Boyd Gaming Corporation has posted its preliminary financial results for the first quarter ended March 31, 2020. Unsurprisingly, the COVID-19 crisis has made a big dent in the headline numbers with the firm reporting a Q1 net loss of $18.3m compared to net income of $45.5m year-on-year.
The company’s first-quarter 2020 income tax provision does include a $7.4m charge to establish a valuation allowance for certain deferred tax assets. It added that first-quarter 2020 revenues of $680.5m fell from $827.3m year-on-year, while total adjusted EBITDAR was $144.4m versus $223m in the first quarter of 2019.
Keith Smith, President and CEO, said: “During these unprecedented times, our highest priority is the health and safety of our team members, customers and communities. We want to express our gratitude to our first responders and health care workers, who have put their own health and well-being at risk to protect us all.
“We are fully supportive of the actions taken by state and local officials to help slow the spread of COVID-19, including the closure of our properties nationwide. We look forward to re-opening our properties ‒ following strict safety protocols that will meet or exceed the requirements set forth by health officials ‒ when state authorities determine it is appropriate to do so.”
He continued: “Prior to the closure of all of our properties in mid-March, our company began the first quarter with a strong performance, posting two consecutive months of solid year-over-year growth across our nationwide operations. And while our first-quarter results were significantly impacted by property closures, we have taken broad-based actions to reduce expenses and preserve liquidity.
“As a result of these actions, and the progress we have made in recent years to strengthen our balance sheet, we believe our company is well-positioned to sustain itself through the closure period. We intend to emerge from these challenging times as a more efficient and operationally focused company.”
Updating investors on operations, Boyd confirmed that during the period from March 12 through to March 18, 2020, the company was required to close all 29 of its properties nationwide under state and local orders aimed at mitigating the spread of COVID-19. As of April 28, 2020, all Boyd Gaming properties remain closed to the public.
As of March 31, 2020, the company had cash on hand of $831.2m, including $670m that was drawn from its revolving credit facilities on March 16, 2020. Total debt on March 31 was $4.44bn. It has withdrawn all previously provided financial guidance, including full-year 2020 adjusted EBITDAR guidance, due to the continued impact of the COVID-19 pandemic on operations.