BYD - Earnings call transcript Q4 2020 | Boyd Gaming Corporation

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

Operator

Good afternoon. And welcome to the Boyd Gaming Fourth 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] Please note, this event is being recorded. to President conference and like Hirsberg, to now Vice Executive CFO. would turn over the Josh I Please go ahead.

Josh Hirsberg

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

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

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

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

forward-looking non-GAAP non-GAAP of reconciliation to GAAP in are to our complete please refer release historical provide not both earnings furnished the financial Form and call. boydgaming.com. section X-K be our inability a a completion and charges for will special measures, call boydgaming.com the of expenses. in this which Relations section at website of to Investor our our shortly today due replay website after financial press at and of We Today’s available live project do Investors SEC to also the certain to is available our and of of being measures webcast reconciliation the For

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

Keith Smith

you joining Thanks, Josh. us. Good afternoon, for everyone. Thank

operations margins record that second This set new business, operating quarter of more sustainability we’ve the efficient our we of demonstrating the the established and our we more this focused consecutive efficient achieved fourth a nationwide model Our have margin is was record clearly of another model. operating across across fourth quarter XX.X%. display quarter as

make across Locals our potential our the from Our Vegas Locals the customers strength the customers. and in resilient results same segment Las South At time, progress as core of fourth also well. demonstrate continued in remained of continued gaming. the great local to realizing Midwest online and Business quarter our we growth

growth, mobile to I grow. And margins, further prepare achieved records. in Midwest that performance. in majority first continues for quarter we iCasino launch we gains properties open review EBITDAR a expect restrictions discuss December, fourth see let’s our despite with year increased and more for operating this operating sports Forge fourth the our were online the quarter in markets. as EBITDAR in many record our closures properties few EBITDAR offering. In Our but to in of will detail minutes, Nationwide, temporary the and again early of we south, our EBITDAR progress setting Valley first, entire to Par-A-Dice betting delivered nine and November,

our performance EBITDAR Mississippi remarkable a in Locals Excluding the XX.X%. and delivered exceptional also properties almost points properties X,XXX hurricanes To operating segment these combined XXX our than Coast increasing and Midwest with strong other South, year, Nevada, points, record basis on a considering basis Western Gulf X,XXX Vegas than October. margin Las of more by the margins our impacts improved improvement, and two seven to XX% particularly by South basis at XX% properties, margins more in over EBITDAR Results two were properties last points. are grew Louisiana rose closed as the from increasing in

event heavily While space. destination group dependent the softness to due levels, Unlike this Locals meeting last Orleans. on generated and by Locals at portfolio, The entirely year’s Orleans was was record its is and down of The our from its business EBITDAR X,XXX-room rest slightly hotel, and

Las in declines been has more Vegas. impacted a to by As significantly property result, this tourism

Orleans, X,XXX the fourth core basis our growth points the of improved Excluding XX.X%. nearly at record performance well our nearly Even results as New to properties, from achieved increased Year’s business holiday over gaming portfolio the while Locals that players XX% closed by the Orleans in core This customers weekend. of segment. profitability local of as our revenues The the and XX% capped continued EBITDAR margins up illustrates our strength local during The quarter quarter, were

the time, both, being the deployment have across are optimistic Las we the the As Midwest eased Year, trends country weeks vaccines At late we are New and the South. into move our continuing of Vegas same in the in of is December and we Year, encouraging business. New increasingly prospects for seen about Starting the operating six & the over and restrictions first accelerating.

this bodes our outlook. future All well of for

more expect marketing, we initiatives. and technology ongoing Additionally, to see analytical benefits, increasing

While results work is these from continuing. far, initiatives we our very are so pleased with the

by subject We quarter, in Technologies called the roll the to a approvals. begun locations and in wallet are Aristocrat new Ohio, with cashless Pennsylvania Kansas, currently and adding first field trial of Nevada to Indiana out After launches Pay. we Boyd in end Louisiana partnering a digital regulatory anticipate and have

course guests potential the long-term integration The engaged wallet of about experience become allow Boyd traditional digital creating one us with products properties and properties, us. reasons digital integration this smartphones and business. between we we is a this our wallet online our will functionality of our many customers for digital have to gaming play wallet our products. our traditional for choose to to with online are our on they experiences the gaming experience, pay the growth of wherever our to a digital Longer of the seamless the Over as will of offer true excited Boyd walls term, Pay opportunity beyond This the used everything create to stay we work Pay year, in our available will into digital cashless integrate properties nationwide.

online are is it business. already solid While our generating still returns early, from we

and our in will EBITDAR Pennsylvania, For over the This from online than in to predominantly business operation full Indiana Iowa. of $XX in Pennsylvania. including year we sports contributed more Company-wide full million Illinois, soon-to-be-launched contributions the share anticipate for results, from year, million XXXX, mobile generate expected our EBITDAR our $XX gaming Stardust year, our FanDuel’s iCasino in online

with see opportunity opportunities consider Company. flexibility well-positioned By to we potential partnering their maintaining is leader these FanDuel, to from to with pursue Louisiana, further ensure and year, explore are and Ohio, like opportunities, immediate Online this today, that the Missouri beyond and for lawmakers expected digital upcoming clearly Kansas, in a we gaming profit proven us a compelling retail legislation future. for industry generating market from while we our the many are online available growth to sessions. gaming betting Looking mobile our gaming to sports all in and growing

major that resort making progress the expansion this on good of With as X a the a to several we’re weeks. Class casino the us Bay just in pleased South the the to Wilton I��m start Rancheria California highway, XXXX. second south half strong opening for in prepare downtown closest Sacramento, of toward geographic the location our Sacramento Area, off scheduled the in next in after of ground resort will Next, to we this break presence be report positioning Northern its

their progress, know the are and are we allowing their vision start goal the self-sufficiency. realize great country, Tribe’s Across Company to our for partners that making friends bringing We struggling the many still but long-awaited is to finally our as Par-A-Dice to of life, members excited opportunity doing to a and closures we financial our cause and result want help. holiday the for of to forced close did Forge the the season. hardship these our team pandemic to are Valley doors, part COVID When we pandemic, temporary not during

for that our continue team and and extended our helping We our ever full of know be to XXXX company. have the members. environment, vulnerable communities a an conclusion, to new pleased what what pay and and In team property and so, just lies Pennsylvania in Downs a Delta after many, priority closures, last assist pandemic. these populations, are closed initiatives for the begin of ahead. Illinois about supporting that are am did COVID times members At committed the benefits challenging And for Hurricane teams extremely we same I as we member I’m we to temporarily difficult we severely our impacted able every continue accomplish team the communities duration confident summer. our These charities we to remain for year, Laura, as to relief been during with our through as support our time, by

of sustainability the demonstrating model, consistently margins across more are efficient record delivering business. our We operating our

our the in the industry, first progress Vegas Our six continue remain encouraging over of of and core across to Las digital future we for seeing are across without was XXXX excellent iGaming possible trends and but weeks our And a significant customers building robust year, country. on work country would make the presence progress the capitalizing the and of the of that our country. have we operations, And mobile Year. New across not growing this resilient also and hard regional our sports across challenging we know one a the Company. team members been

to as am continued today. several we I’ve every turn country, make way they day. to will Boyd continued each the for member team and continuing drive the to model. call that your that adapted our want work. do they efficient in members guest I’ll doing growth. now the for who and model of more our memorable the you lessons while of year XXXX is Company Over to to achieve over for of experiences deliver successfully It apply business, thank Thank we the and the calls, all for and focused frequently and about exceptional spoken last success a efficient team our Josh? Gaming I a I Throughout operating this customers service. have Together, every confident past Josh. more time

Josh Hirsberg

Thanks, Keith.

beyond close For and the happy XXXX. books are reasons, we move obvious to

On for and the this our year for Company, future. XXXX created has hand, exciting the other opportunities

leveraging Downtown combining margins on increased on combination of XXXX, of portfolio, Our operating the some behalf for model, decline return, in we operating were cash in Company. restrictions our of EBITDAR of from throughout business and And profitability that with of from focused higher are started a properties in to the our improved more for lead more revenue and improved the half pre-COVID utilizing the trends XX%, XXXX our recent EBITDAR the driving a base, marketing technologies higher-value teams to focused capabilities closed business, customers our flow encouraged philosophy XXXX. of remarkable. to half customer are many and better no efficient with of success delivering on our a continue the than pretty despite contribution second hesitancy second customers margins, will initiatives, actually

we our Company. committed higher margins and continued As mentioned, believe our operating the throughout to is sustainable, to teams our this are achievement Keith ability deliver of

a be betting advantage profits to promotional, competitive well-positioned likely to take also generating online capital-intensive in will and are what of We and today sports highly landscape. and is continue iGaming,

Our betting. ownership in FanDuel the broader in also of X% rollout provides participation equity sports

As one branded more April. states own this in legalize stake as long-term to excited only value iCasino will and sports, in introduce are Stardust coming to of FanDuel the shareholders. way separately, continue for And our grow our the we product leads equity our online winners

we strategy in are our that As we industry. evolve represented move that forward, opportunity for betting long-term is will to to well-positioned ensure iGaming online by we sports the continue our and

with also we XXXX from a strong Finally, balance sheet. emerged

have We and $X of until million. facility balance under a billion XXXX, no maturities debt our over no credit $XXX outstandings cash

begin continue by recent ability and are consumer confident to trends. we deliver in encouraged improved as XXXX, we our So, we margins, are to

and product. shareholders concludes and Operator, questions growing business us, online our more we legalized, continue our for the to our are are be value from take Stardust And introduce a will remarks. now Our that ready iCasino creating any for audience. as we to markets focus

Operator

from Carlo of Instructions] Santarelli comes [Operator Bank. first And Deutsche our question

Carlo Santarelli

and Josh. you questions. Hey, taking Thank Keith for my

about the Just in guys, not regional you December remarks, middle locals but up, things in Keith, of really for seeing the to through starting your market, present, introductory kind markets. starters, pick talked of your only

stuff move of rolling numbers or more see we is As that see well vaccine of thankfully, sense Maybe to the specifically of is a and seeing we who you driving go stimulus -- older on that have cases kind that’s kind probably customer as of the as some kind expect gotten you of back benefits should December starting what you’re around to how demographic, that what driving it’s obviously, what’s guys about year, based out, about if change? things confidence a coming exactly or or stimulus and less cases in see come is that? And younger of kind in may thinking the down, you’re more door? from, as specifically outside it think customer of and progress through starting to

Keith Smith

Sure. Good question.

terms driving I door. summarized customers it today, the is in you’ve of well think in what those

the of light the think, is end it I the of at vaccine the that tunnel. confidence there’s and rollout

But customer. population the I segment. the fourth of still cases with results coming to move there wariness Clearly, into people or later there out increased is occurred of It’s Year. months, quarter some worth younger seeing it’s last again. we customers over higher yet. the amount think, the the New shown up that is the live and The wanting changed much to shutdowns hasn’t and a starting the hasn’t certain and the senior we’re get as more life that demographic. door It’s the the in in same basically, the stimulus nature in normally six

participating get us operations. are and and vaccinated And a benefit comfortable so, out for that’s joining they future once our coming more in and great the

the kind and of and younger, at a February, in of nature January moving spending type QX. change customer saw into of QX much greater frequency than customer the higher level we not in overall the and the still So, in or just frankly,

Carlo Santarelli

seems one tremendously revenue significantly and kind and a the results, profit your at just on bit up at given there to more the expense, of in other statement, up else point. well revenue up the that? sequential unusual, then, through other that this which or I of was guess. But, is I level, the million were is but if a running that primarily everything as revenue of expenses, And that $XX specific, retail income else line look categorization year-over-year, of the other little both and line seems line I properties. kind was believe of driving down. there significantly year-over-year, I Is in as this the entertainment be other offerings place that’s is guess, at restrictions anything some are

that wondering something just in if So, that there’s driving was of I outperformance? bucket kind is the

Keith Smith

$XX that and number -- included and gaming revenue. be million gaming revenue it other in the is rooms, item, in much the food line numbers is Sure. beverage. driving that, in like other and what’s online that’s It that Without you mentioned, And would higher. down,

driving that’s number. So, that what’s

Josh Hirsberg

Yes.

revenues. number, bit detail, Carlo, us add that for relationship we So a FanDuel of taxes the just to be little is with to requires also, our obligated basically with the in associated

with that’s and as It the up revenue the counts is for also. we portion we that taxes, in to on taxes line get what And And from expense the tax seeing you’re payment FanDuel. expense effectively tax on the the other So, paying shows offset as revenue there’s the a us then form are expense. the behalf And of of then, that item, relationship online. of FanDuel. our other in the

year. out, all it QX would look similar If that very prior or you to took

Carlo Santarelli

just to the recording a was the from Josh, where quarter from trued the that quarter. And for are are getting in then fourth meaning sorry, just basis on fourth implies XQ FanDuel’s jump going massive it. the with That’s annual you revenues XQ Because an I perspective year? in entirety then, the you’re of up revenue

Josh Hirsberg

It’s Yes. up kind that of No, it’s period. basically a not a picking in of effectively It’s time catch-up. the pass-through. a reflection businesses

Keith Smith

is Carlo, the It peak of FanDuel’s benefit college football. NFL massive. season it and with that. And revenues sports of were you’re was kind the right,

Operator

comes question Steve The next Stifel. Wieczynski of from

Steve Wieczynski

the given, that bit, run-rate events, we bring of good going keep a or if should with or makes saying, moving we run-rate down about you number we’re Keith, of the if sporting I question quarter the line don’t can thinking forward, But So, fourth there, obviously, that are all -- sense? there. is if so line Josh pretty of know little high-profile Carlo’s that a kind kind

Keith Smith

Yes.

about to of of we focus seasonal QX is think, bulk way the probably it, early EBITDAR. all know, I and QX sports first betting as all, think it. extremely on, frankly, in with We the being

generated not we It north million based you is and if in throughout But, think today. when of said, will in XXXX lumpy. So, sports million It’s think trying even in the generate season. is consistent we on north to business, -- the as online it our we’re year about in the year. about or of EBITDAR $XX $XX you’re

Josh Hirsberg

way Keith think and what Yes. it. can you say annualize can’t another just don’t to take said, I QX take you QX,

Steve Wieczynski

virus point, understand And point, Makes And scenarios Okay. way are is -- was the terms you multiple us of what ‘XX would that out where the key wondering in That’s what Josh, think I explicitly would giving you’re And current and like the watching And have us to it potential you call end color a are backdrop. obviously, to assume what a would thinking are I tied the I there this could at those assume just be year. the a what that guidance look would is, not some about given be lower could for about guidance? guess, items getting this giving But, like. that. But sense. at of or why of guidance and to then, at. kind normally, most modeled other understand of we what help business is ranges guys year I guys you this I you end would mean and for helpful. providing any vaccinations stuff you’re this how without get guys of higher the

Josh Hirsberg

Yes.

you into going has Keith this So, guidance in ask the really just I be to I be of QX the this. customers don��t demographic we And as largely customers we weeks think on it on, from haven’t first we early this been six and of same. much to would upside you’re seen. generally participation know I because QX I’d has of much feel XXXX. giving views older able don’t a been he at to have cadre think jump any other larger seeing, the from right, to if help I’m that And comfortable and really point. that going Keith the The if described that to

We participation group than we among have value but all age have historically. certainly, the ages, older a across less demographics we have had higher

think time, we happen today, the is, seeing will anybody’s certainly will that the is feeling over guess it’s understandable that time but that. get And And as time. not over to so, expect we people that more that and of grow But, of I guess. benefit with when that anybody’s the expect passage to is we’re reality comfortable, improve

being some I demographic and points healthy, earlier younger have and the are at some making But largely that government that, people about, of of be think, limited some the were of the we unrated driven by questions well. is this payments we to our that made understand there it mind, asking segment. may a And from options is entertainment the point. as in

value And as out. think our that we grow picture, to rated to worth business. continuing on focus comfortable about that from customer, just our big That’s a how so, higher over customer, to business they more continued come and higher think more it’s perspective, feel that customer I us that and time

Keith Smith

on the Yes. the comfortable U.S. portfolio, vaccine months and and throughout the you’re and about the or as asking psychological come lowering and and the XX counts is generally, widely the passage really quickly The And people. rollout it customers Steve, operate on again, that of the the reported, at if out of will we business, time the of in throughout Locals about, which once overall in bigger with the of numbers. the the each to restrictions they the strength business of of case we -- the themselves easing strip, kind Orleans. get drivers markets help The really how recovery start get Nevada, here our support success impact next of of the of how over business counts where Downtown our we a then, so, it’s view case will because talked in impact

are Exactly those we quickly key the big of But, how out the things them, think is those about think all they the respond how and timing unknown. obviously, of are to XXXX. drivers. as those we So, about people roll and the

Josh Hirsberg

I piece, core as that core is, I last the I more business we I it, to we today then, have that And feel and good really it set about the about think the have. of think think add customers would we

We passage and are have potentially I and where overall time can conditions with alluding today. confidence. better a and the to Keith improvement They good get business as of as of both

Operator

The comes Securities. from next Please Barry of Jonas Truist question go ahead.

Barry Jonas

about Boyd do ask the here? ROI a talk requirements? Pay. about wanted bit I you CapEx Can you how And about think to little

Keith Smith

So, out you that I that standpoint, it lift. the quarter. to out from was given call Pay, would would Boyd on in a say we nothing -- respect us were a would the significant -- hear CapEx with It’s not detailing CapEx if

up products some ATI that from them. deploying leveraging already We’re technology and simply bought we’ve with exists

customers. -- we this is in it have our belt ROI IT out. strong lot and point, And with it we’re roll efforts to way kind data of peoples a suite very lot so, of a of sweat it, have early. our the of it be stay because the us but at overall our to think teams great there’s another offerings mean, and to very addition will by the be by invested And engaged lot of I will we a we for little under a two equity, property don’t

Barry Jonas

is intent And offerings it. Got be would link your or at just some to up Stardust FanDuel’s offerings? to point, this more the this

Keith Smith

our in that for but with something us conversation that an at in them. opportunity partners conversation engaged with haven’t that certainly FanDuel, that’s engage is We to

have it see. on But for great we certainly focused We’re so hopes as expanding wide, today’s far and I rollout.

Josh Hirsberg

could include forward. if to how that party capability a of The product FanDuel, has move the each suite include wanted to that’s products

Barry Jonas

point also, just in the the any betting? views state ask And -- then, getting -- wanted thoughts to on for about I registration moving remote state? potentially Nevada to And at of legalized iGaming some then, terms sports in any on

Keith Smith

something online It is betting other world, company. important important part online those important we is commentary, our industry. And is iCasino embrace I that is a specific No registration, I It’s part states. the No. which a growing is Remote of part either business. as topics. of think, is of and sports to the think of real in

the in strip supportive And overall, here operates differently So, dynamics. the the Certainly, we’re think operators. own state Nevada, business. I online operates Each has of differently. from state local each its

So, and all for new the customer online different But slightly up growth we have introduce of important. customer is this. is to way interest a in a It a new us overall, leverage to our business.

So, we’re supportive.

Operator

comes JP question Greff from go next ahead. The Joe of Morgan. Please

Joe Greff

more level don’t Midwest Keith, margins and what you just the hear because weeks the the are on the not to South that the XQ margin-enhancing workflows property amount, a XQ sort of it a the the near-term But, I undertook talking directionally you I this that near-term, year about you quarter you about of Locals, XQ, that saw I’d this XQ? your thinking love had or the decent guess mix guess, last sustainability as year, or that are six from of mean, open. a customer you I consumer comments has to first be encouraging given of about the initiatives in maybe would in say thoughts sort & the spent and and to properties akin have some this of year. that. we’re that’s dissimilar you than

Keith Smith

Yes.

many QX QX. revenue in QX and were board, issue. purely a the records it’s cases across you margins was That not at the margins as margins, QX look while if the strong clearly you as at look So,

detail, if So, look kind you at went expenses actually the of down.

revenues declines so, a expenses the and the a expense extent year, structure see we our level revenues. control very the have we’re with margins throughout over in and in down them. the the And we little in by were QX bit To comfortable QX driven rebound in and of

we’d and the to weeks, the six year, storm. QX of we margins them the go said move the year. as QX, where be, it’s And clearly, throughout is of grip expect were have six the see when whether first between this we the QX bulk I levels exceed weekend, about levels yes, of but so, And weeks first up, I talking about frozen QX was things expect excited as to in probably the should one revenues ice very we this last is trends the through country or the of until

off little to of But it. pretty of about weeks going that’s than still first we’re excited the So, the that, other take steam six a year.

Joe Greff

And XQ you Josh, you said shakes can but that help. talk you Great. have you if I you missed ‘XX and may where and about out expense And guys? for this corporate for did think CapEx, CapEx would it, give

Josh Hirsberg

Sure.

You didn’t didn’t miss it. I say it.

fully So, fourth I’d Downs that related the items a had work related of haven’t reimbursed kind insurance few well quarter as company. it to from repair onetime the in been CapEx as Wilton for the say, to hurricane impacted Delta that we

items of our All would $XX capital back was million. our the total or kind add kind run about take capital you of other million, in rate, those those $XX you about CapEx items QX million. out, in, if QX So, been maintenance have in $XX

in number. that was related Downs Delta there a bit to So, quite

issues for capital, deploying are XXXX, so, loaded million. -- the kind kind we’re really spread just to of good spending back-end $XXX we year, progresses and through can evenly. the end up no is than of move kind that this people given tend things of I dependent there as in. be that again, how especially careful month. month I’d going we’re capital. as full will more be year to of And really say for a of by generally of year, throughout would of on would environment stay all we at million bit $XXX us go But think million say, little we kind that the $XXX of And I kind say, the assuming to

perspective, I kind -- think think, me XXXX -- something of through from about here. I and look corporate a just real we of kind expense talking are quick let for comfortable point capital this that at

range today. million what kind kind of I corporate XXXX to to for think, we on based this $XX for know good of place expense, in we’re million is be a $XX

Joe Greff

a Great. And back Downs insurance to what’s that receivable? commentary, just the that or follow-up then, amount under you Delta would anticipated get the

Josh Hirsberg

it It’s just reimburse it. getting a all us when and be We’ll Yes. insurance the back. companies we delay between for submitted

really. a just we... But issue, it’s So, timing

Joe Greff

it. Delta how to Downs is much Got then that? the And at amount related

Josh Hirsberg

then It’s it’s $XX million to QX, the $XX just about Wilton. $XX million amount. have the number don’t and And of exact but it about the in front in -- related to me, million -- QX I rest like was was

Joe Greff

it. Got

the million So, XQ think... $XX to Wilton, in $XX in -- -- $XX to related million I or million

Josh Hirsberg

Yes.

You got it.

Operator

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

Shaun Kelley

at you should Josh, you’re maybe higher-margin sort stage, working throwing the be? sort we substantial as have just some to as stick of and last the just be how And of should profile, amount where of this off kind that targeting? items. targets of maybe with balance business guys quite cash. especially think or what about a this NOL I we’ll imagine, through Because well through prioritization you on us we corporate flow on the cash move leverage remind of as just any one Could with ‘XX on related

Josh Hirsberg

That’s right, Shaun.

so. be at or balance So estimated was the the about estimated is one, million NOL to -- first, XXXX year-end easy $XXX

X these our guidance again, X need what would targets times we’ll essentially be XXXX. stay to trying at Given business, leverage I’m set or saying I we And kind we’d if you’ll the leverage give would per think levels end of levels stay times be very were that. provide its But, track at by times we that in toward levels, kind end to if were the the closer toward we’re business does, current times I on EBITDAR then be of I giving of kind I’m would of say, of business course. at X.X X the to X like leverage uncertainty near year. this in leverage. anything of not for it to I current And guidance know the because that is of if of say those leverage, that And to ourselves generally. the end to the and leverage, the comfortable se of low kind don’t leading XXXX, you in But -- the

business. that about hopefully, think helps. So, People the

Shaun Kelley

months, great. That’s is about when question kind over customer that we’ve profile to to demographic back. think alternatives the present of a a last of other older chance also that and back just go few themselves come this Because the to wondering, Josh, going how entertainment Obviously, then, moment. any lot change I’m about seen? to when And the But, of kind a and gears customer there’s like demographic on sticky maybe deeper for wondering I you younger digging the discussion had this maybe. do

or insights from your thoughts you’ve any work are what Just any customer that done?

Keith Smith

how Yes, is it’s question Shaun, is customer that is going Keith. always to answer Look, sticky a be. difficult this to

us or I think, younger we’ve this that coming is customer participating. and the eight the out had good visiting through now they’ve news been for is, of six course pandemic months that

comfortable us. with And had while we’ve so, them loyalty get have and quite a their secure to

feel we other ability very to wallet. that share we have a -- the I their wallet of maintain think, good once entertainment share of Will maintain we’re we open? about and good today, Probably not. XXX% options are their So, confident

good maintaining to think, we But we XXX%. I participate going would maintain to would continue about us. having expect them and to with to that that feel customer be foolish

demographic more looks of about out roll decline. assuming customer the could get and nice get setup So, and case quite the out we expected we continue through that and year, the counts then comfortable, the they course as when vaccines to older for that out as XXXX you customer, think very roll the that XXXX good. younger be move to vaccines continuing comes new become as

Josh Hirsberg

think think segment question that I the demographic the at who’s younger that’s other really -- around been to younger the our business with we is, that growing would I XXXX, looked pre-COVID. to you the really in add thing I have in Shaun, has of, for, demographic, been the perspective really rated a be really,

or a rated a customer. That’s know of did of not we differently being that reopened. result So, continued rated. largely than kind customer pre-COVID. they trend And behaving as That’s they’re really we once any spending them a

probably entertainment there than younger and I risk. those about. a differently well, to they to And may because there’s is our else Keith of But, the and we of in is anything that did they performing would those be have more and ones be because our trying not build building the pre-COVID. think, loyalty slice do and don’t of that that the sign younger segment, any slice that are because segment rated of the limited payments spoke that options, at -- the demographic or unrated stimulus is a with that know those of that’s we’re up unknown the demographic is

expect these of options be themselves. even stimulus present levels to goes and them So, to continue we continue to loyal other away customers entertainment perform or would at when ours,

Operator

comes Please question Chad Macquarie. from next ahead. of go The Beynon

Chad Beynon

be ask travel. if a to if Downtown have it’s question customers sense for back a Thanks. to could on may sports you sense to given But, how that’s like, there wanted schedule guess properties, just driver look Hawaiian that most of event it’s do of I short The what a then, Orleans, difficult property? you that get that a have want any bookings going about half similar or of look and booking understanding to the I or the window? people big Keith, now, Josh, And future don’t

Keith Smith

Sure.

Las about properties, the visitation So, generally, by whether or the really it ours the when think generally, you be market properties, is Downtown in Vegas. driven just Downtown Downtown

generally Vegas is people And half statistic Las the the so, decades, visit Downtown. for visiting

in think Las what year. prior the need so, it quarter, half we fourth the was to And in visitation And visitation the recover. Las of was than Vegas in less to overall Vegas I

the of and the Street. first kind Fremont Cal for the driver and that’s So, Main

properties. And that second our Hawaii pretty and the market, I to don’t now, changing has The in probably up see tight is been until driver the a lockdown, Hawaiian term. unique near in

We’re number will of we back start a our before flying not that months currently charter. up. be It

will is the the but to year. clearly, general visitation in unknown, rebound Vegas I Las is the and a in of business six three business in much think think year, over of don’t the So, half of cadence I change be the months. just that second see to the next rebound of of that Hawaii trajectory also The I second half

the to The of include did As last announced restrictions, easing now the to Orleans have capacity Arena, Orleans, restrictions. can like we week, governor of Those XX% events. The properties, relates sporting some our restrictions for where up it for and attendance

on restrictions. And that approvals to working so, eased to They that. sit meeting do get event to as today we be we’re in able here

little to take back while everything that come And to and business expand that start has rebuilding good, business been canceled. to we’re we will so, start now, signals because that a of the can those. But, are because able

weeks they’ve windows, windows, of of I booking are the historically, days. a terms booking anywhere from two frankly, a better. month or couple mean, In to zero been today And to

near but so booking And are see the don’t I so, were that portfolio, Nevada, Occupancies expanding across future. in year. window in the not they what of or across just business half the generally here last

So, hotel business business. a tough the the side still tough, of is

Chad Beynon

terms what’s versus business, some in so, the in your core peers? to given financing? the lately, just a traditional might then, on-balance if help incorporating bricks-and-mortar of that M&A, your regarding latest U.S. regional thinking position given Thanks. improvement REIT than your sheet changed appetite your you in of be And better And has

Keith Smith

this over sustaining operating to think, Josh six we months flexibility, year didn’t much focused this alluded uncertainty. closed, when sustaining here number model. we’ve either. maintaining our sitting expect or talked ago, Valley are It we while I to and happen momentum we’re a to that financial closed we’re Look, only the of Yes. CapEx, in committed forward. built in last have today both a a was certainly he up new to, properties very Par-A-Dice expect on don’t period positive so were sit we and that as we Forge about in properties the here as of month And ago, going our But, operations so,

And cautious respect But landscape. our focused we’ll to focused see watching in existing the just we and flexible remaining so, capabilities, model I think where we’re and on there. financial once go being on our from we’re with again,

Operator

Katz David from Please ahead. comes of Jefferies. question next go The

David Katz

that right, with the You’ve wanted just there or share between I go covered the and wise can FanDuel, a strategy digital you detail. at iGaming, holistically, data cetera. in terms lot look of et relationship to back Is a anything impact, or a its a as of so can comes benefit as see positive it to negative substitute, the neutral? it’s question a that It’s business, lot up far? or land-based on you benefit generally whether

Keith Smith

iCasino we’re go have. business to, other position worst, level having don’t the with it’s see information today properties respect visit any the have to we try believe our speak to business or customers of online that. is, a us of think to all. detriment We today at mobile based customers as It at neutral additive detail betting and we to in the in data any having new cannibalizing that. new specific But think, here don’t overall, speak on we don’t a and high terms into those to from. generate or But people some the specific betting, creating to with just and Yes. the I I

David Katz

it’s be see you that Can have. of what at more stage. you you from economically FanDuel, to have It in structure where you at And at respect sort some different others most obviously, control cetera? the own least to et working technology, strategy with that for evolving this point, more place, yourself appears assets,

Keith Smith

partner It a of making money sports have obviously, FanDuel actually north this very online see one again, relationship evolves wonderful, through do they’ve about Once continue been it kind few is of been future, and the comments evolve certainly is but EBITDA strategy. how everything the as of great today. the the to operate overall year to We $XX probably in million producing in whether will And have a FanDuel. great in companies $XX great where million our has to flexibility whether betting a And ability we partner. our it noted future. or in goes relationship. we the last successful a in been it’s and determine -- year, we

So, comment to on. else really, nothing

Operator

and ahead. from go We of have come time Please Hargreaves Stifel. for question, that one David will more

David Hargreaves

wondering like just anything what Haven’t that. And shortly. going done I’m will is to break seen with an financing Wilton plans this the for be ground So, look advance? announced,

Josh Hirsberg

part last with your your will Dave, -- of be this broke what done up, sorry, I’m question what?

David Hargreaves

whether if a just with you’ll initially financing should advances Boyd for for be we or market from wondering the looking working Wilton. I’m be capital in

Josh Hirsberg

we financing to build We place the when third-party to in start would expect have project.

David Hargreaves

are you then, bond market and And hot that Okay. in callable a going right is of issues the XXXX, couple have to now. be

puts doing about So, the some arithmetic doing favorable. I’m calling bonds It of you’re refis? and wondering and thinking takes looks those, very just the how the possibly of like is

Josh Hirsberg

Yes.

for will I our perspective, to respect the some, for those But, when from opportunistic with bonds think, a some favorable; be refinancing become push. we bonds, they think, callable. it’s I of it’s

a optimal our balance that structure capital structure next to our -- has benefit this two favorable to sheet. next we us year, lot the the basically the think, optionality current a years, that over and kind gives that I create flexibility we year is, in ability have want refinance and the the environment. over And next of of very

to where we’re weigh kind end So, we of all going figure that and up. out to want of

David Hargreaves

quarter to pay leverage your last rent factor the any in debt you squeeze down one targets Did during in I one? Could adjustment? the

Josh Hirsberg

pay Yes, cash I we don’t But down We’ve shouldn’t actually how generating we haven’t a been free much building down been I -- it in flow. QX. of front we’re -- lot cash have rather. of I say, well, -- much debt. me we’ve don’t know paying been in of how

reopened And when the so that basically, of And when amount as free generating cash of Xst we’ve cash. I cash XXXX, don’t of have around -- have today than basically properties kind all all flow think, at our and June would the over of we’ve me. all even year. of that been But, happened. we And in accelerating that But factor I been what’s second front been I we XX. half effectively, in -- the that’s say that deleveraging, June year-end debt has did of you as less of

So...

David Hargreaves

target was just conventional? or adjusted, that low-Xs, was lease And leverage the that in the

Josh Hirsberg

the very and was good it context of guidance be we’re not of of it’s point That’s said XXXX. until in where kind at extent not But that time, the would be To coming guidance. we business of point, very leverage. stayed end similar similar because point just today, conventional. the to a a a giving for the in in like meant That’s I we were

Sorry.

Operator

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

Josh Hirsberg

you Thank to have you, to And joining for questions, if Andrea. Company. And thank feel today. free further everyone, any you, out reach the

Operator

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

Boyd Gaming (BYD) 17 Feb 212020 Q4 Earnings call transcript