encouraging, haven't the generally Blue able many have around business, of really performance impacts in good have seen to to the related when had fact parts because

So the underlying all that business, to us. trend the underlying continues consumer for of intact stay

Keith Smith

is one versus everybody watch is last days we nine And at the mean zero you last Paradise have not days had I days have [indiscernible] year, issue, look February versus a in snow have weather XX Blue snow snow days we our we had the when as versus in year, operation in XX last Chip, XX had small alone three year.

And it estimated. under to significant not is the to quite be business overall so

Felicia Hendrix

through before Blue makes with that just then we mean you have competition. have this Chip speaking sense. been I know I situations guys And Yes, new

done that own understand sticky you your traffic cutting So doing that some people guys your when help have have what can you this market, did customer, you things that that at thoughts us have source you own while, but of you about to ensure property? off your property some understand days that might for so I that missing a - done at maybe I

Keith Smith

and to did just we appreciated did brand. it ago to that was that knew and that starting year it make the and frankly sure making this wasn’t they was sure a were year touching trying they them anything we that that more we stay when our Well, we customers

have We amenities. with great great property a

going have who there team customers pretty have We year. have been great members for who

made have and that were we time effort. appropriate so sure just the of spending mode And

year great ramped the not started sure a up more our haven’t that were just We we a it’s make made and marketing, they reinvesting appreciated that things right all to experience. know It’s up ramped we we customers that today, doing that giving effort we by We nothing an sure are that ago them. heavily. them

Felicia Hendrix

$XX And so a off you last $XX you like million is just help that you talked guys into we kind from us flow thinking just revenues? help can perspective on the about the detrimental thing with are through to how you Blue can us Chip million should about be about, margins, have understand of like back thinking how impact

Josh Hirsberg

Yes.

from to that right that think now, will it’s… you I but we I tell away stay want try to

Keith Smith

its are revenue because hard, side minimize the on compete and some end revenue we you could the different how depends and then is We year the see whether on flows. it, to to Felicia whether go and the we we try a to buying how don’t going it compete just business know up or buy hard away we through therefore if flow will determine the expense be business.

give point. of this really thought So would decline to give indication false mean give you where be through, work $XX in would I can the of a flow $XX information kind game we some you away million this a revenue it and and an of estimate you we that’s think have it’s best we the we done to think I go. million at

Felicia Hendrix

Okay.

of good very sticking some kind philosophy past that right? from revenues when you the over to your of throwing not of guys money you been you years say not we bad after have few Just might are strategy, buy good moving

Keith Smith

from not do intend that We strategy, nope. to move

Felicia Hendrix

Okay. Great. Thanks.

Josh Hirsberg

you. Thank

Operator

Please from Stifel. question ahead. from go Steve Wieczynski next comes The

Steve Wieczynski

afternoon. guys Hey good

margin about view how year of expansion but basis last flattish Josh as years XXX can us talked great of to for that job margins done wondering I the growing revenue XXX margin of So you guys kind by opportunity for local year? of that do in You the couple guess a for help of as about a XXXX you you what are segment a think the we environment? especially points have kind to maybe more

Josh Hirsberg

our Well comment just in Las specific segments. look, really all we across and is Vegas I generally business a not is about our as think think this of

respect I and more our think efficient opportunities marketing we our to execute our to efficiently, continue business to with on to effectively, to campaign. more operate be effectively, our more campaigns marketing see opportunities leverage more

So progress our opportunities that and I degree to think have other to so. Vegas to continue we that, are Las while think locals do there and the a segments, similar to believe I make in continue we

sure, we in in our going the question is what your view segments. world our not exactly of of want I’m really but we the And I’m that’s So are so. think I to margin really that right in of continued opportunities process we middle answering all improve our me as are that you and through is the have Steve, reality

Keith Smith

additional as margins, Look, said indicated successful in another several business, business, whether in the last is the have Midwest we is believe, room Josh locals been business years. we and we to so Downtown over way, have what the so grow

middle our are We and or processes kind leverage shared BI of in scale and of as the services. we size it to report these

not are XXX% yet. in We efficiency the

so is room there whether analytics to grow it’s by additional there margins is short-term again there I think more So to or room. marketing go we once again, have more

Josh Hirsberg

and size Las modest revenue. I double-digit of in we fourth in terms EBITDA of in also all And our think the saw grow of our that terms all our comments kind they properties on EBITDA. quarter of small growth of Vegas in to results medium reiterate of revenue kind grew when segments, all

we again that’s expect what think I happen out performance similar XXXX. continue to expect in to that and XXXX to we play So that in

Steve Wieczynski

past the in guess have that probably does the good we bit Okay acquisitions five a year made. CapEx the exclude second different obviously out as for terms color. And start you XXX good look the little and the that for, XXXX. then excludes question is question of that’s or I by maybe a But that

and all to the as come more Is and on Ameristar terms and spending As have in Belterra sticks that Valley do those cold might you have Forge. comfortable anything properties out got the guys there looking being, the that properties to you acquisitions? guys along of

Keith Smith

No, I no in quality and think high properties have they they do been a I quite immediately are go are anything. through got a the CapEx detail to the, have chance very that required maintained, conditions well assets. significant bit good are of are dollars properties There

no are business, we have to continue the maintenance your do kind of those there the in to there to terms over going once think I operation. issues, in are differed to opportunities are take of that’s question ways all something find businesses grow we to but

Steve Wieczynski

Okay, it. great. appreciate Thanks guys. I

Josh Hirsberg

Steve. Thanks

Operator

comes Kelley Please ahead. question of with Shaun America. next Bank The go from

Shaun Kelley

Josh, clarification. quick guys. start can a you Hi to with just just wanted

the market, that talked frame to type are in exactly, was about more you of Vegas that is to What and X% earlier was an X% EBITDA growth. Las environment? Or think that referring you revenue market, that like or there were you locals I maybe think market statistic. Q&A is a I

Josh Hirsberg

I so and what can to market Yes the - saying we about overall. just that I asking were the took Shaun, XXXX the to I I so market is for false talking It mean thanks maybe occur Vegas question that am in jump question generally to are Las we generally I clarify. in expecting conclusion

generally generally think thinking revenue overall. of that growth market XXXX in the in I we saw we replicated are XXXX for level of being

generally are guidance I So that that expecting for say was kind would terms kind a our down expectation on I in to that's generally so what our X% recollect we business. segment of trickling our as of X% to

Shaun Kelley

are share, you wide relates that and you to think how But we relative that it mean the holding statistics or of revenue? can those some initiatives sacrificing the are up a your exactly I right competitors, market with initiatives bit we the are appreciate your at to gaining I poured. overall there, numbers that of some share on, now just backdrop you about will think numbers you mean I guess local if broader it as working that your that you is Okay. sense we monthly, but guys get sense are versus when of the there you about given look - And are - line is share are you to little some

Keith Smith

were deployed in spend bit losing When you in But aggregate little Vegas, be have just to not our growing marketing down and bit little own holding in in to other the to Las in tick. aggregate that, and our what of we our are of little somewhere locals kind losing are holding to own we is our look a at is dollars the kind properties between efficiently in going a it a or we direction. is At actually a unprofitable more the chase strategy a business. flat some a some either bit,

Shaun Kelley

clear. EBITDA of topic. you just thank a net remarks, on think differences last you it the - or across bit about measure are that sitting And rollout you either we out progress. of EBITDA to then think allowances prepared a like show gains. of margins marketing and on things do kind and are I question portfolio between work rolling gross in but the of at ones Is up you little some line do same efficiencies that's Keith analyst items to to think are revenues. is or best Okay, going you, technologies the the that in talked promotional the Kind the looking different some are which looking here marginal you some to

maybe and quarter, of hard over how of tracking that we those two see? or but or should then year that a kind we be efficiencies to thinking probably Just back programs a and judge look some about over again

Keith Smith

operate hard is between on have of circumstances has judge may then Nevada. somewhat they properties here the and They what the It differently this local at State doing. nine frankly know to of we unique surrounding based and you properties competitors are properties

and one specifically the that on quarter So it would at quarter. in negative false another in day allowances of I give end focused positive the promotional on wouldn’t I margin, could focus false

as not world our is and that of of long the say just year today's in margin or reflection so once again and we for and would dollars grow just two the overly watch And concerned marketing stay maybe ago. growing. smarter on as EBITDAs growing focusing I reinvestment a revenues vis-à-vis are It’s a margin don't us

Shaun Kelley

Got it.

dollar about way promotional then and doesn't sort else that get that might characterize that's to but one So we something benefit, that think of how we inefficient redeployed as to spend EBITDA the where than number allowance there the Is line. gets down absolute maybe play out?

Keith Smith

I characterize it. think it’s a very fair to way

Shaun Kelley

you Thank much. Great. very

Operator

from Katz Jefferies. Please Next go question comes David ahead. with

David Katz

I things everyone. grow this but… I other we that gets market or or as you What matter whether Vegas that of on up know Las and way market year. to but points things the wondered afternoon could bit, with three or or be little improves we or a have kind the one you the around other about not the should one the you would and you think gone Hi, where obviously that can down, data what hope drive locals whether keep two around come wore it an should or for what outlook be ask eye not, tracking to back or

Keith Smith

town rate it’s as Well to things employment watch I whether that it’s we month us, statistics of are we the indicators the growth that prepared economy. the to wage the think kind growth unemployment were important I that so in in all the average kind help remarks whether of those my of or indicated spoke kind every those of seeing

XXXX will would ground be back would faster. from my jobs. growth the employment And in also in went the my went expect all XX,XXX projects growth the the average true, wage the true. be jobs higher new economy statement job in conversely expect versus then the would so expect would If converse to significantly on growth more local XX,XXX that be construction comments probably if and to that would yes We if market construction and XXXX were also grow doubles double up XXXX, XX to over sudden we heat that we XXXX

several you it flow as at. look have the very the it’s This years. over but many takes up not seen watching goes go those metrics, we years. that So business, things things there spending into it are a should lag is just effect It the while jobs construction complicated mean doesn’t last up for and we metrics, so for have to are they those are the

David Katz

can are growth I If there one look estate broad of the kind that the real you those that sub way or different a it categories follow unevenly, of of may Company? different prices other whether segments of up difference wage make or or for that which maybe employment kinds them at developing residential categories be that

Keith Smith

nature as Well an given not just jobs are customer the more construction all as like we job created historically like We sector we I that think have seen example. of jobs than equal. government

is impact so business with created to we of jobs It right And important wage where other our the is community. kind what in it the see occurring, customer than groups. important on occurring the is types customer group in growth local are because better terms if of being will once as then a of it’s again

start surprise different at call do of kind the just of those that. metrics with into to the So of time to those look detail, not all we that say, time that of today we in and watching go subcategories and spend a in of the monitoring the lot intricacies

David Katz

very you much. Okay. Thank

Operator

Next with question Instinet. Please Curtis Harry Nomura comes go from ahead.

Harry Curtis

Hi, good afternoon.

guidance roughly Blue on Chip the Just progress casino decline of Am for, XX% that the It I too watched to years. would EBITDA I XX% negative? level. following your XX up having being the in implies seen know don’t

Keith Smith

Yes. Yes.

Harry Curtis

of you. Right? to all probably going out I’m get That’s Yes.

Keith Smith

Yes.

Harry Curtis

second The question…

Keith Smith

You answer the answers from now on.

Harry Curtis

It there the You each some that specific we target one? to estimate. second can on a a in more half. have of helpful given be closing transactions per would your estimate broad of kind the Is get for month

Keith Smith

Yes.

to love love to we would know I certainly we ourselves, think it it. that have

file information applications through hard We wining best the process And we is frankly go that. have have narrow and the it to are year and it’s we going feel. this simply the are our second at of the point, to to to and be through beyond process. [indiscernible] able just half

Harry Curtis

mid-point as earlier of mid-point, would that based know data, part quarter If the have fourth beginning you or the today? a of the in part you the put the on the of sand later us mid-point that at guide you the that line what towards

Josh Hirsberg

That’s not a answer. yes no or

Keith Smith

quarter. So got into you third have the just already

different Authorities to looking tell the learned regular Once that we and of what transaction to what years. improve who and at over five is the are out have we get have we they going not of us. Here are four, ahead again, need

through of take to until than so when are speculate going And indication we simply we long gave it. going on I of get an maybe we to us kind some how it’s agenda, not

kind you better don’t insight, give we of have. to love would just frankly So

Harry Curtis

you curiosity. my well Okay for thank satisfying

Josh Hirsberg

you to Talk Harry. later

Operator

The next from go question Macquarie. Beynon Please with comes Chad ahead.

Chad Beynon

have A hats my further and seen the and assets, acquired process the call the begin you ago, multiple and taking guys Hi crystal-clear thanks on Pinnacle filings we has to guess there. for will few the in the you off what and terms of is approach you been outlines after question. in months I guys Penn and now Pinnacle to the it’s

were of to other one, things about ask wanted a lot here. like Valley I it the So looks attractive acquisition the Forge

just on was high You then mentioned maybe location, even a level, property. the of the you the little expansion at what Thanks. be the EBITDA it on and that I unique that liked may provide about of of unit you asset? multiple. then bit detail something kind And Could think expansion currently going

Keith Smith

Sure.

think you liked I the things that we frankly. lot hit So a on of

the it it was by the standalone to at synergies where us, have a extract games. expenses, an increase property expansion XXX ability that single slot count multiple, point capabilities does to able at priced right with the as are property For once attractive the it’s significantly quite we

Court all to to distribution have in are gives positive yet and per not not nice and opportunities It anymore. have expansion. favor gaming, its be the just a don't where a It's in we presence we are think that the XXX us so a I win participate find will we a is betting be add incrementally rules at so looked which another very, in, we acquisition. games Supreme Northeast needs so potentially so sports unit state just ability more the of in that, very today that to if we and the and the few has games attractive it table But the market slot channel it. in property in, if things state the those it today highest online And that have beyond

of acquisitions. for look we as all the kind boxes So we checked

Chad Beynon

Okay. one these bid cash deal. bid are work Keith one and expecting that close respect Could licenses you the in could process with another you ,so the the Pennsylvania. and in for interested tough if potentially believe are is this you to you licenses being with that the time these, [indiscernible]. of seller I are of to guys to are flow that before

Keith Smith

don't. I Yes,

I probably we could certainly find way that and could, are to not speculate have owner if don't potential through or it. the a but we on with appetite interest would think we kind or of think and like we if a we projects, I do work we new something probably whether existing acquisitions the

Chad Beynon

about Okay thanks. Las maybe to And your XXXX then the talked last a one question, for respect me times. Vegas no with guidance or you yes couple locals of

since the just in I at that Ross] in after Vegas. think and [Palms] XXXX that X quarter did (Ph). of then there Thank guidance opportunities you [Red (Ph) is share are you. your changed or Has Las thinking Las either market about of third guys how reported kind you Phase announcement in Vegas adjusted terms

Josh Hirsberg

say, would I Yes no.

really Palms Coast they we I very finished at great that once the look is offer asset how prosperity relative think the tri what they to other's bring and kind Rio that Gold kind to of well Las can offer in. operators just is part be over product will will we with at and kind the and make of there. product each the are we of market Palms, that to of market those able they combination guys the do share that they done the Vegas and attractive are And being people of and positioned facto if of that we to more more additive in whole off get think

positive impacts folks. today, result once a are as benefit locals a as well on and kind doing we they there as over finish they are of oriented tourist of to great people what expect product we our but appealing that’s the deliver business any market in seen So to not do destination

Keith Smith

Josh Rio Yes years to Palms we they have our at - areas, peak, said were kind business of drove and the in the their past indicating. some more because Cost of past, Gold has were look,

better of even think our and enjoy and some will fully are we I in products. the then think are and they do they I going will we it visit will they area fully stop to so And once function, business. and by construction And out people as get more

Chad Beynon

much. very you Thank Okay.

Operator

like This Josh over question-and-answer-session. back turn I our remarks. to concludes the would conference any to for Hirsberg closing

Josh Hirsberg

questions free or to you and happy questions. answer else guidance If Chip any we anyone about, feel Company want Anita. Thanks now ask other the be our those call about anything to has to or Blue Good-bye. will

Operator

Thank presentation. The for is today’s concluded. now conference you attending

disconnect. now may You

Boyd Gaming (BYD) 20 Feb 182017 Q4 Earnings call transcript