Boyd gaming reports first-quarter 2022 results
Las vegas--(business wire)--boyd gaming corporation (nyse: byd) today reported financial results for the first quarter ended march 31, 2022. keith smith, president and chief executive officer of boyd gaming, said: “in the first quarter of 2022, our disciplined approach to managing the business and strategic focus on our core customer once again produced exceptional results. during the quarter, strong performance from our core customers and sustained efficiencies in our marketing and operations contributed to record revenue, ebitdar and margin performances on a companywide basis. additionally, we took an important step in advancing our online gaming strategy with our agreement in march to acquire pala interactive, which will provide us the technology and expertise to build a leading regional online casino gaming operation. we also continued to execute our robust capital return program, repurchasing $132 million in stock during the first quarter and reinstating our quarterly cash dividend. in all, the first quarter was an excellent start to 2022, as our proven operating strategy and experienced team continue to create long-term value for our shareholders.” boyd gaming reported first-quarter 2022 revenues of $860.7 million, up 14.3% from $753.3 million in the first quarter of 2021. the company reported net income of $162.9 million, or $1.45 per share, for the first quarter of 2022, compared to $102.2 million, or $0.90 per share, for the year-ago period. total adjusted ebitdar(1) was $338.8 million in the first quarter of 2022, increasing 15.8% from $292.6 million in the first quarter of 2021. adjusted earnings(1) for the first quarter of 2022 were $157.5 million, or $1.40 per share, compared to $105.7 million, or $0.93 per share, for the same period in 2021. companywide adjusted ebitdar margins after corporate expense were 39.4% in the first quarter of 2022, increasing from 38.8% 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 during the first quarter of 2022, the company set first-quarter adjusted ebitdar records in each of its three operating segments, as well as first-quarter revenue records in both the las vegas locals and midwest & south segments. strong growth continued in the company’s las vegas locals segment, which delivered year-over-year revenue growth of nearly 25% and adjusted ebitdar growth of 31% as operating margins exceeded 50% for the fourth straight quarter. positive trends also continued in downtown las vegas as the segment achieved quarterly adjusted ebitdar and margin records for the third consecutive quarter. the midwest & south segment posted record first-quarter revenue and adjusted ebitdar as business trends continued at levels similar to the second half of 2021. dividend and share repurchase program update boyd gaming reinstated its quarterly cash dividend with a payment of $0.15 per share on april 15, 2022, more than double the amount of the company’s previous quarterly dividend. the previous dividend was suspended in march 2020 due to the impact of the covid pandemic on the company’s operations as part of its ongoing share repurchase program, the company repurchased approximately $132 million in stock during the first quarter of 2022. as of march 31, 2022, the company had approximately $149 million remaining under current repurchase authorizations. balance sheet statistics as of march 31, 2022, boyd gaming had cash on hand of $403.0 million, and total debt of $3.1 billion. conference call information boyd gaming will host a conference call to discuss its first-quarter 2022 results april 26, at 5:00 p.m. eastern. the conference call number is (844) 200-6205, or (833) 950-0062 for canadian callers and +1-929-526-1599 for international callers. the conference call passcode is 179741. 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/835241151. following the call’s completion, a replay will be available by dialing (866) 813-9403 (canada (226) 828-7578, international +44 204 525 0658) on tuesday, april 26 after the conclusion of the call, and continuing through tuesday, may 3. the conference number for the replay is 691398. the replay will also be available at https://investors.boydgaming.com. condensed consolidated statements of operations (unaudited) 2022 2021 $ 667,954 $ 617,926 63,743 44,112 42,409 25,990 86,637 65,279 860,743 753,307 250,042 232,113 53,934 38,913 15,990 12,132 56,925 41,907 92,047 90,007 26,306 25,915 32,890 28,231 62,478 64,467 29,004 23,315 (10,029 ) 1,415 98 1,157 609,685 559,572 251,058 193,735 (420 ) (509 ) 37,658 57,890 3,300 — (253 ) 1,932 40,285 59,313 210,773 134,422 (47,845 ) (32,261 ) $ 162,928 $ 102,161 $ 1.45 $ 0.90 112,195 113,626 $ 1.45 $ 0.90 112,358 113,967 (a) rent expense incurred by those properties subject to a master lease with a real estate investment trust. boyd gaming corporation supplemental information reconciliation of adjusted ebitda to net income (unaudited) 2022 2021 $ 227,562 $ 182,423 49,484 21,433 583,697 549,451 $ 860,743 $ 753,307 $ 118,695 $ 90,642 18,389 2,440 223,481 218,149 360,565 311,231 (21,729 ) (18,634 ) 338,836 292,597 (26,306 ) (25,915 ) 312,530 266,682 191 207 62,478 64,467 8,734 5,701 (10,029 ) 1,415 98 1,157 61,472 72,947 251,058 193,735 (420 ) (509 ) 37,658 57,890 3,300 — (253 ) 1,932 40,285 59,313 210,773 134,422 (47,845 ) (32,261 ) $ 162,928 $ 102,161 (a) reconciliation of corporate expense: 2022 2021 $ 29,004 $ 23,315 (7,275 ) (4,681 ) $ 21,729 $ 18,634 (b) rent expense incurred by those properties subject to a master lease with a real estate investment trust. boyd gaming corporation supplemental information reconciliations of net income to adjusted earnings and net income per share to adjusted earnings per share (unaudited) 2022 2021 $ 162,928 $ 102,161 (10,029 ) 1,415 98 1,157 3,300 — (253 ) 1,932 (6,884 ) 4,504 1,495 (1,003 ) $ 157,539 $ 105,662 $ 1.45 $ 0.90 (0.09 ) 0.01 — 0.01 0.03 — — 0.02 (0.06 ) 0.04 0.01 (0.01 ) $ 1.40 $ 0.93 112,358 113,967 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 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, as well as in our earnings conference call remarks, 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, the company’s confidence in its long-term growth trajectory, and the company’s plans with respect to share repurchases and returning capital to shareholders. 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; 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. through a long-standing company philosophy called caring the boyd way, boyd gaming is committed to advancing environmental, social and corporate governance (esg) initiatives that positively impact the company’s stakeholders and communities. our commitment to being an employer of choice has been recognized by forbes magazine, which named boyd gaming the highest-ranked gaming company in america’s best employers for diversity in 2021, and nevada’s best employers in 2020 and 2021. for additional company information and press releases, visit https://investors.boydgaming.com.
