Core Insights - The article emphasizes the importance of in-depth research in the casino and gaming sector, highlighting the value of subscribing to specialized resources for actionable insights [1] Group 1: Industry Expertise - Howard Jay Klein brings 30 years of experience in major casino operations, having worked with notable establishments such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace [2] - Klein focuses on value investing, utilizing management quality as a key factor in shaping investment ideas [2] - The House Edge, led by Klein, provides actionable research for investments in the casino, online betting, and entertainment industries, supported by an extensive intelligence network across the US gambling sector [2]

Core Insights - GameStop Corp. (GME) is transitioning from a traditional retail model to a digital-centric approach, with a market capitalization of approximately $15.66 billion, driven by speculative interest and transformation efforts [1][4] - Boyd Gaming Corporation (BYD) operates in the casino and hospitality sector with a market cap of around $6.13 billion, reflecting steady growth as travel and leisure trends rebound [2][3] GameStop (GME) Analysis - GameStop has a loyal retail investor base and is seeing increased interest from institutional investors, which may stabilize its stock price and attract long-term capital [4] - The company is diversifying into higher-margin categories like collectibles and enhancing its digital capabilities, focusing on e-commerce and user experience [5][6] - GameStop is restructuring internationally, exiting lower-performing markets to concentrate on core operations [7] - Traditional revenue streams are under pressure, with declines in hardware and software sales due to shifting consumer preferences towards digital downloads and subscription models [8] - The Zacks Consensus Estimate for GME's fiscal 2025 sales suggests an 11.1% year-over-year decline, while EPS is expected to grow by 42.4% [13] Boyd Gaming (BYD) Analysis - Boyd's strategy emphasizes operational efficiency, margin expansion, and digital transformation, with strong adjusted EBITDA margins across its portfolio [9] - The company has entered the online gaming market through a partnership with FanDuel, enhancing its presence in sports betting and iGaming [10] - Boyd is executing long-term development projects, including significant investments in property enhancements and new resorts, while maintaining capital discipline [11] - The Zacks Consensus Estimate for BYD's fiscal 2025 sales indicates a 0.6% year-over-year increase, but EPS is expected to decline by 2.4% [14] Stock Performance Comparison - Over the past six months, GME shares have surged by 20.5%, while BYD has seen a modest gain of 2% [15][16] - GameStop trades at a forward P/E ratio of 74.49, significantly above the industry average of 31.17, indicating higher growth expectations and investor risk [17] - Boyd trades at a lower P/E ratio of 11.56, appealing to value-oriented investors [17] Investment Outlook - GameStop is positioned as a compelling investment for growth-oriented investors due to its digital transformation and rising institutional interest [19] - Boyd offers a conservative investment trajectory with strong fundamentals, making it attractive for income-focused or risk-averse investors [20]

Core Insights - Sin stocks, representing companies in industries like alcohol, tobacco, cannabis, and gambling, have consistently outperformed broader markets due to strong cash flows and inelastic demand [2][4][11] Industry Overview - The U.S. alcoholic beverages market is projected to grow from $544.19 billion in 2024 to $709.13 billion by 2029, with a CAGR of 5.4% [8] - The global tobacco market is expected to increase from $921.4 billion in 2024 to $1,198.4 billion by 2035, reflecting a CAGR of 2.3% from 2025 to 2035 [9] - The global online gambling market was valued at $78.66 billion in 2024 and is projected to grow at a CAGR of 11.9% from 2025 to 2030 [10] Company Insights - Molson Coors (TAP) is focusing on market share growth through innovation and premiumization in the alcohol sector [7] - Boyd Gaming (BYD) is enhancing growth through property upgrades and strategic investments in the gambling industry [7] - Philip Morris International Inc. (PM) is transforming towards a smoke-free future, aiming for a majority of its revenue from reduced-risk products by 2030 [13][15] - MGM Resorts International (MGM) is well-positioned to capitalize on the recovery of the gaming and tourism industries, with a strong digital strategy through BetMGM [17][18] - Diageo Plc (DEO) is focusing on premiumization and innovation, with a strong portfolio of iconic brands and a strategy to enhance direct-to-consumer engagement [20][21][22]

Revenue Performance - Total revenues for the three months ended March 31, 2025, increased by $31.0 million, or 3.2%, to $991.6 million compared to $960.5 million in the prior year[135]. - Online revenues increased by $23.4 million, primarily due to a $13.6 million increase in reimbursements of gaming taxes and a $10.9 million increase from Boyd Interactive's operations following the acquisition of Resorts Digital on September 1, 2024[135][146]. - Gaming revenues increased by $4.6 million, or 0.7%, driven by a 1.5% increase in slot handle and a 4.8% increase in table game hold[141]. - Food & beverage revenues increased by $1.5 million, or 2.1%, with margins remaining consistent at 14.7%[142]. - Room revenues decreased by $1.6 million, or 3.2%, primarily due to a 3.1% decline in average daily rate[143]. - The majority of revenues, approximately 64% and 66% for the three months ended March 31, 2025, and 2024, respectively, were derived from gaming operations[139]. - Las Vegas Locals segment reported a revenue decrease of $2.8 million or 1.3%, primarily due to a $2.6 million decline in room revenues, with average daily rate down 6.8% and hotel occupancy down 3.1%[152]. - Downtown Las Vegas segment saw a revenue increase of $3.8 million or 7.0%, driven by a $2.9 million increase in gaming revenue, with slot handle up 5.5% and slot win up 6.8%[154]. - Total revenues for the three months ended March 31, 2025, were $991.6 million, an increase of $31.1 million or 3.2% compared to $960.5 million in the prior year[151]. Income and Expenses - Operating income decreased by $19.5 million, or 8.9%, to $199.9 million, impacted by a $21.8 million increase in asset impairment charges[136]. - Net income decreased by $25.6 million to $110.9 million, primarily due to the decrease in operating income and a $6.1 million increase in interest expense[137]. - Corporate expenses were consistent at $30 million, representing 3.0% of revenues for the three months ended March 31, 2025[167]. - Interest expense increased by $5.8 million or 13.8% to $47.6 million, primarily due to an increase in the average long-term debt balance[172]. - The effective tax rate for the three months ended March 31, 2025, was 27.1%, up from 23.1% in the prior year, impacted by state taxes and nondeductible compensation[173]. Cash Flow and Liquidity - Cash and cash equivalents at March 31, 2025, were $311.5 million, down from $316.7 million at December 31, 2024, with a working capital deficit of $127.9 million[174]. - The company plans to meet liquidity needs through current cash balances, available borrowing capacity, and cash flows from operating activities for the next twelve months[175]. - Operating cash flows increased to $256.4 million for the three months ended March 31, 2025, compared to $250.7 million in the same period of 2024, primarily due to revenue increases[179]. - Net cash outflows for investing activities were $250.4 million in Q1 2025, significantly higher than $90.3 million in Q1 2024, driven by capital expenditures of $169.9 million[181]. Debt and Financing - The company incurred $338.1 million in net borrowings under the Credit Facility in Q1 2025, primarily to fund share repurchases totaling $328.0 million[183]. - Total outstanding principal amounts under the Credit Facility increased to $1,638.4 million as of March 31, 2025, up from $1,300.3 million at the end of 2024[186]. - The company remains in compliance with financial covenants of its debt instruments as of March 31, 2025[189]. - As of March 31, 2025, long-term variable-rate borrowings represented approximately 46.3% of total long-term debt[214]. - A 100 basis point change in interest rates would cause annual interest costs on variable-rate borrowings to change by approximately $16.4 million[214]. Capital Expenditures and Investments - The company plans to spend approximately $250 million annually for ongoing refurbishment and maintenance, with an additional $100 million allocated for hotel renovations in 2025[200]. - A new casino project, Cadence Crossing, is expected to cost $100 million, featuring 450 slots and several restaurants, replacing the existing Jokers Wild casino[201]. - A $750 million resort development in Norfolk, Virginia, is planned, with a transitional casino opening in late 2025 and the full resort by late 2027[202]. - The company repurchased 4.5 million shares during the three months ended March 31, 2025, compared to 1.7 million shares in the same period of 2024[194]. - Dividends declared for Q1 2025 were $0.18 per share, reflecting a gradual increase from previous quarters[198]. Risk and Compliance - The company has not experienced material changes in off-balance sheet arrangements since the last annual report[208]. - There have been no material changes to critical accounting policies since the last annual report[209]. - The company is exposed to interest rate risk, specifically long-term U.S. treasury rates and applicable spreads in the high-yield investment market[213]. - The company does not currently utilize derivative financial instruments for trading or speculative purposes[213]. - The company believes that all pending litigation claims, if adversely decided, will not have a material effect on its business or financial position[216]. - The company is focused on identifying additional suitable investment opportunities in current gaming jurisdictions[207]. - The company anticipates continued competition in the gaming market, including the expansion of online gaming[216]. Operational Developments - Boyd Gaming is committed to maintaining a strong balance sheet and pursuing strategic growth opportunities, including expanding online offerings as they are legalized[130][131]. - The company has implemented a new Enterprise Resource Planning System during the most recent fiscal quarter[218].

Core Insights - Chinese automakers, particularly BYD, have rapidly advanced in the electric vehicle (EV) market, surpassing foreign competitors like Tesla in revenue and profitability [1][4][10] Company Performance - BYD reported an annual revenue of $107 billion, exceeding Tesla's $98 billion [4] - The company's net profit increased by 100% year-over-year to approximately $1.3 billion, while Tesla's profit dropped by roughly 70% to $409 million [4] Technological Advancements - BYD has made advanced driver-assist systems standard across its vehicle lineup and introduced a new charging system that provides 250 miles of charge in just five minutes [5] - The company's 1,000 kW chargers are four times more powerful than Tesla's, which can add about 200 miles of range in 15 minutes [5] International Expansion - BYD plans to sell over 800,000 vehicles outside of China this year, more than double the previous year's sales [6] - The company is constructing factories in Brazil, Thailand, Hungary, and Turkey, and is customizing products for specific markets [7] Competitive Advantages - BYD benefits from vertical integration, producing a significant percentage of its components in-house, including a lithium iron phosphate battery that enhances safety and efficiency [8] - The company's durable competitive advantages align with Warren Buffett's investment philosophy [8] Future Outlook - BYD is well-positioned for continued growth, with strong performance metrics and potential for entry into the U.S. market as conditions become favorable [9][10]

Financial Data and Key Metrics Changes - Revenues for the first quarter were nearly $1 billion, while EBITDA was $338 million, maintaining property-level margins of 40%, consistent with the prior year [6][8][26] - The company reported a tax pass-through amount for the Online segment of $130 million, compared to $116 million in the year-ago period [29] Performance by Business Segment - In the Las Vegas Locals segment, revenues were nearly even with the prior year, while EBITDA was down less than 4%, primarily due to competitive pressures at the Orleans [9][10] - Downtown Las Vegas achieved both revenue and EBITDA growth, with solid visitation from Hawaii and healthy pedestrian traffic along Fremont Street [11][12] - The Midwest & South segment saw growth in both revenues and EBITDA, with margins consistent with the prior year despite a 28% increase in weather-impacted days [13][14] - The Online segment grew EBITDA by nearly 14% year-over-year, driven by strong growth from Boyd Interactive and stable performance from market-access agreements [15] - The Managed & Other business continued to perform well, driven by growth and management fees from Sky River Casino [16] Market Data and Key Metrics Changes - Customer trends remained consistent with March, with no meaningful shift in consumer behavior or spending patterns observed in the second quarter [7][8] - Hawaiian visitation to the Downtown segment was temporarily impacted in the previous year due to higher airfares related to the Super Bowl, creating a favorable comparison for the current quarter [11][12] Company Strategy and Industry Competition - The company is focused on enhancing competitiveness through property renovations and expansions, including a $750 million resort project in Norfolk, Virginia, scheduled for completion in late 2027 [22][24] - The company remains committed to returning capital to shareholders, having repurchased $328 million in stock and paid $15 million in dividends during the first quarter [25][33] - The company is cautious about M&A opportunities, emphasizing a disciplined approach to acquisitions [71][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, supported by the strongest balance sheet in its history [8][26] - The long-term fundamentals of the Southern Nevada economy remain strong, with consistent growth in local population, employment, and tourism [12] - Management acknowledged the potential impact of tariffs on capital projects but indicated that existing budgets would not need to change [62][66] Other Important Information - The company is undertaking several capital projects to strengthen its growth profile, including expansions at Ameristar St. Charles and the new Cadence Crossing Casino [20][21] - The company has identified capital projects that can be deferred if necessary, reflecting a proactive approach to managing potential risks [32][61] Q&A Session Summary Question: Plans for Paradise and other multi-level boats - Management has a prioritized list of development projects focused on those with the highest returns, with several older riverboats remaining for future upgrades [40][41] Question: Outlook for core and retail customers - Core customers continue to grow, while retail customers are performing consistently, with positive trends observed [46][47] Question: Buyback strategy and timing - The company aims to maintain a strong balance sheet while balancing capital allocation between investments and shareholder returns, with a cautious approach to buybacks in the current environment [54][56] Question: Impact of tariffs on capital projects - The company has evaluated capital projects for potential deferral and has taken steps to mitigate tariff impacts, ensuring that budgets remain intact [60][62] Question: Competitive landscape in the Locals market - The Locals market has seen slight shrinkage, but the company has outperformed the overall market, particularly excluding the Orleans [99][100] Question: Impact of Canadian travel and Hawaiian sports betting - Canadian travel represents less than one-tenth of 1% of the company's business, and management does not foresee significant impacts from potential sports betting in Hawaii [129][132]

Financial Data and Key Metrics Changes - Revenues for the first quarter were nearly $1 billion, while EBITDA was $338 million, maintaining property-level margins of 40%, consistent with the prior year [6][8][26] - The company reported a tax pass-through amount for the Online segment of $130 million, compared to $116 million in the year-ago period [29] Performance by Business Segment - In the Las Vegas Locals segment, revenues were nearly even with the prior year, while EBITDA was down less than 4%, primarily due to competitive pressures at the Orleans [9][10] - Downtown Las Vegas achieved both revenue and EBITDA growth, with solid visitation from Hawaii and healthy pedestrian traffic along Fremont Street [11][12] - The Midwest & South segment saw growth in both revenues and EBITDA, with margins consistent with the prior year despite a 28% increase in weather-impacted days [13][14] - The Online segment grew EBITDA by nearly 14% year-over-year, driven by stable performance from market-access agreements and strong growth from Boyd Interactive [15] - The Managed & Other business continued to perform well, driven by growth and management fees from Sky River Casino [16] Market Data and Key Metrics Changes - Customer trends remained consistent with March, with no meaningful shift in consumer behavior or spending patterns observed thus far in the second quarter [7][8] - Hawaiian visitation to the Downtown segment was temporarily impacted in the previous year due to higher airfares related to the Super Bowl, creating a favorable comparison for the current quarter [11][12] Company Strategy and Industry Competition - The company is focused on enhancing competitiveness through property renovations and expansions, including a $750 million resort project in Norfolk, Virginia, scheduled for completion in late 2027 [22][24] - The company remains committed to returning capital to shareholders, having repurchased $328 million in stock and paid $15 million in dividends during the first quarter [25][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, citing the strongest balance sheet in history and a diversified business model [8][26] - The long-term fundamentals of the Southern Nevada economy remain strong, with consistent growth in local population, employment, and tourism [12] Other Important Information - The company plans to balance capital expenditures with shareholder returns, committing to $100 million in share repurchases per quarter while remaining cautious in the current economic environment [25][35] - The company has identified capital projects that can be deferred if needed to mitigate potential tariff impacts [32][62] Q&A Session Summary Question: Plans for Paradise and other multi-level boats - The company has a prioritized list of development projects based on expected returns, with a focus on those providing the highest returns [40][41] Question: Outlook for core and retail customers - The core customer base continues to grow, while retail play remains consistent, with positive trends observed [46][47] Question: Buyback strategy and timing - The company will maintain a strong balance sheet while balancing capital allocation and shareholder returns, being cautious in the current environment [54][56] Question: Impact of tariffs on capital projects - The company has evaluated capital projects for potential deferral and has taken steps to mitigate tariff impacts, ensuring budgets remain intact [60][62] Question: M&A potential in the current environment - The company remains interested in M&A opportunities but will proceed cautiously, focusing on strategic acquisitions [71][73] Question: Changes in customer spending on non-gaming amenities - Spending on food and beverage and hotel services is up on a cash basis, with no significant changes observed [83] Question: Canadian travel impact - Canadian visitation is a minor part of the business, accounting for less than one-tenth of 1% of revenue [129] Question: Hawaiian sports betting bill impact - The company does not foresee significant impacts from potential sports betting in Hawaii, maintaining a strong relationship with Hawaiian customers [132] Question: Eastside Cannery and Trop I-15 interchange project updates - The Eastside Cannery remains closed, and the Trop I-15 interchange project continues to impact business, particularly at the Orleans [143][145]

Core Insights - Boyd Gaming reported revenue of $991.57 million for Q1 2025, a year-over-year increase of 3.2% and an EPS of $1.62, up from $1.51 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Performance - Online revenue reached $169.57 million, surpassing the average estimate of $152.20 million, reflecting a year-over-year increase of 16% [4] - Downtown Las Vegas segment generated $57.29 million, exceeding the four-analyst average estimate of $53.91 million, with a year-over-year change of 7% [4] - Midwest and South segment reported $504.59 million, slightly above the average estimate of $502.33 million, with a year-over-year change of 0.8% [4] - Managed & Other segment achieved $37.32 million, exceeding the average estimate of $35.69 million [4] - Las Vegas Locals segment reported $222.80 million, slightly below the average estimate of $225 million, with a year-over-year change of -1.3% [4] Adjusted EBITDAR Performance - Online segment's adjusted EBITDAR was $23.31 million, surpassing the average estimate of $22.06 million [4] - Managed & Other segment's adjusted EBITDAR reached $27.32 million, exceeding the average estimate of $24.82 million [4] - Downtown Las Vegas adjusted EBITDAR was $20.92 million, compared to the average estimate of $18.36 million [4] - Midwest and South adjusted EBITDAR reported at $183.22 million, above the average estimate of $182.16 million [4] - Las Vegas Locals adjusted EBITDAR was $106.55 million, slightly below the average estimate of $107.84 million [4] Stock Performance - Boyd Gaming shares returned -2.8% over the past month, compared to the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenues for the quarter were nearly $1 billion, while EBITDAR was $338 million, maintaining property level margins of 40%, consistent with the prior year [5][19] - The company reported a 28% increase in weather-impacted days compared to last year, yet managed to grow revenues and EBITDAR in the Midwest and South segment [10][19] - The online segment grew EBITDAR by nearly 14% year over year, driven by stable performance from market access agreements and strong growth from Boyd Interactive [11] Business Line Data and Key Metrics Changes - In the Las Vegas Locals segment, revenues were nearly even with the prior year, while EBITDAR was down less than 4%, primarily due to competitive pressures at the Orleans [8] - Downtown Las Vegas achieved both revenue and EBITDAR growth during the first quarter, with solid visitation from Hawaii and healthy pedestrian traffic along Fremont Street [9] - The managed and other business saw strong growth driven by management fees from Sky River Casino, with ongoing expansion activities set to enhance future growth [12] Market Data and Key Metrics Changes - Customer trends remained consistent through April, with no meaningful shifts in consumer behavior or spending patterns observed thus far in the second quarter [6][20] - The company noted that Hawaiian visitation to the downtown segment was temporarily impacted last year by higher airfares related to the Super Bowl, creating a favorable comparison for the first quarter of this year [9] Company Strategy and Development Direction - The company is focused on enhancing competitiveness through property renovations and expansions, including a $750 million resort project in Norfolk, Virginia, scheduled for completion in late 2027 [17][18] - Capital investment programs are aimed at creating long-term shareholder value, with a commitment to return capital through stock repurchases and dividends [19][26] - The company remains cautious about M&A opportunities, emphasizing a disciplined approach to acquisitions that align with strategic goals [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the company, citing a strong balance sheet and diversified business as key strengths in navigating economic uncertainty [7][20] - The company acknowledged the potential for increased costs due to tariffs but indicated that current budgets would not be significantly impacted [49][52] Other Important Information - The company repurchased $328 million in stock during the first quarter and paid $15 million in dividends, with plans to continue repurchasing $100 million in shares per quarter [19][26] - The company is actively managing operating expenses and exploring efficiencies to mitigate inflationary pressures [96] Q&A Session Summary Question: Plans for Paradise Riverboat Casino - The company has a list of development projects prioritized based on expected returns, with plans to upgrade older riverboats over time [33][34] Question: Outlook for Core and Retail Customers - Management sees core customer trends continuing to grow, with retail customers performing consistently, despite some noise from external factors [38][39] Question: Buyback Strategy and Timing - The company balanced its buyback strategy with maintaining a strong balance sheet, taking advantage of favorable stock prices in Q1 while remaining cautious moving forward [44][46] Question: Impact of Tariffs on Capital Projects - The company evaluated capital projects for potential deferral and identified sources to mitigate tariff impacts, ensuring budgets remain intact [49][50] Question: Competitive Landscape in Locals Market - The locals market has seen slight shrinkage, but the company has outperformed the overall market, particularly excluding the Orleans property [78][80] Question: Hawaiian Travel and Weather Impact - The company estimated a $5 million impact from weather on EBITDA for the quarter, with Hawaiian travel normalized compared to last year [74][71] Question: Non-Gaming Amenities Spending - Spending on food and beverage and hotel services is up on a cash basis, with no significant declines noted in non-gaming amenities [66] Question: Canadian Travel Impact - Canadian visitation is a minor segment for the company, accounting for less than 0.1% of business, thus not significantly impacting overall performance [103] Question: Future of iGaming Platform - The company aims to grow its Stardust iGaming platform modestly, focusing on markets where it operates, without significant acquisitions planned [90][91]

Exhibit 99.1 BOYD GAMING REPORTS FIRST-QUARTER 2025 RESULTS LAS VEGAS - APRIL 24, 2025 - Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2025. Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the first quarter, we achieved revenue and Adjusted EBITDAR growth on both a Companywide and property-level basis, maintaining property operating margins of 40% – an impressive performance by our Company, considering the impact o ...