BYD - Earnings call transcript Q1 2020 | Boyd Gaming Corporation

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Operator

Good afternoon. And welcome to the Boyd Gaming First Quarter 2020 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]

is event this note being recorded. Please now Josh Hirsberg, would like Chief to to over conference the Executive Officer. turn Financial I Vice and President ahead. go Please

Josh Hirsberg

Thank our welcome call. you, everyone. quarter earnings conference Grant. to afternoon, Good first And

and and are healthy. family First you, and doing friends importantly, each all I of most your well safe, staying hope

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

and within our today update include statements. are no All statements the statements Private will forward-looking Act. undertake Securities comments today’s Our forward-looking or of are statements comments as we forward-looking date Reform Litigation that revise and the to obligation

results Actual SEC impact our and materially risks uncertainties, in projected including results. those that any may our those the forward-looking may disclosed There with certain differ statement. are in from filings

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

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

completion at this is also Investor the being website call. and Today’s the call available webcast boydgaming.com of replay our be after shortly in live for will Relations of section

will impairment that is that quarter. impact tax point reported and reviews. first the required results implications, I impairment result release to quarter Before to filing our are team to review potential continuing that our -- we I operational issued any out report as continuing It note for accounting work impairments today. our in the for are and their you reporting external to the will not XX-Q associated see over today, first important charges turn the in are results, call we To want auditors reports complete preliminary Keith,

now Keith? to over like to would I that, turn Keith call Smith. with So, the

Keith Smith

extremely life, Thanks, It us families our that times can afternoon, same in cannot damage these financial said COVID-XX hope be like these tragedy. times. difficult The everyone. The during this remind safe repaired will Josh. is friends. Good over of do truly of I health, our and be what is our and lost important everyone time. lives staying to to

has human been could terrible, it been cost have COVID-XX of far but The worse.

country, flattening Over to six saving the the there’s freeze communities businesses lives. last the lot the and start weeks, of non-essential across curve a countless

our impact the properties necessary stop been broader company, COVID-XX, communities of has members our to and the mandated a was closure our part significant. of effort the While to our team

country. quarter began the March, Vegas Locals solid Southern on months well with are revenue, its two growth the of segment track opening across in date the our quarter properties. Las the way strong across posting EBITDAR EBITDAR closures, with report growth on to results year Before margin improvement to was company to of and crisis straight its was Nevada our XXth consecutive first year Prior to

for south another the through EBITDAR we performances Midwest two poised XX our record across properties of first business saw Downtown Our the months and digit growth quarter XX was our Las Vegas double producing of year. and properties with strong

but all and revenue period, this in regional year-over-year EBITDAR. During to both one growth our properties supposed of be

March operate properties orders XXth. the our outbreak COVID-XX, state every Boyd XX response transformed our XXth March in. communities to aimed six to spread came of Then and COVID-XX we Gaming one at across March of preventing the In over from business, a day country closed the when period the through

to are we and closures, these our our our priority the support communities. is team In first following initial days providing members

gloves of to country the pounds tens in thousands significant donated and of of food across quantities in cities hospitals. first masks properties we and responders of Our contributed

We were month full their of also and pay providing members benefits properties team while a country, closed. supported the our across

disclosures first after were home the the short became lived, were country. as extended Today, orders to crisis be six stay The across extent but closures meant apparent, at the of the across all full business. began to of closures public country the remain uncertain. the day of results significant closed on our reported remain properties today show reopening and the to The we these our impact weeks

our made and ensure this a resume order to that In is through have but crisis strong decisions. position, necessary operations some able To in navigate difficult company we

management Our our and Board executive suspend of compensation. agreed taken cuts teams pay and their significant Directors have to

projects been quarterly well all share major payments spending, halted all have non-essential our and suspended dividend as have capital activities. We repurchase

difficult business, our most our the status make. was this to a most ever had was without of But we was have care about clear in we the deeply we hardest we choice could. team mid-April. decision members far by postpone furlough decision This long this our wellbeing as placing the team any of But reopen made decision a on and would to on members as we as be able we visibility company, when

through team have benefits have impact furlough team cost benefits XXth All our recognize to are on these member. coverage. program We that at tried the members by to no enrolled provide we the in continuing mitigate and to will team remain our June furloughs this numbers impact covered who

our support Congress approval last benefits by of members our payments them receive times. stimulus will help And difficult to these thanks and enhanced through team much the unemployment communities to month, and needed

XX safety guidelines. reopen and with specific their we be members health operations to states that team own and of know likely do not resume we a As will to work. will each of It on timeline, is when permitted back bring different our today, each our

across working of to are when reopen the better country will like. able a with look may what understanding state to gain local We currently and officials we reopening be and

done work are on sufficient have visibility we to reserves, can recent expenses again as our based taken have we clear actions strengthen cash not company do we we reduce have opening sustain in our regarding we while have well liquidity to our strengthen confident, to sheet, years until And dates reopen our and doors we balance as once the the

the team and begins be health meet set safety the and our customers members the protecting process the Once federal priority, protocols or forth utmost will by local and place officials. health our state exceed of into safety and standards will put we reopening

As convention for of we not benefit from our regional look the success. ahead Across largely and prepare we local a and that model will return from customers, business is local for a we business, portfolio visitation. business destination or reliant comes believe nationwide majority our we on business are focused on to

us customer our industry. of result the position base operations As recovery we to resume, as lead our a believe local will

we While to times, look the these certainly we will that recovery. unprecedented come forward the to are they and know an of start end

to over to recognize team want moment Before members Josh, I this I our take crisis. who I know turn by to impacted call a significantly have the been

may team are the can. bringing of Boyd still to soon we back While as you closed, our you we forward part look properties and to be work as

who on us time property With these and those hard for throughout help your you dedication the thank secure, efforts quickly team job members closures, will the remained and your reopen your safe when have work comes. and keeping

will do much look as forward visiting to of and to to when our at entertainment we again orders back look hosting as you be home stay us. is To I to you looking when welcoming forward we you you that so. know for safe finally forward look it customers, many end

And and fight. on finally, who recognize the personnel we medical have frontlines the this to want first responders of been

you this I You inspiration and have worked all your you for countless pandemic, protect wellbeing communities this our health thanking hours to an to know save and during for your at speak lives of put and us. everyone service, at are and incredible risk company I

Josh. your Thank over I for the time. call now you turn will to

Josh Hirsberg

Thanks, Keith.

these several geographic effort our to we deleveraging for managing a size, focused respond a have scale Over increased to able crisis had Thanks strengthen company to balance strong diversification. the efforts financial we and years, been the this sheet have position. from to achieve and to last

ensure and the our reopening during several properties. steps have company to manage are our times, the our throughout of we the of able taken we As these through we period closure business to challenging strength preserve

Keith mentioned we thus important have decisions some made of the far.

have team property furlough of making We the across most the difficult reduced corporate mid-April. our including in aggressively enterprise, expenses and members decision to

team leadership often property has taken remaining salary corporate Board and teams and compensation. our have reductions management executive our their significant and agreed Our to forego

major the have suspended projects capital have capital expected and CapEx been terms nine million In our expenditures, months approximately to for the all $XX year. reduced we of spend remaining of

shares closures, repurchase During have quarterly stock. quarter, for a about to of prior program capital the of repurchases in XXX,XXX dividend. our March our we investment total suspended $XX our and return programs both those halted purchased Since we our million share and first our

resumption cash monthly crisis of requirements, be whether the these of and efforts, combined for As prepared significantly a have our company we our reduced the business. successfully this positioning result

requirement current monthly Our is cash month. $XX per approximately million

the $XXX resources sufficient cash of on provide during challenging available end balances our at drew was on million cash cash $XXX credit these our Based in our us facility Our current March. times. revolving we million, March requirements, including

We our financial our Now to about and have we reopening and in reengaging look turned we weeks for focus come. more planning on serving foundation, members, communities. reopening details to our business, that have reinforced customers plans team our our forward providing the our

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

Operator

Carlo from Deutsche Bank. first Our go question Instructions] Santarelli [Operator Please ahead. come with will

Carlo Santarelli

do guys regulators of demand a over Thank evening. fact good just with weeks for how as comments take and an noted the time perspective your this the social next different To on and out remarks. the would will is obviously will you your at are you properties in be few you and maybe to you that plans put as to efficient could hard when situation as and like et foresee property make open, open and state and Acknowledging things look cetera. in we obviously afternoon the blanket as give best to conversations Good what How guys. quantify will can this of a terms of some you place. guys Hey, distancing, of few be your that fluid with based next quarters. that the to-date? months could outline steps maybe on with ability to look likely you curve, indoor the each they in respect your us kind things What

Keith Smith

I take will if a at your that see I and shot address Carlo, can Sure. question.

state people number said or differently. at are a the limiting people distancing, machine a craps you in most think third every slot it’s But will I you number of a it’s whether table. conversations social it’s the as whether will, or around every handle of table it whether if of slot think machine each other XX centering I restaurants,

bars and think limited you else gather. access or think the I social where to at people capacity anywhere have limited as of distancing into building, it

immunizations And vaccines goes where so the say be what think we building, but and we think they because will fewer this Board. come initially these or be will and forward, we the I how as that the in and and they long-term, I on type restricted virus access initially, of time so open people will goes in look capacity see not probably these have across other change properties properties will or I and restricted

much were building In ‘XX, efficient a kind in and didn’t I people spending business demand. to deal They XX% an we the I the to business, have is, and that in prior and think, running above so ‘XX real we money back forget had had We of we in terms lot a as ‘XX the ‘XX. had ‘XX And ‘XX. of reflect people re-engineer to in in that. to crisis with the about half of the of drop in crisis

and that you business much a to with different have it like nobody so business work. how Today, that initially a staff, do greater out protocols cleaning all there’s easier in the to and to much figure to looks XX% maybe we does actually and different XX% ability or do how closed with re-engineer it is capacity start run and

to and are I that we much of rebuild But -- we that, we situation stress we into and So, or to I this of that evolving isn’t the we will an as year return a this situation normal that’s through will will reopen how we kind different. certainly hopeful as look arms it whether world gets issue year. going have forward as and that later our are understand permanent think much this allowed next that all COVID-XX around worked when it and is will

Carlo Santarelli

property number That’s much. is XQ of then, open, housekeeping of stays helpful, I Josh, one just you said regardless was when capital static Keith. expenditures assuming what your that And item, Thank you am the $XX -- but through very year-end. maintenance spend? million also

Josh Hirsberg

million. quarter $XX The about first spend was

Carlo Santarelli

very Thank much. Great. you

Josh Hirsberg

Sure.

Operator

Joe Greff from question will Please go ahead. come next with JPMorgan. Our the

Joe Greff

afternoon, guys. Good

having do Locals about, on Las fewer What you properties. Keith, kind you of and the up measures. input how of are do suggest about you this properties opening juncture. maybe multiple once thinking to revenue taken about at about In up to sense a are later, sort first, social sort know up of following what properties you questions. at in there? said that account how have in early of building you you the Vegas quite like multiple Does open So that makes generating Downtown you where people type thinking because think of have hampering that guys Las maybe I distancing or opening properties phasing which of How open markets and type of Vegas

Keith Smith

Right.

good So question.

think a is of very you a each part Las about customer has Vegas the our town in Local very base. segment As distinct and distinct properties of

different us customer phasing. different a I -- open out think see of all in largely allowed have are as don’t I once different Same we most as markets are I because And of they we to and a are so to state would thing all so allowed. if as we base obviously those would see and soon they are them them a so opening and not open as all

different. are is we three will inbound market on how tourism and little think Downtown see opens it so to how how to it here I a have look to dealing will to business experience to with largely business looks allowed today experience of properties crowds that tougher to and then Street, Hawaiian the that Street to see from wait And going Fremont have and we how the is Fremont up. crowds develop the sitting think, and Hawaii kind and on Fremont Downtown through Street

Joe Greff

much, could between you do mentioned prepared $XX $X is requirements math very other and interest cash you million thank CapEx And corporate, your maybe million. the Keith. comments million property, by do you million for then, sources other Josh, allocate $XX I of cash and divided X How about monthly use? total Great that month. in your on the per $XX cash

Josh Hirsberg

Yeah.

expense that the -- combined probably, think, expenses probably level million So, a those, I The little know, operating to kind there I of guess, don’t bit and you how about when about of run I answer that. or it’s a $XX kind corporate more so, all say, maybe. but than they month I would

payments that’s month. to is Rent just $XX $X.X over a stuff the all but place we the Interest million. timing make averages of is associated around expense, it the that, to $XX about kind of it. about CapEx million bit million because and million And like when then, and little $X a really

little a picture those big from kind am So but doing this I of bit are numbers. generally memory,

Joe Greff

Thanks, from me. all guys. That’s Excellent.

Josh Hirsberg

Sure. Yeah.

Operator

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

Steve Wieczynski

guys. Good Hey. afternoon,

obviously costs way cost that that. we environment, could of the into So, at monthly stripped that Is a But more you ask of meaning, is guys the of a the down get structure you like for to back road? much your kind about be operating as way cash have understand point we gave what maybe a those you to different around, and normal how appreciate so us obviously, could number there this have burn some Josh, permanent thought far. look calls question out

Keith Smith

this Steve, is Keith. Yeah.

one, are going it earlier, closed a -- As have reopen we business, a in reengineering kind work question we of on down going not around are done like day have that the response from look and of it to to simply when it’s I to said we we knowing not a looking Carlo did lot in March. when

have to don’t think nothing to position what reductions work and I But it going go report permanent today. in like. to to so we say, understand And kind really cost suffice see have there into look we take like a that lot are how and look we or open we a around will that’s done of to just can will we from but that we what of

Steve Wieczynski

the enter cost to -- door? And down some promotional get you or how you think, you reopen. thinking you eventually And order promotional road about customers And back back can the you. about were Got the in help how thinking to secondly, the in guess could your have start to environment, in properties? of Okay. then, to then to could assets think is are do about the going question get us customers guys what you we kind it’s I here

Keith Smith

Well, I certainly hope not.

and we it and generally I this across I a fairly think that shutting think hope, we and ended the when same. country as we reopen environment business we the were had remains promotional down certainly as we tamed

some that demand once back the home said that, the believe are do door. welcome Having reopen customers are I level up be we in stay and allowed there orders will to and lifted at of pent

I than that we think in markets have to have more capacity in the some in than demand allowed or are building have may we building. the we

simply So out obviously once company the market hard in and there reopen. we I to good able on plan think people are we are pent and and once to instituting building going we the a to up going demand to will as tell, get be don’t there but

People People needing are are to get at out. home.

across it You country. see the

every and of we once on reopen, You are I part looking will see it we escape an when People again, day. TV think, for escape. that

Steve Wieczynski

guys. Thanks, Great. it. Okay. Appreciate

Operator

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

David Katz

any be the about may degree be this the for list I everyone. for thoughts good to to hear we at and which to there whether my that to circumstances out the of Afternoon not this later Hi. question the of be of it taking of look might top you would there all ask where wanted of to opportunistic bit have Thanks and you. maybe be from that’s on. backend and but you be have, M&A would this? given come could But a opportunities you about on opportunistic thought

Keith Smith

Okay.

EBITDA now on very can. I focused in -- safety protocols a with do as front now We and producing comment as in think focused we as are sure not and is we on. and How and making we right sanitation now your kind are reopen reopen? of business mind, much the we efficient health of

that opportunities not if it always right present As goes, but where focus now. our happen we is see themselves, will to

is focus businesses reopened, we of these the that have built as maintaining getting the several Our and years. kind company on operating of last as efficiently the can we strength over

David Katz

would flourishing kind than up to you ramp localized is the more your it. respect you would if the How on two properties, we the if do Las of Vegas of unevenness can cite And I the can certainly point. the the be rolling that valley. slowly locals I across follow-up, total input How you about Strip. And think you Valley as without markets maybe envision what as in productive potentially ramps with functions? But apply the on those do a best Got could like more notion just can? when and welcome Vegas strip kind that to those accept what start out

Keith Smith

going international shows if up to visitation, coming is talk Well, of Vegas in look, into XX% we Las any want very visitation strip little to our the operators. buildings. But that to roughly of are

of in about buildings. worry that so don’t into the have type visitation we coming And of terms to our

we to it never kept locals really up. years, health at that I trickle did. would the market think, of think in rebound you look look it ‘XX back I that of that recovery and from the for took on in point and fuel and the there time waiting again it was from once at the I took expectation the for locals period or you strip to the time that and strip into the all rebound ‘XX that mean, market years this the if show

there direct there’s correlation was So there we I ‘XX. not am a in sure back if like thought

it be It’s I retirees those healthy. retirees the I still that not income market will will demand closed look good did a same large live percentage job in do won’t our think and because closed they going we so don’t started, to there we that before have that but be when be it’s of It’s a Vegas for and reduced Locals have here capacity offering didn’t’ will business their product within have our will March. going job they think March Las going now, there product. the we be the to like we have

David Katz

with I complete normal. all Thank for answering sets of you appreciate sort we are answers. Got of that -- less information thanks questions than it. the for

Keith Smith

Sure. Sure.

Operator

with will question Curtis come ahead. Next from Instinet. Please Our go Harry

Harry Curtis

wanted casino useful do Keith or it salon other is the your extent of to Are early, to the productive Josh. services, have likely to two of understand sort most there. openings, and I sense Hi, open reopen you, you pace restaurants. pretty to that are floor, be one that probably, maybe on probably, follow-up what will than businesses urgency up what or and want the to have going departmental hotels, openings that or to those start I you of you a spa the

Keith Smith

Well, us property restaurants, look operator each what type of their given the restaurants, have customers important. capacity those are given bars important earlier quantity, be I of high-end each most would issues buildings and like drive to have our to you of will which know property. and reopening number, locals you open about that that my local think will is do restaurants ones the mid-tier The have, those restaurants and and comment be customers. you think, should I different which be driven open. It having service they the will but all what and

for is of but small most hotels on properties. demand have will our Hotels in profitable it depend that and we us, are unknown,

I that be case will there. be the demand there at opening case kind will quite those that of rooms demand at for on product. IP we and X,XXX couple X,XXX because the the think basis But by rooms a large hotels, rooms of Orleans. based on take initially, suspect I a all we have hotel don’t We will the don’t

Harry Curtis

cash Thank is had based the names, for quite on even burn, I Josh, most your larger cap of more have probably, your you, even you got, And you. -- on liquidity a than one commendable. quick peers which

I liquidity it’s we you it’s yield that think, the probably, if of have, worth needed, it’s other hope and exploring, alternative markets. not sources equity what than high the

the look you could to that that in markets have the now and to secured should you the maybe So in you but need speak opportunity not -- debt need arise?

Josh Hirsberg

Yeah. Harry, and I to necessary think, as a balance options have sheet think our we and this do we on about environment. that’s to opportunity is more of balance and benefit what to from company plenty in we cash think kind of strengthen the the different explore continue put sheet

And a make as for company a said have we of of unknown situation flexibility and and kind and where maintain have I really a consider. I honestly to lot our have was a optionality company it optionality the alternatives think for we important stronger of the much are flexibility always before lot in position think to

fortunate are a we we And support have group. bank that

We good long-term with be have I very our believe what relationship investors. to

credit that we both I have with we to have with through the relationships that and have consider We equity long-term and alternatives. coming seen gotten think calls investors

flexibility. lot without think, into And we specifics, going I a of think have I

uncertainty will down environment write re-openings I I to we this and road. the a be And of think the use virus not something potentially. to that of recurrence that room in under or whether have decisions it’s make the and have of those will the optionality pressure or duration to we lot to with respect think, do We

So that’s how about today. would I think it

Harry Curtis

needed. it’s at -- hope leave doesn’t All let’s and right. will I that Thanks. it not it

Keith Smith

Thanks Harry.

Operator

Shojaian Please Jared next ahead. come Our question go from Research. Wolfe will with

Jared Shojaian

and will guess afternoon, neutral? a way I back operating take at to flow once that be Good to casinos a stab about order taking of going you And realize ask level for hopefully -- your you what everybody. think what cash capacity to at answer, open begin talk too am you I fixed reopen, Hi. question. to is different to this can get up? be it. just maybe is, Josh, I be a you question Thanks you Once need percentage to my tough cost to in but

Josh Hirsberg

Yeah.

a hypothetical right, you question. So are it’s very

are a all to I going the lot think trying distancing make the is, constraints that different we the that understand in of we social look to different. to It’s and and a now to are with of on business is sure working lot reopening. fully what are we make terms sure for look respect to that going we responsible put

But also [inaudible] not hotel offer we whether whether the in that it’s the that -- say amenities business we limited regard restaurant its I would limited offering whether product, offering side, a are product. bond credits, it’s

of the I be but that very that the when these or than for offset virus. think that the of much we to could to it -- the of business extra be to expense, deploy the prior very buildings cost different work will the different we need sanitizing was And need margin of some pay. than will it to steps was fully extra many doing margins to So it business say when we was a operating, were structure shouldn’t I

be to will we possible. generate can and will only very to and bet don’t say I businesses with be can’t that that it confidence we -- as we is the take but -- as focused positive, think think -- much doesn’t think quickly I So, will it be day I there get I cash on flow flow be one cash you positive growing

Jared Shojaian

do and from then corporate a somewhat you. But two you just from year share Thank to crisis back term you at back go of longer have expense. casinos that’s to corporate are knows. million now corporate helpful. question the whether to a forward? expense to years That’s this who costs One learned now, things you nimble on on guiding some this through think or year And ways your to think need on more you going level be XXX% that you capacity do $XX

Josh Hirsberg

a to the we give us a to unique us where to all, what is, and to important awful are and look of how is opportunity forward. we as -- very going where this terrible first business think, of really does an forward, reality we going I be learn our continuing is, at put priorities the the emphasis as our to gives It it need for result crisis as want Well, opportunity crisis.

I we about soon be less. of through will mean, some expense scenarios level, a it all do less. working got less. get through you corporate So ready guys and know that, are be as be much kind to stabilized think obviously the are but that indication don’t business as able I kinds think now, have we we I still do but give how thinking will to we not and will that of do can open, that we I of

Jared Shojaian

Okay. Thank much. very you

Josh Hirsberg

Sure.

Operator

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

Felicia Hendrix

so you Thank Hi. much.

getting would got just Josh, would I just -- that the you So, point? be to to you back to estate if willing sell questions, real liquidity

Josh Hirsberg

Well, real -- our I our estate would is well say, that I on philosophy fairly think selling understood.

we of is is our, preference. not I and have that important have that to a Harry, of alluded kind probably, and always a maintained we lot think with in options But company. the one that’s have said consistently our which thing we I really way optionality

near would probably toward It But the be like consider to clear. is It I to the that, what the the be at nowhere of where are move top would something the list, list say. of the on situation bottom have on bottom we list. then would the we not and -- be

Felicia Hendrix

Yeah.

switch helpful. that’s gears ask Okay. am I And okay. Great. you to and question, an That’s iGaming just if going

with have running. in iCasino first a quarter and did So quarter, the Valley up Forge first the strong

get maybe business of for lot gaps to I in about approval, So economics could people to or and guys, there sports states that from you where know talked you then just power just eventually would tax that the have more and fill also revenues you? if the accelerate to different are iGaming a approve the wondering expect the think you gaming if last spending

Keith Smith

Sure.

all where of was seen this of of have and to February Pennsylvania post launch the big land you think, world is increase where to I casino will call look, January iGaming it of product in COVID-XX with a shot. from I our based it what kind kind So, the in kind late in both in

I X-X up open and you think higher today will everything acquisitions was see than quite out come revenue the rate higher significantly. customer today when when XX% run are percent the was numbers it

already some will see sports this to think had budget take that look other start to I fill of were you about states happening betting. will adopted have there see states and states serious states this, I a think look lot have more been at conversations a you prior to shutdown those conversations the especially deficits, that

rolls gaming is the couple now this as the we iGaming online that over of that casino sports course been of years kind strategy have expect we to of with in digital and to and country. betting the out part deploying starting across of the participate last continue

So the economics betting. are sports they different are than in

for I think kind into get we details of it profitable they a different. us. are those but now, not in to business is are But a position

Felicia Hendrix

one just or XX? ever quick And base than Okay. maybe what for older is of your Thank say said housekeeping, could that. have you you percentage customer you now guys

Keith Smith

that in past, have the we disclosed think yeah. don’t I

Josh Hirsberg

relationship have but that something we could don’t get. We

Felicia Hendrix

vulnerable kind the Thank Okay. okay. casinos so, I of terms obvious traffic you. might right, mean I more in future, just to folks of you being are be in that class to for extrapolate trying the wondering reasons, of coming and obviously just that the mean,

Keith Smith

Yeah.

Josh Hirsberg

Sure. Nice question.

Operator

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

Barry Jonas

things accelerate or There opportunity once this? go remove back cost Thank you. I a may all initiatives but opportunities to to any was be other through efficiency is corporate any for costs normal question to margin there an permanently on guess operating

Keith Smith

most last years. opening Well, the do will we and and opportunities again how several not have then over And of the slot having smart knowing about we have to open. games done think be table machines complement with and we likely that there amenities load business, full I be we re-engineer to restructure are full of a

We of have the able be business. to cost to take out

think in while hard forward been at world. work, that last in how lower down, going this cost on made since I efficiently teams the structure said kind we i.e. earlier great understanding working we at progress the shut new we operate frankly have the business the differently of more can have I month over

what and move some see can But and there we margins. have life. when be we how as successful it in means So to are we the we will are confident permanent terms open and shifts that cost in are to wait in of structure we forward

Barry Jonas

to a Great. up you pick give and what maybe to And quickly can then Wilton just projects. I again there? go that mean you how status on see Rancheria the need I curious could am

Keith Smith

Basically financing point we the at nothing to to we because going a need to, defer time happening of for Josh. are is as for project. am arrange speak, where we kind in I

in we a to were that have go so Josh? can we market and hit, crisis place have and this and right we much until not market plans, this hit as GMP there’s right and But, as point bids, have We the pandemic to in reopens. we do time at

Josh Hirsberg

Yeah.

Keith described well. think pretty I it

effort of formulating and kind forward finalizing able of that falls and put to the we go to to We go happening just some to everything for us market close think financing closer to is. kind financing. start some to getting being. was GMP be time I really the the were has It to into to of sort for is able being were this on details final and

good it beyond But well we get and but long-term this. are the to obviously not as have drive we interested a But manager for remains as this successful. so very only to very hoping a tribe and project

Barry Jonas

business. it. given Got the remainder last sort I even guidance current $XX if state question million in CapEx the curious year? the And am What that of the are qualitatively, of for things of just it’s embedded then

Josh Hirsberg

largely. It’s

made people break have the things assumptions some nothing Sorry. there. continue so no largely and to Yeah. though even It’s in are air we in there’s

basically ready or needed the So to core to bank -- call will buildings to that. like buildings have base maintenance or it’s keep capital of assumption the anything going to just No kind that’s of expansion expansion No an I be what’s it. it about projects that. of nothing beyond and go. go ready to

Keith Smith

mechanical, life anybody is to and course need or continue have coming electrical, the think throughout regardless are with those the for I due various all in of on the safety or not the year. We systems of whether lives upgrades building. replacements which Yeah, of we

Josh Hirsberg

Elevators and things that. like

Barry Jonas

so much, Thanks guys. Understood.

Josh Hirsberg

Sure.

Operator

Stanley. will Please go question ahead. come next Our Thomas with from Morgan Allen

Thomas Allen

the specifically certain quicker and and one Hey. Good you region, properties there take thinking Thanks. are that afternoon. or just property the to Midwest on will And south types longer? expect think recover you

Keith Smith

Well, having a customer to hotel the are hotel of property are rooms closer those IP, of success i.e. market. into that come certain I of and the is property people there have that thousand example, that thousand of more Biloxi part base taken local think, for properties -- rooms that there filling market probably, the the is

would maybe some may came and properties slower driving, that really recover that stay than So Downs a is like other little Delta there.

rooms have but market. lot which a the We rooms of minutes not a treasure few generally building. or certainly chest a hotel XX XX truly is within People live Locals of a or hotel

kind So Blue our in or as Indiana. of you Northwest Paradise Chip the go through

Many of very those markets. local are very,

to property slower have further again be once come IP they of large That from recover. in couple base. would a they little with away where where a out probably have state We hotel a

Thomas Allen

Las Keith. the Vegas help you Thanks, And than significantly most the of how contrast during is the it us on it more obviously Can just market, crisis hit was Locals and compare just financial regional then market. Helpful. today?

Josh Hirsberg

Yeah.

is think The to the the I I attract really to did that it be pool think, you locals But business recovered So about many had is and pool don’t I it. a the than comparison population opposite wider more in quickly visitor because strip direct from. think think -- ways in almost honest. fact when

the business travel sense what’s necessarily more to so comfortable regional aren’t our that those be going people more a relevant customers aren’t a want all of lot probably had going and things local was are that and incremental that really It and that amenities with of initially. today to in

in the we be open. way be from probably less have limited contribution of amenities will initially -- as non-gaming kind will All allowed that, we -- we significant not where of a

to before like in to think get it what about how back the terms back normal recovery, to it generally as quickly. the we extent the viewed to we with -- we wanting open, how of folks to are Coronavirus. of want level I normalize are interact that also our people just seems business, a allow And they They prudent happen me life. can get to about fairly to prudent that

a questions whole the that. a almost of this time the it had that is issue, was one mentioned think, remarks, I earlier, lot spend in was at people lastly, earlier situation as then, in it’s the of or different, time And reverse Keith it building of we that

I necessarily there’s no the a don’t to going more restarting a from to have building will be place one know not have we people spend that the hopefully we people. will in where building to going issue in limited but

of are this, for a prepared a have very relevant. I really the the quicker think compare the contrast a are So happened when while a you lot happened I have think here really think learned from are there you to those different and financial be crisis were different. of points many And and that and we it lot that lot that, may it, that things recession, lot us say, are beyond are you not while you it’s

factors of facts And so front -- I come in about. to I put think people that are think those down the would

Thomas Allen

you. Thank Okay,

Josh Hirsberg

Yeah.

Operator

with from We have Kelley time question of for Shaun America. one go and ahead. Bank more come Please it will

Shaun Kelley

Hi. quick the Good ones, be of Maybe would two afternoon, question. taking probably question my everyone. Thank you a first last spirit for for in and little the reopening bit. just

-- some and Is that particular get given that there’s often. of move to it you sort first understanding or be across that you kind be borders watching to guys are we together for think as is going to you ourselves? worked watch are We and getting are are Do signals, try are to going go that just this just the markets that to reopened to of are portfolio. particularly going starting of any there people are obviously there you you your think any will states or be states fluid track clusters important

Keith Smith

Yeah.

those about this None of a leadership of casinos talked communities, Mississippi it. about handful next their or week, of was whether where their them couple you think states have other we opening and states businesses the I next operate and each Ohio weeks. constructive XX parts So we are talking state are good in week, reopening about of dialogues having with the of very in

economies, or of these future, in But of some important they going an point if all good the in the we or are obviously at conversation, and Mississippi in whether which not Iowa Kansas of opening casinos these, are of Missouri or the so the part are all you Nevada we that many or are dialogues is talking think sign we a about of dialogue, good on.

of I think many about of as was late happening that am earlier, used has will and a them again May open be been the it good properties not are fact certainly it I May we to conversations I that and many early But And -- there’s comment open late open. opened. if in you having many will -- at are of pace. early is see their am own as June, our our are all no hopeful good by used them lot. we are there once fluid conversations, hopeful look think many you June more but or

Shaun Kelley

Great. the then Keith. And clarity, on… for Thanks

Keith Smith

Yeah.

Shaun Kelley

any downtown on? obviously construction a those Can projects in or you may some market, market some going are kind of this it quick recently, the traveled by in of specific, obviously, impacted activity right but out in haven’t be how idea update who into of what’s and question, think, for for there focused us is the those some or slated how’s proceeding now that of we and of what’s those postponed level I but projects next. is the all year and us very just give bit a …second growth late on it’s demand, there supply

Keith Smith

close. had was my continuing So I ready because largely to was one Vegas really on supposed is complete. Downtown about open Grand two in -- insight project to to Las is It it that, July. That Downtown addition guess don’t was of any to rooms. XXX in been but the was specific it have hotel which

on Street. and that the the off. Stevens big cow from project Derek is They other Fremont across right it topped have

ahead. elevators I maybe continuing opening outside there the that to move don’t so taking date. the down I think is know and

-- it’s this maybe they next on to project. that are at think make into progress continuing point. year I But pushed

forward. other look on And a World Vegas center once legion Las again with convention are of projects happening going they things at one a once which going still Derek there there across big are where economic big here, on is still is project number There but moving the Downtown a or town. valley activity in the is stadium, again still Resorts Stevens the still

Shaun Kelley

for That’s Great. a all Keith. lot me. Thanks

Keith Smith

Yeah.

Operator

question-and-answer and I to Josh remarks. closing Chief session. Vice This Executive President Officer any Hirsberg, the would concludes our like Financial to turn for over conference back

Josh Hirsberg

to for remain want the please Thank you, everyone to reach you land the that and with out have you and or Good-bye. call that questions feel to our follow-up stay Grant. that all joining free And thank the bank more again results healthy about to safe Gaming, you you Thanks. wish company today us. extent from Boyd we

Operator

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

You may disconnect. now

Boyd Gaming (BYD) 28 Apr 202020 Q1 Earnings call transcript