Boyd Gaming (BYD)2025-02-21 21:37Casino Development and Management - The Company has entered into agreements to develop and manage the Norfolk Casino, with expected expenditures of approximately $750 million[571] - The Norfolk Casino is anticipated to open a transitional facility in November 2025 and a full casino hotel resort by late 2027[571] - The Company entered into agreements for the Norfolk Casino development, which includes receiving an exclusive option to purchase membership interests and becoming the developer and manager of the project[506] Financial Performance - Total revenues for 2024 reached $3,930,194, an increase of 5.1% compared to $3,738,492 in 2023[335] - Gaming revenue decreased to $2,583,926 in 2024 from $2,613,288 in 2023, a decline of 1.3%[335] - Online revenue significantly increased to $606,233, up 43.6% from $422,211 in 2023[335] - Net income for 2024 was $577,952, a decrease of 6.8% from $620,023 in 2023[337] - Basic net income per share increased to $6.19 in 2024 from $6.12 in 2023[335] - Comprehensive income for 2024 was $576,648, down from $620,307 in 2023[337] Assets and Liabilities - Total assets grew to $6,391,815 in 2024, up from $6,273,126 in 2023, reflecting a 1.9% increase[333] - Long-term debt increased to $3,132,584 in 2024 from $2,871,223 in 2023, representing a rise of 9.1%[333] - Total long-term debt as of December 31, 2024, was $3,200.3 million, with a carrying value of $3,176.6 million[318] - The carrying value of goodwill and gaming license rights indefinite-lived intangible assets was $957.9 million and $1,105.1 million, respectively, as of December 31, 2024[327] Cash Flow and Investments - Cash flows from operating activities increased to $957,075 in 2024, compared to $914,516 in 2023, reflecting a growth of 4.6%[341] - Net cash used in investing activities was $433,912 in 2024, compared to $264,330 in 2023, representing a significant increase of 64.2%[343] - Net cash used in financing activities decreased to $509,501 in 2024 from $637,248 in 2023, a reduction of 20.0%[343] Debt and Interest Rates - A 100-basis-point change in interest rates would result in an annual interest cost change of approximately $13.0 million[318] - The average interest rate for fixed-rate long-term debt is 4.8%, while the average interest rate for variable-rate long-term debt is 6.2%[317] - The Company reported total long-term debt of $3.176590 billion as of December 31, 2024, with a credit facility interest rate of 6.169%[449] Impairments and Goodwill - The Company recorded an impairment of $10.5 million for a gaming license right indefinite-lived intangible asset in the Midwest & South segment for the year ended December 31, 2024[327] - An impairment charge of $10.5 million was recorded in Q1 2024 for a gaming license right related to the Midwest & South segment, following a $21.3 million impairment charge in 2023 for the same segment[441] - The Online segment experienced goodwill impairment charges of $82.0 million in 2023, contributing to a total of $86.5 million across all segments[445] Acquisitions and Expansions - Boyd Interactive Gaming, Inc. completed the acquisition of Resorts Digital for a total cash consideration of $34.0 million, net cash paid for acquisitions was $30.3 million[411][413] - Boyd Interactive Inc. also acquired Pala Interactive for a total cash consideration of $175.2 million, net cash paid for acquisitions was $167.9 million[421] - The acquisition includes a 20-year marketing agreement with a 10-year renewal option, enhancing Boyd's online casino business in New Jersey[412] Taxation and Deferred Tax Assets - The total provision for income taxes for the year ended December 31, 2024, was $174.1 million, compared to $132.9 million in 2023[482] - The effective tax rate for the year ended December 31, 2024, was 23.1%, up from 17.6% in 2023[482] - The gross deferred income tax assets amounted to $246.6 million in 2024, a decrease from $260.0 million in 2023[478] Marketing and Customer Engagement - The company established a player loyalty point program to encourage repeat business, allowing members to earn points based on gaming activity[385] - The estimated retail value of complimentary goods and services provided to customers, which reduces gaming revenues, was $119.2 million for food & beverage, $62.5 million for rooms, and $8.6 million for other services in 2024[389] - The company has established marketing agreements that provide significant after-tax savings on projected marketing expenses, enhancing brand visibility and customer engagement[436]