Boyd Gaming Corp (BYD, Financial) released its Q3 2023 earnings report on October 24, 2023. Despite facing economic challenges, the company reported solid performance with revenues of $903.2 million, up from $877.3 million in Q3 2022. However, net income for Q3 2023 was $135.2 million, or $1.34 per share, compared to $157.0 million, or $1.46 per share, for the same period in 2022.
Financial Performance and Challenges
Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the company's performance, stating,
Our third-quarter results reflect the value of our diversified business model. Continued strength in play from our core customers, strong results from Sky River and online gaming, and growth in our non-gaming business all contributed to a solid performance in the quarter. However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment."
Financial Achievements and Capital Allocation Strategy
Despite the challenges, Boyd Gaming Corp (BYD, Financial) demonstrated the growth potential of its property reinvestment initiative, delivering record quarterly results at the Fremont following its recent expansion project. The company also remained committed to its capital return program, having returned over $1 billion to shareholders in the last two years through ongoing share repurchases and dividends.
Key Financial Details
Boyd Gaming Corp (BYD, Financial) reported Total Adjusted EBITDAR of $320.8 million in Q3 2023, compared to $337.7 million in Q3 2022. Adjusted Earnings for Q3 2023 were $137.3 million, or $1.36 per share, versus $159.2 million, or $1.48 per share, for the same period in 2022. As of September 30, 2023, the company had cash on hand of $269.2 million and total debt of $2.9 billion.
Company's Performance Analysis
In the company's property operating segments, core customer play increased on both a sequential and year-over-year basis, and hotel and food & beverage revenues rose year-over-year. These gains were offset by year-over-year softness in retail play. The Company’s Online segment benefitted from strong results from FanDuel’s operations, as well as the addition of Boyd Interactive, acquired by the Company in November 2022.
Dividend and Share Repurchase Program Update
Boyd Gaming paid a quarterly cash dividend of $0.16 per share on October 15, 2023. As part of its ongoing share repurchase program, the Company repurchased $106 million in stock during the third quarter of 2023. As of September 30, 2023, the Company had approximately $426 million remaining under current repurchase authorizations.
