Earnings call transcript: Boyd Gaming Q2 2025 earnings beat expectations

Boyd Gaming Corporation (BYD) reported strong financial results for the second quarter of 2025, significantly surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $1.87, beating the forecast of $1.65 by 13.33%. Revenue also exceeded projections, reaching $1.03 billion compared to the anticipated $979.42 million. With impressive gross profit margins of 61.6% and an overall "GOOD" financial health score according to InvestingPro, the company continues to demonstrate robust operational efficiency. Despite this positive performance, the stock experienced a 1.22% decline in regular trading hours, closing at $83.48, with a modest recovery in aftermarket trading, rising by 0.3% to $83.73.

Key Takeaways

• Boyd Gaming’s EPS and revenue significantly beat analyst forecasts for Q2 2025.
• The company completed the sale of its FanDuel stake, expecting after-tax proceeds of approximately $1.4 billion.
• Renovation and expansion projects are underway at several properties, supporting future growth.
• Despite strong earnings, the stock fell 1.22% in regular trading but rose slightly in aftermarket trading.
• Boyd Gaming is focusing on operational efficiency and market expansion through 2038.

Company Performance

Boyd Gaming demonstrated strong performance in Q2 2025, with revenue and EBITDAR growth reaching their highest levels in over three years. The company maintained property-level margins above 40%, reflecting efficient operations despite cost pressures. With a return on equity of 36% and return on invested capital of 14%, the company’s operational efficiency stands out among its peers. Boyd Gaming’s strategic sale of its FanDuel stake for $1.755 billion is expected to yield substantial after-tax proceeds, further strengthening its financial position. InvestingPro analysis reveals 12 additional key insights about Boyd Gaming’s performance and potential, available to subscribers.

Financial Highlights

• Revenue: $1.03 billion, up 4% year-over-year
• Earnings per share: $1.87, exceeding forecasts by 13.33%
• EBITDAR: Increased 4% to $358 million
• Property margins: Consistently above 40%

Earnings vs. Forecast

Boyd Gaming exceeded earnings expectations with an EPS of $1.87, compared to the forecast of $1.65, marking a 13.33% surprise. Revenue also outperformed, with a 5.16% surprise, reflecting the company’s robust financial health and operational efficiency.

Market Reaction

Despite the positive earnings report, Boyd Gaming’s stock fell by 1.22% during regular trading hours. The stock did, however, see a slight recovery in aftermarket trading, increasing by 0.3% to $83.73. According to InvestingPro data, analysts maintain a bullish outlook, with six analysts recently revising their earnings estimates upward. The stock has delivered impressive returns, up 42% over the past year, though current trading levels suggest slight overvaluation based on InvestingPro’s Fair Value analysis.

Outlook & Guidance

Boyd Gaming remains optimistic about future growth, with ongoing renovations and new developments, such as the Cadence Crossing Casino and Norfolk resort, expected to drive long-term value. The company projects its online segment to generate $50-55 million in EBITDAR in 2025 and has increased its quarterly share repurchase target to $150 million. Management’s aggressive share buyback program and consistent dividend growth over the past three years, with a current yield of 0.87%, demonstrate strong commitment to shareholder returns. For detailed analysis of Boyd Gaming’s growth strategy and financial outlook, access the comprehensive Pro Research Report available on InvestingPro.

Executive Commentary

CEO Keith Smith highlighted the company’s strategic moves, stating, "We have created nearly $2 billion in value for our shareholders, all from a $10 million investment." CFO Josh Hirschberg emphasized fiscal prudence, noting, "We’re not going to go out of our way to do something just to get leverage back up."

Risks and Challenges

• Potential macroeconomic pressures could impact future performance.
• Ongoing cost pressures may affect operational margins.
• Market saturation and competitive pressures in key regions.
• Managing tariff impacts and supply chain disruptions.

Q&A

During the earnings call, analysts inquired about Boyd Gaming’s plans post-FanDuel transaction and its strategy to manage unrated/retail play improvements. The company confirmed no major M&A plans and expressed confidence in handling tariff impacts, maintaining a stable promotional environment.

Full transcript - Boyd Gaming Corp (BYD) Q2 2025:

David Strau, Vice President of Corporate Communications, Boyd Gaming: Good afternoon, and welcome to the Boyd Gaming Second Quarter twenty twenty five Earnings Conference Call. My name is David Strau, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today’s call, which we are hosting on Thursday, 07/24/2025. This time, all lines are in listen only mode. Following our remarks, we will conduct a question and answer session.

Our speakers for today’s call are Keith Smith, President and Chief Executive Officer and Josh Hirschberg, Executive Vice President and Chief Financial Officer. Our comments today will include statements that are forward looking statements within the Private Securities Litigation Reform Act. All forward looking statements in our comments are as of today’s date, and we undertake no obligation to update or revise the forward looking statements. Actual results may differ materially from those projected in any forward looking statement. There are certain risks and uncertainties, including those disclosed in our filings with the SEC, that may impact our results.

During our call today, we will make reference call For a complete reconciliation of historical non GAAP to GAAP financial measures, please refer to our earnings press release and our Form eight ks furnished to the SEC today, and both of which are available at investors.boygaming.com. We do not provide a reconciliation of forward looking non GAAP financial measures due to our inability to project special charges and certain expenses. Today’s call is being webcast live at boygaming.com and will be available for replay in the Investor Relations section of our website shortly after the completion of this call. So with that, I would now like to turn the call over to Keith Smith. Keith?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Thanks, David, and good afternoon, everyone. Before discussing our second quarter results, let me first touch on our recent FanDuel announcement. We announced two weeks ago we reached an agreement to sell our 5% equity interest in FanDuel to Flutter Entertainment for $1,755,000,000 in cash, unlocking the significant value that we have created through our partnership with FanDuel. Part of this transaction, we extended our market access agreements with FanDuel through 2038 and adjusted our market access rates. We expect this transaction to close and to receive the proceeds in the next several weeks.

The net proceeds will be used to pay down debt, reducing our leverage below two times. As a result of this transaction, our company is in an even stronger financial position to continue executing our strategy of investing in our properties, pursuing attractive growth opportunities, returning capital to shareholders, and maintaining a strong balance sheet, consistent with our focus over the last several years. Now moving on to second quarter results, we delivered a strong performance in the second quarter. For the quarter, revenues excluding tax pass through amounts grew 4%, while EBITDAR also increased 4% to $358,000,000 These results were driven by broad based growth across our operating segments, including both our online and managed segments, demonstrating the value of our diversified business model. On a property level basis, year over year revenue and EBITDAR growth was the strongest in more than three years, while property level margins once again exceeded 40%, a level we have consistently delivered since 2021.

Across the portfolio, our results were supported by continued strength in play from our core customers as well as improving trends among retail customers. Turning to segment results, our Las Vegas Local segment had a strong quarter delivering its first year over year revenue and EBITDAR growth in more than two years, while maintaining segment margins of nearly 50%. This performance was led by growth in play from our core customers as well as continued improvements in retail play. Growth in play among our local guests more than offset softness in play for out of town customers. While the Las Vegas Strip has recently seen softer demand trends, there are signs of continued strength in the local economy.

In Southern Nevada, employment continues to grow while local income is increasing with average weekly wages up more than 5% over the prior year, well above the national average. Southern Nevada’s cost of living remains below the national average ranking among the most affordable of the nation’s 30 largest metropolitan areas. Las Vegas Valley has nearly $11,000,000,000 in construction activity currently underway reflecting continued strength in this critical economic sector. And the recent tax bill passed by Congress includes several provisions that will benefit both our Southern Nevada operations and our Midwest and South operations. These provisions include tax deduction for tips and overtime, a new deduction for seniors and a larger standard deduction for taxpayers.

Given these positive factors, we remain confident in the prospects for the Southern Nevada economy and the future of our locals business. Next, our Downtown Las Vegas segment delivered a solid quarterly performance against the challenging prior year comparison. As you may recall, last year’s second quarter benefited from significant pent up demand from our Hawaiian customers who did not visit in the first quarter of last year due to higher airfares related to Super Bowl. Importantly, the underlying performance of our downtown business remained stable. Through the first six months of the year, both revenue and EBITDAR in the downtown segment were up more than 1% over the prior year.

Next, our Midwest and South segment, which was impacted by both flood related closures and the shift of Easter into April, delivered revenue and EBITDAR gains of more than 3%. This marked the segment’s highest quarterly revenue and EBITDAR in nearly three years. Growth in this segment was led by continued strong performance at Treasure Chest, which marked its one year anniversary on June 6. Similar to the Las Vegas Locals segment, we continue to see strength in play from our core customers during the second quarter, while play from retail customers also improved. Next, in our online segment, both revenues and EBITDA increased driven by Boyd Interactive and modest growth from our market access agreements.

Finally, our managed business continues its strong performance with ongoing growth and management fees from Sky River Casino. Given Sky River’s ongoing success, we remain optimistic about the future potential of the expansion currently underway at this property. First phase of this expansion, set for completion early next year, will address the need for more gaming capacity by adding 400 slot machines as well as a 1,600 space parking garage. The second phase will further diversify Sky River’s offerings with a 300 room hotel, three new food and beverage outlets, a full service resort spa, and an entertainment and event center. Once complete in mid-twenty twenty seven, this expansion will further strengthen Sky River’s position as one of Northern California’s leading gaming entertainment destinations.

So in all, we delivered strong results in the second quarter, reflecting the strength of our customer base, the quality of our property amenities and the benefits of our diversified business. Moving next to our capital investment program, we continued our work in the second quarter highlighted by hotel renovations at several of our properties as well as the ongoing improvements at The Suncoast. During the quarter, we completed a hotel room renovation at Valley Forge and continue to work on our room renovation project at the IP. And we plan to start hotel renovations at the Orleans in the coming months. In addition, our property wide renovation of The Suncoast is continuing and is now in its most disruptive stage with large portions of the casino floor under renovation.

We are on track to complete the Suncoast renovations in the first quarter of next year. And given the strong response we’ve already seen to the new amenities we recently added, we are confident in the long term potential of this project. On property enhancements, we have several projects underway to strengthen the long term growth profile of our business. These investments are part of our $100,000,000 in annual recurring growth capital. In Missouri, we are on track for a late August completion of our meeting and convention center at Ameristar St.

Charles. We expect this project to drive strong returns given the encouraging pre bookings that the property has already secured for the new space. Importantly, more than 90% of these pre bookings are from entirely new customers, a strong indication that this project will further expand Ameristar’s customer base and drive incremental growth at the property. Also, work is progressing on our Cadence Crossing Casino in Southern Nevada. The adjacent community of Cadence is one of the fastest growing master plan communities in the nation, creating a compelling long term growth opportunity for our company.

On track to open in mid-twenty twenty six, Cadence Crossing will replace our existing Joker’s Wild Casino with a modern gaming entertainment facility designed to appeal to the thousands of new residents throughout the area. We are well positioned to keep pace with continued residential growth in the area with future plans for a hotel, additional casino space and more non gaming amenities. Beyond these investments, we’re developing plans for the next phase of projects to further strengthen our long term growth profile. In Illinois, we’re working through the final design and regulatory approval process for a modern new entertainment facility that will replace our existing Riverboat Casino at Paradise. Assuming regulatory approvals are received later this year, we expect this project to begin in 2026.

And in Norfolk, we’re on track to open our transitional casino in November, while construction is progressing on our $750,000,000 permanent resort, which is scheduled to open in late twenty twenty seven. Once complete, this resort will include a 65,000 square foot casino, a 200 room hotel, eight food and beverage outlets, live entertainment and an outdoor amenity deck. In addition to being the leading gaming resort in the market, our property will be the most convenient gaming destination for much of the Hampton Roads Metropolitan area, one of the largest underserved markets in the Mid Atlantic region with nearly 1,800,000 people. We also expect to draw tourists from nearby Virginia Beach, a destination that attracts nearly 15,000,000 visitors each year. By offering a best in market experience with compelling amenities and easy access, we believe our Norfolk resort will deliver strong returns for our company in the coming years.

In all, our capital investment program is an important part of driving growth and creating long term shareholder value. The same time, we are investing in our properties and developing projects to support our long term growth. We remain committed to returning capital to our shareholders. During the second quarter, we repurchased $105,000,000 in stock and paid $15,000,000 in dividends. Since we began our capital return program in 2021, we’ve returned nearly $2,400,000,000 to our shareholders.

And with the recent FanDuel transaction, we have increased flexibility to continue our capital return program. As a result, we plan to increase our target for share repurchases from $100,000,000 per quarter to $150,000,000 per quarter starting with the third quarter. And while the proceeds from this transaction will initially be used to reduce debt, our proven track record of making smart capital allocation decisions gives us confidence in our ability to deploy these proceeds toward attractive higher returning investments in the future. In closing, the combination of an attractive growth pipeline, ongoing property investments, a strong financial position and our ability to deliver consistent results, all position us well to continue creating long term shareholder value. Before I turn the call over to Josh, I want to thank our team members who are key to our ongoing success.

Every day they provide our guests with memorable and distinctive service, providing a unique experience that builds loyalty to our brand. Thank you for your time today. I would now like to turn the call over to Josh. Thanks, Keith,

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: and good afternoon, everyone. In light of our recently announced transaction to sell our 5% interest in FanDuel to Flutter, I wanted to take a few moments to review the financial impacts for our company. This transaction further enhances our financial flexibility, strengthens our already strong balance sheet and is accretive to free cash flow. As Keith noted, we expect to receive $1,755,000,000 in total proceeds in the next several weeks. We estimate after tax proceeds of approximately $1,400,000,000 or more than $17 per share.

Initially, we intend to use the proceeds to completely repay the debt outstanding under our credit facility. Total leverage at the end of the second quarter was approximately 2.8 times or 3.2 times on a lease adjusted basis. Pro form a for this transaction, we estimate leverage will be reduced by approximately one turn. As a result of reduced debt balances, we estimate interest expense savings of approximately $85,000,000 on an annualized basis. As noted in our press release announcing the FanDuel transaction, our future results will reflect the economics of the new market access agreements, which are effective July 1, pending regulatory approvals.

We estimate our online segment will generate $50,000,000 to $55,000,000 in EBITDAR for the full year 2025 followed by $30,000,000 in EBITDAR in 2026. Summarize the impacts of this transaction, leverage is lower, our market access agreements are extended through 2038 with a reduced fee structure, free cash flow is increased and we are in an even stronger position to execute our strategy. Now let’s take a few moments to review the second quarter. The results for the quarter were strong across the company, growing revenue and EBITDAR, while property level margins were once again 40%. Property level margins have consistently remained at or above this level, a reflection of our continued focus on maintaining operating efficiencies.

During the quarter, we continued to see strength in play from our core customers and improving trends in play from our retail customers. Tax pass through amount for our online segment was $134,000,000 during the second quarter compared to $104,000,000 in the year ago period. Excluding the tax pass through amount for this quarter, company wide margins for the second quarter of this year would have been five fifteen basis points above the margin we reported. With respect to capital expenditures, we invested $124,000,000 in capital during the second quarter, bringing year to date capital expenditures to $251,000,000 We continue to project total capital expenditures for full year of $600,000,000 to $650,000,000 These capital plans include approximately $250,000,000 in maintenance capital, dollars 100,000,000 related to our hotel room projects at IP, Valley Forge and the Orleans, dollars 100,000,000 in growth capital for the meeting and convention space at Ameristar St. Charles and the new Cadence Crossing development here in Las Vegas, and finally $150,000,000 to $200,000,000 for our casino development in Virginia.

In terms of our shareholder capital return program, we paid a regular quarterly dividend of $0.18 per share during the second quarter, $15,000,000 Also during the quarter, we repurchased $105,000,000 in stock, acquiring 1,500,000.0 shares at an average price of $70.94 per share. Actual shares outstanding at the end of the quarter were 80,500,000.0 shares. Year to date, we have repurchased 5,900,000.0 shares at an average price of $72.98 per share. As Keith noted earlier, we intend to increase our share repurchase program to $150,000,000 per quarter, supplemented by our regular quarterly dividend. Considering this higher rate of repurchase activity in conjunction with our quarterly dividend, going forward our annual run rate of capital returns to shareholders are expected to total approximately $700,000,000 or about $9 per share.

Since we began our capital return program in October 2021, we have returned nearly $2,400,000,000 in the form of share repurchases and dividends, while reducing our share count by 28%. Following the end of the second quarter, our Board of Directors approved an additional $500,000,000 share repurchase authorization, providing the company a total repurchase authorization of $7.00 $7,000,000 In conclusion, with strong play from our core customer and improving trends among our retail customers, efficient operations, robust free cash flow and the strongest balance sheet in our company’s history, we have outstanding flexibility to continue executing our strategy for creating long term shareholder value. With that, I will now turn it to David to open the call for questions.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Thank you, Josh. We will now begin our question and answer session. If you would like to ask a question, please press star then 1 on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to withdraw your request, please press then 2.

If you are using a speakerphone, please use your handset when asking your question. We will pause for a moment while we compile our list of questioners. Our first question comes from Steve Wieczynski of Stifel. Steve, please go ahead.

Steve Wieczynski, Analyst, Stifel: Yes. Hey, guys. Good afternoon. Keith or Josh, I guess one of the questions we’ve gotten a lot since this transaction was announced is what is Boyd going to do with the proceeds? And you guys, I think, have made it pretty clear that you’re going to be reducing leverage, taking up your quarterly buyback, all that kind of stuff.

But what does this mean now for what I would call kind of other opportunities? And I guess what I’m trying to understand is, does this take away material M and A transactions? Or maybe a better way to ask that is, what does growth opportunities mean for you guys?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Sure, Steve. I’ll take a shot at this. We assume that there would be some discussion transaction on this call. So let me provide some context for you. First, I will go ahead and say it upfront.

This FanDuel transaction is not a precursor to another transaction. Flutter and FanDuel have done a remarkable job over the last seven years or so in becoming the industry leader in online sports betting and casino. They have created tremendous value both for themselves and for us. And over the last seven years, our partnership with FanDuel has continued to grow in value and represents a significant asset for our company. Between our market access fees over the last seven years and our 5% equity interest in FanDuel, we have created nearly $2,000,000,000 in value for our shareholders, all from a $10,000,000 investment, a pretty fair return I think.

As we analyze our equity value, Boyd’s equity value, it’s our belief that our stock price doesn’t properly reflect the true value created by this investment. And as a result, we determined that as we are approaching the end of this partnership, now is an appropriate time to monetize this investment and to focus the proceeds on future growth. So now it’s our turn to take advantage of the investment and invest in the future of our company. And while we are initially reducing debt, our goal is to deploy this new capital in an attractive higher returning investments to support the long term growth of our company. We commented on that in our prepared remarks and we are confident in our ability to do so.

This transaction doesn’t change our strategy of having a balanced approach to capital allocation. That balanced approach includes investing in our business and pursuing attractive growth opportunities as well as returning capital to shareholders and maintaining a strong balance sheet. This transaction doesn’t change the cadence of our current investment strategy or our views on capital deployment or potential M and A. We have a successful track record of disciplined capital allocation that has served us and our shareholders well and we remain committed to this approach. This transaction merely allows us to continue our strong track record of making sound capital allocation decisions from a stronger position.

Questions. If you have additional questions, feel free to reach out to either Josh or Amir after the call is over and we’d appreciate kind of staying focused on Q2 earnings for the rest of the questions.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Our next question comes from Barry Jonas of Truist Securities. Barry, please go ahead.

Steve Wieczynski, Analyst, Stifel: Great. Thank you. I appreciate all the comments there. Maybe just at a high level, philosophically, now that leverage is going to be around 2x, what do you think philosophically is the optimal level that leverage should be for Boyd?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: So I think, Barry, before this transaction, we would have said leverage was going to be we were going to run our company at around 2.5x leverage. And I would say, we had always said if by chance there was a transaction that caused us to leverage up, we would have the intention of coming back down to 2.5x. So I’d say today, expectation is obviously leverage will be lower than 2.5x. We will probably run the company not necessarily with the objective of staying below 2.5 times, but that’s probably where we are going to run the company for the time being as we figure out where best to allocate the capital to get the returns. I don’t think we are going to kind of go out of our way to do something just to get leverage back up to a level that where it should be.

I think we’re going to continue to be disciplined in terms of how we think about opportunities, continue to be disciplined in how we think about pursuing capital investment within our own company. And I think one thing we’ve said before and I’ll reiterate it here is just because we have a ton of flexibility doesn’t mean we’re going to go out and try to do something that doesn’t make sense. We’ve been really disciplined. Keith made that comment in his remarks. We think it’s paid off for our shareholders and we’ll continue to approach allocating capital in that way.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes. Look, I think the way we think about this is as a result of the transaction, end up with leverage sub-two in the high-1s. But it’s simply a point in time in the history of the company. We don’t expect that it’s going to stay there. It’s our job to take that and invest it in higher returning assets, simply higher returning than paying down 6% debt.

And we understand that’s our mission and our goal and we’ll endeavor to do that. And so the sub two times leverage is just once again it’s a level we’re at today as a result of the transaction in longer term I suspect as Josh indicated we’ll be more in the 2.5 range long term.

Steve Wieczynski, Analyst, Stifel: That’s great. And then just as a follow-up, any comments you can give in terms

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: of the

Steve Wieczynski, Analyst, Stifel: promotional environment in kind of your key markets? We certainly heard some chatter from some about ramping promos in some select markets. So curious what you are seeing and how you are responding if that’s true? Thank you.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Sure. It sounds like this is simply on replay, but over

Barry Jonas, Analyst, Truist Securities: the

Keith Smith, President and Chief Executive Officer, Boyd Gaming: last several years including in Q1 and Q2, the promotional environment has been relatively stable both here in Las Vegas as well as in our Midwest and South markets. I’ve said in the past and I’ll say it again, those properties that have been promotional for the last couple of years remain promotional. Those properties that have been more disciplined have stayed more disciplined and while somebody, some properties always stepping out a little bit, they do it for a month or so and then it comes back to normal. So there is not a heightened promotional environment anywhere where we operate. And Barry,

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: the only thing I would add to that you ask, how are we responding? We’re not. If you look at our reinvestment rate as a percent marketing reinvestment rate as a percent of revenues, it’s been very stable since we came out of COVID. So you can see that reflected in our EBITDA margins for the company over the last five years as well.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes. And I would say that includes not getting into room rate war here in Las Vegas where room rates are extremely low. We’re not chasing room rates down or being disciplined. And so we’ll just continue to work our way through that.

Steve Wieczynski, Analyst, Stifel: That’s great. Thank you so much for all the color.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: You’re welcome.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Thank you. Our next question comes from John DeCree of CBRE. John, please go ahead.

Barry Jonas, Analyst, Truist Securities: Can you hear me?

David Strau, Vice President of Corporate Communications, Boyd Gaming: John, please go ahead. Yes, we can hear you.

Barry Jonas, Analyst, Truist Securities: Fantastic. Hi, Josh. Hi, Keith. John. Wanted to ask a question about the pickup in retail that you’ve seen.

It sounded like kind of on rate of play pickup in locals and regionally. And curious if you could give us any more color on that. I know that’s a segment that’s a bit harder to track. And I guess kind of interested in sustainability and kind of the trend over the last couple of quarters leading to what seems like some growth in that segment finally.

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yes, John, it’s a good question. I think that first of all, when you think about and I’ll primarily touch on the Midwest and South and Las Vegas locals when I talk about the trends we’re seeing in unrated. So first starting with the Midwest and South, we combine unrated into our what we call our retail segment. In the Midwest and South, I think retail as a whole, the low end of our database as well as retail has been pretty stable for well over a year, I will say, kind of not really growing, but not declining. Starting in the second quarter, we began to see a pickup in unrated play.

We attribute that largely to customers staying closer to home, I. E. Drive in business and truly local customers even in the regional business, kind of not traveling or not taking that extra trip. Whether it’s and this is a broader comment, whether it’s sustainable or not, I think we’re going to need to see another quarter or two. But there is no doubt that’s what showed up and kind of pivoted retail to being a much more improved segment of our customer base.

In Las Vegas and Keith alluded to this earlier with his comment on room rates, I mean, we’ve seen a real kind of softness and you’re seeing it in The Strip as well I think in destination business. We’re seeing it in our own business in particular place like Orleans where we have a significant room inventory. We’re just not seeing the same level of demand that we’ve seen historically from destination business, but that’s been more than made up by retail and drive in business and once again showing up in that unrated segment. And for our business to work, we’ve had a very consistent core customer and we’ve been waiting for the retail customer to really kind of come back into the fray. I would say the second quarter largely driven by unrated business is where they showed up.

Now whether it will continue or not, I do think we need another quarter or two before we can kind of say we are back to normal so to speak. Keith, I don’t know, is there anything you want to add to that?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: No, I think that fairly summarizes kind of what we saw at the second quarter.

Barry Jonas, Analyst, Truist Securities: That’s helpful. I appreciate the color. Maybe a quick follow-up on the online gaming strategy from here. Now that you’ve kind of sold your 5% stake in FanDuel, is there any change in how you approach online gaming kind of under the new commercial agreement that you have with Sandoz. Is it an area that you might look to invest in more aggressively than you’ve had in the past or any change in strategy on the digital front?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes, no real change in strategy. We bought Palo Interactive several years ago now known as Boyd Interactive. It has grown nicely over the last several years. We did a small bolt on acquisition last year to bolster the New Jersey part of that business. It’s performing well.

But when we bought Palo, we described what we call the regional strategy. We wanted to be able to make sure we had a compelling and competitive product in the markets where we operate and in some of the important surrounding states where we draw customers that we were not looking to have a national product or be a national leader in the online casino business. That remains the same today. None of that changes with respect to the transaction with FanDuel. We will continue to be focused on a regional online casino strategy.

And while we’re waiting for other states to legalize this product, we’ll just continue to make sure that we improve our core product and that it’s ready when various legislations around the country approve this.

Barry Jonas, Analyst, Truist Securities: Very good. Thanks, Keith.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Thank you. Our next question comes from Shaun Kelley of Bank of America. Shaun, please go ahead.

John DeCree, Analyst, CBRE: Great. Thank you, everyone. Josh, maybe to switch gears again on you, a lot of the questions I had have been asked and answered. The tax bill, you highlighted some of the implications here, but I was kind of curious more on the company level, there were some changes in everything from bonus depreciation to interest deduction. Obviously, you’re delevering, so maybe the interest deduction thing is not as big.

But sort of to your cash tax rate and your free cash flow conversion, is there any impacts? Have you kind of done your first take on what some of the legislative changes might mean for you at the corporate level?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yes. I will tell you we’ve gotten a preliminary estimate. I’m actually not that comfortable kind of telling you what it is just yet. I think we need to do a little bit more work around it. But the biggest impact or benefit to us will be from and I think this is probably obvious, the bonus depreciation, 100% of depreciation that’s placed in service.

I think that you’re right, we won’t get much in the way of benefit from further interest expense deductibility because we already kind of qualify that fully. And many of the other things that we’ve evaluated really are either not material or if they are kind of going negative, they’re pretty small. But I’m hesitant to kind of give a number just yet until we go through fully the bonus depreciation calculation. That will be where we get the biggest benefit and we kind of rushed it to be ready for this call and I just want to have time to kind of double check it. That’s where the benefit will be.

John DeCree, Analyst, CBRE: Great. And then, Keith, maybe just going back to the online strategy point, because I do think it’s important, right? You lost a sort of a material growth lever, which I think we all appreciate you were going to lose or renegotiate anyways as it relates to market access. But just can you help us think through kind of Boyd’s approach high level, right, as the sort of Internet and online gaming has come for lots of other brick and mortar sectors. It’s been highly disruptive.

Now we sort of have other areas like prediction markets and things that are sort of at the gate as well. So just strategically, do you think it’s important for you to have a presence here on this side? And kind of how do you think about and really talking kind of medium to long term that just having something here as a bit of a hedge as it relates to kind of the broad brick and mortar piece of the business?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes, look, bought Palo Interactive a couple of years ago to kind of stake out on our own if you will on the online casino side for that very intent. We thought having both an online product as well as a brick and mortar product was important. I think we articulated that and we continue to articulate that. Look our customers go home at night and they may want to still continue to gamble and enjoy this and if it’s legal in the state, want to make sure we have a product that they can enjoy when they are not on premise. We have that in New Jersey right now where it’s both legal online and legal on premise.

It’s a great product because it is fully integrated with our land based rewards program and so the player gets all the benefits when they are playing online as they were as if they were playing in the building. And so we do want to be ready. We think it is important and we think they are clearly complementary to each other and that long term you need to have both products as part of your portfolio. Having said that, online sports betting is a different beast. We have a presence obviously here in Nevada where we run 10 sports books ourselves and have for more than forty years now and quite successful in doing that.

As you may have noted in the press release, we will begin to transition into running our own sports books outside of Nevada sometime next year. And once again we have tremendous experience in doing that. And so once again that will not be a very heavy lift for us. But we don’t think that’s as important to us the sports betting side as in running our own books or having our own national presence there as it is on the casino side for our customers to be able to participate with us. So I think we are well positioned, very happy with the product we have, happy with the growth of Boyd Interactive and what it’s doing and I think when other states start to approve this that we will be in a very strong position to capture a big share of the market in the states where we do business.

Barry Jonas, Analyst, Truist Securities: Thank you both. Thank

David Strau, Vice President of Corporate Communications, Boyd Gaming: you. Our next question comes from David Katz of Jefferies. David, please go ahead.

David Katz, Analyst, Jefferies: Hi, afternoon. Thanks for taking my question. So, couple of things have changed since the last time I’ve asked this question, which is probably one of many times I’ve asked this question. But, you know, at the moment, there seems to be a little bit better outlook in regional gaming. You know, stocks are just a bit better.

Yours, you know, to to some degree included. Is there any update you can give us on the boundaries or the criteria that you’re thinking about in terms of acquisitions you would consider? Anything changing with respect to hurdles or size? What you might be seeing? Any update there would help.

Thanks.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Sure. I would say nothing has really changed in how we view M and A regional acquisitions, the size and the scale is important, the quality of the asset will be important. Obviously given the size of our company in order to make it meaningful and move the needle and make it worth our time, it’s got to be significant enough. We have said in the past, we continue to be somewhat agnostic on markets as long as it’s a strong market with stable regulatory environments and stable tax environments and there is a number of those out there. So those are all things we have talked about in the past is key to us as we look at acquisitions and that all remains the same today.

I really don’t have anything to update on.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Thanks, Dave. Thank you. Our next question comes from Ben Chenken of Mizuho. Ben, please go ahead. Hey, good afternoon.

Thanks for taking my question. Sure. Now that no tax on tips and overtime is official, is there any work you’ve done trying to quantify the tailwind whether quantitative or even anecdotal? Thanks. And one follow-up.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: So we have done some work around this. I don’t think we are in a position to go out and talk about what we think that that means to the company. But certainly it impacts a lot of our customers here in Las Vegas as well as customers around the country who visit our property. So it clearly is a positive for us and we will just once again, we’ll wait and see how it all plays out. But no tax on tips, no tax on reduced tax on tips and reduced tax on overtime.

Look as well as the deduction for seniors in a different in new tax brackets are all going to benefit us going forward. So we’re just not sitting here today in a position to quantify that for you.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Sure, understood. And you may not want to answer the question, but just like in the spirit of the conversation, any high level thoughts on maybe like what percentage of the customer base might be subject to those including the seniors in there?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Well, look, from a senior standpoint kind of 65 and older, roughly 40% of our customer base is in that age group. And the good news for us there is they over index in terms of their spend or their total value to us. And we’ll get we’ll clearly derive some benefits from that group.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Got it. And just one quick one on repurchases. You repurchased $105,000,000 in the quarter. I guess you clearly are signaling that you want to buy back more stock, the new run rate’s 150 of the increased authorization. I guess the question is, repurchased multiples of that in 1Q, presumably at higher prices.

So, definitely not being critical here, but just was there anything preventing you from buying more in the 2Q when I would suspect your stock was pretty depressed?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes, look, I mean, there are times we are in blackouts where we’re not allowed to be in the market repurchasing stock and there is always a lot of factors that go into those decisions as we sit and decide when and how much to buy back. So it isn’t kind of a straightforward decision as we go through that process. But part of Q2 was blackout as it relates to the FanDuel transaction quite frankly.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Understood. Thank you. Thank you. Our next question comes from Jordan Bender of Citizens. Jordan, please go ahead.

Ben Chenken, Analyst, Mizuho: Hey, everyone. Good afternoon.

Jordan Bender, Analyst, Citizens: I want

Ben Chenken, Analyst, Mizuho: to double click on the room rate in Las Vegas comment you made earlier on the call. We’ve heard this commentary or we’ve seen some of the data out of Las Vegas, so it might be good to just touch on the locals market here. But is the dip that you’re seeing a function of summer seasonality or is there really anything sticking out as to why maybe it’s declining more than historical summers? Thank you.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Okay. I can’t comment on how and why properties in Las Vegas change the room rates. Some of room rates right now are lower than they were last year. Some of room rates are always low compared to the other seasons. This year they are lower than last year in many cases by quite a bit.

So I don’t know why people are doing that. Obviously it does impact properties like the Orleans who have nearly 1,900 hotel rooms in terms of our ability. So we’re not offering $19 hotel rooms and we’re not going to offer $19 hotel rooms. But sit in their boardrooms or their marketing meetings or their hotel meetings, so I actually can’t tell you.

Ben Chenken, Analyst, Mizuho: All right. And then on the follow-up, I just want to circle back on the share repurchases. So you upped it by $50,000,000 a quarter. I guess why did 150,000,000 make sense? And does any of that play into kind of getting back within your historical leverage targets from kind of what you see in the business today?

Thank you.

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yes. It’s a good question, Jordan. I think just as the 100,000,000 was a level that was set that you can expect from us, sometimes we’ll do more, but you could expect the 100 in the past. I’d say that was the spirit in which we approached setting the 150. It’s a level that we’re comfortable with setting the expectation from the market and people who follow us and we feel comfortable doing that in the context of not putting any pressure on other decisions that we’re trying to make or influence our balanced capital allocation approach.

So it’s a level that we’re comfortable with and feel comfortable that we’ll be able to continue to kind of achieve without people trying to get too far ahead of us basically.

Ben Chenken, Analyst, Mizuho: Great. Thank you very much.

David Strau, Vice President of Corporate Communications, Boyd Gaming: You’re welcome. You. Our next question comes from Brent Montour of Barclays. Brent, please go ahead.

Brent Montour, Analyst, Barclays: Hello everybody. Thanks for taking my question. So a question for think for Josh, mean your comments on regional customer feeling better, staying close to home, doing a few less trips and showing up at your door helped things clearly. You know when you think when you look at that customer I’m assuming a lot of those customers are unrated play and if those folks are not going on trips does that mean that they would have a higher than average spend versus your other average customer? Is that the way we could think about that customer or not necessarily?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yeah. So first of all, I’m not sure that we since they’re unrated, we don’t know a lot about that bucket of customers. I would say that you shouldn’t think of them in one light or the other, meaning they’re not necessarily customers that are not worth a lot and they’re not necessarily customers that are worth a lot. It’s a portfolio of customers just like maybe anything else that we talk about. So I don’t know that you can extrapolate anything from that it’s a higher quality customer spending more money in that segment or not.

I think all we can say is that the volume, I. E. The overall play that we received from that from our unrated customers has improved since Q2 last year and sequentially as well.

Barry Jonas, Analyst, Truist Securities: Hopefully that helps a little bit.

Brent Montour, Analyst, Barclays: Is helpful. And just a follow-up on the locals market. I think heading into this past quarter you know we were looking out at the year for locals and sort of expecting you know less bad comps over time. You guys still had competitive pressure. You just did a pretty good quarter but I don’t know, maybe you know, what the broader market grew and if you lost share in the second quarter or if we’re sort of past that promotional environment pressure with the caveat that we know that summer room rates are low and affecting Orleans maybe from a different side now?

I wonder if you could square those thoughts.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Sure. So as you look at the Las Vegas locals market and we only have data through May, June data will come out I think next week in Las Vegas. But if you and we look at it in three month increments to take out some of the variations or movements. Over the last three months we’ve performed either in line or slightly better than the overall markets. So our market share has generally stayed the same, maybe gone up just a smidge.

And so we feel pretty good about the overall performance both of the market as well as our own performance.

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: One thing, Brent that I would add to your question is that we talked about kind of the competitive pressures just getting less bad throughout 2025 and obviously we don’t give individual property level information, but that is exactly what’s continuing to happen. There’s some push and pull based on our comments earlier, right? We’re talking about primarily the Orleans, so that’s the property that also would be affected by a softer destination consumer, but generally it is trending in the direction that we talked about. And then overall, the entire segment was benefited by this pickup in unrated play. The trends that we talked about before are continuing, if not feel a little better with the support of unrated play with the exception of maybe a property like the Orleans that’s filling this rate pressure.

I know it’s a lot of pieces, but just wanted you to know that the competitive environment from our perspective is trending along just like what we expected. It’s just getting better and better with the passage of time.

Brent Montour, Analyst, Barclays: That makes perfect sense. Thanks for that guys.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Sure. Thank you. Our next question comes from Steve Pizzella of Deutsche Bank. Steve, please go ahead.

Jordan Bender, Analyst, Citizens: Hey, good afternoon and thank you for taking our questions. On the cost side, just curious about what you are seeing in terms of the operating expense environment currently in both the Midwest and South and local segments?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: So Steve, thanks for the question. I would say that cost for us are I mean, we always see pressure from cost and cost increases, but I think we’re doing a really good job of managing those costs. You can kind of really see it in the consistency of our margins, both in Las Vegas and the Midwest and South and for that matter downtown. So despite, say, in the Midwest and South having some issues with the shift in the calendar and the flooding, our margins essentially have been stable. And in Las Vegas, we talked a lot about some of the pressures from competitive issues and things of that nature.

Our margins also are continuing to be very stable. So from my perspective, we always wring our hands around costs and are trying to manage them more efficiently and trying to offset increases, but our guys are doing a really good job of doing that. And so that’s what’s showing up in the results quite honestly.

Jordan Bender, Analyst, Citizens: Okay. Thanks. And just wanted to look further into non gaming spend if we could. Have you seen any changes in spending your F and B and entertainment?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Not really. With the I would say the if you look at our results, you’ll see F and B was up and that’s reflective of not only our core customer continuing to be stable and growing, but also now the kind of the retail customer showing up in the second quarter. And then on the hotel side, that was largely Las Vegas through the destination related comments that we made earlier. So, there’s not really, I think the spending from our customers is in conjunction with what we’re seeing for their demand on the gaming floor.

Jordan Bender, Analyst, Citizens: Okay, great. Appreciate it. Thanks.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Thank you. Our next question comes from Stephen Grambling of Morgan Stanley. Stephen, please go ahead.

Keith Smith, President and Chief Executive Officer, Boyd Gaming0: Thanks. You touched on this a couple of different ways. So putting together your commentary around investing into growth, do any sub segments or regions stick out in offering potential for the best returns on invested capital in this backdrop? And how might that rank order compare to investing in digital or greenfield markets?

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yes, look I think as we think about the return on any type of M and A investment whether it be on the digital side or whether it be greenfield or whether it be an actual acquisition of existing asset. Obviously,

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: a lot

Keith Smith, President and Chief Executive Officer, Boyd Gaming: of factors go into play here. We don’t think about year one or year two return. We think about it over a longer period of time. But all depends on once again the price and the quality of the assets. So we don’t necessarily force rank them.

We do have a hurdle rates that we look at and we want to achieve in order to make an investment regardless of which of those buckets we’re going to invest in. Yes, the

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: only thing I would add to that is M and A is one alternative, reinvesting in our portfolio is another. You’ve seen us do that quite successfully with Treasure Chest. Now with the coming online with the meeting space at Ameristar St. Charles and Cadence Crossing. So it is really trying to find the best alternative among all the different choices that we have.

I mean, Virginia is kind of in the pipeline, but that’s going to be a good investment as well. So we’re really evaluating all the time kind of M and A from a strategic perspective, but also a return perspective weighed against development opportunities, weighed against opportunities to reinvest in our existing portfolio and then buying back our shares as well absent higher returning alternatives. So it’s hopefully this starts to sound like a broken record because we believe we’re kind of adding the same or executing on the same approach from our capital allocation perspective that we’ve been doing for quite some time. So hopefully this sounds familiar to people.

Keith Smith, President and Chief Executive Officer, Boyd Gaming0: Yes. I guess I meant more around organic growth, not M and A. As you think about renovations or where you’re spending, whether you gave a a couple of different examples there. But are there more likely to be spend within locals, the South and Midwest? Digital is another one of those.

Is anything sticking out as you look at these different markets based on either the trends you’re seeing or the competitive dynamic?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yes. I mean, I would just jump in and say not really. I mean, we have a online is going to grow as opportunistically as maybe smaller acquisition opportunities come along or as it grows organically. I think from the perspective of reinvesting in different segments of our business, it could be that the highest returning next opportunity is in the Midwest and South, just because of whatever that particular opportunity is. I think we purely do it based on an economic return of where we can get the best return as opposed to force ranking it, Las Vegas is a better market than Missouri or just picking one out of the air, right?

It’s where we can get the best return for the incremental dollars. And yes, so that’s how we think about it.

Keith Smith, President and Chief Executive Officer, Boyd Gaming0: Fair enough. Thank you.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Our next question comes from Dan Pulitzer of JPMorgan. Dan, please go ahead. Hey, good afternoon, and thanks for taking my question. I wanted to just focus on the Midwest and South for a bit. This was the highest quarter of GGR growth, at least from the publicly reported data we’ve seen in some time despite starting to lap treasure chests.

So to the extent it sounds like you’re attributing this to unrated play, what’s shouldn’t that be showing up in the margin structure? Or were there any other kind of one offs to think about in the quarter, whether it’s a promotional environment or mix of revenues?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Are you saying because it was unrated play, we should have a higher margin? Is that what you’re saying?

David Strau, Vice President of Corporate Communications, Boyd Gaming: Well, yes. I I think that usually that does come with higher margin. The flow through in this quarter versus other quarters just given the revenue growth, I would think just given that comment on the unrated play would have been a little bit higher, but that’s why I’m asking if maybe there’s something I’m missing.

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Yes. The only thing I would point out is the margins have been consistent, number one. And number two is we did have flooding that took two properties out of commission for basically each a week and then the shift of Easter. That’s basically it. There’s nothing else really going on in the segment.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Got it. And then just kind of one higher level one in terms of quarter and the cadence. It seems like trends did improve throughout the quarter. Is there any kind of comment on what you’re seeing quarter to date as we look into July here?

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: So I would say and Keith jump in and add anything that I might leave out would be that, first of all, we’ve been burned by trying to answer this question in the past because it’s a limited snap shot of what’s going on. It’s literally been three weeks and three weeks don’t make a trend or a quarter. But so just note that disclaimer for if things were to change in the future. But basically, I would say the trends that we saw in Q2 are continuing into Q3. That being as has historically been the case, the core customer has continued to be a consistent source of business for us and has continued to grow.

And then on the retail side of things, we continue to see the unrated play contribute to that segment. First three weeks are just like the quarter we just came out of.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: Yeah, and I do think you have to be careful and look at this kind of by the segments that we operate in, in Las Vegas versus Downtown versus MSR. And while I think the trends are generally consistent with what we saw in Q2 as it relates to corn and unrated, Here in Las Vegas, we talked about the renovation project, Suncoast going on, it’s being in its most disruptive phase. So we have to take that into account as we think about Q3 and Q4. We’ve done a great job and our customers have kind of hung with us so far this year at the Suncoast and performing very well. But we are entering a very disruptive period of time.

And then the softness on the strip which impacts the Orleans mainly, we will see how that continues to play out. Downtown some softness as it relates to just visitation to downtown because if the strip is soft and downtown tends to be a little soft also. In the MSR more normal, mean once again benefit of treasure chest has anniversaried itself but still performing well. And as people are not traveling maybe as much, we are getting the benefit of them staying closer home and visiting our properties in the Midwest and South regions. But I think as much color as we have, but as Josh said, it’s three weeks worth of data.

And so we’re kind of cautious about talking about it.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Got it, makes sense. Thanks for the detail.

Keith Smith, President and Chief Executive Officer, Boyd Gaming: You’re welcome.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Our last question comes from Chad Beynon of Macquarie. Chad, please go ahead.

Keith Smith, President and Chief Executive Officer, Boyd Gaming1: Hi, good afternoon. Thanks for taking my question. I wanted to ask about the overall CapEx. Josh, you ran through that in your prepared remarks. I know it was about three months ago when the tariff announcements were announced and there’s been some volatility there.

It doesn’t sound like there was any change in terms of your spend, but I know you were talking about maybe mitigating some of the potential impacts that could happen. So can you help us think about maybe any, I don’t know, guaranteed contracts? Are you more comfortable now versus three months ago when the news was just kind

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: of coming across the desk? Thanks. Yes, Chad, thanks for the question. I think if you look back at our remarks in the first quarter, we had done a lot of work around understanding what we could do to mitigate tariffs on operating expense side, but also a capital expense side, whether it was finding alternative sources, pre ordering stuff, ordering stuff from different countries, all that kind of acrobatics. I think that now that we’ve been at it for another three months or so, we feel much more comfortable that we can kind of manage through it.

Obviously, we don’t know the final picture with respect to tariffs, but I just think we’ve gotten better at it and we’ve gotten more comfortable with how to kind of manage through it. In Q1, we said we’re comfortable with the risk and our budgets are we don’t believe our budgets are at risk from a capital perspective. And we didn’t while our cost may go up, we felt like we had enough contingency and enough flexibility with respect to timing, where we were in those procurement processes, where those projects were, that we were going to be able to manage through it. I would say that really hasn’t changed. If anything, we’ve just gotten more and more comfortable with our ability to manage through it.

And I think it’s really important to say this as well, back then we were approaching a potentially uncertain environment at 2.5 times leverage. Now it’s 1.8 times leverage or whatever. So we’re probably in a much better position than the company has ever been in to deal with any kind of uncertainty, whether it’s man made or otherwise. So we come at it from a position of real strength. And I think that’s what we’ve tried to communicate to the investment community.

And the reason we want to run at a lower leverage is so that we have the flexibility to tell you, here’s what we’re going to do and in most cases or a large number of cases be able to execute that and not change direction because of something that’s going on out of our control. So the FanDuel transaction took us to a level, a lower level of leverage than maybe we thought we would be at, but the same philosophy applies. So hopefully that gives you some help, Chad.

Keith Smith, President and Chief Executive Officer, Boyd Gaming1: Makes sense. Thank you very much. Appreciate it.

David Strau, Vice President of Corporate Communications, Boyd Gaming: Welcome. This concludes our question and answer session. I’d like to turn the call over to Josh for concluding remarks.

Josh Hirschberg, Executive Vice President and Chief Financial Officer, Boyd Gaming: Thanks, David, and thanks to everyone for joining our call today. If you have any follow-up questions, including anyone’s related to to the FanDuel transaction, please feel free to reach out to Amir or myself, and we’ll be happy to try to help you out. Thank you much.

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