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Boyd Gaming Reports Fourth-Quarter, Full-Year 2021 Results

02/03/2022

Company Sets Fourth-Quarter, Full-Year Records for Revenues, Adjusted EBITDAR and Net Income

Board Reinstates Quarterly Dividend, Increases Payout to $0.15 Per Share

Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2021.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Our Company finished 2021 with record quarterly performances across every segment of our operations. For the fourth straight quarter, we set new records for Companywide EBITDAR and operating margins. And on a full-year basis, we surpassed our previous EBITDAR record by more than 50%, as we achieved Companywide operating margins of more than 40%. As we begin 2022, we remain focused on executing our proven operating strategy, as well as driving incremental growth through strategic reinvestments in our portfolio and the continued expansion of our online business.”

Smith continued: “Given the ongoing strength of our business, we are expanding our program to return capital to our shareholders by reinstating our quarterly dividend. In conjunction with our current share repurchase program, this action reflects our commitment to a balanced approach to creating long-term shareholder value.”

Boyd Gaming reported fourth-quarter 2021 revenues of $879.8 million, up 38.4% from $635.9 million in the fourth quarter of 2020. The Company reported net income of $109.8 million, or $0.96 per share, for the fourth quarter of 2021, compared to $83.3 million, or $0.73 per share, for the year-ago period.

Total Adjusted EBITDAR(1) was $347.3 million in the fourth quarter of 2021, increasing 65.0% from $210.5 million in the fourth quarter of 2020. Adjusted Earnings(1) for the fourth quarter of 2021 were $154.3 million, or $1.35 per share, compared to $51.9 million, or $0.46 per share, for the same period in 2020. Companywide Adjusted EBITDAR margins after corporate expense were 39.5% in the fourth quarter of 2021, increasing from 33.1% in the year-ago quarter.

(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

Operations Review (2)

Due to the impact of the COVID pandemic on the Company’s operations and related state-mandated restrictions during 2020, the Company is providing segment results for the fourth quarters of 2021, 2020 and 2019.

Revenues

Three Months Ended December 31,

 

 

 

 

 

 

% Change

($ amounts in thousands)

 

2021

 

 

 

2020

 

 

 

2019

 

 

2021 vs 2020

 

2021 vs 2019

Las Vegas Locals

$

236,272

 

$

161,458

 

$

223,851

 

46.3

%

5.5

%

Downtown Las Vegas

 

53,456

 

 

18,187

 

 

69,551

 

193.9

%

(23.1

)%

Midwest & South

 

590,113

 

 

456,223

 

 

539,729

 

29.3

%

9.3

%

Total Revenues

$

879,841

 

$

635,868

 

$

833,131

 

38.4

%

5.6

%

 
 
Property Adjusted EBITDAR

Three Months Ended December 31,

 

 

 

 

 

 

% Change

($ amounts in thousands)

 

2021

 

 

 

2020

 

 

 

2019

 

 

2021 vs 2020

 

2021 vs 2019

Las Vegas Locals

$

123,615

 

$

70,224

 

$

73,285

 

76.0

%

68.7

%

Downtown Las Vegas

 

20,217

 

 

(150

)

 

19,583

 

N/A

 

3.2

%

Midwest & South

 

226,756

 

 

159,460

 

 

157,445

 

42.2

%

44.0

%

Property Adjusted EBITDAR

$

370,588

 

$

229,534

 

$

250,313

 

61.5

%

48.0

%

 
 
Property Adjusted EBITDAR Margin

Three Months Ended December 31,

 

 

 

 

 

 

Basis Point Change

 

2021

 

 

 

2020

 

 

 

2019

 

 

2021 vs 2020

 

2021 vs 2019

Las Vegas Locals

 

52.3

%

 

43.5

%

 

32.7

%

883

 

bps

1,958

 

bps
Downtown Las Vegas

 

37.8

%

 

-0.8

%

 

28.2

%

N/A

 

966

 

bps
Midwest & South

 

38.4

%

 

35.0

%

 

29.2

%

347

 

bps

925

 

bps
Property Adjusted EBITDAR Margin

 

42.1

%

 

36.1

%

 

30.0

%

602

 

bps

1,208

 

bps

During the fourth quarter of 2021, the Company continued to deliver broad-based growth across its operations, setting fourth-quarter records for Adjusted EBITDAR and operating margins in all three operating segments. Twenty-four of the Company’s 27 open properties delivered double-digit revenue growth during the quarter as compared to the prior-year period, while 26 properties grew Adjusted EBITDAR at a double-digit pace.

(2)

In the Las Vegas Locals segment, Eastside Cannery remained closed as of the date of this press release, while Eldorado Casino was closed until its sale on December 10, 2020. In the Downtown Las Vegas segment, Main Street Station reopened to the public on September 8, 2021. In the Midwest & South segment, Par-A-Dice was temporarily closed in mid-November 2020 and Valley Forge was temporarily closed in early December 2020; both properties reopened in January 2021.

Full-Year 2021 Results

For the full year 2021, Boyd Gaming reported revenues of $3.4 billion, compared to $2.2 billion for the full year 2020. The Company reported net income of $463.8 million, or $4.07 per share, compared to a net loss of $134.7 million, or $1.19 per share, for the full year 2020.

Total Adjusted EBITDAR for the full year 2021 was $1.4 billion versus $609.9 million for the full year 2020. Full-year 2021 Adjusted Earnings were $584.2 million, or $5.12 per share, compared to an Adjusted Loss of $17.5 million, or $0.15 per share, for the full year 2020.

The Company’s full-year 2021 pretax income was impacted by charges of $95.2 million related to early extinguishments of debt. Financial results for the full year ended December 31, 2020, were significantly impacted by state-mandated COVID-19 property closures that began in mid-March 2020 and continued through the second quarter of 2020, as well as increased operating restrictions and additional property closures throughout the second half of the year. Additionally, the Company’s full-year 2020 net loss was impacted by $174.7 million in noncash, pretax intangible asset impairment charges.

Dividend and Share Repurchase Program Update

Boyd Gaming’s Board of Directors approved the reinstatement of a regular quarterly dividend, starting in the second quarter of 2022. The quarterly cash dividend of $0.15 per share will be paid on April 15, 2022, to shareholders of record as of March 15, 2022. This represents an increase from the Company’s previous quarterly dividend of $0.07 per share, which was suspended in March 2020 due to the impact of the COVID pandemic on the Company’s operations.

In October 2021, the Company resumed regular share repurchases under a $300 million repurchase program authorized by the Board of Directors. When combined with amounts remaining under a previous authorization, the Company had total availability of $361 million upon resuming its repurchase activity.

Balance Sheet Statistics

As of December 31, 2021, Boyd Gaming had cash on hand of $344.6 million, and total debt of $3.1 billion.

Conference Call Information

Boyd Gaming will host a conference call to discuss its fourth-quarter and full-year 2021 results today, February 3, at 5:00 p.m. Eastern. The conference call number is (844) 200-6205, or +1-929-526-1599 for international callers. The conference call passcode is 979572. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at https://investors.boydgaming.com, or: https://events.q4inc.com/attendee/629826300.

Following the call’s completion, a replay will be available by dialing (866) 813-9403 (+44 204 525 0658 for international callers) today, February 3, and continuing through Thursday, February 10. The conference code for the replay will be263059. The replay will also be available at https://investors.boydgaming.com.

BOYD GAMING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended

Year Ended

December 31,

December 31,

(In thousands, except per share data)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues
Gaming

$

685,908

 

$

514,517

 

$

2,705,523

 

$

1,775,358

 

Food & beverage

 

67,404

 

 

39,555

 

 

230,045

 

 

178,878

 

Room

 

44,796

 

 

24,398

 

 

154,180

 

 

104,968

 

Other

 

81,733

 

 

57,398

 

 

280,062

 

 

119,286

 

Total revenues

 

879,841

 

 

635,868

 

 

3,369,810

 

 

2,178,490

 

Operating costs and expenses
Gaming

 

258,352

 

 

203,809

 

 

999,528

 

 

734,254

 

Food & beverage

 

55,943

 

 

37,391

 

 

192,334

 

 

182,666

 

Room

 

16,214

 

 

12,195

 

 

57,627

 

 

53,208

 

Other

 

54,953

 

 

37,535

 

 

182,991

 

 

66,960

 

Selling, general and administrative

 

94,517

 

 

89,677

 

 

366,156

 

 

350,358

 

Master lease rent expense (a)

 

26,306

 

 

25,915

 

 

104,702

 

 

101,907

 

Maintenance and utilities

 

30,859

 

 

26,546

 

 

126,115

 

 

115,097

 

Depreciation and amortization

 

68,455

 

 

75,533

 

 

267,787

 

 

281,031

 

Corporate expense

 

31,380

 

 

17,617

 

 

117,675

 

 

76,143

 

Project development, preopening and writedowns

 

18,300

 

 

(10,243

)

 

31,815

 

 

(661

)

Impairment of assets

 

8,200

 

 

3,600

 

 

8,200

 

 

174,700

 

Other operating items, net

 

(519

)

 

4,994

 

 

14,776

 

 

28,564

 

Total operating costs and expenses

 

662,960

 

 

524,569

 

 

2,469,706

 

 

2,164,227

 

Operating income

 

216,881

 

 

111,299

 

 

900,104

 

 

14,263

 

Other expense (income)
Interest income

 

(413

)

 

(424

)

 

(1,819

)

 

(1,900

)

Interest expense, net of amounts capitalized

 

41,250

 

 

57,044

 

 

199,442

 

 

230,484

 

Loss on early extinguishments and modifications of debt

 

29,638

 

 

791

 

 

95,155

 

 

1,791

 

Other, net

 

1,099

 

 

(39,892

)

 

3,387

 

 

(45,098

)

Total other expense, net

 

71,574

 

 

17,519

 

 

296,165

 

 

185,277

 

Income (loss) before income taxes

 

145,307

 

 

93,780

 

 

603,939

 

 

(171,014

)

Income tax benefit (provision)

 

(35,525

)

 

(10,493

)

 

(140,093

)

 

36,314

 

Net income (loss)

$

109,782

 

$

83,287

 

$

463,846

 

$

(134,700

)

 
Basic net income (loss) per common share

$

0.96

 

$

0.73

 

$

4.07

 

$

(1.19

)

Weighted average basic shares outstanding

 

113,957

 

 

113,573

 

 

113,866

 

 

113,515

 

 
Diluted net income (loss) per common share

$

0.96

 

$

0.73

 

$

4.07

 

$

(1.19

)

Weighted average diluted shares outstanding

 

114,114

 

 

113,945

 

 

114,103

 

 

113,515

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Net Income (Loss)

(Unaudited)

 

Three Months Ended

Year Ended

December 31,

December 31,

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Total Revenues by Reportable Segment
Las Vegas Locals

$

236,272

 

$

161,458

 

$

886,054

 

$

561,989

 

Downtown Las Vegas

 

53,456

 

 

18,187

 

 

155,806

 

 

94,503

 

Midwest & South

 

590,113

 

 

456,223

 

 

2,327,950

 

 

1,521,998

 

Total revenues

$

879,841

 

$

635,868

 

$

3,369,810

 

$

2,178,490

 

 
Adjusted EBITDAR by Reportable Segment
Las Vegas Locals

$

123,615

 

$

70,224

 

$

473,187

 

$

198,744

 

Downtown Las Vegas

 

20,217

 

 

(150

)

 

51,300

 

 

1,075

 

Midwest & South

 

226,756

 

 

159,460

 

 

926,955

 

 

480,446

 

Property Adjusted EBITDAR

 

370,588

 

 

229,534

 

 

1,451,442

 

 

680,265

 

Corporate expense, net of share-based compensation expense (a)

 

(23,292

)

 

(19,038

)

 

(85,457

)

 

(70,371

)

Adjusted EBITDAR

 

347,296

 

 

210,496

 

 

1,365,985

 

 

609,894

 

Master lease rent expense (b)

 

(26,306

)

 

(25,915

)

 

(104,702

)

 

(101,907

)

Adjusted EBITDA

 

320,990

 

 

184,581

 

 

1,261,283

 

 

507,987

 

 
Other operating costs and expenses
Deferred rent

 

207

 

 

222

 

 

828

 

 

888

 

Depreciation and amortization

 

68,455

 

 

75,533

 

 

267,787

 

 

281,031

 

Share-based compensation expense

 

9,466

 

 

(824

)

 

37,773

 

 

9,202

 

Project development, preopening and writedowns

 

18,300

 

 

(10,243

)

 

31,815

 

 

(661

)

Impairment of assets

 

8,200

 

 

3,600

 

 

8,200

 

 

174,700

 

Other operating items, net

 

(519

)

 

4,994

 

 

14,776

 

 

28,564

 

Total other operating costs and expenses

 

104,109

 

 

73,282

 

 

361,179

 

 

493,724

 

Operating income

 

216,881

 

 

111,299

 

 

900,104

 

 

14,263

 

Other expense (income)
Interest income

 

(413

)

 

(424

)

 

(1,819

)

 

(1,900

)

Interest expense, net of amounts capitalized

 

41,250

 

 

57,044

 

 

199,442

 

 

230,484

 

Loss on early extinguishments and modifications of debt

 

29,638

 

 

791

 

 

95,155

 

 

1,791

 

Other, net

 

1,099

 

 

(39,892

)

 

3,387

 

 

(45,098

)

Total other expense, net

 

71,574

 

 

17,519

 

 

296,165

 

 

185,277

 

Income (loss) before income taxes

 

145,307

 

 

93,780

 

 

603,939

 

 

(171,014

)

Income tax benefit (provision)

 

(35,525

)

 

(10,493

)

 

(140,093

)

 

36,314

 

Net income (loss)

$

109,782

 

$

83,287

 

$

463,846

 

$

(134,700

)

 
 
 

Three Months Ended

Year Ended

December 31,

December 31,

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Corporate expense as reported on Condensed Consolidated Statements of Operations

$

31,380

 

$

17,617

 

$

117,675

 

$

76,143

 

Corporate share-based compensation expense

 

(8,088

)

 

1,421

 

 

(32,218

)

 

(5,772

)

Corporate expense, net, as reported on the above table

$

23,292

 

$

19,038

 

$

85,457

 

$

70,371

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliations of Net Income (Loss) to Adjusted Earnings (Loss)

and Net Income (Loss) Per Share to Adjusted Earnings (Loss) Per Share

(Unaudited)

 
 

Three Months Ended

Year Ended

December 31,

December 31,

(In thousands, except per share data)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss)

$

109,782

 

$

83,287

 

$

463,846

 

$

(134,700

)

Pretax adjustments:
Project development, preopening and writedowns

 

18,300

 

 

(10,243

)

 

31,815

 

 

(661

)

Impairment of assets

 

8,200

 

 

3,600

 

 

8,200

 

 

174,700

 

Other operating items, net

 

(519

)

 

4,994

 

 

14,776

 

 

28,564

 

Loss on early extinguishments and modifications of debt

 

29,638

 

 

791

 

 

95,155

 

 

1,791

 

Other, net

 

1,099

 

 

(39,892

)

 

3,387

 

 

(45,098

)

Total adjustments

 

56,718

 

 

(40,750

)

 

153,333

 

 

159,296

 

 
Income tax effect for above adjustments

 

(12,183

)

 

9,352

 

 

(33,026

)

 

(38,207

)

Impact of tax audit settlements

 

 

 

 

 

 

 

(4,505

)

Impact of tax valuation allowance

 

 

 

 

 

 

 

568

 

Adjusted earnings (loss)

$

154,317

 

$

51,889

 

$

584,153

 

$

(17,548

)

 
Net income (loss) per share, diluted

$

0.96

 

$

0.73

 

$

4.07

 

$

(1.19

)

Pretax adjustments:
Project development, preopening and writedowns

 

0.16

 

 

(0.09

)

 

0.28

 

 

(0.01

)

Impairment of assets

 

0.07

 

 

0.03

 

 

0.07

 

 

1.54

 

Other operating items, net

 

 

 

0.05

 

 

0.13

 

 

0.25

 

Loss on early extinguishments and modifications of debt

 

0.26

 

 

0.01

 

 

0.83

 

 

0.02

 

Other, net

 

0.01

 

 

(0.35

)

 

0.03

 

 

(0.40

)

Total adjustments

 

0.50

 

 

(0.35

)

1.34

 

 

1.40

 

 
Income tax effect for above adjustments

 

(0.11

)

 

0.08

 

 

(0.29

)

 

(0.33

)

Impact of tax audit settlements

 

 

 

 

 

 

 

(0.04

)

Impact of tax valuation allowance

 

 

 

 

 

 

 

0.01

 

Adjusted earnings (loss) per share, diluted

$

1.35

 

$

0.46

 

$

5.12

 

$

(0.15

)

 
Weighted average diluted shares outstanding

 

114,114

 

 

113,945

 

 

114,103

 

 

113,515

 

Non-GAAP Financial Measures

Our financial presentations include the following non-GAAP financial measures:

  • EBITDA : earnings before interest, taxes, depreciation and amortization,
  • Adjusted EBITDA : EBITDA adjusted for deferred rent, share-based compensation expense, project development, preopening and writedown expenses, impairments of assets, gain or loss on early extinguishments and modifications of debt and other operating items, net,
  • EBITDAR : EBITDA further adjusted for rent expense associated with master leases with a real estate investment trust,
  • Adjusted EBITDAR : Adjusted EBITDA further adjusted for rent expense associated with master leases with a real estate investment trust,
  • Adjusted Earnings : net income before project development, preopening and writedown expenses, impairments of assets, other items, net, gain or loss on early extinguishments and modifications of debt, and other non-recurring adjustments, net, and,
  • Adjusted Earnings Per Share (Adjusted EPS) : Adjusted Earnings divided by weighted average diluted shares outstanding.

Collectively, we refer to these and other non-GAAP financial measures as the “Non-GAAP Measures”.

The Non-GAAP Measures are commonly used measures of performance in our industry that we believe, when considered with measures calculated in accordance with accounting principles generally accepted in the United States (GAAP), provide our investors with a more complete understanding of our operating results and facilitates comparisons between us and our competitors. We provide this information to investors to enable them to perform comparisons of our past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported these measures to our investors and believe that the continued inclusion of the Non-GAAP Measures provides consistency in our financial reporting. We also believe this information is useful to investors in allowing greater transparency related to significant measures used by our management in their financial and operational decision-making, their evaluation of total company and individual property performance, in the evaluation of incentive compensation and in the annual budget process. Management also uses Non-GAAP Measures in the evaluation of potential acquisitions and dispositions. We believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company.

The use of Non-GAAP Measures has certain limitations. Our presentation of the Non-GAAP Measures may be different from the presentation used by other companies and therefore comparability may be limited. While excluded from certain of the Non-GAAP Measures, depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred. Each of these items should also be considered in the overall evaluation of our results. Additionally, the Non-GAAP Measures do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the historical GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. We do not provide a reconciliation of forward-looking Non-GAAP Measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.

The Non-GAAP Measures are to be used in addition to and in conjunction with results presented in accordance with GAAP. The Non-GAAP Measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. The Non-GAAP Measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward-looking Statements and Company Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding continued growth in visitation and spending among the Company’s core customers, the Company’s views that it will be able to drive continued revenue and EBITDAR growth throughout its business, the impacts of COVID-19 on the Company, the Company’s operating strategy, and the Company’s confidence in its long-term growth trajectory. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the ongoing uncertainty about COVID-19, its duration and impact, the extent of consumer demand, potential negative effects on the Company’s workforce, suppliers, contractors and other partners, as well as the impact on the customer experience of necessary health and safety measures implemented at the direction of state and local governments and gaming regulators. Risks also include fluctuations in the Company's operating results; the political climate and its effects on consumer spending and its impact on the travel industry; the state of the economy and its effect on consumer spending; the impact and effects of the local economies in the markets where the Company operates; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; developments in legalization of online gaming , the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Boyd Gaming

Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 28 gaming entertainment properties in 10 states. The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation’s leading sports-betting and iGaming operator. With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering its guests an outstanding entertainment experience, delivered with unwavering attention to customer service. Boyd Gaming was recognized by Forbes magazine as the highest-ranked gaming company in America’s Best Employers for Diversity in 2021, as well as one of Nevada’s 25 Best Employers in 2020 and 2021. For additional Company information and press releases, visit https://investors.boydgaming.com.

Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com

Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com

Source: Boyd Gaming Corporation

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