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Boyd Gaming Corporation (BYD) CEO Keith Smith on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Results Earnings Conference Call

April 26, 2016, 05:00 PM ET

Executives

Josh Hirsberg - Executive Vice President, Chief Financial Officer and Treasurer

Keith Smith - President and Chief Executive Officer

Analysts

David Katz - Telsey Group

Carlo Santarelli - Deutsche Bank

Chad Beynon - Macquarie

Felicia Hendrix - Barclays

John DeCree - Union Gaming

Operator

Welcome to the Boyd Gaming first quarter 2016 conference call. All participants will be in listen-only mode. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to Josh Hirsberg, Executive Vice President and Chief Financial Officer. Mr. Hirsberg, please go ahead.

Josh Hirsberg

Thank you, Andrew. Good afternoon, everyone, and welcome to our first quarter earnings conference call. Joining me on the call this afternoon is Keith Smith, our President and Chief Executive Officer. Our comments today will include statements that are forward-looking statements within the Private Securities Litigation Reform Act, including statements regarding our recently announced pending acquisitions and our guidance for the full year 2016.

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 that include those disclosed in our earnings release, our periodic reports and our other filings with the SEC that may impact our results.

During our call today, we’ll 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 lease in our Form 8-K furnished to the SEC today, and both of which are available in the Investors section of our Web site at 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.

Finally, today’s call is also being webcast our live on our website at boydgaming.com and will be available for replay on the investor relations section of our Web site shortly after the completion of this call.

I’d now like to turn the call over to Keith.

Keith Smith

Thanks, Josh. Good afternoon, everyone. Welcome to our first quarter earnings call. As I’m sure you’ve seen, we’ve announced two separate acquisitions over the last several days. Yesterday, we announced that we had reached a definitive agreement to acquire the Las Vegas assets of Cannery Casino Resorts. And of course, last week, we announced a separate agreement to purchase the Aliante Casino Hotel & Spa. These are exciting growth opportunities for us. And later on this call, we will review these acquisitions and the benefits of adding these new properties to our portfolio. We believe these acquisitions will deliver strong long-term return for our shareholders.

But before we talk about these acquisitions, I would like to start with a review of our first quarter results. Our company continued to perform at a high level and deliver strong results in the first quarter as we achieved our seventh consecutive quarter of companywide revenue and EBITDA growth. The strong trends we saw in 2015 continued throughout the business in the first quarter.

In our Las Vegas Locals operations, year-over-year revenue growth accelerated to its strongest levels in more than a decade, thanks to a strengthening local economy, recent reinvestments in our business, and most of all, an excellent performance by our property management fees.

In Downtown Las Vegas, double-digit EBITDA growth continued as well as we benefited from sustained growth in visitation throughout the downtown area.