Boyd Gaming (US:BYD)2020-04-29 03:45Financial Data and Key Metrics Changes - The company reported significant impacts from COVID-19, leading to the closure of all 29 properties from March 12 to March 18, 2020, which affected financial performance [10][11] - Prior to closures, the company was on track for strong first-quarter results, with 13 of 17 properties showing double-digit EBITDAR growth in the first two months [9] - Available cash at the end of March was $831 million, including $670 million drawn from the revolving credit facility, providing sufficient liquidity during the crisis [20] Business Line Data and Key Metrics Changes - The Las Vegas Locals segment was expected to post its 20th consecutive quarter of EBITDAR growth before the crisis [9] - The Downtown Las Vegas business was poised for a record quarter, indicating strong performance across various properties [9] Market Data and Key Metrics Changes - The company operates in 10 states, with each state likely to have different reopening timelines and health guidelines [13][14] - The majority of the company's business comes from local customers, reducing reliance on destination or convention business [15] Company Strategy and Development Direction - The company has suspended all non-essential spending, major capital projects, quarterly dividend payments, and share repurchase activities to navigate through the crisis [11][12] - Focus is on planning for reopening, reengaging team members, and serving customers while ensuring health and safety protocols are met [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain operations until reopening, citing strong liquidity and reduced cash requirements [20] - There is an expectation of pent-up demand once stay-at-home orders are lifted, with management hopeful that the business model focused on local visitation will aid recovery [15][39] Other Important Information - The company has taken steps to support team members during closures, including providing a full month of pay and benefits [10][12] - Management is exploring various options for liquidity and maintaining flexibility in financial strategies [52][53] Q&A Session Summary Question: What will social distancing measures look like when reopening? - Management indicated that social distancing will likely limit capacity in restaurants and gaming areas, with fewer people allowed in buildings initially [23][24] Question: How will properties be phased for reopening? - Management plans to open most properties simultaneously due to distinct customer bases, although Downtown properties may face different challenges [31] Question: What are the monthly cash requirements? - Monthly cash requirements are approximately $60 million, with operating expenses and corporate expenses running about $20 million [32][34] Question: Will there be permanent cost reductions post-crisis? - Management is exploring reengineering the business for efficiency but has not committed to specific permanent cost reductions yet [37][70] Question: What is the outlook for iGaming? - Management noted a significant increase in iGaming revenue and anticipates more states will consider iGaming to fill budget deficits [64][65] Question: What is the status of the Wilton Rancheria project? - The project is currently on hold due to the pandemic, with financing arrangements needed before proceeding [72][73] Question: How will the Las Vegas Locals market recover compared to the Strip? - Management believes the locals market will recover independently of the Strip, with a focus on local customers who are more comfortable returning [46][81]