BOYD GAMING CORP Q4 FY2024 earnings call

• 2024 was a successful year with over $3.9 billion in revenues, nearly $1.4 billion EBITDA, and property-level operating margins over 40%.
• Fourth quarter revenues surpassed $1 billion, EBITDAR nearly $380 million, driven by diversified portfolio, efficient operations, and recent property investments.
• Property investments include hotel renovations at Orleans, IP, Valley Forge, enhancing customer experience at Suncoast, and strategic growth investments like Ameristar St. Charles expansion, Cadence Crossing Casino, Par-A-Dice replacement, and Norfolk resort development.
• Celebrated 50th anniversary in January 2025, with Sam and Bill Boyd's vision guiding the company.

Las Vegas Locals

• Fourth quarter delivered best year-over-year performance in 2024 despite competitive pressures. Excluding Orleans and Gold Coast, properties perform better than same-store market with operating margins over 50%. Core customers' play grew, retail customers' play improved. Suncoast renovation shows potential.

Downtown Las Vegas

• Strong fourth quarter performance. Recent enhancements provide foundation for long-term growth. Customer trends consistent with recent quarters, Hawaiian visitation healthy, pedestrian traffic steady.

Midwest and South

• Treasure Chest new facility performed ahead of expectations. Same-store operations grew slightly after adjusting for 2023 Q4 onetime benefits, margins consistent at 37%. Core customers' play growing, retail customers' play stable.

Online

• Full year 2024 EBITDAR $108M including $32M nonrecurring market access fees. 2025 expected $80M-$85M EBITDAR. Value in 5% equity interest in FanDuel.

Managed Business

• Full year 2024 EBITDAR $96M, driven by management fees from Sky River Casino. Sky River expansion underway with Phase 1 starting in 2026 and Phase 2 in 2027.

• Online segment expected EBITDAR of $80M-$85M in 2025 vs. $76M in 2024.
• Managed business expected similar EBITDAR in 2025 as 2024.
• 2025 capital expenditures include ~$250M recurring maintenance capital, ~$100M hotel room refurbishment, ~$100M recurring property growth investments, and ~$150M-$200M for Virginia resort development.
• Las Vegas Locals expects stability in Orleans and Gold Coast by H2 2025, other properties to perform slightly better than locals market. Downtown Las Vegas expects growth in line with downtown market. Midwest and South expects benefit from incremental five months of Treasure Chest expansion, but impacted by January weather similar to 2024.

• Competitive pressures in markets like Las Vegas.
• Weather impact on Midwest and South segment in January.
• Construction disruptions during property renovations.
• Legislative and regulatory uncertainties affecting gaming operations.
• Potential impact of economic factors on customer spending, particularly affecting retail customers.

Q: Steve Wieczynski asked about core vs. retail customers in 2025.

A: Josh Hirsberg said core customers expected to continue growing, retail customers in markets outside Las Vegas largely stable, in Las Vegas stabilizing with less bad year-over-year declines.

Q: Barry Jonas asked about online business impact of NFL hold and legislative gaming bills.

A: Keith Smith said online impacted by lower NFL hold, but growth from market access agreements and online gaming. Keith Smith mentioned monitoring gaming bills but early in sessions.

Q: Carlo Santarelli asked about Midwest and South same-store EBITDA trajectory.

A: Josh Hirsberg said interpretation of flattish year-over-year expected due to lack of strong retail segment growth, cautious outlook.

Q: Jordan Bender asked about locals market exit rate and Paradise project cost.

A: Keith Smith said locals market growth likely low single digits, Paradise project cost similar to Treasure Chest, in design phase.

Q: David Katz asked about risk tolerance, leverage, and M&A.

A: Keith Smith said preference for HoldCo, flexible with leverage for right acquisitions, M&A depends on strategic fit, size, and quality.

Q: Brandt Montour asked about Paradise project and Treasure Chest spillover.

A: Keith Smith said Paradise market dynamics different from Treasure Chest, Treasure Chest performance better than Q3, but spillover not significant.

Q: Dan Politzer asked about tax impact and balance sheet leverage.

A: Keith Smith said tax changes could incrementally benefit business, leverage flexible for right M&A, equity not typically used as currency.

Q: Shaun Kelley asked about Norfolk temp facility and Treasure Chest spillover.

A: Keith Smith said Norfolk temp facility breakeven, Treasure Chest Q4 revenue better than Q3, no significant spillover observed.

Q: Joe Stauff asked about renovation CapEx and competitive pressure.

A: Josh Hirsberg said renovation CapEx $100M ongoing, competitive pressure in various markets, construction disruptions possible but mitigated.

Q: John DeCree asked about online business and F1/Super Bowl impact.

A: Keith Smith said online business platform scalable, F1 and Super Bowl had varying impacts on locals market.

Q: Chad Beynon asked about managed business growth limits.

A: Keith Smith said managed business growth limited by physical capacity of Sky River Casino, Phase 1 expansion in 2026 to help.