Boyd Gaming (US:BYD)2023-04-25 23:59Financial Data and Key Metrics Changes - Company-wide revenues reached $964 million, and EBITDA exceeded $367 million, both setting first-quarter records with operating margins exceeding 38% [7][20] - Excluding contributions from the Online and Managed segments, property-level margins were 40%, consistent with historical performance [20] Business Line Data and Key Metrics Changes - Las Vegas Locals segment achieved record revenues and EBITDAR, with revenues and EBITDAR each growing about 6%, and operating margins at 52.5% [8] - Online segment generated nearly $21 million in EBITDAR, more than double the prior year, driven by new market launches and growth in existing markets [14] - Managed & Other segment benefited from strong performance at Sky River, generating $20 million in management fees during the quarter [15][22] Market Data and Key Metrics Changes - Las Vegas saw over 40 million visitors in the trailing 12 months, a 16% increase year-over-year, with average spending per visit exceeding $1,100, up nearly 35% from 2019 [9] - Convention business rose 86% over the trailing 12 months, contributing to strong visitation and spending trends [10] Company Strategy and Development Direction - The company focuses on growing play from core customers and managing operations efficiently, which has led to consistent performance and record results [6] - Investments in properties and online operations are expected to drive future growth, with a $100 million expansion of Treasure Chest Casino planned for next spring [17][18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about business direction despite economic uncertainties, citing stable consumer behavior and growth in online and management fee segments [16] - The company anticipates continued strong performance from core customers and ongoing returns from property investments [16] Other Important Information - The company plans to continue its $100 million quarterly share repurchase program and has returned nearly $800 million to shareholders since late 2021 [23][24] - The company is committed to ESG initiatives, focusing on reducing carbon emissions and promoting diversity and inclusion [18] Q&A Session Summary Question: Margins in the Midwest and South segment - Management noted stability in Louisiana and Mississippi markets, with most margin decline attributed to these states [25][26] Question: Guidance for the online segment - Management expects seasonality in online performance, with Q1 being strong and Q2 and Q3 typically weaker [27][28] Question: Land-based casino performance in April - Trends in early April were consistent with Q1, with good growth from core customers [31][32] Question: Year-over-year performance in online - Management indicated that the online segment's performance is expected to be flat for the remainder of the year, influenced by customer acquisition costs [33][34] Question: Labor environment and margin expectations - Management is comfortable with current margins despite cost pressures and expects to maintain them moving forward [42][43] Question: Promotional activity in Louisiana and Mississippi - Management reported rational promotional activity in these markets, with no unusual changes noted [83][84] Question: M&A activity - Management indicated no current plans for additional acquisitions following the purchase of Boyd Interactive, focusing instead on organic growth [86] Question: Impact of convention events on business - Management stated that increased visitation from conventions benefits both the locals and downtown segments [88]