Operator News
US – Boyd Gaming reports 17 per cent loss in revenue for first quarter
By Phil - 30 April 2020
Boyd Gaming is hoping ‘pent-up demand’ among its customers will see it bounce back from a net loss of $18.3m for the first quarter of 2020, compared to net income of $45.5m for the year-ago period.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “People are at home. People are needing to get out. People are looking for an escape and … we will be part of that escape. The financial damage of COVID-19 can and will be repaired over time, the same cannot be said of life’s lost to this tragedy. Prior to the closures, our Las Vegas local segment was well on its way to posting its 20th straight quarter of EBITDAR growth with year-to-date revenue, EBITDAR and margin improvement across our Southern Nevada properties. Our downtown Las Vegas business was poised for another record quarter, and we saw strong performances across our Midwest and South properties, with 13 of our 17 properties producing double-digit EBITDA growth through the first two months of the year.”
During the period from March 12 through March 18, 2020, the company was required to close all 29 of its properties nationwide under state and local orders aimed at mitigating the spread of COVID-19. As of April 28, 2020, all Boyd Gaming properties remain closed to the public.
Boyd reported first-quarter 2020 revenues of $680.5m, down from $827.3m in the first quarter of 2019. Total Adjusted EBITDAR was $144.4m in the first quarter of 2020, compared to $223m in the first quarter of 2019.
Mr. Smith explained: “During these unprecedented times, our highest priority is the health and safety of our team members, customers and communities. We want to express our gratitude to our first responders and health care workers, who have put their own health and well-being at risk to protect us all.
“We are fully supportive of the actions taken by state and local officials to help slow the spread of COVID-19, including the closure of our properties nationwide. We look forward to re-opening our properties ? following strict safety protocols that will meet or exceed the requirements set forth by health officials ? when state authorities determine it is appropriate to do so.”
Mr. Smith continued: “Prior to the closure of all of our properties in mid-March, our company began the first quarter with a strong performance, posting two consecutive months of solid year-over-year growth across our nationwide operations. And while our first-quarter results were significantly impacted by property closures, we have taken broad-based actions to reduce expenses and preserve liquidity. As a result of these actions, and the progress we have made in recent years to strengthen our balance sheet, we believe our Company is well-positioned to sustain itself through the closure period. We intend to emerge from these challenging times as a more efficient and operationally focused Company.”
In the Las Vegas Locals segment, first-quarter 2020 revenues were $180.8m, compared to $222.9m in the year-ago quarter. First-quarter 2020 Adjusted EBITDAR was $46.8m, compared to $74.2m in the first quarter of 2019.
In the Downtown Las Vegas segment, revenues were $54.1m in the first quarter of 2020, compared to $63m in the year-ago period. Adjusted EBITDAR was $10m in the current period, versus $15m in the year-ago quarter.
In the Midwest & South segment, revenues were $445.6m versus $541.4m in the first quarter of 2019. Adjusted EBITDAR was $105.8m, compared to $156.5m in the year-ago period.
As part of its broad-based measures to preserve liquidity during the closure period, the company suspended both quarterly dividend payments and share repurchases in March. Total debt on 31 March was $4.44bn.
