Boyd Q1 Preliminaries Suffer Unsurprising Dent From Crisis

Boyd Gaming Company released its financial preliminary results for the first quarter ended 31 March 2020. Unsurprisingly, the COVID-19 crisis has made a major dent in the headline figures with the company recording a $18.3 m Q1 net loss compared to a $45.5 m year-on-year net profit.

The income tax policy of the business for the first quarter of 2020 requires a $7.4 m charge to create an allowance for depreciation of such deferred tax assets. It added that $680.5 m in sales for the first quarter of 2020 dropped year-on-year from $827.3 m, while the gross adjusted EBITDAR was $144.4 m versus $223 m in the first quarter of 2019.

President and CEO Keith Smith said: “During these unprecedented times, our highest priority is the health and safety of our team members, customers and communities. We want to express our gratitude to our first responders and health care workers, who have put their own health and well-being at risk to protect us all.

“We are fully supportive of the actions taken by state and local officials to help slow the spread of COVID-19, including the closure of our properties nationwide. We look forward to re-opening our properties ‒ following strict safety protocols that will meet or exceed the requirements set forth by health officials ‒ when state authorities determine it is appropriate to do so.”

He continued: “Prior to the closure of all of our properties in mid-March, our company began the first quarter with a strong performance, posting two consecutive months of solid year-over-year growth across our nationwide operations. And while our first-quarter results were significantly impacted by property closures, we have taken broad-based actions to reduce expenses and preserve liquidity.

“As a result of these actions, and the progress we have made in recent years to strengthen our balance sheet, we believe our company is well-positioned to sustain itself through the closure period. We intend to emerge from these challenging times as a more efficient and operationally focused company.”

Updating investors on operations, Boyd reported that the company was forced to close all 29 of its properties nationally under state and local orders aimed at minimising the spread of COVID-19 during the period from March 12 through March 18, 2020. All Boyd Gaming facilities remain closed to the public as of 28 April 2020.

The company had $831.2 m in cash on hand as of March 31, 2020, including $670 m drawn from its revolving credit facility on March 16, 2020. Total March 31 debt was $4.44billion. Due to the continuing effect of the COVID-19 pandemic on operations, it has removed all previously issued financial guidance including full-year 2020 adjusted EBITDAR guidance.