Boyd Gaming shared on Tuesday its financial report for third-quarter 2021. The operator has reported revenues of $843.1 million throughout the period, up 29.3% from $652.2 million in the same quarter last year, and 2.9% from pre-pandemic Q3 2019.
Moreover, the company reported an increased net income of $138.2 million for Q3 2021, compared to $38.1 million in 2020.
Based on its robust free cash flow, strong balance sheet and opportunities for continued growth, the board of directors has now authorized a $300 million share repurchase program. Boyd stated this program reflects the company’s confidence in the long-term prospects of its business.
The operator is calling Q3 2021 a record quarter, which not only exceeded quarter revenues of both 2019 and 2020, but also posted strong flow through an all-time high adjusted EBITDAR of more than $340 million. The quarterly EBITDAR was 42% higher than the third quarter of 2020, and 60% higher than Q3 2019.
“Since reopening our properties last year, we have made fundamental changes to our operating philosophy ‒ sharpening our focus on building loyalty with core customers while executing our business at a much higher level of efficiency,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming.
The changes have resulted in five consecutive quarters of strong performance, the CEO explained, including continued growth in visitation and spending among core customers. This, combined with a more efficient operating model, resulted in a third-quarter companywide revenue record, with a nearly 400-basis point improvement in operating margins.
The Nevada-based business has set new third quarter EBITDAR records in each of its three operating segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. Nationwide, of the 26 properties that were open the entire quarter 21 grew EBITDAR by double digits over last year, with 18 setting new third-quarter EBITDAR records.
On a segment-by-segment basis, Boyd’s casinos in the Midwest and South region were the main income drivers for Q3, with revenue reaching $569.8 million, up 22.9% from 2020. Las Vegas local casinos generated $231.3 million, up 35.2%, while Downtown Vegas casinos increased revenue 140.2% to $42.1 million.
Gaming was the most profitable gaming segment for the company during the quarter, which reported a 19.1% increase to $674.2 million. Food and beverage revenue increased 57.5% to $61.1 million, room revenue was up 64.7% to $44.3 million, and other revenue climbed 202.8% to $63.4 million.
Boyd’s year-to-date results for the first nine months of the year have seen the company reach $2.49 billion in revenue. This marks a 61.4% increase compared to the same point last year.
Discussing the quarter results in the Q3 earnings call, Keith Smith said the company has immediate plans for the next few weeks to expand its BoydPay cashless technology. This payment solution is now live at 11 properties in four states, and while initially focused on slot products, it will be now expanding to the majority of the company’s Vegas restaurants.
“Our goal is to create a tool that will make it easier for our guests to make wagers and pay for non-gaming amenities right from their smartphone,” said Smith. “We're making excellent progress toward this objective and expect BoydPay will become available at every Boyd Gaming property next year pending regulatory approvals.”
On top of its organic growth opportunities and land-based operations, the CEO says Boyd is well positioned for further gains in the digital space. “We view online gaming and online casinos in particular, as a strategic growth opportunity for our company,” he claimed. “Expanding our iGaming operations is a strategic priority for our company, and we will look to further build our online casino capabilities and geographic presence over time.”