Boyd Gaming (US:BYD)2025-05-02 20:04Revenue 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].