BYD - Earnings call transcript Q4 2018 | Boyd Gaming Corporation

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Operator

Good day, everyone, and welcome to the Boyd Gaming Fourth Quarter and Full-Year 2018 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask question. [Operator Instructions] And please note, that today’s event is being recorded. And now I would like to turn the conference over to Josh Hirsberg, Executive Vice President and Chief Financial Officer. ahead. go Please

Josh Hirsberg

Good quarter William. and to welcome Thank full-year afternoon, earnings fourth and conference our you, everyone, call.

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

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

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

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

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

Keith Smith

call. quarter our past XXXX. Josh. strategic you several Thanks, fourth for fourth to joining we've earnings continued payoff the Company quarter The Thank been Good afternoon, over years, everyone. initiatives our in executing of the for

strongest to refinements marketing our performance and contributed efficiencies operational our acquisitions, of year. the recent our Our all

EBITDAR XXXX growth of margin of every quarter fourth our in and business. the delivered segment we revenue During

Across and the every our throughout it also points was to country and revenue, our same-store margins Just XX customer and across the spend willing XXX fourth a achieved segment decade. posted our operating of business visitation a basis. full-year growth revenue in strongest has solid is than EBITDAR and XX as our Nationwide, been remains more consumer nearly and same-store EBITDAR business quarter important, improved in year-over-year spending healthy Company. on of properties as growth the margin an basis we the

level we five during portfolio addition, the into Southern reaching began the saw flow quarter, way ahead. the locals EBITDAR segment cash properties Las with at across local growth. results while enhancing basis fourth highest our quarter XXXX. new our in our and prior Orleans. free In with integrating the our including and our consistent On in Revenues quarter its Nevada significantly fourth than largest potential increase property, a Vegas continue quarters, since led revenue segment, We operations fourth strong the quarters with record XX% our to rose properties in properties major EBITDAR more several growth EBITDAR

We to years exceeded very Aliante portfolio, returns and the two also owned Cannery, consistently the deliver to at locals are expectations continued in strong our our newest them. which we've additions

ongoing strategic benefit to While to service continues overall profitable our drive to our size and down model, we to leverage continue This positive to Nevada we through initiatives a economy, better Southern portfolio our scale a continues also costs. efforts results continue our as to operating which our shared locals’ growth. improve see includes performance from EBITDAR from revenue strong prioritize support

to five results. in minutes produce marketing programs In to addition, our continue strong and advertising ongoing, we're

In same program revenues. effectively B August, our our prior more At seen growth is the in rewarding re-launched overall quarters good in time, we gaming we player we a helping spend As loyal is customers. have most loyalty program reduce producing focus redesign we Connected the while even that with effort marketing launched maintain this results. on

we sustained fourth continues period. growth wage growth fastest double population in growth in Locally, average. exceeded time, the it months, the the are the come the job the year. of remain points in have X.X% primarily take the basis created in over same economy and growth upside Nevada's last is XXXX, efficiencies here this than last regional the Las for and increased segment customers. country robust program, encouraging. full basis making Valley, job of in Locals in segment. margin are are up are our results disposable state of that economy. our operating us reached refinements the our to and Across have of Vegas growing initiatives, And The We segment, Locals Southern from X.X% growth business revenues national and by growth the business. quarter wages across profitable in so over opportunities nearly same-store XX currently a particular our XXXX, positive the trend our Vegas Las margins good of loyal far seen improvement. drive X% XXX prospects the confident to confident Overall, more And this the in most increasing there At about same income Since Las margins helped driven points fourth operating trends strong. and we XXX running Locals Nevada while continue. ability growth into early continuing of remain our XXXX helping optimistic Vegas in to with grow Nevada performances XXXX efficiency long-term the across rising, and more quarter continuing across meaningful will experienced our the the new participate potential gain Nevada, Since their customers are new we is pool of locals launch the advantage business and the our their to in Southern willingness

as XXX our segment margins the in downtown We and are more points. the EBITDAR gains equally nearly pleased quarter posted record performance. All by resulting business, EBITDAR, improved in a than growth fourth three which Vegas of direction by properties Downtown EBITDAR revenue, margins, Las XX% posted across basis

the will likely continue, into continue expect see move to in do of disruption year. to positive which Street a these project spring, we resort the as into some from next new Fremont expect construction we we While trends

continue We also project, stages this an construction disruption the of to the in the freeway throughout portion expect roadwork the this final came November. most year of end periodic Project although disruptive from Neon will

player to property at achieved EBITDAR customer disruptive strong much Nevada and give new the Project and quarter. all our our quarter during come short-term, growth only make to efficiencies, these growth all, our as growth the and While the South not reason and Fremont be market. third one-time growth locals in traffic firmly South our growth significant to positives as Operational in story bottom refinements in Midwest generated businesses benefit yet the our a new to trends strengthening for core downtown of Star, long-term, very increase will same-store the Street another segment will visitors ever. Kansas segment downtown a long-term positive get demonstrate, there, story strong as Hawaiian trajectory. results Midwest investments Neon it place further steadily remains from was marketing line easier clearly throughout is and Nevada for program the removing for The tax growth. resort And in will contributed The EBITDAR consecutive area loyalty segment fourth our remain downtown. the After X.X% Pedestrian In continues and quarter market's quarter. the fourth as in visitors us. for

On South, basis Excluding property quarter despite and two our quarter, properties benefit, delivered strongest perform solid the led gains in and basis, the property revenue have fourth by the Treasure performance the at XXX most fourth achieved owned EBITDAR East since margins its And eight properties. of we encouraging EBITDAR we during a to fourth Louisiana Mississippi In same-store more competition regional throughout Biloxi, results Diamond rose gains. segment EBITDAR years it. In tax in our IP than Chip quarter performance its the points as EBITDAR to Blue produced in market. we strongest the continued Iowa, new Jo XXXX. across saw our the Chest’s well

good growth In IP's and sports off a the In Midwest solid five our Charles, machines performed to properties, in enhanced have City, since start line at Ameristar initial Valley for operations In XXX performances Valley at regional Ameristar extremely seen property at revenue results this of our the with are the Kansas our we across of Belterra growth completed legacy in by of deliver a new August. St. results And with was addition and and our mid-December, Forge, the addition are in then. start The we happy and Ameristar we our same-store segment, to properties slot quarter. South slot strong strong and seeing we us. property Park in in our all, all book double-digit are Belterra to opening since We to properties. is off Pennsylvania, the East the Belterra continue Resort, which during expectations Forge.

look we ahead in remain operating our throughout place XXXX, trends to As firmly strong portfolio.

severe business year. our However, weather has by of winter been impacted Vegas outside this Las

weekends been impacted first the the by year, and cold. have severe of Over six weeks several snow

Resort In addition, days February. closure flooding and in for temporary the mid along the of several Ohio Belterra Park River Belterra forced

continue properties. top us In in at not late to or the allowing will keep and at initiatives B including we impactful on In Connected their execute properties our Belterra While of is of integration weeks, the success. weather newest the the Ameristar country. Gaming the redeeming quarter rewards link the our of results, first rollout the B change properties the loyalty Boyd that the rest on across began of the list of program portfolio. long-term of to acquired confidence our nationwide properties. key January four our We the begin will assets with allow at events building five the to continued with coming did the operations At our nationwide our player Connected these regional will in XXXX, these we in introduction customers we earning direction and XXXX, our portfolio to

Valley Forge, later the which join will be will up year. network Next this

program cross XXXX legacy and properties year across performance of our acquisition driver a be Given nationwide was opportunities incremental portfolio, we revenue of another front. on busy loyalty assets. for will believe the marketing redesign new this our the Well growth our rollout profitable that

in new including reinvestments our will to to amenities. in additional We continue XXXX, explore expand opportunities property business

XX. unique to we of the the our MGM our example, geographic with wagering the expansion four the in country these population. At lawmakers of legal across the increase considered across states, sports the betting sports pool avenue and moment, amenities. Today have existing sports states sports Resorts, of our thanks offered the appeal actively representing there's to first then we offer those betting for agreement and betting introduction U.S. the up going potential and properties, Mississippi sports new and market XX than Nevada, betting by where and years just access our Today, XX% to more sports of where of in footprint mobile two other nearly states open and offer to For of this XX August. in it's is and created a books country opportunities, through betting being new of customers have expand in we

spending early new expand new Mississippi, staying was leveraging visitation at to amenity are existing a still quite We're are property. base. and this and positive book has sports in the are While customers IP Customer IP great on customers our to off grow and longer while and seeing reaction we start. we customer been to more the and it successfully

Nevada ahead expect expansion the and business continues sports is to We grow and beyond in far forward. this Mississippi to move our years

of up most ideal the the make partner long have it. We lined to

spend power of product and their moving will FanDuel to and our diversify well our we’ll sports at market Gaming such this Valley and we making us under to of as opportunity in expand existing leading further new gaming presence, strategic opportunity IP track to at preparation record we customer visit new month. further acquisitions expand where Resort, In existing forward to their one and significant have site and in where today. to Sacramento. The a development, partner Wilton explore market introduce book life. the leading brand FanDuel later Jersey manage the at the a experience claimed a a Boyd partners an success already This just seeing Gaming We to competitive Forge, begun nationwide of Rancheria South for we betting base addition base attractive properties, market in starting our through our they were provide next the develop an enhancing is Philadelphia in and most opportunities as market. brand group at commencing exciting to per drive through markets. the customer continue expand for Forge vision our opportunities amenity portfolio as California, leading Tribe to the among of or the customers, growth share has quickly the With betting FanDuel resort in sports to both prepares expansive Our just chance a demonstrated construction have to hospitality Company, and to for to Bay unique this area the their property is world-class of our to growth sports a and look tribe's New year bring This Sacramento for geographic bring the tribe of opportunity Valley forward Northern our

and growth reinvestments important acquisitions remain projects, property our New strategy. all pieces long-term of development

continue will maintain repurchase new future, $XXX in well approach authorization. explore with we capital will these of we balanced allocation While the million each a to to options a share

have capital return continue We to capacity program. considerable the

talent business, We performance. summary, to finished new should deliver strong remain properties have on have growth, of achieving joined to properties the focused start for and are of are off a and we steadily We Xx our these that full-year. the later And improvements quarter new strong our These last segment XXXX we on of reach executed teams significant the growth quarter the portfolio. We are company. our In integration in every our to very fourth time, a ownership. our their years. two long-term both with assets began under in year. and target property successful performance for EBITDA, we At we the with leverage the a Xx in of our we the five to leadership that Together the potential. this confident the margin delivered target impressed position fourth EBITDA revenue fully ability same into

on We property through we to and potential Wilton. and balanced to reinvestments, our free like expand portfolio continue capital cash opportunities upon pursue to pursue FanDuel acquisitions, continue built approach dividends enhance share flow deleveraging allocation a further our to and partnerships strategic to look great use growing And will for your to repurchase call shareholder focused team. afternoon. Thank all forward with increasing of all over confidence to and for In XXXX was I lies a the now entire what Josh? long-term this We Josh. accomplishment value. you ahead. year turn our time

Josh Hirsberg

Company Thanks Keith. The marked year. successful of fourth quarter was a very good the quarter for and our a conclusion

During the same-store X.X%, same-store quarter, XXX and over improved margins nearly points. grew EBITDAR basis

For margins nearly the grew EBITDAR basis results. The points. X% had equally almost same-store improved we year XXX and strong

growth driven years consistently several for now. revenue We have profitable margin and improvement

expect opportunities customer leveraging improvements We on trend scale. the will our and effectiveness this strength internal and size continue and of operational the for and based continued our

pursue whether strategically the they are focused ability to our capital use while in that flow business, free to will on on shareholders, returning continuing balance Free returning growing be or deleveraging our sheet. focus highest our company generate all to We investing continue to our cash cash we flow. to projects,

five of to three full-year to acquisitions XXXX of we markets expect approximately ownership. rent million new a enter annual combined capitalizing the EBITDAR companies. assets our distributed And business. four basis and to on with Holdco $XXX acquire the gaming payment from and completed During Evaluating in we these during related operating Illinois first acquisitions million properties the generate assets $XXX million and acquiring all and these EBITDAR we $XXX these about invested new

multiple, from acquired Vegas to Las acquisitions And these in Town from anticipated Cannery Aliante. Cannery represent of the has Including the price recent and Xx Sam's our XX%. which better approximately of purchase owning Aliante annual Since a purchases at growth at properties, we will grown and Xx Aliante assets, these roughly the assets. only captured especially EBITDA continue Cannery. The get an terms incremental inherent Our of have multiple. in combined benefits we represents

of acquisitions all the an in off $XX clearly and over share quarterly of per are So of price $XX.XX. the quarter $X.XX that dividend million paid these during are we We repurchased expected. our stock at creating in we value October paying manner average

repurchased December, we Finishing of the outstanding. Board year $XX.XX. at authorized an full-year with shares average over million the price share our XXX.X million For X.X shares million $XXX an In program. additional repurchase

We have million under far approximately $XX that so repurchased program this year.

in quarter, full $XXX year investments of we the During expenditures million. resulted in $XX million capital invested capital

earlier, we on focused our deleveraging mentioned balance As I sheet. remain

on year-end, X.Xx basis. We continue is on adjusted basis for lease X.Xx to an leverage believe was our deleveraging and a At important Company. strategically EBITDA our

levels expect during leverage XXXX. to Xx of target We EBITDA achieve Xx to our

Now $XXX million. of guidance. terms to for are Capital XXXX expected in expenditures be about

current annual expense Our depreciation approximately of estimate million. is $XXX

team in idea the once the accounting We allocation for will the process purchase price months. a have actual depreciation of better acquisitions completes recent coming

will million amount. and interest expense current debt. million our reflects LIBOR the to outstanding expect $XX this forward This We expense than assumes with expense curve interest for interest less approximately about million cash be refinancings $XXX $XXX current no for

to expect in master the well. master a lease $XX lease for We the base assuming under the be for by year the be and end assets approximately two XXXX as for year coverage was and Resort governed million, the Ameristar rent X.Xx Rent to X.Xx ended assets April. escalation rent X% at is Belterra estimated XXXX

about year, of million expense items about about expense $XX guidance million. expect expense rent, this for $XX of which be $X Other pre-opening million, approximately We EBITDAR $XX include compensation XXXX. in income full-year included statement is corporate share-based million to and our deferred in

that however, of federal our we of We income tax for tax a approximately tax not NOLs. cash expect are because payer Remember, effective currently purposes XX%. an rate

$XXX at year end NOL Our was balance million. approximately

be of $XXX Pinnacle, implies guidance total, range our expect the $XXX In adjusted of EBITDAR we Valley from free million release, and to the Lattner XXXX our EBITDAR guidance approximately $XXX $XXX in full-year includes XXXX. flow for approximately in million. full-year This noted million As million to assets. Forge cash

good in both strategically operationally XXXX company. So a was conclusion, and year, for our very

long-term continue remarks trends to and operationally now cash ways to to our our ready free continue questions. shareholders. positive concludes for in our expect We that for we and XXXX our flow create we're to deploy resources enhance and will to William, look any take value

Operator

[Operator questioner the ahead. first Thank will you, now our with will Instructions] And Please session. Deutsche Santarelli be we Bank. go And sir. question-and-answer begin Carlo today

Carlo Santarelli

you year. your and comments a much for thank Josh, on very congratulations Keith, really good

Keith Smith

Thank you.

Carlo Santarelli

Josh, just based reading that scope probably between much, in your in in Locals just your bigger have of and year, success some this positive, but clearly acquisitions guys on gaming environment not lines we commentary much become has your the see closed it the the – too and obviously years. prior but as you acquisitions a had you today, on

for sort much think there come beyond, much shown have You appetite kind to XXXX clearly accretive pro And scope out play? that guys you and more get like, about stage, buy how the and and that you and you deeper expected you could Locals acquisitions? how this kind and issues the more of tremendous competency you of when synergies market, FTC into think a XXXX to At issues is forma specifically were have and the think get size at in if about do of multiples. things

Josh Hirsberg

Good question, Carlo.

Carlo Santarelli

Thank you.

Josh Hirsberg

one acquisitions expectations purchase its make company, kind been or ourselves the and and of, on factors attributes lays success established think when set successfully that that price. for to on it key of the we a for based deliver synergies out we its that ability the investors I its Look, has

continue I as there grow it's of So as surveyed always when out that FTC risks will – our we to we'll and evaluate or with experience for a means continue when the limited kind of I I I will are transactions, we've we look something Company. respect, to a it's see opportunities to in horizon those kind the times. of the be don't we the think and we to analysis us we that, of at had related available think competency core But kind of that done types might acquisitions kind have about history. throughout on say us. that certainly don't of evaluate risk there that

question, how wait seeing the opportunities way. think And we'll the don't hit those and to of think least your over making Company play to understand or willing a Company and want will do like all your address if we continue our risk. think up any that, couple are I does I add if aspects brought limited And this I at out rationale value think of like necessarily trying be not like – risks come in everything I for therefore you that, for to to anything the Keith where last I that shareholders for we you're feel for the that that having long-term play to go So to question. are years. but said right know have my been know that strategic have we to grow view to need us feel that I'm just don't our as that very by acquisitions. that. cover I solid have our is not that's of I around by level. wants we feel deals We I've do sake certainly of I'm high good growth we most opportunities back

Carlo Santarelli

Yes.

I that think Keith certainly for did. interject be I if don't you would most the great. know part that wants to

Keith Smith

Well, covered have well. to it continue Josh we think I grow. appetite to an Look,

I think core growing competencies through is our one of acquisitions.

limited whether a here in to Nevada places as As other or don't terms to to order pretty and work Josh we this. have synergies through model it are continue good of on the think in understand We be I in risks, we said, deliver but grow. how we

opportunities, opportunities can to company. that grow for continue we'll the look So good

to and statement, something for sense and growing about Josh, been we'll increase have continue way. important operate we've to us be made and to make able which to to about a strategic think very is and shareholder growing that never profitability been for growth value I We've sake.

Josh Hirsberg

aspect acquisitions, internally like lot path the that a would one spoken think I continue on many our our feel other I the of on several have that initiatives mention is, over overall is we've that to operations, continue about improving we we to the years. absent of last of execute opportunity

need we are to absent foundation something a that acquisitions, evaluate, think that really feel do but portfolio good how with have have acquisitions together. will – we don't to they things we continue operate want manage I like that and we we of we to we So can a improve how they work

so think comfortable and acquisitions, I that we feel trajectory And business. with where of business the is absent the

Carlo Santarelli

new Great. Forge being And I about the and I and then one in there the back is as that if Lattner acquisitions. Valley I new about midpoint the could talked XXX follow-up off the that guidance obviously you for just the of that think Pinnacle, guidance,

to And your you number that think I what's of that XQ in earlier provided of the of $XX same-store the it portfolios the fair know the enough guys growth? $XX get combined fourth three EBITDA about kind XQ. to the assets accurate? a that was in I'm quarter to trying had talked I assume million just that color roughly year. you'd million three, in organic, If EBITDA those for Is implied you've acquired assets through stuff on in those as or the XQ

Josh Hirsberg

remember $XX was think – guidance acquisitions Carlo, guidance – whether made. including the Lattner I your guidance achieved think careful correct. gave end basically be for $XX giving in full-year. the is you we you're to the the you full-year that line Lattner. acquisitions statement and it the But million $XX to we was time, that – we is or at think those period number. for performed for ultimately million you. the it statement And I of But have of don't know right million The provided QX underlying I I day, is if of Yeah, of $XX was we million I the the was million the by what correct, not $XX own for the or including acquisitions the

Carlo Santarelli

guys, you, congratulations. Perfect. and Thank

Keith Smith

Thank you.

Operator

And our two Wieczynski question ahead. or Please go with be will Steven next Stifel.

Steven Wieczynski

Good guys. Hey afternoon.

you I in as if would Keith, ask continued just in margin directly, way also or expanding different of and XXXX good job front us Or somewhat of about to terms flow to for maybe well. the Josh are helpful. thinking And XXXX, of think you guidance answer I the is, guys you of give margins. this So the opportunities you but of the guys you'll can a way an near-term how but your around very don't start, can guys thinking expansion a be through kind about are idea in

Josh Hirsberg

Yes.

would excess that we is expect something think obviously segments with So completed many in we at in had – to I mean just and of that that flow good I that we continue we of don't a had with quarter level. of very terms excess through, our And in XXX%.

we've South kind our kind of Vegas folks I maybe lower XX% that at be a that the for and Midwest guide little think through middle range a bit kind of very time. little We that kind of business of bit end feel even Las kind that range, comfortable to with a of that flow of that end higher maybe range. general toward from below us. of XX% of the – expectation the to toward for overall. of locals may tried

revenues, I just job it, of do profitable driving get a of how to more business over running think we the from tools effective capabilities us along of at help profitable the perspective better the driving building that. drive revenues. that that the not think about And that. be which see think revenues trying is and are operators our Steve, growth, really and to I time do you lines will continue us we out for of will at to that Many good

opportunities for I through that, don't as in over kind to answer or frame kind of two much think see we flow would more think, to we the about year you, think And this the is how level. way but I that I So try reinforce around changing years. of just of it the next

Steven Wieczynski

type do long-term And maybe number. of internal that, if in your you you think a you where any follow-up get mind? guys in for internally sure the kind not target of looking guys have And the But have I'm terms goal margins? obviously on can of you not

Keith Smith

Sure.

do than we it is think it's today. higher certainly I

I tools out infancy Josh margins of a rolling to of margin good will business. gain various grow the the alluding and about last think kind sophistication couple opportunity will continue our gain do is continue we of continue executed are to years the parts that to with We've still in the over to are feel to to on plan expansion was and and That in that. traction. some of their see

good expand being to kind we to about So of across feel the margins continue portfolio. able

Steven Wieczynski

seen Okay. last a it's had question obviously little but may and those Aliante, I competitors it's this market. of assets. promotional or maybe Cannery be impact And And know early assets spending, in and to but maybe at those see if around can in question, the And you've a too lot then I'm with the much, the overthinking even also but around if put Palace is you've bit one and Orleans into guess uptick you've any I any Station whether and the or seen Palms, those New still on, to assets. money

Keith Smith

comments. of couple a Well,

the revenue business. with market. extremely First, the We're of own look more the you're performance we're of even pleased or and of more healthy seeing Vegas happy locals kind condition kind very of Las in growth happy with the market's good

strong, Orleans growth strong of You record at the the for or the quarter, results XX% Gold look Coast, I'm portfolio EBITDA overall. fourth

is it little of Palms business. we of here elevated advertising bit related is elevated? to there, a speaking, I there kind normal happy – a once new launching just and but with think I product. the with No, generally or Palace Gold generally executing aspect, environment. that's how think a mean condition market. happy We're I the business are maybe our promotional And very From promotional the fairly at we're So happy with it the of Coast. of again, we're

Steven Wieczynski

done. Appreciate it. guys. Thanks great. Okay, Well

Operator

ahead. go Thomas And next with will our today questioner Stanley. be Morgan Allen Please

Thomas Allen

XXXX segments? your When on good give by you how EBITDA you're guidance, us a can Hey, three growth congrats result. color about thinking little on more bit your about Thanks. think the just we

Keith Smith

I'm I question. that answering try to away to stay Thomas, think going from

we're think, global that's guidance comfortable give I giving. what we and

let so just that. it me leave And at

Thomas Allen

impact it? talk about little Can today? It the Is there a seeing worth shot. a weather anyway to you’re quantify that Okay. here was bit you

Keith Smith

Not yet, unprecedented in of up Thomas. like. any I along cold here mean we're Vegas there's number where in the as been weather, including happening what’s to and today the obviously with yesterday seeing snow and anybody weekends, Las and follows

of events, comes there's these in And so that some and of the the bit know we pent-up all business of little business weather some back. demand after that

quantify weeks how we're business so And quarter see it. we in rest turns and of form pent-up back the comes and demand the the wait the give be of certainly quantify we're in sort impact out much an start It we see maybe before to not before how maybe to of any year. prepared the number, but six today the going to of first of terms of a will

Thomas Allen

Okay. you. Thank

Keith Smith

Yes.

Operator

next will questioner ahead. be Felicia Please Barclays. And Hendrix go with our today

Felicia Hendrix

thanks. Hi,

if any have there? beating Blue So there's EBITDAR revise to Wondering you want you Chip. your prior chance for been cannibalization guys at expectation consistently

Keith Smith

Well, the year is over.

we that So think let lie. will I just

Josh Hirsberg

new It's year. a

Felicia Hendrix

Year; for I New of can the out I can my �� delete model? it follow

Josh Hirsberg

doing way Blue has not grow job the the of kind way of think We had. Chip least have good as extent competitive into off of it, – think of the now we I see. a they largely really The to of are this what we think managing kind Blue felt I expected at. XXXX. opportunity go to did we would think going today, it or that impact competition about that it to about but that we're having to base the kind going at to the essentially the that impact dynamics And we the was be, of are off today, business a to levels is to we it's expect what Chip is

Keith Smith

places. was competitions new look, and the question, came the impact we out declines. really really the the Chip. that your between business just talked fairness, of see we to worked other prior We able significant in was saw What we areas to this grow team other out that answer ground them and on expected competition battle quarters that Chicago of in between markets about the saw new the Blue In to do,

did to team the so picking places. of job a up remarkable being by other offset able declines And from those business

modest can feel I base felt, as been we it is, said, off So new think Josh levels. are impact a stable whatever this of competition base and the at good about grow at we we now, of has the

Felicia Hendrix

be timing? million, them or helpful. Yes, expectations Valley the and could if or then update the just of the that's you Or the is your Can upon don't I plan? Pinnacle synergy an $XX is? it or still update Is is that to just that touched addressing you those. magnitude what you Forge, for think – both And

Keith Smith

$X think Pinnacle And we million those of announced not When achieved the I And I that all, it would comfortable outlined. with levels guidance Valley provided. XXXX. we've million part Look, the to very Forge. synergies $X most feel say that transactions, – for and of expected was if we most, that's of we that's into were synergies be what incorporated the in those for

that I Boyd vice to through planned upside acquiring been and some downside. really than And slight we're have would have no the where out those you we Boyd the roll things there think probably say kind properties to through that surprises everything, and learned to the I versa. that better So surprises of and

all to that we're of to a trying required. the assets there think not I we've run, really only So but adhere the that best be to get practices we trying

We as those. upside that's that what creates time. go we so identify through And more

Felicia Hendrix

Okay.

quantify just was to And to last you. but prior it more the thank this, I and then Okay, just a question. in one address than wanted

I think to basis of, few XXXX. a something by improving XXX from XXX points margins XXXX to gave EBITDA ago. years you you about given had points a That was goal basis

you've with go. of of the you're kind points, into that well XXX XXXX now right? of goal by EBITDA margins – same-store and XXXX, basis So improved end to As really two years

of shooting could be wondering lot points something basis just everything. been has had XXX something the I'm So that a still Is is points adjusted that that your Or successes that higher? basis just XXX you're is initiatives for? given with you've that to

Josh Hirsberg

about first new infancy. I and think good Keith kind before while the way And that we in as feel that I we we we're underway described, initiatives that toward I goal. are about of goal we goal feel the about it to think progress have that are set think their our good continuing a would like going achieve to make

to we've I to start benefit kind we to of you're the the there. headed that of get see we where the over full the everything won't kind end last not want we of about at of generally. from improvement, communicating is And been day, seeing of work But the community terms investment kind before – to it everything years out look those initiatives, several think of in we're good margin the it always play feel out. going the

generally I the So some that's period trajectory through. of But get times flow margin a that, don't business the time. that and there longer say of will improvement doubt or our would over trend the we general be expected we no

Felicia Hendrix

that could end call you realistic to end this correct? by low seem get that the of year, of the does pretty It

Keith Smith

Yes.

Josh Hirsberg

our we're think goal. achieve track I to on

Felicia Hendrix

Okay.

lot. a Thanks Okay.

Operator

And ahead. will Kelley of America. questioner our today next go be with Please Bank Shaun

Shaun Kelley

my had I just number? just prepared But it. trying Hi, number in and the answered. lot question. a flow the for great. that square Thank Did you might free a expense up you cash give of the to Josh, were missed taking cash things I'm have I you that provided. interest remarks

Josh Hirsberg

Yes.

I number million million. So gave $XXX guess million than And to a book to interest less interest $XX about then basically say, – $XXX it's of I a cash was that.

between number. you'll to and you somewhere $XXX million, So million and million get cash a subtract $XXX if $XX you come out

Shaun Kelley

for of curious, Thank it's you activity of out? seen mean release this your seems was of guys curious some also in for picking in would another We any hear you what you pretty probably bit hard see then kind core you here like seen? was question have I promotional saw second about but have But what guys tonight, elevated that. or some quarter, anything regions. feeding of call business just there in I there promotional wanted if you to pattern it in comment regional Great. that any to just and And little change is be just it up that terms a there, activity that.

Keith Smith

of the markets, or earlier, it of around just pretty in No, bit here launch relaunch normal. about sustained I Station little any a not the think bit Vegas. activity Palms, promotional I certainly don't we've seen Las elevated of Palace any little all a in the mentioned maybe

So a a fond from look, I markets go people as in calling week wouldn't was I'm really out. out aggressive get of any call that's worth basis sustained little sustained it nothing but for elevated. time-to-time our nothing of saying, And there's or it on month, is, and a a that

Shaun Kelley

Great.

Josh Hirsberg

marketing be span see you'll philosophy focused in from to efficient and many of our changing. that's and within a effective terms continue with our more pretty that I of be to really I we widespread That and peers market we think hear don't seems generally. be industry. just just think And Shaun, reinvestment

Shaun Kelley

for me. Thanks very Great. That's it much.

Josh Hirsberg

Sure.

Operator

today And will questioner ahead. Harry Curtis go Please be our with next Instinet.

Harry Curtis

the is at Mississippi, betting, questions. Two think to it guys. is positive that sports In this do point early or quick Hey, too you tell? EBITDA

Keith Smith

not of as clearly, call Well, property more customers, in spending if little money, you front betting as is whole, the this what to none the about not at of grown of impact I some the look don't I a the the staying kind than sports. the of zero customers if operation the there. up and profitability know here yes, simply people of in vertical P&L overall the not book of a positive. that one profitability tick greater property. me, think but beverage food itself. of I'll the it the encourage maybe then, book, the new really, is and is of and sports sports actual profitability But but It's And as on longer, it But it as but in

Harry Curtis

bought if sorry, right. I any bouncing quarter? in first All know And question I apologize around the he stock various going don't calls. back the and then have fourth back been to

Josh Hirsberg

in Harry, we our in million bought and so we was said We bought QX we think far back remarks. that it have million I back, Yes. prepared then and year-to-date. $XX $XX

Harry Curtis

Okay.

of market. out keeping the So you there's nothing obviously

been blacked out? really You haven't

Josh Hirsberg

That's correct.

Harry Curtis

right. All

Okay. you had. Thank That's all I much. very

Keith Smith

Okay. Thanks Harry.

Operator

SunTrust. Jonas And be to Barry are that's one have we today with going more question

Barry Jonas

guys. Charles. to Hey start Wanted with Lake

if upside curious given, Delta seeing closer Just downs Thanks. or at to Charles. expecting roadwork substantial you're Lake there's pretty

Keith Smith

We'll The construction to certainly of No, if are area, it year for we're Sure. we to but actual does, happened haven't from itself. all construction the a but business now significant potential activity, the impacted roads the anything with seen date. roadwork. haven't to impact date in prepared just the we of better road be the aware being than the seen generally anything

Barry Jonas

that? this Great. Thanks. on Just And have then all? your does DOJ for maybe reinterpretation I'm your just one thoughts the at Few Act. peers the curious curious, all or alter more commented strategy at make me. of on Wire you any of pause

Keith Smith

the we're impact what within it doesn’t long anything. of and the borders walls we're our really state, on and Certainly that. betting occurs four got attention watching looked the is it it going it and we at as as sports studying But of around

sports doesn't, alter or it to plans move moving in pursue in Pennsylvania, believe there's our that states. will so forward And any number I continue. betting Look, legislatively that continue forward continuing we of to that other in and respect, states or

around down slowed hasn't legislative betting. it the sports So action

it the kind changed of frankly or business. our So about focus excitement hasn't opportunity our really that yes, grow to

Barry Jonas

Great. Thank you so much.

Keith Smith

Thanks Barry.

Operator

is that's with Jefferies. actually to questioner Katz another today, there be going go And Please ahead. David

David Katz

Congrats quarter. gentlemen. the on Hi

about Are back inside next? or what or you on leverage think just assume one do this internal or we I any consider it include leases adjusted just again? would we're forecast the deeper lease of Xx, outside allocation target, on capital we the those if year sort a about the to choices Xx drill next which to the our as does a so little basis. is that push to look, the leverage and think year and or up within So getting Can boundary, other I wanted clarify with matter, that between acquisitions

Keith Smith

remain leverage this target, will. think and about we I had leverage flexible how as a there, when our in and our think of while goal philosophy for you So we if is we've we if terms get you will,

company strategic is shareholders as as if create get our that that Xx. even right Xx or that for takes we and can priced make bit, ahead will then to there a go a to if value the long-term little it is long So to we'll we acquisition back up acquisition very a our and and leverage see path

in XXXX, Company. few made We'll had million expect $XXX strategic we that we're the buying acquisitions leverage additions, profile be at at have assets the think of that very end example I a were good to that, value. of XXXX, we it where but great to our spend great long-term

to that clear. being Xx we'll to And so just we above Xx ended next a Xx, next year be year and tad between confident XXXX or get the year

flexible. be we'll So

it it will higher there yes, being be Xx. Xx lease the great if a to will of go leverage, and the And to respect boundary. then also there focus the between But with be let we out We at end. obviously Xx that it kind end is that on within will otherwise will lower Xx up adjusted a of acquisition

David Katz

it. Got

to try we'll Okay, then. Thank model flexibly much. you very

Operator

turn over conclude remarks. would And back will to I this question-and-answer Hirsberg our the to Josh now conference session. like any closing for

Josh Hirsberg

the questions, questions and to there's you out We today. additional appreciate thanks reach very make feel everyone follow-up any the to any if ourselves William, and Nice, call and Company for we'll joining all free other available. or much. Thank the

Operator

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

disconnect lines. may now your You

Boyd Gaming (BYD) 22 Feb 192018 Q4 Earnings call transcript