Boyd Gaming to repurchase stock on heels of record Q3 earnings
Operator authorizes $300m share buy-back program as part of continued pandemic recovery
Boyd Gaming has emerged from the Covid-19 pandemic in an advantageous position as evidenced by strong revenue growth and record earnings in the third quarter of 2021.
Thanks to total Q3 revenue of $843.1m and net income of $138.2m, the gaming operator has greenlit the repurchase of $300m in stock with an eye toward future growth.
“This program reflects the board’s confidence in the long-term prospects for our business, as well as our balanced approach in allocating capital to growth investments, deleveraging and returning free cash flow to shareholders,” said Boyd Gaming president and CEO Keith Smith.
Boyd’s revenue climbed 29.3% year over year (YOY) from $652.2m in Q3 of 2020, while property adjusted earnings before interest, tax, depreciation, amortization, and rent (EBITDAR) rose 42.6% to $340.7m.
Both are a reflection of the ramp-up in operations with the pandemic waning and customers returning to casinos.
Of Boyd’s 28 properties across 10 states, 21 posted double-digit EBITDAR YOY growth throughout its three operating segments of Midwest & South, Las Vegas Locals, and Downtown Las Vegas.
“Since reopening our properties last year, we have made fundamental changes to our operating philosophy – sharpening our focus on building loyalty with core customers while executing our business at a much higher level of efficiency,” said Smith.
“These changes have resulted in five consecutive quarters of strong performance, including record third-quarter results this year.”
As part of its growth, Boyd plans to gradually expand its workforce – the company was forced to lay off 25% of its workers during the height of the pandemic – while focusing on marketing and customer-retention efforts.
Smith specifically pointed to Boyd Pay, the firm’s digital wallet technology that’s currently operational at 11 properties and is being field-tested by the Nevada Gaming Control Board for expansion to table games.
“Our goal is to create a tool that will make it easier for guests to make wagers and pay for non-gaming amenities right from their smartphones,” said Smith.