BYD - Earnings call transcript Q1 2018 | Boyd Gaming Corporation

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Operator

Good afternoon, and welcome to the Boyd Gaming First Quarter 2018 Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. With that, I'd like to turn the conference over to Josh Hirsberg, Executive Vice President and CFO. ahead. go Please

Josh Hirsberg

Good quarter Brian. and to welcome Thank conference afternoon, call. first earnings our you, everyone,

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

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

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

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

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

Keith E. Smith

you us today. joining and for Josh. Good afternoon, thank everyone Thanks

returned our in cash We first continue our refined in operations, cost first have free margin quarter. the to strategic In year-over-year our resulting quarter, executing the our for further our for quarters. and strong shareholders. thanks growth we XXXX. through generated XX acquisitions the and And paid same quarter the million and the first from are We in in actively shareholders the down and for During value our highest growth our to $XX long-term foundation to since return with At continued laying XXth last portfolio. growing company EBITDA structure in deleveraging. reinvestments we flow growth, debt results through than flexibility business the capital strategy to time deliver more $XX in the strategy, capital, this line existing we million of driving time, future

to quarter, the Park, the St. of toward continued Ameristar we Belterra Belterra Valley our make Kansas close progress Forge. During Ameristar of City, and Charles, Resort, acquisitions

to portfolio all quarter. We transactions five performance these will several point first The the local contributed refinements portfolio add segment. XXth and Starting properties our XXX first consecutive this and we combined our growth but current its review over moment, to are quarter in and operations Las of margins later drive our track improvement on ongoing profitable the year. EBITDA the made a achieved Vegas, revenues; our last in to operating to in let's marketing years investments to growth. programs brief amenity in continue update a basis provide our in with I our a of on Local segment

were even revenue business. region, of growing segment focus year of our the profitable revenues at with properties our see number to in continue our for of result this we While most prior overall a segments growth as the the a on

itself. speaks our for However, performance line bottom

decade. properties, strong performances EBITDA Our Aliante, continued our in margin is it of including Locals widespread, newest Cannery. been highest portfolio Eastside XX% Cannery operating has in and the a was growth at our three

every in each grown properties have EBITDA them these we We quarter of acquired XXXX. at late since

of our our example full the acquisitions. growth to Another potential proven on of ability deliver

solid a gives ahead, us look across optimism continued reason we regional economy for the segment. As Local

year. than months Employment the stage United trailing last X.X% the in job year, sector. in setting activity with every construction XX,XXX last is metropolitan spending. in Southern growing fastest States XX almost residents growth over second have gains. job Nevada nearly more the up in billion over is area total wages And adding $XX gains Nearly for now consumer similar risen the the continued Valley driving is across X% underway the

giving of The confidence fundamentals the and solid our us long-term that will Southern Downtown business growth continue. as trajectory business Nevada's economy Locals of Vegas growing Las well. is diversifying, are our

as As Downtown amenities a noted Street Fremont and to before, have is throughout and Las thriving the new market. continues to increase visitors the Pedestrian more draw we Vegas driving growing traffic projects, area. area new

to that the to the grew fact, Vegas to visitor LVCVA a recent last In visitors Las made that number most reported Downtown XX% profile of trip year.

at are made our the have investments Downtown benefiting positive we from from trends, properties. recently We these

the its delivered EBITDA During revenue Fremont quarter, the record and strongest in EBITDA nearly performance Cal achieved first years. while the XX

and impacted remained fuel area. expansion This business. NEON. operations road expected EBITDA called was in we feed direction the as Las our remains our well into XX% road that a costs by Project healthy of work Downtown long-term Hawaiian year into Downtown solid, overall which charter part challenges, these optimistic improvement to a market continue on increase and next segment this as Despite of a the remain freeways larger service is at Vegas While work, the initiative freeway about is

Economic requirements successfully impacted Chip as not structure. Blue encouraging. by and programs are conditions trends cost the trends Moving masked first Indiana, current by place and winter operations marketing drive weather, are we quarter only severe outside regional and Midwest. our increased quite winter unusually to trends of throughout in margin in Absent remain but new weather the our Nevada, was weather well. In for solid growth well. improvements in in our positive markets to These competitions profitability by severe continue regional were as firmly the

customers have where in markets the we now we for seen from decline competing with the are South property. a expected Van new visitation As

a with Louisiana, other team excellent management partially In of March from growth job as markets. our continue we new However, generate tower performance solid at EBITDA losses with hotel great property. saw from returns strong at has Downs from this in done revenue double-digit some recent in growth, EBITDA our record investment and Delta offsetting feeder gains, to we these a results a our

this with and flow encouraged growing region. to its continued which another the just west, Mississippi chest, We EBITDA produced in years. months. to Star million returned continues positioning capital posting the during the shareholders. throughout Southern highest our in more delivered work in in our nearly we're achieve our by Kansas repurchases. for quarter. particularly shareholders in $XX million We strong us driving and and $XX dividend for long-term throughout treasure than Gulf quarter cash the XX operating to debt strong also down in country. target next were strength for results quarter first with strength through the portfolio And revenue the We payments our was free ongoing of growth free Casino paid share first good Louisiana through lower several performance flow leverage EBITDA operations is perform our Overall, well, our it spends the to quarter solid flow. across growth margins and And across putting We capital This to combined strong cash

AmeriStar acquisitions position waiting expect Forge are transactions to Both we our ago, $XX million Board on-track complete, will just we portfolio. nationwide Trade Four years, our during Commission expand year to towards acquisition and the the the and second for following assets with We growth each gaming the Gaming secure we so clearly previous approvals and period making weeks Aliante unlocked half And of regulators and good five Forge. all as a a the Control with transaction. acquisition. properties Pinnacle the diversify progress our again cash this with Peninsula, do IP, Hart-Scott-Rodino future These our and this by last Pennsylvania for and acquire FTC's us Federal free these we Valley required value of early for seven we new and worked to as will properties, the year Cannery. few growth We will for flow properties are granted over the once Valley completing preliminary Boltero close strategically termination us our of expand acquisitions shareholders the approximately of state the are approval confident significant

substantial our sheet. to and free growing balance flow strong thanks and ahead, Looking cash

flexibility This and returning deleveraging new acquisitions, is properties developments, strategy in includes strategy our and our the focus investments well-balanced to continue have that a new existing shareholder on the We continued value. capital long-term to create balanced a shareholders. to with

continues its numerous As our be there for industry through current of participate. will period consolidation, to us opportunities

Josh? today. to sports be in prudent addition, areas our betting. Regardless, to approach you our focused new gaming In there and turn Thank the for make to opportunity Josh. will over remain expanded us in and shareholder value. creating for every sense growth, not sustainable approach and maintaining will call time on will like selective I'll now balanced your staying we online non-traditional opportunities

Josh Hirsberg

Thanks, Keith.

mentioned revenue recognition results our became of new first our reflect standards adoption X, year. earnings a of that in this effective January As release, as quarter of the

year prior first earnings in accounting also the reflecting release results presented quarter Our our were standards. new

adjusted We of in filed the quarters for company information we the the in as X-K, release of statements earnings full-year have also XXXX. income provided additional and our today each the

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

reduced times. sheet excluding leverage we on debt approximately slightly five cash our the During more by balance quarter, our than million balances and the was $XX

four times leverage range EBITDA. have our between discussed, we times As target previously is a five to

of goal consummating the year levels. to Upon leading Pinnacle to that We expect during current approximately transactions, acquisitions Four achieve return assets and expect to these Forge. the up we to our leverage Valley this

flow result and We robust the million, already We million million at paying an acquisitions, expect to of XXX.X enhance our free these $X.XX stock outstanding $XX cash quarter, price flow. of over share more million quarterly as to average as on of shares of March dividend shareholders approximately than We've XX. by repurchasing $XX.XX. further of our $XX actual building our free returned a during had per $XX cash

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

balance We new will developments and grow acquisitions approximately be our as execution expenditures our of the continuing $XX Capital to sheet deleverage to balance continue achieve leverage during quarter right. program, million. to repurchase we opportunities our in the share were target to while through measured

the Forge. in our include not release, $XXX noted This expected Valley previously from of Pinnacle As million our acquisitions the assets of to reaffirming or does $XXX provided million. guidance EBITDA any we contributions four are guidance

business free once strength our and now positive to and first allowing in we're concludes generating and us again significant of Downtown allocation deleveraging. operating in business balanced Locals The Las demonstrated our pursue remarks of segment and by growth our a Midwest flow, Vegas capital South questions. that take approach our quarter Brian, ready cash and trends driven the any to

Operator

Thank you.

question-and-answer begin session. will the now We

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

Carlo Santarelli

afternoon thank Good and guys. Hey, you.

Keith E. Smith

Hey, Carlo.

Carlo Santarelli

to difficult the flat strength how relates the more relates the performance of in in interesting comparison things. to just flat clearly, of EBITDA? I with that business Josh, when and reporting your very for the see we continued know you year-over-year market the Locals quarter a end, to you the see obviously at Nevada revenue is growth Keith, people look would concerted clearly the in speaks really that you understand say the Gaming our How obviously EBITDA net because what the comparable kind the the in are itself and think knowing different of kind the was net to with X% quarter period. without on much it's revenue much growth most quarter, statistics Commission But or the efforts two

Keith E. Smith

in revenue refining properties, some been indicated have larger a we the prepared of are process. and I properties our number as these already our through remarks So that at of seeing my are growth properties that

say some of should refining in other process Some of been or refining properties declines I in the the through are are the seeing the revenue. beginning that process haven't just

of is of say growth comparison. this good So revenue going we'll that not concerted remainder limited of process what the I I or see we'll think will is the kind call a through tough really effort, growth a muted continue year. result a to I'd EBITDA the and it we for of are while most is It see

Carlo Santarelli

And helpful. public on most guys a obviously Great. call, was in the the lot conference spoke and a South weather-wise then more notably Midwest when That's last you situation difficult.

there reaffirmed tune to year-over-year and today million $XX time weather you where provided about, obviously spoke obviously impact the you days, $XX hindering know, which guidance where seeing Blue a Chip of were you're the you you at of days million comparisons kind and to You non-whether significant not.

range comfortable Chip just of range, time your experience had and without considerably guidance with weather I to the and far range and and higher more time the relative end getting do digest, removed some point seeing towards of wondering spectrum of You've now in that weather your maybe the thus middle Blue the within was the more from feel kind days. of to you more just demand? time that of pent-up given to

Keith E. Smith

Chip. with look to respect Well Blue

opened While, say six haven't started just yet, more has able we're and XX days the marketing the some let's therefore and database you fully yet, have who come. early. to or a to been clearly they they seen weeks understand up weather about for or refined they to yet, trends, maybe a it's last XX five still haven't competitor there's operation haven't ramp to built better I much When think new start their think

point kind this of so trend. unwilling a call guess And I to we're at

to to in a in being business or some competitor business of property come managing other from. grow feeder the able think online. we has get to They've job preparing I the the that online job a great new for the where come this done markets, great in team done

You you know Blue March know Chip. in of you some saw revenue – good out

we up a guidance. versus we let's Saturday Yeah, know has Some any reaffirmed going that we a good of I our are additional beyond but weekday. are that was any pent see feeling comments. Josh demand, we're think about I why about that if of picked think good feeling I provide That's calendar we guidance. some our because up to it, color But, that don't was

Josh Hirsberg

right in nailed range. thinking our guidance now it, I that reflects best comfortable No, think we're think and you I our

Carlo Santarelli

guys appreciate it. Thank right you. All I

Keith E. Smith

Thanks, Carlo.

Operator

from question JPMorgan. with Greff ahead. Next comes go Joe Please

Joseph R. Greff

is Locals market of guys, balance year-over-year the afternoon for sustainable year? Keith in X% Good growth the the the

Josh Hirsberg

Yeah.

extent been EBITDA Las refer to our without is or don't able revenue be we profitable for We're I to revenue. of more overall So we've to Vegas Joe Las that that both evident company. revenues grow without But outside what's we we that about have – how just you'd to grow – to as the well I pragmatic revenues guidance that think as the trying business. our to in to have both and think answer question grow we're don't, the benefit we're back Vegas able – of the

think I willing to what So we're say. that's

continued and growth guys I Some that fine of we're think now. Locals guidance and with of kind backed take we've something this that's into that at Vegas that kind have number and out reflects for a Las EBITDA level that

Joseph R. Greff

one I'm guys. of Yeah. those

obviously you because you impact catch If – you but XQ can what Did it busy this, Particularly, maybe crazy you the a the otherwise it what mentioned this the Midwest would weather? of and was detail maybe day. try – didn't God-awful not to for I obviously. way it South, in is, South it's been growth weather on and seen know, kind answer to Midwest, were have a EBITDA? you

Keith E. Smith

Yeah.

an Midwest the Iowa quantify or in Kansas, and of out and you of it mostly the the and places first of so some like we know, Iowa Illinois impact it weather was March. not detail EBITDA winter didn't South. was have we the eight year, significant really did impact in of in and in really although the through there, South the bad Indiana on did – So the snow in much – we too lot Really wasn't weeks have the up

South, look you you at down see the Midwest the You quarter – as know, it's for in the as and EBITDA slightly.

not it to than weather. the it on we're be But that. positive think any winter further say, side, not quantify I going safe to the would if for

Joseph R. Greff

on of to in the rest course that expanse does the XQ million corporate year? line, Okay. Josh the And moderate $XX that what

Josh Hirsberg

Yeah.

million think of kind – to quarters yet. around I to $XX be given take guidance wouldn't was mean it rate million probably to we've know, at QX, $XX be just the of light level so we with that of in the the rest bit the and little run are level to came a kind I You in going

I feels guidance run now. know think $XX you $XX around, turns for our the million how out, for think was QX rate comfortable I generally it let's $XX and million million now was but right see to

Joseph R. Greff

Okay. lastly CapEx Difficulty] (XX:XX)? the the and And CapEx change [Technical just there's any in side of full-year XQ to

Josh Hirsberg

and lighter Yeah. kind QX in We CapEx how we'll and our we're – total where, where But that and generally full-year spend. it's trends of think able we kind to that would I gave at looks guidance expected for of trending for right are than if that's so $XXX that's have of like see update million we where of the came into we then second you, the may differently. quarter be now. kind

Joseph R. Greff

you. Thank

Operator

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

Shaun C. Kelley

or guys. a be bit update the on that Hey. trends a Vegas there? about there? promotional Have environment sort have just strategy Good anything mean you in of know, relatively Josh Locals Any, clearly operating market you could afternoon, particular. you guys Las in little us could you distinct you overall very kind the talk I Keith of stable in market. seen

Keith E. Smith

last operating the several unusual for that stable QX. there think in generally a quarters, nothing we've fairly I seen was environment,

say time-to-time would step environment. generally – very operators do I it is and from odd, something out a stable people but As little operating

Shaun C. Kelley

the properties that or are you know those activity you that's know, out are, large there, And some change in any going you two from expecting largest under particular competitor from on know, impact renovation renovation. you of your

that underwriting and have You that? could know, any as impact you you how that an whatnot, or look or expectation at thought are submarkets

Keith E. Smith

two at the Coast, at, those good. was looking because differentiated actually we renovations and well done And the they to the it completing one those a next them Look, much door Gold I as Gold especially better, to better, you think Coast. forward as Coast competitors that we're know we'll look product operations, you as from at the very from those do a we be always do Gold business to have going has know, it's what across

inside will when We very they solid their start driving so more in drive business we building. building have a more that product, and business

I we're looking to fine think it. to So going completing forward do them and

Shaun C. Kelley

this continue 'XX out question were for of expect clear sort just you swap we you balance me of some you year. year things making would are market in top of you improvement or as to know look beyond, you for next you and the have of type type even these know, you you're be, to continuous beyond know normalize continuous to growth initiatives kind Did revert making margin 'XX? some do and Last you or pretty you you you or think may the that of and beyond for think things back more I line level maybe Great. sort know that you're more of of locals on thing know, improvement that know again know continue may continue on a even kind

Keith E. Smith

some the the know process probably the process, are revenue like would revenue to sometime continue but – we'll get past at of kind will we'll normal refinement don't return these I or little next be that look will who year. revenue in we like – because growth I as markets. markets. properties see some growth to longer, and added I it this little phase refinement, we initial as see here, what of market of we've growth or this Well, refine think the ever we more more properties a I at normal of mature more more some see this this been in enter a 'XX a for more we

Shaun C. Kelley

very Great. much. Thank you

Operator

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

David Katz

Afternoon, everyone.

Keith E. Smith

Hi.

David Katz

give ask what about acquisition to I unusual the there's know, updated It's, just know size, pending a, know, particularly about think about or and you in that short-term, But thoughts it's focus. know, sort there allocation. where of on how time. us at going I you you you you stock think you some leverage the could and same just those repurchase maybe general void you is you latter de-levering between buybacks and of on in allocating a I you your on you if at capital there unusual updated about right. sort philosophy how those think about, weekly know, two how basis, stock choosing, are of is you're know, all between, moment? going or you're some wondered I wanted know, a Not And those the – your

Keith E. Smith

it's think focus, certainly right, this I short-term a week-to-week or day-to-day you're conversation. is a not a Well, not

it's reflective more of a how larger I of company think, it's mature capital. company, a I reflective view think to allocate a stronger just and of

think existing advantage well us between that through to as four of priority de-leverage to We importance times repurchases targets shareholders times know returning for assets and want of quickly is dividends leverage as reinvest methods, as I the to our well and get capital and continued possible. as balance as you five know of with two in a to share growth. as continuing as our take you

And it we're it's a week, but say, do have lot isn't don't to you I have about, conversation allocate of think we but a anything to this longer-term add? a million view, capital, I do that that longer-term of, else we to kind know, balance. so, $XX not you we know a day-to-day just a how know it Josh, or deciding something view. It is is

Josh Hirsberg

Yeah. ahead, question. you David, ask Go

David Katz

of than moment on the just doing is, on time? asking down, really leverage or I'm what and to for suppose bringing stock I that or down both then focus rather have your focusing and about bringing you same lower four maybe to times thought at Well, leverage the focus the starting

Josh Hirsberg

Yeah.

end a I – of think, just out part is of year. at year looking or up. not where next even is years and this going you to, looking couple seeing our to what we're trying we're know leverage We're what

that improve other pay we than debt our to other leverage, pay other and than than do things flow down flexibility with just have free flow the can cash so, to so rather And leverage. we see our down cash

we the actually feel be today. use like but is most most it down it So, cash we perspective can from the the We use see is in terms going paying both. not strategic our economic free like world do that of not debt flow can always recognize to is for we the use, of is

conscientiously balance the a softer we robust leverage economy at nature understand little same And and that we want where their a are trying perspective for the day may time, be the of to of be so from when because robust company, us where flow cash opportunity of that today. other presents feel and all its these it the are that things balancing nature out and the the the there, opportunities comfortable to be for doing we are of just to we

And bit so, same understanding about it's want efficiency of of acquisitions, to you getting best get returns. that it where reinvesting in businesses be, it's our at the kind the little to to know whether opportunities debt a where while you share and is time, repurchases, can paying whether it's down pursue the whether we

know a can in can that the And best of at decisions year kind kind all we're puts nutshell and so, or – we we that as we blender of and our you look how describe in getting is fundamental make and two what next is the doing.

David Katz

just think looking be know still do somebody a would for than – number? attractive for less have still Okay. which you it know you more, we for is And look compelling you're you lot Perfect. ago, there there starting just that opportunities anything a buy a it hear a out or that else, there the sale. out is to are may going is whether that continue you bit you without year to And versus asking know there entities to is pile one

Josh Hirsberg

there, consolidation, activity lot Maybe high – Whether there's of of I a of things not four those think opportunities active a is as to and to viewpoints. this out Prices I've not through this so there's just things industry in there look look One, the are goes been opportunities of company's it or at, expectations. high, look has a year whether or couple compelling, lot another a some individual months comments. dependent I think while, the as opportunities at. of is as M&A think are seen about upon of kind are lot of first I round there in

kind certain and strict We we quickly look We we of And those if strong execute an want acquisition know we meet to be go leverage to We and for we strategic something deal. have a we to to where where it. you'll to it guidelines need assets. at it know see criteria, assets, be, criterias, look meets we find how come a at our look can feel let if as have for size, of down. we'll that we We won't find of we want they we markets those – certain on do it. something you on like a quality don't us that and execute can't set

either. be for us plate, prudent selective the to by But want on and been We keep continue have the but great execute lot face in selective busy, us to a it a very a if we will don't lot on and there. our always out prudent we've that's of see opportunity and and to plenty us, just lot M&A at same time, there a is we'll pass of

David Katz

Appreciate thank Okay, it. very you much.

Operator

with Wieczynski go Please Stiefel. comes question Steve from ahead. Next

Steven Moyer Wieczynski

Hey afternoon. guys, good

whether player this I and B across or know apologize Josh with you've if looked remarks, if member, Emerald you if it's you of and kind in – of you some of it's of compare database little you in quarter you visit in terms per number versus you Sapphire your I can guess – but Keith, looked member, you regional the markets. saw bit at if and maybe a you visits So an your can in talked whether the Connected, terms in in spend about us give of what visits, of what saw the a contrast, saw what color Locals market prepared

Keith E. Smith

looking and so higher or good high in a spend also good up ADT term the markets, at of we're visitation your spend, almost of seeing level, on we're Sapphire at level, seeing very levels Emerald frequency art. in all the more across We're our or Look board, our increases seeing up worth, you're or depending you something the quarters, this time. in continued or long it's period unrated at coin market, going it's Downtown market or for and in, some whether or growth X been but the way know quarters that's of quarters market Locals on XX whether been on good depending the Midwest X

know is are again that Downtown, at and quarters, you Same trends are in spending and and good or in been up levels our has strong they dollars those prior focus XX as our spend how unrated we've level good is seen the the in in Sapphire thing seen growth level, at growth so Emerald of coin quarters, as consumer the visitation. stronger terms So upper we've in in for lower part and market not healthy, marketing. of But our our Locals we're levels.

Steven Moyer Wieczynski

you. housekeeping Got That's just given still is for first DNA quick that And range kind in quarter. then gave the guidance February one Okay. million, it. I guess good $XXX you great of of just back for where question Josh came it in Appreciate a Josh. color. pretty

Josh Hirsberg

Yeah.

But is think of today a we I million little not when that significantly are mean I at the are just I different. dollars. – our we've only believe looked I guidance bit It's maybe versus given where high. that couple where models a

million point to it's now. this where and at range kind we're say that's of would still kind I of for in $XXX So that at $XXX million of

Steven Moyer Wieczynski

appreciate I guys. Thanks Great. Okay. it.

Josh Hirsberg

Sure.

Operator

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

Harry C. Curtis

Hello. Good afternoon everyone.

level – give you reassessing process reducing how and you is their how and that of can of be you us with into how they one aggressive question. really you Many spend? right promotional dollars are think competitors the how of cut profitability? your Just promotional spend you're before do reassessing spend, an just before marketing you peers and quick much just Can update

Keith E. Smith

than underway been is doesn't portfolio that's done. of XX still it. been year properties. an going property, an It happen once evolutionary so our all of process XXX% more talking all now. of about at a effort we're for we're It's the We've properties, a so not it This process at some it's in through and at

or speak higher once better. the refine through worth to – on continuous to the a a higher continue you at look ways frequently and it, is players to it, continue you this think to more I it, players to continue where process, improvement you're end find you

ever know You you don't know, don't. I that

lot to all taking of impact think can something than here, new we of back know, continue – forward, to technology. the pull we we've out diminishing too begin a taking the to and we're getting returns can and you costs on. we probably will will you the more deploy through to and far customer. it it's study that far, but today about we're time and go continue focus you there's going I We're to smarter up too cognizant Obviously, continue fact

hear see you surveys, to customer and to they opinion in that you in in customers. just see that and you customers of and cognizant that what talking member team think from team talking customers, be see I surveys members your

of have going a we number to too far. So listening post we're not ensure

again once company an trending going data of point awful we're monitor We awful have I of in but don't not metrics far. that we're an yet, lot and of and lot process. near is of awful can we too to this evolutionary sure our lot believe kind make

Josh Hirsberg

think dollars, those dollars you others less warrants and aspect getting the how a lower it's back be allocation of it in be not it And it. allocate some more statements and is, cutting where sense may I of may certain

marketing, – a about I at folks reduced think there's I refined overall as So sense talk sometimes more we it just when expenditure. look get

the as and to of effectiveness the expenditures, look we I think so dollars reduced but it as also those potentially at conversation has be part that think well. I of

Keith E. Smith

always it about going refining good talk dollars customers. up and think to brings make the dollars reducing, that those I Josh right sure a are and it's spending when reallocating about those we differently point, isn't about

Harry C. Curtis

Okay.

I me. you. think Thank covers it that for

Keith E. Smith

Thanks, Harry.

Operator

afternoon. Macquarie Thanks with - question. Please my taking Next (USA), Inc. for go Macquarie. Beynon ahead. Chad Capital Beynon Hi. from Good Chad question comes

in Just wanting you talked to on be does slightly what it's negative ask guess, rate, understanding the to still first a really the of growth did your come more, about I of sound January-February. early the kind just you – Blue going like full it's guidance, would despite – in is impact little full know, but out what undetermined above, as and the Chip, EBITDA year quarter year it on the that

and it's maintaining know in we it Chip the as you think overall guidance, that of and Blue just kind happen impact what's you kind of really at about to early is Thanks. year going don't the So the there?

Keith E. Smith

it – right Chip issued early – only the I we is way year. as you I seen guidance look, we've XX don't earlier. in as it but said, and to that's Blue was The it the that do think is ago impact the was days know of said full

nothing the we us Beynon - that in before our any another about feel we make Chad the Macquarie from trends, there's good feel (USA), Inc. changes. current good quarter want business, dissuades there guidance, but we Capital about we look So

us bills that's land given Okay. can you the any that's if along, there's how on interested presence Thanks. there, Louisiana, two just And you'd your of in provide update be that is separate tracked something base I just and in if kind then there market? update bill an in believe passed, that the

Keith E. Smith

it is us. to important obviously Well, very

Louisiana. have We of in five assets the state

land we are based bills more as have are Now number passed, of and around that a racetracks, last floating one bills robust are opportunities, but operations them if two already to have of them of night. so there. – passed those There

we're So row a we something Treasure they're at market, and to opportunities to pass quarters that Chest that like exact kind a we're a its think will and the then ability where will judgment been make that's change. on but going XX we've some growing especially three-story very there much we them, quarters and great always someplace unwilling of things an when pass they strong XX take that as and have can how to and now pass, But It's or to business in optimistic to they I optimistic riverboat do of advantage very take for more of advantage strong got just significant. business. very compelling a have

know long Beynon passage (USA), could bill where we're Macquarie that and in an watching Capital Inc. us of it really example run. Chad So - closely, the there's benefit you

Appreciate Okay. it. Thanks, Keith.

Operator

go Wong from Please comes question with Kelvin Barclays. Next ahead.

Kelvin Wong

Hi. Thanks a for taking follow my questions. I have a question on low again cost up. and

I think of your improvement How much was program? to was margin that the through there. flow strongest due

Josh Hirsberg

Kelvin. Josh. Hi, It's

know, lack of when our margins Even we cost really good and job we as driving revenue. cases You did Vegas to with would did of look impacts, portfolio, a relative issues some really Las good that were a the job facing had outside we say we weather of I we across in really of margins.

kind of between it more not say got in strong I team, focus things of terms corporate, what's But would from operations to happening what's on as know really good we're to of in what. – job going you the really throughout the really seeing our we've on wouldn't So really know and well they're I results some was in Las attributable Vegas. difficult efficiently but the distinguish of it's operating a only doing our visible portfolio, I and

I think working improve together overall. seeing you quarter. the in all I that margins the come of the Everyone cumulatively you're That's and generally working of. that's results make this to together think together we're to of company it as, what saw what happen

improvement quarter quite a a mean this but we've I think lot metrics, I as including margins, – in delivering us was good that margin for margins years for over last points, you improved time look been some and longer to like term continue basis to as going opportunity. our X.X something the an on to we're so X XXX have focus years of

Kelvin Wong

follow-up last That curious I'm you've said with a why I still been low-end. disappointed you Thanks. guidance, than is the regarding think on got low-end it. little one guidance sounds Got of like bit range better and the I just quarter are more you its just things think the I table? expected, the

Josh Hirsberg

the Well it's year early because in Kelvin. it's

Kelvin Wong

Fair.

Josh Hirsberg

That's it?

Kelvin Wong

Yeah. Fair enough. Thanks.

Josh Hirsberg

think I - Okay. Brian,

Operator

the Yeah. to conclude question-and-answer We're going session.

to to like remarks. Hirsberg it Josh I'd turn for back closing So any

Josh Hirsberg

in Fine. everyone you participating Thank for the thank you and call today.

questions, free up try other us follow to feel to and If with out. please you help you have we'll any

Operator

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

You may your now lines. disconnect

Josh Hirsberg	Boyd Gaming Corp.
Keith E. Smith	Boyd Gaming Corp.
Carlo Santarelli	Deutsche Bank Securities, Inc.
Joseph R. Greff	JPMorgan Securities LLC
Shaun C. Kelley	Bank of America Merrill Lynch
David Katz	Jefferies LLC
Steven Moyer Wieczynski	Stifel, Nicolaus & Co., Inc.
Harry C. Curtis	Nomura Instinet
Chad Beynon	Macquarie Capital (NYSE:USA), Inc.
Kelvin Wong	Barclays Capital, Inc.

Boyd Gaming (BYD) 26 Apr 182018 Q1 Earnings call transcript