Boyd Gaming experienced a phenomenal third quarter in 2021. Their income surged by 29%, reaching an impressive $843.1 million in contrast to $652.2 million the previous year.
Earnings skyrocketed as well! They amassed $138.2 million, equating to $1.21 per share. This significantly overshadows their 2020 earnings of $38.1 million, or $0.33 per share. Furthermore, their adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) leaped by a substantial 43% to hit $340.7 million.
The company’s CEO, Keith Smith, attributes this triumph to their strategic actions following the post-pandemic reopening. They prioritized customer satisfaction among their most valuable patrons and optimized their operations for efficiency. This successful formula resulted in five quarters of remarkable performance, with Q3 being their strongest yet.
Smith highlighted the enthusiastic return of their loyal clientele, who are spending more, signaling positive momentum. This factor, coupled with their highly effective operations, generated record-breaking quarterly revenue. Their profitability is equally impressive, with EBITDAR exceeding 42% growth and operating margins experiencing a nearly 4% increase.
As restrictions ease and individuals eagerly seek entertainment, Smith exudes confidence in Boyd Gaming’s favorable position. They anticipate sustained growth in both revenue and profit as normalcy resumes. Moreover, with their robust cash flow, they have initiated a $3 billion stock buyback program, demonstrating their financial strength.
The company is demonstrating faith in their future prospects by initiating this novel endeavor. Their financial prudence is evident in their decision to allocate resources towards expansion while maintaining a financial cushion with the remaining $61 million from the share repurchase plan. This strategic approach suggests a long-term vision. Moreover, their financial standing appears robust with $570 million in liquid assets and $3.38 billion in liabilities as of the end of the third quarter. They are well-placed to execute calculated maneuvers.
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