Boyd Gaming Corporation (NYSE:BYD) Q4 2023 Earnings Call Transcript February 8, 2024

Boyd Gaming Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

David Strow: Good afternoon, and welcome to the Boyd Gaming Fourth Quarter and Full Year 2023 Conference Call. My name is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which is being recorded on Thursday, February 8, 2024. At this time, all lines are in listen-only mode. Following our remarks, we will conduct a question-and-answer session. [Operator Instructions] Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirsberg, Executive Vice President and Chief Financial Officer. Our comments today will include statements that are forward-looking statements within the Private Securities Litigation Reform Act. All forward-looking statements in our comments are as of today's date, and we undertake no obligation to update or revise the forward-looking statements.

Actual results may differ materially from those projected in any forward-looking statement. There are certain risks and uncertainties, including those disclosed in our filings with the SEC that may impact our results. During our call today, we will make reference to non-GAAP financial measures. For a complete reconciliation of historical non-GAAP to GAAP financial measures, please refer to our earnings press release and our Form 8-K furnished to the SEC today, both of which are available at investors.boydgaming.com. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges and certain expenses. Today's call is being webcast live at boydgaming.com and will be available for replay in the Investor Relations section of our website shortly after the completion of this call.

So with that, I would now like to turn the call over to Keith Smith. Keith?

Keith Smith: Thanks, David, and good afternoon, everyone. 2023 was another great year for our company as we continue to build upon the record performances we have delivered over each of the last several years. We achieved full year records for both revenues and EBITDAR with operating margins remaining well above historical levels. 2023 was the third consecutive year we set revenue and EBITDAR records on a full year basis. This full year performance is a tribute to our diversified portfolio with strong growth from both our Online and Managed businesses. This growth was complemented by stable revenues from our property operations as we saw continued strength in play from our core customers and growth in our non-gaming business.

And we finished the year strong with a solid fourth quarter performance. During the fourth quarter, company-wide revenues rose 3% to $954 million, driven by growth in our Online segment. EBITDAR for the quarter was $355 million, down slightly from a record fourth quarter last year. Looking at property operations, gaming revenues for the fourth quarter were down less than 1%, a notable improvement from the last several quarters. During the quarter, play from our core customers grew at the strongest rate of the year. While this growth was offset by lower retail play, the year-over-year decline in retail play was the smallest we have seen since the first quarter of 2023. And non-gaming revenue for the quarter continued to grow, rising 1.5% over prior year.

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