BYD - Earnings call transcript Q4 2019 | Boyd Gaming Corporation

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Operator

Good day, and welcome to the Boyd Gaming Fourth 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 question. Please note this event is being recorded.

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

Josh Hirsberg

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

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

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

call 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

very for our year was company. successful Thanks, Good a Overall, everyone. Josh. XXXX afternoon,

XXXX. across and margins we in the Our diversified more And EBITDAR operating XXX our nationwide operate portfolio improving company-wide than by basis country. and growth delivered new revenues efficiently, ways sustained identified more in points to smarter

of to EBITDAR XXX and well year performance expectations performed during margin and improvement Belterra first expect strong from our our we properties ownership, previous continue. basis exceeded first alone their points properties their Ameristar, nearly stand Our results. have year growth and full of of Forge level double-digit achieving These extremely Valley

drive sports further positioned betting our new and powerful and states we well also new FanDuel, the most the as nation's Midwest FanDuel with XXXX, brand. for properties During across growth, partnership books sports betting. the Northeast customers are prepare is expanded cash our we to times approaching And leverage X finished to flow, balance We year sports of legalize our strong our target operating X.X further with X.X enhancing strengthen allowing sheet. EBITDA, to of times. range free our our to us performance

achievement In the company significant fourth all, conclusion was provided strong of for a year. XXXX and year a quarter to a our great

our increasing grew we on XXX basis by quarter, almost over revenues company-wide margin basis, company-wide more a fourth the while points. X% During EBITDAR X% by enhancing by than

highlighted operating segment strong South by at results, the revenues Looking quarter was our margin. EBITDAR in delivered growth and and region, Midwest same-store which

continued to addition newly our In exceptional same-store results region and the South Belterra generating Ameristar properties. in Midwest and strong performance we acquired in

the minutes, quarter in XXXX performance quarter first locals continues our exceeding our walk full XX% at with regional let's a the in consistent will in to through margin Vegas, we few for our operations. trends Nevada and review operating I near-record but segment detail Revenue with more year. growth levels. In saw the our remained throughout perform Las

quarter, last of did improved fourth the XX% than and year while when the achieved grew we slow margins growth EBITDAR basis we gains in to XXX And strong able the quarter points. during EBITDAR maintain were more

properties by the encouraged full As have in for trends and are XXXX, the year. our we optimistic we begin remain we January seen at

the slightly business ahead our XXXX And of will EBITDAR have locals rate segment be fundamentals in we from The of XXXX. expect saw we local our changed. growth in not

in to local As in segment. our maintain long-term we strong Nevada ahead, confidence look us the gives Southern ability great growth economy our

X.X%, national XXXX, growth the average. job ahead in performances the down best well X.X% a one recorded area of the country to and XX metropolitan Vegas rate of Las in Unemployment the is X% Personal in continue is with prior rise. long-term sales and this consumer level And rising wages XX spending, the lowest gains taxable income in growth years. driving over to income year. weekly

encouraging. well April, the March, for Southern will to XXX,XXX bringing the since XX will later Allegion Expo August, and starting Vegas return to From the a the Las calendar CON/AGG perspective, and time upcoming boost visitation fourth tourism the a event over draft city. month Vegas first first Vegas quarter. Nevada at new will host for is of XXXX, In And NFL the our One first third visitation Stadium, games quite raiders the to Las home in bringing conventioneers time. Las to throughout host in

is upon attendance. With a Vegas Las calendar, event keep building convention set to favorable XXXX's record

well than X,XXX is convention X,XXX near more including benefit Southern the this growth with strip. continued more company positioned and hotel from than business, rooms to market, tourism Our in the Nevada rooms in

development In projects Las of of of are pipeline billion. exceeds addition now the and X,XXX Stadium, more rooms addition Convention center like the local all part expansion Allegiant that the Vegas $XX hotel a than

come Las will projects expand and Vegas they As two event these the enhance over capabilities convention online, and years. significantly next

groundwork will come. growth of ongoing years lay tourism This our and for Nevada economic to visitation expansion for growth continued the infrastructure across Southern

our strength direction Nevada growth in the ability business. the to ongoing the in of economy, Southern we long-term of our Given segment and this deliver local confident remain in continued

EBITDAR of in Las revenues, segment. performance Downtown and its across fifth with posted the quarter straight record strong margins Vegas growth Next,

remains with business continued Hawaiian core growth in business Our solid, volumes.

to that share market. We getting increases of unrated indication visitation a see the downtown we throughout strong our clear also continue fair are in growing the play,

and not area. the impact in operating are throughout from disruption of talent teams doing projects construction but also the a only revenue, great of job Our growing mitigating profitable

improve. growth Las Vegas the are the further to continues evolve be set stage will market for As and throughout as these completed, Downtown projects

added was projects of was in to taking street this entirely Nearly Downtown just Vegas Las late at the an the Las And debut new of these last Grand and upgrade Vegas experience One in completed the by sweep year. popular to X,XXX a which month modernization next Circa of Downtown followed Video Canopy, year. scheduled this as level. summer, three year attraction be open more rooms than new are later this importantly, will hotel over rooms XXX

one As we three to the our operators, and our continue properties, confidence to growth have largest segment. attracting of ability driving in throughout most downtown new long-term established visitors Downtown's

property great Nevada, Moving regional performance. our delivered outside a of

First, more properties to during points. quarter, produce improvement Ameristar fourth results of we we On properties XX% acquired outstanding EBITDAR continue at XXX combined XXXX. the these October growth margin basis the in and of than and basis, Belterra a achieved

Belterra fourth strongest a quarter XXXX decade Ameristar with and in the quarterly its for at record City EBITDAR. Kansas Charles XX%. an all-time achieved EBITDAR quarter margin an highest of performance fourth In fourth its since quarter, all-time posted record Park's Ameristar St.

for first As realize anniversary exceeded And value year of the from ownership. we Ameristar expect continue the Belterra synergies, of these further our pass we year as we the to and have additional best-practices acquisitions ahead. to initial one-year in expectations and identify for our we opportunities acquisitions,

has strong properties our While continue new regional to also perform existing produced our results. portfolio well,

adjustment grew and and by factoring tax Star. nearly XX same-store Midwest favorable improved after last quarter South margins EBITDAR Our the during out X% Kansas year's segment approximately basis at by points

At saw more our than and excellent Throughout EBITDAR results. gains. on grew Star revenue EBITDAR revenue solid X% this strong we Kansas growth. produced two region, Iowa properties, we

in team amenities. successfully Blue Indiana, and leverages continued leadership revenue, share gains property's delivered EBITDAR, its margin Chip the market-leading In market as

And the of another completion expanded road in outperform yet floor Valley recover we from expect recent the performance reopening that Delta Louisiana, with Lake of Forge I-XX investments in market. and slot Downs Lake record disruptive was And market. as leadership the Pennsylvania, posted the well Charles, driven an grow Houston Lake begin and the in team Charles Charles In was work the able east business to last and by damaged strong tropical to synergies in bridge as at acquisition. of the volumes fall's full on to EBITDAR storm,

are At Resort, are we Jo been The segment properties. of strong regional base. Chip, and this Jo Blue Belterra sports five strengthened Midwest Diamond Valley new at South attracting Dubuque, further our expanding of and Forge, and have underlying our customer FanDuel books introduction Sports Worth in seeing faces year's by betting our Diamond trends,

than and opened on visiting they are casinos. betting. the the playing They our after in are are placing customers wager of to the Once restaurants and the years these doing door Supreme Court more bars, the two game. property, our sports Nearly our on new expansion

our pleased extremely are progress. with We

we regional saw our fourth sports are the using during expanding business, nationwide through customer we As our betting quarter, successfully incremental growth diversifying to base. and drive

additional betting legalizing states U.S. across well property sports As population. we positioned the access in of the are our paradise And states XX% Boyd than with XX country, wagering. in to evaluating footprint our sports representing as opportunities we more in the is consider begin market expand Gaming XXXX, Illinois.

site Northern with favorable but just Rancheria partnership of California, only our area. it the one is south the most closest of entire developed, California. The Once is Sacramento. the the long-term Another in to in locations South Northern Sacramento not opportunity gaming be resort tribal will tribe Bay located Wilton gaming

Tribe plan potential that of this this the attractive resort advantage of takes location. a full the coming realize allows the We develop years. to to first-class opportunity It Wilton significant in

strengthening country, our the great making operations expand progress to our continue balance are we sheet. As across

leverage a delever we times. times the X.X we range will X.X be balanced leverage anticipate value where strategy at target, course mid-year, Upon Throughout to to reducing four capital of leverage reinvesting to we shareholders. year-end. our achieving to portfolio shareholders will our pursue we including deleveraging, target By our continue XXXX, to allocation capital EBITDAR ratio to strategically of within for our returning our opportunities in see continue we additional and create

generate allow modest which from property a a the been nights maximum operating Fremont, that several evaluating of currently at to levels will been year. record for are has at business growth this performing throughout us last Spanning several We now. capacity currently expansion years a the week incremental has

one require recent capital, would to In moving of flexibility decisions. and efficient investments respect creating a Louisiana, regional for evaluating compelling significant Treasure of our performing Chest strongest by capital commitments state an future opportunity us allowing take properties. advantage operation more allocation are to of land, our not to Such with to we law changes maintain

types we only so, prudent on that pursue those will return If doing we of these offer investment. pursuing projects, do be in compelling

in our business. As we future, strength confident of long-term remain look we the the to

portfolio nationwide continued is same-store diversified Our generating growth.

delivering We from recent exceptional are acquisitions. results our

visitation company. brand and to balance the with betting robust expanding as we our to new thanks sports driving new our Our partnership to And introducing flow sheet. free strengthen cash leading our is customers continue nation's

for company your an begins, XXXX the is continued ability our Thank long-term to time. As position for for call to confident shareholders. Josh. future I'll Josh? value our excellent remain now I turn the and in over our create in you

Josh Hirsberg

Thanks, great Valley integrated Belterra Forge strategic initiatives. We Keith. several into progress In executing on XXXX, made Ameristar our and our properties successfully team the portfolio.

stated goals value across transactions while our achieved time by portfolio. best same we leveraging the for synergies creating year, incremental entire from the During these at practices our

teams, more of hard points exceeded As has assets these results of expectations, from and while XXX XX% our a XXXX. than margins result operating improved EBITDAR basis in stand-alone work the nearly the our from growing dedication

also positioning FanDuel, to in to upon our sports and with significant continue mobile a gaming. relationship participant our company betting We build be

Operationally, we business. continue throughout to be on improving efficiencies our focused

integration lower on of throughout focus our behind acquisitions time of balance sheet. we strengthening progress a the the With now us, And time efficiencies driving traditional X.X XXXX ended at reassert beginning will We our at made XXXX. finally, X.X the great operations. further our than leverage, we

this leverage X.X achieve to and we around leverage is times below achieve target we Our will mid-year. expect

X.X approximately Lease than is adjusted higher levels. leverage turn these

As target our to capital balance the determine to – at we shareholders. the economic deleveraging, will time environment and between that our appropriate in and business leverage returning reinvesting operating approach we

today on evaluating are in over free deploy allowing as flexibility us significant are and Keith of projects reinvest our to our noted, strategically flow. offer investment. we be similar These would in maintain opportunities we spaced not an to compelling would return that cash with projects respect Assuming to environment we a to how be time that

Transitioning to quarter and a few specifics then guidance. on the

no were the average X.X $XX.XX price we an million finishing repurchased outstanding. fourth the XXX.X For approximately of year repurchased the shares million at shares year, shares with quarter. during There full

our We have during current million share authorization. repurchased year. the remaining nearly approximately under million in paid $XX $XX.X dividends We

full in During we of expenditures capital $XXX approximately the million. fourth invested million investments resulting quarter $XX in capital year

in figure guidance, million. like capabilities. as XXXX of Kansas about Ameristar, be floors This remodels terms investments and Paradise, properties our room to expenditures Resort and as several Belterra In $XXX City, capital are expected of slot well continued includes for technology

million. to approximately expense be $XXX year our expense corporate expect is EBITDAR million, included be to $XX about We for guidance is expected XXXX. full which Depreciation in

interest our year. last will million of a recent our expense and than As deleveraging result our lower refinancing, be efforts about $XX

year be approximately We amount. this cash expect $XX this interest expense expense less will interest than million million about will and be $XXX

the ended for our Rent times. lease master was coverage by year assets X.XX for the XXXX governed

under master million lease two be to both Ameristar percentage Beginning rent of expect for assuming in XXXX. master Belterra will be million, rent. our Park and accounts into the Belterra the base We rent This May, lease for currently $X.X approximately and Resort. $XXX in assets for governing the increase incorporated change escalation

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

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

see our in $XXX we EBITDAR And in Finally XXXX million. release, our year as $XXX remain the direction underlying our in of to the range adjusted be We we throughout trends confident noted full to million business. expect company. the of long-term

believe to positioned we XXXX, we are for creating to our As shareholders. continue well value we look long-term

that any concludes and are we take participants. the questions our to Sarah now that from remarks ready With

Operator

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

Joe Greff

to of consensus where Good which is. My at afternoon, your question everybody. guidance nicely the XXXX is midpoint ahead pertains

south the we But the just some talk And high incremental the of the end are relative help the the about explain Can degree note or about see definitely from when think think does scenarios same-store if benefit when overall high So, about betting, you mix end Midwest low how of to of end and that I to and growth Is could make growth you the of a that. sports you portfolio? driving that? that. includes you that? geographic want sort then what

Josh Hirsberg

Yes, really Joe questions. good those are

reflects into low expect of everything the well everything would none if if that I kind actually the end think, whereas really occurred. in what if of order fell occur we on one went to to range meet, everything our really place extreme reflects and

of the range of be for high we would fairly the high end the expect So an to of for opportunity segments. this is reflects the we each and range kind what the at of growth really obvious at what of end expect

would that grew instance our at better and in Las for business XXXX. or for locals Vegas a we expect in over little XXXX see kind the growth X% just So, bit level to least of

X% it our think South and kind range. growing I to would X% thought Midwest was segment traditionally while of have

to to be in would X%. would I because we think the some think of guidance we in see our weather And largely more we like significant expect don't X.X% that saw XXXX.

in factors, theoretically or like We to range roads of end the range. do I of have here terms incorporate around potential all we some think construction there will other things kind so or those that potential affect But bridges could in headwinds that business. tries that or our that

segments out their sports of betting growth the kind the think certainly I business terms of for of those in of bigger I've the that laid -- levels contemplate kind contributions. of you for already our

Joe Greff

CapEx might that that be million everything much chest of $XXX treasure not this or year swag that that for, in Louisiana. range. that identified three-month How sort from you contemplates And is will and you. under of the expansion, general then a mentioned is to things consideration? Great. And all related things within this in of so Thank this that’s of from some me. spoken sort be

Josh Hirsberg

Yes.

recurring just that in level about kind year any would the out the kind us the year in you to expect spend is of of So, million think of change economy. I would absent $XXX way capital and

use our decide spending on above returns and would think would maintenance the and of we extent of we our be flow cash analysis that that a the incremental that those, to on evaluation based over need free and that of complete they that just be capital. that projects I ultimately generate

Joe Greff

Thank Excellent. you.

Josh Hirsberg

Thank you.

Operator

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

Carlo Santarelli

the net dynamic again you refine kind you about drove believe afternoon. guys. rate referring marketing kind EBITDAR Hey and Josh it Las because healthier I remarks EBITDAR how which you played mentioned better in the of on year this Good a last growth year. out as to X% kind Keith The bit of the it. XXXX? and of of prepared of of the year. little market our accelerating. rate in think market you market touched Vegas confidence locals that just something growth revenue When kind the your lagged of throughout of purposely And And

As you saves accelerating cost think kind of ahead line maybe top more with continued refinements market the driving kind with growth? EBITDAR to XXXX of do the you line and think is in

Keith Smith

good Yeah question.

growth us. As look XXXX, and to on tools we other rolling revenue at out about focus help was it continued profitable technology and

see we quarters; last stronger locals over up in are XXXX, grown expect about the in growth. points the to market margins three would market think locals revenue margins XX% five to the the we years. last over basis As We've XXX in

of And not same to pace revenue stronger to saw again so XXXX although continue It we're drive and than proud will expect that. pretty in go up, we we XXXX. at in once would that

Carlo Santarelli

just kind the then you. you of interest. of cash and then and things thank the adjusting Great, the midpoint mentioned, expense, your if some rent using the guidance And of for maintenance Josh the obviously CapEx

on call there Is an you partnerships in cetera. talked the to a about you dividends, at million about betting there looking you sense the there strategy perspective incremental guys not your about that with cash any business lot do? think and discretionary retail Is et the much of there's with could impact free so flow mindset date from to is it there? sports anything FanDuel. that before maybe $XXX maybe do there something You're more on had Obviously of the maybe when kind online the

Josh Hirsberg

would in to betting. Carlo sports your just incremental that Is basically if question? investments clarify, asking So are we make you

Carlo Santarelli

standpoint be an an in from acquisition will the standpoint? business expense incremental expenditures it from or Whether

Keith Smith

in brand sports look like you think we've out with carved when about partnership are are volumes, terms Carlo, comes or not. of FanDuel. in states. And you at we sports once a I again betting whether Jersey leading peers are profitable actually our number the think in They where betting it's business our New we it to other when their Pennsylvania the or position of when

position. of kind we like So our

we sports I states continuing to I if sports see purchase and out it making Paradise modest do investment sites to us they're a some but or brand. property forward new very, think like significant not like a Illinois, with in investments other or numbers. betting It's a in we strong launch are and operator going add investment partner strong Paradise real it's large strong a or a different. build don't They're pretty new -- way the see very any anything only those happy book to with properties. the FanDuel played out to anything I'm very got is

Carlo Santarelli

And last Great. quick then just follow-up. one

from As that lot iGaming with side road? the talk little I relationship it different potential the in situation opportunities go. believe are pertains to where of a the on and in see economics where perspective Pennsylvania the from the the profit a about perspective for the terms you down FanDuel, shares you iGaming a bit Can legislative

Keith Smith

as there Well, economics near there. future. And there of the just a way different betting product, say a as differently a given have We we sure. of are --- economics launch in recently online comes this product those businesses. is casino sports different come the it result versus the launching that. product to launched retail to about anticipate would we gaming, and think the money that look FanDuel Pennsylvania dynamics two a online our branded you volumes real betting sports When In specifically you when side

are. we're So what not those describing

that. into is but to gone We incremental profit haven't there detail related

Carlo Santarelli

Great. Thank Keith. you,

Operator

Wieczynski ahead. Our next go Please with Stifel. Steve comes question from

Steve Wieczynski

mean, I you sports afternoon across about topic and data are those spending data or we is sense and or but meaning average, do not folks eating makes how to other property sports you doing betters guys. are sports talked bet good early, I things. and the things would both other playing many the that might Hey there have real understand sure betting you're if know folks to it's seeing but assets any helpful. what's how show not attachment slots placed maybe be doing like come what you they're or in Keith, that whatever. quick your rate, given have on there your

Keith Smith

question. into a people on Unfortunately appreciate these No the around don't bet don't direct I Yeah. with necessarily these. I came We that any walk says have button sport. data

So it's hard to track.

we it's of get information them in them can antidotal we operation and store, and were track volumes uplift. in table to of beverage, teams seen a largely an know terms definitely talking cards Some just getting of that to each and but us. through at not It's slots, the quantify, looking operating But amenity different a our much the it building, always in every don't and we've they're once the But building, know game faces food pre-imposed, and different those each property restaurants hard every in slots customer their little volumes because it's observing uplift, in observing for completely kind all is set whether very volumes in an case, metrics, again new don’t or the cards, volumes behavior. in positive exact we tables and in so or that. additional

Steve Wieczynski

about to at I you bit of your into to prepared then leverage remarks, back there once any target reinvest you I think those there. way down a your think what I got And -- end of talked be? can you. right options some you get more Okay, you an said, I don't Josh, heard opportunity on business. you the -- I think little might Is the there's elaborate

Josh Hirsberg

Sure Steve.

bring that on somewhat of change one -- Keith evaluating to of projects given we're evaluation the the the the the in ability expanding is just performing downtown. potentially decide then land. that that were generally think I home dynamics more upon and then And market and one downtown trying of record have downtown assets that executed kind the Fremont the specifically performances with stage Chest our mentioned being other Treasure law in to the two

of types consider. things Those of would we examples are

once hit returning what's we levels, I our that obviously of highest leverage it becomes really use the free cash think flow. that

we is those buying on our potential those shares. back projects, so kind expect of reinvest to it in And once paying a complete returns the can assets or that we or it dividend evaluation, will depend versus

want all free in kind plan to that not And cash just be roll size our our use leftover when if investments have for we I environment plan to warrants we would used of so expect to to a flow reinvesting disciplined regard. think given do the of that. to And be assets. like of We to portion also and out these capital we economic returns for them deleveraging operating we potentially or shareholders feel the or continued in

Steve Wieczynski

in Okay. concerning? or it Got the not look quick real from anything standpoint a when is Then market now you concerning at promotional -- you. right locals that would Josh Vegas,

Josh Hirsberg

or we Yeah. is environment in pretty Las the levels would relative to rational. say normal No, promotional historical Vegas

Steve Wieczynski

you. Thanks Got guys. Appreciate it.

Josh Hirsberg

Yeah.

Operator

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

Felicia Hendrix

market on comments wanted you. Las your your which Vegas growth of to Thank back locals prepared mentioned to In go expectation CON/AGG. year your to you Keith, drivers lot is the positive I just the next and of market, there. one remarks a Hi. for

we Las the versus just of Vegas the by bolstered locals? of that being laid all that CON/AGG out stuff? is think other So growth wondering as year How next rotation into the much for about you rate

Keith Smith

we've think that a don't I Yeah. one specific convention. factor to applied

in coming we in I a think calendar the and town generally that time at has think been like that look while. convention about for when you a

locals is. overall, helpful. But event. complements activity and town good the pretty isn't full, kind it But about it an is as think and Raiders already further. isn't that. rates to I just by it is mean, again But even more about environment. it in we're room once leverage pretty that certainly of one we run occupancies just when strong out obviously it the high just able That driven town You

Felicia Hendrix

I'm Okay. you rest if the any just even year. many, all us It's wondering from it's we are there? weak. is underperformed opportunities And Indiana kind Resort to year but or if And I just of competition out wondering know And -- mostly historical something could of of that machines one there clear. going talk the happening on? it Southern Thanks. has about all racing your That's can -- stood just for improvement. Belterra being market the is what's else there I'm And the in Louisville property with

Keith Smith

No.

just historic racing qualified under long, is we just You out big of right the pressure market. or they've Louisville. machines mean, get of I been all it quantified in it that right year a chunk business

that's it's convenience have there the with hotel casino very and wonderful sports of added great And last spa and full and a course We recently and impact product seen numbers Louisville. seen and book. those rooms golf grow wonderful resort dramatically a a amenities, you've But year the the factor been that really biggest in over we've there.

a about bit. are managing property. ensuring cost big that. the team we really a Resort new great line and revenues The But that in bottom our there through properties that not little a bit And has Southern down one, properly. been a done We've at job at Belterra quite are managing seen impact savings but land a little bit Indiana, from based an of it's clearly

Josh Hirsberg

Yeah. and the EBITDA Keith perspective just matters to add alluded from guys of from -- to And a is job managing are what at the it, really really doing good the a the expenses. property

XXXX at over than look you stand X% is XXXX alone less down results. EBITDA, If EBITDA

they've done of competition So the of level new job the a the to competition. managing good

Felicia Hendrix

four want X.X target just I nothing's then just say one X.X to I the your Josh sure so the changed, to you leverage helpful. just That's make you. to is to because applying And that of turn final X, used And my have lease regarding and said it five. just adjusted X.X

being granular leverage ratios? So versus traditional adjusted just more the the making now sure lease you're leverage with

Josh Hirsberg

Yeah, nothing really changed. has

five or in to move before. given I to wanted we the two think four ago a quarter that range of we lower had

metric of of want to significant speaking our reinvesting that kind lower or we really saying considering before we shareholders. we're consistent either a of assets just it's we're capital in So be to start more the returns range in

really a where not commentary term. on we And should long terms business be terms think today the of business really or it's of it less, economy, in it's the it's more, it's leveraged in running the anything

And do at to or in if we're economy. continue the economy want of sort in to some weather what that some we there do not every to a adjust the and in change have and pullback point whatever, position is to day to a

business so, really where long And the it's think term. we be should

a And to I at over earlier this those just little that achieve to alluded pace always Steve's a be It once continue -- have will of left de-leverage. just we which continue I think think I levels. to question to we'll was slower don't and -- even bit cash

just perspective… got we So

Felicia Hendrix

helpful. you. Yes, Thank

Operator

next comes David go with from Jefferies. Our question Please Katz ahead.

David Katz

everyone. Nice to obviously and quarter. partnership sports some hard put math we've I go questions. And evening of all the betting the is very tried you back and around clear. to for very opportunity the your one Hi, I F&B wanted with bit about earlier structure GGR to that's wanted you. sort left or specific or share even Thank us a is impact to specific it's foot and maybe and What even of incident? ask can any there any detail more you is, if whether traffic, of

Josh Hirsberg

information think information it's give we're four people that reason the hesitant next extrapolate right will now, like that a and because over to little take the quarters. think I I David, bit

coming those and season no the baseball off final see football season, and we're slower a of And other maybe periods around the time doubt have or the reality, four peak a the and in in time is the really of typically performs how sports. are period basketball with of what terms we'll business great have of kind of periods we which of to some robust

do model know golf extent to European betting the play over tennis and things the don't like; willing those we more going business out to just from know in-game that respect to sports we be is with just model better and mature to time will yet. that in our Ultimately, what and

the And what of a on it's kind we're be is adjusted a -- think basis. have we ahead until really to get a little on to business that handle so, good seasonally hesitant I going of

Operator

Please Our Instinet. with comes go ahead. Harry Curtis next question from

Harry Curtis

is what you. at that more Because bit revenues. of you the now -- you're I Hey through What I seeing? squeeze having – are that impact facilities. five you have answer. Josh, kind think flow revenue is that on when it casinos are appreciate these betting so of incremental a Maybe getting something can your out an sports of little We're

Keith Smith

profit I out we or outside get or through think X is about get whether Mississippi. we we of of So book books business that in pieces talked beverage actually and when it. itself Nevada, and betting two X have of the about you we it's the sports food slots there's there X think the running the incremental And then and then tables. There's

with -- there's Vanda's streams of look kind cut have revenue profit. we the it's given that two profit different we and deals just and them, So variety running of books is at the because our

out then that. get activities out making we they're money while we're So on And of the of additional profit the properties.

growing we certainly is So It haven't a quantified that. number.

will NCAA we've and and probably highest Vegas tournament through at Las the running sports-betting basketball of then world probably in years. quite after gets baseball the seen pretty shrink the through pretty Josh it the season. this as time the It's football as in over here It during said dramatically year season,

Harry Curtis

to And question, should. I'd opportunity duck I if Josh another a like give to

many, it? any asking didn't of question about around to gone see it. have circling pitch really what to of the are on kind And just valuation related year valuations you the you what it they the to and over for they are deals. where sense Josh excited get acquisition environment, books parameters point course So just doesn't a mention up a many make too you And

Josh Hirsberg

a XXXX really investor that, these will continue and calls meetings point. is feel think away like consistent leverage XXXX, not acquisition not and predisposition do -- this calls over think into at I up conversations theme on in it to an from of we're Yes we these I our our is pretty to

by trade-off to valuations associated to operating OpCo/PropCo to avoid financial real seem you to increase strategic potentially doesn't do in transactions kind And The leverage assets. the and overall further take those that work model environment. that having that risk by with value the we relative of it's today's believe the in complicated

those think the higher for reason things I don't it's And do all it thresh I to that say it the an think to threshold makes harder I acquisition. only say basically likely. is --

effectively. in to I quite something from higher portfolio of However, you see compelling. would and the potential strategically from I of our business own that, say never moving valuation that. our be we business of very have have more acquisitions. have doing investing honestly think running a returns lot We're And making more And to think it terms in in a direction of the we and like away be we never, our but proactively compelling feel improving would opportunities

didn't improve and very about in as the that is to risky so and don't it creation our we in if you And invest less talking don't it's business just I us mentioned really our I you business. the given more reason and likely It's existing us existing will. you hear script hear enhancing our like we feel think opportunities internally both for have value it

Harry Curtis

Thank the to it. I knitting. sticking you. So, appreciate

Josh Hirsberg

Harry. Thanks

Operator

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

Shaun Kelley

to afternoon just just Good M&A. us the build capital a remind about the talked of Could Josh everyone. thanks. allocation approach couple you of you've around questions piece. sort I think maybe Hi, of here

bit on you sort You just the opportunistic CapEx you dividends approach a can move of a but about bit, versus side? probably free little growth on of and into and/or us flow buybacks remind as pure stable talked possibly programmatic pretty something thinking you're the return, cash little color state on how capital more timing cycle a about little and a

Josh Hirsberg

leverage on think to the our that achieving understand business. within going leverage our in our achieve look perspective, I it's I what's target, I Once evaluate think that to priority first from So, the that the we is we world it's understand important to think target, have we that in to range. important extent -- getting the

than And prudent so pragmatic step at It's the a and way. it's each EPS. being not of purely instep

projects to returns evaluate they that our level, than then of the won't own generate those kinds kinds a business. I back we If and we than of are go buying than to we don't paying the generate in we will our think more the will stock invest think once projects. the opportunities those kind of competitive pursue get that's route then returns, that that favorable to dividend, we I extent more the that need or

we think at. execute maintain likely of return historically of think we rather think commit capital, I I would what honestly. point kind just I pretty where terms not think company And we're until I in But is this I we've of I how see of to that good how shares. would wants do repurchase quite the to that see example a flexibility at

one back to have You use year done get what and get look to we I and or before we But think see leverage really last over that can important level. That's go potential to we've to the approach. as two and our us. that

to And and returning investment have shares I think secondly, we buying evaluate do relative capital back we that then projects warrant as well. good to have

answers I me think not all your but if let that questions know.

Shaun Kelley

across segments underwrite takes walk you. impacts a think But then are and the how puts and out No, through you're supply or little guidance kind that's the the I can to just was customer bit competitive any underwriting way talk portfolio? that kind both you it. how of we of there performance. Thank on And all just back you about if curious going

probably I then much impact? are year probably move of probably you're this of for about the XXXX think circa latter in stages more chip? the blue main And a how we kind of thinking things as and

Keith Smith

across Look chip. impact think Shaun. is called portfolio out becomes as little you blue about That something really very project into we there competitive XXXX the XXXX. Sure really

time what's we the And have across to portfolio really plenty that look of so not we a of as prepare going so for lot impact.

Grand, I remarks, while Downtown the likely to all some actually rooms is is project Stephens' more mentioned positive year. and will open downtown. of prepared downtown think around As in they're additional you Derek that of out where we about be and capacity, the my people as about end Those added incrementally see bringing at

history XX and people three properties to those bring compete people those very those our we're our and bring with get confident for And years in of in downtown customers. those or in door our operating -- door ability downtown

hotel XXX downtown net it very, the for Citicore a that as very positive So, see positive in month us. we rooms free actually Grand is

very we're going things coming actually build downtown helping So, to -- we're forward that to it's and business. to looking those

Shaun Kelley

Thank you very much.

Operator

from comes Please Barry question next Jonas go ahead. SunTrust. with Our

Jeff Stantial

for Barry. Thanks is taking for This Jeff our guys. Hey on questions.

market pretty to numbers downtown. First your with specifically The off just results and to continue stick here. appear healthy

point cause that the changing anything construction some there's Just in to progress wondering at if XXXX. in might disruption accelerate

Keith Smith

there's a lot Yes. down on Look going there.

any There offset some more the it are throughout that worse. I construction see our roads think up But for XXXX. generally see done any team going But it trying I job great I congested worse. additional been to halfway I halfway don't I on. has a lot. don't it have don't a getting projects getting while. than see circa certainly, any getting see a better don't changing

pretty much quo. status So think I it's

Jeff Stantial

or And acquired there's opportunities to opportunity your and synergy same-store the is cost incremental similar on like portfolio? great. assets, tackling the with then you do just expansion Okay margin there, Pinnacle just think it blocking any really more more

Keith Smith

to little work have of do Belterras I Ameristars we targets, only achieved the we terms in always we've as owned Forge year. properties think applying best we while a the extract over a and think I more of our more and some I think them and for practices synergy And more even extracting about there's to think Valley best and there's can synergies. out those practices extent

operating purchased practices I of refining properties as -- model as one to could about it not synergies again as improved think and apply models and is forward, the void so first and we to declared best those much we properties these continuing it -- the moving you the results. when about think it's some about and

grow to businesses. continue think So there those room to is more I

Jeff Stantial

Thanks. great. the Okay, Appreciate color. all

Operator

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

Chad Beynon

you Wilton Thanks once afternoon. Rancheria Thanks. sports Wilton where betting question. your on my the the the to news bring running? timing some in there's scope speed up offer on us is all I and for good there's betting Hi, believe to recently. is? with been project. taking just Would the allow license And you Rancheria hearings that know size related up of then Guys, Could and some California and been sports informational I

Keith Smith

Sure.

one talked So a in you're respect relevant kind of that that think the of full scope exactly would in We're we still project haven't is the process today. information about out a sure that I say And refinancing. XX those different expect what really there or generally financing for middle kind some the of other project. would We're the of certain haven't, the to project. financing. announced after formally haven't we of thing to announced of the know months project. get I'm But open We the There's kind the size scope will not we the size getting of of where than Wilton, elements is and the older process certain that -- none and get and finalizing certain with plans that of tribe of hearing. year. information I the the in all the

casino. best is sports to Wilson respect that through the So the that we sports to would through operate yes, point answer to betting is With license as know allow us our yet come. this betting, specific at

Chad Beynon

Okay.

Keith Smith

law passed yet. the isn't But

lot whatever law. up on ends change a based can in So the

Chad Beynon

out All the there's the more guys purchased revenues beginning you. the I purchase CapEx of that then just new the of on terms grow at are of you rolling opportunities separately, to slot XXXX? And all you think and back a the Do believe Thank just slot system. year bonusing? Where marketing right. you in in

Keith Smith

Yes.

think was I marketing system. will the infrastructure the kind So of backbone up this in the way, XXXX about of leveraging XXXX more be about that the capabilities about installing it and

Chad Beynon

you much. very Thank

Operator

and more Group. Please go for Post Advisory Berg question Andrew ahead. with time from one have comes We that

Andrew Berg

with Chest. to Fremont respect as as Treasure Keith well guys. Hey

size you spend those spend. in that the for I were can maximum you'd you think each little significant. would be But CapEx with If of of frame forward out terribly expect guys of those bit they of kind what might to be CapEx terms or to one said move amount in you a

Keith Smith

land at a what really specific a it, for we casino Well, at kind We've be But The piece of of week. looked generally months talk the of owned additional a parameters about different casino projects you'd thinking is many about is while. And space. there I at point. need casino. three a number don't at capacity backside We've have can there. nights this the of we

as So too it very grander a anything expansion be about expansion of than the thinking much not I'd just of an modest casino casino. the

a you've as kind you people think riverboat about market point other chest other at think seen where riverboat gaming the this happen in treasure a from I places in gone have land-based of to operation.

able as we to a it members. land well customers you're one riverboat both as look move So if becomes terribly have XX-year-old for it to team inefficient in extremely story three-story efficient for all

a look around can You number country think see modest people the of and examples prices. very, of have very that I that done

have announce. have about had flushed don't It's know any We you in thinking. that's but if to talk don't it to not I we specific pricing. the out don't dollar-wise So anything yet,

Andrew Berg

a Thanks guys. lot it. Got

Operator

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

Josh Hirsberg

the Thank participating appreciate you, dialing call. in and and we everyone Sarah in today

your feel of follow-up day. any free reach good have again you have a rest If the and Thanks to out company. to questions

Operator

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

now may You disconnect.

Boyd Gaming (BYD) 20 Feb 202019 Q4 Earnings call transcript