On July 25, 2024, Boyd Gaming Corp (BYD, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Boyd Gaming Corp is a multi-jurisdictional gaming company operating wholly-owned gaming entertainment properties across several states, including Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company’s business segments are divided into Las Vegas Locals, Downtown Las Vegas, Midwest and South, and Online, with the Midwest and South segment generating the majority of sales.
Performance Overview
Boyd Gaming Corp reported second-quarter 2024 revenues of $967.5 million, surpassing the analyst estimate of $909.06 million. This represents an increase from $917.0 million in the second quarter of 2023, primarily driven by growth in the Online segment. However, the company’s net income for the quarter was $139.8 million, or $1.47 per share, which fell short of the estimated earnings per share of $1.51 and was down from $192.5 million, or $1.89 per share, in the same period last year. The previous year's results were positively impacted by one-time tax benefits, resulting in a lower tax rate of approximately 5% compared to the current quarter's 24%.
Segment Performance and Challenges
In the Las Vegas Locals segment, market conditions improved from the first quarter, but properties like the Orleans and Gold Coast continued to face competitive pressures. Downtown Las Vegas saw strengthened performance both sequentially and year-over-year, benefiting from increased Hawaiian visitation and recent property investments. The Midwest & South segment experienced slight revenue growth, supported by core customer play and the opening of a new land-based casino at Treasure Chest in Louisiana.
The Online segment showed significant year-over-year growth in both revenue and Adjusted EBITDAR, driven by strong performance in FanDuel’s sports-betting operations. The Managed & Other segment also performed well, with continued strong results from Sky River Casino in northern California.
Financial Achievements
Boyd Gaming Corp maintained operating efficiencies with property margins of nearly 41% during the quarter. The company also continued its commitment to returning capital to shareholders, with nearly $200 million in share repurchases and dividend distributions in the second quarter.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $967.5 million | $917.0 million |
| Net Income | $139.8 million | $192.5 million |
| Earnings Per Share | $1.47 | $1.89 |
| Adjusted EBITDAR | $344.2 million | $351.4 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Boyd Gaming had cash on hand of $280.8 million and total debt of $3.0 billion. The company paid a quarterly cash dividend of $0.17 per share on July 15, 2024, and repurchased $176 million in shares during the second quarter, leaving approximately $545 million remaining under the current share repurchase authorization.
Analysis and Conclusion
Boyd Gaming Corp’s second-quarter performance highlights both growth and challenges. While the company exceeded revenue expectations, it fell short on earnings per share due to higher tax rates and competitive pressures in certain segments. The strong performance in the Online segment and the successful opening of the new land-based casino at Treasure Chest are positive indicators for future growth. However, the company must address competitive pressures in the Las Vegas Locals segment to sustain long-term growth.
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Explore the complete 8-K earnings release (here) from Boyd Gaming Corp for further details.
