Boyd Gaming (US:BYD)2025-07-30 20:14Financial Performance - Total revenues for Q2 2025 increased by $66.5 million, or 6.9%, to $1,034.0 million compared to Q2 2024[144] - Operating income for Q2 2025 increased by $15.3 million, or 6.7%, to $242.4 million compared to Q2 2024[146] - Net income for Q2 2025 increased by $10.5 million to $150.4 million, despite a $7.6 million increase in interest expense[149] - Total revenues for the six months ended June 30, 2025, increased by $97.5 million, or 5.1%, to $2,025.6 million compared to the prior year[145] - Total revenues for the three months ended June 30, 2025, increased to $1,034.0 million, a 6.9% increase from $967.5 million in the prior year[163] - Adjusted EBITDAR for the three months ended June 30, 2025, increased by $3.5 million, or 3.2%, compared to the prior year[167] - Adjusted EBITDAR increased by $5.2 million and $8.0 million for the three and six months ended June 30, 2025, respectively, primarily due to revenue growth from Boyd Interactive[176] - The company reported revenues of $1,965.7 million and net income of $722.9 million for the six months ended June 30, 2025[210] Revenue Breakdown - Online revenue increased by $43.1 million in Q2 2025, driven by $30.4 million in reimbursements of gaming taxes and a $10.7 million increase from Boyd Interactive's operations[144] - Gaming revenues rose by $20.6 million, or 3.2%, in Q2 2025, with a slot handle increase of 3.6% and a table game hold increase of 7.1%[144] - Gaming operations contributed approximately 65% of total revenues for Q2 2025, down from 67% in Q2 2024[151] - Online revenues increased by $66.5 million for the six months ended June 30, 2025, compared to the prior year, driven by a $44.0 million increase in reimbursements and a $21.6 million increase from Boyd Interactive's operations[175] - Total revenues for Managed & Other increased by $3.4 million and $6.3 million for the three and six months ended June 30, 2025, respectively, with Adjusted EBITDAR increasing by $2.8 million and $5.4 million[177] Expenses and Costs - Selling, general and administrative expenses as a percentage of revenues were 10.6% for Q2 2025, down from 10.9% in Q2 2024, reflecting improved revenue performance[179] - Depreciation and amortization expenses increased to $70.0 million for Q2 2025 from $65.7 million in Q2 2024, attributed to the new land-based casino and hotel renovations[182] - Interest expense increased by $6.8 million, or 15.9%, for Q2 2025 compared to the prior year, primarily due to a $638.8 million increase in the weighted average debt balance[189] Cash Flow and Capital Expenditures - Cash and cash equivalents were $320.1 million as of June 30, 2025, compared to $316.7 million at the end of 2024, with a working capital deficit of $88.8 million[192] - Net cash provided by operating activities was consistent at $461.4 million for the six months ended June 30, 2025, compared to $463.8 million in 2024[197] - Net cash outflows for investing activities totaled $375.9 million for the six months ended June 30, 2025, primarily due to capital expenditures of $294.3 million[199] Debt and Financing - As of June 30, 2025, the total outstanding principal amounts under the Credit Facility increased to $1,688.1 million from $1,300.3 million as of December 31, 2024, reflecting an increase of $387.8 million[204] - The blended interest rate for outstanding borrowings under the Credit Facility was 6.1% as of June 30, 2025[205] - The company anticipates a remaining contractual availability under the Credit Facility of $485.9 million as of June 30, 2025[204] - As of June 30, 2025, long-term variable-rate borrowings accounted for approximately 47.0% of total long-term debt[233] - A 100 basis point change in interest rates would result in an annual interest cost change of approximately $16.9 million on variable-rate borrowings[233] Strategic Initiatives - The company is focused on strategic growth opportunities, including enhancing existing properties and expanding online gaming offerings[139] - The company plans to spend approximately $250 million annually for ongoing refurbishment and maintenance, with an additional $100 million allocated for hotel renovation projects in 2025[219] - A new casino, Cadence Crossing, is expected to be constructed with a budget of $100 million, featuring 450 slots and several restaurants, replacing the existing Jokers Wild casino[220] - The company is expanding its portfolio with a $750 million resort development in Norfolk, Virginia, with plans to open a transitional casino in late 2025 and the full resort in late 2027[221] Market and Risk Factors - The company expects continued competition in the gaming market, including the expansion of online gaming and sports betting[235] - Future trends affecting the gaming industry are anticipated to influence growth opportunities and merger and acquisition activity[235] - The company is focused on maintaining the integrity of its information technology systems and compliance with government regulations[235] - There have been no material changes in exposure to market risks since the last annual report filed on February 21, 2025[233] - The company does not hold market risk sensitive instruments for trading purposes, primarily facing interest rate risk and commodity price exposure[232] - Foreign currency exchange risk is limited due to minimal cash held in Canadian bank accounts, with a potential 2x fluctuation in the USD/CAD exchange rate having negligible impact[232] - The majority of purchases for operations and construction projects are from US-based suppliers, mitigating exposure to commodity prices and tariffs[232]