BYD - Earnings call 3 2023 | Boyd Gaming Corporation

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David Strow

Good afternoon, and welcome to the Boyd Gaming Third 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 Tuesday, October 24, 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 any statement. in those forward-looking may differ Actual from projected materially with certain uncertainties, filings are that may disclosed in including There SEC those impact risks our and the our results.

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

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

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

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

Keith Smith

and Thanks, good David, everyone. afternoon,

Our our the our benefits strategic the our core our customers, the focus of reflect results value third initiatives business model. on and diversified for growth of quarter

quarter, X% grew $XXX million. company-wide the revenues to For

year-over-year to core customers, customer in growth segment was on our see in we from by our from play play decline this X% core retail quarter. X% of quarter, the of last During in increase increasing from play continued is This during strong X%. growth top year's segment. the a This offset

remained year, a since last play from reflecting at segment our consumer. consistent retail total retail levels has Importantly, customer stable late

X%, nearly by cash In hotel nongaming quarter in both cases, beverage revenue growth growing the produced X%. with also and revenue business. than increasing more food during and driven strong We revenue

River to respect we again from our gaming results strong Sky our with online segments. growth once and And delivered initiatives,

to return a ongoing reflecting level seasonality. while and to cost margins a pressures decreased basis, EBITDAR property million, On were normal company-wide $XXX X% operating XX%,

results. in In year-over-year with segment segment, last to performance performance this moving on Vegas was outlined expectations second the Locals our year consistent the on operating of our Now our Las call. basis quarter to we a similar and

During from increased customers approximately to retail continue growth was play, Play X% X%. we the in drive which our year-over-year. customer down core quarter, solid

However, remained local performance group from since customer in last has the this year. segment stable late

ongoing with our We a and to food revenue our also continue during business. increase beverage in EBITDAR quarter. performance, by results margin non-gaming and our revenues both pressures saw in respect With local X% cost nearly the to growing and impacted be hotel

trends quarters. Looking quarter, the customers expect ahead retail the fourth we will that to last with consistent several and among players both remain core

third expect We continue should into expenses the current levels the also we sequentially the quarter. pressures saw overall fourth in with quarter, consistent be will the cost the

be there Also the fourth in will from quarter, the of competitor. anticipate opening some impact we a new

seen trial new As previous have some properties, our of openings property. new expect with to this visitation we from customers we initial

after over, this this trial expect initial we fade. impact However, is will

capacity. new long-term this return Vegas will growth will the as market and Las customers continue Our absorbs

the quarter, Downtown as Station business Main were as underlying the with in by final Next, well impacted remain Las the ongoing at Street remodel second segment Vegas, stages Consistent project healthy. renovation. room trends an of results Fremont

Street's the allowing in and is complete the was Street. ongoing both Main impacted work room benefits project by also remodel its The final and to stages, expect at it Street Main during quarter Street hotel from to California return California, Main year-end, the rooms, to growth. which station's we Main be from

quarter strong we non-gaming increased Vegas from third against Las revenue to during expansion our remains of with Fremont third the in comes thriving Pedestrian quarter, from the renovations disruption EBITDAR traffic the our from casino are the the amenities, which customer we our of Fremont, record Even comprehensive strong downtown drove traffic At as backdrop driving completed achieved and solid and strong and to results visitation Hawaiian October. growth a strong and Fremont continue and This market. benefit we the segments. core property. of along performance visitation Fremont remodel Street,

trends Thanks to in these improved recent results expect healthy Las and investments, our Downtown XXXX. Vegas we in

Las rates operations the than of this growth us room highs growth this the at market events the on X retail Looking strength of all-time with convention of of year-to-date. customer and openings trailing debut in Visitation in the nearly and traffic of a Las the Nevada recent to Southern Average upcoming set as continued sphere up the all is resorts Bowl, our is Nevada future. and for give X% stability is the stage Airport fourth a the year. And XX% the basis. core customer, more new continued the X,XXX year. Formula XX% quarter busy Southern hotel whole, the the Vegas for our at like economy nearly the Super market. Vegas up rooms, optimism business up is are daily Convention meeting calendar One XX-month across with a

of the in pipeline Local employment our billion local grow. with Nevada to currently remains in growth firm And X% continues as remain development Total robust economic with projects the last The a $X foundation for projects has phase, future. Vegas Southern positive dollars XX Southern economic Las the months, in economy billions is well into indicators construction up Nevada. continued now population in planning well. over under nearly the and additional in

stable Customer region. South and during the Midwest the trends quarter. remained to Moving

in broad-based in levels the play. by consistent remained South segments, from retail core to to Midwest other the volume at last fourth declines year. continue retail and customers of volumes, customer has year-over-year growth Similar in quarter offset We since see

like the during the the quarter. Vegas, and consistent customer our Midwest and in the across Las much South trends been pressures in segment South recent region And quarters these impacted quarter. Overall, we and the Midwest continue in have trends Cost believe will fourth performance

overall will this expect fourth third levels quarter, We running in similar the at continue to the quarter. expenses

segment grow to $XX to achieve year. in online prior full is Next, segment, million to this track the and versus year, continued EBITDAR million $XX for on in EBITDAR now our

the as FanDuel's from second well as benefited quarter, to we from Similar results Interactive, operations last contributions strong we which Boyd from acquired November.

as California Management finally, produced and this during in million property quarter. $XX And managed other $XX of our River the consistently Casino opening from business exceeded expectations million in represents last in our performance Sky has year. EBITDAR since this fees of August Northern

strong earlier of our performance, month. result a tribe to loan Sky company's effectively the repaid River's As this was

the tribe casino actively by and is plans square on the to strong rooms expand Sky based property's hotel working start, convention meeting River footage, on and And adding additional space.

and company are tribe expansion of the the project preliminary, still are plans an optimistic given Sky River's potential date. these our about performance While to

strong managed into maintain result and to quarter, other results, received project. about of River pace River's year's last next we during that fee we business a during year. development EBITDAR a Sky expect $XX the Sky of quarter million related a $X to in fourth Recall and fourth million our As the of onetime

company-wide in results. basis, continue on So solid a all, to deliver we

capital free cash our operating reinvesting our includes leverage and and balanced in allocation returning our capital shareholders. we're flow, program execute continued a company's properties Given low that strong to to able strength,

sheet. our while shareholders we past X maintaining returned years, balance to $X over billion the strong have a Over

our remain committed program. $XXX Going program forward, per quarter our we and million regular repurchase to share dividend

return In to program, on addition focused ongoing capital operating properties. in remain investing this we our core

X our types to the renovation the achieving we and completed of move represent of project examples The recently Fremont are Treasure these are initiative. a Fremont land investments. just strong improve at to experience the of of this potential Our operation onto chest the results customer

complete nearing announce Treasure sometime we expect its With next and year. now Chest Fremont stages, additional projects final to

part are of capital capital projects, beverage ensure ongoing demands. our ensure offering making initiative, but a in these remain our focus of fresh an is and many amenities we competitive properties part not hotel and and ongoing new relevant and food customers. to also our of investments customer we meet Beyond offer facilities for rather This maintenance a as plan, our to

and a restaurant the come new new to with As year. the quarter fourth we high Suncoast more X next opening limit during be recently an nationwide introduced we'll example, concepts room at

in We and several fourth remains starting hotel our customers. ensure for continuing to hotel look we also renovations quarter product our the as into have next relevant year

company. So and our -- all this another quarter solid for was

core Once and customer business by again, from our our performance of we strong our resiliency and focus proved the growth our on initiatives. model, diversified effectiveness led

return programs value teams property While to cost And utilize strategic to will flow we to reinvestments, acquisitions. pressures, shareholder continue forward, our create cash free to the not are our our capital continue we efficiently. ongoing immune our through business going operating and manage

to part of their I contributions our of a be solid another entire your you quarter is time would It dedication, team like performance. thank for to team to an of today. for honor their members. group Thank great such

to like now over call turn Josh. I'd to the

Josh Hirsberg

Thank quarter for our another you, company. Keith. was This solid

are even well this customers to core continuing perform in Our environment. growing challenging

of volumes beginning year. recent quarters, step customers, year-over-year In experienced retail took we basis our terms consistent a last Retail softness with in quarter. of fourth down quarter customer the the during on a

then. volumes since However, sequentially, these have consistent remained

as similar to in As were to quarter operating the in seasonality of trends expected -- trends second our year-over-year third difficult return quarter. experienced operating as experience and we business. face quarter comparisons a more we the sorry, in we year-over-year the those very third continued

a efficiency. with and second third markets year-over-year have insurance. Consistent while expense to categories continued increased the operating Our that major teams during deliver XX%, were we of experienced utilities were level Property wages, quarter were high during level company-wide the XX%. property margins quarter, what very at

online segment. our Moving to

We million expect this in to EBITDA million our $XX to this business of generate year. part $XX

and year XXX third both $XX were last this impacted in amount the XXX third million and online segment $XX the basis in more quarter, basis to year quarter. amounts pass-through last These to third as the overall During in versus partnerships compared points quarter revenue than the year related recorded our this quarter. this corporate-wide was margins tax million points expense by

$XXX expenditures during QX, Fremont including Capital and were Treasure Chest. both for million spend

Year-to-date, capital expenditures have been $XXX million.

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

Treasure and this as opening to and expect maintenance is next restaurant annual Chest year, anticipate part hotel additional planned the upcoming we mid that Keith remodels. already Now complete of capital have room we upgrades during spend And as announce several and Fremont year, growth year. year next projects our as mentioned, we

the of our of price actual $XX.XX at average of stock we per million quarter, X.X representing count $XXX an This at the capital share of repurchased end in shares terms the have return share. million quarter an during in program, In resulted XX.X shares. million

we X resuming to share have capital program a we dividend per paid $X billion on $X.XX quarterly share returned XX. shareholders October share returned our years alone. our dividends, have return more since program of we Additionally, $X through and billion Between And will repurchase over ago. by year-end, repurchases than

we our authorization. As of million September XX, have $XXX current repurchase under approximately remaining

substantial program our capital and to strong reinvestments our have property cash balance return our free Thanks flow, a we balanced sheet. maintaining while

Our total X.Xx, of leverage was X.Xx. adjusted end the leverage the lease while was at quarter

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

our the is capital grow in confidence in and to ability Our portfolio company. our pursuing history. return company's the shareholders our in strongest us while reinvest balance to sheet to the further opportunities Providing

and remarks, David, ready questions. our that now take concludes we're any to

David Strow

Instructions] from comes [Operator first JPMorgan. Greff Joe of Our question

Joseph Greff

Josh, Keith. Afternoon, everybody. you, Thank

in topic back your there at segments, much look versus of on circling reportable geographic Vegas in of the a Just pressures Midwest OpEx Las you is cost difference and When South? by pressures. the pressures OpEx

the way looks fair great. expenses that's on be changes the locals. But the would of at quarter-over-quarter if in I regionals quarter, that if like in It don't year understand last more in it looking the that, versus help and margins us a sequential sequential know could acute versus year. was this changes a you

Josh Hirsberg

Yes.

So answer or Joe, that. of a to you I'll give sense try

some Nevada's is increases the So impacting seasonality when primarily were think part -- of to or this utilities, in have to expenses, do of right? entirely look a large first quarter-over-quarter, related I there operations. there you percents all, which are

forward. weighted insurance, other increases Nevada, a of you're not be impacted like the careful the assets. it's changes year-over-year, but kind that and looking going more -- look can have just be kind especially impacting there property when to because hand, little when one-off definitely impact toward is property or you it On although more at be a of South And business Midwest did taxes -- that are in that I the one-off may

you there's hourly that's labor. on bigger the that about is year-over-year not think when definitely think basis. to that's than company's other unique I give X And July component the I Midwest team don't regionally the But practices really only just raises anything members its the applied and in -- look to there. of South. nuance a

I generally the bit. all But the as largely, think costs can you our pretty These nuances even of segments the are to across of differences segments. a I that hope between are of impact. you that all the spread business. little helps point

Joseph Greff

is here, I see question up strip Durango the do. incrementally the and to that Locals are of more and help next early That X labor you experiencing amount? specific employee Fountain this turnover? And the this Las Blue could union quarter and opening do you associated above-average if fourth is Downtown helpful. you wages And with so, a departures -- quantify with next on contract, months over year? Vegas in pressures new worsening presumably higher And with

Keith Smith

Yes.

So some it experiencing with front. additional people on at new respect turnover looking to these able now, while talent lines that bit prepare of positions, to these time what We if wars, seen is a so been little kind as you known to not opening a of it. We've we're will, of we've these going are and significant. on we're obviously have but properties, for for and be

to of the Joe, significant, employees additional opportunity. impacting nothing of next on nothing in is kind it's moving the So for turnover that terms business,

the pays of we're wages, so. rates impact, than strip will they they're those think to today. think the to except hard already more wages market last the where migrate and tell again, decision terms what people happens already strip land They're will with if strip, wages? I will over already are in and be X, going paying here I locals higher a competitive In for to could than see on we'll course on -- Do in is don't like higher it generally and feel just that to it marketplace, raised people the but place, it comes. make they have deal the good of wanted think or we're today and a as to. We've year strip it I once

ripple strip, end we'll and be -- how of I what will don't obviously pay on have attention. it effect what any an could to up but happen close prediction increase will as much will the being, what the

Josh Hirsberg

think add Joe, may relate X going at we QX I think look your thought I they as to and would forward. to question how they is I for what think about expenses imply

generally, we from expenses think of you look can forward, segment, that's When least in like the expect at magnitude order going feel or know we by that you what them QX. think incurred what today. of we I largely at

going forward. expect our structure other increasing disproportionately In don't words, we be overall to expense

the to of We of expect largely be seeing same. dollars kind that of level terms in we're the expenses total

David Strow

of question comes Stifel. next Our from Steve Wieczynski

Steven Wieczynski

and we cut you moving not to me wrong. this fair But it think about is is operating here. kind I'm to of I'm not, if if guys statement going a or as correct expenses tougher be sure for So from forward,

revenue If top line your bit softer. a to your little be continues stream,

operating path expenses? And those offset of do on I if your of the expenses? on down anything slot offset higher to the things some that there CapEx business you that's potentially higher budgets to do or the can side go your operating case, CapEx of is -- mean, like other the you cutting

Keith Smith

today, operating efficient expenses, running we very think are our as total margins business. we given Look, a about

to business we a as say, much let's room we And to say have fair pre-COVID. the that don't I did, it's fine-tune as so statement think

have terms what going doesn't so very line. to be we impact And it forward of sure adjust how in we adjust make careful we to top the

do that, CapEx the said think, flexibility Having on absolutely. side? have we I

very think have we're a I capital we maintenance comfortable robust that budget with.

little and as able flow are in in use any a overall free a business that And to declines always think we back. the I maybe years, spend pull or can times been always times that to little balance a see. we've more we lever tougher, good, the are when over cash declines

to but condition about not a overall in We're the competitive because it country. the here very in want of careful Las impact across what our very is market, we just properties don't Vegas,

Steven Wieczynski

question, you from changes from then seen And update any to to visitation could meaning, be offset market, second wondering if have give you competitors any standpoint your the of around in of promotional operating they or changes environment terms spend might majority encountering standpoint. type a your of slowdown any the

into X got you do properties And way about for pretty spending you've the coming again, specifically? think Vegas change your that market. big promotional Las you And locals market

Keith Smith

not The across got operators has it COVID look, promotional been think, or It's fairly Vegas, out think, very I look of been the And the rational here who have stable globally, have country more you stable. coming in maybe people -- aggressive stayed has got Yes, as Las aggressive environment properties highly or I individual the who major been been stable. promotional. aggressive. the

The have be kind expect QX. operators to very QX, I'd continuing other that stayed and of through into disciplined

Those disciplined being markets, getting way and stepping As players that have post-COVID players have that and disciplined. got those we the of it's -- our stayed the We're remained out after look aggressive. are seeing or still largely aggressive not people regional aggressive much at same. COVID in

They participate aggressive stay in don't. those have us. customers programs. with more Our today the opportunity They to

X even Vegas. openings see here Las And much changing so don't in I landscape that new in with

David Strow

Our Jonas comes Truist next of from Securities. Barry question

Barry Jonas

database specific maybe geography help Any size possible, of dig retail to wanted highlight? versus or you've core segments the more segment little a any importance comfortable to say, frame bit extent retail in the you you're if and with? the of And noted. you softness I can into

Keith Smith

So Las similar when it an in that think I saw it's -- business, saw impact about Vegas we we I and the we mean, in think retail South. Midwest I impacts mean, the

not to segments. the all geographic it's in across property sense So it's or extent specific, any

not And isolated set so properties. it's of X unique any to or

think of retail I kind about kind as to of the we business. of the core think overall impact

retail unrated lower component rated categories: being the segments. the of is rated being end within our And segment one, think generally, database, consistent. and trend in the the retail First, about two pretty second

any customers category. softness growth the obviously have of -- falls part segment in the that we of ability impact. are offsetting in kind database we're seeing in Where that rated through the softness is because the retail seeing related -- end lower where some definitely growth So segment. to core in the the the of is and core good. the are the economic into that of kind segment. customer to customers the the Certainly unrated don't And we But that's those for not entire softness unrated offset

We our track business about XX% overall. of

And business category XX% so the unrated business. about as our the rated business the is -- of

So on -- things. and of the side that's slots

know of in it kind not. dealing helps But you that you, Barry. don't customer sort puts that that hopefully, if the some understand trends I we're or with perspective So of for

Barry Jonas

helpful. and footprint that's Josh, in about Vegas capital around ultimately I follow-up, market. market talking longer-term the Yes, appreciate strategy. your a the the been But doubling on the its guess I had Durango as I has locals a opening. then Rock allocation just Red And commentary question

expansion talk the curious into think over just I if you how marketplace about was investment time. or could So further you even about

Keith Smith

Sure.

So the our is hotel restaurants. in doing our of many that of upgrading things of mentioned rooms I many one we're

to where businesses. businesses and in past and Aliante to able good a current Gold up properties product at our have have about We we make of Coast, can continue strong leverage Coast, the Orleans, believe these the trying We've we in locally be them grow that to is on customers. of the return relevant acreage to that invest at so here our do grow our we talked for to significant investment. the at And get Sun existing at very a sure many

where our two first next year. of capital performers that properties business and can announcing have have and very, some Fremont additional grow to locals The their strong more we'll we be investment. But think Chest, very were we certainly, few with Treasure continue dynamics those some a

those ready what not year. to exactly that But have are, do those middle will describe I'm next opportunities. we of be

We at sometime about we'll them place are year. middle and in looking talk of them and reviewing be them next a to

David Strow

of from question Our comes Deutsche next Carlo Bank. Santarelli

Carlo Santarelli

Thanks.

obviously I guys opening in in impact. competitor about kind And from would of little you like guys more just talked opening it of property just the an any a the Locals where would that, You quarter. that And little I the provide imagine a kind on what Orleans but flattish be know Vegas environment. a of or or think don't less to Orleans to perspective impact you context, bit feel fourth into bit in real say, level, broader you looking XXXX. Las have otherwise frame portfolio could put

will Just impact? magnitude kind fairly And the dry you in of it you impact be see quickly? just of you do of and believe see up or that about trial thinking any what do lasting kind

Josh Hirsberg

Yes, Carlo.

a it's good So question.

-- competitor over think marketplace. benefit tide. absorb we think result the kind believe supply feel we're will the going And I the new that of coming to will think and time, market from the look, I impact rising I as a have we into boats direct the like new all a of don't

So think what's a on. that's big picture we think about going how I

the there kind of impact through all be market time, And our some what on of not pressure over just we're of we our consistent intermediate kind that. So comments I that's direct with -- prepared our of then will business. short market to said And in in comments. it. think term the grows

the we from direct to of think it property. think by is which drive Orleans, impacts business, primarily easy not necessarily and asset to shortest our that think we but the a as I about When distance

competitor then here a And So in consideration. the a of Las that's coast major Sun on side Vegas. other

digits business kind overall, Locals to most of to got Vegas be of the mid-single if low it's kind of segment. I at overall think Las So about to generally the impact the think we

So would we be $XXX I for EBITDA, million all next be million generate case, to of conservative worst year. a from our $XXX of X% pretty impact EBITDA of think kind $XXX perspective. that would million And

Carlo Santarelli

could, Josh, of Okay. on then, earlier. I if made follow-up kind Great. just of comments And some the a you

increases guys obviously walked the talked buckets you they coming. of through cost kind the where were about You

You something various a out labor of will stability kind also XQ that we likely persists. that lot made XXXX But a how the buckets, much of to those relative you kind of point as pertains XXXX, about look that of obviously, saying kind the of thinking think to XQ you a side about it some you headwind cost to of for and are buckets and as be mentioned?

Josh Hirsberg

Yes.

we've is we're to what to So saw dramatic And impact from XXXX. of of pretty a not think see But a leveling I those some expenses, a and the kind And to that increase think program about off they're think to not Not I as into talked out. expenses I away. XXXX. going that year, degree. in they're say or starting for there's rolled actually we're seeing we Middle expenses program. we wage about lot instance, next anniversary of going we'll like -- minimum the

be been and single XXXX double single mid- look XXXX, up when digits digits. high the digits to you starting versus have Utilities low are really going that now at in to

major the to feeling So degree. lane, starting at to to off point the some they level like where about categories to expenses, we're they're think of get they're we least their starting -- when

do lot managing about with of how of -- this think forward. of a has And some this going to the business we kind

kind property as and degree. evaluate believe think where don't we control I things, think we look we which year-over-year are like some much -- the those to have we trending, expenses are in are don't these property of aren't rates materially. changing term, Some we taxes over going, expenses But the where or near insurance at of

we'll to a moving us, be for through of manage expenses overall I feel grow, it. able think but be will that and we like more period into that -- are we're stable just

gets strength I what we that. consumer if to consumer environment. seeing the a think be is see we're get trying currently But today seen expense core There's We've not what the is environment. least it think a the and question stable going customer. I of to what at more seen difficult fairly from of a continues today and the stable level. at weaker, nuances seasonality paint to haven't retail We're and we picture in

with you in Las But kind Vegas think today. We'll have to what and to that, way, period work seeing Street a Locals QX. performance introduction through a related impact that would have able for all with to ready will disruption going kind if some were absent some to respect XXXX. you consistent I that hotel in of business have We're competitor, XXXX. done, remove we're the of has of be that very the downtown of Main should run Once disruption that continue have into that's to to through we'll

some XXXX kind the we construction to into and quarter a then any this year our South, a Midwest customer, assets going we further XXXX. retail us in the weakness Midwest And core show of the looks and for so and at some in South. felt hopefully, of also beyond customer of that that stable get doesn't stable be And

But I that it brush. broad to to give don't But I know Carlo, a you kind I've big tried if, to because add want that helps. anything of Keith, hope

David Strow

David comes Our of Jefferies. from next question Katz

David Katz

another We could go in direction.

talk online a there. nicely progressing minute, obviously, for Just

and acquisition, other some $XXX I was million it about on Just investments. the spent recalling what believe then you

can or of any sort go you helpful. you ROI where us color think Any that of or might or vision give that payback would period on could or go be

Keith Smith

Yes.

which with this is then beginning Stardust kind moving performance. along relaunched what thus the and Jersey I'm Pala far, Interactive, May. New well. of And earlier was of pleased is acquisition in the We So this year, Boyd now Pennsylvania very platform of Interactive

wasn't We journey another database more view bought customer can play. it the gaming -- a chose controlling view of the somebody of long-term a directly we short-term long-term build get it's to. This wanting and of kind having about kind really we because online the is a help to involved that to of or about business as business directly and we IRR or in kind This holistic growth ROI. and of customer the market

very FanDuel it's with XX or the after we're highest it on Stardust platform. were the month in running August, done the launches when being of very with Pennsylvania exceeded iGaming so they happy We've and operating casino in performance, we're that levels the for So days happy of us, just early had the growing.

on point point, But it's well a of online a again, early. strategy play -- but is something strong long-term at a returns view about both it talking investment as not long-term land-based part as it compete having business effectively. an an as of at to once where a business And important we're we and this

David Katz

Understood. expansion think larger we've at big about investments wanted just properties And sense get for the a that. you're just -- think for know decisions sense should next we more like are, for portfolio your get sale or just where how up we X things and the and I Or that to may strip I or capital boundaries respect things are more to year, that I that's company making with to are read need a some of look or wanted upgrade? about. that for should transformative.

Keith Smith

Yes.

more facilities, remarks, number maintenance think investments, improving when and capital capital think I about talking I I existing we discussed in -- one. it's our as budget was my about were prepared it

quarter be customers. restaurants to have country year the So room that. just X, a the make We'll because XX We've to remodels. starting through way sure and do opening a several next more we remodels types going as another of some those new fourth new that for programs room continue restaurants X have across our fresh you product this got we're XXXX. open to in year through We'll to need

We will it, next we look programs capital to those yet. not Chest, of later phase we're the at, Fremont, discuss in announce to kind like want like the and year of expansion Treasure will growth what or you ready call our

to grow we the that But a business. can I we will that's high what And We're that's property strong an of those it to that have in we profile. and as is said, just -- what several prepared market strong, to to where now, to us about existing talk by trying we'll of a next maintenance. decide we're the continue fit think But be for not "growth" of is certainly priority as -- the those terms next get kind in performer middle year, by started. projects to it discuss when but be prepared of opposed

David Strow

Our of from question Bank of Kelley America. next Shaun comes

Shaun Kelley

environment, clearly kind Josh, going just that's of back incremental of the what's I to going cost here. on part the think

bit that you be as little you just it you ask little a costs where on a a can the was see as i.e. think look you it out of to sort to historically, a higher into or I X%, number, some down out like little the So might forward, bit whereas need maybe what -- is? here? inflation more while let's Or lower wanted maybe state, that? think we X% point need that do so leverage than to look X%, these very you to do low single-digit level What of steady would -- expansion be do more for right business lot 'XX it prevailing get coming to revenue from does 'XX? margin of X%? look Is than start a X%,

Josh Hirsberg

question. good a it's Sean,

think think we off I about like is, kind the of another. one piggybacking of ultimately, it think that are it's costs way I

picked to insurance point, and that kind do able And we're then able back of speak. time. so little really of turn turn or as customer. I the manage were around, with it don't to a softness -- and to those it lot just property So picked at some retail over up, kind takes costs, relative property up think to utilities taxes much became through to to we a

So able extent through started see base, to outpace. the I We to growth would manage be when kind that's off the would able be we pressures. of a of we to think to cost

and and of when beyond 'XX. just part on what's the business, we're of in difficult kind in stimulus stimulus 'XX I now going getting I I had like And business really business -- It came is that think think the it's to about hard it's so right the in about we of 'XX. in is out And but really think if a you think normalization. know because

on same revenue the decline some in in economy. time, At to what's the of the is related going

how to figure factors. out one hard it's those is each and to -- much that of attributable of So

working time with we're same going and on, the that's At dealing that of things. all of expense side through the

grow we on have And beyond what's start so be it's ultimately, us think is I incremental not that. when And of you'll will part all think that's see revenue. going kind to business once that economic, on, I to able the which that flow-through of normalizes,

with consistent the in not That as retail could consumer remain decline. to retail soft as were that XXXX, long consumer happen continually even and

our I perspective that sense So of for you hope that. gives a

Shaun Kelley

sure maybe of Yes. to clarify just side. modeling And kind make the to on all clear we're then

Your OpEx is feels the flattish right comment, operating or dollars cetera. like up related from we sort this the a is base So this quarter. right? I a mean about to moving quarter-over-quarter sort is This that the right? think utilities, expenses of good a base seasonality, comment to rate run to dollars bit extent here. expense saw business all of Is of some despite et expense kind dollar forward. This even of

Josh Hirsberg

point Yes, was the to I trying make. that's

will up that the there seasonality, will the kind be it that speak. go think give I costs all other out you offset come and some to so but will in of wash, will

to an the reason continued same there's to the time. that leveling be going expectation costs. is question, So that's don't of And be of evidence kind We any today. out outsized earlier in think that increases have at seem costs to to our further

So.

David Strow

Brandt Montour from comes Barclays. of question next Our

Brandt Montour

on first focus overall out line locals state have the X to market But wanted it grew demand Las top like we look of months quarter Vegas of environment, the a a in little the of environment. bit. the of did And quarter, only from the Nevada. couple the I months locals

quarter guys up. was you bit down market again, looks with you're market But for we but -- little and down that a the quarter, this modestly, like quarter, Last September. the tracked don't have

first is, the in months then follow-up give just question the guess early you of be, if the cadence I the us maybe you would X how to quarter? And -- of September relative the could So think terms at that? play would the a it Is it sort is other you're that versus thoughts helpful. the Why market any unrated And of the tracking all. dynamic customer your mix? below be segmentation market? on Is for

Keith Smith

out kind the So are you last quarter, X-months issued game August period, said, of you for part if you're those this at put as the put they September haven't that looking together because by the control last of it's and is the how statistics yet.

share definitely but about that's pretty market is Our it. maybe lost. mean I last top right on of much We or year. X/XX something, down

pretty feel And locals performing Vegas so terms we're good how the of market. in we Las about

in So put hard are them specifically. they don't it just to numbers out because break the -- Nevada together

is the Like it, we it, right the So aggregating off way consistently we've on last year. much we're X/XX. them way of top maybe said, more I an do of done But art. pretty the

Brandt Montour

Okay. helpful. versus care cadence July on looked September That's you And comment August? how would to and

Keith Smith

know going market don't is because to perform. the really I I how can't

what's going to Nevada reporting it's And is so in unique.

comment any did. on provide September see not else we'll so everybody until we And

David Strow

Our DeCree John from of next question CBRE. comes

John DeCree

core side, Keith and play. the customer Josh. the demand Maybe on

yet or don't same speaking, of the broader mentioned you've customer more? follow-up, I And down? trip if that you there. kind in your been us and they digits. maybe of trips a your on core of curious grow? little customers seeing about I are spend more think of asked kind broadly markets, up up give single color think was about could I'm low how play per number your Are growth. the spending then you is, that of are you bit are I more Or you core number then thinking kind seeing guess Or and broadly you've

Keith Smith

Yes.

little one core see as the the little mixed of customers at it at certain really came we that end across guests demographics, the bag we good seeing growth quality right? mixed age age customers, the frankly, so a good We're in Las absolute It's age of visitation at on numbers. segments out it's a growth, And We Vegas. of as across age a end. is value demographics, lower and in a bit region. country, COVID, and we -- So segments focused it's our by Remember, we're in generating than MSR. all higher less the the are the more different do bag around they're in frankly, look the of the the

are from customers. we we of daily those in larger growth those And increases earning customers spend we're actual seeing in the how and than are the much

of happy increase very play. of with we're in increases So volumes but customers in both volumes more

John DeCree

side. Understood. more That's the Maybe Keith. one consumer color, helpful on

touched that little have like it earlier. sounds cash SMB and may a business, hotel is cash rates bit fair? price, But and You covers, on it on the it's but

well? number you across of Are in an also seeing the and restaurants occupancy uptick in the F&B as covers outlets

Keith Smith

Yes.

it I is a you bit more as think it cash average a generally markets, speaking, up that portfolio, kind others, So rate rooms. the the in flat generally really some but about of flattish of hotel, think in as think little occupied more across rooms occupied cash

increased it's it in of covers. and than more is the increase On beverage pricing in food side,

David Strow

Politzer of Fargo. comes question Dan from Wells next Our

Daniel Politzer

competition versus lapping retail impacts or modestly to forward? do this and think lap in know South maybe a I of Louisiana, crystal going a have the I of X there about the And on your and Revenue at don't of Midwest of How easy Mississippi. quarters So just some the comparisons as possibility of revenue, hit new some the maybe down you row. flat past you to has up being But core you think a guess guys easier dynamics I want you and bit. ball. been those even portfolio, look comps starting about in

Josh Hirsberg

Dan. Yes,

of the kind that the we've driven X been, and is what's calls, couple talked kind Midwest but sequentially think talked each we've I makes about of I South guess, down about. of softness Louisiana. last less in QX, the continued have really have still things but has and of for Mississippi sense. just down, to variances that year-over-year And progressively down they're if kind just quarter even And they down, improve. for less. They're One

topic and so a less for us. And that's less becoming of

in late down a retail a which step and for Midwest was started that The last step of South consumer the really year. was other kind theme

to it's been of order to that need of since down is stepping in think as start sure kind be the consistent see state of to to QX further consumer, that, not some last -- make it's growth we make I QX sure for either retail or in XXXX. while to need us year, flat

doesn't it should business point, that But to be start can then like we know to saying begin think stabilize. the at we It I is. with that, feel -- comfortable once we

to the who construction Charles, because forward. And a how than unexpectedly rooms the starting has quarter, kind in we South, aided justifications and to of just for And and fix in the not that -- the room -- manage and the impacts particular, and going are meant were one-off the portfolio mean, at QX, is in fixed which we take of with are these have rooms the more in do there. expected, we room I point Midwest those in had kind other of required we during be thing throughout rooms of in note so to us out then we St. kind terms issues or Ameristar supply will had ripple been actually effect third

the are So things that to we consumer there But is, annualized to the in like I QX year-over-year else. we happening quarter just fact, with one be in get continues year, a kind to once directly of anything is, that of of retail see to stable. need confirm kind think question this basis just answer are think some off your really I on

point we're grow at should then stable. continue I a think a it And in Midwest don't you're and to I should think say say South the this point. to to point at be

Daniel Politzer

kind follow-up going the level XXXX? terms think the Got it we in of about Is $XXX million high CapEx, CapEx? to should projects be you're in of similar about that the quickly, for And how to there. then project spending talking it. kind of Given you're that my just

Keith Smith

Yes.

those same it's about million as it in to announced you each right talk thinking I Treasure Chest, the we've more past we're to about with size think it projects today, it as -- $XXX as able range. think as the were Fremont about we're and probably the until way in

Josh Hirsberg

Yes.

X-year They project. a done $XX Fremont within Treasure Chest was weren't million all a $XXX So time frame. obviously was a project. million

months and So belt, belt come as the conveyor are those take or the whole on end so similar has those the same the you And the a XX the amount. about to concept it about XX projects life up put is. kind up analogy will that similar of on sized in the -- off conveyor that conveyor about of place in kind whatever be and kind ends been be to of projects

It's range. going ballpark same be in a the to

sometimes a Sometimes bit little you're more, bit... you're a little

David Strow

Our next question comes from Morgan Stephen Stanley. Grambling of

Stephen Grambling

at play a we more a one look at is rated the your see back been protocol look any sustained prolonged sneak for the period? weakness, in, the been as window which weakness there's play weak look unrated segments you unrated retail I'll say in consumer? over other play any the lead strength to there has can Is when of or where tended has you while you that time, that to

Keith Smith

customers. a we're but is weakness Yes, precursor at bit continued I seen in in our would seen quarters, unrated point last that haven't for retail say the in play anything, or X again, -- customer that would say we growth weakness we've to that. this in the I not little core of rated seen the retail, seeing we've a our

much of COVID post world, a today's correlation there's yes, going on. So and not

Josh Hirsberg

stable given the in harken that's where and was, the period any just was even business, of today persisted business at that It And the segments both say, obviously hard you in Yes. different retail what they ultimately, core you, wasn't of is -- had the XXXX, continued retail that tell to of during it's levels period Even just time we spending pre-XXXX. environment. back that had historically. core strong time. that was consumer how And than really to I'd it

is was very to So do than a business ultimately, not going was. to was different have today it we what the it precursor But recognize on. definitely

Stephen Grambling

feel margins, if I that you kind is about but normalization, you're continues of you direction have changes thought end trying there to been get we at a that margins what bracket also normalization I made Got the at was it. could like in this, to. of in mentioned up and that where alluding normalization realize of as structural look any And the to kind do kind in

Josh Hirsberg

margins the Yes. I inefficiency a consumer strong Ultimately, structure the that you're cost of have of still think some costs business. and I and of retail today, -- of representative the seeing the while hope company, think not that very long-term respectful retail I for do are the weaker

how revenue the of see But we would ultimately, gaming see we'll growth I have side that to in things. plays. think expect on And to

environment the things much well, good And are don't so have impact. be where have really and -- we all of those suggest as that would enviable an you better can today in economic margins

David Strow

last from today comes Our Chad Beynon question Macquarie. of

Chad Beynon

Josh, the given X been buyback, the would level to stock increasing amount consistent market, $XX the some or of the basis, business. in levels. past, you've been stake kind in you've of quarterly sandal of kind about pretty of over has you $XXX $XX shares quarters, in terms million stability X where the consider guess, and repurchasing I Is there the talked about X% on just dislocation the outstanding, that the and in a a

million step that of you if number? where wondering kind repo would Just there's a number up $XXX

Josh Hirsberg

Yes.

or probably a there we way the going end is think just the environment, we was opportunity spending think accelerate lower. in the -- we about comfortable to price that least, would to today's within an spend because the overall, that And amount think but shares we we up would if that quarter, it do we're buying today. with I we're level -- that was were I at more may

materially. would done to able we to times good not think I sheet We basis, going the on in hurry. But case-by-case our bad. be want We to balance in and are a any be change amount it's use

to the company. look to our grow do today, when ways we're today, continue about continue ability there's the doing even economy, concern what So with to very comfortable to we're for

balance of things. the in Obviously, And do leverage able environment point, are be And if different more wouldn't powerful. of things think where the to even strength the kinds we really were I good, those at sheet we becomes a

it. to So I want want the And don't think with flexibility comes we We optionality. maintain to that get maintain we of too ourselves. to want far ahead that

Keith Smith

on how leverage not well want CapEx It's It this of balanced desire as to where as with cycle, much share is we a want about repurchases. that simply the at shares where spend the we're have in to business We view program. program. and strength the our buy of do Yes. to continue the depends back

into So it, have that increase it. particular how lot a much it when decision we but goes we'd increase we'd as around do and flexibility there's to that

David Strow

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

Josh Hirsberg

there's to Thanks, have David, the follow-up and Thanks and today you extent we additional free And questions again. reach guys out appreciate to everyone any the feel company. or dialing the asked. questions, to in

David Strow

Thanks, Josh. This call. concludes today's

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Boyd Gaming (BYD) 24 Oct 232023 Q3 Earnings call transcript