Boyd Gaming's revenue reaches USD 599.9M in Q2

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Strong performances continued throughout our operations during the second quarter, reinforcing our confidence in the long-term direction of our Company. Our Las Vegas Locals business achieved its best second-quarter results in nearly 10 years, driven by ongoing improvements to our operations and a strong regional economy. . And despite softness in a few Louisiana markets, Adjusted EBITDA grew at a majority of our regional properties, including strong results throughout the upper Midwest."

Smith continued: "We recommenced our capital return program during the quarter, making our first share repurchases and dividend payments in nearly a decade.  To date we have repurchased nearly 600,000 shares, and in July we made a dividend payment of 5 cents per share.  At the same time, our strong and growing free cash flow allowed us to continue investing in our business while deleveraging our balance sheet, as we paid down $74 million in debt in the quarter.  In all, we continue to make great progress executing our strategy to create long-term value for our shareholders."

Boyd Gaming reported second-quarter 2017 net revenues of USD 599.9M, an increase of 10.1% from $544.9 million in the year-ago quarter.

Income from continuing operations, net of tax, for the second quarter was $27.6 million, or $0.24 per share, up from $11.3 million, or $0.10 per share, in the prior-year second quarter.  The Company reported net income, including discontinued operations, of $48.6 million, or $0.42 per share, for the second quarter of 2017, compared to $30.0 million, or $0.26 per share, for the year-ago period. Results for the current year include the operations of Aliante, acquired by the Company on September 27, 2016, as well as Cannery and Eastside Cannery, acquired on December 20, 2016. Discontinued operations for the current quarter includes the Company's share of a payment received by Borgata Hotel Casino & Spa in settlement of its outstanding property tax appeals.  The Company sold its interest in Borgata during the third quarter of 2016.

Total Adjusted EBITDA(1) was $151.2 million, up 9.6% from $137.9 million in the second quarter of 2016. Adjusted Earnings(1) for the second quarter 2017 were $30.3 million, or $0.26 per share, compared to Adjusted Earnings of $18.1 million, or $0.16 per share, for the same period in 2016.  Adjusted EBITDA and Adjusted Earnings exclude discontinued operations.

Key Operations Review:

Las Vegas Locals 

In the Las Vegas Locals segment, second-quarter 2017 net revenues were $214.2 million, up from $154.9 million in the year-ago quarter.  Second-quarter 2017 Adjusted EBITDA rose to $63.1 million, compared to $43.2 million in the second quarter of 2016, as every property in the segment grew Adjusted EBITDA and operating margins during the quarter.  Current quarter results include a full quarter of contributions from Aliante, Cannery and Eastside Cannery.

On a same-store basis, the segment achieved its highest second-quarter revenues and Adjusted EBITDA in nearly 10 years. Same-store Adjusted EBITDA grew at a double-digit rate, as operating margins rose more than 330 basis points.  Results reflect continued operating efficiencies, improvements to marketing programs and a strong regional economy. 

For the second consecutive quarter, the Company's three new properties grew Adjusted EBITDA at a double-digit pace over their 2016 standalone results, as their combined operating margins improved more than 400 basis points.  Growth was driven by the successful execution of synergy and growth opportunities, as well as strong economic conditions.

Downtown Las Vegas
In the Downtown Las Vegas segment, net revenues were $59.6 million in the second quarter of 2017, up slightly from $59.2 million in the year-ago period.  Adjusted EBITDA was $12.6 million, compared to $14.3 million in the second quarter of 2016.

The decline in Adjusted EBITDA in the segment was attributable to a room renovation project at the California, which began late in the second quarter and reduced room inventory by nearly 40% at the property.  Despite this disruption, positive operating trends continued during the quarter, with strength in the Company's Hawaiian customer segments and further increases in unrated play.

Midwest and South

In the Midwest and South segment, net revenues were $326.1 million, compared to $330.7 million in the second quarter of 2016.  Adjusted EBITDA was $93.7 million, versus $94.7 million in the year-ago period.

A majority of properties in the segment achieved year-over-year Adjusted EBITDA growth, led by strong results at Treasure Chest, Blue Chip and our two Iowa properties.  These gains were offset by softness at Amelia Belle and Evangeline Downs, due to localized economic weakness, as well as heightened promotional activity in the Lake Charles market, which impacted Delta Downs.