BYD - Earnings call transcript Q2 2022 | Boyd Gaming Corporation

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Operator

Good afternoon. Thank you for attending the Boyd Gaming Second Quarter 2022 Conference Call. My name is Matt, and I will be your moderator for today's call. All lines have been muted during the presentation portion of the call with an opportunity to questions and answers at the end. [Operator Instructions] I would now like to pass the conference over to our host Josh Hirsberg, Executive Vice President and Chief Financial Officer of Boyd Gaming. ahead. go please Josh,

Josh Hirsberg

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

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

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

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

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

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

Keith Smith

and an ago. we quarterly performance This maintaining and we continued limited we afternoon, EBITDAR reopened second focus achieved everyone. alternatives performances more company strong since delivered properties when two the of record quarter to strong of we another lifting by efficient our on our years XXXX government of than the core more good restrictions. benefited was and that Josh our we Thanks, have stimulus, was exceptional quarter surpassed our run Thanks customer, entertainment are operations, our as from that only for COVID

was the companywide $XXX XX% exceeded even quarter. year, for revenues million the straight prior the million, EBITDAR margins quarter, were $XXX fifth while with During and

themes As we the the look trends. at stability of our business continued important financial our and today, our strength in customer are worth noting, two there performance

the our versus than our These three our patterns XX% of quarter, X%, a comparing quarter results for while On performances was quarter. in the revenue, sequential business, saw delivered are the each of last reflecting similar to EBITDAR points up to seasonal the the to pre-pandemic quarter first was similar XX.X% second XXXX, second trends quarter X%, we XXX to EBITDAR basis of margin in of financial Looking second more our to very quarters. the was in at quarter results improved margins basis, we Comparing revenue for XXXX. year, EBITDAR our more this baseline up results. over margins and trends improved the normal first and

straight of Importantly, X% we the our are business, first operating been XX%. of were the across above marking Locals quarter seeing to grew of EBITDAR compared fifth Margins stability margins revenue In segments. quarter, Las quarter X% the and all grew this during our the XX% three year. Vegas have

continued strength XX% excellent seeing and EBITDAR is Midwest Vegas XXXX, and were among with Las Driving Revenues margins the since second quarter. the operating quarter. in core performance are highest robust at We South financial EBITDAR the And segment. record our operating then. our operations and as & well, has stability led our the by remained since consistent in trends continued of business the during steady our Downtown nationwide, this second margin operating customer quarter our performance performance of its

over has second core our come quarter. considering down of year, higher the unrated from historic the remarkable achievement a quarter, play was year's strength year's play has peak than second second it X% quarter, from some the last four and F&B Customer During revenue customers And spend percentage gaming last both a prior while our driven higher as and is hotel revenue. last also in with of occupancy, ADRs by been total the non-gaming growing revenues. volume stronger in non-gaming amenities quarters, increases stable strengthening in

Looking ahead, we're at Unemployment lows And recognize signals uncertainty. a clearly to from period customers are of across we economic benefit near business, continue positive as and headwinds there wage record country well. while facing our strong the in is there are growth. or

across an strength returned and milestone are experiences recently with consumers our employment in leisure entertainment total market. a spend Vegas, Las to showing continued sector. levels, Nationwide, on largest important in the to Here pre-pandemic willingness

cancellation running driving with customers grow, overall XXXX are bookings volumes profitability. And date. hotel ahead activity levels, from of continue to in Our to core no change our

job through and utility increased to have both deliver prices for And and good we the strong Our what wages July an impacting and consumer. the our market us related far pressures challenges customer goods expense. said but to these challenges and gas they A in with in labor in second continued are quarters. the in mean remain done also cost chain strong that, the quarter costs results. all there Having also are are encouraging, growing recognize our increases last trends higher seen over have job And issues, of we the these teams inflationary excellent and supply economy. so and trends and consistent customers, are four while managing services

today, business reason cost the Our a will company-wide are consistent term. near there no the in despite with economic across be margins are of increased current quarter, believe were business the in see the closely the change we experiencing significant as direction monitoring the the while to during our we first compelling quarter And second of we environment,

our stable, teams in uncertain operating management times. to confident ability and navigate and focused strategy, strong our remain operations remain and model Our we are our our these

site our work complete, entertainment Once significantly through facility experience. new started also Treasure we in ourselves non-gaming project positioning this strategic operations, our a and creating are reinvestments amenities, based long-term at In July will more a on focus day-to-day business. enhance our for competitive early gaming and continued Chest. Beyond Louisiana, attractive for in we land growth

Chest expansion Street will confident project continues that results of pedestrian larger base, further the Downtown the its existing Vegas of of Fremont appeal enhanced capture its expanding the XXXX. drive are work selection a increasing adding Hotel By [indiscernible] help Casino to space We Las properties our opening and the In while and customer following this in customers Casino. expand and us on throughout portion quick-serve traffic Fremont Treasure experience. a restaurants, our appealing will late

construction are Sky preparing for California behalf the the of by River early in we to Northern progress track September And Wilton We on completion Casino end of good open are and on making Tribe. around year. on Rancheria the

Sky to significant forward a positioned just vision capture they this successful River to to of to and of machines, XXX,XXX are River created a partner and of self-sufficiency. a square its well And XX Sacramento XXXX games with the markets. opening a south proud XX and venues. their slot We have experience achieve Casino, Sacramento, the compelling as Sky share of look property Bay Area feet Tribe location We beverage with thanks food table with entertainment is and

for Sky we As fee arrangements. seven-year River a these a agreement types receive manage reminder, typical and to of have a management will

to gaming. capital and FanDuel to sports in partnership Ohio approvals, and of with betting and to Kansas eight expanding continue sports in presence FanDuel the Kansas expect year, plan investments, our recently and of Ohio mobile we to around launch states. offer first we legislation also Subject nine these to our our partner expand sports in betting Beyond fall states. passed online retail both regulatory the sports betting our regional we and in betting the

We next existing year into this year $XX approximately Kansas as to should Ohio. grow online in expect sports EBITDAR sports generate betting our this contribution and partnerships betting and million expands

us first We also Pala industry. year, track the on direct to Interactive the to gaming the approach around acquisition emerging our take online to a of of remain allowing complete

is Our without FanDuel share maintaining we as sports of online a our the to million a capital our combination our position its cash need in to are provide a continue sports database shareholders In on balance and And and foundation flow for grow $XXX need build is more course, growth leveraging will online for repurchases suite strategy We to strong substantial leader ownership built in to dividends. to X% online excellent attractive gaming committed casino execute the that to strategy online operations, both to regional full through program Pala products, distribution, continue we business. technology our betting. investments us opportunities, additional to nation's profitable customer important performance, the will and asset land-based or a expertise free of geographic betting as building loyalty expands commitment build and acquisitions. our steady valuable an of that of FanDuel an With returning significant shareholders. our strategic operational and long-term returning and position remain strong year sheet, are this growth. we upon

before, dividend initiatives. also detailing our ESG noted date. published quarterly payments. through report In supplemented significant we value our We're per to we've quarter we progress share are $XXX repurchases, by in targeting recurring As second our million creating June, ESG

website. have comes of our progress you and leader I committed in learn about invite remain We to substantial we industry responsibility more last when over being we by corporate proud years to visiting it made and the our the a our initiatives are ESG. several to

all, was outstanding another company. for in this quarter all So our

and Our in stable of the COVID core recent financial and customer above levels. our and with pre sequentially line remain with business robust well results performance quarters

This exceptional the management strengthening of they a to dedicated despite members cost are experiences And increased pressures are Importantly, is team continuing guests teams is who our it to our into loyalty. these skill a creating the customer as our tribute strong of margins sustain trends reflection in July. memorable business. operating performance and for

in continuing to to fulfill diversified cash online sheet and the in projects strong pursue to land-based proven balance Our and commitment to us our capital committed spaces, while shareholders. our return growth enabling free our to are long-term and remain continue you time both We flow today. call uncertain for environment now Josh. and strategy to over Thank are economic value your our create for turn like to to confident to our I'd ability shareholders. navigate the today's operating we to

Josh Hirsberg

our in our business stable. continue Thank strong another sequential for trends The be quarter to Keith. you, company. was very This

basis the significant strength of and business from demonstrate remained stable consistency stimulus, These then. almost company's benefiting the best extremely in and XX% restrictions. points. trends dynamics the last and The second grew was on the XXXX sequential since of improved options in normalize and last X,XXX began basis quarter business. last the year second entertainment margins levels our of lifting a quarter limited the sequential year EBITDAR government in the over has to year These of third quarter of history, COVID quarter

on weighing while is predicting There US difficult pressures is economic the our now. the that of aware the consumer, compelling certainly is particularly say are reason We no course the business future and to today changing. of

for in last continued July we Our the stability confirm consumer trends have the year. seen

Our focus customer disciplined on our of to core business our drive continue our results. execution and

balance evidenced and history our leverage land free Our us return both by managing program, strategic consistent which pressuring delivered in our our the operation are in we second effects strong in the sheet, through the operations, enable cash execute demonstrated assets. and months. quarter our business margins digital strength to have margins, company's teams balanced based The over last to as lowest with inflationary capital by investments continue with our XX substantial were flow

$XXX approximately $XX million expenditures the million, resulting During capital of approximately capital year-to-date. in expenditures were quarter, invested total

to maintenance Fremont Keith expect expansion additional about capital projects second $XX that this previously and million $XXX million on Treasure of year We the an in and Chest half for discussed. the spend

and of to to Interactive $XXX Pala investing this the We expect the transaction be year. will around regulatory million first subject also approval, acquire to close

million. share $XXX more During actual our capital in October, to $XXX on have commencing million of our million part an activity repurchased to to our approximately authorization our Since X.X shares we Board's of our continue XXX.X $XXX increase at we targeting million authorizations. We end. We last per recent shares plan recurring of million $XXX quarter to the representing at continued million under than X repurchased share $XXX quarter shareholders. focus repurchase of share capital share. return With current average shares count for million as reduced repurchases we price This a quarter, remaining program million shareholders. returning repurchase stock, our $XX.XX total to to per

million we a distributed over to and than the our earlier also expect We of year with all, which our dividend through return $XXX of to previous company’s pre-pandemic share year is payment $X.XX double month, amount second per dividends In of share, repurchases. shareholders the the dividend. recurring more this this

We lease leverage sheet ended of at it has times strongest and X.X been. is ever X.X quarter the times. Our leverage a with balance adjusted

borrowings [indiscernible] we a of retire annual million the $XX During to notes, interest remaining used in quarter, in and savings. resulting revolver expense our combination cash nearly balance of

As forward, we performance thoughtful our through operating online will strong and maintaining our continue maintain with a our the balance And commitment from presence. will our building returning move on we're to existing to now we shareholders. participants business any we capital remain and focused our a portfolio to ready investment to answer growing strong concludes sheet That on questions remarks our call. and in

Operator

Carlo Deutsche the Thank you. from [Operator Santarelli is first line of question Instructions] The with Bank.

line now Your open. is

Carlo Santarelli

the kind remarks want year mind, Is that in representative over Las what regional if Guys, you're between both the Vegas, Keith. you Hey, as carried statement seeing July. seen has Josh. kind of as what well into through that to your both know I and last you've you guys Locals Downtown in the mentioned of market, of Hey, markets?

Keith Smith

it’s Carlos, Yeah. Keith.

relatively it kind So is of the portfolio. across consistent

trends in year, the So there's different really the change. July saw what mirroring in of much we regions a throughout earlier are not the

Carlo Santarelli

kind guys Okay, about some and the guys talked pressures then, of obviously, that’s the out great. them. ambiguity you of managed have you the and And way cost there

you that any where the two look health were supply of health had to of into think new coming versus kind aspects, of competitive kind of ahead, the How competitor that whether about of from look risk to whether of -- you options? the is and if of market things kind or that comes would customer the kind the is As the those nature. consumer, gaming the of buckets at you promotions, kind bigger

Keith Smith

Look, be is that sheets. is trends we And little while sitting all remains shows the healthy the a off our here They've see, in consumer own that it the bit, off spending all we in statistics may got see in today, the business coming healthy. Competition new balance that it's strong into our and highs, business in a consumer history extremely robust. historical lot the into is of, of always markets that different off markets, various in so, number competition obviously, a but operating team in. fending of still and we with it's do entrants business, has we're coming the competing consumer

EBITDA healthy a or obviously, here, we're of one I big naive our -- unhealthy major producers, And consumer but they a all our be could door up neither if it issues don't it to near I I think business both impactful, significant impact those are will look, so, building goes us. and confident the a for becomes be will next be of that of but sudden sort of impactful, to in want term

Carlo Santarelli

very Great. Thank you Keith. much,

Operator

the question. The with Thank question line you is your Greff of from Morgan. for JP next Joe

open. Your line now is

Joe Greff

in an of as think recession just that I'm the a are both certain next see, being seeing afternoon, let's Good consumer it's say, guys. that and about we analysis. the to are flow visit you be we an to in How more environment it's is guys, and sound the to about, the Midwest through get negative, we retrench My And revenue gaming going If visitation. like like meant on just scenario Locals flow declining South? scenario, spend but of year through understanding percentage not example, in and really very bit. -- a the question per probably & negative, do it's sort than in think

Josh Hirsberg

way trying and that what And need to measure to flexibility question the that we think Joe, is to Yeah. ultimately, I answer. I think, that try the is about understand we think honestly. and at and in We quite that of labor revenue particular adjustments on some marketing costs these have scale seeing of certainly can other the in time. any levels based managing revenues we're we

cost understanding of one really -- we and the really closed of through are we a it’s I of think had COVID good learned just our have they interrelated. that while things how were and kind

gives per really visit. result better a in position effectively, dark to as in it a don't through manage And ability what think were revenue that the declines that I quite very quantify so, through to come happens of just feel honestly. a shot be if to in position our be softness of kind us spend like a to we the in in really flow we're to margins

Keith Smith

it or is Yeah. if is what's reduction play it ourselves call phone There very in is the are XXXX it on is model a find in in it building, is it Hotel, probably visit it and in. variables, recessionary many environment a of there spend to is difficult if it we a is to Trying that more kind is per Gaming, different actual the is is it in environment through, recessionary this happening environment type coming like F&B, as non-gaming, what volumes this. difficult out

Joe Greff

Thanks for guys. the thoughts

Operator

The your for with Stifel. Steven of from question. Wieczynski the you question Thank line next is

line now Your open. is

Steven Wieczynski

Yeah. afternoon. Hey, guys. Good

that what -- but I'm you going kind this at this I give do kind you of the is try I viewing might kind saying this different point a very you of that? probably know, how and would the look same time the and are more you bad, little probably have on this I this recession you're helpful. just be going we of around So in think high guess like ask you guys level differently those probably are around sound as the Joe's doing go things, to about similar you at think. don't couple bit to run thinking your you I business. what commentary be me answer a on some saying as impact recession to are can assume about of bit last And is of any you're would to not as this terms economic scenarios think impact give, could -- potentially guess, you question as how internally of as little I or Meaning side looking recessions are could this I

Josh Hirsberg

Yeah.

do, understand XXXX, assuming what XXXX. So previously drove level, to model what of different EBITDAR different and the models can detailed very levels Steve, and and replicate understanding I more our try obviously, what some choosing than and though declines, others revenue just what even of we and or we levels just those than also think, different high are scenarios some in you different trying today And running happened to is through happens. happened very that imagine

And those so, say extremes will. are we the you try if to

reinvesting and is loyal on customer least think different business what's I high and very how that stable that that, the insightful commentary our we've What focus quality a is the the sense pre-COVID at made. that driving driving on other customer you what's performance. to know today really try that our particularly thing from from the than to But is even also grow. core and to us got in comments marketing that we're business who at overall very other we very is our the I our business today a message focus feels we're be continues and that least customer that's understand for is our in of customer consumer.

unrated reacting, how then so, it's Keith's just those and question, potentially consumer falls look segments trying away our to to customer we lower-end a And like it's consumer look because maybe or comments at that like at the earlier we impacts. understand to different Joe's

you are just answer the impact. kind to I'm assumed So other say any blatant it, at to give impacted of at you, result the differently. but just that assume to down we going see And all non-answer looking revenues segments numerical [indiscernible] are are it's that try not of give to different extreme because going a I'm

also, So modeling as we're we cost thinking the that's we're how from about obviously, well. seeing end in and it are what pressures

try it, going to in obviously, all understand gets we're and think every So and what's we how day to react. to just about going that happen to put

Steven Wieczynski

you don't the as So, follow-up any how have draconian things simple simple could your under with answer answer here. question guess I guess potentially -- your as there modeled you guess, feel position inside guys guess think to I out a scenario that's is, you point. financial about I the scenario comfortable I you feel that guys the at do get. company, simple that that then is. I guess, where is any

Keith Smith

Well, hard And and level. of extremely over couple I low near diligently leverage. of like. extremely the and least our think last we've leverage have the us may scenarios the low comfortable at years strength worked sheet have balance look term, in run And to things we given the what we all the have that have

but if very is strength, see to our uncertain stable. something So financial losing we very uncertain not everything were economy, in environment dealing business says we're are a current a in we sleep. happen But given the pretty

Josh Hirsberg

Yeah.

level, to whole that think capacity undrawn times access continuing point, just weather about kind and is I of today. that of a is the wringing to through. having the about to At part the thinking hands leverage we're uncertain we move of philosophy find lower everybody their this in able to be ourselves we have that

Steven Wieczynski

I Okay. for color, the it. Great. really Thanks appreciate guys.

Operator

The your line you Jonas Thank Barry with question. question Truist. is from of next the for

open. now is line Your

Barry Jonas

about positions? labor you tight? grow with still as FTEs? fairly the to been wanted to Hey, revenues bit is see a still little guys. talk Are it environment, more opportunities do add able more -- to that, great. more have And Thanks you I you you

Josh Hirsberg

Yeah.

for of as Not challenge it So year a labor ago. I us. is challenge was think still a a much

are ago. members today more team today ago. were months have team year it our in than flow months adding ago. that, a did lower would rates say we six more we our was members higher turnover successful is today they have are rates retention Applicant been six and I than So higher, than and we've

easier, And it's but are challenge. a so still things

and staff serve think to the add more more and restaurants. have I people our hotel we opportunity be able still rooms to in sell

improved today or over ago is there are six things So months upside even a there. But some I year ago. still think

Barry Jonas

And Eastside properties. just guys of Josh. some is follow-up, you then I here? as about on a closing how Thanks, planning Cannery thinking know a are competitor permanently Great. their closed

your So how just you're about here? options thinking curious

Keith Smith

Yeah.

think the which thought able is been Cannery context Eastside benefit closed. and we Sam's in until about this to Town is for Eastside At or point, should will remain it I of we've to consistently of suggest near kind see view perhaps demand. something that, our Vegas more we we've consider reopening it of the Las demand now else in Cannery, leverage

Barry Jonas

guys. All Thank Great. right. you,

Operator

Thank with your question. line you of for Katz The next question is from David the Jefferies.

Your line is open. now

David Katz

gentlemen. anywhere question. respect is, understand, little color Afternoon, I what there across would for not which do of change bit, intended visibility, margins hope And Thanks answer, up they margins, approximately be normalized taking in you limited how a to no straight all your that in for honestly post-COVID segments? give assuming see came and new or I that is for each you something across business With little expected. the across particular, you a just can we quite margins could that us us. is if helpful. each on the you that that continue I Hi. than was my levels be even ask of came can better the world And to and revenues

Josh Hirsberg

Yes.

growth the what get really said been XX you various is back, -- think to more. a consistent incremental are but what months labor being over of it's of it, added like that the and it's we some a revenue a as from They've see bit appreciate your pressure or commentary, for associated is very little that And almost while of last we marketing I bit of have ultimately about well. be time, what result that David, expect want flippant -- delivering. I I with it's you don't regions as little So, almost

those so, we ones of been you're forward. see from that's to that that the good neighborhood think feel And margins. the time. kind us you levels days from And today to some for that seeing going quite in these should expect message being terms generally consistent pretty think business of I And are us of about generally deliver we the where a in able is levels

David Katz

Got it.

right? ton a not in which some That's that margin unfair, the of XX% us to EBITDAR major the assuming neighborhood change in and place potentially is Downtown for the XX%-ish. So hang totally But MW&S of topline. Locals out, a is is market XX% changes, good notwithstanding

Josh Hirsberg

Locals XX and plus XX’s the is percent, percent. is high Downtown & XX's high percent Midwest is South I think

David Katz

you. Thank Helpful. Okay.

Josh Hirsberg

Sure.

Operator

your Thank next Kelley Bank Shaun of America. from you for question question. The of is with the line

line Your open. now is

Shaun Kelley

Josh, little we to everyone. Hi, wanted Keith, regularly. ask just question about fairly get a a bit I

of kind gaming I we're thing weren't a bit. you reporting wanted space to kind environment one seeing right question of across turn a of promotional to company’s in consumer of little couple this last it and areas return to So the of promotional in consumer years. relates throughout activity We broader sort is a the over of that this get it as

differently? that's a really And So of think promotional So How gaming? first of of curious, would it you kind activity that the the impacting all, I'm And how then part. you return see you is lean kind react about just lever a you that or part just, would if second normalized did of a first question is more the through just soften on of might plays consumer mechanical. the the P&L. more is

just revenue, in but it I as would thinking we're think against versus margin? playing through you a general, actually revenues about net how this about think

Keith Smith

Sure.

a take can Josh me and in. jump shot it, at I Shaun, Let

we've industry, the come about of we out players COVID in have as out companies have this promotional talk environment when think staked a -- different I position.

early after Some COVID. got have their gone back to after fairly pre-COVID spend levels reopening and they of

to types we refer actually again, into ways. competitors marketing have have back see the to in exceeded at every and where jurisdiction this being pre targeting customers operating probably business in stay in new we to are what Once do levels. of Others, a wars. with camp as these levels And kind us getting Some COVID are different of spending. ourselves very model pre-COVID of disciplined we continue marketing don't we that

where jurisdiction we ahead we're of every We are do have business levels standing pre-COVID patent. marketing and in competitors that

we I if game. would into getting us just I don't into a doing don't back were have see margins, see just environment. that get us that If back So were -- that on to we into obviously, it. to impact significant promotional

Josh Hirsberg

have Yeah. add. anything I don't to

David Katz

always helpful. very cost follow-up there you're obviously, out? utilities dynamic you I real incremental that's line, just little new anything side, of times, environment quarter, job, pretty energy would pressures. but I and be Josh, is against or environment there That's this question then much that the should it, brought a be, [indiscernible] here rapid stands And be last of labor is normal inflationary Barry question that new it today. course sort has sticks I the some more of, a out about of mean, or couple just but or it pressure albeit something Perfect. anybody a the guess or been bit that cost mean, the really asked the is, of is even new anything second part in aware over battling

Josh Hirsberg

instance. when talking just there order say, other Look, think the to not about, pressures, you they're labor Yeah. start cost for I are but of magnitude

continue job managing the but cost very cost we labor across Keith of focused the done those in fortunate our have really And that's sold, mentioned, we've child good goods to on as kind the So poster for and in stay we of through been it. pressures. utilities why see is and it, it of board teams --

us gaming offset to grow, aspects And hotel some as with that we're -- we've business well, the back certainly as come pressures the continuing of do continuing side helps it on that has side. that our to And is and some of customer also the F&B to seeing. so mentioned the some of

line going it's teams So really kind and good how one not it's doing one, a item we that about around to running just say think wouldn't forward. I -- of certainly business job the disciplined focused our and are on staying remain

David Katz

in clear Thank Pretty results. much. you very the

Keith Smith

Thanks.

Operator

of next question. Dan you Thank The line Wells Politzer is question your Fargo. with for from the

is line now Your open.

Dan Politzer

afternoon. Thanks my for good Hey, question. taking

strong they were Downtown margins, in the quarter. On pretty the

there, I XXXX. still, just revenues from low to about we still of As think XX% revenues unprofitable removed was where to Is we call being I more in guess, there are it, business? margin room the go are a of terms think business, below function the or this it or recovery? XX% revenues

Keith Smith

Yeah.

is I strip. visitation combination driven the would largely both a that So by on of say it's Downtown

so back And convention continues the to and strip to the build build we some and continue be there expect back there strip to build continue to meeting as as growth business back, Downtown. in continued the on volumes

fair or at that also I profitable of business we're these catering us days. think just to least there was not for marginally amount unprofitable

is it them, you think or the other. as I one factors so, not describe both it's And

Josh Hirsberg

to remind our had Just -- start Downtown the everyone, a to remind two business. just other segments of Dan, kind of later than

of from difficult two what as our contemplated we experience honestly. it's a that will of battling businesses level and is as And more kind coming we're So for but well, quite that just are business year the they same that rest the other this segments comps, that's of segment. back to start are Downtown that getting kind our to

Dan Politzer

then of XXX million I plus business, Got repurchase, quarter. follow just you pretty stable seeing last the clear, up. it. results think, of stock you're It's sequentially the in in been And sort

Given you've to buybacks. you're there shouldn't trading kind same bar above expect out neighborhood, you -- $XXX that of that kind any of per million quarter be reason thrown is there in that for that

Keith Smith

I could there. putting out will. what continue decided question, not be. if That could because [indiscernible] is of $XXX target million assume is that there fair to dislocation a more, It's we're I would we a higher we expect but but to our buyback quarter, and wouldn't we goal It a be and be higher, target. is our it Yeah. to but that's It

Dan Politzer

Thanks. it. Got

Operator

Brandt The question the Thank from line of is with Barclays. question. Montour your next you for

Your now is line open.

Brandt Montour

Thanks afternoon. my for good Hey, taking questions.

spend? it Or there You inflation growth through in that take? is also to guys hoping component there is -- you're spoke is it in talk actually isn't able perceived the you taking case which the that walls, a was was you're helping lot I traffic about core consumer much and which the ways pricing clear. a pretty casino? your in the Is pricing within driving four that could

Keith Smith

Yeah.

Look, to we rates gaming and than So walls food continue made Hotel continue prices will. to “pricing four adjustments” Look, I have it. can. we've that's higher bets up on of pre-COVID, beverage average within if we be floor, where don't the you think but year-over-year. today about we any the increase

rates. cash sales higher with in increases have are We good room which

Within the four we've terms what pretty of walls in limited of the it's casino done.

We haven’t done the has anything in currently, done been business. we've whatever place since reopen frankly we

Brandt Montour

that slowing you numbers then still but little unpack curious sort if Or stickier? was stable. a helpful. I and maybe a a side that amount the your there, with little it's if replaced? unrated getting bit, just of fair seeing very That's turnover I it's could if those you're of Okay. that's being And on comments down, Thanks. got

Josh Hirsberg

Yeah.

same COVID going hard part the entertainment business that is, going little seeing was to what lower that specificity. we softness the it’s to that activity in from options is But year. it's unrated, end or tiers stimulus most similar the answer a database of saw really in we this of seeing is the some So benefited which on, lower we're year-over-year, we of year last what a with more the bit that seeing where of on, and in declines at of the we're lot lack are expect largely

that going in assuming we're segment it's well, part comments, what's as of unrated the on said in as stable. Keith’s Now, but he been that

business that's are overall that customers that getting customers from either customers. quality we that's unrated or to unrated We increased up So coming coming higher some is of softness know new and of spend by in. and business pool replaced contributing new other from signing the that

at business. maintain kind regenerating this stable kind all to a unrated of itself it's point So of

Brandt Montour

everyone. Great. Thanks

Operator

Macquarie. for with line question you your question. Chad from Thank The Beynon is next of the

is line open. now Your

Chad Beynon

from times thanks Keith, strength my X.X about Thanks. capital position on and talked of gaming for Thanks. just million to Good markets maybe customers. M&A flow. afternoon levered improvement in and but your a you cash even with long-term $XXX strategy how thinking the and return, can the question. taking where by follow-up the opportunistic know free I of your operational strip, could balance the sheet regional an are you benefit where you you about license, or send on separately

Keith Smith

Yeah, sure.

balance priority in about but the optimum running can and near maintaining the the the produce spending that results at to to focused the we our find and term really this operations, maintain I of continue sheet producing are return So time of number on strength we've $XXX the of look, continuing kind this our it's Look, active in the and strength decades that job almost we and level this to all one. the M&A today think maintaining to returning and in million shareholders. really ensuring our business very can over been ourselves today environment is our we're in ensuring and we space, of capital current shareholders. we That

Chad Beynon

take thanks. little of Thanks. be can up Pala and that product, a and And after them the something or quarters terms then, a might in that iGaming bit something is Okay, closes, you your done that quickly be deal cross running longer? an communicating to sell trying is that customers how with few within can

Keith Smith

transaction. six it, months call within, of expect Not close the the of

about the able able think XXXX we a it middle customers. our we So around of offer to if product we're and we're where have to first the regulatory of get the year, to should approvals all close

Chad Beynon

Appreciate quarter. on it. the Congrats

Keith Smith

Yes. Thank you.

Operator

Thank question. time more for have you question. only one for your We

the So Stauff line is the last question Joe with Susquehanna. of from

Your line is now open.

Joe Stauff

discussions quarter moderate of I'm of perspective, a if is, the your than changes are customers in kind stock your just I by Thanks, per a $XXX about you've there the from whether reinvestment, back any million increase buying there it of those not? discussions yield? And particular, If -- the X% expense their be that been then July in that maybe Whether Keith, more you. maybe of so was Las curious tell certainly thus the Vegas dividend? Locals really and/or Josh. second any dividend California-based Two the there far? quick seen can’t at be in the or what had about of any saw, any there the question or Thank wondering is results, ones. sort capital buyback boosting of trends like, terms any that visitation? to you possibly Is roughly Is the so about in quarter. second

Keith Smith

Sure.

of your dividends. we're think, on to So obviously, the quarters will our up only to question, any our Board, into with last It restatement be conversation dividend. I two about but respect

significant around our of access. been week we traffic Las here the of from the is And not to the And We've codes second increase California whether it customers to payment. through where we mean, even We've in so, the stable. able in it but over information of the California. is little other change business the I months, and I kind it in of Vegas It's best can monitoring the think With into what last revisiting prices a that seen we're interesting ways moves just made we quite an future. are bit, trajectory away gas zip out draw really significant. for is last the actually couple properties with coming only question. haven't any respect we been

surprising any facts. So seen us, significant the haven't to it are watching, is but trends something those we're

Joe Stauff

that far imagine in thus would I commentary And applies July.

Keith Smith

July. Yes. No in change thus far

Joe Stauff

much. Thanks Okay. very

Operator

the time, pass waiting your this will Thank additional There conference for no remarks. any Josh for you questions Hirsberg so to at closing I question. are over

Josh Hirsberg

Thank And Matt. to thanks you, for joining call everyone the today.

questions, feel to you. If to you us. out reach please free Thank have follow-up any

Operator

concludes disconnect may the you call. That you conference XXXX for your second Boyd Gaming quarter Thank participation, lines. your now

Boyd Gaming (BYD) 26 Jul 222022 Q2 Earnings call transcript