Market Overview

Highlights from Boyd's Q4'13 Earnings Conference Call

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Below are some highlights from Boyd Gaming's (NYSE: BYD) fourth-quarter conference call:

CEO - Keith E. Smith

  • Company is in better operational and financial position than year before
  • Introduced penny lane in 12 BYD locations and is having a positive impact on the business
  • The changes done to BYD has created sustainable growth in las vegas
  • Improved flexibility which allows Boyd to take advantage of several growth opportunities
  • Landscape for acquisitions is bare but there are opportunities
  • New gaming developments will also spur growth
  • The opportunity in japan is much broader than previously thought
  • Boyd has been competing for a regional license
  • From an organic standpoint there are many chances to innovate by reinvigorating non-gaming amenities and expanding the player loyalty program
  • Penny lane will give properties a new advantage as Boyd introduces it
  • Boyd is pleased with the online product it offers in New Jersey which shows the reputation of Borgata
  • Boyd has grown significantly and Borgata counts less in overall results than year past

COO Paul J. Chakmak

  • Spending and visitation declined among casual players
  • Business among top tier players is as strong as ever
  • Las vegas locals business is growing thanks largely to operating efficiency
  • Non-gaming business grew as well largely due to the hotel business
  • Downtown business has shown encouraging strength
  • Weather has had a significant impact on our business in the midwest, south and east coast
  • Results were lower than expected in atlantic city
  • Total market share of 43% for online gambling
  • Weather continues to have a negative impact
  • Las vegas has returned to growth, and midwest and south should as well

CFO Josh Hirsberg

  • Elimination of federal tax burden will contribute to cash flow for years to come
  • 8-10M increase in cost due to the weather

Q&A

  • No contribution positive or negative from online gaming for the full year
  • There are acquisition opportunities out there, they just have not been ones that make sense to Boyd's business
  • Atlantic city market has gotten competitive due to the closing of the Atlantic Club
  • Open to selling assets if they make strategic sense

Posted-In: Earnings News

 

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