Boyd Gaming Reports Second-Quarter 2021 Results
Strong Operating Momentum Continues with All-Time Records for Companywide Adjusted EBITDAR and Operating Margins; Net Income Reaches $113.7 Million

LAS VEGAS, July 27, 2021 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2021.  

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Our second-quarter results reflect the strength of our operating strategy as our streamlined cost structure, enhanced capabilities and focus on our core customers all continue to drive strong results throughout our portfolio. We achieved record results for Adjusted EBITDAR and operating margins, with Companywide margins exceeding 43% and Las Vegas Locals margins approaching 57%.  During the quarter our business continued to strengthen, as gaming revenues surpassed 2019 levels. We are encouraged that the strength from the first half of the year has carried into July, and are confident in our ability to continue delivering robust levels of EBITDAR and margin performance.  These outstanding results are a tribute to the hard work of the entire Boyd Gaming team and their shared dedication to our transformed operating model, which will continue to create long-term value for our stakeholders."

Boyd Gaming reported second-quarter 2021 revenues of $893.6 million, up from $209.9 million in the second quarter of 2020. The Company reported net income of $113.7 million, or $1.00 per share, for the second quarter of 2021, compared to a net loss of $108.5 million, or $0.96 per share, for the year-ago period.

The Company's second-quarter 2021 pretax income was impacted by charges of $65.5 million related to early extinguishments of debt.  Results for the second quarter of 2020 were impacted by state-mandated closures of all of the Company's properties nationwide for much of the year-ago quarter.

Total Adjusted EBITDAR(1) was $385.4 million in the second quarter of 2021, up from $16.1 million in the second quarter of 2020. Adjusted Earnings(1) for the second quarter of 2021 were $175.2 million, or $1.54 per share, compared to an Adjusted Loss of $110.5 million, or $0.98 per share, for the same period in 2020.  Companywide Adjusted EBITDAR margins after corporate expense were 43.1% in the second quarter of 2021.

(1)

See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

Operations Review(2)
Due to the impact of state-mandated closures on the Company's operations in the second quarter of 2020, the Company is providing segment results for the second quarters of 2021, 2020 and 2019.

Revenues


Three Months Ended June 30,












% Change

($ amounts in thousands)


2021


2020


2019


2021 vs
2020


2021 vs
2019

Las Vegas Locals


$

236,095


$

48,691


$

220,948


384.9%


6.9%

Downtown Las Vegas



38,780



4,664



64,466


731.5%


(39.8)%

Midwest & South



618,727



156,504



560,718


295.3%


10.3%

Total Revenues


$

893,602


$

209,859


$

846,132


325.8%


5.6%




Adjusted EBITDAR


Three Months Ended June 30,












% Change

($ amounts in thousands)


2021


2020


2019


2021 vs
2020


2021 vs
2019

Las Vegas Locals


$

133,570


$

2,858


$

71,449


4573.5%


86.9%

Downtown Las Vegas



15,421



(7,220)



15,902


N/A


(3.0)%

Midwest & South



259,992



32,655



165,064


696.2%


57.5%

Property Adjusted EBITDAR


$

408,983


$

28,293


$

252,415


1345.5%


62.0%




Adjusted EBITDAR Margin


Three Months Ended June 30,












Basis Point Change



2021


2020


2019


2021 vs
2020


2021 vs
2019

Las Vegas Locals



56.6%



5.9%



32.3%


5,071 bps


2,424 bps

Downtown Las Vegas



39.8%



-154.8%



24.7%


N/A


1,510 bps

Midwest & South



42.0%



20.9%



29.4%


2,116 bps


1,258 bps

Property Adjusted EBITDAR Margin



45.8%



13.5%



29.8%


3,229 bps


1,594 bps

During the second quarter of 2021, all three operating segments set all-time records for operating margins, while the Las Vegas Locals and Midwest & South segments also achieved all-time records for Adjusted EBITDAR. Of the Company's 26 open properties, 25 grew Adjusted EBITDAR at double-digit rates from the second quarter of 2019. 

(2)

The Company's press release dated July 28, 2020, includes a detailed listing of property reopening dates in the second quarter of 2020. As of the date of this press release, two Boyd Gaming properties remain closed: Eastside Cannery in the Las Vegas Locals segment, and Main Street Station in the Downtown Las Vegas segment.  In the Las Vegas Locals segment, Eldorado Casino was closed until its sale on December 10, 2020.

Balance Sheet Statistics
As of June 30, 2021, Boyd Gaming had cash on hand of $334.5 million, and total debt of $3.39 billion

During the quarter, the Company retired $1.45 billion in Senior Notes due 2026 using a combination of proceeds from a $900 million offering of Senior Notes due 2031 and cash on hand.

Conference Call Information
Boyd Gaming will host a conference call to discuss its second-quarter 2021 results today, July 27, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 7324895.  Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call. 

The conference call will also be available live on the Internet at www.boydgaming.com, or: https://www.webcaster4.com/Webcast/Page/964/42056.

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, July 27, beginning at 7:00 p.m. Eastern and continuing through Tuesday, August 3, at 11:59 p.m. Eastern.  The conference number for the replay will be 10158428.  The replay will also be available on the Internet at www.boydgaming.com.

BOYD GAMING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months

Ended June 30,



Six Months

 Ended June 30,


(In thousands, except per share data)


2021



2020



2021



2020


Revenues

















Gaming


$

727,462



$

185,111



$

1,345,388



$

694,876


Food & beverage



57,428




10,661




101,540




100,545


Room



39,077




6,918




65,067




53,645


Other



69,635




7,169




134,914




41,318


Total revenues



893,602




209,859




1,646,909




890,384


Operating costs and expenses

















Gaming



259,378




76,761




491,491




315,461


Food & beverage



46,819




16,745




85,732




106,584


Room



14,207




5,097




26,339




28,082


Other



44,487




2,169




86,394




23,616


Selling, general and administrative



90,473




60,268




180,480




173,698


Master lease rent expense (a)



26,175




25,413




52,090




50,078


Maintenance and utilities



31,157




21,654




59,388




54,800


Depreciation and amortization



67,279




69,213




131,746




136,178


Corporate expense



34,716




13,963




58,031




38,921


Project development, preopening and writedowns



1,454




3,825




2,869




7,333


Impairment of assets












171,100


Other operating items, net



11,115




1,099




12,272




8,642


Total operating costs and expenses



627,260




296,207




1,186,832




1,114,493


Operating income (loss)



266,342




(86,348)




460,077




(224,109)


Other expense (income)

















Interest income



(455)




(569)




(964)




(1,008)


Interest expense, net of amounts capitalized



55,131




59,208




113,021




111,053


Loss on early extinguishments and modifications of debt



65,475




412




65,475




587


Other, net



237




115




2,169




(229)


Total other expense, net



120,388




59,166




179,701




110,403


Income (loss) before income taxes



145,954




(145,514)




280,376




(334,512)


Income tax (provision) benefit



(32,225)




36,970




(64,486)




78,409


Net income (loss)


$

113,729



$

(108,544)



$

215,890



$

(256,103)



















Basic net income (loss) per common share


$

1.00



$

(0.96)



$

1.90



$

(2.26)


Weighted average basic shares outstanding



113,779




113,257




113,703




113,482



















Diluted net income (loss) per common share


$

1.00



$

(0.96)



$

1.89



$

(2.26)


Weighted average diluted shares outstanding



114,040




113,257




114,005




113,482


__________________________________________

(a) Rent expense incurred by those properties subject to a master lease with a real estate investment trust.

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Net Income (Loss)

(Unaudited)




Three Months

Ended June 30,



Six Months

Ended June 30,


(In thousands)


2021



2020



2021



2020


Total Revenues by Reportable Segment

















Las Vegas Locals


$

236,095



$

48,691



$

418,518



$

229,455


Downtown Las Vegas



38,780




4,664




60,213




58,777


Midwest & South



618,727




156,504




1,168,178




602,152


Total revenues


$

893,602



$

209,859



$

1,646,909



$

890,384



















Adjusted EBITDAR by Reportable Segment

















Las Vegas Locals


$

133,570



$

2,858



$

224,212



$

49,620


Downtown Las Vegas



15,421




(7,220)




17,861




2,736


Midwest & South



259,992




32,655




478,141




138,484


Property Adjusted EBITDAR



408,983




28,293




720,214




190,840


Corporate expense, net of share-based compensation expense (a)



(23,588)




(12,171)




(42,222)




(30,285)


Adjusted EBITDAR



385,395




16,122




677,992




160,555


Master lease rent expense (b)



(26,175)




(25,413)




(52,090)




(50,078)


Adjusted EBITDA



359,220




(9,291)




625,902




110,477



















Other operating costs and expenses

















Deferred rent



207




227




414




449


Depreciation and amortization



67,279




69,213




131,746




136,178


Share-based compensation expense



12,823




2,693




18,524




10,884


Project development, preopening and writedowns



1,454




3,825




2,869




7,333


Impairment of assets












171,100


Other operating items, net



11,115




1,099




12,272




8,642


Total other operating costs and expenses



92,878




77,057




165,825




334,586


Operating income (loss)



266,342




(86,348)




460,077




(224,109)


Other expense (income)

















Interest income



(455)




(569)




(964)




(1,008)


Interest expense, net of amounts capitalized



55,131




59,208




113,021




111,053


Loss on early extinguishments and modifications of debt



65,475




412




65,475




587


Other, net



237




115




2,169




(229)


Total other expense, net



120,388




59,166




179,701




110,403


Income (loss) before income taxes



145,954




(145,514)




280,376




(334,512)


Income tax (provision) benefit



(32,225)




36,970




(64,486)




78,409


Net income (loss)


$

113,729



$

(108,544)



$

215,890



$

(256,103)









__________________________________________

(a) Reconciliation of corporate expense:





Three Months

Ended June 30,



Six Months

Ended June 30,


(In thousands)


2021



2020



2021



2020


Corporate expense as reported on Condensed Consolidated
   Statements of Operations


$

34,716



$

13,963



$

58,031



$

38,921


Corporate share-based compensation expense



(11,128)




(1,792)




(15,809)




(8,636)


Corporate expense, net, as reported on the above table


$

23,588



$

12,171



$

42,222



$

30,285



(b) Rent expense incurred by those properties subject to a master lease with a real estate investment trust.

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliations of Net Income (Loss) to Adjusted Earnings (Loss)

and Net Income (Loss) Per Share to Adjusted Earnings (Loss) Per Share 

(Unaudited)




Three Months

Ended June 30,



Six Months

Ended June 30,


(In thousands, except per share data)


2021



2020



2021



2020


Net income (loss)


$

113,729



$

(108,544)



$

215,890



$

(256,103)


Pretax adjustments:

















Project development, preopening and writedowns



1,454




3,825




2,869




7,333


Impairment of assets












171,100


Other operating items, net



11,115




1,099




12,272




8,642


Loss on early extinguishments and modifications of debt



65,475




412




65,475




587


Other, net



237




115




2,169




(229)


Total adjustments



78,281




5,451




82,785




187,433



















Income tax effect for above adjustments



(16,848)




(623)




(17,851)




(44,792)


Impact of tax valuation allowance






(6,824)







568


Adjusted earnings (loss)


$

175,162



$

(110,540)



$

280,824



$

(112,894)



















Net income (loss) per share, diluted


$

1.00



$

(0.96)



$

1.89



$

(2.26)


Pretax adjustments:

















Project development, preopening and writedowns



0.01




0.04




0.03




0.06


Impairment of assets












1.51


Other operating items, net



0.10




0.01




0.11




0.08


Loss on early extinguishments and modifications of debt



0.58







0.57




0.01


Other, net









0.02





Total adjustments



0.69




0.05




0.73




1.66



















Income tax effect for above adjustments



(0.15)




(0.01)




(0.16)




(0.39)


Impact of tax valuation allowance






(0.06)








Adjusted earnings (loss) per share, diluted


$

1.54



$

(0.98)



$

2.46



$

(0.99)



















Weighted average diluted shares outstanding



114,040




113,257




114,005




113,482


Non-GAAP Financial Measures
Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, EBITDAR (EBITDA further adjusted for rent expense associated with REIT master leases), Adjusted EBITDAR, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance.  We do not provide a reconciliation of forward-looking non-GAAP financial measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.

EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR
EBITDA and EBITDAR are commonly used measures of performance in our industry that we believe, when considered with measures calculated in accordance with accounting principles generally accepted in the United States (GAAP), provide our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA and EBITDAR when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA or Adjusted EBITDAR. We have chosen to provide this information to investors to enable them to perform comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported these measures to our investors and believe that the continued inclusion of Adjusted EBITDA and Adjusted EBITDAR provides consistency in our financial reporting. We use Adjusted EBITDA and Adjusted EBITDAR in this press release because we believe this information is useful to investors in allowing greater transparency related to significant measures used by our management in their financial and operational decision-making. Adjusted EBITDA and Adjusted EBITDAR are among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA and Adjusted EBITDAR as measures in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA and Adjusted EBITDAR are also used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, share-based compensation expense, project development, preopening and writedown expenses, impairments of assets, loss on early extinguishments and modifications of debt and other operating items, net. Adjusted EBITDAR reflects Adjusted EBITDA further adjusted for rent expense associated with master leases with a real estate investment trust.

Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income before project development, preopening and writedown expenses, impairments of assets, other items, net, gain or loss on early extinguishments and modifications of debt, and other non-recurring adjustments, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry.

Limitations on the Use of Non-GAAP Measures
The use of EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the historical GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, EBITDAR, Adjusted EBITDAR, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward-looking Statements and Company Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding the impacts of COVID-19 on the Company, economic conditions, operating strategy, efficient flow, growth initiatives, visitation, spend-per-visit, status, positive trends continuing into July, streamlined cost structure and enhanced capabilities continue to drive strong results, the Company's confidence in the long-term direction of the Company and its ability to keep delivering robust levels of EBITDAR and margin performance, the continued creation of long-term value for the Company's stakeholders, expectations of the Company's online casino offerings and construction projects. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement.  These risks and uncertainties include, but are not limited to: the ongoing uncertainty about COVID-19, its duration and impact, the possibility of future closures and length of closures of the Company's properties, negative perceptions of visiting properties that have large groups of people, the cost to comply with any mandated health requirements associated with the virus, the extent of consumer demand, the negative effects on the Company's workforce, suppliers, contractors and other partners, as well as the impact on the customer experience of necessary health and safety measures implemented at the direction of State and local governments and gaming regulators.  Risks also include fluctuations in the Company's operating results; the results of operations of its properties in various markets; the political climate and its effects on consumer spending and its impact on the travel industry; the state of the economy and its effect on consumer spending and the Company's results of operations; the impact and effects of the local economies in the markets where the Company has operations; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Boyd Gaming
Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 28 gaming entertainment properties in 10 states.  The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation's leading sports-betting and iGaming operator.  With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering its guests an outstanding entertainment experience, delivered with unwavering attention to customer service.  For additional Company information and press releases, visit www.boydgaming.com.

SOURCE Boyd Gaming Corporation

For further information: Financial Contact: Josh Hirsberg, (702) 792-7234, joshhirsberg@boydgaming.com; Media Contact: David Strow, (702) 792-7386, davidstrow@boydgaming.com