管理層發言
Good afternoon, and welcome to the Boyd Gaming Second Quarter 2026 Earnings Conference Call.
This is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which we are hosting on Thursday, 07/23/2026. At this time, all lines are in listen-only mode. Following our remarks, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press *0 for the operator. Our speakers for today's call are Keith E. Smith, President and Chief Executive Officer, and Josh Hirsberg, Chief Financial Officer. Our comments today will include statements that are forward-looking statements within the meaning of 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-Ks 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 E. Smith. Keith?
Thanks, David. Good afternoon, everyone. Our second quarter results reflect the continued benefits of our diversified business model, the success of our ongoing capital investment program, and broad-based growth in play across our customer segments. On a company-wide basis, revenues increased 3% and EBITDA grew 2% for the quarter, adjusting for the impact of last year's FanDuel transaction and the tax pass-through amounts related to our market access agreement. This performance was led by strong growth across our Midwest and South segment, solid contributions from Boyd Interactive, and increased management fees from Sky River. We also maintained operating efficiencies throughout the business, delivering property operating margins of 40%, consistent with the last several years. Strong performances in our Midwest and South, online, and managed segments in the quarter partially offset continued softness in destination business in Las Vegas, primarily at the Orleans, and ongoing construction disruption at the Suncoast. Excluding the Orleans and Suncoast, the balance of our Las Vegas local segment delivered revenue and EBITDAR growth and strong margins during the quarter, reflecting the continued strength of our local customer. While we are only three weeks into the third quarter, the overall trends of the second quarter are continuing into July. Now looking at our results by segment. First, our Midwest and South segment delivered a strong performance on top of last year's solid results. Revenues grew 3% in the quarter, driven by growth in gaming revenues, while EBITDA grew 4% with property margin expanding to nearly 38%. This was the segment's strongest margin in almost two years, demonstrating our continued ability to drive operating efficiencies throughout our business. These results were supported by growth in play for both our core and retail customers. Our guests continue to stay and spend closer to home. We are also benefiting from our property investments throughout the segment; our recent hotel renovations and new food and beverage offerings contributed to our strong performance across the Midwest and South. In addition, we continue to deliver growth in properties where we have made larger or strategic investments, such as Treasure Chest and Ameristar St. Charles. Moving to our Las Vegas local segment. While our Las Vegas locals business continues to be impacted by the softer destination business and ongoing construction activity at the Suncoast, overall gaming revenues for the segment were even with prior year with stable play from our core and retail customers. Excluding the Orleans and Suncoast, the remainder of our Las Vegas local segment achieved solid results for the second quarter. Revenues from these properties increased 4% in the quarter driven by increases in gaming revenues, while EBITDAR grew 3% and margins once again exceeded 50%. The growth in gaming revenues was driven by increased play from our core and retail guests, demonstrating the underlying strength of our locals customer. While results at the Suncoast for both our first and second quarter were impacted by construction activity, we expect to finalize our renovations of the casino floor and other public areas by the end of Q3. Once this work is complete, we will have modernized all public spaces in the building including the entire casino floor, the sportsbook, the bingo room, and the high-limit room. We will significantly enhance our food and beverage offerings and expand and refresh the property's meeting space. As a result, we expect to deliver improved performance at the Suncoast starting in Q4. We are also finalizing plans for a refresh of the Orleans casino floor and public spaces. We expect to begin this work at the Orleans in the first half of 2027. At Cadence Crossing, visitation and revenues have been strong since its debut in late March, and we remain confident we will achieve our long-term return on this investment. Beyond these projects, we continue to invest in our properties throughout the Las Vegas Valley. We recently opened new restaurants at Gold Coast, Sam's Town, and Suncoast, and plan to introduce others throughout the Las Vegas Valley in the coming months. We have hotel renovations underway at the Orleans and Suncoast, both of which are expected to be complete by year-end, and we are updating our sportsbooks in Sam's Town and Aliante, both opening in time for the upcoming football season. In all, by early 2027 we will have renovated over 70% of our Las Vegas hotel room inventory, introduced 17 new food and beverage concepts, and significantly enhanced our Southern Nevada presence with our new Cadence Crossing property and the investments we are making at the Suncoast. Together, these investments are elevating the competitiveness and appeal of our Las Vegas locals portfolio and positioning this segment for long-term growth. Our confidence in our locals business is also supported by the growth of the Southern Nevada economy. Southern Nevada employment is increasing at the fastest rate of any major metro area in the country. Job growth is occurring across most major employment sectors, further diversifying the local economy and adding more than 200,000 jobs outside of the hospitality sector over the last 10 years. Employment growth is also driving further gains in local incomes. Weekly wages are increasing at more than twice the rate of the national average, and Las Vegas remains an attractive destination for relocation, offering one of the most competitive cost-of-living environments in the Western United States. In all, Southern Nevada's continued growth in population, employment, and personal income supports our confidence in the long-term prospects for our Las Vegas locals business. Next, our Downtown Las Vegas segment. Trends in the business were consistent with recent quarters. While play from both core and Hawaiian guests was stable, our downtown business was impacted by lower pedestrian traffic throughout the downtown area, reflecting continued softness in destination business. Next, our online segment achieved revenue and EBITDAR growth on a comparable basis. These results reflected strong growth from Boyd Interactive as well as contributions from our market access agreements that were consistent with the last several quarters. Finally, our managed business grew EBITDAR by 18% year-over-year. This outstanding performance was driven by the recent completion of the first phase of the Sky River expansion project, which significantly increased the casino floor and added a new multilevel parking structure. With Phase 1 off to a strong start, we will now begin work on Phase 2, which will add a 300-room motel, three new food and beverage outlets, a full-service spa, and a new entertainment and event center. Once complete in early 2028, we are confident this expansion will further strengthen Sky River's position as one of Northern California's most popular gaming destinations. In sum, our second quarter performance is driven by our diversified business model, broad-based growth in play from our core and retail customers, and the success of our recent capital investments. While we are investing in our properties across the country, we also continue to build a development pipeline to drive long-term growth. In Virginia, our resort development on the Norfolk waterfront remains on time and on budget for a late 2027 opening. Once complete, this upscale resort will be a true market leader with a 65,000-square-foot casino, a 100-room hotel, eight food and beverage outlets, live entertainment, and an outdoor amenity deck. We will also offer the most convenient gaming destination for many of the 1.8 million residents of the Hampton Roads region as well as the 15 million tourists who visit nearby Virginia Beach each year. In Illinois, our modernization of the Par-A-Dice Casino is in the design phase. Once complete, this project will transform Par-A-Dice into a single-level entertainment facility with a modern casino floor and enhanced amenities, positioning this property for growth well into the future. With Par-A-Dice in the design process, we are gearing up for our next growth projects. One such project is in Louisiana, at our Amelia Belle property. Subject to regulatory approval, we are planning to convert this property to a land-based facility with a modern casino floor and enhanced food and beverage offerings. Once design work is complete, we expect to begin construction on this project in late 2027. As we invest in the future growth of our business, we continue to balance our capital investments with our commitment to returning significant capital to our shareholders. To that end, we returned over $170 million to our shareholders during the second quarter through a combination of share repurchases and dividends. Going forward, we intend to continue repurchases at a $150 million per quarter pace, supplemented by our quarterly dividend. In summary, this was another successful quarter for our company. On a company-wide basis, we grew both revenues and EBITDA on a comparable basis with strong performances for our Midwest and South operations, our online segment, our managed business, and much of our Las Vegas locals portfolio. We continue to drive growth in play from our core and retail customers on a company-wide basis. The capital investments we have made at our properties supported growth during the quarter and position our properties for future success. In addition, we continue to build our development pipeline to drive long-term growth, and we remain committed to returning capital to our shareholders, repurchasing nearly 1.9 million shares in Q2 alone. Supported by a strong balance sheet, an efficient operating model, and robust free cash flow, our company is well positioned for the future and to continue creating long-term shareholder value. I would like to thank the entire Boyd team for their contributions to our continued success. Their hard work and dedication helped create memorable experiences for our guests, and we are grateful for all they do for our company. Thank you for your time today, and I would now like to turn the call over to Josh.
Thanks, Keith. During the quarter, our Midwest and South segment delivered another strong performance, giving us revenue and EBITDAR growth as well as achieving margins that were their highest in nearly two years. In our online and managed segments, we also produced strong results on a comparable basis. In Las Vegas, excluding Orleans and Suncoast, the Las Vegas local segment generated revenue and EBITDAR growth, continuing to deliver margins over 50%. As a result of Boyd Interactive's strong performance, we are raising full-year guidance for our online segment by $5 million to $35 million to $40 million for full-year 2026. Given the positive response to Sky River's recent expansion, we are raising our guidance by $3 million for our managed business to $113 million to $117 million for the full year. During the quarter, we invested $142 million in capital expenditures, bringing year-to-date CapEx to $297 million. We remain on track to spend between $650 million to $700 million for the full year. The full-year capital expenditure estimate includes about $250 million of maintenance capital, $75 million in incremental hotel capital associated with our Orleans hotel remodel, which is on track to be completed by the end of this year, $50 million in growth capital primarily related to completing Cadence and the design and preconstruction efforts related to our Par-A-Dice project, and $300 million for our casino resort development. In terms of our capital return program, during the second quarter we paid $15 million in dividends and repurchased $156 million of stock, 1.9 million shares at an average price of $83.60 per share. Our actual share count at the end of the second quarter was 73.1 million shares. We plan to continue repurchasing approximately $150 million in shares per quarter, putting us on track, inclusive of dividends, to return more than $650 million to shareholders this year, representing approximately $9 a share in value for our shareholders. Since we began our capital return program in late 2021, we have returned over $3 billion to our shareholders, reducing our share count by 35%. Even with our capital investments and capital return program, our balance sheet remains strong. We finished the quarter with traditional leverage of 2.2x and lease-adjusted leverage of 2.7x. We have ample capacity available under our credit facility, and our next debt maturity is in December 2027, which we intend to refinance later this year or in the first half of 2027. Debt balances at June 30th reflected $267 million in tax credit payments made during the second quarter that were related to last year's FanDuel transaction. Finally, as a reminder, we previously announced we had entered into an agreement to sell our Shreveport property and expect to complete the sale of this property by the end of July. In conclusion, our second quarter results reflected the benefits of our diversified business model, our ongoing capital investment program, and broad-based growth in play from our core and retail customers. Our strong balance sheet, consistent operating performance, and robust free cash flow all position us well to continue creating long-term value for our shareholders. David, this concludes our remarks and we are now ready to take any questions.
分析師問答
Thank you, Josh. We will now begin our question-and-answer session. If you would like to ask a question, please press the appropriate prompt to raise your hand. Should you wish to withdraw your request, please press *2. If you are using a speakerphone, please use your handset when asking your questions. We will pause for a moment while we compile our list of questioners. Our first question comes from Barry Jonas of Truist Securities. Barry, please go ahead.
Great. Hey, guys. Keith, you mentioned guests staying closer to home in the opening remarks. Can you talk a little bit more about what may be driving growth in the Midwest and South? And maybe help us sensibly think about that outlook given all the macro volatility we are seeing?
Sure. I think we've seen guests staying closer to home and spending their dollars closer to home for the last several quarters, whether that is a result of everything going on in the world or higher airfares. It just appears our Midwest and South portfolio is outperforming our Las Vegas portfolio. There is a lot going on with the consumer these days. For higher-end consumers, if they are in the stock market, they are doing quite well. There are larger tax refunds this year and other tax items that are benefiting some consumers. Those are all offset by things like higher gas prices and higher inflation. So net-net, what we can report is we are seeing good growth from our core customers and good growth from our retail customers in the Midwest and South. Importantly, we also see growth here in Las Vegas in our locals region. Our locals region for Boyd, anyway, is really impacted by declines in the destination side at the Orleans. But when it comes to the Las Vegas locals customer, we see good growth there as well.
Great. That may go into my follow-up. I wanted to ask about the destination business and the locals. Was the negative year-over-year EBITDA impact in this quarter about similar to what you saw last quarter? And maybe just walk us through how that shifts as we go into Q3 when you believe we lap comparisons. Thank you.
Yes. So Barry, I will try to take that. In the Las Vegas locals market for us, destination continued to be an impact. It was a similar level at around $5 million of EBITDAR, a level we have seen very consistently since Q3 of 2025. When we anniversary it in Q3 of 2026, it is not realistic to expect it to pivot to flat to positive; we do not see any indication those trends are changing. Our expectation is things will just be less bad. We put a number out there around $3 million as our best estimate for Q3, and we think a similar amount for Q4, maybe a little bit not as bad as Q3 but a similar level. So destination for us has been very consistent; we do not expect it to flip just because we anniversary it. Another impact during the quarter was Suncoast construction disruption. That was the first quarter we saw the full impact of construction disruption, and we estimate that to have been around $3 million for Q2. We expect a similar level in Q3 before Suncoast comes online and starts to contribute in Q4. The last piece of the Las Vegas local is Cadence, which has had a good start in terms of revenue growth, and we are adjusting the expense side of things as we move through time. We expect Cadence to start contributing later in Q3 and then continue to ramp into Q4 and beyond. Those are the moving pieces within the Las Vegas market. The truly local customer remains pretty healthy for us, and that is what is on the gaming revenue side mitigating the impacts we are seeing from destination customers and construction disruption.
Great. That is really helpful. Thank you.
Our next question comes from Steven Wieczynski of Stifel. Steven, please go ahead.
Yes. Hey, guys. Good afternoon. Keith or Josh, wondering if you could go through the cadence of the second quarter in the Las Vegas locals market. Just trying to get a sense for maybe what you saw across the different months in the quarter and if they were pretty similar or dramatically different. And then, Keith, you noted the first three weeks so far in the third quarter in July were similar to the second quarter. I just want to be sure that means outside of Orleans and Suncoast, the rest of the portfolio is performing in line with recent trends. I want to make sure I heard that right.
With respect to your last question, you heard it right. Outside of Suncoast and the Orleans, the rest of the portfolio here locally as well as throughout the Midwest is performing the same as we saw in Q2. Again, it is only three weeks into the quarter, so we are monitoring, but the trends are continuing. Regarding the cadence of the second quarter, every month is different, so we look at the quarter in the aggregate. June was probably a little softer, May was a little stronger, and April was fine. When you combine them all, the quarter was pretty much what we expected. I would not read any particular trend into the monthly differences.
And Steven, I'll just add what Keith comments around locals outside of Orleans and Suncoast and Midwest and South are correct. Even Suncoast and Orleans are performing generally in line with what we expected, but we had not seen an inflection in destination trends and we had construction disruption at the Suncoast at the level we expected. So the business in general is performing in line with what we expected coming into the quarter, and that continues in the first few weeks of July.
Okay. Gotcha. Thanks for that, guys. And then a second question around reinvesting in your portfolio. You've seen strong returns from properties you've reinvested in. Does that make you think about getting more aggressive with other assets, whether in the regional portfolio or Las Vegas locals? Any color would be helpful.
I would say we are probably at a pace of reinvesting that we can comfortably handle right now. There are only so many things you can do and do them in a high-quality fashion. The team is fully engaged. We have a list of projects that we will continue to work on once current projects are completed, but I would not expect that the pace or the amount we spend will pick up materially. It will continue, but not accelerate. We are comfortable with the cadence and trajectory of our current capital projects.
Our next question comes from David Katz of Jefferies. David, please go ahead.
Evening, everyone. Two things. One, the internal investment on Amelia Belle obviously presents a return opportunity. I'm curious how the decision to focus on that versus some of the larger properties in the portfolio was made. Was this really just the next best opportunity? Secondly, on external M&A, can you give us a sense of appetite and whether we might see some property-level M&A in the near term?
There are a number of factors that go into how we prioritize projects, and it's not appropriate to go into those details at this point. It is the appropriate time to tackle Amelia Belle. It is not a one-off project; we can do multiple projects at a time. There are a number of other projects we will continue to process and update you on as we get ready to start them. Amelia Belle does not postpone or take the place of anything else; it just happens to be next in line. On M&A, our view hasn't changed. We are interested and always looking. It has to be strategic: the right asset in the right market at the right price. They have to be higher-quality assets. Our business is performing well, we are returning significant dollars to shareholders, and we have a strong balance sheet. We do not need to do M&A, but if the right opportunity comes along, we have our eyes open and are willing to execute. It has to tick those boxes. That answer is consistent with what we've said in prior years; nothing's changed for us.
Our next question comes from Shaun Kelley of Bank of America. Shaun, please go ahead.
Yes. Hi. Thanks for taking my question. Josh or Keith, I wanted to go back to Locals for a second. You mentioned an additional renovation project at the Orleans starting in 2027. Could you talk about scope and scale there if possible? And second, what will net construction disruption look like in 2027 versus 2026 for the segment? Suncoast and the Orleans rooms should be largely done by then, so on net should we see less disruption next year?
You heard correctly that we are in the design process for a refresh of the Orleans casino space and public areas. It is one of our premier properties given its proximity to the Strip. We do not have the scale and scope to announce at this point; that will come later. As you think about construction disruption, we expect it to largely conclude at the Suncoast by the end of Q3, and therefore in Q4 we expect Suncoast to start producing better performance. Regarding the Orleans, we expect to begin that project in 2027. The initial work will be behind walls and off public space, so there will be no construction disruption at the Orleans in 2027, and there will be no construction disruption at Suncoast in 2027. So, as you think of the locals portfolio, it basically should be absent construction disruption next year.
The next question comes from Benjamin Chaiken of Mizuho. Benjamin, please go ahead.
Thanks for taking my question. If I'm not mistaken, you said ex-Orleans and Suncoast revenue and EBITDA were higher year over year. I think when you gave a similar update a quarter ago it was closer to flat. Did trends meaningfully accelerate sequentially?
You heard right. Absent Orleans and Suncoast, we did see growth in revenues and EBITDAR for the remaining Las Vegas locals properties. I don't have the exact sequential numbers on hand, but Josh may have more detail.
Q1 was more flattish, and then we saw better performance from that group of properties in Q2. It was contributions from a broader set of properties as we ended Q2, so the mix of properties changed and that contributed to revenue and EBITDA movement.
Understood. One quick one on downtown: did airfares impact the Hawaiian play at all, and is that something you are watching for Q3?
Airfares are something we have been watching for years and we monitor them regularly. In Q2 we did not see a material impact on visitation from Hawaiian guests; play from our Hawaiian guests was relatively stable during the quarter. We pay attention to airfares because they can impact travel from Hawaii, but we did not see a material effect in Q2.
From the perspective of downtown, it has been similar to the broader locals topic — destination demand has been weaker, and we are just not getting the pedestrian traffic we typically see when visitors are on vacation. Destination softness is affecting downtown as well.
Understood. Thank you.
Our next question comes from Steven Pizzella of Deutsche Bank. Steven, please go ahead.
Hey, good afternoon. You mentioned by early 2027 you will have renovated over 70% of Las Vegas hotel room inventory plus new F&B concepts and Cadence Crossing. Do you expect that to lead to gaining market share in the locals region?
We certainly expect to continue to grow. If you look at our Las Vegas locals market share without Orleans and Suncoast, we have actually grown market share in the Las Vegas locals market. With Suncoast coming back online fully renovated and Cadence continuing to ramp — it has been open for barely four months but has had a good start — we would expect to continue to grow our market share.
Okay. Thank you. Then just a quick follow-up: can you give an update on the current promotional environment in locals and in the Midwest and South?
Stable. Those that have been aggressive remain aggressive and those that have remained stable have stayed stable. That is true both in Las Vegas and around the country. In our markets we have not noted any considerable pickup in promotional aggressiveness.
Our next question comes from Brandt Montour of Barclays. Brandt, please go ahead.
Great, thanks for the question. I wanted to circle back to the managed business. Josh, you gave updated full-year guidance for the managed business. The implied back half in that full-year target seems to step back from Q2 levels. Is that driven by a post-expansion cooldown at Sky River or something else?
There is a bit of a slowdown from the level we saw in Q2; when you open something new you often see a lot of demand early, and then it settles in at a more sustainable level. That expectation went into our guidance increase. We still expect growth, which is why we increased guidance overall by $3 million, but some of the initial demand seen in Q2 will normalize in the back half.
Okay, helpful. And on online, you guided up for the segment. Could you break out the drivers between market access agreements and Boyd Interactive? Boyd Interactive appears to be growing nicely — can you describe the momentum there?
Think about online as two buckets. One is market access agreements; those are largely in system and consistent with what we discussed before related to the FanDuel transaction, roughly $1 million a month or about $12 million a year for market access. The rest is Boyd Interactive and the growth in that business, which is why we raised the outlook for the online segment.
Our next question comes from John DeCree of CBRE. John, please go ahead.
Hi, Keith, Josh. Good afternoon. I wanted to go back to a comment about operating efficiency in the Midwest and South. In Q1 and Q2 we've seen flow-through step back up into the 40%+ range. Did you make any changes or tweaks in that segment's operating structure or programs that explain the increased flow-through? Is this sustainable?
Thanks, John. The improved flow-through is largely a reflection of addressing some issues we had in the second half of last year where revenue growth had more limited flow-through. When we dug into it, it became clear there were benefits-related items and other moving pieces. We reset some programs to address that and we believe we have it under control. As we move through the year, flow-through will depend on usage of plans and other factors, but right now expenses are manageable, and that is reflected in strong margins in the Midwest and South and in the rest of the portfolio outside of Orleans and Suncoast.
Management teams are focused on expense management every day, finding ways to mitigate costs and improve operating efficiency. Some quarters are more successful than others, but this is a continual focus for the organization.
Thank you. That's all for me.
We have time for one last question from Daniel Politzer of JPMorgan. Daniel, please go ahead.
Hey, good afternoon, and thanks for taking the question. It sounds like on the locals business you're getting through destination softness. Suncoast disruption ends in Q3, Cadence should start contributing. When can we start penciling in top-line growth again in this segment? Could we see it begin in Q3, or should we wait for 2027?
Daniel, from an EBITDAR perspective, we expect to start seeing maybe flat to growth in Q4. You could see some revenue growth in Q3, but that will depend on how quickly we finish Suncoast. The plans now have Suncoast going later into Q3, so we may not get the full top-line benefit in Q3. The more visible improvement really looks to be Q4.
Got it. Thanks. Quick follow-up on Virginia: can you remind us how you think about cash-on-cash returns for the approximately $750 million to spend there?
Our general target is roughly a 15% cash-on-cash return for a project like that. That is generally what we would expect it to ramp up to, maybe not necessarily in the first year but certainly as it transitions from the first to second year.
Got it. Thanks so much, everyone.
This concludes our question-and-answer session. I would now like to turn the call over to Josh for concluding remarks.
Thanks, David, and thanks to everyone for joining the call. If there is any follow-up, please feel free to reach out to the company.