- Earnings call transcript Q3 2022

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

Operator

Hello and welcome to the Boyd Gaming Third Quarter 2022 Conference Call. My name is Alex, and I will be coordinating the call today. [Operator instructions] I will now hand over to your host Josh Hirsberg, Executive Vice President and Chief Financial Officer. Please go ahead, Josh.

Josh Hirsberg

Thank you, Alex. welcome third 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

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

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

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

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

Keith Smith

everyone. afternoon good and Josh, Thanks,

solid another for company. our was quarter performance third The

the current and Our operating environment of model and successfully economic challenges management teams to the results. deliver are continue consistent meeting

continued core $XXX prior EBITDAR consistent several third quarter were margin continuing quarter, October, financial year-over-year the up quarters operational the $XXX and our as sequential delivered our in a solid the Throughout and to been consistency meaningful throughout On X% results a in we was from perform the behavior. headwinds results, with at and spending growth our driven year seen in the with As million, in have the level. by we our our consumer seen right were from look evidence what stands efficiency of basis third XX.X%. of are in our out performances high year. into very teams. while Starting a sequential at play the revenues each trends, customer we continues are while million has customers' customer we quarter And the clearly the any line economy, business change last of have with third there trends not with the this

to guest steady to increase. success continues our customers due grow core increase segment play X% year spend to is rated at quarter, continue from the offset customers the retail This held to foundation elevated core Play from declines and was of our frequency in from During our our particular levels from database on the play this last during in year-over-year and helped which quarter. customers customers, increasing stimulus. and

non-gaming seeing last for room X% solid we're prior revenue third year, total were the of terms year quarter grew higher In revenue, rose. rates over the X% occupied than cash while in rooms growth. Hotel

XX% high rose with revenue as rooms quality guests Importantly, from hotel we are guests our year-over-year. filling hotel nearly our gaming

Looking above ahead levels XXXX properties. are trending hotel many of at reservations XXXX levels are and our surpassing

year beverage revenues XX% check. average growing and both is rising over increases prior food business also in Our and with the by covers driven

current business managing economic the we of with successfully side today. the the of cost this levels. from of expense approach environment, year and XXXX more maintaining were margins operating pre-pandemic than of basis business. the second the are company-wide Despite dealing operating quarter Total exist our in the the our the inflationary operations unchanged effectively business, ahead first while our economy points pressures both quarters challenges the our On structure a teams operating that overall and disciplined remain to in third are expenses the essentially

Locals Moving Las continued pattern of into excellent its performances. Vegas segment results, segment our

we third performance Locals margin with and quarters consistently have continued XX% for second was levels, performance saw market. XXXX which of Compared Locals EBITDAR was our third stimulus of segment's quarter year, the XX% best benefited the this since improvements or trailing year. XXXX. in quarter to results only Third the was in quarter quarter and first pre-pandemic the from above in first from margins up of was our the the the from been second last quarter consistent record at

gaming last robust region grow the rising down were play to quarter core continue revenues the total in While comparison year. third customers against X% slightly, from our

revenues, over grew Downtown quarter we to performance. third as EBITDAR year a margin all Vegas, Moving and Las prior EBITDAR achieved and record margins

During the our guests. growth in we Hawaiian play quarter, a strong saw from

our Midwest segment, remain our the Total business with management year, year. overall early revenues of in the for at guests line Main which gaming quarter business Sky third customers Station, year. rose quarters, were While several And from is still contributions Street pre-pandemic and quarter our online play also in X%. total the last X% This prior fee, excluding in Hawaiian consistent opened below prior XXXX. region higher our September levels, visitation was and River full play south revenues guests core benefited with from Hawaiian trends while a of than the last the from segment slightly increased from over

first property EBITDAR from levels rising with XX% segment, basis quarter of remain XXXX up year, than improving steady the with the this margins was around XX% more XXXX and pre-pandemic more margins and to consistent second than For points. relative

growth to return costs high levels ability in result continued to gaming our will believe manage of As operational efficiency. in look we we more normal will forward, and XXXX, revenue

are River operating its beginning will in strengthened be nationwide California online. is that opened to Northern by Our projects several results in stores solid, mid-August. which Sky come One Casino,

since We have the very opening and results revenues visitation through days. first strong with gaming seen excellent XX

property. of business volumes phase we expect as move this opening We beyond to moderate the

start potential. This impact the River’s economic Sky positively optimistic in will allowing self-sufficiency. our Wilton Sacramento we Tribe, finally realize Rancheria strong of a project high to demand the vision are of and the level about this partners why demonstrates However, market

sports betting continue to quarter, partnership and in retail September. early also mobile expand sports We during betting FanDuel launching the Kansas with in our

benefit FanDuel Ohio, begun partnering operations very has we established strengthening successful at year. X% we preparations FanDuel to in partner the and our XXXX, expanding growth first a Kansas further profitable digital top FanDuel in On substantial nation's is the leading that our a and XXXX with we we have expect launch ownership of have million up the remain betting Next we and $XX where benefit expect the future. as with we our approximately in been from By to and for sports overall. we of partnership EBITDAR in business of the to generate new this, of Ohio. also from value company, in this all committed equity brand,

expanding our we will be with online upcoming with partnership Pala addition operations In FanDuel, the to of our acquisition gaming Interactive.

We Stardust-branded platform half close Jersey on expect the New we next Once and weeks. is have transaction i several our all in to and migrate complete, acquisition the this regulatory casinos will year. of the own approvals Pala to next first our two in Pennsylvania to in begin

profitable, online have for the products, management build geographic industry-wide operation Pala's story presence, Pala growing enhancing become enhance both technology, our new us provide BXB regional, foundation also and focus and a growth execute capabilities, online benefiting of on an business Online our and that and industry, customer the important will believe the proven and strategy. land-based features our we BXB will on part business database. focused the our to this existing customers. operations. that will current to and leverages acquiring are platform's profitable products our a experience, expertise successfully We casino we customers has building new gaming through We existing

continue in nationwide also will pursue We for through opportunities strategic growth to portfolio. our reinvestments

the area, at Fremont's many million recently setting Las a open first significantly where Set For million Sportsbook, include visitors been our enhanced by by this downtown floor example, our expanded Nevada's a space, our Treasure its has to year Downtown of Chest of the floor in Louisiana, of small quick-serve growth in We is on we been this in the enhanced potential its in and riverboat based-facility Casino. around with years, performer $XXX Fremont market. but company selection for options. $XX amenities. believe casino debut continuing completion. Chest will We're strong investing also will Treasure appeal FanDuel limited expansion Vegas, of to a project land throughout a near dining that end, casino modest broke has in expansion

Chest appeal and will we new complete, this amenities, Chest’s Treasure expand both comfortable more ones, customers in and confident existing improved us a land trust. long-term to XXXX, floor, Moving growth enhance spacious to creating business will project Treasure significantly driving are and guest parking. Once allow casino early and to non-gaming

to ability pressures remains same segments At firmly to teams our invest cost another dividend business, our continue to their supplemented manage we While committed recurring the quarter in quarterly stable our million steady spending payments. $XXX returning continue Customer remain driving in capital company. successfully demonstrate healthy, for opportunities, strategically solid throughout this to among repurchases our inflationary customer particularly environment. In shareholders to was an quarter core growth share in time, per by targeting summary, we results. management our

to we quarter, basis of and remain delivered of margins XXXX Our on levels continuing very operating we this execute at a remain the focused well level high efficiency. ahead pre-pandemic points over

the who our exceptional greatly your to work of call strong and our success. Our to like the our results Josh. have now team continued played I turn role their Thank to guests. would to in a over service deliver appreciate you today. continue they for all to are time tribute We hard members

Josh Hirsberg

Keith. Thanks,

is level been levels. business core two much at efficiency our strategy a operating executing of our we focused a the years, For higher that last on customer than and have pre-pandemic

quarter continued, example execution third successful this of another the of The was strategy.

the demonstrated customer of our reason no operating here our and quarter believe change. strength have sustainability will Sitting margins. we to this consistency the of today, This and

our remain customer and ability throughout Our in operations. maintain efficiencies remain we our to strong trends stable confident

continues mentioned, from As Keith revenue gaming core to our customer grow.

to growth core the helped customer revenue spend driven during last stimulus gaming the third quarter, the year we This and results our from from declines offset benefited quarter. from

and results. the result, inflationary in trends trends year As of we These are to increasing a last throughout evident our consistency of reopened environment that year since our revenues this cost in two the essentially relevant to with quarter's and have manage There were our business be this pressures. our margins gaming demonstrate were ability business. continued even

quarter. Comparisons The XXXX first been in be compared impacted the as when from each enterprise trend the second has but resulting spend, to to XXXX a impacts revenues other of well customer Stimulus and driven our third quarter noisy portion pandemic. segments. is consistent as our gaming a demand year's relevant, and continue given gaming stable of to quarterly stimulus last the for growth

For of July, instance, typically XXXX. all of comparison month last before is for our terms year year-over-year and difficult August best was in gaming revenue, which in growth July, therefore most the in average month resumed an September. us was

labor. is trend Second

our the in level guests. We an service need have address business previously to levels to provide staffing our spoken about to appropriate of

several staffing have Over levels quarters, One we current given to our discussed the not expense normalized we more able achieve marketing. business. have last been category of is that levels

Our has focused committed all remain marketing core stable to a customer. as our year disciplined on marketing long we reinvestment remained strategy

continue our the to feel to of impact a customer our So very our results categories we level expense ability at consistency we of of business, and major the deliver to well are manage that equipped efficiency. high given

a Now, gears changing bit.

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

and capital Chest. continued expect maintenance including in $XX Treasure spend at fourth million the Fremont We investments the and quarter, about to

expect we complete spend to will financed In Chest Next Interactive and Fremont several would approximately of million. be our weeks, of under borrowings Treasure next expansion, to million which ground year, completion the Pala last acquisition the facility. we the through for broke $XXX the credit between acquisition $XXX project This week. expect our

we addition shareholders. capital are to these returning In investments, to

share as This $XXX end. in million shares representing shares of X.X at $XX.XX brings million we to actual price quarter’s share. During million XXX.X account average our the repurchased an of stock, per quarter,

as We have October, million continue for price share nearly share million. repurchases share purchases $XXX most did but we of shares the we a to quarter. in during periodically $XXX will take recent per target we in advantage repurchased X.X of resumed quarter, Since last million total dislocations our

at leverage $X.XX $XXX of We October also making program, We our repurchases per dividends, distribution to execute X.X continue shareholders. latest dividend ended adjusted XX. and leverage of including share lease and on million have quarter to total share times the X.X the returned we with Year-to-date, over times.

Our remains X.X leverage times. target

and capacity strongest all near-term maturities flow. sheet ample supported history low under credit We have no cash balance leverage, by and the robust our company's our in facility, with diversified

So to play and in remain and a efficiency, continues high of sheet, conclusion, We and focused on utilizing stable our operating questions our we're maintaining concludes balance customer the in call. customer our excess grow. demand to return Alex, at our from remains answer reinvest levels very core on cash capital now that to portfolio from participants flow to ready any remarks shareholders. and strong

Operator

Instructions] first open. you. comes Our Bank. Santarelli your line is Thank for [Operator from from question today Deutsche now Carlo Carlo,

Carlo Santarelli

you color. get good up Midwest I guys, with wants a or Josh was the Hey starts management, who deal hoping South all the kind and as obviously to coming things that the lot Thank including take afternoon. you in Keith for of pass-throughs. line, to & pulling of it. the FanDuel through and now, in tax margins have with things Obviously of there contracts in directions. coming different

You talked in perhaps move release even did as the maybe any you quarter that have the perspective management any intentions from XXXX? then into of property provide the revenue the split to performance. in about contribution. do we stuff perhaps some the you a around provide that commentary But could that out digital fee some contribution And starting and chance parameters level

Keith Smith

turn I’ll start and it then to Carlo, Josh. So over

of break detail a as We at are is number. as move big XXXX, looking out we it starting into to becoming some that

has probably extremely off project strong. of this As Casino Wilton River and Sky next it relates the started to look, quarter, kind quarter

happy with it. very We’re

We’re not currently. the management breaking out fee

transparency demand that we’ll over in where starting We’ve with north an We in it provide we’d $XX expect opening still opening that to the the given respect detail, said fee through caution bit XXXX. And that of everybody, kind of $XX property in. frankly, have million Quite Josh. it I’ll demand. level range. on turn management we’ll past it’ll probably is and in some The early. annual the settles great a you performance. of and the see early it working more again, But once million is But be some of to that online I had little to

Josh Hirsberg

the revenue is that Carlo, million then top QX online Yes. strictly And past, the so component in amount. was million. on to And about kind that’s we’ve of in $XX revenue pass-through tax that talked approximately. our share the $X related of about another

$XX total So out is to online for and and us $XX flows totally revenues $X expenses million, in was right million line. the bottom

Carlo Santarelli

helpful you super both That’s guys. Thank much. Great. very

Josh Hirsberg

you. Thank Sure.

Operator

Thank you.

from is Steve Our from Stifel. comes your next Steve, question open. Wieczynski now line

Steve Wieczynski

guys, Yes. Hey good afternoon.

that, there So Keith I any question were play that haven’t pattern. of if the we changes understand in spent quarter, tiers? prepared Ruby if a those same really that any level way. customer pretty you versus it any any different across peer changes seen remarks, changes on rest you looked call I the wonder Did But any across Or guess end, little tier your you your or seen the much low your is asked of I you meaning? a rated mentioned – the your what answer I bit weakening that levels your Josh, we at levels? see haven’t distinct different of during that

Keith Smith

perform. six stable. I results. are and percentages Well, our customers quarters, we’ve that worth the The continuing since or remained last unrated look stable grow have four COVID, we back are seen think very customers, we’ve over the If after look, higher to rated, reopened ones relatively our core

the prepared is then as our is it’s not of over As the And well. customers non-core the database four unrated, the last frankly end six performing rated the same unrated unrated we talked the the to but – in are the remarks, of again lower about kind quarters.

in. don’t can I much but weigh So provide know I’ll color, that more I let Josh

Josh Hirsberg

our Steve, to Yes, when where stable. add to you what’s by trends customer. if is some a core what Keith you’re a unrated sequentially, growth set saying end start in XXXX segment. and lower It’s being I that’s you thing of see talking the as the the all very only the to of the in is like kind generally are And softness compare would

comparison whether depends so or And talking year-over-year sequentially basis. it on you’re from a

of be when robust to it’s very at and why that kind was and the of consistently stimulus given how backed trends relative year we given was year, to XXXX kind so growth we year the see explain related XXXX – Sequentially, some very trying to And from around kind is comparisons saw of robust and just pandemic consumer and the year. really stable look baseline at look last growth just around growing very the last everything understand some just it get a on to off and that you’ll you said, baseline continue of over of as going trying impacts. everything

Steve Wieczynski

Okay. I and know so days, remarks, month about the your it then and commentary in about Got Josh, of month well? you. And should more listened it then fair end to up. you guess your October. I I is August not done a just six to were September of And comparisons, Thanks assume Is up guys. – and that because yet, got but you July was down talked October’s as October

Josh Hirsberg

the we we way. a say expect and hesitant September, think and August – to in haven’t October. to seen little be to just year-over-year similar I October to I’m I would growth But say, see we would guess, it I because we would all expect

point. what think we can that’s about I this at say

Steve Wieczynski

it. guys. Okay. That’s perfect. Thanks Appreciate

Keith Smith

welcome. You’re

Operator

Thank you.

of comes question your open. Jonas now is Truist Barry Securities. next Barry, line from Our

Barry Jonas

next new Would several love Hey, of Vegas views properties of demand years this a questions. for supply evolving kind my built taking dynamic about your Boyd get to being Thanks Thanks. and on been the how market. the is positioned. just in across guys. bit few talk Locals There’s

Keith Smith

Sure.

it not at an and kind of that have open been soonest is open that. look, have in a there’s properties. the some market so one we XX pretty some to the – of customers local’s we So impacts certainly we announcements, that We’ll is it’s or that. landscape the in area, or understand our any of understand well but whenever from The months core they draw competitive year

any months. look so of properties, it Will is go at market, the addition we we always the business. really share some don’t We as see to be significant only XX to visit addition expect significant. next impact which customers And our and in there the kind don’t that but significant to be new

Barry Jonas

Got then the just I and meaningfully. And consolidate it. up quarter, on at utilities P&L pretty looking noticed were maintenance the

if or than we others about that’s any going more Just impacting curious segment how market that forward? should and think

Josh Hirsberg

mainly Barry. quite utilities, Yes. usage than more It’s honestly. rate And it’s

And but Vegas if given a really one any to but more obviously, than was also each seasonality utility more utility across of in quarters, in the XXXX here in was impactful up in country. here, the expenses It it bigger this Las versus utility degree – And lot two so of lesser a the of the to impact expenses QX look you an at a impact was year-over-year quarters. up it’s market. it the even previous usage

our of been line – rate the just increases in particular trend impacting that expense item. So terms has

Barry Jonas

right. All so it. guys. Got much Thanks

Josh Hirsberg

Sure.

Operator

Thank you.

Our now comes your of line Joe next from open. Morgan. Greff is question Joe, J.P.

Joe Greff

what decline it? bit permanent results this lower that to you into plus being than going and can seasonality? point, Locals that forecasted. would on you more you kind on when of into Do added incremental that help points Or the reflect were consistent expect latter in at I expense? some forecast think Margins case function traditional or sequentially, incremental Las XXX down of quantify and seasonality we segments Street you of do to And expect little year year, if end look sequential OpEx if for margins a this margin Vegas normal XQ. next question think Keith that’s be or seasonality the you Josh, as everyone. Hello what the the you also bps

Keith Smith

margins, they’re XX% I range Yes. in last settling Joe, surprise. very, – the in, Las surprise look locals the QX from down especially so a and as no Vegas at year, market, in really no look, where you very we being think as robust is

as and points seasonality usually QX… is look part mentioned at from Historically, pre-pandemic, margin in or large a You you if lose that you you to moved XXXX basis QX, QX it. XXX into of plus

Joe Greff

last points seems It over to be years. three the

Josh Hirsberg

Yes.

And of so it. that bulk the explains

look, had we’ve also more not year and shift would. said settling You a all overall, some But for we improvement. this non-gaming thought or never they margin we We’ve – last revenue, would comes are that which thought thought margins at the maintain never in we where would going with lower the we quarters six margin.

they’re in happy, and think we’ve we’re the settling of an appropriate pretty majority think improvement I maintained level. the is margin we where

Keith Smith

only thing date, really that far add quarter that, question last the expense I when you quarter I look thing at from Joe, add trends been around, so only to The year of for business stable quarter. to kind to was would other the think and very our to your they’ve – would I to it of part

where reduce and we’ve expense so been whether in of increases, or can labor we’ve – able utilities, or we operating levels. question either areas have kind expense other it mitigate was Barry’s maintain to teams around teams been our that to management seen these So

think lot not to an a had forward couldn’t an So costs, businesses as be we operating a think extent that the going just efficiency. pressuring expenses example. We our of able these labor spend, things of really like I year maintain just last all perspective. operating in we’re of not less terms to it’s fill are had going levels in from that we position utility higher

lower. sold good to were All of the costs

were because for where job decisions seeing I last in going year right us everything managing have making. kind of to just because they’re a whether really are costs, of year. This or able we think of increases pressures good we’re inflationary doing So just we we’re of

when a manage we quarters high evaluated take to would takeaways recent I QX are at level, performance that the executing consumer, and costs we people to kind – the and think of would what consistent recent we is consistent relative hope So ability away.

Joe Greff

I And these a past the funds Great. believe years. about from Thank Wilton now that you open? several expectations from $XXX million about you of Josh, totalling over the that then has follow-up, talk Can Tribe them Rancheria receive advances property’s you. guys something to as

Josh Hirsberg

Yes, so it’s to a million the XXX start include under about – that repay repay – just you plus that advances interest until have $XXX that those the loans. today business accrued they can when

I down early, So, given to much think we describe better the careful how paid we we than what I so people about and amounts. think expect timeframe would expect would back. we – again, I signs give the little then that it’s we a get to it’ll to be want settle expect repaid we would a when get those be able would better expected, to of just initial we’ll understanding eventually early But

premature point. I this that to us estimate it’s at think for

Keith Smith

Yes.

there’s path the – defined for a waterfall it getting EBITDA, profitability gets it’s on repaid, a and a based is so of the the operation. defined how there to So allocated, approach there’s but

Joe Greff

you. Thank

Operator

Thank you.

comes of Shaun, now Bank America. question line of Our Kelley open. Shaun next is from your

Shaun Kelley

late to Great. does it even pretty I beat there kind the maintain call bit on little sort changes the growth just revenue saw, in much do base. into the need cost And your to now year. just reason structure to you’re dead Any what in much control period everyone. through, XXXX, environment. we you. sound of is we your When sort kind inflation, was your you trying need the think on let’s historically think as XXXX? your it encouraging what that to didn’t structure, of in you of right afternoon, it expense I’m heading based XXXX, about any Thank operating reason mean, possibly horse here? of a outlook, relates to as – to of it back Josh, seeing the Good margin comes business way next XXXX

Josh Hirsberg

really so. I you. Yes. Shaun, thank think No, don’t

this I – I to a – stable but people to like and hate what really think record, sound be think at everything the pretty broken seems I point.

about really or levels expenses, And were And to getting – handle about managing today or a outside really COVID off on those I so it’s structure. kind pandemic the The spending to comparisons some against to like more got a stimulus. expense due think that That’s our related just through it. anything more we’ve at growth that, good – unusual or and normalized have of it. performance, normal we’ll think when refined how point get historical very I we more of beyond

Josh Hirsberg

think think I the – of you the Yes. So, don’t described at correctly, it Shaun, end day. there’s I

Shaun Kelley

to then clear. And a No, super change online of the Great. to just follow-up, sort gears for minute.

that like You something moving that think talked that applications broadly XXXX? not think the in attached Stardust the think some like, business? just start that through directly, you numbers, maybe operations, year. but some Just next at through material help flow digital us start and us statements? I would the in-house consolidating of Can perhaps revenue might casino help be to about Is the to how about again, point, accounting there, does costs mean parameters, you

Keith Smith

Sure.

and today, it line business think of record share, revenue as would through fully, take any over basically you expenses, you will, in respect other flow profits. if with revenues, that. we as of the ownership other operation then we Once with a about So, it, we’ll we kind to it

it that but And subsidiary full about be that see But to so the detail. be more look a so look to profits. revenues, we you’ll in earlier, will company materially as we’ll with full of different, able XXXX break out that would in talked and we expenses,

Josh Hirsberg

– add ahead only go I Shaun. thing And the would

Shaun Kelley

Josh. Sorry

Josh Hirsberg

fairly a portion income growing And that than different be be kind going don’t, online say of business just broken in will our significant to [ph] scale was of today, grow I to time not be where overall Palo’s to of really, separately. our relative I what’s terms take it’ll showing base up are some what of small just – what’s in going we to out off a business. today. today it’s statement it’ll

Shaun Kelley

iGaming able sort wholly the into little initiative, significant the Or self-fund marketing this a to of as And you to of is maybe the behind organically kind business? kind dollars running see of do put you move to this? specifically you plan bit

Josh Hirsberg

think strong the this, no, to customers. our want we generate so that databases, it and dollars we on California. terms we’re we about been that to use talked last recognition, a to three, we and try a this a or those has a or strong profitable in they say of the to strong, strong including states year want We platform strong be want the about build profitable. keys. as have business. regional Yes, XX this an have we’ve the in, Do to in states, spend But We be expect this space, marketing one, but building goal. and XX a obviously been, we and in isn’t business, online thought of kind the presence we We some and we position profitable industry, through in focused can that the position. months new acquisition a XX two, states name we expect think are and XX have as have core We and be to customers XX over front be would

Shaun Kelley

Super. Thank you.

Operator

you. Thank

line is next Dan your Politzer comes Dan, Fargo. Wells open. question Our from from now

Dan Politzer

Hey, and my thanks good questions. afternoon, for taking

of any trends, that kind reason XXXX you stability given of that, EBITDA well broadly, will at full back to the or you market seeing going that So of back that about back guidance? to feel consideration you’re stability and and good that in bringing and Thanks. original don’t set you the year River the terms business, as you’ve least Sky year be FanDuel access, then there is up. just bar And benefits from XXXX think ongoing the the have more given about full the

Josh Hirsberg

So Dan, question. understand over to I Are XXXX? sure be XXXX be to that, want up expect I EBITDA we your you do saying

Dan Politzer

Right.

reason least shouldn’t Given benefit any you’ll full the the market we’re at is pretty a quarter October year at access, FanDuel through and much the that Sky that’s kind of flat? point, River it get there this bridge fourth

Josh Hirsberg

Yes.

out analysts There’s that for XXXX either XXXX. good so our there can however, like perform. I’d not good where you to a business the So estimates, think answer have basis to as going that and I guidance question; use giving we’re or is for some

Dan Politzer

next we and in terms All right, just new coming can competition terms thinking properties should landscape year, highlight of And be about? in of the then you fair maybe that any on regional enough.

Keith Smith

there I’m I to going really and just overlook second for don’t a pause Yes, anything. make sure

market that’s really As The through we there kind in Midwest. Rock the that any Southern be Bend, tribal casino new about Northwest anticipating of don’t we and there’s XXXX. that Mississippi, will competition so the markets as property There Blue in of would have a Hard South market, we think isn’t in in our Yes, year, no really new. about the large impact neighborhood Indiana the a months part in Chip. XX think about but new not opened of that Louisiana, ago, the we’re

Dan Politzer

Got it. Thanks much. so

Operator

you. Thank

Chad Our line comes Beynon open. your is from from Macquarie. Chad, next question now

Chad Beynon

Afternoon. Thanks for taking question. my

a quarter and $XXX then of thinking capital Just you’ve as anything be year. strategy? mindful pertains of about have it when or about every you’re should the the Thanks. talked repurchases just thinking and of allocation, terms little know quarterly this dividend? baseline In you’re that how capital look that thought as bit, there us repurchases, continuing to remind you Can allocation million kind you of a we of increases share into of kind exceeded that of we about guys CapEx how a XXXX overall is I

Keith Smith

Sure.

fairly should you into. as I our in XXXX, XX as be kind quarter, be be and about should that think you quarter consistent what target. whether about it we’re about way to that continues messaging targeting been So think the [ph] And fourth our the of million we’ve you you think is a bake $XXX think it that

Your $XXX what little we hard analysis is the That been It bit to forward, price the million thought past a not dislocations or in were has to quarter. buy in advantage of more we’ve going taken predict that. may happen may back. a as higher

we the million appropriate could and $XXX in and cause our in that. we frankly, uninterrupted. the the we that were confident thing that flow dividend future, cash nothing CapEx share plans deviate that repurchase enough to on of you we there’s and started started ensuring that Same us operating our the we dividend. continue would that anchor would I at level quite with were the leverage into The So and program, level results looking this free an from

should is the going forward dividend you So think about solid. very

at a the You million share and about solid think $XXX through XXXX repurchase should quarter is very anyways.

Chad Beynon

strip Great, were XXXX of south just been of for hotel curious, FX, on we there extra some properties. and some thanks. from kind MSG expect items? different just events these the these your at would of And GXE, Sphere, expect your the some you kind benefit are around, the from guys has guess much given when you events obviously, you do or to down to was going events then, coming back from other downtown all But more benefit from or overall that enthusiasm to I downtown strip spillover out how of I’m inventory

Keith Smith

strip absolutely the Vegas, up, Las look, answer convention fair people amount space. operations. fills whether come has leans a are or meeting and locals as better, hotel of There which our operations whether to short it’s Yes, X,XXX strip as yes, maybe does is the it’s the rooms or our more plus as downtown

to both leverage fill All pricing that up. us allows to and of

do And so draws more full, as town. more the continues into we be has will events, customers town absolutely to unique better

So yes.

Chad Beynon

Keith. Appreciate Great. Thanks, it.

Keith Smith

You are welcome.

Operator

Thank you.

open. Montour line next of now Brandt, your Our from comes question Brandt Barclays. is

Brandt Montour

sort just fees assuming quarter, questions. that for sort million Hey, revenue share. How model are good grow the Is any I that FanDuel within wanted one around one would thanks all digital $X why circle taking then you going my the and about revenue on and reason aware seasonality in everybody, FanDuel we is should thinking related afternoon, with to back for we and that’s of within of be sort for that And growth? there wouldn’t there what forward? of line?

Keith Smith

share Well seasonality, for larger there's during say the, would football of season. of most I come clearly revenues the

pretty one. think it we clearly number seasonality first is have of business; you basketball. starts with launch so as tail growth that September, you'll Summer we the in you there's and Two, Ohio February, XXXX. So off should about to incrementally talked the through about Kansas launched August think soft sports with betting in baseball, in year. so

grow incrementally the that to that, make from How there? You business existing about to in your assumptions states or grows but XXXX. own have You'll have going do base grow forward? Yes. in it we expect

Brandt Montour

for don't about you your while alluding think database And terms what and environment. ever the on still in older income in a play. that we've and the you're specifically and within those demographic inflationary you Okay, of guys at where But gap; great. fixed then all of And you most coming guys with Thanks pretty crystal the stability that some of in terms are trends is were I checked rated regarding that. concerned that that Helpful. a demos database that clear some isn't, the fact of there's I'm of folks at recovery in assuming to this and specifically are back?

interested your you. Thank thoughts? in Just

Keith Smith

theo grow. to business. the from continue to Well the continues to older that it And relates Sure. return our they quite group frankly to as demographic,

probably less that XXXX, quarter They all come have over look It's strong us the you to older back what the but though for of their last than won't, it's us, come is grow. worth to QX even they key much would've If continues answer. to Will even those year, here's hard which back? a we this is greater. was question The in key. year-over-year seen a very demographic of QX year

have of And grow, and – not older so and worth fewer as much that yet. they're clientele, so they're so today back it's higher continuing all but we to

Brandt Montour

so Thanks Perfect. much.

Operator

you. Thank

comes Jefferies. line David, David now of open. is next from question your Our Katz

David Katz

loss wondering be your you speak the sort that thinking for a think get me. some lot trajectory to a please? that how a Hi be and qualitative time ramp might about covered It do about once evening of be. in about closed everyone. Pala was we of what able we vision including period Is are to question, for and this XXXX Thanks might going terms and taking or you for XXXX my if already. leader it I of as neutral

Keith Smith

to again business. gaming maybe I We're think to states. online participate the once the look, growth operation key some and operate we where is So for able focused adjoining an important expanding be vision states of sector the in the on

So approach. We're we have a looking not this approach. to a call nationwide regional

And answer we onto depends half be it our there, be just profitable go expect where Do We Jersey is approve to once sometime New we're states business, it loss from this rolls a to it a don't We the to own again, expect platform out be loss this leader? it and transitioning leader. a year. in short next as Pennsylvania no. The next. first and of expect

to We for expect profitable venture anything to the add? this company. like be a Josh, you'd

Josh Hirsberg

to I customers states add grow if operate we is, guess drive from. is as states of going I are lot anything our we to that in like this database was the expect in well a business we as that

interest. And lot have lot states could money Keith there other intend to presence front. a a a invest we losses beyond of may So where and up transparent of we have have that we has don't geographic be been that pretty

expect be from generating be this flow to the expect theme. free to we We cash that business, and

sure step like it term. be to to time one And It's that's that or short to intermediate losses we're so the an going at we're not to either entering term happening. enterprise have what's take for a

David Katz

Okay. Perfect. much. very Thanks

Operator

Thank you.

next question line Joe, Our Susquehanna. of is now Joe comes from Stauff your open.

Joe Stauff

Keith, Josh. Thanks

that maybe wanted particular Keith, but to are back, they value, Las coming growth back. And questions any your Vegas right at couple is curious, now. to older response I'm up the that kind of think will you into promo a you the are markets a if on, Just doing I older all? the reacting is mentioned a higher follow customers about, There way precedent on that, I'd coming on get a something say customer, they XX% up And had just are or to locals that then around California returning just its payments any follow stimulus naturally? just of there of Californians roughly finds they

Keith Smith

and operating he engaging the has about stability frankly, the specific to expenses respect marketing highlight talked quarter-to-quarter-to-quarter. not, of fact with the, we're been in So our promotions. there's not didn't demographic, Josh flat that the older no

It's been be be to And and so through, marketing ours disciplined as we a on increasing to go strong XXXX. structured suit and we're of stable be marketing. not the

their do up show to checks, of at out of Las nothing responding because we'd offers be to they're may in the of customers a may the stimulus all part California have the pocket back and quite their We be Respect state extent in properties. going get but California yes, customers our on. database, it. bit to finding from of California more these some there's money so normal and own consumers to Vegas that business or stimulus expect special of of way And in, the

healthier, And so beneficiary then of they are that they we'd expect come if and a health. to be

Joe Stauff

Thank you.

Keith Smith

Yep.

Operator

you. Thank

Our final line question your Morgan for from is today Stephen, comes Stanley. Grambling now open. from Stephen

Stephen Grambling

thanks follow Hey, in two for ups. sneaking me questions the and taking

gambling you thinking we Pala? think if about versus levels? pre-pandemic you customer First, second, on you that spend, legislation is and through chance the the And to any as acquisition core how are Thanks. online can ultimate focus where quantify visitation then from accretion path

Keith Smith

legislatures have hard how states. now approve several how it no are legalized or is slower obviously online is gaming is, when who it going predict, will who's long roll online and I this, right last with sports respect This take. the years a kind now, have how rollout is to states iGaming pretty be prediction they betting, as as will next will and maybe exploded to online the to of which than quickly say over state some XX-ish rollout, With gaming to it, six it out. quickly

to, visitation respect have us readily of XXXX; data now. we in front that I with versus think right don't trends

Stephen Grambling

more do to I assumptions? states guess iGaming underwriting to need the kind additional of Maybe up just see on hit gambling. one approved you online follow

Keith Smith

on This Jersey. all. but a the of it BXB mainly, the side at built bought, not so business is business we Focused profitable that side they a profit existing base into an New BXC it. in No have has

And so outlined today. think we already we've here just as about what

return We about kind of as investment. think on fine will a we be this

Josh Hirsberg

impact beyond FanDuel was other thing other at the Keith's further does I expansion prior I thing would basically the is, no only and would point, the we is business the approved say bought Stephen, what relationship all. add assuming And this But not already.

great a just relationship is revenue today. continues have FanDuel, like share We it with

betting be of for And with things of our iCasino our the of it. side of out us Pala us so these helping portion representing sports FanDuel of components both strategy and own kind will online build

Stephen Grambling

Helpful. Thanks so much.

Josh Hirsberg

Sure.

Operator

you. Thank

any We back Josh have no further questions remarks. for today, to further hand for so I'll

Josh Hirsberg

company. much you follow-up reach to the feel joining everyone thank and if questions, any free thanks for Alex, today and anyone out has to

Operator

joining today's call. for you Thank

You may now disconnect.

Boyd Gaming (BYD) 26 Oct 222022 Q3 Earnings call transcript