Boyd Gaming (BYD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues increased 6.4% to $961.2 million, driven by online growth, higher management fees, and strong performances from recent property investments and diversified business segments.

• Net income for Q3 2024 was $131.1 million ($1.43 per share), down from $135.2 million ($1.34 per share) in Q3 2023, mainly due to higher interest expense.

• Record results at Treasure Chest and Fremont properties, and continued growth in the online segment, particularly through FanDuel partnership and the completed acquisition of Resorts Digital Gaming.

• Over $200 million in shares were repurchased during the quarter, and a $0.17 per share dividend was paid.

• Growth pipeline strengthened with a new $750 million casino resort opportunity in Norfolk, Virginia, and ongoing property enhancements nationwide.

Financial highlights

• Q3 2024 revenues: $961.2 million (+6.4% YoY); net income: $131.1 million; Adjusted EBITDAR: $336.6 million (+$15.8M YoY); Adjusted Earnings: $139.3 million ($1.52 per share).

• Online segment full-year EBITDA guidance raised to $75 million, with $105 million expected including $30 million in one-time market access fees.

• $85 million in capital expenditures in Q3, year-to-date spend at $289 million; full-year capex projected at $400–$425 million.

• Returned $531 million to shareholders year-to-date through Q3 via share repurchases and dividends; on pace for nearly $650 million for the year.

• Ended Q3 with $286.3 million in cash, $3.1 billion in total debt, total leverage at 2.5x, and lease-adjusted leverage at 2.9x.

Outlook and guidance

• Management expects sufficient liquidity for the next twelve months, supported by cash, credit facility, and operating cash flows.

• Expect challenging year-over-year EBITDA comparisons in Q4 due to prior year favorable expense adjustments.

• Online segment run-rate EBITDA baseline set at $75 million for 2025, with growth expected from FanDuel and Resorts Digital.

• Capital spending for 2025 expected in the $400–$500 million range, with Virginia project front-end loaded.

• New casino development in Norfolk, VA, with a temporary facility opening in late 2025 and a permanent facility in 2027, estimated at $750 million.