Core Viewpoint - Boyd Gaming Corporation has increased its quarterly dividend to $0.20 per share from the previous $0.18 per share, reflecting a commitment to returning value to shareholders [1]. Company Overview - Boyd Gaming Corporation, founded in 1975, operates 27 gaming entertainment properties across 11 states and manages a tribal casino in northern California [1]. - The company also owns and operates Boyd Interactive, a B2B and B2C online casino gaming business [1]. - Boyd Rewards, the company's loyalty program, is recognized as the nation's favorite casino loyalty program by USA Today readers [1]. - Boyd Gaming has been named one of "America's Best Companies" by Forbes magazine and is led by an experienced team in the industry [1]. Dividend Details - The new dividend of $0.20 per share is payable on April 15, 2026, to shareholders of record as of March 16, 2026 [1].

Financial Data and Key Metrics Changes - In 2025, the company achieved record company-wide revenues with EBITDA of approximately $1.4 billion, maintaining property level margins at 40%, consistent with the previous year [5][24] - For the fourth quarter, revenues were $1.1 billion, and EBITDA was $337 million, reflecting continued growth in gaming revenues despite a $40 million impact from changes in the online segment and severe winter weather [9][24] Business Line Data and Key Metrics Changes - The Las Vegas Locals segment saw strong gaming revenue growth driven by core customers, although cash hotel revenues declined by nearly $6 million due to softness in destination business [10][11] - The Midwest and South segment experienced growth from core and retail customers, but revenues and EBITDAR were impacted by severe winter weather and the permanent closure of Sam's Town Tunica [12][13] Market Data and Key Metrics Changes - The company noted a 10% decline in pedestrian traffic on the Fremont Street Experience, affecting the downtown Las Vegas segment, while the Midwest and South markets continued to see strong play from core customers [11][12] - The online segment generated EBITDAR of $63 million for the full year, with expectations of $30-$35 million in 2026, driven by Boyd Interactive and changes in revenue share agreements [13][24] Company Strategy and Development Direction - The company plans to continue investing in property improvements and growth projects, including the opening of Cadence Crossing Casino and the completion of the Suncoast modernization project [7][18] - The company remains open to M&A opportunities but emphasizes a disciplined approach to ensure the right asset at the right price [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting benefits from new investments and consumer spending supported by tax legislation [8][28] - The company anticipates continued growth from core customers and positive trends in retail spending, despite challenges in the destination business [29][72] Other Important Information - The company returned over $800 million to shareholders in 2025 through share repurchases and dividends, reducing the total share count by 11% [7][26] - The company expects to maintain quarterly share repurchases of approximately $150 million and regular dividends, equating to over $650 million annually [27][20] Q&A Session Summary Question: Can you bifurcate between real locals play and destination locals play? - Management noted strong play from Las Vegas local residents, while destination play showed weakness, particularly affecting hotel revenues at the Orleans [31][32] Question: Any updated thoughts on the M&A pipeline? - Management remains interested in M&A opportunities but emphasizes a disciplined approach to ensure the right fit [35][36] Question: What are your current views on the structure of potential acquisitions? - Management is open to both Holdco and Opco structures for acquisitions, focusing on the right asset and price [42][43] Question: How do you view the impact of the tax legislation on your customer base? - Management expects significant benefits from the tax legislation for both Nevada and Midwest customers, enhancing consumer spending [51][52] Question: What is the expected impact of weather on the first quarter results? - Management indicated a similar impact to the previous year, estimating around a $5 million effect from weather in January [73][75]

Financial Data and Key Metrics Changes - In 2025, the company achieved record company-wide revenues with EBITDA of approximately $1.4 billion, maintaining property level margins at 40% [4][21] - For Q4 2025, revenues were $1.1 billion and EBITDA was $337 million, reflecting continued growth in gaming revenues [7][21] - Year-over-year EBITDA comparisons in Q4 were impacted by approximately $40 million due to changes in the online segment and severe winter weather [7][21] Business Line Data and Key Metrics Changes - The Las Vegas Locals segment saw strong gaming revenue growth driven by core customers, although cash hotel revenues declined by nearly $6 million due to softness in destination business [8][9] - The Midwest and South segment experienced growth from core and retail customers, but revenues were impacted by severe winter weather and the permanent closure of Sam's Town Tunica [10][11] - The online segment achieved EBITDAR of $63 million for the full year, with projections of $30-$35 million in 2026 [11][21] Market Data and Key Metrics Changes - The Las Vegas locals market showed strong play from local residents, while destination play remained weak, particularly affecting hotel revenues at the Orleans [31][32] - The company expects consumer spending to benefit from last year's tax legislation, particularly in Southern Nevada [6][27] - The Midwest and South markets are anticipated to continue benefiting from customers staying closer to home [11][70] Company Strategy and Development Direction - The company plans to continue investing in property improvements and growth projects, with capital expenditures expected to be between $650 million and $700 million in 2026 [22][23] - New projects include the opening of Cadence Crossing Casino and the development of a $160 million gaming facility at Par-A-Dice [16][23] - The company remains open to M&A opportunities but emphasizes a disciplined approach to acquisitions [35][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing strong customer trends and the expected benefits from new investments and tax legislation [5][27] - The company noted that while destination business remains weak, core customer segments continue to perform well [70][90] - Management highlighted the importance of operational discipline and cost controls in maintaining performance [7][21] Other Important Information - The company returned over $800 million to shareholders in 2025 through share repurchases and dividends, reducing the total share count by 11% [5][24] - The company plans to continue repurchasing approximately $150 million in shares per quarter, supplemented by regular dividends [25][27] - The transitional casino in Norfolk, Virginia, is expected to break even until the permanent resort opens in late 2027 [61] Q&A Session Summary Question: Can you bifurcate between real locals play and destination locals play? - Management noted strong play from Las Vegas local residents, while destination play has shown weakness, particularly affecting hotel revenues at the Orleans [31][32] Question: Any updates on the M&A pipeline? - Management remains interested in M&A opportunities but emphasizes a disciplined approach to ensure the right asset at the right price [35][36] Question: What are the expectations for the customer base aged 65 and older? - Approximately 40% of the customer base is 65 and older, and management expects positive impacts from tax legislation for both Nevada and Midwest customers [49][51] Question: How is the weather impacting the Midwest and South segments? - Management indicated a similar impact to last year, estimating about a $5 million impact from weather in January [72][73] Question: What is the operational perspective on the transitional casino in Virginia? - Management expects the transitional casino to break even until the permanent facility opens [61] Question: How does the company view iGaming expansion? - The company supports iGaming expansion and sees it as complementary to their business, looking for opportunities to participate in new state launches [62][88]

Financial Data and Key Metrics Changes - For the second quarter, revenues excluding tax pass-through amounts grew by 4%, while EBITDAR also increased by 4% to $358 million, marking the strongest year-over-year growth in over three years [7][21] - Property level margins exceeded 40%, a level consistently achieved since 2021 [7][23] - Total leverage at the end of the second quarter was approximately 2.8 times, expected to reduce to below 2 times post-FanDuel transaction [22][19] Business Line Data and Key Metrics Changes - The Las Vegas Local segment reported its first year-over-year revenue and EBITDAR growth in over two years, maintaining segment margins of nearly 50% [8] - The Midwest and South segment achieved revenue and EBITDAR gains of over 3%, marking its highest quarterly performance in nearly three years [11] - The online segment saw revenue and EBITDA increases driven by Boyd Interactive and modest growth from market access agreements [12] Market Data and Key Metrics Changes - Southern Nevada's employment and average weekly wages increased by over 5% year-over-year, contributing to a positive economic outlook [9] - The Las Vegas Strip experienced softer demand trends, but local economic strength remains [8][10] - The Downtown Las Vegas segment showed stable performance despite challenging comparisons from the previous year [10] Company Strategy and Development Direction - The company plans to use proceeds from the FanDuel transaction to pay down debt, invest in properties, pursue growth opportunities, and return capital to shareholders [5][6][19] - Ongoing capital investments include hotel renovations and new developments, with a total capital expenditure projection of $600 million to $650 million for the year [24][18] - The company remains committed to a balanced approach to capital allocation, focusing on both growth investments and shareholder returns [33][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Southern Nevada economy and the prospects for the locals business, citing positive economic indicators [10] - The promotional environment has remained stable, with no heightened promotional activities noted in key markets [42][43] - Management indicated that while there is flexibility for future investments, they will remain disciplined in capital allocation decisions [36][39] Other Important Information - The company repurchased $105 million in stock during the second quarter and plans to increase its share repurchase program to $150 million per quarter [25][19] - The recent tax bill includes provisions that will benefit the company's operations, although quantifying the exact impact remains pending [9][75] Q&A Session Summary Question: What will Boyd do with the proceeds from the FanDuel transaction? - Management clarified that proceeds will be used to reduce leverage and increase quarterly buybacks, while also exploring future growth opportunities [29][30] Question: What is the optimal leverage level for Boyd? - Management indicated that they previously aimed for around 2.5 times leverage but expect to operate below that level for the time being [36][39] Question: What is the current promotional environment in key markets? - Management noted that the promotional environment has been stable, with no significant increases in promotional activities [42][43] Question: Can you provide insights on the pickup in retail play? - Management observed a pickup in unrated play, attributing it to customers staying closer to home, but indicated the need for further observation to determine sustainability [50][51] Question: How will the company approach online gaming strategy post-FanDuel? - Management confirmed no change in strategy, maintaining a focus on regional online gaming rather than pursuing a national presence [55][56] Question: What are the implications of the recent tax changes? - Management acknowledged potential benefits from the new tax provisions but refrained from quantifying the impact until further analysis is completed [60][75]