Boyd Gaming is one of the country's leading casino operators.
The company operates about 25 gaming entertainment properties
located in Nevada and several other US states. Besides Nevada, Boyd
Gaming has casinos in Illinois, Indiana, Iowa, Kansas, Louisiana,
and Mississippi. Most of the company's properties are sprawling
resort hotels that feature pools, full casinos, restaurants, shops,
and on-site entertainment options for guests. In addition to its
casinos, Boyd Gaming owns and operates a travel agency in Hawaii.
Boyd Gaming was established in 1974.
Operations
Boyd Gaming has three reportable segments: Midwest and South;
Las Vegas Locals; and Downtown Las Vegas.
Midwest and South properties is the largest segment accounted
for about 60% of the total revenue, consist of three land-based
casinos, five dockside riverboat casinos, two racinos and two
barge-based casinos that operate in six states in the Midwest and
southern United States. Generally, these states allow casino gaming
on a limited basis through the issuance of a limited number of
gaming licenses
Las Vegas Locals (30% of revenue) is consists of nine casinos
that primarily serve the resident population of the Las Vegas
metropolitan area includes Gold Coast Hotel and Casino; The Orleans
Hotel and Casino; Sam's Town Hotel and Gambling Hall; Suncoast
Hotel and Casino; Eastside Cannery Casino and Hotel; Aliante
Casino; Cannery Casino Hotel; Eldorado Casino; and Jokers Wild
Casino.
Downtown Las Vegas (more than 10%) includes California Hotel and
Casino; Fremont Hotel and Casino; and Main Street Station Casino
Brewery and Hotel. It focuses their marketing on gaming enthusiasts
from Hawaii, tour and travel agents in Hawaii.
Geographic Reach
Headquartered in Las Vegas, Boyd Gaming has gaming operations in
Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and
Mississippi.
Sales and Marketing
Boyd Gaming's advertising and marketing promotion costs were
about $30 million in fiscal 2017. The company works to build
loyalty with locals since the casinos that are not on the Las Vegas
Strip are not as popular with tourists and convention
attendees.
Financial Performance
Boyd Gaming's revenue was about $2.3 billion in fiscal 2017.
That was an increase compared to the prior fiscal period when the
company reported $2.1 billion in revenue.
In fiscal 2017 Boyd Gaming's net income was $189 million after
the company claimed a net income of $418 million in fiscal 2016.
The drop in net income was due to increased operating expenses.
During fiscal 2017 Boyd Gaming generated net operating cash flow
of $414.9 million. Its operating cash flows increased $112 million
in 2017 compared to 2016 due to the flow through effect of higher
revenues, including the impact of acquisitions, and the timing of
working capital spending.
Strategy
Many of Boyd Gaming's properties are dated and in need of
upgrades or total renovation. It will take large capital
investments to bring the company's facilities up to modern
standards. For example, Boyd Gaming is spending $45 million on
expansion of its Delta Downs Racetrack Casino Hotel in Vinton,
Louisiana. The company is also spending more than $100 million on
upgrades and renovations to its Las Vegas and regional properties
with plans to add 20 more restaurants.
Mergers and Acquisitions
In December 2016 Body Gaming acquired the Las Vegas assets of
Cannery Casino Resorts for about $230 million. The acquisition
helped the company expand geographically across North Las
Vegas.
In September 2016 the company acquired ALST Casino Holdco, LLC,
the holding company of Aliante Casino Hotel and Spa, for $380
million. The acquisition provided a tremendous opportunity to
participate in the long-term growth of the northern part of the Las
Vegas Valley.