Boyd Gaming boosts share buyback program by $500M

Published 05/12/2024, 22:14
Boyd Gaming boosts share buyback program by $500M
BYD
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LAS VEGAS - Boyd Gaming Corporation (NYSE: NYSE:BYD (SZ:002594)) has announced the Board of Directors' approval of an additional $500 million for the company's share repurchase program. This move increases the total available repurchase authority to approximately $843 million as of September 30, 2024. According to InvestingPro data, management has been consistently aggressive with share buybacks, while maintaining impressive gross profit margins of 62%.

The company also declared a quarterly cash dividend of $0.17 per share, which is slated for payment on January 15, 2025, to shareholders of record by December 16, 2024. The company's annual dividend yield stands at 0.91%, with a 6.25% dividend growth over the last twelve months.

Boyd Gaming, established in 1975, operates 28 gaming entertainment properties across 10 states and manages a tribal casino in northern California. Additionally, it owns and operates Boyd Interactive, an online casino gaming business serving both business-to-business and business-to-consumer markets. The company holds a strategic partnership and a 5% equity stake in FanDuel Group, a prominent sports-betting operator in the nation.

With a seasoned leadership team, Boyd Gaming is known for providing exceptional entertainment experiences and customer service. The company emphasizes its corporate social responsibility through a philosophy known as "Caring the Boyd Way," aiming to make a positive impact on its stakeholders and communities.

This financial update is based on a press release statement from Boyd Gaming Corporation.

In other recent news, Boyd Gaming Corporation reported a robust financial performance in its third-quarter earnings call, highlighting healthy property-level margins and significant progress on various expansion plans. The company's property-level margins exceeded 39%, with a strong performance, particularly from the Treasure Chest Casino (EPA:CASP). Expansion plans include the Sky River Expansion, Cadence Crossing Casino, and a casino in Norfolk, Virginia.

Boyd Gaming also emphasized its commitment to growth and shareholder returns, with a $100 million quarterly share repurchase program and a strategic focus on operational efficiency. The company repurchased $202 million in stock and plans to maintain a leverage ratio of 2.5 times.

These recent developments indicate Boyd Gaming's disciplined approach to growth, despite minor challenges such as a slight decrease in EBITDAR margins from 50% to 49% compared to the previous year. The company's diversification strategies, including recent acquisitions, are yielding positive results, with the online segment, in partnership with FanDuel, expected to increase EBITDAR guidance.

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