Last10K.com

Boyd Gaming Corp (BYD) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Boyd Gaming Corp

CIK: 906553 Ticker: BYD
 

Exhibit 99.1

 

 

 

boydgaminglogo.jpg

 

 

 

Financial Contact:

 

Media Contact:

 

Josh Hirsberg

 

David Strow

 

(702) 792-7234

 

(702) 792-7386

 

joshhirsberg@boydgaming.com

 

davidstrow@boydgaming.com

 

BOYD GAMING REPORTS THIRD-QUARTER 2020 RESULTS

 

 

Las Vegas Locals Segment Delivers Record Third Quarter Adjusted EBITDAR, 46% Margin

Midwest & South's Adjusted EBITDAR Sets All-Time Quarterly Record on 39% Margin

Expansion of FanDuel Partnership Further Bolsters Company's Digital Presence

 

LAS VEGAS - OCTOBER 26, 2020 -

Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2020.

 

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “During the third quarter, we successfully navigated the challenges presented by the COVID pandemic thanks to our outstanding operating team. By effectively yielding our casino floors and amenities while implementing new efficiencies throughout our business, we greatly enhanced our operating performance in a lower-revenue environment. On a Companywide basis, we delivered 12% EBITDAR growth and improved operating margins by more than 1,000 basis points, as both our Las Vegas Locals and Midwest & South segments set records for quarterly EBITDAR and margins. At the same time, we continued to build the foundation for future growth through the expansion of our partnership with FanDuel Group, successfully launching mobile sports betting platforms in Illinois and Iowa and expanding our digital reach to more than 30 million adults nationwide. We are proud of our team’s ability to successfully execute our strategy and are committed to sustaining a more efficient and profitable operating model into the future.”

 

Boyd Gaming reported third-quarter 2020 revenues of $652.2 million, compared to $819.6 million in the third quarter of 2019. The Company recorded net income of $38.1 million, or $0.33 per share, for the third quarter of 2020, compared to net income of $39.4 million, or $0.35 per share, for the year-ago period.

 

Total Adjusted EBITDAR(1) was $238.8 million in the third quarter of 2020, an increase of 12% from $213.5 million in the third quarter of 2019. Companywide operating margins were 36.6%, up significantly from 26.1% in the year-ago quarter. Adjusted Earnings(1) for the third quarter of 2020 were $43.5 million, or $0.38 per share, compared to Adjusted Earnings of $44.8 million, or $0.39 per share, for the same period in 2019.

 

 

(1)

See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

 

1

The following information was filed by Boyd Gaming Corp (BYD) on Monday, October 26, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
0000906553 BOYD GAMING CORP false --12-31 Q3 2020 0.01 0.01 5,000,000 5,000,000 0.01 0.01 200,000,000 200,000,000 111,539,603 111,542,108 0.06 0.07 0.07 10 40.9 0.6 6.2 0.9 Amounts in the table may not recalculate exactly due to rounding. Average repurchase price per share is calculated based on unrounded numbers. All shares repurchased have been retired and constitute authorized but unissued shares. 00009065532020-01-012020-09-30 xbrli:shares 00009065532020-11-02 thunderdome:item iso4217:USD 00009065532020-09-30 00009065532019-12-31 iso4217:USDxbrli:shares 0000906553us-gaap:CasinoMember2020-07-012020-09-30 0000906553us-gaap:CasinoMember2019-07-012019-09-30 0000906553us-gaap:CasinoMember2020-01-012020-09-30 0000906553us-gaap:CasinoMember2019-01-012019-09-30 0000906553us-gaap:FoodAndBeverageMember2020-07-012020-09-30 0000906553us-gaap:FoodAndBeverageMember2019-07-012019-09-30 0000906553us-gaap:FoodAndBeverageMember2020-01-012020-09-30 0000906553us-gaap:FoodAndBeverageMember2019-01-012019-09-30 0000906553us-gaap:OccupancyMember2020-07-012020-09-30 0000906553us-gaap:OccupancyMember2019-07-012019-09-30 0000906553us-gaap:OccupancyMember2020-01-012020-09-30 0000906553us-gaap:OccupancyMember2019-01-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMember2020-07-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMember2019-07-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMember2020-01-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMember2019-01-012019-09-30 00009065532020-07-012020-09-30 00009065532019-07-012019-09-30 00009065532019-01-012019-09-30 0000906553us-gaap:CommonStockMember2019-12-31 0000906553us-gaap:AdditionalPaidInCapitalMember2019-12-31 0000906553us-gaap:RetainedEarningsMember2019-12-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-31 0000906553us-gaap:CommonStockMember2020-01-012020-03-31 0000906553us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-31 0000906553us-gaap:RetainedEarningsMember2020-01-012020-03-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-31 00009065532020-01-012020-03-31 0000906553us-gaap:CommonStockMember2020-03-31 0000906553us-gaap:AdditionalPaidInCapitalMember2020-03-31 0000906553us-gaap:RetainedEarningsMember2020-03-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-31 00009065532020-03-31 0000906553us-gaap:CommonStockMember2020-04-012020-06-30 0000906553us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-30 0000906553us-gaap:RetainedEarningsMember2020-04-012020-06-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-30 00009065532020-04-012020-06-30 0000906553us-gaap:CommonStockMember2020-06-30 0000906553us-gaap:AdditionalPaidInCapitalMember2020-06-30 0000906553us-gaap:RetainedEarningsMember2020-06-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-30 00009065532020-06-30 0000906553us-gaap:CommonStockMember2020-07-012020-09-30 0000906553us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-30 0000906553us-gaap:RetainedEarningsMember2020-07-012020-09-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-30 0000906553us-gaap:CommonStockMember2020-09-30 0000906553us-gaap:AdditionalPaidInCapitalMember2020-09-30 0000906553us-gaap:RetainedEarningsMember2020-09-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-30 0000906553us-gaap:CommonStockMember2018-12-31 0000906553us-gaap:AdditionalPaidInCapitalMember2018-12-31 0000906553us-gaap:RetainedEarningsMember2018-12-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-31 00009065532018-12-31 0000906553us-gaap:CommonStockMember2019-01-012019-03-31 0000906553us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-31 0000906553us-gaap:RetainedEarningsMember2019-01-012019-03-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-31 00009065532019-01-012019-03-31 0000906553us-gaap:CommonStockMember2019-03-31 0000906553us-gaap:AdditionalPaidInCapitalMember2019-03-31 0000906553us-gaap:RetainedEarningsMember2019-03-31 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-31 00009065532019-03-31 0000906553us-gaap:CommonStockMember2019-04-012019-06-30 0000906553us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-30 0000906553us-gaap:RetainedEarningsMember2019-04-012019-06-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-30 00009065532019-04-012019-06-30 0000906553us-gaap:CommonStockMember2019-06-30 0000906553us-gaap:AdditionalPaidInCapitalMember2019-06-30 0000906553us-gaap:RetainedEarningsMember2019-06-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-30 00009065532019-06-30 0000906553us-gaap:CommonStockMember2019-07-012019-09-30 0000906553us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-30 0000906553us-gaap:RetainedEarningsMember2019-07-012019-09-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-30 0000906553us-gaap:CommonStockMember2019-09-30 0000906553us-gaap:AdditionalPaidInCapitalMember2019-09-30 0000906553us-gaap:RetainedEarningsMember2019-09-30 0000906553us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-30 00009065532019-09-30 xbrli:pure 0000906553byd:COVID19Member2020-07-01 00009065532020-07-01 0000906553byd:SeniorNote8625Due2025Memberus-gaap:SeniorNotesMember2020-05-21 0000906553us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-08-012020-08-31 0000906553byd:Covid19PandemicMember2020-01-012020-03-31 0000906553byd:GamingMemberus-gaap:CasinoMember2020-07-012020-09-30 0000906553byd:GamingMemberus-gaap:CasinoMember2019-07-012019-09-30 0000906553byd:GamingMemberus-gaap:CasinoMember2020-01-012020-09-30 0000906553byd:GamingMemberus-gaap:CasinoMember2019-01-012019-09-30 0000906553us-gaap:LandMember2020-09-30 0000906553us-gaap:LandMember2019-12-31 0000906553us-gaap:BuildingAndBuildingImprovementsMember2020-09-30 0000906553us-gaap:BuildingAndBuildingImprovementsMember2019-12-31 0000906553us-gaap:FurnitureAndFixturesMember2020-09-30 0000906553us-gaap:FurnitureAndFixturesMember2019-12-31 0000906553byd:RiverboatsAndBargesMember2020-09-30 0000906553byd:RiverboatsAndBargesMember2019-12-31 0000906553us-gaap:ConstructionInProgressMember2020-09-30 0000906553us-gaap:ConstructionInProgressMember2019-12-31 utr:Y 0000906553us-gaap:CustomerRelationshipsMember2020-01-012020-09-30 0000906553us-gaap:CustomerRelationshipsMember2020-09-30 0000906553byd:HostAgreementsMember2020-01-012020-09-30 0000906553byd:HostAgreementsMember2020-09-30 0000906553byd:DevelopmentAgreementsMember2020-09-30 0000906553us-gaap:TrademarksMember2020-09-30 0000906553byd:GamingLicenseRightMember2020-09-30 0000906553us-gaap:CustomerRelationshipsMember2019-01-012019-12-31 0000906553us-gaap:CustomerRelationshipsMember2019-12-31 0000906553byd:HostAgreementsMember2019-01-012019-12-31 0000906553byd:HostAgreementsMember2019-12-31 0000906553byd:DevelopmentAgreementsMember2019-12-31 0000906553us-gaap:TrademarksMember2019-12-31 0000906553byd:GamingLicenseRightMember2019-12-31 0000906553byd:LasVegasLocalsMember2020-09-30 0000906553byd:DowntownLasVegasMember2020-09-30 0000906553byd:MidwestAndSouthMember2020-09-30 0000906553byd:Covid19PandemicMember2020-01-012020-09-30 0000906553byd:GamingLicenseRightMemberbyd:Covid19PandemicMember2020-01-012020-09-30 0000906553us-gaap:TrademarksMemberbyd:Covid19PandemicMember2020-01-012020-09-30 0000906553us-gaap:AccruedLiabilitiesMember2020-09-30 0000906553us-gaap:AccruedLiabilitiesMember2019-12-31 0000906553byd:BankCreditFacilityMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNote8625Due2025Memberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:OtherLongtermDebtMember2020-09-30 0000906553byd:BankCreditFacilityMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:OtherLongtermDebtMember2019-12-31 0000906553us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-09-30 0000906553us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:TermALoanMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:TermALoanMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:RefinancingTermBLoanMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:RefinancingTermBLoanMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:SwingLoanMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:SwingLoanMemberus-gaap:LineOfCreditMember2019-12-31 0000906553us-gaap:RevolvingCreditFacilityMember2020-09-30 0000906553us-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2020-09-30 0000906553us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-05-08 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberus-gaap:BaseRateMember2020-05-082020-05-08 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-05-082020-05-08 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberbyd:TermALoanMember2020-08-05 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberbyd:TermALoanMembersrt:ScenarioForecastMember2021-06-30 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberbyd:TermALoanMembersrt:ScenarioForecastMember2021-09-30 0000906553byd:RevolvingCreditFacilityAndTermLoanAMemberbyd:TermALoanMembersrt:ScenarioForecastMember2021-12-31 0000906553byd:GoldMergerSubMemberbyd:PromissoryNoteMember2020-05-06 0000906553byd:GoldMergerSubMember2020-05-06 0000906553byd:SeniorNote8625Due2025Memberus-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMember2020-05-212020-05-21 0000906553byd:SeniorNote8625Due2025Memberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMember2020-05-212020-05-21 0000906553byd:SeniorNote8625Due2025Memberus-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:SeniorNotesMember2020-05-212020-05-21 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:SeniorNotesMember2019-12-03 0000906553byd:The2018PlanMember2018-12-12 0000906553byd:The2018PlanMember2020-09-30 0000906553byd:DividendDeclaredDec72018Member2020-01-012020-09-30 0000906553byd:DividendDeclaredDec72018Member2020-09-30 0000906553byd:DividendDeclaredMar42019Member2020-01-012020-09-30 0000906553byd:DividendDeclaredMar42019Member2020-09-30 0000906553byd:DividendDeclaredJune72019Member2020-01-012020-09-30 0000906553byd:DividendDeclaredJune72019Member2020-09-30 0000906553byd:DividendDeclaredSeptember172019Member2020-01-012020-09-30 0000906553byd:DividendDeclaredSeptember172019Member2020-09-30 0000906553byd:DividendDeclaredDec172019Member2020-01-012020-09-30 0000906553byd:DividendDeclaredDec172019Member2020-09-30 0000906553byd:GamingMember2020-07-012020-09-30 0000906553byd:GamingMember2019-07-012019-09-30 0000906553byd:GamingMember2020-01-012020-09-30 0000906553byd:GamingMember2019-01-012019-09-30 0000906553byd:FoodBeverageMember2020-07-012020-09-30 0000906553byd:FoodBeverageMember2019-07-012019-09-30 0000906553byd:FoodBeverageMember2020-01-012020-09-30 0000906553byd:FoodBeverageMember2019-01-012019-09-30 0000906553byd:RoomMember2020-07-012020-09-30 0000906553byd:RoomMember2019-07-012019-09-30 0000906553byd:RoomMember2020-01-012020-09-30 0000906553byd:RoomMember2019-01-012019-09-30 0000906553us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-30 0000906553us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-07-012019-09-30 0000906553us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-30 0000906553us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-01-012019-09-30 0000906553byd:CorporateExpenseMember2020-07-012020-09-30 0000906553byd:CorporateExpenseMember2019-07-012019-09-30 0000906553byd:CorporateExpenseMember2020-01-012020-09-30 0000906553byd:CorporateExpenseMember2019-01-012019-09-30 0000906553us-gaap:PerformanceSharesMember2020-01-012020-03-31 0000906553us-gaap:PerformanceSharesMember2020-03-31 0000906553us-gaap:PerformanceSharesMember2019-01-012019-03-31 0000906553us-gaap:PerformanceSharesMember2019-03-31 0000906553us-gaap:FairValueMeasurementsRecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-30 0000906553us-gaap:FairValueMeasurementsRecurringMember2019-12-31 0000906553us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-31 0000906553us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-31 0000906553us-gaap:MeasurementInputDiscountRateMember2020-09-30 0000906553us-gaap:MeasurementInputDiscountRateMember2019-12-31 0000906553us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-09-30 0000906553us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-31 0000906553us-gaap:OtherNoncurrentAssetsMember2020-09-30 0000906553us-gaap:OtherNoncurrentAssetsMember2019-12-31 00009065532011-12-202011-12-20 0000906553us-gaap:AccountsPayableAndAccruedLiabilitiesMember2019-12-31 0000906553us-gaap:AccountsPayableAndAccruedLiabilitiesMember2020-09-30 0000906553us-gaap:OtherNoncurrentLiabilitiesMember2020-09-30 0000906553us-gaap:OtherNoncurrentLiabilitiesMember2019-12-31 0000906553byd:InvestmentAvailableforsaleMember2020-06-30 0000906553byd:ContingentPaymentsMember2020-06-30 0000906553byd:InvestmentAvailableforsaleMember2019-06-30 0000906553byd:ContingentPaymentsMember2019-06-30 0000906553byd:InvestmentAvailableforsaleMember2020-07-012020-09-30 0000906553byd:ContingentPaymentsMember2020-07-012020-09-30 0000906553byd:InvestmentAvailableforsaleMember2019-07-012019-09-30 0000906553byd:ContingentPaymentsMember2019-07-012019-09-30 0000906553byd:InvestmentAvailableforsaleMember2020-09-30 0000906553byd:ContingentPaymentsMember2020-09-30 0000906553byd:InvestmentAvailableforsaleMember2019-09-30 0000906553byd:ContingentPaymentsMember2019-09-30 0000906553byd:InvestmentAvailableforsaleMember2019-12-31 0000906553byd:ContingentPaymentsMember2019-12-31 0000906553byd:InvestmentAvailableforsaleMember2018-12-31 0000906553byd:ContingentPaymentsMember2018-12-31 0000906553byd:InvestmentAvailableforsaleMember2020-01-012020-09-30 0000906553byd:ContingentPaymentsMember2020-01-012020-09-30 0000906553byd:InvestmentAvailableforsaleMember2019-01-012019-09-30 0000906553byd:ContingentPaymentsMember2019-01-012019-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2020-09-30 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNote8625Due2025Memberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNote8625Due2025Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2020-09-30 0000906553byd:SeniorNote8625Due2025Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2020-09-30 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2020-09-30 0000906553us-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:BankCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LineOfCreditMember2019-12-31 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6375Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:SeniorNotes6000Due2026Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553byd:The4750SeniorNotesdueDecember2027Memberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2019-12-31 0000906553us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMemberbyd:OtherLongtermDebtMember2019-12-31 0000906553us-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 0000906553us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 0000906553us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-31 utr:M 0000906553byd:OtherLongtermDebtMember2018-10-15 0000906553us-gaap:CasinoMemberbyd:LasVegasLocalsMember2020-07-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:LasVegasLocalsMember2020-07-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:LasVegasLocalsMember2020-07-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:LasVegasLocalsMember2020-07-012020-09-30 0000906553byd:LasVegasLocalsMember2020-07-012020-09-30 0000906553us-gaap:CasinoMemberbyd:DowntownLasVegasMember2020-07-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:DowntownLasVegasMember2020-07-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:DowntownLasVegasMember2020-07-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:DowntownLasVegasMember2020-07-012020-09-30 0000906553byd:DowntownLasVegasMember2020-07-012020-09-30 0000906553us-gaap:CasinoMemberbyd:MidwestAndSouthMember2020-07-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:MidwestAndSouthMember2020-07-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:MidwestAndSouthMember2020-07-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:MidwestAndSouthMember2020-07-012020-09-30 0000906553byd:MidwestAndSouthMember2020-07-012020-09-30 0000906553us-gaap:CasinoMemberbyd:LasVegasLocalsMember2019-07-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:LasVegasLocalsMember2019-07-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:LasVegasLocalsMember2019-07-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:LasVegasLocalsMember2019-07-012019-09-30 0000906553byd:LasVegasLocalsMember2019-07-012019-09-30 0000906553us-gaap:CasinoMemberbyd:DowntownLasVegasMember2019-07-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:DowntownLasVegasMember2019-07-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:DowntownLasVegasMember2019-07-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:DowntownLasVegasMember2019-07-012019-09-30 0000906553byd:DowntownLasVegasMember2019-07-012019-09-30 0000906553us-gaap:CasinoMemberbyd:MidwestAndSouthMember2019-07-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:MidwestAndSouthMember2019-07-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:MidwestAndSouthMember2019-07-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:MidwestAndSouthMember2019-07-012019-09-30 0000906553byd:MidwestAndSouthMember2019-07-012019-09-30 0000906553us-gaap:CasinoMemberbyd:LasVegasLocalsMember2020-01-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:LasVegasLocalsMember2020-01-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:LasVegasLocalsMember2020-01-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:LasVegasLocalsMember2020-01-012020-09-30 0000906553byd:LasVegasLocalsMember2020-01-012020-09-30 0000906553us-gaap:CasinoMemberbyd:DowntownLasVegasMember2020-01-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:DowntownLasVegasMember2020-01-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:DowntownLasVegasMember2020-01-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:DowntownLasVegasMember2020-01-012020-09-30 0000906553byd:DowntownLasVegasMember2020-01-012020-09-30 0000906553us-gaap:CasinoMemberbyd:MidwestAndSouthMember2020-01-012020-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:MidwestAndSouthMember2020-01-012020-09-30 0000906553us-gaap:OccupancyMemberbyd:MidwestAndSouthMember2020-01-012020-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:MidwestAndSouthMember2020-01-012020-09-30 0000906553byd:MidwestAndSouthMember2020-01-012020-09-30 0000906553us-gaap:CasinoMemberbyd:LasVegasLocalsMember2019-01-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:LasVegasLocalsMember2019-01-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:LasVegasLocalsMember2019-01-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:LasVegasLocalsMember2019-01-012019-09-30 0000906553byd:LasVegasLocalsMember2019-01-012019-09-30 0000906553us-gaap:CasinoMemberbyd:DowntownLasVegasMember2019-01-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:DowntownLasVegasMember2019-01-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:DowntownLasVegasMember2019-01-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:DowntownLasVegasMember2019-01-012019-09-30 0000906553byd:DowntownLasVegasMember2019-01-012019-09-30 0000906553us-gaap:CasinoMemberbyd:MidwestAndSouthMember2019-01-012019-09-30 0000906553us-gaap:FoodAndBeverageMemberbyd:MidwestAndSouthMember2019-01-012019-09-30 0000906553us-gaap:OccupancyMemberbyd:MidwestAndSouthMember2019-01-012019-09-30 0000906553us-gaap:ProductAndServiceOtherMemberbyd:MidwestAndSouthMember2019-01-012019-09-30 0000906553byd:MidwestAndSouthMember2019-01-012019-09-30 0000906553us-gaap:CorporateMember2020-07-012020-09-30 0000906553us-gaap:CorporateMember2019-07-012019-09-30 0000906553us-gaap:CorporateMember2020-01-012020-09-30 0000906553us-gaap:CorporateMember2019-01-012019-09-30 0000906553byd:LasVegasLocalsMember2019-12-31 0000906553byd:DowntownLasVegasMember2019-12-31 0000906553byd:MidwestAndSouthMember2019-12-31 0000906553byd:TotalReportableSegmentMember2020-09-30 0000906553byd:TotalReportableSegmentMember2019-12-31 0000906553us-gaap:CorporateMember2020-09-30 0000906553us-gaap:CorporateMember2019-12-31
 

 

Table of Contents



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________________

FORM 10-Q

 ____________________________________________________

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to              

Commission file number: 1-12882

___________________________________________________

 

logo1.jpg

BOYD GAMING CORPORATION

(Exact name of registrant as specified in its charter)

 ____________________________________________________

 

Nevada

88-0242733

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3883 Howard Hughes Parkway, Ninth Floor, Las Vegas, NV 89169

(Address of principal executive offices) (Zip Code)

(702) 792-7200

(Registrant's telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

 ____________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

 

 

Common stock, $0.01 par value

 

BYD

 

New York Stock Exchange

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

☐ 

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

The number of shares outstanding of the registrant’s common stock as of November 2, 2020 was 111,540,103.

 

 

 

 

BOYD GAMING CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED SEPTEMBER 30, 2020

TABLE OF CONTENTS

 

 

 

Page

No.

PART I. FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements (Unaudited)

3

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019

3

 

 

 

 

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2020 and 2019

5

 

 

 

 

Condensed Consolidated Statements of Changes in Stockholders' Equity for each of the quarters within the nine months ended September 30, 2020 and 2019

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements

8

     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23
     

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

34

 

 

 

Item 4.

Controls and Procedures

35

 

 

 

PART II. OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

36

 

 

 

Item 1A.

Risk Factors

36

 

 

 

Item 6.

Exhibits

37

 

 

 

Signature Page

38

 

 

 

 

PART I. Financial Information

 

Item 1.        Financial Statements (Unaudited)

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

 

  

September 30,

  

December 31,

 

(In thousands, except share data)

 

2020

  

2019

 

ASSETS

        

Current assets

        

Cash and cash equivalents

 $506,046  $249,977 

Restricted cash

  15,024   20,471 
Accounts receivable, net  43,778   54,864 
Inventories  22,769   22,101 
Prepaid expenses and other current assets  52,665   46,481 
Income taxes receivable  340   5,600 

Total current assets

  640,622   399,494 
Property and equipment, net  2,533,897   2,672,553 

Operating lease right-of-use assets

  931,797   936,170 
Other assets, net  99,435   91,750 
Intangible assets, net  1,390,605   1,466,891 
Goodwill, net  971,287   1,083,287 

Total assets

 $6,567,643  $6,650,145 

LIABILITIES AND STOCKHOLDERS' EQUITY

        

Current liabilities

        
Accounts payable $67,383  $91,003 
Current maturities of long-term debt  29,165   26,994 
Accrued liabilities  424,626   438,896 

Total current liabilities

  521,174   556,893 
Long-term debt, net of current maturities and debt issuance costs  3,958,367   3,738,937 
Operating lease liabilities, net of current portion  855,559   840,285 
Deferred income taxes  121,901   162,695 
Other long-term tax liabilities     3,840 
Other liabilities  66,731   82,253 

Commitments and contingencies (Notes 6 and 8)

          

Stockholders' equity

        
Preferred stock, $0.01 par value, 5,000,000 shares authorized      
Common stock, $0.01 par value, 200,000,000 shares authorized; 111,539,603 and 111,542,108 shares outstanding  1,115   1,115 
Additional paid-in capital  879,450   883,715 
Retained earnings  162,955   380,942 
Accumulated other comprehensive income (loss)  391   (530)

Total stockholders' equity

  1,043,911   1,265,242 

Total liabilities and stockholders' equity

 $6,567,643  $6,650,145 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 

(In thousands, except per share data)

 

2020

   

2019

   

2020

   

2019

 

Revenues

                               

Gaming

  $ 565,965     $ 613,487     $ 1,260,841     $ 1,867,399  

Food & beverage

    38,778       108,069       139,323       331,206  

Room

    26,925       60,705       80,570       179,046  

Other

    20,570       37,307       61,888       115,337  

Total revenues

    652,238       819,568       1,542,622       2,492,988  

Operating costs and expenses

                               

Gaming

    214,984       276,302       530,445       835,511  

Food & beverage

    38,691       101,981       145,275       307,609  

Room

    12,931       28,393       41,013       83,074  

Other

    5,809       23,526       29,425       72,154  

Selling, general and administrative

    86,983       116,899       260,681       349,011  

Master lease rent expense

    25,914       24,665       75,992       73,058  

Maintenance and utilities

    33,751       41,351       88,551       119,158  

Depreciation and amortization

    69,320       65,092       205,498       200,396  

Corporate expense

    19,605       21,411       58,526       79,501  

Project development, preopening and writedowns

    2,249       5,297       9,582       14,243  

Impairment of assets

                171,100        

Other operating items, net

    14,928       1,260       23,570       1,564  

Total operating costs and expenses

    525,165       706,177       1,639,658       2,135,279  

Operating income (loss)

    127,073       113,391       (97,036 )     357,709  

Other expense (income)

                               

Interest income

    (468 )     (434 )     (1,476 )     (1,356 )

Interest expense, net of amounts capitalized

    62,387       59,661       173,440       182,224  

Loss on early extinguishments and modifications of debt

    413       242       1,000       750  

Other, net

    (4,977 )     113       (5,206 )     (227 )

Total other expense, net

    57,355       59,582       167,758       181,391  

Income (loss) before income taxes

    69,718       53,809       (264,794 )     176,318  

Income tax benefit (provision)

    (31,602 )     (14,404 )     46,807       (42,978 )

Net income (loss)

  $ 38,116     $ 39,405     $ (217,987 )   $ 133,340  
                                 
                                 

Basic net income (loss) per common share

  $ 0.34     $ 0.35     $ (1.92 )   $ 1.18  

Weighted average basic shares outstanding

    113,520       113,526       113,495       113,395  
                                 
                                 

Diluted net income (loss) per common share

  $ 0.33     $ 0.35     $ (1.92 )   $ 1.17  

Weighted average diluted shares outstanding

    113,862       113,971       113,495       113,879  

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 

(In thousands)

 

2020

   

2019

   

2020

   

2019

 

Net income (loss)

  $ 38,116     $ 39,405     $ (217,987 )   $ 133,340  

Other comprehensive income (loss), net of tax:

                               

Fair value adjustments to available-for-sale securities, net of tax

    239       543       921       996  

Comprehensive income (loss)

  $ 38,355     $ 39,948     $ (217,066 )   $ 134,336  

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)

 

                  

Accumulated Other

     
  

Common Stock

  

Additional

  

Retained

  

Comprehensive

     

(In thousands, except share data)

 

Shares

  

Amount

  

Paid-in Capital

  

Earnings

  

Income (Loss), Net

  

Total

 

Balances, January 1, 2020

  111,542,108  $1,115  $883,715  $380,942  $(530) $1,265,242 

Net loss

           (147,559)     (147,559)

Comprehensive income, net of tax

              1,127   1,127 

Stock options exercised

  3,000      25         25 

Release of restricted stock units, net of tax

  76,502   1   (767)        (766)

Release of performance stock units, net of tax

  241,118   2   (3,372)        (3,370)

Shares repurchased and retired

  (682,596)  (6)  (11,114)        (11,120)

Share-based compensation costs

        8,191         8,191 

Balances, March 31, 2020

  111,180,132   1,112   876,678   233,383   597   1,111,770 
Net loss           (108,544)     (108,544)
Comprehensive loss, net of tax              (445)  (445)
Stock options exercised  1,000      8         8 
Release of restricted stock units, net of tax  183,741   2   (6)        (4)
Release of performance stock units, net of tax  20,082   1            1 
Shares repurchased and retired     (1)           (1)
Share-based compensation costs        2,693         2,693 
Balances, June 30, 2020  111,384,955   1,114   879,373   124,839   152   1,005,478 
Net income           38,116      38,116 
Comprehensive income, net of tax              239   239 
Stock options exercised  139,065   1   1,159         1,160 
Release of restricted stock units, net of tax  15,583      (224)        (224)
Release of performance stock units, net of tax                  
Shares repurchased and retired                  
Share-based compensation costs        (858)        (858)
Balances, September 30, 2020  111,539,603  $1,115  $879,450  $162,955  $391  $1,043,911 

 

 

                  

Accumulated Other

     
  

Common Stock

  

Additional

  

Retained

  

Comprehensive

     

(In thousands, except share data)

 

Shares

  

Amount

  

Paid-in Capital

  

Earnings

  

Income (Loss), Net

  

Total

 

Balances, January 1, 2019

  111,757,105  $1,118  $892,331  $253,357  $(1,065) $1,145,741 

Net income

           45,451      45,451 

Comprehensive income, net of tax

              465   465 

Stock options exercised

  137,063   1   1,261         1,262 

Release of restricted stock units, net of tax

  46,958      (418)        (418)

Release of performance stock units, net of tax

  270,960   3   (3,768)        (3,765)

Shares repurchased and retired

  (830,100)  (8)  (21,645)        (21,653)

Dividends declared ($0.06 per share)

           (6,683)     (6,683)

Share-based compensation costs

        9,709         9,709 

Balances, March 31, 2019

  111,381,986   1,114   877,470   292,125   (600)  1,170,109 
Net income           48,484      48,484 
Comprehensive loss, net of tax              (12)  (12)
Stock options exercised                  
Release of restricted stock units, net of tax  13,075   1   (136)        (135)
Release of performance stock units, net of tax                  
Shares repurchased and retired  (245,221)  (4)  (6,104)        (6,108)
Dividends declared ($0.07 per share)           (7,781)     (7,781)
Share-based compensation costs        8,158         8,158 
Balances, June 30, 2019  111,149,840   1,111   879,388   332,828   (612)  1,212,715 
Net income           39,405      39,405 
Comprehensive income, net of tax              543   543 
Stock options exercised  3,416      27         27 
Release of restricted stock units, net of tax  2,878      (38)        (38)
Release of performance stock units, net of tax                  
Shares repurchased and retired  (11,354)     (284)        (284)
Dividends declared ($0.07 per share)           (7,780)     (7,780)
Share-based compensation costs        3,559         3,559 
Balances, September 30, 2019  111,144,780  $1,111  $882,652  $364,453  $(69) $1,248,147 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 

   

Nine Months Ended

 
   

September 30,

 

(In thousands)

 

2020

   

2019

 

Cash Flows from Operating Activities

               
Net income (loss)   $ (217,987 )   $ 133,340  

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

               
Depreciation and amortization     205,498       200,396  
Amortization of debt financing costs and discounts on debt     9,066       6,974  
Non-cash operating lease expense     43,806       23,972  
Share-based compensation expense     10,026       21,426  
Deferred income taxes     (40,794 )     40,279  
Non-cash impairment of assets     171,100        
Loss on early extinguishments and modifications of debt     1,000       750  
Other operating activities     (27 )     1,363  

Changes in operating assets and liabilities:

               
Accounts receivable, net     11,086       3,710  
Inventories     (668 )     9  
Prepaid expenses and other current assets     (7,560 )     (10,436 )
Income taxes (receivable) payable, net     5,260       (532 )
Other assets, net     (1,788 )     (3,546 )
Accounts payable and accrued liabilities     (29,316 )     16,840  
Operating lease liabilities     (43,806 )     (23,972 )
Other long-term tax liabilities     (3,840 )     153  
Other liabilities     12,957       4,663  

Net cash provided by operating activities

    124,013       415,389  

Cash Flows from Investing Activities

               
Capital expenditures     (105,077 )     (166,797 )
Cash paid for acquisitions, net of cash received     (11,201 )     (5,535 )
Other investing activities           (23,259 )

Net cash used in investing activities

    (116,278 )     (195,591 )

Cash Flows from Financing Activities

               
Borrowings under bank credit facility     965,100       1,061,929  
Payments under bank credit facility     (1,281,421 )     (1,240,950 )
Proceeds from issuance of senior notes     600,000        
Debt financing costs, net     (17,142 )     (44 )
Share-based compensation activities, net     (3,170 )     (3,067 )
Shares repurchased and retired     (11,121 )     (28,045 )
Dividends paid     (7,808 )     (21,169 )
Other financing activities     (1,551 )     (215 )

Net cash provided by (used in) financing activities

    242,887       (231,561 )

Change in cash, cash equivalents and restricted cash

    250,622       (11,763 )
Cash, cash equivalents and restricted cash, beginning of period     270,448       273,202  

Cash, cash equivalents and restricted cash, end of period

  $ 521,070     $ 261,439  

Supplemental Disclosure of Cash Flow Information

               
Cash paid for interest, net of amounts capitalized   $ 131,568     $ 161,028  
Cash paid for (received from) income taxes     (6,846 )     3,458  

Supplemental Schedule of Non-cash Investing and Financing Activities

               
Payables incurred for capital expenditures   $ 3,774     $ 1,586  
Mortgage settlement in exchange for real estate     57,684        

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

as of September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019

______________________________________________________________________________________________________

 

 

NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Boyd Gaming Corporation (and together with its subsidiaries, the "Company," "Boyd," "Boyd Gaming," "we" or "us") was incorporated in the state of Nevada in 1988 and has been operating since 1975. The Company's common stock is traded on the New York Stock Exchange under the symbol "BYD."

 

We are a geographically diversified operator of 29 wholly owned gaming entertainment properties. Headquartered in Las Vegas, we have gaming operations in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania.

 

Going Concern Matters and Management's Assessment

As a result of the COVID-19 global pandemic, all of our gaming facilities were closed in mid- March 2020 in compliance with orders issued by state officials as precautionary measures intended to slow the spread of the COVID-19 virus. As of September 30, 2020, 26 of our 29 gaming facilities have re-opened and are operating, subject to various health and safety measures, including occupancy limitations. Three of our properties in Las Vegas remain closed to the public due to the current levels of the demand in the market and our cost containment efforts. No dates have been set for re-opening these properties. We cannot predict whether we will be required to temporarily close some or all of our re-opened casinos in the future. Further, we cannot currently predict the ongoing impact of the pandemic on consumer demand and the negative effects on our workforce, suppliers, contractors and other partners. In responding to these circumstances, the safety and well-being of our team members and customers is our utmost priority. We have developed and implemented a broad range of safety protocols at our properties to ensure the health and safety of our team members and our customers.

 

The closures of our properties had a material impact on our business, and the COVID-19 pandemic, the associated impacts on customer behavior and the requirements of health and safety protocols are expected to continue to have a material impact on our business. The severity and duration of such business impacts cannot currently be estimated and the ultimate impact of the COVID-19 pandemic on our operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, its impact on the economy and consumer behavior and demand, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in additional business disruptions, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but is anticipated to have a material adverse impact on our business, financial condition and results of operations.

 

We have taken significant measures in response to the impact of the COVID-19 pandemic on our business, including (i) reducing the offering of certain amenities (because such amenities must remain closed) and otherwise limiting the availability of certain offerings, such as deactivating a substantial number of gaming devices to maintain social distancing and substantially limiting restaurant seating, as well as substantially limiting the number of customers permitted to be in a property at any time; (ii) adjusting property and corporate staffing levels in response to operational refinements and business volumes present as we re-opened our properties; (iii) suspending our quarterly cash dividend and share repurchase programs; and (iv) suspending all non-essential spending, including non-essential capital investment. 

 

On May 8, 2020, we amended the Boyd Credit Agreement to, among other things, waive the financial covenants for the period beginning on March 30, 2020 through the earlier of (x) the date on which the Company delivers to the administrative agent a covenant relief period termination notice, (y) the date on which the administrative agent receives a compliance certificate with respect to the Company’s fiscal quarter ending June 30, 2021, and (z) the date on which the Company fails to satisfy the conditions to covenant relief set forth in the amendment. On  May 21, 2020, we issued $600 million aggregate principal amount of 8.625% senior notes due 2025 to further increase our cash position. In August 2020, the Company further amended the Boyd Credit Agreement to increase the Revolving Credit Facility capacity by $88.2 million and extend the Revolving Credit Facility and Term A Loan to September 2023. (See Note 5, Long-Term Debt, for further discussion of these events.)

 

Due to the adverse impacts of COVID-19 on our business, we currently anticipate funding our operations over the next 12 months with the cash being generated by our re-opened properties, supplemented, if necessary, by the cash we currently have available and the borrowing capacity available under our Revolving Credit Facility. We assessed the recoverability of our assets as of the end of first quarter considering our then current expectations of the timing of re-openings and the expected level of operations to be achieved post re-opening. Based on this review, we recognized pre-tax, non-cash impairment charges of $171.1 million in the first quarter of 2020. If our expectations regarding projected revenues and cash flows related to our assets are not achieved, we may be subject to additional impairment charges in the future, which could have a material adverse impact on our consolidated financial statements. Our conclusions based on our reviews as of the end of second quarter and third quarter of 2020 were that no additional impairment charges were required.

 

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnote disclosures necessary for complete financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2019, as filed with the U.S. Securities and Exchange Commission ("SEC") on February 27, 2020.

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

as of  September 30, 2020 and  December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019

______________________________________________________________________________________________________

 

The results for the periods indicated are unaudited, but reflect all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of financial position, results of operations and cash flows. Results of operations and cash flows for the interim periods presented herein are not necessarily indicative of the results that would be achieved during a full year of operations or in future periods.

 

The accompanying condensed consolidated financial statements include the accounts of Boyd Gaming and its wholly owned subsidiaries. Investments in unconsolidated affiliates, which do not meet the consolidation criteria of the authoritative accounting guidance for voting interest, controlling interest or variable interest entities, are accounted for under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments, which include cash on hand and in banks, interest-bearing deposits and money market funds with maturities of three months or less at their date of purchase. The instruments are not restricted as to withdrawal or use and are on deposit with high credit quality financial institutions. Although these balances may at times exceed the federal insured deposit limit, we believe such risk is mitigated by the quality of the institution holding such deposit. The carrying values of these instruments approximate their fair values as such balances are generally available on demand.

 

Restricted Cash

Restricted cash consists primarily of advance payments related to: (i) future bookings with our Hawaiian travel agency; and (ii) amounts restricted by regulation for gaming and racing purposes. These restricted cash balances are invested in highly liquid instruments with a maturity of 90 days or less. These restricted cash balances are held by high credit quality financial institutions. The carrying value of these instruments approximates their fair value due to their short maturities.

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash balances reported within the condensed consolidated balance sheets to the total balance shown in the condensed consolidated statements of cash flows.

 

  

September 30,

  

December 31,

  

September 30,

  

December 31,

 

(In thousands)

 

2020

  

2019

  

2019

  

2018

 
Cash and cash equivalents $506,046  $249,977  $235,084  $249,417 
Restricted cash  15,024   20,471   26,355   23,785 

Total cash, cash equivalents and restricted cash

 $521,070  $270,448  $261,439  $273,202 

 

Leases

Management determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. For our operating leases for which the rate implicit in the lease is not readily determinable, we generally use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use ("ROU") assets and finance lease assets are recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease and non-lease components are accounted for separately.

 

Revenue Recognition

The Company’s revenue contracts with customers consist of gaming wagers, hotel room sales, food & beverage offerings and other amenity transactions. The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. Cash discounts, commissions and other cash incentives to customers related to gaming play are recorded as a reduction of gross gaming revenues. The transaction price for hotel, food & beverage and other contracts is the net amount collected from the customer for such goods and services. Hotel, food & beverage and other services have been determined to be separate, stand-alone performance obligations and the transaction price for such contracts is recorded as revenue as the good or service is transferred to the customer over their stay at the hotel, when the delivery is made for the food & beverage or when the service is provided for other amenity transactions.

 

Gaming wager contracts involve two performance obligations for those customers earning points under the Company’s player loyalty programs and a single performance obligation for customers who do not participate in the programs. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the effects on the financial statements of applying the revenue recognition guidance to the portfolio to not differ materially from that which would result if applying the guidance to an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with the loyalty points earned, the Company allocates an amount to the loyalty point contract liability based on the stand-alone selling price of the points earned, which is determined by the value of a point that can be redeemed for a hotel room stay, food & beverage or other amenities. Sales and usage-based taxes are excluded from revenues. An amount is allocated to the gaming wager performance obligation using the residual approach as the stand-alone price for wagers is highly variable and no set established price exists for such wagers. The allocated revenue for gaming wagers is recognized when the wagers occur as all such wagers settle immediately. The loyalty point contract liability amount is deferred and recognized as revenue when the customer redeems the points for a hotel room stay, food & beverage or other amenities and such goods or services are delivered to the customer. See Note 4, Accrued Liabilities, for the balance outstanding related to player loyalty programs.

 

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

as of  September 30, 2020 and  December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019

______________________________________________________________________________________________________

 

The Company collects advanced deposits from hotel customers for future reservations representing obligations of the Company until the hotel room stay is provided to the customer. See Note 4, Accrued Liabilities, for the balance outstanding related to advance deposits.

 

The Company's outstanding chip liability represents the amounts owed in exchange for gaming chips held by a customer. Outstanding chips are expected to be recognized as revenue or redeemed for cash within one year of being purchased. See Note 4, Accrued Liabilities, for the balance outstanding related to the chip liability.

 

The retail value of hotel accommodations, food & beverage, and other services furnished to guests without charge is recorded as departmental revenues. Gaming revenues are net of incentives earned in our slot bonus program such as cash and the estimated retail value of goods and services (such as complimentary hotel rooms and food & beverage). We reward customers, through the use of bonus programs, with points based on amounts wagered that can be redeemed for a specified period of time for complimentary slot play, food & beverage, and to a lesser extent for other goods or services, depending upon the property.

 

The estimated retail value related to goods and services provided to customers without charge or upon redemption of points under our player loyalty programs, included in departmental revenues and therefore reducing our gaming revenues, are as follows:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 

(In thousands)

 

2020

  

2019

  

2020

  

2019

 

Food & beverage

 $20,055  $52,924  $69,470  $159,966 

Rooms

  12,007   24,482   34,162   71,798 

Other

  1,211   3,753   4,265   10,983 

 

Gaming Taxes

We are subject to taxes based on gross gaming revenues in the jurisdictions in which we operate. These gaming taxes are recorded as a gaming expense in the condensed consolidated statements of operations. These taxes totaled approximately $114.8 million and $136.2 million for the three months ended September 30, 2020 and 2019, respectively, and $259.7 million and $411.0 million for the nine months ended September 30, 2020 and 2019, respectively.

 

Income Taxes

Income taxes are recorded under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. Use of the term "more likely than not" indicates the likelihood of occurrence is greater than 50%. Accordingly, the need to establish valuation allowances for deferred tax assets is continually assessed based on a more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of profitability, the duration of statutory carryforward periods, our experience with the utilization of operating loss and tax credit carryforwards before expiration and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified.

 

Other Long-Term Tax Liabilities

The Company's income tax returns are subject to examination by the Internal Revenue Service and other tax authorities in the locations where it operates. The Company assesses potentially unfavorable outcomes of such examinations based on accounting standards for uncertain income taxes, which prescribe a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements.

 

Uncertain tax position accounting standards apply to all tax positions related to income taxes. These accounting standards utilize a two-step approach for evaluating tax positions. Recognition occurs when the Company concludes that a tax position, based on its technical merits, is more likely than not to be sustained upon examination. Measurement is only addressed if the position is deemed to be more likely than not to be sustained. The tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon settlement.

 

Tax positions failing to qualify for initial recognition are recognized in the first subsequent interim period that they meet the "more likely than not" standard. If it is subsequently determined that a previously recognized tax position no longer meets the "more likely than not" standard, it is required that the tax position is derecognized. Accounting standards for uncertain tax positions specifically prohibit the use of a valuation allowance as a substitute for derecognition of tax positions. As applicable, the Company will recognize accrued penalties and interest related to unrecognized tax benefits in the provision for income taxes. Accrued interest and penalties are included in other long-term tax liabilities on the condensed consolidated balance sheets.

 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, especially given that the full impact of COVID-19 is not yet known, and could have a material adverse impact on our consolidated financial statements.

 

10

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

as of  September 30, 2020 and  December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019

______________________________________________________________________________________________________

 

Recently Adopted Accounting Pronouncement

In March 2020, the SEC amended Rules 3-10 and 3-16 of Regulation S-X, narrowing the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those separate statements. The final rule also allows us to replace the condensed consolidating financial information for our subsidiary guarantors and non-guarantors that had been provided in the footnotes of our previous filings with the simplified disclosure that is now included within our Management’s Discussion and Analysis. This rule is effective January 4, 2021 with early adoption permitted. The Company elected to early adopt this rule during the three months ended June 30, 2020.

 

Accounting Standards Update ("ASU") Reference Rate Reform, Topic 848 ("Update 2020-04")

In March 2020, the FASB issued Update 2020-04 to provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. Update 2020-04 was effective upon issuance and may be applied prospectively through December 31, 2022. The application of Update 2020-04 is not expected to have a material impact on the condensed consolidated financial statements.

 

ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("Update 2018-13")

In August 2018, the Financial Accounting Standards Board ("FASB") issued Update 2018-13 to modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The standard is effective for financial statements issued for annual periods and interim periods within those annual periods beginning after December 15, 2019. The Company adopted Update 2018-13 during first quarter 2020 and the impact of the adoption to its condensed consolidated financial statements was not material.

 

Recently Issued Accounting Pronouncements

ASU 2020-01, Investments - Equity Securities, Topic 321, Investments - Equity Method and Joint Ventures, Topic 323, and Derivative and Hedging, Topic 815 ("Update 2020-01")

In January 2020, the FASB issued Update 2020-01 to clarify guidance in accounting for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative. Update 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of Update 2020-01 to the condensed consolidated financial statements.

 

A variety of proposed or otherwise potential accounting standards are currently being studied by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our consolidated financial statements.

 

 

NOTE 2.    PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2020

  

2019

 
Land $322,406  $324,501 
Buildings and improvements  3,053,179   3,090,974 
Furniture and equipment  1,650,189   1,596,395 
Riverboats and barges  241,043   241,036 
Construction in progress  72,936   56,069 

Total property and equipment

  5,339,753   5,308,975 
Less accumulated depreciation  2,805,856   2,636,422 

Property and equipment, net

 $2,533,897  $2,672,553 

 

Depreciation expense is as follows:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 

(In thousands)

 

2020

  

2019

  

2020

  

2019

 

Depreciation expense

 $64,478  $57,278  $190,975  $178,175 

 

11

 

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

as of  September 30, 2020 and  December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019

______________________________________________________________________________________________________

 

 

NOTE 3.    GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

 

  

September 30, 2020

 
  

Weighted

  

Gross

      

Accumulated

     
  

Useful Life

  

Carrying

  

Accumulated

  

Impairment

  

Intangible

 

(In thousands)

 

Remaining (in years)

  

Value

  

Amortization

  

Losses

  

Assets, Net

 

Amortizing intangibles

                   

Customer relationships

 2.7  $68,100  $(51,197) $  $16,903 

Host agreements

 12.7   58,000   (9,022)     48,978 

Development agreement

    21,373         21,373 
      147,473