The Orleans and Aliante lead the company's nearly 34% total revenues increase

Boyd's Las Vegas locals see highest performance since 2005 in Q3

The Las Vegas Locals segment achieved its highest third-quarter Adjusted EBITDAR since 2005, led by record performances at The Orleans and Aliante (photo).
2019-10-23
Reading time 2:46 min
Total revenues amounted to $819.6 million, and net income of $39.4 million more than tripled during the third quarter. Downtown Las Vegas properties saw record results for the fourth consecutive quarter, and Boyd's five newly acquired properties delivered Adjusted EBITDAR growth of nearly 6%.

Boyd Gaming Corporation reported Tuesday financial results for the third quarter ended September 30, 2019, with total revenues of $819.6 million, up nearly 34% from $612.2 million in the third quarter of 2018. The company reported net income of $39.4 million, or $0.35 per share, up 233% compared to $11.8 million, or $0.10 per share, for the year-ago period.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "In the third quarter, our diversified nationwide portfolio continued to deliver growth in same-store revenues, Adjusted EBITDAR and margins, led by another outstanding quarter by our Las Vegas Locals business. Our newly acquired properties produced strong results under our ownership, with Adjusted EBITDAR growth of nearly 6% and margin improvement of more than 200 basis points on a combined basis. And we substantially expanded our sports betting partnership with FanDuel Group, opening sports books at four new locations in the Midwest while successfully launching a market-leading mobile betting app in Pennsylvania. Our company continues to deliver strong operating results, and we remain focused on executing a disciplined, balanced approach to creating long-term shareholder value."

Total Adjusted EBITDAR was $213.5 million in the third quarter of 2019, increasing by 43% from $148.8 million in Q3 2018. Adjusted Earnings for the third quarter of 2019 were $44.8 million, or $0.39 per share, compared to Adjusted Earnings of $26.7 million, or $0.23 per share, for the same period in 2018.

Results for the third quarter of 2019 include $212.9 million in revenues and $62.1 million in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on October 15, 2018; and Valley Forge Casino Resort, acquired by the company on September 17, 2018.  

In the Las Vegas Locals segment, third-quarter 2019 revenues were $213.3 million, up 2.2% from $208.8 million in the year-ago quarter. Third-quarter 2019 Adjusted EBITDAR increased 6.7% to $64.1 million, up from $60.0 million. The segment achieved its highest third-quarter Adjusted EBITDAR since 2005, led by record performances at The Orleans and Aliante. Adjusted EBITDAR growth was driven by broad-based increases in gaming and hotel revenues, as well as margin improvement of nearly 130 basis points.

In the Downtown Las Vegas segment, revenues were $60.6 million in the third quarter of 2019, up 2.5% from $59.2 million in the year-ago period.  Adjusted EBITDAR was a third-quarter record $11.9 million, an increase of 4.7% from $11.4 million. The segment delivered record results for the fourth consecutive quarter despite disruption from construction near the company's downtown properties. Results benefited from continued strength in the company's Hawaiian customer segments, as well as strong pedestrian traffic throughout the downtown area. 

In the Midwest & South segment, revenues were $545.7 million, up from $344.3 million in the third quarter of 2018.  Adjusted EBITDAR was $156.2 million, compared to $97.8 million in the year-ago period. Results for the segment include contributions from the company's newly acquired properties.

On a combined basis, the company's five newly acquired properties delivered Adjusted EBITDAR growth of nearly 6%, as operating margins improved more than 200 basis points from their standalone results in the prior year. Same-store results were negatively impacted by flooding and property closures caused by tropical storms along the Gulf Coast in July and September. Absent these weather impacts, same-store results in the segment slightly exceeded the prior-year performance.

For the full year 2019, Boyd Gaming reaffirms its previously provided guidance of total Adjusted EBITDAR of $885 million to $910 million.

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