Boyd Gaming has reported a Q1 2022 revenue rise of 14.3% to $860.7m during a record first quarter for the US casino operator.
Net income climbed 59.4% to $162.9m, while the majority of revenue, at $668.0m, came from the firm’s gaming operations, up 8.1% year-on-year.
Food and beverage brought in a further $63.6m, while rooms and other sources of revenue brought in $42.4m and $86.6m, respectively.
Broken down by region, Midwest and South continued to be Boyd’s largest operating region by revenue, generating $583.7m or 67.8% of total revenue.
Las Vegas locals were the second most significant group of properties for Boyd, generating $227.6m of revenue, or 26.4% of the total. Properties in Downtown Las Vegas accounted for the remaining $49.5m, or 5.6% of the total.
Adjusted EBITDA for the quarter hit $312.5m, up 17.2% from the $266.7m EBITDA recorded in the prior year period.
With operating costs and expenses coming in at $609.7m, the business was left with operating income of $251.1m, up 29.6% from the $193.7m recorded in Q1 2021.
Total other expenses of $40.3m left Boyd with an income before income taxes of $210.8m. After income tax provision of $47.8m, the operator declared a net income of $162.9m, up from $102.2m.
This gave the firm basic net income per common share of $1.45, up from $0.90 in Q1 2021.
As of the end of the quarter, Boyd had cash on hand of $403.0m and total debt of $3.1bn.
The business reinstated its quarterly cash dividend with a payment of $0.15 per share on 15 April, which is more than double its previous quarterly dividend. The prior dividend was suspended in March 2020 due to the impact of the Covid-19 pandemic.
As part of its ongoing share repurchase programme, Boyd brought back a further $132m in stock during Q1. The business had approximately $149m in current repurchase authorisations remaining as of 31 March.
“In the first quarter of 2022, our disciplined approach to managing the business and strategic focus on our core customer once again produced exceptional results,” said Boyd president and CEO Keith Smith.
“During the quarter, strong performance from our core customers and sustained efficiencies in our marketing and operations contributed to record revenue, EBITDAR and margin performances on a company-wide basis.
“Additionally, we took an important step in advancing our online gaming strategy with our agreement in March to acquire Pala Interactive, which will provide us the technology and expertise to build a leading regional online casino gaming operation.”
Boyd announced it had agreed to acquire Pala Interactive on 28 March for a total cash consideration of $170m.
The firm said the acquisition marked the next stage in the execution of its iGaming strategy. The transaction is expected to close by the first quarter of 2023.
Boyd president and CEO Keith Smith: “We bought Pala because it gave us both the technology that we needed to roll this out, as well as the operational and marketing expertise to run this business.”
Speaking to analysts during Boyd’s Q1 earnings call, Smith said on the future of the firm’s iGaming business: “I wouldn’t anticipate any significant additional costs. We bought Pala because it gave us both the technology that we needed to roll this out, as well as the operational and marketing expertise to run this business.
“In terms of rolling it out, it’s really more about other states approving or adopting this legislatively. We’re taking a regional approach, focused on the ten states where we do business and maybe a few adjoining states where we get a lot of customers from.
“[There will be] no significant incremental costs as we go forward, [and] no anticipated additional acquisitions to be able to move this forward,” Smith concluded.