Earnings call transcript Q2 2023

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David Strow

Good afternoon, and welcome to the Boyd Gaming Second Quarter 2023 Conference Call. My name is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which is being recorded on Thursday, July 27, 2023. [Operator Instructions].

Our speakers for today's call are Keith Smith, President and Chief Executive Officer; and Josh Hirsberg, Executive Vice President and Chief Financial Officer.

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

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

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

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

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

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

Keith Smith

David. Good afternoon, Thanks, everyone.

quarter EBITDAR year's second results. all benefits by our our model, operating and solid was with line revenue management performance quarter the teams proven our company-wide and to successful strong growth of contributed our strong company initiatives second in last as another The

Operationally, core on we maintained driving our our customers. focus play from

year's visit. During last per as levels record stable trends and sequentially improved and core result spend were the a customer quarter, consistent over the with frequency quarter of first

half play last customer core began year. in consistency offset second continued in the was of that However, by softness in the trends retail

in continue controlling a to environment. During do the an expenses teams quarter, job our challenging management excellent

essentially highly environment. we years, last expenses the X.X held this have inflationary property during Over flat level

second with we XX% in result, quarters remaining our pre-pandemic quarter, margins of and a achieved operating above well As consistent levels. recent property-level the

our putting businesses year. EBITDAR Combined, $XX to from the on initiatives, managed achieve quarter $XXX betting Sky sports and online total substantial online growth these EBITDAR our in generated million full River we realized in the Casino. million including in gaming, benefits and ongoing Finally, segments pace for

the Locals of segment, we more each XX% comparison In EBITDAR. most for accounted in year. Locals roughly quarterly review comparison decline in which This our year-over-year of was detail. April, Let's the segments pronounced faced difficult last in revenue to a and Las Vegas

may restrictions business we last were you mask As recall, spring, a saw surge early Nevada. in other and temporary cohort lifted in mandates after

segment, weeks comparison, and By both were have and are year nearly May that positive continued encouraged of with local July. in few flat first the June prior trends these the we into

customer guest the in well gaming the remained core the out-of-town year-over-year. softness with local in by from customers market. in quarter, solid segment slightly play core as retail This as trends was During counts strength growing offset customers

Local XX% the we However, margins during the segment. manage effectively to continue exceeding quarter in with expenses

XX% all-time is air below trailing over our meeting business trajectory Overall, than XX% increasing pre-pandemic and Southern should And while convention while confident we XX Visitation trailing still of recover to which in XX% Nevada it to remain to a months, strong long-term and more market continue Locals business, is to vibrant the months. Vegas benefit the at traffic up continues Las levels, is over nearly the XX highs. economy. from the

the the among this foundation $XX to more U.S. than X% within seeing are has in now continue a and rate the billion major growth strongest more We Southern over Employment metrics as cities. employment Southern solid than into third Nevada up under encouraging in year, And is with the local economy job future. construction well. well growth pipeline, the projects prior more Nevada in

market. also benefiting across Vegas positive Las are conditions the These Downtown

of Downtown Las tourist throughout in stay, the Las throughout driving Vegas, the at an popular has visited nearly which growth their Las tourists Downtown destination. increasingly strong traffic remained visitation Vegas become XX% Downtown continued market. quarter, during levels business During least Last of Vegas, pedestrian once year,

to continue see we base. from solid Additionally, demand our Hawaiian customer

While during Station. were quarter the at by and is disruption Fremont Main construction Street well, overall the the performing impacted our market results Downtown

the Fremont, ongoing in was project At our disruption casino related renovation January. to began that

throughout While summer we this originally during in renovation to had complete planned to work the we accelerate slow phases decided recently XXXX, this season.

of during our of XX% and out the about service quarter. result, X/X a machines of games were As our table slot

was prior this EBITDAR potential an renovation the growth Despite year. Fremont is once this we essentially the October. flat disruption, complete of in the This quarter for the at encouraging of the preview with Fremont

Street remodel Main the second Station, hotel quarter. Next, to we early in hit began at

the As at rooms a were quarter Station results Street during result, only California impacting both and at Street. our Main XX% Main available the of

to this remodel expect completed in early We quarter. the be fourth

disruption Las third drive are construction segment. in quarter, will help growth While our Downtown Vegas these confident continue in will we the long-term investments

in Moving outside Mississippi. Midwest by Louisiana of softness Las South Vegas. in impacted segment continued Results & and were our

improve has in both increasing to XXXX. sequentially However, quarter the with EBITDAR this continued and our performance since segment of fourth revenue

in of We South. also maintained the operating quarter, the strong expense controls & XX% Midwest with during margins

Across continue with the our overall Louisiana revenues properties encouraging, of Mississippi we importantly, of segment, growing and and at gap customer trends play And EBITDAR last South. to properties visitation the quarters. year-over-year the each narrow are saw including our X the sequentially in at during in

to continues our for segment be an Online company. excellent story our Next,

Panda's achieved Boyd as segment this quarter, well performances as a and XX% Ohio the Interactive. EBITDAR the addition Pennsylvania, gain, driven During strong in of largely by

to own Boyd We Jersey quarter. Pennsylvania operations. manage also Interactive we online marks time casino branded This the in casinos during leveraged the first online relaunched and Starts our platform New have the

We Online an expect forecast and to operations which agreements market $XX the contributions now from in Online to EBITDAR segment, the Interactive includes EBITDAR access our $XX quarter. for million full of generate FanDuel, $XX from of during other $XX year, generated our increase Boyd million previous our all, million. million In

in stake equity nation's FanDuel, in leader X% these addition financial our the there Online, substantial in to clear are In betting. contributions from value sports

perform again in Sky to the high This management continues segment, and exceptionally since has generating for level. Managed so did it Finally, August, at in Casino last exceeded our River second property consistently fees quarter, opened it $XX & million company. expectations an in our Other

success a end date, We and is be to the company's million brings payment Given million in quickly to we loan anticipated. property more second additional $XX paid loan quarter received year. of Sky which the than the originally paid outstanding being loan payment an of River by to the current down on the during $XX July. balance $XX expect the million, to fully the This this

the realize tribe and has working strong benefit given hotel, tremendous room, River vision a to Sky the Tribe to other Wilton self-sufficiency. And casino property's the to the of Tribe plans space on of meeting finally success a is potentially for the amenities Rancheria start, the been Sky adding and allowing The the property. expand expanding now

to the neither or this we project While the yet optimism have be time share expansion. finalized, for scope potential for of this Tribe's line a

Illinois Based the Managed year, in business, Other on expect during Sky provided River's generate & segment call. current million with our from level $XX to will of distributed we forecast performance last this EBITDAR quarter's gaming the contributions million and consistent we our including $XX

seeing half And the we So second trends delivered we we as in customer second currently of results the not company-wide to the with in today. the any based are we on we are year, meaningful do quarter. what expect all, look ahead pleased change during

the from levels, core stable face continue comparisons at to year. Vegas remaining though segment, of the will during expect In our challenging play we we customers to Las year-over-year remain Locals this each current quarters

completed Street and experience will continue quarter. from to Las will Main these on in results but quarter, Fremont work early disruption Downtown is the projects once the projects the third Vegas in fourth improve

in & continue. will South, And trends the stabilizing we Midwest expect

will be contributors overall Online performance. our our to Finally, continue Managed Other and & important to segments

for in with moving expanded Midwest believe incremental half significantly our from growth single the a appeal, our and completion expansion facility Casino amenities customer In this we benefits of property's segment beginning contributing remains XXXX. our Chest enhance we ahead, in projects. South on we Further land-based second non-gaming XXXX, next of By spring. & to level expansion Treasure access, ongoing to will Louisiana, see the will track and improved gaming in

to investments. ongoing And see in strong property Las returns Vegas, we expect Downtown from our

for growth. the we Downtown position confident demand recently Fremont, for are these will we Given seen our at our long-term excellent the completed segment upgrades enhancements have

Growth value, and free robust portfolio return shareholder creating our are our investments expect we we're current existing And our flow, balance approach cash these in and an capital long-term opportunities a have strong investments to important to projects completion. low able additional thanks part you leverage to of as program. with to our to near with share

end in program regular our XXXX, strong free strong second capital sheet. per allocation share our our long-term of our of continue Since the quarter, to year. we maintaining this our return cash reinstated return to to to quarter, pace track we while repurchases create are shareholders million we decisions, $XXX at to billion significant by intend our for $X our distributions. flow a over dividend supplemented shareholders Similar Through balance utilizing we on value late by are capital

the are pleased core to initiatives results customer second operations, teams all remains and our quarter. growth our quarter In operating contributed ongoing as during effective our with summary, we solid model, our management results strong Throughout healthy. nationwide

strong capital XX%, limited accounted have efficiently continue on returns to property to we and total new a Online Our outlays, quarter, costs, teams that return our shareholders. for tremendous business and at higher created managing the margins With a continue X despite generating job great maintaining EBITDAR management segments XX% see Sky nearly for this River. gaming our do from level of business investment we

challenging solid the contributions to that to the proved again, success. their have thank team like through achieve our team would Once place have results right in I they continued entire for we conditions. to

Thank turn over time the for call like now Josh. your you I to to would today.

Josh Hirsberg

update present prior of Keith. and I'm programs. strong on quarter last return to few Total revenues quarter million to year's matched our company-wide items million performance. rose investments year, Thanks, $XXX over shareholder while second X.X% nearly going you and the $XXX a related of financial EBITDAR capital

year-over-year during of the and April essentially June declines. year-over-year nearly described, performing EBITDAR May with faced prior property we Keith difficult for sequentially As year-over-year quarter with with comparisons variance June's the XX% level year. improved accounting even

XX% consistent with the last Property company-wide while quarter, exceeded both the quarters. margins several level margins during were XX%,

last amounts year to of quarter. this million the As Online segment pass-through segment. recorded in in second million an and revenues These expenses aside, included compared as are a our both amount $XX tax $XX

quarter, and $XX Treasure expenditures Chest. capital spend Fremont including During for million, capital million. $XXX Year-to-date, have been the both were second expenditures

million project related in of to Fremont. to Chest $XXX maintenance $XXX and in Treasure continue the for We capital including year, total million capital $XXX expenditures million

XXX approximately quarter, in our share. the per shares. count We $XX.XX stock $XXX of of price the average quarter million representing million to at This an during the share at million X.X repurchased brought shares actual end

we repurchased In less XX. since XX program, shares our return shares repurchase outstanding or million the of We our repurchase of about remaining than X approximately we years, as the have our resumed had activity. $XXX under June initiation million at of capital current authorization XX%

on approval, our Additionally, board we $X.XX of XX. next paid XX. on dividend a quarterly pending October per July regular dividend expected And share is

with Our X.Xx the balance excellent in approximately remains end leverage leverage shape and the of quarter, total lease-adjusted sheet at X.Xx.

ample credit debt capacity We and agreement. have maturities near-term our no under borrowing

conclusion, of initiatives, portfolio, business. the and our our our growth In quarter on this focus segments reflected our benefits officially core managing our customer diversified

We have flow, while shareholders. sheet, the of amount continue returning free significant ability balance us generates to to growth investing cash capital in substantial our a strong very providing

take we and questions. remarks, are now our concludes to ready that David,

David Strow

Thank you, Josh.

will now [Operator question-and-answer We Instructions]. our begin session.

first Greff Joe Our comes JPMorgan. of question from

Joseph Greff

database dig I the but visitation in local of big versus sort that buckets customer the -- the core segment, how how worth. and spend? not they you quarter? or about your in your evolve tiers we was theoretical a of does talk over in in Was a And of kind little difference necessarily the guests tiers there or if in of of did those then between database of trends -- do upper sort lower terms market. those Locals how by of can maybe terms average of And the out-of-town bit hoping can net

Keith Smith

Keith. So Joe, this is

customers kind we of what in the core core was or the terms we to the I versus What well, refer end end, pullback the our some In upper as our prepared customers said of database remarks. lower end in of saw visits. the higher of my performed as database,

the per So stable, a in stable, the was spend just of number lower customer little customers visitation. was

been been has It years, kind end The lower didn't shrink. which of database, or for the just to to shrinking on it. trajectory just accelerate decelerate It of a soft. been continued has

visitation. once some again, pullback noteworthy don't there. And I in we there's So simply think saw anything

indicated X I the is up. back of prepared July trends looking is also we're market, locals my in in weeks Now first better. remarks visitation in The seeing that the July

-- July entire in to those not changed And second X trends X that first have but so are the the the compared certainly quarter. the weeks makes quarter, trends the weeks of

Josh Hirsberg

thing Yes. The Keith I in really is And about add weeks things from of level kind as turned where we'll see the just move improved. mentioned, we and was as X through positive goes would sequentially it July, softness broad-based have of only then the here. and in high quarter, And first April. it just

David Strow

Joe. you, Thank

Deutsche Our next Bank. question of comes from Carlo Santarelli

Carlo Santarelli

competitors soft the just little kind going some or Did so of on up in change out? and there the April question, pass or notice Or your period without looked change went any at guys when promotions promotionally incremental any was of Joe's that you Josh, market? much kind in that from following behavior softness. you offers

Keith Smith

here the what most market, while. the the has they their A a laid I environment relatively everybody locals is competitors. from remaining of and to couple part, Carlo, continuing But hasn't for that is really position do. marketing changed do in stable. say standpoint everybody kind aggressive would out for of Everybody promotional a

April, really comparison to last minutes and this to ago, Josh alluded about a few year. was issue a

XXXX as XXXX, of look often it as market So in times at compared April sometimes the XXX% up baseline. locals nearly we April and In back XXXX. last was go to or year, of a

comparison this really issue. of as flat. actually soft relatively so compared to May was And more was of said, Josh a while June it And XXXX were and 'XX, it April

So think was May it softness than more I was about a do April about issue. not or June, really comparison

Carlo Santarelli

and operating that relate or as look more there things if of, hiring Understood. operating certain is their of haven't And fairly of would it see kind trends to that seasonalities? say like, look any from terms here in pressures OpEx non-gaming and still portfolio, kind come look fair seasonality look incremental there Or of terms the are iterations of obviously, respective expenses yet of markets stable -- that Is all then in through? expenses. nature they tax-related you what across just to or and you

Keith Smith

implemented put members or pathway you're think an on been think increases. wage number right. team pathway And We we hour. that. about We've members they've No, expense a I If completed of a $XX consistent our had relatively for levels, quarters our now. team on a to we've hourly

current so And markets, utility in number. high expenses many are but that's in the

and/or any So seasonality I future demand. think based variation be will on

As revenue up, kind some in changes the overall labor. goes going expense not incremental forward. see there levels But should significant any of can we be

David Strow

Thank you, Carlo.

of comes next Wieczynski Stifel. question from Our Steve

Steven Wieczynski

It terms is, couple that question think the makes or at there. stable. I through soft, little called Keith, Josh it's is to softness the a you've it's point sounds Or like deteriorating? guess those is So Southern that markets, that the still go I out, I your lower it's but which on now it's just been of want of quarters that a seeing in some tier bit this has And or hopefully, And markets, database. more sense. market of

Josh Hirsberg

Yes, fourth a then last year. Louisiana at Keith think started to the add Steve, quarter in take softness shot real and I'll see something. we wants in to -- of Basically, and it Mississippi, I

it have come signs kind in trends about started customer is and of just the EBITDA think started trends, to improvement terms of way right along they've show of the of kind this to into -- to and year, both think bottom trends. stabilize things I as to we've continued revenue

year-over-year of narrowing are like financial performance. the in so variances terms And

starting how and to customers, be the a I of the tick respect of seems that, markets stable going number customer is the of bouncing all along to are we And business spend it's at rest in of say Mississippi keep frequency, off up. it confidence And be but starting with part has to Louisiana. whether behavior, are stabilized improving. that's early and least it generally say to of outside would of think little going kind bottom to even of I a gain direction, that trends The it's kind that with some to that

Keith Smith

fourth to sequential said, what reiterate of Josh XXXX Maybe Yes. bottom improvements. of is a quarter just kind

wouldn't of QX I stabilize since so improving and as it's deteriorating, of actually it view year. And to kind able last

Steven Wieczynski

sheets Okay. balance in still very with to you -- continue remain that of when And a have then -- I this. you mean you sheet. for enviable -- question there some to guys of if your one out second have you we better the don't you yourself across compare want balance take in And and I guys the the peers. is But are especially position know industry and to

So any potentially I in terms is, what of acquisition this guess the that company for you large at your using standpoint? balance look update you point? maybe at the would sheet an us in in appetite is today just of terms where Or question of from can terms acquisitions

Keith Smith

disciplined. very of of grown. at but us is anything, going to we -- it. take will there's we very picking We our think a interesting through to could while today. if acquisitions, And comment us to not tend we're Yes. It a dramatically you our like very, but quite the probably as grow followed what able M&A. future, job which the those But to years right the has where look for to Look, I we then M&A. thing the disciplined. is history of And could assets, those of company to has only at be call grown who have have do kind way from something continue grow the a we on smart be to We've we're and assets being be EBITDA done in I through to out gotten great over

Josh Hirsberg

Yes.

along time is they doesn't really the only it consider that to And continues balance continuing return to think growth be be on fine, and do don't us what we mean shareholders or opportunities can they come should focus one is want along. being because come I'd able chosen just we to able why acquisitions, think It's because to be whether saying like same view able to they be initiatives to just we levered disciplined along, of be we capital that to do I to will. a come pursue to enables It as what having at the And the I balance environment growth concept to perspective. kind too, that. of we only level kind that's that's we And is add around have all-weather if Keith good sheet a this bad. from is leverage of at an sheet. what to if

David Strow

you, Thank Steve.

Our next Dan Politzer question comes Wells of Fargo. from

Daniel Politzer

million $XX follow the I because to year-to-date just we million, just of to the back Sandy. The Is digital want that's is coming where adding of this tied understand up half $XX last so to then taking on from. obviously can guide. simply year kind and that

that of side unplugged the take can And since thinking just is And start so you the to extent you've on about early the long kind we're as that, iGame to us scenario? if possible any online casino? upside on that and with comment along there,

Josh Hirsberg

Yes. take take up the Online Keith Interactive. and Boyd I'll then can

we -- So million. originally of at were $XX the kind

little of ahead was consensus a think us. I

up outperformance to to of up consensus, with with of of think guidance kind the you in performance the -- and went QX then perspective, middle come kind catches if of and up really, of of the So will. we in from of year-to-date year QX, we XX kind XX. And us kind that to kind then a

put the towards QX, So if probably will that of end outperform us in range. the we higher then

through markets done of to some we But of well kind have year-to-date, is year had expect we -- there will payments move incorporate this what mirror improve in last startup what that just as one-off QX kind additional basically of expect QX we the as do in given have did we what year. we competition we as QX think in and what

road expectation for point. we kind of at Online it's So middle the think a this of

Daniel Politzer

-- just And it. Got to go ahead.

Keith Smith

just did the say, in to I Pennsylvania launch New the we business. of with early relaunched Jersey half As respect a any online launched where really product days started marketing. bit in XX your May. Look, step haven't really casino fine-tuning month second first and starts, out was question, the -- do We marketing. spent actually we the of to and little we the some July and the

pleased we're that is with say can I launch. the What

growth pleased with having our there pleased with are of We're kind and seeing the organic land-based it. lot a out doing by we're with the marketing. without reception We the from participation just product of brick-and-mortar customers their that

the term a But small about We'll and This for long the business the short not necessarily is remember, us. set term. grow. long of is about this and term kind being for

consider don't But we needle launch the with successful the move think in the to materially a results. term. I So expect early it would pleased short we are and

Daniel Politzer

Got about a and the Is Formula can would assessment I for to that quarter. follow-up, you my the terms frame obviously If One in may maybe we uptick to quantify in fair directionally? think so it. town. And that just think there the Downtown. disruption And an coming you then of online third just even of as that see way coming quarter, fourth there's kind moving just better then to any

Josh Hirsberg

Yes.

I think Dan. right, that's

an we it's because QX of kind year of Downtown million day would Downtown further disruption, be to I of we to and think expect then that perspective, come out. play in both how to all as from And estimate see $X QX impact make rest I so first some that back, the related that kind start in we of for back way the kind we'll make as online of on envelope through back to EBITDA. the of try the $X QX. pressures to expect you'll of EBITDA But QX to our and the has to not -- million going come business in QX back that's

David Strow

you, Dan. Thank

Bender JMP question Securities. Jordan with next from Our comes

Jordan Bender

seeing an year the Locals the Looking over convention well. what as and update in pricing months of on and just you're market, business, last couple into group maybe next maybe the

Keith Smith

some Probably the and convention limited only Orleans other properties. few business, footage the have square at comment we we and have a on overall

So it significantly grow business behind slightly see it our of year-over-year, was piece significantly back. but continue XXXX, so isn't a we up year-over-year, it continues business, running is Convention to huge to up but still grow.

have up don't there slow mid-September. that, The of And here we statistics several specific business summer room I with there. at any and significantly time Vegas pick in we next traditionally the for the very participate have about until the probably mainly with is and a the won't have convention time base months. convention once some again, business we meeting Orleans

Jordan Bender

gaming a Great. distributed And longer margin. then into market I fits business. kind a the question of that's how wondering slowing maybe portfolio Lattner bigger lower picture the just term. That's and was maybe on

Josh Hirsberg

Yes.

understand I to begin to think were our niche to states, try think the to to market would to the it. other I in it toe be we -- And extent look, us consider we put expanding to just that able water it. for in with that respect particular legalize

capabilities largely us our honestly. time. technology -- benefit in quite of it's we Illinois, For for over and get they some quo of now, leverage the status And marketing

So they outsized of support. get kind

And is. it is of what so that's -- just kind it

David Strow

you, Thank Jordan.

Barclays. Brandt Our next comes of from Montour question

Brandt Montour

here, half what as and an to it I than comps the at back go at it down could really XQ. which the if typically year-over-year if trying you back XXXX guess seasonality that level year, in is would I'm was Keith, little the the is Just weaker back stabilizing you X suggests described South XQ the question, look we would Midwest off that a seasonality, QX, bit is, suggest EBITDA segment maybe in still dig & for and get on at reassuring. to but

So into comment maybe the think you we should stabilization could third that the how about help quarter. just understand us

Josh Hirsberg

do is -- I this Josh. look, Yes. Brandt,

I is to to not going think season, stabilization override you're not seasonality. going

with we will to I All and specific is trying now think there started come started trends the weakness Mississippi within business, is, trends saw improve. in Louisiana, to particular respect that be back those consumer seasonality we're our say to consumer to business. and to continue have

with segments. say -- track just that or ebb certain not to get to so suggest of is performance. flow the on is to normally It's characteristic it's And that and starting markets that overall business to a relative respect see them seasonality bit certain business little won't that we're we back to starting

helps. So hopefully, that

David Strow

you, Brandt. Thank

of Our comes from question David next Katz Jefferies.

David Katz

ground. time, just as You where to, on and about lot one it which think don't of a you its I over if sits covered today is drive you could use well, value wanted how growing the think you mind, how touch dividend, about and it it lead day.

Keith Smith

we look, a It look our at returning was capital shareholders. to Well, multipronged approach.

them over this said, a an So the to obviously, I that program of end nearly by year. have supplement of repurchase we program, billion between as committed large or and two we'll $X the share with ongoing dividend and return we'll

I dividend each we'll be that. shareholders. capital. of dividends. can't part element mean some We it and of more on the goes one same how think it share and to see how But return they the the view about Many our like sit we year. an important It's would think dividend really view Not just returning that, where back way. I it. look, to It's in talk this up and getting the repurchases Board like I terms capital of than I to all Board capital say continuing. up to shareholders much is

that. investors kind accommodate trying of through our of to all And we're so

David Katz

sort really follow that's a respect you much can been another can if margin of recurring quickly performance, pretty just How do And Understood. right? to focus up I in direction the with think I you which of how good, was actually foresee with can like view of that? be conservative sort you quarters you the little of respect you just cost control should all we under that? to that have, next more Josh, at the and/or the sort a moment Do few sustain. feel about

Josh Hirsberg

day, Yes. quite are I that of level labor enabled to pressures, are job our whether the seeing from time perspectives, driven. offset come to they do time, operating honestly. door utilities them a great that My teams every from revenues in own it's from think managing that's to And the seasonally

get seen continue Another of these we've believe pressures, to increase they is is to those be and to to big to yet, offset of lot levels kind speak. despite guys margin a ways that very insurance. performance. as find recently deliver what of that I The But consistent press, reality so

we're And we've going neighborhood. to I said going coming And of COVID, up the able margin, out to stay that that. lived think levels those we maintain from of we've beginning, be but weren't to to in

teams that up in sure this delivering time that of performance of it's to terms should generally, expect levels us. be way. have think I lived periods terms margins of you of from And what I'm Our But that. always not is in where there'll

David Strow

you, David. Thank

question Chad of Macquarie. next Beynon comes Our from

Chad Beynon

future Downtown next those First, of laid months. have see kind I and you've XX the about talk and additional our in should models, wanted the to projects you've that in out those talked we all to Treasure in been the organically. and X about Chest, returns

returns within just adjustments, think beyond get casino additional properties other whether hotels, it's organic As could any something there the to where that, you we are make about portfolio. floors, getting add,

Keith Smith

Yes.

that we now, have we things trying number and right evaluating a prioritize are to So of them. considering

at up have start to opportunities point. it's and to prepared right be the grow are. ZIP significant. about those an out talk properties. very properties but very, team lay ready leverage those months to those we the don't projects to can at now, several not to we what high-performing several X strong very we market and of them to in management the But announce we Treasure grow that code to they're again, anything We so have We Chest, have this will once nothing just think further But continue strong strong next existing

Josh Hirsberg

And to to Chad, many would the going of only floodgate we process. continue double one and allocation into sense size, thing Fremont them to be is going of capital with so the you and open kind I add paced like start time. Treasure at Chest just did just and It's kind that, order magnitude in of Keith terms the we're not of gave of a to along

Chad Beynon

that then there a a mark? FanDuel if just if we're is lot after the public that when are together. we Okay. partnership. terms a or there Was these originally mark. in was of the aware X- that's of longer it's deal this be should the terms on it deals came up We're the partnership for renewal? up in anything changed out don't hearing And coming X-year know from coming But partnership, I X-year X-year disclosed of terms of on to

Keith Smith

the up term. think in is short nothing I coming pending really or the So answer short there's

in because we Ours of were across what term. nothing whole were that it out a short portfolio differently rolled were longer-term approach and But states had there's and a in structured the extension type how X all deals bit. options the

David Strow

Chad. Thank you,

next Joe Our question comes from of Susquehanna. Stauff

Joseph Stauff

if Josh, clarifications, could. I two just

of have M&A, on to on I in And said you wanted second you visits has out-of-town again in the of spending your remain of largely levels number visitors that then degree? on increased if sequentially saw terms relative markets guess And wondering say, of it fair opened the but maybe first ask thought your comments increased visit asked also, say, inbound say quarter, per but what the wrong, has maybe me that kind to and customer, July July to I to of have And consistent. I a X I You're it core certainly guidance trends. just correct if kind wondering, could versus increased I'm sort of number some clarification that. weeks? describe, I'm the clarify to your capital that was just calls. if a bit. you Is

Keith Smith

Yes.

the So July. in loss seeing that to we're early of trends core the respect kind comment and -- customer with the

in in comments visits. -- that customers I core They we as second the and those was generally spending my the count few at the it really like Vegas, same Las frequency. in looked core a customer We the were less had think quarter, were same. was

the weeks more visits. As we got into actually X first seeing July, of we're

up. to So are flattish visits spend and back is

And positive caution a a said, from I as but trend, weeks so permanent turn the isn't I And trends. X QX. certainly,

those on are And thick. customers in. trends coming positive So out-of-town

sure look, In down. M&A, terms that up of has or spotty. call It's always I'm picked not slowed the volume

getting calls don't or we've I say or last more I year So gotten the than wouldn't calls Josh? X. that know, over less we're

Josh Hirsberg

comes focused in an affect to how opportunistic just was thinking we're really just the of that it. return It's really capital so of extent portfolio And It's that reinvest have running something that business, along. that existing to today. The -- And Yes. about opportunity not our is would business like in continue unless say attractive, that's kind to along thinking it's we would -- I much only expect the run about thing do we but continuing kind and to about not an the how M&A of our we're today, we're that to shareholders. the balance the environment. came to sheet uncertain

going we're like we're generating ton not around and for we're things X.Xx That's of cash of flow or company not free the looking attitude internally. leverage, a the buy. to It's run

David Strow

Joe. you, Thank

question next DeCree Our John from of CBRE. comes

John DeCree

It's and question recovering Maybe me pretty been room strong just quarter. which for non-gaming was Last X quarter, F&B on revenue. rapidly. revenue, a pretty

like looked of to get Was comp was the it that if you're it versus more speak Curious on in we'll non-gaming curious uplift? to year-over-year XQ quarter, your This I those seasonal revenue see Is it year. still Is business? the recovering? last just thoughts that kind trends last that tough to could you was year? that seeing flattish segments.

Josh Hirsberg

jump then, something John, Keith, add, you have Yes, it, take I'll and in. if to

revenue look by segments. like we at room So when

the Vegas Downtown. came is in disruption up. from Las see was you'll room where Q in what actually was think the revenue that out we construction when revenue put I it eventually room softness or our in largely And in

of we F&B, improving for of of in the performance South. what the were and but of basically trends terms of with then kind consistent in kind non-gaming we And of in -- Midwest other in had about Growth of & in growth on us outside terms of kind F&B flattish terms data in Nevada. segment talking stabilizing

and coming commentary what's add quarter, the I that that's if consistent know on it. anything of business going Keith, don't or of things. side in of with the the covers there's what's kind So to if through on non-gaming the

David Strow

you, Thank John.

question of from next Morgan comes Grambling Stanley. Our Stephen

Stephen Grambling

Two quick follow-ups.

I when increase. ramp heard as you're there's digital with Pala. in thinking on about kind about talking don't start-ups, could effectively of And you guidance you're customer losses. I this there in increased acquisition, be what think this say First usually is that increase the

are by So offset you there be assuming the that's of that there's rest in strength business? incremental the going to investment

Keith Smith

Yes.

change as think was of is starting will It business. overall it When it's small it in Pala So that's small. which Interactive. again, very and to to of business. continue marketing, we talk dollars. the once we but July, profitable, part profitable, be the the about We small. started Pala, nothing a going small it's the trajectory month you It's bought of about It's

So I to anybody. this even -- this visible anticipate being wouldn't

Josh Hirsberg

So certainly suggested, continue doing Steve, And we're year out about startups and When to grow it, build here of million here. capabilities $X in to the it year expect million but it for assuming going capabilities. business to projections, platform our in EBITDA as from for and business acquired kind It has technical it's to for transition business that $X builds and from do transitions to to it to Keith was it's EBITDA. small. we our the to out to continue over as this of grow kind it's a we a formative opportunity, the of XXXX, its that

how we're it's potentially what suggest losses about business little marketing to this budgets similar more and where That's early go to used not business, going not It's you're a got maybe -- peers is is not the our online seeing about. are on. spending and this to thinking running So big not that to we're healthy backwards.

Stephen Grambling

of an I kind there, to back to Midwest, guess, -- where a from page, and And sure be revenue you sequentially, want the that around but & anticipate So South same on helpful. make all EBITDA you're lot -- we That's out standpoint, so you should lot just are I stabilizing of stabilizing is it. just Got saying coming saying today? then it's to here? the it going shouldn't from commentary get we EBITDA which a are move

Josh Hirsberg

no. No,

Louisiana, rest back -- up, we're talking -- me softness largely year-over-year & and the EBITDAR saying revenue Those affected businesses business me that's segment. we trends in terms -- by consumer of start. of the much had the to QX, the overall resulted and Midwest kind let so is We're terms was in and of South was maybe declines that best in of Mississippi. pretty stable. and Let place impacted performance performance about in QX

inch financial the And the of Louisiana, or into Louisiana, And economic trends remains up move to what we're along. result, performance customers' starting the in we the of as improve. is rest As business see to starting QX, Mississippi assets Mississippi, follow and stable. to a

based So talking quarter those are year-over-year, if were to we what amount, -- on reducing we we're that's to from as sequential down about. certain quarter. a quarter And going second fourth we move performance time amounts through first

only going down what's & the Midwest the that contribute going won't doesn't from market certain bit that go encouraging third a improve. because underlying into that is you typically to typically to starting will rest quarter if It's or what's little won't Louisiana, that stabilized or It further. mean honestly. improve that. a when Louisiana, and Mississippi, the It's for expect of perspective just from QX that our any in That's South. not in trends quite to customer happening a We see you Mississippi that down still see business the of down of perspective, seasonality, continue the

the that's But to kind offline. diminish. lose seasonality. meant not hopefully, to further about not, you start we'll it It's talk meant understand should it's to so that And that's we're we're seeing, we what seeing that of variances can suggest what continue. year-over-year that helps suggest it, if And

David Strow

Thank you, Stephen.

question from Barry of Truist Jonas comes last Our Securities.

Barry Jonas

from around give any openings we here? Just start. an wanted of to competitive on risks you us update Can be mindful should maybe

Keith Smith

Yes.

as Locals it Durango project the I think, the is obviously here in Barry, to Vegas competition, Las market. comes So the only, pending opening

Northwest the haven't completely We have Southern in impact Chip Bend impacted, their operation had have impact open South Park and and once Indiana. anniversaried have Ohio Kentucky, HHR and which on in for which Blue while. been Indiana. Belterra our Four minor at had a again, But in in Belterra recently, Resort And some project open opened we Winds then those has that

be, what they and of will open a of of types visit new whenever it. will It's our we've And shiny seen with I back properties, year. the a majority toy, that's the opening customers think, come Station my home. new later openings, have like comment will generally these going experience we it's open other things, of customers only happen say They this Durango over always would And years. to do. go certainly lot and

them of be it in Vegas The go had customers would where Palms the our the has majority Orleans number here back or the a Las impact when we either a Locals visit and of Gold significant come which and and not the look have ago, market, felt. you Coast, years it opened If had overall is on

for of see competitive And so openings, lot we'll it. it, we'll and of go with be for prepared have and they'll are a And certainly type these goes. how prepared it visit and again, once we experience we

Barry Jonas

Emeritus him. Boyd And to Great. Mr. and leadership in believe congratulations to just I Board with the change there role was for then I a Chairman the moving a guess follow-up.

should if we seamless here? from wondering Just transition a pretty expect

Keith Smith

very Yes. expect have is solid and a nothing The has nothing changed stable, of will Everybody change, and good. is it kind I will we be status would quo. Board Board. and

And expect so no changes. nothing -- should yes,

David Strow

concludes This call question-and-answer Barry. like to to today's Josh turn over the concluding for now session. you, Thank remarks. I'd

Josh Hirsberg

those everyone, today. you. on anything Thank questions discussed has thanks, to any please for out -- and the Thanks, anyone you. those answers David, to try today, company and for free joining And we'll we get answered if follow-up feel to questions reach

David Strow

Josh. This concludes call. today's Thanks,

You may now disconnect.

Boyd Gaming (BYD) 27 Jul 232023 Q2 Earnings call transcript