Boyd Gaming (US:BYD)2025-10-31 20:03Financial Performance - Total revenues for Q3 2025 increased by $43.1 million, or 4.5%, to $1,004.4 million compared to Q3 2024, driven by a $35.5 million increase in online reimbursements revenue and a $16.8 million increase in gaming revenues [148]. - Operating income for Q3 2025 decreased by $80.2 million, or 36.5%, to $139.8 million, primarily due to a $65.1 million increase in asset impairment charges [150]. - Net income for Q3 2025 increased by $1,307.7 million to $1,438.8 million, primarily due to a $1,748.0 million gain on the FanDuel Equity Sale [154]. - Total revenues for the nine months ended September 30, 2025 increased by $140.6 million, or 4.9%, to $3,029.9 million, with significant contributions from online reimbursements and gaming revenues [149]. - Operating income for the nine months ended September 30, 2025 decreased by $84.5 million, or 12.7%, to $582.0 million, impacted by an $86.9 million increase in asset impairment charges [151]. - Revenues for the nine months ended September 30, 2025, were reported at $2,939.4 million, with operating income of $1,187.3 million [223]. Revenue Breakdown - Gaming operations accounted for approximately 65% of total revenues for Q3 2025, down from 67% in Q3 2024, while online reimbursements represented 14% of revenues in Q3 2025 [157]. - Gaming revenues rose by $16.8 million, or 2.6%, during the three months ended September 30, 2025, primarily due to a 4.1% increase in slot handle and a 3.9% increase in slot win [159]. - Food & beverage revenues increased by $2.8 million, or 3.9%, during the three months ended September 30, 2025, driven by a 10.1% rise in average guest check [161]. - Room revenues decreased by $5.0 million, or 9.9%, during the three months ended September 30, 2025, due to declines in average daily rate and hotel occupancy rate of 3.5% and 2.4%, respectively [163]. - Online revenues decreased by $11.3 million during the three months ended September 30, 2025, primarily due to a $20.5 million decrease in revenue from market access agreements [166]. - Online reimbursements revenues increased by $35.5 million during the three months ended September 30, 2025, representing an increase in reimbursements of gaming taxes and other expenses [168]. - Total revenues in the Midwest & South segment increased by $16.5 million, or 3.1%, during the three months ended September 30, 2025, driven by a $13.8 million increase in gaming revenues [182]. - Gaming revenues increased by $34.7 million, or 5.5%, during the nine months ended September 30, 2025, primarily due to the new land-based casino opened in June 2024 [183]. - Online segment revenues increased by $24.3 million during the three months ended September 30, 2025, mainly from a $35.5 million increase in reimbursements of gaming taxes [185]. - Total revenues in the Managed & Other segment increased by $3.5 million during the three months ended September 30, 2025, primarily due to a $2.7 million increase in management fees from Sky River Casino [188]. Margins and Expenses - Adjusted EBITDAR for the three months ended September 30, 2025, was $321.8 million, a decrease of $14.8 million, or 4.4%, compared to the prior year [173]. - The gaming margin for the three months ended September 30, 2025, was 60.5%, slightly down from 60.6% in the prior year [173]. - The food & beverage margin decreased to 10.7% from 13.8% in the prior year, primarily due to a 14.6% increase in cost per cover [161]. - Online margins decreased to 33.8% from 68.8% in the prior year, primarily due to changes in market access agreements [166]. - Adjusted EBITDAR decreased by $0.4 million, or 2.4%, for the three months ended September 30, 2025, while it increased by $0.1 million, or 0.2%, for the nine months ended September 30, 2025, compared to the prior year [181]. Cash Flow and Capital Management - The company reported cash and cash equivalents of $319.1 million, an increase from $316.7 million at December 31, 2024 [206]. - The working capital deficit increased to $467.8 million as of September 30, 2025, compared to $61.2 million at December 31, 2024, primarily due to income taxes on the FanDuel Equity Sale [206]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $701.4 million, slightly up from $695.0 million in the same period of 2024 [210]. - The company generated net cash inflows from investing activities of $1,235.3 million during the nine months ended September 30, 2025, driven by $1,758.0 million from the FanDuel Equity Sale [212]. - Total outstanding principal amounts under the Credit Facility were $9.3 million as of September 30, 2025, down from $1,300.3 million at December 31, 2024 [217]. - The blended interest rate for outstanding borrowings under the Credit Facility was 6.2% as of September 30, 2025 [218]. - The company was in compliance with the financial covenants of its debt instruments as of September 30, 2025 [220]. - The company expects to meet its liquidity and capital resource needs for the next twelve months through current cash balances, available borrowing capacity, and cash flows from operating activities [207]. Strategic Initiatives - Boyd Gaming's strategy includes evaluating acquisition and growth opportunities to enhance offerings and expand online sports wagering and casino offerings [144]. - The company is committed to maintaining a strong balance sheet and has used proceeds from the FanDuel Equity Sale primarily to repay outstanding borrowings [143]. - Boyd Gaming's "Boyd Rewards" loyalty program enhances customer retention and distinguishes the company from competitors [145]. - The company plans to invest $150 million in 2025 for a $750 million resort development in Norfolk, Virginia, which includes a 65,000 square-foot casino and a 200-room hotel [233]. - The company expects to spend an additional $100 million in growth projects in 2025, including the expansion of meeting and convention space at Ameristar St. Charles [232]. - The company is pursuing additional expansion opportunities in both permitted and non-permitted gaming jurisdictions, influenced by gaming license selection processes and regulatory approvals [235]. Capital Expenditures and Maintenance - Estimated annual cash capital requirements for ongoing refurbishment and maintenance are approximately $250 million, with an additional $100 million planned for hotel renovations in 2025 [231]. - Approximately $440 million has been spent out of the total estimated $600 million capital expenditure expected in 2025 as of September 30, 2025 [234]. Legal and Compliance - The company believes that all pending litigation claims, if adversely decided, will not have a material effect on its business or financial position [237]. - There have been no material changes to off-balance sheet arrangements or critical accounting policies since the last annual report [238][239].