B
oyd Gaming Corporation reported on Tuesday its financial results for the second quarter ended June 30, 2020.
“Across the country, our team members did a tremendous job getting our properties back open quickly and safely over the final six weeks of the quarter,” said Keith Smith, President and Chief Executive Officer. “And since reopening began, we are off to an excellent start. “
Due to impacts of the COVID-19 pandemic, Boyd Gaming reported second-quarter 2020 revenues of $209.9 million, compared to $846.1 million in the second quarter of 2019. The Company recorded a net loss of $108.5 million, or $0.96 per share, for the second quarter of 2020, compared to net income of $48.5 million, or $0.43 per share, for the year-ago period.
Total Adjusted EBITDAR was $16.1 million in the second quarter of 2020, compared to $232.6 million in the second quarter of 2019. Adjusted Earnings for the second quarter of 2020 reflect a loss of $110.5 million, or $0.98 per share, compared to Adjusted Earnings of $52.5 million, or $0.46 per share, for the same period in 2019.
On a comparable basis at the company’s reopened properties, Boyd Gaming achieved companywide EBITDAR growth and significant margin improvement while complying with state-regulated reductions in gaming capacity.
During the reopening period, its Midwest & South properties posted double-digit EBITDAR gains, while Las Vegas Locals properties also improved EBITDAR performance versus prior year.
“While overall visitation and revenues are down, spend per visit is robust, and we have successfully streamlined operating and marketing expenses to drive margin gains of more than 1,000 basis points in both the Midwest & South and Las Vegas Locals segments,” Smith added. These positive operating trends are continuing into July, giving us confidence that we can sustain increased efficiencies in our operating model.”
Smith also mentioned the recent launch of Stardust Social Casino mobile app, the company’s first interactive gaming presence under the Stardust brand.
“We are also making great progress positioning our Company for the digital future of our industry,” he said.
The company also continued to expand its strategic partnership with FanDuel Group as it introduced an online casino product in the state of Pennsylvania.
“With our industry-leading strategic partner and the iconic Stardust brand, Boyd Gaming is in an excellent position to capitalize on the compelling growth opportunity presented by interactive gaming and mobile sports betting,” Smith added.
Operations Review
During the period from March 18 through May 19, 2020, all 29 of the Company’s properties nationwide were closed under state and local orders aimed at mitigating the spread of COVID-19. The Company resumed operations at 26 properties on the following dates.
- May 20: Delta Downs, Evangeline Downs, Treasure Chest
- May 21: IP Casino Resort Spa, Sam’s Town Tunica
- May 23: Kansas Star
- May 27: Sam’s Town Shreveport, Amelia Belle
- June 1: Ameristar St. Charles, Ameristar Kansas City, Diamond Jo Dubuque, Diamond Jo Worth
- June 4: The Orleans, Gold Coast, Suncoast, Aliante, Cannery, Sam’s Town, Jokers Wild, California, Fremont
- June 15: Blue Chip, Belterra Casino Resort
- June 19: Belterra Park
- June 26: Valley Forge
- July 1: Par-A-Dice
Combined revenues for the 16 reopened Midwest & South segment properties were down 18% from the comparable prior-year period, while combined Adjusted EBITDAR rose 16% and operating margins increased more than 1,200 basis points. The seven Las Vegas Locals properties that reopened on June 4, 2020, reported a combined revenue decrease of 28% from the prior year, while combined Adjusted EBITDAR grew 1% and operating margins increased nearly 1,300 basis points. The Company’s two reopened Downtown Las Vegas segment properties reported a combined revenue decline of 60% from the prior year while combined Adjusted EBITDAR for the reopening period was breakeven, reflecting the impact of reduced visitation to Las Vegas as well as lower business volumes from the Company’s Hawaiian customer base.
