BYD - Earnings call transcript Q4 2024 | Boyd Gaming Corporation

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David Strow

Good afternoon, and welcome to the Boyd Gaming Fourth Quarter and Full Year 2024 Earnings 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 we are hosting on Thursday, February 6, 2025. [Operator Instructions]. Speakers for today's call are Keith Smith, President and Chief Executive Officer; and Josh Hirsberg, Executive Vice President and Chief Financial Officer.

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

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

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

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

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

Keith Smith

marked as recent model, year afternoon, performance. Thanks, successful for $X.X another We Good all generated investments property operating company our strong continued to over contributed everyone. full David. in a year business diversified efficiencies XXXX billion our and property-level company's revenues margins These a year setting a maintaining we over performance. and company-wide of high of continued our ability XXXX, of nearly to billion results level while record, demonstrate EBITDA XX%. $X.X in achieved full operating deliver

Quarterly to the Looking specifically, nearly quarters. performance the we surpassed results solid with while achieved billion at EBITDAR have first quarter the mark consistent $XXX time, increased fourth several revenues the was for $X over last our million. the

investments, notably efficient diversified our was like a driven quarter from treasure results our most year chest. property contributions and much that performance, Fourth recent operations portfolio, our full by

our property to core customers. in segments, retail operating from from trends stable see our our strength in continue play throughout Importantly, customers and play we

Locals Now detail. segment with let's segment. our Las in results Starting review Vegas more

we despite in market. XXXX quarter, ongoing best year-over-year delivered the fourth the pressures competitive During our performance of

customers XX%. Locals Vegas grow better the Coast, market, continue our operating the property potential, ongoing Excluding solid same-store the new improved. our a and properties beginning enhance performance to core play its this addition market Las as and segment to quarter, than exceed is And perform to competitor retail our show continue Orleans posted while Gold [indiscernible] to of customers to in from the despite continue project the the during in across late XXXX. our a margins Suncoast

Downtown the Next, our Las we quarter. strong during fourth delivered another performance in segment Vegas

long-term at properties providing Our our growth. foundation recent Downtown are for enhancements a us solid

segment, our healthy, remains with from steady. customers consistent our in players. customer to play while throughout Las consistency been play downtown from traffic pedestrian recent were area retail Locals overall has with trends the quarters our Hawaiian Visitation core Vegas Similar growth among in and our customers

fourth Looking fundamentals increased at population broadly, Nevada months Local income, economy growth local outpacing sectors. personal the employment, rate. recent remains employment of major wages weekly the employment the and market grown the across consecutive activity. X% Average quarter, for Southern with has XX most with nearly increases now during in strong more gains tourism-related national

XXXX. nearly X.X more Total year. healthy million to visitation remains homebuilding the population to to over Vegas residents Nevada's million surpassed continues permits XX the X% visitors increasing Southern growth has growing XX% prior show year prior over Las with and than in

another XX includes growth X%, this end the year. record quarter passengers million And first which international markets. is of expected to By continues increase last to levels, by continued airport airline the capacity exceeding from traffic year, achieve

enter $X.X all, billion XXXX. Nevada the currently strength in as confident Finally, with economy of under throughout residential Southern and Nevada robust In projects construction. long-term in commercial construction Southern activity remain we than we remains the notable more

another achieved quarter Aside results of segment Nevada, Treasure led casino. of and by continued at strong growth, our Chest Midwest South

consistently track our Our June at ahead expectations since Chest opening remains and of exceed in has targeted to performed EBITDA new Treasure on facility return.

we customers and consistent with While of retail Treasure this slightly grew operations. were adjusting grow pleased basis, EBITDAR stable, while our consistent play Chest from also was revenue a XX%. XXXX, And basis, segment both same-store benefits our for while same-store the year-over-year performance recent with quarter same-store remained play a strongest customer margins performer the the After in in certain on on at remains total to onetime core of quarters. fourth continue

quarter for segment market $XX FanDuel million Next, once with This online generated full gaming performance, time growth contributions to in our on access online online agreements, after as contributed segment again fourth as our well continued year $XX fees. from EBITDAR performance a the our million our from primarily business. strong With reflects growth. nascent company-wide excluding

FanDuel online leading also is as the we of position Across strengthening its interest the from our Beyond financial equity America's contributions significant equity further gaming enhancing online considerable have value in FanDuel. segment, our our value country, X% the company, stake. in

quarter with our out another managed closed business of Finally, growth. solid XXXX

fully day an begin the first construction expansion, in spa entertainment expansion and first to year, generated Work parking by expansion, strengthening very Casino. Sky of level, X from property. at in now Northern entertainment XXX-room its Sky and For perform River River of business quarter further million X a the XXXX, will and slots garage include property. phase fees this this on and California's leading gaming that in will Sky growth, destinations. The of outlets, high $XX food the the continues which expansion a will long-term of complete River management significant full reputation additional XXX mainly as work for of hotel, completion will position continued has Upon EBITDAR, underway center. which the second of one phase is phase mid-XXXX, this to Once event driven a beverage add X,XXX-space a a on on begun

demonstrated performance. example And on and of of our level portfolio. building a all, are success is nationwide as these track our to our the renovation hotel of investments our program product. of record fourth in of we in continue our results investing An deliver both continued our So ongoing high full room we ability year quarter company's

begun the hotel completed which of renovations Orleans, and room across inventory for renovations, we the We country. have hotel rooms next recently and Forge, nearly at our recently X/X combined have other by of hotel year. account IP refreshed XX% our Valley When hotel will updated nearly with

book, experience steakhouse properties. also is in XXXX. are customer and room example the of we sports Suncoast We where throughout An the new enhancing opened high-limit premium a this our

results our several last drive well over solid been the customers, All helping at of Suncoast these new by amenities have quarters. received

the at of is and are meeting and floor, complete a enhancements unveiled the to new on by XXXX. the of a track the Next come Suncoast to the all hall section property expansion complete of food earlier an space. We properties first Suncoast renovation early casino today casino renovation

addition Ameristar close rated properties, center. model. part in of In the we on a hotel, Louis sees Ameristar investments our than making the business strategic accommodate. At Airport, to Charles, Ameristar's enhancing more to are meeting expansion our we progress amenities currently With pursue existing X-diamond of a business can proximity is demand portfolio. it convention core continue extensive St. St. and its and and convention to meeting property's growth that

team expanded business current With is having our deliver is demand space, its to for booking completed center, property once positioning Ameristar great the already strong success our future this fall. convention results expansion exceeding the

nearby replace us will Crossing will in our growth. existing of on fastest-growing Next, capitalize Nevada, casino development to open mid-XXXX. plan This master position Wild Cadence in to the development experience. modern and of the Cadence Las Valley, Southern The schedule is Casino neighborhoods we in with community a remain Vegas entertainment on Joker's this one casino the

to as amenities. will slots several community property and XX,XXX begin a grow casino full Crossing Cadence as it hotel, grow additional of plans build-out Cadence with smaller homes, with a Cadence towards will space its But and more for the restaurants. Crossing with continues XXX

investments we property work And continues on plans next development as projects, for our these growth in the pipeline. have

in Illinois, XX-year-old we Central be replacing a with our will destination. where casino Par-A-Dice projects these entertainment anticipate of with compelling new One riverboat

in half as approvals. early early still the process, design as could first construction is XXXX regulatory begin it pending the of While we

that solid growth our and on return by visitation driving We its investment following project are in incremental a completion. this Par-A-Dice will deliver business confident volumes at

will in investments the ongoing in further Norfolk, in This million to also largest shortly. Mid-Atlantic investing our our by our diversify markets in the portfolio is of existing expanding $XXX addition properties, begin expand one to portfolio project resort our our construction set to In region. presence gaming underserved we're Virginia, development with where

casino and November. growth key will square outdoor Norfolk company. modest attract in slots our driver to experience ability XXXX XX city a in which resort the for serving to with XXX-room games, confident both casino throughout in resort open live create completion will amenity X,XXX as XX,XXX a are a and table the is beverage from X Part we and plan a a and deck. hotel, this late region, customers that food foot We scheduled entertainment for our The outlets, project, of transitional include this of market-leading a Norfolk

activity in investments return quarter, these $XXX shareholders. XXXX to for opportunities, investing the our growth are fourth $XXX the capital our are to total we our form these And bringing also to stock, while repurchased all, repurchase in of continuing In foundation strategic million growth. we million. In future we

repurchased we been While last over quarters, targeted level shares this several our purely has than opportunistic. more have of the

committed supplemented to ahead ongoing quarter $XXX to repurchase in our Looking by XXXX, we million per dividend program. activity, remain

growth sheet. opportunities giving strong total balanced approximately successful capital to of approach approach capital In ended to and to allocation. leverage XXXX with a our shareholders, addition capital maintaining balance returning strong in investing a allocation us to foundation to X.Xx, includes our We continue our

we built the foundation we're strong performance company, look we XXXX, with back So have of as future. pleased the our on for

our We free cash consistent substantial generate business to flow our and model through diversified performance. operating continue

these investments are balance $XXX property XXXX our long-term successfully our delivering program, the in return capital growth, while ongoing with nearly us returns are we for returning history. and investments in strongest capital to shareholders in our sheet maintaining balancing Our solid and company's million positioning

and Bill for Vegas, California turn January XXXX. in a in of opened a Sam the largest historic United long Boyd and way then, from to continue while in this guide and we before grown States. to our than respected Boyd is much integrity I the our Their making the companies year over Gaming's it We've in us and are take we a Josh, to their and Downtown XXXX, it difference different company. commitment Hotel was the a one a our And Bill today X principles this vision Finally, members I our and that business. wanted to has single in commitment communities moment gaming as Since and milestone forward to property company. Casino day. to to and Sam most celebrated XXth our year, company a team since carry positive for of company probably of come Las recognize growth,

decades have unique. success without our not X been team their experience work Our is dedication would makes hard to for of memorable guests these possible our members, Boyd throughout service past the what the delivering

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

Josh Hirsberg

EBITDAR finished The property Thank billion exceeding a to company. margins level year We in $X.X annual the you, generating fourth conclusion nearly XXXX, for very quarter Keith. represented XX%. our good with

XXXX full in we are our in additional diversified outlook. In nonrecurring our and results that segment. EBITDAR result generates capital cash million Online our commentary $XX business segment, year deploying quarter market performance, XXXX and shareholders. I'll Beginning fees. on our our the portfolio access return million on year comments full this now our our a provide of and we of significant including provide XXXX, generated for As $XXX reinvest with significant in fourth flow to to free

For XXXX, from million the in million approximately to of generate to XXXX. to $XX which $XX our expect run million $XX segment, compares EBITDAR Online we rate

share our Interactive. from revenue contributions includes in agreements Boyd segment This

year for This quarter reported $XX as amounts of XXXX. and our compares expenses online for and and in pass-through full million $XXX for million to fourth tax full in of $XXX XXXX year the the were $XXX the reference, segment million million revenues fourth the XXXX. the quarter For

fees driven Managed for River full our Casino. earn $XX primarily business, we Sky we the year XXXX, generated Wilton In from management million Rancheria of by the

to expect of other managed EBITDAR amount a in We from and our XXXX generate businesses. similar

we invested expenditures, total spend the In terms during capital quarter, of capital $XXX million bringing of capital in XXXX $XXX million. fourth

project growth investment to room recurring in XXXX, capital property our Virginia. plans For our capital, include incremental capital maintenance starting maintenance our initiative, development and investments refurbishment hotel related

In terms year. of each we be million categories, per our estimate approximately capital capital spend of these $XXX maintenance recurring to

this an Valley hotel spend additional approximately Orleans. room maintenance year to capital and related We IP, refurbishments of amount the $XXX of Forge at million will

complete to initiative hotel upgrade scheduled is rooms our in Our to be mid-XXXX.

investments, In the Crossing expansion million property at recurring our includes fall Vegas amount to approximately the is Cadence mid-XXXX. this in complete Charles, $XXX in we terms of be expect invest Las of XXXX, investments growth each the to in St. In expected development Ameristar to And open which convention here in XXXX. year. scheduled

permanent As is to we these of project of potentially facility November work at on projects spending replacing development million resort is of expect riverboat come to XX-year-old on the with Par-A-Dice. And this of our the capital the XXXX. track $XXX estimated including we the casino estimated permanent to temporary finally, and facilities next to this million while in The is to open are million. in conclusion, begin temporary in to $XXX resort our projects, round scheduled investment beginning open in to total The year, XXXX. in late development $XXX be related Virginia,

of XXXX, plans $XXX $XXX resulting growth for estimate for XXXX related property million $XXX to and to capital an summarize $XXX million approximately additional of maintenance million we Virginia, CapEx million. $XXX our To for capital total million in and

to we in we of paid nearly returning X.X shareholders XXXX, When with shares. addition to more combined acquiring share, to In $X.XX returned a than during per million million dividend with share. quarterly stock these repurchases per Also million $XX.XX the of remain during the per our during quarter, share we quarter. at committed our $XXX our share capital We fourth price $XXX repurchased average to shareholders. investments, program, $X an our or dividend

was year-end count and shares had billion reducing million current by October in to that share remaining shares. share time repurchase $XXX shareholders outstanding XX.X under of of authorization, than nearly XXXX, As $X.X year-end XXXX, dividends, actual we in and over we form the period. million capital more number our the returned XX% repurchases Since of at our our have

of quarter X.Xx lease-adjusted total We of and about ended X.Xx. leverage with about the leverage

position and supported free flow by We maturities, our portfolio borrowing ample our in under continuing near-term in have financial our strong capacity diversified strongest no cash history. agreement, to assets place a credit company of the

second stability the our anniversary expect Gold in Locals our Coast Las we and year to the Vegas Transitioning half outlook we XXXX to segment, will competition. the of as Orleans during return fully

with performance overall We expect other properties market, the in our local segment to during expect segment, year incremental in X perform In slightly we consistent in better XXXX. Treasure Chest an locals benefit Midwest XXXX downtown June In of than Vegas, market. Downtown these the South the we which growth from expansion of the properties. the of Las our with expect to line and opened months

results For similar we remaining expect segment, this in to the properties XXXX.

conditions the first by throughout of has weather poor XXXX. first the worth similar it impacted quarter January, noting For segment this quarter, is been to

success us growth. the investments and our segments, like to Fremont expected of our for with strengthen future three performance continues of pipeline for our continued Treasure these the Chest, and EBITDAR investments position Beyond

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

David Strow

Josh. you, Thank

We begin Steve First session. question-and-answer will Stifel. [Operator now of our from question Instructions] comes Wieczynski

Steven Wieczynski

about around if in formal us us thinking business. giving help from certain core Josh, retail help again, parts 'XX. you understand your for -- just of your customers guidance given you're your versus And your company, high-level around a you without have maybe So certain maybe high customers some full guidance us, how of the level, wondering parts could

how assume I is trying stability going but you're segments. those say, Just question -- to that And I both to understand would about you're thinking ask what I of anyway? just wanted to guess,

Josh Hirsberg

Yes.

I'll So take thanks, at Steve. a shot it.

really I think very growing. seen our been -- really core is what consistently we've customer has

And sector customer so to would we to grow. that expect continue

Las terms year, year-over-year outside largely of not longer. terms of outside Vegas retail, a and the probably have two for around divide Las in one in markets bouncing would been for Vegas one in Vegas. of stable, our customer us I better the of flat that parts In The if meaning retail really part Las growth business: into of customer of

convert probably So hasn't of point, to think reflective although to the facing we're the of business this really I positive poised part at or more some economic segment. issues juncture. And that it for customer at pivot that's broader that

of of In terms sequentially. from XXXX, less a bad call stabilizing is year-over-year of kind stabilizing what or Las impact what retail recovering Vegas, throughout meaning customer, would we've I the seen performance or getting

I getting stability, the look don't think the bad maybe in we to And to second move we So kind the as in still more of XXXX. expect year competition. start to year-over-year, start of once declines we in reach less sequentially be will really through down segment XXXX, as see think us a are we half through anniversary the to little growth fully I we bit that would XXXX.

sure Our in for half, a of bit be but second the are out there that I'm not. if things not get or would on depend opportunity will year little control. this our It we'll that best

Keith, that? I you there's to to don't know add if want anything

Keith Smith

core where think at summarizes retail. No, I that with fairly we're and

Steven Wieczynski

flow-through a terms And then towards corporate headwinds encounter you're more that's But on apologize. in year the then of you margin helpful would about might that real how or well? And Josh, to be thinking as as starting housekeeping for in quick, of expense guidance, the little the Yes, a and you're second tailwinds front be us well? better thinking question understanding commentary. about dig a some how I again, trying in help maybe bit of 'XX to think question, about maybe or maybe perfect

Josh Hirsberg

shot a this. take I'll at So

expense seen nothing what expense kind years. look, the last of I continue perspective, several pressures, and of think like to margins, terms we've see over from an flow-through In but

So of while the I moderating would still stick challenging. a with expenses bit theme

perspective. I growth start what need change think retail direction trend through. seeing think favorable But any our to really we to in expense primarily I effectively think environment, revenue overall, our we customer manage across a spend enhance And flow is get spoke of about a we things that's in at an our our can I period to from really segment of margins continue better of kind significant that applies from And to fairly kind absent this we're that where behavior. time portfolio. that in

Keith Smith

we've if you you that's consistent apps XXXX, seen through exceeding [ able manage about are some the about And and think fairly the Orleans what to at should XX% think and XX%. recently, margins in expenses Gold margins being consistent think ] and as the most moderating, of said, I Coast again, LVL and Josh we're MSR it.

should think think about consistency. about we XXXX, So

Josh Hirsberg

I at our overall, And COVID. level they've margins, above you consistently if since XX%, look Yes. property think really been

while challenges performance we'd So managing we very after think that all the some this we've have level hopefully maintain. I margins through manage able be would can healthy deliver think been built maintaining consistently. confidence people years we've of of to and skeptical were I that that X And

a XXXX, You We build have asked kind kind X.X% about think larger corporate corporate about corporate some X% of of do expense. making would expense. in we're hit And onetime donations to item XXXX, I that will in a where growth expense. for I in

is $XX think about And year so good this for a million. number I

David Strow

Truist Barry Jonas Securities. with Next from question comes

Barry Jonas

expectations when was Online of one-timers. even the factoring our ahead

through an guys you quarter flow at Or of Just of just curious, growth hold enough NFL all? poor in did to other offset? the elements the

Keith Smith

were growth our the NFL the as At I yes. lower that same hold market And the we but good our is and growth growing business yes, during time, well the in online growth some good from online answer by agreements as small, to we business. from space access that saw in season. the certainly impacted think gaming

Barry Jonas

legislative as just a the then activity lots front. of Keith, And there's Understood. follow-up, days these on

and perspective? As opportunities see curious do discussing from Boyd's maybe gaming, greatest you states look risk where the you at

Keith Smith

It's lots across most hard really season. them as paying look to There's a bills all of these attention. Look, in gaming of early you and monitoring We're there. sessions. landscape, into Yes. judge the month it's out the of

session hasn't Louisiana like gone places Some into yet.

We've lot And of early. monitoring so through them. we're for It's been a years. this

have And so we'll comments that. other But beyond don't happens. I what just have really to any see

David Strow

Our Carlo Bank. next of question Deutsche comes from Santarelli

Carlo Santarelli

around kind basis. of net specifically at GGR Josh, you bit year last about in fourth the around through from bit of see did look from comments and then Am last of months, better same-store it though the I to you quarter your year-over-year your a a willingness kind obviously, kind improving that's And of were your in right? And line portfolio I 'XX? a few EBITDA about Keith's regional guess, revenue a talked an But least for of then, bouncing what about showed little hindering certainly kind is what taking did. a on there that we XXXX, sounded same-store flattish commentary little perspective, interpreting trajectory. as maybe the talk same-store insinuating trend anything kind secondly,

Josh Hirsberg

Yes.

your correct. So is interpretation I think

benefit to you we last those with we think was better who of had than a than performance QX, throughout -- the comparison we we year. a and thought also in then be that we for remember follow had little quite the had of benefits expected. out had little honestly, all Treasure onetime bit better a didn't bit we going we the year QX Chest this I get think that we of to expected I And performance and along, challenging what portfolio, of

enough cautious the I don't of given seen earlier I strength of segment. my that in to have think, a remain to we sustainable contribute say growing think pivoted segment, to kind we've comments retail they because primarily

if more, just in consistent to will consistency at of growth trying that but sense. not point. more customer We're how that's Now in not maybe to, their that play we're what trends makes think the that's to I'm this seeing seeing happen, pivoting

from get bit we the a of what the hesitation Midwest excited and little to that's kind about South. expected was what better quarter So maybe than

Keith Smith

There's entire natural year on. about lot there's limit But this too go on of the point. Carlo, it jumps at go a hesitation We of I a year. that it's can says think our out far predict something you to that a significantly overall go that greater. be should think you will think things better just Look, nothing

Josh Hirsberg

remind and very And Carlo, South of just been question, your to this with want know but in people isn't so I similar has January related I far last January Midwest to the the weather. to year

not just So, question, to that. but that forget that's answer I'm an saying don't your

Carlo Santarelli

has Understood. any stepped at asset room the kind have about, to pipeline, M&A a have a but more clearly, -- context kind you of And if always do I and follow-up. does do you the least of X activity. of do portfolios within might you been with guys other that I up spending -- the that on returns capital the the of refrain when or guys getting of over potentially that a projects CapEx and be where you million just you relative you the remodels, quarter, kind Obviously, at, company? looking buyback the you're aggressive frame think later. Where guys could, started spending to development talked at the last with coupled of acquisitions, $XXX you're quarters of that elements the million certainly might steady outside $XXX the Cadence buyback on gotten million, something Illinois Virginia how kind that that $XXX you very the quarter, And the your

Josh Hirsberg

Yes.

like projects evaluation instance, they we the have shareholders. recurring based If for that investing of more we're Chest, that alternatives we an the some of of the wouldn't in pursuing them. growth will generate. capital part of we strictly in or property it's We'd returning returns as Treasure think be didn't be on to front have that us investments, the good doing I So the projects

a it's of really can returns. best we where balance So the get

And of we plenty we of projects have pipeline we've to projects from. a -- that choose mentioned before, have

shares. It to or have it against either opportunity, be portfolio ones to then manner be superior same shares. compelling that if to That's choose acquisition, We that it Weigh back or another in it in it. doing relative in do generate to evaluated returns. whether will the And that be to best have our why try context. investing opportunity we repurchasing development greenfield continue the we're will a just will buying the

David Strow

Jordan Next question from JMP. Citizens Bender comes of

Jordan Bender

has about the the market been the hear to been a with the market. the true Good in little to new bit what tougher in competition. outperformance locals growth all It's decipher local

without kind into what guidance, us exit with help specific to market? looks out would you like? XQ can contribute you getting guys, And versus you're of of actually outperformance that calling maybe more you overall the rate So that the kind what

Keith Smith

could there, cut if question, If out you for X second you reask your I apologize.

Jordan Bender

the guess I true Yes. the all been underlying it's tougher has what competition. to the a market decipher been with bit little of just growth local

to you what contribute the you I then guess, rate specific can market, with guys, of kind So new just would you of too? versus us help what locals market into more outperformance your the the exit is outlook for year? And the

Keith Smith

and here think the good refreshed Las in market The has outperformance of operation. fairly a what I we performance good think I our in terms and we've remained own very our versus same-store just some in disciplined stable, environment promotional programs of overall on marketing kind it's and combination of having call product, remained a that -- front. look, Vegas XXXX,

As we group continued amongst that growth in core remarks, stability, growth some the about, customers. prepared talked from and Josh from we've steady and retail seen good customers our our talked about as

that tough predict. you you how Is about it new competitor revenue XXXX, Probably of exit generated of terms depending kind in basis throughout on it's were much new if kind low to were competitor estimate growth the rate market. you where or think on of the as the LVL, a the of annual XXXX, your digits? out of -- of to In single quarterly the to subtract --

single-digit market of as low that I think a range. growing be what at looking kind you'd in

So think continues that into I XXXX.

Jordan Bender

of And move you to the any sense cost follow-up, what Helpful. guys? on the Par-A-Dice land would

Keith Smith

similar. we million we're the not smaller. It's No, probably in -- Chest, Treasure it's or I which design something mean, about in you range, $XXX quoted the larger think phase. still significantly it's

David Strow

David Our next Jefferies. Katz comes of question from

David Katz

to also the Congrats on companies, the of I thing. wanted Because right? M&A back quarter. know allocation companies, pervasive your about capital properties, to go had larger it's conversations on we've smaller Look, I some side, a

so tolerance, how owned about and opco, on leverage And is take operated, really you a think and do the follow-up versus little insight propco there. risk

Keith Smith

opportunity our We we -- I have on think what to over today's to to this the years. world, prefer changed most as opco. holdco much views the But opco. purchase opposed have in don't buy certainly of our

us an discourage again, doesn't at because structure. Once buy it's in it asset holdco. preference dissuade looking that from or So to

leverage. talked about this terms in the In past. of We've

our We i.e., level leverage we profile, to. return to we wanted with are float can an leverage that it as a up to acquisition long to for return as see allowing flexible

as a we float that say I to as comes long over then discipline quickly, years, delever we've leverage M&A up. we're would good letting see a the okay with way can So it acquisitions. or developed back once again, And to when

don't different today asset. be, to good And got in it's that's than of all, look, quite I think be several the years. strategic got be a last, been It's a developed it's to facts high-quality it's the the expertise. And right over to I of first assets, not we've a fit set got of an kind market. right-sized know,

about we think So that's M&A, about leverage, holdco. think about opco/propco think versus when we -- we

about several we how consistent it's it. last that's but years, the over I think think

David Strow

Montour Brendt Barclays. of question comes next from Our

Brandt Montour

I being to encouraging regions weather, lift see postelection back incremental visit with we if look sort mean was that foot of wanted the at South bit weren't many and I by that demand And called Midwest you the seen per at of or affected anything circle across there sort So all. Any was question. demands little trends out of just have you sectors, anything encouraging? a better. our consumers spend being or other excess traffic -- sort of that did on

Keith Smith

out and the coming pre-election, come it's think to discern business. is kind phenomena? most what in a pre-election? I the more look was I a said it from market our post-election, to we've and at. on the in revenue stronger yes, Is this always consumer was, for hard Yes, little less fourth pre-election quarter. of they the motivating what Look, Were markets depending it's stronger always But and the it less it Was out and came the out it think post-election standpoint, you in part, they maybe board? in of, -- a past, across participate post-election growth frequently was them kind

feel year? in matter maybe in quarter. materially. earlier quarter Is consumers be in But the that little a are a through to discern. not seasonality, in but higher feeling little to hard fourth a matter the paychecks than know, facts Is the always sort the consumer our that could that. bit I clearly, election? that of of third a Is matter markets more growth a the But than of does like today don't they did hard it the bit, better little It feels a better?

Josh Hirsberg

it with is enough I trying say. and what it, take to guess, Not run we're to

Brandt Montour

project, sort the of just when what took and just Par-A-Dice on qualifying boat ton in had a with land. built-in area of its which taking the that. the of Chest, A out from were really friction dunk, I a you about to a you costs, there -- and And to That's of sort guys. think market a that into Treasury you Treasure of aspects digging have sort I comparing But it appreciate it project. was build when you did helpful, slam Chest, is follow-up the were

market will of in similar factor a we think I'm when you then if if get immediate that And other there's natural this there's about just project of comparable IRR? factors curious that that we consider sort sort should a in lift?

Keith Smith

it different. Generally projects. development Par-A-Dice are are or encourage VGTs dynamics in of market The New we're separate chest, The area. surrounding the for I'd two completely treasure Orleans is to you significantly of different. in VLTs the Par-A-Dice level it with than Illinois the to is completely the or greater all at project where completely Kenner The comparing costs outside the in populations areas competition the

so build be of will costs, outside And the different. all dynamics

riverboat non-riverboat But dynamics yes, than operation Will completely operation, will was save to going money from absolutely. we as friction be there a different. the that a other

a the Chest. to were clear of think just be surprised we level I Treasure all about pickup

project. didn't a have to expect free great be revenues revenues or double expected return. of We up We XX% kind to

Par-A-Dice been that's a think home I would a I So and run, development. that not into factor

David Strow

Fargo. Politzer Dan comes question of Wells Next from

Daniel Politzer

local of reducing standpoint? it think if South It they to payments. one, The this perhaps be is incremental seems First your Midwest around cost propose numbers tips social really revenue could it play can relate right current and business, some the this from would like you but but well. and taxes and sweet you pay impact on the centric, administration, a it any to as or or your eliminating recently, put security more spot, a might either into overtime

Keith Smith

obvious, whether on it that anyways, depends but the are and consumer, income. taxes gets if largely Look, once guardrails the here are deal exact and in a throughout any shape bill -- look, it locals passed. Clearly, healthier, are or parameters bill lower what what will which their it Vegas obviously, but Las of on It the any I'll statement again, takes local of be or there business. all is it's of support to we say the our is specifics country

will today. the will of translate know to on many yes. Is couldn't because in business begin but to like, it that we XX it X depends from dollars? as I terms XX it. What tell to the you. benefit don't incremental about How actually dollars? looks bill millions business to all does be to We think that it of what XX,

Daniel Politzer

you've it's and it CapEx year-end, EBITDAR something X.Xx, Got going I worth think, pivoting it's And then asking. from, back laid the it. I balance sounds just net like get you sheet, it's expectations. to be out up the of Yes. kind early, given to said leverage, about the still just

buying opportunities there through I maybe that you currency performing guess maybe has your M&A leverage think transaction? scenario consider an growth Were well. and is to to stock threshold a back using a think stock with target which you organic that, along clearly, and about, as been about is versus where in there a M&A, a your as stock

Keith Smith

not transaction, currency, very of specific. as in an comment how we all used Yes. it. our I won't Look, all would have equity fact very and it's but historically fund on M&A it's We fact-specific terms

allow leverage, accommodative standpoint to very would for In said the bit a be of profile earlier I leverage we right leverage up. acquisition terms go to from that a

as it we could as That So remains coming see true. long down in the future.

in terms asset we we we're about disciplined the in find It's and it internal approach looking look the likely try fairly investing from and right balanced at very that. We earlier grow all. right in allocate at it it's look at And trying to but about look talked the Josh we're our investments, to going allocation. opportunity, and the it get any It's one in foundation to allocating share we board execute, or thing a balance terms across Look, so have continue to M&A find not of and assets, this talk to we capital strong and one we any from. and that return place. we to returns we M&A, of buybacks from at

So -- it's do the best can it. I

add. to want you if Josh,

Josh Hirsberg

said mentioned is I I We want is add, and didn't current X.Xx. it that about The that leverage I Yes, say only lease-adjusted today to clear. going thing leverage be today was referenced was you the was Dan, just lease-adjusted leverage. X.Xx. X.Xx X.Xx you to going to

David Strow

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

Shaun Kelley

a ones. of and answered, couple small Josh asked my or have been but Keith, questions most of

all, help bit just color with Obviously, of and But of if out scope could First on facility could. on more us project timing. you a that in the scale there temp terms maybe should with any start Norfolk, of position size around ramp-up we you'll just just what there. about given plans how And kind or of marketing, just it. also count the of or think we

Keith Smith

Yes.

It's I pretty simple. it. think actually about So here's how

project within cost will should million And November It you a or assume negative. a is built $XXX this should So assume you be be small EBITDAR it's timing overall is cost. facility, might financial and It incremental standpoint slightly the return might of it the positive, be just modest year. slightly The of standpoint, zero. from breakeven.

should assume breakeven. You

Josh Hirsberg

focused the why project. it's We're building basically to same ultimate at on going that's to the small be time, start with. And

Shaun Kelley

a for what on maybe is doing like the was be push I or development to it something if mean just something? that Or then point get a open operating agreement contribution as and of -- part moment requirement to the sorry, would zero? the a of

Keith Smith

Yes.

a facility the temporary overall development transitional we'll be of part facility. agreement, As or opening a

Shaun Kelley

as perhaps any impact. obviously Have to Treasury off improvement some was a access up anything? New started look as at a the Okay. but been obviously, spillover, opened that levels little there would That's seen cooled incremental Have success, follow-up impressed stabilize? big as or has the and Orleans in asset state some the all? the reported I of bit that by observationally But And change as has little -- you'd be been Chest helpful. then mean you second seeing of property just run back some got behavior going particularly we've there see of you -- to just to data. at there just a concern level you rate generally bit

Keith Smith

standpoint this performance. than comment. better from QX be Actually, not our with performance was QX our we'll happy Josh, revenue a

and I assisted Orleans to on think downtown So us maybe whatever went overall.

Shaun Kelley

low bar the set then. Okay,

David Strow

of from Susquehanna. Stauff comes question Joe next Our

Joseph Stauff

of see can your also should then CapEx your similar where but comment had -- pressure. sleeve I your I continue, going of just the mean, and I sleeve to be on wondering that competitive renovation $XXX of wondering terms wondering, if project we terms from that of something regional forward? And impacts a seeing was assume bigger the just in pressure competitive million, could see, we your perspective, markets? certainly, from CapEx your where guess, sort was million, perspective you what we is -- say, question from $XXX outlook, in kind that you can I you of are you'll of

them on the right can but comment one question thus wondering you if Shaun's of in answered areas? think I other far, you I was

Keith Smith

Indiana. new, the additions don't impact us. some Northern had 'XX. question. last Josh Look, supply None a in Look, 'XX. CapEx were watching early. But side from Chicago been the has a answer But of It's fairly potentially impacts landscape your bit, about Illinois those. in change a new there's outside that promotional Eastern question. much impact have we're ask and project in Illinois some significant the consistent on landscape, those for talk see additions, little so there that new We of competitive I'll competitive standpoint, -- Northwest the of I'll

And stable. to about, And to continues larger so market high well. can't the level. Once to market Orleans there, see pretty we'll speak market, competition everything but continuing perform at is what Chest seems another there operation a we're where market, New a do think again, Treasury in no. else on as we the I is our than going very

Josh Hirsberg

Yes.

I we're mean foreseeable pretty in reality, Keith's is what saying from the at we're pretty well well -- insulated competition for are I comments think future. least

we're I think refurbishment capital think from up room the $XXX of as the out that stuff. you projects, million on just clarify, catching of that's -- coming COVID can kind -- to of

it mid-XXXX. in XXXX $XXX and started And million it's in would way XXXX, XXXX, that, be then playing in shifted so out talking we done and why about less go going when be gets we to XXXX that's we was will going we out $XXX is what away. it be it to think The million to that's in said actually spent and

million, takes projects million. spread time see We've we full period over. us the $XXX over got then It's there'll reason extent So be the that and we those. to whatever, $XXX in identified. But what or be able just identified. year, that million To some that done. the execute first half extent got on of we expect the the next budgets the longer to $XXX really this and It's year, hit for spend another will because roll don't you'll we're the million that spend that we've $XX then to it

that. that's So

the that's then then space St. projects of Treasure growth $XXX to a like spend recurring Chest, million Fremont, come, be spending million we with not meeting capital. $XXX for And the Cadence Par-A-Dice at confused we that started every to and eventually Charles, year others Crossing year that's growth Ameristar and every

Joseph Stauff

your disruption Suncoast I how locals as think potential about one from well construction squeeze to just projects market Understood. the Can in and Orleans? more the as

Josh Hirsberg

surgery mean about. we an -- could any some. think be risk live commentary that a talk there I we on operation. that an It's I to gaming elaborate operating is

and done way and we there our will downtown, little it. be a floor disruption when across we've life to we and we're work know the our that planning you mitigate pieces And point, for casino where At where to and we're this operations. does have disruption, that, but we're happen. periods planning not let not happen, -- time we'll so take will some bits this before And of of

in rooms as we well. only got issues unexpected call once is reason not hotel the out capital, into so a it's every because you we the And while, that know with those run we

before. us a take that again, experienced So expected. than have we're really We're those that. are encountered of as have we've with you we've And learned not of expecting. more trying old, followed plan and but you who And these out some buildings us to to around it, tower

you trying we're what doing. let to we're know So

be so by that kind you you makes we'll surprised And as are something by sense goes surprise. if And guys it's okay, go, a -- of not the surprised it. disruption right,

do to we're trying what of kind here. that's So

David Strow

comes John Our next of DeCree from CBRE. question

John DeCree

shift online on year even bit. the Maybe and of XXXX. us detail a really lot good we for little know business gears to I But covered upcoming ground CapEx already. Josh investments a into gave the

push to Is period? investment what to you in the how business? dollars or a just think kind need state of see kind more investing kind it over legislation that iGaming you about of is, to guess multiyear online business EBITDA investments investing I gave picture for know of plans much the if us then in there's this curious iGaming of have kind but I bigger year, you any business. if particularly that. And guidance, kind your curious you So in the iGaming business of in would question more OpEx

Keith Smith

We're very pleased scalable. with is the platform It we have.

approve potentially it's of not require significant going other do to to begin anything And up" advantage states so take to consider those to "scale CapEx opportunities. and as legislators to this this,

growth of at, other it have, going product. begin only and with to this when happy CapEx will accelerate platform I significant will we states to assume not forward. we're continue any business, legalize probably I modest think think, And I it's where would the have and kind in that

John DeCree

year, ton if differences variance business And similar in disruption more if different in just in I phenomenon. volumes year any or FX I'm the if probably of meaningful not It's to this more market expectations strip question could you've any you one locals expect a Bowl you a a of for about whether the Super in, locals be curious Understood. sneak during levels market? business your for it less seen this visitation? And add. then

Keith Smith

Yes.

programming was think city it you Denver the town, weekend. year, hard different, as about think Play, maybe game it's Raiders I that unpack was Raiders last in to because FX look, So in so the a there

rooms. hotel town, And good didn't There rates they the the subsided. kind to customer so the FX extent room there say, down fill because in Look year-over-year, more prior of year, X which exuberance it demand. was was from -- was a town were because just up There demand was the during was different for of irrational expected. time frame as year the more

disrupts strip but takes disrupts a it disruptive, was the tear strip. than the put it together, more less down, which that takes it which So little months and still a month to to still

be room It Tom be busiest sure quite Bowl Las year-over-year year-over-year. one be and us. a will a our In still from be terms Bowl of think strong will will always high weekend rates will I'm as a for room not Vegas, full. rates still what Bowl, The I want always to Super think Super very Super down standpoint. great you is about is time of weekends.

on the robust year. side, maybe as as quite not nongaming last Just it was

John DeCree

milestone color. on I Keith, that all big great. anniversary. appreciate the all That's you to Congrats

David Strow

from Our comes of final Macquarie. question Chad Beynon

Chad Beynon

one trees and higher to areas the one there's being segment grow company. Obviously, And for don't phase Just been Josh, flat about a sky, but the of Other X. X XXXX, in me. of essentially managed and phase has the your talked growth know you year-over-year. a this I

should Or the the something disruption should else all is terms in growing? given couple little of with phase that in quarters? So we some past of maybe of you there the this market the volatility limit just competition in conservative, that in X that or database be property assume or might seen the kind a of we've growth being

Keith Smith

Yes.

One growth is of property. that high-performing the it's things very limits a

here put when can many a -- generated. only has today, sit business which in weekend, people and most on there's that As you building is so we the

natural holiday much the weekend, that today. so we weekend. what from We add growing it weekends. every business live just walls And capacity very standpoint. it's just therefore, a four is capacity almost just limitations. is is beyond It are to in there on cannot at Not And physical difficult today

it's as anything. So as limitation physical much a

Josh Hirsberg

next to the X XXXX and is we the the out, for that is contribution. the opportunity a think XXXX kinks sometime all probably growth made, get running done point that's up but phase kind you of -- work in and I once Chad, and

Keith Smith

four It's the not disruption project. walls. The outside is project largely existing

Chad Beynon

Nice quarter. it. Appreciate

David Strow

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

Josh Hirsberg

joining everyone thanks the for and today. call David, Thanks,

any feel you have If follow-up questions, to out reach to the free company.

Boyd Gaming (BYD) 6 Feb 252024 Q4 Earnings call transcript