Boyd Gaming suffers 17 percent loss in revenue during Q1 2020

28 April 2020

(PRESS RELEASE) -- Boyd Gaming Corporation today reported preliminary financial results for the first quarter ended 31 March 2020.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "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."

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."

The financial information provided for the first quarter of 2020 is preliminary. The Company has not completed its final closing procedures related to reviews of goodwill, intangibles and certain other long-lived assets for impairment and the related income tax provision adjustments that may be made. The completion of these procedures may result in adjustments to the preliminary information presented. The final financial results for the quarter will be provided in a Form 10-Q expected to be filed with SEC on or before 11 May 2020.

On a preliminary basis, Boyd Gaming reported a net loss of $18.3 million, or $0.16 per share, for the first quarter of 2020, compared to net income of $45.5 million, or $0.40 per share, for the year-ago period. The Company's first-quarter 2020 income tax provision includes a $7.4 million charge to establish a valuation allowance for certain deferred tax assets.

The Company reported first-quarter 2020 revenues of $680.5 million, down from $827.3 million in the first quarter of 2019. Total Adjusted EBITDAR(1) was $144.4 million in the first quarter of 2020, compared to $223.0 million in the first quarter of 2019. Adjusted Earnings(1) for the first quarter of 2020 reflect a loss of $2.4 million, or $0.02 per share, compared to Adjusted Earnings of $48.9 million, or $0.43 per share, for the same period in 2019.

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

Operations Review
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.

Las Vegas Locals
In the Las Vegas Locals segment, first-quarter 2020 revenues were $180.8 million, compared to $222.9 million in the year-ago quarter. First-quarter 2020 Adjusted EBITDAR was $46.8 million, compared to $74.2 million in the first quarter of 2019.

Downtown Las Vegas
In the Downtown Las Vegas segment, revenues were $54.1 million in the first quarter of 2020, compared to $63.0 million in the year-ago period. Adjusted EBITDAR was $10.0 million in the current period, versus $15.0 million in the year-ago quarter.

Midwest & South
In the Midwest & South segment, revenues were $445.6 million versus $541.4 million in the first quarter of 2019. Adjusted EBITDAR was $105.8 million, compared to $156.5 million in the year-ago period.

Balance Sheet Update
As of 31 March 2020, Boyd Gaming had cash on hand of $831.2 million, including $670.0 million that was drawn from the Company's revolving credit facilities on 16 March 2020. Total debt on 31 March was $4.44 billion.

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.

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