Boyd Gaming (US:BYD)2025-04-24 22:02Financial Data and Key Metrics Changes - Revenues for the quarter were nearly $1 billion, while EBITDAR was $338 million, maintaining property level margins of 40%, consistent with the prior year [5][19] - The company reported a 28% increase in weather-impacted days compared to last year, yet managed to grow revenues and EBITDAR in the Midwest and South segment [10][19] - The online segment grew EBITDAR by nearly 14% year over year, driven by stable performance from market access agreements and strong growth from Boyd Interactive [11] Business Line Data and Key Metrics Changes - In the Las Vegas Locals segment, revenues were nearly even with the prior year, while EBITDAR was down less than 4%, primarily due to competitive pressures at the Orleans [8] - Downtown Las Vegas achieved both revenue and EBITDAR growth during the first quarter, with solid visitation from Hawaii and healthy pedestrian traffic along Fremont Street [9] - The managed and other business saw strong growth driven by management fees from Sky River Casino, with ongoing expansion activities set to enhance future growth [12] Market Data and Key Metrics Changes - Customer trends remained consistent through April, with no meaningful shifts in consumer behavior or spending patterns observed thus far in the second quarter [6][20] - The company noted that Hawaiian visitation to the downtown segment was temporarily impacted last year by higher airfares related to the Super Bowl, creating a favorable comparison for the first quarter of this year [9] Company Strategy and Development Direction - The company is focused on enhancing competitiveness through property renovations and expansions, including a $750 million resort project in Norfolk, Virginia, scheduled for completion in late 2027 [17][18] - Capital investment programs are aimed at creating long-term shareholder value, with a commitment to return capital through stock repurchases and dividends [19][26] - The company remains cautious about M&A opportunities, emphasizing a disciplined approach to acquisitions that align with strategic goals [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the company, citing a strong balance sheet and diversified business as key strengths in navigating economic uncertainty [7][20] - The company acknowledged the potential for increased costs due to tariffs but indicated that current budgets would not be significantly impacted [49][52] Other Important Information - The company repurchased $328 million in stock during the first quarter and paid $15 million in dividends, with plans to continue repurchasing $100 million in shares per quarter [19][26] - The company is actively managing operating expenses and exploring efficiencies to mitigate inflationary pressures [96] Q&A Session Summary Question: Plans for Paradise Riverboat Casino - The company has a list of development projects prioritized based on expected returns, with plans to upgrade older riverboats over time [33][34] Question: Outlook for Core and Retail Customers - Management sees core customer trends continuing to grow, with retail customers performing consistently, despite some noise from external factors [38][39] Question: Buyback Strategy and Timing - The company balanced its buyback strategy with maintaining a strong balance sheet, taking advantage of favorable stock prices in Q1 while remaining cautious moving forward [44][46] Question: Impact of Tariffs on Capital Projects - The company evaluated capital projects for potential deferral and identified sources to mitigate tariff impacts, ensuring budgets remain intact [49][50] Question: Competitive Landscape in Locals Market - The locals market has seen slight shrinkage, but the company has outperformed the overall market, particularly excluding the Orleans property [78][80] Question: Hawaiian Travel and Weather Impact - The company estimated a $5 million impact from weather on EBITDA for the quarter, with Hawaiian travel normalized compared to last year [74][71] Question: Non-Gaming Amenities Spending - Spending on food and beverage and hotel services is up on a cash basis, with no significant declines noted in non-gaming amenities [66] Question: Canadian Travel Impact - Canadian visitation is a minor segment for the company, accounting for less than 0.1% of business, thus not significantly impacting overall performance [103] Question: Future of iGaming Platform - The company aims to grow its Stardust iGaming platform modestly, focusing on markets where it operates, without significant acquisitions planned [90][91]