Boyd Gaming (BYD) 8 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the Boyd Gaming Fourth Quarter and Full Year 2023 Conference Call. My name is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which is being recorded on Thursday, February 8, 2024. [Operator Instructions]

Our speakers for today's call are Keith Smith, President and Chief Executive Officer; and Josh Hirsberg, Executive Vice President and Chief Financial Officer.

include Litigation are Reform will the statements today Securities Private Act. comments statements forward-looking that within Our All forward-looking update statements today's forward-looking date, in our comments we statements. no are undertake obligation to or the and revise as of results any statement. in those forward-looking may differ Actual from projected materially with certain uncertainties, filings are that may disclosed in including There SEC those impact risks our and the our results.

we will financial non-GAAP make measures. to today, reference call our During

certain and our our to non-GAAP X-K For a a do financial earnings financial to inability non-GAAP expenses. please SEC press refer of not measures forward-looking release which at our the complete to to GAAP to of are Form and measures, furnished historical provide both special investors.boydgaming.com. project of due reconciliation today, reconciliation available We charges

being and for boydgaming.com is call shortly will Relations of at live in replay the our webcast call. available after this section website Investor the of be completion Today's

to would with over like that, to I Keith? turn So the Smith. call now Keith

and XXXX David, record afternoon, everyone. continue delivered we build upon last years. great as company over was we have several good year performances of the our the to Thanks, for each another

the set well a for achieved operating consecutive remaining We and XXXX basis. above year third full revenue we was EBITDAR, historical records revenues year and margins EBITDAR levels. on with full both year records

finished from performance. and with by quarter we business. revenues both our core growth full from and year stable our This continued growth the performance property managed fourth a was year is solid strength in non-gaming our we diversified our saw online from complemented play This a with strong operations to customers strong And portfolio in tribute businesses. as growth our

down million, growth rose from segment. During slightly year. X% our revenues million, our quarter the to company-wide online the was fourth record last driven $XXX fourth quarter by $XXX EBITDAR for in quarter,

fourth the for operations, several quarters. property at revenues improvement from less gaming last a X%, down notable quarter the were Looking than

customers core our play of quarter, grew During the rate the year. at strongest from the

play was the smallest of play, have by over since growth retail grow, seen quarter was the lower for decline in non-gaming quarter to year. continued this retail X.X% we rising revenue first While prior offset XXXX, and the year-over-year the

exceeded line margins operating delivered years, is margins reflecting of for with the this team's operate a XX%, the last in over economic we efficiently the variety Property quarter our conditions. have ability to through level X

customers rate results with in for Now each EBITDAR were demonstrating segment. Vegas similar our segment, segment. quarter Play the was also moving strength for quarter In our the Las line with Locals both third sequentially continued play to a Retail revenue third grew fourth at this our core quarter, expectations. consistent levels. to from customer and of the

continues business during non-gaming to hotel up perform quarter. revenues X% well Our the with

with managing excellent in quarter. the expenses XX% once job did again Finally, our a teams difficult property fourth our in exceeding margins an environment, in Locals operations

Looking last XXXX year-over-year produced segment. ahead Recall so performance tougher first year, record that we comparisons. facing to in a Locals are quarter our we

the in see expect of our competitor the remodel at In market room some addition, Hotel. project recent impact Coast the a Vegas Las also opening to from new Locals we and Gold

with levels Having through holding similar are said in February. steady segment so this, encouraged in customer looking Las first the fourth quarter Vegas the are to we trends that quarter, far play Locals early overall volumes

record the benefited Fremont Revenues at Station results during both performance. Vegas. rose fourth while last from These construction Moving the slightly, next to year's Main and quarter quarter. completion projects of the EBITDAR equaled Street Downtown Las

fourth Main record quarterly Fremont during its Downtown of projects pay levels performance construction impacted these While Street the to while quarter, XXXX. throughout best most are The performed the of results year, our beginning investments these at off. had

retail from play our also segment solid Downtown quarter, in play while also saw customers rose. the growth Our core during

our are we now performing about Vegas complete growth in Downtown record the optimistic the for and construction XXXX. levels, healthy is our segment. Las Fremont of at projects direction ahead, Vegas Looking Downtown Las With business our poised

Vegas of the is near both our the hotel Downtown first are Locals supported the operations economy. for in at are Las continued demand In Super this properties. Nevada strength weekend, by Southern optimism term, about strong excited Las experiencing as business Bowl we our Our Vegas' and we cash

XXXX, vibrant, exceeding longer nearly the of the visiting Nevada remains In people year tourism sector more million than by with X%. the direction the term, prior XX in

reached its daily XXXX, room record in in business $XX.X in billion convention rates over higher, trend than in was Southern XX the XX% the million topping Vegas a And And Nevada revenues XXXX across Gaming up Nevada high in below continue more all-time the Southern about XXXX. XX% for set a XXXX, X.X% more XX% Average increase Airport through pass to last market. increasing than record people year, the X%. Las year by XXXX.

engine growth economy. of in the continues development projects Vegas tourism. serve Southern billions Las construction growth the Of job #X more With job metro last the rising XX the under in the across employment X% for major X dollars with across the employment with beyond to This Southern areas, XXXX. goes creation XX Las largest Vegas sector of nation's broad-based, Nevada with strength total Nevada sectors. ranked than year, was for an of economy as Valley, And economic

year. saw the in strongest investments we quarterly year, property made from segment prior results Moving returned we Both essentially and operating the margins various than outside Midwest even growth more EBITDAR Gaming XX%. the with XXXX. the South saw Midwest our revenues over we performance fourth of and encouraging from segment all revenue to in the South year, Nevada, our with increased prior were and quarter. And of

received beverage Our by have and been increase X% food in customers well new helped revenue drive quarter. amenities a during the and

giving fourth winter results been X optimism customer rebounded of severe storms levels, with have But direction past quarter first the quarter passed, by us impacted ahead, these have the over now business. in Looking January's the trends this weeks weather. to

basis, the in revenue by in driven earlier segment growth for full $XX On our online XXXX. segment, with in Next, estimates, fourth our EBITDAR million line Ohio in EBITDAR XXXX. primarily was early introduction quarter total of performed our year in the with sports betting of a online and

Looking and And finally, to Sky quarter, $XX prior XXXX, betting this the revenue River we $XX online the maintain in and continued grew another are California. produced in thanks over strong level expected full in strong year in come results markets million sports performance. Both year. to fourth Northern segment million to our as with new performance other this business expect managed quarterly online of ahead, EBITDAR, to no year EBITDAR at

EBITDAR property, with from driven Sky including significant Sky is management million, segment by expect the expansion other earned Tribe year XXXX, million facilities. of space, of Rancheria approximately tower our exploring given current additional we $XX maintain this convention and fees a And year, the full River. will of strong mainly level Wilton and the generated EBITDAR performance, hotel and full business $XX of its River. In For a the casino of performance River, including Sky meeting managed

not about property. While been we this long-term potential growth of the have plans are optimistic finalized,

and improving and the investments renovate driving the across in making core customers, from The XXXX. our businesses to was our company, from renovations from the to dozen of Fremont, we have all, experience, throughout supporting for plan record customers, outlets fourth continued our XXXX close upgraded a bars strong online the we in and restaurants with a number recent property strength returns our are our customer food growth managed a year opening core new beverage casino been strong growth property in visitation country in So quarter solid nearly play similar and another at or from of XXXX increased and or business. After and the completing investments. upgrade

This and our Valley hotel in follows Main project remodel rooms food our plan the beverage these Station Charles at late we Coast, in renovate St. Blue the investments completion of Forge in XXXX. at and Chip, offerings, room Street Beyond Gold Ameristar to XXXX.

spacious progress of these and non-gaming midyear, with addition Treasure to investment near investments, for a gaming excellent to long-term amenities. facility our complete continue land-based experience growth. it Orleans Once space boat Chest our position significantly to will expanded transform X-level guest In from project Treasure single-level, Casino a this enhance the Chest additional around property and New on river to make we

we have more we'll near we Treasure plans finalizing in of with details of and completion the project, for the Chest are to you future. our As projects, share next growth set near

our strategy important is element long-term allocation. our Another capital of approach to balanced

in XXXX, million was full But on a this third plan year by pace $XXX As sheet. In conclusion, our company, beyond regular in supplemented while strong as record dividend results, of producing was XXXX year repurchases quarterly continue strong our achievement. focus we strategy, payments quarterly consecutive of significant performance part results. of balance maintaining record of another share year our to a keeping current completed we our this by

on growth resulting important customer our customers, segment. First, in we core maintained our continued from focus this

Second, investments. beverage our Fremont online results delivered River, our from and project returns growth the with gaming, food expansion initiatives Sky hotel excellent recent and strong and

for and attributable our coming in in continue execute property strongest capital our the model. operating of customers level X we we our XX% than who management capital our delivered is But allocation, of finally, strategy, to level with importantly, our is XXXX, performance for have that memorable to consistently margins teams to team sheet in members while million years. And more service our $XXX to it maintaining balance a consistently team the continue efficiency, to efforts Third, high in approach leadership a a dedicated our the at company's exceeding shareholders balanced pursue now result quarter, of back. level provide our keeps returning a history. Strong most XXXX

you team turn today. I company's like time for call like to to thank over the to every success. Thank I'd contributions to their Josh. for our your member would now Boyd

generating strong basis. revenue XXXX record a company, in third was was This fourth Keith. year our for EBITDAR by on row company-wide quarter. a of a Thanks, another and record highlighted our year

the Our and growth our segments, by online revenue of our in business managed was reflecting benefits diversification. EBITDAR driven and XXXX

from softer inflationary have properties all faced challenges year customer Our and a retail pressures.

operations. also in property our are However, we conditions seeing improving

have appear as Our completely cost during focus is paying moderating. off, pressures see customer the are while they segment. And customer And XXXX, not country continue growth be retail we to from improving. been on away, play this core trends to going customer in across our our

a with XX% done environment have above teams last X job property managing years. this operating in for quarterly consistently the good very EBITDAR property margins Our

operations our of $XX operating segment online generate Keith XXXX. expect as segments, mentioned, and to million Beyond we other million $XX in to property our EBITDAR

As include to pass-through a revenue both amounts our related online as you expense. recall, and tax partnerships. recorded online These may are our results

amount fourth quarter tax the in $XX pass-through the $XX XXXX. quarter, During fourth of compared million was to the million

moving to the segment, $XXX year, managed million in full the $XX to For of approximately and million in XXXX. And other our generate amount was to million XXXX tax in expect compared $XXX we EBITDAR XXXX. pass-through

this to completely as We expect we an the and evenly from compared more has the item Tribe. outstanding that XXXX. One in In income we will XXXX, to this been EBITDAR Rancheria now we not loan to generate year be generated from interest income to Wilton related additional segment. interest $XX earned loan housekeeping XXXX. segment The therefore, throughout spread repaid million during

interest in net $XXX million. result, should expense a approximate XXXX As

In terms fourth expenditures, we for total $XX the XXXX of a million for million investing quarter, capital the of year. in $XXX finished

include Treasure expect about $XXX starting million second plans capital million, year, investments. This capital growth of a for in maintenance growth year. of million half we recurring to growth the new to facility expenditure plus completing and our this projects additional our land-based XXXX, include capital Chest program $XXX the For $XXX

to expect also spend spoke about. Keith We on $XXX renovations room million the an incremental that

million per million XXXX, stock, approximately our respect to to total we X.X most shares during share. for an at about quarter, of program, price in $XXX estimate the acquiring capital expenditures repurchased $XXX $XXX recent $XX.XX capital average So of million we return million. With

XX%. an remaining have finished share shareholders year, the quarter million $XXX count overall with repurchase under in in calendar late had of program authorization. per repurchases. We of XX.X dividend $XXX we current with For XXXX. Since $XXX company's X.Xx. we've We remain million With have our representing than our leverage to and million million sheet near-term we no agreement, borrowing million million ongoing of history. with actual returned $X.X X.X and share shares. year more ample shares XXXX return repurchased our during ended returned total by lease-adjusted we stock, to capacity of XXXX program, our in and share combined our our than When full capital strongest year the maturities We to count our low $XXX leverage resumed balance under X.Xx billion shareholders XXXX, reduced committed the leverage, credit we and created in more

share. XXXX, flow more from significant than generated a of free also or cash per $XXX of more assets. In flow cash free we million diversified portfolio than amounts We generate of $X.XX

strong our company. David, existing questions. capital As to a to were balanced pursue our that cash we significant approach ready free while for investing of a allocation, to growth further able in concludes capital balance opportunities and to result we're portfolio our flow shareholders pursuing and take remarks, our any grow and returning our organic to sheet,

[Operator Instructions] Steve Our Stifel. first question Wieczynski comes from of

So you for Josh, give guidance guys the don't year. look, formal full

wondering help year of us and there's you the else like Downtown, some that in guidance about as thinking face guys to quarter stuff might the about up this coming year? his the your think market, Midwest for XXXX? Locals South you could talked help and maybe given level, like a how about if have be some just Keith parts And business. high prepared Locals we You we cadence record the of you're if thinking maybe And us that. But around last out from headwinds build here certain about the need anything first and market in of remarks

Steve. Sure,

I remarks. think to tried we've outline pretty prepared well, our it look, So in

and I Las think as early, performing our still are Vegas we market, very Locals it's consistently think about properties the well. while

new some Keith plays we a got to We've then of face with little see be to to we that construction the you out as that we with a bit Las the the how go and need we through early, third related As of think year laid we comp. we'll through quarter. so for have go the may that Vegas Coast the respect first And quarter Locals a of challenges out. little challenge that will competitor,

us terms been Locals from underlying year I and think in I we some year, sit really, Downtown has the will construction of confidence the where business. Downtown, Las XXXX with for think plagued trends on the give disruption without construction customer trends that of level today, Vegas and disruption. the a in throughout off Downtown really be and

retail year-over-year what and better. In it should in been. bad So Midwest it I South, more the customer seeing stabilization year-over-year better do less gradually has we're is the or than segment, think getting

segments. across a combined improving stronger of our with While is true and all core which customer, business really

been what Midwest it looking behind -- -- But think in I South, with that the we've what's that and customer been weather difficult difficult feel and January. beginning similar seen made once the at got seeing. to trends has we've just we've us, the very

this add us, a So a in QX I to feels comparison customers there's least are year. this getting to want it's been get but very behind as difficult some start but the we LVL, if related not to the know it worse, at of to like difficult at that? point, We've don't you anything got stable. Keith,

in it summarizes lot Josh's well. to else talked this of add. Nothing I Josh, prepared I between a it comments, remarks, No, we where think our about think

we the back wondering quarter that fourth one one And the the that to was benefit meaning if clean quarter, essentially just segment about Midwest, the and line. a cost Josh, market go think was if it's the there or margins on grew there then, in no And year-over-year.

to you quarter. want number up that in kind a put there make the fourth of Just guys sure that's clean

is business. seasonality some there think Well, I look, into our

expenses, our is we good really so don't look of business. rate necessarily for -- perspective, And segments when our any run at a QX from we really our think

QX look I and of of certain seasonality we back recognizing have QX combination some expenses. aspects people at use with to think we our would and QX, that. ask

for terms of really. expenses a So is I segments, good think of our run rate don't any in QX

And an would Do Okay. quick Josh, one Got you. you idea like what have corporate expense 'XX? housekeeping. look for

or of headcount-related we level in and generally increase expect Since X% that going really over XXXX. where it delivered most I corporate that's you what that's is like up of should in think so, expense

of Santarelli Carlo from Bank. comes question next Our Deutsche

about have competition has I the talked -- I XQ kind comp Seasonally tougher understand you the see, be historically, but Clearly, of Locals to levels you and month in a bit full and to XQ. do a for to quarter being commentary tended volumes similar a better the play perspective. EBITDAR experienced the you're the of the first a XQ to of quarter. going the essentially relative obviously, to to trends quarter-to-date than year XQ XQ little I little try from just XQ. an through what was last XQ the have trends, in first relative wanted bit speaking,

the And of perspective, when be quarter quarter? So to challenging the to historical from XQ? magnitude materially is compared should differ the most seasonality level first expected a it from

I right. think Carlo, you're So

we think results last out year. the that I tried comp our was to first of a quarter, very lay because record what challenging

be haven't of -- as So we a Durango. days first significant opening the the a We will -- seen of QX, any we we implies few most indicated QX like lot and which the quarter challenging February, look as impact will the year. of of in customer through January result trends,

has still early, seen we been XX property it's only Now any open days, significant the but impact. haven't

than [indiscernible] other it So that.

at absent you as of think rest about its a look which lot Gold Locals a half like in out Coast, XXXX. of from rooms year the the room will I year have some should market, of remodel disruption the time, a of think the service

Yes.

probably this not going that is of that's the going was Carlo, you people, that think helpful to restrictions and do mask I on, in -- particular to reason that of so seasonality it's Las was and COVID some I QX year, quarter. had things out to so play why Locals last nature think just for the not with and remind Vegas strong correctly referenced, removal the

not this [indiscernible]... better but XQ simplify, Okay. Meaning, perhaps Josh, just quarter to better, XQ, than historically,

right. That's

Okay.

And right. All sorry. -- then Okay. yes,

million that consideration taking quick it Just numerous into and weighted, Coast as in -- somewhat as the go think a seamless disruptive? about Gold the like that? that can second way think room projects, based those are it There you regional X that is across, CapEx was I And be $XXX X half, on in follow-up, about at stuff properties seems the you should I mentioned. we properties. regional more of all being Or on remodels the you

issues take There So I service regional we're able think that them time. of with rooms out more causes differently. do to Coast at structural respect a us the remodels, to the room some Gold are to with

The be will Forge and other Blue on room the Chip where able be to there'll St. remodels that at rooms and that do have impact limited we'll will out service of Valley business. Charles, happening number be of smaller Ameristar

not disruption So any I real would those. be from factoring in

question from comes Our of next JPMorgan. Joe Greff

from you've to Locals hit it's faced trial you market? in Durango, the competitive since than Las patrons at trial XX about think Durango supply Vegas I of say, new the you your only Locals peak or Back market. point you the But impact think know that impact up. this gaming been to over do do times different days other opened going when the is

is to have It's a the through And diligent days, open, we've we speak. a we XX to significant hit ready We're or behind our it's seen to teams so this. business. really not say, to other way you about I'm Look, we're worst trial XX the hard Joe. continue impact. very pleased and manage with to that, say than the question that able been approach operating answer, us, be how peak been cautious to haven't going But as very

opening every different, every is is So different. different, every is property market

that. tough And to really so it's peg

the comments operating areas magnitude And your highlight enterprise? those and cost pressures hard the seeing segments Great. about what the of moderation Josh, you moderating. it's to most hear on you're expense maybe are then, in specific Can not

Yes, figure I'll do you that best to help Joe. my out, try to

our Vegas, is, much labor really new from competitor, been of I marketing. customers. areas out perspective, Even be where COVID. think of since categories guys remain deviated know have a we the our revenues start I'll is And not how high which that our cost of and disciplined will very strategy. -- largest to very about we percent look, here at have level, a the we as expense really We've in consistent investing with you from Las coming marketing a with X continue

increase out say think of the So of is the marketing of and it. the and our last of source aspects -- pressure to I have out over member a that self-inflicted, a hasn't One one COVID. From there's X we would last second XXXX. labor of is where really rolled been to minimum not the really hour, has with consider team what a really coming that years, wage $XX perspective, it's we wage in been livable X really half an to piece of happening -- chosen

start labor So year that it's some of of if until to we're in going you second anniversary increases. the take before think half next to to about labor sense, able those

to the just that levels the expect We X not over still increases, the last or we've to pressure see seen years. but

has category been about historically that talked big we've utilities. Another

For increase us, big utilities. obviously quarter, see not level and in expense, next in category really we that year. we're a fourth It's increases the expecting a didn't of seasonal in the

through would about then the our work those half expect we'll the work basis. year, get happened of big We through a year increases categories. we've the talked At in year have seasonality impact. And those so we that second of similar in that call last property but half one insurance. to before in I as in of we're of out year-over-year level renewals, to second on the the we'll through terms saw which before we And don't XX, the increases is comparable

bigger So historically. those are seen we've the pressure where categories

We have because said just we're what those we wouldn't a rollout quarters I that the is, run X main we look worst think to the experienced. XXXX. saying seen I have -- the the QX we an But I on like at of terms year will increases. expenses XXXX that expect will as earlier we've see affect rate in of or And don't And we in so in level to it And as it's it XXXX. work of increases. is first use the how in now believe the more -- some comment, of depending through X we those of thesis

from Our next of Barry Truist. question comes Jonas

I give color how some the performing? how online us wanted us to to any maybe guidance -- with on start also that's Boyd Boyd Can into relative And you flat factors Interactive. help FanDuel? understand Interactive

Yes.

a and is Boyd very somebody that owned PA, launched obviously the performing run think by in So Interactive since in well. We little over a brand a for else. year but still both us, been online January, venture launching a casino we've out Jersey social new earlier business. We've have product been successful it New Stardust being under I gaming that there, in

so with or way BXB operates Remember, also that it's business performing. existed we're happy And a it smaller the very we that I it bought think has when it.

online a as be sports to that Boyd when the on overall, will as think of that look, online for that's job reasonably great executing betting it we doing It both the us. to segment we term. long-term year. And with for or short not is grow a it's of the online front Interactive category, we're I and flat the performance. play this plan about pleased in business. continue combination well a team a flat describe The So It's looking is think business

maybe can -- M&A follow-up, here? the for talk Got your about as M&A it. a Got and environment appetite just it. just And

to business making looking that day reinvesting our we're very ways that to very, main have running a at right priority the and is revenues strong revenues sure every sure that at and our we we're strong profitable the those we're bottom business grow and bring look, line in So just that level. a make business

that, reason to talked very been happens something acquirer very, a we'll at do investor, be the strategic the a right come right assets right got past, have to up, of always disciplined at and at right disciplined but the assets. it. interesting we've and Beyond in fit a be we've the strategic the It's market, if look take the it, price, right to

And up, now our incremental generating focusing at comes we take we'll value. a probably remain it. is running shareholder look interesting strong disciplined. business, incremental again, And once core right priority very EBITDAR something and on But if a

Dan Our Politzer next Fargo. question Wells comes from of

a from to in maybe or or Durango. I And wanted just a Could demographic Josh, maybe think more follow terms I database you about then conservatively maybe overlap talk you with similarly, last up one benchmarked of standpoint. quarter, on spectrum the geographic $XX only end million number of into could upside but opening, so impact. do conservative or on XX good like we're mean, I I or feel more the a know still maybe the you there that's be days there? the

a category. well Look, before in don't you that. to properties, into plans We overlap have all standpoint, all standpoint, a various closest the are put what them, ball what and just we're from like ZIP look any geography insight opened able I codes understand they right ZIP jump We an codes from codes, look certainly are our understood customers at pure demographics what that their in place. where our ZIP come what to from,

as visited XX a of as I proof seeing we'll always yet, it's customers but going significant cautious far, have to be -- we're we We about is not operations the know impact our impact made times customers numbers, thus do. of about and our we've in think and couple to seen significant a we as but comments of customers result is today all days, forward. Our just the that very can a not has And only say. a

we'll to X% it numbers of to early. over very today, see Dan, in stick we're out those just year. of and characterized the how our just rest I for And given And going think play $XX terms as think million, Yes. we have the it's to still I things conservative. And

and looks And This couple we market question, over you the margin the also But to XX%-plus margins, the on first certainly, just that course Is is called there my out. and of years reason extent a running year? Got similar you've stabilize any mean, things X margin this have been in to of I that for you year, recognize it. I a more OpEx headwinds be follow-up, of you of still the Locals. the but the overall, same see range shouldn't that last year. and full half

I margins, we've property maintain margins pretty South Midwest X Yes. now. think and in I able years this literally to margins been don't -- overall, XX% range consistently, for LVL

capabilities, quarters our manner running be I I'm it's using reinvestment, sure change level -- we're yielding get levels. shouldn't significant it these So business a going this a and we're cash this there's hand, mean, of permanent whatever, our of out significant being that tools the in of you're because to of around level but consistent seeing. I and disciplined free things at be where flow, philosophy a think performance amount with generating results

sure to from think time, again, should but we So expect I'm I this won't is deliver, what generally, you time us.

next Our question JMP. Jordan of Bender comes from

question that brought stock. you every the gets couple FanDuel there stake view your quarters, the of in up really a out but So there's isn't that reflected own

some a a that in companies. to to you your of XXXX, monetize imagine or in look of you believe before the or recognize some all of between look shares it thought either way, I to is Like a would So valuation guess, it, you scenario that the asked help X there where company agreement maybe value another from period monetize there's I date? that could

and a we'd an the brings, don't monetize view but a historically today, of in it, any or What it strategic very online important portion relationship drives portion very our and of if in relationship. And we FanDuel currently have as I the generated comments strategic million view business. $XX-plus way. future think that that X% the partnership, to topic, very we significant ownership a we the we it on continue much is when have thoughts and through strategic

the So we'll important, see and just what future brings.

Understood. on item, then And there $XXX call Is a in housekeeping just quarter. million to anything impairment that? the modeling charge out

the doing thing. No, not accountants really. their just It's

what comes the lot in what that. things it to So discount put that I terms changes flows has interest of to. really it too like of wouldn't with into at. That's much A in and the cash they down rates do

of Bank Kelley of Shaun from comes question next America. Our

X for just Really, clarifications me. quick

either to there's an of So new mean, XX% growth. that why the I or like flat, else why base maybe to -- But state same-state launching. would there be something sort why I market expense just first, a there? the function Appreciate you no Josh, wouldn't it market just to access flat something big growing think trying guidance with benefit more with on kind being seems online is of easily, else the being XX% Barry's understand step an goes outlook on there that question. agreement, -- But GGR or number? I'm yes, year? that participatory on a that it's that's is offset caps Or on still and back

the don't of same just that. view guess we I Yes. share

quickly. just have not we as are the -- growth pretty think and I of generally that no And then expenses. we're a cap the anything in they remember, for open growth. increase that on. about just to world It's mature as There's I view nefarious -- there's getting modest markets and view of it around open percentage been up markets these year. -- a strictly have or once keep up it's going they growing to more and sky, our going no

off that, get that But small it's we're will on to that -- that, of growth. we extent that drive So that's results. our again, a -- only the percentage

what yes, the know. then you're number Shaun, see saying, But... don't that Josh's right, extent up. We we'll go to Look,

not That's we what expect.

Okay.

it So underwrote and then follow I how it. totally you get

a it's I and very was materially appreciate we anything reversal down I that or then is very, but quite was, quarter-on-quarter. tax might that number expenses else not Josh, there off margin -- insurance we stellar of very helpful. And have benefit in any strong? South and the were our number just off or so because to as should that some just way, go there that? back that's of that hit the appreciate that driven just looked was the just margin to sort Midwest guess, -- for just that's but again, base model was it if performance expense explicitly and Or would if So building that I again, performance, one-timer other base number either clarification, of, be the not either curious

all that, I out would -- like that things could Nothing it mean unusual No. you we was that normal that happen just -- it's that yes, but around like Yes. call -- stuff. is things year-end and

-- I yes, So out. can't jumps nothing

question of from Jefferies. next Our comes David Katz

as the all rates. bit just a question. with It's environment at details down a Appreciate pose elevated under Xx, well. wanted in to I hypothetical. Leverage makes sense interest an

implying down be, letting capital comfortable along does rates come be perhaps if bit with started rates down, would leverage you it rise to interest enabled your that growth. come some back hypothetically, interest and make bit more Where therefore, returns a your a that more target might again? earnings As

Yes. Keith, I'll in. tell then jump you

It's think rate-driven not We're back of And I so. it if I down generally, with in opposed think be leverage reason around it range. choose will comfortable said not this really. strategic over up so to for we driven. time whatever the do that leveraging we're goal deleveraging levels. these But sense to makes interest overall it's we to

something We business we're reinvesting do acquisition can things being economically to or if or level. want at to existing else, without happens and think keep it an something in to us to portfolio. the and the flexibility So choose deviate this we we do do if our leverage gives comfortable from returning we keep continue that shareholders to capital to having running

So that's the logic level. behind the leverage

and into be. Xs, target were that So we'd specific drift to up mean a be the sort temporary. it your range like that's just would where it like to -- to the somewhat of up. sounds you where would follow But we're new purpose I with be it at, if

that's Yes. right. think Yes, I

comes question Brandt Montour Barclays. Our next of from

the fourth saw is improvement visitor you across if traffic regions And sort throughout per So is of customer the wondering you even that noticing driving was quarter. or it? system? on were in then the I your the the doors. spend you better think do what And versus in retail in it coming

sequentially, big say I just can our would segments. segment, what we're in. out is retail shot I'll of of throughout has QX. jump at parts into you to is that that to it narrowed, Keith, and trying February, is, -- the the and end -- point narrowest lower picture the continued has come we're take has as which unrated then a What narrow the say gap just that the database was achieved consistent around that trend And year-over-year, been that generally decline January early XXXX, and in as to we well. comments

segment. So we the as unrated much don't about know

more mix. that it's So trips, if trips, more we spend, you can't tell less

retail the that's majority So that up what -- segment. and of makes

sure more be to much at So I'm that know... I going don't not able Keith, we're to this give you than But point.

Yes, that's about it.

in of think wondering sounds and Vegas Okay. you the And rated on was like. strength, you're the union flowing the those -- side contracts customers' year and that and your higher renegotiated from recently that? this from segment related back in that into wages seeing also things it seeing benefits decent Locals if maybe where more wallets properties and spending at they're on Las there you're to I pockets

beneficiary that are a down [indiscernible] I of our don't customers but that, of say members we properties. and team those many the up that certainly can specifically and package, seen there those pay our work number we've think of

we're no -- on for more I they getting that their way And that, way this point tell there's to no some so pocket, at in money extent this have at assume -- to really point. comment but of that to us the

of Our Macquarie. question next comes from Chad Beynon

stay the mid-teens boat Chest, any of we disruption expect should know property But I year? X? opens. or is open, the that a Wanted in I to CapEx Treasure first to land-based in half first year the then curious expect the about And should just the we think, on ask still return until if going

for technically In some days will boat the will and require we're terms able we working the the X everything the disruption have rules a It in few on the order X as move facility, of of stay aspect, to days, gear the in door. open. off open us look, have to to boat before sure will regulations Louisiana close. land-based I'm to

where X be there'll that. So be no other disruption business, we'll or days than out other but X of

in of terms our Josh? So return,

we disciplined Yes, we're one the every to generate investments return is very of need pursuing a get meet cash hurdles. XX% internal overall our thoughtful cash and those on we're -- least to at to trying XX% to around to be a at least contemplated and

what that's of Treasure We'll year a expect this and so we half And from year. get Full Chest. Chest next year in that, hopefully Treasure would year.

it year Super maybe small, you Any guess, different-sized this being there? just, historically in of the LVL Downtown one? not Perfect. obviously, needle personal as a taking for or move weekend in your week or of And how that question. I then of financial for different much terms Bowl bets, this more a question, a Should versus approach environment run market.

about room There book wouldn't I more holistically, rates be that certainly room a are from if about Yes, pure be standpoint, cash thinking in of I sports town. strong. you people are thinking think lot rates it are strong, a

normal. stronger weekend it be a than So will

town. differently, this about particular wouldn't in week, is operate more the leading the anticipate or I there's because the people thoughts how that. week stronger years in than prior book But Super I week in any to Bowl may think anything up the -- in particular

Stauff comes Susquehanna. from Joe of Our next question

soften I mentioned Keith, but saw behavior in if trends fourth that quarter. this, out the I talk where what first just can had of about, the customer Gulf the and core those of Obviously, -- you your now? but states it, think business you say, terms you states missed is wondering the I of And up. right really were that to in apologize

is Southern the and to also case strong the and I grow, retail at it's and it case year has that our saw strong Locals in More more in states. states as to think So here our falloff with market, core lower-end customers patterns it down continues portfolio, last been the of look those play be to we the do and the that continues customer core from the of across in our the unrated. had we

core mid- pleased performance think we're tier-rated the So play of the the and I our of performance and with customers in our South. upper

Okay. on And then market. maybe the Locals follow-up one

the more to Is As that Durango, that town say, XX% Locals going would market. of also expect, see of to still early, it's out of visitors say, in are experiment obviously, the you type you do customers try customer anticipate, at local? that your you you're that's But or as you from, mentioned.

customers, Durango, so -- a live I these are local Durango people, who ZIP local the existing of majority think once the lot maybe who properties they Boyd, people they our customers or code want to on our again, product between have overall a product XX of enjoy who's just performance drive in there, check Durango or and better. view we're it here the of would that and be closer days be our have customers of our the they go customers maybe visiting is business to a XX that just our easier [indiscernible] a days. in choice. better with that those pleased cases, may It And belt, and some we to In maybe out. first

CBRE. question from of DeCree Next John comes

lot of covered. ground A

a taken and So sheet maybe in and approach disciplined differently. little the allocation I'll balance a question very balanced now. to a to to M&A healthy try that you've have We ask appreciate certainly the capital position

and a might sale guess it that the can mind So viable I for do too your is had? or be just that a M&A be high. broadly if question that strategy aren't is, find accurately fit that you synergies you it? exist good particularly M&A, see would for given scale things at margins maybe I size across in there the was, and and in would a opportunities and look there ask the when industry. there fit? something context priced are mean, Boyd to your what would It could mean I Are the are good you is growth that you investments, be be with of

a Look, question it's to to. Yes. respond hard

size first and the that's of M&A, business I every and that make core scope efficiencies, day. Look, as scale to is and focus the about and optimum each have running sure said, we as the our at think foremost, the look, our clearly, we given a So has makes strategic. that be our a company is market. sense we given where to be got It's It's and opposed today, larger smaller, the opportunity got as for to to to be It's us. market to got strong breadth breadth geographic important. be our and go

unless interesting, look it doesn't the But a sure. we it portfolio, sale. across name you half dozen could a they're would actually probably As be matter for assets,

hits to day couple interesting said We'll And tick But and screen. business. building so hit radar a boxes it's our once of a number or look of every off before would take we're it. on when maintaining at And and going have something got strong a a each as focus again, I times, a look. a take we

answered helpful. follow-up my probably That's on Great. to I already Keith, anyway. but think you that, ask just

needle to So of moving. would likely it that's upscale, most need one be the criteria,

So be fair? not tuck-in might your really worth time. Is that

fair. is That

have for Morgan of Stephen question last Grambling from one We Stanley. time

And look willing returns a you ROI generally opcos? this as differ coming such out different shy target make on M&A want a would a guess own there you what And looking that potential quick are on projects? the real that from away from to your at anything M&A follow-up will estate? you'd actually transaction just for would again. be is you financial to be I a Or you from own related approach, do question, at -- as

I'm of couple one. I a to answer at M&A to let times. attempted a this take So going Josh question have shot the

it tool willing existing fans tenants think whether assets, to we of -- large a to but not been listen and I of we're it for of I who So they're financing existing REIT consider generally we part a acquisitions, have doing think necessarily opco/propco these calls know or people otherwise. as that have with our do

keeps So the that. like something an anything really structure that from doing us impendent, think I isn't

well, is related I over willing the back about things with are. getting aspects said understand, time I and other an of consistent how of about we -- of acquisition this to in is, look, up neighborhood with people to what then where and goal that, should to we we deleverage we're think leverage do to think as generally think the

want long company always where at we or but So we the run. less, that's in run won't the be to X.Xx

perspective gives So on it. that hopefully, you a

at company we're forward, it, of X% in look We strategic $XXX component the think other its correctly, terms are to how just growth from taking growth year. the about has is, million dividend, the shareholders I think year at making. growth obviously think a out one our our I Keith described acquisitions shares we the look going of but that we from business. from of thing the which the organic We X% get of at every value the we're that also look is,

them. just feel solid acquisitions like do make are business and purely accumulates So have we we if all the -- sense, to don't of to that they then

grow strength are we that. balance cash the to cash that's our of think of well positioned business I the flow sheet and do core and diversification and them can think very why flow. of continue to that our generally about we the robustness But how given we

or kind then have for acquisitions, yes, the opportunistically and making, whether they we're And levels same organic have stock investment of any returns of somewhat, it's making the that our buying investments to back growth.

like This call concludes over question-and-answer to remarks. our the session. for I'd to now concluding turn Josh

company. questions Thanks, your feel have in rest please to to your follow-up, anything day. of for everyone, And if the Hope and participating a call. you you free have today great out reach the to

call. today's concludes This

You disconnect. may now