Boyd Gaming shares fall after third-quarter results hit by Las Vegas weakness

Boyd Gaming shares retreated Friday after the regional casino operator delivered third-quarter results that were affected by Las Vegas lethargy.

Third-quarter performance

In the third quarter, Boyd posted adjusted EBITDAR of $320 million on revenue of $991 million. Wall Street had expected EBITDAR of $316 million on sales of $1 billion.

The company concluded the September quarter with $297.2 million in cash on hand and debt of $2.7 billion. Boyd Gaming’s net leverage is now approximately 2x.

Acquisition interest

Boyd executives expressed interest in possibly buying what CEO Keith Smith described as a “high-quality asset,” but they are not going to rush to make a deal.

Churchill Downs is selling nine regional casinos and owns the real estate of all those venues.

Las Vegas operations

Construction disruptions at the Orleans and Suncoast – two of Boyd’s marquee Las Vegas locals venues – are expected to dissipate next year.