Operator News
US – Five casino acquisitions boost Boyd’s results by five per cent
By Phil - 21 February 2020
Boyd Gaming financial results were boosted by the additional revenue from five casinos bought more than a year ago with revenues up by five per cent, adding that its FanDuel sportsbooks were off to strong start in Pennsylvania, Iowa and Indiana.
Results for both the current and prior-year quarters included contributions from Valley Forge Casino near Philadelphia, Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired by the company on October 15, 2018. The company now operates 29 casinos in 10 states.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “It was a very successful year. We are operating smarter and more efficiently. Our diversified nationwide portfolio continued to generate strong results in the fourth quarter of 2019, as every segment of our business achieved growth in same-store revenues and Adjusted EBITDAR. In our Midwest & South region, strong same-store gains were complemented by exceptional performances at the recently acquired Ameristar and Belterra properties, which grew combined Adjusted EBITDAR at a double-digit pace while improving operating margins by more than 350 basis points. In our Las Vegas Locals segment, revenue growth remained consistent with trends we saw throughout the year, though EBITDAR growth slowed, primarily due to a difficult comparison to a strong fourth quarter of 2018. On the sports-betting front, our newly opened FanDuel Sportsbooks helped attract new customers to our properties in Pennsylvania, Indiana and Iowa. As we enter the new year, the underlying trends in our nationwide business remain strong, and we are confident in our prospects for 2020.”
Boyd Gaming reported fourth-quarter revenues of $833.1m, up 5.2 per cent from $791.6m in the fourth quarter of 2018. The company reported net income of $24.3m, or $0.21 per share, for the fourth quarter of 2019, compared to $22.9m, or $0.20 per share, for the year-ago period. The Company’s fourth-quarter 2019 pretax income was impacted by charges of $34.2 million related to early extinguishments of debt. Project development, preopening and writedown expenses decreased $10.4 million in the fourth quarter of 2019 versus prior year due primarily to the inclusion of acquisition-related expenses in the fourth quarter of 2018.
Total Adjusted EBITDAR was $227.6m in the fourth quarter of 2019, up 9.1 per cent from $208.6m in the fourth quarter of 2018. Adjusted Earnings for the fourth quarter of 2019 were $57.4m, or $0.50 per share, compared to Adjusted Earnings of $37m, or $0.32 per share, for the same period in 2018.
Mr. Smith added: “As we pass the one-year anniversary of the Ameristar and Belterra acquisitions, we have exceeded our initial expectations for our first full year of ownership. As we continue to identify best practices and opportunities for additional synergies, we expect to realise further value from these acquisitions in the year ahead. “Our locals segment continues to perform at near-record levels. Revenue growth in the quarter remained consistent with trends we saw throughout 2019. As we begin 2020, we are encouraged by the trends we have seen in January and remain optimistic for the full year. The fundamentals of our locals business have not changed.”
Boyd is currently finalising plans with the Wilton Rancheria tribe in Northern California for a casino south of Sacramento.
Mr. Smith added: “We plan to develop a first-class resort that takes full advantage of this attractive location and allows the Wilton tribe to realize the significant potential of this opportunity in the coming years.”
