BYD - Earnings call transcript Q1 2022 | Boyd Gaming Corporation

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Operator

Good afternoon, and welcome to today's Boyd Gaming First Quarter 2022 Earnings Call. My name is Sam, and I will be your moderator for today's call. [Operator Instructions] At this time, I'd now like to hand the call over to our host, Josh Hirsberg, Executive VP, Chief Financial Officer and Treasurer of Boyd Gaming. Josh, please proceed.

Josh Hirsberg

Thank you, Sam. welcome first and call. earnings everyone, afternoon, to quarter our conference Good

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

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

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

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

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

Keith Smith

everyone. Thanks, Josh, afternoon, and good

business Our first the start our a and a remarkable across XXXX. were to great continued XXXX quarter another momentum results performance as we quarterly delivered record of

margins and our the This Las Locals been year's nearly XX% quarter XX% enhanced as three fourth EBITDAR on revenues XX%, XX grew reached that This more In the our capabilities quarter Company-wide record than new record structure basis customer, first by revenues XX%. records. streamlined segments have XX% XX%. a marks EBITDAR in than was locals and last our our EBITDAR year-over-year. up more quarter of contributed focus EBITDAR margins record first business, revenues, core more were Vegas rose nearly were margins margins Our new growth than operating operating each continued to and posted up surpassed first of points. broad-based consecutive all and operating cost quarter. above

Our of Downtown South of outside to EBITDAR And our Midwest its quarter last record growing performances. recovery, delivering over continued first segment margins XX%. Las revenues in Vegas continues well, Nevada, year's and EBITDAR perform record business and

during consistent to a COVID off got and consistent fourth case and saw start several we spend. the counts both Overall, trends trends as the year, began with January to remained subside. and play also around quarter variant, concerns counts, last the While with quarters guest customer return third during the quarters. to last due the slow business and levels Omicron quarter gradually first of rated remained COVID including Unrated frequency

three as today, throughout of customer as have present are continue challenges April, the seen at of macroeconomic have business some shift three first in noticed last not we While at weeks behaviour look levels the we we the any quarters. each trends meaningful

One be to we we the business. have opportunity the is we Looking to all at hotel anticipate are to grow unable continued the business. our demand growth there from Due for core of further will constraints, customers. year, currently our through our accommodate remainder opportunities labor

midweek nongaming incremental destination we our continues nationwide, recover travel gaming we three Vegas several segment the throughout open with the and both over business, Las of the normalizes, in quarters, As in properties. convention and the recovering the Las our Las and players to all providing known at properties both labor to to revenues. expect we see hotels, our growth market meeting will in further as in Also, And able our host for Downtown broader more and these recovery particularly see and be improvement downtown next expect now Vegas opportunity continued to visitation markets. Vegas

In also at growth In Treasure Louisiana, will online in replace our Chest, opportunities Riverboat construction which in we operations. facility land-based plan existing on and our both this investing longer-term Casino. land-based summer addition, a we're to begin

complete construction and this to XXXX. late in expect We open facility

For has will a its experience attractive our appeal significantly our XX provide expand than while loyal increasing for customer nongaming further customers. its company. strong consistently more performer years, By a Chest more Treasure enhancing we'll and gaming base our entertainment been to offerings, that

in investing also Las We are Downtown Vegas.

in busy work Expanding especially gaming the weekends. Fremont's the casino to help experience, dining leverage during and floor expand our the location space started have Fremont options. of Street We heart better our will us

several also adding open early XX machines, work by further We enhancements confident early complete concept X,XXX six food Northern service growth hall will venues. with appeal on this the are nationally construction fall on food enhancing downtown next including Casino, California, in is slot quick our known Fremont restaurants, on and are table Once XX And and we continues these beverage budget drive the and a segment. year, three in Sky brands. to that will include to which schedule games River months

Tribe be the We self-sufficiency. doors compelling look agreement Tribe River’s Sacramento, ideal for just Wilton of tremendous to of in coming and product We fee manage confident River management their opening the this receive step are will vision will months. have in Wilton project types to a an With arrangements. Sky a forward realizing typical of in Rancheria forward these X-year we entertainment Sky the a location a with south with management

acquire includes system approach to in including are With full our casino In land-based and to distribution, geographic of proprietary our strategy Pala studio. to announcement a we with to program technology quarter take Interactive. the us significant emerging a a technology acquisition operational expertise and these loyalty Pala's a gaming The position strong online iGaming online our This addition to account Pala the direct we business. successful casino products, ability business. online advanced management create game a and will we build us investments, suite regional our acquisition will during both of iGaming profitable marketing player provide need opportunity. a database, to the with and confident

we execute remain the and approximately the profitable the in betting in EBITDAR we brand sports to leaders through expertise sports partnership participate betting we sports leveraging have the one our And nation's will betting in across equity with the have our ownership clear FanDuel, we business that betting, the of to FanDuel strategy, $XX a of country. contribute results online to sports million As fully year. in expansion FanDuel. of gaming By built opportunity this our our X% committed

resumed our our quarterly us allows online investments our to the cash operations, ongoing future balance flow $X.XX dividend land-based our program and return robust of with April free XX While we actively shareholders. continuing payment, in per invest share to these on to per a our share we $XXX repurchases. growth from capital We $X.XX share. to same which are payment share opportunistic more of time the also is than our make programmatic to time. previous At quarter targeting stock time, double We buybacks, approach may repurchases our dividend in per million with

shareholders capital we shareholder return to part $XXX our to to this commitment our on year. program and remain of Our is approximately important track value, creating million long-term return an

share to our updates will report ESG gaming this our also with We report, is forward diversity, published. our release ESG remain with we detailed through Later ESG on of we we As report. committed our our this to the stakeholders to progress create you information continue efforts, shareholders, information benefiting value we annual In initiatives. this ESG gaming responsible our for our provide will initiatives. and environmental, look on including sharing when corporate quarter,

moment a members take last team to who vital want our role to years. I over conclude, the in thank played I a have Before our success two

of XXXX. COVID-related team repeated began members and restrictions and reason in loyalty why we challenges service pandemic is with service important have to such an come delivered early our has consistently team core have Despite a our customers. our labor the Our That built overcome guests. strong memorable through first since shortages, level

team continue members team Earlier long-standing per for members and their We our ways. will in as our year, commitment And non-tipped invest fulfillment, be to of in team minimum $XX has part are that our everything we this our hour. announced wage grateful meaningful to we increasing to done. we well-being all professional for

extended program confident members started our in be your months. and next choice. for to payment appreciation continued expected consistent two XXXX with This of call off bonuses million XXXX have I'd team to the team this summary, our offerings more is our great addition success. than benefits positioned level. to to throughout well $XX XX turn completed we perform follows over an many to implementing paid a investments In today. part months, the you nine our over to commitment opportunities are the nonexecutive now continues the our for have we These to We start employer to time of XXXX, and over are as being Thank other already growth and as at last a remarkably of the members. business With for Josh. company to is like

Josh Hirsberg

record consistency our as also volumes of we over XXXX customers second maintained Thanks, well Keith. levels. unrated Company-wide from with strong trends are quarter ahead of first business. The This company XXXX saw operating we last from year continuing, momentum our margins and in core pre-pandemic business successful half EBITDAR. in the the another first and we throughout with was remain quarter customer improved and for revenue our quarter delivered record growth our

volume leverage comparisons our it be shares in $XXX request for end Board plan $XXX share programs. repurchases Since buybacks quarter, million leaving those our the strategic activity The that trends to is time. we've flow million of our million continue at able last government the in was the trends are repurchases executing million quarters. representing investments to the company's X.X count first impacts necessary of comparison additional of million, business and and time. program, We challenging with return to with to intend million the second COVID remember during quarter repurchased in We continue business. due from substantial approach not capital from to our change the important April the We XXX.X last in from under This year-over-year of strength last that will challenging spring With March our to shares operations, positive throughout repurchase to our we quarter an quarter shares. the what lowest significant of into at the to average million commencing our continued authorizations $XXX to Looking expect total does current during reflect the three a we The have in portfolio. history, actual opportunistic per board $XX.XX. stimulus improving to programmatic of our and more continuing continue are direction ahead, be $XXX our balanced quarter free October, our similar seen X.X as with repurchased stock price share through the end time supplemented of authorizations. cash

quarterly and we continue share payment dividend We XX. shareholders with to invest payments return month and year. a maintain also our to repurchase we -- maintain programs $XXX track, resumed earlier this this to on invest At grow and business. In million the expect $X.XX April per on approximately our to time, share and total, dividend are same

spend and an projects additional million spoke capital the Keith that approximately on and about. year to expect $XXX this Fremont on expenditures We million Chest maintenance Treasure $XX

million acquire lease-adjusted capital transaction leverage X.X close quarter the quarter first Pala to million. total the year. cash first first expenditure $XX and in Separately, were and of expect the at times $XXX this We ended of to agreed leverage have times. we Interactive by with next for X.X During quarter also

strong we're to portfolio ready that thoughtful will focused our we on remarks, maintaining the business from call. answer questions our and remain our our and through forward, building online move in concludes presence. and any participants we existing operating our on growing As performance investment Sam, now

Operator

session. proceed. We will Truist may comes now from the Sir, Our question begin Instructions] Barry [Operator Securities. you Q&A of first Jonas

Barry Jonas

downtown segment to a the actually on I had start. question

higher to of going note time, you for interesting the impact and those think from forward? some following strategy talk gas charter us Maybe no about prices who've I were noted. For the been guys business it's there

Keith Smith

Sure. Thanks the for question.

buying Hawaiians numbers. actually not and properties So has show quarters up in our strong our seats subject own continuing in our performed and that and prices. Airlines over of gas several in running to and We've not to downtown exceptionally kind we are model well are the are Hawaiian last charter other airlines. We the currently, modified and fluctuations now operations so on are several

changes. fuel And that we're we subject so -- price don't to risk not of

Barry Jonas

you noticed I didn't void then And pay. mention

there? updates driving of think any play if it's if higher any seeing Just can And or spend you curious terms you're Maybe in comments give levels? on you what adoption?

Keith Smith

Yes.

last continues I active to I of slow, said in So through I very be quarter, this would XX and is a rollout. probably properties think today. say, It modest it our

We it of one launched launching have in or our Nevada are table games. on at it properties

it And so and it we out. continue roll to expand

We early software continue the kind kinks of to of in through types happens that with work some always of products. these the

push a or We launch marketing major haven't done yet.

it it. a do slow The it. you playing convenience the at of kind enjoy higher So be it adoption. significantly that used people they're they adoption, enjoy continuing a and of a again but to ease use it. that that are once the or continues have tell like to but it I can't They positive level,

by more roll adopted the time So will and something fully that I customer. little just a be to out think take

Operator

Steve, is question proceed. Steve next please Stifel. of The Wieczynski from

Steve Wieczynski

seen Josh, terms or of like business out seen -- which changes any would there's across across potentially April be, any customer your continue be spend the there want there's So mid- the about have guess strong. Keith in about ask trends question sounds strong to even whole or And low-end Obviously, or commentary, have I my certainly remain to across consumer trends versus Or database portfolio? very I your you markets certain concerns the high-tier customers? weakening. you

Keith Smith

Yes.

the and we've term we consistent an worth I continue of at prepared well. aged is think that's end level mid-tier as our the high So used to seen. extremely exceptionally at The portfolio remarkably the The customers was performed database, an overall, higher in consistent. well And look higher perform the what or performing standpoint. demographic remarks we from

But honestly, XX side, the fall some once as to remarkably and players started The and of on they're core But it's throughout look the has there customers of But we Omicron count database. not kind degradation our that have to replaced with falling the XX are younger also consistent. big off play additional database, it's really unrated off in on kind numbers. trends in older is demographic, group well they're or customers. at with the our we being assume extent customers that drop consistent. discernible analyze are the perform that age of out to COVID coming our performed mid-QX, To well. the side. when we been Look, unrated continues some Our extremely extremely

Steve Wieczynski

again, start the into that people in potentially cash year to that versus year to cash little to of probably economy, does still this kind that given of smarter returning you thinking of we of that. guess at leads excuse second terms sticking I kind change So there your shareholders? me more capital do kind to went my all? a return shareholders. of And me I there's of question. kind going But said that much I'm believe be $XXX into to could Meaning and sound to program, a bit you through heading so correction out your in terms pessimistic a for hoard you're of here Josh, million

Josh Hirsberg

way potential I with leverage is to we're dividends have flow the our we Steve, Yes, contemplate made share cash and to using levels we're in community the dollar not our business. and of available think return every free at the that's the mean, we've and we repurchases. one it plans around that about to we think reason shareholders I running are. risks discussed us to And built that programs flexibility and we've to investment is, that

growth generating free not as up flow. every aren't We dollar capital toward -- we're programs geared flexibility cash We're that using have our there.

not built risk think of where flexible look build at as terms feel we about in programs naive it understanding, to strong and are of the about have tried kind I we So being we've the understanding today, sheet on having potential in like sheet, it a at thinking balance balance business, a in in as in, and we're and we've executing decision-making But we we forward. go point. that this we some way these cushion flexibility

Operator

from ahead. question Shaun next of please The is Bank America. go of Shaun, Kelley

Shaun Kelley

Just that to Steve wanted back kind start, the to about of Josh, I consumer maybe asked a little bit. to go core

I you give you markets, of specific down think patterns just a of saw of could in maybe just we core the sense just if business. break the the us some maybe regional side

bit year, earlier I in seen year. think there, in concern relative been in some to there's down a back things little the of half slowed maybe certainly, the trends that March, last

there. across of regional maybe some you could and what the about the core of some behaviors talk you saw markets So just

Josh Hirsberg

Look, didn't our our from in the as think away his March. March, mind, was we as business April, in and build actually, into looking our that, continued then Omicron. Yes. the good mentioned to at remarks, we and trends I certainly through at continue we as least Keith it business, going were in into -- February in quarter came

to of in bit in started business our do benefits a behind And then of some South the out quickly. kicked have March, came that. little you Vegas at see realize, to Las we stimulus really certainly, roll in kind to pretty and pretty a level high Midwest and Now start late

but customer those remarks, to the be other. markets. one we been some business just wasn't well, as me the of but of uniqueness’s general have and going that in, that one-off Midwest and at say more the and We That That was consistent of was health in to some in on the other at -- exogenous. trends. South in people issues related things markets in operate see market versus of trends kind when don't did it's it have we as look a So his the We I Keith business. -- sequentially, this heard look know continues mentioned

So good overall in things as there, consistent it's feel a I I percentage volume think, where I but think being the are we maybe business mean business. and is play, there has trending some other very generally of of about been of today softness pretty unrated -- by that the our acknowledging, unrated our replaced

Keith Smith

things. maybe stronger it. counts went Omicron, quarter it Shaun, mask the and these case least actually January we Yes, down Nevada, impacted two came was in strengthens you off. through Josh as got went but One, as by here should emphasize as at mandates, said,

understand. to important that's So

of improvement trend are as Secondarily, half sequential because year-over-year a half in the the the stimulus is move or clearly, last March of May, year. not because year-over-year sequential April economy second we about into and it and and second March the tougher April comparisons that in the was of

are as to QX this sequentially we perform we to times, QX, or from very the looking over business QX, we to continues And transitioning number a as QX, So of have sequentially high at at mentioned QX. level. a look

performers strong see in to continue upper performance from our and our We database. strong strong the -- growth tiers database of

Shaun Kelley

obviously, would my lot other kind margin of remains the And of where backdrop. just sustainability the follow-up be, area and question a inflation broader there marks the really out there's

you little structure think wage. of give of your just sense a a us either getting Maybe Keith, cost that back you $XX the how get to you could the labor progress for kind of us of bit, kind Or could headwind mentioned or sense through you -- business comment what where side much XXXX? minimum may So I as we getting of $XX help a from to think maybe the have your impact? just broadly a a

Keith Smith

Sure.

core maintain majority margins business So a the of increase. of to these probably we expect elevated now our our are have of as year do talked we the just we part part generated, maintain that of the not we've business, XXX% will about and while now, increase for that

and expect marketing back time business back costs business. to do some we payroll So into some come to come into the over the

to and but commentary the wage of of So point couple raising into margins, we is into we've of our expect minimum of $XX to maintain not our what last over built very our the years. course an high thinking every Built hour. achieved the

And are it's nets the kind insignificant, believe members have at as able hour, out. attracting as built to it that to it there attract our overtime business, members offsets less we team by into has are estimates. so $XX able as all more less in an we're we turnover while more we And run not of team been

our the not it's So margin to overall our any profile any or regions. one properties material a impact of of of one

Josh Hirsberg

labor thing it too back labor adding add other in add about one I to remarks, we relieve side of we're into are the would the is And is have. of Keith, talked terms with of that revenue to labor well. there's is really I team short the things. we need members opportunity associated where falls And two our on think then mean, there on other some of bringing the of amount the back, labor in strain kind One -- to the hotel of opportunities I it as just about side categories. his that back

the away So opportunity we're I as on high-quality as filling gaming and non-gaming on turning the those customers well over hotel to casino cash them with side with that It's pay continues today. have not think ADR. guests to about it's also return an revenue really this side just filling rooms a about hotel that because continue business time, we

are as that costs that opportunities to well. business. aware capture we the to I'm And we sure there that the going over today. But of of costs at time revenue haven't also elements time, the back there's into come some So ability same unanticipated aren't are there's have

one not opportunities. that also so pressure. So it's to just will of the see ledger, we on side speak, There's

Operator

next Santarelli please question proceed. Carlo from of Bank. is Deutsche The Carlo,

Carlo Santarelli

about you guys a talked little Josh and labor bit the front. Keith,

meaningful of expenses, those up any cost in seeing are it regional that majority Just acknowledging, kind along gaming be you things are your markets. the in inflation, utilities, your especially Are pent other signs of cost terms broader of and other clearly, labor any taxes lines pressure vast in of way?

Keith Smith

costs. P&L. expenses at quarter-over-quarter marketing costs up we the are Labor, are when certainly, so and when and largest share we gaming there are I captured look year-over-year, But of think you incremental the it. taxes utility Well, look the

up I incremental just material check. the are menu think business. they increased up it, we utilities, prices year-over-year. costs average and being they going to Josh being up, but by will costs food impact, Outside also was Are being of in no, are alluding up the costs in increased see clearly offset a food having

a so we to hard is that And Utilities, there a impact it's goes just lever offset, of as pull can food bottom cost so the line. that's to up. pure

it's outside monitoring So of two those issues, where we're and mind watching. to I'm Josh, But something we're not incremental nothing coming costs. is significant seeing

Josh Hirsberg

and up think hit and Carlo have are gone I labor No, items as on. them biggest our all, well. that you we're It's And really. particularly utilities marketing-related that costs, focused

some at facing comfort I think cost ability kind to these taking margins we're some of we're of increases. while what our maintain least our is in,

business is on being getting of core I better And helping environment. for reopening a drive And of and lot the try get to are side. side really as offset some costs the utility really pressures. us also core and this them mean better really is that on what trying help we gotten of continue working on but these our customer on that cost in job to from kind were food at pre-COVID, on good But our closed so focus operations since the these just that of to customer doing business, customer us just I loyal teams we've seeing of company think to that being core balancing, kind just a successful some labor into focused and facing be a COVID. since this continuing we're

Carlo Santarelli

theme. up of that And if kind follow on I could just

and to If there in just some tax think exist kind way believe the with to to changes you prior. OpEx to that over it's nongaming that think kind the some trended, relative of of And of quarter you down about OpEx given seasonality. years, smaller was of real-time normalized out, kind you seasonally, I materially of think more given like that regions first how off and of it increase quarter, your kind first the that, kind the other or believe the pressures several going prior kind inflationary has that and of wage I reason the time, years, of of minimum may related OpEx about obviously, seasonality the then is guys of call in back some stuff just in trended the 'XX of a then

Josh Hirsberg

understand saying So to if to that make taxes, you're just seasonality you OpEx, sure related through question, took that is your the there Carlo, year, I question? QX your you move -- that's the excluding as

Carlo Santarelli

on the saying, of been it's side a If there, went ran that material the that seeing, quarterly and different than the basis, you're cost 'XX, you in way a in seasonality some years. think sequential dramatically the year? this I'm Well the presumably there's and we change do given be kind that, moves would at from 'XX prior of throughout back 'XX, year things year, numbers, this on looked those it

Josh Hirsberg

Yes. if your question. answer not Look, sure this is to I'm going

to your look seasonality and use and not about if base a typically there think ask look think use kind I obviously again not noticed a variable. at like at it but as of we There seasonality some I've is that I XXXX, So of I like -- XXXX so year some for dramatic. I to ultimately, if that question. it's point missed back But I look hugely that back but the think

Carlo Santarelli

been time, you're the in that I enough minimum was has wage other guess, was as the real this are things to that more to -- guess if costs kind to. and those what putting easier And got kind way year, of I so going what kind disrupt what of seeing I I up of you're ask. historical Yes. is seasonality, that are

Josh Hirsberg

I yes, saying. think what you're I hear --

I'm -- looked we're and having away COVID-related you and hire more labor longer because could there's So business, out, point a that you offsets are either on just associated to with not temporary to on cost, other we progress want in you those there whether be folks in think either the seasonality also going you're I labor where isolated those or But -- costs that that increased from no higher the you're potentially. that, would costs. words, are had In I year to as say getting wage some well. as bringing are business if through there higher the have that at you may costs at

as So quarter, are but to higher the the oh, be going I in it's if of There they'll cut going and labor. that's continue back that know year that. some -- mitigate to grow It's well add they at to will only not over offset that happen cost, puts going to totally as think first to going will as some time. don't clear but takes a it, not and happening are I we're throughout

Keith Smith

Yes.

So there were labor. using as OpEx yes, you converted as to Carlo, that labor Josh at other be some a back. And once seasonality you'd 'XX increased isolation, of minimum yet. in expect fully not we wage may said, looking contract that cost base, will be to as XXXX in some because again, have be went revenue increased then a and opportunities. offsets if aren't cost costs maybe pull -- through at you be using the incremental we're utility to baked in-house there'll you But lower There'll be

whole or you so OpEx it's will. about the about think to And kind hard of the without the if thinking isolation whole picture, just property in

Operator

Jefferies. please David, comes proceed. from Katz The David next from question

David Katz

of a Covered lot detail.

because interaction times, about strip the or the that. drives the locals the wondering which to locals is strength there's think it on what and we've change strip between co-habitation any So talked business degree look, has your past I'm any co-existence not, or there's -- the the potentially, in is at And the whether business. to and one I of topics

Keith Smith

Downtown Las that overflow case performed Vegas of visitors price as higher think Downtown -- increased I Vegas, has as Vegas to locals strip do so the fill it's up, whether as from rooms kind demand, large The the benefit its Las that has percentage hotel of we're where extremely rooms strip the whether strip as well pricing visitation and well hit get peak visit has just hotel we that. strip in to able it's the also our the our a we of or performed Las business because get of

the been a don't as downtown much properties locals strip power and we if always between symbiotic of both isn't pricing there's strip relationship So have and full. because somewhat the

But today. strong exists decade for it a relationship. least as a strong. it's been it So fairly at wasn't quite ago, Maybe I'd the last say decade,

do better, they As better. do we

in our As the are properties. are coming more rebounds, people are people as more as up meeting business town, doing through traveling, convention locals out-of-town and end we in better airport, as guests

David Katz

just follow-up, future asset financial a strip have, a is you the flexibility the And it that possibility circumstances? as given a right under in your

Keith Smith

kind But of there's further continuing those focused Fremont think that And core grown operations and the calls on eyes on making because Chest open it We've performance Treasure can have to. the the to have fine-tune smaller need future this I you lot, focused a something always follow about on been to think a something mean into to Josh, our doesn't are I and call, we and that something. last said why prior sure should and and we that we along things this projects doing as it's our properties do these somebody may And like we've handful of once you all intensely the we time continue and just M&A. development. Look, could at today, have talked of through other do perform the assets, on are and maximize results we're amenities level. that's physical are the

we've continue be focus environment our and now is to out And we and core on business we making of have so always continue acquirer. our going way main a tell strong We'll to disciplined. we're But can that that. been to you, extracting this I very everything And running in business extremely through inflationary forward. got our disciplined find a sure

Operator

next go Joe The ahead. question a from with is Greff follow-up Joe, JPMorgan. please

Joe Greff

those what's today's on call I with and Hey, enough. forward, have you're on everybody's is consumer of everybody. thinking going been discussed most -- two about the focus going margins guess our topics and how lower-end

before things only you think CapEx into sort Las what So point of do anticipate? and into I term is the near Vegas, going Downtown thing when understand in Treasure late up? have about those can us help in -- we open the you the Chest disruption have really this at And the you call might

Keith Smith

Yes. Good question, Joe.

building the food in. will, piece incorporated about if vacant, Fremont, a of of construction think buffet was the outlets, that you if the So you hall, right actual used being land where the the and that's first, new behind food is happening on the to be

we steel, when so was on hung some didn't know until the up even at people construction recently And going there property.

that is, build really there. facility extent, a food it out So as seamless to large we

real And so benefit. that's a

that, As square part wall. we're out of behind once again casino which additional some building is also footage, the

impact our no operations. it so And has existing on

In full project will So Treasure in to land-based on results the separate the until a gear impactful the the should it's piece business of facility some be to stay XXXX. case of and operations. time that operation of land, separate Riverboat Chest, Fremont's largely not fully move producing late over existing in

'XX as 'XX of early Treasure whole really, facility. so or the from kind because existing about building, impact And way even separate a no across it's think the Chest on the you business

Joe Greff

And much XXXX? two Josh, CapEx how projects in these for

Josh Hirsberg

-- largely mean, trying XXXX, I'm I think. to In

here Let $XX million. I spend see that if have -- me

or or into because Fremont million And take for finished Treasure the So it's And about for first XXXX. million $XX million late I next. like million will think largely Treasure quarter of will Chest $XX Chest. year, it this $XX be $XX later remaining

has up -- year done or So XXXX. probably probably mainly gets and what's gets finishes started million largely later $XX in $XX does Fremont Treasure XXXX gets done happening million. this Chest quarter And this largely and in get in next opens year, first year, then done is

that it to at million, take look planning the a And works at an million of, point. probably as our relative place spend say, $XX has come we'll the I to alternatives. the to as online Fremont in return the So be that $XX long project adequate then probably something as next --

And would be about how that top on the to think So it. that's of a maintenance.

Joe Greff

With And the the the you timing of Casino what to regard out the and recovery that us of then sort fall, advances one advance? of with opening of you your anticipation Sky River Tribe can final have in that thing. remind

Josh Hirsberg

Yes, Joe.

it's we them and is years advances, actual That's advanced. million $XXX $XX advances about the last interest financing over we've that's about so could those rest their accruing now, where the -- million develop arrange of own several they to project. have the right Tribe then to or that get and the been the point So then been supporting

reimbursed to million from from flow we continue until will interest cash own So $XXX operations. are that

obviously, It a on a so how does. be little And that's dependent good it well should project.

probably And we pretax reimbursed that, to Separately that that from about so XX% of a first be fee that's earn management we once starts rather. expect over as the opening the project of know, or project. income would we you several years earn does effectively open

once are cash of opens. components start so company project two And those flow the the will seeing the

Operator

question go of Politzer ahead. Next Dan Wells is Fargo. from Dan

Dan Politzer

was to So least I guys ago, months think think you XXXX a few XXXX be levels. wouldn't at equal EBITDA not mentioned there much reason to

this? but be about and million portfolio on after takes how $XX you across head start the a puts what to are the cost first And quarter, to there's the side, or and thinking concerns out so could seeing that you there out are your the maybe you're on Given consumer additional this?

Josh Hirsberg

Wow, Dan.

worried -- and think to think our it, view look except it's at at we to today. I have When look we be don't think when terms a that I thing worried on to really -- different I consumer. hard about, about. look, could a of business, weigh those and of obviously all be things a cognizant in the of It's inflation, natural what war right, everyone's

we're but been and continually -- been have is underlying since not hate the largely be our have in think seeing to record, I reopened. I consumer, have in which we changed where we trends confidence have -- a broken

core grow all grow. the throughout customer in step customers within continuing when we just to a continue our is business because framework, time little Omicron had back this, that took periods that, the even fact, a and of of of In core to bit of

the So our thing count have on that's that only today. pocket we in can we

to we the day. it. not that talked think those it kind have growth how opportunities in that inherent we of to come happen be about it. the some some point, every But about, QX maybe I'd We time think doesn't. we're good. through to I expect least still expect naive we naturally We're business was and -- about we expect that -- we replicate just to last we thing QX it risks think everything the we make on don't what to we to to is reasonable today. differences QX in the it difference really it as And largely -- the a in up to we've we to do ever aspects think deal We as time. But at but can are with year up other is over how is, We through that top at second are that QX, expect the depends happen. line of And over that's how working respect say we make and if all we'll concern with come rational else and successful some QX that to that. about.

think executing I Our on managing how expenses And tight focused today. and and that operations that's guys to I staying really of in us confidence don't of are -- doing else know the our gives the kind a very business. where we great answer job and question. how really what sit

Keith Smith

the there's and travel wages in higher of certainly offset Yes, highlighted aspects. to opportunities destination and inflationary meeting business Las out-of-town growth or of Vegas, things by like Josh, he just and that the return Vegas convention Las of here, terms return

X, and it as week where day? end hopefully, out of we But out we'll so every way and work does we end last up nets it every that And year. were move how day the to we all Well, through the net forward. at our

Dan Politzer

on your these we should we revenue Pala iGaming, focus integration how additional opportunity? my mean things given to on and be be I rewards technology follow-up the program Interactive, integrate all maybe for together? thinking And about then or And think the the just should investment is to EBITDA about an just on there's or going on

Keith Smith

have operational we -- part becoming Yes, bought team because gave this both marketing needed of And focused costs. significant interface and we this is approving we'll very an business We're mean where regional, it taking of adjoining I program. it's don't and a lot not approach we cost. additional in that big get team this Pala the maybe few or adopting XX on other a And management customers our significant out states well this as run any anticipate it a That's as really from. business. out, loyalty roll states us will us. rolling about intact of we terms We their technology the any the to where to to wouldn't develop expertise do and a with I more staying the lift. see states Yes, other legislatively.

out have as looking to not presence. regional So a we're presence much a national there as

as go be costs no incremental acquisitions able to we significant no additional to forward. So anticipated move forward, this

Operator

Allen Morgan comes Next Thomas go please from of ahead. Thomas, question Stanley.

Thomas Allen

Are at prices. you you benefited and from have higher cycle cycles, certain this that guys prior properties? So in oil seeing gas

Josh Hirsberg

trending benefit, relative just any we it's -- of outsized, mean to trends not I the not at sense. performance But outsized in to but they're the we're the they're would Yes. the of business, results. the it's rest seeing say If contributing Louisiana it's look assets makes business. it of like that -- getting we're the that seeing that's when our I in naturally some

Thomas Allen

follow-up. does. then And It just my

last banging in few think first -- in online retail, past quarter. launch of fourth year, Any the quarter Louisiana, in legalized, over this was I So sports observations launched months? the the

Keith Smith

at it retail each one and location And so five is FanDuel the beyond color of running. think think online if seen -- sports properties, retail other there's has we've as properties FanDuel -- up anything one positive really It's of not to book incrementally we been No, don't properties It's I positive. I and to properties. new up we've look, incrementally Louisiana launched Thomas. to have customers interesting seen all any trying come of the so, a the our most but the running. else add, each it's don't

Operator

is from Susquehanna. please of proceed. Joe, Stauff question Joe Next

Joe Stauff

have environment you if various And in you your us promotional segments, to see on that where the match, that was Midwest. now. maybe wondering and if I competitive is wondering can responses any South just you update Locals,

Keith Smith

opened So across even COVID some kind the most I either just very at relatively been for pre-pandemic We they've think high cases, there. stayed the slightly stable. part, level, obviously not. that of competitors -- a of has in markets up levels. post all it at our Many or above over globally, And have

And And some most a conservative started. they more people of our forward. stayed approach to have us competitors kind like marketing going taken have where of

very if Some say it ones pulled Midwest. be some or has little in have South most gotten promotional several back of kind would whether I aggressive neutral, Las Vegas a be in for you has been here quarters will, whether it the the aggressive or the nothing it maybe materially be the the whether the in in changed of have more bit. last slightly part, business, environment and But for the

Operator

you, waiting questions at time. further are no There Thank Joe. this

So Josh for back remarks. to the hand I'd like to over closing call

Josh Hirsberg

you, and your thank Thank each questions. Sam, you for thoughtful of

stay to Everybody, follow-up, have well. feel reach to questions you to any those answered. you. getting and try facilitate the Thank company, If we'll out free

Operator

Boyd first your That Thank the XXXX all you conference concludes Gaming call. quarter for participation.

You may now disconnect your lines.

Boyd Gaming (BYD) 26 Apr 222022 Q1 Earnings call transcript