BYD - Earnings call transcript Q1 2024 | Boyd Gaming Corporation

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Operator

Good afternoon, and welcome to the Boyd Gaming First Quarter 2024 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, April 25, 2024. [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 statements today's date. in our comments are as of statements. We revise to obligation forward-looking undertake update no the or projected results in Actual materially differ from any statements. may forward-looking those

those There filings in impact results. with uncertainties, may our that disclosed are SEC and certain our risks including the

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

earnings SEC X-K of historical are investors.boydgaming.com. measures, both to our financial furnished which non-GAAP please Form our the GAAP reconciliation press to complete available and a today, For of to release refer at

at financial provide due special our of We reconciliation Today's live available call. do not after the a shortly certain website replay and and our of call completion project Investor forward-looking to Relations boydgaming.com of non-GAAP being this webcast be at measures section inability is the expenses. to will charges for

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

Keith Smith

and good Thanks, everyone. afternoon, David,

record challenging XXXX the a of the quarter first to year. start Following was a performance, XXXX new

we the a While quarter market results Main weather and quarter our the we're Vegas Nevada, Las quarter. impacted XXXX, of record in for to in results a in were January comping the severe first also Street by winter our Locals first softer quarter knew first

However, there first beyond the were these challenges, quarter. encouraging during trends

winter February moved trends severe quarter returned Both we January fourth quarter. the through & and that the core & Midwest segment, began March. and our once customers in In the across the Nevada improved passed, South, play as in revenue in South our Midwest weather from growth

maintaining efficiencies marketing results. And again efficiency. our Managed businesses stayed and and once maintain we high to during to proving importantly, focused property approach quarter, both margins achieved as strong a team disciplined our level of the produce addition, Online ability In of a our level management operating XX% on continue

prior decline. year of issues, roughly Locals each X of the was segments to main review of in Vegas a Las each our segment, detail. the EBITDAR In let's our shortfall result operating now accounting So more X/X

a last call, our and First, last we record I comparing ago, performance discussed mentioned year. as as moment Locals was a to segment on our

was January months segment. were the and last March particularly February both year, record While for a also month strong

expected, expectations felt competitive related competitive year. EBITDAR these during a to million in the also The quarter with of as Second, impact of we the of to million new opening pressures of full the line $XX $XX in previously was impact stated the the property our in overall market. for pressures

during Las softer a Locals on remain overall basis, Locals these business our was finally, same-store than market Despite Vegas issues, the fundamentals intact. And expected the the quarter. of

the play play in our hotel revenues rooms each out basis. a also the Gold of month. core service grew from during customers a excluding number the quarter, on when segment from a During even with project the customers at And Coast. Non-gaming room quarter, remodel grew core year-over-year January, substantial increased Locals for of

our finally, Even maintained our Locals of nearly our performance segment focused last lower over with we disciplined years. marketing and in remain the revenues, strategies with we efficiencies. XX% on And consistent margins during several quarter, in the operating

achieve strength Looking our management to approach second maintain operations in remain ability and confident expect efficiencies to from softness a the quarter, while and our market in competitive customers by into and disciplined throughout core ahead, continue encouraged we we our marketing. continued team's pressures to play

by 'XX from the to first a quarter first similar Las pent-up segment, comparisons Next, performance to quarter year our of the of demand record to the our guests. was of in driven was result strong XXXX. Much prior Downtown some our of Locals Vegas, of Hawaiian shortfall in

more kept than the of from expected anticipated. normalization high this levels, some quarter last airfares much elevated year, during we away we Hawaiian had year's While of

gaming Street. with quarter along overall addition, traffic pedestrian in Downtown trending Fremont In lower the the during declined market revenues

recent have elevated in started we that as decline has encouraged days trends, the to from Looking last Hawaii at earlier we levels Hawaiian more are first saw visitation improved the from the quarter. airfares over XX

X our results continues grow Nevada long-term continue in an visitation convention Las face the we While XX Nevada in to market and over comparisons softness, year segments overall have basis, increases business prior by led to to to Southern last On months. confidence the record Vegas market.

as broad-based bode story trends be most rate any business and XX well sectors. last positive The all a future growth in Nevada across see the remains health employment, for employment we continues This over major The employment months. of the strongest Southern X.X% of the with area U.S. well, gains growth growth visitation, the Employment metropolitan economy. to increasing in ongoing convention

& We to Moving segment. our the Midwest encouraging trends during first South saw quarter.

this year-over-year, to January. primarily While weather and was due results were down severe winter impacting

from Beyond customers performance And grew, and also in the March February coming almost the have gaming year, fourth from year-over-year core retail flat in quarter. seen best years. encouraging, in X trends the nearly January, we volumes play continuing the was to our prior

We on February Adjusting also Charles our for management hotel non-gaming X% grew operating Ameristar related saw their March. a our growth efficiently. revenues successfully project renovation elsewhere of and property, service to focus St. team in maintained rooms in out at the business. And

were margins recent similar weather our January, the this to for of the performance impacted XX% quarter, month segment. for Excluding

encouraged segment As our and last the have quarters, we across trends improving trends continued the April. several South look ahead, & those we over Midwest in customer by are

Next, strong industry-leading the across FanDuel's matched quarter, segment its to exceptional online year's million Online maintained of attribute results. in the sports first segment betting position performance level in country. with last $XX our in the EBITDAR

million segment's start EBITDAR looking continue year. will year. strong to the And the generate We our we pleased project for are segment ahead, to to in the million with Online $XX full $XX

a with In and the FanDuel financial from value our our we country, remains in success Group. benefit across continue valuable company. investment X% addition to strategic is in also equity for FanDuel financial asset of the contributions, growing these to and it This interest

Tribe. behalf Finally, benefited year Wilton at River's another to Other of the operations, quarter Sky Managed healthy. our excellent on River strong we second River & from Rancheria Thanks Well since opening. of performance Casino, Sky into demand Sky at its manage business remains which

finalizing facilities. a is Wilton Tribe of major tower The plans the expansion and will space, now hotel for casino convention a Rancheria property additional meeting that and include

million Managed Other EBITDAR million As expect a performance, result this $XX approximately & in strong year. to now of Sky to we River's continued business $XX generate our

allocation. during flow, execute to to allowing were year While free company-wide cash the generate on results significant first we us balanced below approach capital to prior continue quarter, our

are the our of and objective growth properties. long-term nationwide while with our enhancing the First, portfolio driving investing competitiveness in we appeal of

dozen We or beverage projects are of outlets nearly planned with and throughout food year. the many upgrading a repositioning our

set We and at hotel products. are refreshing this And updating we are Valley Blue also Coast, the begin IP and Currently, later similar in St. we Charles at projects Chip. are Orleans, year. renovating our rooms Ameristar to Gold Forge and

enhance Beyond a adding June, also convenient enhanced complete our experience significantly upgrading we significantly and project the Treasure and Once the will for nearing investment of project amenities, Treasury amenities, to options will for property parking expanded a are land-based completion Chest long-term position in property non-gaming confident property this gaming growth. river guests. single-level at land-based our Chest boat transition facility, from X-level spatial are we our the Casino. This

our part committed a we shareholders. to are While investing to approach capital capital of to in returning portfolio our our is allocation, key also

approach to returning million During We capital capital quarter, committed in opportunities. remain balance increasing intend the we environment, strong finally, while balanced and quarter repurchased sheet, continue pursue with And repurchases to significant year. to $XXX third a payments. the consecutive dividend dividend to $XXX stock current per with flexibility maintaining provides quarterly allocation our us our which we company and million a navigate for share execute the in shareholders to

in while challenging turn Josh. we shareholders. summary, many this substantial customers. diligently in And flow commitment strong call returning Thank and business, marketing I play continued significant there to quarter, and thanks sheet would operating to focused the to today. capital in you your our our core cash to In like balance growth our investing trends from to our free was strategies time continue properties efficiently. over now while and for our remain including disciplined the We were operating a on encouraging

Josh Hirsberg

additional I'm Thank provide the on to Keith. you, few quarter. a details going

With resulting management, the expense current property trends in our in in we margins have our remained disciplined level XX%. of business,

the also last have of several focused remained customer over our and to been has disciplined in We on strategy which years. our marketing success our the keys core one efforts,

These segment, our results as online our pass-through our both expense. and partnerships. amounts were Online include to amounts related revenue For recorded tax

first last quarter. amount was $XXX million quarter, to the in pass-through the year $XX the During tax million compared

in and investments million invested In $XX to in terms spend the land-based $XXX track on in the We Chest should million as first $XXX growth including we remain project. you expenditures, to capital maintenance million Treasure of that think during of recurring. XXXX projects $XXX million quarter, in capital

to to an acquiring to expect shares million capital also quarter, XXXX in total during expenditures bringing share. $XXX we additional million $XXX in respect X.X Keith renovation million With to to stock, an We repurchased return our million. year in mentioned, average our the of $XXX at capital price program shareholders, $XXX invest per projects $XX.XX that the to room million during

was the the We per dividend that share increased our during quarterly paid April also with to on $X.XX quarter, XX. starting dividend

end late in we have authorization. share under approximately in program million approximately reduced dividends $XXX Since repurchases the actual to XX% our resuming capital returned At we and XX.X the billion shareholders XXXX, of first to by current million had share our remaining and quarter, return $X.X our form shares. repurchase the of count

capital share we important capital per an part $XXX is and program Our are quarter allocation philosophy, committed million in to our of repurchases. return

ample under the credit strongest lease-adjusted With X.Xx, with near-term no balance leverage our history. in have we created capacity sheet the finished year-end of agreement, and X.Xx with quarter We maturities leverage borrowing consistent low and company's levels. of leverage, total our

to our of capital our result remarks, our questions. balanced flow, financial continue strong David, capital ready returning That in to to ability we now growth portfolio a a providing free concludes sheet significant we're created cash allocation, pursuing take and maintain our opportunities. substantial approach to and any reinvesting the shareholders to and flexibility our As balance have while company significant

Operator

Our Wieczynski from [Operator of Stifel. Instructions] question comes first Steve

Steven Wieczynski

market. It's what little I So like it as market guess, I I overall good. unemployment, Vegas strong. mean mentioned, would seems Las the there's maybe still mean messages ask relatively looks we call, out to mixed Housing kind a of just you low. I there. want about bit seems

what So what's on going -- guys out be just is market just causing some a seems wondering softness as just of there? as think trying to that to you it here confusing to maybe bit

Keith Smith

Yes.

driving at what's new terms Nevada hard to you The it exactly of And So of in softness, of the for today. on what's out and always it's at unpack if competitor, a basis, adjusting kind has X the look declined Locals causing last numbers digits. came a mid-single market kind a understand months earlier

And some basis. January on so -- look and back if to even and a small February, declines there X-month were trailing you

couple March. soft It's been has market not the for So a of just months.

As prepared is core our we well. remarks, in customer performing talked our actually

We the continue seeing we're is retail core from It more where is the growth customer. that the see more other economy. sensitive, changes customer softness. inflation to in and The economically retail customer

so being more spending they're that that how simply discretionary it's their And is about dollars. my is guess customer cautious

Steven Wieczynski

chase promoting. I then assume in are drilling and somewhat open. a kind Vegas Las Durango in right maybe promoting? the the about path around you and it again, terms to here of go they're promotional not guess down down now? environment. Obviously, second I guys to that you is, do there the And to But I Or think question question, dollars not start kind of just guess, of going seems and of of hold what like here going much. go out at line guys are obviously too is kind staying you And line Okay. point the

Keith Smith

are strong discipline couple major think every it. don't we're a getting day. -- our it promotional have each I'll about some and make competitor, and the properties has gotten opening to in Gold smaller of more more that of of XXXX promotions. market. not even operators, some We is not of Orleans have promotional XXXX do comments. elevated impacting other It do the that independent operators we town, are is really is their and good think level property, around the news Coast new a The we the into One with a around the there that late kind because I of

different level programs. playbook, just things. trial disciplined. that reinvestment but to we to overall our don't a we don't stick So don't simply same we to We very that doesn't costs. not are the It's that trying It's increase we're test not stick

to try look, monitor, to managing to team the continue doing monitor market. than generating we'll test So job XX% several anything programs we'll But great to prior significantly we'll continue elevated and the new which continue a nearly through last the it, years. the market, is today, we've seen margins,

is Josh, you anything? so I if team want a And think great the to add job. doing

Josh Hirsberg

think No, you I did.

Operator

comes from question Greff JPMorgan. Joe next of Our

Joseph Greff

touch I in also on understanding that market Keith, about And market. so we're crystal want thinking to Las just Locals the Vegas -- how clear here. you're just

comparisons. Durango were there X/X a each and local, reasons, said three record softness. of performance, last weight monthly about same-store You the terms results tough with in The year's

terms in So EBITDA of contributed each of $X decline, year-over-year million things correct? that means those about

Keith Smith

Yes.

in ballpark. You're the

Joseph Greff

and of little Durango fourth more the comments are a because what than different Is quarter versus bit the that X call. beginning the quarter indicated months ago deduction? And then the Okay. the same-store pronounced a that guys you end in towards your Right. fair

Keith Smith

quarter. So yes, softened market think, -- or through you the the market, softness increased I in the as went the

end once a at February January on basis. When have monthly you out were and didn't at that the the morning, again, see basis, We numbers looking trailing that when this we March, you'll came Vegas January, of out of of year. a point. full the March you we the at -- X-month at end So look updated gaming look Las numbers if last Xst on January, the come at

those the accelerating. softness of market the each For months, in

increased market And through once new any doing. of And for But whatever about that and level assuming this, can adjustment new an declined. level of talk as making you gone when competitor reasonable the want regardless make the is you you've to the February, again, I as you it pick, you January, competitor, what revenue, calculation it's is think has revenue March.

Josh Hirsberg

add sorry then I would I to it, Go I'm I'll think Joe -- ahead. the thing add. your follow-up,

Joseph Greff

was that we a say January. impact the more I fair? you're that isolating Keith, just competitor March the to and going worsened or for Is No, February pronounced that impact versus was on so in point, at look in Durango, saying of

Keith Smith

Yes.

Joseph Greff

far Okay. are so it this And what you Is is quarter, seeing worse? in it consistent?

Keith Smith

seeing February we're not reversal What we're it's saw within say of March. softness. We're numbers, an softness seeing would acceleration the consistent our we and fairly the the in of I with and not what seeing

Joseph Greff

you Got it. going were think Josh, And then that say -- I to something and

Josh Hirsberg

I'll add a couple of things.

kind think of million So be our would the first to all, $XX year. million I in Keith's remarks, expectation this $XX reiterated of he impact that

we're -- with our are think to respect I we So expectation. view not changing not really that changed

are impact it I thing marketplace, are understand is on the in what think the competitor competitors focused smaller is other other while an we are maybe are. we the to from seeing to responsive we newest more that than

say knows But largest marketplace are how there are and Durango on everybody facility, than competitors great you the competitor a new as those They the it's other impact the new the so that an what competition folks we are. to understand marketplace. our we're to than of are business, on and kind is And an is, just dynamics Durango having are maybe that can can differently the well in ourselves focus that in other so operator our have you here And impact of the facility, marketplace. reacting of newest less trying doing.

Joseph Greff

-- your prepared growth And to comments, core in you Got way greater of growing, Can you talked talk Is Keith, it. it's a that but players. your your detail? some then, in seeing comments one about that final interpret exactly And mean can you it about share the -- from still slightly Growth accelerating? by or core - positive? players at if in core is what it a is is Or us that? and players. you growth decelerating pace

Keith Smith

core My we whether a Josh front core to on of revenue you I about is growth play, customers that may something stable relatively from in that the And core And in decelerating. it's continues has basis from growth is it's when to me talk of year-over-year in terms statistics you have to it So from revenue is have or to of grow. add. some... don't accelerating the grow the continuing revenue tell the rate. Josh, group. and that group sense group. But have

Josh Hirsberg

say just comparison to talking a was is going about part I remember, to of to Well, results have we're last year. you what record

you when basis. relative that on with So start do you core the of context it have thinking what happening is in putting customer about growth, a to

growth customer customers core January, -- February So the grew in March. excluding core and both

as that. record And bit And add prior little around me more just results so to these results. comparison skewing that's a year well as let what's that color

If our happened record. January. Every month remarks, XX% a as year, that last were happened we performance the performance record year-over-year all Vegas you gain Locals, mentioned in our year, look in last at Las of was results. But

So sure with this lot in about market as of competitor issue and what's you all just keep -- competitor. because the competition has soft a we you new happening have we've to to incremental you to be new a quarter move perspective a kind comparison of and through think then responding competitive as kind that related of do a it and had where

Operator

Santarelli Deutsche Carlo question comes Next Bank. from of

Carlo Santarelli

to moving maybe seasonal surprisingly sometimes Was side run similar favor overstated a should bit I look weaker a this I know kind Midwest expect be if and there But be your historically cost for the larger bit the on This I quarter up forward we as was than of margin at expense may Guys, than caused a true a And And fourth than year? the well. whatnot. & accruals rate that that quarter the mine anything a period look with period? bit in stronger speaking, involves XQ. expected, fourth if little there's South, XQ think expected. year-end, tended onetime And recall. I little there to little one in

Josh Hirsberg

Carlo. Yes. Thanks,

really, look remember because for at have it's the quarter of all all South, influence. about think, I wiped it's essentially when you January. & January Midwest the to out I was mean you about weather, what the and weather

weather. So on, and if it, can want it's February significantly way we look and do what at you this on. we really going And I X/X at can, was going essentially easiest year look March quarter, what can't obviously you but understand year. of by of see the was to you of of but March last January to I say and do the that, think February affected was and kind

Margins in were February Margins in year February were XX%. and March XX%. year this of and last March

in taking property, So change little expenses quarter labor-related at the insurance are around bleed the talked into costs especially first honestly, Midwest else into that, quite to half this a look when I looking you're or anything South, & any last really and really bit we and what kind direction other that don't South. about year, all as year than going of the the account at around maybe through of & third of Midwest

declines I the January. and helps of. revenues March, in February all the South to that hopefully, mean happened with kind in So of respect happened & Midwest grew.

Carlo Santarelli

along margin that Josh, And margins I then, on February you perspective, as saying and front. an up well? March from those were in Understood are EBITDAR lines, guess,

Josh Hirsberg

again, at were versus March I'm and a the the XX%. year, basis, combined February combined March, weather you get March, out look and were, trying a just to you February at when they When last margins saying XX%. and on basis, about conversation, of look February on

less, property, about through of talked you but that's to individual them amount, have the year expenses little a et reflective you we've still bit the work will. not that way at Labor, last kind were their if cetera. of on taxes, look system, And what If less. materially they an that

Carlo Santarelli

for a when flat in on it. margins bigger you And anniversary stuff, looking Got to of that static environment out? the kind revenue i.e., segment we of when be should kind

Josh Hirsberg

Yes.

of last minimum increases I vestiges from if began around last increases somewhere of that was effect and is XXXX, wage. in Around of the in, also has impact the Las the of last most of into correctly, late come biggest Midwest minimum midyear introduction & rolled midyear and throughout. in went year when also wage, the happened out remember Vegas the South, year. So around the the It

of the of Midwest half you So and year get most -- both will labor can increases this South & first LVL. mainly in through

Keith Smith

half another footage. we year, equal second of on should way, Carlo, the be a Said

Operator

Our comes Barry next Securities. question from Truist of Jonas

Barry Jonas

you me Can now? hear

Operator

Yes, you. we can hear

Barry Jonas

Great.

I clear. question, just So make to following last sure up just on the want I'm

normal of of normalized there's the through flow-through sort you In of back expectation segments, sort your land-based half get in when of should line constrained saw year, flow sort another quarter quarter the to top obviously, second is terms this environment? that in the that negative each more you assuming of of the a

Josh Hirsberg

Yes.

were look, about -- least we So were thought in I I we transparent pretty we expenses think when talked pretty at XXXX.

remember So But then. succinctly Keith now. what year. second described I'll we there to those we half recently had communicated the anniversary kind in this try were as that, obviously, of pressures of We'll labor -- -- around just

property Secondly and and middle went largely taxes September. in lesser were in of a Those year smaller degree to property the up insurance.

the going Property second So labor, the increases. we're of half the assuming year. not of to property level taxes and get same we're through by insurance, largely

of kind I -- be a level event that kind then third hope Barry. and quarter also of playing helps, on should that should hopefully, So a be field. we

Barry Jonas

Yes. and seeing talk Locals And other you're just then what question about one there.

curious, is properties across it or spaced more As your your you impacting portfolio? any out to all segment, Locals think about Locals in just I'm specific new properties the competition fairly the

Josh Hirsberg

I'll jump concentrated take want Keith, of add properties. to quick, real you in. And a -- if, anything, primarily it But it's couple in it's Barry.

market. have properties we and That's have more of Vegas numbers Las on kind can then the we in we by Locals impacted property being X/X competition. X/X, effect -- We than in of can that by X helps property And identify And what impacted market -- being have we is comments. markets in more benefits are is can what some the own the competition. broadly -- how obviously I see that X/X, see think one stated that aren't of competition. we that we the going our we that quantify those is the us

it competition. by our properties that a is So impacted subset are of being

Barry Jonas

closer property? that's assume new Just the I the geographically common to Or denominator?

Keith Smith

I the Look, spend -- impact I answer Gold impact question, happens is an of a increase, predicted. what it on that than on having launched trickle-down lesser an that in around compete No. ripple we're direct our it think those earlier or everybody but starts customers. competitor competition for heightened new Orleans in effect had back customers the their they market to of the really directly properties, and started that and some level and is and levels. a we It have seeing kept goes when kind enhanced in to when said the the to effect at properties we've extent QX then is frankly, end to lose of have Coast those to

think would wouldn't really are competing of bit it some that as as properties. of that there competitor. just a our are of aggressively and just I other I so it more And new others think Durango, little of surrounding or the there's

Operator

Politzer Our comes next of Wells Fargo. from question Dan

Daniel Politzer

level that you comparisons March April? in continue seen February have relative January. and strength and you called into to X% out lower March? the easier still and along that Josh, as Maybe that of kind juxtaposing Have February talked and or margins versus that about the you get tracked strength

Josh Hirsberg

Yes.

look, at February to margins, know honest. customers with March. and to made -- be April haven't is the -- But of we've into I of April terms that looked the assets with performance respect the in and around me comments going the really Let consistent trends what

answering that So I kind feel about of good question.

say math percentage real at. some -- which good April Yes last is just I'm quick, I And year. doing about very that point not behind of would April so a

February like seems generally same at as -- March of this point. it right direct the headed and in kind it's direction So

Daniel Politzer

then And same on to it. on we're the make sure page Locals. Got the just

a But year. just little Durango that little that's include this million far that you've but million a the impact $XX that Is -- -- thus is basically effect that softness the worse, of being the doesn't to more So also $XX worse. any market it's less fair? seen knock-on is

Keith Smith

That is fair.

As described X/X, my comments, in X/X, I X/X. it's

And of first softness very, to quarter which was $XX market last so yes, is the comparison strong, the the The to $XX million X/X. million And is just the a thirds. one is other other very the X/X. year,

separate all and they're distinct. yes, So

Josh Hirsberg

Yes, quarter. how based in what we evaluate on the happened could

Operator

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

Shaun Kelley

I think a lot and covered regionals. angles we've different locals on of

So tackle just I'll maybe Downtown briefly.

been decently There, of any the You called But Bowl did that just and in too. in the obviously, traffic be Hawaiian should kind theories level levels just we correlated. pedestrian across foot keep of have market the specifics some have around Super pedestrian segment, on out good there, traffic. pretty given strip and you general, kind think they

information that on. market a not get we much as quite it's So

Just what's on your operators about going -- from any about thoughts there?

Keith Smith

overall by the the for will, we slowness, generally is were watch stream, the think Downtown. revenues revenue we gaming our on overall a obviously, the large Fremont Hawaiian business numbers, were of declines us I you as No, chunk in traffic traffic of And Downtown if Street. surprised outside,

really was around So customers kind retail slowdown Downtown. impact. had theories of But just that just no an a specific -- It the few soft months. it for

we picking -- picking explanation. no feels back traffic Now put can't up. an on like is But finger Hawaiians back again, I up, as Downtown general said, are my

Shaun Kelley

just that do it. repeat, you we component spending market then by i.e., it. making Or is that of I is apologies Got not the there's as third. that just like problem, But those attracted this traffic it disaggregate And a just so else Locals Is softness, for for think quite are being Locals, a these people promotions? going and a problem, much? in somewhere same

Keith Smith

strong kind in, once to our in here customers, again, first in continue first context, grow. And we year. grow last sure, of which, quarter I've very to the continue grow break to us quarter times it they to said kept Well, ensure Locals to just of over a core continue they the few people market trying a into make as Josh,

sign money. to lack the where spend So show retail it's core shortfall the It up lower and side, seeing that really very spend. our in we're are continuing a is end customer more the of customers good the

And are is it lot they're the their economy? sharing it Is it of wallet? unrated a they're going competitor? to these A players. is

them don't -- So the they're how they're just don't what they're have them, whether sharing property, exactly spending spending not another whether we know not we their rated. the actually visibility dollars, they're because with

So...

Operator

Macquarie. Our of next Chad question Beynon comes from

Chad Beynon

just the Interactive, year-over-year like believe on Josh, if digits right, looked Also grew digits. got of it and that received quarters? at Can any is us I may least being I in of looks higher well. update pass-through the for marketing give have grown sequentially, in of Boyd based this kind probably double revenues you it ramp double as like to couple drive kind next plans revenue Interactive, up product of customers terms it an how or by

Keith Smith

about So when start Boyd is Chad, you're you talking I online the Interactive? presume casino product referenced

Chad Beynon

please. Yes,

Keith Smith

right I to just the make sure I to that question. was going want answer

kind rollout very it's we're with look, the of of where that the at. steady pleased and So product

took frankly, Jersey. year. because our So a The were year it than we're over. own they about last Pennsylvania less Pennsylvania numbers, of are we into with double live in launched revenue where and when We're New product May market it

those New that we're also -- we social as a to quite of Jersey where Boyd launched they Interactive. as product robustly not still out ahead but running were There's both of start when they're businesses. hasn't grown Pennsylvania,

is look, overall, a small business. it So

this a as it a growing to remember, not national we continue taking described we regional approach. And we're approach, a business. As say, is have

does the and would expectations states that important us, grow the where continue and few we business to to our be. business to states So it of ahead but want where in surrounding for is we do launch thought a are we

Chad Beynon

have you question across Great. changed portfolios there? X always as or about some And better desk few then towards in these we come Any Anything think even path high the sometimes update get times your rate more a on seen months you've I declines? have sugar that of a off, M&A. interest now the revenues calls worn the and properties really last

Josh Hirsberg

opportunities. that opportunities. lot and how for evaluate that to disciplined say forth making that a would I meet we for decision. we're I things There continue the ourselves in continue be that to are would don't not. are criteria of those evaluate Really going kind say we that of Yes. sale we a put to

to to we going capital come could and wanted reinvesting think we our our disciplined kind kind to to capital the in generated acquisitions, and around to free we'll stay for return continue shareholders, that's how it. for. be of extent strategic of that in continue be were to that create for strategy, in spectator continue then in to to be our and of we'll then to shareholders flow continue something about committed we're to disciplined So that be the cash terms business a of along value our us, Otherwise, aggressive when allocation

Operator

Our David next from question comes of Katz Jefferies.

David Katz

one I time, wanted okay. Downtown that's if to to just back go more

give et going us as Some Can remarks cetera. of are that that you is in particular quarter? flight of second just market those impacted? you whether Or long to the into dynamics, expectation the continuing sense be the a what how to about your is Keith, costs, prepared described

Keith Smith

correlated During kind And coming a the XX a Hawaiian in directly our conversely pickup seen we've that, we've or seen of Hawaii. business. airfares in of last days, out to decline

to it elevated the in the Super it rates highs to And are -- late their is board in rates Bowl. across earlier the January so decline and starting starting year. Vegas Las from of February looks into Look, were like extremely because the

weren't looking just at now the our pay Hawaiian they're we by and they so our to stayed know make airfares simply to starting of many customers their higher trips. because And going away database,

direct there. control they air is can from Best inbound don't were And as but airfares I less tell, year. like the looks Hawaii in it or there correlation a be the become continuing fares, I to than to earlier so seem normalizing

and we our yes, business. a expect that, to continue that So continue we'll see that rebound Hawaiian in will

David Katz

this sort but different I pretty at out Got -- just come it. And thoroughly, of way. if discussed I of sort know one slightly can just we've

How to point? just since what the we I year, hearing? a of turn worse? that's opened would were little or at what and out Did last it was. at sort commentary commentary were sort accelerate new Did some late of we Las relatively think sort the Did a be seemed Vegas and least benign we of it about it back hearing to characterize? property misinterpret you Locals look impact be

Josh Hirsberg

all, first think, what we about to talk call. through of on able I were the first we all fourth -- can was going at our quarter

with were consistent we So that.

the getting not others promotional aggressive the much as more to promotional. the I thing so quarter tried getting a new from as is did competitor describe move perspective, from marketplace in accelerate think more it from but is, second the Keith through we

Some advocating loyalty generous they program most in market. Locals have Vegas Las the the

and is way contending type our profitable on promotionally we responding aggressive that we're of run properties business. So because don't with a our to without pressures being those think

So and in you had major -- a slowly performance. I getting then competitors, significantly had new start the Everything our and come and some of not and absorbed was soft us started in. to our you aggressive more again, think that had you stable not to market, competitor get influence kind competitor so a get market

Operator

Our comes Montour from Barclays. of next Brandt question

Brandt Montour

So the the And what ends terms you're you of right, couple reiterated tease And of working on projects a unveil, to Josh, in $XXX recurring. think you here? right mentioned out know -- going the June. about. of months growth in on that maybe thinking you you're or as think be do scope to this now next big there in But maybe could million a one just to isn't type about I about or hear the we want projects you

Keith Smith

Keith. is this Brandt,

is right, call. today. leave -- our that unveil no next for I We'll think we're you're big probably there

pipeline have of design embark but the and teasing out prepared phases, the this getting about near We and to or Many a potential of but them. are have talk budgets any projects prepared nothing yet. a today, projects them them there's very and ready in for to of But that But not several to describe finalizing we're we be them future. still on, -- in we'll time still pipeline of them frames potential that. planning

Brandt Montour

it -- maybe and I guidance. thanks sort us that? Sky scope for updated shot. give could over timing for expansion And results sense at can River, great The about that, And of the of you what think Okay. a so then give we far. there a of obviously,

Keith Smith

terms the tables general hotel, going is in again, not to announce on and adding of at or meeting point. Look, will else expanding slots regulatory a announced. number where of scope, their the kind Timing, casino including Tribe There's the we're waiting the anything to few point It's convention number We're the be scope. exact has approvals, behalf the additional once space, restaurants regulatory probably a this not from or final of for approval. NIGC. of

those. awaiting for those near certainly think for Once before wait but all in we of further. go we we're is is which groundbreaking, term, the so approvals, ready approvals And very hope final I have can the the we any to all we get Tribe

Operator

question of next Our comes Mizuho. Chaiken from Ben

Benjamin Chaiken

well? Just airfare as would to The of that broader Hawaiian demand also one days and very reference of improving. kind a the Or visitation last did like XX comment Fremont the quick clarification encompass that -- kind in visitation? that also the about Downtown. Was

Keith Smith

have into. good a But it was weekly obviously the on Hawaiian basis We specific really to visibility have we Downtown. which business, very, traffic. very the to to don't specific so was Hawaiian It visibility overall great counts more

Benjamin Chaiken

a any Understood. couple expect customer thinking opening you disruption the same you're Is this And how about we then as from next any standpoint then return that else? on -- to demand both that should And or and months? expect development someone timing? for transitions of Treasure over the color on Chest,

Keith Smith

a of X-story more to just think and much an amenities levy land-based to way convenient much on -- it and overall to facility the is think significantly water side this and food environment. better -- moving the enhanced and beverage from I more about parking is many So a riverboat the and dry

we property, EBITDAR on EBITDAR. both revenue a So the and expect uplift overall good from that

We expect on return investment there. to get good our a

it yes, We're it will obviously this. market confident that did Overall, yes, it. a studying time the And spent will all can that but we more casino larger existing grow spread we there not is floors. is, build efficient and We It's the is why today, of it business. X It X customer. That's than on a customer. because be floor lot it's floor. not the be over new

like So as going we're it's to many slots. Xx have not

because have a similar of of number matter it's efficient X same table fact, more be all floor, slots. a with As we'll on They'll just games.

for We'll more attractive of assets, more of minor. be customers. Louisiana have likely authorities will days we're in while a a will the regulatory much inviting more this significantly that disruption, much of and requirements draw being they'll outside some we in shut to on it assets, disruption. any But and be maybe of police. likely transition confident terms would it midweek, And shut We'll items. to and be based state have I couple not days, few But anticipate for will

Operator

from Citizens comes JMP. question Jordan of next Our Bender

Jordan Bender

to of your cadence touch want EBITDA. on I Online the

about the FanDuel. of for outlook $X the So was of the a kind of rest on I you're the guidance maybe a million how of year out I flattish segment onetime the the up unpack your thinking about in the remainder think that the EBITDA for backing implies year, or guess prior And item so quarter. outlook. be But call it growth of for the might year? you can in

Josh Hirsberg

Yes.

been since $XX our of we that the in I some that million been $XX we nature. of of were that year this we know pretty QX, we last and million. we're things pretty there skins the numbers we've think of -- from of consistent -- -- sold expect items in And obviously, onetime we've well, to have that kind some range

quarter continue is We're the up. and the when out seasonal. in toward to to $XX of of range. year, And guess year hit look the football best Obviously, business so a we can $XX better. if very end I million growth this there's get the do the the season we'll back starts in actually there's we of potential another million

then and is to everything modest, So be between now going we expect. more

bit today sit just we of it it's we'll that factoring where fourth not. or if -- a more and kind and of in I we'll better we out. the quarter, to of onetime where But from that's have as think last know going growth, items the building be to So to plays occurred some year little get

our view. at we best the do can that's right So now, least

Jordan Bender

the customer South the positive within in to your year? Midwest that I in either last or saw segment, back guess, there then to from is more what & South, any And we change of negative half Understood. the

Josh Hirsberg

through, about we've saw would moved perform softer in region. of I than all and same of the year the this part the kind similarly would year, customer really. QX customer region happening XXXX retail. we the when the headed say you're in of all the what's the is last core late of as Not line, to the trends say regardless started I in whether rest talking of more and that & of that's region has direction, QX of or are the in Midwest South or in the

Operator

Our next question comes from of Joe SIG. Stauff

Joseph Stauff

back Las Vegas Locals. more one on Just

it know in to level be the be not specifically the going compete the level, to reinvestment, term? competition of any whether competition you the new think especially Just but or for curious and/or larger projects way portfolio about in the I that you're the to that past going more at on -- to the if a it not years changed capital whether capital in has see couple longer on And over response the think the of all growth need promotional you say reinvestment? required you're outlook, you even market, in your

Keith Smith

whether program We have as of beverage highly we capital our of on business, Vegas. operate local Yes. the in upgrading Vegas Las everywhere hotel markets, country. in frankly, Look, think very food rooms it's we or and that a Las our of and amenities across in upgrading of a competitive form operate of it's here maintenance. We going outside it's terms the many

see and on offerings beverage food want So to different to refresh those, customers we frequent and basis. new a need continually

ensure so our And core come our to required defensive. focus of to we continue on and to maintain They're visit our are just core these really our level customers, going to, customers back us. not business maintain to think,

particular. And to anything so response in in it's not

years, X old. we the every of going in that opened it's was and Coast, XXXX work that have Some have Sun now only you property things. And years refresh to the on at XX therefore,

what so doing. process the we're that's in of And

Operator

Our from DeCree John comes of question final CBRE.

John DeCree

Make it quick.

want promotional sure but You if not missed you I already, talk on environment but Midwest or commentary We about have had promotional the Locals, color any if it it. to in may on touched competitive front promotional on segment, environment? And or in any would then specific maybe the competitive you South there's or behavior change broadly if & areas different any where be see helpful?

Keith Smith

changes But of quarter. John, We're our I & in crazy Midwest a all and a significant promotional nothing question Nobody sudden fairly back stable. reflect for no, any stepping stepping to just real It's South quickly, as on is moment of in anything no being a operating environment. all your markets the just out last doing thinking. from report. ultra-aggressive and

they've standpoint. the markets have environment over any we've There's spend aggressiveness like got our promotional more quarters, no talked some disciplined. they've of or and Once Nevada our promotional us, several as Others disciplined remained of the material more stayed changes outside remained again, and ago, years in of from aggressive. really aggressive of competitors

Operator

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

Josh Hirsberg

Thanks, David. Thanks today. to everyone for joining call the

of your you we'll If and to any a rest out the make have free company and available. have feel ourselves to questions, follow-up reach you again, good Thank day.

Operator

today's concludes call. Thanks, Josh. This

may You disconnect. now

Boyd Gaming (BYD) 25 Apr 242024 Q1 Earnings call transcript