Boyd Gaming revenues up 37% in Q2, driven by six newly acquired properties

Boyd Gaming Corporation reported Tuesday its financial results for the second quarter ended June 30, 2019. 

The company reported second-quarter revenues of $846.1 million, up 37.2% from $616.8 million in the same period of 2018. Net income amounted to $48.5 million in Q2, or $0.43 per share, compared to $38.9 million, or $0.34 per share, for the year-ago period.

Total Adjusted EBITDAR was $232.6 million in the second quarter of 2019, rising 42.3% from $163.4 million in the prior year. Adjusted Earnings for the period were $52.5 million, or $0.46 per share, compared to Adjusted Earnings of $44.0 million, or $0.38 per share, for the same period in 2018.

Results for the second quarter of 2019 include $228.5 million in revenues and $66.8 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. 

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "During the second quarter, our company made continued progress executing against our strategic growth initiatives. Despite a few isolated challenges, we delivered revenue, Adjusted EBITDAR and operating margin growth in every segment of our business, as our operating teams identified and drove profitable revenue growth and enhanced efficiencies.”

“We achieved strong growth at our newly acquired properties, significantly improving upon their solid standalone performances last year. And through ongoing marketing and operational initiatives, we are successfully growing visitation and expanding our customer base across the country. In all we are pleased with our progress, and remain confident we are well-positioned to capitalize on future growth opportunities," he remarked.

In the Las Vegas Locals segment, second-quarter 2019 revenues were $220.9 million, up from $220.0 million in the year-ago quarter. Second-quarter 2019 Adjusted EBITDAR was $71.4 million, up from $70.2 million. The segment recorded its highest second-quarter Adjusted EBITDAR in 14 years. 

Despite challenging year-over-year comparisons and lower hold at The Orleans, the segment achieved continued growth in revenues, Adjusted EBITDAR and operating margins. Adjusted EBITDAR grew at every major property in the segment during the quarter, excluding The Orleans.

In the Downtown Las Vegas segment, revenues were $64.5 million in the second quarter of 2019, up from $61.2 million in the year-ago period. Adjusted EBITDAR was a record of $15.9 million in the current year, an increase of 17.4% from $13.5 million in the second quarter of 2018. All three Downtown Las Vegas properties set Adjusted EBITDAR records for the second quarter. Segment results reflect strong gains in Hawaiian visitation and unrated play, as well as continued growth throughout the market.

In the Midwest & South segment, revenues were $560.7 million, up from $335.6 million in the second quarter of 2018.  Adjusted EBITDAR was $165.1 million, growing from $98.5 million in the year-ago period. Results for the segment include contributions from the company's newly acquired properties.

On a same-store basis, the Midwest & South segment posted its fifth consecutive quarter of improved revenues, Adjusted EBITDAR and operating margins, with Adjusted EBITDAR gains at a majority of the company's same-store regional properties. On a combined basis, the company's newly acquired properties delivered revenue growth and strong Adjusted EBITDAR and margin increases over their standalone results in the prior year.