BYD - Earnings call transcript Q3 2019 | Boyd Gaming Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Boyd Gaming Third Quarter 2019 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Josh Hirsberg, Executive VP and Chief Financial Officer. sir. ahead, go Please

Josh Hirsberg

Good conference and call. Joe. third to quarter earnings afternoon, you, welcome everyone, our Thank

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

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

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

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

Relations site available this Finally, also and of be live the being for call. shortly Web section Investor replay at today's will our after the in of boydgaming.com, webcast is call completion

to call now Keith? over the turn I'd like to Keith Smith.

Keith Smith

Thanks, Good everyone. Josh. afternoon,

another points. by Xth improved Vegas we also our continued the set results record margins year five segment a newest solid X%, was since led And our for these quarter downtown results straight quarterly combined On achieved XXXX. On quarter growth. third portfolio operating Midwest EBITDAR performance same-store posted generate local our improvement. basis to of Las the nationwide basis, basis, properties and for Vegas, highest our an quarter, Las we straight These Xth In another over and which In had third our quarter. segment, shareholders. of XXX were our strong in our its excellent properties a margin This consecutive quarter. South EBITDAR EBITDAR fourth nearly achieving EBITDAR

improve further sheet we're Across foundation. to financial and the continuing operating our country, deleveraging performances, strengthening balance our our while

top-end the leverage leverage During long-term achieving target. the total reduced our below of Xx quarter, we

time, through making expansion market books four sports sports app in the great progress portfolio. at entertainment opened our regional in enhancing we introduced At Pennsylvania. across with a Gaming our our we're our Boyd mobile Midwest, the same the properties offerings betting Together FanDuel, at leading partners

new across before, As customers we've is amenity seen properties. our driving regional this and business new successfully

leadership notable was all, quarter of teams it In by country. achievements a our across the

walk through operations; each this revenue and Las our and year. in help strength detail. Let's Nevada growth a EBITDAR with gaming seen our in of so accomplishments business delivered the Starting locals visitation Economic revenues. drive more we've growing Vegas continued far strongest bit growth their

consecutive quarter We and hotel in to strong of in segment. virtually the local also growth bottom-line of flowed saw double-digit through operational refinements Thanks incremental revenues revenue XXth marketing our ongoing the improvements the all with rate and room to gains our across in resulting our segment. in EBITDAR occupancy

Vegas Las our surpassing locals straight fourth in improved nearly margins for XX% Operating XXX the basis points, quarter. region

our nearly XX last a the Las locals margin than same-store three over up months, on the more is basis. years Vegas Over basis operating XX% last XXX points

continuing from excellent strip quarter set operations progress strong achieved are strong leveraging growth in record and and to local both make a driving well EBITDAR segment. gaming we at both record of By significant these Town Cannery. performance operation The experiences, our EBITDAR Revenue we assets. solid successfully across maintaining of all Las gains growth nearly as positioning posted neighboring long-term XX% quarter properties combined North quarterly despite competitive Vegas, and and revenues. Gold year EBITDAR, were growth marketing product. complimentary gains third And time Orleans investments the we In of with broad-based Aliante its an Coast Boulder third Sam's trend across in last the continued results hotel Eastside the performed this in as solid properties.

Valley. Throughout teams a segment, We're revenue Long-term job healthy population operating operating economy. to Nevada and our Southern enhance finding growth benefiting drive growth an throughout do Las continue continues the from ways local the to margins. excellent profitable Vegas also

underway every the particularly Nevada now gains by and and financial virtually construction major than strong the billion construction bright. hospitality, with sector in adding Southern for led activities Valley, outlook is $XX jobs in construction is across in projects leisure more employment

unemployment national average. and X% the taxable months, expanding the up is are fallen twice have X% last local to the Average risen period. force XX about while than over has same Total over wages sales X.X% more the weekly labor

to high the of visitation of reached over XX in X.X% near over up million Las Vegas, a year, last year million convention X.X all an time and terms the XX In nearly business last at passenger airport months. McCarran prior record, over is passengers the counts

performance economy in face solid of locals a projects. construction disruption we picture business. our row, future Vegas us equally The Las from remains the in giving on our is Nevada's achieved ground encouraging in where nearby of Southern the even confidence record fourth downtown in EBITDAR

in attractive driving record and in property ever downtown is margins the the Our excellent growth at renovations downtown with as its returns accelerating a the continues product as our space recent growth more resulting strong benefiting generate California ongoing from strong performance quarter third that options, casino strength updated and Cal The as particularly property. operations market. a is segments completely customer delivered in room than redesigned and well before visitation throughout new dining Hawaiian from revenues, to visitation EBITDAR destination in are the a the

pace central prime Fremont beneficiary at makes this year a The shy EBITDAR been on falling strong this traffic. the it strong last the has had third growing a of a quarter Fremont of of record. Fremont just area Street year's also pedestrian performance in Visitation downtown growing location

ahead, the track video Las Street Fremont of Vegas Vegas enhance downtown will give $XX experience giving Looking for upgrade remains significantly Fremont experience and Las Year's to reason residents compelling completion and million on in visit investments new upgrade New Eve. by for continued the re-energize optimism Street the this tourists A new downtown us complete, Once future. Vegas. Las a canopy

now time, of more will much the end inventory to coming same than development new be area. add XXXX under online. the the hotel At needed year, will soon hotel next properties two rooms By downtown

a added Vegas two over rooms the another lift by entire XX% years, nearly the for planning visitation. areas Another the downtown accounting substantial two hotel rooms. more and could In in expanding now Las next market be in projects XXX all, stages in the than are capacity providing with XXXX

The Vegas Las outlook for are bright in and well we market's growth. is continue positioned downtown to this participating

properties newly we to improved and combined performance newly at nearly results XXX the achieved X% improve EBITDAR more the new acquired in Nevada, continue of assets. again, acquired segment. of strong South Once operating basis On margins a by and enhance and ability to growth our significantly our than deliver outside Moving Midwest basis, these properties proving points.

all near we continue results time Forge to Philadelphia, and an margin. Valley record, with exceptional quarterly EBITDAR At produce

for and the and significant attractive of progress made for acquisition Valley asset opportunity the made year, us. an realizing over Forge operations this last expanding finding have great potential We the

the solid Park expand in in a performance and EBITDAR Ohio, improvement. new Missouri, continues had two efficiencies the property strong record, properties To results third delivered margins. another Ameristar margin setting Western quarter And the implement as Belterra to

of on shortfall the The the EBITDAR name regional operations. in Evangeline our and Downs of a Amelia Barry in open, weekend, operations. same-store Belt. Treasure Moving over significantly severely In IP storm. Coast the impacted to Chest, both by Gulf our mid-July, Hurricane properties closure Downs our the Delta over And of pair of attributable properties made to that cancellations summer, three customer were the landfall impacting was forced remained a Southern storms Louisiana while ahead

storms severely flood The tropical main Southwest last damaged our and level of at Southwest regional the Southeast year's has Delta from similar to Six visitation appears making out residents throughout Nevada performance. the Texas all both visitation markets, persisted of trips and our impact the we into spend highway to our these of deterring Texas visit long. have later, weeks caused Imelda remain Across results to some and impacting as experienced would October Louisiana. strong be slightly have been healthy conditions consumers storm and same-store to Louisiana ahead flooding impact Houston Downs. from to what Absent continue year

us continue we to will that progress same, position for future the make initiatives executing companywide At growth. good

us to competitiveness rest properties these in the Network. we and nationwide into loyalty Belterra effectively example, the the business further of Connected drive player nationwide reach our of while B and and the will the third Ameristar of our four expansion properties. enhancing allow This further Ameristar portfolio, properties appeal For Belterra program and quarter, the fully integrating between more expanded

We're making good throughout our powerful regional our improvement. amenities are our our teams margin we tools addition new to FanDuel analytical base revenue marketing marketing supplying growth operations, our customer across driving implementing of And and properties and continue with sports progress also growing and group, expanding enhancing capabilities new and the operations. operations the our through partnership through profitable betting with

FanDuel of Diamond Belterra little app launched in over month FanDuel first Chip, Blue A Worth we our we resort. Jo Jo betting mobile Diamond four Midwest, opened sports a partnership, properties gaming books Dubuque, sports and board in July, late betting later, In introducing state the the Pennsylvania. the and

still so we app sports market what it just over taken already mobile with Pennsylvania, September. While in lead In seen early, market we've state FanDuel the half the are for accounting is betting a pleased has far. commanding

base, more is FanDuel of And in the optimistic betting our helping seen and at in what and our app performance their in properties. are increasing an sports in Indiana. of ago, launched there expand we've of these customer quite Jersey, the Pennsylvania, books New to visitor on mobile are like state the Based previously customers in traffic and each we States new just new its about influx Pennsylvania hours Iowa Similar prospects Indiana. And Indiana to driving Mississippi. come

continue enhance Sacramento, nationwide near on we Rancheria California. existing to Wilton properties, While further project our expand we our working also to the as making continue we're progress presence

project. Bay for dismissed game challenge resort will resort month, closest We this significant capture Northern to California celebrated Sacramento in Wilton resort Earlier the milestone share key when the potential a of share and court significant tribe's this legal to this The positioned the the a of Wilton ideally both a excitement the to as tribe South market. the be federal area. a gaming

finally new coming significant growth will a allow of opportunity self sufficiency Wilson it our represent years. We achieve in it its vision to are for confident the will tribe the company and

for accomplishments company. the skill and of in conclusion, strength ongoing the Thanks performing is quarter our the quarter our So, operating third portfolio teams consumer, was another of well. of our to nationwide our

While once EBITDAR at augmented improvement South, properties, strong and revenues, we same-store geographic grow while experienced and our to across demonstrating diversification. growth continued the performances the we these strategic newest new some again weather challenges with EBITDAR The value continued assets. margins, of with five in margin same-store gains

Our we to portfolio how in progress of committed Xx a capital our are is in to we and shareholders. Xx taking approach excellent our generating substantial making disciplined target cash this we achieving flow core leverage this and approach for are allocate component of is that regard. free A EBITDA and long-term balanced

of returning reducing in successfully Achieving debt with shareholders. maintaining target long-term third continue leverage on capital below During will priority target we leverage reduced leverage range this Xx total reinvestments is next quarter, repayment selective mid-point year. and we core and focused our we to and and below our balance a the business the to are

disciplined in will We our remain and of allocation capital. the prudent

invest existing believe appropriate only we While an opportunities will to attractive there do when in these future business, we investments are offer so our return.

an excellent to for approach over remain now the to future position our I'll Josh. to value. we you time call free and in the your a leveraging is execute flow creating cash for company shareholder to turn today. well-balanced Thank Our committed long-term

Josh Hirsberg

Keith. Thanks

third track. the Southern our revenue, on continuing properties. well margins Our impacts operating to to with integration EBITDAR the acquisitions are grow performing during same-store properties our despite weather quarter recent delivered another teams solid And of performance and these

In was adjusted quarter, the at terms end leased X.Xx. was items debt to and leverage quarter of EBITDA leverage from X.Xx

debt reduced million $XXX the Capital investment and million $XX by year-to-date million. approximately expenditures during we quarter, to were the bringing million. quarter $XXX $XXX year-to-date During by

third the in of lower was timing expense expenses. Corporate the driven by quarter certain

at and quarter. expense in We We a full in $XX.XX an dividends first Through of we for expect average meaningful approximately repurchased during per nine to $XX shares million $XX not XXXX number year corporate of the months have price third paid this share. million the be shares $XX year, did purchase million. of

coverage of for In lease rent lease assets governed the our by master for X.Xx. period terms the was LTM the

midpoint are on we target mentioned, Xx to reducing leverage Keith focused of Xx of As EBITDA. to below our range the

We flow we business, Once and year. free whether this projects reinvesting free pursue level deleveraging Currently, investments, capital achieve our next expect leverage we to to those cash in the balance use our reach shareholders. goals, we'll focusing sheet. flow returning our to are cash highest our or returning our

Now, attention to turning our the guidance.

$XXX our we noted consideration for million impact full weather As year of the the million in to third our should quarter dollars. Expectations year $XXX take of release, reaffirming million. EBITDAR are guidance into several

remarks. now that concludes take our the Chuck, We're questions ready to With audience. any that, from

Operator

Greff Our Please question [Operator Joe today. session with question-and-answer come will the JPMorgan. begin now will ahead. from Instructions] go We first

Joe Greff

set My questions relate guys. of Vegas to in locals your performance afternoon first market. Las Good the

your presuming macro rate that Given growth through market factors fairly what highlighted? were performances, I'm tell talk the to can a The you see exactly. given you in you're market, sustainable and top-line quarter, locals growth rational. that isn't is the in about revenue that But, the as you us going flow the where that, question

out guys the at obviously Coast, seen, performance is you end the in product of guess you've is XQ, the about refinements to the And locals offerings. Can through And in something think recently, you're you Gold in street the you. across this segment? then, month? of last market from impacts I the the marketing to Asian sustainable some is, invested you my then, that talk the given stood that some one that September, competitor related thing obviously question you've more that that us that was in at made flow Thank

Keith Smith

significant generally was a terms were and speak. the significant going were closed as we already So, haven't to And about last months, to in any year the defections significant impact gains in Asian for able quarter restaurant they've we talked up to Coast of new maintain us. a remarks, question, been impact at think good to, when and quarter. opening We And picked were the on going on across street, maybe six that we last those isn't gains going feel, starting I we've I have seen any competition they your had the open with customer a so think we prepared our Gold felt. third

that really I the of rest nothing level prior property, of the out market normalcy. elevated in have continues some there. And promotion to So, be generally an returned to report your who in outside Gold is has but think assumption the across degree from market of of coming the that rational, Coast correct of competitor to being

couple about the through years and of of this capabilities, doing during overall right. with talked think on You're the not our analytical efficiencies more flow an great growth implementing a had the team work function new job, on We growth. customers, and tools, just new last revenue driving just about revenue giving the focusing focus over I We've marketing things to better tools. team's leveraging just quarter, tools, profitable that's continued up the new

seeing seeing. this Vegas with would the very And future early -- that that our economy quarter. not to we're on nothing Las We're revenue that change going seen that we're the out we've of and growth, this a quarter the think so, very quarter I in And make we're metrics there's past performance I'm the view but October results. with kind pleased on pleased prediction and go

Joe Greff

specifically follow-up, of from just impact I the referring South? slipped more in or in down the Great. there on Josh, that end, you a were XQ little sort at very quantifying you. weather EBITDA was and in a revenue on a maybe then, to some be you Thank could hoping quick And specific bit basis? an we amount

Josh Hirsberg

Sure.

view our help to up. of I will a you couple year the So, comments how made with end of

kind dollars is to couple means million and several the suggested the weather I EBITDA, take understand couple, two. we several account that was and of more into consensus where means for a in than you us think year several which a generally should we means

or probably there, million Joe. million $X the walking several you math means So, just $X through

we a expense just reference, end then, will up where And corporate well. think as

for we we weather answer should short think to the don't up. to million have just that was your taken was questions, $X it really that the So back because and an EBITDA $X consideration about impact in think be to make million time of year we

Joe Greff

so much. Thank you Great.

Josh Hirsberg

Yes.

Operator

Hendrix go from Our Felicia next come question with Barclays. will ahead. Please

Felicia Hendrix

lot. a Thanks Hi.

is for for look the sense potential any expensive you more the of gears Josh, And this But the Keith sales and angles. asset I calibrated Just strip gets if Bellagio, were because a In given at may -- this sellers sense other in from industry assets change from among you is just think I'm you both getting know point. different or by a wondering assets? both switching certain but recent M&A minute. MGM, and words, the and everything do Bellagio those wondering, I anticipate

change I'm lines, those to portfolio? you if industry could So, REITs for if assets, just get you your particularly the wondering you current looking And having comps estate higher impact there certain overall. are your along think an your for view diversify, multiples those if does new on that anticipate real

Josh Hirsberg

is Felicia. This Josh.

perspective, our pretty on I we've views current on estate. real think transparent our from been owning

Vegas our not of to terms of it strip. quality perspective, it Bellagio being assets is, reflects And transaction, that quality the of Las from it is. but relates Bellagio the MGM think on in only asset as I especially the the also

the our it of view. really short kind change So, is, question doesn't answer to

incurring we it associated where be the that or ultimately are the any traditional of slowdown in would we want we of in to leverage leverage, about real more with there event a were leases cycle, cautious impact I whether fact, the going kind add In are business Unless anything you could that? to forward think that, given say sort. leverage

Keith Smith

Felicia, is Keith. this

within possible it's Josh paid us, recently and the traded nothing really impact have our continue it, doesn't have were and well, the it. really our value and will presents expectations, to at estate has certainly but on doesn't that think owning for look views to assets own higher said that prices impact I real view sellers strategic changed our the own other

Felicia Hendrix

helpful. the and weather your getting said, the just you had in up, consideration your impact That's And it guidance didn't taking can't And about change back Okay. it way, make kind of into think to range. Josh, that quarter. you this you

the So, of what high-end gets you to range? that

Keith Smith

Really, be get of Yes. it difficult think the to range. high-end I would to the

who consumer and take business. where $X an right. our the to pretty the really health a was is context for to impact, the beginning weather all where still people that we provide we that year, that now provided the corporate sure think the that impact, expense we guidance the we recent a obviously, really perspective they adjusted at But, I our And and the of headed. around, business, segments and comment about bit was was it from from like million folks of business when were a we more was better to try overall of of feel trying get thought that is to information underlying of good to the focus direction have which on kind folks little consensus feels make $X million

Felicia Hendrix

Okay. Helpful. you. Thank

Keith Smith

Sure.

Operator

go The David Jefferies. from Please Katz next question will with come ahead.

David Katz

know into contemplating? as cash we out not but I forward guiding bit you your in we a Afternoon, there? just qualitatively and just should What be for to start the can little may be contemplating going about CapEx should Hi. about to generation beyond look 'XX be ready and think gentlemen. talk issues years, if you I wanted we

Josh Hirsberg

Yes.

process. So, David, we budgeting that first a are now just caveat, through going our

we'll to much, will results. this other of once we that's of announce us guided XXX But quarter would that's we'll about to the targets be of that then probably think To pretty us leverage it. that's through achieve relative or our of of Otherwise, And to thinking to the capital think I share is the for we truly we So, evaluate returning assets what CapEx plus we've then generally get our an to really investments. for investments leverage our have But, I those projects process, around, but the we we neighborhood. find make minus, CapEx identified XXXX. kinds form and repurchases. should opportunities kind returning year, I that, our opportunity required. extent company we haven't those with kind give we think about dividends things to justify capital we've to in what be new XXX have people have defined and target. in that until to we guidance closer as The other or -- or Again, of XXX projects that shareholders, for had a fourth get

David Katz

I just So, as XXX is we to far forward are… to so going sure for have any neighborhood want XXX this what understood, a as on good I based make or year benchmark

Josh Hirsberg

That's Yes. fine.

David Katz

needle just sports I is to clear some think that. then, ask I it time we Boyd. actually down and profits to before about betting. XX revenues wanted within us, months, the realistic, wanted Okay. be you for may period betting, of to about months, How and that'll about, what modeling And sitting the about move can offered XX next, commentary the sports be for some

Keith Smith

take another next comes the that, I you year. late innings, intended it's think waiting to no still whole We're out And to settle year. impact for it it rolls and Well, this it as early probably of so in the to seeing the company. pun very thing. financial the and It'll when in

David Katz

it. Got

Thank Okay. me. for That's it you.

Josh Hirsberg

David. Thanks

Operator

Carlo question of Please Deutsche from next come Bank. ahead. will go Santarelli The

Carlo Santarelli

reduction much And quarter year kind obviously in you kind process then, into kind Good the terms bit factors first and guys. little this repurchases you thought of of activity that of seeing, end. of are? you're discuss little if of a kind of towards could motivating more of share that any be, Hey just have the the would other factors guys consider guys the leading anything my just, there's afternoon. pivoting XXXX. sheet a is what just more bit of into that objection balance you a relatively went defensive debt what to gone there being the that's on But, if steady not decision some to throughout seeing or as of I'm from what most you're

Josh Hirsberg

don't first take Keith, not in. definitely in pass the in I'll the it anything. I we add economies then operate want think and to business you seeing our or is we're if anything actually that we're seeing that that anything

order from the not and positioning getting the that decision future but economic happen some of it. in levered And to before And it's and strictly that point will we de-leverage than at prudent with lower to recognize is we cash think are feel I it some be where think alone kind business are that perspective decision, don't the cycle, there slowdown to our cycle other we've best of to will the the it's of it's think of best flow. a a the then when like as we feel talked we for the know, company we end will house chapter, in therefore, And our an be to respect we where point on moving in free cash we which next end, uses free kind about that. today. but being we in using at flow

Keith Smith

Yes, look.

is to we've the any Josh I or us have all business said, in not think pause hear trends The thought the to that trends which October, in early seeing important to long. business we're second a any is year seen as what where or it's reason headed. what results, the give

talked feel times just very are we in so, leveraged sub-five kind to We've now and the level of a while about the Xx having Xx a in that we so business. range. we're now for And about good range

subtle say fours, sure late being But it's little not Maybe very, want be we're cycle. going a said, we'll a produce we'll forward we you change. And feel like very to just That's mid having below to So fours. feel lower we're change below and bit is in make positioned a we of instead a leverage be long may be little X.X. a economic mid as significant to continue well all. results strong like probably prudent. to It's

Carlo Santarelli

guys. Great. Thank you,

Josh Hirsberg

folks to I one was that just other help add understand. comment going might

I as a think being we below in being, think level are with. where times reflective today, we the is we think want else of environment once I four kind we're world I of level equal is achieving achieve leverage of to being our a is and we I assuming the level, stays But, will our that is is that comfortable evaluate it economy and businesses. But today where where be the half and to all wants and is, run where business. company think

Carlo Santarelli

of you funding would that guys in help of running up to but degree, something when think the mistaken, recoup time the things $XX it's over time I'm sense and that be million that? would the know, obviously already provided for Do Great. And will. that have to million you've anticipate range. number, a then you Josh, to is of are you by if not it's reasonable any could small presumably kind thing one And some you $XX

Josh Hirsberg

Yes. I with, in but, financing for yet the terms bit good don't environment on market the but financing think until we and is a the opportunity understanding little an can provide will that of color us. get that approach we that further

right. You're

Carlo Santarelli

less weather to number adjust to people's you're could, be, if eight that quarter you the that the think saying hurricane I of obviously in in ballpark consensus the prior for into XXX the guys XXX. correct? i.e., and we impacts coming about the Obviously, housekeeping. that of kind just Okay, XXX. Like If tonight then is, I consensus guidance, that heads within one of is the great. the guys range impact, then, and in think And some storm should ballpark. was experienced guided is somewhere XXX and the result just where the kind XQ Obviously, is you of

Josh Hirsberg

right. That's

adjust correctly we expense saying for and the and close we're that full QX a a to $X you $X whatever which to view reasonable model changes corporate million, what million year. from reading in is where you're other think I be consideration have, should needed for us you for in take number weather,

Carlo Santarelli

All much guys. Thank right. very you

Josh Hirsberg

you. Thank

Operator

from next ahead. go Jonas The with will come SunTrust. Please question Barry

Barry Jonas

XX. just were up Hey, we talking thanks that to And point, following corporate previously on think I guys. XX

Now you're reduction margin if more really thinking XX, of the your initiatives. just that's timing or is enhancement part curious

Josh Hirsberg

Yes.

kind to It's manage that. the a So, really going I number XX up so XX feel expenses for and think is some like view kind not continue we've reflection to And, don't got trying to good of XX. it down to kind back we'll over we expense look of we'll corporate do time. number, controls the obviously on further continue the of reduce XX of or we and to ways

Barry Jonas

locals touching results. solid on just Then Understood. the through very market, solid flow

if you've early your have if, times sense curious, changing color share you about of have historically maybe said that's I wondering share sort market might where any but any market, quarter, know for Just the market underperform at been? the you'll

Keith Smith

the if think are the numbers through at for last out August. Nevada So, you most look I three only months,

market. it maintaining both say numbers a share those on share, generally markings at basis, XX market or tad. X-month XX-month a think basis, from growing look of three maintaining a months basis on months a as market growing our But at with let's we're you last our a If last on to maybe

think So, we're performing. pretty with we're pleased I how

Barry Jonas

last these Got going to Boyd is it. impacted Stars for Flutter, be group merger? how And by me, one

Keith Smith

having larger, of the the by of stronger partnership there positive we very So, Flutter's, owned having look, a at always FanDuel and strong I end day, in for -- the Boyd organization there. a brand having think terms viewed

I access it and just brands Boyd, to think capabilities to more more all everything. more just and gives upside it's us was of

So, a positive I us. it's not, team all and it's think the it's big getting on done deal I and upside for that congratulate Flutter

Barry Jonas

Great. Thanks a lot guys.

Operator

from Stifel. question ahead. will Wieczynsk Our with Please go next come Steven

Steven Wieczynsk

Hey, afternoon guys. good

guys, because could into or ramp impacted to we are So, sit you could guess, that whether look be we up, Josh because might as guidance like can of markets to potentially to or at it's and think going that, portfolio, of property competition there spending you I any promotional XXXX, watch to and Keith, new any your try that? asset anything as said here but, look or you need improvements not I'm competitors

Josh Hirsberg

can In we of. terms XXXX, Not that really. not of think

Steven Wieczynsk

months know perfect. or them your then, weather be, ago? And improved also talked are maybe like And in a stronger signups where point little that, over day, to stay, metrics connected at kind well. about past metrics those player guys months of of visitation but have much where gotten of you I anything any talk in expect length where that's unrated of of of or normal would then, some terms ramped you as the six as from Keith, a were couple actually about, B bit terms Okay, gaming whether of how key this pretty

Keith Smith

Yes.

speak So, that. data I so the can't didn't have B I on connected signups, to

exception of of As properties I our in prepared B with now out the connected rolled my in Valley Forge. remarks we said that, all have

a -- getting just to after do so, of with having within allows to cross-marketing job portfolio. those marketing year And of a And better kind that that and we're owning the point us entire assets. pleased

in of trends, takes terms good of I lot about quarterly a Las business in have a know Look summer hold. that. so front you're seasonality that to in, that speak able the In Vegas quarter to of me data talking be I don't

I I'm I'm sure to can be regarding don't really so, have not anything And I question, that helpful now. can looking, so I speak right

Steven Wieczynsk

it. Appreciate guys. Thanks you. Got Okay.

Josh Hirsberg

Steve. Thanks, Sure.

Operator

come question with Instinet. from next Curtis Harry The ahead. will go Please

Harry Curtis

to to to influence X.Xx it move question that not guys. to on all that of we're particularly months leveraged Xx decide to to sub-X? there is my X.Xx, evening, I that on a the in then and a XX balance Xx back okay, it next recession, Quick even guess comments given is, your why if I follow-up Xx you that XX that logarithmic question months happens achieve still is, reasonable at probability Xx. sheet is my is if any traders the essential goes you once closer that guess leverage. Good on

Josh Hirsberg

a good question It's Yes. Harry.

continuing X.Xx we today. to even company the right that where of Xx the for we and is it and investment being with and if where the ultimately, is that run once and is repurchases I share to I is level, with we'll then there world have is think the we're to today, we because it, between where that potentially alluded evaluate struggle think economy capital level business it feel kind given achieve comfortable level and the I dividends.

then I it. have reevaluate isn't place to we're healthy as the is we'll a in world, think to the as that extent today, where it

hard to I some seems kind takes I let's that it it real the is it. conservative or about X.Xx thinking today. think that just a of a how we have of, a context for of think I Xx, gives tell all we're justification leverage, we folks but that time person, say I'm it but, generally seeing that's kind And around extreme, an bit can little think hopefully you But

Harry Curtis

of you most a deal callable fair of could down, What pretty some you much way you is going that likely savings that a think down get you I'm sense enough. think of do do just And in are once refinance to Okay. how interest refinanced? take bond with have and that becomes May. that you the to to substantial gets That's most trying that? your come Do or

Josh Hirsberg

Yes.

and our under is first think, of maturity have I plenty credit look, availability XXXX with of facility. facility credit So, all, that our we nearest

million. We have over $XXX

So, company. we as have plenty of access to a capital

down I callable think [dips] attractive maturity [ph] I an it's and to today XXXX the again, its terms in of level. in think May, and

favorable and I be evaluate certain us We and approvals regulatory got that. -- expect would place to honestly for evaluate was all assuming and in kind approvals will refinance it it quite received a us. we of we the continue day got So, once to market every

to time down as it expect of markets that from would now the I So, as any long refinance until step kind cooperate.

Harry Curtis

Last to biggest your of question. engine maintenance is a growth are in is I'm is investment What what The project sense EBITDA in a CapEx ROIC that positive? XXXX, opposed going actually be to get that much XXXX trying for of to how as growth engines?

Josh Hirsberg

Yes.

then capital kind worth million road million calling not generally we So, that of And I that's segregating. or of we think think to the out in got could small adequate targets, as of of kind leverage $XXX capital we we put it kind point achieve where to the extent generate $XXX the potentially, project again, largely as can, you they the maintenance capital. our an mentioned think before, To the return. then assuming numbers, would we I

us, that's a be shareholders competitive to larger to through returning have capital generate with they process. But, You go would a could projects. to we we and see to get level have and have return the able announce modestly that to

that for us going really XXXX. things sports generally, what then, time opportunities course, business to on. towards we So, integrate organic going businesses betting operating the way think continuing our we of because to growth, continuing opportunities into we and still of forward, that have think believe operate is growing our made end do well is to the about ‘XX over quite still it that focused I most that nature. efficiently as existing acquisitions as And have we we're honestly, of more more is the efficiently But

Harry Curtis

a, really for could agitate have close quite that So, are I you rooms, months. always to -- say I'm like in shovel that property next ground your projects there the the adding maybe are XX they're within just returns are But, higher that getting wondering be, agitating money. -- a if managers accretive mean, that hotel

Keith Smith

what we kind type what may large look those could Yes. expansions always of This is we're of analyzing growth think, come portfolio, where look like. Keith. dollars Look, with may organic those from the like, and

haven't a ROI profitable We done we analysis haven't and make rank can so them and first. projects sure that yet thorough them most do the really we prioritized

of it's a for conversation premature so, kind And us. just

Harry Curtis

Okay. ahead. guys. Always Very good. very think trying to much Thanks

Josh Hirsberg

Please Morgan with question ahead. come will The next Harry. Thanks, go from Thomas Stanley. Allen

Thomas Allen

afternoon. good Hey,

So, for me. two questions

revenue highlighted remarks locals your in in quarters. Keith your the quarter first, growth market accelerated and a you The EBITDAR versus how prepared prior

that. Just anything growth? And this acceleration to anything, we are should expecting of you expect and like accelerate driving continued level

And feared thoughts outlook second circuit any question, on kind disruption and downtown, there? or better the Thank you. than of worse was the on

Keith Smith

is very narrow. and to I to a the great hard than hard job, but roads clogged Yes. produce are continue like get produce record did it's was worse did your it's certainly to we results we either. than always disruption. station. It the because the predicted. results, construction, I'm to mean as that disruption know narrow we not I if get record tough hard there's to down Main It's terrible, worse very team and Certainly disruption, The roads disruption, circuit or sure the predicted. It's better better there, it's say The not it's the downtown, to think Street to are California.

traffic used is job. did a eliminated. we the get pretty so, much great teams walk And to the But

short the answer we guess expected. I what So, probably is

management job. I to respect The leadership is the growth team the in function in With locals just think better acceleration it's market, of doing the a teams. a

QX I the the think good last and seen place the of saw take the hold, We to productivity out higher the database. ADT. good put visitation locals we've over in than we've in high-end of in some market of tools a year QX seeing beginning good and

particular just that's special -- nothing I by the teams. quarter. call was out There's in during think performance it the yes, leadership So, it good a that I just can

Thomas Allen

Thanks. What's ADT?

Keith Smith

Average daily theoretical.

Thomas Allen

all got. Okay, perfect. I That's Thank you.

Josh Hirsberg

Thomas. Thanks

Operator

Please Bank America. question Kelley go next come Our Shaun with will of from ahead.

Shaun Kelley

afternoon. good Hi,

asked have been my and Just questions most of answered.

two Just ones. small

to betting driving works? you how in, revenue some sort kind us the us the online internet that to of traffic can results particular. a the sports the some fairly want we're what here. of strong all, of Do lot some into, now element you've in agreement an results, sort an appreciate occurs, have obviously properties. betting economics. don't sort the were play just see talked encouraging that get guys sports in But, places First remind or I give you or Pennsylvania better Keith, of really of in bit I little you us think market or across sense of past understand presence mean overall for of to about Can at directionally but it, Boyd's share out specifics level baseline at a starting access get presence market of early FanDuel some a that least participates Boyd there's how contract probably, help

Keith Smith

Yes.

States the will be I that different and the reasons. perspective, say deals online an from can are, variety So, of in a for different

or a call what standard And revenue the standard we In top-line not net a share contract particular, on a PA in so, exists there's approach. that I'll that exists. do in platform based

get different -- again we piece PA. for land-based business. get do Those And the then in in economics for a from are the the land-based online we the business economics So, and Indiana of Iowa that once business. different

deals the somewhat different, And revenue do so, the share of stream, are of success in a the for share that but reasons, we variety in we business.

Shaun Kelley

Great. for sports correct? clear, And and betting to that's be for iGaming both

Keith Smith

referring in was product. casino to product specifically not because betting an launched casino haven't referring online we to to sports PA comments, specific betting that sports was an online my I in

Shaun Kelley

tell would Okay. it. Is Got so. that whether I I something you us assume as mean, the can not offing? or in

Keith Smith

I cannot divulge we are that where process. in at

Shaun Kelley

enough. Fair

the technical one. just EBITDA your The the of adjustments back just adjusted Josh or a earnings you piece. other bridge kind that get question have is in kind of to to

typical other is what, that just have expenses just the come have say, of to roughly down a left do numbers You that related directionally of $X just you too side year-on-year, million much is you sort and just, that, going can but development in is lot to what or because expenses Wilton that right on now. kind related related not there's merger pre-opening or

Josh Hirsberg

is last it it's of In been mean larger, to that the year, the half Wilton Valley Forge I around about in the due Pinnacle and, we over past, think acquisitions largely executed past, I related. and the assets. the

kind through of what's running that's there. So

Shaun Kelley

it. Got

So little and that of maybe rest. a for residual Wilton the bit then

Josh Hirsberg

other small of downs project. and But at then hit kind within something even still bigger be up have are transaction, done. it's transaction of in We've of recurring then within definitely property to kind it purchase a little price they a year kind write of the that year meaningful. any interesting. bit the acquisitions, all that the essentially will that last It's in the the but and is of item clean come kind not you later Wilton typical then, or expenses accounting or done Yes. related line item the there there's And

Shaun Kelley

you you guys. for great. it Thank That's very Okay, much.

Josh Hirsberg

Thanks.

Operator

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

Chad Beynon

inflation speak with negative wanted a Absent low we quarter, but won't those enough trying South Thanks essentially flat. sense if wage out the you coast afternoon. ask said taking the XXXX question. A is, it's Good quarter to market pointed data, Hi. of to segment. you BLS have inflation have seeing of the this and that on we can companies the respect flow roughly or in for and just revenue, growth and Is your see in the sounds to number Thanks. that wage for impactful to more my floods in like Midwest in was business, that flat markets get kind the of you're where in through are? fourth expenses that

Keith Smith

Frankly, every limited is with significantly trying wage employees fill simply jobs people we not bigger is Yes. It's inflation. nothing No, issue business. low to body issue we to one for it's each bigger fill fill at a of us. unemployment. those properties There's wage fair finding enough find issue, the impacting a extremely our I to those, issue, think and have there's that's analysis. that's have of Well, pockets the openings that all probably a the the

And it's so, a concern. yes, not

Chad Beynon

Got you.

Vegas, then, calendar excited NFL Okay. about And the ConAg, with convention in Thanks. draft. everyone's pretty the XXXX,

a is Orleans at benefiting move if it the that some strong With Legionnaire needle and kind just You to up obviously could of big up, as a Thanks. in see not of be? operators have the at of your guys you a demand predictions. stripper more a XXXX, rooms tourism meaningful piece quarter RevPAR property? projected opening the some have as Or talked to about that tick this, is like in XXXX you

Keith Smith

the the strip strip and closer rates, Orleans we Well, certainly, the and maybe probably a Gold the to better if Orleans. than little up strip, off the is at do actually of able leverage to at is the fills which will distance the same their frankly, Coast,

with hotel rooms at a We Orleans expanded space. just XXX And at with convention got space little actually some XXXX the rooms and Coast the Gold great there you've bit. so, the convention

goes there's Gold the benefit at So, that of the Coast. up, a see the and we a convention the and at extent strip yes, to Orleans calendar robust if, will lesser

Chad Beynon

Thank you very much.

Operator

Susquehanna. will question from Stauff Joe come with Please ahead. go next The

Joe Stauff

Thank a that, think have of you. comments sight way your a in I you mentioned from clear like the Most maybe traffic of What's in answered to right just, my or army that the Corps function of engineers? of some in that? you particular of nature that a to going questions had floods Is when on Do casinos. some up? preventing that line been Texas about could obviously, is have basically were but your

Keith Smith

the Louisiana So, is it the Houston, Charles issue is the IXX is, specifically feeds market. on Lake of in which outside feeds into

total is Delta lanes. of So, each downs. There lanes a it impacts specifically way, eight there, a so bridge four

I think two bridges. separate

hit reduced bridge. of are that and lanes loose. barge broke They bridges bridge got across lanes traffic was One one to so, that have by those closed four the a eight of of traffic one

outside of And you repairs You best that busy the can if completed will of is it assume very that look bridge of QX. Jacinto reducing of four be lanes be public up, to impact Houston. The wanted information end those -- for a exists that yourself the of to highway it's San lanes. eight kind will

Joe Stauff

Okay. Thanks very much.

Operator

next from will question Our Gaming. DeCree ahead. with come Union go John Please

John DeCree

color the guys, so for far. Hey all thanks

a wondering composition if talk bit was wanted could locals downtown about picture in that of us little revenue one more about in again. you to Just I the for segments, me, give the color growth. the

broad press was slots or but of or revenue, any pickup segments? a you're in where in performance some seeing based tables it notable across there's maybe strength anything non-gaming those mentioned the highlights that release, if in you've think I of out

Josh Hirsberg

Yes.

bit of So, John, confluence is we've a than of is, better information non-game, may hotel. Number kind to I a of a a as -- able but on thanks couple little different terms is couple of this, to some because non-gaming consumer in factors. more been willing for see spend stronger just generally what F&B on a one well a strong, have the Keith of question. both as

that regard aspect that drive us naturally of demand is that So, helping the a some that's we've business. in consumer providing got

yielding rooms, Secondly, we've paying how hotel customer putting we those our at cash better on a I and execute in better so or be customer. think rooms, whether gotten we're they gaming

pretty performance drivers tools our like of side we from better so, the analytics F&B in our some terms better kind we've improved particular overtime. that non-gaming business. of management the EBITDA hotel as have seen And and hotels on in good execute part yield of And also, around of from the business. and revenue away and our in And

pocket So, spend money. the hand the I consumer seeing they're of across -- we we're the It's I and really and that one driven and And it really, of are kind not portfolio. think building it's is willing different, then our to -- capabilities enhancing, on of and the on one it's by other by how the think this demand demand. in

Keith Smith

share is That and Yes. that our slots. look the side, split the Look, think at is mostly non-gaming, by lion our say on gaming you remember a I driven as let's gaming between of gaming revenue. business

most from So, is coming slots. of the growth

Although the if apart. in not you look games slots in and growth are table at year-over-year, the growth far that percentages

specifically it's you're business. mostly So, slots. about But standpoint, in I'm seeing a locals. talking both of good not pure coming out the of elements dollar growth from

is big, driven in You the in look people I big also rates. more saw in and we people a in good beverage, more on rooms, as and building by pickup hotel. And obviously non-gaming said, the which food side, and the increases occupancy

slot-oriented good in in came side where of were that's lion's similar also business out that a also. and you from. share of gaming As mostly rooms saw revenue growth so downtown, food business the the growth comments, look we the But, of the

about I it's probably much as coverage as So, as have.

John DeCree

I you. That's me. helpful. for That's all Thank it. appreciate

Operator

from Please question come time for with one ahead. and more have will Chinchilla Bank. Deutsche Ricardo We go that question

Ricardo Chinchilla

Hey guys, thanks for taking my question.

to do anticipate So, with done proceeds cadence much from the like if how gets the the million, afterwards, give XX Rancheria, to could refinance us guys proceeds? of the you and get Wilton a regards how after much you

Josh Hirsberg

point. It be into we're color Yes. the at depending We able financing know appreciate this that. provide on will just be the don't to enough to just far not on, question. I really

so, the some expect which get that we some of further And those next maybe this of really actually can we bit first provide now, don't have But maybe cadence until make closer a to get pulling when quarter kind funds we progress, would to the that we the trigger we or financing, just time kind year. along, on probably back. as color get as little of any be right will of either indication later on year to

Ricardo Chinchilla

area that Perfect. from probably you defined. odd But that that to and after land is one it's the get proceeds will finance is, be the the the

Josh Hirsberg

just the land. I I don't on we know. about really, million really mean don't think I $XX spend we

think I being to for rest to was, it the been advances had of financing ready the it get and construction activity. point

on, the once the we breakdown some yet. we a mix there's possibility of the operations that know get financing out facility. financing in And place, through that of the assume could and we don't the But rest get so, on just close the I I of proceeds when

Ricardo Chinchilla

much. so Thank Perfect. you

Josh Hirsberg

Yes. Thank you.

Operator

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

Josh Hirsberg

and available good today we to there and a day. good If have dialing questions. any answer you questions really And Chuck. you, is you some appreciate those help Thanks. give And we're asking follow-up, Thank perspective. our everyone in to try

Operator

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

You may now disconnect.

Boyd Gaming (BYD) 23 Oct 192019 Q3 Earnings call transcript