Boyd Gaming sees 36.5 percent revenue growth in 1Q 2019

Boyd Gaming reported on Thursday financial results for the first quarter ended March 31, 2019.

According to the report, first-quarter revenues amounted to $827.3 million, 36.5% growth against the $606.1 million in the first quarter of 2018. Net income totaled $45.5 million, or $0.40 per share, compared to $41.4 million, or $0.36 per share, for the year-ago period.

The company's Las Vegas locals achieved the highest first-quarter adjusted EBITDAR in 12 Years. Same-store revenues, adjusted EBITDAR and operating margins were up in all segments during this period.

"Both of our Nevada segments continued to achieve solid growth in profitable revenues, Adjusted EBITDAR and operating margins, driven by a robust regional economy and operational and marketing refinements," Keith Smith, President and Chief Executive Officer of Boyd Gaming, said.

The company's Midwest and South business produced its fourth consecutive quarter of same-store Adjusted EBITDAR gains, "overcoming severe winter weather early in the quarter with an exceptionally strong March performance," Smith added.

"We also made substantial progress integrating our recent acquisitions and realizing synergies, positioning us to take advantage of the long-term potential of our new properties," Smith said. "In all, we remain confident in the direction of our company, and committed to creating long-term value for our shareholders."

Total Adjusted EBITDAR was $223.0 million in the first quarter of 2019, up 39.0% from $160.5 million in the first quarter of 2018. Adjusted Earnings for the first quarter of 2019 were $48.9 million, or $0.43 per share, compared to Adjusted Earnings of $45.2 million, or $0.39 per share, for the same period in 2018.

Results for the first quarter of 2019 include $213.0 million in revenues and $59.5 million in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; Valley Forge Casino Resort, acquired by the Company on September 17, 2018; and Lattner Entertainment, acquired on June 1, 2018.

Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, first-quarter 2019 revenues were $222.9 million, up from $222.2 million in the year-ago quarter. First-quarter 2019 Adjusted EBITDAR was $74.2 million, improving 4.5% from $71.0 million in the first quarter of 2018.

A strong regional economy, as well as continued operational efficiencies and marketing refinements, contributed to revenue and Adjusted EBITDAR growth across the Las Vegas Locals segment. Operating margins improved more than 130 basis points year-over-year, as the segment recorded its highest first-quarter Adjusted EBITDAR since 2007.

Downtown Las Vegas

In the Downtown Las Vegas segment, revenues were $63.0 million in the first quarter of 2019, growing from $60.5 million in the year-ago period. Adjusted EBITDAR was $15.0 million in the first quarter of 2019, increasing 13.7% from $13.2 million in the year-ago quarter.

Strong revenue and EBITDAR growth at all three downtown properties drove a record first-quarter Adjusted EBITDAR performance for the segment, as operating margins rose nearly 200 basis points. Segment operations continued to benefit from strength in the Company's Hawaiian customer base, as well as long-term growth in visitation to the downtown area.

Midwest and South

In the Midwest and South segment, revenues were $541.4 million, up from $323.5 million in the first quarter of 2018. Adjusted EBITDAR was $156.5 million, growing from $94.2 million in the year-ago period. Results for the segment include contributions from the Company's newly acquired properties.

Despite severe winter weather, the segment achieved its fourth consecutive quarter of same-store Adjusted EBITDAR growth, driven by operational and marketing refinements, as well as healthy economic conditions across the Company's regional markets. On a combined basis, the Company's newly acquired properties also produced strong results for the quarter, growing both revenue and Adjusted EBITDAR compared to their year-ago performance on a standalone basis.

Balance Sheet Statistics

As of March 31, 2019, Boyd Gaming had cash on hand of $247.7 million, and total debt of $4.0 billion.